A Study on the Association between Brand Awareness and Consumer/Brand Loyalty for the Packaged Milk Industry in Pakistan M.I. Subhani and Amber Osman*
Brand awareness remains fundamental to consumer life as the interaction initiation point to the brands. This paper put forwards the relationship of brand awareness on consumer/brand loyalty in the packaged milk brands in the urban Pakistan. There is evidence of brand awareness and consumer/brand loyalty on brand equity. The approach takes into account sources of brand equity-brand awareness, consumer/brand loyalty and image (perceptions / associations) on the sample of consumer households. This paper suggests that in Pakistan among the packaged milk brands there is no relationship between brand awareness and consumer/brand loyalty. In addition, testing relationship by setting perceptions as the mediating variable between brand awareness and consumer/brand loyalty results the same. For practicing managers and marketers it is important to note that there is a need to update their understanding of the nature and role of brand awareness on convenience products which has random switch purchase behavior and low-involvement. In the current era, marketers must develop branding strategies for commodity-products such as milk packaged brands by investing and strengthening its supply chain system, to create and increase brand awareness for the milk brands in-turn to build consumer/brand loyalty than trying to directly build consumer/brand loyalty by heavy spending on promotional tools. Key Words: brand awareness; consumer/brand loyalty; brand equity; brand perception JEL Classification: M31; M39
* Corresponding authors email: email@example.com and firstname.lastname@example.org * The material presented by the author does not necessarily portray the view point of the editors and the management of Iqra University, Karachi. SAJMS 2011, Published by Iqra University Defence View, Shaheed-e-Millat Road (Ext.), Karachi, Pakistan.
M.I. Subhani and Amber Osman
INTRODUCTION The area of research for this paper focuses on empirically studying the relationship of brand awareness on brand/consumer loyalty, which constitutes the success of a brand. This relationship between brand awareness and consumer/brand loyalty has been studied in Pakistan focusing on the geographical region of Karachi in the context of fast moving consumer products such as packaged milk brands. Brand Equity and its interrelationships with brand awareness has been an important area of study in extant literature (Keller, 2003, 2006; Aaker,1991,2002; Yoo & Donthu, 2001, 2000; Moore,2002; Srivastava & Shocker,1991;Ailawadi, Lehmann & Neslin, 2003; Srinvasan, Park & Chang, 2005). Brand Equity, as the focus of this study is defined as comprehensive set of values attached by the consumers creating differential effects to the brand which creates revenue in the competitive market (Aaker, 1991). In this connection 'Brand Awareness' is the primary dimension of brand equity and is vital for the purpose. Brand equity is initially built by laying a foundation of brand awareness - eventually forming positive brand images - and is ultimately maximized by high levels of brand loyalty (Strategic Marketing and Research Techniques, 2008). In other words, by understanding the locus of brand loyalty the practicing managers can redirect their efforts towards factors that contribute to brand loyalty. The present research, uses packaged milk-brands because, firstly milk is an everyday commodity and secondly, it is heavily advertised by packagers of milk. Also to substantiate the low involvement decision settings helping creating the level of brand awareness for the particular product choice, even in the absence of a well-formed attitude (Betteman & Park 1980; Hoyer & Brown 1990; Park & Lessig, 1981). It is, therefore, pertinent to address the issue of...