ST.

MARYS UNIVERSITY

SCHOOL OF GRADUATE STUDIES

THE EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR

IN THE CASE OF ADDIS ABABA BEER CONSUMERS

BY
ANDUALEM ASNAKE LEGESSE
(SGS /0329/ 2009A)

MAY 2018

ADDIS ABABA, ETHIOPIA

THE EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR:
IN THE CASE OF ADDIS ABABA BEER CONSUMERS

BY
ANDUALEM ASNAKE LEGESSE
(SGS /0329/ 2009A)

ADVISOR:
GETIE ANDUALEM (PhD)

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY, SCHOOL OF

GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF
MARKETING MANAGEMENT

MAY 2018

ADDIS ABABA, ETHIOPIA

 ST. MARY’S UVERSITY
SCHOOL OF GRADUATE STUDIES
DEPARTMENT OF MARKETING MANAGEMENT

THE EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR:

IN THE CASE OF ADDIS ABABA BEER CONSUMERS

BY
ANDUALEM ASNAKE LEGESSE

APPROVED BY BOARD OF EXAMINERS

________________________ _______________________
Dean, graduate studies Signature and Date
________________________ _______________________
Advisor Signature and Date
________________________ _______________________
External Examiner Signature and Date
________________________ _______________________
Internal Examiner Signature and Date
 TABLE OF CONTENTS
Table of contents ......................................................................................................................... i
Acknowledgement .................................................................................................................... iv
List of tables ............................................................................................................................... v
List of figures ............................................................................................................................ vi
List of acronyms ...................................................................................................................... vii
Abstract ...................................................................................................................................viii

CHAPTER ONE
INTRODUCTION
1.1. Background of the Study .............................................................................................. 1
1.2. Statement of the Problem.............................................................................................. 2
1.3. Research Questions ...................................................................................................... 3
1.4. Objectives of the study ................................................................................................. 3
1.4.1. General Objective of the study .......................................................................... 3
1.4.2. Specific objectives of the study ......................................................................... 3
1.5. Significance of the study .............................................................................................. 4
1.6. Delimitation/scope of the study .................................................................................. 4
1.7. Definition of terms ....................................................................................................... 5
1.8. Organization of the paper ............................................................................................ 6

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction ................................................................................................................... 7
2.2 Theoretical Review ........................................................................................................ 7
2.2.1 Brand ................................................................................................................. 7
2.2.2 The concept of branding ................................................................................... 8
2.2.3 Brand equity ....................................................................................................... 8
2.2.3.1 Brand awareness .......................................................................................... 9
2.2.3.2 Brand Loyalty ............................................................................................ 10
2.2.3.3 Perceived Quality ....................................................................................... 11
2.2.3.4 Brand Associations ................................................................................... 11
2.2.4 Impact of Branding On Consumer Behavior ................................................... 13
2.2.5 The concept of Consumer Purchase behavior .................................................. 13

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 2.3 Empirical Review......................................................................................................... 15
2.4 Conceptual framework ................................................................................................. 16

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction ........................................................................................................................... 18
3.2 Back Ground of the Study Area and Current Situation of Beer Market ........................ 18
3.3 Research approach ............................................................................................................... 19
3.4 Research design/type ........................................................................................................... 19
3.5 Sampling design .................................................................................................................... 19
3.5.1 Target Population ..................................................................................................... 20
3.5.2 Sampling technique ................................................................................................. 20
3.5.3 Sample size .............................................................................................................. 20
3.5.4 Sampling procedure ................................................................................................. 21
3.6 Sources of Data ..................................................................................................................... 21
3.6.1 Primary source .......................................................................................................... 21
3.6.2 Data Collection methodology ................................................................................ 21
3.6.3 Data collection instrument .................................................................................... 22
3.6.4 Data analysis methods ........................................................................................... 22
3.7 Validity and reliability ......................................................................................................... 22
3.7.1 Validity ...................................................................................................................... 22
3.7.2 Reliability .................................................................................................................. 23
3.8 Research Ethics .................................................................................................................... 23

CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.1 Introduction ....................................................................................................................... 25
4.2 Empirical description of the Study ................................................................................... 25
4.2.1 Demographic profile ................................................................................................ 26
4.2.2 Coding of Branding Dimensions ............................................................................ 29
4.3 Empirical results and analysis ........................................................................................... 30
4.3.1 Reliability of data analysis ...................................................................................... 31
4.3.2 Customers’ view on branding and buying behavior ............................................ 32
4.3.3 Statistics indicating the impact of branding on beer products............................ 33
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 4.4 Inferential Analysis ............................................................................................................ 37
4.4.1 Correlations analysis ............................................................................................. 37
4.4.2 Regression analysis .................................................................................................. 39
4.5 Hypothesis testing and discussions ................................................................................... 45

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction ........................................................................................................................... 47
5.2 Summary of major findings ................................................................................................ 47
5.3 Conclusion ............................................................................................................................ 48
5.4 Recommendations ................................................................................................................. 48
Reference ................................................................................................................................ 49
Appendix I .................................................................................................................................. i
Appendix II ............................................................................................................................... vi
Appendix III ............................................................................................................................... x
Appendix IV.............................................................................................................................. xi

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 ACKNOWLEDGMENT
Above all, I would like to praise my gratitude to God for his abundant grace; and his Mother
Saint Mary that she lifted me from grass to grace and I am able to be what I am today by her.
My special thanks and recognition go to my research advisor Dr. Getie Andualem for
his intelligent guidance, encouragement and helpful advices during the whole process of
research writing. Thank you for your support and valuable insight.
With special feeling I would like to express my love and respect to my wife Bethlehem
Workneh and my Son Betemariam Andualem. My deepest heartfelt and joyful gratitude goes
to my mother Yeshiwork Asnake Ali. Thank you for yours countless love, motivation and
support throughout my stay in St. Mary’s University.
Finally I am thankful to all respondent; this thesis would never been accomplished without
the cooperation of you. At last but not the least my final note of thanks precipitate to all my
families and friends who encouraged and advised me in my MA endeavors.
Thank you all!
Andualem Asnake Legesse
May, 2018
Addis Ababa, Ethiopia

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 LIST OF TABLE
Table 1 Respondents sex distribution: .................................................................................... 26
Table 2 Age of respondents: .................................................................................................. 27
Table 3 Educational level of respondent .......................................................................... 28
Table 4 Occupation of respondents: ....................................................................................... 29
Table 5 Cronbach's alpha data analysis: ................................................................................. 31
Table 6 Customers’ understanding about branding ................................................................ 32
Table 7 Response of customer’s on the factor for brand selection. ........................................ 32
Table 8 Customers’ buying decision for most preferred beer.................................................. 33
Table 9 Customer buying behavior concerning about brand awareness.................................. 34
Table 10 Customer buying behavior concerning about brand loyalty .......................... 35
Table 11 Customer buying behavior concerning about perceived quality .............................. 36
Table 12 Customer buying behavior concerning about brand association .............................. 36
Table 13 Correlation between branding and consumer buying behavior ................................ 38
Table 14 The multicollinearity statistics .......................................................................... 40
Table 15 Test of independent of residuals .......................................................................... 41
Table 16 Model summary; impact of branding on customer buying behavior ........................ 41
Table 17 Regression coefficients result ................................................................................... 42
Table 18 ANOVA summary .................................................................................................. 44

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 LIST OF FIGURES
Figure 1 Types of brand association ............................................................................................. 12
Figure 2 Consumer buying behavior ............................................................................................. 14
Figure 3 Conceptual frame work linking branding and consumer buying behavior ................. 16
Figure 4 Test for normality of data ................................................................................................. 39

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 LIST OF ACRONYMS
BA= Brand Awareness
BL= Brand Loyalty
PQ= perceived Quality
BAS= Brand Association

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 ABSTRACT
Branding is an important concept in consumer buying behavior and it is a crucial factor
influencing the purchasing of product. The main purpose of this study is to explore the impact
of branding on consumer buying behavior in case of Addis Ababa beer consumer. The target
populations of this research were people from sections of Addis Ababa. The study adopted a
quantitative researcher design. Questionnaires were distributed to 246 customers by using
convenience sampling technique and 240 were properly completed and returned. Both
primary and secondary data was used in the study. Moreover, structured questionnaires was
used to gather relevant information and The data were analyzed by using SPSS
(statistical package for social sciences) and presented through descriptive, correlation, and
regression analysis. The study come up with branding has a significant effect on consumer
buying behavior. The study revealed that the four dimensions of branding that is, brand
awareness, brand loyalty, brand association and perceived quality have positive and
significant relation with customer buying behavior. The study recommend that branding is
very vita to attract and retain customers; therefore, continues improvement must be
maintained at all times on brand awareness, brand loyalty and brand association as well as
Product quality that meet consumer buying behavior.

Key Words: Branding, brand awareness, brand loyalty, perceived quality, brand association
and Customer buying behavior.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In this era, globalization is increasingly important. Most of the industries are thinking of
expanding their market worldwide. That is, in today’s business environment, companies must
work harder than ever before to achieve some degree of differentiation in their products.
Many companies have sought to achieve this differentiation by branding their products,
simply putting the company’s name on product (Aaker, 1991).

Today in a competitive market, the question is about the survival of the company in the
market. But the answer depends on companies to survive by packaging, design, price, quality,
distribution channel and other means. That is, the proper strategic planning is needed to
achieve revenue, sales, quality and market share. A good strategy differentiates company
brand to other competitor’s brands. The intention to offer marketing goods for consumer
benefits by a marketer is to win the competition by creating new and decisive consumer
value. (Welibacher, 1993 p.130).

Due to increase of globalization a homogenization of consumers’ preference in the world,

global branding has become more widespread. Research in marketing has concentrated more
on discussing how to raise sales rather than how to satisfy create loyal customers (Lee 2006).
That is, it is important to be aware of different brands. In the world most of branded goods
influence consumers; hence industries are in competition to win the market in a manner that,
producers should be able to create loyal customers and not concentrate on increase sales only.

According to Keller (1997) brand is vital and draws synergy between company and
consumers. In this regard, by achieving success through branding maintaining and managing
the consumer buying reputation becomes integral to be the market leader. The branding
aspects of the product that is, refine quality of products and social responsibilities of any
business can positively affect the buying behaviors of people regarding brand image,
satisfaction and loyalty (World Applied Sciences Journal 23 (1): 117-122, 2013).

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People in our country are also conscious about their status and they prefer to use branded
products to show off their status symbol. Brand is considered as implied device through
which any business can attain the attraction of people and can enjoy the competitive edge.

In our local scenario branding can change peoples’ buying behavior and it is also considered
as a valuable asset for business and it can play a vital role to expand marketing. While
studying the literature, it was found out that there is not much research about branding and
consumer buying behavior on beer consumers in our locality. Based on the above
background, this study is initiated to assess the effect of branding in consumer buying
behavior in the city of Addis Ababa.

1.2 Statement of the Problem

Companies are facing wider range of competitors who offer a similar product to same
customers (Kotler, 2005). In this increasable competitive market, companies are attempting to
gain better position for them by becoming more customer-oriented (Hartmann, 2007). One
wondering thing that consumers in making choice are merely responding to the outcome of
their perception which is a function of attributes like brand name, mark, package, company-
of-make etc. A point to note is the fact that most producers strongly believe that branding has
a very high influence on consumer’s choice (Ogbuji, 2008).

Brand has been an important concept in consumer behavior research and it is a crucial factor
influencing the purchasing of product decision. Keller (1997) demonstrates that the brand
image is essential in apparel purchase behavior because it impacts consumers’ preferences
and purchase intentions as well as their willingness to pay a premium price and recommend
the brand to others.

Thus, when consumers hold a strong and constructive brand, they will be more likely to
evaluate the product positively, regardless of price. The fact that many elements constitute
branding, one is not sure if these elements play equal role in influencing choice or if some
play a higher role than others. In this regard beer industry sector is particularly chosen in this
study.

In this regard with the high entry of Beer products introduced in Addis Ababa, beer consumer
buying behavior is particularly chosen in this study. In the study area beer is the daily used

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product and a lot of people have purchased and consumed different beers brands and the
purchasing decision of consumers can be made consistently.

Beer companies as a product provider needs to provide goods that really satisfies consumers’
expectations in ensuring that the company survives economically. In order to achieve this
deed, they need to understand consumers’ buying behavior in order to help them evaluate the
product being offered. In general Ethiopian in particular in Addis Ababa even if beer
companies have their own branding strategies to win the heart of customers, but large
numbers of consumers are initiated to buy and consume on some beer brand.

Therefore, it is interesting to study how beer consumer has ended up selecting the specific
beer brand. This is depending upon customers buying behavior. Thus, the overall purpose of
this study is to gain deeper understanding on consumer buying behavior of beer products in
Addis Ababa.

1.3 Research Questions

The purposes of this study were to evaluate how branding have an effect on consumer buying
behavior. In evaluating the statement, this study was attempts to answer the following
questions:

 What is the effect of branding on consumer buying behavior?

 What is the relationship between branding and consumer buying behavior?
 What is customers’ view on different brand of beer product?
 What are the elements of branding that determine beer consumers buying
behavior?

1.4 Objectives of the Study

1.5.1 General Objective of the Study

The main aim of this research is to investigate and analyze the effect of branding on
consumer buying behavior of beer product. The analysis takes to study markets on Addis
Ababa.

1.5.2 Specific Objectives of the Study

The specific objectives of the study were:

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  To find out the effect of branding on consumer buying behavior;
 To assess the relationship between branding and consumer buying behavior;
 To investigate customers’ view on different brand of beer product;
 To realize the elements of branding that determine beer consumers buying
behavior.

1.5 Significance of the Study

The main drive of this research is to investigate the effect of brand on consumer buying
behavior of beer product. Theoretically this research provide information on consume buying
behavior on beer brands and verify the relationship between branding and consumer buying
behavior. The outcome of the research would be beneficial to marketing professionals in the
industry to understand the target consumer whether branding affect customers buying
behavior.

Practically this study can help the present Marketing Managers to better re-position their
brands and advertising strategy to capture the correct target market to improve the sales in
times where economy is at a challenge. At the same time, the research can assist domestic
marketers to adapt the knowledge to their marketing plan and activities to satisfy customers
and provide the offerings based on the factual consumers’ needs. More over; the study can
shade some light on brand management.
1.6 Delimitation/Scope of the Study

As a part of my marketing program, the researcher chooses branding and consumer buying
behavior. This is due to branding is the key to success in today’s ever-increasing competition
market among companies. Therefore, this research was focus on the impact of branding on
consumer buying behavior in Addis Ababa Municipality. This location is strategic due to the
fact that the city is hallowed with different types of beer brand or products with large number
of consumers. Hence it is simple to collect data as due to large number of people living in this
city

Due to time limitation, data collection conducted by interviewing and questionnaires were
distributed to the targeted respondents of the study. This study was employ on beer
consumers of different products and the target respondents were limited to consumer and
traders. The outcome of the research is advantageous to marketing professionals especially in

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beer products to understand the target consumer whether branding affect their purchasing
decision.

1.7 Definition of Terms

1.7.1 Conceptual Definition

Beer: - an alcoholic beverage usually made from malted cereal grain (as barley), flavored
with hops and brewed by slow fermentation (Merriam Webster Dictionary).

Brand: - The American market association (AMA) defines as a name, symbol, design, or
some combination which identifies the product differentiates them from those of competition
(Keller, 2003). Another definition by Kapferer (2004) says that a brand is a set of mental
associations, held by the customer, which add to the perceived value of a product or service.

Branding:- branding is defined as a names, associations and other ingredients that is used to
identify a product (Kotler 2000).

Consumer-behavior:- it is the study involves how an individual or groups select, purchase,

use or dispose of products, services ideas, or experience to satisfy their need and desires.
(Paul & Jerry C, 2005)

1.7.2 Operational Definition

By adopting references from the field of marketing research on branding, this paper defines
branding as a process in which a mark usually sign, symbol, or design, or a combination of
them is engraved into the mind of the customer.

By considering the overall consumer buying behaviour and this study defines consumer
buying behaviour as acts (actions and reactions) of individuals directly involved in obtaining
and using economic goods and services.

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1.8 Organization of the Paper

This section shows the outlines of the project organization and arrangement edition. The
study was organized into five chapters. The first chapter deals with the introductory part of
the study which set the precedence for the rest of the project. Chapter two is predominantly
about literature review. Chapter three dwells on the research methodology; chapter four will
reveals the data analysis and interpretation part; and the summary of findings, conclusion and
recommendations were makeup chapter five.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this section, the researcher striving to present the theories relating to the topic. This
section of the research basically discusses related literature that is directly related to the
research topic. Review of related literature is imperative in order to provide a clear
understanding of the overall background of scarce research studies done on this particular
topic.

With regards to this the following issues have been reviewed on branding and consumer
buying behavior; its purpose is to pitch more light on the various theories and concept
surrounding on the working objectives of the study in beer brands.

2.2 Theoretical Review

2.2.1 Brand

Brand is the name associated with one of more items in the product line that is used to
identify the source of characters of the items (Kotler, 2002). Doyle (2002) also cited that a
brand is defined as a specific name, symbol or design, or the combination of these-that is
employed to differentiate a product. The American Marketing Association (AMA) defines a
brand as a "name, term, sign, symbol or design, or a combination of them intended to identify
the goods and services of one seller or group of sellers and to differentiate them from those of
other sellers.

To customers, brand means familiarity and credibility as they get to experience some contacts
in their everyday life; therefore, they use the brands as an indicator to try or make a decision
to buy new products Moreover, brands are regarded as causal signs of determinants of
product quality depends on if the intrinsic attributes and processes that truly determine
quality. Such familiarity and credibility in the mind of consumers, which creates value to the
firm, can be enforced by the use of brand equity: brand awareness, brand loyalty, brand
associations and perceived quality (Aaker, 2002).

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Brand is a name in every customer mind and it is characterize by a noticeable name or
symbol which can differentiate the goods and services from the rivals Aaker (1991) and
Keller (1998).in addition to a specific brand name, a brand is composed of products,
packaging, promotion, advertising as well as its overall presentation, Murphy(1998). From
the consumer’s perspective, brand is a guarantor of reliability and quality in consumer
products

2.2.2 The Concept of Branding

Branding has been defined as the use of identifiable variable like attractive names,
symbolisms, terminologies (slogans), terms, and signs and in an extended version, the
combination of all the above-mentioned variables with the intent of associating it with
particular services and products in an organization which is distinctive from competitors’
brand. Formally, branding was defined as names, associations and other ingredients that are
used to identify a product (Kotler 2000).

Branding has been in existence previously large commercial activities (before the industrial
revolution) to identify one product from the other particularly among the artistic workers. A
brand that is meticulously planned and executed dominates the subconscious minds of
consumers who do not struggle to recall them whenever the need arises and hence has
become a vital tool for business organizations to break into every market.

Nowadays, consumers have a wide range of choice to choose from when they enter a
shopping mall. According to a research conducted by Freerdie 1998) on shopping habits,
nearly one-fourth of the respondents are impulse –buy products they have not budgeted for.
When deciding which products to purchase, consumers would have their preference, which
are developed in accordance with their perceptions towards the brand. Successful
branding could make consumers aware of the presence of the brand and hence could increase
the chance of buying the company’s product and services, Doyle (1999).

2.2.3 Brand Equity

Today brand equity has become one of the most important marketing concepts (Martensen
and Gronholdt 2004) both in business practice as well as in academic research because
marketers can gain competitive advantage through successful brands (Kim, Kim, and An
2003). Further, organizations’ develop brand as a way to attract and retain customers by

8
promoting value, image and lifestyle (Rooney 1995). Although to create a brand from scratch
requires huge investment (Motameni and Shahrokhi 1998), but brands have various
advantages to the firm, such as opportunity for successful extension, resilience against
competitors, promotional pressures and creation of barriers to competitive entry. Brands are
assets for a company and thus, company‟s financial performance is significantly affected by
its brand equity (Lassar, Mittal, and Sharma 1995).

For the consumers, brand equity could provide them with information about the brand
which influences their confidence during the purchasing process. There is a high
propensity for consumers with good perceptions to buy from the same shop again than
those with poor perceptions. Past purchasing experiences and familiarity with the brand
could be attributable to the perceptions generated from the consumers, Aaker (1991).

As for the firm, brand equity could also be a source for the firm to generate cash flow.
Besides, brand equity could also allow higher margins through premium pricing and reduced
reliance upon promotional activities, Aaker (1991). Owning to the positive image, consumers
no longer focus on the short-term promotion but the brand on the whole.

Brand equity is a broad concept which can be further subdivided into four main areas, namely
brand loyalty, name awareness, perceived quality and brand associations, Aaker, (1991)
and Keller (1998). These four main areas are to be discussed in the coming sections.

2.2.3.1 Brand Awareness

Brand awareness is the first and prerequisite dimension of the entire brand knowledge system
in consumers’ minds, reflecting their ability to identify the brand under different conditions:
the likelihood that a brand name will come to mind and the ease with which it does so
(Keller, 1993). Brand awareness refers to the ability of a potential customer to recognize the
brand while categorizing the brand to a specific class (Aaker, 1991). It is believed that brand
awareness is one of the main subjects to pay attention to in brand equity.

Consumer awareness of the brand refers to the ability to recall, recognize the brand in various
situation and link to the brand name, logo, jingles and so on to certain associations in memory
(Aaker, 1991). As mentioned by Keller (1998), brand awareness can be enhanced through
repeat exposure to the brand. In order to achieve brand awareness, two tasks are to be
accomplished, namely increasing brand name identity and associating it with the product

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class. Advertising and celebrity endorsement could be some useful tools for raising brand
awareness, (Tsai et al., 2007).

2.2.3.2 Brand Loyalty

Brand loyalty is believed to be one of the main components of brand equity. Brand loyalty
shows customer preferences to purchase a particular brand; customers believe that the
brand offers the enjoyable features, images, or standard of quality at the right price.
Agreeing to Oliver (1997), brand loyalty is a held commitment to repurchase or support a
preferred product continually, despite other brands.

Today marketers are seeking information on how to build brand loyalty. The increased profits
from loyalty come from reduced marketing costs, increased sales and reduced operational
costs. Further, loyal customers provide strong word -of-mouth, create business referrals,
provide references and serve on advisory boards (Bowen and Chen 2001). Hence, customer
loyalty has a powerful impact on firm’s performance and is considered by many companies
an important source of competitive advantage (Lam et al. 2004).

According to Aaker (1991), consumers tend to continue to purchase the same brand despite
the demonstrated benefits (including better features, lower price or convenience) by
competitors’ products. Aaker (1991, p.39) claimed that brand loyalty is the measure of an
attachment a customer has for a brand. The four brand loyalties according to Aaker (1991)
are:

i. Switchers: - they do not look at the brand name and they tend to purchase brand in the
sales and they are no loyalty to any brand.
ii. Habitual buyers: - These are the customers who purchase a brand out of the habitude and
do not see a need to change a brand. However, these buyers may change a brand if they
face some troubles. The buyer would relatively purchase another brand instead of solving
additional problems stopping from purchasing a regular brand.
iii. Satisfied buyers: - These customers are satisfied clients who tend to switch to another
brand due to thresholds risen (i.e. distance, additional costs, time consumption, etc.). In
order to retain clients and attract new buyers marketers are encouraged to create strategy
based on increasing perceived quality.
iv. Committed buyers: - The most loyal customers are committed buyers. The brand plays
important role in their lives and they do not raise question about switching the brand.

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 Committed buyers purchase the brand due to ties closely related between brand and
personal values.

2.2.3.3 Perceived Quality

Perceived quality is how a brands quality is seen by consumers. It is one of the key
dimensions in Aakers brand equity model. According to Aaker (1991), perceived quality is
the customer’s perception about the overall quality of the product. The perception about the
product quality is subjective and it is constructed by different knowledge of the same product
specification.

There is a connection between price and experienced quality. Price is one of the important
cues to evaluate perceived quality, Aaker (1991). A strong brand always has a higher price.
The higher price becomes a sign of high quality to the consumers. The quality is highly
associated with other reasons for buying a special brand.

A progressive link between loyalty and perceived quality has also been found by researchers.
Perceived quality makes the consumers satisfied which make them repurchase the product
which leads to loyalty (Lin & Chang, 2003). Further, perceived quality help consumers to
reduce the risk; the consumers trust the brand and know the brand what they will get (Uggla,
2001). Perceived quality associated with the brand will influence the Influence buying
behavior of consumer of branded goods.

2.2.3.4 Brand Associations

Brand association is anything relate to the preference of a brand (Aaker, 1991, p.109; Keller,
1993). This factors in brand association assist in the building brand’s image (Biel 1991).
Brand image is seen as the perceptions-reasoned or emotional- consumers attach to specific
brands (Dobni & Zinkhan, 1990).

Brand image consists of functional and symbolic brand beliefs. Different brands have
different associations to their prospective customers. Such kind of associations can provide
bases for them to make purchase decisions and even become loyal to the brand, Aaker
(1991). Brand associations can differentiate one brand from another. It is about brand
positioning that a well-positioned brand will find it hard to be attacked by its competitors due
to its uniqueness.

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Keller (1993, 1998) further divides brand associations into three categories, namely
attributes, benefits and attitudes.

Figure 1 Types of Brand Association

Source: Author’s own construction based on Keller, 1993)

 Attributes refer to the specific characteristics a product has. Attributes can be further
categorized into product-related attributes as well as non-product related attributes. For
product-related attributes, the overall features of the product or service are concerned. As
form on-product related attributes, price information, packaging, user imagery as well as
usage imagery are to be considered.
 Benefits are another category in brand associations. They can be classified into
functional, experimental and symbolic. Function benefits signify the physical or basic
advantages a brand may have. For experimental benefits, they are related to consumers’
emotional feelings. Symbolic benefits, on the other hand, refer to the signal effect that a
brand may impose on the consumers. Signal effect is determined by the image of
consumers and also the personality of the brand.
 Attitudes are regarded as the consumers’ overall assessments towards a brand. They
incorporate summary evaluations of information which represent how consumers feel in a
long run, lying in a continuum from positive to negative).

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2.2.4 Impact of Branding on Consumer Behavior

The impact of branding on customer behavior had been invested severally by both prolific
writers and emerging writers (Zhang, 2015). Branding creating brand names, logos, style etc.
for it to be distinguished from competitors and also whether product brand should be separate
from corporate brand or a separate brand away from other individual brands. Hence branding
has major impact on perception since perception is regarded as the recognition and
interpretation of sensitive information.

Branding undoubtedly add a significant amount of value to a particular product that instigate
consumers to purchase it. Consumers prior to acquiring a product develop a perceived level
of expected satisfaction or experience through the brand of the product especially when they
understand the brand of the organization. Implication of branding creates brand awareness for
consumer to ascertain point of difference and point of similarity with competitors.
Implication of branding strategies is that it creates brand awareness for consumer to ascertain
point of difference and point of similarity with competitors.

2.2.5 The Concept of Consumer Buying Behavior

The Consumer behavior study involves how an individual or groups select, purchase, use or
dispose of products, services ideas, or experience to satisfy their need and desires. Consumers
consider some attributes of a product before making a decision in respect of purchase
(Schiffman & Kanuk, 2010).

Assael (2004) defines purchase behavior as the tendency to act on the object; and according
to him marketers is always testing the elements of the marketing mix that may influence
buying behavior, for example by testing product concepts, advertising strategy, packing or
brand.

Marketers should strive to measure intention to purchase by the consumer and determine the
factors that influence these intentions. Assael (2004) proposes four types of purchasing
behavior along these two dimensions as shown in figure below.

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Figure 2 Consumer Buying Behavior
Source: Author’s own construction based on Assael (2004)

Complex buying behavior can be defined when consumers are highly involved for making a
purchase decision. Complex buying behavior calls for high level of involvement on the
part of the consumer. In case of high involvement, consumers distinguish salient
differences among the competing brands. Consumers’ are highly involved in case of
expensive and highly self-expressive products.

In dissonance reducing buying behavior the level of consumer involvement is also

high. Consumers typically undergo dissonance reducing buying behavior in case of costly
and infrequent purchase. In this type of consumer behavior the consumers find it
difficult to differentiate among the brands.

Habitual Buying Behavior, consumers´ level of involvement is low. This means that
consumers don’t search much information among the available brands and they don’t
find significant differences among the brands. The level of consumer’s involvement is
also low in case of products that are frequently purchased. Consumers do not usually
seek information much pertaining to available brands before making purchase decision.
The consumers don’t assess different attributes of the available brands and make
purchase decision as to which brand to buy .

In case of variety seeking buying behavior the level of consumer involvement is low,
but consumers perceive significant differences among the brands. In variety seeking
buying behavior, consumers very often switch from one brand to another.

Schiffman & Kanuk (2010) and Assael (2004) mentioned that the consumer made the
purchase behavior is influenced by several measurements, namely;

14
  Cultural measurement, which has the most influence and the most extensive in the
behavior of consumers so that marketers need to understand the influence of culture,
sub-culture, and social class of consumers;

 social measurement, which need to be considered when designing a marketing

strategy because these factors can affect consumer responses;

 personal measurements, which consists of the age and stage of life cycle, occupation,
economic situation, lifestyle, personality, and self-concept affects the consumer on
what is purchased; and

 Psychological measurement, include motivation, perception, learning and beliefs and

attitudes also influence the selection of consumer purchases.

2.3 Empirical Review

The concept of brand is vital and draws synergy between organizational resources (human,
fixed resources, tangibles and intangibles) and the strategic objectives of the organization to
achieve success among competitors. In this regard, after achieving success through branding,
maintaining and managing the brands reputation becomes integral to be the market leader.

Bickerton, (2003) considered the emerging focus in both academic and practitioner literature
on the concept of the corporate brand and argues that the underlying generative mechanisms
and processes that enable successful corporate brand management are not clearly understood.
Alizadeh, et al., (2014) determined Comparison of Product and Corporate Branding Strategy:
a conceptual framework and concluded that competition within the free market environment
has grown to become a throat cutting one and hence calls for distinctive branding in order to
be easily noticed by consumers.

An Empirical Study of Starbucks Coffee in Taiwan Tu et al. (2012) indicated that

organizational branding directly affects customer satisfaction. In addition, the study found
that the level of customer satisfaction adequately influences customer loyalty which was
supported by the findings of (Eakuru and Mat 2008; analyzed and discuss the strategic
positioning of associations that can be established between a corporate brand and entities in
its surrounding network such as brands, product categories, persons, places and institutions.

15
2.4 Conceptual Framework

Conceptual framework is the system of concepts, assumptions, expectations, beliefs, and

theories that supports and informs your research is a key part of your design. The most
important thing to understand about conceptual framework is that it is primarily a conception
or model of what is out there that you plan to study, and of what is going on with these things
and why a tentative Theory of the phenomena that you are investigating. Therefore, the
author will adopt the relevant theories for the conceptual framework model to match with the
problem and purpose of this research.

Figure 3 Conceptual frame work linking branding and consumer buying behavior
Source: author’s construction

From the figure above model shows that, branding is the independent variable that influence
the outcome of consumer buying behavior that is dependent variable. Dependent variable is
being influenced by elements of branding that show relationship between them.
Representatives of branding in the above model are brand association, perceived quality,
brand awareness and brand loyalty. That is, the existence of branding representatives
measures the outcome of dependent variable.

The author also was adopting the relevant theories for the conceptual framework model to
match with the problem and purpose of this research. That is, as figure 3 explains the theories
review on the interrelation between advertising and reference group influence on the

16
consumer buying behavior of beer product. From the above conceptual frame work the
authors was developed the following hypothesis.

H1: There is a significant effect of brand awareness on consumers buying behaviour in beer
product.

H2: There is a positive effect of brand association on consumers buying behaviour in beer
product.

H3: There is a positive effect of perceived quality on consumers buying behaviour in beer
product.

H4: There is a positive effect of brand loyalty on consumers buying behaviour in beer
product.

17
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

Research methodology refers to how and where the research is going to be conducted. Is the
way to systematically solve of the research problem, (Kothari, 2004). This chapter presents
the background of the study area and the selected research methods. In the study various
research methodologies were used in the whole process of undertaking research around the
area occupied consumers. The research methodologies includes research design, population
of the study, sampling techniques and sample size, data collection procedures, the reliability
and validity precautions taken. Finally, it explains the ethical considerations that the
researcher takes into account.

3.2 Description of Research Area

Addis Ababa is the capital and largest city of Ethiopia, the country's commercial,
manufacturing, and cultural center. It is situated in central Ethiopia at an elevation of about
2440 m. The city is populated by individuals from various districts of Ethiopia. Addis Ababa
is the capital city of Ethiopia and it has 10 sub cities. According to the Central Statistical
Authority (CSA) the population of Addis Ababa in 2016 estimated as 10 million. Since the
population of the study is infinite the detailed description of population of consumer buying
behavior city region picked from respective area. The study area is strategic due to the fact
that the city is hallowed with different types of beer industries with large number of
consumers hence it is simple to collect data as due to large number of people consume
different beer brands in this city.

In Ethiopia, beer is an integral part of peoples’ lives. Peoples especially during holiday’s
celebrations and recreations they buy and consumed. According to the Central Statistical
Authority (CSA) of 2017 reports, breweries in Ethiopia are produced 12 million hectoliters of
beer per year. There are hard facts indicating that beer market in Ethiopia has been growing
and the demand for it is rising. Consumption of these factory beers are also said to be largely
urban.

18
 3.3 Research Approach

Selecting the right research approach is important for the research as it has an effect on the
relevant information extract from the data. There are two types of method researchers use to
collect data: qualitative and quantitative method. Qualitative research method is more
intrusive and less structured than quantitative research techniques and, thus, are appropriate
when the research is exploratory in nature, when the area for examination is unfamiliar to the
researcher.

While quantitative research method is aimed to classify features, count them, and contrast
statistical models in an attempt to explain what is observed and the data collected are in form
of number and statistics. According to McDaniel and Roger (2002), to study the meaning of
involving variables statistically, quantitative research is considered useful.

The aim of this research is to identify the influences of branding on consumers’ purchase
behaviour. According to the above discussion, the researcher used quantitative methodology
to allow the researcher measure and analyze the dependent variable (consumer behavior) and
the independent variable (branding).

3.4 Research Design/Type

Research design is a logical and systematic plan prepared for directing research study. It
deals with issues as techniques for data collocation, sampling technique as well as time and
cost constrain. (Kothari, 2001). According to Bryman and Bell (2007), a research design
provides a framework for the collection and analysis of data. A choice of research design
reflects decisions about the priority being given to a range of dimensions of the research
process.

In this study the researcher used explanatory research design to enable the researcher
accomplishes the objectives of the study. The main aim of explanatory research is to identify
any causal links between the factors or variables that pertain to the research problem.

3.5 Sampling Design

Sampling is the process of selecting respondents to be involved in the study from the studied
population. In addition, it can be defined as the process of obtaining information about an
entire population by examining only a part of it (Kothari, 2004).

19
The reason why samples are important is that within many models of scientific research, it is
impossible (from both a strategic and a resource perspective) to study all the members of a
population for a research project. It just costs too much and takes too much time. Instead, a
selected few participants (who make up the sample) are chosen to ensure that the sample is
representative of the population. Here below the sample design of the research work.

3.5.1 Target Population

Population may also imply the group of people living in a given geographical area and share
common cultural characteristics. The target populations of this research were based on a
section of people from Addis Ababa. This location is strategic due to the fact that the
presence of different types of beer brands with large number of consumers living in the city.
Hence it is simple to collect data for all beer brand consumers.

3.5.2 Sampling Technique

The researcher was adopted convenience sampling of non-probability technique for the study.
Convenient Sampling refers to researching subjects of a population that are easily accessible
to the researcher and it is affordable, easy, and the subjects are readily available (Sakaran,
2003). This was because of the financial constraints hence under the circumstance the
convenience otherwise known as the sampling random was used to gather the respondents. In
this case consumers who were available and were also willing to participate were each given
a questionnaire to complete. The researcher was provided the needed assistance to the
respondents in the completion of the questionnaires. These were in the form of explaining the
study objects, and clarifying the individual question since some of the respondents had low
level of formal education.

3.5.3 Sample Size Determination

Since the population of the study was infinite the researcher was applied infinite statistical
formula in the sampling size estimation will take to answer the questionnaire. The sample
size will determined with the use of the following formula as presented below:

( )

Where: n = required sample size

Z= Degree of confidence (i.e. 1.96)2
20
 P = Probability of positive response
e = Tolerable error (0.05)2
In the study area from ten (10) beer consumers the researcher will select eight (6) persons for
questioner. Therefore, the sample size determined as follows:

( )
( ) ( )
( )
n= ( )
n= 246
In the sampling size determination 246 respondents were taken to answer the questionnaire.
These comprised of 221 customers and 25 retailers and whole sealers.

3.5.4 Sampling Procedure

The researcher used the convenience sampling method to get responses from the sample size.
By using self-administrated survey, the target respondents were approached and distributed
questionnaire during on and off buying situation.

3.6 Sources of Data

3.6.1 Primary Source

Primary data is original research that is obtained through first-hand investigation, and it
includes information collected from interviews, experiments, surveys, questionnaires, focus
groups and measurements (Sakaran, 2003).

This information was received directly from the respondent based on the researcher needs.
Primary data have been collected from selected respondent by using questionnaire.

3.6.2 Data Collection Methodology

The researcher considered several data collection methods and finally he chose structured
questionnaires and interviews. This was because questionnaires have the tendency to cover a
wider area within a short time. Moreover, it is preferred in studies which adopt the
quantitative research design approach. And this study is not an exception.

The researcher used self-administrated survey on the target respondents and data were
collected face-to-face on and off buying situation of the consumer. At the target locations, the

21
target respondents were approached and the researcher asked if they would like to participate
in the survey or not and if they would, the questionnaire have been given to them with a clear
explanation on how to complete it.

3.6.3 Data Collection Instrument

3.6.3.1 Questionnaire

The questionnaires were distributed to the targeted respondents of the study. Two main
measurements scales was adopted and used in the study namely; nominal and ordinal. In the
nominal scale the variables that will be age group, gender, profession, education. In the
ordinal scale, a five-point scale was used where 5-implies strongly agree and 1-implies
strongly disagree. The questionnaires were further grouped according to the objectives of the
study for easily validity and identification.

3.6.4 Data Analysis Methods

The data were analyzed, by using statistical tool-SPSS where correlation and regression
would be employed. Fisher (2007) claimed that correlation analysis is a measure of
association between two or more variables.

A correlation is used as the method to analyze relationship between the independent variables
and dependent variable; in this research the correlation relationship between branding and
buying decision will be studied. Wagner (2007) states that regression analysis helps to predict
one variable from information that is about other variables. Therefore, in the study, multiple
regressions is considered practical and applied as well.

3.7 Validity and Reliability

3.7.1 Validity

Validity was concerned with whether the findings are really about what appear to be
(Saunders et. al; 2003), validity defined as the extent to which data collection methods
accurately measures what they were intended to measure (Saunder, et. al, 2003). The
researcher was carried out a pre-test and did some revision before setting out the
questionnaire. Therefore, the questionnaire as a measuring tool used in this study will meet
the requirement of content validity.

22
 3.7.2 Reliability

According to Saunder et al (2003), reliability refers to the degree to which data collection
method will yield consistent findings, similar observations would be made or conclusions
reached by other researchers or there is transparency in how sense was made from source.
The purpose of reliability is to examine the level of non-error in measurement, which means
to examine the consistency of measurement.

This study was adopted Cronbach’s alpha test or the reliability coefficient have been used to
measure the internal consistency between the multiple measurements of a variable in a
questionnaire. According to Hair et al. 2006 (p.137), this test is the most widely used to
assess the consistency of the entire scale. Cronbach’s alpha ranges in value from 0 to 1 and
used to describe the reliability of factors extract from questionnaires.

According to Gliem and Gliem (2003), the closer Cronbach’s alpha coefficient is to 1.0 the
greater the internal consistency of theitems in the scale. The following rules of thumb
indicated acceptable of Cronbach’s alpha coefficient: “_ > .9 – Excellent, _ > .8 – Good, _ >
.7 – Acceptable, _ > .6 – Questionable, _ > .5 – Poor and _ < .5 – Unacceptable” In this
paper, the authors was applied Cronbach’s alpha test to measure the internal consistency of
questionnaires to test its reliability.

3.8 Research Ethics

Confidentiality; the information obtained from respondents was kept confidential and used
for research purpose only. The researcher was make sure that, the information obtained was
not be disclosed to parties that may not use them well or disclosing them in a way that may
bring harm to the providers. These include taking only the needed information and leave what
does not concern the research.

Informed consent; Participants has been fully informed about the procedures and risks
involved in research. All participants were have full information about the importance of this
study and if there is any risk the researcher will make sure the participant before filling the
questionnaire provide are well informed on what the research is all about. Informing the
respondents also enable the researcher to get the concerned data and not otherwise. Voluntary
participation, the respondents have voluntary participation when filling the questionnaires

23
and attending the interviews. There are no undue influences for the participants. Researcher
will makes sure that participants are not forced into participating in research.

24
 CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1 Introduction

In this chapter, analysis of data and research findings have been interpreted in relation to the
objectives of the study and with respect to the research questions developed to guide the
study. Questionnaires were distributed to 246 respondents selected by convenience sampling
of non-probability technique. From these only 240 were properly filled and returned back.
Thus, the analysis is based on the valid 240 questionnaires response from customers.

The data collected through questionnaire, were analyzed and interpreted by using the SPSS
software. Also for data analysis descriptive statistics, correlation, and regression data analyze
techniques were employed. Demographic characteristics of respondents are summarized by
using frequencies and percentages for all variables including age, sex and educational
attainment.

4.2 Empirical Description of the Study

After the collection of the questionnaires from the respondents, the researcher explored the
impact of branding on the customer buying behavior of beer products.

The researcher used the 5 dimensions of branding scale; (brand loyalty, brand awareness,
perceived quality and brand associations) which were subdivided into 19 statements, which
were directed to measuring the impact of branding on beer products.

There was also a demographic part that provides general information about respondents on
age, gender, educational status and occupation. This was to enable the researcher to get a
better understanding of the type respondents and relate to customer buying behavior.

25
4.2.1 Demographic Profile

The demographic data of the beer consumers were collected through the questionnaire
conducted. This analysis shows demographic information of the respondents in terms of sex,
age, educational level and occupation.

4.2.1.1 Characteristics of Responses on Gender

The term "gender" distinguishes the set of learned expectations, behaviors, and attitudes
about being a man or woman from our biologically determined traits collectively termed our
sex. The study found that both gender were involved in data collection and thus the findings
could not suffer from gender biasness. That means, both of them are engaged in branding and
consumer buying behavior, both are at the same position to acquire what they wanted.

Table 1 Respondents Sex Distribution:

Gender
Valid Cumulative
Frequency Percent
Percent Percent
male 202 84.2 84.2 84.2
Valid female 38 15.8 15.8 100.0
Total 240 100.0 100.0
Source: Researcher’s survey finding (2018)

In the table 1 above out of 240 participants 204 were male (84.2 percent) and38 were female
(15.8 percent) respondents, where both of them where used in data collection. This implies
that males were the dominant in the beer market particularly in the current study setting. Such
a huge gap, even though not the aim of this study needs a considerable attention.

4.2.1.2 Characteristics of Responses on Age

The time of life when a person becomes qualified to assume certain civil and personal rights
and responsibilities, usually more than 18 years old, so the researcher use different ages
group to make sure research conducted and responded to all peoples. This was made the
research clear because there are no complaints of bias in age. The study employs respondents
of different age in order to get wide answers concerning the subject.

26
Table 2 Age of Respondents:

Age of respondents
Valid Cumulative
Frequency Percent
Percent Percent
19-25 years 30 12.5 12.5 12.5
26-30 years 102 42.5 42.5 55.0
31-40 years 71 29.6 29.6 84.6
Valid
41-65 years 35 14.6 14.6 99.2
over 65 2 .8 .8 100.0
Total 240 100.0 100.0
Source: Researcher’s survey finding (2018)

According to the table 2 above the age of 19-25 were 30 equivalent to (12.5 %), 26-30 were
102 equivalent to (42.5%), 31-40 were 71 equivalent to (29.6%), 41-65 were 35 equivalent
to (14.6%) and 65+ and they were 2 equivalent to (0.8%). Generally26-30 age groups have
many respondents compared to other groups but different age group employed in this
research.

4.2.1.3 Characteristics of Responses on Education

Education may be formal or informal. Informal education indicates to the general social
process by which human beings acquire the knowledge and skills needed to function in their
culture. Formal education refers to the process by which teachers instruct students in courses
of study within institutions. Therefore, the study employs respondents of both forms of
education.

27
Table 3 Educational Level of Respondent

Educational attainment
Cumulative
Frequency Percent Valid Percent
Percent
Master’s Degree 16 6.7 6.7 6.7
First Degree 110 45.8 45.8 52.5
Diploma 30 12.5 12.5 65.0
TVT High school 19 7.9 7.9 72.9
Valid High school 26 10.8 10.8 83.8
Elementary school 23 9.6 9.6 93.3
Informal education 14 5.8 5.8 99.2
Other 2 .8 .8 100.0
Total 240 100.0 100.0
Source: Researcher’s Survey Finding (2018)

Regarding respondent educational level, table 3 revealed that the higher number of
participants were First Degree holder (45.8 %), followed by diploma holders (12.5 %) and
also 10.8 % and 9.6 of the respondents were High school and Elementary/Middle school
leaver respectively. About 6.7%, were master’s degree holders and about 0.8% of the
respondents were within other unspecified category.

4.2.1.4 Characteristics of Responses on Occupation

Occupation is a job by which somebody earns a living. The study includes numerous
occupational areas, such as Private Service, Government Service, various trades, Business
owner, and technical training and others.

28
Table 4 Occupation of Respondents:

Occupation of respondents
Valid Cumulativ
Frequency Percent
Percent e Percent
Private Service 85 35.4 35.4 35.4
Government Service 69 28.8 28.8 64.2
Business owner (Entrepreneur) 2 .8 .8 65.0
Valid Self-employed (merchants) 30 12.5 12.5 77.5
University teacher 5 2.1 2.1 79.6
Other 49 20.4 20.4 100.0
Total 240 100.0 100.0
Source: Researcher’s Survey Finding (2018)

Concerning about the occupation of respondent the greater proportion were private and
government service provider which accounts 35.4% and 28.8 % respectively. About 20.4% of
the respondents were other category of occupation. 12.5% respondents were Self-employed
(merchants) and the remaining 2.1% and 0.8% respondents were university teacher business
owner (entrepreneur) respectively.

4.2.2 Coding of Branding Dimensions

The brand dimensions/items were main variables used in this study and coded. These
dimensions/items in order to ease the analysis of data collected. Here is the coding of the
variables for analysis.
Brand Awareness (BA)
(BA1) I can easily and quickly Recall this brand during any buying Power
(BA2) I have adequate Knowledge about this Brand
(BA3) My Position of brand image is high towards this brand
(BA4) I can recognize this Brands easily than competitive brands
At the place of purchase, I could visually detect my preferred brand without
(BA5)
much effort.
(BL1) Brand Loyalty (BL)
(BL2) I would continue to use this brand for the next time
(BL3) I like to talk to other people about this brand

29
(BL4) I consider myself loyal to this brand
(BL5) This brand is more than a product to me
I usually trust this brand because of high Social Image
Perceived Quality (PQ)
(PQ1) I usually feel the test and color this beer brand
(PQ2) I usually purchase this brand with Product Performance
(PQ3) I usually purchase this brand with Value added features
(PQ4) Improvement is key in my choice for beer brand
Brand Association (BAS)
(BAS1) I can have many connections or association between experience in my life
and this product.
(BAS2) I usually trust this brand because of the advertisement with celebrity and
famous actress
(BAS3) I like this brand due to its place of origin
(BAS4) I tend to notice this brand with Celebrity and sports endorsement, Well-
known and admired people to promote a product
(BAS5) I use this brand to define and express the “I” and “me” Within myself.
Recoding of brand dimensions

BA Average score of Brand Awareness

BL Average score of Brand Loyalty

PQ Average score of Perceived Quality

BAS Average score of Brand Association

4.3 Empirical Results and Analysis

This section presents the main analysis whose purpose to find out the researcher attains the
objectives of the study which were mainly describing empirical phenomena which were
impact of branding and customer buying behavior. The researchers were checking the
reliability of the brand dimension made up of five Likert scale and cronbach’s alpha was
computed for each branding dimension.

30
4.3.1 Reliability of Data Analysis

Cronbach’s alpha reliability analysis was conducted on the independent variables in order to
determine the reliability of the instrument or theoretical assurance of each question in the data
set used. According to Gliem and Gliem (2003), has suggested 0.70 as the acceptable level
for reliability measure. Alpha values ranged from 0.832 to 0.929, thus indicating an
acceptable level of reliability. The following rules of thumb indicated acceptable of
Cronbach’s alpha coefficient: “_ > .9 – Excellent, _ > .8 – Good, _ > .7 – Acceptable, _ > .6 –
Questionable, _ > .5 – Poor and _ < .5 – Unacceptable

Table 5 Cronbach's Alpha Data Analysis:

Reliability Statistics
Total number of
Cronbach's Alpha Items
0.763 5
Source: Researcher’s Survey Finding (2018)

As stipulated on table 5 above, the SPSS result the internal consistency of the branding items
was assessed by computing the total reliability scale. The total reliability scale for the study
was 0.763, indicating an overall reliability factor was an acceptable. That is, the results show
internal consistency between variables.

According to table 4.5, the reliability scale for all four dimensions of branding and also, the
reliability scale for each dimension was calculated. Looking at the reliability coefficients of
all four dimensions on table, all dimensions have coefficients slightly below the total
reliability, and this could as a result that some items under each dimension seemed too
similar.

4.3.2 Customers’ View on Branding and Buying Behavior

Regarding the customer understanding of branding and buying behavior in the case of beer
products consumers give the following response in this study.

Table 6 Customers’ Understanding about Branding

Valid Cumulative
Frequency Percent
Percent Percent

31
 Name 80 32.9 33.3 33.3
Labeling 63 25.9 26.3 59.6
Company image 37 15.2 15.4 75.0
Valid
Slogan or motto 26 10.7 10.8 85.8
All of the above 34 14.0 14.2 100.0
Total 240 98.8 100.0
Missing System 3 1.2
Total 243 100.0
Source: Researcher’s Survey Finding (2018)

From the above table 6 with the understanding of branding 32.9% of respondents have
understanding on brand name, followed by 25.9% of the respondents who said they
understand labeling of the product, 15.2% of the respondents easily identifies company
image, 14% of respondents have know-how on all branding elements and other 10.7% said
they easily recognizes the slogan or motto of the organization.

Table 7 Response of Customer’s on the Factor for Brand Selection.

Valid Cumulative
Frequency Percent
Percent Percent
Advertisement 89 36.6 37.1 37.1
Past experience with the brand 68 28.0 28.3 65.4
Self-judgment 21 8.6 8.8 74.2
Valid Group reference influence 15 6.2 6.3 80.4
Availability and accessibility 45 18.5 18.8 99.2
Other 2 .8 .8 100.0
Total 240 98.8 100.0
Missing System 3 1.2
Total 243 100.0
Source: Researcher’s Survey Finding (2018)

This research just wanted to know where the consumers get to know different brands. Table 7
above 89 respondents equivalent to (36.6%) it was through advertisement, 68 respondents
equivalent (28%) they say past experience with the brand, equated to 45 respondents
equivalent to (18.5%) was by availability and accessibility, 15 respondents 0r 6.2 % through

32
group reference or influence friends and 2 respondents equivalent to (0.8%) said through
other. It is concluded that advertisement is the most tool where most of consumer know the
brands and it is a means of their buying behavior.

Table 8 Customers’ Buying Decision for Most Preferred Beer

Valid Cumulative
Frequency Percent
Percent Percent
Product Quality and testing 100 41.2 41.7 41.7
Cost (time cost, energy cost) 4 1.6 1.7 43.3
Promised benefits of the company 24 9.9 10.0 53.3
Brand image 23 9.5 9.6 62.9
Valid
Distribution availability 33 13.6 13.8 76.7
Familiarity, likeability and Reputation 54 22.2 22.5 99.2
Other 2 .8 .8 100.0
Total 240 98.8 100.0
Missing System 3 1.2
Total 243 100.0
Source: Researcher’s Survey Finding (2018)

According to table 8 on what are the attributes consumers prefer when they wanted to choose
a particular brand, due to different behavior there are also different attributes consumer prefer
the most. The research shows 100 respondents equivalent to (41.2%) agreed on product
quality and testing is their preferable attribute, 33 respondents said availability is the most
attribute they preferred, around 24 and 23 respondents said that Promised benefits of the
company and brand (company image) made them to for their buying decision respectively.
Cost and other factors accounts 1.6% and 0.8 % respectively have impact on consumer
buying behavior.

4.3.3 Statistics Indicating the Impact of Branding on Beer Products

This sub section of the analysis provides on how branding dimensions that is; brand
awareness, brand loyalty, perceived quality and brand association affect the buying behavior
of the consumers. After the collection of the questionnaires from the respondents, the
researcher explored the impact of branding on the consumer buying behavior of beer products
in the study area.

33
For branding dimensions analysis mean score, standard deviation and one-sample t-test
decision was made, in the analysis. That is, average mean greater than 4 high, average mean
equal to 4 medium and average mean less than 4 low throughout the study; and standard
deviation were used to interpret each responses disparity from the mean.

4.3.3.1 Consumer Response on Brand Awareness

Brand name awareness plays an important role in buying behaviors of a consumer. If

customer had already heard the brand name, the customers would have idea about the
product this makes them feel more comfortable at the time of buying which is not the
case with an unknown brand.

Table 9 Customer Buying Behavior Concerning about Brand Awareness

Sample
Brand Awareness Mean SD
(N)
I can easily and quickly Recall this 3.87 1.133
1 240
brand during any buying Power
I have adequate Knowledge about 240 4.07 0.831
2
this Brand
My Position of brand image is high 240 3.99 0.926
3
towards this brand
I can recognize this Brands easily 240 4.12 0.884
4
than competitive brands
At the place of purchase, I could
5 visually detect my preferred brand 240 4.10 0.961
without much effort.

Overall Mean 4.03 0.556

Source: Researcher’s Survey Finding (2018)

Table 4.9: shows that overall brand awareness concerning about customer buying behavior is
high (4.03); this implies that customers of the total mean of respondents were high view
regarding brand awareness, that when they go for purchasing, they choose the well-
known brands product because they have good information about the product. In addition
to this, the standard deviation value (SD= 0.556) also shows the response of all respondents
was around the mean value. This shows that the respondents were not much more dispersed.

34
4.3.3.2 Consumer Response on Brand Loyalty

Brand loyalty shows customer preferences to purchase a particular brand; customers

believe that the brand offers the enjoyable features, images, or standard of quality at the
right price. Brand loyalty represents an encouraging approach towards a brand resulting
in regular purchase of the brand over time. Brand loyalty is shape of continue purchasing a
conscious to regular buying the same brand.

Table 10 Customer Buying Behavior Concerning about Brand Loyalty

Sample
Brand loyalty Mean SD
(N)
I would continue to use this brand
1 240 4.15 0.940
for the next time

I like to talk to other people about

2 240 4.10 0.861
this brand

3 I consider myself loyal to this brand 240 4.19 0.943

This brand is more than a product to

4 240 4.07 0.976
me

I usually trust this brand because of

5 240 4.28 0.858
high Social Image

Overall Mean 4.17 0.477

Source: Researcher’s Survey Finding (2018)

The overall mean of brand loyalty Addis Ababa beer consumers have is ranking from 4.07 to
4.28 (table 10) which is considered high. This represents the target customer tend to attach to
brands of their preference. The value of the standard deviation, (SD=0.477) implies that the
standard deviation value also shown the response of both respondents was around the mean
value. This shows that not much more dispersed between the respondents. This indicate most
of the people was loyal to their specific brand beer and over time they buy and
consume their preferred beer and they satisfied gained the trust in the brand.

4.3.3.3 Consumer Response on Perceived Quality

Perceived quality shows customer’s perception and the product’s quality or superiority
which provides the fundamental reason to the customers to purchase. Mostly customers

35
prefer to buy products from a well-known and familiar brand, rather than opting and
taking a chance by going for the unknown or new brand.

Table 11 Customer Buying Behavior Concerning about Perceived Quality

Sample
Perceived quality Mean SD
(N)
I usually feel the test and color this
1 240 4.20 0.925
beer brand

I usually purchase this brand with

2 240 4.12 0.930
Product Performance

I usually purchase this brand with

3 240 4.21 0.883
Value added features

Improvement is key in my choice

4 240 4.03 0.963
for beer brand

Overall Mean 4.14 0.580

Source: Researcher’s Survey Finding (2018)

As we can see in Table 11, the overall average mean (4.14) showing the similar opinion
towards brands and they expected perceived quality. In addition to this the standard deviation
(SD= 0.580) implies that the standard deviation value is not different from the mean value.

4.3.3.4 Consumer Response On Brand Association

The brand association creates a positive attitude and feeling that makes a connection of
the customer with the brand, especially when it comes to decision making.

Table 12 Customer Buying Behavior Concerning about Brand Association

Sample
Brand Association Mean SD
(N)
I can have many connections or association
1 between experience in my life and this 240 4.00 1.141
product.
I usually trust this brand because of the
2 advertisement with celebrity and famous 240 4.07 0.972
actress

3 I like this brand due to its place of origin 240 3.95 1.085

36
 I tend to notice this brand with Celebrity
4 and sports endorsement, Well-known and 240 4.14 0.969
admired people to promote a product

I use this brand to define and express the “I”

5 240 4.08 1.001
and “me” Within myself.

Overall Mean 4.05 0.670

Source: Researcher’s Survey Finding (2018)

In the above table 12; the respondents’ response about the brand association was rated as
overall mean 4.05. This implies that consumer also pay much attention to their preferred beer
brands as a significant asset to their characters and personality. The value of the standard
deviation, (SD=0.670) implies that the standard deviation value also shown the response of
both respondents was around the mean value. This shows that not much more dispersed
between the respondents.

4.4 Inferential Analysis

This section of the analysis presents relations between various components of branding and
consumer buying behavior. In this research, correlation and multiple regressions are the
selected method to study the relationship between the independent variables; brand loyalty,
brand awareness, brand association, and brand perceived quality and the dependent variable;
consumers buying behaviors.

4.4.1 Correlations Analysis

A correlation analysis with Pearson´s correlation coefficient (r) was conducted on all
variables in this study to explore the relationships between variables. A correlation
coefficient is to summarize the relationship between variables with a single number that falls
between -1 and +1. To interpret the strengths of relationships between variables, the
guidelines suggested by Field (2005) were followed, mainly for their simplicity.

The classification of the correlation coefficient (r) according to Field (2005) is as follows: 0.1
to 0.29 is weak; 0.3 to 0.49 is moderate; and > 0.5 is strong. Although it cannot make direct
conclusion about causality, we can take the correlation coefficient a step further by squaring
it (Andy, 2005).

37
Table 13 Correlation between Branding and Consumer Buying Behavior

Correlations
consumer
Average Average Average Average
buying
BA BL PQ BAS
behavior
Pearson
consumer 1
Correlation
buying
Sig. (2-tailed)
behavior
N 240
Pearson
.720** 1
Correlation
Average BA
Sig. (2-tailed) .000
N 240 240
Pearson
.442** .176** 1
Correlation
Average BL
Sig. (2-tailed) .006 .006
N 240 240 240
Pearson
.480** .286** .255** 1
Correlation
Average PQ
Sig. (2-tailed) .002 .000 .000
N 240 240 240 240
Pearson
.757** .893** .215** .284** 1
Correlation
Average BAS
Sig. (2-tailed) .000 .000 .001 .000
N 240 240 240 240
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Researcher’s Survey Finding (2018)

Based on the correlation result in the above table revealed that brand association had a strong
relationship with customer buying behavior with the value of 0.757(or 75.7%) followed by
brand awareness with the value 0.720 (or 72%). As shown in above table perceived quality
and brand loyalty had moderate relationship with customer buying behavior by the value of
0.480 (or 48%) and 0.442 (or 44.2%) respectively.

This indicates that all brand dimensions has a positive linear relationship with customer
buying behavior.

38
4.4.2 Regression Analysis

The regression analysis has done using customer buying behavior as dependent variable and
the branding dimensions (brand awareness, brand loyalty perceived quality, brand
association) as independent variable

4.4.2.1 Test for Normality of Data

In statistics, normality tests are used to determine if a data set is well-modeled by a normal
distribution and to compute how likely it is for a random variable underlying the data set to
be normally distributed. A graphical tool for assessing normality is the normal probability
plot of the standardized data against the standard normal distribution. For a normal data the
result should fall approximately with in a normal curve line, Gujarati (2002).

Figure 4 Test for Normality Of Data

Source: Researcher’s Survey Finding (2018)

For this study a normality test has been conducted and the result on figure 4; shows that most
of the line falls approximately with in a normal curve line, and it is possible to conclude that
the study met the first test of regression and the data are normally distributed .
39
4.4.2.2 Test for Multicollinearity

In a statistics, multicollinearity (also collinearity) is a phenomenon in which two or more

predictor variables in a multiple regression model are highly correlated, meaning that one can
be linearly predicted from the others with a non-trivial degree of accuracy.

In this study Variable Inflation Factor (VIF) technique is employed. The VIF is a measure of
the reciprocal of the complement of the inter-correlation among the predictors: (VIF=1/ (1-
r2). The decision rule is a variable whose VIF value is greater than 10 indicates the possible
existence of multicollinearity problem. Tolerance (TOL) defined as 1/VIF, It also used by
many researchers to check on the degree of collinearity. The decision rule for Tolerance is a
variable whose TOL value is less than 0.1 shows the possible existence of multicollinearity
problem. (Gujarati, 2002)

Table 14 the multicollinearity statistics

Coefficientsa
Collinearity Statistics
Model
Tolerance VIF
Brand awareness 0.218 4.579

Brand loyalty 0.899 1.112

1
Perceived quality 0.896 1.116

Brand association 0.219 4.573

a. Dependent Variable: branding

Source: Researcher’s survey finding (2018)

Table 14 shows that: VIF values for all variables are less than the tolerable value that is 10.
And Tolerance value of all variables also is above 0.1 which indicates that this model is free
from multicollinearity problem between the dependent variables.

4.4.2.3 Test of Independent of Residuals

Multiple linear regression models assume that the residuals are independent of one another.
The Durbin-Watson statistic is used to test for the presence of serial correlation among the
residuals. The value of the Durbin-Watson statistic ranges from 0 to 4. As a general rule, the
residuals are not correlated if the Durbin-Watson statistic is approximately 2, and an
acceptable range is 1.50-2.50

40
Table 15 Test of Independent of Residuals

Model Summaryb
Adjusted R Std. Error of the
Model R R Square Durbin-Watson
Square Estimate

1 0.309 0.893 0.797 0.773 1.890

a. Predictors: (Constant): Branding

b. Dependent Variable: customer buying behavior
Source: Researcher’s survey finding (2018)

Table 15: shows that the assumption of independence of residuals is met. Durbin Watson
value for this study is 1.890.

4.4.2.4 Testing For Model Fit (ANOVA)

F value where F equals to mean square of explained data divided by mean square of residual
data, Sekaran, (2003).

Table 16 ANOVA summary

ANOVAb
Sum of Mean
Model df F Sig.
Squares Square
Regression 4.082 4 1.020 32.425 .000a
1 Residual 1.039 33 .031
Total 5.121 37
a. Predictors: (Constant), branding
b. Dependent Variable: consumer buying behavior
Source: Researcher’s survey finding (2018)

ANOVA table, overall significance/acceptability of the model from a statistical perspective

can be determined. As the significance value of F statistics shows a value (.000), which is
less than p< 0.05, the model is significant. Significance of the overall model by p-value of
0.000 which is below the alpha level, i.e. 0.05, which means, the independent variables or the
overall dimensions of branding has statistically significant relationship with the dependent
variable (customer buying behavior) under this study.

41
4.4.2.5 Model Summary

Regression model was applied to test how far the service quality had impact on customer
satisfaction. Coefficient of determination-R2 is the measure of proportion of the variance of
dependent variable about its mean that is explained by the independent or predictor variables
Hair, et.al, (1998),higher value of R2 represents greater explanatory power of the regression
equation.

According to the descriptive statistics, the overall mean for all four feature of brand equity or
dimension is ranking from 4.03 as the lowest and 4,158 as the highest mean which
demonstrating the response of the customers’. This shows brand awareness, brand loyalty,
brand perceived quality and brand associations; actually exist in the mind of the consumer.
However, the model summary derived from multiple regressions presented as follows.

Table 17 Model Summary; Impact of Branding on Customer buying behavior

Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square
Estimate

1 0.893 0.797 0.773 0.177

a. Predictors: (Constant): branding

b. Dependent Variable: customer buying behavior
Source: Researcher’s survey finding (2018)

Under the model summary of table 16: shows that the R or coefficient of correlation of the
model is 0.893 or 89.3pecent. This shows there is a very strong relationship between the
independent variables and dependent variable.

Coefficient of determination or R Square of the model is 0.797. R square shows branding is

contributing to the customer buying behavior by 79.7% and remaining 20.3% can be
attributed by other factors which are not studied, because they are beyond the scope of study.

The model summary derived from multiple regression shows that adjusted R square is 0.773
which indicates the amount of variation in one variable that is accounted for by another
variable. In another word, through the survey with 240 target respondents, their perception of
branding is account for 77.3 percent of total variation in consumer buying behavior. This

42
indicates that the level of relationship between branding and consumer’s buying behavior is
on beer brand is high.

4.4.2.6 Coefficient of Determination

The study analyzed four major brand dimensions on the data using multiple linear regression
models. Since the entire four brand dimensions were not violated, the researcher examined
the data collected by the questionnaires using multiple regression model as follow.

Linear regression estimates the coefficients of the linear equation, involving one or more
independent variables that best predict the value of the dependent variable. In multiple
regressions we use an equation of:

yi= (b0+b1X1+b2X2+………. +bnXn) +Ei

Where:
 yi=the outcome variable
 b0=the coefficient of the predictor (X0)
 b1=the coefficient of the first predictor (X1)
 b2=the coefficient of the second predictor (X2)
 bn=the coefficient of the nth predictor(Xn)
 Ei = the difference between the predicted and observed value of y for the i th
participant
Therefore, in this study the following multiple regressions were used:
Where:
 (yi) =customer buying behavior
 BA (X1) =Brand Awareness
 BL (X2) = Brand Loyalty
 PQ (X3) =perceived quality
 BAS (X4) =Brand Association
From the above one can drive the model as follows;
Customer buying behavior = bo+ b1 (BA) + b2 (BL) + b3 (PQ) + b4 (BAS)

43
Table 18 Regression Coefficients Result

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 0.394 0.328 1.200 0.239

Brand awareness 0.107 0.109 0.165 0.981 0.334

1 Brand loyalty 0.169 0.057 0.247 2.982 0.005

Perceived quality 0.219 0.054 0.333 4.022 0.000

Brand association 0.252 0.078 0.541 3.229 0.003

a. Dependent Variable: Consumer buying behavior

Source: Researcher’s survey finding (2018)

In order to establish the impact that each dimension (branding) has on the dependent variable
(Consumer buying behavior); the study checked the Standardized Coefficients. Table 17;
shows that, all the independent variables have statistically significant effect on the dependent
variable except the brand awareness dimension, since its p-value is below the alpha level
which is 0.05. Considering the standardized beta coefficients, the strongest predictor of the
dependent variable is brand association and perceived quality (0.541 and 0.333) respectively,
moreover, brand loyalty have a beta value of 0.247.

From this result, one can deduce that, brand association element is the major contributor of
overall customer buying behavior; this implies that a one unit increase in brand association
would lead to 0.541 unit (or 54.1%) increased in customer buying behavior. Similarly a one
unit increase in perceived quality would lead to 0.333 units (or 33.3%) increase in customer
buying behavior. Lastly, a one unit increase in brand loyalty would lead to 0.247 (or 24.7%)
in customer buying behavior.

From the table 16, one can drive the model as follows:
Customer buying behavior = bo+ b1 (BA) + b2 (BL) + b3 (PQ) + b4 (BAS)
Customer buying behavior = 0.94+0.107(BA)+0.169(BL)+0.219(PQ)+0.252(BAS)

44
4.5 Hypothesis Testing and Discussions

Proposed hypothesis are tested based on the results of the correlation analysis. By looking at
the Sig.-value in Table 13, it is possible to interpret whether the particular independent
variable has a significant relationship with the dependent variables. Hypothesis is supported
when the Sig. value is smaller than 0.05; and a null hypothesis is rejected when the Sig. value
is equal or larger than 0.05.

Hypothesis #1

 There is a significant effect of brand awareness on consumers buying behavior in beer

product.

Regarding the association between brand awareness and consumers buying behaviour,
Pearson correlation analysis reported that it has 0.720 at a significance level of .000 and a
positive strong relationship with consumers buying behaviour. Hence, it is possible to
conclude that brand awareness have strong effect on customers buying behaviour in beer
product.

Therefore, the hypothesis is accepted. Going back to the definition of brand awareness;
“…adequate Knowledge and brand image of a consumer … (Aaker, 1991, (Keller, 1993).)”:
had a positive relationship with customer satisfaction.

Hypothesis #2

 There is a positive effect of brand association on consumers buying behavior in beer

product.

Concerning about the association between brand association and consumers buying
behaviour, Pearson correlation analysis reported that it has 0.757 at a significance level of
.000 and a positive strong effect on customers buying behaviour. Hence, it is possible to
conclude that brand association has a relationship with customers buying behaviour in beer
product.

When referred to the definition of brand association that is, “Brand association is anything
relate to the preference of a brand (Aaker, 1991, p.109; Keller, 1993). Therefore, the
hypothesis is supported that brand association was found a valid variable for customer buying
behavior has important factor.

45
Hypothesis #3

 There is a positive effect of perceived quality on consumers buying behaviour in beer

product.

About the association between perceived quality and consumers buying behaviour, Pearson
correlation analysis reported that it has 0.480 at a significance level of 0.02 and a
positive strong relationship with customers buying behaviour. Hence, it is possible to
conclude that perceived quality has a strong effect on customers buying behaviour in beer
product.

According to Lin & Chang, 2003; Perceived quality makes the consumers satisfied which
make them repurchase the product which leads to loyalty. Therefore, the hypothesis is
supported that perceived quality has strong effect to customer buying behavior.

Hypothesis #4

 There is a positive effect of brand loyalty on consumers buying behaviour in beer

product.

On the issue of the brand loyalty and consumers buying behaviour, Pearson correlation
analysis reported that it has 0.442 at a significance level of 0.06 and a positive strong
effect on consumers buying behaviour. Hence, it is possible to conclude that brand loyalty
have a relationship with customers buying behaviour in beer product. Therefore, the
hypothesis is accepted.

In summary, according to their relationship and significance level, all the hypotheses that
assumed earlier to accomplish the study were supported.

Independent Correlation
Hypothesis Dependent variable Result
Variable coefficients’
H1 Brand awareness 0.720 Consumer buying behavior Accept
H2 Brand Association 0.757 Consumer buying behavior Accept
H3 Perceived quality 0.480 Consumer buying behavior Accept
H4 Brand loyalty 0.442 Consumer buying behavior Accept

46
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
In this chapter, an attempt is made to discuss the findings of the research based on empirical
analysis of collected data by referring objectives of the study in a comprehensive way. As a
result recommendations are given for the concerned company.

5.2 Summary of major findings

The impact of branding on consumer buying behavior can be assessed from the preferably
attribute the consumer desire. This study intends to find out the impact of branding on
consumer buying behavior in the case of Addis Municipality and it is based on consumers
only and not branding company. From the analysis carried out the major findings were as
follows:

 Branding dimensions are the key indicators of consumer buying behavior as mentioned
before. In this regard, all the respondents were rated as high (Av. Mean > 4). In
correlation analysis; brand association shows the highest positive correlation (r=0.757**,
p<0.01) positively correlated with customer buying behavior and brand awareness
demonstrates the second highest positive correlation (r=.0.720**, P<0.01) positively
correlates with customer buying behavior followed by perceived quality and brand loyalty
with (r=.0.480** and 0.442**, p<0.01) respectively.

 The overall fitness of the model, this fact has been confirmed by different types of
statistical results. The first way is the ANOVA test that produced a P-value of 0.000
which is below the alpha level, i.e. 0.05. That means the overall independent variable
have statistically significant relationship with that of the dependent variable, i.e. customer
buying behavior.

 The R (Coefficient of Correlation) which is simply a measure of the degree of association

or co-variation that exists between independent variables (branding) and dependent
variable (consumer buying behavior). It only measures degree of association or variation
between the two variables. In this case the value of R which is 0.893 shows, there is a
very strong relationship between the independent variables and dependent variable.

47
 By testing the R square (Coefficient of Determination), as the proportion of the total
variation or dispersion in the beer customer buying behavior (dependent variable) that
explained by the variation independent variables in the regression is 0.797; meaning,
79.7% of customer buying behavior is explained by the linear relationship with all the
independent variables (branding). Adjusted R square is 0.773 which indicates the amount
of variation in one variable that is accounted for by another variable. In another word,
through the survey with 240 target respondents, their perception of branding is account
for 77.3 percent of total variation in consumer buying behavior. This indicates that the
level of relationship between branding and consumer’s buying behavior is on beer brand
is high.

 Generally speaking, the regression model developed under the study can be considered as
a good predictor of customer satisfaction of the corporation. The individual effects of the
independent variables can be explained by their respective beta coefficients. By looking
its standardized coefficients (beta) brand association has the highest standardized
coefficient and it means it is the best predictor. And followed by brand awareness,
perceived quality and brand loyalty respectively in their descending order is the predictor
of branding.

5.3 Conclusion

This study was conducted to assess the impact of branding on consumers buying behavior in
the case of Addis Ababa beer consumers.

This study is evaluated on the basis of brand dimensions encompassing brand awareness,
brand loyalty, perceived quality and brand association. Based on these four branding
dimension questionnaire is conducted all aspects of the consumer buying behavior.

Concerning customers view on branding majority of the respondents had adequate knowledge
on branding dimension. That is they acknowledged that branding is about logo, product
quality, pricing, coverage image, and slogan. That means customers have an emotional
connection with the brand logo, image, slogans product quality, pricing, coverage etc.

Finally, the study had also discovered from the data analyzed that, branding has a significant
association with customer buying behavior. It also revealed that brand association, brand

48
awareness, perceived quality and brand loyalty has positive and significant association with
customer buying behavior. To identify the relationship between branding and customer
buying behavior in beer consumers Pearson correlation analysis was used. It was found that
the four dimensions of branding are important for customer’s purchase behavior.

5.4 Recommendations

Based on the results of the analysis concerning about branding and consume buying behavior
the following recommendations are forwarded.

 Branding play significant role in the success of every business endeavor. In this view beer
companies are encouraged to improve and sustain their brand. These could be customer
survey on their brand or brand performance assessment this is because of customers have
a good knowledge about beer brands or products, they trust the well-known brand.

 Moreover, branding is very vita to attract and retain customers especially in the beer
business market where competitions among firms are very intensive and unchanged.
Customer relationship management must be given a maximum attention and also their
brands must have much impact on their behavior to build a strong relationship between
their brand and consumer buying behavior.

 Continues improvement must be maintained at all times on brand awareness, brand

loyalty and brand association as well as Product quality that meet consumer buying
behavior. Moreover, in beer market brand association like attitude, attribute and benefit
are more powerful for consumer buying behavior

49
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 APPENDICES
APPENDIX 1: English Questioner

St. Mary’s University

School Of Graduate Studies
Marketing Management Program
(Questionnaire to be filled by beer customers)
Sir/madam,

This questionnaire is a part of a study for a Master’s Degree at St. Mary university school of
graduates in marketing management program. The purpose of this questionnaire is to gather data
about the impact of branding on consumer buying behavior in the case of Addis Ababa
municipality. The study is used purely for academic purpose and thus it does not affect you in
any case. You are genuine, frank, and timely response is vital for the success of the study.
Therefore, I kindly request you to respond to each question item carefully.

Instruction:
 No need of writing your name.
 Use √ up on given choices alternatives.
 Please return the completed questionnaire in time, thank you in advance for your
cooperation and timely response.
 The researcher assures that the responses you provide will be kept confidential;
 For further comments and information, you may contact me at: -

Yours sincerely

Andualem Asnake

i
Part I: General information
1. your Gender (Sex):
 Male  Female
2. Indicate your age groups
 18-25years  26-30years  31-40 years  41-65 years

3. your highest educational attainment:

 Ph. Degree  First Degree  TVT  Elementary school Other; Specify:

 Master’s Degree  Diploma  High school  Informal education …………

4. Your occupation:
 Private Service  Government Service  business owner (Entrepreneur)  University teacher
 Doctor  Consultant  Self-employed (merchants) Other; Specify:_______

Part II: Branding and Consumer Buying Behavior Questionnaire

1. What do you understand usually about branding?

 Name  Slogan or motto
 Labeling  All of the above
 Company image  None of the above
2. Which brand of beer product comes into your mind first from the following beer product is
mentioned below?
 Bedle beer  Meta beer  Zemen beer  Harar beer  Raya beer

 Castel beer  Saint George beer  Balageru beer  Heineken beer  Zebidar beer

 Habesha beer  Waliya beer  Dashin beer  Jano beer

3. From question number 2; how do you come to know about this brand?
 Advertisement  Group reference influence or Recommendation
 Past experience with the brand  Availability and accessibility
 Self-judgment  Style, Color, Durability
 Its name or logo  Other; Specify: …………
 Country image

ii
4. Which brand of beer do you buy and consume regularly?
 Bedle beer  Meta beer  Zemen beer  Harar beer  Raya beer

 Castel beer  Saint George beer  Balageru beer  Heineken beer  Zebidar beer

 Habesha beer  Waliya beer  Dashin beer  Jano beer

5. With regards to your preferred beer consumption; how often do you purchase and
consume your preferred beer?
 Once in a week  More than 3 days in a week  Three or four days in a month

 Twice a week  Once in a month  More than 3 days in a month

 Three or four days in a week  Twice in a month  Other; Specify: …………

6. What encourages you to take the decision for purchasing your most preferred beer brand
recently?

 Product Quality and testing  Brand image

 Price  Familiarity, likeability and Reputation

 Cost (time cost, energy cost)  Distribution availability

 Promised benefits of the company  Other; Specify: …………

 Responsiveness and societal service company

7. Is there any reward that you participate or get by using your preferred beer brand?

 No
 Yes
8. For question number 6 if your response is “yes”. What are the rewards that you
participate or get from the brand?
 Bonus  Draw or lotto
 Reward  Other Specify: …………
 Discount

iii
Part III: Brand Awareness, Brand Loyalty, Perceived Quality, Brand Association

The following questions refer to the brand of beer product which is predominantly purchased and
consumed by you. Please indicate (make circle) your level of agreement or disagreement on the
agreement legend to the following statements: -
Agreement Legend:- Strongly agree=5, Agree=4, Neutral=3, Somewhat disagree =2, Strongly
Disagree=1
1. Questioner related with brand awareness
Strongly Somewhat Strongly
Neutral Agree
Brand Awareness disagree Disagree Agree
(3) (4)
(1) (2) (5)
I can easily and quickly Recall this brand
1
during any buying Power
2 I have adequate Knowledge about this Brand
My Position of brand image is high towards
3
this brand
I can recognize this Brands easily than
4
competitive brands
At the place of purchase, I could visually
5 detect my preferred brand without much
effort.
2. Questioner related with brand loyalty
Strongly Somewhat Strongly
Neutral Agree
Brand Loyalty disagree Disagree Agree
(3) (4)
(1) (2) (5)
I would continue to use this brand for the next
1
time
2 I like to talk to other people about this brand
3 I consider myself loyal to this brand
4 This brand is more than a product to me
I usually trust this brand because of high
5
Social Image
3. Questioner related with brand quality
Strongly Somewhat Strongly
Neutral Agree
Perceived Quality disagree Disagree Agree
(3) (4)
(1) (2) (5)
1 I usually feel the test and color this beer brand
I usually purchase this brand with Product
2
Performance
I usually purchase this brand with Value
3
added features
4 Improvement is key in my choice for beer

iv
 brand
4. Questioner related with brand association
Strongly Somewhat Strongly
Neutral Agree
Brand Association disagree Disagree Agree
(3) (4)
(1) (2) (5)
I can have many connections or association
1 between experience in my life and this
product.
I usually trust this brand because of the
2 advertisement with celebrity and famous
actress
3 I like this brand due to its place of origin
I tend to notice this brand with Celebrity and
4 sports endorsement, Well-known and admired
people to promote a product
I use this brand to define and express the “I”
5
and “me” Within myself.

v
APPENDIX II: Amharic Questioner
ቅድስተ ማሪያም ዩኒቨርሲቲ
የድህረ ምረቃ ፕሮግራም
የገበያ አስተዳድር ትምህርት ክፍሌ

ሇደንበኞች የተዘጋጀ መጠይቅ

ዉድ ደንበኞች፤
ይህ መጠይቅ የተዘጋጀዉ በቅድስት ማርያም ዩኒቨርሲቲ ድህረ ምረቃ ት/ቤት በገበያ አስተዳድር
ትምህርት ክፍሌ ሇማስተርስ ዲግሪ ማሟያ የሚደረግ ጥናትና ምርምር ነው፡፡ የዚህ መጠይቅ ዋና
አሊማ፡- “የምርት ስያሜ (ብራንድ) በደንበኞች የመግዛት ሂደትና ባህሪ ሊይ ያሇው ተጽዕኖ”፤ በሚሌ ርዕስ መረጃ
ሇመሰብሰብ ነዉ፡፡ የጥናቱ ዳራ “በአዲስ አበባ የቢራ ምርት ተጠቃሚዎች ሊይ” ያተኮር ሲሆን ጥናቱ
የሚደረገዉ ሙለ በሙለ ሇትምህርት አሊማ ስሇሆነ በየትኛዉም መሌኩ እርስዎን የማይነካና የማይጎዳ
ነዉ፡፡ እርስዎም የሚሰጡት መረጃ የሊቀ፣ እዉነተኛ፣ ተአማኝነት ያሇዉና ትክክሇኛ ምሊሽ መስጠት
ሇጥናቱ መሳካት እጅግ ጠቃሚ ነዉ፡፡ በመሆኑም እያንዳንዱን ጥያቄ በጥንቃቄና በትክክሌ እንዲመሌሱ
በአክብሮት እጠይቆታሇሁ፡፡

መመሪያ፡-
 ስምዎን መጥቀስ አያስፈሌም፤
 የሚሰጡት ምሊሽ ኮድ ቁጥር ያሇውና ሙለ በሙለ ሚሰጥራዊነቱም የተጠበቀ መሆኑ በቅድሚያ
አረጋግጣሇሁ፤
 ምርጫ ሇቀረበሊቸዉ ጥያቄዎች መሌሱን ይህን “√” ምሌክት በማድረግ ይመሌሱ፤
 እባክዎን የተሟሊ መጠይቅ በሰዓቱ በመመሇስ ስሇሚያደርጉሌኝ መሌካም ትብብር በቅድሚያ
አመሰግናሇሁ፤

ስሇ ትብብርዎ በቅድሚያ አመሰግናሇሁ!!

አንዱዓሇም አስናቀ

ክፍሌ 1፡ሇጥናቱ የሚሰፍሌጉ ስሇእርስዎ አጠቃሊይ መጠይቅ፡፡ (እባከዎን በሳጥን ውስጥ የ√ ምሌክት
ያስቀምጡ)፡፡

1. ጾታ፡
 ወንድ  ሴት

2. የእድሜ ክሌሌ፡
 18-25  26-30 ዓመት  31-40 ዓመት  41-65 ዓመት
ዓመት
3. አሁን ያለበት ከፍተኛ የትምህርት ደረጃ፡

ላሊ ካሇ
 የዶክትሬት ድግሪ  የመጀመሪያ ድግሪ  የቴከኒክና ሙያ ስሌጠና  የ1ኛ ደረጃ ትምህርት
ይገሇፅ
 የማስተርስ ድግሪ  ዲፕልማ  የ2ተኛ ደረጃ ትምህርት  መደበኛ ያሌሆነ ትምህርት -------------

4. አሁን ያለበት የስራ ዘረፍ

 በግሌ ድርጅት ስራ ውስጥ  በመንግስት ስራ ውስጥ  የቢዝነስ ባሇቤት (ስራ ፈጣሪ)

 የዩኒቨርሰቲ መምህር

 ዶክተር  የህግ አማካሪ  የራስ ስራ (ነጋዴ)

 ላሊ ካሇ ይገሇፅ-----

vi
ክፍሌ 2፡ ስሇምርት ስያሜ (ብራንድ) እና ስሇደንበኞች የመግዛት ሂደትና ባህሪ ሊይ ያተኮረ መጠይቅ፡፡ (እባከዎን
በሳጥን ውስጥ የ√ ምሌክት ያስቀምጡ)፡፡

1. ስሇአንድ ምርት (ዕቃ) ስሇምርቱ ስያሜ (ብራንድ) በዙውን ግዜ የቱን ትረዳሇህ

 በስሙን  የኩባንያው ገጽታ  ሁለንም እረዳሇሁ

 ስያሜውን  ሞፎክሩን  ምንም አሌረዳም

2. ከሚከተለት የቢራ ምርቶች ውስጥ በመጀመሪያ ወይም ቀድሞ ወደ አእምሮህ የሚመጣው የቢራ ምርት የቱ
ነው

 ሐበሻ ቢራ  ሜታ ቢራ  ካስትሌ ቢራ  በደላ ስፔሻሌ ቢራ  ባሊገሩ ቢራ  ራያ ቢራ  ሃኒከን ቢራ

 ዋሉያ ቢራ  ሃረር ቢራ  ዘመን ቢራ  ቅ/ ጊዎርጊስ ቢራ  ዳሽን ቢራ  ጃኖ ቢራ  ዘቢዳር ቢራ

3. ከመጠይቅ 2 ውስጥ፤ ምርቱን በምን መሌኩ ሌታውቀው ቻሌክ

 በማስታወቂያ  በራስ ዉሳኔ  በተደራሽነቱ በቅርብ ስሇተገኘ (ስሊሇ)

 ከበፊት ሌምድ  በጓደኛ ተጽዕኖ  ላሊ ካሇ ይገሇፅ ---------------

4. የትኛውን የቢራ ምርት ብዙውን ጊዜ ገዝተህ ተጠቀማሇህ

 ሐበሻ ቢራ  ሜታ ቢራ  ካስትሌ ቢራ  በደላ ስፔሻሌ ቢራ  ባሊገሩ ቢራ  ራያ ቢራ  ሃኒከን ቢራ

 ዋሉያ ቢራ  ሃረር ቢራ  ዘመን ቢራ  ቅ/ ጊዎርጊስ ቢራ  ዳሽን ቢራ  ጃኖ ቢራ  ዘቢዳር ቢራ

5. ብዙውን ጊዜ የምትመርጠውንና የምትጠቀመውን የቢራ ምርት በተመሇከተ ፤ የምትፈሌገውን የቢራ ምርት

ሇምን ያሀሌ ጊዜ ገዝተህ ትጠቀማሇህ

 በሳምንት አንድ ጊዜ  በሳምንት ከአምስት ጊዜ በሊይ  በወር ከአራተ እስከ አምስት ጊዜ

 በሳምንት ከሁሇት እስከ ሶስት ጊዜ  በወር አንድ ጊዜ  ላሊ ካሇ ይገሇፅ ---------------
 በሳምንት ከአራተ እስከ አምስት ጊዜ  በወር ከሁሇት እስከ ሶስት ጊዜ

6. በቅርብ ግዜ በጣም የምትመርጠውን ቢራ ሇመግዛት እንድትወስን ያነሳሳህ ምክንት የቱ ነው

 የምርቱ ጥራትና ጣዕም  አጉዋጊ ሽሌማት መኖር  ሁላም ስሇምጠቀመውና ስሇምወደው

 ተመጣጣኝ የምርት የመግዣ ዋጋ  በምርቱ ገጽታ ምክንያት  ላሊ ካሇ ይገሇፅ ---------------
 አነስተኛ ወጭ (የገዜ፣ የጉሌበት)  በቅርብ ቦታ ሊይ ስሇተገኘ

7. የምትፈሌገውና የምትመርጠው የቢራ ምርት በመጠቀምህ ምክንያት አምራቹ ወይም ካፓኒው አንተ(ች)
የምትሳተፍበን ጥቅም ሽሌማት አሇው

 አሇው  የሇውም

8. በመጠይቅ 6 ሊይ ምሊሽህ አሇው ከሆነ፤ አምራቹ የሚዘጋጀው ሽሌማት ወይም ጥቅም ምንድን ነው
 ቦነስ(ጉርሻ)  ሽሌማት( የዕቃ፣ የቤት፣ የመኪና፣ላልች)  ላሊ ካሇ ይገሇፅ ---------------
 ዕጣ(ልተሪ)  የምርት የመግዣ ዋጋ ቅናሽ

vii
 ክፍሌ 3፡ ስሇምርቱ ስያሜ ወይም ብራንድ ያሇን (ግንዛቤ ፣ ተአማኒነት የጥራት ሁኔታ እና አመካከት”
በተመሇከተ የሚያተኩር መጠይቅ፡፡

የሚከተለት ጥያቄዎች የሚያተኩሩት ብዙውን ጊዜ ወይም በአብዘሃኛው የሚገዙትና የሚጠቀሙት የቢራ ምረት
ሊይ ሲሆን፤ ከዚሀ በታች በተጠቀሱት ማብራሪያዎች ሊይ ተመስርተው ከተሰጡት ምርጫዎች ውስጥ የእርስዎን
አመሇካከት እና ፍሊጎት የበሇጠ ያሳያሌ ብሇው በሚያምኑበት የመሌስ ቁጥር ሊይ ይህንን ምሌክት ‹‹√›› ያድርጉ፡፡

እርስዎ ያሇዎትን አመሇካከት በሚመሇከተው የነጥብ ደረጃ ከዚህ በታች ተገሌጾአሌ፡፡

 በጣም አሌስማም =1፤ አሌስማማም = 2፤ ገሇሌተኛ (አስተያየት የሇኝም) =3፤ እስማማሇሁ = 4፤
በደንብ እስማማሇሁ = 5

1) ስሇምርቱ ስያሜ ወይም ስሇብራንዱ ያሇን ግንዛቤ (Brand Awareness) በተመሇከተ

ገሇሌተኛ በደንብ
በጣም አሌስማማም እስማማሇሁ
የምርት ስያሜ (የብራንድ) የግንዛቤ መግሇጫዎች (አስተያየት እስማማሇሁ
አሌስማም (1) (2) (4)
የሇኝም) (3) (5)
ይህንን ምርትበግዥ ወቅት በቀሊለና በፍጥነት ማሰታዎስ
1
እችሊሌሁ
2 ስሇምርቱ ወይም ስሇብራንዱ በቂ እውቀት አሇኝ
3 ስሇምርቱ ወይም ስሇብራንዱ ከፍ ያሇ እይታ(ምሌከታ ) አሇኝ
4 ይህንን ምርት ክላልች ተፎካካሪ ምርት(በራንድ)በቀሊለ እሇያሇሁ
በምገዛበት ወቅት ይህንን ምርት በቀሊለ በአይነህሉናየ ምርቱን
5
እስሇዋሇሁ

2) ስሇምርቱ ስያሜ ወይም ስሇብራንዱ ያሇን ተአማኒነት (Brand loyalty) በተመሇከተ

ገሇሌተኛ
በደንብ
በጣም አሌስማማም (አስተያየት እስማማሇሁ
እስማማሇሁ
የምርት ስያሜ (የብራንድ) የተአማኒነት መግሇጫዎች አሌስማም (1) (2) የሇኝም) (4)
(5)
(3)
1 በሚቀጥለት ጊዚያት ይህንን ምርት በተከታታይ እጠቀማሇሁ
2 ስሇዚህ ምርት ሇላልች ሰዎች ሇመናገር እዎዳሇሁ
3 ሇዚህ ምርት እራሴ ታማን ነኝ ብየ አስባሇሁ
4 ይህ ምርት ሇኔ ከምርት (ከዕቃ) በሊይ ነው
ይህ ምርት ከፍተኛ ማህበራዊ ገጽታ ሰሇሚያሳይና ማህበራዊ
5
ግዴታውን ስሇሚዎጣ ብዙውን ግዜ አምነዋሇሁ

3) ስሇምርቱ ስያሜ ወይም ስሇብራንዱ ያሇን የጥራት ሁኔታ (Brand quality) በተመሇከተ
ገሇሌተኛ
በደንብ
በጣም አሌስማማም (አስተያየት እስማማሇሁ
እስማማሇሁ
የምርት ስያሜ (የብራንድ) የጥራት ሁኔታ መግሇጫዎች አሌስማም (1) (2) የሇኝም) (4)
(5)
(3)
ብዙውን ጊዜ ስሇዚህ የቢራ ምርት ጥሩ ቃና እና ቀሇም እንዳሇው
1
ይሰማኛሌ
2 ይህ ምርት የደረጃ ብቃት ሰሊሇው ብዙውን እገዘዋሇሁ
3 ይህ ምርት ተጨማሪ እሴትና ገጽታ ስሊሇው ብዙውን እገዘዋሇሁ
4 ሇኔ ቢራ ምርት ምርጫ የምርቱ መሻሻሌ አብይ ጉዳይ ነው

4) ስሇምርቱ ስያሜ ወይም ስሇብራንዱ ያሇን አመሇካከት (Brand association) በተመሇከተ

ገሇሌተኛ
በደንብ
በጣም አሌስማማም (አስተያየት እስማማሇሁ
እስማማሇሁ
ስሇምርት ስያሜው (ስሇብራንድ) ያሇን የአመካከት መግሇጫዎች አሌስማም (1) (2) የሇኝም) (4)
(5)
(3)
ብዙን ጊዜ ይህ ምርት ከሂዎቴ ጋር የተያያዘ (የተቆራኘ) ትዝታ
1
አሇው
2 ይህንን ምርት በማስታወቂያና በታዋቂ ሰዎች ስሇምሰማው ብዙውን

viii
 ጊዜ አምነዋሇሁ
3 የተመረተበትን ቦታ ስሇማወቀው ይህንን ምርት እወደዋሇሁ
ይህ ምርት በስፖርት እንቅስቃሴዎች ወይም በታዋቂ ሰወች
4
ቢተዋወቅ ሇምርቱ ትኩረት እሰጠዋሇሁ
እኔንም ሆነ በእኔ ውስጥ ያሇውን ነገር ስሇሚገሌጽሌኝ ይህንን
5
ምርት ብዙውን ግዜ እጠቀማሇሁ

ix
APPENDIX III:

DECLARATION

First I announce that this thesis which is entitled as the impact of branding on consumer buying
behavior in the case of Addis Ababa beer consumer has been prepared by me under the guidance
of Getie Andualem (PhD).

This thesis has been submitted to St. Mary’s University, school of graduate studies in partial
fulfillment of the requirements for the award of the degree of master of marketing management. I
wish to state that this work has never been presented in any university or institution of learning
apart from references made to works of other people for which i have dully acknowledged.
Therefore it is an original work done by me under a close supervision of my advisor.

Declared by _______________________ Signature ________Date_______________

Conformed by _____________________ Signature________Date_______________

St. Mary’s University School of Graduate Studies, Addis Ababa- Ethiopia

May, 2018

x
APPENDIX IV:

ENDORSEMENT

This is to certify that Mr. Andualem Asnake has carried out his research work under my
guidance/supervision on the topic titled as “the impact of branding on consumer buying
behavior; in the case of Addis Ababa beer consumer”. The work is original in nature and is
suitable for submission for the award of Master’s Degree in Marketing Management.

Advisors: Getie Andualem (PhD).

Signature___________________

Date_______________________

St. Mary’s University School of Graduate Studies, Addis Ababa

May, 2018

xi