Effects of Brand Awareness and Website Quality on UK Consumers Perceived Risk and Purchase Intention - Essay Example

Effects of Brand Awareness and Website Quality on UK Consumers Perceived Risk and Purchase Intention Contents Introduction 4 Literature Review 5 Brand consciousness 5 Purchase intention 6 Factors influencing purchase intention 7 Perceived Risk 7 Factors influencing perceived risk 8 Website quality 9 Purpose of designing the website 10 Online purchase 10 Methods 11 Application of research methods 12 Primary and Secondary Data Collection 12 Data Collection Method 13 Data Analysis Plan 13 Time scale for the Project 18 References 19 Bibliography 22 Introduction The consumers of UK mainly prefer the familiar brands for increasing their consciousness. The consumers are aware and familiar with the availability and popularity of the brands and they perceive various factors before buying or purchasing a particular product. Whenever a customer decides to purchase a product than the customer generally favours the brand name and popularity of the product. The increase in the awareness of the brand generally attracts or influences the customers towards the particular product. Therefore the brand awareness generally plays a major and vital role since it will result in the increase of the share in the UK market. The effect of brand awareness is found more in the economy of UK since the online retail sales will increase by 14.7% to 38.3 billion pound in the year 2014. The purchase intention of the consumer has increased with the development of websites and which is likely to increase by 82% from 2014 to 2019 (Perreault and MaCarthy, 2003). The use of online shopping among the customers of UK can be observed by the statistics that is conducted which reveals that 95% of the respondents have preferred online shoping.The change in the technology is related to the purchase intention through online and that is influenced by the online trust. The main aim of conducting the study is identifying the importance of the brand awareness in determining the availability and the accessibility of the product and services that the company is offering to its consumers which indicates that the company which has successful brand awareness of its products in the market generally has the high demand and craze for its products among the customers in the market. The objectives of the research are Determining the effect of brand awareness on the market of U.K The importance of developing the websites, The purchasing intention of the consumers in UK The perceived risk encountered by the customer in online transaction. The research question that is identified by us for discussing on the topic is does brand loyalty, brand awareness and the improvement in the website design influences the purchase intention or purchase decision of the customers and also the perceived risk on building and its affect and relationship with the online purchase intention. Literature Review Brand consciousness Authors like Etzel, Walker, and Stanton, (2004) stated that the increase in the brand awareness will result in the increase in the frequency of buying and if the customer is satisfied from the particular product then the consumer will pass on the information about the particular product to others which will increase the popularity of the brand and as a result will enhance the brand loyalty of the consumers which is considered or regarded as an important factor or element in increasing the sale of the product and receive premium price for retaining its customers (Etzel, Walker, and Stanton, 2004). Following the words of Perreault and MaCarthy, (2003), when the customer is very confident about the particular brand he will immediately purchase the product without conducting further investigation since he is confident about the product on the basis of his previous experience on using or consuming that product (Perreault, and MaCarthy, 2003). Purchase intention The author, Ambler (2005) in his paper has highlighted on the definition and importance of purchase intention on the consideration of availing a particular brand is influenced by the decision making process in buying or purchasing a particular product or availing a particular service (Ambler, 2005). Gardner (2006) concluded that the creation of brand awareness among the memory of the people generally increases the popularity of the brand (Gardner, 2006). The value of the particular brand can be analyzed by the awareness of the brand among its customers by evaluating the popularity of the brand at various stages and levels which includes recognition, recalling dominance of the brand and the knowledge of the particular brand. He has also emphasized on the purchase intention of the consumer which is mainly dependent and influenced by the brand loyalty and the brand awareness. Batey, (2012) viewed that the intention of the customer in purchasing a particular product or receiving a particular service is mainly dependent on the quality of the product and the popularity of the brand and the purchase intention of the consumer is mainly influenced by the price of identification of the problem, searching or investigating the information about the particular product before purchasing the particular product, then evaluating the various alternatives that is available and then making a purchasing decision of the particular product. On the contrary the researcher, Hastings (2009) in his study has emphasized that the customers generally become loyal towards the particular product and brand is influenced by the uniqueness in the particular product and its taste and preference in buying or purchasing the particular product (Hastings, 2009). Researchers Bennett, Wood and Previte, (2013) opined that the importance of the brand awareness can be identified from the fact that in the absence of promotion of brand there will be no communication and existence of transaction will take place (Bennett, Wood and Previte, 2013). Factors influencing purchase intention The author, Joseph (2011) in his paper has focused on the fact that there are various factors which influences the purchase intention by explaining that the awareness of the brand also influences the impulse buying characteristic among the customers such as if the customer visit a particular store and gets attracted towards a particular product then the customer will immediately purchase the particular product and the intention of the customer and the impulse buying behaviour of the customer generally affects or influences the intention of the customer or the consumer (Joseph, 2011). Fill, (2006) stated the intention of the consumer in buying the particular product is very much influenced by various factors or situations such as the price that is charged for the particular product (Fill, 2006). Kotler and Keller (2012) remarked that the awareness or the popularity of the brand of the particular product generally increases the confidence, loyalty and the purchase intention of the consumers (Kotler and Keller, 2012). Perceived Risk The writer Hof (2001) in his article has focused on the awareness of the brand that plays an important and vital role in determining the purchase of a product or availing of services and that have control over the perceived risk and its evaluation of the customers and the customers level or extent of assurance towards buying or purchasing decision due to the rise or the increase in the awareness of the brand and its uniqueness (Hof, 2001). Lasserre, (2012) stated the perceived risk of the customer can also be explained as the risk that is assessed by the belief of the customer that can result in the negative outcome from the online transaction and the consumer generally face the perceived risk due to the uncertainty that exist and the undesirable or unsuitable decision that exist from the online transaction (Lasserre, 2012). On the contrary the researcher, Churchill (2005) in his article has focused on the perceived risk that the customer may encounter while entering into online transaction as the risk may arise due to the unsuitable or the wrong decision taken by the customer in the decision making process that can affect severely (Churchill, 2009). The author, Aaker (2000) in his study has focused that the consumers of UK are very much brand conscious and the consumers purchase decision is mainly influenced by the particular brand of the product which is characterized by the quality, features and price of the product (Aaker, 2000). Factors influencing perceived risk The writer, Kotler (2003) in his article has emphasized by the fact that the consumers of UK generally prefer online purchase which have perceived risk and therefore the consumers are required to have trust on the online purchase since there is no physical medium of transaction and the transaction is done through online and therefore the payment of the particular product is also done through the use of credit card which requires trust to be developed (Kotler, 2003). The author, Tracy, (2012) has also focussed on the problem that may arise in the completion of the transaction and the problem that may also arise in case of the delivery of the product as the product that is ordered may not be the similar product that has been ordered by the customer and therefore in order to reduce the problem or the uncertainties in the transaction through online shopping the website is required to be developed and the quality of the website is required to be improved (Tracy, 2012). Website quality The authors Keller, Barkhi and Wallace in their study has emphasized on the importance of the improvement in the quality of the website to facilitate the customer in purchasing online since the online purchase intention of the customer reflects the intention of the customer in entering into online transaction and the author also explains in his study that the online purchase also develops or establishes a relationship and develops a relationship with the web designer (Keller, 1993). The authors, Barkhi and Wallace (2007) has supported the view of both the writers in their study has emphasized on the benefits of designing of the websites which mainly explains that the website are required to be designed in such a way that it identifies the main and the key factors in the website which reflects the purchase decision of the customer or the consumer which will influence the customer in visiting and revisiting the website at a frequent interval of time (Barkhi, and Wallace, 2007). According to Picton and Broderick, (2009), the website should be designed in such a way that it includes graphics, pictures, and motion and sound that will reflect and improve the brand image of the product and will facilitate the consumer in gathering information about the product and the related features of the product (Picton and Broderick, (2009). Wintzer, (2007) stated that the improvement in designing the website of the product or the particular brand of the company provides benefit or advantage to the customers in reducing or decreasing the browsing effort of the customer or the consumer and the completion of the task quickly easily and quickly (Wintzer, 2007). On the contrary the writers Bingi and Khamalah (2000) in their paper has reflected on the importance of the improvement in the quality of the website in order to facilitate the customer that will affect or influence directly on the intention of the customer in buying the particular product (Bingi and Khamalah, 2000). The researchers Chen, Gillenson and Sherrell (2002) in their paper has highlighted and commented that designing or the development of the website is directly and positively related with the purchase intention of the customer (Chen, Gillenson and Sherrell, 2002). Hof (2001) believed that it also influences the trust of the customer towards the website of the company and the online purchase intention as the development in the website will provide the customer accurate and proper information about the product and the service that is offered by the customer (Hof, 2001). Purpose of designing the website The researchers Laudon and Laudon (2004) in their paper has emphasized on the main purpose or the intention in designing the website is attracting the consumer or the customer towards the purchase of the particular product or availing of the service (Laudon and Laudon, 2004). Perreault, and MaCarthy, (2003) revealed that the consumers in UK generally prefer online transaction therefore the designing and improvement of the website will provide an added advantage to the customer or the consumer in gaining all the information and verify the quality of the product through the various comments or blogs that is posted by those consumers who have already purchased or used the product (Perreault, and MaCarthy, 2003). Online purchase The writers Sidek and Yahya (2008) in their article has explained the perceived risk that is associated with the online purchase of the transaction the perceived risk includes the negative affect or consequence in using the particular product or availing of the services (Sidek and Yahyah, 2008). On the contrast the writers Su, Song and Chen (2008) in their study has explained that in order to reduce or decrease the perceived risk that is encountered by the customer or consumer in availing the online services or transaction is by understanding and evaluating various parameters of the risk from the perspective of the consumers towards availing the service and which will affect the purchase intention of the consumers or the customers therefore the writer has focused and emphasized that the perception of risk that is associated with website is negatively related with the online purchase intention of the consumer (Su, Song and Chen, 2008). Therefore Johnson, (1997) has advised that the website is required to be designed in such a way that it reduces the risk that reflects the purchase intention of the customer (Johnson, 1997). Methods Research methods form the basis on which entire research study is designed. There are different methods utilized in a research study and it totally depends on the nature of the study. These methods can be regarded as a framework for any study (Kotler, 2011). It can be stated that data obtained and analyzed is totally dependent on selection of appropriate tools and techniques. There are two research methods widely used in any form of study – qualitative and quantitative research method. In this particular study, research aim is to analyze the concept of brand awareness and quality of websites. It has been observed that purchase intention is greatly affected by these concepts. E-commerce has gained significance in overall shopping behaviour of customers. This platform enables customers to shop conveniently at any time from any place. The trend of online shopping has increased in recent years but it comprises of certain negative aspects too. There are some hidden threats associated with online shopping and brand awareness. It greatly affects purchase intention of customers. This aspect needs to be thoroughly analyzed in this particular research study. The entire study is based on consumer market demand and its emerging trends. Hence the research objectives of this study can be effectively accomplished only through quantitative form of research study. Application of research methods Quantitative research method is inclined towards analyzing data set using any statistical tools (Luken and Stares, 2005). These tools usually denote effectiveness of any data obtained during research study. Quantitative study encompasses collecting data from market or any other sources which can be analyzed using statistical methods (Creswell and Miller, 2000). This kind of study is basically required during performing critical analysis or analyzing current market trends. Opinions of experts are required in case of qualitative research study. In this study, main focus is on gathering information from experts or authors (Davies and Dodd, 2002). Researcher plays a critical role in this study since strong interpretation skills is essential to deliver desirable outcomes. These outcomes are not only based on data obtained but also on researcher’s interpretation (Coviello, 2005). Qualitative research study do not encompass any statistical tools and techniques because opinions of experts is all what is required. Primary and Secondary Data Collection On a broader context there are two forms of data collection methods – primary and secondary data collection measures (Evans and Benefield, 2006). Primary data collection method is associated with gathering information from the market. There are some specific tools utilized to collect this form of primary data. They are questionnaire survey, focus group study, structured or semi-structured interviews, etc (Freeman, DeMarrais, Preissle, Roulston and St. Pierre, 2007). In all these techniques, researcher comes in direct contact with respondents to collect important information. Statistical measures are then applied on collected data in order to determine its effectiveness. On the other hand, secondary data is obtained from various sources like journals, books, articles, etc (Johnson and Christensen, 2008). Internet is also considered to be a prominent secondary source in current research studies. There are lots of websites that provide necessary information related to a research study. However information acquired through all these secondary sources cannot be statistically analyzed but needs to be interpreted. Data Collection Method Quantitative study shall provide researcher with required information related to customer’s purchasing behaviour and its perceived risks (Tracy, 2012). There are different tools utilized for quantitative research study such as focus group study, interviews, questionnaire surveys, etc. Questionnaire survey is a useful method since it requires less time and more areas can be covered with respect to the research study. One of the biggest advantages of this technique is that it can be communicated across mails. For instance, research might be conducted in a different region but it demands for accessibility of respondents located in different area. In such cases, it becomes essential to communicate through mails. On the other hand, when respondent base is more it is advantageous to use survey. This enables researcher to cover entire respondent base in least time possible. The survey method is also useful because it helps to gather precise information. There is no scope for argumentative discussion in questionnaire survey (Thomas, 2003). Data Analysis Plan Data analysis plan is a framework whereby collected data is appropriately analyzed by a researcher. There are different elements encompassed within this plan. It relates to those procedures or techniques followed by a researcher in order to analyze collected data or information. Questionnaire survey will be most appropriate tool which can be used for this study. The respondents for this study will be UK based consumers. This study is inclined towards determining the impact of website quality and brand awareness on UK customers. It is essential for the survey to be conducted on UK customers as they are the key target audience. Random sampling method will be used in order to determine sample size (Salkind, 2010). Questionnaire format Some specific questions to be asked would be – do you like online shopping? Which brands you prefer? Does your purchase decision get affected due to level of brand awareness? What are your favourite online shopping portals? What features in these portals are attractive for you? What is the risk factor associated with E-Commerce for customers? These are some of the questions that will be asked in questionnaire survey so as to analyze the impact of brand awareness on consumer purchase decision. In overall context the main objective of this study is to analyze purchase intentions and perceived risks of customers. These two factors are closely knitted with perceived quality of website and brand awareness. It can be stated that customers usually are concerned about delivery of ordered products. Research problem and research design Online shopping comprises of various security issues like payment options, etc. All these factors can be effectively addressed only through questions being asked in the survey. The questions are strongly related to perception of UK customers regarding brand awareness and quality measures. There shall be different phases in this research design. The first step in this research study is to select sample size (Punch, 2006). Location for the survey to be conducted has already been chosen – United Kingdom. This would then be followed by collecting data from market place. Questionnaire shall be designed in the next phase which would be applied on selected sample. The next phase will encompass analyzing collected data. Statistical tools should be adopted in the study so as to analyze data. These tools mainly comprise of designing graphs in Ms-Excel. All data would be plotted on graphs for researcher to understand the trend in purchase behaviour of consumer. The last phase of this research study is to summarize data collected in the study (Tiddlier, 2009). Research design phases shall be centred towards evaluating market data related to research aim. In this study focus shall be on statistical tools as it would help to determine impact of website quality and brand awareness on UK customers. Trend analysis can only be exhibited through framing graphs in Ms-Excel based on quantitative data collected. The questions involved in survey are aligned with research objectives. Respondents will provide specific answers for these questions (Johnson, 1997). All of these questions shall be close-ended in order to obtain appropriate results. There would be options provided for each of these questions. These options will be based on probable answers respondents are likely to give. Analysis technique The total sample size for this study would be 200 respondents based in UK. All of these customers will possess online shopping experiences and are likely to give required opinions necessary in this research study. These opinions shall be analyzed with the support of Ms-Excel graphs. A brief overview would be given at first regarding current scenario and its impact on future years (Patton, 2002). Researcher can also include other methods for analysis along with Ms-Excel such as SPSS. SPSS is a statistical tool based on information technology. In this mechanism data being collected is entered to determine any specific trend which would be essential to address research question and objectives. Specific answers will be acquired from questionnaire survey. Types of survey and its application There are two forms of survey basically exhibited like close ended and open ended questionnaire survey (Maylor and Blackmon, 2005). In this study, close ended survey is required because impact on customer’s purchase intention can only be identified through getting prominent results from respondents. Researcher’s interpretation will be totally based on graphs formed on collected data. There would be maximum twenty questions incorporated within this study. These questions will revolve around brand awareness, E-Commerce, purchase behavior of customers, trend of online shopping, perceived risk factors, etc. Respondents will not be influenced by researcher and they shall be given flexibility to contribute their opinions or views. This information shall also be analyzed with the support of theoretical frameworks. Views of authors form the basis of any research study. It is often observed that interpretation skills of researcher are strongly associated with theoretical concepts. In this particular study branding concepts have been included. Importance of analysis plan Researcher will be collecting data directly from the market and it could be either relevant or irrelevant. Relevancy of collected data can only be determined through its alignment with theoretical models (Ghauri and Grönhaug, 2005). As quantitative research study more emphasis will be given on survey information but emphasis shall also be given on secondary source of information. Research methods are a basic framework included within all research studies. In any research study, methodology part forms one of the major pillars. It is not just a framework but basic steps followed in research process. Any research design needs to be appropriate since it lays foundation of the entire study (Bryman and Bell, 2003). The study can be further extended by encompassing focus groups study or structured interviews. However these additional methods will be closely knitted with interpretation skills of researcher. The statistical measure would be applied on every possible result of the survey. Conclusion Brand awareness, brand loyalty and the improvement in designing the website of the particular product directly affects the purchase intention of the customer and there is a positive and direct relationship between the perceived risk and the purchase intention of the consumer and the consumers of UK generally prefer online transaction therefore the websites are required to be designed in such a way that it facilitates the customer in deriving the knowledge and information of the particular product that is mainly related to the price, quality, feature of the product and the customer generally relies or depends on the online transaction since the customer generally avoids the physical purchasing decision and therefore in order to promote the brand and create more awareness of the brand in the minds of the customers or the consumers the website is required to be designed and developed in such a way that it will increase the trust of the consumer towards the particular product or services and will affect or influence the purchase intention of the customer or the consumer. The importance of the web quality plays a major role in attracting the attention of the customer in purchasing the product of the particular brand and since the online transaction is associated with some sort of perceived risk which is required to be improved or mitigated. Therefore the website design affects the purchase intention of the consumer and this will increase the brand loyalty of the consumer in improving and increasing the brand awareness of the product which will affect the purchase intention and buying decision or buying behaviour of the consumer. The improvement in the website design will increase the online trust of the customer or the consumer since when the consumer has high extent of trust towards online transaction the consumer will have an increase in the purchase intention of the customer or the consumer. The perception of the risk can be reduced with the development and building of online trust. The above discussion and the findings reflect that the perceived risk is directly related and associated with the online trust which affects or influences the purchase intention of the consumers. Since the consumers now a days are brand savvy and are addicted to online transaction therefore the consumer generally prefer shopping through a well maintained and dedicated website where they can purchase the product and avail the service with ease and comfort and visit and revisit the website. And through the well maintained website the company can promote its brand properly. Therefore designing of the website plays a major role in reducing the perceived risk and creating brand awareness among the customers. Time scale for the Project Week 1 2 3 4 5 6 7 8 9 Selecting the area in which the research is to be conducted                   Determining the research question                   collecting and gathering of information                   Explaining the research question                   determining the option for conducting the research                   Selecting the research tools and techniques                   Application of the tools and techniques                   Analyzing the information                   Learning and outcome of research.                                       References Aaker, D., 2000. Consumer evaluations of brand extensions. Journal of Marketing, pp: 27-42 Ambler, T., 2005. Building brand relationships. Financial Times Mastering Management Series, 13(4), pp. 13-56. Barkhi, R. and Wallace, L, 2007. The impact of personality type on purchasing decisions in virtual stores, Information Technology Management, 8(4). pp: 313-330. Batey, M., 2012. Brand meaning. 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