Branding: the Brand Development Process - Research Proposal Example

A Research Proposal on the Effect of Foreign Brand on Consumer Perception Table of Contents Table of Contents Chapter 2 0 Introduction 2 2.0 Research Problem and Research Questions 3 Chapter 3 5 Literature Review 5 Chapter 4 7 4.0 Theoretical Framework 7 Chapter 5 9 Research Methodology  9 Chapter 6 10 Significance of Research 10 Timeline  11 References 12 Chapter 1 1.0 Introduction Branding plays a great role in the advertisement of products and services (Davis, 2009). The first step towards establishing a successful brand is to understand how to balance and manage divisional, corporate, and product brands and subsequently leverage equities across an organisation as well as establish brand architecture (Hasanali et al, 2005). Architecture is defined as a strategic relationship existing between the varying brand levels that support the business objectives and strategies used to ensure that brand equities are reciprocally retained over time. With a clear level of branding architecture, an organization can decide on the level of branding that will receive the greatest support and emphasis. In addition, the organisation can also establish and define the relations between the various brands in the organisation. Branding has moved into the daily lives of individuals in the Western societies affecting more sectors than ever before as the competition for audiences among companies intensifies (Owen, 1993). Branding is no longer a concept limited to companies, as there has been a rise of the practice in universities and other institutions. However, as branding becomes a mainstream practice and concept, it risks being misinterpreted and misunderstood. This is because branding is not only creating a logo and graphics to represent a company, person, or country (Healey, 2008). Branding is encompassed by the perceptions of the reputation as well as the tangible look and feel of the company, service, product, individual, or country (Hestad, 2013). It relates to the behaviour of the company as well as the customer experience. Therefore, the concept of branding, applies to aspects that are within and outside the organisation. Chapter 2 2.0 Research Problem and Research Questions Consumers usually generalize their attitudes and perceptions across services and products based on two key factors (Hansen & Christensen, 2004). These factors are the impression they form on product attributes and the credibility of the country of origin of a brand or product (Hansen & Christensen, 2004). The product attributes include value of money and product quality while the credibility of the country of origin of a product is based on the individual’s familiarity of the country of origin of the product. These two factors are responsible for the creation of a favourable perception in a consumer that influences them to purchase and use a particular product or brand. The challenge, however, is the formation of stereotypes that are responsible for influencing individuals’ perceptions of foreign brands (Chattalas et al, 2008). The existence of national and cultural stereotypes that are broadly used by individuals in the judgment of products based on the country of origin undermines the role of equity in trade (Bevan & Wengrow, 2010). It has been witnessed that products manufactured in Europe and particular countries such as England are considered to be of a superior quality as compared to similar products manufactured in the Far East (Klein et al, 1998). This stereotypical understanding is usually fueled by a number of factors such as cultural ethnocentrism with the view of the western cultures being superior to the Eastern Cultures (Na et al, 2008) . The researcher identified an effect of the country of origin of a brand on the consumer perceptions and settled for a research study on the topic. The study will evaluate the effect of brand names that reflect the country of origin have on consumer perception. Research Questions 1. How do consumers perceive the quality of foreign brands as compared to their local ones? 2. What methods do foreign companies use to advertise and market their brands? 3. How do the attributes of brands from foreign companies influence local purchase of the products? 4. What are the factors that affect the perceptions of individuals on brands from foreign companies? 5. Does the influence of foreign brand names elicit a different consumer perception as compared to national brand names? 6. How does the brand attribute information of foreign brand moderate the impact of the brand name on consumer perception in national markets? Chapter 3 Literature Review The term branding is usually used in the definition of a number of things. For example, the term can be used to define the general marketing of a product, name or even a logo (Spears & Singh,2004). The brand development process requires a deep understanding of the business and the individuals who relate to business. In the recent times, the branding development process has formed the backbone for international companies and multinationals to gain audience in foreign markets (Ranchhod & Gurau, 2007). Branding has enabled foreign companies define a market position and direction for the vision of the company. Foreign companies have continually relied on adaptability and flexibility to survive in the global markets. These markets are characterised by volatile and constantly changing environment. Free trade and globalization are responsible for the increase in the variety of products and services available to consumers (Verlegh, 2007). Due to this plethora of options, consumers may at times find themselves experiencing some level of consternation. For instance, how does an individual evaluate a product offering? This challenge is responsible for the reliance of consumers on several strategies in the determination of product choices. A majority of consumers usually use the country of origin (COO) of a product, brand and product attributes in their evaluation (Peterson & Jolibert, 1995). The information of the product’s country of origin can affect the customer’s evaluation and purchase decisions. Consumers are usually interested in the details of the company manufacturing a brand. By this, they usually seek to establish if the company is domestically-owned or foreign-owned (Pike, 2011). In the past decade, there has been the emergence of a string of literature from researchers that address this impact of country of origin of brands and labels on consumer perceptions across the globe. The emergent literature has also aimed at the identification of other factors that also influence consumer perceptions. A number of frameworks have been developed that are aimed at attaining the aforementioned objectives. Sharma et al (1995) developed a model for testing the moderators and antecedents of consumer ethnocentrism (Shimp & Sharma, 1987). Researchers have explored the effects of brand names on consumer perceptions yet little has been done to investigate the effect of product attributes such as product ratings on the moderation and effect on brand name and consumer perception in a foreign country (Taylor & Moghaddam, 1994). Balabanis and Diamantopoulos (2004) observed that products sold under foreign brand names are usually aimed at creating a strong association with the country of origin of the brand. The firms marketing these brands either emphasize the country of origin to downplay the country of origin or emphasize the country of origin to consumers. According to a study by Papadoupoulos and Heslop (1993), firms use the positive association that exists between country of origin and foreign brands in the extensive marketing of their products for instance, the supportive association of Sweden with motor vehicles, Japan with microelectronics and Germany with beers. Nonetheless, when the image of country of origin is unfavorable, the marketers may experience formidable barriers in their attempt of positioning their products and services in the markets (Perrey & Spillecke, 2013). Chapter 4 4.0 Theoretical Framework In an ever competitive market where product features and attributes are usually copied by competing firms, companies are left to rely on the creation of brands to stay afloat the completion. The role of image and brand is tied to an individual’s attitudes and actions towards a particular object. This is usually determined by the assumptions and knowledge an individual possesses about the product. An example of a theoretical model that explains this brand relationship to product attributes and consumer perception is the Fishbein model. The model explains that there is a link between beliefs and attitudes. The three kinds of beliefs are inferential, descriptive and informational. From their study, Fishbein and Ajzen (1975) described the descriptive beliefs as those that are derived from a direct experience with a product. The informational beliefs are those that are influenced by outside influence and sources of information such as friends and advertisements. The inferential belief is formed by consumers making inferences which may be correct or incorrect based on past experience as this experience has a relationship to the current stimulus. Figure 1: The Fishbein Model Source: Fishbein and Ajzen 1975 Based on this theoretical framework, individuals purchase brands rather than products. An example is the purchase of soda from the Coca Cola Company. An individual may possess the ‘secret formula’ of manufacturing the drink, but individuals will still purchase their drink from the Coca Cola Company based on the company’s logo and creative packaging. The country of origin will still influence the purchase of brands by many individuals. For instance, favorable country-match would be the German car. This is because there is a link between the country and the product category as the country is perceived globally to be producing quality vehicles. Chapter 5 Research Methodology  The researcher will use investigative research methods in the study (Bhattacharya, 2006). The researcher will be keen, analytical and objective when carrying out the study (Chilisa, 2011). Based on the existence of literature in the topic, the researcher shall obtain data for the study from secondary sources. This data shall be obtained from such literatures as case studies, books, journals, periodicals and online content from credible websites. The researcher will collect information from these sources and analyse the information to establish trends and patterns. From the analysed information, the researcher will draw conclusions and recommendations. Chapter 6 Significance of Research The study is of importance to the body of knowledge in the branding and marketing fields. In the study, the researcher seeks to fill certain knowledge gaps from previous studies and research. From the study, the information can be used by international companies that seek to penetrate foreign markets. Globalization has provided an opportunity for companies in different industries to grow on a global scale. The growth of these companies has considerable impacts for both their competitors and the new consumer markets that the companies establish. Information from the study shall prove helpful to companies seeking to make an impact in foreign markets. For the consumers of products, the study will provide information that will be useful in the analysis and evaluation of products when making purchases. Consumers will, for example, be sensitized on the different factors that are prevalent in the influence and creation of perceptions on various brands. From the study, several stereotypes and ethnocentrism pegged to various countries and products will be addressed. This will further sensitize consumers and give them insights of the various factors to consider before making the purchase of a product or brand as opposed to using the country of origin alone. Chapter 7 Timeline  The estimates show that the research study will take four months as detailed in the Gantt chart below Activity March April May June Proposal Writing Preparation of Instruments Data Collection Data Analysis and Interpretation Report Writing Submission of Final Report After writing and submitting the proposal, the researcher shall wait for approval from the supervisor. Necessary amendments to the research study shall be made within the duration of proposal writing (one month) before commencing the actual research. In the second month of the research study, the researcher shall assemble the necessary instruments needed for the study. Good preparation is key to the success of a research study. The researcher will then begin collecting and analysing data in the third month of the research study. Interpretation of the data from the study will also be done during this time. The researcher will wind up the writing of the report of the research study and submit the final report to the supervisor in the last month of the study. References Balabanis, G., & Diamantopoulos, A. (2004). Domestic Country Bias, Country-of-Origin Effects, and Consumer Ethnocentrism: A Multidimensional Unfolding Approach. Academy of Marketing Science. Journal, 32(1), 80-95. Bevan, A., & Wengrow, D. (2010). Cultures of commodity branding. Walnut Creek, Calif, Left Coast Press. Bhattacharya, D. K. (2006). Research methodology. New Delhi: Excel Books. Chilisa, B. (2011). Indigenous research methodologies. London: Sage Pulications Chattalas, M., Kramer, T., & Takada, H. (2008). The impact of national stereotypes on the country of origin effect. International Marketing Review, 25(1), 54-74. Davis, M. (2009). The fundamentals of branding. Lausanne, AVA Academia. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior: an introduction to theory and research. 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