European Journal of Management and Marketing Studies
ISSN: 2501 - 9988
ISSN-L: 2501 - 9988
Available on-line at: http://www.oapub.org/soc
Volume 2 │ Issue 2 │ 2017
doi: 10.5281/zenodo.1066362
THE IMPACT OF BRAND ON A
CAR PURCHASING DECISION PROCESS
Nora Sadiku-Dushi1,
Gresa M. Mjaku2i
1
Business Administration,
South East European University, Tetovo - Macedonia
St. Hamza Jashari nr.21, Ferizaj, Kosovo
2
Economics, South East European University, Tetovo - Macedonia
St. Rexhep Krasniqi, k2, no.10, Pristina, Kosovo
Abstract:
The concept of "brand" has provoked a huge curiosity among researchers from around
the world because it plays a very important role in all marketing activities. This study
aims to provide an overview of the impact of brand names on Kosovo consumers’
behavior and on their decision for car purchasing. The study will also investigate the
other factors that consumers consider important when buying cars such as price, quality
and country of origin, and among others the study will also investigate what is their
opinion on the role of the car brand in determining the social status of the person and
its impact on a persons’ self-esteem. This research is of an empirical nature and is
carried out by collecting primary data via a self-administered questionnaires
distributed electronically to 100 randomly selected car possessors. The study has
pointed out that brand is not the decisive factor when making a decision to purchase a
car. The price, quality and country of origin of cars are considered the most important
attributes in determining the purchase. The results of this paper can be used by
marketing managers and car dealers who, based on the data obtained from this
research, can create new price strategies or even implement other promotional forms
that put more emphasis on price, quality and country of origin of cars in order to better
access their customers.
Keywords: brand, brand capital, quality, country of origin, buying decision, customer
behavior
Copyright © The Author(s). All Rights Reserved.
© 2015 – 2017 Open Access Publishing Group
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Nora Sadiku-Dushi, Gresa M. Mjaku
THE IMPACT OF BRAND ON A CAR PURCHASING DECISION PROCESS
1. Introduction
It is known that the brand distinguishes the product from other products of the same
category. The products’ brand is considered to play an important role in consumers’
purchasing decisions, especially nowadays when people are more appreciated for what
they possess rather than who they are. This is the main reason why people are eager to
buy and possess things that differs them from others. The brand of a certain product
reflects on the status of the individual in a society, on their lifestyle and their
purchasing behavior. Recently, brands are playing a very important role in consumers’
purchasing decisions no matter which product is involved.
One of the products that today are considered as a necessity is the cars. The
researches show that number of cars in world is constantly increasing. In 1986, the
number of cars in the world was 500 million, while only 24 years later, respectively in
2010, this number doubled and exceeded one billion. It is anticipated that by 2050 the
number of vehicles in the world will reach 2.5 billion. As this paper will cover
consumers in Kosovo, we will give a brief description of the data on population,
average salary and number of vehicles in Kosovo, data that are relevant to the field of
research.
According to the Kosovo Agency of Statistics, Kosovo has about 1.78 million
inhabitants while the average salary in the budget sector is 466 Euros. From the
agency's data, it can be seen that the number of vehicles from year to year increases. In
2015, the number of registered vehicles in Kosovo was 281,847 ("Kosovo Agency of
Statistics", 2016).
Kosovo does not have a car industry; therefore, all cars circulating in Kosovo are
imported from different countries worldwide. On the Kosovo market, those cars can be
bought as new cars from authorized representatives of different brands or as used cars
in many car dealing stores. Kosovar consumers have many options for choice, ranging
from different brands to different car prices offered on the market. Despite many
studies related to this topic around the world, there is a lack of information about brand
impact on car purchase decisions in Kosovo. On one hand, this study will contribute in
enhancing the knowledge base in the field of car brand importance for Kosovo
consumers or will eventually ignite the curiosity of other researchers to continue the
research in this area. While, on the other hand, car vendors and marketing managers in
Kosovo can benefit from the findings of this study by learning how important the car
brand is in the purchasing decision.
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2. Study objectives
In order to accomplish this research the objectives have been carefully selected. The
main objectives of this research are:
1. To examine the impact of the brand on the choice of car by Kosovo consumers.
2. To analyze which factors, apart from the brand, are considered important when
making a decision to purchase a car.
3. To contribute to the growing knowledge base in the field of product brand
impact in Kosovo.
3. Research questions
The main research questions that will be answered in this study are:
1. How important is the car brand for Kosovo consumers?
2. What are the factors influencing the decision to buy a car?
3. How loyal are Kosovo consumers to the car brands that they own? And,
4. What do Kosovo consumers think about the role of brand in determining the
person’s social status and self-esteem?
4. Literature review
As mentioned above, there are thousands of scholar articles and a large number of
written books on the importance of branded products in customer purchasing decisions
for various products that have developed numerous theories that can easily be used by
other researchers to deepen the research in this field for different products or locations.
For the purpose of this research, only a small portion of worldwide literature will be
revised. The literature review will cover areas such as brand, brand equity, brand
awareness, brand relationship, perceived quality, and brand loyalty.
4.1 Product Brand
The American Marketing Association (1960) defines the brand as a name, expression,
symbol or a combination of all these, created to identify the products or services of a
seller or group of seller and to distinguish them from the competition. In other words,
brands are created to distinguish products from competition. Numerous researches
have highlighted that the main goal of any company is to increase sales and
profitability. Companies do this by creating brand names for their products and aim for
their brands to be identified by consumers. Identification of brands is done through
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visual or audio elements, including shape, colors, slogans, logos and images, characters,
sound columns or even music (Gaillard, Sharp and Romaniuk, 2005).
Consumers get familiar with learning the above elements either through direct
experience from buying or consuming a brand, or indirectly, such as being exposed to
advertising, publicity, or even word-of-mouth marketing. It is found that consumers
often find it easier to remember and recall a brand through images or pictures used
than through text or information intended to be transmitted through it (Childers and
Houston, 1984). A strong brand is considered one that possesses high brand equity
(Aaker, 1996).
4.2 Brand Equity
Apart from creating and building a brand, the brand equity is considered one of the
main goals of today's companies. Thus, empirically, it has been proven that high brand
equity can increase consumer preference and purchasing intentions (Cobb-Walgren,
Ruble and Donthu, 1995), the loyalty toward the brand (Johnson, Herrmann and Huber,
2006) and return on shares (Aaker and Jacobson, 1994). Thus, looking at the literature
and studies undertaken in the area of brand equity creations, there are a number of
definitions of the concept of brand equity. What is evident in all the studies is the fact
that brand equity is considered as a key factor that can brought to the company: high
profits, brand expansion opportunities, protection against competitors, effective
communication force but also leads to empowerment of consumer preferences, the
purpose of purchasing and customer loyalty (Allaway et al., 2011; Buil, de Chernatony
and Martinez, 2008).
In his "Brand Equity" model, Aaker (1991) identifies five dimensions of brand
equity: (1) brand loyalty, (2) brand awareness, (3) perceived quality, (4) brand (5) other
brand property assets. Aaker (1991) defines brand equity as a set of assets and liabilities
associated with the brand-name or symbols-which add or lower the value of the
product or service.
Many researchers have dealt with brand equity research; however, despite
differing views on any brand equity research, the only common denominator in all
models is the use of one or more dimensions of the Aaker model (Bendixen, 2004;
Keller, 1993; Kim and Kim, 2004; Motameni and Shahrokhi, 1998; Yoo, Donthu and Lee,
2000). For this reason customer-based brand equity is an asset of four other dimensions,
such as brand awareness, brand relationships, perceived quality, and brand loyalty.
Based on the different models and concepts about brand equity presented in the
above section, and mainly based on the Aaker model, we present the dimensions of the
brand equity as follows:
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Brand Equity
Brand Awareness
Brand Relationship
Perceived Quality
Brand Loyalty
Figure: Dimensions of the Brand Equity
Source: Aaker and Joachimsthaler (2002)
4.2.1 Brand Awareness
Brand awareness is considered as the ability of consumers to remember and recall
brands. This is reflected in their ability to identify the brand under the influence of
many factors but also to have in their minds the brand name, logo, symbols etc. (Keller,
2002). According to Aaker (1996) brand, awareness refers to the consumer's ability to
remember or distinguish that a brand is a member of a particular product category so
that they can establish a link between the product and brand's class involved.
Awareness toward brands creates a high level of comfort in making purchasing
decisions (Woodside et al., 2008; Moisescu, 2009). Brand awareness is considered as one
of the most important elements because all the relationships with the particular brand
starts from brand awareness, and can also influence consumer perceptions as well as
attitudes toward a specific brand (Washburn and Plank, 2002). In many cases, it can
lead the customer towards brand selection or loyalty to it (Aaker, 1996). In the context
of this research regarding the purchase of cars, consumers may choose well-known
brands cars compared to those of lesser-known brands as there is a higher awareness of
the brand and reputation of well-known car manufacturers.
4.2.2 Brand Relationships
Brand relationships are not only the key aspect related to brand equity but it is also the
key aspect in the purchasing decision process and in brand loyalty (Aaker, 1991). Brand
relationships consist of the thoughts, feelings, perceptions, image, experiences, beliefs
and attitudes of the consumer regarding the brand (Kotler and Keller, 2006). Brand
relationship serves as the basis for making a purchase decision since consumers prefer
and use brands that are known since they feel safer when making a purchasing
decision.
4.2.3 Perceived Quality
Perceived quality is a key dimension of a brand as it defines the consumer's perception
of the product quality level by explaining that consumers would have low brand
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preference if they would link the brand to low quality level (Chi, Yeh and Yang, 2009).
Most consumers prefer to buy well-known brands that are proven rather than trying to
buy unknown or new brands (Desai, Kalra and Murthi, 2008.). Many studies have
found that the brand quality has a direct impact on the purchasing decision and brand
loyalty creation.
4.2.4 Brand loyalty
Brand loyalty is the main dimension in building a brand equity. This loyalty is defined
as a relationship or affection that the consumer has towards the brand (Aaker, 1991).
Loyalty to the brand is considered one of the ways the consumer expresses his
satisfaction with the product or service performance he has received (Bloemer and
Kasper, 1995). If customers are satisfied with the brand they will buy the product on a
regular basis (Leahy, 2008). Also, this would help customers by reducing the risk and
saving the time to make a purchase decision (Yeboah et al., 2013). Kapferer (2008) has
emphasized that brand loyalty helps companies in growing sales and lowering
promotional costs thus enabling them to be more competitive in the market.
5. Research Methodology
This study is based on primary and secondary data. In order to answer the research
objectives and research questions the quantitative methodology was used. The primary
data are gathered through questionnaires that were distributed online to 100 randomly
selected car owners. The way of data collection and sample selection will be disclosed in
the following sections.
5.1 Data collection
Since there is a lack of this type of research in Kosovo, and taking into consideration
that brand preferences are personal issues, this study is based on the collection on
primary data in order to gather the most honest responses from the respondents.
Primary data will support the practical aspect of the research, while secondary data are
used to support the theoretical part of this research.
5.2 Sample Selection
As a sample for research, 100 car owners have been randomly selected. The selection of
this sample relates to the nature of this research at determining the impact of car brand
on consumer behavior, especially in their decision to purchase a car.
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5.3 Questionnaire
In order to collect the primary data the questions were adopted from the questionnaire
used by Letchumanan and Sam (2016) and were modified according to the needs of the
study. The self-administered questionnaire was designed through Google Forms and
consisted of 12 questions, ranging from questions about age, gender, monthly income,
questions about the car brand they possess, attributes that have affected the purchase of
a particular car brand and the importance of the brand of the car in the purchase
decision, the role of the brand in determining the position and the class in the society as
well as the influence of the car brand on the self-esteem of the person. The questions
were clear and understandable. All the responses were multi optional with mandatory
fields, which did not allowed mistakes in completing the questionnaire. The survey was
conducted electronically and respondents received a link that redirected them to the
questionnaire. They were also assured of the anonymity and confidentiality of their
data. When the number of responses has reached 100 questionnaires, the online
questionnaire was deactivated, as this number can be considered as sufficient to draw
the necessary conclusions and respond to the research questions.
6. Discussion of Results
In this section, the empirical data collected from this research will be presented. Results
are analyzed based on key research questions; the importance of the car brand, the
factors affecting the decision to buy a car, the loyalty of Kosovo consumers to the car
brand, and the assessment of the cars’ brand influence in determining the social status
of the individual and its impact on persons self-esteem.
Table 1 presents demographic characteristics of respondents. 61 percent of
respondents were males whereas 39 percent where females. Most respondents (70
percent of them) where in the age groups 20-30 and 31-40 years. The age group of 41-50
was represented by 19 percent, 7 percent where in the age group of 51-60, while only 4
percent of the respondents where older than 60 years.
In terms of monthly income, 34 percent of respondents stated that they have a
monthly income of 301-500 Euros, 22 percent of them have a monthly income of 501-700
Euros, 11 percent receive from 701-900 Euros per month, 14 percent declared their
monthly revenues higher than 900 Euros, while monthly income below 300 Euros
declared 19 percent of respondents. As far as the employment is concerned, the majority
of respondents are working in the private sector (41% of respondents are working in
this sector while 27 percent have declared themselves as owners of private businesses).
32 percent of the respondents work in the government sector.
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Variable
Description
Gender
Males
61%
Females
39%
20-30
35%
31-40
35%
41-50
19%
51-60
7%
Above 60
4%
150-300
19%
301-500
34%
501-700
22%
701-900
11%
Above 901
14%
Government sector
32%
Private sector
41%
Owners of private companies
27%
Age group
Monthly income
Employed in
Percentage
Table 1: Respondents’ profile
Respondents were initially asked to identify their car brand. Totally thirteen brands of
cars are identified. Figure 1 shows that the largest number of respondents, respectively
36% of them own Volkswagen, followed by Opel 13%, Mercedes 12%, Peugeot 8%, Fiat
and Audi by 6%, BMW and Ford by 5% Citroen and Renault with 3%, while 3% of
respondents said they own Mitsubishi and Land Rover. It is clear from the data that
Kosovars prefer German car brands, as 77% of all the above-mentioned vehicles are of
German production.
Figure 1: Types of car brands owned by respondents
Respondents were also asked which product attribute they considered most important
during their decision to buy a car. For the purpose of this research, they have been
offered a list of some of the attributes such as price, quality, brand of product, previous
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experience with the car and design. They had the option to choose more than one
attribute they consider to be important when purchasing the car. From the data
obtained in Figure 2 it can be noticed that Kosovo consumers consider quality as the
main attribute when making a decision to buy a car with (45 percent), followed by the
price by 35 percent. The car brand is ranked as the third factor by importance with 25
percent, while the least important attributes when making a purchasing decision is
considered the previous experience with the same car (18 percent) and car design (8
percent). These results show that Kosovo consumers are more sensitive to price and
quality than to car brand.
Figure 2: The importance of the product attributes on a car purchasing decision
Further, respondents were asked whether they would buy again the same brand of car
that they currently possess. This question is asked in order to find out whether there is a
habit of repurchasing and how loyal customers are to the chosen brands.
Figure 3: Repurchasing the same car brand
Figure 3 shows the answers to the question of whether respondents would buy again
the same car brand as they own. A significant number of 72 percent of the respondents
would still buy the same car again, while only 28 percent of them would not buy the
same brand car. These data show that Kosovo consumers are likely to remain loyal to
the brand of cars they own due to the awareness with their favorite brand.
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The next question was about their consideration for the purchase of less-known
brand cars, 47 percent of respondents responded negatively, 38 percent said they would
consider purchasing a less well-known car brand, while 15 percent said they would
definitely buy less well-known brands of cars (Figure 4). The level of confidence and
security they have on known brand cars seems to have influenced their preferences for
certain brands of vehicles. Based on the results it can be seen that the brand relationship
in this case plays an important role in the purchase decision.
Figure 4: Purchasing less-known branded cars
To approach the perception of quality, respondents were asked whether they think the
cars of the well-known brands are more qualitative. Figure 5 shows that 50 percent of
the respondents agree that well-known brands have better quality than the less-known
brands, 34 percent stated that it is not always said that well-known brands are more
qualitative, whereas only 16 percent think that well known car brands are not more
qualitative than unknown car brands. These data show that a significant proportion of
Kosovo consumers link the brand with quality, considering that the well-known brands
are more qualitative than unknown brands. This is related to the perception of quality
as Kosovo consumers prefer branded cars because they are convinced that the branded
cars are more qualitative.
Figure 7: Quality perception of well-known vs. less-known car brands
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THE IMPACT OF BRAND ON A CAR PURCHASING DECISION PROCESS
In order to analyze the role of car brand on determining the social class, respondents
were asked whether they agree with the expression that the car brand defines the status
and the social class of the individual. Kosovo consumers seem to disagree that the car
brand affects the status and social class of the individual as 43 percent of respondents
answered that it is not said that the car brand determines the individual's class, 25
percent did not agree at all with this assumption while only 32% think that the car
brand determines the social class of the individual (Figure 6). Since most respondents
disagreed with this assumption, we can conclude that the decision to purchase a car
from Kosovo consumers is not related with the desire to advance the personal status in
society or to change their lifestyle.
Figure 6: The impact of brand on a social class
Following the question about the social class, respondents were also asked about the
impact of the car brand on self-esteem of individuals. Figure 7 shows that most
respondents do not totally agree that the car brand increases self-esteem of the person.
In fact, 28 percent of respondents think that the brand may sometimes affect the persons
self-esteem, 49 percent do not agree at all with this assumption, while only 23 percent of
the respondents think that a well-known car brand can increase a person’s self-esteem.
The result show that most of the respondents do not agree that branded car necessarily
plays a role in increasing a person’s self-esteem.
Figure 7: The impact of branded car on a person’s self-esteem
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THE IMPACT OF BRAND ON A CAR PURCHASING DECISION PROCESS
The last question was about revealing how much the car brand is important over other
product attributes. A figure 8 show that for 45 percent of respondents the car brand is of
little importance, 16 percent answered that the brand does not matter at all, while for 39
percent of the respondents the car brand plays a very important role in their car
purchasing decision. This makes us realize that Kosovo consumers do not see the brand
as the main attribute when making their final car purchasing decision.
Figure 8: The importance of brand on car purchasing decision
7. Conclusion and Recommendations
The aim of this study was to provide an insight into the impact of car brand on
customer behavior when making a car purchase decision and to answer the following
research questions:
1. What are the factors influencing the decision to purchase a car to Kosovo
consumers?
2. How important is the car brand for Kosovo consumers’?
3. How loyal are Kosovo consumers to the car brands that they own? And,
4. What do Kosovo consumers think about the role of brand in determining the
social status and a person’s self-esteem?
From the results obtained from this research, it can be concluded that Kosovo
consumers are price-sensitive because they ranked the price and the quality as most
important factors when making a purchasing decision for cars, while although a
number of respondents have considered the brand as important they have not listed it
as the decisive factor in making the final purchase decision. Even when brand is offered
as the independent cue, it is still not considered very important to them.
The results also show that Kosovo consumers have high brand loyalty, as they
will again buy the same brands of cars that they possess. In addition, the results show
that buying cars from Kosovo consumers is not related to the desire to increase the
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position in a social status or to change the lifestyle, nor does it greatly affect the selfesteem of the person.
Since from the findings of this research we can conclude that the car brand is not
considered as a decisive factor in the purchase decision, marketing managers and car
dealers can use these data in order to create different price strategies or other
promotional forms which put more emphasis on the price, quality and even on country
of origin of cars in order to better access their customers.
The research was limited to the study of brand and a small number of other
factors in making a decision to purchase a car. Also, it was limited to Kosovo consumers
only, therefore it is suggested that future research may be expanded to other factors that
affect car purchase decisions or even the impact of brand on purchasing other types of
products in Kosovo or elsewhere.
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