1. “HOW CAN BRAND EQUITY AND PERCIEVED RISK BE TRANSFERRED
TO SUPERMARKET’S OWN BRANDED PRODUCTS”
RESEARCH REPORT
By
Ravissh Hasan (1025157)
Sadiq Hasan Bukai (1025158)
Ali Hasan Khan (1025140)
Maheen Ishaq (1035197)
Supervised by:
Mr. Zaki Rashidi
MBA Research Project
Fall 2011
3. • The study is to determine how brand equity and perceived
risk can be transferred to supermarket’s own branded
products when consumers make their purchase decision and
filter out the alternative factors.
• The study also focuses on the marketing techniques that
should be used in order to position its own branded products
strongly in the minds of the consumers.
4. HOW CAN BRAND EQUITY AND PERCIEVED RISK BE TRANSFERRED TO
SUPERMARKET’S OWN BRANDED PRODUCTS”
Brand Equity Perceived Risk Transferred to Super Market’s Own Branded
Products
Brand Awareness Prior Experience
Bakery Items
Loyalty
Quality Pulses
Perceived Quality
Prior Experience Grocery Items
Price
Family/Friends Sanitary Items
Opinion Marketing
Price
Availability
Marketing Tactics
Sales Promotional
Activities
5. Aim of the Study
• To determine the variables within brand equity and perceived risk which has an impact on the purchase of
such supermarket’s own brands.
Scope
• As we have certain limitations to perform our research we would be conducting research on Ebco.
• The customers would be the day to day buyers of the daily items so that we get to know a clear picture of
the daily sales Ebco has.
• The results would be assumed to be the same for all other major supermarkets of Karachi.
Assumptions
• Ebco represents all the supermarkets that have the same kind of operations.
• Ebco is located at the well known shopping mall of forum which has a good footfall which is a positive sign
for sales..
• Since it is situated in a good mall so definitely quality standards are well taken care off, so the store and its
own branded products will also maintain high quality standards.
6. Objectives
•To ascertain whether brand equity and perceived risk are the
major factors behind the purchase of supermarkets own brands.
•To identify customer’s perception regarding Ebco’s brand.
•To determine the relationship of brand equity and perceived risk
with ebco’s own branded products.
•To determine factors that help switch to supermarket over other
alternatives.
•To Identify Customer’s Major Purchases Preferences From Ebco’s
Brand.
•To determine which supermarket would the consumers prefer
besides ebco
8. Research Design
Sampling Size
Qualitative And Quantitative 347 People
Research
Procedure •Measurement Instrument
Planning Phase Questionnaires
Implementation Phase
Data Recording •Plan Of Analysis
Qualitative Data Analyzing Frequency And Percentage
Descriptive Analysis
Population Ranking Of Factors
Competitors Analysis
10,000
Sampling Method •Software Employed
‘Convenience Sampling’. • Microsoft Office
• Spss 16.0
10. Respondent’s Profile
Age
Gender
Frequency Percent
Valid 40 Above 132 38.0 Frequency Percent
30-40 151 43.5
Valid Male 256 73.8
20-30 40 11.5
Female 91 26.2
Below 20 24 6.9
Total 347 100.0 Total 347 100.0
11. Residential Area Salary Range
Frequency Percent
Frequency Percent
Valid Clifton 38 11.0
Valid Above Rs 75000 67 19.3
Defence 102 29.4
Rs 50001-rs 75000 133 38.3
Pechs 5 1.4
Rs 30001-rs 50000 62 17.9
N.Nazimabad 70 20.2
Rs 15001-rs 30000 60 17.3
Bahadurabad 26 7.5
Less Than Rs 15000 25 7.2
Gulshan-e-Iqbal 14 4.0
Total 347 100.0
Gulistan-e-Jauhar 35 10.1
Other 57 16.4
Total 347 100.0
12. Objective no: 1
To Ascertain Whether Brand Equity And Perceived Risk Are The Major
Factors Behind The Purchase Of Supermarkets Own Brands.
Choice of Supermarkets
N Minimum Maximum Mean
• Majority of the people agreed Choice of Supermarket’s 347 1 5 2.37
with the statement that brand
equity is the major reason that Impact of Brand Equity on Consumer Purchase Decision
N Minimum Maximum Mean
affects their purchase decision
Impact Of Brand Equity 347 1 5 2.17
Valid N (List wise) 347
• However, people kept a very
neutral opinion about the Impact of Perceived Risk
N Minimum Maximum Mean
impact of perceived risk and
Impact Of Perceived Risk
their purchase decision. 347 1 5 3.17
Valid N (List wise) 347
1:Strongly Agree 2: Agree 3:Neutral 4: Strongly 5: Strongly
Disagree Disagree
13. Objective no: 2
To Determine The Relationship Of Brand Equity And Perceived Risk With
Ebco’s Own Branded Products.
Impact of Brand Equity
Factor Rank Mean
• Brand equity is dependent Influence Of Quality 2 2.35
upon various variables Influence Of Availability 7 2.77
which include price, quality Influence Of Advertisement 9 3.01
of the product etc.
Influence Of Prior Experience 3 2.47
• While on the other hand Influence Of Brand Name Of The 8 2.80
perceived risk of a brand is Company
dependent upon variables Family/Friends Opinion 4 2.57
like loyalty, prior experience Sales Promotional Activities 5 2.64
with the product, price etc. Impact Of Price On Purchase Decision 1 2.30
• Ebco’s brand image and Impact of Perceived Risk
brand equity is the major N Minimum Maximum Mean
reason that derives sales for Impact Of Perceived Risk On
347 1 5 3.17
the Ebco’s own branded Ebco Products
products. Valid N (List wise) 347
1:Strongly Agree 2: Agree 3:Neutral 4: Strongly 5: Strongly
Disagree Disagree
14. Objective no:3
To Identify Customer’s Perception Regarding Ebco’s Brand.
Factors Affecting Customer’ Perception Regarding Ebco
Mean
• People preferred EBCO because of Duration of Prior Experience with EBCO 2.26
the availability of products under a
Satisfaction with Ebco products 3.33
single roof.
Duration of prior experience with EBCO
• More importantly they believed
Cumulative
that EBCO delivers a better quality
Frequency Percent Percent
product at reasonable prices
compared to the others. Valid 1 - 6 months 85 24.5 24.5
6 months - 1
108 31.1 55.6
years
1 - 1.5 years 132 38.0 93.7
1.5 - 2 years 22 6.3 100.0
Total 347 100.0
1:Strongly Agree 2: Agree 3:Neutral 4: Strongly 5: Strongly
Disagree Disagree
15. Objective No: 4
To Determine Factors That Help Switch To Supermarket Over Other
Alternatives.
Factors That Help Switch To Supermarket Over Other Alternatives
• People preferred EBCO/Super N Minimum Maximum Mean
Markets because of the availability, Product Availability At 347 1 5 2.36
of products under a single roof.
Supermarket’s Brand
Better Quality Of 347 1 5 1.79
• More importantly they believed that Branded Products
EBCO delivers a better quality Durability In Products 347 1 5 2.41
product at reasonable prices Competitive Pricing 347 1 5 2.11
compared to the others. Of Products
Products Less Risky 347 1 5 2.59
• The prior purchase risk was another Than Generics
major factor that influences the Pre-purchase Risk 347 1 5 2.01
customers to prefer super markets Perception
over other alternatives. Reference Group 347 1 5 2.52
Appeal Reducing Risk
1:Strongly Agree 2: Agree 3:Neutral 4: Strongly 5: Strongly
Disagree Disagree
16. Objective no: 5
To Identify Customer’s Major Purchases Preferences From Ebco’s Brand.
Most Preferred Slightly Least Not Percentag Rank
preferr Preferred Preferred Preferred e
ed preference
• Brand equity is dependent upon
various variables which include brand (%)
awareness, quality of the product, and
the durability of the product,
availability, price and marketing Fruit 45 141 49 57 55 53% 6
efforts.
Vegetable 27 181 66 61 12 60% 3
• While on the other hand perceived
risk of a brand is dependent upon Meat 35 152 11 15 34 54% 5
variables like loyalty, prior experience
with the product, price etc. Ebco’s Peas 54 115 74 50 54 48% 8
own branded products were not only
higher in quality; but they were Masala 81 136 66 11 53 62% 1
available at reasonable rates.
Flour 69 103 72 48 55 49% 7
• Ebco’s brand image and brand equity
is the major reason that derives sales Dates 33 126 91 14 83 45% 9
for the Ebco’s own branded products.
Dry fruits 101 116 74 30 26 61% 2
Napkin 82 118 48 41 58 57% 4
17. Objective no: 6
To Determine Which Supermarket Would The Consumers Prefer Besides
EBCO
Alternatives Frequency
• The Consumer Responses
Imtiaz 306
Showed That They Would
Switch To Imtiaz Super And Naheed 242
My Super Store Would Be Aghas 238
The Last Option They Would
Marvi 183
Consider While Switching
From Ebco. Motas 182
Chase Up 171
Others 137
My Super Store 46
19. • Brand equity is dependent upon various variables which include
brand awareness, quality of the product, and the durability of the
product, availability, price and marketing efforts.
• While on the other hand perceived risk of a brand is dependent upon
variables like loyalty, prior experience with the product, price etc.
• Ebco’s own branded products were not only higher in quality; but
they were available at reasonable rates. Ebco’s brand image and
brand equity is the major reason that derives sales for the Ebco’s
own branded products.
20. References
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perception of store brand quality’, Journal of marketing, vol.58, no.6, pp. 28-36.
• Dunn, MG, Murphy, PE, Skelly, GU 1986, ‘The influence of Perceived risk on Brand
preference on super market products’, Journal of retailing, vol.62, no.2, pp. 204-
216.
• Besanko, D, Dube, JP, Gupta, S 2005, ‘Own-Brand and Cross Brand retail Pass-
Through’, Marketing Science, vol.24, no.1, pp. 123-137.
• Peter, NK, ” Brand association and consumer perception of value of Products”
• Burch, D, Lawrence, G 2005, ‘Supermarket Own Brands, Supply Chains and the
transformation of the Agri-Food system’, International Journal of sociology of
agriculture and food, vol.13, no.1, pp. 1-18.
• Mieres, CG, Martı´n, AD & Gutie´rrez, JT 2005, “Antecedents of the difference in
perceived risk between store brands and national brands”, Store brands and
national brands, www.emeraldinsight.com/0309-0566.htm>.
• Lyons, K, Supermarkets as organic retailers and impacts for the Australian organic
sector, www.ebscohost.com/http.
• Ailawadi, KL, Keller KL,2004 “Understanding Retail Branding Conceptual Insights
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