This document summarizes a research paper that examines brand switching behavior for toothpaste brands in Nigeria using Markov chain analysis. The paper aims to determine the probabilities that a consumer will either remain loyal to the same toothpaste brand or switch to a different one during their next purchase. Data was collected from 785 university students regarding their toothpaste brand choices. The data was analyzed using Markov matrices and regressions to observe brand loyalty patterns and the factors influencing switches between brands. The findings showed that switches occurred due to product attributes like flavor and functionality rather than external factors. The paper concludes that consumers exhibit brand loyalty based on a brand's benefits and recommends strategies to strengthen loyalty.
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
An Evaluation of the Effect of Consumer Characteristics on Retail Format Patr...Dr. Amarjeet Singh
Consumer is prime factor in retailing. A customer
can adapt various buying roles like initiator, influencer,
decider, buyer, preparer, maintainer and disposer in
purchasing and using the products. Buying behavior helps
marketers learn the intensity and degree of involvement of
customers in purchasing the products. Studies that link
customer service to factors such as demographic,
psychographic characteristics and store format choice are
rather limited and under studied despite the fact of the
discovery that individual characteristics of consumers
influence their shopping behavior. Despite its importance
and its contribution toward better understanding of
consumer purchasing behavior, there is still lack of research
in this area especially in the retail sector. In validating the
measurements and investigating 650 questionnaires were
filled by shoppers. The research concluded with a
discussion on management implications as well as
recommendations that suppliers should supply the good
in shopping malls through considering their demographic
and psychographic responses.
Factors Affecting On Customer Retention: A Case Study of Cellular Industry o...paperpublications3
Abstract: The aim of this study is to investigate the effect of price perception, customer satisfaction, brand image, switching barriers (switching cost, interpersonal relationship and attractiveness of alternative) and trust towards the Customer retention in the cellular industry of Pakistan. This study adds many other supporting materials especially for the literature review; a model is used by this study to find the effect of the factors on customer retention. The data was collected from the customers in Lahore who are subscribers one of the cellular company (Mobilink, U-Fone, Telenor, Warid, and Zong) of Pakistan. The data is analyzed with the help of the multiple regression analysis. Out of seven variables tested it is found that switching barriers (interpersonal relationship and switching cost), brand image, price perception, trust and customer satisfaction have the effect on customer retention. However, customer satisfaction has little to do to increase the customer retention. This study also provides evidence that the higher switching barrier of attractiveness of the alternative lower will be the customer retention. This current study has its own limitation since this research is only conducted in Lahore area. Therefore the finding of the study is unable to be generalized for the whole population of mobile users in Pakistan as the sample size is measured small. The findings can help the service providers to find the effect of customer satisfaction, price perception, trust, brand image and switching barriers towards the customer retention.
Keywords: customer satisfaction, brand image, price perception, trust, switching barriers, customer retention.
Discovering service quality in retail grocery stores: A case study of Delhideshwal852
Purpose of the research: With the given backdrop it was decided to inquire about the service quality offered in organized retail grocery stores. The customers who visit the grocery stores with so much expectation; are they really satisfied with the service quality delivered tothem. This paper is an attempt to compare the service quality offered in different organized retail grocery stores. Research Methodology: Primary data has been collected by a sample survey of customers shopping at various grocery stores located at Delhi using convenient sampling technique. A sample of 300
respondents was approached. These respondents are from different categories of organized retail stores as Hypermarket, Supermarket and Convenience Stores. For the purpose of collecting the required data, the questionnaire method was used. A standardized questionnaire was used to solicit information on customers. To collect the primary data Retail Service Quality Scale (RSQS) developed by Dabohlkeret.
al. (1996) was used. The Retail Service Quality Scale have “Physical Aspects”, “Reliability”, “Personal Interaction”, “Problem-Solving” and “Policy Making” as five different dimensions to measure service
quality offered by retail stores. Data was interpreted by applying two ways ANOVA. Implications: The research will be helpful to gain an understanding of the whole scenario of service quality offered. It will also provide an insight to find the gap between the satisfaction levels of the customers with respect to different types of stores due to service quality.
The Effect of Brand Equity on Consumer Buyer Decisions : A Case Study in Groc...AJHSSR Journal
ABSTRACT : The increasing competition leads product offering from other competitors are varied, hence
consumer loyalty is questionable. It is prominence to create distinguishable product so that leads loyalty to the
consumer, particularly in grocery product. This paper aims to test brand equity of a new brand which consist of
brand awareness, brand loyalty, brand association, and perceived quality on consumer purchase decisions. The
finding revealed strong relationship on perceived quality and brand association regarding strong cognizable
from the previous brand product in spite of low brand loyalty. The findings are more useful to practitioners in a
way to understand the way of consumer perception point of view.
KEYWORDS : Brand association, awareness, loyalty, perceived quality, purchase decisions
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
An Evaluation of the Effect of Consumer Characteristics on Retail Format Patr...Dr. Amarjeet Singh
Consumer is prime factor in retailing. A customer
can adapt various buying roles like initiator, influencer,
decider, buyer, preparer, maintainer and disposer in
purchasing and using the products. Buying behavior helps
marketers learn the intensity and degree of involvement of
customers in purchasing the products. Studies that link
customer service to factors such as demographic,
psychographic characteristics and store format choice are
rather limited and under studied despite the fact of the
discovery that individual characteristics of consumers
influence their shopping behavior. Despite its importance
and its contribution toward better understanding of
consumer purchasing behavior, there is still lack of research
in this area especially in the retail sector. In validating the
measurements and investigating 650 questionnaires were
filled by shoppers. The research concluded with a
discussion on management implications as well as
recommendations that suppliers should supply the good
in shopping malls through considering their demographic
and psychographic responses.
Factors Affecting On Customer Retention: A Case Study of Cellular Industry o...paperpublications3
Abstract: The aim of this study is to investigate the effect of price perception, customer satisfaction, brand image, switching barriers (switching cost, interpersonal relationship and attractiveness of alternative) and trust towards the Customer retention in the cellular industry of Pakistan. This study adds many other supporting materials especially for the literature review; a model is used by this study to find the effect of the factors on customer retention. The data was collected from the customers in Lahore who are subscribers one of the cellular company (Mobilink, U-Fone, Telenor, Warid, and Zong) of Pakistan. The data is analyzed with the help of the multiple regression analysis. Out of seven variables tested it is found that switching barriers (interpersonal relationship and switching cost), brand image, price perception, trust and customer satisfaction have the effect on customer retention. However, customer satisfaction has little to do to increase the customer retention. This study also provides evidence that the higher switching barrier of attractiveness of the alternative lower will be the customer retention. This current study has its own limitation since this research is only conducted in Lahore area. Therefore the finding of the study is unable to be generalized for the whole population of mobile users in Pakistan as the sample size is measured small. The findings can help the service providers to find the effect of customer satisfaction, price perception, trust, brand image and switching barriers towards the customer retention.
Keywords: customer satisfaction, brand image, price perception, trust, switching barriers, customer retention.
Discovering service quality in retail grocery stores: A case study of Delhideshwal852
Purpose of the research: With the given backdrop it was decided to inquire about the service quality offered in organized retail grocery stores. The customers who visit the grocery stores with so much expectation; are they really satisfied with the service quality delivered tothem. This paper is an attempt to compare the service quality offered in different organized retail grocery stores. Research Methodology: Primary data has been collected by a sample survey of customers shopping at various grocery stores located at Delhi using convenient sampling technique. A sample of 300
respondents was approached. These respondents are from different categories of organized retail stores as Hypermarket, Supermarket and Convenience Stores. For the purpose of collecting the required data, the questionnaire method was used. A standardized questionnaire was used to solicit information on customers. To collect the primary data Retail Service Quality Scale (RSQS) developed by Dabohlkeret.
al. (1996) was used. The Retail Service Quality Scale have “Physical Aspects”, “Reliability”, “Personal Interaction”, “Problem-Solving” and “Policy Making” as five different dimensions to measure service
quality offered by retail stores. Data was interpreted by applying two ways ANOVA. Implications: The research will be helpful to gain an understanding of the whole scenario of service quality offered. It will also provide an insight to find the gap between the satisfaction levels of the customers with respect to different types of stores due to service quality.
The Effect of Brand Equity on Consumer Buyer Decisions : A Case Study in Groc...AJHSSR Journal
ABSTRACT : The increasing competition leads product offering from other competitors are varied, hence
consumer loyalty is questionable. It is prominence to create distinguishable product so that leads loyalty to the
consumer, particularly in grocery product. This paper aims to test brand equity of a new brand which consist of
brand awareness, brand loyalty, brand association, and perceived quality on consumer purchase decisions. The
finding revealed strong relationship on perceived quality and brand association regarding strong cognizable
from the previous brand product in spite of low brand loyalty. The findings are more useful to practitioners in a
way to understand the way of consumer perception point of view.
KEYWORDS : Brand association, awareness, loyalty, perceived quality, purchase decisions
Developing Relationships; consumers as a source for sustainable competitive a...Kevin Rommen
The world is changing thus business units should also be changing. The influences of social media and internet can no longer be neglected, case in point “Nestlé’s epic social media #fail”1. These changes are giving consumers more and more power in their relationship with business units. Furthermore the enormous amount of products available give consumers more and more possibilities to choose from. For example, at supermarkets in the USA you’ll find in the average week about 110 cereal brands in stock (Shum, 2004). The availability of that amount of different products/product-ranges within an industry raises the question to how business units can create competitive advantage within this enormous amount of competition, especially when the consumer is gaining power?
A Study on Consumer Behaviour towards Branded Garments am ong Male Shoppersinventionjournals
In the age of identity crisis and need for differentiation, everyone is after uniqueness; particularly h ow one wishes to appear. India is a global market for fashion garments and there is a cut throat competition exi sting among brands. Companies are rigorously working on identifying consumer buying behaviour, preferences, creating awareness, and a positive attitude towards their brands in order to grab larger portion of the market. Therefore, it is become necessary to study the consumer behaviour towards various branded men`s garments. T he study emphasis on how consumer evaluate branded garments on the basis of style, texture, price, colour, adv ertisement and celebrity endorsements, preferences towards branded garments and reasons for purchasing bran ded garments. The researcher has used descriptive research design, conducted study only with 150 respondents from two Engineering college, Bangalore. Statistical tools like measurement of central tendency, Chi-Square ar e used to test and analyse the collected data. Finally, it is revealed that irrespective of age and education levels respondents are buying branded garments to enhance their style, ant to protect their self-respect.
A Study on Consumer Behaviour towards Branded Garments am ong Male Shoppersinventionjournals
In the age of identity crisis and need for differentiation, everyone is after uniqueness; particularly h ow one wishes to appear. India is a global market for fashion garments and there is a cut throat competition exi sting among brands. Companies are rigorously working on identifying consumer buying behaviour, preferences, creating awareness, and a positive attitude towards their brands in order to grab larger portion of the market. Therefore, it is become necessary to study the consumer behaviour towards various branded men`s garments. T he study emphasis on how consumer evaluate branded garments on the basis of style, texture, price, colour, adv ertisement and celebrity endorsements, preferences towards branded garments and reasons for purchasing bran ded garments. The researcher has used descriptive research design, conducted study only with 150 respondents from two Engineering college, Bangalore. Statistical tools like measurement of central tendency, Chi-Square ar e used to test and analyse the collected data. Finally, it is revealed that irrespective of age and education levels respondents are buying branded garments to enhance their style, ant to protect their self-respect.
This research was conducted among consumers of famous retail stores (e.g. Carrefour, Giant,
Hypermart, Lotte, etc.) which offering private label brands in Jakarta. This study aimed to analyze the influence of
attitude and brand awareness toward private label brands purchase intention. The assumed sample size was 150
respondents by using convenience sampling technique. The multiple regression model was used in this research
data. The result shows there was relationship found among all the given variables, which means that all research
hypotheses were found to be supported. These findings are expected to provide useful managerial implications for
retailers in terms of effective solutions marketing for private label brands.
Original Source: https://www.sciencedirect.com/science/article/pii/S0969698919314882.
This study examines the effects of personalization and hedonic motivation on customer experience and its loyalty outcomes in omnichannel retail context. The study develops eight hypotheses which are tested using two survey samples (Finland (n = 2084) and Sweden (n = 2334). In addition, empirical analysis includes 20 semi-structured interviews. The findings support all the hypotheses confirming the positive relationships personalization and hedonic motivation have on cognitive and emotional customer experience components. Further, the positive effects of customer experience on loyalty are confirmed. The results provide both theoretical and managerial insights for improved CX and customer loyalty.
THE IMPACT OF SERVICE QUALITY AND BRAND AWARENESS ON BRAND LOYALTY: (A STUDY ...paperpublications3
Abstract: The study investigate the impact of service quality and brand awareness on brand loyalty. The participants of the survey were 400 mobile telecommunication subscribers from the fourteen local government areas of Zamfara state derived using Taro Yamane sample size formula. Regression analysis was the statistical tools used to test for the two hypotheses using version 22 SPSS. The findings suggested that that there exist significant positive influence between brand awareness and brand loyalty, service quality and brand loyalty. The present research provides resourceful and clear findings for telecommunication companies which can be harnessed in their effort to create and implement successful customer loyalty strategies. Future research can also look into other sub-variables under brand awareness like traditional advertisement, non-traditional advertising, sales promotion, leveraging on the web, sponsoring local and social events and their ratio of relative significance on brand loyalty.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...
Markovian application to brand switching behaviour
1. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.22, 2013
Markovian Application to Brand Switching Behaviour: A Survey
of Toothpaste
Godwin I. Umoh, Ph.D
Department of Management, University of Port Harcourt
Hart O. Awa, Ph.D
Department of Marketing, University of Port Harcourt
Prince T. Ebitu, Ph.D
Department of Marketing, University of Calabar
Abstract
Every industry and economy is idiosyncratic especially in terms of what drives consumer loyalty and so,
extrapolating knowledge may not always provide the right basis for competitive advantage. This paper borrows
transition matrix as a forecasting instrument for determining the market environment in the future, and sets out to
unveil the potential of Markov chains in sequencing family brand choice and in determining intensive
transitional probabilities for toothpaste. Data were purposefully drawn from 785 students of universities of
Abuja, Lagos, and Port Harcourt. The data generated were cast into a Markov matrix to permit meaningful
observation of the households’ behaviour toward five brands of toothpaste. Further, the data were analyzed using
multiple regressions and Pearson correlation co-efficient; and the findings showed that households exhibit
AAAAA, AAAAB, and AAABC not because of trade deals, out-of-stock of favourites, and in-store stimuli;
rather because of such product-delivery attributes as flavour and functionality, brand availability and awareness,
and brand name and image. While the paper concludes that subjects exhibit brand loyalty based on brand’s
selling points, the paper advised on creating corporate framework that allows for more strategic and perhaps
tactical actions.
Key words: Markov chain, toothpaste, switching behaviour, brand loyalty.
Introduction
Building sustainable competitive advantage (SCA) has long made the phenomenon of consumer brand switching
a central issue underlying market dynamics (Dick and Basu, 1994; Parker, 1979). Amidst the prevailing stiff
competition and informed consumers, scholars and practitioners recognize that steady throughput lies on
grasping the processes that underlie brand switching/loyalty and to cast it into a framework suitable for
evaluating market factors and for predicting their influences on sales behaviour (Farley and Kuehn, 1965; Parker,
1979). This is worthwhile because loyal behaviour attracts product-support information and advocacy behaviour
(Schoenbachler, 2004; Kuenzel, 2009; McGrath, 2011), less price sensitivity, and willingness to spend more
resources to maintain undisrupted behaviour (Paswan et al., 2007). Aside loyal consumers refusing to switch in
order to show cohesiveness to the symbols of their social class (Nia and Zaichkowsky, 2000); their positive
word-of-mouth represents the mechanism for saving marketing cost (Rundle-Thiele and Mackay, 2001). Boone
and Kurtz (2007) observe that generating a new customer costs 5 to 7 times as much as keeping a current one, so
firms pay steep prices when customers stray to other brands. Depending on the industry, a 10 percent reduction
in value-chain cost structure may yield 40 to 50 percent improvement in pre-tax profit (Eisingerich and Bell,
2007; Alrubaiee and Al-Nazer, 2010; Shaker and Basem, 2010) or as little as a 5 percent improvement in
110
2. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.22, 2013
customer retention can upsurge profitability to about 25 to 85 or 95 percent (in terms of NPV) (Reichheld and
Sasser, 1990). Ha et al. (2008) found strong correlation between loyalty and the mean number of different stores
visited per shopping time.
Consumers make brand choice as a result of many influences; habits, in response to merchandising cues, or with
explicit consideration of alternatives. The economic sense of such behaviour is guided by correctly predicted
marketing influences leading to it (Parker, 1979; Farley and Kuehn, 1965; Kuehn, 1956). Literally, consumers
prefer loyal behaviour to brands perceived to be satisfactory to purchasing untried ones (Kalu and Awa, 2008).
The surveys of acceptance rate of a new food product (see Arndt, 1967) and headache remedies (see
Cunningham, 1967) found that high-risk perceivers were more likely to be loyal to old brands than low-risk
perceivers. Even at the exploratory phase of purchase when consumers make trial behaviour, Shoemaker and
Shoaf (1975) opine that they tend to buy smaller quantities than usual in order to minimize risk associated with
disrupted behaviour. However, people love familiar stimuli; the unfamiliar is perceived discomforting but with
aggressive acquisition of more knowledge, the unfamiliar becomes familiar (Venkatesan, 1973). The behavioural
scientists and instrumental conditioning theorists suggest that consumers make two types of purchase- trial and
repeat (Schiffman and Kanuk, 2009); trial behaviour permits firsthand experience of novel brands and reinforces
repeat behaviour if perceived more satisfactory than familiar behaviours.
Modelling brand loyalty seems an uphill task perhaps because of the intricacies of human behaviour. With the
advent of management sciences and mathematical models as well as availability of software, the erstwhile
complication in transforming marketing problems into mathematical equations is now primordial as explicit
attempts are made to model and test various theories of brand loyalty and/or brand switching. Attempts to
understand the dynamics of consumer brand choice necessitated the investigation of frequency of occurrences of
various configurations in short purchase sequences. Kuehn (1962) surveyed 2 to 5 purchase sequences for
several products while Harary and Lipstein (1960) focused on consumer buying behaviour in terms of twopurchase sequences. These studies examined consumer brand choice as stochastic or probabilistic processes
(Farley and Kuehn, 1965). The two-purchase sequence analysis underlies the concept of first-order purchase to
purchase Markov brand shifting and the longer purchase sequence of Kuehn (1962) led to brand shifting learning
model. The basic concepts of Markov Chain as marshalled out by a Russian mathematician, Andrey
Andreyevich Markov, span predicting income distribution, immigration as a geographic structure, brand
switching and brand loyalty, occupational mobility, and long-term market share, especially in oligopolistic
environment (Frydman, 1984; Geweke et al., 1986; Simper and Spilerman, 1977).
This paper borrows transition matrix as a forecasting instrument for determining the market environment in the
future, and sets out to unveil the potential of Markov chains in sequencing family brand choice and in
determining intensive transitional probabilities for toothpaste. The research question is: given the last purchase
of toothpaste, what is the probability that the consumer purchases same brand (say close-up, X1) or switches to
another (say Aqua-fresh, X3) next time? The study fills gap in knowledge at the instance of two points; (1)
toothpaste seems a fascinating area of inquiry perhaps because of huge competition and brand extension as well
111
3. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.22, 2013
as its neglect by previous scholars; and (2) where similar studies (Cheng et al., 2012; Parker, 1979; Brown,
1953) exist, they seem somewhat alien to toothpaste and to developing economies such as Nigeria. For instance,
Cheng San and Yee (2012) focused on counterfeit clothing and footwear in Malaysia; Parker (1979) on
consumer grocery shopping in Dublin; and Brown (1953) on nine product classes in Chicago, one of which was
toothpaste. Although Brown took a qualitative approach and sets the pace for similar scholarly inquiries, his
findings and those of Cheng San and Yee (2012) and Parker (1979) can rarely be wholly extrapolated to
specifically solve problems in today’s changing Nigeria; hence, the need for this study.
Theoretical Development
a.
Brand Loyalty and Measurement
Defining, operationalizing, and measuring brand loyalty vary amongst scholars and practitioners. One of the
thorniest ordeals of marketing management is how to obtain objective and general measurement metric(s) of
brand loyalty (Kahn et al., 1986) and to correlate such metrics with consumer characteristics in order to segment
markets. Studies (Phau et al., 2009) and the theory of reasoned action (TRA) suggest that purchase intention is
the surrogate measure of actual purchase (Summers and Belleau, 2006); the best predictor of behaviour is
intention to perform (Fishbein and Ajzen, 1980; Young et al., 1998). Brand loyalty may mean high customer
lifetime value (Kalu and Awa, 2008); it measures the length of time a customer is predisposed to resist
competitive offers (Hasouneh and Ayed Alqeed, 2010) or a deeply held accord to repurchase preferred product
versions in future despite the potential influences of perhaps ugly experiences and marketing efforts (Yim et al.,
2008; Gommans et al., 2001). The loyal consumer does not only repurchase and cause me-too but also shuns
switching even when better offers exist elsewhere (Oliver, 1997; Oh and Fioritio, 2002). Scholars (de Rio-Lanza
et al., 2009; Michel et al., 2009) suggest that committed customers assume that ugly experiences may be settled
out overtime and turn them even more satisfied. Loyalty may mean a passive improvement of situation; a
measure of tolerance amidst voiced out inconvenient situations (Alrubaiee and Al-Nazer, 2010), a function of
satisfaction and switching barriers (Fornell, 1992), and a process whose end product affects perceived quality
and ultimately behavioural intentions (Bitner, 1990).
The theory of brand loyalty is premised on the fact that the longer a relationship lasts the more profitable it turns
and so, the core of relationship marketing is to win and keep customers by creating relational value chain (Peng
and Wang, 2006) in a manner that culminates more contacts and deeper accords, frequency marketing and
efficient operations, cannibalization/cross selling, making disruptive behaviour costly, and detailed probing into
customer complaints and competitive benchmarking (Hasouneh and Ayed Alqeed, 2010). Early scholarly
inquiries (Brown, 1953; Cunningham, 1956; Kuehn, 1962; Harary and Liptein, 1962) and recent ones (Dick and
Basu, 1994; Taylor et al., 2004; Gil et al., 2007) on customer brand loyalty principally emphasized behavioural
and attitudinal loyalty. Further studies (Schiffman and Kanuk, 2009; Asseal, 1992; Wilkie, 1994) emphasized
cognition and consistency in attitudinal loyalty and behaviour. Behaviour explains consumer loyalty in terms of
purchase habits or evidence of consistency; whereas, attitudinal sees loyalty from favourable predisposition to a
brand. Conceptually, Jacobs and Chestnut (1978) provided that brand loyalty is biased (i.e. non-random); a
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purchase behaviour expressed overtime by some decision making units with respect to one or more brands out of
a set of brands, and shaped by psychological (decision-making, evaluative) processes. Charnatony and
McDonald (1992) opined that behavioural measures define loyalty by sequence of purchases and/or by the
proportion of purchases; an indication that a satisfied consumer repeats behaviour in a relatively short time.
Lyong (1998) served operational definition when he viewed brand loyalty as a function of brands relative
frequency of purchase in both time independent and time dependent situations.
Brown’s (1953) study represents the earliest inquiry on behavioural measures of brand loyalty. The study
compared brands across product classes using The Chicago Tribune Consumer Purchase Panel Data and
attempted to model sequences of purchase patterns of 100 families. The findings led Brown to categorized
family sequences of brand choice into four- undivided and stable loyalty (AAAAAA), divided but stable loyalty
(ABABAB), unstable loyalty (AAABBB), and no loyalty (ABCDEF). Farley and Kuehn (1965) accused Brown
(1953) of having ambiguous classification that makes replication of the survey almost difficult. Cunningham
(1956) recognized Brown’s (1953) ordeals in defining pattern of behaviours and avoided them with a crosssectional share of purchase statistic a household would make of specific brand(s). He showed various aggregates
of this statistic for seven product classes with particular focus on each family’s loyalty to its most frequently
purchased brands. Though Cunningham’s (1956) work permitted stable comparison of behaviour over the
various product classes, it lent very little to the understanding of consumer behaviour dynamics and thus extends
and/or complemented Brown’s. Individuals who exhibit ABABAB sequences were categorized as breaking
purchase vicious between two brands in the semi-period of the study. Brown’s and Cunningham’s classifications
were supported by other scholars (e.g., Tucker, 1964; Finn, 1984). Finn proposed that a consumer is considered
brand loyal if he makes three successive purchases of same brands of a product (AAABBB); whereas Tucker
measured brand loyalty by the proportion of total product purchases a household devotes to a brand most
frequently purchased (AAAAABB).
Although, behavioural loyalty is applauded for focusing on customers’ value towards a brand (Schultz and
Bailey, 2000), the cognitive learning theorists assert that the classifications lack precision since they do not
distinguish between true brand faithful and the spurious loyalists, who repeat brands in response to cues/ in-store
stimuli and/or out-of-stock of favourites (Schiffman and Kanuk, 2009; Shapiro, 1977; Schoenbachler et al.,
2004); thus, there is a sufficient difference between brand loyalty and repeat buying behaviour. Loyalty is
measured by attitude rather by purchase consistency (Schiffman and Kanuk, 2009) though scholars (see Sharp et
al., 2002) note that attitudinal loyalty is not sufficiently relevant in determining brand loyalty in a short-run.
Therefore, Baloglu (2002) and Ha et al. (2008) emphasized the need to extend brand loyalty definition by
synchronizing attitudinal and behavioural influences. The operant conditioning and cognitive learning theorists
provide knowledge that complemented the existing literature to enlarge the understanding of the dynamics of
brand loyalty. The first views behaviour consistency as signal of loyalty based on the theories of Thorndike’s
law of effects, reinforcement, and stimulus response (S-R); and the second signifies that favourable
predisposition to a brand may not be reflected by just measuring continuous behaviour rather by following
Edward Tolman’s proposition of thinking about a problem and developing experiences that could serve to reduce
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perceived risk in similar situations in future (left hemisphere). Other theorists (Schiffman and Kanuk, 2009;
Hansen, 1981) suggest that brand loyalty is measured by the degree of involvement/hierarchy of effects; the high
involvement theorists emphasize on extensive information search leading to attitude change and attitude
formation, purchase behaviour, and ultimately brand loyalty; while low involvement involves brand awareness
leading to purchase behaviour, attitude change and attitude formation, and then brand habit.
b. Markovian Models
Markov chain is a dynamic quantitative model with Markov property; the probability of moving to state (X) at
time (n+1) depends only on current state (immediate past purchase behaviour) and not on the sequence of entire
previous states. Thus, it is a system where discrete random variables {X1, X2, X3, ......, Xn} form a stochastic
process of transition from one state to another in a chain-like manner. Given the chronological times {to,
t1,........,tn}, the family of random variables {X1, X2, X3, .......,Xn} is said to be a Markov process if it possesses
the following property.
P {Xtn =xn/Xtn-1 =xn-1,............,Xto =xo} = P{Xtn =xn/Xtn-1 =xn-1}, where n=0,1,... and the possible values
of Xi form finite set S referred to as state space of the chain.
Usually, a Markov chain is characterized by a set of states and transition probabilities (Trivedi and Sahner, 2009)
and defines finite set of times (i.e. a discrete-time Markov chain) though same terminology applies to situations
where time takes continuous values (Nummelin, 2004; Parthasarathy and Vinoth, 2010). However, Markov chain
Monte Carlo methodology covers cases of the two extremes (discrete algorithm steps and continuous state
space). The first-order purchase-to-purchase Markov process was the first application of a stochastic model to
describe brand switching. The model assumes that each purchase is affected in a stochastic sense only by
preceding purchase and is statistically independent of prior purchases (Taha, 2007; Loomba, 1978; Farley and
Kuehn, 1965; Law and Kelton, 2000; Damodaran and Gopal, 2009); knowledge of the immediate past behaviour
of a system helps to predict its future behaviour. The conditional probabilities
P {Xn+1 =Xn+1/Xt =xn}; where n= 0, 1, 2,........
of the next state (and in fact all future states) given its current state depends on the system’s current state and not
additionally on the state of the system’s previous steps. Given that the data on market share behaviour of
different brands of a product (say toothpaste, Xt) is known, Markov analysis provides insight into how a system
(e.g., high frequency, medium frequency, and low frequency purchasers) transits to the next or previous integer
or how consumers shift behaviour (rejection operator) from one brand (say close-up, X1) to another (purchase
operator) (say Aqua fresh, X3) in a trial. The assumption is that a system or a customer at a specified time can be
in one of the nth state; either buying close-up (X1), McCleans (X2), Aqua-fresh (X3) or some other brands (Xn)
in the choice set. The probability of moving from state i in nth time step is given as
(n)
Pij = P {Xn =j/X0 = i} and for single-step transition Pij = Pr {X1 = j/X0 = i}
Since systems change (transition) randomly often in response to managerial cues or something else to a point of
inflicting a change in loyalty (say from X1 to X2 or to X3), it is difficult to make exact prediction about their
future behaviour though their future statistical properties may be predicted. The probabilities of state-changes
termed transition probabilities (Pij) representing the probability of a customer transiting from brand i to brand j
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may change with time (dependent or non-stationary Markov chains) or remain constant overtime (timedependent or stationary Markov chains). Formally for all (n) and probability of transition independent of (n), the
equation below holds.
P {Xn+1 =x/X1 =y} = P {Xn = x/Xn-1 =y}, where n =0, 1, 2.....
The probability of transiting from states i to j in nth time steps
(n)
Pij = P {Xk +n = j/Xk = i} and Pij = Pr {Xk +n = j/Xk = i}
Research Plan
This study investigates and models brand loyal behaviour of toothpaste consumers using the Markov Chains.
Data were drawn purposefully from 785 students of universities of Abuja, Lagos, and Port Harcourt. These
universities are located in choice cities, they cover the six geo-political zones of Nigeria, and they assure federal
character in students’ enrolment. Questionnaire was developed and the questions therein bordered on five brands
of toothpaste {Close-up X1, McCleans X2, Colgate X3, Dabur X4, and Aqua-fresh X5}. The decision to arrive
at this five was informed by preliminary inquiries. To qualify for the study, subjects must at present use
toothpaste and by implication such households/persons expect replacement in due course either in favour of
current brand or another. The questionnaire was made up of three sections and of structural disguised and
structural undisguised questions. The first section dealt with demographic matters; and the second relates to the
brands that form the foundations of Markov matrix, where the subjects ranked brand currently used and the
likely preference(s) in the next purchase. The unwieldiness of the data precipitated casting them in transition
matrix. To generate meaning from the data, we
•
analyzed sets of summary statistics like the share of total purchases represented by favourite brand ;
•
categorized families in loyalty classes using purchase shares or similar measures; and
•
traced sources and destination- that is given the last purchase, what brand is likely to be purchased
next?
The third borders on marketing variables that informed the choice. Responses to this last section was measured
on 5 point scale from strongly agree (1) through strongly disagree (5).
Data and Measures
Brand loyalty measures consumption consistency in a product class. Given the absence of trade deals, out-ofstock of favourites, and in-store stimuli, this paper draws from Finn’s (1984) model (AAABBB); and Tucker’s
(1964) model (AAAAABB) to measure brand loyalty as the most frequently purchased brand(s) within a stated
sequence. In the 25 events within 5 states, each household/student was categorized in terms of the number of
times it uses a particular brand of toothpaste, and the responses were cast into transitional matrix to generate
meaning. Any household that makes consistent behaviour at least three times {AAAAA, AAAAB, AAABC}
was considered exhibiting brand loyalty. Further, measures of the independent variables that informed brand
loyalty were reported. Flavour was measured by herbal content, mint, menthol, fluoride, strawberry, and fresh;
functionality by tooth brightness, decay prevention, and protection of cavity. Brand awareness was measured by
brand’s diffusion via mass media and epidemic approach (word-of-mouth) (see Fourt and Woodlock, 1960;
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Mansfield, 1961; Bass, 1969) whereas brand availability measures ease of search and access. Brand name and
image measures affect transfer (see Wright, 1975) and deals measure sales-inducing incentives.
Validity and Reliability
The validity and reliability of the instruments were tested for accuracy of their measurement power. Though
validity was confirmed in previous studies (Dick and Basu, 1994; Kahn et al., 1986), we reconfirmed in twofold. First, the instruments were subjected to face validity involving the scrutiny of colleagues and other
informed persons in order to ensure that the statements raised adequately represent the property to measure.
Second, a pilot study to pre-test the scale measurement on a purposeful sample of 58 respondents in order correct
inconsistencies and/or ambiguities before the actual survey. For reliability and empiricism, Cronbach test was
conducted and the result slightly surpassed Nunnally’s (1978) benchmark of 0.7.
Switching Behaviour and Transition Probabilities
Probability models in general and transition probability matrices in particular have considerable appeal for
organizing sequences of panel data. See the household purchase sequence of toothpaste in a time period
summarized below. They were 5 states and 25 state spaces/events; thus,
S = { Close-up X1, McCleans X2, Colgate X3, Dabur X4, Aqua-fresh X5}.
Group A Households
{X1 X4 X4 X4 X3 X3 X3 X2 X2 X5 X3 X3}
Group B Households
{X1 X1 X4 x5 X3 X1 X2 X1 X1 X4 X4 X4}
Group C Households
{X2 X2 X4 X3 X4 X4 X1 X4 X1 X4 X4 X5}
Group D Households
{X2 X2 X2 X2 X5 X5 X5 X1 X4 X4 X4 X4}
Group E Households
{X1 X1 X1 X1 X1 X1 X1 X2 X2 X2 X3 X4}
From learning model theories, these states define the probability vectors representing the probability of a
consumer buying each brand on the next trial; whereas events or state spaces provide a single purchase act that
modifies consumer’s probability vector and alters the state the consumer finds himself. The following data cast
in a transition matrix summarizes that data shown above as fractions of purchases of a given brand going to all
brands (including itself) at the next stage. Each element in the array is divided by the sum of elements in the row
in which it occurs with a resulting matrix, which describes the likelihood of a consumer purchasing any given
brand in the next purchase act given information on the immediate preceding purchase.
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Table 1: Probability distribution
Brand Purchased at Trial t+1
X1
X3
0.083
Brand Purchased at trial t X1
X2
0.167
0.417
X4
0.250
X5
0.083
X2
0.417
0.083
0.083
0.333
0.083
X3
0.167
0.167
0.083
0.500
0.083
X4
0.333
0.083
0.083
0.250
0.250
X5
0.583
0.250
0.083
0.083
0
The matrix shows the states of the process; the existing and the next brand preference of the subjects. This array
of data in a probability form (each entry ≥ 0 and each row exhaustively sums to 1) offers insight into the process
of brand loyalty and brand switching behaviours. Observe that the probability of subsequent purchases increases
as a result of continual purchase of Say X1 or X2, and decreases when X3 or X4 is chosen. If the process (refer
to table 1) remains stable in a long-run and if the 785 households represent the entire buying population, brand
X1 (Close-up) with a probability of 0.583 is the most likely preferred when compared with other brands. The
next most preferred brand is X4 (Dabur) with a probability of 0.5; X1 and X4, each loses customers almost
equally to other brands and X1 is most likely to lose to X4 than to X2, X3, and X5. These insights have
managerial usefulness, especially in identifying competitive behaviour but this is only critical when there is a
long-run stability in transition matrix. Ehrenberg (1965) posits that instability turns up almost all empirical tests;
marketing activities, especially deals, disrupt the stability of transition probabilities. Therefore, there is a gap in
knowledge in using Markov chain to make long run forecasts amidst instability in transition probabilities.
Simple Markov process rarely provides adequate description that underpins brand switching behaviour.
Therefore, the variables that influence existing brand preferences are reported below. Variables such as quality in
terms of flavour and functionality (Xa), asking price (Xb), brand availability and awareness (Xc), brand name
and image (Xd), deals (Xe), and packaging (Xf) were surveyed to unveil how paramount each is in maintaining
the observed customer loyalty. SPSS (version 17) was used to analyze the data. A progressive enter method of
variables was used; for each variable, a separate regression coefficient describes its relationship with loyal
behaviour while Pearson’s Correlation Coefficient measured their interactive relationships.
The regression equation is thus
Yi = a + b(Xa) + b2(Xb) + b3(Xc) + b4(Xd)-----------------------+ei
Table 2: Summary of Regression Analysis
Model
R
0.78
R2
Adjusted R
0.608
0.512
SE
1.225
The study model summary in table (1) shows a value of R = 0.608, P<0.01; indicating that a large portion of
overall variance to explain brand loyalty. In other words, the control variables in the above equation explained
about 61 per cent variations of customer loyalty to toothpaste.
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Table 3: Pearson Correlation Coefficients of the Control Variables
Correlation Coefficients
Loyalty
Loyalty
Xa
Xb
Xc
Xd
Xe
Xf
1
Xa
0.35*
1
Xb
-0.23**
-0.12
1
Xc
0.32*
0.01
0.14
Xd
0.22*
0.03
0.10** 0.05
1
Xe
0.03*
-0.14
0.07
0.08
0.17
Xf
-0.12**
-0.06
-0. 04
0.20
-0.05 0.18** 1
1
1
Note: Correlation is significant at *0.05 and **0.01 levels (two-tailed test)
Discussion
This paper surveyed purchase sequences in five states (brands of toothpaste) with the probability of choosing one
state at a time depending only on immediate past purchase behaviour. The probability distribution shows that
close-up and dabur are the most likely preferred brand; thus, as long as no other brands are chosen, the
probability of subsequent purchases of close-up or dabur increases. However, on recognition that simple Markov
process lacks adequate explanation to such choice; brand availability and awareness, quality in terms of flavour
and functionality, packaging, asking price, brand name and image, and deals were investigated to provide insight
into such purchase behaviour. All these control variables differ in their relationships with customer loyalty either
at p<0.05 or at p<0.01. Quality in terms of flavour and functionality, brand availability and awareness, brand and
name image, and deals explained significant positive correlations with such loyal behaviour whereas packaging
and asking price explained weak correlations.
Table (2) shows that flavour and functionality (Xa) attracts significant positive correlation coefficient (0.35,
p<0.05) and the direction of such relationship explained the most significant weighted average impact (β =0.321)
(see also table 4) on the observed loyalty. Previous (Haley, 1968; Fiske, 1982) and recent (Puligadda and Ross,
2010; Datamonitor, 2007; Topping, 2007) studies lend support to this finding. Fiske (1982) inferred evaluation
of functionality by brand attribute beliefs and their relative importance as well as some overall attitude towards
the parent brand(s). While Puligadda and Ross (2010) revealed that increasing number of flavours increases
perceived variety, Haley’s (1968) study on segmenting toothpaste markets based on benefit sought, found that
children look for flavour and product appearance, teens and young married look for tooth brightness, large
families for decay prevention, and men for good price deals. Further support came from Topping (2007), who
found that children's flavour preferences are genetically influenced, with preferences for sweet flavours often
prevalent; and adult’s flavour preferences are predominantly guided by social and cultural norms. A Datamonitor
survey in the U.S. and Europe revealed that 80% of men and women agreed that their flavour preferences are
guided by three mega-trends- health and wellness, sensory indulgence, and homing/comfort. This explains why
herbal favour ranks first in most consumer decisions.
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Table 4: Regression Analysis
β
Control Variable
Correlation Coefficient
t-test
Xa
0.321
0.526
4.16
Xb
-0.286
-0.240
-3.10
Xc
0.301
0.489
3.91
Xd
0.280
0.312
3.64
Xe
0.212
-0.265
3.11
Xf
-0.171
-0.210
-2.25
Negative correlation coefficients occurred when asking price (-0.23, p<0.05) and packaging (-0.03, p<0.05)
entered the equation with resulting inverse weighted average impacts of β = -0.286 for asking price and β = 0.171 for packaging. The result for packaging contrasts the previous studies (e.g., Strecker et al., 1990; Yamoah,
2005), which reported that apart from a well-designed package differentiating and ensuring wholesomeness of its
contents, it influences consumer preference (through promotional messages) especially in a competitive scene.
For asking price, studies (Choi, 1991, Draganska and Jain, 2005) contradict our finding. The explanation to this
stems from the fact that Port Harcourt city is an oil rich zone where even the sellers understand that as long as
price differential is not too far-off for low involvement products and the product in question delivers the ideal
satisfaction, consumers rarely complain aggressively. When brand availability and awareness (Xc) and brand
name and image (Xd) entered the equation, positive correlation coefficients resulted; (0.32, p<0.05) for Xc and
(0.22, p<0.05) for Xd. A weighted average impact of β= 0.301 was made by Xc and β= 0.280 by Xd.
This finding is consistent with stimulus generalization of Professor Ivan Pavlov (see Schiffman and Kanuk,
2009; Kotler and Keller, 2009), cognitive consistency (see Heider, 1958; Osgood and Tannenbaum, 1955;
Festinger, 1957), affect transfer (see Wright, 1975), categorization theory (see Fiske, 1982), Thorndike’s law of
effects (see Thorndike, 1947), and technology cluster (Cook, 2009) since all suggest that brand equity expressed
in terms of strong reputations and psychological attributes have assurance of awareness, quality, affect,
dependability, performance, and service (Aaker and Keller, 1990). Firms maximize the synergy of parent brand’s
heightened awareness, availability, and good reputation/brand image to launch successful extensions (Randall,
2000) on the grounds that transfer of cognitive and affect processes permit instant communication of salient
image as well as higher product acceptance (Salciuviene et al., 2010; Ambler and Styles, 1997; Martin et al.,
2005; Kohli and Harich, 2005). Yamoah (2005) studied the availability factor of rice in Ghana and found that
brands that experience seasonal shortages suffer customer loyalty.
Finally, deals (Xe) attracted a positive correlation coefficient of 0.03, p<0.05 and a weighted average impact of
β= 0.202. This finding may be explained on the grounds that toothpaste is a low involvement product with many
versions; thus, deals add distinctive values, retain loyalty, and steer up trial behaviours which are rarely preceded
by aggressive search and evaluation efforts. Previous studies (e.g., Haley, 1968; Murphy and Sohi, 1995; Strang,
1976; Shapiro, 1977; Keller, 2001) support this finding. Haley’s (1968) study on toothpaste found that men look
for good price deals. Going by this stepwise approach, flavour and functionality is the most significant
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determinant of the observed customer loyalty, followed by brand availability and awareness, brand name and
image, and deals.
Limitations and further studies
Rarely would every product class find the finding(s) of this study wholly useful, after-all toothpaste is just one of
low involvement products. That our sample was drawn from users of frontline brands of toothpaste in the low
density area of Port Harcourt limits the power of generalization against those areas, other brands, and other
product classes not investigated bearing in mind that every locale, brand, and product class/category is, to a large
extent, idiosyncratic. Extended data and measures are required to build external validity; future scholars may
replicate the survey in other locales and product classes for cross learning and building of guiding laws. Further,
caution need be exercised in the measures used since they seem subjective and prone to common method bias
even though concrete steps were taken to minimize their effect on results. Finally, factors such as in-store
stimuli, store attendant’s advice, product’s country of origin, situational influences, who makes choice decisions,
organization’s size (for producers), and others were not measured and thus, scholars are challenged to take them
up.
Conclusions and Contributions
Marketing studies are thought discrete from time and place viewpoints, thus finite Markov chains apply. This
paper surveyed brand switching and brand loyalty of toothpaste users in the low density areas of Port Harcourt.
The data gathered were transformed into a Markov matrix and the switching behaviour amongst the five brands
was observed. Because the matrix was a systematic one, the paper concludes that subjects exhibit brand loyalty
(AAAAA; BBBBB), and Close-up and Dabur were the most preferred brands. Markov matrix shows strength in
predicting long-run brand loyalty but it rarely provides lenses to understand which variables are responsible for
such loyalty. Therefore, this paper steps further to unveil such lenses and further concluded that flavour and
functionality were the most significant determinants of this observed loyalty, followed by brand availability and
awareness, brand name and image, and deals.
The dearth of local studies that have specifically identified the most preferred brands and ‘’why’’ carves a
strength for this study. Further, though there is a general assumption that price sensitivity is a common
phenomenon amongst people of low income groups, this paper distinguishes itself by reporting that price does
not hold top-notch position in consumer decision-making especially when there is a ruling price range and the
product itself delivers its functional, psychological, and social promises to the audiences. Finally, familiarity
with the various brands of toothpaste makes packaging a mere container with little or no promotional values.
Managerial Implications
Amidst the existing stiff competition, the implication is to key strategic and tactical actions along the strengths of
the factors identified by the study in order to build competitive advantage that retains AAAAAA sequence of
purchase via clear grasp of consumers’ changing expectations. First, packaging must be made more aesthetic and
appealing to cause consumers to guess, and/or actually recognize, the salient selling points embedded in its
positioning and repositioning message contents. Second, price need be de-emphasized as a major decision
determinant in this product category, rather flavour (in terms of herbal content), brand availability and
awareness, brand name and image, and deals.
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