An evaluation of the role of marketing strategies in developing brand equity of a DNA forensic and relationship testing company

1. REGENT BUSINESS SCHOOL
An evaluation of the role of marketing strategies in developing brand equity of a DNA
forensic and relationship testing company.
NEVIN SIRALEN PILLAY
MBA
2013

2. An evaluation of the role of marketing strategies in developing brand equity of a
DNA forensic and relationship testing company.
by
NEVIN S PILLAY
Student No: MBA 210020 F
Submitted in partial fulfillment of the requirements for the degree:
MASTERS DEGREE IN BUSINESS ADMINISTRATION
(MBA)
at the
REGENT BUSINESS SCHOOL SOUTH AFRICA
Supervisor: SALESH PANDAY
2013

3. DECLARATION
I, Nevin Siralen Pillay, do hereby declare that this dissertation is the result of my
investigation and research and that this has not been submitted in part or full for any
other degree to any other University.
……………………………………
28 May 2013
………………….
Nevin Siralen Pillay
Date
ii

4. ACKNOWLEDGEMENTS
•
Firstly, I wish to acknowledge my inspirational parents, Krish Pillay and
Kogie Pillay for their enduring support, unwavering understanding and
unspoken encouragement, this during my entire natural existence. “I love the
both of you”
•
Secondly, I want to thank my siblings, Kesigan, Preveshan and Rushanta.
Your understanding and thoughtfulness during my studies, has not gone
unnoticed.
•
I would also like to express my sincere gratitude to my supervisor, Salesh
Panday, whose guidance and support have been essential in completing this
dissertation.
•
A deserved mention to Leticia Augustine for her assistance with administering
of the questionnaire and the hours dedicated to formatting this study.
•
Lastly I wish to acknowledge 3 genuine gentleman, Wayne Barr, Kumaren
Chetty and Marc van Heerden. Without your continuous support and
encouragement completing this degree would have been unachievable.
iii

5. ABSTRACT
Brand equity is important in today’s marketplace in the building, maintaining and
using a brand to obtain strategic advantage. Brand equity refers to the basic idea that a
product's value is enhanced when it is associated or identified over time with a set of
unique facets that define the brand. This study aims to evaluate the role of marketing
strategies in developing brand equity for DNA Test, the business referenced in this
study.
DNATest is a South African company specializing in forensic and relationship DNA
testing. The predicament that DNATest finds itself in is that the company has been the
first marketers of direct-to-consumer DNA testing in South Africa. Leading this
change has been challenging. Primarily because of the negative perceptions regarding
DNA testing. As such, bringing consumers attention to the brand and not only its
product is consequential. Hence building brand equity is one of the fundamental
elements for a businesses success and growth. Building brand equity will become a
key asset to the company. The significance is that by enhancing its brand equity the
company is more likely to increase its profits.
The study was based on the quantitative approach.
A structured closed ended
questionnaire was designed using the Likert scale of rating. In this study all
individuals included in the sample size are past clients of the company, DNA Test.
These individuals have used the services of DNATest. This qualified them to be part
of this study in terms of the inclusion criteria of this study.
The research recommends to DNA Test management that an understanding that the
brand is an essential asset for the company and that long term brand equity is vital.
Further, the research recommends that in building brand equity a brand identity
strategy with a convergent plan of activities to impact and influence the consumer is
necessary.
iv

6. DEDICATION
To my parents, Krish and Kogie Pillay. Thank you for being the parents you are.
v

7.
Table of Contents
Contents
Page Number
Title Page
i
Declaration
ii
Acknowledgements
iii
Abstract
iv
Dedication
v
Table of Contents
vi
List of Figures
xi
List of Tables
xii
CHAPTER ONE: INTRODUCTION
1.1
Introduction
1
1.2
Background to the Problem
2
1.3
Problem Statement
3
1.4
Aim of the Study
4
1.5
Objectives of the Study
4
1.6
Research Questions
5
1.7
Significance of the Study
5
1.8
Format of the Study
5
1.9
Conclusion
6
vi

8. CHAPTER TWO: LITERATURE REVIEW
2.1
Introduction
7
2.2
Brand Equity
7
2.3
Brand Loyalty
10
2.4
Perceived Quality
13
2.5
Brand Awareness
16
2.6
Brand Associations
18
2.7
Marketing Mix Elements
19
2.7.1
Price
20
2.7.2
Online Presence
21
2.7.3
Distribution Intensity
21
2.7.4
Advertising Spend
22
2.7.5
Price Promotion
22
2.8
Customer Based Brand Equity
23
2.9
Conclusion
25
CHAPTER THREE: RESEACH METHODOLOGY
3.1
Introduction
26
3.2
Rationale for the Methodology
26
3.3
Research Design
27
3.4
Research Strategy
27
3.4.1
Positivist Research Strategy
28
3.5
Aim of the Study
28
vii

9. 3.6
Research Objectives
29
3.7
Target population
29
3.7.1
Sampling and Sample Size
30
3.7.2
Sampling Method
30
3.8
Research Method
30
3.9
Questionnaire Construction
32
3.10
Pilot Study
33
3.11
Administration of Questionnaire
33
3.12
Response Percentage
34
3.13
Data Analysis
34
3.14
Validity and Reliability
35
3.14.1
Validity
35
3.14.2
Reliability
36
3.15
Limitations of the Research
36
3.16
Elimination of Bias
37
3.17
Ethical Considerations
37
3.18
Conclusion
38
CHAPTER FOUR: DATA ANALYSIS, INTRPRETATION
AND FINDINGS
4.1
Introduction
39
4.2
Response Rate
39
4.3
Analysis and Interpretation of Data from Respondents
39
viii

10. 4.4
Section A: The Sample Demographic
40
4.4.1
Gender
40
4.4.2
Age
41
4.4.3
Marital Status
42
4.5
The Research Instrument
42
4.5.1
Reliability
43
4.5.2
Factor Analysis
43
4.6
Section B : Brand Interaction Factors
45
4.7
Research Correlations
56
4.7.1
Place
56
4.7.2
Price
60
4.7.3
Promotion
63
4.7.4
Product
66
4.7.5
Customer Response
69
4.8
Conclusion
71
CHAPTER FIVE: CONCLUSION AND
RECOMMENDATIONS
5.1
Introduction
72
5.2
The Objectives of the Study
72
5.3
Findings from the Study
72
5.3.1
Findings from the Literature Review
72
5.3.2
Findings from the Primary Research
75
ix

11. 5.4
Research Limitations
77
5.5
Recommendations and Conclusions
78
BIBLIOGRAPHY
80
APPENDIX A
86
APPENDIX B
87
APPENDIX D
89
x

12. LIST OF FIGURES
Page Number
Figure 2.1
Brand Equity Model
9
Figure 2.2
Loyalty Pyramid
12
Figure 2.3
The Value of Perceived Quality
15
Figure 2.4
Brand Association
19
Figure 2.5
The Marketing Mix
20
Figure 3.1
Stages in the Survey Process
31
Figure 4.1
Gender of Respondents
40
Figure 4.2
Age of the Respondents
41
Figure 4.3
Marital Status of Respondents
42
xi

13. LIST OF TABLES
Page Number
Table 3.1
Questionnaire Response Percentage
34
Table 4.1
Your Gender
40
Table 4.2
Your Age
41
Table 4.3
Your Marital Status
42
Table 4.4
Reliability Statistics
43
Table 4.5
Tests of Normality
44
Table 4.6
The price of DNA Test service or product is high.
45
Table 4.7
The price of DNA Test service or product is value for money.
46
Table 4.8
The price of DNA Test service or product is low.
46
Table 4.9
DNA Test sells a product or service of high quality.
47
Table 4.10
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands
47
Table 4.11
The pharmacies where I can buy DNA Test products or services sell well known brands
48
Table 4.12
DNA Test brand is advertised appropriately.
48
Table 4.13
The adverts for DNA Test products and services seem expensive.
49
Table 4.14
I consider myself to be loyal to the DNA Test brand.
49
Table 4.15
DNA Test product or service would be my first choice should I require another DNA
test
50
Table 4.16
I will use DNA Test product or service again.
50
Table 4.17
I can recognise the DNA Test brand among competitive brands.
51
Table 4.18
I am aware of the DNA Test brand.
51
Table 4.19
DNA Test provides excellent quality.
52
Table 4.20
DNA Test products and services are trustworthy and reliable.
52
xii

14. Table 4.21
You particularly like DNA Test as a brand.
53
Table 4.22
DNA Test has a good reputation.
53
Table 4.23
DNA Test is a brand leader.
54
Table 4.24
DNA Test products and services are efficient.
54
Table 4.25
Are you willing to pay a higher price for a DNA Test product or services as compared
to other competitive offerings
55
Table 4.26
I will recommend DNA Test service or product to others
55
Table 4.27
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands / The price of DNA Test service or product is high.
57
57
Table 4.28
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands / DNA Test product or service would be my first choice
should I require another DNA test
58
Table 4.29
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands / The pharmacies where I can buy DNA Test products or
services sell well known brands
Table 4.30
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands / I consider myself to be loyal to the DNA Test brand.
59
Table 4.31
The pharmacies or website where I can buy DNA Test products or services sell a wide
range of well known brands / I am aware of the DNA Test brand.
60
61
Table 4.32
The price of DNA Test service or product is value for money / The pharmacies or
website where I can buy DNA Test products or services sell a wide range of well known
brands
Table 4.33
The price of DNA Test service or product is value for money / DNA Test product or
service would be my first choice should I require another DNA test
61
Table 4.34
The price of DNA Test service or product is value for money / DNA Test provides
excellent quality.
62
Table 4.35
The price of DNA Test service or product is value for money / I will recommend DNA
Test service and products to others
63
Table 4.36
DNA Test brand is advertised appropriately / The pharmacies or website where I can
buy DNA Test products or services sell a wide range of well known brands
64
Table 4.37
DNA Test brand is advertised appropriately / DNA Test product or service would be my
first choice should I require another DNA test
64
Table 4.38
DNA Test brand is advertised appropriately / DNA Test provides excellent quality.
65
Table 4.39
DNA Test brand is advertised appropriately / You particularly like the DNA Test brand
66
xiii

15. Table 4.40
DNA Test product and service are efficient / I consider myself to be loyal to the DNA
Test brand.
67
Table 4.41
DNA Test product and service are efficient/ DNA Test product or service would be my
first choice should I require another DNA test
67
Table 4.42
DNA Test product and service are efficient/ You particularly like the DNA Test brand
68
Table 4.43
I will use DNA Test product or service again / DNA Test sells a product or service of
high quality
69
Table 4.44
I will use DNA Test product or service again / I consider myself to be loyal to the DNA
Test brand
69
Table 4.45
I will use DNA Test product or service again / I am aware of the DNA Test brand
70
xiv

16. CHAPTER 1
INTRODUCTION
1.1
Introduction
The term brand equity refers to the monetary value of brand names. A brand with a
strong brand equity is a valuable asset. (Lamb, Hair, McDaniel, Boschoff and
Tereblanche, 2008:216). Brand management is a topic of significant interest for both
academia and industry. Building powerful brands is seen as one of the key
responsibilities of brand managers, for the success of any organisation. (Kim, 2004)
Lamb et al. (2008:216) refer to brand equity as the monetary value of brand names.
They further imply that a brand that has high awareness, perceived quality and brand
loyalty among customers has high brand equity. Hence brand equity is a multidimensional concept. According to Aaker (1991:39) brand equity is a set of brand
assets and liabilities linked to a brand, its name and symbol, which adds to or
subtracts from the value that customers attach to a businesses goods or services.
Keller (1993:10) contends that customer-based brand equity arises from businesses
marketing efforts. This is derived from the customers memory towards the brand
which consists of the brand image and brand awareness. Farquahar (1990:8-10)
asserts that brand equity follows from a positive analysis of, or attitude toward the
branded products. Other familiar aspects of brand equity include perceived quality,
brand loyalty, brand awareness and brand associations. Store image, advertising spend
and price deals also affect brand awareness and brand associations positively.
However brands differ in the amount of power and value they have in the market
place. A formidable brand has high brand equity. Brand equity is the positive
distinctive effect that comes from understanding the effect that a brand name has on
customers response to the brands products or service. A further measure of brand
equity is the extent to which customers are willing to pay more for the brand. Kotler
and Armstrong (2004 : 292) reveal that a study found that 72 percent of customers
would pay a 20 percent premium for their brand of choice; 40 percent of customers
went as far as a 50 percent premium.
1

17. Brand valuation is the task of estimating the total financial value of a brand. However
measuring such value, according to Kotler et al. (2004:292), is difficult. Pierce and
Almquist (2002:8-9) state, “Brand equity has emerged over the past few years as a
key strategic asset, CEO’s in many industries now see their brands as a source of
control and a way to build stronger relationships with customers.” Powerful brand
equity adds to a company’s competitive advantage. The brand equity study aims to
value a brand in financial terms. The brand value is used as a marketing matrix, but
according to Du Plessis, Jooste and Strydom (2005:462), brand value has also been
produced for a range of uses including capital gains tax, litigation and business
mergers and acquisitions.
Brand equity has a positive relationship with brand loyalty. According to Aaker
(1991), brand equity is a complex concept which is made up of brand loyalty, brand
awareness, perceived quality, brand associations and other exclusive assets. The
multidimensional consumer brand based equity scale developed by Yoo and Donatha
(2001) suggests that brand equity can be measured by 4 dimensions;
•
brand loyalty
•
brand awareness
•
perceived quality, and
•
brand associations
An organizations marketing strategy is a comprehensive plan which combines all of
its marketing goals. A comprehensive marketing strategy draws from market research
and focuses on the right product mix in order to achieve the maximum profit potential
and sustain the business. The marketing strategy is also the foundation of the
businesses marketing plan.
1.2
Background to the Problem
DNATest is a South African company specializing in forensic and relationship DNA
testing. The predicament that DNATest finds itself in is that the company has been the
first marketers of direct-to-consumer DNA testing in South Africa. Leading this
2

18. change has been challenging. Primarily because of the negative perceptions regarding
DNA testing. As such, bringing consumers attention to the brand and not only its
product is consequential. Hence building brand equity is one of the fundamental
elements for a businesses success and growth. Building brand equity will become a
key asset to the company. The significance is that by enhancing its brand equity the
company is more likely to increase its profits.
The DNA forensic industry is one of the most vibrant sectors of the modern economy
due to a unique convergence of social demands and technological change. The
capacity of DNA testing has grown, costs have dropped and as such forensic DNA
testing is now more easily accessible by the public.
Technological advancements such as higher throughput DNA sequencing machines
for DNA identification has reduced per unit cost of testing thus increasing the
affordability of DNA testing and improving testing market applications. Other
advancements include portable DNA profiling techniques used at crime scenes.
According to Pharmaceutical Market Research (2011), the number of crime
laboratories in the U.S. performing forensic analyses grew from 300 in 1999 to an
estimated 475, in 2010. These laboratories analyze evidence from millions of cases
annually and even though the market for forensic analyses and related products is
smaller than the market for biotechnology and pharmaceutical products, crime
laboratory DNA analyses serve a critical function and the DNA testing market sector
will expand significantly in the future.
Given the importance that brand equity has for companies conducting business in
today’s environment, it seems acceptable to research how the marketing strategies
used by DNATest influences and develops its brand equity.
1.3
Problem Statement
The study intends to establish the role and importance of marketing strategies in
developing brand equity for a DNA relationship and forensic testing company. Brand
loyalty is customers preference for the products and services of the organisation that
currently exists in the market. Jones and George (2008:197) reason, that if established
3

19. organisations benefit from significant brand loyalty, then a new entrant will face an up
hill battle to obtain a share of the market. New entrants must carry immense
advertising costs to build customer consciousness of the goods and services their
businesses provide. Hence for an existing business’s competitiveness establishing
brand equity is key. The businesses brand can add weighty value when it is well
recognised. Further this has a positive relationship in the mind of the consumers. The
purpose of this study is therefore to evaluate ways on how to establish brand equity
through selected marketing strategies and to examine the relationship between brand
equity, the marketing mix elements and consumer response, so that recommendations
can be made to management on its importance and thereby help the company gain an
advantage over its competitors.
1.4
Aim of the Study
The aim of the study is to evaluate the role of marketing strategies in developing
brand equity for a DNA relationship and forensic testing company with specific
reference to a Durban based company: DNATest.
1.5
Objectives of the Study
•
Examine the relationship between the marketing strategies and the perceived
quality of the service, consumer response, brand association, brand awareness
and brand loyalty.
•
Identify the important factors among the marketing mix elements on consumer
response
•
Identify the important factors among the brand equity factors on customer
response.
4

20. 1.6
Research Questions
•
What is the relationship between the marketing strategies and quality of the
service, consumer response, brand association, brand awareness and brand
loyalty?
•
What is the relationship between perceived quality, brand association, brand
awareness and brand loyalty with consumer response?
•
What are the important factors among the brand equity factors on customer
response?
1.7
Significance of the Study
The study is significant in that it will provide valuable theoretical information to
DNATest management. In addition, this study will make recommendations to the
management at DNATest, and highlights possible ways of building and maintaining
brand equity in order to remain competitive within the pharmaceutical industry. The
study will also provide insight to illustrate a scientific contribution to an improved
understanding of the marketing mix elements on brand equity and consumer response.
1.8
Format of the Study
This dissertation consists of five chapters structured as follows:
Chapter 1: Introduction
This chapter will introduce the topic, provide the introduction and background
problem to the study. The aim, objectives, research questions and significance of the
study will also be discussed in this chapter.
Chapter 2: Literature Review
The literature review is essentially an analytical and intensive analysis of previously
conducted research into the study. The aim of the literature review is to analyze the
theoretical and methodological contributions on the study as well as review the
current knowledge and important findings.
5

21. Chapter 3: Research Methodology
The research design and methodology will be outlined within this chapter, including
sampling techniques, methods of data collection, research instrument, pilot study,
administration of the questionnaire, data analysis, reliability and validity.
Chapter 4: Statement of Results, Discussion and Interpretation of Findings
In this chapter, the focus will be on the data analysis, interpretation and evaluation of
the findings of the study. Simple statistical methods will be used to calculate the
results which are depicted graphically.
Chapter 5: Conclusions and Recommendations
This chapter presents the results of the statistical data analysis. In this chapter, the
study will present the research findings, summarizes the conclusions and provides
some suggestions to the business on which marketing strategies provide value in
enhancing the brand equity of DNATest.
1.9
Conclusion
Branding as a concept has been around for many years. Brands help identify as well
as differentiate the goods and services of one organization from those of another.
Brands aid in simplifying the shopping process for customers as well as aid in the
processing of information about a product or service whilst giving the customer
confidence about their purchasing decision. Brands have also become important to
managers and they now aware that brands are an important company asset. The need
for the creation of brand equity is the focus of brand managers.
This chapter briefly discussed the background of brand strategies and brand equity,
and stated the research problem. It also outlined the research aim, objectives,
questions and format of the study. The next chapter reviews literature which provides
a comprehensive summary of the various literature sources and presents a theoretical
framework for the research.
6

22. CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The literature review is essentially an analytical and intensive analysis of previously
conducted research into the study (Dawidowitz 2010:6). The aim of the literature
review is to analyze the theoretical and methodological contributions on the study as
well as to review current knowledge and important findings relating to the study.
The literature review begins this study by applying an academic approach to studying
the theories of professionals and academics of marketing in order to credibly analyze
the theories and associate these theories to the research objective, the literature review
is divided into three parts. The chapter recognizes the three parts as being brand
equity, marketing mix elements and consumer based brand equity.
2.2.
Brand Equity
Lamb et al. (2008:216) refer to brand equity as the monetary value of brand names.
Lamb et al. (2008:216) further imply that a brand that enjoys high awareness,
perceived quality and brand loyalty among its customers will have a high brand
equity. Hence brand equity is a multi-dimensional concept. According to Elliot and
Percy (2007:82) understanding brand equity must be seen from the consumers point
of view, as it is ultimately the consumers view that will affect the brand. Thus brand
equity is a function of associations that are built and nurtured in customers mind.
Keller (2003:17) defines brand equity as the value of the brand in the market place.
This supports Aaker (1991:39) who defined brand equity as a set of brand assets and
liabilities linked to a brand, its name and symbols, which adds or subtracts from the
value that customers attach to the businesses goods or services. Keller (2003:60), in
contrast defines brand equity from a cognitive psychological point of view. Customerbased brand equity arises from a business’s marketing efforts. This is derived from
the customers memory towards the brand which consists of the brand image and
brand awareness (Keller 2003:59). Other familiar aspects of brand equity include
perceived quality, brand loyalty, brand awareness and brand associations. Store
7

23. image, advertising spend and price deals also affect brand awareness and brand
associations positively.
However brands differ in the amount of power and value that they have in the market
place. A formidable brand has higher brand equity. Brand equity is the positive
distinctive effect that the brand name has on customers response to the brands
products or service. A further measure of brand equity is the extent to which
customers are willing to pay more for the brand. Kotler and Armstrong (2004 : 292)
reveal that a study found that 72 percent of customers would pay a 20 percent
premium for their brand of choice; 40 percent of customers went as far as a 50 percent
premium.
Keller (2012) developed a brand equity model. The concept behind the brand equity
model attests to the fact that in order to build a strong brand businesses must shape
how customers think and feel about the product. Keller (2012) draws the conclusion
that businesses have to build the right type of experience around their brand, so that
customers have specific, positive thoughts, feelings, beliefs, opinions and perceptions
about the brand. Keller (2012) affirms, that when businesses have a strong brand,
customers will buy more of the businesses products, customers will recommend the
businesses products, customers will be more loyal to the businesses products and
businesses are less likely to lose customers to competitors. Keller’s strategic model
illustrates the four steps that businesses need to follow in order to build a strong brand
equity.
8

24. Figure 2.1. Brand Equity Model
Resonance
4. Relationships – what about you
and me?
Judgments and feelings
3. Response – what about you?
Performance and imagery
2. Meaning – what are you?
Salience
1. Identity – who are you?
Adapted from Keller, K., Strategic Brand Management 4edn. (New York: Pearson
2012)
Keller (2012:76) states that the four steps of the pyramid represent four fundamental
questions that customers ask, often subconsciously, about a business’s brand. Keller
(2012:76) further argues that each of these four steps must be in place in order for a
business to develop a successful brand.
A brand with powerful brand equity has a valuable asset. Brand valuation is the task
of estimating the total financial value of a brand. However measuring such value
according to Kotler et al. (2004:292) is difficult. Pierce and Almquist (2002:8-9) state,
“Brand equity has emerged over the past few years as a key strategic asset, CEO’s in
many industries now see their brands as a source of control and a way to build
stronger relationships with customers.” Powerful brand equity adds to a company’s
competitive advantage. The brand equity study aims to value a brand in financial
terms. The brand value is used as a marketing matrix, but according to Du Plessis,
Jooste and Strydom (2005:462), brand value has also been produced for a range of
uses including capital gains tax, litigation and business mergers and acquisitions.
9

25. 2.3.
Brand Loyalty
The concept of brand loyalty is defined by many different approaches, that range from
preference, to repeat purchase and to varying degrees of commitment. Immensely
satisfied customers have numerous benefits for an organization. One of the key
benefits, is that satisfied customers are less price sensitive. Although the relationship
between customer satisfaction and loyalty does vary across competitive situations and
industries, loyal customers remain loyal to a product for an extended period of time
and furthermore, talk favorably to others about the company and its products (Kotler
et al. 2004 : 19). Hoyer (2012:251) states that brand loyalty occurs when consumers
make a conscious evaluation that a brand or service satisfies their needs to a greater
extent than brands do and make a decision to buy the same brand repeatedly for that
reason.
Datta (2003:138) advocates that brand loyalty is a fundamental concept in strategic
marketing. Companies set up marketing strategies to raise brand loyalty so as to retain
a strong market share, whilst gaining higher profits. Brand loyalty leads to additional
marketing advantages such as word of mouth referrals as well as better competitive
resistance. Consumers are increasingly being flooded with competitive claims. This
makes the consumer decision making process more difficult. It can also develop into
an expensive exercise for a company to maintain brand loyalty amongst existing
customers. Therefore it has become imperative for marketers to recognise the factors
that persuade a consumer to remain loyal to a brand. Hoyer (2012:215) expands these
understandings and further defines brand loyalty as essentially a result from very
positive reinforcement, which is related to choice tactic. In that brand loyalty develops
when a consumer becomes skillful in using a particular product or service, such as a
specific brand of smart phone. Hoyer (2012:215) asserts that when faced with the
leaning curve needed to switch to a different brand of smart phone, the consumer will
tend to be brand loyal because of a cognitive lock in.
This is agreement with the
findings of Pritchard and Howard (1997:4) who expand these understandings and
further define brand loyalty as a network where the consumers root tendency and
resistance to change, is maximized by the extent to which consumers are motivated to
seek information. This cognitive decision by consumers for their preference allows
consumers to freely initiate choices that are meaningful and important. Both Verma
10

26. (2006:222) and Kotler and Pfoertsch (2010:311) acknowledge that definition of brand
loyalty defined by Jacoby and Kyner in 1973 is still valid today. Jacoby and Kyner
(1973:6) describe brand loyalty as “The biased (i.e. non-random), behavioral response
(i.e. purchase), expressed over time by some decision-making unit, with respect to one
or more alternative brands out of a set of such brands, and is a function of
psychological (decision-making, evaluative) processes.” In 1997 Pritchard and
Howard expanded the definition to other extent of loyalty namely, undivided loyalty,
divided loyalty, unstable loyalty and no loyalty. Brand commitment decreases
uncertainty and saves a customer the cost of seeking brand new relational exchanges
with other competing brands.
Boote (2003:142), findings are affirm those of Fournier (1998), who observed that
interpersonal relationships with brands are stronger with women than with men.
Fournier (1998) developed this theory by using phenomenological interviewing
techniques with 3 groups of women in traditional, transitional and postmodern life
stages. Fournier (1998) observed that these life stages had a substantial bearing on
brand loyalty. The traditionalist female being the most loyal, with the post modernist
female being the least loyal. Fournier (1998) deduced that consumers are occupied
with a number of brands that add value to their lives, some of which are psychosocial,
some of which are functional. Boote (2003:142), affirms that while some of these
decisions are rational, all are ego based and therefore significant to those who engage
them. Likewise, Chaudhuri and Holbrook (2002:36) declare that brand loyalty is
greatest under conditions of high-perceived differences (Or high involvement) among
brands in a product class. This is simplified by greater differences between competing
brands leading to increased and greater risks in making brand choices, thereby
strengthening brand loyalty to a particular brand.
The loyalty pyramid presented by Aaker (1991) is still used today. Aaker (1991)
presented the loyalty pyramid, as depicted in figure 1.1. The loyalty pyramid depicts
several levels of loyalty. Each Level represents a different marketing challenge and a
different type of asset to manage and exploit.
11

27. Figure 2.2. The Loyalty Pyramid
Committed Buyer
Likes the brand – considers it
a friend
Satisfied Buyer with Switching
costs
Satisfied / Habitual buyer - No
reason to change
Switchers / Price sensitive
indifferent – No brand loyalty
Source: Aaker, D., Managing Brand Equity (New York: The Free Press 1991), 40
•
At the highest loyalty level are the committed consumers. These consumers
take delight in being consumers of the brand. The brand is essential to them
either as an expression of who they are or as a functional necessity. These
consumers admiration, belief and trust in the brand is such that they will
advocate the continued use of the brand. The importance of the committed
consumer is not in his/her direct business but rather the impact that they have
on the market and other potential users.
• At the fourth loyalty level sit the consumers who actually enjoy the brand.
These consumers fondness for the brand may be based on an association such
as an experience, perceived high quality or a symbol. There exists an
emotional attachment at this loyalty level. It is difficult to understand why
consumers at this level like the brand other than the fact that there may exist a
long term relationship with the brand. Consumers at this loyalty level maybe
further classified as friends of the brand.
• At the third loyalty level sits switching-cost loyal consumers.
These are
consumers who are content with the brand. These consumers may have
switching tendencies, which may arise from costs, time or performance that is
12

28. associated with another brand. For these consumers there is the risk that
another brand may not function as well in a particular context. In order to
draw these consumers, competitors need to compensate for the consumers
need to switch.
• At the second loyalty level sit the habitual consumers. These consumers are not
discontent with the brand. With these consumers there is no dissatisfaction that
is sufficient enough to encourage change, especially if the change involves
effort. Consumers at this loyalty level can be vulnerable to switching to
competitors who can advance a noticeable advantage for switching. Generally
these consumers will be difficult to switch as there exists no reason for the
consumer to be on the look out for alternatives.
• At the bottom loyalty level is the switcher or price-buyer. This is the non-loyal
consumer who is absolutely indifferent to the brand. Each brand is seemingly
adequate and the brand name plays little role in the purchasing decision.
Whatever is on sale or provides convenience, is preferred (Aaker: 1991).
Datta (2003) established that the performance of the brand is a vital factor which
influences the consumers loyalty to the brand. When the consumer has a positive
experience with the brand, the consumer will have an inclination to use the brand
again. Datta’s (2003) research revealed that the major factors that influence brand
loyalty are the product performance, the satisfaction of customers, price, habit, the
history of brand usage and brand names. Datta (2003:139) describes involvement as
“A general term that can be defined as the degree of personal relevance of an object or
product or service to a customer.” Higher involvement may lead to an extensive
information search and if the consumer is satisfied with the product, it might lead to
repeat purchases and ultimately, brand loyalty. Low involvement may lead to brand
loyalty through habitual purchasing.
2.4. Perceived Quality
Perceived quality is an intangible, overall feeling about a brand. However, it usually
will be based on underlying elements which include characteristics of the products to
which the brand is attached, such as performance and reliability. To understand
perceived quality, the identification and measurement of the underlying dimensions
13

29. will be useful, but the perceived quality itself is a summary, global construct.
Perceived quality is based on the judgment made by consumers. This judgment is
based on the product or services overall excellence or superiority, (Tellis, Yin and
Niraj: 2009:135) The consumers subjective judgment of quality is influenced by the
consumers unique needs, product experiences and how they consume the product.
High perceived quality indicates that, as a result of the long term experience related to
the brand, consumers are conscious of the superiority and the differentiation of the
brand.
Perceived quality is valuable (Davis, Aquilano and Chase 2003:76). Davis et al.
(2003) further state that the perceived quality of a brand provides a central reason to
buy. Perceived quality influences which brands are included and excluded from the
consideration set and which brand is to be chosen. A fundamental positioning
characteristic of a brand is its location within the dimension of perceived quality. A
perceived quality advantage gives the option of charging a premium price. The price
premium will enhance profits and will provide resources to reinvest in the brand.
Perceived quality can also be of benefit to partners such as retailers, distributors and
other channel members. Touminen (1999:83) agrees with Aaker (1991:85-86) that
channel members are forced to carry brands that have a high perceived value.
Additionally, perceived quality can be exploited by introducing brand extensions.
This involves using the brand name to enter new product categories. A powerful
brand with respect to perceived quality will be able to find higher success
probabilities and expand further than a weak brand.
David Garvin of the Harvard Business School developed a system of thinking about
the quality of products. Garvin’s system remains widely accepted. Garvin (1985:42)
identified the following general dimensions of product quality;
• Style and design: appearance or feel of quality.
• Serviceability: the ease of servicing the product.
• Durability: the expected economic life of the product.
• Reliability: consistency of performance of the product over time and the brand
from purchase to purchase.
• Conformance quality: the degree to which the product meets specifications and
14

30. is absent of defects.
• Features: consequential elements of the product that compliment its
characteristics.
• Performance: the degree to which the characteristics of the product functions.
Aaker (1991:86) pointed out the importance of perceived quality;
Figure 2.3. The Value of Perceived Quality
Perceived Quality
Reason – to- buy
Differentiation / Position
A price premium
Channel member interest
Brand extension
Source: Aaker, David A. (1991), Managing Brand Equality. New York: Free Press.
86
• Reason-to-buy – The perceived quality of a brand gives sufficient reason-tobuy. This includes influencing which brands are to be considered and which
brands are not considered. The customer usually lacks the drive to gain and
sort through information which might lead to an objective determination of
quality or the information required may not be available. Ultimately perceived
quality is linked to the purchasing decision. Hence the task of advertising and
promotion is more likely to be effective if perceived quality is high.
• Differentiation / Position – A key positioning characteristic of a brand is it’s
position on perceived quality. With some products the different brands are not
distinguishable to most consumers. Differentiation can play a vital role in
separating one brand from another. Perceived quality can provide an important
basis for differentiation. Hence differentiation can be a key competitive
15

31. advantage.
• Price Premium – Perceived quality provides the advantage of charging a price
premium. The price premium can increase profits, and provide resources with
which to reinvest in the brand. These resources can be used in brand-building
activities such as research and development, enhancing brand awareness and
brand associations, and to improvements in the product. A price premium will
therefore reinforce the perceived quality. The adage "you get what you pay
for" is central in the case of goods and services for which objective
information is not immediately available. A loyal customer base, higher brand
loyalty and resourceful, and successful marketing programs will result from a
price premium.
• Channel Member Interest – Perceived quality can also be of benefit to retailers,
distributors and other channel members as it will aid in gaining increased
distribution channels. The image of a channel member is influenced by the
products or services which it sells. With a perceived quality product the
channel member can offer a high-perceived quality product at an attractive
price to draw traffic.
• Brand Extensions – In addition, the perceived quality can be exploited by
introducing brand extensions and using the brand name to enter new product
categories. A strong brand with respect to perceived quality will be able to
extend further and will find a higher success probability than a weaker brand.
Aaker (1991) observed perceived quality as firstly being the perception of the
customer. Thus perceived quality cannot necessarily be objectively determined. This
is because perceived quality is a perception and further because judgments about what
is important to the customer are subjective. Hence perceived quality differs from
satisfaction and is an intangible overall impression of the brand.
2.5. Brand Awareness
Brand awareness is the consumers ability to recognise or recall that a brand is a
16

32. member of a certain product category. The consumer forms a link between product
class and the brand. Aaker (1991) suggests that brand awareness involves an uncertain
feeling that the brand is recognized, to a belief that it is the only one in the product
category.
Brand awareness is composed of brand recognition and brand recall. Brand
recognition conveys the consumers’ ability to validate previous knowledge of the
brand when given the brand as a reminder. Brand recognition means that consumers
identify with the brand, by either having heard or having previously seen the brand.
Touminen (1999:75) states that brand recognition is particularly important when a
buyer chooses a brand at the point of purchase. The next level of brand awareness is
brand recall. Brand recall relates to the consumers ability to recall the brand when
given the product category, the needs fulfilled by the category, or some other type of
probe as a cue. Hence brand recall requires that consumers can correctly recall the
brand from memory. Touminen (1999:77) states that brand recall is based on unaided
recall, which is a substantially more difficult task than recognition. The first-named
brand in an unaided recall task has achieved top-of-mind awareness. The comparative
importance of brand recognition and recall depends on the extent to which consumers
make decisions in the store versus outside the store.
Brand recognition may be more significant to the extent that product decisions are
made in the store (Keller 1993, 3; Keller 1998, 87–92). Brand awareness can be
characterised according to depth and breadth. The depth of brand awareness concerns
the likelihood that a brand element will come to mind and, the ease with which it does
so. A brand that can be easily recalled has a deeper level of brand awareness than one
that can only be recognised. The breath of brand awareness concerns the range of
purchase and usage situations where the brand element comes to mind. The breadth of
brand awareness depends to a large extent on the organisation of brand and product
knowledge in a customers memory (Keller 1998, 88).
Brand awareness provides the anchor to which other associations can be linked.
Touminen (1999:77) states that recognition gives the brand a sense of awareness, and
people like the familiar.
In the absence of motivation to engage in attribute
appraisals, familiarity will suffice.
17

33. Brand awareness can be an indicator of substance. Considering a groups brands is the
first stage in the buying process. Brand awareness can be crucial in getting into this
group. Aaker (1991) and Keller (1993:17) attest that brand awareness has an
important role in consumer decision making for three major reasons. Firstly that brand
awareness is important in that consumers think of the brand when they think about the
product category. Raising brand awareness increases the likelihood that the brand will
be a member of the consideration set. Second, brand awareness can affect decisions
about a brand in the consideration set. Thirdly, brand awareness affects consumer
decision making by influencing the formation and strength of brand associations in
the brand image.
2.6.
Brand Association
Brand associations are symbols and images associated with a brand. Brand
associations are not “reasons-to-buy” but provide a relationship and differentiation
which is not replicable by competitors. Brand association relates to the perceived
quality of a brand. Aaker (1991:18) defines brand associations as "anything linked in
memory to a brand", and brand image as "a set of brand associations, usually in some
meaningful way." Aaker (1991) categorized brand associations into product attributes,
intangibles, customer benefits, relative price, use/application, user/customer,
celebrity/person,
lifestyle/personality,
product
class,
competitors
and
country/geographic area. Chen (2001:439) has identified two types of brand
associations. One is product association including functional attribute association and
non-functional attribute association. The other is organizational association including
corporate ability association and corporate social responsibility association. Positive
brand associations are gained if the product which the brand represents is durable,
marketable and desirable. The customers must be convinced that the brand has the
features and attributes to satisfy their needs. This will result in customers having
positive interaction with the product. Positive brand association helps an organization
to gain goodwill, and thwarts a new competitor’s entry into the market.
Figure 2.4. Brand Associations
18

34. Product
Associations
Functional
Attrribute
Associations
Non-Functional
Attribute
Associations
Brand Associations
Corporate Ability
Associations
Organisational
Associations
Corporate Social
Responsibility
Associations
Source: Chen, A,C., Journal of Product and Brand Equity. Vol 10, Iss 7,. P 439
Chen (2001: 440) found that the corporate social responsibility association is
sometimes absent from a subject’s free associations. The other three attributes of
brand association, were then used to identify the orientation of association for each
brand. The results are the same as that of using the favorable association. In addition,
he also found that the number of brand association and total association have a
significant relationship with brand equity. But the core of brand association, instead
of total association, is the key factor in driving brand equity building. The greater the
numbers of the core brand association, the higher the brand equity. However, there is
no significant difference for the other brand associations between the high and low
equity brands. Marketers should develop a core association to position its brand
strategy to create competitive advantages.
2.7. Marketing Mix Elements
It is the responsibility of the marketer to employ marketing activities and build
integrated marketing programs to create, communicate and deliver value to customers
(Keller 1993:17). Marketing activities take on different forms. Traditionally these
activities are depicted in terms of the marketing mix, which are a set of tools that the
business uses to pursue its marketing objectives. These tools are traditionally referred
to as the 4 P’s of marketing namely, price, place, promotion and product. This study
19

35. will explore the consumers perception on five selected marketing elements, namely
price, online presence, distribution intensity, advertising spend and price promotion.
The chosen elements, even though they do not cover all forms of marketing efforts,
do present the relationship between marketing efforts and brand equity.
Figure 2.5. The Marketing Mix
Product
Variety, Quality, Design, Features,
Brand name, Packaging
Price
List price, Discounts, Allowances
Payment period, Credit Terms
Target Market
(Intended Customers)
Promotion
Advertising, Personal Selling,
Sales Promotion, Public Relations
Place
Channels, Coverage, Assortments, Locations
Inventory, Transport, Logistics
Source: Adapted from: Kotler and Armstrong, 2001:67
2.7.1. Price
Price is what is given up in an exchange to acquire products or a service (Lamb et al.
2008: 357). Price is key to revenue which directly relates to the profit of a business.
To earn a profit, businesses must determine a price that is not too high or too low. The
business must determine a price that equals the perceived value of target customers.
High-priced brands are often perceived to be of higher quality and less vulnerable to
competitive price cuts than low-priced brands (Blattberg and Winniewski, 1989:291).
Price is therefore positively related to perceived quality. By increasing perceived
quality, price can be increased. Brand-loyal consumers are willing to pay the full price
for their favorite brand because they are less price sensitive than non-loyal brand
consumers.
20

36. 2.7.2. Online Presence
Online presence is the process of presenting and drawing traffic to a brand through the
use of the internet. This process is a combination of website design, website
development, blogging, search engine optimization, pay-per-click marketing,
reputation management, and social media to create a long term presence online
(Compukol:2012). The development of the internet has allowed businesses not only to
be present online but also to conduct business online. This has been achieved through
transactions such as selling online and accepting online reservations. In many
instances, transactions performed online are more convenient and cost effective.
Customers are becoming more accustomed to the efficiency and convenience that
online businesses offer. A business’s online presence is therefore a necessity in the
marketplace of today.
2.7.3. Distribution Intensity
Distribution intensity is evaluated by the customers perception of the advertising
spend for the brand (Kirmani and Wright 1989:345).Distribution is regarded as
intensive when products are placed at multiple outlets to cover the market. Consumers
are more satisfied when a product is available in a greater number of outlets because
they have access to the product where and when they want it (Ferns, Oliver and
Kluyver, 1989:107). Intensive distribution decreases the time consumers must spend
searching the stores and travelling between stores, provides convenience in
purchasing, and makes it easier to obtain services related to the product. As
distribution intensity increases, consumers have more time, increased consumer place
utility and perceive more value for the product. The increased value results mostly
from the reduction of the sacrifices the consumer makes to acquire the product. Such
increased value leads to greater consumer satisfaction, perceived quality, brand
loyalty, and consequently to greater brand equity. Positive brand associations will
increase along with a consumers satisfaction with the product (Yoo, Donthu and Lee,
2000:197).
2.7.4. Advertising Spend
21

37. Advertising researchers have identified that advertising is successful in generating
brand equity (Boulding, Lee and Staelin, 1994:35). Simon and Sullivan (1993:31)
show a positive effect of advertising spending on brand equity. Cobb-Walgren, Beal
and Donthu (1995:25), find that spending on advertising has positive effects on brand
equity and its dimensions. Advertising is an important extrinsic cue signaling product
quality and advertising spend confirms that the business is investing in its brand,
which implies superior quality (Kirmani and Wright, 1989:347). Further advertising
spending levels are excellent indicators of not only high quality but also good buys.
There is a positive relationship between advertising and perceived quality. Hence,
advertising spending is positively related to perceived quality, the product of which is
higher brand equity. Advertising plays a significant role in increasing brand
awareness as well as creating powerful brand associations. Continuous advertising
increases the likelihood that a brand will be included in the consideration set, which
simplifies the consumer's brand choice. Shimp (1997:33) affirms in an extended
hierarchy of effects model that advertising is positively related to brand loyalty
because it reinforces brand-related associations and attitudes toward the brand. It can
be deduced that a greater amount of advertising is related positively to brand
awareness and associations, which leads to greater brand equity.
2.7.5. Price Promotion
Price promotion is a short-term price reduction such as special sales. Keller (2008),
considers price promotion to weaken brand equity, due to short-term benefits received
by consumers. This is measured as the perceived relative frequency of the price deals
shown for the product. Despite the immediate short-term financial gain, price
promotions (e.g. short-term price reductions such as special sales, media-distributed
coupons, package coupons, cents-off deals, rebates and refunds) are believed to erode
brand equity over time. An image of bad quality may result due to frequent price
promotions. This may jeopardize brands in the long run because they cause consumer
confusion based on unanticipated differences between expected and observed prices.
Shimp (1997:33) concludes that price promotion campaigns do not last long enough
to establish long-term brand associations, which can be achieved by other efforts such
as advertising and sales management. Relying on sales promotion and sacrificing
22

38. advertising could reduce a brand association, which leads to decreasing the brand
equity. Promotions often fail to establish a repeat purchase pattern after an initial trial.
This is because consumers are temporarily attracted to the brand by the transactional
utility that the price promotions provides and when the promotions end, the consumer
will lose interest in the brand. Thus, changes in brand loyalty after the end of deals
may occur unless the brand is perceived to be superior to, and to meet consumer needs
better than competing products.
2.8. Consumer-based Brand Equity
Customer based brand equity results in the creation of a strong brand. This is achieved
when brand awareness and image are at a high level. Customer-based brand equity
can be defined as the differential effect that brand knowledge has on consumer
response to the marketing of that brand.
There are three key factors to this definition:
• Differential effect - brand equity starts with differences in consumer response. If
no differences occur, then the brand can in essence be classified as a generic
version of the product or commodity.
• Brand knowledge - these differences in reaction are a consequence of
consumers’ knowledge about the brand. Thus, even though strongly
influenced by the marketing activity of the business, brand equity eventually
depends on what exists in the minds of consumers.
• Consumer response to marketing- the differential response by consumers that
makes up the brand equity is reflected in perceptions, preferences, and
behavior related to all aspects of the marketing of a brand (Keller 1993, 8–
9;Keller 2008:18).
Aaker (1996:120) defined brand equity as;
•
Loyalty (brands real or potential price premium and customer based
satisfaction)
23

39. •
Perceived comparative quality
•
Perceived brand leadership
•
Perceived brand value (brands functional benefits)
•
Brands personality
•
Customers perception of the organisation (trusted, admired, reliable)
•
Perceived differentiation to competing brands
•
Brand awareness (recognition and recall)
•
Market position (market share), prices and distribution coverage.
Touminen (1999:78) defines customer-based brand equity is an asset made up of
brand awareness, brand associations, perceived quality and brand loyalty.
The
fundamental premise with customer-based brand equity is that the power of a brand
lies in the minds of consumers what they have learned about the brand over time and
what they have experienced with the brand.
Understanding brand equity from the consumer’s viewpoint is useful because it
determines individual plans for marketing tactics and strategies. Marketers must take
an all-encompassing view of marketing activity for a brand and understand the
different effects it has on brand knowledge. Markets must fulfill the long-term success
of all future marketing programs for a brand and hence, this is greatly affected by the
knowledge about the brand in memory that has been built in by the businesses shortterm marketing efforts. Consumers are more accepting of new brand extensions when
the brand has positive customer based brand equity. Customer-based brand equity
arises when the consumer recognises the brand and holds some positive brand
association of the brand in his/her memory. Positive consumer response will lead to
better sales, lower costs and greater profits for the business (Keller 1993, 8; Keller
2008:18).
Brand knowledge is therefore vital when creating customer-based brand equity. Brand
knowledge is a composed of;
• brand awareness, which relates to consumers capability to distinguish or recall
the brand and
• brand image, which consist of consumers opinions of and associations with the
brand.
24

40. • brand awareness requires continuously exposing consumers to the brand and
linking the brand in the memory of the consumer to its product category, to
purchase, usage and consumption situations. Building a positive brand image
involves establishing strong, unique and favorable associations with the brand.
2.9. Conclusion
The above studies show that a more consumer orientated marketing perspective
would regard brand equity as having more to do with what is in the eye of the
beholder. Consumers have a very clear idea of what is meant by a strong brand. A
brand with high or strong brand equity, bring competitive advantages to the
consumer response. This implies that the brand is an asset, which needs to be
managed. A strong brand will further aid in increasing market share, allow for
premium pricing, reduce promotional expense and a level of immunity from new
entrants.
The next chapter, describes the research methodology used in this study.
25

41. CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is the complete process of the research study (Collis and
Hussey, 2006:34). The research methodology includes the theoretical framework to
the collection and analysis of data. The purpose of this chapter is to present a
summary of the research methodology that was utilized in this study. This consists of
the methods and techniques which have been utilize to focus on the research questions
and an explanation of the sample group and the sample selection technique.
Furthermore a description is provided for the measuring instrument that has been
used and the method of analysis which has been applied to the collected data.
3.2 Rationale for the Methodology
The positivistic (quantitative) paradigm and the phenomenological (qualitative)
paradigm are the two core paradigms to research. The research problem determines
the paradigm which is adopted for the research study. Burns (2007:18) states that the
qualitative paradigm has no objective truth because it is based on interpretations and
is subjective in nature. A qualitative paradigm is a suggestion on perception, and as
such reality is shaped and investigated through people’s opinions. Quantitative
research is a scientific study that includes experiments and systematic techniques that
give emphasis to control and quantifies measures of performance.
The primary data for this study was obtained using the quantitative methodology.
Collis and Hussey (2006:53) point out that most significant issues of the surveys are
determining the sample and relevance of the questions. Questions can be asked as
formally written questionnaires, telephonically or directly. For this study the research
instrument in the form of a written questionnaire was compiled to collect the primary
data. This questionnaire was also chosen because it is considered to be inexpensive,
less time consuming and provides good quality data easily.
26

42. 3.3 Research Design
A research design guides the researcher in planning and implementing the study in a
way that is likely to achieve the intended goals (Burns 2007:27). According to
Zikmund (2008:22), quantitative research designs tend to be highly structured and
include tight controls to eliminate contaminating influences. In planning a research
project it is thus critical that the researcher not only chooses a viable research
problem, but should also take into account the kind of data that will be required in
investigating the research problem.
Research design, in essence, is the planning of the research study. It is essential to
identify resources and procedures that will be followed as well as data that will be
gathered with the aim of solving the research problem (Leedy 2008:67). There are two
main approaches used in gathering and analysing data: the qualitative and quantitative
method. The method used in this study will be a quantitative approach.
The intention of quantitative research is first, to predict, describe and elucidate
quantities, degrees and relationships and secondly, to generalise from a sample to the
relevant population via the collection of statistical data. Quantitative research relies on
measurement
to
compare
and
analyse
different
variables
(Saunders
and
Thornhill2006:62). The purpose of quantitative research may also be described as the
evaluation of objective data that consists of numbers, where the aim is not to deal
directly with everyday life but rather with an abstraction of reality (Zikmund
2008:30).
3.4 Research Strategy
Research strategy is an all encompassing plan which provides a systematic approach
in solving the research questions (Saunders and Thornhill, 2006:88). Saunders and
Thornhill (2006:91) state than an effective research strategy contains clear objectives,
data collection resources, appropriate data collection methods, limitations and ethical
constraints which support the study research strategy.
Saunders and Thornhill
(2006:91) further affirm it is also beneficial for the researcher to use specific data
collection methods to support the arguments.
27

43. 3.4.1 Positivist Research Strategy
The positivist research methodology uses surveys to gather data. The survey strategy
is an accepted and frequently used strategy in business and management research. The
survey strategy tends to be used for exploratory and descriptive research (Saunders,
Lewis and Thornhill, 2009:144).
The study used the survey approach to gather primary data because it was selfexplanatory and easy to understand (Krishnaswamy, Sivakumar, and Mathirajan,
2006:167). However, Saunders et al. (2009:144) state that due to the set choice of
answers in survey questionnaires, the strategy is considered authoritative.
This study used the survey strategy for the following reasons;
•
Surveys are inexpensive (in particular self-administered surveys);
•
Surveys are useful in describing the characteristics of a large population. No
other method of observation can provide this general capability;
•
Surveys can be administered from remote locations using mail, email or
telephone;
•
Unvarying questions make measurement more precise by enforcing uniform
definitions upon the participants; and
•
Usually, high reliability is easy to obtain by presenting all subjects with a
standardized stimulus; observer subjectivity is removed (Krishnaswamy et al.,
2006:167).
3.5
Aim of the Study
The purpose of this study is to evaluate the role of marketing strategies in developing
brand equity for a DNA relationship and forensic testing company with specific
reference to the company called DNATest.
28

44. 3.6
Research Objectives
The objectives of this study were as follows:
•
Examine the relationship between the marketing strategies and the perceived
quality of the service, consumer response, brand association, brand awareness
and brand loyalty.
•
Identify the important factors among the marketing mix elements on consumer
response
•
Identify the important factors among the brand equity factors on customer
response.
This study employed a survey research strategy in the form of a forced-choice
questionnaire. The respondents view is best reflected when using a force-choice
question as the respondents can only chose one answer from the given options.
Saunders et al. (2006:95) are of the opinion that important research strategies include
an analysis of literature reviews, analysis of case studies, interviews, observations,
experiments and surveys. The five point Likert scale was employed in the
questionnaire. The use of the survey strategy, made it possible to collect information
and data from the participants that was related to the research. The survey method was
found to be easy, inexpensive, efficient and an accurate way of accessing the
information about the population (Zikmund, 2008:49).
3.7
Target Population
A research population is also known as a well defined, large collection of individuals
or objects that have similar characteristics or traits (Siegel 2011:601). Researchers
often cannot question every individual in the population because it is too expensive
and time consuming. Hence rather than testing large populations, researchers turn to
sampling techniques. A sample is a segment of the population that consists of the
same characteristics as the population on whom the study is being conduct with
(Burns 2007:31). The researchers population size is unknown. In this study the sample
size was two hundred, two hundred were administered and one hundred and thirty two
29

45. responses were received. The researchers sample size is also based on limitations of
the population researched.
3.7.1
Sampling & Sample Size
Siegel (2011:601) states that it is not always possible or practical to include the entire
study population in the research study. Hence a representative sample will be selected
from the study population. Salkind (2007:371) validates this by stating that a sample
is a representative portion of the population. The advantages of sampling is that the
smaller number of elements to be studied makes the research more manageable and
time efficient, less costly, and potentially more accurate. The target population size is
two hundred and a sample size of one hundred and thirty will be administered. These
figures were determined using the table developed by Sekeran (2003:253), for
determining sample size from a given population. The sample size is also based on
limitations from the organisation researched. As mentioned above according to Burns
(2007:31) a sample is a segment that consists of the same characteristics as the
population on whom the study is conducted. In this study all individuals included in
the sample size are past clients of the company, DNA Test. Thus they have all used
the services of DNATest. This qualified them to be part of this study in terms of the
inclusion criteria of this study.
3.7.2
Sampling Method
The research was carried out through a non-probability sampling technique also
referred to as convenience sampling method. This technique allows for the selection
of a particular group within the population in the full knowledge that it does not
represent the wider population (Leedy, 2008:67). The sample group, as stated earlier,
was selected as they were easily accessible (Rossouw, 2010:114).
3.8
Research Instrument
A research instrument is defined as a measurement tool for a research study which has
to be reliable and valid. (Saunders et al., 2007:145). This is a quantitative study that
includes a questionnaire to collect data by means of a survey. Questionnaires collect
30

46. precise and unbiased information. Rossouw (2010:128) describes surveyresearch as a
multi-tiered process.
Figure 3.1: Stages in the survey process
1. Design the questionnaire
2. Planning and drawing the sample
3. Administering, training and planning of
field implementation of the study
4. Computer linked processing of the data
5. Analysis and reporting of data
Source: Rossouw (2010:128)
The questionnaire is the favored tool of many of those engaged in research and it can
often provide a cheap and effective way of collecting data in a structured and
manageable form. (Wilkinson and Birminham, 2003:7). Further Saunders and
Thornhill (2006:67), state that the layout of the questionnaire should be appealing to
encourage the respondent to complete and return the questionnaire. The questionnaire
should not appear to be extensive and time consuming. A reliable method of obtaining
valid responses to questions is to keep the wording of each question as well as the
appearance of the questionnaire uncomplicated. A self administered questionnaire,
attached as Appendix B, was used whereby respondents were expected to read the
survey questions and chose their preferred answer.
31

47. 3.9
Questionnaire Construction
Goddard and Melville(2009:47), state that questionnaires normally consist of a list of
questions or statements that respondents are requested to answer or indicate the extent
to which they agree/disagree with a given statement.
The questionnaire for this study will be divided into two sections, namely:
Section A: Demographic Information
Section B: Brand interaction factors
The questionnaire is presented in a Likert - type scale with Strongly Disagree forming
the one end of the continuum and Strongly Agree the other end. According to, Leedy
(2008:58) the Likert scale is the most widely used scale and is convenient when the
researcher wants to measure a construct. Questionnaires are quick and easy to
administer as they can provide a large amount of information in a short time, do not
require trained interviewer and are relatively less expensive (McNabb, 2010:72).
The questionnaire was presented with a cover letter presented as Appendix A, and the
questionnaire presented as Appendix B. The cover letter was used to inform the
respondents about the purpose of the study. It also served to assure the respondents
that all information obtained through the questionnaire would be used for this study
only and will be kept confidential. Additionally the cover letter provided the
respondents with the details and contact information of the researcher.
At the beginning of the survey questionnaire, the researcher included an introduction
that was enticing and clearly stated the purpose of the research. Moreover, the
introduction also included instructions on completing the survey questionnaire, and an
estimate of how much time it would take. The respondents were given an assurance
that their information/responses will be kept confidential.
The design of a questionnaire contributes to its reliability and validity as a measuring
instrument.
32

48. 3.10
Pilot Study
Zikmund, Babin, Carr and Griffin (2012:63), define a pilot study as a strategy used to
test the questionnaire using a smaller sample compared to the planned sample size. A
pilot study is also used to validate the main study. Further, pilot studies are used to
determine limitations, oversights or inaccuracies before the final circulation of the
questionnaires. Walliman (2005:282) injects that the pilot study also allows the
researcher to confirm that the questionnaire includes all the information that is
necessary to conclude the study.
The designed questionnaire was piloted on ten participants, selected from the sample.
The findings of the pilot study did not reveal any flaws in the questionnaire design.
The pilot study did however reveal that the participants were eager to respond to the
questionnaire.
Based on the success of the pilot study, the final questionnaire was distributed to the
sample population.
3.11 Administration of the Questionnaire
Saunders and Thornhill (2006:310), clarify that the purpose of administering a
questionnaire is to gain access to the sample and to take full advantage of the response
rate. Questionnaires are easy and quick to administer, thereby allowing for the
retrieval of information within a short period of time.
One hundred and thirty two respondents took part in the survey. The questionnaires
were emailed to the participants. A covering letter presented as Appendix A was
presented to the participants explaining the purpose of the study. Participants were
guaranteed of the privacy of their information, and that their identities would be kept
confidential. To encourage participation, the time required for completion of the
survey was stipulated and simple instructions on how to complete the questionnaire
was also given.
33

49. 3.12
Response Percentage
Two hundred questionnaires were distributed to the participants. The response
percentage for the survey is shown on Table 3.1.
Table 3.1: Questionnaire Response percentage
Total Number of Questionnaires
Total Responses
Response
sent to Respondents
Received
Percentage
200
132
65%
The researcher allowed seven days for the completion and return of the questionnaire.
After a week, only sixty questionnaires were received. The researcher then extended
the collection period to fourteen days. After fourteen days, a response percentage of
sixty five percent was achieved with one hundred and thirty two out of the two
hundred questionnaires being returned, fully completed. Babbie (2010:72) states that
the overall response percentage is a guide to the representativeness of the sample
respondents. Saunders and Thornhill (2006:325), indicate that a sixty per cent
response percentage is good. Hence for this study the response percentage of sixty
five percent is deemed acceptable.
3.13
Data Analysis
The reliability of measurement scales will be used using Levene's Test for
Homogeneity of Variances and Cronbach's alpha coefficient analysis method. The
data analysis will describe demographic data using descriptive statistic analysis
according to the valid questionnaires. An analysis will ascertain the relationship
among the marketing mix elements, brand equity and consumer response, using
structural equation modeling. Multiple regression statistical method using the
Statistical Package for Social Science (SPSS 11.0) will determine the most influential
factor among the marketing mix elements on brand equity, the influence of brand
equity on customer response and the effect of the marketing mix elements on
customer response.
34

50. The t-test, mean, and Chi-square will be implemented. The questionnaire will be
analyzed, through the use of a mean statistical method, as summarization of the
central tendency in a distribution. The t-test will be used in conjunction with the
mean, and both tests when applied should give the same interpretation concerning the
variable being tested. The researcher will further use the Chi-Square test for
independence. This test will determine if independence between variables exists.
3.14
Validity and Reliability
Validity and reliability are closely related because if an assertion being measured is
valid, then it implies that the assertation is also reliable. Therefore, it could be argued
that a measure can only be valid if it is reliable (Joseph and Samouel, 2007:170).
3.14.1 Validity
Validity is the extent to which an instrument measures what it is intended to measure.
It measures the concept under investigation accurately (Collis and Hussey, 2006:55).
To ascertain the validity of the research questionnaire, the researcher will conduct a
field test to ascertain the validity of the instrument in terms of appropriateness, utility,
and clearness. Ten people will be chosen to participate in a pilot test to review the
questionnaire for clearness, subject matter, wording, and length.
The validity of a research study is the degree to which the study correctly answers the
question it is intended to answer (Gravetter and Forzano, 2009:157). The
questionnaire was used complied with the following validity features:
•
Content Validity
Content validity is defined as the extent to which the measuring device provides
adequate coverage of the investigative questions (Saunders et al., 2009:373). The
questionnaire integrated a selection of questions to attain validity. Questions were
based on information collected from the literature review to make sure that they
correspond to validated factors (Babbie, 2010:155).
35

51. •
Criterion-Related Validity
Criterion-related validity is related to the ability of the questions, within the
questionnaire to make accurate predictions (Saunders et al., 2009:373).
•
Construct Validity
Construct validity is the degree to which the measurement questions actually
measure the presence of the points the study intends to measure (Saunders et al.,
2009:374).
3.14.2 Reliability
Reliability of a measurement procedure is the constancy or stability of the
measurement (Gravetter and Forzano, 2009:82). The similar instrument must be able
to produce the similar data at a later stage under the same conditions. Rubin and
Babbie (2009:82) stated that reliability is subject to a precise technique being applied
repeatedly to the same object which would produce the same results each time. It is an
extent of consistency in measurement. The researcher may achieve this by means of a
test – retest. Rubin et al. (2009:82) characterized test-retest as a method for evaluating
a measure’s consistency or stability. A pilot test will be administered by the
researcher on 10 people. These individuals will be asked to complete the entire
questionnaire twice. These respondents would have similar characteristics to the
target population. The survey will be conducted with this group and then within seven
to ten days the survey will be repeated with the same group. The scores will be
compared and a high percentage of agreement between the two scores will indicate a
reliable survey. Those questions will a low score, will be deleted from the survey.
3.15
Limitations of the Research
The study provides a theoretical and substantive explanations of the most influential
factors that the marketing mix elements have on brand equity, that brand equity has
on customer response and that marketing mix elements have on customer response.
However there are still some limitations to be considered.
36

52. - This study is limited to customers whom have used the product of the brand. Thus
this research cannot determine a general conclusion for prospective customers who
have not had similar usage experience.
- This study will be limited to 200 individuals. The researcher is aware that the total
number of survey participants in the study may not be enough for the purpose of a
nationwide study.
3.16
Elimination of Bias
Bias is a form of systematic error that can affect scientific investigations and distort
the measurement process. A biased study loses validity in relation to the degree of the
bias(Cooper and Schindler, 2005:371). The researcher understands that it is difficult
or even impossible to completely eliminate bias. The questionnaires used for this
study will eliminate bias due to the consistent phrasing of questions for all
respondents. The quantitative approach for this study will eliminate bias as it requires
the researcher to keep a small distance from the participating subjects. Respondents
will be randomly selected. The researcher will remain objective throughout the study.
3.17
Ethical Considerations
There are ethical considerations in any form of research. The research process may
cause tension between the goal of the researcher to make generalizations for the good
of others, and the right of the participants to maintain privacy. Avoiding harm and
doing good pertains to ethics. The aim of ethics in research is to make sure that no one
is harmed or suffers negative repercussions from the research. (Beauchamo and
Bowie 2007: 17)
Legal requirements for the protection of data and the confidentiality of the
respondents will be observed by the researcher. The purpose, importance and goals of
this study will be made known to the respondents. The survey will be voluntary and
the respondents identity will be kept confidential.
37

53. 3.18
Conclusion
In this chapter the research methodology for this study was discussed. Included in the
chapter, was the size and response percentage of the study’s sample. This chapter also
includes the reasons for the choice of the sample and an explanation of the validity
and reliability of the data collected. The next chapter presents the results, discussion
and interpretation of findings of the study.
38

54. CHAPTER FOUR
RESULTS, DISCUSSIONS AND INTREPRETATION OF FINDINGS
4.1.
Introduction
In the previous chapter, an overview of the research design and methodology was
discussed. This chapter analyses the responses and presents the research findings from
the surveyed data. A research correlation is used and shows the relationships between
certain key aspects of the marketing mix elements. A quantitative survey with a
questionnaire was used as a data collection tool. The results of each question are
presented and discussed. The questionnaire was analyzed through the use of the IBM
SPSS 21software package.
4.2.
Response Rate
Two hundred questionnaires were emailed to clients of DNA Test. One hundred and
thirty respondents took part in the survey and a response of 65% was realized. The
questionnaires were emailed to the participants. All one hundred and thirty
questionnaires were filled in appropriately and were error free, no questionnaires were
rejected.
The questionnaire consisted of twenty four questions which were directed at
evaluating the role of the marketing strategies in developing brand equity. Specific
reference was made to perceived quality, brand awareness and brand association.
Descriptive statistics were used to summarize the information and illustrate the
context of the composition of the respondents.
4.3. Analysis and Interpretation of data from respondents
Statistical analysis was carried out with the use of IBM SPSS 21. The statistical
analysis of the questionnaire provided to participants was done using inferential and
descriptive statistics. Descriptive statistics were produced as frequency tables,
frequency bar charts and distribution tables. Inferentially, non-parametric Chi-Squares
and Spearman’s correlation analysis were conducted. Spearman’s Rho was used as the
39

55. data was ordinal in nature, and non-parametric tests required as per the tests for
normality (as per the Kolmogorov-Smirnova, and Shapiro-Wilk), Reliability analyses,
Median analysis and Factor analyses were performed.
Tests performed were determined by the level of measurement yielded by the
questionnaire (nominal, ordinal, categorical), and as dictated by the assumptions
underlying each test, with the ultimate goal of answering the study’s research
questions.
4.4.
Section A: The Sample Demographic
4.4.1.
Gender
Figure 4.1.
Gender of Respondents
Frequency
Frequency Bar Chart of Respondents Gender
120
100
80
60
40
20
0
Male - 98
Female - 32
Gender
Table 4.1 Your Gender
Your Gender
Female
Male
Total
Frequency
32
98
130
Percent
24.6
75.4
100.0
Valid Percent
24.6
75.4
100.0
Cumulative Percent
24.6
100.0
The findings in Table 4.1 reveals that 24.6% of respondents are female, and 75.4% are
male(N = 130). It is evident that males make up the greater population of DNA Test
clients.
40

56. 4.4.2
Age
Figure 4.2.
Age of Respondents
Frequency Bar Chart of Respondents Age
Frequency
100
80
60
40
20
0
Under 25
25 to 30
30 to 40
40 to 50
Above 50
Respondents Age (in years)
Table 4.2
Your Age
Your Age
Under 25
25 to 30
30 to 40
Above 50
Total
Frequency
6
40
77
7
130
Percent
4.6
30.8
59.2
5.4
100.0
Valid Percent
4.6
30.8
59.2
5.4
100.0
Cumulative Percent
4.6
35.4
94.6
100.0
The findings in table 4.2 reveals that 4.6% of respondents are under the age of 25
years, 30.8% are between 25-30 years, 59.2% between 30 – 40 years, and 5.4% above
50 years (N = 130). The majority of clients are between the age of 30 to 40 years old.
There were no respondents between the ages of 40 to 50 years old. 5.4% of
respondents were above the age of 50 years.
41

57. 4.4.3. Marital Status
Figure 4.3.
Martial Status
Frequency bar Chart of Respondents Maritial Status
Frequency
80
60
40
20
0
Single - 61
Married - 43
Divorced - 6
Separated - 20
Maritial Status
Table 4.3
Your Marital Status
Your Marital Status
Single
Married
Divorced
Separated
Total
Frequency
61
43
6
20
130
Percent
46.9
33.1
4.6
15.4
100.0
Valid Percent
46.9
33.1
4.6
15.4
100.0
Cumulative Percent
46.9
80.0
84.6
100.0
The findings in table 4.3 reveal that 46.9% of respondents are single, 33.1% are
married, 4.6% are divorced, and 15.4% separated (N = 130). Most of the clients of
DNA Test are single.
The demographic data is generally representative of the population of DNA Test
clients.
4.5.
The Research Instrument
The research instrument consisted of 21 items which was administered to 200 and
responses were received from 132 participants. Items consisted of categories ranging
from nominal to ordinary level of measurement.
42

58. 4.5.1. Reliability
Table 4.4
Reliability Statistics
Reliability Statistics
Cronbach's Alpha
N of Items
.825
21
The Cronbach’s Alpha is > 0.7, therefore the scale is reliable, and results valid (N =
21, α = 0.825). A Factor Analysis revealed that there were at least 5 significant
dimensions. Cronbach’s Alpha is sensitive to multidimensionality, often with the
result of lowering the general internal consistency.
4.5.2. Factor Analysis
A Factor Analysis was conducted as a data reduction method to ascertain what factors
primarily account for the variability seen in the data. The five factors from the
research instrument account for 83.073% of the overall variance. The factors for the
study (from the research instrument) are as follows:
- Factor 1; Will use product or service again, can recognize the brand among
competitive brands, aware of and like the brand, provides excellent quality, service
and product is trustworthy and reliable, has a good reputation and is a brand leader;
- Factor 2; The price of service or product is high, the brand is advertised
appropriately, the adverts seem expensive, are willing to pay higher price for product
or services as compared to other competitive offerings;
- Factor 3; The price of service or product is value for money, the product or service
is of high quality, product or service would be first choice should another DNA test be
required and will recommend service and products to others;
- Factor 4; The pharmacies or website sell a wide range of well-known brands;
-Factor 5; The price of DNA Test service or product is low, loyal to the DNA Test
brand and products and services are efficient.
43

59. Table 4.5
Gender
Age
Marital Status
Q4
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Q19
Q20
Q21
Q22
Q23
Q24
Tests of Normality
Tests of Normality
a
Kolmogorov-Smirnov
Shapiro-Wilk
Statistic
df
Sig.
Statistic
df
.469
130
.000
.535
130
.302
130
.000
.760
130
.267
130
.000
.749
130
.259
130
.000
.808
130
.280
130
.000
.704
130
.349
130
.000
.761
130
.401
130
.000
.663
130
.255
130
.000
.837
130
.324
130
.000
.788
130
.192
130
.000
.876
130
.273
130
.000
.764
130
.342
130
.000
.747
130
.417
130
.000
.636
130
.261
130
.000
.823
130
.240
130
.000
.818
130
.337
130
.000
.741
130
.296
130
.000
.769
130
.295
130
.000
.760
130
.224
130
.000
.843
130
.217
130
.000
.845
130
.365
130
.000
.774
130
.205
130
.000
.805
130
.259
130
.000
.843
130
.312
130
.000
.742
130
Sig.
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
Table 4.5 reveals that data is not normally distributed therefore non-parametric tests
should be conducted. Resulting the use of the Spearman’s Rho as a measure for
correlations, as this is particular to non-parametric correlations, and the Chi-Square
was used. Saunders and Thornhill(2009:449), state that where the requirement for
Pearson’s Chi-Square if more than five counts, for more than 80% of the cells have
been violated, the Fisher’s Exact Test is to be used as this takes into consideration this
violation, and is particular to small sample sizes.
Overall, the conclusion for the demographics consisted mainly of single (46.9%),
males (75.4%), respondents between the ages of 30-40 years (59.2%). The research
instrument has been demonstrated to be reliable. Reliability is a requirement for
44

60. validity. Normality tests have demonstrated that the data is not normally distributed.
Therefore, the analysis was determined to be conducted, based on non-parametric
testing, and with due cognizance of the level of measurement (ordinal and nominal)
excluding parametric tests like ANOVA, MANOVA, T-Tests and the like which
require normally distributed data, with homogeneity of variance, and that exist at an
interval or ratio level.
4.6 Section B: The Brand Interaction Factors
A five point Likert Scale was used to measure the output of each item answered by
the participants, each response has been graphically represented. These results and
findings we complied by evaluating and analyzing the data gathered via the
questionnaire to individuals whom have used the services of DNATest, the case study
for this research. A research correlation is used and shows the relationships between
certain key aspects of the marketing mix elements. A quantitative survey with a
questionnaire was used as a data collection tool. The results of each question are
presented and discussed. The questionnaire was analyzed through the use of the IBM
SPSS 21software package.
Table 4.6
The price of DNA Test service or product is high
The price of DNA Test service or product is high
Frequency
Percent
Strongly agree
22
16.9
Agree
44
33.8
Uncertain
13
10.0
Disagree
51
39.2
Total
130
100.0
Valid Percent
16.9
33.8
10.0
39.2
100.0
Cumulative Percent
16.9
50.8
60.8
100.0
The findings in table 4.6 reveals that 16.9% of respondents strongly agree that the
price of DNA Test service or product is high, 33.8% agree, 10% are uncertain, and
39.2% disagree. There is no consensus of the price of DNA Test service or product is
high. This signifies that clients of DNA Test represent low to high income groups, and
as such have a difference in opinion about the price of DNA Test product or service.
This is significant as management of DNA Test have to look at price in building
brand equity. As price is a source of meaning and identity for a brand. A brand that
45

61. offers good value for money evokes a strong positive emotion. (Median = 2 and
Standard Deviation of 1.156, n = 130)
Table 4.7.
The Price of DNA Test service or Product is value for money
The price of DNA Test service or product is value for money
Strongly agree
Agree
Disagree
Total
Frequency
65
47
18
130
Percent
50.0
36.2
13.8
100.0
Valid Percent
50.0
36.2
13.8
100.0
Cumulative Percent
50.0
86.2
100.0
The findings in table 4.7 reveals that 50% of respondents strongly agree that the price
of DNA Test service or product is value for money, 36.2% agree, and 13.8% disagree.
The significance of this is that the majority of DNA Test customers feel that service
or product has a high value without costing much. (Median = 1.50 and Standard
Deviation of 1.006, n = 130)
Table 4.8.
The price of DNA Test service or product is low
The price of DNA Test service or product is low
Frequency Percent
Strongly agree
16
12.3
Agree
2
1.5
Uncertain
19
14.6
Disagree
73
56.2
Strongly Disagree
20
15.4
Total
130
100.0
Valid Percent
12.3
1.5
14.6
56.2
15.4
100.0
Cumulative Percent
12.3
13.8
28.5
84.6
100.0
The findings in table 4.8 reveals 12.3% of respondents strongly agree that the price of
DNA Test service or product is low, 1.5% agree, 14.6% were uncertain, 56.2%
disagreed, and 15.4% strongly disagree. 71.6% of the respondents disagree and
strongly disagree that the price of DNA Test service or product is low. This means
that the majority of the respondents feel that the price of DNA Test product or service
is high. (Median = 4 and Standard Deviation of 1.151, n = 130)
46

62. Table 4.9
DNA Test sells a product or service of high quality
DNA Test sells a product or service of high quality
Frequency Percent Valid Percent
Strongly agree
85
65.4
65.4
Agree
32
24.6
24.6
Uncertain
13
10.0
10.0
Total
130
100.0
100.0
Cumulative Percent
65.4
90.0
100.0
The findings in table 4.9 reveals that 65.4% of respondents strongly agree that DNA
Test sells a product or service of high quality, 24.6% agree, and 10% are uncertain.
This is significant for DNA Test as 90% of the respondents agree and strongly agree
that the quality of the service or product is recognised as having a superior quality.
The significance of this to DNA Test management is that the majority of it’s clients
feel that its product and service is of high quality and that DNA Test should continue
to follow it’s policy on delivering a quality product and service. (Median = 1 and
Standard Deviation of 0.671, n = 130)
Table 4.10
The pharmacies or website where I can buy DNA Test products or
service sell a wide range well-known brands
The pharmacies or website where I can buy DNA Test products or services sell a wide range
of well-known brands
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly agree
13
10.0
10.0
10.0
Agree
21
16.2
16.2
26.2
Uncertain
54
41.5
41.5
67.7
Disagree
42
32.3
32.3
100.0
Total
130
100.0
100.0
The findings in table 4.10 reveals that 10% of respondents strongly agree that the
pharmacies or website where they can buy DNA Test products or services sell a wide
range of well-known brands, 16.2% agree, 41.5% were uncertain, and 32.3% disagree.
The respondents are largely uncertain as well as disagree about the range of well
known brands being stocked at the pharmacies and website which sell DNA Test
products and services. The significance of this is that DNA Test management will
need to understand why this is such and how they can address this and change this
perception. (Median = 3 and Standard Deviation of 0.943, n = 130)
47

63. Table 4.11
The pharmacies where I can buy DNA Test products or services sell
well known brands
The pharmacies where I can buy DNA Test products or services sell well known brands
Frequency Percent Valid Percent
Cumulative Percent
Strongly agree
25
19.2
19.2
19.2
Agree
6
4.6
4.6
23.8
Uncertain
64
49.2
49.2
73.1
Disagree
35
26.9
26.9
100.0
Total
130
100.0
100.0
The findings in table 4.11 reveals that 19.2% of respondents strongly agree that the
pharmacies where they can buy DNA Test products or services sell well-known
brands, 4.6% agree, 49.2% were uncertain, and 26.9% disagree. The respondents were
largely uncertain about the recognizable brands sold at the pharmacies which stock
DNA Test product. This affirms the findings in Table 4.11. The significance of this is
that DNA Test management will need to understand why this is such and how they
can address this and change this perception. (Median = 3 and Standard Deviation of
1.033, n = 130)
Table 4.12
DNA Test brand is advertised appropriately
DNA Test brand is advertised appropriately
Frequency Percent
Strongly agree
32
24.6
Agree
33
25.4
Uncertain
29
22.3
Disagree
14
10.8
Strongly Disagree
22
16.9
Total
130
100.0
Valid Percent
24.6
25.4
22.3
10.8
16.9
100.0
Cumulative Percent
24.6
50.0
72.3
83.1
100.0
The findings in table 4.12 reveals that 24.6% of respondents strongly agree that the
DNA Test brand is advertised appropriately, 25.4% agree, 22.3% were uncertain,
10.8% disagree, and 16.9% strongly disagree. There is a somewhat flat agreement to
disagreement as to DNA Test’s advertising. Cumulatively 50% of the respondents
agree to strongly agree the brand is advertised appropriately. Management of DNA
Test need to address its advertising policy, so that its adverts are more appropriately
advertised. (Median = 2.50 and Standard Deviation of 1.396, n = 130)
48

64. Table 4.13
The adverts for DNA Test products and services seem expensive
The adverts for DNA Test products and services seem expensive
Frequency Percent Valid Percent
Strongly agree
6
4.6
4.6
Agree
8
6.2
6.2
Uncertain
66
50.8
50.8
Disagree
50
38.5
38.5
Total
130
100.0
100.0
Cumulative Percent
4.6
10.8
61.5
100.0
The findings in table 4.13 reveal that 4.6% of respondents strongly agree that the
adverts for DNA Test products and services seem expensive, 6.2% agree, 50.8% were
uncertain, and 38.5% disagreed. A significant 50.8% of respondents were uncertain if
the adverts for DNA Test products and services seemed expensive. This affirms the
findings of tables 4.11 and 4.12 and as such management of DNA Test need to revise
their current advertising policy so that the brand has customer appeal rather than
seeming expensive. (Median = 3 and Standard Deviation of 0.763, n = 130)
Table 4.14
I consider myself to be loyal to the DNA Test brand
I consider myself to be loyal to the DNA Test brand
Frequency Percent Valid Percent
Strongly agree
71
54.6
54.6
Agree
13
10.0
10.0
Uncertain
32
24.6
24.6
Disagree
14
10.8
10.8
Total
130
100.0
100.0
Cumulative Percent
54.6
64.6
89.2
100.0
The findings in table 4.14 reveals that 54.6% of respondents strongly agree that they
consider themselves to be loyal to the DNA Test brand, 10% agree, 24.6% were
uncertain, and 10.8% disagreed. More than half of the respondents strongly agree that
they are loyal to the DNA Test brand. Customer loyalty is achieved when consumers
become committed to a brand and make repeat purchases over time. Brand loyalty is a
result of consumer behavior and is affected by a person's preferences. Loyal
customers will consistently purchase products from their preferred brands, regardless
of convenience or price. Companies will often use different marketing strategies to
cultivate loyal customers, be it is through loyalty programs (i.e. rewards programs) or
trials and incentives. Companies that successfully cultivate loyal customers also
develop brand ambassadors – consumers that will market a certain brand and talk
positively about it among their friends. This is free word-of-mouth marketing for the
49