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

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

ii    

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.

…………………………………… ………………….

Nevin Siralen Pillay Date

 

 

 

 

28 May 2013

iii    

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.

iv    

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.

v    

DEDICATION

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

vi    

 

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

vii    

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

viii    

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

ix    

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

x    

5.4 Research Limitations 77

5.5 Recommendations and Conclusions 78

BIBLIOGRAPHY 80

APPENDIX A 86

APPENDIX B 87

APPENDIX D 89

xi    

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

xii    

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

xiii    

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

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

57

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

58

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

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

61

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

xiv    

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

1    

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 multi-

dimensional 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.

2    

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

3    

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

4    

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.

5    

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.

6    

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.

7    

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. Customer-

based 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

8    

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.

9    

Figure 2.1. Brand Equity Model

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.

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?

10    

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

11    

(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.

12    

Figure 2.2. The Loyalty Pyramid

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

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

13    

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

14    

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

15    

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

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-to-

buy. 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

Perceived Quality

Reason – to- buy

Differentiation / Position

A price premium

Channel member interest

Brand extension

16    

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

17    

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.

18    

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

19    

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

Brand Associations

Product Associations

Functional Attrribute

Associations

Non-Functional Attribute

Associations

Organisational Associations

Corporate Ability Associations

Corporate Social Responsibility Associations

20    

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

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.

Target Market (Intended Customers)  

Product Variety, Quality, Design, Features,

Brand name, Packaging

Price List price, Discounts, Allowances

Payment period, Credit Terms

Promotion Advertising, Personal Selling,

Sales Promotion, Public Relations

Place Channels, Coverage, Assortments, Locations

Inventory, Transport, Logistics

21    

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

22    

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

23    

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)

24    

• 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 short-

term 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.

25    

• 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.

26    

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.

27    

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.

28    

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 self-

explanatory 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.

29    

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

30    

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

31    

precise and unbiased information. Rossouw (2010:128) describes surveyresearch as a

multi-tiered process.

Figure 3.1: Stages in the survey process

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.

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

32    

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.

33    

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.

34    

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

sent to Respondents

Total Responses

Received

Response

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.

35    

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).

36    

• 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.

37    

- 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.

38    

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.

39    

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

40    

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

Table 4.1 Your Gender Your Gender Frequency Percent Valid Percent Cumulative Percent Female 32 24.6 24.6 24.6 Male 98 75.4 75.4 100.0 Total 130 100.0 100.0 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.

0 20 40 60 80

100 120

Male - 98 Female - 32

Freq

uenc

y

Gender

Frequency Bar Chart of Respondents Gender

41    

4.4.2 Age Figure 4.2. Age of Respondents

Table 4.2 Your Age Your Age

Frequency Percent Valid Percent Cumulative Percent Under 25 6 4.6 4.6 4.6 25 to 30 40 30.8 30.8 35.4 30 to 40 77 59.2 59.2 94.6 Above 50 7 5.4 5.4 100.0 Total 130 100.0 100.0

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.

0

20

40

60

80

100

Under 25 25 to 30 30 to 40 40 to 50 Above 50

Freq

uenc

y

Respondents Age (in years)

Frequency Bar Chart of Respondents Age

42    

4.4.3. Marital Status Figure 4.3. Martial Status

Table 4.3 Your Marital Status Your Marital Status

Frequency Percent Valid Percent Cumulative Percent Single 61 46.9 46.9 46.9 Married 43 33.1 33.1 80.0 Divorced 6 4.6 4.6 84.6 Separated 20 15.4 15.4 100.0 Total 130 100.0 100.0

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.

0 20 40 60 80

Single - 61 Married - 43 Divorced - 6 Separated - 20

Freq

uenc

y

Maritial Status

Frequency bar Chart of Respondents Maritial Status

43    

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.

44    

Table 4.5 Tests of Normality

Tests of Normality Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig. Gender .469 130 .000 .535 130 .000 Age .302 130 .000 .760 130 .000 Marital Status .267 130 .000 .749 130 .000 Q4 .259 130 .000 .808 130 .000 Q5 .280 130 .000 .704 130 .000 Q6 .349 130 .000 .761 130 .000 Q7 .401 130 .000 .663 130 .000 Q8 .255 130 .000 .837 130 .000 Q9 .324 130 .000 .788 130 .000 Q10 .192 130 .000 .876 130 .000 Q11 .273 130 .000 .764 130 .000 Q12 .342 130 .000 .747 130 .000 Q13 .417 130 .000 .636 130 .000 Q14 .261 130 .000 .823 130 .000 Q15 .240 130 .000 .818 130 .000 Q16 .337 130 .000 .741 130 .000 Q17 .296 130 .000 .769 130 .000 Q18 .295 130 .000 .760 130 .000 Q19 .224 130 .000 .843 130 .000 Q20 .217 130 .000 .845 130 .000 Q21 .365 130 .000 .774 130 .000 Q22 .205 130 .000 .805 130 .000 Q23 .259 130 .000 .843 130 .000 Q24 .312 130 .000 .742 130 .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

45    

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 Valid Percent Cumulative Percent Strongly agree 22 16.9 16.9 16.9 Agree 44 33.8 33.8 50.8 Uncertain 13 10.0 10.0 60.8 Disagree 51 39.2 39.2 100.0 Total 130 100.0 100.0

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

46    

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

Frequency Percent Valid Percent Cumulative Percent Strongly agree 65 50.0 50.0 50.0 Agree 47 36.2 36.2 86.2 Disagree 18 13.8 13.8 100.0 Total 130 100.0 100.0

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 Valid Percent Cumulative Percent Strongly agree 16 12.3 12.3 12.3 Agree 2 1.5 1.5 13.8 Uncertain 19 14.6 14.6 28.5 Disagree 73 56.2 56.2 84.6 Strongly Disagree 20 15.4 15.4 100.0 Total 130 100.0 100.0

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)

47    

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 Cumulative Percent Strongly agree 85 65.4 65.4 65.4 Agree 32 24.6 24.6 90.0 Uncertain 13 10.0 10.0 100.0 Total 130 100.0 100.0

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)

48    

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 Valid Percent Cumulative Percent Strongly agree 32 24.6 24.6 24.6 Agree 33 25.4 25.4 50.0 Uncertain 29 22.3 22.3 72.3 Disagree 14 10.8 10.8 83.1 Strongly Disagree 22 16.9 16.9 100.0 Total 130 100.0 100.0

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)

49    

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 Cumulative Percent Strongly agree 6 4.6 4.6 4.6 Agree 8 6.2 6.2 10.8 Uncertain 66 50.8 50.8 61.5 Disagree 50 38.5 38.5 100.0 Total 130 100.0 100.0

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 Cumulative Percent Strongly agree 71 54.6 54.6 54.6 Agree 13 10.0 10.0 64.6 Uncertain 32 24.6 24.6 89.2 Disagree 14 10.8 10.8 100.0 Total 130 100.0 100.0

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

50    

company and is often very effective. This is significant to the building of brand

equity. (Median = 1 and Standard Deviation of 1.107, n = 130)

Table 4.15 DNA Test product or service would be my first choice should I require

another DNA Test DNA Test product or service would be my first choice should I require another DNA Test

Frequency Percent Valid Percent Cumulative Percent Strongly agree 90 69.2 69.2 69.2 Agree 16 12.3 12.3 81.5 Uncertain 17 13.1 13.1 94.6 Disagree 7 5.4 5.4 100.0 Total 130 100.0 100.0

The findings in table 4.15 reveals that 69.2% of respondents strongly agree that the

DNA Test product or service would be their first choice should they require another

DNA Test, 12.3% agreed, 13.1% were uncertain, and 5.4% disagreed. A significantly

high cumulative 81.5% of the respondents state that DNA Test product or service

would be their first choice should they require another DNA test. This is significant to

the building of brand equity. Management of DNA Test need to maintain the

relationships with their clients.(Median = 1 and Standard Deviation of 0.916, n = 130)

Table 4.16 I will use DNA Test products or service again I will use DNA Test product or service again

Frequency Percent Valid Percent Cumulative Percent Strongly agree 45 34.6 34.6 34.6 Agree 51 39.2 39.2 73.8 Uncertain 21 16.2 16.2 90.0 Disagree 7 5.4 5.4 95.4 Strongly Disagree 6 4.6 4.6 100.0 Total 130 100.0 100.0

The findings in table 4.16 reveals that 34.6% strongly agree that they will use DNA

Test product or service again, 39.2% agree, 16.2% were uncertain, 5.4% disagree, and

4.6% strongly disagree. Conforming with the findings in table 4.15 the majority of

respondents state should the need arise they would use DNA Test services or product

again. Repeat business is the hallmark of a stead customer that is highly valued by any

business. The literature from this study confirms that repeat customers require

51    

minimal marketing efforts to retain. (Median = 2 and Standard Deviation of 1.069, n =

130)

4.17 I can recognize the DNA Test brand among competitive brands I can recognize the DNA Test brand among competitive brands

Frequency Percent Valid Percent Cumulative Percent Strongly agree 52 40.0 40.0 40.0 Agree 50 38.5 38.5 78.5 Uncertain 21 16.2 16.2 94.6 Disagree 7 5.4 5.4 100.0 Total 130 100.0 100.0

The findings in table 4.17 reveals that 40% of respondents strongly agree that they

can recognize the DNA Test brand among competitive brands, 38.5% agree, 16.2%

were uncertain, and 5.4% disagree. Collectively the majority of the respondents

recognize the DNA Test brand amid other brands. Literature from this study confirms

that a brand embodies everything from a brand message and mission statement

through to use of logos, colours and imagery. When a brand is recognized a positive

brand awareness is created. This will ensure that the businesses target audience (and

everyone else) recognises the existence of the business, as well as the importance and

availability of businesses product. Positive brand awareness familiarizes the target

markets with the product and helps them to realize how valuable the product is as

opposed to competitive offerings. This is significant to the building of brand equity.

(Median = 2 and Standard Deviation of 0.875, n = 130)

Table 4.18 I am aware of the DNA Test brand I am aware of the DNA Test brand Frequency Percent Valid Percent Cumulative Percent Strongly agree 73 56.2 56.2 56.2 Agree 31 23.8 23.8 80.0 Uncertain 19 14.6 14.6 94.6 Disagree 7 5.4 5.4 100.0 Total 130 100.0 100.0

The findings in table 4.18 reveals that 56.2% of respondents strongly agree that they

are aware of the DNA Test brand, 23.8% agree, 14.6% were uncertain, and 5.4%

disagreed. Showing correlation with the finding in table 4.15 the majority of the

52    

respondents are aware of the DNA Test brand. This is significant to the building of

brand equity. (Median = 1 and Standard Deviation of 0.914, n = 130)

Table 4.19 DNA Test provides excellent quality DNA Test provides excellent quality Frequency Percent Valid Percent Cumulative Percent Strongly agree 61 46.9 46.9 46.9 Agree 43 33.1 33.1 80.0 Uncertain 26 20.0 20.0 100.0 Total 130 100.0 100.0 The findings in table 4.19 reveals that 46.9% of respondents strongly agree that the

DNA Test provides excellent quality, 33.1% agreed, and 20% were uncertain. There

is a strong agreement from the respondents that DNA Test provides excellent quality.

There was no disagreement or strong disagreement amongst the respondents. This is

significant to the building of brand equity, and DNA Test management need to

continue pursuing its current policy, which provides excellent quality.(Median = 2

and Standard Deviation of 0.775, n = 130)

Table 4.20 DNA Test products and services are trustworthy and reliable DNA Test products and services are trustworthy and reliable

Frequency Percent Valid Percent Cumulative Percent Strongly agree 60 46.2 46.2 46.2 Agree 34 26.2 26.2 72.3 Uncertain 36 27.7 27.7 100.0 Total 130 100.0 100.0

The findings in table 4.20 reveals that 46.2% of respondents strongly agree that the

DNA Test products and services are trustworthy and reliable, 26.2% agree, and 27.7%

were uncertain. Cumulatively 72.3% of the respondents agree that DNA Test products

or services are trustworthy and reliable. This is significant as DNA Test products and

services need to be reliable and trustworthy as the results of which are life changing.

(Median = 2 and Standard Deviation of 0.843, n = 130)

53    

Table 4.21 You particularly like DNA Test as a brand You particularly like DNA Test as a brand

Frequency Percent Valid Percent Cumulative Percent Strongly agree 44 33.8 33.8 33.8 Agree 51 39.2 39.2 73.1 Uncertain 28 21.5 21.5 94.6 Disagree 7 5.4 5.4 100.0 Total 130 100.0 100.0

The findings in table 4.21 reveals that 33.8% of respondents strongly agree that they

particularly like DNA Test as a brand, 39.2% agreed, 21.5% were uncertain, and 5.4%

disagreed. A small percentage of the respondents did not agree to liking the DNA Test

brand. It is vital that DNA Test use this information to determine the reasons as to

why the 5.4% of respondents did not like DNA Test as a brand. Consumers have a

very clear idea of what is meant by a strong brand. A brand with strong brand equity,

brings competitive advantage to the consumer response and this is important in

building brand equity. (Median = 2 and Standard Deviation of 0.880, n = 130)

Table 4.22 DNA Test has a good reputation DNA Test has a good reputation Frequency Percent Valid Percent Cumulative Percent Strongly agree 45 34.6 34.6 34.6 Agree 42 32.3 32.3 66.9 Uncertain 36 27.7 27.7 94.6 Disagree 7 5.4 5.4 100.0 Total 130 100.0 100.0

The findings in table 4.22 reveals that 34.6% of respondents strongly agree that the

DNA Test has a good reputation, 32.3% agreed, 27.7% uncertain, and 5.4%

disagreed. A fair percentage of the respondents agree or strongly agree that DNA Test

has a good reputation. This is significant to the building of brand equity. Positive

brand equity and positive reputation when seen in unity, the effects are even more

positive than the individual power of each individually.(Median = 2 and Standard

Deviation of 0.918, n = 130)

54    

Table 4.23 DNA Test is a brand leader DNA Test is a brand leader Frequency Percent Valid Percent Cumulative Percent Strongly agree 15 11.5 11.5 11.5 Agree 27 20.8 20.8 32.3 Uncertain 80 61.5 61.5 93.8 Disagree 8 6.2 6.2 100.0 Total 130 100.0 100.0

The findings in table 4.23 reveals that 11.5% of respondents strongly agree that DNA

Test is a brand leader, 20.8% agreed, 61.5% were uncertain, and 6.2% disagreed. A

majority of the respondents were uncertain about DNA Test being a brand leader.

Seeing that the majority of respondents were uncertain, management of DNA Test

need to address this uncertainty. Uncertain clients needs are difficult to address.

Having such a large portion of the respondents uncertain could adversely affect DNA

Test’s need to build brand equity.(Median = 3 and Standard Deviation of 0.770, n =

130)

Table 4.24 DNA Test products and services are efficient DNA Test products and services are efficient Frequency Percent Valid Percent Cumulative Percent Strongly agree 40 30.8 30.8 30.8 Agree 52 40.0 40.0 70.8 Uncertain 38 29.2 29.2 100.0 Total 130 100.0 100.0

The findings in table 4.24 reveals that 30.8% of respondents strongly agreed that

DNA Test products and services are efficient, 40% agreed, and 29.2% were uncertain.

Consistent with table 4.7, the high quality of service and product the respondents

cumulatively agree that DNA Test products and service is efficient. This is significant

as DNA Test are utilizing maximum value in its product and services. This is

significant in building brand equity. (Median = 2 and Standard Deviation of 0.777, n

= 130)

55    

Table 4.25 Are you willing to pay a higher price for a DNA Test product or services as compared to other competitive offerings

Are you willing to pay a higher price for a DNA Test product or services as compared to other competitive offerings Frequency Percent Valid Percent Cumulative Percent Agree 36 27.7 27.7 27.7 Uncertain 52 40.0 40.0 67.7 Disagree 20 15.4 15.4 83.1 Strongly Disagree 22 16.9 16.9 100.0 Total 130 100.0 100.0

The findings in table 4.25 reveals that 27.7% of respondents agree that they are

willing to pay a higher price for a DNA Test product or services as compared to other

competitive offerings, 40% are uncertain, 15.4% disagree, and 16.9% strongly

disagree. Management of DNA Test 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 favourite brand because they are less price

sensitive than non-loyal brand consumers. (Median = 3 and Standard Deviation of

1.034, n = 130)

Table 4.26 I will recommend DNA Test service and products to others I will recommend DNA Test service and products to others

Frequency Percent Valid Percent Cumulative Percent Strongly agree 63 48.5 48.5 48.5 Agree 58 44.6 44.6 93.1 Uncertain 9 6.9 6.9 100.0 Total 130 100.0 100.0

The findings in table 4.26 reveals that 48.5% of respondents strongly agree that they

will recommend DNA Test service and products to others, 44.6% agreed, and 6.9%

were uncertain. Consumers are driven to promote brands by word of mouth due to

social, functional, and emotional factors. The majority of the respondents

cumulatively agree to recommending DNA Test service and products to others. Once

consumers make a decision to buy a product, they start with an initial consideration

56    

set of brands formed through product experience, awareness and recommendations. It

is critical for management of DNA Test to leverage this high recommendation to

build its brand. (Median = 2 and Standard Deviation of 0.620, n = 130)

4.7. Research Correlations The aim of the research correlations is to show the relationships and analysis of

elements of the marketing mix elements with certain aspects of the marketing

literature. The 4P’s of marketing mix elements namely Place, Price, Promotion,

Product, are analysed. A brief meaning to the elements of the 4P’s and customer

response are given followed by the statistical calculations and analysis.

Tables 4.27 to 4.49 present the relationships analysis using the IBM SPSS 21software

package. “N”, represents the number of respondents (frequency) to each option of the

questionnaire. The “Mean Rank” is a method of showing data which has the same

observed frequency, occurring at two or more consecutive ranks. The mean rank

consists of assigning the average of the ranks as the rank for the common frequency.

Kruskal-Wallis is a non-parametric (distribution free) test, which is used to compare

groups of the sample data. The results of the Kruskal-Wallis test is shown as a value

of Chi-Square, df (degrees of freedom), Asymp Sig (asymptotic significance), Exact

Significance and Probability Point. The Chi-Squared test of independence is used to

determine if there is a significant relationship between two variables. The frequency

of one variable is compared with the different values of the second variable. If the null

hypothesis is accepted, there is no relationship. If the null hypothesis is rejected the

implication is that there is a relationship.

4.7.1. Place

Tables 4.27 to 4.31 looks at the correlation of place and the relationship with the

elements of the literature. Place refers to providing the product at a point of sale

which is convenient for consumers to access. Various strategies such as intensive

distribution, selective distribution, exclusive distribution and franchising   is to be used

to complement the other aspects of the marketing mix.

57    

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.

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

N Mean Rank Strongly Agree 13 56.50 Agree 21 88.43 Uncertain 54 61.08 Disagree 42 62.50

DNA Test sells a product or service of high quality

Total 130 Test Statisticsa,b

DNA Test sells a product or service of high quality Chi-Square 13.525

df 3 Asymp. Sig. 0.004 Exact Sig. 0.003 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands Table 4.27 reveals that there is a significant association between “the pharmacies or

website where I can buy DNA Test products or services sell a wide range of well-

known brands” and “DNA Test sells a product or service of high quality”)H(3) =

13.525, p = 0.003)The image of a channel member is influenced by the product or

service which it sells. The significance of this association shows that quality of the

product is leveraged by the high perceived quality of the channel partner. This means

that DNA Test benefits from the pharmacies and websites which sell its product or

service.

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

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

N Mean Rank Strongly Agree 13 61.54 Agree 21 70.40 Uncertain 54 64.22 Disagree 42 65.92

DNA Test product or service would be my first choice should I require another DNA Test

Total 130

58    

Test Statisticsa,b DNA Test product or service would be my first choice should I require

another DNA Test Chi-Square 0.854 df 3 Asymp. Sig. 0.837 Exact Sig. 0.839 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands Table 4.28 reveals that there is no significant association between “the pharmacies or

website where I can buy DNA Test products or services sell a wide range of well-

known brands” and “DNA Test product or service would be my first choice should I

require another DNA test”(H(3) = 0.854, p = 0.839). The significance of this

correlation analysis is that even though customers agree that DNA Test would be their

first choice if they required another DNA Test, customers would not necessarily make

the purchase from the same pharmacy or website.

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

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

N Mean Rank Strongly Agree 13 24.65 Agree 21 36.67 Uncertain 54 62.56 Disagree 42 96.33

The pharmacies where I can buy DNA Test products or services sell well known brands

Total 130 Test Statisticsa,b

The pharmacies where I can buy DNA Test products or services sell well known brands

Chi-Square 65.630 df 3 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands Table 4.29 reveals that there is a significant association between “the pharmacies or

website where I can buy DNA Test products or services sell a wide range of well-

59    

known brands” and “The pharmacies where I buy DNA Test products or services sell

well known brands”(H(3) = 65.630, p = 0). The significance of this correlation shows

reason to buy. Findings from this study has shown that the perceived quality of a

brand give sufficient reason-to-buy. Ultimately perceived quality is linked to the

purchasing decision. Management of DNA Test need to understand perceived quality

and identify and measure the underlying dimensions.

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.

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

N Mean Rank Strongly Agree 13 36.00 Agree 21 81.50 Uncertain 54 61.68 Disagree 42 71.55

I consider myself to be loyal to the DNA Test brand

Total 130 Test Statisticsa,b

I consider myself to be loyal to the DNA Test brand Chi-Square 16.340 df 3 Asymp. Sig. 0.001 Exact Sig. 0.001 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands In contradiction to table 4.28, where is was revealed that there is no significant

association between the channel partner choosing DNA Test service or product,

should the customer require DNA Test product or service, table 4.30 reveals that there

is a significant association between “the pharmacies or website where I can buy DNA

Test products or services sell a wide range of well-known brands” and “I consider

myself to be loyal to the DNA Test brand”(H(3) = 16.340, p = 0.001). This is

significant as brand awareness can be attributed to brand loyalty. Brand awareness is

the consumers ability to recognise or recall that a brand is a 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

60    

brand is recognized. Management of DNA Test can leverage of this opportunity by

further enhancing its product placement at stores and on the website which sells its

product and services.

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.

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

N Mean Rank Strongly Agree 13 69.00 Agree 21 96.14 Uncertain 54 46.98 Disagree 42 72.90

I am aware of the DNA Test brand

Total 130 Test Statisticsa,b

I am aware of the DNA Test brand Chi-Square 35.575 df 3 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands Concurring with table 4.30 and its findings, table4.31 reveals that there is a significant

association between “the pharmacies or website where I can buy DNA Test products

or services sell a wide range of well-known brands” and “I am aware of the DNA Test

brand” H(3) = 35.575, p = 0

4.7.2. Price Tables 4.32 to 4.35 analyses the correlation that prices has on certain elements of the

research literature. Price is the amount a customer pays for the product. The price is

very important as it determines the company's profit. Adjusting the price has a

profound impact on the marketing strategy, and depending on the price elasticity of

the product, often it will affect the demand and sales as well. Price is set so that it

complements the other elements of the marketing mix.

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

The price of DNA Test service or product is value for money

N Mean Rank Strongly Agree 65 73.79 Agree 47 58.28 Disagree 18 54.42

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands e pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

Total

130

Test Statisticsa,b The pharmacies or website where I can buy DNA Test products or services

sell a wide range of well-known brands Chi-Square 7.235 df 2 Asymp. Sig. 0.027 Exact Sig. 0.026 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The price of DNA Test service or product is value for money Table 4.32 reveals that there is a significant association between “The price of DNA

Test service or product is value for money” and “The pharmacies where I buy DNA

Test products or services sell well known brands”(H(3) = 7.235, p = 0.026)Table 4.32

is significant as the way the product is distributed including the place where it is

offered for sale and the reputation of the reseller, along with the experience with the

purchasing process is important because it impacts customers’ feelings about the

product and how it positions in their minds. Management of DNA Test need to further

enhance the purchasing experience of their customers, as this will further enhance its

brand equity.

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

The price of DNA Test service or product is value for money

N Mean Rank Strongly Agree 65 46.57 DNA Test product or service would

be my first choice should I require Agree 47 75.88

62    

Disagree 18 106.75 another DNA Test of well-known brands Total 130

Test Statisticsa,b DNA Test product or service would be my first choice should I require

another DNA Test Chi-Square 62.603 df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The price of DNA Test service or product is value for money Table 4.33 reveals that there is a significant association between “The price of DNA

Test service or product is value for money” and “DNA Test product or service would

be my first choice should I require another DNA Test.”(H(3) = 62.603, p = 0). Repeat

business is the hallmark of a stead customer that is highly valued by any business. The

literature from this study confirms that repeat customers require minimal marketing

efforts to retain. This is significant as the customers of DNA Test see the product and

service as being value for money.

Table 4.34 The price of DNA Test service or product is value for money / DNA

Test provides excellent quality.

The price of DNA Test service or product is value for money

N Mean Rank Strongly Agree 65 47.78 Agree 47 78.89

DNA Test provides excellent quality

Disagree 18 94.50 Test Statisticsa,b

DNA Test provides excellent quality Chi-Square 36.340 df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The price of DNA Test service or product is value for money Table 4.34 reveals that there is a significant association between “The price of DNA

Test service or product is value for money” and “DNA Test provides excellent

quality.”(H(3) = 36.340, p = 0). Value for money is important, because in most

markets there is room for products of different overall levels of quality, and the

customer must be satisfied that the price fairly reflects the quality. Quality will assist

management of DNA Test determine the businesses success through, customer

63    

loyalty, strong brand reputation, and as the product is perceived to be better value for

money, it will command a premium price and will become more price inelastic.

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.

The price of DNA Test service or product is value for money

N Mean Rank Strongly Agree 65 52.48 Agree 47 71.74 Disagree 18 96.22

I will recommend DNA Test service and products to others

Total 130 Test Statisticsa,b

I will recommend DNA Test service and products to others Chi-Square 26.384 df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable: The price of DNA Test service or product is value for money Table 4.35 reveals that there is a significant association between “The price of DNA

Test service or product is value for money” and “I will recommend DNA Test service

and products to others.”(H(3) = 26.348, p = 0). Consumers are driven to promote

brands by word of mouth, especially because they perceive the product to be value for

money. The majority of the respondents cumulatively agree to recommending DNA

Test service and products to others. Once consumers make a decision to buy a

product, they start with an initial consideration set of brands formed through product

experience, awareness and recommendations. It is critical for management of DNA

Test to leverage this high recommendation to build its brand.

4.7.3. Promotion Tables 4.36 to 4.39 looks at the correlation of promotion with certain aspects of the

research literature. Promotion refers to the methods of communication used to provide

information about the product. Promotion comprises elements such as: advertising,

public relations, personal selling and sales promotion.

64    

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.

DNA Test brand is advertised appropriately

N Mean Rank Strongly Agree 32 61.50 Agree 33 63.42 Uncertain 29 19.31 Disagree 14 106.07 Strongly Disagree 22 109.50

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

Total 130 Test Statisticsa,b

The pharmacies or website where I can buy DNA Test products or services sell a wide range of well-known brands

Chi-Square 101.533 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test brand is advertised appropriately Table 4.36 reveals that there is a significant association between “DNA Test brand is

advertised appropriately ” and “ The pharmacies or website where I can buy DNA

Test products or services sell a wide range of well known brands.”(H(3) = 101.533, p

= 0). Table 4.36 affirms the findings of this study, perceived quality provides an

important basis for position. A key positioning characteristic of a brand is its position

on perceived quality. The respondents surveyed agree that DNA Test brand is

advertised appropriately.

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.

DNA Test brand is advertised appropriately

N Mean Rank Strongly Agree 32 59.27 Agree 33 77.53 Uncertain 29 70.72 Disagree 14 72.00 Strongly Disagree 22 45.50

DNA Test product or service would be my first choice should I require another DNA Test

Total 130 Test Statisticsa,b

DNA Test product or service would be my first choice should I require another DNA Test

65    

Chi-Square 17.195 df 4 Asymp. Sig. 0.002 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test brand is advertised appropriately Table 4.37 reveals that there is a significant association between “DNA Test brand is

advertised appropriately” and “ DNA Test product or service would be my first choice

should I require another DNA Test.”(H(3) = 17.195, p = 0). Affirming the findings of

this study a repeat purchase is often a measure of loyalty to a brand by consumers. A

repeat purchase is the buying of a product by a consumer of the same brand name

previously bought on another occasion. The correlation findings of table 4.27 is

significant for management of DNA Test, as management should continue to follow

its current advertising policies.

Table 4.38 DNA Test brand is advertised appropriately / DNA Test provides

excellent quality.

DNA Test brand is advertised appropriately

N Mean Rank Strongly Agree 32 42.38 Agree 33 75.58 Uncertain 29 90.14 Disagree 14 94.07 Strongly Disagree 22 33.36

DNA Test provides excellent quality

Total 130 Test Statisticsa,b

DNA Test provides excellent quality Chi-Square 59.687 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test brand is advertised appropriately Table 4.38 reveals that there is a significant association between “DNA Test brand is

advertised appropriately ” and “ DNA Test provides excellent quality.”(H(3) =

59.687, p = 0). Achieving perceptions of quality is usually impossible, unless the

quality claim has substance. Management of DNA Test have understood that

producing a product of high quality requires an understanding of what quality means

to customer, as well as creating a supportive culture and a quality improvement

66    

process that enables the business to deliver quality products and services. Perceptions

must be created as well and perceived quality may differ from actual quality. Key

here is the appropriate advertising of the DNA Test brand.

Table 4.39 DNA Test brand is advertised appropriately / You particularly like the

DNA Test brand.

DNA Test brand is advertised appropriately

N Mean Rank Strongly Agree 32 32.89 Agree 33 72.95 Uncertain 29 71.34 Disagree 14 103.29 Strongly Disagree 22 70.00

You particularly like DNA Test as a brand

Total 130 Test Statisticsa,b

You particularly like DNA Test as a brand Chi-Square 45.317 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test brand is advertised appropriately Table 4.39 reveals that there is a significant association between “DNA Test brand is

advertised appropriately ” and “ You particularly like DNA Test brand.”(H(3) =

45.317, p = 0). A brand with strong brand equity, brings competitive advantage to the

consumer response and this is important in building brand equity. There is a

significant association between advertising and liking of the DNA Test brand and

management of DNA Test should persist with its current policies for advertising. This

will help build brand equity.

4.7.4. Product Table 4.40 to 4.43 analyses the correlation between the product and certain aspects of

the research literature. A product is seen as an item that satisfies what a consumer

needs or wants.

67    

Table 4.40 DNA Test product and service are efficient / I consider myself to be

loyal to the DNA Test brand.

DNA Test product and services are efficient

N Mean Rank Strongly Agree 40 42.30 Agree 52 59.02 Uncertain 38 98.79

I consider myself to be loyal to the DNA Test brand

Total 130 Test Statisticsa,b

I consider myself to be loyal to the DNA Test brand Chi-Square 56.566 df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test product and services are efficient Table 4.40 reveals that there is a significant association between “DNA Test product

and services are efficient” and “ I consider myself to be loyal to the DNA Test brand.”

(H(3) = 56.566, p = 0). Customer loyalty is a major strategic objective and focus in

marketing. The literature from this study shows that brand reputation is a major driver

of customer loyalty, and hence companies seek to increase the equity of their brands.

Further quality affects not only customer satisfaction, but also the reputation of the

brand. Hence brand reputation and customer satisfaction are important determinants

of customer loyalty. The analysis from table 4.40 reveals that DNA Test management

should continue to monitor and improve, its product and service efficiencies and

achieve customer satisfaction and brand loyalty.

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.

DNA Test product and services are efficient

N Mean Rank Strongly Agree 40 54.78 Agree 52 60.65 Uncertain 38 83.42

DNA Test product or service would be my first choice should I require another DNA Test

Total 130 Test Statisticsa,b

DNA Test product or service would be my first choice should I require another DNA Test

Chi-Square 19.131

68    

df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test product and services are efficient Table 4.41 reveals that there is a significant association between “DNA Test product

and services are efficient” and “ DNA Test product or service would be my first

choice should I require another DNA Test.” (H(3) = 19.131, p = 0). This is significant

to the building of brand equity. Management of DNA Test need to maintain the

current policy of relationships with their clients.

Table 4.42 DNA Test product and service are efficient/ You particularly like the

DNA Test brand

DNA Test product and services are efficient

N Mean Rank Strongly Agree 40 40.11 Agree 52 76.07 Uncertain 38 77.76

You particularly like DNA Test as a brand

Total 130 Test Statisticsa,b

You particularly like DNA Test as a brand Chi-Square 29.508 df 2 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:DNA Test product and services are efficient Table 4.42 reveals that there is a significant association between “DNA Test product

and services are efficient” and “ You particularly like DNA Test as a brand.” (H(3) =

29.508, p = 0). Consumers have a very clear idea of what is meant by a strong brand.

A brand with strong brand equity, brings competitive advantage to the consumer

response and this is important in building brand equity. Management of DNA Test

need to remain vigilant and understand that because its product and services are

efficient, brand equity is developed.

69    

4.7.5. Customer Response Table 4.43 to 4.45 looks at customer response and its relationship with certain aspects

of the research literature. Understanding brand equity from the consumer’s viewpoint

is useful because it determines individual plans for marketing tactics and strategies.

Table 4.43 I will use DNA Test product or service again / DNA Test sells a

product or service of high quality.

I will use DNA Test product or service again

N Mean Rank Strongly Agree 45 43.00 Agree 51 78.91 Uncertain 21 75.57 Disagree 7 101.50 Strongly Disagree 6 43.00

DNA Test sells a product or service of high quality

Total 130 Test Statisticsa,b

DNA Test sells a product or service of high quality Chi-Square 46.197 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:I will use DNA Test product or service again Table 4.43 reveals that there is a significant association between “I will use DNA Test

product or service again.” and “DNA Test sells a product or service of high quality.”

(H(3) = 46.197, p = 0). Table 4.43 is significant to management of DNA Test when

creating a strategic plan to generate repeat business as it is crucial to focus on quality

of the product and service. DNA Test need to continue their focus your efforts on

product and service presentation, product, cost/value relationship, and customer

service.

Table 4.44 I will use DNA Test product or service again / I consider myself to be

loyal to the DNA Test brand

I will use DNA Test product or service again

N Mean Rank Strongly Agree 45 53.20 I consider myself to be loyal to the

DNA Test brand Agree 51 55.56

70    

Uncertain 21 86.67 Disagree 7 123.50 Strongly Disagree 6 100.50

Total 130 Test Statisticsa,b

I consider myself to be loyal to the DNA Test brand Chi-Square 44.819 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:I will use DNA Test product or service again

The extent of the loyalty of consumers to the DNA Test brand is expressed through

their repeat purchases irrespective of the marketing pressure generated by the

competing brands. Table 4.44 reveals that there is a significant association between “I

will use DNA Test product or service again.” and “I consider myself to be loyal to the

DNA Test brand.” (H(3) = 44.819, p = 0). This correlation is significant in building

brand equity.

Table 4.45 I will use DNA Test product or service again / I am aware of the DNA

Test brand.

I will use DNA Test product or service again

N Mean Rank Strongly Agree 45 37.00 Agree 51 63.39 Uncertain 21 97.33 Disagree 7 127.00 Strongly Disagree 6 114.00

I am aware of the DNA Test brand

Total 130 Test Statisticsa,b

I am aware of the DNA Test brand Chi-Square 86.227 df 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 a. Kruskal Wallis Test b. Grouping Variable:I will use DNA Test product or service again Table 4.45 reveals that there is a significant association between “I will use DNA Test

product or service again.” and “I am aware of the DNA Test brand.” (H(3) = 86.227,

p = 0). The aim of any business is to increase sales and income, ideally through

attracting new customers and encouraging repeat business. The purpose of brand

71    

awareness is to make customers and potential customers aware of the business and its

products and services. There is a significant association in table 4.45, which means

that DNA Test has successful brand awareness and that its particular brand is

recognised by its past customers. Creating positive brand awareness has resulted in a

positive image of the brand, which is an important step in building brand equity. For

management of DNA Test, by creating positive brand awareness for the business, this

will ensure that its target audience recognises the existence, importance and

availability of its product and service.

4.8 Conclusion

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 research findings leads to the conclusion that DNA Test managers who are

engaged in brand management may use price level as an instrument for improving the

brand's perceived quality. The findings show that a higher brand price led to a higher

perceived quality, and a more positive perceived quality leads indirectly to an increase

in consumer response.

The research findings show that the marketing strategies currently employed by DNA

Test show a significant relationship between quality of service, customer response,

brand association, brand awareness and brand loyalty.

The research findings also show a significant relationship between perceived quality,

brand association and brand awareness. There also exists a significant relationship

between brand loyalty and consumer response.

The next chapter presents the conclusions, recommendations and scope for further

research.

72    

CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1. Introduction

In the previous chapter the findings of the study were analysed and interpreted. In this

chapter an overview of the study is provided together with the resulting conclusions

and recommendations. The chapter concludes with the limitations of the study, the

value of the study and recommendations.

5.2. Objectives of the study

The findings of the study are summarized in sections 5.3 to 5.4 and addresses the

following empirical objectives:

1. Examine the relationship between the marketing strategies and the perceived

quality of the service, consumer response, brand association, brand awareness

and brand loyalty.

2. Identify the important factors among the marketing mix elements on consumer

response

3. Identify the important factors among the brand equity factors on customer

response.

5.3. Findings from the study

Findings from the literature review and primary study will be discussed under 5.3.1.

and 5.3.2. respectively.

5.3.1. Findings from the Literature Review

Brand Equity - Brand equity is the positive distinctive effect that the brand name has

on customers response to the brands products or service. A brand that has high brand

73    

equity will enjoy high brand awareness, perceived quality and brand loyalty amongst

its customers.

Brand Loyalty- When a consumer has a positive experience with a brand, the

consumer will have an inclination to use the brand again. The performance of the

brand is a vital factor which influences the consumers loyalty to the brand. The major

factors that influence brand loyalty are the performance of the product, the

satisfaction of customers, price value, habit and the history of brand usage and brand

names.

Perceived Quality – Perceived quality is an intangible, overall feeling about a brand.

The perceived quality of a brand provides a central reason to buy. A perceivedquality

advantage gives the option of charging a premium price. 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 and so perceived quality differs from satisfaction and is an intangible

overall impression of the brand.

Brand Awareness - Brand awareness is the consumer’s ability to recognise or recall

that a brand is a member of a certain product category. Brand awareness is composed

of brand recognition and brand recall. Brand awareness provides the anchor to which

other associations can be linked. Raising brand awareness increases the likelihood that

the brand will be a member of the consideration set. Brand awareness can affect

decisions about a brand within the consideration set. Brand awareness affects

consumer decision making by influencing the formation and strength of brand

associations in the brand image.

Brand Association - Brand associations provide a relationship and differentiation

which is not replicable by competitors. Brand association may also relate to the

perceived quality of the brand. 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 a positive interaction with the product. Positive brand

association helps an organization to gain goodwill, and thwart a new competitor’s

74    

entry into the market.

Marketing Mix Elements-Marketing activities take on different forms. 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. Traditionally referred to as the 4 P’s of

marketing namely, price, place, promotion and product.

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.

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.

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).

Advertising Spend - Advertising researchers have identified that advertising is

successful in generating brand equity (Boulding, Lee and Staelin, 1994:35). Simon

75    

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 plays a

significant role in increasing brand awareness as well as creating powerful brand

associations. It can be deduced that a greater amount of advertising relates positively

to brand awareness and associations, which leads to greater brand equity.

Price Promotion - Price promotion is a short-term price reduction such as special

sales. It 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. A perception of bad quality may result due to frequent price promotions.

Relying on sales promotion and sacrificing 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.

Consumer-based Brand Equity - Customer based brand equity results in the creation

of a strong brand. 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 and what they have learned about the brand over time and what

they have experienced with the brand.

5.3.2. Findings from the Primary Research

The findings from this study affirms the aim of any business should be to increase

sales and income, this is achieved through attracting new customers and encouraging

repeat business. The purpose of brand awareness is to make customers and potential

76    

customers aware of the business and its products and services. By employing brand

awareness DNA Test can successfully ensure that its brand is recognized and well

known. This is crucial in differentiating its business from its competitors in a highly

competitive environment.

The findings of the primary research shows that creating positive brand awareness

requires creating a positive image of the DNA Test brand, which is one of the most

important steps in building a successful business whilst targeting the right audience.

DNA Test operates in a competitive market with similar businesses whom have

similar products and services, there are few factors that differentiate its product or

service from its competitors. Therefore, confirming the findings of this study DNA

Test will need to maintain its product and service so that it maintains the highest

positive brand awareness compared to its competitors. By creating positive brand

awareness DNA Test, will ensure that its target audience (and others) recognises the

existence, importance and availability of its product. Positive brand awareness will

familiarise target markets with its product.

The results of this study indicate that the marketing mix elements could positively

affect the brand equity. Different marketing mix elements impact the creation of

brand equity at different levels of intensity. Some elements of the marketing mix can

negatively affect the creation of brand equity. For instance, given that a higher brand

price could lead to a more positive perceived brand quality is fully supported.

Therefore, it is possible that a lower brand price could result to a lesser brand quality.

In general, Price and Store image could positively affect the perceived quality, and

indirectly positively affect the consumer response. Higher intensity of marketing

activities positively affects brand equity (perceived quality, brand association, brand

awareness, and brand loyalty) as it positively affects consumer response.

Distribution intensity has a very small influence on brand equity. Price promotion has

no significant affect on brand equity whereas brand loyalty shows the highest

relationship with customer response. Aside from the fact that advertising spending

could result to higher brand equity, the study reveals that advertising spending has the

highest relationship with customer response, followed by store image, price and

distribution intensity.

77    

Further the findings demonstrate that brand equity is defined in terms of the

marketing effects uniquely characteristic of the brand. Although a number of different

views of brand equity have been expressed there is a general consensus that brand

equity represents the added value of the product and service as a result of past

investments in the marketing efforts of DNA Test. Brand loyalty represents a

favourable attitude towards DNA Test resulting in repeat purchase of the brand. This

is the result of consumers’ learning that DNA Test can satisfy their needs.

Brand equity is built by creating positive brand evaluations with a quality product and

service, by creating manageable brand attitudes which will have the most impact on

consumer purchase behaviour, and by developing a consistent brand image to form a

relationship with the consumer. DNA Test could measure its brand equity by the

incremental cash flow from associating its brand with the product and service.

Incremental cash flow will result from premium pricing and reduced expenses. The

literature from this study states that there is little consensus about how brand

performance should be measured, however brand equity creates advantages and

benefits for the business and the consumer. From DNA Test’s perspective brand

equity results in competitive advantages for the business.

5.4. Research Limitations

Although this study provides theoretical and substantive explanations about the most

influential factor of the marketing mix elements on brand equity, the brand equity on

customer response and marketing mix elements on customer response, there are still

some limitations that need to be considered.

1. This research gathered a total of 130 survey participants, the researcher is therefore

cognizant that the total number of survey participants in this study may not be enough

for the purpose of a nation-wide research.

2. This research was restricted only to customers who have used the product or

service of the brand under investigation.

78    

5.5. Recommendations and conclusion

The results and conclusion have several important implications for brand

management. All activities intended at impacting the consumer response should

paying attention at increasing brand equity, especially on improving brand loyalty,

which has been shown to have the foremost relationship with consumer response.

Furthermore, management in their efforts to obtain positive brand loyalty, should

primarily focus on an investment in advertising spending because the findings of this

research has shown that the higher the intensity of marketing activities, the more

positive the brand loyalty.

The research findings leads to the conclusion that DNA Test managers who are

engaged in brand management may use price level as an instrument for improving the

brand's perceived quality. The findings show that a higher brand price led to a higher

perceived quality, and a more positive perceived quality leads indirectly to an increase

in consumer response.

The brand is a essential asset for the company and should build long-term equity. The

brand will not automatically be recognised by the consumers as management set out

to achieve. It requires a brand identity strategy with a convergent plan of activities to

impact or influence perceptions. The following must be considered when managing

the brand in the future to move from the current position to the desired outcome:

- Leverage the existing brand equity to increase DNA Test’s value by broadening its

appeal to more consumers over across different situations.

- Be sensitive to the right activities, focus on activities and promotions that re-enforce

and enhance the brand’s identity and equity.

- Make informed decisions by understanding the implications of the brand identity

strategy on consumer perceptions.

- Be aware of drivers and challenges by understanding what will create increased

equity for consumers in the target market and what will diminish the equity.

- Prioritize resources by maximising the impact of the brand identity strategy elements

that are most likely to create brand equity.

79    

The research findings lead us to suggest to DNA Test management that they should

use the pharmacy and website image as an instrument for improving the brand's

equity. An especially important implication for the practice of brand management is

the fact that the image of pharmacies in which a brand is sold has a strong positive

impact on brand equity. This result underlines the importance of managements’ active

approach in selecting and designing distribution channels. Management may

contribute to an increase in brand equity through the intensity of marketing activities,

since the quality and the intensity of marketing activities, positively affects the

creation of brand equity, which in turn results in an increased consumer response.

Additionally, the advertising spending of a brand should be allocated with greater

measurements.

The research findings show that DNA Test management should be circumspect when

applying price promotion as a marketing mix element. Even though price promotion

may lead to certain short-term financial gains resulting from a short-term sales

increase, frequent use of this marketing mix element in the long run may cause a

reduction in consumer response because of the negative influence of price promotion

on perceived quality and brand association, and this may reduce the long-term

benefits of DNA Test.

80    

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Appendix A - Covering Letter to respondent

Research Questionnaire Date:………………………………………… Dear Respondent An evaluation of the role of marketing strategies in developing brand equity of a DNA forensic and relationship testing company. I am an MBA student at the Regent Business School and I am engaged in a study on the above-mentioned topic. The aim of this study is to evaluate the role of marketing strategies in developing brand equity. DNATest is the organisation being used for the study. Your response to the questionnaire will assist in determining the strategies that may be implemented to improve service delivery as well as the company`s competitiveness in delivering quality products and services. Your cooperation in completing the attached questionnaire will be highly appreciated. All responses will be STRICTLY CONFIDENTIAL. Results will be presented as a summary of all respondents. Due to time constraints for the completion of this study, I humbly appeal to you to complete this questionnaire within a week of receipt and email it to nevin.pillay@dnatest.co.za or fax them to my attention on 0865170070. Please note that arrangements can also be made with the researcher for collection of the completed questionnaire. My sincere appreciation and indebtedness for your participating in this research. Your input is invaluable and will benefit in bring together practical and applicable recommendations. Should there be any queries, concerns or suggestions regarding this study, please contact the researcher, Nevin on 082 848 8543 or 031 566 4355. Thank you for the support Nevin Pillay MBA Student: Regent Business School Contact Numbers: 082 8488543 / 031 5664355 Fax Number: 0865170070 Email: nevin.pillay@dnatest.co.za

87    

Appendix B - Questionnaire

Instructions

This questionnaire is designed to gain your perception on forms of retention strategies

that enable you to stay motivated in the work place, achieve higher productivity and

remain committed to your employer. There are no incorrect answers and your

anonymity is ensured.

Section A

Please place an (X)

Questions Fe

mal

e

Mal

e

1 Your gender

Questions

Und

er 2

5

25 to

30

30

to 4

0

40 to

50

Abo

ve 5

0

2 Age

Questions

Sing

le

Mar

ried

Div

orce

d

Sepa

rate

d

3 Martial status

88    

Section B

Please place an (X) in the box that most accurately reflects your view.

Questions

Stro

ngly

A

gree

Agr

ee

Unc

erta

in

Dis

agre

e

Stro

ngly

D

isag

ree

4 The price of DNATest service or product is high.

5 The price of DNATest service or product is expensive.

6 The price of DNATest service or product is low.

7 DNATest sells a product or service of high quality.

8 The pharmacies or website where I can buy DNATest products or services are of high quality.

9 The pharmacies where I can buy DNATest products or servicessell well known brands.

10 DNATest brand is advertised appropriately.

11 The adverts for DNATest products and services seem expensive.

12 I consider myself to be loyal to the DNATest brand.

13 DNATest product or service would be my first choice should I require another DNA test.

14 I will use DNATest product or service again.

15 I can recognise the DNATest brand among competitive brands.

16 I am aware of the DNATest brand.

17 DNATest provides excellent quality.

18 DNATest products and services are trustworthy.

19 DNATest products and services are value for money.

20 You particularly like the DNATest brand.

21 DNATest has a good reputation.

22 DNATest is a brand leader.

23 DNATest offers high quality.

24 DNATest products and services are dependable.

25 DNATest products and services are reliable.

26 Are you willing to pay a higher rice for a DNATest product or service as compared to other competitive offerings.

27 I will recommend DNATest service and products to others.

28 If someone consults me, I would advise them to use DNATest products and services.

Thank you for your valuable time!!!

89