CHAPTER TWO

INTRODUCTION

This chapter examined brand equity theory as well as associated research on brand equity

measurement, customer behavior, and decision-making processes.

2.2 Theoretical Perspective of the Study

In order to describe brand equity, various models have been utilized. The Brand Asset Valuation

(BAV) model, the Consumer-Based Brand Equity (CBBE) model, and the Five Asset Brand

Equity model were all covered in this study.

2.2.1 Brand Asset Valuator (BAV)

The Brand Asset Valuator is an advanced brand equity model created by the advertising firm

Young and Rubicam (Y&R) (BAV). This methodology is based on the idea that brand value may

be calculated using consumers' perceptions of common brand attributes. The Brand Asset

Valuation (BAV) model demonstrates how a brand's relationship with consumers changes over

time. Four pillars, namely distinction, relevance, esteem, and knowledge, serve as the foundation

of this relationship. Each pillar is developed and evaluated based on various facets of consumer

perceptions of the brand. The pillars work together to form a brand's development progression.

How unique a brand is and how it differs from other brands are both aspects of differentiation.

Such a brand ought to be distinct enough to prevent confusion with those of rivals. While Esteem

refers to a brand's likeability and degree of respect, Relevance is the perceived value and ability

of a brand's appropriateness to the user. Knowledge refers to how much is known about a brand,

or how familiar and aware people are of it. These four factors combine to form a "pillar pattern,"
which is a crucial analytical tool for assessing the "health" of the brand as it develops, as well as

its capacity to fetch a high price and "fend off competitors" (Balbaki, 2012).

2.2.2 Consumer Based Brand Equity (CBBE) Model

Keller (1998) had used CBBE model to analyze brand equity from the perspective of the

consumer. When a customer uses or experiences a brand, they go through four processes, which

are essentially inquiries. Brand identity, brand meaning, brand reactions, and brand interactions

are the steps. These steps, which are also known as the "branding ladder," are further broken

down into six pieces, or "brand building blocks," and when combined, they create a pyramidal

structure (Keller, 1998).

The first component of the brand pyramid, brand salience, refers to how familiar customers are

with a brand. The second building block, brand performance, describes how well a brand fulfills

a consumer's functional needs or its intended purpose. The third component, imagery, focuses on

meeting the psychological demands of customers, whereas judgements deal with how people

perceive a brand. The next topic is brand sentiments, which is concerned with how consumers

feel and respond to a brand. Resonance with the brand is the last component. The highest level of

brand equity is the bond or connection that consumers form with a product or service. When

consumers are totally engaged, brands can resonate with them.

2.2.3 Five Asset Model of Brand Equity

Awareness, affiliation, perceived quality, devotion, and proprietary assets like patents and

trademarks are the five components of brand equity (Aaker,1992). Brand association is the

strength of a brand name and may be determined by how recognizable and "liked" the brand is

by consumers. Brand awareness is the ability of a potential customer to recognize or remember a

brand that belongs to a specific class of products. Association demonstrates brand loyalty and

attention while making purchases. Brand loyalty is the degree to which people are devoted to a

brand, whereas perceived quality is the extent to which a brand is perceived to give quality.

Trade leverage, lower marketing spend, and an influx of new clients are signs of brand loyalty

for businesses. Patents and trademarks are examples of exclusive brand elements that are crucial

to maintaining a company's competitive edge and consumer loyalty. According to Aaker (1992),

the five assets model shows how brand equity gives the business and the customer value.

Customer value is also important for a company's value.

2.3 Empirical Review

The purchasing patterns of the user or buyer are known as consumer buying behavior. Users are

customers who purchase goods and services for their own use or for use in their homes (Pride &

Ferrel, 1997). The consumer may more easily connect a brand's exclusive assets, such as the

brand name and emblem, to the associations they have with it when they are aware of it. There

are three types of brand awareness: "recognition, recall, and top-of-mind" (Keller, 1998). The

first, called recognition, involves being familiar with a brand. An earlier exposure to the brand

may have contributed to recognition. This occurs when a customer can recall and recognize a

brand among other brands that are similar.

The second, brand recall, refers to a brand that is thought of when its product category is

mentioned. In the absence of any cues, this occurs. The final category that comes to mind first

when the product class is stated has to do with the brand. It also has the highest level of

awareness (Keller 1998). Brand awareness is frequently neglected, therefore (Aaker, 1996)
contends that businesses should consistently build consumer recognition of their brands and

make their purchases memorable.

The term "perceived quality" describes how a buyer perceives a product's overall quality. The

good or service must be of the highest caliber, consistent with its primary purpose, and unique

from similar offerings. Different brand attributes are viewed differently by consumers. (1996)

Aaker identifies three levels of analysis. Consumers' perception of a product's quality at its most

basic level, which can be poor, medium, or high, is absolute. Consumers can perceive a product's

quality as relative on the second level.

The level to which a brand is chosen and favored above its rivals is known as brand loyalty.

Brand loyalty, in Aaker's opinion, is what makes brand management vital and decisive. A

company can tell if a consumer is loyal by seeing if they continue to favor its products over

competing ones. Marketers need to be aware of the characteristics of brand equity and the impact

that brand properties have on consumer decisions, according to Yoo et al. Yoo et al. (2000) add

that brand loyalty has the ability to persuade customers to keep purchasing the same product and

refrain from choosing rival brands.

There are two different categories of devoted clients: behavioral and emotional. Consumers that

often buy a particular brand and are dedicated to doing so are said to exhibit behavioral customer

loyalty. Customers that are emotionally or cognitively motivated to do so will frequently make

that brand their first choice. Keller (1998) contends that businesses and marketers should use

their brands to their advantage so that consumers will choose them first and continue to buy

them.
The signals and indications that a customer associates with a brand when exposed to it are

referred to as brand association. According to Keller (2003), a brand's influence "resides in the

brains of the customer," and brand associations can be formed, strengthened, or altered as a

result of consumer interactions with or use of the brands. Therefore, associations that are potent

and distinctive will have positive benefits on brand equity. Attributes, advantages, and attitudes

are the three categories of association that Keller (2003) distinguishes. The strength and special

qualities of these relationships differ.

A brand's attributes might be either product- or non-product-related. Product attributes include a

product's design and performance, whereas non-product attributes include external factors like

cost, consumer perceptions, and packaging that have an impact on how much of a product is

bought and consumed (Keller, 1993). The second kind of relationship is one with benefits.

Consumers ascribe these values and meanings to goods and services. Benefits can be functional,

which refer to a product's primary objective, symbolic, which refers to the consumer need that

the product is intended to satisfy, or experiential, which refers to the emotions and sensations

induced by brand experiences. The third type of association, brand attitude, is essentially

consumer brand evaluation.

Conceptual framework

PERCEIVED
QUALITY

BRAND PURCASING
LOYALTY CHOICE

PERCEIVED
QUALITY

BRAND
ASSOCIATI
ON

The concept depicts brand equity in four different ways. They consist of perceived quality, brand

awareness, brand loyalty, each of which will be evaluated independently for how it influences

consumer decision.
 CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

The research approach was described in this chapter. This comprised the population, the

sampling strategy, the mode of data collecting, and the data analysis.

3.2 Research Design

Cross-sectional research design was used in this study. Cross-sectional research offers a

minimally biased representation of the entire population as well as a snapshot of what is

happening in a group at a specific moment. A cross sectional study must clearly specify the who,

when, where, what, why, and how because it is descriptive in nature. Kothari (2004) claims that

the design is adaptable. This enables the researcher to take into account various aspects of a

problem and allows for the development of fresh ideas and insights into a problem.

3.3 Population

3.3.1 Target Population

The population of interest in the area of study was pay TV subscribers in Tana River

3.4 Sampling

3.4.1 Sampling Design

According to Pearson (2016), sampling allows one to focus on data from a subgroup rather than

all potential cases or elements, which reduces the amount of data that needs to be collected. The

study used stratified sampling because it provides greater representation of the population

through a divided structure that includes a wider range of demographics. It is less likely to omit
significant subgroups of the population being studied. To reflect the population, the study chose

100 pay TV subscribers from Tana River. According to Ruscoe (1975), a sample size of 30 to

500 is suitable for the majority of academic studies. Public spaces and Pay TV merchant shops

were the two main strata into which the population of interest was split.

3.4.2 Sample size

To reflect the population, the study chose 100 pay TV subscribers from Tana River

3.5 Data Collection and data instrument.

3.5.1 Data Collection Method

Primary sources served as the foundation for the data collection, which was done using well-

structured questionnaires. In-depth responses to questions are provided by questionnaires, claim

Mugenda & Mugenda (1999). They are also commonly utilized for data collection. Due of how

simple it is to produce and disseminate questionnaires, they are also helpful in the interpretation

process. There were two sections on the research questionnaires. The first section asked both

open-ended and closed-ended questions about the respondents' demographics. Section 2 focused

on how brand equity properties influenced pay TV subscribers' purchase decisions.

The researcher gathered the data for this part using questions on a five-point Likert scale.

Indicating their level of agreement, neutrality, or disagreement with the questions asked allowed

respondents to react. The researcher sought potential respondents and evaluated their suitability

and willingness to participate in the study with the aid of assistants. The researchers asked

willing and qualified participants to fill out surveys and return them to them once finished.
3.5.2 Data collection Instrument

In this section, the researcher used the Five-point Likert scale questions to collect the

information

3.5.3 Reliability and validity

3.5.3.1 Reliability

If an instrument consistently produces the same results when used to gather data from various

samples taken from the same population throughout time, it is said to be trustworthy (Mugenda

and Mugenda 1999). Internal consistency was assessed using the Cronbach alpha coefficient to

assess reliability. Brand awareness had an alpha coefficient with a value of 0.560, association

with the brand had a value of 0.609, loyalty had a value of 0.601, perceived quality had a value

of 0.702, and purchase decisions had a value of 0.603. Cooper and Schindler (2003) claim that an

alpha value of 0.5 or higher is sufficient proof of the reliability of the data.

3.5.3.2 Validity

The degree to which an instrument measures what it is meant to measure is known as validity.

By sending questionnaires to a small sample of five respondents who shared the same

characteristics as the study's target population in order to establish validity, the researcher

conducted a pilot test. This was done to see if the study's goal will be met in terms of relevance

and question clarity.

3.6 Data Analysis and Presentation

Statistical Package for Social Science was used to code, update, and analyze the data that

was obtained (SPSS). Data were analyzed using descriptive statistics, which made use of

discussed percentages and frequencies. Additionally computed and analyzed were the overall

mean scores, standard deviations, and purchase options for brand equity properties. The

relationship between the dependent and independent variables was demonstrated using

regression analysis, and the relationship between brand equity characteristics and purchase

decisions was assessed using the Pearson correlation coefficient

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