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The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- A Study on Cosmetic Products: Evidence from Pakistan
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Accounting & Marketing

ISSN: 2168-9601

Open Access

Review - (2021) Volume 10, Issue 3

The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- A Study on Cosmetic Products: Evidence from Pakistan

Tanveer Bagh1*, Ubaid Aslam2 and Syed Jawad Hasnain3
*Correspondence: Tanveer Bagh, MS/MPhil Finance and Management Sciences at Riphah International University Islamabad.... Master of Business Administration/MBA Finance, UA, J&K, Ukraine, Tel: +92 306 5147793, Email:
1MS/MPhil Finance and Management Sciences at Riphah International University Islamabad and Master of Business Administration/MBA Finance, UA, J&K, Ukraine
2MBA/M-Phil (HRM) Department of Business Administration, Kotli, University of Azad Jammu and Kashmir Muzaffarabad, Ukraine
3MBA/MS (Marketing) Army Public College of Management Sciences (APCOMS) Rawalpindi, Affiliated With UET Taxila, Ukraine

Received: 08-May-2020 Published: 30-Mar-2021 , DOI: 10.37421/2168-9601.2021.10.318
Citation: Tanveer Bagh, Ubaid Aslam and Syed Jawad Hasnain. The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- A Study on Cosmetic Products: Evidence from Pakistan. J Account Mark 10 (2021): 318.
Copyright: © 2021 Bagh T, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Abstract

In today’s fierce competition media landscape where it’s very challenging to shape consumers attitude and intentions and move them to next level of buying process, advertisers find it even more difficult and challenging to break through the clutter of competing advertisement. The advertising industry has experienced dynamic changes over the last several decades. The changes have been good in terms of Technology advancement, Medium and more methods to attract consumers and on Creativity. This study represents how creativity impacted advertising, also understanding the value of creativity in advertising through the review of various literatures. The importance of creativity factor in advertising has got wide recognition by many researchers, practitioner, but there is a miss of true & systematic research to define advertising creativity and how it relates to ad effectiveness. The review study discusses some campaigns that have left their strong impression on consumers. The presented review study tries to come up with some evidence of creativity by reviewing expert views, past literature in advertising, studied advertising campaign and marketing activities. The study discusses different forum on how creativity works, and what makes an ad to travel good or poorly. It summarized the value of creativity in advertising through Expert interviews, published material and related secondary data to understand the logic.

Keywords

Advertisement • Price and brand endorser • Consumer brand switching • Cosmetic products

Introduction

In today’s fierce competition it is observed that people switch to shampoo brands & the reason for the switching are many factors that affect consumer decision to switch from one brand to another. Since it’s the matter of hair care &everyone wants their hair to look good & remain healthy as long as possible, there are number of players in the market who are providing hair care products to the customers. Shampoos are the products which are used by every age group of people, irrespective of their social status & their gender too. Not only the females but also the males are very much conscious about protecting their hairs, everyone wants to use the best shampoo so that they could have the healthy hair for the lifelong. Shampoos have now become a routine product which is now used by everyone, though if we see in the past so it was not famous enough & a particular class used to use shampoo. In addition,there are number of reasons that people prefer using shampoo for, like for some people hair fall is the reason to use shampoo, some people use because they want to have shiny hairs, some people use shampoo for removing dryness from their hairs & there are some people who use shampoo so that they could maximize the length of their hair, it does not only end here, shampoo is also used for the scalp disease problems & there are many medicated shampoo available in the market which are prescribed by doctors to avoid scalp skin disease.

To that respect, there are number of factors which help consumer in choosing their desired brands. Shampoo manufacturers have worked so hard to maintain their market position & they spend lot of money on building their brands, keeping in mind the factors that help consumer in choosing any particular brand. While buying any shampoo the ultimate thing that the consumer has in his or her mind is the benefit that he/ she could achieve by using it, & if they don’t find that benefit so they easily switch that brand. Because hair are one the most delicate thing to deal with & no one wants to take risk with their hair.

In addition to this, there are lots of variants available in shampoos which are trying to satisfy as much consumer needs as possible. Every shampoo is trying to get the maximum share out of the market & to do so they are innovating not only in the manufacturing process of shampoo but also the marketing campaigns & other post purchase activities. Different events are also organized which provide consumer a solution to their hair related problems free of cost, these promotional activities bring the consumer closer to the brand & they are able to know the brand more closely & also the different aspects of the brand.

In addition to this, As we can find that there are three kinds of brands Imported, Multinational Brands & the Local one, consumer has mindset that Imported & MNC’s brands can give them more benefit than the local one. The current players in the industry are fighting hard to reduce the increasing customers of the imported brands, since the price is also negligible that consumer is ready to pay a little high to use that imported brand.

Moreover, Shampoo manufacturers are not only facing the threat of imported shampoos but also the threat of new entrants in the market which can easily get he shares of the market. Consumers are quickly attracted towards the new product & they want to try it & if this product is from a famous organization brand, so it will be welcomed with open arms by the consumers, these new entries easily get the consumers of old brands if they are advertised, promoted & projected well in front of the consumers. Shampoo users switch their brands if they know from someone that there is new launch in the market & it is giving very good results.

Gap Analysis

Mainstream of the key expansion in management ground are based on research conducted in United States [1]. Studies enlightening the effect of advertisement, price and brand endorser on customer brand switching are mostly grounded on the characteristics and culture of individuals of developed countries. Hofstede and Minkov [2] have shown that behaviors of individuals diverge across different cultures. According to research idiosyncratic market sectors necessitate different market strategies to make the customer switch their brands and same strategy cannot be selected for every sector. Switching cost, risk involvement and market stability are held responsible in determining the strategy chosen [3]. Correspondingly the strategies which are used to develop consumer brand switching may not be practically pertinent in Pakistan society. There are not much of studies done on the topic of consumer brand switching with respect to Pakistan market and with respect to the topic the cosmetic products especially shampoos are often neglected by the researcher in this context. This study will help to fill this gap and will be of valuable for the future researcher, consumer and cosmetic organizations.

Problem Statement

The problem statement is to be studied in this research “The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switchinga Study on Cosmetic Products: Evidence from Pakistan” and to pin point that how advertisement affects the brand switching. The study conducted to highlight the following questions: Are advertisement decrease the customer brand switching? Is there is a positive or negative relationship between price and customer brand switching and what is the role of product in the customer mind? Does brand endorser effects the customer brand switching and what is relationship between them? Does advertisement plays a vital role in the perspective of marketing in the customer mind and how it effects to the customer to buy the product?

Study Objectives

The main purpose of this study is to fill the above presented research gap in literature. Moreover, In general highlights The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- a Study on Cosmetic Products: Evidence from Pakistan other specific objectives are presented below:

1. To investigate the relationships between advertisement and customer brand switching.

2. To scrutinize the link between price and customer brand switching.

3. To probe the impact of brand endorser and customer brand switching.

Research Questions

Following are the research questions to be addressed in this study;

1. What is the impact of Advertisement on consumer brand switching?

2. What is the impact of Price on consumer brand switching?

3. What is the impact of Brand Endorser on consumer brand switching?

Significance of the Study

In general highlights the Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- a Study on Cosmetic Products: Evidence from Pakistan which in turn of great useful to the manager, policy makers, consumer as well it would be a great insight to the future research by contributing in the existing literature on this topic.

Literature Review

General

From the past research, it was evident that had taken place that Country of origin of the products that require low involvement from the consumers like Shampoo did not impact very much on the purchase decision of the consumers. Customers while buying shampoos did not often see to the country that it was made of Rather in this kind of product, purchase was made on the basis of experiences that they might have had in the past, it might be their own experience or someone else’s who must had educated the consumer about this particular product. Another reason of purchasing such products was the benefit that it offered to the consumers, since these products were renowned for the functionality that they provided to consumers, & everyone was only interested in getting the more benefit that could get that can’t be given from other products of the same category found. Study on the Lebanese market reveal that most of the consumer switch their current shampoo that they were using, was “Variant” provided by the other shampoo, as consumers of the shampoo are very quality conscious & they wanted their hairs to be protected & look beautiful, so as to get better quality they easily switched form one shampoo brand to another brand [4]. The study on the shampoo consumers further revealed the gender factor, that the males are more attracted towards the price of the shampoo while the females were greatly affected by the appearance, touch & aroma of the shampoo, as we knew that females were very much sensitive & conscious about everything they used that’s why they didn’t compromise on even the look of the shampoo bottle. Another factor that influenced consumers to witch from one brand to another is the awareness about shampoo, that’s why most the companies use vast marketing campaigns so that their brand could be known to everyone & every where, because it’s seen that consumers do change their purchase decision at the time of shopping if they found something that they knew about. For the every new product consumer had the perception that it would give consumer more satisfaction then the previous products used. The same study gives a surprising factor that advertisements do not make the consumer as much brand loyal as other factors, & if you did good advertising of the product & spent lot of money on the advertising so it would not let your consumer switch from your brand so it’s not like, advertising did help consumer to choose the better one product but it did not guarantee customer loyalty as the studies showed they advertising was ranked very low when it came to maintain brand loyalty through it. Dick [5] proves the result that the brand switching can easily be made possible by offering low prices to the consumers, as there was a big segment in the market who were price sensitive & ready to buy the product which were of lower cost as compared to the product that they were using, many of the companies had used this strategy to get the market share of another product & they had achieved the positive result of this strategy. Consumers in the products like shampoo had attracted towards the low price & were easy to switch from the product that they are currently using. Moreover, found that the influence of television celebrity was very high on not only the purchase decision of a consumer towards any particular brand but also the switching pattern of the teenagers. Since most of the teenagers were interested into movies & television shows, that’s why the ratio of using television celebrities was very high, it did not end here now the local brands were being endorsed by the international celebrities & this gave brand an edge over other brands. Television celebrities & entertainers exert positive influence in consumption attitudes & patterns of teenagers through modeling without direct interaction [6,7]. To that respect it is noted that television entertainers exerted higher influence on teenagers purchase intention than the sports celebritiesfound that the teenagers were ready to pay even more prices for the products which were being endorsed by their favorite stars because they considered their favorite celebrity as their opinion leaders & to the teenagers they would never suggest them wrong.Furthermore, I would sometimes switch brand when I could get something for free when purchasing another brand & would like to take advantage of special deals I noticed in the store. Benfound that everything else equal, extra free promotion like (BOGFs) would be preferred to discounts apparently because discounts were in the same monetary units as the product’s price.Brand switching can result from advertising building, brand awareness or altering beliefs about brands.Advertising was one of the major reasons that changed the mind of the consumers & convinced them to buy any product. Advertising main role was to reinforce feelings of satisfactions for brands already being used. Consumer chose the product on basis of different factors & different benefits that they wanted to achieve, as there had been number of brands available in the market & consumer had perception about different brands, to the consumer every brand had some specific benefits that was offered to consumer. Consumer thought that every brand was specialized in some particular benefits offered to the customer & the customer chose any brand on the basis of the benefits they wanted to drive.

Advertisement

Advertising, sales endorsement and public dealings are mass-communication paraphernalia available to marketers. As its name put it to somebody, mass communication uses the same significance for everyone in spectators. The mass communication paraphernalia trade off the improvement of individual selling, the occasion to modify a message to each panorama, for the advantage of reaching many people at a lower cost per person. Today, definitions of advertising flourish. We strength define it as communication progression, a marketing development, an economic and social route, a public associations process or an in sequence and arguments progression. Dunn view promotion beginning its functional perception, consequently they delineate it as a remunerated, non-personal communication right through assorted media by dealing firms, non-profit institute, and folks who are in some way celebrated in the advertise significance and who anticipation to notify or influence component of a particular spectators. Modern is of the estimation that advertising is old to ascertain a basic consciousness of the merchandise or service in the mentality of the impending customer and to fabricate up knowledge about it Kotler [8] distinguish advertising as one of the four foremost tackle companies’ use to undeviating influential infrastructure to intention buyers and community memorandum with the aim of “it consists of non-personal outward appearance of announcement accomplish from first to preceding compensated middling beneath clear protection”. According to him, the principle of promotion is to boost impending buyers’ rejoinder to the association moreover its contribution, highlight to facilitate “it request to do this providing in rank, by conduit aspiration, and by furnish explanation for desire a meticulous organization’s propose. While inscription on publicity temperament and span, Etzeltersely incarcerate all promotion as having four features: (i) A verbal and or illustration memo (ii) A subsidize who is notorious (iii) Delivery all over one or more transitional (iv) Payment by the guarantor to the media hauling the message. Abbreviation the above, they wrap up that “promotion then consist of all the tricks complicated in current to a consultation a non-delicate, sponsor-identified, paid-for significance concerning a product or association”. That scrutinyoverlaps with the uncomplicated but catholic definitions of Davies and Arens. For occurrence, while Davies states that “promotion is any compensated form of non-personal media staging prop up ideas/concepts, good s or services by a notorious subsidize. Arens articulate approximately the same view portray promotion as “the delicate communication of information habitually remunerated for and habitually swaying in temperament about products (goods and services) or dreams by notorious supporter during various intermediate”. From the abovementioned, it could be accomplished that the intention of promotion is to construct consciousness of the advertised merchandise and grant information that will support the punter to make acquisition verdict, the consequence of selling as a promotional stratagem, therefore, depends on its aptitude to persuade purchaser not only to acquisition but to prolong to repurchase and sooner or later develop-brand trustworthiness. Accordingly, numerous organizations disburse a massive amount of money on marketing and brand administration. A brand is a family name given by a producer to one (or a number) of its harvest or services. Brands are used to distinguish products from their opponent. They assist gratitude and where clients have assembled up obsequious approach towards the product, May rapidity the qualities buyers through the possession ruling progression. Individual purchasers will pass through a sift out hostile or un-known trademark and the persistent acquisition of the notorious product will strengthen the brand dedicated deeds. Without brands, punter couldn’t acquaint with one artifact from another and promotion subsequently would be virtually impracticable. Adverting is barely one ingredient of the promotion mix, but it repeatedly consider outstanding in the largely marketing mix devise. Its towering visibility and recognition ended it as an imperative social and encomia focus in Indian humanity. Sponsorship may be distinct as “the co-ordination of all seller initiated pains to set up channels of information and urging to facilitate the extent of a good or service.” Sponsorship is mainly often deliberate to be a sustaining module in a marketing mix. Sponsorship decision commitment be incorporated and harmonized with the respite of the marketing mix, particularly product/brand decisions, so that it may successfully shore up an intact marketing mix strategy. The promotion mix consists of four basic rudiments. They are:-

1. Advertising

2. Personal Selling

3. Sales Promotion

Publicity

1. Advertising is the diffusion of information by non-personal means through paid media where the source is the sponsoring association.

2. Personal selling is the diffusion of information by non-personal methods, like confronting each other, friends between spectators and employees of the fund organization. The foundation of information is the sponsoring organization.

3. Sales promotion is the propagation of information during a wide multiplicity of tricks other than personal selling, advertising and exposure which inspire consumer procure and dealer efficacy.

4. Publicity is the disseminating of information by delicate or non-personal means and is not directly paid by the association and the association is not the source.

Advertising spending is premeditated as customer discernment of advertising incidence and disbursement. Advertising spending is initiate to enclose unswerving and positive collision on brand loyalty, accumulate image and perceived quality. There is a momentous liaison between advertising spending and perceived value. Moreover, the crucial outcome of advertising is to amplify brand name gratitude. Millions of dollars fritter every year on advertising that leads towards the brand loyalty and consequences in construct loyal patrons attached to meticulous brand or firm. Advertising is vital instrument in creating consciousness between customers and passionate advertising spending is the gauge of high quality and shows, company is investing in brand/product. Therefore, there is a positive and significant association between advertising expenditure and superficial eminence besides the journalism indicates, brand loyalty and superficial quality both have affirmative persuade on the brand, the more promotion for the brand; the more patrons have high professed quality and fidelity for the brand [9]. Promotion is the most imperative and conventional way of awaring and enlighten the patrons. Radio, television and newspapers are the most conventional ways for construct reflection of trademark and help in engender supplementary sales and revenues. With the passage of time, there be numerous expertise which befall a part of promotion upbringing and assist the marketers for accomplish their objectives. The sponsorship expenditure has undeviating as well as oblique collision on brand loyalty.

Price

Price, which is an enduring element of the original Ps of the marketing mix, may generally be perceived in terms of the specific monetary value that a customer attaches to goods and services. Farahmand and Chatterjee conceptualize price within the auspices of the value assigned to something bought, sold or offered for sales, expressed in terms of monetary units. It also pertains to how buyers view a product’s price, as high, low or fair, which ultimately affects consumers’ willingness to buy the product. Pricing is a crucial strategic variable due to its direct relationship with the company’s goals and its interaction with other marketing mix elements. Pricing enables companies to segment markets, define products, create incentives for consumers and even send signals to competitors. Goods and services must be priced in a way that achieves profitability for the company and satisfies customers, in addition to adapting to various constraints such as competition. Price, like other key factors in exchange relationships, is one of the tools marketers may use to confront the market, either by directly attracting and retaining clients or fighting against competitors. Moreover, price presents a unique opportunity to create loyalty, retain existing customers and attract prospective customers. To this extent, most companies, especially in the service market, use promotional tools such as price to motivate the sale of a specific product. However, this can only be fulfilled if the process pricing is orchestrated fairly, honestly and straightforwardly, rather than unfairly and haphazardly. An assortment of pricing strategies may be employed to manipulate the purchase behavior of consumers. This availability of a multiplicity of pricing strategies presents a strategic but tantalizing dilemma to companies. The challenge is exacerbated through the realization by marketers that all pricing strategies must be consistent with the company’s overall image (positioning), sales, profits and return on investment goals, which in itself is a daunting task. Companies may opt to price high or low or merely be price followers. The ‘every-day low prices’ (EDLP) approach and the ‘high and low prices’ (hi-lo) approach have also emerged as popular pricing strategies amongst companies. EDLP strategies are used by retail establishments as an advertising appeal to attract consumers and add the advantage of ensuring consistency in sales. Furthermore, the use of simple, one-dimensional prices, quoting a single figure (e.g. a standard R10.00), has made way for oddeven pricing (or psychological pricing) strategies aimed at exploiting particular information elaboration processes or perspective biases associated with specific price presentations. For instance, instead of pricing the product at a standard R10.00, the product is priced at R9.99. This creates an impression that consumers are paying a lower price for the product, leading to an acceleration of sales Lamb et al. [10]. The issue of reference pricing also presents manifold challenges to marketers. Reference pricing refers to the price against which consumers compare the listed price of a product or service with the discounted price. In this way consumers evaluate whether a price is too low or too high as they make their product choices. When a consumer perceives that a retailer charges high price for a product, the consumer also perceives that the retailer possesses an air of luxury, which may lead to repeat purchases. Due to the sensitivity of price to different segments of the market, some retailers have resorted to introducing generic products or house brands to cater for the price-sensitive section of the market. This strategy is premised on the view that for some consumers, high price simply means giving up more resources for the product whereas some consumers perceive that high prices are a signal of better quality and prestige .Presented theoretical models however diverge in their meticulous set-up in which habitually tiny modifications can escort to momentous changes in proportional static results. Even restriction deviation under the equivalent model set preserve us lead to dissimilar conclusions. Narasimhan for example shows that mutually brands contribution the similar discount. The superior brand promotes fewer habitually. However, “if the switchers are enthusiastic to reimburse a premium to individual of the brands, A premium price brand in wide-ranging will proffer a privileged typical concession and also support more habitually unless its allocate of the loyal fragment is very huge.” In their decisive contribution scrutinize the coincident pricing strategies of two contending manufacturers. Patrons are trustworthy towards also one of the brands and the extent of brand loyalty differs among brands. The authors dispute that the stronger trade name promotes fewer often (frequency) but more intensely (depth). The weaker brand employs promotions for suspicious purposes by openhanded incentives to its loyal patrons not to switch, while the stronger trade name insistently tries to magnetize patrons that are dedicated to the weaker brand. They assume that the two manufacturers consecutively decide the standard price as well as the regularity and intensity of worth promotions. Thus, manufacturers are competent to counter on each other’s decisions. In his model, just one manufacturer (the ‘stronger’ firm) has loyal patrons. The loyal clients’ enthusiasm to reimburse a price top for their preferred brand differs transversely patrons. In the varied strategy equilibrium, the weaker trade name pursues an ‘every day low price’ (edlp) strategy with a minor normal price and no price promotions. The stronger trade name chooses a elevated regular price but engages in cost promotional actions. In this result of the chronological game both price setting strategies task as a protective device to keep the loyal patrons at the strong trade name with the non-loyal patrons at the edlp brand. Narasimhando not believe the authority of a retailer positioned between manufacturers and patrons on the pricing strategy which in meticulous for food products is expected to be imperative the food retail handcuffs in germany and numerous further places are extremely rigorous and sell numerous brands for mainly food things. The effecting of market rule over small and medium dimension food processors and the patrons valor also be an issue mainly at the regional level. Agrawal extends former models by including a cartel retailer who sells (both) manufacturers’ brands. The retailer faces two preferences: preference one is to trade both brands at the consumers’ reference cost to the individual loyal

fragment. Alternative two is to offer either one of the brands on sponsorship to intention the whole market in the relevant phase. To do so, the promotional intensity needs to surpass the level of trustworthiness of the particular other brand. As the level of trustworthiness is elevated for the stronger firm, discounts for the weaker trade name need to be elevated. As this preference is valuable for the merchant (loss by the price reduction in the loyal fragment), it is used less frequently. Agrawal’s alternative two outcome that the stronger (weaker) brand will be prop up more (less) often but less (more) strappingly. As earlier models believe in universal that all patrons are loyal towards a specific trade name, more latest studies embrace switching consumer fragment. Also in anderson and kumartrade name loyalty is no longer modeled as a static distinctive of patrons; firms can alter price-sensitive patrons (‘switchers’) into loyal patrons. The firms vary in the authority to create patron loyalty. A tiny proportion of the price perceptive fragment becomes loyal to the trade name being the cheapest one in the phase before. The stronger stiff is able to encourage a larger allocate to become loyal. The trade-off that firms expression in this model is to either “harvest” its loyal fragment by charging an elevated price or to devote in prospective new loyal patron by lowering the price. In symmetry, the stronger firm promotes additional often and deeper as its persuading command is higher: the dimension of the price-sensitive fragment is positively connected to the intensity and occurrence of discount. Koçaşand bohlmanninspect price competition among three retailers (but do not embrace the upstream manufacturers’ pricing decisions). Retailers vary in the size of their loyal customer slice as well as how many price-sensitive patrons are conscious of their prices.

Once more, the equilibrium is characterized through the trade-off among charging a high price to the loyal patrons and lowering prices to detain an elevated market share. The authors expand the model by decisive the optimal pricing strategies deputation on the ratio among price sensitive and loyal patrons. Evaluate to the nominal retailer, the huge retailer can either have a smaller or higher ‘sensitive to devoted ratio’. If the ratio is higher, the stronger merchant promotes added often and offers a larger reduce. Depending upon the nature of products, Jing and wen discriminate among three dissimilar levels of overall trade name loyalty: high, transitional or low. Patrons are divided into two fragment, patrons who are loyal to the stronger trade name and price sensitive patrons.

Brand Endorser

Loudon and Bitta defined purchaser behavior as “the decision development and objective activity persons appoint in when appraise, gain, using or disposing of goods and services”. It covers perception drawn from psychology, sociology, anthropology, narration and economics. This means that, in emergent products that patrons would obtain value, marketers entail good considerate of how patrons treat their acquire decisions. Consumer activities engage much more than indulgent what products a customer buys. It squeezes factors, which can distress the decision-making progression as a personality works through the purchase pronouncement. The number of prospective manipulate on consumer performance is inexhaustible. These embrace interior as well as minor factors and brand approval play an imperative role in them. Choi, Lee and Kim claim that customer performance can be planned and forbidden. Brand endorsement is one of the strategies employ lucratively by advertising agencies in their battle in order both to convince patrons and to engender a momentous affirmative collision on companies’ financial results. The modus operandi consists of employing brand with gorgeous traits to encourage products or services. According to Muniz it is analyzed that one neighborhood of all exposure campaigns run global utilize trade name endorsement a same and of civilizing the image of a company’s trade name, thereby influencing consumer purchasing thoughts. Products coupled with trade name appear to have a greater collision on patrons than products that have never formerly been linked with a trade name. Brand are inhabitants who enjoy public appreciation by a large share of a convinced group of people whereas characteristic like magnetism, surprising existence are just examples and specific common distinctiveness cannot be sensible though it can be said that within a consequent social group trade name generally differ from the social norm and enjoy a high extent of public responsiveness. Trade name are well predictable personalities having a strapping attractive and remarkable power to shadow the spectators either by their likeliness, magnetism, trust or by their congruency with trade name which leads in conception of strong trade name image and value in viewers’ minds. Multinational organizations’ affection of trade name with their brands is an additional effort exerted in ads, in order to gain more esteem of the merchandise and its easy acknowledgment for the rationale of purchase of purchase motivation. Intense attachment with brand magnetize the people and stimulate them to follow the trade name commonly known as “endorser” effect. Available literature on endorser consequence gives apparent information that how value is transferred by trade name for encouragement trade name and creating consciousness for the trademark by trade name characteristics, credibility, magnetism and image resemblance. Consumers of the product are much effect by trade name when they believe that endorser has actual affection with product rather than acquisitive gain. Several studies have analogous views that the association of trade name in advertisement shows flourishing results on integrity, communication inducing, recall and likeability of the advertisements and finally on procure intentions. The use of trade name in marketing announcement can be explained based on the following; Brand endorsement increases the concentration paid to anadvert. Trade name is generally attractive, which helps affiliation when the product is attractive-related. Brands are often well-liked, possibly primary todetection and consumer affiliation in an endeavor to seek some type of association with the trade name. Also trademark endorsement may escort media weight to havea brunt on sales. The subject chosen has been investigated by immeasurable researchers all over the world were designed to explore the returns and effectiveness that can be estimated by organizations that use brand endorsement in their marketing campaigns. These consequences of these studies reflected confidently on the observe, despite not all investigate the market from the similar perception. Organizations invest momentous amounts of money to make their brands stand out and to ally them with endorsers. Not with eminence the elevated costs involved, companies benefit commencing using trade name, who offer the prospect of creating an involvement between their traits and the trade name or product advertised, thereby attracting the attention of patrons. Kaikati investigate there are five recompense to be gained from using trade name endorsement: the magnetism of the source, the credibility of the source, that analogy between foundation and brand, transfer of racially constituted meanings, and persuade on the sales of the products they sanction. The first benefit accredited to this tool is that a operation employing trade name endorsers helps to attract consumer concentration to the product or trade name being advertised from amid the very large number of clutter ages that patrons are expose to every day. These cons lead refers to the aptitude that trade name may have to revitalize a flecked company image, in other words, a trade name may be able to convey integrity and decency to consumers. Put it another way, the rudiments of attractiveness and sincerity related to the spokesperson’s acquaintance and incident of given product or service. Sphere is also a part of establishing integrity and refers to the source’s capacity International Journal of Scientific and to make compelling claims.

Reliability is also obligatory for integrity, and this refers to the credence that the source’s claims are influential and plausible, and as such confers positive distinctiveness that affect whether the recipient of the message accept sit. The third benefit is associated to resemblance between the trade name and the endorser, since the choice of trade name must meet the criteria of the public identifying the merchandise with the public figure, which will establish whether the brand’s attributes are truly transmitted to the end customer. The transfer-of-meanings model is one more factor influencing patrons, by which ethnically constituted distinctiveness belonging to the trade name are transferred to the products. The fifth and final foremost improvement of using a trade name endorser in exposure campaigns is of course that they facilitate to progress the sales of the products they be promoting. The prospective risks allied with using a brand endorser are also very soaring; since organizations have very tiny control over the distinctiveness of the endorser who will have twisted their communal image ended the years. Furthermore, if the trade name endorser becomes notorious due to negative deeds this can potentially create risks for the company and its products (Figure 1).

accounting-marketing-Impact

Figure 1. The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching.

Theoretical Framework

Three Independent variables whose effect will be studied on the dependent variable customer brand switching are Advertisement, Price and Brand Endorser.

S# Statements
H1 Advertisement has a positive and significant impact on Customer Brand Switching.
H2 Price has a positive and significant impact on Customer Brand Switching.
H2 Brand Endorser has a positive and significant impact on Customer Brand Switching.

Research Methodology

The population of this study is cosmetic sector especially housewives, student, retired person. Cosmetic sector can be divided in skin and sun care products, makeup/colour cosmetics, fragrances, toiletries, and various other grooming products specially shampoo products is my core area. Shampoo manufacturing companies which I find in Islamabad are Herbal Best Brands, Unilever, Johnsan & Johnsan, garnier.There are about 5,000 customers using Cosmetic products in Islamabad and Rawalpindi of Pakistan. These professional are geographically dispersed in different region of Pakistan so it was not possible to study all the population. So the solution to this problem was sampling.Due to less time and resources, 350 professionals and management staff from Cosmetic sector of Rawalpindi and Islamabad were randomly selected as respondents because it’s much difficult to collect the data from all over the Pakistan’s Cosmetic sector. Herbal Best Brands, Unilever, Johnson & Johnson, Garnier was selected from Islamabad city. It’s assumed with conviction of fair degree that these 350 selected respondents were enabling the researches to drawn pertinent inferences or the whole population. All 350 questionnaires delivered to the approximate figure of Rawalpindi and Islamabad cosmetics companies by personally. I received only 326 fill questionnaires from Herbal Best Brands, Unilever, Johnsan & Johnsan, Garnier. The major aim of sampling is to select representative group of elements which will genuinely reveal the characteristics of the population. But there is need of due care while selecting the sample as the results are generalized to whole population based on the sampling results. Sampling techniques are generally divided in two types namely probability sampling and non-probability sampling. In probability sampling, there is an equal chance for each element of population becomes a member of sample whereas the situation is contrary in non-probability sampling as no probabilities are assigned to elements of population. Convenience sampling one of the techniques of non-probability sampling is being used for this study because of the reason that these professional are scattered in large number of organizations geographically far away. In limited time, it is not possible to access all of them. Although maximum effort has been made to collect data from representative sample of exploration cosmetic companies of Pakistan. In this study the impact of Advertisement, Price and Brand Endorser on Customer Brand Switching has been deliberate based on the responses of respondents about these variable so the is revision is underlying and relational .The research revision is quantitative into nature because survey research devise has been used. Survey procedure gives sovereignty to the respondents to reaction as per their own convenience resultantly the precision of the grades is boost. Secondly, for all respondents, equivalent set of questions phrased in precisely parallel way are used in inspection which eradicate preconception at interviewer part due to variant in delivery. For this study, the results and scrutiny are based on data gathering from respondents during pre – specified survey questionnaires. This study is ground based while the respondents (consumers of shampoo) enclose been contacted on their work scenery and they have crammed the survey questionnaire in their natural work atmosphere. Hence, no forged setting has been formed for conducting this study. With regard to period perspective, the explore study can be cross sectional or longitudinal. In irritated sectional study facts are composed at one aim of time for scrutiny whereas in longitudinal study researchers assemble the data in diverse time for conducting scrutiny and attainment on any finale. This study is cross sectional in temperament as data since respondents will be composed once and will be used to produce results by applying numerical equipment’s. The element of scrutiny shows the elevation used for data assortment. The element of analysis primarily ranges from individual, group, association and country. Since the main aim of this to conclude the accomplish of Advertisement, Price and Brand Endorser on Customer Brand Switching in cosmetic segment of Pakistan so the scrutiny of unit for this study to will be an personality. The study mainly aims at measuring effect of Advertisement, Price and Brand Endorser on Customer Brand Switching in cosmetic segment of Pakistan. Data have been administered during Questionnaires. The language of the questionnaire was English. Since mainstream of respondents holds Graduation or above graduation qualification level (85.6%) so they did not discover any difficulty in comprehending the questions. Besides it was communicated to fill in the questionnaire with full appreciative and the respondents fill the questionnaire willingly on their own spirit For this measurement, Five Point Likert Scale ranging from strongly Disagree (1) to strongly Agree (5) has been used.Unlike the physical sciences, the human scientist has to deal with human attitude and behaviour which do not have universally applicable fixed measuring scales. To address this phenomenon different behavioural researchers have developed scales to ascertain the attitude and behaviour. The Survey questionnaire contains 19 items for 4 variables on the basis of conceptual framework. To find out the association between variables of research model, the below mentioned measurement scales have been used in survey.

Pilot Reliability Test

A pilot test consisting of a sample of 50 responses was conducted to test the internal reliability of the items: Cronbach’s coefficient alphas were calculated using the data of each independent variable and the dependent variable.

The resulting reliability estimates indicated the internal consistency for the instruments used to investigate the research variables. Cronbach’s alpha for variables were calculated (Table 1).

Table 1. Pilot Reliability Test.

Variables Cronbach’s Alpha
Consumer Brand Switching 0.859
Advertisement 0.857
Price 0.989
Brand Endaorser 0.759

There was tested the 08 items of Investors in People Standard UK (2002); also applied by Chang, Chi and Chuang (2010) for reliability analysis. Cronbach Alpha is .859 which targets the required cronbach Alpha for internal consistency that shows the very high internal consistency.There was tested 05 items of Meyer et al. (1993). Cronbach Alpha is .857 which shows the highly significant and acceptable internal consistency. For reliability test of Price tested the 04 items of Quinn and Staines (1977) which cronbach alpha is .989. It’s the highly significant internal consistency of this adapted scale. There was tested the 05 items of Laudau and Hammer (1986) for reliability test which cronbach alpha is .759. It shows the significant and acceptable internal consistency of scale (Table 2).

Table 2. Sample Characteristics.

  Sample Characteristics
S# Demographics Frequency Percent
1 Gender    
   Female Male 18394 66.0633.93
2 Age    
  18-24 184 66.42
  25-34 48 17.32
  35-44 29 10.46
  45 & Above 16 5.77
3 Qualification    
  Matriculation 10 3.61
  Intermediate 26 9.38
  Graduation 161 58.13
  Post-Graduation or Above 80 28.88

Interpretation

300 questionnaires were distributed out of which 277 complete questionnaire were received from respondents which constituted of 92.33% of distributed questionnaire. Hence, the sample for present study is 300 consumers of cosmetic products particularly shampoos. Demographic variables are described the characteristics of respondents in term of Gender, age, qualification experience and so on. It also helps to understand the general characteristics of populations sample and to understand the results of the research.

Gender

Gender of respondents was divided in two categories of male and female. Male respondents were less than female respondents. There were 94 males (33%) as compared to 183 females (66%) in this sample. These results are also in line with the fact that female population in Pakistan are the main consumers of the shampoos as compared to males and it is also observed that females usually switch the brands.

Respondent's age

Respondents were divided in four slabs for ascertaining their age. There was large number of respondents falling in category of 18-24 (66%) for the age bracket of 25-34(17%) respondents were taken whereas for the age bracket of 35-44 and 45 above there were 29 (10.46%) and 16 (5.77%) which are comparatively less than the below 25 category.

Respondents Qualification

Four categories of educational level were established to ascertain the respondents’ last or latest degree. There were only 3.61% respondents having matriculation degree. Respondents having intermediate degree were about 9.3%. Besides, a large proportion of respondents have Bachelors (58.12%) or Post Graduation or above (28.88%) degrees / qualification. It means that a large number of survey respondents were highly qualified and they did not feel any problem in understanding the survey questionnaire.

Data Analysis Techniques

For the analysis of the data software SPSS version 20 is used which I have used only those questionnaires which are complete that is 326 out of 350 questionnaires. Every questionnaire is entered into SPSS after coding by its number. Variability analysis was run to find out that questionnaire is reliable or not and descriptive statistics were calculated for the means and standard deviation. Then correlation analysis was done to find out the relationship or association between variables. And last one is find out the regression analysis which indicates the impact of dependent variable (Advertisement, Price and Brand Endorser) on independent variables (Customer Brand Switching).

Results and Discussions

Descriptive statistics

Interpretation: Descriptive analysis describes the mean and standard deviation of data which is gathering through questionnaires. The standard deviation describes the average distance of mean from STD, deviation. If the value of standard deviation is > 1 it means that the data is more spread (Table 3).The data of this study of std. deviation of this study shows that data is less spread because all variables standard deviation is less than 1 which indicated that data is moderate between the -1 to +1 and less dispersion. Whereas, means of variables shows the central tendency of variables. The mean of training is 3.55 and Std. Deviation is .73 which shows that mean of training variable uncertainty and move towards agree scale. The mean values of Price and Brand Endorser are 3.15 and 3.35 and the values of standard deviation are .74 and .66 and Customer Brand Switching has 3.54 mean and Std. deviation is .45. Over all the value of Standard deviation is moderate and means show the uncertainty.

Table 3. Descriptive Statistics.

Variables Mean S. D
Advertisement 3.5587 0.73845
Price 3.1578 0.74099
Brand Endorser 3.3592 0.66936
Customer Brand Switching 3.5468 0.45166

Inferential Statistics-Correlation Matrix

Correlations measure of the relationship between two or more variable. Correlation coefficients varies from -1.00 to +1.00 where -1.00 depicts a perfect negative correlation and + 1.00 represents a perfect positive correlation. Zero value would mean lack of correlation. The larger the value, the stronger the correlation will be. The most common type of correlation used in research studies is Pearson correlation the assumes that the two variables. The results of correlation analysis of study model variables are shown in Table 4. Their brief explanation is given as below

Table 4. Correlation Matrix.

Customer Brand Switching Advertisement Price Brand Endorser
1 Customer Brand Switching 1      
2 Advertisement .668** 1
3 Price .620** .678** 1  
4 Brand Endorser -.361** -.400** -.455** 1

To further test the relationship between Advertisement, Price, Brand Endorser and Customer Brand Switching, regression analysis was applied.

Advertisement and Customer Brand Switching

The coefficient of correlation between Advertisement and Customer Brand Switching is .668 for p-value of .01. Its shows that there is strong and significant positive correlation between Advertisement and Customer Brand Switching.

Price and customer brand switching: The coefficient of correlation between Price and Customer Brand Switching is .620 for p-value of .01. Its shows that there is strong and significant positive correlation between Price and Customer Brand Switching.

Brand endorser and customer brand switching: The coefficient of correlation between Brand Endorser and Customer Brand Switching is -.361 for p-value of .01. Its shows that there is strong and significant negative correlation between Brand Endorser and Customer Brand Switching.

Regression Analysis

The standardized coefficients or betas are an attempt to make the regression coefficients more comparable and the results of regression indicates that the coefficient of independent variables are positive which means they have direct relationship with dependent variable. If the coefficients of independent variables are negative this means they have an indirect relationship with our dependent variable (Tables 5 and 6).

Table 5. Regression Analysis.

Advertisement 0.322 6.962 0.000
Price 0.273 5.303 0.000
Brand Endorser 0.313 5.804 0.001

Table 6. Hypothesis Testing ----- Interpretation.

S# Statements Coefficient Significance Decision status
H1 Advertisement has a positive and significant impact on Customer Brand Switching. 0.322 0.000 Supported
H2 Price has a positive and significant impact on Customer Brand Switching. 0.273 0.000 Supported
H2 Brand Endorser has a positive and significant impact on Customer Brand Switching. 0.313 0.001 Supported

Discussion

Consumer Brand Switching is seldom studied in reference to Pakistan Cosmetic environment particularly shampoos. Cosmetic products in Pakistan is one of the most used and purchased products and is continuing to grow at a fast pace. This upward trend is because of many factors such as changing lifestyle and large number of people shift from rural to urban societies. Increase in the disposable income is also an important factor as people having more money to spend will shop more hence the sales of these cosmetic products will grow. Evolving middle class has also become one of the prime users and consumers of the cosmetic products particularly shampoos. In the recent we have seen that there have been a huge number of brands in shampoos which are capturing the market and the users are often noted to be switching their brands frequently than expected. Businesses need to strategize to survive in this competitive environment. In cities such as Karachi, Lahore and Islamabad this competition is even stiffer because in these metropolitans the income levels of the individuals are higher than the other cities and it make them attractive for the companies of shampoos to target and expand their businesses. Retaining a costumer is considered as a cheaper way of influencing sales as compared to attracting new customers. The main area discussed in the present study was that which factors contribute in making the consumer switch its brand of shampoo in to other and which one of the three factors affect them the most the three factors I took in consideration were advertisement, price and brand endorser. The finding of the study concludes that three main factors influencing this brand switching are Advertisement, Brand endorser and product price. The Brand Endorser can be influential in customer brand switching as people like to purchase the product which are endorsed by their favorite stars with respect to the price also. The relationship of customer and the brand endorser for the customer brand switching is of utmost importance.

The next factor the study focused was advertisement. This is also a very important factor as seen in the customer brand switching as it is evident that the most influential way to capture the customers is an effective advertisement. As surveyed we have seen that most people switch their shampoo brand after watching the ads of Shahid Afridi and Cristiano Ronaldo. It is noted that Brand Endorser must work hand to hand with the advertisement in order to influence the customer to switch their current brand towards them. Therefore it showed a massive influence on the customer brand switching.

Summary, Conclusion and Recommendations

The main purpose of this study is to fill the above presented research gap in literature. Moreover, In general highlights The Impact of Advertisement, Price and Brand Endorser on Consumer Brand Switching- a Study on Cosmetic Products: Evidence from Pakistan. The results of the study indicate that the product prices are positively and significantly related to consumer customer brand switching. This results seems opposite to the general perception that people in Pakistan are more concerned about brand endorser and advertisement but analyzing it deeply it was observed that the consumer perceives higher prices with better quality. Better quality are better suited to satisfy the customer needs and once the needs are fulfilled and the consumer is satisfied next stage is that he will start to commit to that product. It is concluded that in order to make the customer to switch their brand the companies of these cosmetic products especially shampoos must give utmost importance to the advertisement and the brand endorser for their product. These two variables go hand to hand and as it is observed that people tend to switch their brand more because of these two variables however it is also noted that product price is perceived as something very positive. People have responded that the higher the price of the product and then they will be more satisfied with it therefore this must be kept in mind to make an adequate price for that particular shampoo product.

Policy Recommendations and Future Outlook

Based on the results, it is recommended that there is a need for further study in order to find other factors affecting Consumer Brand Switching behavior in shampoos. The study was limited to some cities & a small sample size. Increase in the size of sample will depict the true picture of consumer behavior. Cross country research would offer better result.

References

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