Econometrics Project

Name: Waiza Afzal

Submitted on: 4th December, 2019
Submitted to: Ma’am Salaha Waheed
Major: Economics
Semester: 7th

Topic:
Ch#3: Research Methodology
“The Effect of Reputation of brands on consumer buying
behavior. A case study on Textile Sector”
3. Research Methodology:
3.1 Type of investigation:

This study is a primary research conducted through questionnaire personally.

3.2 Target population:

The total sample size is 500 university students. It will be distributed among the students of
Government College University, Kinnaird College for Women, Lahore College for Women and
Lahore School of Economics. The respondents are both male and female students.

3.3 Software:

Microsoft Excel is used for compiling the results, for tabulation and graphs Stata software from
are used for descriptive analysis.

3.4 Questionnaire design:

In this study, 31 questions have been designed to collect data about the selected variables. The
questionnaire is divided into two portions; first section was aimed to collect the general data
(introduction) from the respondents while the second was aimed at collecting data directly
pertinent to the research. The scale used for measurement was the Likert Scale; with answers
ranging from 1 to 5, or strongly disagree to strongly agree respectively. Respondents were asked
to rate their levels of agreement as pertaining to various criteria. The higher the score that was
chosen, the greater the importance respondents assigned to the criterion.

3.5 Time horizon

Time horizon in this study is cross-sectional as the data is being collected at one point in time
from different individuals from different places in Lahore. The data is collected from October
2019- November 2019.

3.6 Pilot Study

The questionnaires are initially used to carry out a pilot test before final administration to the
respondents. A random sample of individuals are selected and given questionnaires in the
presence of the researcher.

3.7 Data Collection Tool

As the study is primary, data will be conducted in the form of questionnaire.

3.8 Model

Consumer Purchase Intention =α+ β (Price Consciousness) + β (Brand Awareness) +

β(Brand image) + β(Preferences) + β(Clothing Interest) + β(Age Group) + β(Gender) +
β(Need for uniqueness) + β(Perceived Quality) + β(Word of Mouth) +
β(Discounts/Promotions) + β(Socio-economic & cultural background of consumers) +
β(Brand Loyalty) + β(Personal Satisfaction) + β(Family Income) + β(Demographics) +
β(Brand Advertisement) + β(Qualification) + u

3.8 Definition of the variables

3.8.1 Dependent variable

Consumer Buying Behavior:

The dependent variable in this study is consumer buying Intention. It is important to know
1. Why consumers make the purchases that they make?
2. What factors influence consumer purchases towards textile sector?

3.8.2 Independent variables:

*except the introductory part of the questionnaire, every variable is measured in Likert scale*

Price Consciousness: Price level of a commodity decides whether the purchase will be made or
not. It should fall in a range that will be acceptable and affordable for customers so they can be
drawn towards it even more. This independent variable is measured by asking questions about
how the price level of a brand affects their purchasing intention.
Brand Awareness: The main thing to draw customers towards oneself and to spread the reach of
the brand across region is to have the best quality products. The stores from which the consumers
purchase the most indicate that they have confidence on the brand quality too. This variable is
measured by asking questions about how being aware of a brand affects consumer purchasing
intention.
Brand Image: Promotional discount offers stimulate the consumers purchase and attracts them
to buy more products for them. It helps generating public traffic in the market to have a packed
shop which will then further attracts consumers in the future. End of season sale twice a year is
the most successful and appreciated event in the public eye and a great way to expand the
business and increase selling range. This variable is measured by asking questions about how the
outer look of a brand i.e. building, architecture, furniture etc. affects their purchasing intention or
how much of an effect the polices used by the brand affects them as well.
Preference: Consumer preference varies from person to person and it’s solely depends on the
nature of the consumers as the brands have nothing to do with it. The consumer is the one in
command to decide whether he/she likes a product or not. This variable is measured by asking
consumers about how often they prefer one brand over the other or do they prefer branded
apparel or unbranded apparel while making their purchase. This will give an overview on
consumer’s certain choices that they make.
Clothing Interest: The interest in clothing is again solely depends on the nature of the
consumers and their choices. This variable is measured by asking questions about how much of
an interest customer have in shopping or how often do they go for shopping in a month. Brands
have enough room for experimentation to produce exciting goods that will engage consumer’s
interest and eventually buy from them.
Age Group: This variable is asked from the respondents just to get the clear look of their
respective age group. Young customers are more eager to try out new things and shop from new
brands whereas the older ones tend to rely on their years long brands from which they have
shopped from the beginning.
Gender: This variable again is asked from the respondents to get the exact data of their gender.
So there responses could be differentiated based on their gender and respected preferences.
Need for Uniqueness: Some customers have the need to looks different and distinct in every
possible way and that’s why they tend to choose those products that will differentiate them
among others. These customers’ works well for producers as well as it will push them to be more
exclusive with their work and try to bring more singularity in their work. This variable is
measured by asking questions about consumer’s unique selection of commodity and how much it
affects their purchasing behavior.
Perceived Quality: The perceived and expected quality of the product by the consumers is the
most crucial factor in determining the relationship between the consumer and producer. Because
once it’s not up to the mark or not as good as it was perceived by the customer then the trust
factor, credibility factor gets affected a lot. In a brand’s name, the quality of the product is the
most important things. This variable is measured by asking questions regarding how the
perceived quality of brand affects consumers purchase if it was as good as they perceived it to be
and vice versa.
Word of mouth: Being introduced to a new shop, brand, or commodity from a close family
member or peer accounts a lot as they are you trustworthy people and now if they’re
recommending you something then it must be good. So a good word of mouth also affects the
buying intention. The question asked regarding this variable is how much effect does a
recommended shop by a family member affects their purchasing decision and do they trust and
make purchases from a brand which is being introduced by their peers etc.
Discount/Promotions: This is the easiest way to enter customers into one’s shop because more
than half of the population of Pakistan gets attracted towards a certain brand by looking at its
discount and promotional offers. If the offer is god and reasonable then it will affect the buying
intention of customers and may be they will become a regular customer to check on the new
arrivals. The question regarding this variable is how much of a discount offers attracts consumers
and affects their purchasing behavior.
Socio-economic & cultural background of consumers: The socio-economic background of a
customer affects its purchasing power greatly as he/she has to face some constricts from the
financial status of the family. Whereas the cultural background of the customers also hinders the
purchasing intention of the customer where he/she must have been stopped by a family member
or by a social limitation of the people around them. The questions asked for this variable is based
upon does the socio-economic background of consumer’s affects their purchasing power and
does their cultural background constricts them to shop more frequently.
Brand Loyalty: If a trustworthy and loyal customer is being made with a brand then it is almost
impossible to break their relation by some minute changes in the variables. If a brand is loyal to a
customer then the customer also reciprocates by giving them the leverage by only buying from
them and not from anyone else. This variable is measured by asking questions about how long do
the customers are shopping from a specific brand and is the trust and credibility factor is behind
this loyalty.
Personal Satisfaction: The satisfactory level of each individual is different and it takes a certain
time to reach full satisfaction. In this case study the respondents will be asked about brands who
gave them personal satisfaction as well as if shopping is one of their tasks to obtain satisfaction.
This variable is measured by asking questions about do consumers attain satisfaction upon their
purchases and do they try to seek complete personal satisfaction from shopping.
Family Income: The income of every family is the reason behind their price consciousness
budget constraints and if greatly affects their purchasing power. This variable is measured by
asking question about respondent’s family income and does it affect their buying behavior at all
or not.
Demographics: This variable is asked by the respondent just to get the complete overview of
their respective cities and then understand their point of views even more precisely. Most cities
are well-developed whereas others are less-developed so it impacts the general thought process
of the citizens living there.
Brand Advertisement: Advertising of the brand is the most famous and used tactic nowadays
where celebrity endorsements and high-end location shootings are a must to engage customers
attention and attract them towards the stores. This variable is measured by asking questions about
how much of an advertisement affects the buying behavior of consumers and do they find
celebrity endorsements more appealing than a normal advertisement.
Qualification: This variable is asked from the respondents to get the data of their recent
education level as it will help us interpret the data in the end by looking at their responses in
comparison to their education level. A more educated consumer will reply differently to the
questions whereas a less educated consumer will behave differently.

3.9 Theoretical framework

 Price Brand
Brand Image Preference
Consciousness Awareness

Clothing
Qualification
Interest

Brand
Age Group
Advertisement

Consumer Buying
Demographics Behavior Gender

Need for
Family Income Uniqueness

Perceived
Personal Quality
Satisfaction

Socio-economic
Discounts/ Word of mouth
Brand Loyalty & Cultural
Promotions
Background
In the above drawn theoretical framework the dependent variable is a consumer buying behavior
measured through the relationship with the independent variables.

3.10 Data Analytical Techniques:

To study the relationship between consumer buying behavior in the textile sector and its
determinants; Price Consciousness, Brand Awareness, Brand image, Preferences, Clothing
Interest, Age Group, Gender, Need for uniqueness, Perceived Quality, Word of Mouth,
Discounts/Promotions, Socio-economic & cultural background of consumers, Brand Loyalty,
Personal Satisfaction, Family Income, Demographics, Brand Advertisement and Qualification,
regression model has been used.
3.11 Operationalization of Variables:

Variables Dimensions Questions Reference

Dependent variable
Consumer Buying To measure consumer How often do you Self-Formulated
Behavior buying intention purchase in a month?
(open ended)

Independent variables
Brand Awareness To measure the level of Do you agree that a Self-Formulated
attraction consumers store's awareness could
have towards the be improved by the
store’s association with strong
brands?
(Likert Scale)

Being aware of a new

brand affect your
purchasing intentions
as compared to the
other brands?
(Likert Scale)

Brand Image To determine the How much the Self-formulated

image of different physical appearance of
brands in a store a store (i.e. designing,
furniture, architecture)
and expensiveness of a
brand appeals you or
increases the brand
image for you?
(Likert Scale)
Preference To measure that how Do you prefer branded Amit Aggarwaal, 2010
much a consumer apparels over
prefers the brand over unbranded apparels?
another (close ended)

While shopping does

you have a preference
for a specific brand?
(close ended)
Clothing Interest To measure consumers Do you have an Self-formulated
interest in the cloths of interest in shopping?
a certain brand (close ended)

Do you go for
shopping frequently in
a month?
(close ended)
Age Group To collect the data of What is your age? Amit Aggarwaal, 2010
age group of each (open ended)
respondent
Gender To identify the gender What is your gender? Amit Aggarwaal, 2010
of the respondent (open ended)
Need for Uniqueness To measure the need You are always looking Self-formulated
for uniqueness in for a unique
consumers purchasing commodity for
styles yourself in terms of
cloths, jewelry, and
shoes etc.?
(Likert Scale)

The eagerness for

being unique affects
your purchasing
behavior?
(Likert Scale)

Perceived Quality To measure the The perceived quality Self-formulated

perceived quality of a of a brand affects your
product that the purchase intentions?
consumer expected (Likert Scake)

The product is not as

good as it was
expected by you, does
it affects your trust
 factor?
(Likert Scale)

Word of Mouth To measure the effect Your purchases are Amit Aggarwaal, 2010
of a recommend brand influenced by your
on consumer buying own opinion rather
behavior than the opinion of
your family members?
(Likert Scale)

Your brand preference

is influenced by your
peers or family
members?
(Likert Scale)
Discount/Promotion To measure the effect How much does the Self-formulated
of discounts and discount offers
promotions on stimulate you to
consumers buying purchase the product?
behavior (Likert Scale)

Which discount offers

percentages (i.e. 50%,
70%) attract you the
most?
(Multiple Choice)

Socio-economic & To measure the effect The socio-economic Self-formulated

cultural background that socio-economic background affects
and cultural your purchasing power.
background has on (Likert Scale)
consumer buying
behavior The cultural
background constricts
you to shop more
frequently.
(Likert Scale)
Brand Loyalty To determine the level Do you tend to Self-formulated
of loyalty customers maintain long period
have with the brand loyalty relation with on
brand?
(close ended)

Does a new brand in

the market tantalize
you to shift towards
 them?
(close ended)
Personal Satisfaction Does shopping helps Self-formulated
To measure the level of you reach you
satisfaction the maximum satisfaction
consumers get after level?
purchasing (Likert Scale)
commodities
You are satisfied with
your recent purchases.
(Likert Scale)
Family income What is your monthly Amit Aggarwaal, 2010
To measure the effect family income?
of family income on (Multiple Choice)
consumers buying
behavior
Demographics What is your province Amit Aggarwaal, 2010
To gather the data of of residence?
consumers different (Multiple Choice)
demographical region
from where they are
Brand Advertisement Different techniques of Amit Aggarwaal, 2010
To measure the impact sales promotion affect
of brand your buying decision.
advertisements on (Likert Scale)
consumer buying
behavior An endorsement by a
celebrity for a brand
affects my buying
intention towards that
particular brand.
(Likert Scale)

Qualification To collect the data of What is your Amit Aggarwaal, 2010

consumers recent qualification level?
qualification level (Multiple Choice)
Price Consciousness Does an increase in Amit Aggarwaal, 2010
price of your favorite
brands affect your
buying behavior?
(close ended)

An increase in price of
a competitor brands
affects your buying
behavior towards your
favorite brand.
(Likert Scake)