CHAPTER TWO

LITERATURE REVIEW
2.1 Introduction
The primary purpose of this chapter is to get the conceptual review, theoretical
framework and empirical understanding of the concept of brand image, promotional mix and
consumer buying behaviour. First, it will discuss the definitions given by different scholars on
the term sales promotion and consumer buying behavior. Second, the review identified and
discussed the different promotional tools. Third, the literature review examined empirical studies
on brand image and promotional mix towards customer buying behaviour.
2.2 Concept of Brand Image
Brand image is defined by Aaker (2004) as a series of brand involvement stored in a
consumer’s memory. The reasons in consumer’s mind linked with brand specifications. Brand
image is the perception of brand that created in memory of consumer due to brand involvement.
Brand image is similar to self-image of consumers as consumers associate themselves with
brands. In this highly competitive environment, a brand image is very important. To create a
well- positioned brand the companies always play an important role. Customers‟ emotions to
brand based on their identification with a brand image. Brand image is the total and overall
personality in the consumers mind. Brand image depends upon the actual image of the firm in
consumers’ mind. A unique set of association in the mind of consumers communicates
expectations. Image creation is considered essential for customer attraction and retention. A
consumer purchase decision most often depends on brand image rather than physical
characteristics of brand.
The American marketing association defined brand as any name, term, sign, symbol, or
design, or combination of these that identifies the maker/seller of the product or service and
differentiates it from competitors. The level of brand awareness, image, identity, association, and
reputation are very important in customer choice/patronage. Brand image is the perception about
a brand as reflected by the brand as held in a consumer’s memory (Kotler, Bouden and Jane,
2006). Brand awareness is the ability to identify the brand under different conditions, as reflected
by their brand recognition or recall performance (Kotler and Keller, 2006), consumer’s brand
recognition and ability to confirm prior exposure to the brand when given a brand as a cue
(Keller, 2003). Brand awareness and image are mostly achieved through marketing
communication and promotion. Corporate brand image is a brand that an organization acquires
and reflects its heritage, value, culture, people and strategy (Aaker, 2004).
Brand’s reputation is a perceptual asset in the minds of stakeholders about a performance.
Brand reputation is built on by the brand association with other brand identities. In Nigeria,
MTN Foundation and Glo sponsorship of football premier league are laudable examples.
Marketing program/communication creates brand awareness or image that is used to influence
consumer behavior or patronage. Brand equity is the added value endowed to product and
service which is reflected in how a consumer feels, thinks, and acts with respect to the brand.
Brand image relates or represents most recent perception and fluctuates overtime; by contrast
brand reputation is about perception of the brand over time and is more stable.
2.2.1 Branding Functions
i. The brand creates value for both the consumer and the firm;
ii. The brand provides value to the firm by generating value for the consumers; and
iii. Consumers brand associations are a key element in brand equity formation and management.
2.2.2 Brand Loyalty
Brand loyalty is a consumer’s aware or unaware decisions that are expressed through the
intention or behaviour to repurchase a particular brand frequently. There are many set of
definitions of brand loyalty. In general brand loyalty can be defined as the power of liking for a
brand compared to other similar available option (Kotler, 2008). Brand loyalty is a function of
behaviour as well as attitudes. It is a consumer’s first choice to buy a particular brand in a
product group. It occurs when consumers perceive that the brand offers the right product
features, image or level of quality at the right price at the right time.
Brand loyalty has necessary conditions which are:-
The biased, behavioural response, expressed over time, by the decision –making units,
with respect to one or more alternative brand out of a set of such brands, and a function of
psychological process. Customer are loyal toward the brand because of high switching barriers
related to technical, economical or psychological factors which make it costly or difficult for the
customer to change and the other reasons is that the customer may be loyal because they are
satisfied with the brand that why they want to continue the relation with the brand. Brand
attributes are viewed as important factors in a consumer's decision-making.
Brand Name: Well-known brand names can broadcast product benefits and lead to higher recall
of advertised benefits than non-famous brand names. Consumers may prefer to reliance major
famous brand names. Brand personality provides links to the brand’s emotional and self-
expressive benefits for differentiation.
Product Quality: Product Quality encompasses the type and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs. In other words, product quality
is defined as “fitness for use” or „conformance to requirement.
Price: Price is most important consideration for the average consumer. Consumers with high
brand loyalty are willing to pay a finest price for their preferred brand, so, their purchase
intention is not easily affected by price.
Promotion: Promotion is a marketing mix component, which is a kind of communication with
consumers. Promotion includes the use of advertising, sales promotions, personal selling and
publicity. Advertising is a non-personal presentation of information in mass media about a
product, brand, company or store. It greatly affects consumers‟ images, beliefs and attitudes
towards products and brands, and in turn, influences their purchase behaviours.
2.2.3 Role of Brand Ambassadors
With the passage of time when the liberalization took place in the 1990s, we saw a spate
of companies flowing into the country with a wide range of products for the consumer. These
companies didn’t want their products to fail in the market and so they had very attractive and
enticing ad campaigns. But the need for more profits and market share made them spend more
and more on their advertisements. There were virtual characters for some brands (Fido for 7Up),
but for some they had to rope in household names to connect with the consumer and that made
the companies reach out their arms to Bollywood for influential actors and actresses (Salman
Khan for Pepsi) and so on. Depending on the ad campaigns that were created there were couples
of ambassadors who worked wonders for a brand but couldn’t revive their magic when it came to
other brands.
2.2.4 Customer Patronage
The customer is as old as business. The sole purpose of every business is to “Create
Customer” (Drucker, 1973), adding more Drucker (1973) opined that the only economic and
social justification existence of any business existence is to create customer satisfaction. The
importance of the customer and customer patronage per se is so profound. It includes financial
and non-financial dimensions. Many studies have been done on what influences or impacts on
level of customer patronage. They include- firm’s capability, product or services attributes,
economic situation, political forces, social and psychological factors, situational, competition,
marketing mix programs (Schiffman and Kanuk 2009; Kotler and Keller 2006). Experience
indicates that defining and measuring patronage is extremely difficult. Attitude and actual usage
patronages have been used as measures of customer patronages. Dick and Basu (1994) precisely
suggested that favorable attitude and repeat purchase were required to define patronage.
Intention to use is defined as a specific desire to continue relationship with a service provider
(Czepiel and Culmore, 1987). Attitudinal measures have an advantage over behavioral measures
(actual or repeat patronage) in that they can provide greater understanding of the factors
associated with the development and modification of patronage (Oliva, Oliver & MacMilian,
1992). Fishbein and Ajzen (1975) argue that attitudes are functionally related to behavioural
intentions, which predict behaviour.
A person's intention to behave in a certain way is contingent upon the attitude toward
performing the behaviour in question and the social pressure on him/her to behave in that way
(subjective norm).This suggests that attitudes and subjective norms differ according to the person
involved and behavioural context. Theory of Planned Behaviour (TPB), which is an extension of
Theory of Reasoned Action (TRA), has introduced another factor that affects behavioural
intention, which is the perceived behavioural control. Control beliefs and perceived power are
the main construct of perceived behavioural control (Mackenzie & Jurs, 1993). Consumers vary
in their commitment to attitude; the degree of commitment relates to their level of involvement
with the attitude object. This commitment ranges from inertia to a strong emotional passion.
Commitment might be based on customers’ intentions as want, expectation, plans for the future
(Sunderland, 2002 and 2010) and even emotional attachment to a product. We concentrated more
in this study on customer‘s intention to use a product in the future and recommend such to
friends. In the behavioral attitude, behavioral patronage or usage measures are based on
observable responses to, object, promotional stimuli-repeat purchases, and number of purchase,
usage, behavior, than attitude rather towards the product or brand (Schiffman and Kanuk 2009).
Critically, it neglects the psychological aspect of patronage. The theory of reasoned action as
expanded from Fishbein’s model aims to measure and support behavioral intention, recognizing
that certain uncontrollable factors limit our ability to predict the future with 100 percent
accuracy.

2.2.5 Brand Image and Customer Patronage

The quality and quantity of brand promotion, image, and reputation can influence
consumer patronage. Yi et al (2008) study found that corporate image positively relates intention
to buy and behavioral patronage. Both brand image and Corporate Social Responsibility (CSR)
have become crucial for influencing organizational value through customer intentional and
behavioral patronages (Blumetha and Berystrom, 2003; Nguyen and Leblanc, 2001). Similarly,
Andreassen and Lindestad, (1998) found that good corporate image and reputation help to
increase firm’s sales, market share and to establish and maintain a loyal relationship with
customer. A favorable store image can influence repeated patronage (Dick and Basu, 1994). In a
related study Chaudhuri and Holbrook (2001) and recently Boohene and Agyapong (2011) in
Ghana showed that brand image and brand effect, combine, determine purchase loyalty and
attitudinal loyalty.

2.3 The Concept of Promotional Activity and its Importance

A specific combination of promotional methods used for one product or a family of
products. Elements of a promotion mix may include print or broadcast advertising, direct
marketing, personal selling, point of sale displays, and/or merchandising.
As one of the marketing mix elements, promotion includes all the activities directed to
the targeted consumers, that lead to facilitate the process of contacting with them for the purpose
of formatting a sense of the importance of the commodity in achieving a high degree of
consumers satisfaction of their wishes and needs comparing with the competitors commodities,
and so, the concept of promotion extends to all personal, and non-personal contact, such as
advertising, public relations, exhibitions, sales promotion, packaging, branding, samples and
gifts, etc..
The primary purpose of the promotion is to contact the consumer and influence his
decision. Effective promotion requires of both understanding and knowledge of the persuasion
process and how it is affected by various environmental variables, the targeted consumers must
be able to understand all the information he receive, and then the desired information must be
formulated in the light of environmental considerations associated with consumer culture before
delivered (Abdel-Fattah, 1988). The promotion can be defined as a “marketing activity involves
the persuasion contacting process through which the sender define of a commodity, or service, or
an idea, or a place, or a person, or a pattern of behavior for the purpose of influencing the
members of a particular audience minds, to appeal to their response behavioral about what
promotes” (Mualla, 2006).
Promotion has an important role in forming of loyalty and psychological connection
degree between the consumer and the product, the ad campaign, and the formulation of a
sentence that create loyalty to the product play a major role in the success of achieving the
objectives of the promotion policy (Mualla, 2006). It could be argued that the target of the
promotion policy is mainly to develop of the market share of the Company, and to present to
consumer adequate definition of the product, as well as to clarify how it is used (Abdul Hakim,
2004).
There are several promotional goals, and the most three main objectives the company
seeks to achieve through the promotion are:
i. Forming the appropriate mental image for the company: When the company marketed its
products, seek to form a consumer mental image about the company by defining itself, and its
goals in the early stages of the company’s entry to the market (Abu kahaf, 2001).
ii. Defining of the company’s product: in general, the main task of the promotion is to define the
product, specifications, price, places of distribution, how to use it, and places of service centers
and maintenance, besides, trying to convince consumers of its benefits (Abdul Hamid, 1990).
iii. The development of the company’s market share: promotion is considered one of the main
tools the company relies upon to develop its market share, where consumers could be convinced
with the available features in the company’s product, thus the consumers demand on the
company’s product will be increased. In addition to, some consumers turning into buying the
company’s product instead of buying competing products, which means an increasing in the
company’s market share (Ansari, 1988).
2.3.1 Promotional Mix
According to Ross (2001) he defined promotion mix as “total marketing communication
program of a particular product”. Adebisi (2006) defined promotion mix as “any marketing effort
whose function is to inform present or potential consumers about the benefits of product possess
for the purpose of inducing a consumer to either start buying or continue to buy the company
product or service.” Promotion mix refers to describe the set of tools that an organization can be
adopted to communicate in effective way the benefits of its products to its consumers. In order to
ensure that organization promotion strategies is well accepted and received by its consumers, the
organization should have a strong way of communication because good communication skills
and effective promotion is a tool for every organization to compete in the industry (Nor Amira et
al, 2013).
The promotional mix or marketing communications program term is a set of components
that interact and integrated together to achieve the institution promotional objectives in the
context of the prevailing marketing philosophy (Kotler & keller, 2006). Marketing mix includes
an effective set of balanced and consistent components and elements to achieve the promotional
objectives, including: advertising, personal selling, sales promotion, publicity, and public
relations. Below is a brief explanation of each:
i. Advertising
Kotler &Keller, (2006) he defined advertising as any paid form of non-personal form of
marketing communication about an organization, product, service or an idea by an identified
sponsor. The non- personal component of advertising involves using mass media such as (TV,
Radios, newspapers, magazines, etc).Which is non personal and do not have an immediate
feedback as personal selling does and is implemented by a specific advertiser for a fee paid to
influence consumer behavior. According to Wang, (2009) advertising is one of the most primary
communication links with customers, hence customers' desired image and language along with
culture, economy and commercial changes must be kept in mind, and hence advertising helps in
building brand awareness and image by repetitive exposure to intended message. This
promotional activity can be measured through: the advertising medium used, advertising size, the
duration of the advertisement, the technical advertising output, the repetition of advertising, the
content of advertising, and the drafting of advertising.
ii. Personal Selling
Is defined as a verbal communication and face-to-face interaction with one or more of the
potential buyers in order to provide the product or service, or to answer questions, or to respond
to requests or others (McCarthy & Perreault, 2004). According to De Pelsmacker et al., (2001)
personal selling can be defined as, face-to-face communications tool used to inform and maintain
to establish a long-term relationship with prospective customers. Kotler (2000) noted that
personal selling is a useful tool to communicate with present and prospective buyers. Personal
selling involves two ways flow of communication between a buyer and seller designed to
influence consumers buying decisions. Furthermore according to Fill, (2006).
The main feature of personal selling is the effect it has, it mean that a salespeople is more
likely to break through, get consumers attention and even be remembered later on. The
salespeople have the chance of adjust the message to the type of customer dealing with. Since the
communication is two-way there is less danger of misunderstandings because salespeople can get
feedback immediately and in the spot. Weitz et al., (2004) noted that the crucial role of
salespeople are to engage and gather information related to a potential customer, adapt a sales
strategy based on that information, carry a message that implement organization strategy
evaluate the effect of these messages and make adjustments upon this evaluation. This
promotional activity can be measured through: the level of training and skills of sales staff, the
style and appearance, the possibility of providing information, capabilities in solving problems,
displaying, verbal persuasion, and style presentation, etc..
iii. Sales Promotion
Is defined as any marketing or non-marketing effort or activity in which marketing or
non-marketing means are used at a particular time to stimulate increased demand or to prove the
availability of the product (obydat, 2004). According to Cuizon (2009) stated that sales
promotion method used by the seller are not only effective in succeed in achieving short-term
sales but are also more cost effective than advertisement. Nema et al., (2012) classify sales
promotions as Consumer Sales promotion and Trade Sales promotion. According to their study,
consumer sales promotions indicate to any short term promotion methods destined by retailers to
boost customer immediate response to the products.
This promotional activity can be measured by individual and collective selling types of
awards, free gifts and subscriptions, economic packages offers, free samples, rebates, the
multiplicity of services, sales offers events, sales offers duration, dissemination methods,
realized credibility.
iv. Publicity
Is defined as any unpaid broadcasting or publishing about positive or negative news of
the company, or its products and activities by using mass media.
v. Public Relations
Interested in building a good relations between the organization and its audience, and
achieving satisfaction and mutual understanding, either internally or externally, through the
implementation of policies and programs based on the principle of social responsibility, and
employing media to build a good image of the organization. They also include all activities
carried out by the organization in order to enhance or improve its image in the community such
as supporting and participating positively in social, environmental, health, and public issues
(Lovelock & Wirtz, 2004).
Any organization is Interesting to build and maintain strong relations with its consumers,
to achieve satisfaction and completely mutual communication, either internally or externally,
through the implementation of policies and programs based on the principle of social
responsibility, and employing media to build a desired image of the organization. They also
include all activities used by the organization to improve its image in the community such as
supporting and participating positively in social, environmental, health activities, and public
issues (Lovelock &Wirtz, (2004). This promotional activity can be measured through: the areas
of social activities these companies carried out such as support social business and charity, teams
and clubs Sports, support loyalty of customers, accept audience complaints and criticisms,
address problems and issues, interest in the field of environment and health.

2.4 Consumer Buying Behaviour

Consumer behaviour is the study of how individuals, groups and organizations select,
buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants
(Kotler and Keller, 2009). According to Schiffman and Kanuk (1997), the study of consumer
behavior focuses on how individuals make decisions to spend their available resources (time,
money, effort) on consumption related items. Belch and Belch (1998) also defines consumer
behavior as the process and activities people engage in when searching for, selecting, purchasing,
using, evaluating and disposing of products and services so as to satisfy their needs and desires.
Behavior occurs either for the individuals or in the context of a group or an organization.
Schiffman and Kanuk (1997), distinguished between two different types of consumers
which are personal and industrial consumers. Personal consumers purchase goods and services
for their own use, household use or as a gift to someone else. Organizational consumers on the
other hand purchase goods and services to run an organization including both profitable and non-
profitable organization, government and nongovernmental organizations.

2.4.1 Consumer Purchasing Decision Process

The purchasing decision process describes the process a customer goes through when
buying a product. There is a common theme of five stages in the decision process. The stages
are:
i. Need Approval
We must admit that the most important step in the purchasing decision is need approval.
Without this step, a purchase cannot take place. The unsatisfied psychological need can be
stimulated by the interaction of external stimuli with internal drives (kotler, et al., 2009).
ii. Information Gathering
Searching for the best solution for the problem resulted from the need approval is the
second stages in the decision process. In this stage the buyers’ seek at searching in the internal
and external business environments to identify and observe sources of information related to the
item or commodity that satisfies his/her need (Blythe, 2008). Gathering information relying on a
variety of information sources such as different media, friends, family, coworkers and personal
experience. The nature of the information needed by the consumer are related to the quality of
item, its characteristics, its price, method of payment of the price, etc.
iii. Evaluation of Alternatives
After providing the necessary information, the buyer makes an assessment to the various
of available alternatives related to the item to be purchased, a set of criteria in the evaluation
process are used, and these standards differ from buyer to buyer depending on their,
psychological and demographic characteristics, as well their purchasing power.
iv. Purchasing Decision
The final purchasing decision which is the result of the evaluation process and the choice
among available alternatives to choose the appropriate item that satisfies buyers needs and
desires, can be affected by two factors: negative feedback from other customers and the level of
motivation to refuse or accept the feedback (kotler, et al., 2009).
v. Post - Purchase Evaluation
 After purchasing process buyers compare products with their previous expectations and
are either satisfied or dissatisfied. If the product correspond and comes according to their
expectations, they will be satisfied, and vice versa. Buyers satisfaction will affect the decision
process for a similar purchase from the same company in the future (Foxall, 2005) when the
product complies with the buyers’ expectations similar purchase from the same company in the
future will happen which leads to brand loyalty.

2.4.2 Types of buying decision behaviour

Buying behaviour differs greatly for a tube of toothpaste, an iPod, financial services, and
a new car. Decisions that are more complex usually involve more buying participants and more
buyer deliberation.
Complex buying behaviour
Complex buying behaviour is the “consumer buying behaviour in situations characterized
by high consumer involvement in a purchase and significant perceived differences among
brands”
(Kotler & Armstrong, 2008). It occurs in situations when the consumer has much to learn about
product category as for example a PC buyer for whom many product features, such as “4GB
dual-channel DDR2 DRAM memory”, have no real meaning. Thus, the buyer will pass through a
learning process, first developing beliefs about the product, then attitudes, and then making a
thoughtful purchase choice. “Marketers of high-involvement products must understand the
information-gathering and evaluation behaviour of high-involvement consumers. They need to
help buyers learn about product-class attributes and their relative importance. They need to
differentiate their brand’s features, perhaps by describing the brand’s benefits using print media
with long copy. They must motivate store salespeople and the buyer’s acquaintances to influence
the final brand choice.”(Kotler & Armstrong, 2008).
Dissonance-reducing buying behaviour
Dissonance-Reducing buying behaviour is the “consumer buying behaviour in situations
characterized by high involvement but few perceived differences among brands” (Kotler and
Armstrong, 2008). For instance, consumers buying carpeting are confronted with a high
involvement decision because carpeting is expensive and self-expressive. Due to the fact that
perceived brand differences are not large, buyers may shop around toe see what is available, but
buy very quickly. Their response may be generated by purchase convenience or a good price.
After buying the product, the buyer may experience post-purchase dissonance (after-sale
discomfort) if they observe certain drawbacks of the purchased item or if they receive
information favourable for the brands not purchased. “To counter such dissonance, the
marketer’s after-sale communications should provide evidence and support to help consumers
feel good about their brand choices” (Kotler & Armstrong, 2008).
Habitual buying behaviour
Habitual buying behaviour is the “consumer buying behaviour in situation characterized
by low consumer involvement and few significant perceived brand differences” (Kotler and
Armstrong, 2008). In general, consumers manifest low involvement with the majority of cheap,
frequently purchased products. Taking sugar as an example, few consumers are highly involved
in this product category; they simply go to the store and buy sugar, irrespective of its brand. If
they repeatedly buy the same brand, it is merely the result of habitual behaviour rather than
strong brand loyalty.
Given these circumstances, consumer behaviour does not run through the above-
mentioned belief-attitude- behaviour sequence. Consumers neither research thoroughly for
information about the brands, nor rate brand properties nor make significant decisions about
which brand to buy. This is due to the fact that they passively receive information as they watch
television or read magazines. “Ad repetition creates brand familiarity rather than brand
conviction. Consumers do not form strong attitudes toward a brand; they select the brand because
is familiar. Because they are not highly involved with the product, consumers may not evaluate
the choice even after the purchase. Thus, the buying process involves brand beliefs formed by
passive learning, followed by purchase behaviour, which may or may not be followed by
evaluation.” (Kotler & Armstrong, 2008).
In advertising for low-involvement products, ad copy should emphasize only a few key
elements. Visual symbols and imagery are significant because the consumer remembers them
easily and associates them with the brand. Ads should comprise high repetition of short-duration
messages, especially effective in television rather than in print media, being a low-involvement
medium favourable for passive learning. “Advertising theory should be based on classical
conditioning theory, in which buyers learn to identify a certain product by a symbol repeatedly
attached to it.” (Kotler & Armstrong, 2008).
Variety-seeking buying behaviour
Variety-seeking buying behaviour is the “consumer buying behaviour in situations
characterized by low consumer involvement but significant perceived brand differences” (Kotler
& Armstrong, 2008). In this case, the consumer does a lot of brand switching, simply for the
sake of variety rather than because of dissatisfaction. “In such product categories, the marketing
strategy may differ for the market leader and minor brands. The market leader will try to
encourage habitual buying behaviour by dominating shelf space, keeping shelves fully stocked,
and running frequent reminder advertising. Challenger firms will encourage variety seeking by
offering lower prices, special deals, coupons, free samples, and advertising that presents reasons
for trying something new.” (Kotler & Armstrong, 2008).

2.4.3 Factors affecting consumers’ purchasing decision

Consumer behavior studies individuals and groups when they select, purchase, use and
dispose products, ideas, services or experiences. There is a huge variety of consumers from a
small child asking mum to buy a new game to an international corporation executive making a
huge investment deal. Consumers seek items to satisfy their basic needs and desires. Consumer
behavior is much more than studying what consumers buy. It attempts to understand how the
decision-making process goes and how it affects consumers’ buying behavior. (Solomon 2004)
Marketers study consumers buying patterns to solve where they buy, what they buy and why
they buy. However, why consumers buy a specific product is not easy to solve because the
answer is locked deep within the consumers’ mind. (Kardes et al. 2011; Kotler & Armstrong
2010.) A consumer’s buying behavior is influenced by cultural, social, personal and
psychological factors. Consumer behavior is a part of human behavior and by studying previous
buying behavior, marketers can estimate how consumers might behave in the future when
making purchasing decisions. (Kotler & Armstrong 2010.) The following chapters focus on the
social, personal and psychological characteristics of consumer behavior.
i. Social factors
Social factors affect consumer behavior significantly. Every individual has someone
around influencing their buying decisions. The important social factors are: reference groups,
family, role and status. (Perreau, 2014.) Every consumer is an individual, but still belong to a
group. The group to which a consumer belongs is called a membership group. This is a direct
and simple classification.
Reference Group: The reference group influences the self-image of consumers and consumers’
behavior. The reference group provides some points of comparison to consumers about their
behavior, lifestyle or habits. Usually there are many smaller reference groups, which are formed
by family, close friends, neighbors, work group or other people that consumers associate with.
The groups to which a consumer does not belong yet can also influence. These aspirational
groups are groups where a consumer aspires to belong and wants to be part in the future. (Kotler
& Armstrong 2010; Khan 2006).
Family: Family members can influence individual consumers’ buying behavior. A family
forms the environment for an individual to acquire values, develop and shape personality. This
environment offers the possibility to develop attitudes and opinions towards several subjects
such as social relations, society and politics. A family creates first perceptions about brands or
products and consumer habits. (Kotler & Armstrong 2010; Khan 2006.) For example, the
consumers who have created brand perceptions when they were young, can carry out these same
brand selections in the adult life without even recognizing that their family influenced these
selections.

ii. Personal factors

An individual’s decisions are influenced by personal factors such as a buyer’s age and
life cycle state, occupation, economic situation, lifestyle, and personality and self-concept.
Consumers’ change during their life and buying of products alter depending on age and stage of
life. Age related factors are such as taste in food, clothing, recreation and furniture. Moreover,
environment, values, lifestyle, hobbies and consumer habits evolve during lifetime. Family life
stages change purchasing behavior and brand selection. Traditionally a family life cycle included
only young singles and married couples with children. Nowadays marketers are focusing on
alternative, nontraditional stages such as unmarried couples, childless couples, same sex couples,
single parents and singles marrying later in life. (Kotler & Armstrong 2010.) It can be assumed
that consumers’ taste can change during lifetime and has influence on coffee brand selection in
different stages of life.
 A consumer’s occupation and purchasing power influence purchasing decisions and
buying behavior. The income level affects what consumers can afford and the perspective
towards money. People, who share similar occupations, tend to have similar taste in music,
clothing and leisure activities. They usually socialize with each other, and share the same kind of
values and ideas. Income level affects on what consumer can afford and perspective towards
money. (Solomon 2004.) Individuals from lower income groups are probably more interested in
buying products that are necessary for survival than spending on luxury brands or designer
clothes.
iii. Psychological factors
A buyer’s choices are also influenced by four psychological factors, i.e. motivation,
perception, learning, and beliefs and attitudes. A consumer is an individual who has different
kind of needs. These needs can be biological like thirst or psychological arising from the need of
recognition or belonging. A need can be aroused to a sufficient level of intensity when it alters a
motive.
Motivation: A motive is basically a need that drives a person to seek satisfaction. Abraham
Maslow is probably the most know psychologist who has examined these human needs. He
sought to explain why humans are driven by different needs at different times. (Kotler &
Armstrong 2010.) Maslow’s needs are:
1. Physiological: basic need such as sleep, food or water.
2. Safety: need to feel secured and protected.
3. Belongingness: need to feel loved and be accepted by others.
4. Ego needs: to accomplish something and have status among others.
5. Self-actualization: to have enriching experiences and feel self-fulfillment.
(Solomon 2004)

Perception: A person acts according to his or her perception of the situation. Each person
receives thousands of sensory stimuli like light, color, sound, smell, taste and texture per day.
Perception is the process through which these sensations are selected, organized and interpret to
form meaningful picture of the world. People have a possibility to form different perceptions of
the same stimuli due to three perceptual processes: selective attention, selective distortion and
selective retention. At the selective attention process an individual focuses only on a few
stimulus that he is exposed. Consumers might neglect many stimuli in the environment and only
focus on those related to their current need. For example, a consumer who desires to have a new
car will pay more attention to different car ads while neglecting ads about houses. Selective
distortion describes how people will interpret information in the way that it supports what they
already believe. Every individual have different perception based on own experience, beliefs and
attitudes. Selective distortion leads people to situations that are compatible with their beliefs and
values. For example for brands, the message that brands communicate will never be the same
among different consumers. When people are exposed to a huge amount of information and
stimuli, they are not able to retain all of it. Selective retention means what person will retain
from particular stimuli or situation. This can be seen when consumers remember good points
about brand they favor and forget everything good about rival brand. (Kotler & Armstrong
2010.)

Learning: When people are motivated, they are ready to act. Learning comes from action.
Learning illustrates changes in a person’s behavior that emerge from experience. People can also
learn by observing others without having their own personal experience. Learning can happen
even unconsciously. Consumers can hum many jingles and recognize several brands even
without using those themselves. This is known as incidental learning. People can learn all the
time. Consumers’ knowledge of the world changes constantly as they are exposed to new stimuli
and situations. They can receive feedback that allows them to alter behavior when finding
themselves in the same kind of situation than before. (Kotler & Armstrong 2010; Solomon
2004.) The consumer who has negative experience with a coffee is more likely to avoid that
brand in the future because he remembers the previous experience with that.
Belief: Through learning and experiencing, consumers acquire beliefs and attitudes. A belief is a
vision that consumer has on something. It can be based on real knowledge, faith or opinion.
External influence like family or neighbors combined with learning produces beliefs that will
influence consumers’ buying behavior. Different kind of people have different attitudes
concerning religion, politics, food, music and many more. The attitude describes consumers’
feelings or evaluations toward an object or idea. Both beliefs and attitudes are hard to change.
Those are anchored deep in consumers mind and can be part of a person’s personality. (Kotler &
Armstrong 2010.)

2.5 Theoretical Review

2.5.1 Elaboration Likelihood Model
Inman, McAlister and Hoyer (1990) used the Elaboration Likelihood Model (ELM) to
provide a behavioral explanation for the effect of promotional signals and promotional price cuts
on consumer brand choice. As per the ELM model, there are a continuum of ways by which
choice may be affected as a result of exposure to a stimulus. At one end of the continuum is the
central route to persuasion where a consumer actively and cognitively evaluates information
central to a particular evaluation. At the other end of the continuum is the peripheral route to
persuasion where simple inferences or cues in the persuasion context are given more weight than
consideration of actual product attributes.
Inman et. al. (1990) proposed that a consumer traveling the ELM’s central route to
persuasion would consider the promoted brand’s relative price and other information about the
promoted brand before making a choice. On the other hand, a consumer traveling the ELM’s
peripheral route would consider only the promotional signal and react to a promotion. The
authors further stated that need for cognition2 would moderate the route to persuasion such that
high need for cognition individuals would be more likely to take the central route to persuasion
while low need for cognition individuals would be more likely to take the peripheral route.
Inman et. al. (1990) tested the interaction of subjects’ need for cognition and their reactions to a
posted ‘special’ price that signaled a promotion but offered no discount at all and a promotional
price accompanied by a regular price. They found that low need for cognition individuals needed
only promotional signal to increase purchase likelihood while high need for cognition individuals
needed the external reference price and regular price to calculate the size of the price cut.
Inman et. al. (1990) explained consumer response to promotion in terms of an individual
difference variable, namely need for cognition. However the link between need for cognition and
other managerially actionable demographic variables is not known. Moreover, attempts to
identify the promotion sensitive consumer in terms of demographic characteristics have not been
very successful. Most research has indicated a very modest relationship between demographic/
socioeconomic variables and response to promotion. (Mittal, 1994).
2.5.2 Attitude Model
Multi attribute models of attitude (Fishbein and Ajzen, 1975) depict the consumer’s
decision to perform a specific behavior as the logical consequence of beliefs, attitudes and
intentions with regard to the behavior. As per this model, a consumer’s intention to buy a brand
may be based on positive/negative attitudes towards a promotion. Babakus, Tat and Cunningham
(1988) examined the impact of three attitudinal dimensions – price consciousness, time value and
satisfaction/pride – on consumers’ decision to use coupons. Results of their study showed that
there was a positive relationship between coupon usage and consumer price consciousness.
There was a significant negative relationship between coupon usage and perceived value of time
indicating that the more a consumer valued his or her time, the lesser was the tendency to use
coupons. The authors found that coupon usage increased when the consumer perceived higher
satisfaction and pride with the use of coupons.
Shimp and Kavas (1984) applied the theory of reasoned action to understand consumer’s
decision to use coupons. As per the model, behavior towards coupons would be influenced by
consumer intentions to use coupons. Consumers’ intention to use coupons would be determined
by their attitudes and subjective norms. Consumers’ attitudes would be formed through their
beliefs in the rewards and costs of using coupons while subjective norms would be formed
through consumers’ perception of whether important others think they should expend the effort
to clip, save and use coupons. Results of the study showed that beliefs in the rewards of using
coupons had high positive correlation with attitude while inconveniences and encumbrances had
weak negative correlation with attitude. The authors found that both attitudes and subjective
norms exerted an important influence on intention to use coupons. The results showed a clear
link between consumer’s intentions to use coupons and their self-reported behavior in actually
doing so. Although attitude models provide important insights into the consumer decision-
making process, researchers have found discrepancies between stated attitudes and actual
behavior in several studies (Perry and Gillespie, 1976; Keesling and Kaynama, 2003). Studies in
different contexts have shown that attitudes are actually poor predictors of behavior. This
possibly accounts for the limited application of attitude models to examine consumer response to
promotions.

2.7 Empirical Review of the Study

Zhang, (2015) assessed the Impact of Brand Image on Consumer Behavior: A Literature
Review. The perceived and real satisfaction of customers has been long linked with the brand
image of a product or an organization. There are an appreciable number of literatures that
supports this assertion. Through customer satisfaction, consumers build loyalty towards a
particular brand and influence their buying behaviour both directly and indirectly. In the study it
was ascertained that brand image does not have direct impact on loyalty but through customer
satisfaction consumers build loyalty. Hatch et al., (2001) describes corporate branding as an
organizational tool whose successful application depends upon attending to the context in which
it is used. Branding and particularly, corporate branding should be sensitive to three key
elements; organizational culture, organizational vision and most importantly the image of the
organization. There should be a proper coordination between stakeholders, management, and the
employees of the organization to have a wider scope and deliberations about corporate branding
and image.
. Knox & Balmer, (2001) examined corporate identity, corporate branding and corporate
marketing seeing through the fog. The researcher emphasized that top managements of
organizations never understood the power of branding until recently where organizations have
incorporated branding into their strategic goals and due to competition within the market,
individual organizations use branding to distinguish itself from other competitors. Similarly, Tu
et al. (2012) ascertained Corporate Brand Image and Customer Satisfaction on Loyalty: An
Empirical Study of Starbucks Coffee in Taiwan. Tu et al. (2012) indicated that organizational
branding directly affects customer satisfaction. This finding was affirmed by the results of
Johnson, Andreessen, Lervik & Cha, (2001); and Davies et al. (2003). In addition, the study
found that the level of customer satisfaction adequately influences customer loyalty which was
supported by the findings of (Eakuru and Mat 2008; Ogba & Tan, 2009, Johnson, Andreessen,
Lervik, & Cha, 2001; Martineau, 1958; and Selnes, 1993). Uggla (2005) analyzed and discuss
the strategic positioning of associations that can be established between a corporate brand and
entities in its surrounding network such as brands, product categories, persons, places and
institutions.

In the same direction, Shah, et al., (2012) studied the core of brand image, brand attitude
and brand attachment with environmental consequences to testify the impact on the consumer
purchase intentions. The study concluded that attitudinal formations towards smoking are most
formed through the brand of cigarette that are commonly used by the masses. This indicates that,
popularity of brand among customers influences others to purchase the same product based on
the trusts and acceptance of other consumers. The study found that smokers give less
consideration to the harmful effects that their actions are having on the environment just to
gratify their personal desires.

Based on Vidhya and Ramesh (2017) findings, it was found that there is a significant and
strong influence of promotional mix on consumer buying behavior of natural cosmetic products.
It also found that advertisement and sales promotion are considered as a major influencing factor
to prefer natural cosmetic products. According to Nouret al., (2014) studied the degree of
promotion mix elements used by Jordanian shareholding Ceramic and glass production
companies. The results of the study indicated that the degree of Promotion activities used in
Jordanian shareholding Ceramic and glass production companies, which has ranked according to
their importance are as followed: Advertising, personal selling, sales promotion, followed by
publicity, and finally, public relations. Furthermore, according to nor Amira et al., (2013), in
their study, they found that the four independent variables that have been used (advertising,
internet marketing, public relation, personal selling) have contributed to only 31.5 percent of the
buying decision by the target consumers. It reveals that there are other variable (68.5 per cent)
that may contribute to the buying decision of the target audience. Thus, the automotive industry
in Malaysia should enhance other promotion strategies and tactics such as sales promotion, road
shows and sponsorship event to enhance the consumers‟ attention, arouse the customers‟ interest
and desire and finally lead the consumers action to purchase the car. In a nutshell, the automotive
companies in Malaysia have used the common promotional strategies to attract the customers to
purchase their cars but there are still other means or ways that need to be improved by companies
to ensure that the promotional strategies are well received and would affect the purchasing
decision of consumers.

In addition, Sukhmani et al.,( 2012),they studied the role of elements of promotion mix
which can help the companies in increasing their sales, the participants were asked to rate the
elements in ethnical issues involved with the product ,distribution channel ,PCL stage,
Government Regulations, market size and location and strategies for competitors. The factors
chosen by the rural consumers which they consider accountable for deciding the optimal
promotion mix confirm the level of awareness among the rural participants regarding the
elements of promotion mix. Each of the elements of promotion mix has its own effect on the
rural masses. They understand the significance of various elements of promotion mix in
increasing the sales of the company where in public relations have been considered as the most
important element, followed by Sales Promotion, Direct Marketing, Advertising and Personal
Selling. Observations clearly depict the role of various elements of promotion mix in increasing
sales of the companies.
According to Jakstiene, et al. (2008) advertisements shape the behaviors of the people
through cognition, which is the perception of a person towards the information communicated
through advertisements. Sharma and Sharma (2009) found that, besides advertising, factors like
company’s brand, quality of the product and company’s reputation affect the sales of a company.
Kumar, et al. (2011) found that, advertising and sales promotion together with the image of a
company influence the consumer buying decision. They added that, the quality and price of a
product also influences a consumer’s purchase of a good.
Chandon, Laurent, and Wansink (2000) indicated that sales promotion may be gorgeous
for well promotion prone consumers for reasons beyond price savings. Many consumers change
brands so that they could receive greater deals that replicate and build up their smart buyer self-
perception, and these consumers are favorably promotion prone, these consumers make an
attempt to try a new product or service that have been promoted. Discount play an important role
in today's markets and its application among retailers has been increasing during the last years
and many empirical evidences confirm the use of temporary decrease of price to increase short
term sales (Martınez, 2006). The reduce in product prices play key parts in persuading
customer’s product test behavior and through this new customer can be paying attention
(Blackwell, Miniard & Engel, 2001). Coupon has direct influence on increase of the sale through
which consumer’s tendency toward the product increases (Meng, 2009).
Ahlam (2006) indicated that workers in personal selling work to convince consumers to
make a purchase decision and that the personal characteristics, which are characterized by a man
showing great personal strength and confidence and the ability to persuade and negotiate, are
instrumental to winning consumers, influencing buying, guiding decision about replacement of
items and even trying to help them get unavailable commodities they are seeking to buy. Ziad
(2010) revealed that salespersons’ credibility, commitment to the promises, patience in dealing
with customers and their appearance have a great impact on customer satisfaction. Retail
merchants in direct sale stores have a fundamental role in gaining customers, providing them
with relevant information that affects their buying decision. (Azam et al., 2016).
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