View of IMPACT OF BRAND EQUITY ON BUYERS OF LUXURY PRODUCTS - A STUDY ON ATTITUDE OF CONSUMERS IN HYDERABAD CITY

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Vol.04,Special Issue 06, (IC-IREASM-2019) October 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

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IMPACT OF BRAND EQUITY ON BUYERS OF LUXURY PRODUCTS - A STUDY ON ATTITUDE OF CONSUMERS IN HYDERABAD CITY

Dr. C. Kandasamy Associate Professor

Department of Management studies

Sree Dattha Group of Institutions, Sheriguda, Ibrahimpatnam, Hyderabad-501510 Abstract - Understanding the brands and consumer associations is vital for any business in search of to improve its competitive gain in the marketplace, be it a marketers functioning under a visibly defined and targeting brand uniqueness luxury products permits people to identify with others and recognize themselves. The brands can also perform as a pivot between a numbers of rival considerations. For instance, a luxury product brand may be predominantly expensive, but rich in figurative meaning. Luxury is also a product group where many aspects influence the purchasing method and ultimate brand choice. Sympathetic brand selection in the luxury invention purchasing process not only permits valuable insight for consumer, but for any business marketing a product that is rich in significance.

Corporations are very strong in stimulating brands and forming strong brand worth to exhibition their goods and keep its place in highly viableatmosphere so brand equity is a influence to achievement this. In luxury product segment the rivalry is precise tough, people desire the well-known brand so it is essential for companies to recognize the how expressively the brand equity and purchaser attitude impact the acquisition decision of consumers.

Consumers’ insolences are a permutation of consumers’ beliefs, feelings, and behavioralintents toward certain object. For Marketer it is typically attitude in the direction of a brand or store. Consumers nowadaysfocus more on how effortlesslyindividual can make the purchase decision, How well fixes the item rapid the values one prides himself on consuming and showing and What additional can one know about the thing before one purchase it.

Nowadays brands perform an integral portion in marketing strategy in catching consumer responsiveness. This is for the reason that brands have developed an imperative marketing constituent to the manufacturer and a rich basis of evidence for consumer. For the maker, brands offer a means of proof of identity for ease of conduct and tracing, a means of permissible protection of unique structures and of bestowing products with unique relations. Furthermore, brands indication quality ranks to consumer and can be successfully used to gain competitive gain, develop satisfaction from product depletion and secure monetary returns. To the consumer, a brand finds the source of the product, which in chance, allocates responsibility to the product maker and offers a promise or connection with the manufacturer of the product

Brand equity is one and only of the supreme valuable assets that a firm can have, and brand equity size and management continues to be significant areas of research in together academic and industry. Best of the research on brand equity has observed at the subject from the perspective of any the firm perspective or from a consumers’

standpoint usually involves gathering data on consumers’ attention set measures of brand equity, since the consumer through reviews or experiments, and using the data to measure the consumers’ perceptions, state of mind, and attitudes towards the brand. It may also include collecting data on the consumers’ exposed preference, using self-reported or definite purchase data, and using it to evaluate the incremental significance that the brand label has on the consumers’ utility and their subsequent choice. Solid brand equity has developed a very vital factor that influences consumers’ attitude of a brand. Success in brand management rises from accepting and managing brand equity properly to produce strong attributes that will stimulus consumers when creation their choices. Brand equity from the consumers’ perspective is valued because it recommends both specific strategies for marketing tactics and tactics and areas where study can be useful in support managerial decision making. It also persuades competitive spirit among manufactures in making quality products.

Keywords: Brand Equity, Luxury, Attitude, Consumers and Behaviour

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2 1 INTRODUCTION

Luxury is no lengthened restricted now a day to only the rich and the precise few but is presence used for bulk marketing now. The thought of luxury has been fluctuating dramatically from corner to corner time and culture. Earlier, luxury was associated with belongings like wines, champagne, fashionable clothes and sports. These days, individuals have become more affluent and luxury is aindistinct genre that is no longer the reservation of the elite. More and further consumers have augmented their financial position as the old standards of tradition and dignity have become less significant. People are having much more disposable revenue in contrast to earlier generations, subsequent in a tendency towards satisfying personal needs and objectives through experience.

Luxury brands lackof value that permits purchasers to distinguish themselves from others and international characteristic of identifiable styles or designs as well as the noticeably demonstrated self-images and social status look to be used for filling consumers’

needs for uniqueness. Consumer appearances of uniqueness inspiration may be exhibited by obtaining luxury , which may assistance individuals, establish a unique personal individuality and supposed that brands have since become a way of self-realisation and proof of identity as consumers move elsewhere mere consumption of product value.

Hyderabad makes available attractiveness in terms of reasonable rents, which is higher only in Pune amongst the Tier II cities. In accumulation, a huge amount of forthcoming supply in the next three years would obviously keep the impetus in consumption alive in the future. However, slighter household income and household expenses have ranked it lower.

2 LITERATURE REVIEW

Madhavl and John (2000) in their research focused on the level of perception and skill of product value with reference to refrigerators. The study was conducted with 150 randomly selected consumers and the aspects taken were quality, durability, availability, technology, economic service etc. they suggested that the manufacturers have to identify such gaps existing in different values and magnitude of differences based on this they must take steps to match the perception and experience. If this attempt is not made, they will be many dissatisfied buyers and in the long run the manufactures will be kept away from the market.Pradeep (2003)stated that the luxury products consumption which was 25 percentage of the total market in eighties has been growing rapidly and now exceeds 50 percentage. The author has also stated that rural marketing was neglected by most of the companies due to the concept of urban orientation. It is also true that many companies have not invested sufficient time and money to understand rural consumer. The author concluded that more rural research studies should be undertaken to understand rural consumers for better results because, the next big market revolution is rural marketing. A market survey conducted by Satya (2003) about television industry stated that urban and rural India contributed 50 percentages of overall colour television sales during 2001 which was 37 percentages in 1998. Experts attribute this rise in rural share to low price and easy financing.Suman and Shukla (2003) pointed out the survey conducted by NCAER about selected consumer luxury products. The study was conducted in both rural and urban areas on the basis of multistage, stratified sampling techniques. The study concluded with the fact that between 1987-88 and 1988-99 the income distribution of households has undergone a significant change, which the share of low income households in the total population decreased sharply which in turn leads to increase in consumer luxury products in both urban and rural areas but the proportion of rural is increasing at an increasing rate when compared to urban.

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3 2.1 Hypothesis Development

ATTITUDE MODEL

Chrlstossarmaniotis (2000)offered a procedure of building a reliable and valid measure for measuring precise attitudes towards recycling. Description of the field was the first step of the process, completed by applicable literature review. Next an originalpool of 71 substances was established. Aspect validity, through practiced and non-expert discussion clusters, was checked, foremost to 28 residual items. For more measure cleansing exploratory factor analysis, item-to-total correlation and Cronbach's alpha were used. This stage decided to a 13 substances of final measure. The measure was also checked for consistency and validity. Together of them showed to be well within adequate limits.

Further investigation might examination the suitability of the final measure, expending it as the core independent variable, to forecast recycling attitude. This is the calculation of recycling attitude done attitude variables, measured by a reliable and valid scale is the main influence of this research. On a practical source, a reliable prediction of reprocessingattitude maycontribution local and nationwide governments as well as companies to make right strategychoices. (Blackwell et al., 2006) enlightened that attitudes of ecological concern are entrenched in a person’s idea of self and the grade to which an individual observes him or herself to be an importantportion of the natural environment”. In conclusion, attitude signifies what customers like and dislike and customers’ product acquiringchoices are often based on their environmental attitude. Tan BooiChen and Lau Teck Chai (2010) study exposed that the present rapid growing in the economy and the shapes of consumers’ ingesting and attitude universal are the key cause of ecological deterioration. As the environment lasts to deteriorate, it has develop a persistent communityanxiety in the developed nations and has lately awakens emerging countries to the green drive. Outcomes from the multiple linear regression analysis exposed that customer attitudes on the government’s part and their own norm towards the environment donated significantly to their attitude on green invention. Additionalexploration revealed that individual norm was the greatest important giver to the attitude to green product.

Though, environmental defence did not pay significantly to shoppers’ attitudes on green product. The above influences lead us to the following hypothesis.

H1 : There is no significant relationship between consumer attitude and purchase of Luxury products.

Preceding few years have observed of growing demands for different buyer products (Chunawalla 2000). Growth in demand is a result of increase in income of the individuals and increase in flexible income too (Arora 1995). A growth in optional income outcomestypically in an increased expenditure by purchaser on those things that promotion their living values, besides, a tendency for people to operate their income for more comforts and services is also developing. Forceful competition among the sellers of consumer luxury’s (Sontaki 1999) and the growing awareness of consumers around their own needs is creation a major difference in marketing of consumer luxury’s (Kumar 1998). The above arguments lead us to the following proposition

H2 : There is no significant relationship between demographic variable and purchase of Luxury products.

Social Status Quality and Brand

Name Self- confidence

Self- confidence

Value Referral

Purchase Intension

Attitude

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4 3 RESULTS

3.1 Impact of Brand Equity Dimensions On Consumers, Attitude Of Luxury Products

In mandate to evaluate the influence of brand equity dominions on Customer attitude of luxury products, the multiple linear regressions by Ordinary Least Square (OLS) estimation and the outcomes are offered in Table. The outcomesexpression that the coefficient of multiple determination (R² ) is 0.59 and adjusted R² is 0.57 signifying the regression model is moderately fit.

Table 1 Impact of Brand Equity Dimensions on Consumer attitudeof Luxury Goods - Multiple Regression

Dimensions of Brand Equity Regression Coefficients t-value Sig

Intercept 4.144^** 9.005 .011

Brand awareness(X1) .312^** 6.837 .010

Brand Image (X2) .448^** 5.031 .010

Perceived Quality (X3) .362^** 6.579 .010

Brand Association(X4) -.007 -.286 .775

Brand Loyalty(X5) .056 1.644 .101

R² 0.59

Adjusted R² 0.57

F 2.358 0.01

N 500

Note: ** Significance at one per cent level Source: Primary & Computed Data

The falloutsspecify that brand awareness, brand image and perceived quality be necessary positive impact on Customer attitudeof luxury products at one per cent level of significance.

Henceforth, the null hypothesis of there is no significant impact of brand equity states on Shopperattitude of luxury goods is disallowed.

3.2 Customer Attitude Model Onluxury Products

In mandate to study the customer attitude on luxury products, a Structural Equation Model (SEM) was established and the fallouts are presented. In Structural Equation Model (SEM) for dimension of purchaserattitude of social status, quality & brand, self-confidence, value and brand recommendation were considered as exogenous factors and the purchaser overall attitude was measured as endogenous factors.

Table 2 Parameter estimates- SEM

Relationship Estimate Std Error P- Value Overall Attitude ← Social status .677 .013 ***

Overall Attitude ← Quality & Brand 1.01 .008 ***

Overall Attitude ← Self- Confidence 1.018 .012 ***

Overall Attitude ← Value .866 .017 ***

Overall Attitude ← Referral .968 .011 ***

Note: *** indicates significant at one per cent level

After the outcomes of structural equation model, the estimation for totalbuyerattitude againstsocial status is 0.677 and it is statistically substantial at one per cent level. It is inferred that the social status is straight and positively affects the overall purchaser attitude. Henceforth, the null hypothesis of social status has no significant positive direct consequence on overall client attitude is rejected. The approximation for overall buyer attitude besidequality and brand is 1.01 and it is statistically significant at one per cent level. It discloses that the superiority and brand is directly and positively influences the overall customer attitude. Hence, the null hypothesis of quality and brand has no significant positive direct outcome on overall shopper attitude is rejected. Temporarily, the evaluation for overall customer attitude against self- confidence is 1.018 and it is statistically significant at one per cent level. It is experiential that the self-confidence is directly and positively impacts the overall purchaser attitude Hence, the null hypothesis of self-confidence has no significant positive direct result on overall consumer attitude is disallowed.

The assessment for overall buyer attitude against value is 0.866 and it is statistically significant at one per cent level. It seems that the value is directly and positively affects the overall customer attitude. Henceforth, the null hypothesis of value has

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no significant positive direct effect on overall shopper attitude is rejected. Also, the assessment for overall referral is 0.968 and it is significant at one per cent level. It is strong that the referral is directly and positively influences the overall client attitude. Hence, the null hypothesis of referral has no significant positive direct effect on overall purchaser attitude is rejected.

The structural equation model for customer attitude on Luxury products is offered in Figure

The model fit parameters are presented in Table.

Table 3 Model Fit

Chi-Square Value P-Value GFI CFI RMR RMSEA 6.245 0.24 0.12 0.83 0.01 0.03

It specifies that it fits excellently with chi-square statistic of 6.245.The Goodness of Fit Index (GFI) is 0.12 and Comparative Fit Index (CFI) is 0.83. These GFI and CFI indicate that they fit perfectly. The standardized Root Mean Residual (RMR) is 0.01 and Root Mean Square Error of Approximation (RMSEA) is 0.03 indicate that they fit excellently.

Hence, the null hypothesis of there is no inter-relationship between customer attitudes for luxury products is rejected.

4 CONCLUSIONS

The consumer will recognize the social status the goods or brand earlier buying luxury products and the customers will refer the greatest product, the brand amongstsuperiority products are powerfully agreed by the consumers of luxury goods, while the customer will have self-confidence from numerousbasesbeforehandprocurement, the shoppers will relate or evaluate the numeral of substitutes before obtaining, the users will acquisition the product frequentlyafterfulfilled with the goods or brand are decided by the consumers of indulgence goods.The superiority is positively and abstemiously correlated with self-confidence, value and referral. The self confidence is positively and moderately related with value and referral.

Besides, value is also absolutely and moderately associated with referral. The demographic factors of age, educational qualification, monthly income marital status and family size are positively persuading the consumer’s purchase choices of luxury products.

REFERENCES

1. Aaker David. “Building Strong Brands”, The Free Press, New York, 2000, 2. Aaker, D. A. “Building strong brands”, New York: The Free Press, 1996.

3. Hutton, J.G. “A study of brand equity in an organizational-buying context”, J. of. Prod.& Brand Mgt, Vol.

6 No. 6, pp. 428-39, 1997.

4. Janghyeon Nam, Yuksel Ekinci and Georgina Whyatt “Brand equity, brand loyalty and consumer satisfaction”, An. of. tou. Res, Vol. 38, No. 3, pp. 1009-1030, 2011.

7.40

BRAND AWARENESS

33.40

BRAND IMAGE

10.28

PERCEIVED QUALITY

18.65

BRAND ASSOCIATION

9.46

BRAND LOYALTY

OVERALL BRAND EQUITY

1.04 1 e1

.73 1.09 1.03

.96 1.00 2.42

5.80 4.51 6.81 7.64

11.79 3.03 11.36

3.21 8.51

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5. Srivastava, Rajendra K. and Allan D. Shocker. “Brand equity: A perspective on its meaning and measurement”, Marketing Science Institute report, pp. 91-124, 1991.

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Internet Sources 1. baadalsg.inflibnet.ac.in 2. shodhganga.inflibnet.ac.in