Effect of experimental marketing on brand Equity

by
STUDENT FULLNAME

A thesis
submitted in partial fulfillment ofthe requirements
forthe degreeof MasterofBusiness Administration
to Officeof Research,Innovation &Commercialization
(ORIC), Institute of Business & Technology,
Karachi

Karachi, Pakistan
JANUARY, 2015
 Acknowledgem
ents

Acknowledgements areoptional to mention in thethesis document.

Here allthose who havesupportedyou in this researchwork areacknowledged.

ii
 Abstract

An Abstract is ashort summaryofyour research.It should cover theproblem statement,

hypotheses, research methods, results and conclusion.An Abstract writing should

rangefrom 150-250 words, in a singleparagraph.It is best to writean Abstract at the

completion of allthe chapters and compilation of theresearchresultswith the

conclusion.

3
 TableofContents
S.NO. DESCRIPTION PAGE
NO.

1. Acknowledgements.……………………………………………. ii

2. Abstract…………………………………………………………. iii

3. Listof Tables…………………………………………………… v

4. ListofFigures.…………………………………………………. vi

5. Chapter1:Introduction………………………………………… 1

1.1 Overview…….…………………………............................
1.2 Problem statement………………………………………..
1.3 Background, Objectivesand Significanceofthe study…..
1.4 Outlineof theStudy…………………………………….
1.5 Definitions…..…………………………………………….

6. Chapter2:LiteratureReview…………………………………… 3
(Note: Hypothesis(es)ofthe studyshould bedevelopedand
formulated after the extensive literature review inthe Chapter 2)
7. Chapter3: Research Methods………………………………….. 5

3.1 Method of Data Collection…………………………………

3.2 SamplingTechnique………………………………………..
3.3 Sample size……………………………………………….
3.4Instrument of DataCollection (ifapplicable)……………..
3.4.1 ValidityandReliabilitytest……………………….
3.5 ResearchModel developed ………………………………..
3.6 Statistical Technique……………………………………….

8. Chapter4: Results……………………………………………… 6

4.1 FindingsandInterpretation ofthe results………………….

4.2 Hypotheses Assessment Summary………………………...

9. Chapter5:Discussions,Conclusion, PolicyImplications and

FutureResearch........................................................ 7
5.1 Discussions.………………………………………………
5.2 Conclusion …………………………...…………………..
5.3 PolicyImplications……………..………….……………..
5.4 FutureResearch…………………………..……………….
10. References……………………………………………………….. 8
11. Appendix………………………………………………………… 10
 ListofTables

S.No. TABLE(S) Page

Number
1. 1.1Level of Headings 2
2. 2.1 Basic Citations Styles 4
S.No. FIGURE(S) Page
Number
 Chapter1: Introduction

1.1 Overview

The possibilities of empirical marketing related to fragrance are endless; from retailers

and hospitality to real estate. Creating a strong link between the brand and the entity that will be

stuck in long-term memory is an ideal opportunity to create a long-lasting and unique

experience. Empirical marketing can be loosely defined as a point of contact that enables

consumers to interact with the brand in a physical way. While touch, sight or sounds are obvious

types of contact that come to mind, the smell is the missing link in empirical marketing

strategies.

Each of these experiences emotionally connect the brand with consumers; whether by

happiness and excitement or anticipation and adventure. Regardless, memories and experiences

have been created and will never be forgotten, and will undoubtedly be constantly transmitted.

At a time when consumers expect better quality from brands and want to share their personal

experience online, these unforgettable events are essential for creating long-term relationships

with consumers.

Brand equity, or brand value, allows for the longevity of the company, increases its

power negotiation with resellers facilitates their international penetration, influence its share

price, and affects its profitability and its future cash flow, being a valuable asset of the

organization

1.2 Problem Statement

The research problem selected for this paper is to find out the effect of experiential

marketing in building brand equity. Zarantonello, L., & Schmitt, 2010 discuss the brand
experience scale to profile consumers and predict consumer behavior. Biedenbach&Marell, 2010

put some light on the impact of customer experience on brand equity in a business-to-business

services setting. Liao, 2017 discuss cognitive, experiential, and marketing factors mediate the

effect of brand personality on brand equity. Keng, 2013provide information about relationships

among brand experience, brand personality, and customer experiential value.

Ramaseshan&Tsao, 2007 put some light on moderating effects of the brand concept on the

relationship between brand personality and perceived quality.

The paper's aim is to assess the effect of experiential marketingthat incorporates the

strategies ofmanaging customer behavior in favor of the marketer and create brand equity.

Several studies have already concluded that the attitude towards the brand has a positive and

meaningful intent to purchase. It is verified that the attitude towards the individuals' brand can

intention to buy a particular brand and that the relationship between the brand and the purchase

intention varies according to the individual's experiential profile, being group of individuals with

a higher experiential profile.

1.3 Background, Objectives and Significance of the Study.

The heart of empirical marketing is to create an emotional relationship between the brand

and the consumer; a memory that we return to and is associated with a specific element or event.

And yet there is no better way to connect memories than just with the fragrance, the strongest of

the five senses. The possibilities of empirical marketing related to fragrance are endless; from

retailers and hospitality to real estate. Creating a strong link between the brand and the entity that

will be stuck in long-term memory is an ideal opportunity to create a long-lasting and unique

experience(Ramaseshan&Tsao, 2007).
 The previous research studies have explained the significanceof experiential marketing in

building brand equity. This knowledge of the brand about its consumers is consolidated as an

effect of differentiation towards its consumers. Knowing how consumers process the information

relevant to this brand-consumer relationship, the brand is able to identify its most sensitive points

(be they rational or emotional) to offer more appropriate proposals and promises with greater

satisfaction capacity. And consequently induce the consumer greater appreciation of the brand

based on their logical, utilitarian and rational approvals as well as on their feelings, experiences

and affective associations.

This study contributes in making better the performance of the organization by presenting

them the importance of experiential marketing for creating brand equity. The data analysis

strategy was based on the data reduction techniques, namely cluster analysis, with the goal of

identifying experience components of the brand and the groups of consumers. Following that

was the evaluation of the relationship between those components, the brand attitude and the

purchase intention.

The objective of the study is to find out the effect of experiential marketing in building

brand equity. The old concept that cheap is expensive is increasingly evident with the strength of

the internet and the ease of finding numerous competing companies and / or similar products

(Sahin, Zehir&Kitapç, 2011). The perception of value of the brand is then imbued by responses

and sensations obtained through the involvement of consumers in a relationship of greater

proximity, satisfaction, consistency, recognition and resonance with the brand.

The significance of the study is its contribution in making customer experience cheerful

and good after purchasing a certain product. Previous researches provide information about

experiential marketing that has a positive impact on sales of the product. A successful brand
awareness strategy is one that has a lot of credibility in the marketplace. That is, just your brand

or your slogan appears in some campaign that the receptivity of the clients raises.

1.4 Outline of the Study

The paper is based on the effect of experiential marketing in building brand equity.

Chapter 1 is about introduction of the selected topic in this research. 2nd Chapter begins with the

literature review about the variables selected for this research paper. 3rd Chapter provides

understandings about the research methodology selection for this paper. 4rth Chapter is about

comprehensive and statistical analysis. The last chapter includes the conclusion of the paper.

1.5 Definitions

Experiential Marketing:

Empirical marketing is a marketing that connects with the consumer on many levels - it

appeals not only to their emotions, but their logic and senses (Ramaseshan&Tsao, 2007).

Brand Equity:

Brand equity represents the brand value present in your product or service. It is a set of

intangible aspects, which attribute values to the business acting in the perception of its

consumers (Lee & Kang, 2012).

 Chapter2: Literature Review

2.1 Theoretical Background

Brand equity has a positive and significant influence on purchase of the consumers, but

contrary to what would be expected influence is not higher in the group of high experiential

consumers of the brand experience.Researchers argues that Traditional Marketing is outdated

and that companies need, urgently, to focus on Experiential Marketing strategies, since the

differentiation by part of the companies through the functional benefits of their products do not

last forever(Biedenbach&Marell, 2010).

In recent times, several authors have presented the construction of strong brands as a

factor differentiator. These brands should be able to generate interest and emotions in

individuals. Brands that they develop relationships with their consumers unique differentiation in

the markets where they are inserted, working at an intangible level difficult to be equated On the

other hand, consumers go beyond the functional benefits barrier of products in their searches,

they want experiences that can seduce them, that integrate their dimensions (sensory, affective,

intellectual and behavioral)(Zarantonello& Schmitt, 2010).

2.2 Variable Wise Impact

1. Brand Experience

Brand experience is the marketing strategy designed to engender deeper interaction

between a brand, its consumers and its partner. It can also be defined as unleashing positive

emotions and creating remarkable experiences that add value to the company's name. Each

meeting with the customer is an opportunity to use an appropriate strategy, create something

special and develop a good brand experience. And the goal is to develop a moment that puts a
smile on the customer's face, surpassing their expectations and creating something worthy of

being told to others (Dolbec&Chebat, 2013).

2. Brand Engagement

Consumers who are truly delighted with your brand start interacting with it and

promoting it spontaneously. Realize the degree of satisfaction of your customers and if they see

the real value of your brand. Campaigns start attracting visibility and only good content is

capable of engaging, which is capable of generating conversions. Speaking of "good content"

alone is very superficial, only a study of the public can tell what is relevant to these people. It is

crucial to be able to "talk" with your target audience to generate engagement and thus conversion

(Cleff, Lin, & Walter, 2014).

And speaking of real engagement, the Burger King in Norway in 2013 surprised one of

the most daring social media actions. The brand made a proposal to Facebook fans to find out

who their loyal fans were. The network offered a voucher with a free snack from the main

competitor, McDonald's, and whoever would accept it would be banned from the official Burger

King page. It's the result? The page lost 30,000 fans, with only 8,000 fans. According to the

company, it was much more advantageous to stay with fans who interact and are engaged than

with a very large number of fans who do not interact. According to the company, engagement

increased fivefold (Qader, I. K. A, & Omar, 2013).

3. Brand Visibility

When brands can be recognized in this way for their value, they only have to win. They

become respected references in the market. In this way, the value is perceived by the consumers,
who come to look for it by the trust that the company transmits before the market and the

competition. Finally, with more sales generated from this value, it is also much easier to keep

customers and keep growing(Lindgreen, Beverland&Farrelly, 2010).

The internet has changed people's consumption habits and marketing strategies have

needed to evolve to keep up with the new demands of the market. Nowadays, you have to be on

the web. After all, it is in the virtual space that many consumers search for products, research

opinions about companies and even finalize the shopping process. It is worth emphasizing that,

even putting all these tips into practice, hardly your brand will gain good visibility without any

investment (Ding, C. G. & Tseng, T. H, 2015).

4. Brand Equity

Ideally, the measurement of brand value will include both qualitative and quantitative

approaches. Focus groups can provide a good forum to explore customer perceptions and

motivation. The joint analysis can reveal key consumer decision-making processes. The effective

measurement of the brand value is fundamental for the development of the brand strategy and,

ultimately, supports the analysis of the return on investmentwhich brings us to a full circle,

returning to the perspective of financial results on brand equity.

A softer perspective analyzes the extent of the brand and the value that a brand leads to

the introduction of other products. This approach also considers the inverse dynamics of the

impact of a new product or service on the existing brand. There is also a third perspective, the

brand value based on the customer, which analyzes how consumers think, feel and act with

respect to the brand.

5. Brand Awareness
 Brand awareness is "related to the strength of the brand in the consumer's memory,

reflected through the ability to identify the brand under different circumstances". Brand

awareness can be divided into brand recognition (consumer's ability to confirm prior exposure to

brand when exposed to brand) and brand recall (the consumer's ability to recall the brand when

exposed to the category to which the brand belongs). The importance of the concept of Brand

Awareness is presented when the consumer remembers the brand when exposed to the category

of product to which the brand belongs. The concept of Brand Awareness is also important in

affecting consumer decisions regarding the brand when exposed to a number of different brands

for consideration. Another aspect that should be emphasized is the role of Brand Awareness

affecting consumer decision making by influencing the formation and strength of brand

associations in the brand image (Keng et.al, 2013).

Brand Awareness is important because it gives companies an edge over competitors. It

takes an average of 5 to 7 contacts with the brand before someone remembers and recognizes it.

So, if you want to be a reference company, named at the tip of the consumer's language, you

need to think about how to create brand awareness for your company.

(Shobeiri,Laroche&Mazaheri, 2013).

6. Purchase Behavior

Consumers want to always know new products and try new ones. They will not hesitate

to trade the usual brand for another or even just out of curiosity due to a launch: they want to

vary. The secret to the brands that dominate this type of market is to maintain a strategic routine

of launching new products constantly, as the goal of making the purchase of your usual brand,

since it always has news (Shobeiri, Laroche&Mazaheri, 2013).

 Valuation criteria are basically defined by issues that do not have the solidity of

something as a physical asset, for example, but part of the ideals recognized by the market,

especially as to the clients' view of what the brand represents.From the identification of these

values, it is possible to create a strategy that allows not only improvements, but also to take

advantage of the characteristics that make the company strong and with great market potential.

The market increasingly values companies that offer advantages in the work as a whole, than

those that focus only on specific points, such as the price of the product or service(Liao et.al,

2017).

No one understands their own motivation because it is in the unconscious. When

someone evaluates a brand, it reacts not only to what the marketing campaign is saying but also

to less conscious signals. The same product can attract consumers for different reasons. One

person can have whiskey to relax while another chooses to drink at a party with friends.

Consumers continue to be exposed to all kinds of sales information and product and brand

announcements, whether through online or offline means. These messages are constantly ignored

because they sound "too good to be true." These customers tend to pay close attention to the

opinions of people close to them (Zarantonello& Schmitt, 2013).

 Chapter 3: Research Methods

3.1 Method of Data Collection

Data collection is the process of obtaining, through certain techniques, data, research and

documents capable of helping the company to carry out better quality planning, analysis,

experimentation, direction and studies that positively influence its results. Research will be

qualitative, quantitative or mixed. Both methods will allow you to explore the phenomenon you

want to understand in depth. Quantitative research involves the collection of numerical data.

Quantitative research is generally used to gain a broader view of phenomena by observing large

numbers of people.Secondary data refers to information previously collected by another source.

Qualitative research is an exploratory research used to understand reasons, opinions and

motivations. It also provides insight into a specific issue and helps develop hypotheses for

potential quantitative research. Qualitative methods of data collection examine the reason for a

particular decision-making (Sahin, Zehir&Kitapç, 2011).

3.2 Sampling Technique

Non-probabilistic sampling is used where there is a deliberate and impartial choice of the

elements that will compose the sample. It can be for convenience, intentional or by quotas and

does not require statistical criteria or formulas to determine the size of a non-probabilistic

sampling (Sahin, Zehir&Kitapç, 2011).

3.2 Sample Size

 Total 250 questionnaires were distributed. The sample size of this study is 300. From 300

distributed questionnaires, only 250 respondents provide their opinion for this study. Same data

were used for analysis of data.

3.4Instrument of Data Collection

A questionnaire is just a set of questions, designed to generate the data needed to verify

that the objectives of a project have been achieved. But building questionnaires is not a time and

effort in planning the questionnaire is an essential requirement expected results. It is developed

for seven variables used in this study. Questionnaire was developed for all the 7 variables used in

this research study. The construction of a questionnaire is considered an "imperfect art", since

there are no accurate procedures to ensure that your measurement objectives are met with good

quality. 35 questions were used related to 7 selected variables. 5 point likert scale method is used

for this paper(Zarantonello& Schmitt, 2013).

Strongly Agree = 1

Agree = 2, Neutral = 3, Disagree = 4, Strongly Disagree = 5

3.4.1 Validity and Reliability test

With the help of SPSS software, Cronbach’s alpha test was run to check the inside consistency.

The standard value is 0.70 whereas the

Table I

Reliability Statistics
Cronbach's

Alpha N of Items
.856 21
3.5Research Model developed
brand experience

brand engagement

brand visibility

Brand Equity

brand awareness

purchase behavior

3.6Statistical Technique

SPSS software is used for analysis of data for the research related experiential marketing

&brand equity.Each variable consists of a set of categories that describe the nature and type of

variation associated with the characteristic. Some variables may have numerous response

categories depending on the purpose and focus of the management problem. Variables have

different measure properties associated with their categories. These categories are referred to as

measurement levels or measurement scales. Scales can be classified as: quantitative or

qualitative. The quantitative scale is related to characteristics that can be measured or counted. In

both cases they are numerical characteristics.Data analysis utilizes lickert scale and T test and

method based on five pointsused in questionnaire.

 References

Dolbec, P. Y., &Chebat, J. C. (2013). The impact of a flagship vs. a brand store on brand

attitude, brand attachment and brand equity. Journal of Retailing, 89(4), 460-466.

Sahin, A., Zehir, C., &Kitapçı, H. (2011).The effects of brand experiences, trust and satisfaction

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Behavioral Sciences, 24, 1288-1301.

Zarantonello, L., & Schmitt, B. H. (2013). The impact of event marketing on brand equity: The

mediating roles of brand experience and brand attitude. International Journal of

Advertising, 32(2), 255-280.

Ding, C. G., & Tseng, T. H. (2015). On the relationships among brand experience, hedonic

emotions, and brand equity. European Journal of Marketing, 49(7/8), 994-1015.

Qader, I. K. A., & Omar, A. B. (2013). The evolution of experiential marketing: Effects of brand

experience among the millennial generation. International Journal of Academic Research

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Brand Equity. IUP Journal of Brand Management, 11(2).

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implementing, and managing brand equity in business markets. Industrial Marketing

Management, 39(8), 1223-1225.

Lee, H. J., & Kang, M. S. (2012). THE EFFECT OF BRAND EXPERIENCE ON BRAND

RELATIONSHIP QUALITY. Academy of Marketing Studies Journal, 16(1).

Ramaseshan, B., &Tsao, H. Y. (2007).Moderating effects of the brand concept on the

relationship between brand personality and perceived quality. Journal of Brand

Management, 14(6), 458-466.

Keng, C. J., Tran, V. D., & Le Thi, T. M. (2013).Relationships among brand experience, brand

personality, and customer experiential value. Contemporary Management Research, 9(3).

Shobeiri, S., Laroche, M., &Mazaheri, E. (2013).Shaping e-retailer’s website personality: the

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Liao, Y. K., Wu, W. Y., Amaya Rivas, A. A., & Lin Ju, T. (2017). Cognitive, experiential, and

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