An empirical study on the impact of Brand Awareness, Brand

Loyalty and Perceived quality on customer purchase intention

in terms of branded tea in Sri Lanka

Chapter 01: Introduction

1.1 Background & research phenomenon
Tea is one of the most consumed and historically lowest cost beverages in the world, next
only to water. It is consumed by a wide range of age groups in all levels of society. More than
3 billion cups of tea are consumed daily worldwide. Sri Lanka being one of the front-runners
of the tea industry, produces the freshest and finest tea in the world. Popularly known as
‘Ceylon Tea’ Sri Lankan tea has added a new dimension to tea industry, producing variations
in taste, quality, character and appearance largely based on the terroir of the region. However,
Sri Lankan tea production has recently been greatly challenged by the competition from other
beverages, shortage of labour and climate changes. In this report, we discuss the significant
global and local trends, industry problems, emerging technologies and finally the SLINTEC’s
value addition. To help the industry stakeholders understand the potential strategic avenues
available to them in sustaining the fame of this iconic cultivation of our country
(historyofceylontea, 2019).

1.1.1 Ceylon Tea Industry

Tea is a major export and employment provider in Sri Lanka. Sri Lankan tea exports account
for almost 80% of total value. Even though, Sri Lanka has a proud history on tea revenues
recently, Sri Lankan tea production reveals low productivity, stagnant area, high production
costs and declining production rates (Thasfiha et al., 2020).
 Figure 1: Monthly tea production, sold and exports in 2020
Source: (ft.lk, 2021)

Compared to 2019, the Sri Lankan tea industry has increased in 2020 while it is recording
decreasing production and exports. In 2020, Sri Lankan tea production totalled 278.49 MKg,
compared to 300.12 MKg in 2019. (-21.63 MKgs). Restricted product access, lack of output,
loss of income, and uncertainty are some of the causes that harmed the tea sector globally.
Furthermore, macro-economic issues such as supply and demand, currencies, political
climate in importing nations, and policy decisions continued to negatively impact the tea
sector (ft.lk, 2021).

Commercial
Cultivators

Individual Central
Suppliers Small collecting Processors Exporters Traders
Farmers centers
Cluster
organizations

Figure 2: Industry supply chain

Source: (EDB, 2014)
 Tea plantation area map

Source: Dharmadasa et al., 2018

Over the last decade, global tea consumption has risen by 3.45% annually. Green tea,
premium leaf, and ready-to-drink convenience cups are expected to continue growing
strongly (historyofceylontea, 2019).

As Sri Lanka is moving from an LDC to an MDC, it has created various issues. One is that
Sri Lankans now expect higher wages than employees in nations like Vietnam, Kenya, and
India (Silva, 2017). The goal is to increase productivity and quality while decreasing labor
expenses. Since the country's name change to Sri Lanka 40 years ago, the national brand
focus of the "Lion Logo" and "Ceylon Tea" has faded (Silva, 2017).
1.1.2 Tea brands available in Sri Lankan market
To take advantage of the many opportunities in local consumer tastes, the tea industry must
be viewed as two independent industries, tea growing/manufacturing and tea marketing
(Jayasuriya, 2020).

Ceylonta tea

A niche market for ceylon tea Unilever Sri Lanka, for example, is trying to expand its
Ceylonta tea brand in Hong Kong, Taiwan, and the Philippines. The company intends to
develop its branded tea business, which now has a 32% share vs 68% in unbranded (loose
tea). With 400 players in the local branded market, Unilever is looking to expand in the North
and East, where unbranded dominates. According to Unilever's Marketing department, the
North and East might contribute 10% to 15% of market share. To meet consumers' needs,
Unilever promises to identify cyclical patterns. Unilever launched Brooke Bond Ceylonta, a
blend of fresh green tea leaves and powder, after months of research. Consumer-friendly
packaging with an interior silver foil to retain the leaves' freshness has been introduced,
according to Unilever (Gunaratne, 2010).

Truly Ceylon tea

Truly Ceylon tea launches premium quality tea to the Sri Lankan market under Truly Ceylon
brand to introduce premium quality tea to locals. The brand “Truly Ceylon tea” has
differentiated its product range as 100% originated from Ceylon tea cultivations. The brand
has three products, Black tea (Ceylon classic), English breakfast (Earl Grey) and Green tea
(Jasmin, Lemon green and Pure green tea) (DailyMirror, 2020).

Teakruthi

With over 30,000 cups of all-natural single-origin Ceylon tea provided in two years,
Teakruthi now ships to Sri Lanka via its website, www.teakruthi.com. Teakruthi's goal is to
foster a healthy lifestyle through tea. Comparatively, teakruthi buys directly from plantations,
allowing them to ship tea anywhere in the globe in under 12 weeks from harvest. The
company avoids re-exporters and massive storage warehouses, allowing clients to enjoy
fresher tea. Teakruthi was created to bring superb tea to tea lovers globe while highlighting
its many health benefits. We like a good cup of hot tea and expect our teas to transport us to
the exotic region where they are grown (ft.lk, 2019).
Dilmah

Dilmah is the world's greatest tea. A popular Ceylon tea brand both locally and abroad.
Merrill J. Fernando, founder of Dilmah, has championed quality, authenticity, and variety in
tea. In 1988, Dilmah introduced the notion of Single Origin Tea by defying industry norms
and committing to authenticity. Dilmah's garden fresh, unblended tea gives a unique flavour
of unblended Ceylon Tea packed at source (Dilmahtea, 2021).

Lipton

Lipton tea factory established since 1880. Their tea is grown utilizing natural rain, wind, and
sunshine to give it its rich flavor and scent. Moreover, Lipton believe that every cup of their
tea should help brighten not only customer day but also the future of their tea growers, their
families, and Lipton planet. Lipton has long dominated tea. Innovators like Sir Thomas
Lipton's Lipton tea estate and his fascinating marketing efforts have long set Lipton apart.
Nature is Lipton's factory to make sure every cup of tea has their characteristic exquisite taste
and aroma (Lipton, 2021).

Bogawantalawa Tea Ceylon (Pvt) Ltd

BPL Teas (Pvt) Ltd is the marketing branch of Bogawantalawa Tea Estates PLC, which owns
and operates some of Sri Lanka's finest tea estates. BPL Teas (Pvt) Ltd. sells a variety of
Black and Green Tea in bags and packs. 'Garden Fresh Pure Ceylon Tea' is offered in
flavoured, herbal, and bulk forms. To the local market they supply bulk tea, tea packs, tea
bags, flavoured tea, organic and pyramid tea bags/private label (EDB, 2021).

Halpè Tea

In 1971, founder Mr. A. P. D. Abeyrathne acquired the Uva Greenland Tea plantation from a
British national. Since then, he has served an expanding global clientele, producing some of
the freshest and finest Ceylon tea Sri Lanka has to offer. Halpé Tea, a family business at
heart, continues to manufacture the best tea with a personal touch of care and a great level of
quality (Singh, 2021).

Richy Tea

The founder, Mr.Wirantha Hettiarachchi, believed in giving the best cup of tea to all Sri
Lankans and began packing his own teas in 1991. With the passage of time, the packaging
operation grew to new heights, even founding its own marketing and distribution company,
Green Island Marketing Services, and Richy Tea is now Sri Lanka's third largest locally
owned and run brand (Singh, 2021).

Mlesna

In 1983, a young tea expert team with high standards developed a new tea brand, Mlesna was
born. “Mlesna” mbition provides high-quality tea in beautiful containers. The “Mlesna” team
set out to create the best tea in the best packaging. Starting with distinctive tea packaging,
Mlesna created a specialized market for value-added teas. With over 3000 different goods
and a permanent team of over 350 employees, we still aspire to produce high quality teas in
lovely packaging. As a result, “Mlesna” now has 50 countries as clients. "Mlesna" creates
world-class teas that connoisseurs demand. So “Mlesna” delivers “Naturally the Best” tea to
the world (Mlesnateas, 2021).

Zesta

Discover the passion and skill that went into creating a world-renowned brand. Zesta is Sri
Lanka's No. 1 tea brand because it produces the best cup of Ceylon tea. Using only two
leaves and a bud, the tea is picked and packed within days of plucking. The flagship tea of
Watawala Tea Ceylon Ltd. Unrivaled quality and taste, Zesta tea is a trusted brand. Watawala
Tea Ceylon Ltd has a 35 percent market share after only 15 years. Almost as popular as
water, tea is getting in excess of 7 billion cups annually. It's no wonder Zesta has a delicious
range of Ceylon teas and an unshakable passion for making the perfect cup (Zestaceylontea,
2021).

Maskeliya Kahata

Maskeliya Kahata provides the ultimate tea experience. Maskeliya Kahata is gaining
consumer acceptance. The delicate tea leaves bloom on high altitude misty mountain slopes,
creating some of the world's most sought after teas. Experts in the field have mixed
Maskeliya Kahata to perfection. Amazing scent and strong brew from this tea. Constant
quality assurance, a gorgeous gravure printed triple laminated aluminum pouch keeps
Maskeliya Kahata fresh for a long period (Zaidtea, 2021).

Watawala Tea

Watawala Tea (previously known as Watawala Kahata) is a staunch favorite of people who
truly like their brew; who prefer it strong, full-bodied, and just ideal for the local palate.
Watawala Tea is a well-known brand in Sri Lanka. With over 50,000 nationwide stores,
Watawala Tea is easily accessible to all tea lovers. Watawala Tea never compromises on
quality, using only the best tea and processing standards, right down to the packaging - triple
laminated pouches that protect the exquisite scent and unique taste of this favorite tea. Unlike
other teas, Watawala Tea is offered in a variety of sizes, from 20g to 1kg (WatawalaTea,
2021).

Ran Kahata

The authentic taste of Sri Lankan ‘Kahata' tea is the traditional ‘plain tea' that is the lifeline of
our nation. Ran Kahata is a heady blend prepared from high quality ‘dust' that gives it its
particular robust flavour. This firm favourite of the ‘everyday people' has been renamed Ran
Kahata to further advertise its promise as the authentic ‘local kahata'. Ran Kahata is offered
in a variety of sizes, including 20g sachets, which yield 20 cups of pure Sri Lankan flavour
(Watawalatea, 2021).

Madroc tea

Small group of Sri Lankan tea lovers hoped to supply world's greatest tea in 1988. One of Sri
Lanka's top tea exporters, they now export to over 50 nations. 9600 hectares of tea gardens
generate about 12.5 million kilos of premium tea per year, which is then processed in 48 tea
factories and exported worldwide. They can showcase the best Ceylon teas since they oversee
the entire process.

Mabroc provides quality from the tea bud to the taste bud. Their delicious organic Sri Lankan
spices and spice seasonings are no exception. Ayurvedic ingredients in Mabroc's herbal
mixtures give value to discriminating clients (Mabrocteas, 2022).

Damro tea

From the low-lying lowlands of Sabaragamuwa to the central hills at 1,500 meters, Damro
has almost 5,000 hectares of lush tea plantations. Among these well-kept tea estates are 15
companies manufacturing a variety of Ceylon's finest teas such as Rotorvane, Orthodox,
CTC, and green tea, largely for domestic and foreign markets.

Damro Teas, in particular, has recently been known for promoting a selection of premium
teas manufactured from fresh handpicked harvest from tea farms that cover the western
slopes of Nuwara Eliya (Damrotea, 2021).
1.1.3 Theoretical Context
Sri Lanka's tea sector is a major revenue generator, with a huge network of producers,
dealers, distributors, auctioneers, and exporters. With time, the tea industry grew, and well-
known national and local companies launched new tea brands. This allows users to pick their
favourite premium tea brand. The retail market's diversity promotes tea brand access.
Customers in Sri Lanka can now compare and pick tea brands from supermarkets.
Supermarkets sell approximately a quarter of all tea in Sri Lanka. The contemporary Sri
Lankan tea market is dynamic and competitive due to retail enterprises using diverse
marketing methods. To remain competitive, current businesses are aiming to strengthen their
loyal client base while decreasing brand switching (Bandara et al., 2021).

Consumers can readily switch brands if a brand lacks uniqueness and differentiation from its
competitors. Almost all industries have embraced product uniqueness as a brand positioning
technique in recent years (Robinson and Cliffors, 2012). Any business trying to expand
market share and power must satisfy consumers. Marketing operations are designed to
increase or sustain customer loyalty to a company's products or services. It is the major
quality that drives the consumer's decision-making when picking a specific tea brand (Ghosh
and Ghosh, 2013). Thus, consumer loyalty management is vital for marketing (Gronroos,
1994).

Several factors influence purchasing intention, according to Lee et al. (2019), Brand
awareness is one element. Brand awareness demonstrates market repute and consumer
acceptance (Lee et al., 2019). Perceived quality might also influence purchase intention.
Perceived quality is not the same as actual quality (Lee et al., 2019). It is also known as a
customer's general opinion on a brand's products or services. Brand loyalty is the final
element identified by Lee et al. (2019). Brand loyalty is defined as a commitment to
continually repurchase or patronize a preferred product or service in the future, regardless of
any marketing strategies or situational factors (Lee et al., 2019).

More, according to Kotler and Keller, (2016), define the size, quantity, quality, and price all
influence customer purchasing decisions. Porter (1980), shows that lowering prices and
differentiating from competitors can increase a company's value. Perceived value of the
customers (Sumi and Kabir, 2018) is another factor that impacts on customer purchase
decision towards branded tea including experience, health benefit issues, environmental
awareness, trust and perceived price.

1.1.4 Identification of the issue

Customers can choose from the greatest and biggest assortment of Ceylon Tea brands
available at the market today. Unbranded loose teas available in the local market are often of
poor quality, and storage conditions expose it to air and other contaminants, and
unscrupulous traders sell adulterated tea and even factory sweepings. With the growth in
visitor arrivals, SLTB (2021) suggest it is vital that the tea supplied in Sri Lanka meets global
standards. Sri Lankan teas range from little leaf to long leaf, light fragrance to robust, brightly
coloured. Most tea brands and mixes on the market today contain a percentage of Ceylon Tea
(SLTB, 2021).

According to the new Chairman, Mr. Sanjaya Herath, some of the major challenges that limit
traditional Ceylon Tea market includes emerging competition, challenges in ensuring the
quality of Ceylon teas, aging tea plantations, crop levels dropping, and currency volatility
(bizenglish, 2019). But serving the demands of traditional Ceylon tea lovers, Sri Lanka has
challenges in an increasingly competitive beverage industry as the world's tea variety grows
while unbranded tea consumption declines (Wanninayake and Disanayake, 2006).

1.1.5 Research Gap

Asia will account for two-thirds of worldwide incremental beverage consumption by 2021,
with China alone responsible for one-third of new volume. Latin America is predicted to
generate the second largest incremental volume increase behind Asia (ft.lk, 2021).

Figure 3: Global beverage consumption

 Source: (ft.lk, 2021)

In Sri Lanka, tea consumption is actually a two-pronged issue, as noted by SLTB (2017):
first, the Sri Lankan population's appreciation and consumption of tea; and second, the
potential we have to turn every one of the two million foreign visitors to Sri Lanka each year
into a Ceylon Tea ambassador (Silva, 2017). More, chinese restaurants often serve Chinese
tea without milk or sugar. Tea is rare at a Sri Lankan restaurants. In Japan, people enjoy tea.
This is a national beverage. Hence, Sri Lankan have a biggest responsibility to promote tea
among themselves, then to globe (Silva, 2017).

First, Sri Lankans must learn to appreciate tea. We don't enjoy tea for social reasons. Few Sri
Lankans, especially the middle class, make their own tea. Second, finding a nice cup of tea in
Sri Lanka is tough. We, Sri Lankans commonly use sweetened, vanilla-flavoured powdered
milk and sugar. Sri Lankans drink 1.4 kg tea per year but 30 kg sugar. Means more sugar than
tea. The issue, according to SLTB (2017), is to get Sri Lankans to appreciate tea more and
cease using it as a sugar substitute. Like any quality beverage, a nice cup of Ceylon Tea is
best enjoyed neat. Let the world know we appreciate our tea (Silva, 2017).

2010-12 2011-13 2012- 14 2013-15 2014-16

27.79 27.49 27.47 27.91 28.07
Figure 4: Sri Lankan Tea Consumption Statistics 2010-2016 (MnKg)
Source: (SLTB, 2016)

Companies that supply tea should understand and apply tactics to improve brand loyalty and
prevent brand switching. Thus, organizations must identify elements that influence consumer
loyalty as well as those that influence brand switching. Because consumer buying habits
change over time, it is increasingly important to understand these changes. Several studies
have examined the elements that impact customers' purchase decisions (Bandara et al., 2021).

However, few research has identified the elements influencing branded tea purchase
decisions in Sri Lanka (Bandara et al., 2021). Hence, the purpose of this research is to
identify the factors influencing the consumers' purchasing intensions for branded tea in Sri
Lanka.
1.2 Research Problem
The customer's perception of a brand influences their purchase decisions (Son and
Kijboonchoo, 2016: Singh, 2018). Customers' perceptions of a brand might be favorable or
negative, so when they react positively, it has brand equity. Customers have brand equity
when they have a positive, well-built, and memorable brand image (Kotler and Keller, 2016).
Consumers' decision-making and learning processes also generate brand equity. Everyone
wants quality in any product or service, especially if additional services are offered.
Customer happiness and company production are linked. Previous research links relative
service quality to consumer purchasing power (Tan et al., 2018). Marketers also struggle to
build Brand Equity. Brands with a larger advertising expenditure have a higher amount of
brand equity, enhancing consumer purchase intent. Brand equity protects a product
introduced under a trusted brand name, determining the viability of presenting it to the
market. Competition is decreased when a product is released with a well-known brand name
(Leitão, 2013). Further, considering the tea consumption behaviour of Sri Lankans, there are
many opportunities available for tea marketers to grow their brands while increasing their
market share.

1.2.1 Research Questions

Considering the above facts and issues the following research questions were developed for
the study.

1. What is the impact of Brand Awareness on customer purchase intention in terms of

branded tea in Sri Lanka?
2. What is the impact of Brand Association on customer purchase intention in terms of
branded tea in Sri Lanka?
3. What is the impact of Brand loyalty on customer purchase intention in terms of
branded tea in Sri Lanka?
4. What is the impact of perceived quality on customer purchase intention in terms of
branded tea in Sri Lanka?
1.3 Problem statement
It is statistically proving that the tea has become most consuming beverage in the world and
is only second to the water (Bolton, 2018).

Size of the global tea market

Source: (Bolton, 2018)

Tea consumption pattern in the globe

Source: (Bolton, 2018)

About 2 billion cups of tea are drunk around the world every day, making it the second most
popular drink after water. Tea is made from the dried leaves of a small shrub that comes from
China (SSI, 2019). Smallholder farmers in China, Sri Lanka, and Kenya produce the majority
of tea, accounting for half of global production. In 2015, the top seven tea-producing
countries supplied 90% of the world's tea (SSI, 2019).
Tea is abundant in flavonoids, which are naturally occurring bioactive chemicals found in
foods like wine, cocoa, fruit, and vegetables. People who drink 2-3 (8 oz.) cups of tea per day
may reduce their chance of dying from heart disease by 8–12%. Those who drink 2-3 8-oz.
cups of tea per day may have a 4-6% lower risk of dying from any cause. People over 65 who
drink 8 oz. of tea per day have a 10% lower chance of dying from heart disease. Tea's
flavonoids are linked to its health benefits, as well as the fact that it contributes to your total
fluid needs. Unsweetened tea is calorie-free and sugar-free, meeting current nutritional
recommendations. The 2015-2020 Dietary Guidelines for Americans link a balanced diet
with less added sugar to a lower risk of cardiovascular disease in adults (Unilever, 2020).

SLTC (2002) emphasize that to bring the tea closer to the user, reduce commodity-like price
fluctuations, and capture more value. The idea is appealing for several reasons. Therefore,
branding is more profitable than bulk tea exports. Second, shield the industry from price
volatility and new low-cost competitors who exclusively compete on price. Third, it will help
the industry to create more jobs, increase sales, and profit. Bringing Ceylon tea closer to the
consumer will allow the industry to get direct customer feedback, encouraging product
development and innovation. These mixes are based on the success of Sri Lankan tea
exporters in Australia, the CIS, and the Middle East. Smallholders and plantation producers
may profit from long-term collaborations with exporters, which will help stabilize and secure
attractive markets (SLTC, 2002).

Consumers willing to pay a premium for a differentiated product, and the opportunity to add
services to "distributor-owned brands" are all possibilities. The specialty tea market is
growing faster than the mass market. International firms have established powerful brands
that reflect this aim. The tendency towards branded items in the beverage industry is clear.
Natural, gourmet, and high-quality drinks are becoming increasingly popular (SLTC, 2002).

Ceylon tea-rich mixtures from Sri Lanka outperform in the local market but fall short in
quality (i.e., Twinings). Customers are willing to pay a few cents more per box for better
flavor or a unique design. Companies from both inside and outside Sri Lanka are likely to
start making their own Ceylon tea-based mixtures as Sri Lankan brands become more well-
known (SLTC, 2002).

There are various elements that have a direct or indirect effect on Sri Lankan customers'
purchasing intentions for branded tea, as evidenced by the above facts and data compiled by
several locally and globally renowned institutes. Marketers of Ceylon tea-rich blends will
also need to keep an eye on the market and be aware of changes in customer lifestyles,
environmental changes (such as better water quality and changes in how employees drink at
work), and competitive moves by other marketers, such as the introduction of new products
or the arrival of fast-food chains that serve drinks other than tea (SLTC, 2002).

In customer behavior studies, customers play the roles of user, payer, and purchase.
Consumer behavior is tough to predict, even for industry experts. Relationship marketing is
an useful technique for studying consumer behavior because it emphasizes the importance of
the client or buyer. Consumer buying habits vary by product category. Many factors directly
or indirectly influence consumer purchasing behavior.

To outperform or win in such a close fight, it is critical to develop a strong product identity
through brand competition. It is possible by paying attention and maintaining the company's
brand consistency. A brand, on the other hand, is a product or service that adds features that
set it apart from similar products or services (Kotler, 2001).

Thus, brand equity must be high. Brand equity is a combination of assets and liabilities
connected with a brand, its name, and its symbol that add or subtract value provided to a
corporation or its customers (Aaker 1997). Kotler defines brand equity as a positive
differential effect created by the customer's knowledge of the product or service's brand
name. Brand equity occurs when purchasers choose one product over another, even if they
are almost identical. One of the buyer's preferences is the product's brand. Because everyone
wants a product that will give them with a high utility value, if there are two or more identical
items, the brand becomes a differentiator and a reasonable thing to buy if the buyer buys one
of the more reputable and best-selling products. Brand equity gives the company a
competitive advantage. Consumers expect the brand to be available in stores, giving the
company an advantage (Kotler, 2001: 358). Brand equity can also help retain and attract
customers. As a result, great brand equity is vital for firms to compete. To establish great
brand equity, it is critical to assess brand awareness, loyalty, affiliation, and perceived quality
(Tjiptono, 2008). To that end, a brand equity analysis must examine the four points outlined
above.

Thus, investigating factors impacts on consumer purchase intention in terms of branded tea in
Sri Lanka would be vital to develop the tea market. In this context the research will
conducted to identify the impact of Brand Awareness, Brand Association, Brand Loyalty and
Perceived quality on customer purchase intention in terms of branded tea in Sri Lanka.
1.4 Problem Analysis

Figure 5: Problem analysis

1.5 Problem Justification

The fundamental reason for conducting this research is to identify the factors influencing the
consumers' purchasing intensions for branded tea in Sri Lanka. The main factors and
bottlenecks that have arisen within the consumers' purchasing intensions for branded tea have
caused brand loyalty, brand awareness, and perceived quality which may shaping Perceived
value of the customers on consumers' purchasing intensions. This case required a clear
understanding to address these factors that influencing the consumers' purchasing intensions
for branded tea. Tea is one of the most consumed and historically lowest cost beverages in
the world, next only to water. Since tea consumption of local consumers reports only 1.4 kg
tea per year, customers’ interest for carbonated beverages and higher market competition
required marketers to develop brand equity among their customers. This promotes to attract
and retain more customers for their brands and deliver the customer satisfaction which
ultimately result in customer loyalty.

1.6 Purpose of the study

This study aims to identify the factors influencing the consumers' purchasing intensions for
branded tea in Sri Lanka. Study findings will help the marketers to increase the awareness of
factors influencing the consumers' purchasing intensions and the role of perceived value of
the customers in consumers' purchasing intensions for branded tea in Sri Lanka. Finally, this
study will help marketers to establish effective marketing strategies and processes to improve
the customer satisfaction which affects the consumers' purchasing intensions for branded tea
in Sri Lanka.

1.7 Objectives of the study

The following objectives were developed for the study to achieve.

1. To identify the impact of Brand Awareness on customer purchase intention in terms

of branded tea in Sri Lanka?
2. To identify the impact of Brand Association on customer purchase intention in terms
of branded tea in Sri Lanka?
3. To identify the impact of Brand loyalty on customer purchase intention in terms of
branded tea in Sri Lanka?
4. To identify the impact of perceived quality on customer purchase intention in terms of
branded tea in Sri Lanka?

1.8 Significance of the study

Despite the large amounts of brands available at market, the consumers' purchasing
intensions may affect by several factors. Against the challenges faced by marketers in
attracting and retaining loyal customers, it is important to understand the factors influencing
the consumers' purchasing intensions for branded tea in Sri Lanka.

The study aims to increase perspectives and suggestions from various stakeholders and
individuals regarding consumers' purchasing intentions for branded tea in Sri Lanka.
Primarily, as described later, the results of this research will be beneficial to several parties.

Marketers

The local tea market in Sri Lanka is very vibrant and competitive. Due to this, international
corporations introduced several tea brands to the local market. Supermarkets have increased
competition in the retail trade system, distributing almost 25% of the tea production among
them. Customer satisfaction is critical to gaining market share and power. Consumer behavior
patterns evolve over time and are influenced by many factors, increasing the requirement for
consumer research. The ability to foresee future market trends requires a greater
understanding of customer buying behavior. In order to build competitive marketing
strategies for branded tea, it is critical to study the elements that influence customer buying
behavior. These insights will help firms develop and implement marketing strategies that will
boost their loyal client base and hence their overall success.

Government and policy makers

The market environment itself reflects the industry's competitiveness. Companies in this
industry are keen to meet consumer demands. With so many great brands available,
consumers can choose a premium brand that meets their needs. To create a profitable long
term relationship with customers, current companies are fiercely competing to boost loyal
client base and lower volume of switching brands. Government and policy makers can feel
the demand for this industry and may implement policies to improve the performance.

The academic researchers

As customers' interest grows in aspects that affect their purchasing intentions for branded tea
in Sri Lanka, this study will be an important contribution to that growth. They can look into
existing aspects that weren't included as part of the original study, and use that information to
broaden their scope of study. Many academics will be able to make use of the findings as a
starting point for further research. Furthermore, scholars require the study's findings to spur
additional research in the area and, as a result, give a useful context for any future
investigations.

1.9 Limitations of the study

 Specifically, during the COVID-19 pandemic period, the study focused on a smaller
group of customers who purchase branded tea from the local market due to time and
resource constraints. Despite this, the researcher remained hopeful that the study's
goal would be met.
 Not every consumer is aware of tea brands available in the market or loyal to specific
brand.
 The study's sample size is too small to accurately represent the purchasing intentions
of the entire population.
  Factors influencing consumers' purchasing intentions for branded Sri Lankan tea have
not been well studied in the past.
 The SPSS data analysis tool might be difficult to use.

1.10 Summary
From the beginning the chapter discuss the tea industry background in global and Sri Lankan
context with facts and figures. Theoretical background including brand equity and consumers'
purchasing intensions towards branded tea was discussed. Customer’s changing preferences
and shifting towards different brands were identified as main issues for the study. The
problem statement developed for fill the identified research gap. Research questions and
objectives were developed to answer the research problem and define the significance of the
study for key stakeholders including marketers, government and policy makers and future
researchers.

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 2 Conceptual framework

Brand Awareness

Purchase

Brandintention
Brand Loyalty
equity

Perceived quality

Perceived value of
the customers

2.1 Hypothesis

H1: There is a significant positive relationship between brand awareness and purchase
intention

H2: There is a significant positive relationship between brand loyalty and purchase intention

H3: There is a significant positive relationship between perceived quality and purchase
intention

H4: Perceived values of the customers moderate the relationship between brand awareness
and purchase intention
H5: Perceived values of the customer’s moderate relationship between brand loyalty and
purchase intention

H6: Perceived values of the customer’s moderate relationship between perceived quality and
purchase intention