The Impact Of Branding On Customer Decision: A Case Study Of Foodstuffs Ltd

Branding and its impact on customer behavior

Branding has various impacts on the consumer behavior both positive and negative. In this case scenario, the research was carried out in New Zealand. New Zealand is a country located in the southwestern Pacific Ocean and it consists of two islands. It has a population of about 4.693 million people. The research was aimed at looking into the impact that branding of Foodstuffs Ltd. which is a grocery and liquor retailer had on consumer behavior.  Branding is quite crucial in the retail industry as it will provide exposure of the product to potential customers and also creating a sense of loyalty and trust. In so doing, it will go a long way into influencing the decision of consumers towards the brand in a positive way and thus increasing the sales and eventually the profit levels. (Cantallops & Salvi 2014).

There are three questions the research review seeks to answer namely?

1. What are the various approaches undertaken for ensuring successful branding of the organization named Foodstuffs, New Zealand?
2. How can the branding strategies create an impact on the positive mindsets and behaviors of clients regarding the purchase of products and services?
3. What measures are recommended for improving the brand image and identity along with creating awareness among the customers to influence their buying behaviors?

The world has become one market where competition is now quite stiff. According to the theory of management, branding is quite important as it inclines a customer towards a certain product and could also be the difference maker in terms of sales volume.  (Panigrahi, 2015)

This is the justification of the research questions stated in the previous assignment. The research question will seek to provide the following answers:

1. Come up with the most appropriate and successful branding techniques for Foodstuffs Ltd so that they can have an edge over their competitors.
2. To evaluate the impact that branding has in the decision making of new and potential consumers and also how it creates a positive mindset on their behavior.
3. How Foodstuffs can improve their current branding image and how it creates awareness among the consumer behavior.

Due to the large number of competitors, the research will aid Foodstuffs to differentiate their products with other similar ones in the market. This will be in a bid to convince customers that their products are the best over other similar products thus creating customer loyalty and winning their trust.

For the researcher, the research will help to justify the importance of branding on customer decision as per the in accordance with the theory of management.

The research methods used will be the qualitative research method. Qualitative researcher is the observation which aims at gathering non numerical data. (Flick, 2014).  The research will consider two variables; dependent and independent. In this case scenario, the dependents variable is the buying behaviors of consumers while the independent variable is how the different aspects of branding affect it. The two variables will be quantified to come up with the appropriate data set. That is, the research will collect the answers from the respondents (qualitative data) and draw a pattern with regards to the distribution of frequency of the similarity of the answers. This will aid in coming up with the most appropriate opinion. (Mertler & Reinhart 2016).

Primary data is data which is collected from the source, that is; firsthand information. (McDaniel & Gates 2013). Singapore. Primary data will be quite important since it will be collected from the target population and their opinion will be very important as they are either existing or potential customers. There are various methods of collecting data but the most appropriate in collecting primary data in this case scenario will be the survey research technique.

The survey research technique involves collection of data from a small portion of the population known as the sample to represent the whole population. (Weigold, Weigold, & Russell, 2013). The sample to represent the target population will first of all be stratified into accordance to age group and their gender. The sample chosen in each stratum will be selected randomly to avoid any biasness thus has a proper and adequate view of the target population opinions. Justification for stratifying the sample is that the different age groups and gender perceive things differently thus their opinion also differs. The data collected from each stratum will be integrated to come up with the best solution for all parties. The survey will be done online. (Hauser & Featherman, 2013).

Research Questions

Since the target population is too large, the sample size given the resources available to Foodstuffs Ltd will be about 2,000 adults. The reason for choosing adults in the sample is because besides selling edibles, Foodstuffs Ltd also retails in alcoholic products thus we cannot pose the questions to underage people. Also, the sample population will be based on the density distribution, that is; a larger sample will be taken from the urban areas where population is large and fewer samples will be taken from rural areas where the population is lower. This will ensure that the whole population is represented equally.

This method is best suited for this case scenario for the following reasons:

1. Time saving and more practical – since the target population is very large about 2.5 million, it is not possible to question the whole population thus it makes a lot sense to use survey and pick a small sample to represent the whole population. Also, it would much less time to question 2,000 respondents compared to the whole target population.
2. Convenient for the respondents – the method is convenient since it will be done online and all a respondent needs is either a smart phone or computer with internet connection. This means the respondent can participate in the survey from home or work or even in a public place. Also, since it is online, it assures the respondents of anonymity.(Fowler Jr, 2013).
3. It is cheaper since it is online and thus it navigates off the some associated costs such as printing and hiring of numerous enumerators.(Benner, Gugercin & Willcox, 2013).

After collecting the data, it needs to be analyzed in order to come up with a solution based on the data.

Interpretive analysis will seek to evaluate what is collectively in the mind of the respondents based on their answers and use this to draw an informed conclusion. (Pugh, 2013). It should be noted that the opinion or the answers of the respondents are independent and that the respondents are not required to give a desired answer or inclined to lean towards a certain side but instead they are to express what they feel. This will be very convenient since the respondents will have a platform to give recommendation and also their feelings on the effects of branding to their decision making when choosing to buy a product.

This will mean that the quality of data collected will not be 100% reliable since there is no way of authenticating that the data given is true. This is where an assumption will be made that the data provided is genuine and be relied upon to represent the opinion of the whole population. In order to evaluate the quality associated with the interpretive analysis in this case scenario, it is dependent on some aspects. The aspects will be in the form of questions. (Noble & Smith, 2015).

For conducting a quality assessment, the following questions will have to be asked:

1. How was the research conducted – based on this question, the outcome will heavily depend on the personnel that conducted the research? In this case scenario, the online platform will be used to conduct the research. Putting this into consideration, the data can be said to be accurate since there is no misinterpretation of data associated with humans whereby they may misreport or misinterpret the information provided by the respondents.  Also, the online platform is will give the respondent anonymity since he/she cannot see the interviewer and thus there is a high possibility of giving accurate answers as there is fear of victimization or pressure to give a certain answer.(Taylor, Bogdan, & DeVault, 2015).
2. Who prepares the research – to provide a high quality analysis of the data, the questionnaire should be prepared by experts. For Foodstuff Ltd research, the company hired the services of a professional and reputable research firm to prepare the questionnaire. Based on this, the interpretive analysis can be said to be quite accurate.(Blair, Czaja & Blair, 2013).
3. Was the sample random and is it a representation of the whole population? – For the interpretive analysis to be accurate, the sample should be random and also should be a representation of the whole population. For this research, the company conducting the research approached individuals at random and asked them to visit their site at random for the survey with a payment of free mobile minutes after the survey. Also, the research put into consideration the geographical distribution in terms of population density. It can thus be concluded from this that the interpretive analysis can be relied upon.(Acharya, et al 2013).
4. Ethical consideration – the research company should have ethical consideration where the respondents’ personal information is not to be shared with anyone. The research company will include a non-disclosure clause together with the interview. This will mean that the respondent will participate in the survey and backed by it being online, the information gather will be of high quality as no personal detail will be revealed as the respondents’ will remain anonymous.(Brinkmann, 2014).
5. Presentation of the questionnaire – the question is prepared in a simplistic manner which is easily comprehendible. This will ensure that is no misinterpretation of data by the respondents and the answers will be quite accurate and of high quality.(Hilton, 2017).

Having considered the above questions, then it is safe to say the interpretive analysis will be accurate though not 100% accurate.

Before presenting the data, it should be noted that of the 2,000 questionnaires, 150 of them were spoilt. The data presentation is in tabular form and is as follows:

Table 1

From the above table, the majority of respondents lie between the age limit of 29 – 49. This is because the research was mainly aimed at this population since they are Foodstuff Ltd greatest customers and the major target since they are people well-endowed financially. Also, it can be observed that the group of 60 and above has the least respondents. It can be attributed to the spoilt questionnaires as all of the spoilt questionnaires were from this group.

Table 2

From the above table, the majority of respondents are female. Since Foodstuff Ltd is also a liquor store, most of the customers in relation to this are the females. Also, women are also very vibrant in buying of food compared to the males. (Grunert,  Hieke, & Wills, 2014).  From a survey done, it was found that females prefer to take alcohol indoors while males prefer to hang out with their peers in bars mostly watching sports. (Barton & Husk, 2014).

Methodology

Table 3

From the above table, it is clear that respondents are aware of other businesses in the same industry as Foodstuff Ltd. From the above table, it is possible to tell the diversity of the completion available and the need to do branding to beat the rivals. (Todor, 2014).

Table 4

From the table, a huge number of respondents have already tried Foodstuff Ltd products. Also, some rival firms have also cloned branding of Foodstuff Ltd products. Given the representation to the general population, the sales do not add up to this numbers and this shows that majority of the customers are one stop shopper.( Baye, von Schlippenbach & Wey, 2017). Thus, to instill loyalty in them, branding is thus necessary so as to create “repeat” customers not one stop customers. Branding created a personality where customers with similar personalities tend to go for the same product.(Adegbuyi, et al 2015)

Table 5

The above table illustrate that the majority of respondents either agree or strongly agree with the fact that branding influences a customer’s choice. Since the sample represents the whole population, it is thus safe to conclude that branding is essential to increase sales.

Table 6

The inference made from the table is that most respondents prefer branding of products with a mix of bright and dull colors. This will give the business a superb idea on how to improve their branding to make more sales. Respondents of 60 and above years all preferred dark colored branding.

1. Branding should be done in bright and dull colors and a mixture of both to cater for all age groups. However it should be done in proportion to the respondents’ preference from each age group.
2. There is stiff completion and thus vigorous and unique branding will be used to wade off rivals and gain a significant market share.  The branding done should differentiate products from those of rival firms.(Dhingra, 2013).
3. It is necessary to instill customer loyalty. Branding is thus necessary so as to create “repeat” customers not “one stop shop” customers. Branding will be done according to customer preference following the data collected and analyzed.
4. Since most clients and females and age group 29 to 49 years, the type of branding used should be geared towards maintaining these customers. Also, they are the majority of respondents and it tells what they expect in terms of branding to boost sales.
5. The company should also consider changing branding of products that other firms have tried to clone.

The recommendations are as follows:

1. It is quite evident that there is a lot of completion as the respondents admitted that there are other similar products to those of Foodstuffs Ltd in the market. For this reason, product differentiations are necessary in a bid to convince customers those Foodstuff Ltd products are much better. (Aspelund, Fjell, & Rødland, 2017). This can be done via branding in way that is unique and superior to the rival products. Another reason why product differentiation is crucial so as to enable the customers to distinguish the products of Foodstuff Ltd and other rival firms who may be trying to imitate them. (Rubio, Oubiña & Villaseñor, 2014).
2. For proper branding, Foodstuff Ltd must come with the most appropriate branding. In order to avoid loss after mass production of goods with new branding, the business should come up with dummy tests to gain insight from the public. The dummy products should be presented to the public for opinion and their views incorporated. In case of dissatisfaction with the proposed branding, opinions should be collected on how to improve on the same.(Bezawada & Pauwels, 2013).
3. There are a large number of people aged between 18 to 28 years in New Zealand. Thus to boost sales to this group, Foodstuff Ltd should consider to do different branding styles for the same products so as to attract different age groups for the same products. Also, they should consider lowering the cost of branding for this target group so as to make the products more affordable to the age group given their resources are less as compared to the age group between ages 29 to 19. (Dhingra, 2013). Also, people aged between 60 years prefer dark colored branding and this should be put into consideration.
4. For the best quality of branding, Foodstuff Ltd will have to ensure it contacts experts on the same. Quality branding of products will give the company a good image and most of the consumers will want to be associated with Foodstuff Ltd.(Hassan, et al 2016).

Conclusion 

From the research conducted, it is quite evident that branding is very important for the success of a business’s products. Branding may be the main difference sales volume of rival firms. Despite the fact that Foodstuffs is a well-established business, there are many rivals both existing and others entering the market since New Zealand is a free economy. For this reason, branding will be important to distinguish their products from the rest. Branding will also maintain existing customers by creating loyalty in the customers. Also, branding will be used to attract new customer literally thereby boosting sales and eventually profitability. However, branding can be very expensive. This means that the type of branding to be done should be cost effective to avoid driving the prices of such commodities up and thus competing unfairly to rival firms in terms of pricing.

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