Advertising and its Impact on Brand Equity: A Study of Consumers of Garhwal

Region of Uttrakhand State

Dr. D.S. Chaubey**
Director
Uttranchal I nstitute Of Business Studies
Dehradun
Mo-9411712859 email-chaubeyds@yahoo.com
** Dr S.M.Tariq Zafar
Director, Charak Institute of Business Management, Lucknow, U.P
smtz2007@gmail.com, mobile 09368953434
Shyam Sunder Saini***
Research Scholar
Department of Management Studies,
Pacific University, Udaipur, Rajasthan
e-mail: sssaini70@rediffmail.com,
Abstract
The opening up of the Indian economy has given a level playing field for foreign brands
against Indian brands. Several multinational companies have begun to focus their attention on
Indian markets. The presence of global brand into Indian market has enhanced the
competition into different brand. Advertising of the product has emerged as one of the most
important tool to build up brand equity. Brand equity becomes an important element for
being able to establish the differentiation regarding the products and services. In order to
understand how much advantage would be provided by the advertising to the enterprises in
building brand equity, it is necessary to assess the different factors and messages conveyed
in advertising for building brand equity. The goal of the study is to measure the brand equity
and the factors affecting the brand equity of of hair care products, according to the
perceptions of customers of Garhwal region. Sub-goals are to determine whether advertising
enhances the brand equity of the product . For this purpose, a structured questionnaire was
designed and piloted on a predetermined sample of 361 respondents of Garhwal region from
different demographic characteristic. After collection of data it was analysed and some
important findings and appropriate conclusions were drawn Factor analysis indicates that
There are nine factor Product quality conformance factor, Product image factor, Product
information factor, Imitating motives , Value addition in products through advertisement factor ,
Reliability and loyalty factor ,Product knowledge and quality conformance factor and Personal
judgment and confidence motive , and Uses and Application motives promoting brand equity of
the product. Regression equation reveals that company must focus on these issues to buildup
brand equity of the hair care product. The study reveals that advertising plays an important
role in increasing brand awareness, brand image, and brand loyalty and in turn increasing
brand equity but with varying extent.
Key Words: Brand Equity, Brand Association, Brand Loyalty, Brand Personality, etc.

Introduction
The opening up of the Indian economy has given a level playing field for foreign brands
against Indian brands. Several multinational companies have begun to focus their attention on
Indian markets. The presence of global brand into Indian market has enhanced the
competition into different brand. Brand is one of the most important concepts related to the
marketing science. Extensive competitive environment that the enterprises are confronted
with today and their competition in being different among thousands of similar products that
could draw consumers attention necessitate the products to have certain elements of
differentiation other than their physical characteristics. Hence the brand becomes an indicator
of value and power (Marangoz, 2007A). However the value and power possessed by each
brand demonstrate differences from others. Brand equity provides a strong platform for
introducing new products and insulates the brand against competitive attacks. The current
brand strategy followed by business houses in India need a dramatic makeover. . in the
present changing business environment, firm has to adapt innovative advertising, market
communication and branding to remain in the market and enhance brand equity of the
product. The Indian companies have to respond to these challenges with better strategies and
by delivering the brand promise to the customers. From the perspective of the trade, brand
equity contributes to the overall image of the retail outlet. It builds store traffic, ensures
consistent volume, and reduces risk in allocating shelf space. Therefore determination of the
level of the value that the brand has is of great importance for the administrators of the
enterprise and in terms of the decisions they make. In this study, the methods for measuring
the brand equity and consumer based brand equity which is one of the methods used for
measuring brand equity purposes, is explained in detail. In this paper we will try and
understand the minds of the consumers and try to evolve a strategy that will closely resemble
their outlook

Advertising is not about selling product, but about promoting the qualities that differentiate
your product from so many others. Advertising is about positioning that brand by promoting
and communicating your products differentiators to a targeted mass audience. The goal of
advertising is to focus attention on what sets your firm apart from others. Branding, through
repeated, frequent advertising, is the most effective way to accomplish that goal. Advertising
means generating opportunities, and good advertising is generating thousands of potential
opportunities every day. The only way to be heard is to speak, and the only way to be
remembered is to repeat over and over a very simple, compelling, single-minded message.
Consider that the public is faced with roughly 700 ads and brands per day. To stand out, you
must not merely speak, but yell, breaking through the clutter and getting the attention of the
prospect with the use of strong creative and a quick, easy-to-retain message. The most
effective and efficient way to do so is through frequent, repeated advertising in the same
publications or airwaves reaching the same industry or targeted audience. A successful
advertising campaign brings many other benefits that law firms never seem to address. Some
are extremely important when building a brand or positioning your firm within the
marketplace. Advertising is an investment in growth, generating opportunities, positioning a
brand and reaching thousands of potential customers. When weighing the value of an
advertising campaign and whether advertising is right for your firm, one should consider the
various benefits like ability to communicate, reminding ability, retaining ability and ability
to help firm for movement and growth and its stimulating ability for promoting conversation
between firm, among clients, potential clients and competing firms and its nature for helping
customer in eliminating brand confusion.

Review of Literature

BRAND is a promise made to the consumers by the company. Brand, not only has Functional
and Mental dimensions but also Social and Spiritual dimensions. The challenge in front of
Indian organizations today is to first understand and then satisfy the needs of the customers.
The needs of the customers today are experiences and not just the products. The Indian
Organizations have to concentrate on delivering the experiences to the customers leading to
satisfaction and association with all the dimensions of the brand. These experiences can be
delivered by involving the customer in the supply chain which demands improvement from
the organization in terms of training the employees and aligning the culture to deliver value
to the customers. The participation of the customers can be ensured by using novel methods
of communication and branding. The Profit and Sustainability of Indian Brands will depend
on how efficiently and quickly the organization can adapt to these new demands of the
customers.
BrandingA Different Perspective
Branding can be rational or irrational. Customers buy brand not only for the intrinsic values
associated with it but also because the brand has surprised them in the past with newer and
more novel experiences. Branding is a promise made to the customer that will deliver values
beyond expectation. Branding strategy hence should also involve continuously
communicating to the customer of the novel experiences that he/she has had with the brand.
We believe that effective branding involves working on four important dimensions, namely:
functional dimension, social dimension, spiritual dimension and mental dimension. The
functional dimension concerns the perception of benefit of the product or service associated
with the brand. The Social Dimension concerns the ability to create identification with the
group. The Spiritual Dimension is the perception of global or local responsibility and the
Mental Dimension is the ability to support the individual mentally.
7

The present research employed a conceptual framework by Srivastava and his colleagues
(1998) in order to address posited relationships between advertising, R&D, brand equity, and
shareholder value. Using secondary data from various industry and academic sources during
a ten-year time span, simple and multiple regression analyses were performed in conjunction
with path analyses to evaluate the posited relationships. The findings of the research showed
that advertising can not only work to improve market performance measures but also to
develop and maintain brands.
These relational and intellectual market-based assets can intertwine to create a unique
competitive edge for the firm in the marketplace (Srivastava et al. 1998). For example,
stronger customer relationships could be created when a firm uses knowledge about buyer
needs and preferences to build long-term relationship bonds with external entities such as
customers and distributors (Srivastava et al. 1998). The importance of these market-based
assets has been also emphasized by other researchers in marketing. Brand equity (Aaker
1991; Keller 1993, 1998; Shocker et al. 1994), customer satisfaction (Anderson and Sullivan
1993; Fournier and Mick 1999), and the management of strategic relationships (Anderson
and Narus 1996; Garbarino and Johnson 1999; Morgan and Hunt 1994) are the underlying
concepts of market-based assets, whether relational marketbased assets, intellectual market-
based assets, or both. Unlike other tangible assets in business organizations, such as plant and
equipment, raw materials, and finished products, the value of market-based assets is hard to
measure and does not appear on the balance sheet. For these reasons, many firms still
consider expenditures for marketing activities an expense rather than an investment.
However, market-based assets can also function in the exact same way as any other tangible
asset that is believed to be an investment, doing so by way of lowering costs, attaining price
premiums, generating competitive barriers, providing a competitive edge by making other
resources more productive, and providing managers with options (Srivastava et al. 1998, p.
6). Brand equity is the core concept of this dissertation research because it can influence
customer relationships and partner relationships, which are major forms of market-based
assets. The specific effects of brand equity could be either consumer-level outcomes such as
attitude awareness, image, and knowledge, or firm- level outcomes such as market share,
price, revenue, and cash flows (Ailawadi et al. 2003). The two perspectives of brand equity
are linked since firm- level outcomes, such as incremental 20 cash flow, are the aggregated
consequences of consumer-level effects, such as image and attitude (Aaker 1991; Keller;
1993; Srivastava et al. 1999). Brand equity is generally believed to be the outcome of
marketing and R&D efforts for a product (Keller 1998; Srivastava et al. 1998). According to
Leuthesser (1988), from the firms perspective, brand equity can be the incremental cash
flows resulting from the product with the brand name compared with the product without the
brand name. From the consumers perspective, brand equity can be a utility, loyalty, or
differentiated clear image not explained by product attributes. Advertising can play a key role
in achieving superior brand equity by communicating with potential customers (Ailawadi et
al. 2003; Srivastava 1998). R&D can also contribute to brand equity by helping a firm be
equipped with knowledge and information about customers and competitors to survive in the
market. Knowledge and information are essential to develop new products and services
which can bring superior brand equity. This knowledge and information sometimes can be
acquired through the relationships built around a firms customers and channel members
(Srivastava et al. 1998). Even though all marketing efforts may be important, it is believed
that the role advertising plays is superior to that of other forms of marketing efforts in
building and maintaining brand equity (Aaker 1991; Keller and Aaker 1992; Keller 1998;
Ailawadi et al. 2003). As a testament to the importance of advertising to build and maintain
brand equity, top consumer product companies usually allocate a significant amount of their
21 budgets to advertising, often between 10 to 15 percent of sales every year (Herremans,
Ryans, and Aggarwal 2000). What can advertising do to enhance market-based assets and,
ultimately, increase shareholder value, and how does this happen? First, advertising can
influence relational market-based assets by improving customer relationships. Customer
relationships are mainly created on the basis of value delivered to customers. Customers
perceive higher value for a certain brand when it can provide unique and superior product
functionality, features, and quality as well as wider availability, greater ease of use, and better
reputation and image (Srivastava et al. 1998). Advertising communicates these elements of
brand value to customers, and it helps marketing managers build, increase, and maintain
customer relationships with the brand. This brand value contributes to brand equity (Keller
1998; Srivastava and Shocker 1991). Brand equity is generated when customers have a high
level of awareness and familiarity with the brand and hold some strong, favorable, and unique
brand associations in memory (Keller 1998). A brand with significant equity can result in
customers being more accepting of a new brand extension, less sensitive to price increases,
and more willing to seek the brand in a new distribution channel (Keller 1993). Brand equity
can also reinforce partner relationships with other external entities such as retailers and
distributors. Distribution cha nnels are willing to cooperate with firms that maintain high
brand equity across their brand portfolios, and other strategic partners may also be interested
in co-branding with these brands (Srivastava et al. 1998). Therefore, advertising can play a
key role in increasing the value of market-based assets by creating brand equity, which can
function as a stepping stone between advertising and shareholder value. Incorporating brand
equity with a conceptual framework may provide a comprehensive structure for exploring the
ultimate utility of advertising in business organizations.

Objectives and Methodology

Preliminary Studies of the Research Motivated by the idea that different industries may have
different brand equity dimensions, it would be appropriate to develop different measures for
each industry to measure the factors affecting the brand equity. The goal of the study is to
measure the brand equity and the factors affecting the brand equity of of hair care products,
according to the perceptions of customers of Garhwal region. Sub-goals is to determine
whether advertising enhances the brand equity of the product . For this purpose,a structured
questionnaire was designed and piloted on a predetermined sample of 361 respondents of
Garhwal region from different demographic characteristic. After collection of data it was
analysed and some important findings and appropriate conclusions were drawn.
Hypotheses
The following hypothesis has been assumed for the proposed study
H1: There is a positive relationship between different factors of advertising promoting brand
equity with the customers willingness to spend premium price for products of reputed brand
Table-1 Demographic Characteristics Of Respondents
Categories Count Percentage



361 100


Age
Upto 20 Years
20-30 Years
30-40 Years
40-50 Years
50 to 60 years
above 60 Years
36
124
72
75
43
11
10.0
34.3
19.9
20.8
11.9
3.0
Gender
Male
Female
214
147
59.3
40.7
Marital Status
Married
Unmarried
268
93
74.2
25.8

Education
Level
No formal education
Under Graduate
Graduate
PG and Above
Professional Qualification
50
69
32
125
85
13.9
19.1
8.9
34.6
23.5
Income Level Upto Rs 15000
15000-25000
25000-35000
35000-50000
Above 50000
113
85
41
95
27
31.3
23.5
11.4
26.3
7.5
Occupation Student
Business
Service
Professional
House Wife
Any Other
58
49
145
32
68
9
16.1
13.6
40.2
8.9
18.8
2.5

The demographic characteristics of the respondents presented in the above table reveals that
out of total 361 respondents 10.1% respondents were of the age group Upto 20 years. 34.3
were in the age group 20-30 Years, 19.9% were in the group of 30-40 and 20.8% respondents
were in the age group of 40-50 years. 11.9% respondent were in the age group of 50-60 Years
and remaining 3% respondent were in the age group of above 50 years. For a research
dealing with brand equity of Hair care product it is important to know the Sex of the
respondents as in the current scenario, males are equally personality conscious as compared
to women. From the above table it is clear that 59.3% were Male and the rest that is 40.7%
were female. The information pertaining to Marital Status of respondents shows that 74.2%
were married and the rest were unmarried. Educational qualification was another
demographic which reveled interesting facts. 34.6% were those respondents who were Post
graduate and above, no formal educational categories respondents were 13.9%followed by
Graduate with 8.9 and finally under graduate category with 19.1 percentage. Middle income
category respondent account for 54.8% and it is also significant to note that sample is
dominated by service category respondents as it account for 40.2% respondents in the
sample.
Table 2 -Media Accessibility


Description Frequency Percent Percentage
A
Radio 160 8.8% 44.3%
B
Magazine 272 14.9% 75.3%
C
Television 343 18.8% 95.0%
D
Newspaper 342 18.8% 94.7%
E
Hoardings 309 16.9% 85.6%
F
Advertising on electronic media 272 14.9% 75.3%
G
Others 126 6.9% 34.9%

Total 1824 100.0%
100%


The present era truly represents an age of the information revolution. The business
institutions are using several media of advertisements to communicate their message to the
consumers. It is firmly believed that the consumers may have access to many sources located
at different points by which they can get an opportunity to read/watch an advertisement and
generate a need for acquiring some products /services and ultimately settle on buying
decision. With this, an attempt was made in this study to determine the accessibility of
respondents to various media of advertisements. For this purpose, the respondents were
requested to indicate their accessibility to various media of advertisements. Multiple response
were processed with the help of SPSS software and indicates that radio has got very less
accessibility among the respondents. Advertising on internet and magazine has got almost
equal accessibility to 75.3% respondents each. Simillarly television and newspaper has got
accessible among 95% respondents each. Hoardings were indicated by 85.6% respondents.
this signifies the better media accessibility among the respondents.
Table 3-Most Appealing Media
Sl
No.
Description Frequency Percent
A
Magazine 87 24.1
B
Television 252 69.8
C
Newspaper 3 .8
D
advertising of product on mobile 19 5.3
E
Total 361 100.0

Media is a facilitating institution of communication. Rapid industrialisation and technological
revolution have brought a qualitative and quantitative change in the media. Today, it is seen
that there is stiff competition among the media and all of them are bringing substantial
qualitative change to offer better to their customer. Advertising scenario in India cannot be
understood without considering its effectiveness among the people. For this, it is necessary for
the marketer to assess the appealing ability of the media to the consumers. It seen in the above
table that television is one of the most appealing media as revealed by 69.8% respondents in
the sample. It was followed by advertisement in magazine that account for 24.1%
respondents. News paper and advertising on mobile was indicated by 0.8 and 5.3%
respondents in the sample.
Table 4 : Reasons of Favourite Advertisements
Reasons Responses Percent of Cases
N Percent

it shows the comparative study over the
other brands
109 22.4% 30.2%
Better use of celebrities 115 23.6% 31.9%
it is stylish in nature 147 30.2% 40.7%
It presents the correct information of the
products
54 11.1% 15.0%
Other reasons 62 12.7% 17.2%
Total 487 100.0% 134.9%
An attempt was made to assess the reason which makes an advertisement to be
the favourite one to the respondents. The analysis explains that there are
various reasons which can be attributed for making an advertisement of most
favourite for the respondents. These reasons may include, it shows the comparative
study over the other brands, Better use of celebrities, it is stylish in nature, and It presents the
correct information of the products and many other other reasons. The analysis signifies
that in comparison to other reasons, the stylish presentation of advertisement is
the prominent reasons for making an advertisement to be most liked by majority
of the respondents.
Table5 Ability to identify Product without advertising

Sl No. Description Frequenc
y
Percent
A Yes 203 56.2
B NO 158 43.8
Total 361 100.0
Advertisements are made to develop a Brand, It is created to develop Brand Recognition and also
Goodwill of any product. Advertisements are also made to develop awareness among public whether
it is new Product or Public Service Message. Low-involvement advertising needs extensive
repetition in advertising (Hawkins 1998.) the repetition of advertisement of product enhance its
recognition and customer get conditioned with the brand. With this in mind an attempt was made to
know the ability of customer to identify the product without advertising. The survey reveals that
more than half of the respondents(56.2%) were in position to identify Product without
advertising. In comparison to this 43.8% respondents could not identify product
without advertising.
Table6 -How convincing did you find this advertisement
Sl No. Description Frequency Percent
A Very Convincing 161 44.6
B Somewhat convincing 79 21.9
C Undecided 43 11.9
D Not very Convincing 25 6.9
E Not at all convincing 53 14.7
Total 361 100.0

An advertising has an important role in the today's business. A good advertisement inform the
customer, motivate them for action, convince them and persuades them for final purchase. The
success of advertising depend upon its ability to convince the target market to purchase product or
service. With this in mind an attempt was made to know how far the advertisement of hair care
product is convincing to them. Survey reveals that 44.6% respondents are of the opinion that it is very
convincing. 21.9% say that it is somewhat convincing. 11.9% respondent remain undecided. 6.9%
respondents indicated that it is not very convincing. And remaining 14.7% respondent said that it is
not at all convincing to them.
Factor Analysis
Our perception is an approximation of reality. Our brain attempts to make sense out
of the stimuli to which we are exposed. Several sequential factors influence our perception.
Exposure involves the extent to which we encounter a stimulus. It is followed by the
Interpretation which involves making sense out of the stimulus. Several factors influence the
extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when
they have a choice, are also more likely to attend to pleasant stimuli. The perception forms
Consumer attitudes that are a composite of a consumers (1) beliefs about, (2) feelings about,
(3) and behavioral intentions toward some object--within the context of marketing. These
components are viewed together since they are highly interdependent and together represent
forces that enhance brand equity. Keeping these into consideration, an attempt was made to
identify the determinants of brand equity in hair care products. For this respondents were
asked to rate their views on the statements such as: After observing the advertisement of the
product, I will have a good impression to the product advertised, I feel positive effect of
electronic advertising of product on the prices of advertised products?, I belief that
Advertising conform the product quality, Products that I have used usually live up to the
promises of quality and performance made in their advertisements, I feel positive about the
product while seeing advertising of the product, Advertisement of the product convince me
most in favour of product, I usually get better value for my money in advertised brands of
products than in unadvertised brands, In general, I trust advertising of the product on various
advertising media, Advertisements provide necessary and sufficient information about
products., Advertisements provide better information and different characteristics of
products., After observing advertisements of the product, I would like to try the advertised
product., After observing advertising of the product electronically, I would like to buy the
advertised product., I associate myself with the celebrity engaged in advertisement, After
viewing this ad, I would consider purchasing the product., Advertisement add the value
endowed by the brand name , brand loyalty, brand awareness, perceived quality, brand
associations, and other proprietary brand assets, I usually rely on product information as
advertised, Advertisements displayed in various media have reliable and valid information
about the product., Advertisement build my confidence translates my loyalty and
willingness to pay a premium price for the brand, After observing internet advertisements, I
would like to consume the advertised product., The benefits described in the ad are believable
to me., Advertising enhance the consumers personal judgment about the overall quality or
excellence of a product or service., Advertisement increases the brand equity stems from the
greater confidence that consumers place in a brand than they do in its competitors.,
Advertisements explain the usage and applications of products correctly as compared to print
media., Respondents were asked to rate the various statement on a scale of 1 to 5 in order of
their preference. The exploratory factor analysis was used in order to identify the various
motivational factors of visiting retail store. Principal Component analysis was employed for
extracting factors and orthogonal rotation with Varimax was applied. As latent root criterion
was used for extraction of factors, only the factors having latent roots or Eigen values greater
than one were considered significant; all other factors with latent roots less than one were
considered insignificant and disregarded. The extracted factors along with their Eigen values
are shown in table 8. The factors have been given appropriate names on the basis of variables
represented in each case. The names of the factors, the statements, the labels and factor
loading have been summarized in Tables 8. There are 9 factor each having Eigen value
exceeding one for motivational factors. Eigen values for nine factors are 5.319, 2.630, 2.012,
1.905, 1.397, 1.228, 1.106, 1.057, 1, 019, , respectively. The index for the present solution
accounts for 76.82 % of the total variations for the factors of brand equity. It is a pretty good
extraction because we are able to economise on the number of choice factors (from 23 to 9
underlying factors), we lost 23.18 % of information content for choice of variables. The
percentages of variance explained by factors one to four are 23.127%, 11.436%, 8.748%,
8.284%, 6.072%, 5.337%, 4.808%, 4.597%, 4.430%, respectively. Large communalities
indicate that a large number of variance has been accounted for by the factor solutions.
Varimax rotated factor analysis results for factors are shown in table 8 which indicates that
after 9 factors are extracted and retained the communality is 0.746 for variable1, 0.906 for
variable 2 and so on. It means that approximately 74.6 % of the variance of variable1 is being
captured by 9 extracted factors together. The proportion of the variance in any one of the
original variable which is being captured by the extracted factors is known as communality
(Nargundkar, 2002).
Table 8 Principal Component analysis with Rotated Component

Component Comm
unalitie
s
1 2 3 4 5 6 7 8 9
After observing the advertisement of the product, I
will have a good impression to the product advertised
.868
.746
I feel positive effect of electronic advertising of
product on the prices of advertised products?
.828
906
I belief that Advertising conform the product quality .664
.763
Products that I have used usually live up to the
promises of quality and performance made in their
advertisements
.519
.814
I feel positive about the product while seeing
advertising of the product
.888
.826
Advertisement of the product convince me most in
favour of product
.795
.799
I usually get better value for my money in advertised
brands of products than in unadvertised brands
.669
.889
In general, I trust advertising of the product on
various advertising media
.614
.796
Advertisements provide necessary and sufficient
information about products.
.869
.775
Advertisements provide better information and
different characteristics of products.
.718
.724
After observing advertisements of the product, I
would like to try the advertised product.
.539 -.375
.857
After observing advertising of the product
electronically, I would like to buy the advertised
product.
.808
.854
I associate myself with the celebrity engaged in
advertisement
.715
.696
After viewing this ad, I would consider purchasing
the product.
.566
.588
Advertisement add the value endowed by the brand
name , brand loyalty, brand awareness, perceived
quality, brand associations, and other proprietary
brand assets
.869
.848
I usually rely on product information as advertised .485
.716
Advertisements displayed in various media have
reliable and valid information about the product.
.792
.774
Advertisement build my confidence translates my
loyalty and willingness to pay a premium price for
the brand
.758
.750
After observing internet advertisements, I would like
to consume the advertised product.
.829
.699
The benefits described in the ad are believeable to
me.
.545
.795
Advertising enhance the consumers personal
judgment about the overall quality or excellence of a
product or service.
.715
.653
Advertisement increases the brand equity stems from
the greater confidence that consumers place in a
brand than they do in its competitors.
-.686
.629
Advertisements explain the usage and applications of
products correctly as compared to print media.
.853
.777
Initial Eigenvalues
5.319 2.630 2.012 1.905 1.397 1.228 1.106 1.057 1.019

% of Variance
23.127 11.436 8.748 8.284 6.072 5.337 4.808 4.597 4.430

Cumulative %
23.127 34.536 43.311 51.594 57.667 63.004 67.812 72.408 76.839

Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 11 iterations.
Table 9: Principle components and associate variable
Factor Name of
Dimension
Statement Factor
Loading
F1 Product quality
conformance
factor
After observing the advertisement of the product, I will have a good
impression to the product advertised
.868
I feel positive effect of electronic advertising of product on the prices
of advertised products?
.828
I belief that Advertising conform the product quality .664
Products that I have used usually live up to the promises of quality and
performance made in their advertisements
.519
F2 Product image
factor
I feel positive about the product while seeing advertising of the product .888
Advertisement of the product convince me most in favour of product .795
I usually get better value for my money in advertised brands of products
than in unadvertised brands
.669
In general, I trust advertising of the product on various advertising media .614
F3 Product
information
Advertisements provide necessary and sufficient information about
products.
.869
factor
Advertisements provide better information and different characteristics
of products.
.718
After observing advertisements of the product, I would like to try the
advertised product.
.539
F4 Imitating motives
After observing advertising of the product electronically, I would like to
buy the advertised product.
.808
I associate myself with the celebrity engaged in advertisement .715
After viewing this ad, I would consider purchasing the product. .566
F5 Value addition in
products through
advertisement
factor
Advertisement add the value endowed by the brand name , brand
loyalty, brand awareness, perceived quality, brand associations, and other
proprietary brand assets
.869
I usually rely on product information as advertised .485
F6 Reliability and
loyalty factor
Advertisements displayed in various media have reliable and valid
information about the product.
.792
Advertisement build my confidence translates my loyalty and
willingness to pay a premium price for the brand
.758
F7 Product
knowledge and
quality
conformance
factor
After observing internet advertisements, I would like to consume the
advertised product.
.829
The benefits described in the advertisement are believable to me. .545
F8 Personal
judgment and
confidence
motive
Advertising enhance the consumers personal judgment about the overall
quality or excellence of a product or service.
.715
Advertisement increases the brand equity stems from the greater
confidence that consumers place in a brand than they do in its
competitors.
-.686
F9 Uses and
Application
motives
Advertisements explain the usage and applications of products correctly
as compared to print media.
.853

Principal components & associated Variables indicate that first factor (F1 Product quality
conformance factor) indicating that the advertising conform the product quality and enhance
the brand equity of the product. This is the combination of variable , After observing the
advertisement of the product, I will have a good impression to the product advertised, I feel positive effect of
electronic advertising of product on the prices of advertised products?, I belief that Advertising conform the
product quality, Products that I have used usually live up to the promises of quality and performance made in
their advertisements, , and accounting 23.127% variance of the total variances. The second
Factor (F2) is the Product image factor which is the combination of variable like , I feel
positive about the product while seeing advertising of the product, Advertisement of the product convince me
most in favour of product, I usually get better value for my money in advertised brands of products than in
unadvertised brands, In general, I trust advertising of the product on various advertising media, ,and
accounts 11.43% variance of total variance. Third factor(F3) is the product information
factor indicating that advertising enhance the product information among customer and is the
combination of factor like , Advertisements provide necessary and sufficient information about products.,
Advertisements provide better information and different characteristics of products., After observing
advertisements of the product, I would like to try the advertised product., and account 8.748% variance of
the total variances. Fourth factor (F4) is the imitating motives of the customers which denotes
that customer tries to imitate the celebrity or model projected in the advertisement and is the
combination of variable like , After observing advertising of the product electronically, I would like to
buy the advertised product., I associate myself with the celebrity engaged in advertisement, After viewing this
ad, I would consider purchasing the product And account for 8.284%. fifth factor (F5) is the
Value addition in products through advertisement and is the combination of variable like ,
Advertisement add the value endowed by the brand name , brand loyalty, brand awareness, perceived quality,
brand associations, and other proprietary brand assets, I usually rely on product information as advertised, And
account for 6.072%of variance. Sixth factor (F6) is the Reliability and loyalty factor which is the
combination of variable like , Advertisements displayed in various media have reliable and valid
information about the product., Advertisement build my confidence translates my loyalty and willingness to
pay a premium price for the brand, And account for 5.337% of variance. Seventh factor(F7) is the Product
knowledge and quality conformance factor and is the combination of variable like , After observing
internet advertisements, I would like to consume the advertised product., The benefits described in the
advertisement are believable to me., And account for4.808% of total variance. Eighth factor(F8) is the
Personal judgment and confidence motive which is the combination of variable like , Advertising
enhance the consumers personal judgment about the overall quality or excellence of a product or service.,
Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand
than they do in its competitors., And account for2 4.597% of total variance. Last factor (F9) is the Uses
and Application motives which indicate in the variable like Advertisements explain the usage and
applications of products correctly as compared to print media. Advertisements explain the usage and
applications of products correctly as compared to print media and account for 4.430% variance of total variance.
Table 10- influence you most in paying extra premium for the product
Frequency Percent Valid Percent Cumulative
Percent
Valid
Advertisement of the product 87 24.1 24.1 24.1
Personal selling effort of the
company
142 39.3 39.3 63.4
Sales promotion scheme 77 21.3 21.3 84.8
Public relation 21 5.8 5.8 90.6
Direct marketing of the product 34 9.4 9.4 100.0
Total 361 100.0 100.0

Marketer uses different techniques like Advertisement of the product Personal selling effort
of the company Sales promotion scheme Public relation Direct marketing of the product to
influence customers to pay extra premium for the product. Survey reveals that Personal
selling effort of the company is the most effective means to influence customers for pay extra
premium for the product as it was indicated by 39.3% respondents in the sample. It was followed
by the advertisement of the products in different media which account for 24.1% respondents in
the sample. Sales promotion scheme was indicated by 21.3% respondents in the sample. Public
relation and Direct marketing of the product was indicated by 5.8% and 9.4% respondents in the
sample.
Table11- Influence of advertising in paying extra premium for the product
Frequency Percent Valid Percent Cumulative
Percent
Valid
To a great extent 57 15.8 15.8 15.8
To some extent 92 25.5 25.5 41.3
To a considerable extent 129 35.7 35.7 77.0
To a little extent 83 23.0 23.0 100.0
Total 361 100.0 100.0
An attempt was made to know how far advertising of the product influence customers in paying
extra premium for the product. The study reveals that 15.8% respondent are of the opinion that it
influence to a great extent for paying extra premium. 25.5% respondent are of the opinion that it
influence to some extent. 35.7% indicated that it influence to a considerable extent in paying extra
premium for the product. Remaining 23% indicated to a little extent in paying extra premium for the
sake of advertising. However it is significant to not that all the respondent feel that advertising
influence the customer in paying extra premium for the product but with varying extent.
Table12 -Mean of Different Factor of advertising influencing customers in paying extra
premium for the product

Influence of
advertising in
paying extra
premium for the
product

Product
quality
conform
ance
factor
Product
image
factor
Product
informa
tion
factor
Imitatin
g
motives
Value addition
in products
through
advertisement
factor
Reliabilit
y and
loyalty
factor
Product
knowledge
and quality
conformance
factor
Personal
judgment and
confidence
motive
Uses and
Application
motives
To a great extent 3.5789 3.6140 3.4474 3.6842 3.5877 3.6491 3.9035 3.4123 3.3509
To some extent 3.5679 3.5652 3.3261 3.4837 3.5489 3.5326 3.6793 3.1304 3.6196
To a
considerable
extent
3.3469 3.3605 3.3450 3.5233 3.3566 3.2674 3.6279 3.2868 3.7829
To a little extent 3.5301 3.4518 3.4066 3.5723 3.4036 3.2410 3.5843 3.4096 3.2771
Total 3.4820 3.4737 3.3705 3.5499 3.4529 3.3892 3.6745 3.2950 3.5568

As is evident from the mean ratings of various perceived advertising factor promoting
brand equity and influencing customers in paying extra premium for the product,
mean rating of Imitating motives is highest among respondents of all categories.

Coefficients
a

Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 3.682 .553 6.663 .000
Product quality conformance factor
-.051 .137 -.036 -.368 .713
Product image factor
.053 .145 .042 .370 .712
Product information factor
.133 .104 .078 1.282 .201
Imitating motives
-.034 .075 -.026 -.460 .646
Value addition in products through
advertisement factor
-.119 .077 -.096 -1.538 .125
Reliability and loyalty factor
-.219 .065 -.178 -3.361 .001
Product knowledge and quality
conformance factor
-.156 .088 -.117 -1.778 .076
Personal judgment and confidence motive
.089 .075 .063 1.184 .237
Uses and Application motives
.021 .060 .019 .355 .723
a. Dependent Variable: How far advertising of the product influence you most in paying extra premium for the product

A regression analysis was carried out to have a relationship of all the factor of brand equity
with the customers willingness to spend premium price for products of reputed brand. On the basis
of information presented in the table 16 it can be expressed s
Influence of advertising in paying extra premium for the product = 3.682-.051Product quality conformance
factor+.053 Product image factor+.133 Product information factor+.034 Imitating motives -
.119Value addition in products through advertisement factor -.219Reliability and loyalty factor-
.156Product knowledge and quality conformance factor+.089 Personal judgment and confidence
motive +.021 Uses and Application motives

Conclusions and Further Suggestions
In the present fast changing economic environment, the enterprises are in a continuous effort
to stay successful and be profitable. For this reason, the enterprises need several elements in
every area which would help them in building brand equity. Advertising of the product has
emerged as one of the most important tool to build up brand equity. Brand equity becomes an
important element for being able to establish the differentiation regarding the products and
services. In order to understand how much advantage would be provided by the advertising
to the enterprises in building brand equity, it is necessary to assess the different factors and
messages conveyed in advertising for building brand equity. Factor analysis indicates that
There are mine factor Product quality conformance factor, Product image factor, Product
information factor, Imitating motives , Value addition in products through advertisement factor ,
Reliability and loyalty factor ,Product knowledge and quality conformance factor and Personal
judgment and confidence motive , and Uses and Application motives promoting brand equity of
the product. Regression equation reveals that company must focus on these issues to buildup
brand equity of the hair care product. The study reveals that advertising plays an important
role in increasing brand awareness, brand image, and brand loyalty and in turn increasing
brand equity but with varying extent.
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