Consumer Choices of

Different Brands


Course:
Quantitative Methods for Decision Making
(Executive MBA Spring 2014)


Prepared By:
Muhammad Umer Farooq
Saif Ali Momin
Acknowledgement
We have taken efforts in this survey report. However, it would not have been
possible without the kind support and help of many individuals and organizations.
We would like to extend our sincere thanks to all of them.
We are highly indebted to Mr. Yaseen Ahmed Meenai for their guidance and
constant supervision as well as for providing necessary information regarding the
survey techniques and resources & also for their support in completing the report.
We would like to express our gratitude towards our friends & colleagues at Byco
Petroleum Pakistan for their kind co-operation and survey inputs which helped us
in completion of this report.
Our thanks and appreciations also go to our batch fellows at Institute of Business
Administration in developing the report and people who have willingly helped us
out with their abilities.

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Contents

1 Introduction ..................................................................................................... 4
2 Consumer Survey and Inferences .................................................................... 5
2.1 Smartphones Brand ................................................................................... 5
2.2 Television Brand ........................................................................................ 6
2.3 Clothing Brand ........................................................................................... 7
2.4 Footwear Brand ......................................................................................... 8
2.5 Computer Brand ........................................................................................ 9
2.6 Sports Brand ............................................................................................ 10
2.7 Automotive Brand ................................................................................... 11
2.8 Restaurant Brand ..................................................................................... 12
3 Chi-Square Test of Association ....................................................................... 13
3.1 Association between Smartphone and Television.................................... 14
3.2 Association between Smartphone and Computer Brand ......................... 15
3.3 Association between Clothing and Footwear Brand ................................ 16
4 Conclusion ..................................................................................................... 17
5 References ..................................................................................................... 18



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1 Introduction
Firms generally are in the continuous process of analyzing their product demand based on
various market trends, consumer taste, income, product branding and so on. This information
is vital for a firm to analyze its product demand trend in the market and plan future strategy
accordingly.
In this report we have tried to study the taste of urban youth regarding their choices for
different household brands. This survey will reveal some interesting facts regarding transition
in the consumer choices and association between selections of different household brands.
The survey was carried out among general youth where they were asked about their
preferences from the mentioned choices of various brands. Feedback for following consumer
goods was sought from the audience.
1. Smartphones Manufacturer
2. Television Manufacturer
3. Clothing Brands
4. Footwear Manufacturer
5. Computer Manufacturer
6. Sports Items Manufacturer
7. Automotive Manufacturer
8. Restaurant Brands
Results and inferences presented in subsequent section are based on more than 70 responses
received from the target group.
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2 Consumer Survey and Inferences
2.1 Smartphones Brand

There were days when every pocket has a Nokia phone in it and every home had a must
Nokia charger! But the things have changed so dramatically that the brand which was only
famous for their Kitchen Appliances has now become the number one smart phone choice of
the urban youth! Yes, Samsung has the leading followers in smartphone industry.
The runner up in this smartphone marathon is HTC. Once a status symbol, HTC is facing
series financial crises (according to recent news) which have impacted their overall sales
and industry share.
Apple and Nokia have shown similar results. Although, Apple has increased its customer
base but its not up to the mark. Since most of the Apple smartphone features work with
3G/4G, Experts say that unavailability of 3G and 4G services in Pakistan is hindering Apple
smartphone growth. Nokia has also failed to adopt Android standards and resulting in ever
reduced market share.
Qmobile is doing well but since its a local brand, urban youth do not feel itself comfortable
with it. Although Qmobile offers a lot in term of software but it has failed to give reliable
hardware.
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Finally, Sony and Blackberry have very alarming situation. According to experts, Sony and
BlackBerry have a very few models of smartphones which makes it difficult for consumer to
find appropriate phone.
2.2 Television Brand


Samsung and Sony has shown consistent results and continued their legacy of producing
best televisions. Probably the major reason is their customer support eco system and easily
available spare parts in local market.
There is news that LG is winding up their business in Pakistan, probably the main reason is
their very low returns on investments. Since the previous distributor of LG (Allied
Electronics) has launched their own brand (Qmobile), LG is now facing bad times these days.
Panasonic is failed to capture market because of their sky high prices and very less models
available. Moreover, their technology and hardware is not easily repairable and often
requires the spare parts to be imported from Korea or China.
Having a Chinese brand tag, Ecostar is struggling to build their brand image. Chinese brand
are supposed to have low product life and same is the impression with Ecostar. More
improvement on quality is to be done to attain trust of the consumer.
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2.3 Clothing Brand


We know that there are numerous choices available for clothing brands nowadays. However,
when consumers are asked to choose from the mentioned local and international brand,
Cambridge (an international brand) seems to lead all of them. Bonanza generally have
similar high product price as of Cambridge and therefore local consumers tend to buy
international brand rather than local to have look a feel of international brand.
Decency and readymade garments are mostly preferred by office going consumers therefore
Gul Ahmed, Alkaram and Khaadi are generally less preferred since they do not provide
stitched clothing. Among three non-stitched garments manufacturers Gul Ahmed due to its
long term market presence and credibility have relatively good number of consumers as of
now.

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2.4 Footwear Brand


Apart from durability and price of footwear brands, one major factor seems influential is the
up-to-date style according to fashion trend. Bata have good quality of footwear but due to
lack of variety in style and not in-line with taste of consumers it seems to be less famous in
youth. However, EBH and Servis have reasonably equal number of market capture and both
have products which are balance of quality and style. Servis due to its low price products and
greater number of stores have somewhat greater market capture than EBH.
Among all Hushpuppies footwear have very up-to-date style in every season with good
quality and reasonable price. Therefore, it seems to be famous in youth and therefore
capturing near to half of the market share.

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2.5 Computer Brand

When it comes to the selection of computer a vast majority of local consumers tend to select
Dell and HP computers. One clear reason may be due to its low cost and easy availability of
spare parts in local market. With a diverse specification and configurations available for
home usage, professional usage, gaming computers, Dell and HP have greater market capture
to all class of consumers.
Apple and Sony have comparatively less market share due to their highly priced computers
and in our country we have fewer consumers who afford these highly priced fashion
oriented machines.
Lenovo and Fujitsu are not very well known brands in general public. This might be due to
business purpose laptops like notebooks which are famous in this case.


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2.6 Sports Brand


Sports brands fan following are somewhat related to global trends and has little or no
influence depending on local taste and economy. According to Forbes Fab40; Worlds Most
Valuable Sports Brands are Nike and Adidas. Surprisingly our stats also show similar results
for local consumers.
There might be good reason that when somebody thinks of Sports apparel, equipment and
accessories, the first name that strikes the heart and mind is Nike. Nike is also associated
with many famous sports stars which catch their fan following to inclined towards Nike
products.
Most of the brands listed in the survey are available locally. However; Nike, Adidas and
Reebok have reasonable number of stores in local market than others and therefore they
tend to capture sport fans more towards these world best Sport brands.


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2.7 Automotive Brand

Roads friendly build, high resale value, easily available spare parts and decades of trust has
mode Toyota and Honda most favorite brands of the youth. Although, used car import policy
has introduced some new brands to customers but it has not affected these giants much.
Suzuki has been the brand of lower and upper middle class and still holds the market of
small sized automobiles like Cultus, Alto, Mehran and Swift. Suzuki does not have much to
offer in luxury vehicle category such as Civic/Corolla which has limited its market share.
Since there are very rare outlets or dealer of Nissan and Mitsubishi in local market, these
brands are near to vanish permanently. Nissan has converged to produce more Trucks and
Busses and Mitsubishi is getting bankrupt as they dont have a distributer with strong
finance base and market experience. If these both brands want to compete with others, they
have to introduce variety of products with good after sale support and local market service
eco system.

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2.8 Restaurant Brand

Well, we are totally amazed here! There was a general perspective that youth want to go in
multinational food chains but this survey results has astonished us. Yes, youth is more
interested in desi stuff being cooked by desi ingredient with desi recipes and in desi
environment. Our teacher at IBA, Mr. Meenai has quoted that, I had to travel to kohat for a
lecture. During this trip I was suffering from illness and was not feeling well. Eventually my
friends offered me some desi foods prepared by Lamb meat and after having it I was feeling
very refreshing and energetic.
This trend also shows the inclination of youth about healthy and organic food. There is a lot
of buzz about processed and artificial ingredients being used in fast food like burgers so it
may be a cause of the disliking of KFC and McDonald in youth.
Through their diverse food range and luxurious dine in facilities, Pizza Hut has managed to
gain youth attention. Pizza Huts monthly deal plans and promotion offers have result
positively in term of their sales.
Nandos is suffering from lack of enough outlets and competitive prices. Having only chicken
dishes is may be another cause of their less popularity.

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3 Chi-Square Test of Association
To determine the relationship between various consumer choices, Chi-Square test was carried
out between different combinations of consumer products. Few results which are worth
noticing are listed below:
selection of particular brand of television against smartphone brand
selection of particular brand of smartphone against computer brand
selection of particular brand of clothing against footwear brand
Before proceeding for the results of Chi-Square test we would set the hypothesis of the test as
follows.
Null hypothesis HO: There is no association between selections of one particular
brand of an item over other.
Alternate Hypothesis HA: There seems an association between selections of one
particular brand of an item over other.
For the p-value less than = 0.05 we will reject the Null Hypothesis.

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3.1 Association between Smartphone and Television
Results of the Chi-square test show us that p-value is less than (0.05). So there seems to be
an association between smartphone selections with particular brand of television.
Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 66.498
a
30 .000
Likelihood Ratio 22.672 30 .828
N of Valid Cases 52




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3.2 Association between Smartphone and Computer Brand
Results of the Chi-square test show us that p-value is greater than (0.05), so we accept the
null hypothesis and conclude that, there seems to be no association between Smartphone
selections with particular brand of Computer.

Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 37.558
a
30 .161
Likelihood Ratio 28.784 30 .529
N of Valid Cases 52








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3.3 Association between Clothing and Footwear Brand
Results of the Chi-square test show us that p-value is less than (0.05), so we reject the null
hypothesis and conclude that, there seems to be an association between Smartphone
selections with particular brand of computer.

Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 1.148E2
a
64 .000
Likelihood Ratio 54.774 64 .788
N of Valid Cases 52






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4 Conclusion
We would like to conclude this survey discussion by a famous quote of famous celebrity Mr.
Mahatma Gandhi. He once said:
A customer is the most important visitor on our premises. He is not
dependent on us. We are dependent on him. He is not an interruption in our
work. He is the purpose of it. He is not an outsider in our business. He is part
of it. We are not doing him a favor by serving him. He is doing us a favor by
giving us an opportunity to do so.
From the survey we have witnessed some dramatic change of choices in recent times.
Companies who failed to meet customer requirement have suffered badly. Customer needs
innovation with affordability and reliability. Brands whocannot predict the future are
eventually get eliminated from the market. Similarly brands with strong retail network, good
customer services and friendly product service ecosystem are seems to dominate the market.


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5 References

Survey website: http://www.surveymonkey.com
Quotation of Ghandi: http://www.indusbusinessjournal.com/
Worlds Most Valuable Sports Brands: http://www.forbes.com/