AN EVALUATION OF GLOBAL BRAND PERCEPTION ON CONSUMER

BUYING BEHAVIOUR: VIRGIN GROUP

A Dissertation

by

FREDDY ALEXANDER BARRERA VALBUENA

ID No. 0214JTJT0609

Submitted in partial fulfillment of the requirements for the degree of

Master Business Administration (MBA) of

University of Wales Institute, Cardiff.

SEPTEMBER 2010
 ABSTRACT

Global brands have more relevance than ever. Globalisation as the main economic
phenomenon of the last decades and becomes more important with the influence
that Global brand has over individuals. Customers around the world have a
perception of global brand that modify life style. Consumers habit and in general
the culture of millions of consumers that no matter the background share similar
needs and likes for any particular brand or group of them. The evolution of this
concept that itself is an asset valuable in some cases in thousands of millions of
pounds is something that motivate to study and management focus in get the best
of its brand.

The purpose of this research is identifying the link between a global brand
perception and the consumer buying behaviour analyzing in particular a unique
business brand: Virgin. Virgin group is a British branded venture capital
conglomerate with successful business in the five continents. It is a recognized
brand that with the charismatic influence of its founder Sir Richard Branson has
built up an iconic brand that is not just a global brand but an intergalactic brand
indeed this because with Virgin Galactic is the first company in the world that will
take tourists to the space.

The mono-brand strategy used by Virgin group has started up more that 200
companies around the world with revenues of 17 billion in (2008) and more than
50.000 employees around the world. Nowadays the Virgin brand is not just a
simple global brand. According to various researches it is catalogued as the most
admired brand in the UK, with recognition worldwide. In 2009 three of its brand
took a place in the study Superbrands 2009/10 with Virgin Atlantic, Virgin Media
and Virgin Mobile within the favourites brands in the consumes mind. Also Virgin
Atlantic won the first place as the best company that has development its presence
in internet with social websites, such as Facebook and Twitter that globalise and
extend the brand with a direct and easy link, between customers and the company
building up customer loyalty very difficult to destroy by competitors.

Certainly the researchs results can confirm the strong link between the
positioning of Virgin as a global brand supported by loyal customers and their
decision to continue buying Virgin branded products and services worldwide and
even in the space. The influence of its founder and chief executive Sir Richard
Branson highlight the importance of development a management off the desk,
finding opportunities, solutions and new customers in the high street with a direct
a real contact with the final consumer: You.

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 ACKNOWLEDGMENTS

First at all I want to give thanks to God, source of inspiration and strength that
always has illuminated my way to accomplish all my aims and goals in my personal
and professional life. In this last part of my path I has been very fortunate to count
with the supervision of my work with Dr. Wilson Ozuem that from the first
moment has injected demand and commitment to deliver a piece of work with high
standard of quality and rigour academic. His enthusiasm and definitely support has
motivated me to improve my skills and do an outstanding job. To my whole family
especially my parents Fulvia Valbuena and Luis Barrera and my sister Nidia that
always have believed on my dreams and have supported them. For them my
immense gratitude and love for their unconditional support. To my friends back
home and in London, colleagues and professors at LSC than influenced in a positive
way to finished my studies successfully.

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 TABLE OF CONTENTS

CHAPTER ONE INTRODUCTION ......................................................................................................... 7

1.1. ENQUIRY OVERVIEW.................................................................................................................. 7
1.2. BACKGROUND OF THE STUDY............................................................................................... 8
1.3. AIMS AND OBJECTIVES........................................................................................................... 11
1.4. RESEARCH QUESTIONS .......................................................................................................... 12
1.5. IMPORTANCE OF THE RESEARCH .................................................................................... 12
1.6. SCOPE AND LIMITATIONS OF THE STUDY ................................................................... 13
1.7. SUMMARY...................................................................................................................................... 13
CHAPTER TWO -LITERATURE REVIEW....................................................................................... 14
2.1. INTRODUCTION ......................................................................................................................... 14
2.2. CONCEPTUAL CLARIFICATIONS ........................................................................................ 14
2.3. BRAND ANALYSIS...................................................................................................................... 18
2.3.1. GLOBAL BRAND CULTURE ................................................................................................ 20
2.3.2. BRAND EXPERIENCE ........................................................................................................... 22
2.3.3. BUILDING BRAND STRATEGY ......................................................................................... 23
2.4. PERCEPTION ON CONSUMER BUYING BEHAVIOUR: .............................................. 24
2.5.2. BRAND LOYALTY ................................................................................................................... 31
2.6. SUMMARY...................................................................................................................................... 31
CHAPTER THREE: RESEARCH METHODOLOGY ...................................................................... 33
3.1 .INTRODUCTION ......................................................................................................................... 33
3.2. RESEARCH PARADIGMS ......................................................................................................... 33
3.3. RESEARCH APPROACH .......................................................................................................... 34
3.4. RESEARCH STRATEGIES ....................................................................................................... 36
3.5 DATA COLLECTION METHODS ............................................................................................ 37
3.5.1. WEB SITES TO COLLECT DATA FROM INDIVIDUALS .......................................... 39
3.6. LIMITATIONS OF RESEARCH ............................................................................................... 40
3.7. ETHICAL OR PROFESSIONAL CONSIDERATIONS ...................................................... 40

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 3.8. SUMMARY...................................................................................................................................... 41
CHAPTER FOUR: ANALYSIS AND FINDINGS .............................................................................. 42
4.1. INTRODUCTION ......................................................................................................................... 42
4.2. QUALITATIVE ANALYSIS PROCESSES ............................................................................. 42
4.3. ANALYTICAL PROCEDURES TO ANALYSE QUALITATIVE DATA ....................... 43
4.4. THE DATA ANALYSIS METHOD: THEMATIC ANALYSIS ......................................... 44
4.4.1. CATEGORIZING THE THEMES ......................................................................................... 45
4.5. SUMMARY...................................................................................................................................... 53
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS................................................ 55
5.1. INTRODUCTION ......................................................................................................................... 55
5.2. EVALUATIONS OF THE FINDINGS..................................................................................... 55
5.3. LINKING THE EMPIRICAL DATA TO THE RESEARCH OBJECTIVES.................. 58
5.4. RECOMMENDATIONS .............................................................................................................. 61
5.4.1. GLOBAL BRAND INSTITUTIONAL CAMPAIGN ........................................................ 62
5.4.2. LIMITING UMBRELLA BRAND ESTRATEGY: ............................................................ 62
5.4.3. INHERIT RICHARD BRANSONS BRAND PERSONALITY TO THE VIRGIN
BRAND ..................................................................................................................................................... 63
5.4.4. BLUE OCEAN STRATEGY APPLICATION TO VIRGIN BRAND STRATEGY .. 63
5.5. CONCLUSION ............................................................................................................................... 64
5.6. FURTHER RESEARCH DIRECTION .................................................................................... 65
5.7. SUMMARY...................................................................................................................................... 65
REFERENCES ............................................................................................................................................. 66
APPENDIX 1 .......................................................................................................................................... 70
APPENDIX 2 .......................................................................................................................................... 74

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 CHAPTER ONE INTRODUCTION

1.1. ENQUIRY OVERVIEW

The purpose of this research was to analyze the link between Global Brand and the
perception in Customer Buying Behaviour with one of the most successful British
conglomerate Virgin Group. The background of the study, the antecedents about
the origin of the Global brand, and how it was conformed Virgin Group was the
main focus of the chapter one. The research aims and objectives has given the
parameters to focus the research and at the same time answering the proposed
questions. The most important points that gives the importance to the research the
importance that it needs is analysed in Importance of Research chapter. The
boundaries of this research were dealt in the final part of the chapter one Slope
and Limitations of the Study.

The key concepts, marketing theories and business examples that integrate the
topic are developed from the literature review, dealt in chapter two. Chapter three
makes a completely analysis about what is the best way to make the research. Step
by step is identifying the whole research methodology: including the research
paradigm, approach and strategies, the data collection methods that were used in
the research. Finally is clarifying the limitations of research and the ethical or
professional considerations.

Analysis and findings are dealt in chapter four, which help of the thematic analysis
as data analysis method is structured all the raw data in one single table to easy
interpretation. Finally the conclusion of the research are dealt in chapter five,
taking objective per objective for its analysis. Additionally some recommendations
addressed to the Virgin Group Management and in general to any multinational
which tries to position a brand as a Global brand close up this chapter. Also as a

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result of the research and findings are discovered important and interesting new
subjects of research that will be valuable to study in the future.

1.2. BACKGROUND OF THE STUDY

Nowadays any company, organization or even a person has a direct relationship

with the concept Brand. Brands are around us with a bigger implications
At the beginning of the commerce a couple centuries ago brand it was just a name
that a consumer can differentiate one product from another, but in the last fifty
years become an important subject in international business and even in cultural
and political concerns. It has been significantly affected by multiples factors related
to Global Brands. In the XVIII thinkers of that time created an international
division of labour to be used differentiation of one product from another due to
the precedence of origin, for example Colombian coffee different from Brazilian
coffee, that prefix before the product connotes that there are one or more
differences among the products. The Brands history data in the UK in 1876 when
the very first name of a product with a specific logo was registered (Blackett, 2003,
p.15). That brand was Bass Beer with a red triangle logo. Since then it is necessary
that each company, product, organization, even every single person should be
identified with an Unique Brand.

After the Second World War, brands with the explosive growth of international
trade, the modernization of telecommunications, the reduction of time in transport
and delivery goods around the world due the use of different international
transport modes had a significant development. Political factors such as decadence
of Communism, the invention of internet and the influence of the mass media into
the costumers mind and finally the phenomenon of globalisation of the economy
itself catapulted the launch of Global Brands as a very important factor in ours life.

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In the last two decades with loads and loads of information to process, busy lives,
people try to simplify their lives just with some concepts or words that help them
to live easier. Brand involves a kind of solution for consumers problems. Every
single brand that any customer uses give solution at any particular problem or
needs. Till and Heckler (2008) consider a brand as a promise that you make to
your consumers. That promise has two parts to it: what you say you are promising
and what you actually deliver. As a brand, you must be true to your word.

Generally companies add to the brand slogans like a small phrase, which gives a
promise of something, but there is a risk if you do not meet that expectation, it is
against the law, as it misleads a customer, and people will lose trust on the brand.
Exceptionally the Virgin Brand has built a image of customer satisfaction first
before profits, satisfying needs of niche of market on divers sectors of the
economy, not just in UK, but also around the world.

Virgin Group born as a crazy dream of a British young entrepreneur: Richard

Branson. In the 1970s when he was in his twenties Branson founded the Virgin
record label; the idea emerged from the brainstorm with his partner in business.
They were virgin in the business and in that way they draw up the multimillion
brand name in a paper napkin. In 1984 he started up Virgin Atlantic Airways one of
the most successful business of his empire. In 1997, Virgin has entered to the
Transportation Sector taking six of the Britishs government rail lines with Virgin
Trains. In 1999 Virgin Group launched Virgin Mobile that provides cellular
communication with a partnership with Deutsche Telecom; at the same time Virgin
conquer the cyberspace with the creation of Virgin.com a website where
customers are be able to to purchase every product or service in the world of
Virgin Group (keller, 2007 p.596). Nowadays Virgin Group is a empire with more
than 200 companies around the world, employees more than 50.000 people in 5
continents. The value of Virgin World is 2.2. billion (The Value of Virgin, 2007)

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Virgin Group is an organisation founded by Richards Branson. These companies
conform a British branded venture capital conglomerate. The main industries that
operate are travel, entertainment and lifestyle. At the moment there are more than
400 companies worldwide.

Virgin Group is structured as follow:

EUROPE NORTH AMERICA AFRICA
Virgin Active UK. Virgin Atlantic Airways Virgin Atlantic Airways
Virgin Mobile Canada. Virgin Megastore
Virgin Megastore France
Virgin America. Virgin Money South Africa
Virgin Mobile France Virgin Money US. Virgin Mobile Qatar
Virgin Mobile USA Virgin Active South Africa
Virgin Atlantic Airways
Virgin Vacations Virgin Mobile South
Virgin Money UK. Virgin Gaming. Africa
Virgin Limited Edition
Virgin Holidays
Virgin Spa.
Virgin Media
Virgin Trains UK
Virgin Balloon Flights

AUSTRALIA ASIA
Virgin Blue Virgin Atlantic Airways.
Virgin Megastore
Virgin Mobile India.
Virgin Connect.

If you as a reader of this study is wondering about why the Virgin Brand was
chosen to understand the link between Global Brand and Customer Buying
behaviour, simply the answer is because is a phenomenon. This organization has
beaten management theories about do not diverse the business, focus in the core

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business and do it well. However Virgin Group with its leader Richard Branson is
an example how positioning a brand with success worldwide.

Richard Branson has a book called Screw it, Lets do it Expanded. It shows how it
has been the experience around the Virgin Group and how he and his colleagues
had started up many companies with the main base the brand. Richard also shares
many anecdotes and details of how to run a business with little money, and just
with creativity, commitment and passion for his brand. The dream of a Global
Brand is now a reality. The future of the brand is very promissory.

The Virgin Brand has business in diverse economical sectors from a Student
Magazine up to space tourism with Virgin Galactic, also airlines, train services,
media, gyms and so on. This entrepreneur point out a message in his book Branson
(2007) Take that first step. There will be many challenges. You might get a few
knock-backs but in the end, you will make it.

1.3. AIMS AND OBJECTIVES

This research seeks to understand the link between a Global Brand and the
customers perception in consumers buying behaviour. Virgin Group is taken as a
case study because is a representative example of a British Global Company with
successful results in foreign markets.
This research also aims to establish what are the Global Brands key factors to get
impact in the consumers perception an the factors that support the Brand
Extension strategy of Virgin Group considered for many people opposite to the
Management theory.

To review marketing concepts and theoretical frameworks related to

consumer buying behaviour influencing the perception of a Global Brand.

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 To examine the influence of Global Brand perception on consumer buying
behaviour.

To make valid recommendations for further improvement in Global Brand

Management to the organization Virgin Group.

1.4. RESEARCH QUESTIONS

The purpose of this study is to identify the relationship between a Global Brand
and the perception on Consumer Buying Behaviour in Virgin Group as a case study.
The topic include some variables that link each other when is analyzing the Virgin
Group. In order to answer how is the topic could development is described using
the following questions:

1. What is the relationship between a Global Brand perception and consumer

buying behaviour?
2. What are the main factors that affect the consumer buying behaviour when there
is a Global brand with Extension Brand?

1.5. IMPORTANCE OF THE RESEARCH

Introduce a new brand in a new Market is the main duty of any Executive working
in international business. My topic pretends to understand what the factors than
affect consumer buying behaviour are with a global brand taken the case of Virgin
Group in a market like UK.

We are living in a global market after the some decades of development nowadays
we find any important brand in any country around the world. Globalisation has
permitted spread business without frontiers, there such number of multinationals
with representation in all five continents. In fact everyday in different media sector

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like TV, magazines, radio so on new products or services from foreign countries
than are coming to get a market share fighting with local business.

Any eager company to conquer foreign markets must works in global marketing
research. This include understand some new factors completely different where
the global company is from. Among the main elements we find international
segmentation, target market selection, ethnic influences, sampling and fielding.
Another important fact is the International Strategy of the company in study Virgin
Group. It itself should be dynamic; have to be proactive to attend different kind of
wants, wishes and cultures indeed.

1.6. SCOPE AND LIMITATIONS OF THE STUDY

This research has as a main objective to know how the different perceptions factor
on Consumer Buying Behaviour make a contribution for Global Brands reach the
consumers mind pursuing to be the leader in a competitive market. Virgin Group
has a unique strategy and with the analysis in this research determine what is the
performance of this organization and its role in the British and world market. This
research is limited to the British consumers who are object of evaluation through
previous researches done until now. Britain is now a multicultural society and it is
easier to understand how is going to be the perception of Global Brand Virgin
Group in International markets.

1.7. SUMMARY

This section has as an objective to show a quick look of the research, introducing the
research aims and objectives, presenting the background information, the importance of
the research as well as its possible limitations. The next part provides a comprehensive
review of literature linked to the research.

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 CHAPTER TWO -LITERATURE REVIEW

2.1. INTRODUCTION

This chapter reviews concepts, definitions and theories by specialist in this area of
study. At the same time this chapter provides a critical analysis of the views and
understanding of this fascinating subject. The first section of this chapter, the
literature review breaks down the meaning of Brand and its main characteristics
and factors that comprise it. Also is considered in what extend perception on
consumer buying behaviour, the factors that are feasible to influence consumer
preference towards a global brand.

2.2. CONCEPTUAL CLARIFICATIONS

In our time people around the world are living the most convulsive time in the
business history, as a customers or inhabitants of any country there is a strong
movement that is transforming the way how we live called Globalization. At this
particular point is necessary to know what it is, what influence it has in our diary
life and how we can take advantage of this. My research is about a segment of the
global companies than pursuing the aim to achieve international markets build a
Global Brands and what is the link with the perception of Consumer Buying
Behaviour in one of the most admired brands in UK and worldwide Virgin Group
and its founder Richard Branson, who has printed a unique stamp in it.
In this study there some key concepts as follows: Global Brand, Consumer
preference, Customer Loyalty, Brand Awareness that are development in the
literature review. Initially it is important know the general meaning of and its
different definitions from divers authors: De Chernatony (2010, p. 17) theorise
that a brand is a cluster of functional and emotional values that enables a promise
to be made about a unique and welcomed experience.

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In consequence is primordial recognizing the very important role that Brands are
playing in the process of Globalization. Askegaard (2006, p. 92) argues that
brands and branding can be seen as a central historical and institutional force that
has profound impacts on the perception of the marketplace and the consumer as
social categories. Also Lee and Carter (2009, p.n293) confirm that Brands play a
crucial role in establishing an organizations position and visibility in the global
marketplace.

Companies around the world spent millions of dollars annually to build a Brand
which customers remember easy and make a positive decision when they have to
purchase a product over their competency. Indeed Global brand is the one who is
recognize in different parts of the world with a similar meaning for the customers.
Elliot and Percy (2007, p.4) stated that The power of brand to influence
perceptions can transform the experience of using the product. Indeed a brand
has a power, but this power must be use carefully. There is a relationship between
the brand and the customer, when there is a failure basically from the brand, that
damage the link of credibility. Till and Heckler (2008) add that nothing can
destroy a brand more quickly that creating expectations, interest and promises
about something that doesnt exist. Any brand must be responsible with its core
business and deliver whatever the brand means for the customer; otherwise there
is no reason to position a brand without any credibility for its consumers.

Perception of Global Brands by Consumers is influenced for the country of origin,

characteristics like values, technological level, political and social environment
take a decisive pressure in the decision of a consumer. It is not possible generalize
that there is just one kind of perception in all the categories of products. For
example people have a strong inclination to get food from local brands; basically
because they are able to get more information about those companies, instead of a
unknown brand of other country or continent. Nevertheless if consumers desire

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buy an electronic product they got inclination about a Japanese brand instead of a
local or regional brand because exists a general recognition about the quality of
those products from that country. Mooij (2010, p.33) justify that consumers tend
to have a stronger preference not only for products that originate in their home
countries but also for those originating in the same geographic region. There
studies about that like the Readers Digest that annually along Europe research
about which brand they trusted most for a number of product categories called
Trusted Brand Study. Also it is perceived that people increasingly have a
preference by brands belonging to their own history, either national or regional.

By contrast, despite Brands being a commercial and business matter, it has another
focus The Social Value that is determined by the innovation level that improve the
peoples quality of life; Brands has to measure continuously how much impact has
in the customers life. Hilton (2003, p.48) remark that brands promote social
cohesion, both nationally and globally, by enabling shared participation in
aspirational and democratic narratives. So brands play a very important role in
the human beings life. There is a direct relationship between number of global
brands and wealth of a determined country. Mostly countries that pose a good
number of famous and big brands, their economic situation has improved. United
States is the classical example for number of prestigious brands which starts the
globalization process, but at the same time European and Japanese firms did it as
well. Also in the last two decades countries called Asiatic tigers have grown on a
par with the recognition of their brands. South Korea has global brands like Kia,
LG, Samsung, Hyundai. In this way the Bric Group, Brazil, Russia, India and China
emergent countries with rates of growing superior to developed countries have the
mission to positioning their brands with the aim of bring wealth to their
population. By Virgin Group is doing its part in this camp. Branson (2008 p.300)
staged that everyone together with a common focus to try to do our best for

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people and the planet. In Virgin Group exists a Charity Organization called Virgin
Unite.

The brand is currently a basic element of the society, every organization or even
important people are brands. Also there is literature about how branding yourself,
so in this time everything is susceptible to be branded. American lifestyle is
recognizing mainly because the habitants use global brands to satisfy their wishes
and needs leveraged in their own culture: consumerism. Kornberger (2010) point
out that what people consume are not products or services, but brands. Also adds
that the different between branded and unbranded goods lies in their ability to act
as makers of social identity. In this research the purpose is find out the link exactly
between a global brand and its influence in the buyer decision making; and in
advance is visible how brands are touch all the levels of the society and of course
the human being. The Virgin brand in UK is now a symbol of leadership, because it
has trust its own beliefs, to succeed does not matter the field, just transmitting its
identity

Brands inspire the company, once the brand has an image it many times lead the
companys management, employees and customers, to develop the brand towards
the synergy of this forces produce. Virgin is not just the logo. Is its employees that
deliver a better service, is Richard Branson, its founder that inject energy,
motivation and risk to pursuit the big dream, the Virgin Group that itself works for
reinvent products and services to reach a specific niche of market. Hilton (2003,
p.48) declares that: Brands are a spur to innovation, ensuring that companies can
capture appropriate returns from investments they make in improved products
and services.

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2.3. BRAND ANALYSIS

Once have been reviewed the main concepts that link with the concept of Brand, is
necessary deep in the meaning of Global Brand. Kotabe and Helsen (2010, p, 362)
describe a truly global brand is one that has a consistent identity with consumers
across the world, this means the same product formulation, the same core benefits
and value proposition, the same positioning. Some decades ago solo
Multinationals were able to conquer this disputed camp, but in recent years any
company with the internet era could put its brand at the top of the list. Internet
companies have displaced the classical global brands, just in a couples years of its
birth. The answer is the use of the latest technologies to communicate to the
masses the existence of the brand and incorporate to the consumers lives as an
important factor on the daily basis. (Jeannet and Hennessey 2004, p. 446) There
are different reasons to venture with a Global brand like to reduce all sources of
unnecessary costs, simplify the recognition worldwide when the business activity
is related with continuous international performance like courier companies.
At the same time with the term Global Brand it creates other term Global
Consumer and all of them are in the same context Globalization (Maclaran, 2010, p.
197) as a process that describes the way the activities in which we engage on an
everyday basis. At this point let me explain my own perception about that. At this
precise moment I am typing my dissertation in a Dell Laptop (66), working with
Microsoft software (04), drinking a glass of Coca-Cola(5), calling and receiving text
message in my Nokia E71(43), searching information through Google(01), buying
online some books on Amazon(15) even working part time in Morgan Stanleys
canteen(95) to support my life expenses as a student. In parentheses after each
global brand is the rank position 2010 according to (BrandZ Report 2010). So
consumers like me are surrounded by multiples global brands than offer us
products and services and determined our personality and behaviour. However
Hollis (2008) defines Global Brand as one that has transcended its cultural origins

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to develop strong relationships with consumers across different countries and
cultures.
BRAND IMAGE
A brand is a series of elements name, symbol, slogan that united as a whole,
represents a particular product, service or business. In the case of Virgin Group
the logo represents how the firm start, how operate now and what the
customers expect from them in the future. The red colour of the brand, generally
means strength and life in UK; obviously the colours meaning depends of the
place or culture where is created. The other hand the way the logo is written
has a 45 grades inclination, which is associated with projection; always we have
seen too many graphs where the success growth rate is shown with that
inclination. Finally a brand image (Keller, 2007, p.66) is all about the
perceptions that Virgin brand issued to the consumers, how it reflected by the
brand associations is assumed in customer memory. The other hand Wheeler,
(2009, p.04) add that Brand Identity is tangible and appeals to the senses,
fuels recognition, amplifies differentiation, and makes big ideas and meaning
accessible. In others words is the synergy of distinct elements that are united
to create a system with a meaning. See Appendix No.

BRAND IDENTITY
As a person, a brand has character that include companys values, services,
ideas and personality. Virgin Group Brand has been influenced by its founder
Richard Branson mainly. He has impressed personal characteristics to the
brand that involved the energy, passion and effectiveness that exemplify to him
as a business entrepreneur. (Smith, 2002, p. 48) When a brand has reach a
solid development could promise and be accepted by the customers who
believe and trust in that statement. Virgin Atlantic promises to provide the
highest quality of innovative service at excellent value for money for all classes
of air travellers.

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 BRAND POSITIONING
At the present time thousands of products are launched every year, and every
single of them fight to conquer the consumers mind, take a place and stay there to
be the first alternative when the customer has to make a decision what brand to
buy . Also according to Temporal (2010, p.47) argues that Positioning takes the
basic tangible aspects of the product and actually builds the intangibles in the form
of an image in peoples minds.

BRAND EXTENSION

These days, in a competitive market is every time is more difficult introduce a new
brand or product because customers are saturated con too much information,
newspapers, TV, magazines, internet, mail, billboards, and so on. For that reason some
companies prefer to use the current brand to launch a new product or even a new
business in a different sector to reduce costs and take advantage of the brands good will
and in that way introduce it to the market easier and less risk. In our case study The
parent Brand is Virgin Group which has sponsor hundreds of products and services
around the world. (Keller, 2007 p.577) Brand extension can be classified into two
categories: Line Extension: when the parent brand is used to introduce a new product in
a new market within the same product category like a different flavour, form or size.
The second one is Category Extension: in this case the parent brand serve to start up a
new product or service in a different product category, in others words it was when
Virgin from the original Records labels to Virgin Atlantic Airways, it was a totally
different sector, but incredible successful until now. See appendix 2.

2.3.1. GLOBAL BRAND CULTURE

Walking in cosmopolitan cities like London where there are people from every
country of the world is visible to find customers wearing global products like MP3
players, jeans, trainers, glasses and so on. Consumers buy and follow those brands

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with admiration and fervour. Brand name in high technology products like Smart
phones live a special ritual every time there is a new product, thousands of
customers slept overnight by the shops door just to be the first ones to get the
new gadget and show off to everyone that they are updated with the latest that the
marketplace offer. (Schroeder, 2007 cited in Maclaran, 2010 p. 73) found that
Brand culture concerns all the aspects and connotations of brands that have made
them an important part of our everyday lives and experiences.
All the process of Global Brand Culture starts from the infancy, kids 3 years old
watching cartoons are already impact with TV commercials that going to influence
parents decisions. Children start to recognize products and brands and when they
are with theirs parents in the high street, they know exactly what they want about
toys, clothes, food and so on. Later when they are teenagers they build their
personality according to behaviour patterns created in theirs schools and groups
that they join. Teenagers tend to follow brands than operate differently to the
common ones. In this stage of their lives they show a rejection towards is already
established; they think different to their parents and need to look different to
them. Consumers no longer seek just functional benefits from products and
services, they seek meanings that help them construct and maintain their identities
(Elliot and Wattanasuwan, 1998 cited in Maclaran, 2010 p. 77).
Brands understand the customers profile of their target; generally when they
launch a particular campaign. Fox example Brands have to identify what others
brands share the same values and are complementary to their customers style life;
for this purpose perform joint ventures like concerts, exhibitions or sponsors any
kind of event where they know their target is evolved.

Advantages and disadvantages of being Global in Multiples Markets, according to

Hollensen (2008, p.316)
ADVANTAGES DISADVANTAGES
Maximum marketing efficiency Assumes market homogeneity

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Reduction of advertising costs Possibility of negative connotation
Elimination of brand confusion Requires quality and quantity
Good for prestigious product consistency.

According with the previous table there some advantages and disadvantages whrn
a company decided get a global brand strategy.

2.3.2. BRAND EXPERIENCE

This is interesting point because here it is possible find why customers generate
feelings of loyalty towards their brands. If is determined what factors increase
these feelings companies are in the right way to focus and get them.
Brand Experience talk about the quality of the relationship between customers and
the brand. Sometimes people use a brand because is the only option that they have
at any particular time, but not because they really want to used. Virgin group has
identifying this hole in the market. Customers who are not satisfy with the current
brands and looking forward for another option that care of them. David (2010)
describes Brand Experience concerted effort to surround customers with a
variety of touchpoints that enhance and improve their enjoyment of the brand.
Brands as a Virgin must built diverse channels of communication, where they are
be able to share information, give their opinion and finally but not less important
complain; because all this information is a valuable feedback that must be used to
reinvent the product and service if it is necessary. The Virgin Brand going ahead in
this scenario with high rate of participation of customers in social networks like
Facebook. Also Davis (2010) clarifies that every part of the company and its
value-chain relationships that can affect the customers perception of the brand
either positively or negatively. Basically that was the key-success of Virgin Atlantic
in the eighties, when people in UK just had one visible option: British Airways,
Virgin Atlantic born and grow up quickly because they understood what the

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customers needs were and satisfied them. Better conform in business class with
individual screen TV, extra leg room.

2.3.3. BUILDING BRAND STRATEGY

Richard Branson has taken an important role in this subject; he practically

transfers all his values, passion and commitment to build a Virgin Brand with
global influence. Rajagopal (2007, p. 124) confirm that The secret to successful
branding is to influence the way in which people perceive the company or product,
and brands can affect the minds of customers by appealing to those four mind
functions, or combination of them. It depends of the sort of product or service or
the company philosophy added with the campaign or the brand positioning that it
developed in the market. In the first instance brands appeal to the rational part of a
person, to the elements of logic and good sense; for example when is clear that the
product going to satisfy completely the needs that the consumers has. Virgin has
been market as a company that provides high standards in the service with add
value and value for money like Virgin Atlantic which customers in economic class
received extra plus benefits that in other airline hardly they can get it.
The second mind function refers to the senses of smell, sight, taste and sound; here
there is also an important factor. Virgin always has been striking, not just because
the colour brand, but the image that projects as a vibrant, innovative, youthful,
funny and soon. All this information is perceived by the consumers through the
diver media channels. An example of that is the ultimate advertising campaign of
Virgin Trains called DONT GO ZOMBIE which billboards in Tube stations related
how some people are stuck in the motorway with their vehicles because there is
traffic jump while others at the same time travel comfortably using Virgin Trains;
using the cartoon as a way to express the message. Notably this billboard does not
pass unnoticed. Virgin always stops the pedestrian with a clear signal: Here we

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are with this product or service and Virgin will help you when you need to be
served.
The third factor is the emotion part that affect the peoples feelings like warmth,
affection and belonging. Generally

The last one is the phenomenon of intuition, people feel comfortable buying certain
brands because they is being identify as extension of themselves. Personality,
lifestyle, aspirations and behaviour (virgin phone in India)

2.4. PERCEPTION ON CONSUMER BUYING BEHAVIOUR:

During the last century psychology has done important contributions to the
Marketing and at the same time specifically to Consumer Buying Behaviour. Once
you start to study how an individual behave it is very impressive find out how
there are multiples factors that influence the decision making in all aspects of the
involved when individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires. Companies have had
to change the way in the company develop products and services. Initially
companies had as objective sell the product and get profits does not matter if the
customer was totally satisfy or not; but nowadays global competency does more
difficult keep the customers loyalty.
Perception is a human beings faculty to feel stimulus and react to them. People
receive thousands of stimuli every day independently the place where they are. At
home consumers are subject of the same products or service that they bought
before, through the products packing again and again, it send images to the
consumers mind remind us its existence. With the mass media like radio, TV,
newspapers, mail, internet are diverse ways to get the consumers attention and
fight each other to conquer a safe place in the customers mind. The same process
happen in the high street, workplace in general is not possible escape from

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advertising. (Evans et al, 2009, p.64) write that customers perceive of their
environment using Sensory Systems best known as the five senses: Vision, sound,
Touch, Taste and Smell. Every single of them provided a series of messages with
information that going to be processed, analyzing and finally produce an answer to
that particular stimulus. In detail through the 5 senses perceiving:

Vision: colour, design, shapes, style.

Sound: music sound track, fast music in store, noise, songs, laughs, crying.
Touch: soft, hard, texture, in high relief.
Taste: Sweet, bitter, salty.
Smell: Aroma (synthetic or real), perfume, fresh, rotten, smelly, pleasant,
unpleasant.

All the senses provide unilaterally or in conjunction information from out there,
but is missing another factor and it is that effect the personality. Obviously the
stimulus come from the same five senses but are mixed to effect the human being
as a whole and this point the Brand play an important role in the daily life. Now is
necessary analyse how the human being make sense of sensory inputs through a
typology of conventions for perceptual organization: The first one is how a brands
logo or pack design is presented, it varies the meaning according the font, style,
size, shape or position people going to perceive it in different way. It is very
important to understand this concept because sometimes the brans logo
represents an opposite product category different that really is. The second one is
similarity: many times is perceived messages that are interpreted according to
previous experiences, as for example the classical picture where see two faces a
young beautiful female face, but at the same time it reflects an old woman; which
one is the first one to be seen depends to the primacy effect, it means according to
every persons perception. The convention three is about expectations. Human
being record large amounts of information every day about the world around him,

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so it is associated with future experiences, where it foresee what is going to receive
even without have it; but when there is not mach, recognize that something is
wrong and react to them generating a rejection. A classical example about this is
the food colours, if it this were presented in other way even it could produce
illness. The next one is Figure-ground Relationship is the fourth convention it
makes reference when there are two different view, just one at the time could be
see it as figure and the other one as a ground and vice versa. In advertising is very
popular this idea to show two o more messages at the same time; mainly because
looks attractive to the customer why the brand wants to show another face or
transmit another idea, sometimes opposite to the first message.
The fifth convention is about the law of closure when in the customers minds is
place visual illusions or extending lines; for example in fashion, designers use
pinstripe suits to produce a slimming effect and users appear taller and thinner.
The sixth one factor in perception is the law of continuity is when the image in a
billboard tends to create in your mind the next scene. In advertising all the
elements involved in the campaign are important and have a significant meaning is
thats why it is called the seventh convention: the whole is greater that the sum of
the parts. Finally Colour is the octave influence perception; the main use of the
colour is attracting attention. Usually the colour is chosen according to the
meaning that colour has in determined country or region, but it is necessary be
cautious when a brand wants to introduce the same brand to another culture,
because sometimes the meaning could be completely opposite and bring a disaster
to the company. In the case of Virgin Group, the corporate colour is Red, just with
some exceptions Virgin use another colour how is the case of Virgin Galactic.
Evants et al (2009, p. 73) declare that Virgin has used the red colour to send a
clear signal to consumers that it is an active, stimulating and energetic brand. The
meaning of the colour must be research in each region do not make a mistake; for
example in the USA colour perceptions for Red are: exciting, hot, passionate, and
strong. Alternatively red colour also means physical courage, strength, warmth,

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energy, basic survival, fight or flight, stimulation, masculinity, excitement in a
positive way. However in a negative way means defiance, aggression, visual
impact, strain.

SYMBOLISM IN PERCEPTUAL INTERPRETATION

Another important subject in this research is the study of Semiotic, the meaning of
symbols and signs. There are three basic elements the object that is the product
or brand itself, the sign that is the message and the meaning to the recipient which
is how the consumer interprets the message. When the Virgin brand was created
the founders had a meaning for that: Virgin meant that they were virgin in other
words without experience o previous knowledge about the industry that they
wanted venture; however overtime its main founder Sir Richard Branson instilled
his character, passion and business view to the brand.

REPEAT PURCHASING BEHAVIOUR

This is one of the most important subjects in my research how a company or Global
Brand makes that the customers have a repeat purchasing behaviour. In the last 50
years marketing research have elaborated models to find out why and how
consumers tend to repeat a purchase with a particular brand after of the first time
and what is the motivation to buy the first time when a brand new is introduced.
Evans et al (2009 p.370) argues that if the purchasing of the same product or
service is reasonably rewarding it become repetitive. Companies have to research
what are the factors that their consumers are looking for and satisfy that
expectations. Obviously is very difficult to satisfy all of them at the same time.
Firstly because sometimes is economically non-viable: consumers generally are
looking for low cost, but also mean low quality with some exceptions. Virgin Group
always has had a big challenge keep the loyalty of their consumers and translate

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this feeling to new brand products or services that they introduce every year
around the world.
In this camp of study there are different ways to measure that consumer buying
behaviour; one of them is probability theory (stochastic model) that forecast which
product will be purchased next, after whatever series of brands was previously
bought. Evans et al (2009, p. 370) stands that the stochastic model make
predictions about repeat purchasing using panel data. In this study households
are asked to go to shopping and when they come back at home, consumers scan
their products over a period of time. These studies proposed that there are four
paterns of loyalty:
Undivided loyalty: when a customer only buy one of the brands within a
product category. This is the most desirable situation if your brand is in it.
Divided loyalty: customers have different alternatives brands in a product
category on different purchasing occasions
Unstable loyalty: that occurs when a buyer switch from one brand that has
been undivided loyalty and in the same way follow another brand.
No loyalty: there is no any preference about a particular brand or group of
them; consumers does not pay attention which brand is purchasing. Usually
this kind of products are called generics which independently the brand
going to satisfy the same necessity and does not matter if there is variations
of price of quality. In supermarkets every week there are promotions like
buy one take two, in this situations, just the buyer make the decision
because there is a promotion not because the brand.

Also Elliot and Percy (2007 p. 4) affirm that The very basic consumer benefit a
brand provides is replicability of simple satisfaction of a functional need, the
solving of a problem.

2.5. INDIVIDUAL DECISION MAKING

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Every day is more complex make a decision about buying products and services,
paradoxically is because there is too much information to analyse and too many
options. Some decades ago when existed a needs, people went to the nearest shop
to choose among maximum two o three options. Nowadays is completely different
there is several numbers of brands out there; even in one product of the same
brand exists different level of quality or models, local or foreign brands, luxury or
regular ones. Also exists different ways to get the products or services like online,
catalogue, by phone or go physically to the source to see, touch and appreciate
directly the products. In consequence the current customer face a situation named
Consumer hyperchoice that Solomon (2009, p. 350) describes like a condition
where the large number of available option forces us to make repeated choices that
main drain psychological energy while decreasing our abilities to make smart
decisions. Normally there is a relationship among the kind of product or service,
its cost or importance for the consumer with the time spent to make the most
favourable purchase. Consumers do not going to spend the same time to buy a
Christmas present than the time necessary to buy a flat or car.
Traditionally people used to go to the bookshop to buy a book, but incredibly this
action has change completely; nowadays consumers buying massively books, CDs,
DVDs, online. WebPages like Amazon got the mayor market share, basically looks a
waste of time go the bookshop in high street instead to stay at home and buy it
online and received in 24 hours at the same price or sometimes less with just one
click. For this reason is very important recognize, analyze the consumer decision
making process to identify where a global brand play a fundamental role in the
consumers mind and finally make that the customers get a tendency towards a
determined global brand instead of other. Virgin Group has done an extensive
process during 40 years where step by step has incorporated their brand in the
British consumers minds and positioned with success. The stages of this process
are:
Problem Recognition

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 Information Search
Evaluation of Alternatives
Product Choice
Outcomes
Briefly is described at what extend every step. Problem Recognition consists when
a desire is experienced by a person, who becomes dissatisfied for the absence of it.
Therefore the consumer faces opportunity recognition when she is exposed to
different or better-quality products. Information Search is about get enough
information to resolve the problem of the first stage. Daily arrives to the homes
mailbox loads of information offering products and services; if is being switch on
the TV, computer online or the radio are commercials trying to convince
consumers to be the first choice in the next purchase. Also in the high street people
is flooded with thousands of advertising messages with big billboards, posters in
the bus stop, tube or train station, practically everywhere

2.5.1. CONSUMER BRAND CHOICE

Everybody as a customer is involved in three main of consequences linked with the
customers behaviour like the functional benefits when is purchasing or consuming
a product or service. Secondly there is an indirect and symbolic consequence like
social status and self-esteem, which are perceived for other people and function as
feedback to the consumer as how well he or she is performing as a consumer.
Finally the cost to the consumer in monetary and non-monetary form is the third
consequence. (Foxall et al 2007). All the products and services contain elements of
utilitarian, informational and an aversive consequence. It is easy to understand if
apply the theory to an example: when is buying a car, the utilitarian consequence is
the function that the car offers, transportation of the customer from the point A to
B in the best conditions. The second consequence is related with the brand, it is not
the same buying a BMW o Mercedes carmaker that buying a Fiat, because the
impact of the customers image is different: BMW reflects exclusivity and

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prestigious to the owner. The third consequence makes reference to the among of
resources spent to get the article money and time mainly. Turn to consumer brand
choice, customers according with various studies practice multi-brand purchasing.
It is a small group of three or four brand per category or product choosing
randomly. For example a research about the consumption of breakfast cereal
(Foxall et all (2007) cited Ehrenberg & Goodhardt, 1977) found that consumers
bought four kind of cereal in one year and only the 10% incurred on brand loyalty.

2.5.2. BRAND LOYALTY

Brand Loyalty is the wished aim of any brand, that its consumers prefer a
particular brand over multiple options in the market. This concept represent
many years of hard work of any company. Firms spend thousand of millions of
dollars to know how their customers going to develop a brand loyalty and dont be
seduce by their competitors. Brand loyalty happens when customers make a
conscious evaluation that a product or service satisfies their needs to a greater
extent than others brands and make a decision to get the same brand in the future
for that reason. Hoyer and MacInnis (2010).

2.6. SUMMARY

In the literature review chapter were explain all the concepts, theories and
strategies used in the business environment to run a Global brand, understanding
from the basic meaning until the interaction between such a more complex
variables like customer buying behaviour that include the human being, behaviour
and social factors like culture that is changing due to issues in big scale like
globalisation. This theoretical framework gives the base to design the methodology
research and in consequence find the information that is necessary to resolve the
research questions and objectives.

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Page 32 of 74
 CHAPTER THREE: RESEARCH METHODOLOGY

3.1 .INTRODUCTION

In the earlier chapters have been tried, firstly the background of the study, the
aims and objectives related to a Global Brand and the impact of it in the consumer
buying behaviour. Then in the second chapter the document talked about the
literature review related to the topic; meaning and characteristics of global brands
and the factors inherent with perception on consumer buying behaviour. In this
chapter is described an overview of the main research paradigms, research
approaches and research strategies. Therefore the research must focus one of
them in making an area of study researchable. Also is mentioned data collection
methods used in the research.

3.2. RESEARCH PARADIGMS

Research paradigm refers to a set of beliefs and attitudes, as a vision of world

shared by a group of scientists that involves a determined methodology. Also
Saunders et al (2009 p. 118) refers paradigm a way of examining social
phenomena from which particular understandings of these phenomena can be
gained and explanations attempted. Basically there are two main ways to adopt
this research Positivism or Interpretivism:
Positivism is also called quantitative paradigm, empirical-analytic rationalist
paradigm; Positivism is a philosophical school that advocates certain assumptions
about the world and the way to understand it. It contemplates the following
principles: the natural world has its own existence, regardless of who studies. It is
governed by laws that explain, predict and control phenomena of the natural
world. The object that is obtained is considered objective and factual, is based on
experience and is valid for all times and places, regardless of who finds it. Also use
the path as hypothetical-deductive logic valid methodological for all sciences.

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Interpretivism Paradigm also called qualitative paradigm, phenomenology,
naturalistic, humanistic and ethnographic. It focuses on the study of the meanings
of human actions and social life. This paradigm attempts to replace scientific
notions of explanation, prediction and control of the positivism paradigm by the
notions of understanding, meaning and action. This paradigm focus on the
description and understanding of what is unique and particular subject rather than
as generalized. Also identify the meaning of the factors involved and study their
beliefs, intentions or motivations that can not be observable directly.

As a result that the previous explanation about the Positivism and Interpretivism
Paradigm, the current study adopted the Interpretivism paradigm because it
involved people is not exact; it is subject to the meaning of human behaviours and
organizational culture of companies. This study is not positivism because there are
not general laws that can be applied to all the cases.

3.3. RESEARCH APPROACH

Research approach stands two basic ways to carry the research. Could be
Deductive or Inductive. In the first case the deductive approach the research
develop a theory and hypothesis a propose a research strategy to test the
hypothesis. In the second case the Inductive approach, the researcher collects
information and build up theory as a result of the data analysis. (Saunders, et al.
2009).

Gill and Johnson (1997, p. 28) stands that a deductive research method entails the
development of a conceptual and theoretical structure prior to its testing through
empirical observation. In fact it refers that the research starts with abstract
conceptualization and then pass on to testing all the way through the application of
hypothesis and in this way to generate new data or studies. The process of

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deduction has the followings steps: Concepts, Rules, Operationalization,
Instructions, Testing by corroboration and Corroboration problematic. (Gill and
Johnson. 1997)

Concepts: The researcher has to choose the most important elements of the theory
or the research; it links two or more concepts in a casual chain; but these concepts
are not observable at this point, in consequence have to be operationalized to be
translated into observables or indicators.
Rules: it is about how the rules must lay down for making observations and
determining when an occurrence of the concept has empirically happened.
Operationalization: At this point there is a clear definition of what it is we are
going to observe. For that reason is necessary creating indicators, or measures that
are linked standardizing the recording of the results of any observation. The
Operationalization enables the creation of clear and specific instructions about
what and how to observe.
Instructions: it is about the control of probable bias through replication by others
has thus led to attempts to create standardized procedures for undertaking
observation that can be followed exactly by those other researchers.
Testing by corroboration: Within the deductive process, as soon the theory is
tested and corroborated is assumed to be established as a valid explanation.
Corroboration problematic: It refers to something called Humes problem of
induction. This situation arises because the testing of a theory inevitably involves
a finite number of observations.

For the purpose of this study is adopted the inductive approach because basically
is associated with the Interpretivism Paradigm chose previously. In this variant
emphasises in gaining and understanding of the meanings of human behaviour
attach to actions. Another characteristic is the collection of qualitative data and the
research is part of the research process.

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3.4. RESEARCH STRATEGIES

With the aim of identify the right research strategy is necessary be guided by the
previous information from the chapter one, for example the research question and
objectives, the level of existing information, the amount of time and the
philosophical underpinnings that the researcher has. Basically there are two basic
ways to leader the current research by survey and case study.
The survey strategy is normally used with the deductive approach. This technique
allows the collection of a large amount of data; at the same time collect
quantitative data which you can analyse quantitatively using descriptive and
inferential statistics. With this information is possible suggest possible reasons for
particular relationships between variables and to produce models of these
relationships. The survey generates findings that are representative of the whole
population at a less cost that collecting the data for the whole population.
(Saunders et al. 2009).

Case study is the other important research strategy, it involves an empirical

investigation of a particular contemporary phenomenon inside its natural context
using multiples sources of evidence. The case study strategy is a good way to
produce answers to the question why?, What?, what? and How? questions; for
that is conventionally used in explanatory and exploratory research. Yin (2003,
p.13) affirm that A case study is an empirical inquiry that investigates a
contemporary phenomenon within its real-life context, especially when the
boundaries between phenomenon and context are not clearly evident. Generally
the data collection used in this strategy includes interviews, observation, and
documentary analysis. Usually the case study strategy use triangulate multiples
sources of data, for example qualitative data collected using semi-structured group
interviews and the same time use quantitative data collected through a
questionnaire. (Saunders et al. (2009) cited Yin, (2003) refers four case study
strategies explain in two dimensions:

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 Single case versus multiple case.
Holistic case versus embedded case.

A single case occurs when it represents a critical or unique case. This kind of case
gives the opportunity to observe and analyse a phenomenon that has not been
studied before. For the purpose of this research Virgin Group has been selected as
a single case, because the study is talking a Virgin brand as a whole, one single
company and its brand. There are some articles that talk about Virgin as a classic
example of Extension Brand but not about Virgin as a Global Brand and the
relationship with the perception on Consumer Buying Behaviour.
Multiple Cases is also used as research strategy, but differ of the previous one in
the researcher is using more than two cases to understand the subject, is
interesting because is easy determined what factors are repetitive in all the cases
and in that way to generalise from these findings. Virgin Group and its Global
Brand really is unique in all its elements because contains a management strategy
singular and it is present in many countries. Because its complexity is just fair
enough study only this company.
Holistic Case Study is when is studied one organization as a whole that is the case
of Virgin group.
Embedded Case Study: happens when the researcher wishes to examine not just
one subject, but a number of departments or work groups within the organization.
This is not the case of Virgin Group, because the study takes just one element: the
Global Brand of Virgin Group.

To summarize the Research strategy for Virgin Group is a Single Case Study with
Holistic focus.

3.5 DATA COLLECTION METHODS

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Before going to analyse what are the methods used in this research, is necessary
describe how was the Sampling techniques done. Firstly sample is a small
proportion of the population that has been analyze and contents cases or elements
that poses the researchs characteristics. It is necessary doing like this because is
impossible collect information from the entire population, because the research
has limitations of time, money and access and urge results quickly. There are two
basic types of sampling techniques:
Probability or representative sampling
Non-probability or judgemental sampling.

Probability sampling occurs when there is a chance, or probability, of each element

being selected from the whole population and in that case generally is equal all the
time. It means that it is possible to give an answer to the research questions
through estimation statistically of the characteristics of the population from the
sample. Finally this strategy is usual in experimental research and survey that are
not our situation.
Non-probability sampling refers when the probability of each element being
elected from the whole population is not known and it is not viable to answer
research questions or to deal with objectives that require statistical conjectures
about the characteristics of the population. However is still able to generalize from
non-probability samples about the population, but not on statistical basis. For
purposes of this research is considered non-probability sampling the most
suitable. There are different sample type is this technique to choose from: Quota,
Purposive, Snowball, Self-selection and Convenience.

Briefly Quota Sampling is a stratified sample in which selection of cases within

strata is entirely non-random affirms Saunders et al. (2009) cited Barnet, (1991);
has a advantages like is less costly and can be set up very quickly.

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Purposive or Judgemental Sampling is usually used in the case study strategy that
is the case of this research, basically consists on give to the researcher judgement
to select cases that suit best to the research question(s) and meet the researchs
objectives; there are five types of Purposive Sampling :Extreme case or deviant
sampling, Heterogeneous or maximum variation sampling, Homogeneous
Sampling, Critical case sampling and Typical case sampling.
Snowball sampling is used when the population is very difficult to identify. At the
beginning is complicated make the initial contact, after that, these case refers
others members who has the same condition or characteristics, resulting in a
homogeneous sample.
Self selection sampling occurs when the individuals in advance know the research
desire to take part in the research and is voluntary. Therefore is advertising the
research through media or asking to them directly. After that is collected the data
from those who respond. For the purpose of this research was posted in
appropriate internet newsgroups and discussion group, where people know about
the brand Virgin or have experience products or services of this firm at least once.
This system is almost without cost, however if there were resources would be
advertising in magazines or newspapers that the population are likely to read.
Convenience sampling or haphazard sampling involves obtain an easy sample but
not organized well, it is prone to bias and influences that are beyond the
researchers control.

3.5.1. WEB SITES TO COLLECT DATA FROM INDIVIDUALS

In this research was used Internet as space to development the study, not just to
collect the data, but to select the sample. Virgin Group is nowadays pioneering in
using social websites to keep in touch with their customers, announce news about
promotions, new services and the most important is a way where the customers
are be able to express freely their feelings about the product or service. Facebook

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was the main source of information to identify customers who knows the brand
and have experience their products and services. At the moment there almost one
Facebook page for the most important and relevant business of Virgin Group like
Virgin Atlantic, Virgin Mobile, Virgin Media, Virgin Active and so on. The
questionnaire was place as a link in these social websites using the software of
Surveymonkey.com: it is a specialized website which development a software to
execute research through the web. People who frequent these places were asked to
fill in the questionnaire voluntarily obtained a number of 20 questionnaires.
(Bryman and Bell 2007).

3.6. LIMITATIONS OF RESEARCH

This study consists in evaluate the relationship between Global brand perception
and consumer buying behaviour. During the analysis mainly in the literature
review are named multiples global brands, but this research focus in Virgin Group
as a whole, sometimes are referenced specific companies of Virgin Group as
examples of the theme. The study is based mainly in UK customers, however
because the collection data is made in internet through the social websites some
people from others countries could be involved in this study.

3.7. ETHICAL OR PROFESSIONAL CONSIDERATIONS

Particularly social researches are sensible about ethical behaviour. Individuals are
in permanent relationship each other and to the world. Walliman (2009) highlight
that researchers must be aware of necessary ethical standards which should be
observed to avoid any harm which might be caused by carrying out or publishing
the results of the research project. Any research in general speaking is not
objective if is considered that the values of the researcher influence the study. In
this research there were ethical guidelines that were informed to all the people
implicated. Silverman (2001) affirm that participants involved must to be notified

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of the purpose of the evaluation and have consented to participate otherwise that
information is not going to be used.
To know habits or consumer behaviours can not be vulnerable of lifes privacy. In
general the research must accomplish some principles like: Voluntary
Participation which means if one person does want to help in this research has the
free will to do that. Another aspect is Confidentiality which means that the
information is not going to be available to people different to the research.
Anonymity is very important principle, because the participant have the right to
stay anonymous during the process; if the research is planned in various steps is
quite difficult to accomplish this principle when is necessary keep the same people
and must be call it again for new process.

3.8. SUMMARY

In this chapter that just finish was possible identify the methodology used to study
the topic of this research. Also were exposing the limitations of the research and at
the same time the ethical and professional considerations. The next chapter is
designed to explore the data collected with its respective analysis and
classification into the main factor that are involved in the research topic.

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 CHAPTER FOUR: ANALYSIS AND FINDINGS

4.1. INTRODUCTION

In the previous chapters this research has adopted a rigorous study about the link
between a Global Brand and Perception on consumer buying behaviour. In the first
chapter raises the aims, objectives, and questions that going to be resolve in the
text. In the second chapter through the literature review were analysed important
concepts, theories and the diverse links among the themes in this research. Then in
the chapter research methodology were identify the necessary tools to aboard the
research. Finally in this chapter is described the findings with the respective
analysis. According with the study that is research approach inductive and the
research paradigm is Interpretivism and in consequence was obtained qualitative
data through questionnaire was necessary used the Thematic analysis as a vehicle
to interpret the information from the study.

4.2. QUALITATIVE ANALYSIS PROCESSES

In this study was recollected qualitative data that has three main characteristics:
express meanings through words, the collection of results in non-standardised
data requiring classification into categories, and is necessary use conceptualisation
to conduct the analysis. The other hand the qualitative analysis could be done into
ways Deductive or Inductive approach. The last one refers when the research
going from the particular elements to the general idea or theory that is the case of
this research. The inductive approach starts to collect data and then explore them
to see which themes or issues to follow up and concentrate on (Saunders et all
2009). Experts in this subject argue that this kind of approach is quite hard for
beginners and also experiment researchers are be able to get satisfactory results.
Mainly the reason is because this sort of study starts without a clear theoretical
framework, instead is identified relationships between the information recollected

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and develop questions to test these, and finally because the conclusion or general
idea come out from the process of recollection of information and analysis.
General speaking there is no a standardised method for analysing qualitative data;
however is possible to group data into three main types of processes:
Summarising or condensation of meanings consists to identify relationships
between themes that later the researcher can return to establish their validity.
Categorising data basically consists in developing categories than later going to be
attached to meaningful series of data. Categories maybe derived from the
information collected or from the existing theory and the literature review.
Recognising relationship and developing categories is composed by matrix where
is placing the information within its cells with key themes and patterns or
relationships provided by the data.
Structuring data using narrative is related as an account of an experience that is
told in a sequenced way, indicating a flow of related events that, taken together,
are significant for the narrator and which convey meaning to the researcher.
(Saunders et al, 2009).

4.3. ANALYTICAL PROCEDURES TO ANALYSE QUALITATIVE DATA

In a few words is described every single method used to analyse qualitative

information: Data display and analysis, Template analysis, Grounded theory,
Discourse analysis and Narrative analysis.
Grounded Theory refers to when the researcher who use this strategy essentially
using an inductive approach to research based on a holistic view, often generated
in organizational studies where is not effective to producing or proving general
theories, but instead offers explanations which are relevant to a particular set of
circumstances and situations (Crowther and Lancaster 2009). However this kind of

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approach is usually apply in data collection observational and action research that
in not the case of this study.
Discourse Analysis consists in transcript an interview or a document as a complete
narrative and seeks to analyse that narrative by considering its contents.
(Crowther and Lancaster 2009, p. 185). In this focus there is a fact that the more
an issue is talked about. And the greater the detail, the more significant it is. In
consequence key concepts are identified and sentences or phrases are coded
according to their perceived meaning. It is much more subject to interpretation
which this form of analysis produce multiples meanings that is crucial to the value
of the findings.

4.4. THE DATA ANALYSIS METHOD: THEMATIC ANALYSIS

First at all is primordial to know at what extend the type of information collected,
Qualitative data that refers to all non-numeric data that have not been quantified
and can be a product of all research strategies (Saunders et al. 2009). Generally it
can be a variety from a small number of options as responses to open ended
questions. As a result when the qualitative data is analysed it allows developing
theory from the data obtained. There are four kind of strategies to analyze data or
information in a research: Thematic analysis, Content analysis, Grounded theory
and Factor analysis. This study basically uses thematic analysis.

Thematic analysis is a process to be used with qualitative information. Thematic

analysis is a process for encoding qualitative information and it requires an explicit
code (Boyatzis 1998). Also Holloway (1997) affirms Thematic analysis is an
analysis where the research identifies themes and patterns in interviews through
listening to tapes and reading transcripts. It involves searching the data for related
categories with similar meaning. The data could be a list of themes, indicators,
and qualifications that are casually related. But what is a theme? It is a pattern

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found in the data that at the minimum explains and codifies possible observations
or at the maximum clarifies aspects of the phenomenon. Holloway(1997) added
that Theme is a cluster of linked categories conveying similar meanings and
forming a unit. A Theme could be identified in two ways: directly observable in
the information or underlying the phenomenon. Once the compilation or
integration of a number of codes in a study is done it is called a Codebook. It is
necessary to extract a good thematic code that captures the qualitative richness of
the phenomenon which contains five elements: a label or name, a definition of
what the theme concerns, indicators on how a theme occurs, a description of any
qualifications or exclusions to the identification of the theme, and finally examples,
both positive and negative, to reduce possible confusion when looking for the
theme.

4.4.1. CATEGORIZING THE THEMES

Once the research has collected all the information through surveys with open
questions that provided qualitative data it is used the thematic analysis to extract
the result of this study. Basically this strategy runs in three stages: sampling and
designing issues, second developing themes and a code and finally validating and
using the code.

The composition of the thematic analysis is related in the table No.1

Major theme Perceived benefits Key issues
Brand Virgin Brand has already a meaning for Admired brand.
Awareness the customers: Premier Way of Life Virgin everywhere
brand in the world. Quality
Modern quality
product.
Brand Loyalty Virgin companies are focused on the Customer Service.

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 customer not in profits. Value.
Extra benefits.
Adverstisement Richard Branson is a central character in Flying Club with
its publicity. Media has been more than Virgin Atlantic.
fair to the Virgin Brand. Richard Branson
Publicity is essential to get brand on the himself.
map. Attractive adverts.
Virgin story has been a phenomenon.
National Image The best example of British Patriotic feeling.
Country of entrepreneurship. Support for Local
Origin. Branson: The Global Brand Builder Business.
8 billions dollar companies.
Develop Centre of Business ideas.
Brand Venture Capital
Global There is recognition by the customers UK, France, USA,
Coverage, and about the coverage where the Virgin Australia.
Recognition Brand is operating. Quality service.
Good Marketing
Richard Branson

Virgin Brand through almost 40 years of trajectory has placed a stamp in the
British market. Today it is recognized local and worldwide as a unique case of
successful extension brand. Anyway Virgin Group is the proof that The Virgin
Brand wad made to be elastic brand made to be applied to almost everything. As
any recognised brand, Virgin has made big mistakes such as propose the war to
Coca-cola Company, something that was catalogued like a crazy action, but
however Richard Branson Virgins founder now laugh about that, because as he
wrote in his book Business Stripped Bare We lost the battle but it is still
producing Virgin Cola in a much more targeted market, for example in Bangladesh

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is the number-one cola drink. All this stories about The Virgin brand has created a
singular Brand Awareness that helps to keep the image of the brand always in the
consumers mind. Virgin Atlantic is maybe the most admirable product of Virgin
because has been pioneer in flight service. For example on June of this year Virgin
Atlantic announced the launch of the first long-haul airline to roll-out Infligth
Entertainment system on brand new A 330. Steve Ridgway, Chief Executive of
Virgin Atlantic, commented at its Facebook page:

Virgin Atlantic has a well-deserved reputation for leading the way in in-
flight entertainment and technology we were the first airline to offer
individual seat-back TVs for all passengers almost twenty years ago- and I
have no doubt this system will again set new standards that our
competitors will seek to follow.

Is quite impressive the level of satisfaction that customers of Virgin Atlantic for
example express. Virgin is recognized now like the pioneering company in use
social websites like Facebook to keep in touch with its customers. Everyday
hundreds of satisfied customers express their feelings about the brand, customer
service and any other subject. It is necessary to note the sample taken for the
recollection of data was made through Facebook mainly where Virgin customers
answered the survey with full knowledge that they are saying. In all of this we can
easily see the Customer Loyalty as one of the most important factors to keep
consuming The Virgin Brand. Some comments that reflect that are:

I always try to use Virgin Atlantic to fly, feel safer with 4 engines!! Hope they
don't change to 2 for Orlando etc. The cabin crew are excellent and helped
when I could not eat the pasta meal they bought instead of the meal I ordered.
They baked me a jacket potato. I take my grand daughter now when I go, and
they were the first plane I flew on at age 43! to Orlando in 1995.

Customers with Virgin always expect an extra level of service. Virgin Atlantic is
recognized by their customers, because the customer experience, they are not
going to forget that kind of service. The Virgin Brand has always implied in their

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employees that charismatic way of deliver excellent service. That makes a
difference about a customer experience it refers. Through social networks like
Facebook and Twitter users tell these experiences that motivate others to try the
product o service branded by Virgin.

just had another great flight to UK on Virgin. Cabin crew were great as usual
and economy seats had seat AND leg room!

Virgin Atlantic is one of the most successful companies of Virgin Group, because
they development a series of changes of the regular service deliver for others. Most
of the companies around the world focus their business in get profits, The Virgin
Brand focus their business in satisfying needs and deliver significant high level of
customer service and in consequence it brings to the brand loyalty that will
represent get a niche of market and as a result will be profits. In general speaking
for Virgin Business profits is not an aim is a natural consequence.

We have flown to the Caribbean with Virgin 6 times and have always loved
the experience. When we go again we will go with Virgin. No other Airline is
as good. I think that Richard Branson and his family are great examples to us
all.

In the previous comment is easy to appreciate how customers associate the Virgin
brand company in this case Virgin Atlantic with its founder and current head
visible Richard Branson. In general Virgin has been associated with the figure of Sir
Richard Branson. Mainly in UK Richard Branson is recognized as the most admired
British entrepreneur with more that three hundred companies worldwide. This is
the key success element when The Virgin brand start a new business there is a
guarantee stamp when Branson is present generating trust among customers,
suppliers and the marketplace

Virgin is my favourite airline bar none. The service is impeccable; the entire
experience was truly impressive. It is so true about how the children idolize
the flight crew. I remember coming from Jamaica as a child and telling my
mother that I wanted to be a hostess. Still do, but I have no clue as to how to
get started.

Customer loyalty is visible when consumers declare as the previous comment

..Virgin is my favourite airline that kind of customers are the best advertising
that any company could has. Through this positive feeling they unconsciously
transmit and gentile advice to try Virgin Branded products and services.

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 Just wanted to say that we've flown Virgin from SFO to Heathrow more than
a dozen times, and the cabin crew have been uniformly great always nice,
smiling and helpful.

When customers experiment repeat purchasing behaviour, this means that they
were very satisfying with the previous purchases and make a decision to buy again.
In the comment the customer declares that have used Virgin ..a dozen times.. and
all along them have received an outstanding service. This experience positions
Virgin as a brand of permanent and constant quality.

In the questionnaire that was asked mainly to visitors of the Virgins social website
Facebook. Was found that more than 50% of them have known the brand for over
5 years and the rest of them know the brand at least two years. Mainly is important
consider the positioning of the brand. All of them knew what Virgin brand is about,
most of the surveyed had general knowledge about the business which Virgin
Brand is involved. It is important for a global brand to in a consumers mind even if
that is for a short period of time. The help of new technologies as internet and
international TV channels made this process faster and easier. Brands like Google
and Facebook achieved public recognition in a faster period and a wider
geographical proportion compared with brands that started business before the
digital age.

Virgin Group is the one of the leader companies in use of social websites to keep in
touch with their customers. There is a organization The Kaizo Advocacy Index
(KAI)which makes a bi-annual study of online reputations and recommendations
stated in its last issue Winter 2009 name Virgin Atlantic with the highest score
(45) in this study above other important brands like British Airways and EasyJet.

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Another important factor when a Global Brand has impact in the customers mind
is the brand image with the values, symbols and the country of origin. Virgin Brand
run parallel with the influence of its leader and founder Richard Branson. In the
research it was easy to identify that perception with the following comments:

Virgin/Richard Branson was one of the first 80s entrepreneurs and will
always be remember for this. This affects the way the brand is perceived.

In this comment this customer reflects Virgin at the same level of Richard Branson.
Sometimes this situation could be dangerous because if there is some critical
situations with Bransons life, it would be directly linked with the brand.

The owner is British and the brand I suppose started over in the UK with
different kind of markets mainly attracting the UK consumer.

Customers recognise that the business is British, usually is an important factor

because British people have a strong feeling to support local issues.

Virgin is well know British Brand, recognize worldwide, which has been able
to adapt to the other markets, fulfilling local customers needs. Even thought
is originally British, It recognize the diversity among the different countries
and the various requirements in each one. [sic]

In the last paragraph the customers perception of the Virgin brand is wide. He
knows that is a global brand because is present in many countries.

Well its (Virgin) British and we should be proud about our brands
(Virgin)is one of the UK brands with a recognized good will.
..first of all I think this company has a very good leader.

Customer loyalty consist in a strong feeling about the brand that in this case
contributes to help to make a decision in the next purchase. Customers know the
brand and

.(Virgin has) diversity of the products and services that are part of its
business umbrella.
..the owner is a excellent entrepreneur. Doesnt matter if he is English or not.
by the time it is becoming a strong trade mark and everyday we can see that
Virgin is extending over the world.

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Looking at the previous comments there is a strong and clear perception about
what represents the brand for them. Generally a brand represents a solution for a
need, but in the case of the Virgin Brand, it has transcended to more diverse
perceptions, it means it is not just a brand, it is a part of the recent business history
of Britain, show the calibre of British entrepreneurship, and how a single brand is
suitable and successful in different areas. The combination of such factors conform
loyalty towards the brand, there is an extra reason to buy this particular brand:
The public know than if they buy this brand, they are contributing to make this
phenomenon bigger. Hilton (2003, p.48) declares that Brands foster customer
loyalty, leading to more reliable company earnings and therefore higher and more
sustainable levels of employment and wealth creation.
Brand loyalty gives a web of positive feedbacks. Everyday people talk about their
experiences, unconsciously recommending or disapproving products or services
which give important influence in others peoples decision making.

People were also asked to identify up to three main characteristics that they like
Virgin Brand. The purpose of this question was to know the perception in the
customers mind, and what this represent to them, the Virgin Brand. The more
common characteristics were:
quality, customer service, very good reputation, price, well know
international brand, expertise, wide range of service, what you see is what you
get, modern quality product
Some comments from Virgin Atlantics customers who have high level of customer
loyalty:
We wont fly with any other airline. Sir Richard knows how to treat his
passengers. I was afraid to fly but because of help from his wonderful staff (a
special shout out to Pete!) I am no longer afraid to fly.His upper class is second
to none. TY Sir Richard!

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Some customers express a strong loyalty about the brands. In the survey it was
found one of them being emphatic that them will not use another airline in the case
of Virgin Atlantic. This position should be keep it and used in difficult times when
there are serious problems and customers could forgive and forget brands errors
thanks to customer loyalty.

A truly affluent and honest man who wears a genuine smile, humble and
approachable. He certainly has the qualities to attract customers .We all love
you Mr Branson. Long live your business and great health and longevity to
you. Cheers.
VIRGINN IS MY LIFE AMAZING. LOVE YOU ALL.

It is possible appreciate how the perception of the customers help to make

decisions. There are studies where through focus groups also there is the same
conclusions by the consumers. Global Brands are expensives, but the price is
reasonable when you think of the quality other said I Like [global] brands
because they usually offer more quality and better guarantees than others
products. Another comment was Global brands are very dynamic, always
upgrading themselves; finally other person added that global brands are more
exciting because they come up with new products all the time, whereas you know
what youll get with local ones. (Holt, et al. 2004). As consequence it is very
important factor if there is a Global Brand against a regular one. When a brand is
consolidated, is very difficult to destroy its image in spite of enormous efforts from
competitors. Invest to strengthen the brand always will be the best way to keep it
in the consumers mind; however it needs a mutual collaboration of all the
elements involved, price, quality, availability, innovation and so on, to create a
successful combination that determines that the consumer going to make a buying
decision a favour of a Global brand in particular.

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In the research it was possible to find that about half of the people in a sample of
twenty, they had inclination towards high quality, and recognised brand name as
the most important factors in choosing Virgin Brand products or services. A third
part of the sample were of the view that value, best performance, advertisement
and price were less relevant factors.

The Virgin brand certainly is recognised by their consumers as a company that

deliver products and services with high standards of quality and customer service,
which has a direct relationship with people expect from a global brand. A Global
brand is not just an international brand, it is the one that is capable of offering high
standards, which is capable of exceeding customers expectations. The Virgin
Group business has been criticised because some people do not believe that a
company that has too many different businesses is able to deliver a good product
or service. However Virgin operates with empowerment philosophy. Every single
business has plenty of autonomy to respond to eventual impasses into the
business. Each business do not have to wait long bureaucratic process to make a
decision when the customer is affected. On the contrary for example Virgin
Atlantic, Virgin Trains and Virgin Active run their business independently giving to
the customers soon solutions on the dairy bases.

4.5. SUMMARY

The global brand perception with consumer buying behaviour has an extensive
camp to explore. Certainly this chapter was fascinating for the quality of findings
found, was possible link diverse of aspects named through the whole document.,
how customers express their thoughts about the Virgin Brand. The customer
service and the big influence from its founder and leader Richard Branson makes
this Brand dissimilar to any other. In the next chapter and last one is described the

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conclusion of this work with the respective analysis of fulfilment of each objective,
recommendations and further research topics.

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 CHAPTER FIVE: CONCLUSION AND
RECOMMENDATIONS

5.1. INTRODUCTION

The previous chapter brought about the findings of the research done with Virgin
Brand perception and the link with consumer buying behaviour. The present
chapter pursue give clear outlines to the findings of chapter four integrating with
personal view and recommendations. Also this section reveals future research
subjects detached from the current research.

5.2. EVALUATIONS OF THE FINDINGS

The Virgin Brand is a unique case. Not just because is strange case of excessive
extension brand, but because its identity is particularly amazing. Kornberger
(2010) asserts that Virgin does not have an industry focus but a focus on
challenging the fat cats: built around Richard Branson the person, Virgin the
brand stands for quality and value for money in boring industries where it can
challenge the status quo and do things in a fun way.

In the research were found factors or elements that have direct or indirect
relationship between a Global Brand and customer buying behaviour. However the
consumer brand choice is not only limited to the influence of the brand itself, but
also all the resources that the company needs to keep in order to maintain contact
with its customers. The positioning of the brand comes after the product or service
is delivered, because this experience is positive, take force the brand in the
customers mind and definitely going to be crucial in the next buying decision.
Innovation is one of the vital points to keep Virgins customers with advantage

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over their rivals. Virgin has showed flexibility to offer new products and services
according with the markets needs and at the same time it has done the same
internationals markets.

The strength between a global brand and a local brand depends on which sector it
is being discussed. For example here in the UK there is a trajectory in products
with high technology component like electronic devices, TV, computers, Video
Games, mobile phone and soon. However Britons tends to support theirs local
brands instead of foreign brands at least that the recognition would be superior.
The author Mooij (2010) cited Schuiling, (2003) about a study of 12 product
categories in the food sector in the United Kingdom, Germany, France, and Italy
with the following results:
Among consumers the awareness level of local brands is significantly higher
than that of international brands: Generally in the food sector is true,
because there is mayor confidence for local brands, there is more access to
information and ways to complain is something is wrong about the product
or service. The Virgin brand has a enormous support by the local consumers
because represent a case of success entrepreneurship. However Virgin has
not been successful in the food sector, but strong in services.
The perception of quality is as high for local brands as it is for international
brands: each country manages its own quality standards. In UK generally
customers believe in their industries and in the controls that government
organizations make to guarantee satisfactory levels. In developing countries
there is a good perception of quality in products from developed countries.
The Virgin brand has been successful in markets like India, Australia,
Nigeria, because of that.
The image of trust is significantly stronger for local brands. The Virgin
brand meets also this concept in UK, however sometimes is distorted
because consumers see the extension brand as a problem.

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 Value is perceived higher for local brands: The Virgin brand has a solid
platform to grow, not just in local but international markets. It is perceived
as a serious group of companies that give good value for money and care
customer services.

Virgin Group being a Global brand is not an objective is a consequence of a

series of factors that make the brand a unique case to be follow by
consumers, sometimes without a valid reason, but it is in the mind and
hearts of the customers. The Virgin brand is already a icon that is part of the
British business history.

Companies worldwide are exposing to get good and bad feedback from customers,
suppliers and local government according with the performance in deliver the
product or service. Virgin has been characterized to be a brand with high level of
efficiency. Virgin Atlantic, Virgin Media and Virgin Active in the UK has the best
feedback among the markets individuals. Harries (2009) in his study focus his
perception of Virgin saying that:
Virgin Atlantic is not only top of the airline brands, but also has the
highest score across the sectors. The majority of online chatter is
related to the marketing campaign for Virgin Atlantics 25 th
anniversary. On Twitter, one fans writes Loving the current Virgin
Atlantic advert. It has the cheekiness than only the Branson empire
could get away with. Many bloggers embedded the clip websites thus
increasing its exposure.

At the same time the web has the two faces of a coin. Also when there are
problems, customers make their comments on internet and there is no limit to stop
that. Harries (2009) in the same study found some complains about Virgin in social
networks such as Facebook and Twitter.

There were very few negative comments towards Virgin Atlantic,

however, the brand did receive some criticism for firing 13 employees
who set up a Facebook group. That said, the minimal exposure this
received is testament to the fact that brands can put such issues into
context and overcome potential reputation damage.

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Virgin Atlantic opens the path to Virgin in the American market that later with
Virgin Mobile and Virgin America has made to USA another local market the Virgin
Group. Also in New Mexico USA is the operation base for Virgin Galactic, the first
project in the world to take people to the space. The Virgin Brand is not just a
Global brand is a Intergalactic Brand indeed. Hilton (2003, p.48) declares that:
Brands provide a reliable mechanism for consumer protection. When someone
buy any product of the Global Virgin brand knows that there is an empire behind
that guarantees quality, good customer service and fun.

5.3. LINKING THE EMPIRICAL DATA TO THE RESEARCH OBJECTIVES

The study had three main objectives that give a light to follow the research with
the findings was possible match that purposes with the information obtained.
To review marketing concepts and theoretical frameworks related to
consumer buying behaviour influencing the perception of a Global Brand.

To examine the influence of Global Brand perception on consumer buying

behaviour and

To make valid recommendations for further improvement in Global Brand

Management to the organization Virgin Group.

OBJECTIVE ONE: TO REVIEW MARKETING CONCEPTS AND THEORETICAL

FRAMEWORKS RELATED TO CONSUMER BUYING BEHAVIOUR INFLUENCING
THE PERCEPTION OF A GLOBAL BRAND.
During the study was possible to discover that the concept of Global brand
transcends beyond the marketing meaning. Nowadays a Global brand is a socio-
cultural phenomenon, which has an important influence of peoples lives. A global

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brand reflects the personality as to the extension of what we want to be, the
perception that people has from the world and even the mood that we have in a
particular day. The Virgin brand represents a way of life Branson (2008)
accentuates that My driving force, I realise now, was finding new ways to give
people a good time- ideally, in places where they were least expecting it. Like
airports.

The Richard Branson philosophy is to give an excellent customers experience,

lets give people some fun! It is the perception of Branson about the Global Brand.
These factors built a feeling of customer loyalty. Customers recognize that Virgin
give to them a bit more than the regular companies. In a flight with Virgin Atlantic
for example they know that the money spent is worth it. Customers also know that
the brand the brand has presence in multiples markets, and that means the success
of its operation in local business. The brand image gets bigger for the customers
when there are positives feedbacks through the media, or other customers.

OBJECTIVE TWO: TO EXAMINE THE INFLUENCE OF GLOBAL BRAND

PERCEPTION ON CONSUMER BUYING BEHAVIOUR.
It is believe that there is a influence between Global brand perception and
consumer buying behaviour. A study from published by the Harvard Business
Review led by (Holt et al 2004) found that there are three main characteristics that
consumers see in global brands: quality signal, global myth and social
responsibility. In the research it was possible confirm these findings, because
quality was the most prominent value when customers chose Virgin. The brand
Virgin is considered mainly in UK and USA as a phenomenon and is follow with a
rational success in markets like India with Virgin Mobile, Australia with Virgin
Blue, France with Virgin Megastore. For all of them Virgin is a style of live, The
Virgin Brand satisfy needs that others competitors dont want to do it. Virgin
Group has developed a marketing strategy that attacks a specific niche of market.

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That strategy identify values, manners, habits to bring about a new product or
service that other company does not have the flexibility to offer. Finally the social
responsibility as a third factor that represents the global brands nowadays is also
led by Virgin Group.
Virgin Unite is the answer to this factor: It is a charitable organization founded in
2004 with the objective to help the people that eventually needs. Recently with the
floods in Pakistan, Richard Branson took active part in this situation and led an
extensive campaign to raise funds to help this country. People immediately
respond to the call and was recognize with comments in the social website
Facebook. It is a philosophy for Richard Branson to develop business without
damage the environment. The Virgin Galactic is a project which plans to take
people in sub-orbital spaceflights; there is a guarantee that the aircraft does not
harm the environment with the use of clean technologies. Also Virgin Atlantic
started recently to use bio-fuel, the first commercial airline to be powered by a fuel
derived from a mixture of Brazilian babassu and coconuts. This confirm the serious
commitment of Sir Richard Branson and his company Virgin Group to be leader is
being a green company that motivates admiration by the consumers. BBC News
(2008) cited Richard Branson This pioneering flight will enable those of us are
serious about reducing our carbon emissions to go on developing the fuels of the
future. In conclusion The Virgin Brand is news everyday giving to the customers a
clear signal that is innovative, dynamic and always fresh positioning at the same
level of the top brands around the world. In consequence this entire atmosphere
makes a positive influence in the consumers mind that are motivates to acquire
products or services from Virgin Global Brand.

OBJECTIVE THREE: TO MAKE VALID RECOMMENDATIONS FOR FURTHER

IMPROVEMENT IN GLOBAL BRAND MANAGEMENT TO THE ORGANIZATION
VIRGIN GROUP.

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In the research showed that the Virgin brand no only has been successful it also
shoed failure suffered by the brand. The Virgin Group has been too risky in some
projects that has put in danger the prestigious of the whole corporation. One of the
cases was Virgin Cola. That situation has been considerate as suicide act, because is
crazy confront a companies of the size of Coca-Cola Company. The problem itself it
was not try to compete with this giant of the soft drinks industry, but the damage
to the image of the Corporate Brand. Unfortunately consumers think that is not
serious that a brand extension of Virgin becomes better than Coca-Cola, in a war
that even Pepsi has been in the position to take the leadership in this sector. The
Virgin brand needs to know its limit. That means that is necessary put a boundary
and concentrates in the successful business that already has. In a hypothetical
situation if the project Virgin Galactic would have a failure, that immediately will
stain permanently the image and good will of the brand mainly in similar sectors
like Virgin Atlantic and Virgin Trains. Richard Branson say that he guarantee that
every single business works properly because he works with the best workforce
available in the market, however people expect that a company be concentrate just
in one single aim. For example Nestle is a global brand recognized to produce food
with high quality, if Nestle despite of being famous decide to make cars would you
buy them? Probably the answer is no; because consumers need information and a
consolidated trajectory in the sector to trust them.
Another important factor is the relevant influence that has the founder Richard
Branson with the Brand and it could be a problem is too much dependable each
other. Some authors mention that Virgin is not a brand, because it depends
almost entirely on the publicity generated by Richard Branson Randall (2000). It
could be true or not but a Global brand must take independence from its founder
and take its own personality.

5.4. RECOMMENDATIONS

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The Virgin Brand has already travelled an impressive series of successful events,
however is not a bullet proof and if there are big mistakes that represent a
snowball for the rest of business. When in 1995 Virgin tried to confront Coca-Cola
with Virgin Cola, the battle put in ridiculous a Virgin and the image of Virgin Group
was misleading. Due to the vast coverage of products and services that The Virgin
Brand gives an umbrella support is necessary, be practical but methodical to keep
high reputation of the brand worldwide.

5.4.1. GLOBAL BRAND INSTITUTIONAL CAMPAIGN

Virgin Brand is already a phenomenon why not explode that adjective that people
refer to. The Virgin brand is becoming an Iconic brand because perform identity
myths: the aspirations expressed in these myths are imaginative, rather than
literal, expression of the audiences aspired identity explain Holt (2004).
Consumers use myth brand to create purpose in their lives and become symbolic
salves. At the moment hundreds of people dream be space tourist with Virgin
Galactic. The Global Brand Virgin brings hopes of came true a dream. That gives
another reason to live, to experience in the next few years something that stay in
the annual of the human history. The proposal is that Virgin Group launch am
Institutional Campaign which talk about the Virgin as a Global Brand, its values,
aims and objectives, its quality policies and the purpose of Virgin Group to invest
in adventure business; it will generates confidentiality and respect about a serious
brand that makes from multiples business in just one single Global Brand.

5.4.2. LIMITING UMBRELLA BRAND ESTRATEGY:

The Virgin brand is indeed one of the most successful cases of brand extension,
however always there is a limit. In the history of Virgin Group have been failures to
remember like Virgin Cola or Virgin in the food sector. Is time for Richard Branson
chief executive of Virgin Group to delimit and strengthen the sector where going to
focus in the next decade. Is very important that send to the market a valid signal of

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commitment to improve the product or service existed at the moment instead of
starts new business opportunities. The Virgin brand is elastic but has a limit. The
Virgin group has to take advantage that already know almost all the economic
sectors, so now they have to stop and focus in those which are more trained to
achieve success.

5.4.3. INHERIT RICHARD BRANSONS BRAND PERSONALITY TO THE VIRGIN BRAND

When you ask to someone about Virgin brand immediately is associated with Richard
Branson his founder; however it could bring about bad implications. During thirty years of
existence the Virgin Group from the fist company Virgin Records until Virgin Racing a
Formula One Team the charismatic presence of Richard Branson has been one of the most
successful factors to achieve success in the projects, however it is a threat. There are other
cases in the business camp, like Bill Gates with Microsoft, Steve Jobs with Apple
Computers, but anyway they have already a process of transition where have inherited
their brand personality to the companys brand before they for any reason they would be
missing from the management position of the company. With the current circumstances
some of the Virgin companies would be in danger if something happen to Richard Branson,
because some customers buy Virgin brand products or services, just for the image that
Branson release.

5.4.4. BLUE OCEAN STRATEGY APPLICATION TO VIRGIN BRAND STRATEGY

The Virgin Brand strategy always has been make a difference , be innovative, listen
the customers to satisfy needs tan has not been explored by others. Blue ocean
strategy represents that philosophy. Virgin Atlantic started that concept creating a
new service with long-haul flight and recently with virgin Galactic installing the
first ever space tourist. The global brand Virgin must be recognized as pioneer in
all the projects that the group undertakes. The use of the Blue Ocean Strategy

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creates a way to make the competition irrelevant by creating a leap in value for
both the company and its customers. The Virgin Group has created a family of
business that are complementary each other offering a super plus of advantages to
the customers that is not be able to be reached by any other competitor. The value
created increases the chances to survive in a competitive local and international
market. Virgins companies are versatile and that allow be flexible to adapt to the
new market needs.

5.5. CONCLUSION

The Virgin Brand has already a distinguish positioning as was showed by the
search and confirmed by other independent studies. The Virgin Brand is a well
know brand, but is necessary be supported by a high quality and dedicated
customer service pre and post service.

It was possible confirm with the research that Virgin Brand also meets the findings
of a study of Harvard Business Review (Holt et al 2004). There are three main
factors which consumers recognize a global brand must follow: quality signal,
global myth and social responsibility. Quality signal means that the global brand
keeps at all the times high standards of quality and it is reflected not just with the
quality of products itself, but the customer service during all the process. The
Virgin Brand always has been outstanding in this camp. As the founder Richard
Branson (2008) comments : The Virgin Brand is a guarantee that youll be treated
well, that youll get a high- quality product which wont dent your bank balance,
and youll get more fun out of your purchase than you expected whatever it is.

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5.6. FURTHER RESEARCH DIRECTION

In this research there were featured themes as consequence of the study that
would be very interesting in future researches. Questions like how the strategy of
extension brand has worked with Virgin Group and its influence in foreign
markets. The Virgin Brand is not just at the moment a global brand is also a unique
case of study that going against of multiples management theories because it has a
successful strategy of brand extension or umbrella brand. What is the limit of this
strategy is something that nobody knows even Richard Branson his founder,
because his curiosity and decision to take risks is also no predictable. Some
marketing writers call the Virgin brand, the elastic brand, because its unlimited
versatility, however this strategy brings about some problems that would be
interesting find out in a new research.

5.7. SUMMARY

With this chapter finish the research about the evaluation of a global brand
perception in consumer buying behaviour with Virgin Group as case study. The
chapter include general conclusions based in the research. Also show how the aims
and objectives of the study meet the findings. Finally it was made a proposal for
further research and some recommendations to Virgin Group Management.

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 APPENDIX 1

Please take a few moments to complete this questionnaire.

This questionnaire is designed to gather general information on Global Brand
Perception on Consumer Buying Behaviour.
This research is being conducted by a MBA student of London School of
Commerce.
There are 10 questions. All your responses will be strictly confidential.
If you require any further information or would like to comment on the survey
please contact me at e-mail: 0214jtjt0609@student.lsclondon.co.uk
This survey will take approximately 5 minutes to complete.
Thank you for your time and valuable input.

*
1. How long have you known the Virgin Brand?

How long have you known the Virgin Brand? 1 year or less

Over 2 years

Over 5 years

Over 10 years

Over 20 years
2. What countries or international markets do you know The Virgin Brand
operates?
What countries or international markets do you know The Virgin Brand
operates?
3. Do you think that The Virgin Brand has outstanding recognition in foreign
markets? And why?.
Do you think that The Virgin Brand has outstanding recognition in foreign
markets? And why?.

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4. Do you think that The Virgin Brand reflects the best of British entrepreneurship?
Why?
Do you think that The Virgin Brand reflects the best of British entrepreneurship?
Why?

*
5. How often do you use Virgin Brand Products or Services?

How often do you use Virgin Brand Products or Services? Once per week.

2 to 3 times per month.

Once per year

Twice per year

Never used

Other (please specify)

6. What is your overall satisfaction rating with Virgin Brand products/services?

What is your overall satisfaction rating with Virgin Brand products/services? Very Satisfied

Somewhat Satisfied

Neither Satisfied Nor Satisfied

Somewhat Dissatisfied

Very Dissatisfied.
7. Please list up to three things you like about the Virgin Brand:
Please list up to three things you
like about the Virgin Brand: 1.

2.

3.

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8. Overall, what is your most important factors in choosing Virgin Brand
products/services? Please check three.

Overall, what is your most important factors in choosing Virgin Brand products/services? Plea

Best performance

Recognize brand name

High Quality

Presence in several countries

Brand Loyalty

Price

Adverstisement

Do not know

Other (please specify)

*
9. Your Gender

Your Gender Female

Male

*
10. How old are you?

How old are you? 21 and under

22 to 34

35 to 44

45 to 54

55 to 64

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65 and over

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APPENDIX 2

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