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ASSESSMENT OF CONSUMERS’ BRAND PREFERECE OF SOFT

DRINKS: A COMPARATIVE ANALSYIS OF PEPSI COLA AND


COCA-COLA PRODUCTS AMONG HAWASSA TABOR HIGH
SCHOOL STUDENTS

A THESIS PREPARED TO THE PARTIAL FULFILLMENT OF THE


REQUIREMENTS FOR MBA DEGREE

BY
ABEBAW GEBREHANNA

MAJIOR ADVISOR: Dr. ARVIND SOUDIKAR

CO-ADVISOR: ATO YILMA GELETA

COLLEGE OF BUSINESS AND ECONOMICS


SCHOOL OF MANAGEMENT AND ACCOUNTING
HAWASSA UNIVERSITY

OCTOBER 2016
HAWASSA, ETHIPOIA

Electronic copy available at: https://ssrn.com/abstract=3952746


ASSESSMENT OF CONSUMERS’ BRAND PREFERECE OF SOFT
DRINKS: A COMPARATIVE ANALYSIS OF PEPSI COLA AND
COCA-COLA PRODUCTS AMONG HAWASSA TABOR HIGH
SCHOOL STUDENTS

ABEBAW GEBREHANNA

MAJIOR ADVISOR: Dr. ARVIND SOUDIKAR

CO-ADVISOR: ATO YILMA GELETA

A THESIS SUBMITTED TO THE COLLEGE OF BUSINESS AND


ECONOMICS SCHOOL OF MANAGEMENT AND ACCOUNTING
HAWASSA UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE


DEGREE OF

MASTER OF BUSINESS ADMINISTRATION IN MARKETING


MANAGEMENT

OCTOBER 2016
HAWASSA, ETHIPOIA

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DECLARATION

I hereby declare that this MBA thesis entitled” Assessment of Consumers’ Brand

Preference of Soft Drinks: A Comparative Analysis of Pepsi Cola and Coca-Cola Products

among Hawassa Tabor High School Students” is my original work and has not been

presented for a degree in any other university, and all source of materials used for the

thesis have been duly acknowledged.

Name: Abebaw Gebrehanna

Signature: ________________________

Date: ____________________________

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ADVISORS’ APPROVAL SHEET

This is to certify that the thesis entitled “Assessment of Consumers’ Brand Preference of

Soft Drinks: A Comparative Analysis of Pepsi Cola and Coca-Cola Products among

Hawassa Tabor High School Students” submitted in partial fulfillment of the requirements

for the degree of Master of Business Administration and has been carried out by Abebaw

Gebrehanna under my supervision. Therefore, I recommend that the student has fulfilled

the requirements and hence hereby can submit the thesis to the school.

______________________ _____________________ _________________

Name of Principal Advisor Signature Date

______________________ _____________________ _________________

Name of Co-advisor Signature Date

iv

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ACKNOWLEDGEMENT

The completion of this research is a result of so many people’s efforts that deserve

appreciation. My foremost thanks go to my principal advisor, Dr Aravind Soudikar for his

close supervision, valuable comments, professional advice and encouragement during the

research work. My great appreciation also goes to my co- advisor Mr. Yilma Geleta for

every helps he made for me.

My thank goes to Hawassa city education office officers and Hawassa Tabor high school

supervisors, principals, teachers and students for helping me the relevant information at

data collection moment. And also to all data collectors and respondents who participated in

this study.

At last but not least, I would like to take this opportunity to express my immense gratitude

to my friends, my family and other individuals who helped me in the course of my study.

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TABLE OF CONTENTS
CONTENTS PAGES

DECLARATION ..................................................................................................................iii

ADVISORS’ APPROVAL SHEET ...................................................................................... iv

ACKNOWLEDGEMENT ..................................................................................................... v

LIST OF TABLES ................................................................................................................ ix

LIST OF FIGURES ............................................................................................................... x

ABBREVIATIONS AND ACRONYMS ............................................................................. xi

ABSTRACT ......................................................................................................................... xii

CHAPTER ONE .................................................................................................................... 1

INTRODUCTION ................................................................................................................. 1

1.1. Background of the Study ............................................................................................. 1

1.2. Statement of the problem ............................................................................................ 2

1.3. Objectives of the Study ............................................................................................... 3

1.3.1. General objective .................................................................................................. 3


1.3.2. Specific objectives ................................................................................................ 3
1.4. Research Questions ..................................................................................................... 4

1.5. Significance of the Study ............................................................................................ 4

1.6. Scope of the study ....................................................................................................... 5

1.7. Limitations of the study ............................................................................................... 5

1.8. Organization of the study ............................................................................................ 6

CHAPTER TWO ................................................................................................................... 7

LITERATURE REVIEW ...................................................................................................... 7

2.1. The Concepts and Definitions of Brand ...................................................................... 7

2.2. Consumer Brand Preferences ...................................................................................... 8

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2.3. Brand Equity................................................................................................................ 9

2.31. Brand Loyalty ...................................................................................................... 12


2.3.2. Brand Awareness ................................................................................................ 13
2.3.3 Brand Association ................................................................................................ 15
2.3.4 Perceived Quality................................................................................................. 16
2.3.4. Satisfaction ......................................................................................................... 17
2.3.5. Price .................................................................................................................... 18
2.4. Brand Identity ............................................................................................................ 18

2.4.1 Brand Personalities .............................................................................................. 20


2.4.2. Culture ................................................................................................................ 21
2.4.3. Self-Image........................................................................................................... 22
2.5. Conceptual Framework of the Study ......................................................................... 23

CHAPTER THREE.............................................................................................................. 25

RESEARCH METHODOLOGY ......................................................................................... 25

3.1. Description of the Study Area ................................................................................... 25

3.2. Research Design ........................................................................................................ 27

3.3. Data Sources .............................................................................................................. 27

3.4. Sampling Design ....................................................................................................... 27

3.4.1. Sample Size Determination ................................................................................ 27


3.4.2. Sampling Technique ........................................................................................... 28
3.5. Data Collection Instruments ...................................................................................... 30

3.5.1. Questionnaire ...................................................................................................... 30


3.6. Methods of Data Processing and Analysis ................................................................ 32

3.7. Ethical Consideration ................................................................................................ 32

CHAPTER FOUR ................................................................................................................ 33

RESULTS AND DISCUSSION .......................................................................................... 33

4.1. Background Information of Respondents .................................................................. 33

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4.2. Descriptive Analysis .................................................................................................. 35

4.3. Comparative Analysis of Pepsi Cola and Coca-Cola Products ................................. 38

4.4. The Relationship between Brand Preference and Students Background Information
................................................................................................................................ 61

CHAPTER FIVE.................................................................................................................. 64

SUMMARY, CONCLUSION AND RECOMMENDATIONS .......................................... 64

5.1. Summary of Major Findings ..................................................................................... 64

5.2. Conclusion ................................................................................................................. 68

5.3. Recommendations ..................................................................................................... 69

REFERENCES..................................................................................................................... 71

APPENDICES ........................................................................................................................I

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LIST OF TABLES

Table: Page
Table 1: Reliability test for the developed questionnaire .................................................... 31

Table 2: Sex and Age of Students (n=374) .......................................................................... 33

Table 3: Students Preferred Brand and Their Reasons for Brand Preference ...................... 34

Table 4: Frequency of soft drink consumption in a week and reasons for consuming ........ 35

Table 5: Descriptive analysis on students brand equity and brand identity ......................... 36

Table 6: Brand Loyalty of Students on their preferred Soft Drink ...................................... 39

Table 7: Perceived Quality of Students on their preferred Soft Drink ................................. 42

Table 8: Price of a soft drink preferred by students ............................................................. 44

Table 9: Brand Awareness of Students on their Preferred Soft Drink ................................. 46

Table 10: Satisfaction of Students on their Preferred Soft Drink ........................................ 50

Table 11: Culture of Students on their Preferred Soft Drink ............................................... 52

Table 12: Self Image of Students on their Preferred Soft Drink .......................................... 54

Table 13: Brand Personality of Students on their Preferred Soft Drink .............................. 57

Table 14: Background Information of Students and their Preferred Soft Drink (n=374) .... 61

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LIST OF FIGURES

Figure: Page

Figure 1: The Conceptual model for brands preference ...................................................... 24

Figure 2: Administrative Map of Hawassa City Administration ......................................... 26

Figure 3: Schematic representation used to select study participants in Tabor secondary and
preparatory school students ................................................................................... 29

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ABBREVIATIONS AND ACRONYMS

CSA Central Statistics Agency

HCAFEDD Hawassa City Administration Finance and Economic Development Department

NGOs Non-Governmental Organizations

PPS Probability Proportional to Size

SABCo South African Beverage Company

SNNPR Southern Nations Nationalities and Peoples’ Region

SPSS Statistical Package for Social Sciences

U.K. United Kingdom

U.S. United States

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ABSTRACT

Despite their popularity, studies concerning soft drinks are lacking. Hence, this study was
conducted to assess the consumers’ brand preference of soft drinks: A comparative
analysis of Coca cola and Pepsi cola products among Hawassa Tabor high school
students. Both primary and secondary data sources were used in the study. The required
data were collected from 374 students of soft drink customers selected by adopting a
multistage sampling technique. Descriptive research design with quantitative method was
used. The data collected through questionnaire were analyzed using SPSS software version
21. Descriptive statistics such as frequency and percentage, mean and standard deviation
were applied. Furthermore, inferential statistics such as independent sample t-test and
Chi-square analysis were used to compare the coca cola and Pepsi cola brands based on
brand equity, brand identity and background characteristics of students. The findings of
the study show that Coca cola is the best brand for high school students. The reasons of
consumers to prefer Coca cola were its taste, refreshment and frequency of advertisement.
Coca cola customer used the brand not only to fill their basic thirst but also for study
purpose. Coca cola has built strong brand on the three component of brand equity such as
perceived quality, brand awareness and satisfaction. This provides value to the customer
by enhancing satisfaction and confidence in purchase decision and to the firm by
enhancing competitive advantage. Coca cola has also strong brand on the two component
of brand identity such as self-image and brand personality. Those students from rural area
were Pepsi Cola brand customers and those students from urban area were Coca Cola
brand customers. Coca Cola brand customers consume frequently than Pepsi Cola
customers. The study therefore recommends that Pepsi cola brand producers should
concentrate on brand loyalty and perceived quality. Students have high brand loyalty
towards a brand if they are satisfied with the product delivered by it.

Key words: Brand Preference, Brand Equity, Brand Identity, Consumer, Soft drink

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CHAPTER ONE

INTRODUCTION

1.1. Background of the Study

In our modern world, living pattern and life style of the people have been changed a lot.

Soft drinks are common preference among all the individuals with the changing life style

and income levels, people are shifting their consumption patterns. Market research is based

on consumer’s buying preference towards soft drinks. Soft drink is an important product

item in modern society both urban and rural and becoming more popular in the consumer

world (Andersson, Arvidsson, and Lindström, 2006).

The world's soft drinks market is totally subject by just two players: - Coke & Pepsi. Coke,

'The genuine thing' other than a century old was born eleven years more on of its

competitor & a century later on, still maintains the original lead. Pepsi, 'The challenger',

even now poses as the hurried, young upstart & is struggle the cola was as the drink for the

younger age group. The soft-drink industry comprises companies that manufacture

nonalcoholic beverages and carbonated mineral waters or concentrates and syrups for the

manufacture of carbonated beverages. Soft drink products have been well accepted by

consumers and gradually overtaking hot drinks as the biggest beverage sector in the world

(Paracha, Waqas, Khan, and Ahmad, 2012).

In the midst of the rapidly growing soft drink demand, the industry on the whole is

encountering new opportunities and challenges. Changing consumer demands and

preferences require new ways of maintaining current customers and attracting new ones.

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Between ever increasing competition, beverage companies must intensely court customers,

offer high quality products, efficiently distribute them, ensure safety and keep prices low

all while staying nimble enough to exploit new markets by launching new products. Recent

developments in soft drink consumption and challenges in marketing have heightened the

need for searching the consumers' needs and preferences (Belay, 2013).

At present soft drink market is one of the most competitive markets in the world. In which

billions of Birr on advertisement and other promotion activities are being spent. In Ethiopia

the soft drink industry is flourishing well with a wide range of brand comprising both

popular international, national and regional branded soft drinks. The study on brand

preference becomes necessary. The purchase decision largely depends upon Taste,

Quality, Quantity, Price, Availability and the like. Due to globalization, there are many soft

drink brands available in the market such as Coca- cola, Pepsi-cola, Red Bull, Ambo

mineral water and etc. (Andersson, Arvidsson, and Lindström, 2006).

Soft Drinks Industry is one of the processing industries that play an important role in the

economic development, especially for developing countries like Ethiopia. A soft drink is a

cold beverage, usually sweet drink, which does not contain alcohol. In Ethiopia, soft drinks

are known by the Amharic word "leslassa", meaning literally "smooth".

1.2. Statement of the problem

Soft drink is an important product item in the modern society. Due to the development of

science and technology, many new brands of soft drink products flood the market every

year. However, there are two soft drink brands are available in Ethiopia and consumers in

Ethiopia switch over from one brand to the other (Aregawi, 2006).

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Among all the soft drink brands customers have to judge the other factors such as price,

quality, packaging, availability, variety and taste before making their buying decision.

After satisfied with the above factors they have to select the right drinks. Today’s market is

open market, consumer taste and preference is always changeable in condition, company’s

strategy should be high (Belay, 2013).

Generating timely and appropriate information on the brand preference, brand equity and

brand identity of soft drink consumers in the study area is important preconditions for any

intervention schemes for soft drink product industries. However, there is a dearth of

scientific research evidence in the concerned area to support the present brand preference,

brand equity and brand identity of soft drink consumers. Therefore, this study was

conducted to fill this gap and to add some drops of knowledge to the existing knowledge in

the study area.

1.3. Objectives of the Study

1.3.1. General objective

The general objective of this study is to assess the consumers’ brand preference of soft

drinks among Hawassa Tabor high school students in Hawassa City.

1.3.2. Specific objectives

1. To identify the more favorable types of soft drink brand in the eyes of students.

2. To compare the brand preferences of students based on their brand equity and brand

identity dimensions.

3. To find out the relationship between socio demographic characteristics of students and

their brand preference.

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1.4. Research Questions

1. Which soft drink brand is more favorable in the eyes of the students?

2. What are the brand preferences of students based on brand equity and brand identity

dimensions?

3. What are the relationship between socio demographic characteristics of students and

their brand preference?

1.5. Significance of the Study

The objective of this study is to compare between Coca and Pepsi cola soft drinks on the

basis of their brand components and how different components of brand equity and identity

influence students in choosing a particular brand of soft drink. A good knowledge of

students brand preference in soft drink would help in understanding how brand shape

students buying decision and preferences.

Customer perception of any product is an important point to decide the success of an

organization. The significance of this paper can provide a clear picture of the consumer’s

attitude towards soft drinks of Coca Cola and Pepsi Products, factors that contributed in the

formation of these attitudes the opportunities and challenges to the product with respect to

understanding, improving and preserving its image.

The study will identify how soft drink producer could improve or maintain its customer’s

attitudes and get the maximum out of it and could be useful to other business organizations

according to their context.

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Taking into account the shortage of clear document concerning consumer’s soft drink

brand preference among students, the study will help to enhance the knowledge of

marketing managers, scholars and researchers with regard to the concept of consumer

perception, attitude and their importance for the success of similar business.

1.6. Scope of the study

The study focused on assessing the consumers’ brand preference of soft drinks. That mean

to identify the more favorable types of soft drink brand in the eyes of students, to compare

the brand preferences of students based on their brand equity and brand identity

dimensions and to find out the relationship between socio demographic characteristics of

students and their brand preference. This investigation is only concerned with Hawassa

Tabor high school students. This is one of public school that are found in southern regional

state and it is located in Sidama Zone specifically in Hawassa City which is found at a

distance of 275 Km from Addis Ababa, the capital city of the country. The study is

descriptive with quantitative approach. The time scope of the study is limited to the year

2016.

1.7. Limitations of the study

It is unthinkable that a research could be free from any challenges through over the study

periods which have possibility of bringing adverse effects on the results of the study. To

mention some of the expected limitation of the study: misunderstanding of students about

the purpose of this study. In addition, some students were busy and have little time to

respond to the questions. The research is purely quantitative; it may not give an

opportunity to listen respondents’ reason in person. Nonetheless the researcher took the

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following measures to minimize the effect of these limitations on the quality of the

research. First, probability sampling techniques were designed and more sample size was

taken from the targeted population to have representative sample. Second, the researcher

arranges programs together with school teachers.

1.8. Organization of the study

The researcher has designed his studies as follows:-

Chapter One: Introduction of the Study: An introductory chapter where back ground of

the study, statement of the problem, objective of the study, scope of the

study, significance of the study, and limitation of the study are presented.

Chapter Two: Review of Literature: This chapter deals with the review of literatures on

brand preference of soft drinks. All theories tending to support this study are

incorporated in the review of literature.

Chapter Three: Research Methodology: On this part of the paper, research design,

descriptive of the research area, sample size, sampling design, data type and

sources of data, method of data analysis and interpretation, questionaries’

design/Measurement are presented.

Chapter Four: Result and Discussion: This chapter investigates the analysis and results

of the study.

Chapter Five: Conclusion and Recommendation: This part of the thesis is used to

forward the summary of findings, conclusions and recommendations.

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CHAPTER TWO

LITERATURE REVIEW

2.1. The Concepts and Definitions of Brand

According to Kapferer (2004), brand as a name that influences buyers. He further notes

that brand command people’s attention because they have element of saliency,

differentiability, intensity and trust. Successful brand conveys a consistent message and

create an emotional bond with consumers.

“ A brand is the total emotional experience a customer has with your company and its

product or service” the author describes the brand to be an experience that’s implanted in

the mind of customers that have experienced an interaction with a company or that got in

contact with the company’s staff, product or service. In case the customer experience is

different from what the company illustrate its brand. In that case the company is losing.

However other parts of the brand such as “logos, advertising campaigns, mission

statements, colors holds also great importance but they should always come after the

customer, it is vital to put the customer and the company’s relationship with him/her in the

first position and think how to develop this relationship and then as a second stage a

company can use all important tools like logo’s, color’s and advertising campaigns

(Hammond, 2008, p.14).

A brand has also been defined as “a product offer from a known source” (Kotler, 2000).

Keller (2003) defines a brand as a product that adds other dimensions that differentiate it

from other products and services designed to satisfy the same need. A brand is also an

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intangible but critical component of what a firm means; a set of promises (Davis, 2002).

Finally, Bedbury and Fenichell (2002) say that “a brand is, if it is something, the result of a

synaptic process in the brain. They are sponges for content, images, feelings, sensations,

experiences, and psychological concepts inside consumers’ minds. There are so many

definitions that have been developed for a “brand”, based upon consumer perceptions of

brands due to their own feelings, associations, and relationships with them.

2.2. Consumer Brand Preferences

The consumer market amounts to a total of 6.3 billion people, and thus there is great

demand for an enormous variety of goods and services, especially as consumers differ from

one another in that of age, gender, income, education level, and tastes. Moreover, the

relationships between different consumers, as well as their contact with other elements of

the world surroundings, affect their choice of products, services, and companies (Kotler

and Keller, 2006).

Brand Preference refers fundamental step in understanding consumer choices. A deeper

understanding of such preference dynamics can help marketing manager’s better design

marketing program and build a long term relationship with consumers. Despite the

existence of some investigation how brand preference is built and changed, most of them

focus on examine factors from consumer behavior perspective or advertising perspective

(Schiffman and Kanuk, 2000).

The reason why consumers buy what they do is often deeply rooted in their minds,

consequently consumers do not truly know what affects their purchases as “ninety-five

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percent of the thought, emotion, and learning [that drive our purchases] occur in the

unconscious mind- that is without our awareness” (Kotler and Armstrong, 2005).

Consumers’ purchase process is affected by a number of different factors, some of which

marketers cannot control, such as cultural, social, personal, and psychological factors.

However, brand preference in terms of brand equity measures such as loyalty, awareness,

association, perceived quality and brand identity measures such as personality, physique,

relationship, culture were discussed were reviewed as follows.

2.3. Brand Equity

As pointed out by Aaker (1991, p.24) brand equity is among the few strategic assets

available to the companies that provide a long-lasting competitive advantage to the

company. Brand equity constitutes the assets and the liabilities that is link to a particular

brand, like name, or logo. It comprises of brand loyalty, brand awareness, brand

association, brand assets, and perceived quality. Creating strong, favorable and unique

brand association is a real challenge for markets but it is essential in building strong brand.

Strong brands typically have firmly established strong, favorable and unique brand

association with customer (Aaker, 1991, p.25).

Aaker (1996, p.8) acknowledge that brand equity is a set of asset and legal responsibility

connected to the brand’s name and figure that add to (or take away from) the value

presented by the product or service to a company and/or that company’s customers,

according to Aaker (1996, p.16) the main assets are grouped in the followings:

• Brand name awareness

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• Brand Loyalty

• Perceived quality

• Brand associations

Aaker (1996, p.8) demonstrate in the below figure how brand equity generates value,

through investment these assets can be created and improved. Each one of the five brand

equity assets produces value in a diverse way; seventeen of these values are listed in the

figure below. It is essential to be aware of the ways in which well-built brands forms value,

in order to take important decisions about brand building activities.

Brand equity forms value for both the customer and the firm; however the brand equity

should be expressed and linked by the name and symbol of the brand.

Aaker (1991, p.15) define a brand as a distinguishing name or symbol intended to identify

the goods or service of either one seller or group of seller and to differentiate those goods

or service of product and protect both the customer and the producer and product from

competitors.

According to Keller (2008), strong brand can command price premiums; on the other hand

strong brand cannot command an excessive price premium. Keller (1998, p.64) view on

brand equity suggest that brand equity occurs when consumer response to marketing

activity differs when consumer know the brand from what they do not.

Mallik (2009, p.31) explain that “brand equity is the value built-up in a brand” it can be

calculated by comparing the anticipated potential or future income from the branded

product or service with the anticipated or future income from non-branded similar product

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or service. Brand equity can be positive or negative, positive brand equity is often when a

company exceeds their costumer expectation. It formed by past efficient and successful

advertising. Negative brand equity is created by usually bad management. Positive brand

strategy usually is a strong barrier to entry for potential rival and competitor.

Aaker (1991, p.15.) notes that brand can be nurtured and maintained through

advertisement. Kapferer (2004, p.95) comment that the more a brand is known, the more its

advertisement are noticed and remembered. Brand equity can provide the company with a

high potential of future growth.

Aaker (1991, p.23) Acknowledge that consumers are will to pay high price companies with

brand. Brand equity such as brand awareness, image, trust, and reputation are painstakingly

built up over many years. Kapferer (2004, p.95) also mention that branding requires a long

term corporate involvement, a high level of resource and skills. Brand equity incorporates

several advantages like, it ability to attract new customers, resist competitive activity,

lower advertising /sale ratios, brand loyalty, trade leverage and premium pricing (Keller

1998, p.53).

Keller (1998, p.7) Brand allows consumers to lower search costs for product both

internally (regarding how much they have to think) and externally (in terms of how much

they have to search around).It also help consumers make assumption of the product base

brand quality and characteristics, thereby forming a reasonable expectation about what they

do not know about the brand. It conveys a certain level of quality so that satisfied buyer

can chose the product again.

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Brand equities is said to be the most intangible assets that a company possess that is not

reflected in the balance sheet, given that it provide competitive advantage for the company.

Having a brand guarantees future earnings. Despite the fact that the corporate balance sheet

display only assets of the company without mentions of the brand equity does not change

the fact that it is precious assets to the company. While a competitor can copy a company’s

product but its brand is unique.

2.31. Brand Loyalty

According to Keller (1998, p.54) brand loyalty is often ascribe to a behavioral sense

through the number of repeat purchases, it entails consumer sticking with the brand and

reject the overture of competitors. Strong brand equity holds consumer loyalty because

consumer values the brand on the basis of what it is and what it represents. Brand loyalty is

attributed to brand image and brand equity. It is also worth noting that brand commitment

is the substantial expression of brand preference and brand loyalty.

Aaker (1991,p.39) pointed out that brand loyalty ascertains that extent the customer is

attached to a brand and speculate how likely the customer will switch to another brand,

when the brand changes either in product price or features.

Brand loyalty of current customers represents a strategic assets, and when properly

managed would provide the company with several values. Brand loyalty it associated more

closely to the use experience, in the sense that it does not exist without prior purchase and

use experience (Aaker, 1991, p.41).

There are five different level of brand loyalty; each level poses different challenges and

different to companies. The bottom loyalty level is the nonlocal buyers who have no

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preference for any brand. These groups of buyers place no value on the brand name and

consider any brand as adequate. Brand does not play any role in the buyer purchase

decision (Aaker, 1991, p.40).

The second level includes buyers who are satisfied with pleased with the product. These

groups of buyer are vulnerable to a competitor who offers them a visible benefit to switch;

hence they are classified as habitual buyers (Aaker, 1991, p.40)

The third levels are class of buyers who are please with the brand, these buyer might

switch brand if competitors overcome the switching cost by inducing the buyer to switch to

their brand (Aaker, 1991, p.40).

The fourth levels of brand loyalty are the category of loyal customer that really likes the

brand. Their preference for the brand is on the symbol, previous experiences or the logo of

the company (Aaker, 1991). The top levels are category of buyers who are committed to

the brand, because of the brand functionality or because the brand is the expression of

whom they are (Aaker, 1991, p.40).

2.3.2. Brand Awareness

Aaker (1996, p.10) explains that awareness is the power and force of the brand’s presence

in the consumer’s mind, consumer, and this awareness is measured by how consumer

keeps in mind the brand and how they recall it, acknowledgment measures such as “Have

you been exposed to the brand before?, What brands of the product class can you recall?,

“top of mind” (the first brand recalled) or (the only brand recalled).

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Aaker (1996, p.10) clarifies that Recognition of a brand is based on the knowledge added

from earlier exposure, it is not essential to remember where the brand was seen or why it is

diverse from other brands neither it needs to be remembered the class of the brand,

remembering the earlier exposure is the most important thing. Economist explains that

when costumers recall being exposed to a brand this will be transmitted in their brain to be

a “signal” of a good brand because they believe that companies don’t pay out large amount

of money on bad product.

Aaker (1996, p.15) shows that the crucial part of brand awareness is the brand name

dominance because when a recall test is made for customers, it illustrated that customers

can remember one brand only, this becomes a risky factor if the brand name is not

distinguished and is a common tag for products that are legally protected. This is why

companies should start protecting at the beginning of its existence. When choosing a brand

name firms should beware of descriptive names, such as Windows because this makes it

harder for customers to differentiate from the generic product.

Due to the fact that customers are being exposed to more and more brands and messages,

creating brand awareness is a big challenge illuminate that there is two way to create the

awareness (Aaker, 1996, p.16):

First is by creating “healthy awareness levels” this wide trade base is typically an asset, but

it is expensive and for small unit sales and for life measured in years and not in decades

this can be impossible. This is why huge companies have an advantage in building the

awareness. Multiple businesses sustain and back up the brand name.

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Second in future companies will experts in working outer the usual media channels, by

using occasion promotions, sponsorships, advertising and sampling, these companies will

be the most successful companies in creating the brand awareness.

According to Aaker (1996, p.16) however, companies should always put in mind while

managing the brand that it is necessary that brands are managed not for “general

awareness” but for “strategic awareness” it is important that customers recall this brand for

good reasons and not for bad ones.

2.3.3 Brand Association

Brand associations are representations of what a brand means for a consumer and are

“anything linked in memory to a brand” (Aaker, 1991). Any contact or experience a

consumer has with a brand can create, change, or reinforce certain favorable or unfavorable

associations (Keller, 2003), in order for associations to have a positive effect on brand

equity, they must be unique, strong, and favorable. Aaker (1991) defines brand associations

as “anything linked in memory to a brand. Brand associations are believed to contain the

meaning of the brand for consumers (Keller, 1993).

Aaker (1991) asserted that brand association is “the category of brand’s implication which

includes anything linked in memory to a brand”. According to Keller (1998), it is set of

information nodes attached with the brand in mind of consumers, which can be classified

as attributes, attitudes & benefits related to the brand. It is helpful to customers to retrieve

information about some brands from their memory. When they are confronted with the

brand, the associated benefits or experience or features will be reflected in customer’s

mind.

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Laptop firms need to increase brand awareness to increase the familiarity of brands in the

mind of consumers; high level of brand association can moderately work to increase

buying behavior of Chinese customers (Liu Z, 2007). Brand association is the

informational nodes linked to the brand in memory and the meaning of the brand for

consumers (Henry, 2004). CBBE is measured from the consumer perspective based on

consumers’ memory based brand associations (Chen, 2010). It indicates that in the

consumer’s memory, for all associate with the brand, if these associations can be

assembled all together with some signification, then the impression on this signification

would become a brand image (Aaker, 1996).

Strong and favorable brand associations contribute toward brand equity. Aaker (1991,

quoted in (Atilgan, 2005)) suggests that brand association creates value for customers as

well as marketers because brand associations help consumer process information,

differentiate an offering, and provide reason to buy and a basis for extension.

2.3.4 Perceived Quality

Perceived quality of brand is defined as the consumer’s judgment about a brand’s overall

excellence or superiority with respect to its intended purpose, relative to alternatives

(Zeithaml, 1988; Aaker and Jacobson, 1994). Perceived quality is believed to be a type of

association warranting elevation to the status of a separate dimension of a brand’s equity

(Pappu and Quester, 2006). The customers will have a subjective satisfaction at the

comprehensive quality or recognition level against the product or service offering under

such brand which is perceived quality (Hu et al., 2010).

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According to Aaker perceived quality as “the customer’s perception of overall quality or

superiority of a product or service with respect to the intended purpose, relative to

alternatives”. Consumers always want to spend less time & efforts in selection of brand, so

they mostly rely on feelings about the characteristics of products of particular brands

(Aakers, 1991, p 7). Here their perception is driving the decision making process. It also

depends on the willingness of the customer for purchase decision. Tsai (2004) Suggests

those brands with lower emotional ratings may redirect marketing resources and efforts to

increase consumer’s emotional perceptions, which will give higher satisfaction.

Perceived quality is related to a consumer’s judgment of a product or brand’s overall

superiority or excellence (Zeithaml, 1988). Therefore, firms have to genuinely increase the

real quality of their brands and then communicate this quality through their marketing

actions in order to affect perceived quality in a positive manner. High perceived quality

allows for consumers to be convinced about buying the brand; for differentiation of the

brand from competition; and for the firm to charge a premium price and then extend the

brand equity (Aaker, 1991).

2.3.4. Satisfaction

Customers are always aiming to get maximum satisfaction from the products or services

that they buy. Willing in today’s market place entails the need to build customer

relationship and not just building the products building customer relationship means

delivering superior value over competitors to the target customers. Whether an

organization provides quality services or not will depend on the customers’ feedback on

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the satisfaction they get from consuming the products, since higher levels of quality lead to

higher levels of customer satisfaction (Kotler and Keller, 2009).

2.3.5. Price

As quoted by Kotler and Armstrong (2008), described price as the amount of money

charged for a product or service or the total values that consumers exchange for the

benefits of having or using the product or service prices should be set in relation to specific

pricing objectives. Decisions concerning the pricing of a product or services include

payments, terms, discounts, contract and pricing. Prices have to reflect the costs of

production and marketing as well as targeted profit margins. A variety of approaches may

be taken to pricing including cost based, demand based, competitor based and market

based. Price is a key element of the marketing mix because it represents on a unit basis

what the company receives for the product or service which is being marketed (David,

2001).

2.4. Brand Identity

Kapferer (2004, p.107) postulated the brand Identity Prism. It is a hexagonal prism which

comprises of six facets of brand identity namely Physique, personality, relationship,

reflection, and self-image. The brand identity prism illustrates that these facets are all

interrelated and form a well-structured entity. The significance of the brand prism is to help

in understanding the essence of brand and retailer identities. Kapferer (2004, p.107) further

notes that brand identity reflects the strength of the brand. The essence of brand identity is

that they communicate. Brand is a physique. A physique deal with the physical aspect of

the brand .It is a combination of the prominent objective features which comes to mind

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when the brands is mentioned. It represents the backbone and its tangible added value. The

physical aspect of the brand is one of the things that define a brand. It also consists of

brand´s photo type (Kapferer, 2004, p.108).

Brand is a culture. In the sense that it has its own separate culture which is derive from

products. A product embodies not only culture but also is a means of communication.

Brand conveys culture and is driven by culture in the sense that they convey the culture of

the society they originate from. Country of origin is the reservoirs for brands. One vital

role of culture is that it link brand to the firm and play essential role in differentiating brand

(Kapferer, 2004, p.108)

Brand is a relationship: This facet of brand, has implication for the way the brand act

,delivers service ,or relate to its customer .Brand are sometimes the crux of transactions

and exchange between people. Brand relate its name to a theme .E.g. Like Nike beer a

Greek name that relate it to specific cultural values, to the Olympic games (Kapferer, 2004,

p. 107).

Brand has a personality. People usually ascribe brand with certain personality. The way in

which it speaks of its product or service shows what kind of person it would be if it were

human. It also pointed out that brand personality is described and measured by those

human personality traits that are relevant for brands (Kapferer, 2004, p. 108).

Brand is a customer reflection. Brand reflects the individual who use it. A brand always

tends to reflect or build an image of the buyer or the user which it seems to be addressing.

It does reflect the customer as he or she wishes to be seen as a result of using a brand.

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Consumers use brand to build their own identity. Customers want to be seen in certain way

as a result of purchasing a given product (Kapferer, 2004, p. 110).

Everything a brand does is communication. “It is impossible not to communicate.” The

way the packs are designed, the words used, the way the phones are answered (or not), and

the products the name is put to, the shops in which these are sold: all these can say

powerful things about a brand. Clifton, Simmons, Ahmad, & Allen (2003, p. 127)

disclosed that brand speaks to our self-image. This facet of brand identity deals with our

relationship the inner self-image that is built through our attitude towards certain brand

(Kapferer, 2004, p. 111).

2.4.1 Brand Personalities

Aaker (1996, p. 141) defines the brand personalities to be “the set of human characteristics

associated with a given brand”. Thus it includes such characteristic as gender, age, and

socioeconomic class, as well as such classic human personality traits as warmth, concern,

and sentimentality. Brand personalities are similar to human’s personalities; they are

different and permanent or long lasting. Different responses were collected from qualitative

and quantitative research studies on brand personalities based on the fact that it was

collected from two groups first is users group and second is the nonuser group. People

frequently have the habit to interact with brands in the same way as this brand was human,

actions such as given nick names ad thinking that their possession should rest for a while to

feel better.

As mentioned before by Aaker (1996, p. 142) brand personalities can be described by the

following:

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• Described by demographics such as: age, gender, social class and race.

• Described by life style such as: activities, interests and opinions.

• Described by human personality traits such as: extroversion, agreeableness and

dependability.

Further to Aaker (1996, p. 143) Studies that tests the brand personality scale (BPS), has

noticed that five personality factors were used while making a study to more than 1000

U.S. respondents, they were asked about the personality of 60 famous brands which have

different characteristics. These five personality factors which were later called “The Big

Five” appeared even after the respondents were divided into groups on age base and gender

base. The Big Five as illustrated in figure 6, it shows personalities of brands, these Big

Fives are separated to aspects in order to provide quality and vivid insight connected to the

nature and structure of the factor.

2.4.2. Culture

Culture is the fundamental determinant of a person’s wants and behavior for example;

growing child acquires a set of values, perceptions, preferences, and behavior through his

or her family and other key institutions. Each culture consists of smaller subcultures that

provide more specific identification and socialization for their members. Subcultures

include nationalities, religions, racial groups and geographic regions (Kotler and Keller,

2006, p.164).

A consumer behavior is influenced by such social factors as reference groups, family, and

social roles and statuses. Reference group is a person’s reference group consists of the

entire groups that have a direct or indirect influence on individual attitudes or behavior

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(Kilter and Keller, 2006, p.167). There are 2 types of group. Groups having a direct

influence on a person are family, friends’ neighbors and co-workers, these peoples called a

primary group. Another group that peoples also belong to but tend to be more formal and

require less continuous interaction is secondary groups such as religious, professional and

trade-union groups (Hawkins, Best, and Coney, 1998, p.215).

2.4.3. Self-Image

A buyer’s decisions are also influenced by personal characteristics. These include the

buyer age and stage in the life cycle, occupation and economic circumstance, personality

and self-concept and lifestyle and values. Some of these characteristic have a very direct

impact on consumer behavior (Kotler and Keller, 2006, p.170).

People buy different goods and services over a life time. Taste in food, clothes, furniture

and recreation is often age related. Occupation also influence consumption patterns, for

example a blue-collar worker will buy work clothes, work shoes, and lunchboxes while a

company president will buy dress suits, air travel and country club memberships. Product

choice is greatly affected by economic circumstances, spend able income, saving and

assets, borrowing power and attitudes towards spending and saving. If economic indicators

point to a recession, people may change behavior from buying a luxury brand to more

value for money brand instead (Kotler and Keller, 2009, p.172).

Personality and self-concept also key influence on buying behavior. Personality means a

set of distinguishing human psychological traits that lead to relatively consistent and

enduring response to environmental stimuli (product & service, price, distribution and

communication). Personality is a useful variable in analyzing consumer brand choices

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since brand also have personality (Kotler and Keller, 2009, p.172). Several successful

studies demonstrate empirically the relationship between personality and consumer

behavior, for example found significant positive correlations of scores on measures of

extroversion, emotionalism, tough -mindedness and impulsiveness with alcoholic beverage

consumption (Foxall and Goldsmith,1994, p.127).

A last personal factor is lifestyle and values. People from same subculture, social class and

occupation may lead quite difference lifestyle. A lifestyle is a person’s pattern of living in

the world as expressed in the activities, interests and opinions. Lifestyle is shaped by

whether consumers are money constrained or time constrained. Consumer decision is also

influenced by core values that people desires over the long term (Kotler and Keller, 2006,

p.173-174).

2.5. Conceptual Framework of the Study

The conceptual framework is based on the theoretical framework of this study. It defines

how the models in this study are related to each other and gives a bird eye view of the

frame work which the conceptual model is based on. The various concepts used in this

research like brand equity measures loyalty, awareness, association, perceived quality are

all used in the questionnaire. While the Brand identity measures personality, physique,

relationship, culture were also included. The brand identity and brand equity models are

link together by brand building model.

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Figure 1: The Conceptual model for brands preference
Source: Adapted from Al-azzawi & Anthony, 2012

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CHAPTER THREE

RESEARCH METHODOLOGY

The main objective of this section is to present how the study was carried out. It covered

the research design, sources of data, sampling design, data collection instruments, data

processing analysis which were used in the study.

3.1. Description of the Study Area

The study was conducted in Hawassa City Administration. Hawassa is located in Southern

Nations Nationalities and Peoples Regional state on the shores of Lake Hawassa in the Great

Rift Valley and served as the capital of the SNNPRS and Sidama Zone. It is situated at

distance of 275 km south of Addis Ababa. The city lays on the Trans-African High way-4 an

international road that started from Cairo (Egypt) to Cape Town (South Africa).

Geographically the city lays between 6054’-7060’ latitude north and 38048’-38033’ longitude

east and the area is 157.25 Sq.Kms. which is divided in to eight sub cities and 32 kebeles

(Hawassa City Administration Finance and Economic Development Department

[HCAFEDD], 2016).

The City Administration of Hawassa is structured in eight Sub-Cities and 21 urban and 11

rural kebeles. The highest decision making body is the city council which has 176 council

members. All political, economic, social as well as governance duties are carried out by the

mayor’s committee members who are heads of the departments (HCAFEDD, 2016).

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Figure 2: Administrative Map of Hawassa City Administration

Source: HCAFEDD, 2016

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3.2. Research Design

Descriptive survey research design was employed to carry out the study. According to

Abiy et al. (2009), the advantages of descriptive survey method stated as follows: (a) it is

used to gather data in an economic way and it is convenient to collect detailed description

of the problems. (b) It represents wide target population. (c) It provides descriptive,

inferential, and explanatory information on subject. (d) It is used to manipulate key factors

and variables. Therefore, to assess and investigate the brand preferences of soft drinks

among high school students, descriptive survey design was more relevant to collect data

from students in an economical way, to represent the total number of secondary and

preparatory students and to analyze the collected data using descriptive and inferential data

analysis methods.

3.3. Data Sources

The study employed both primary sources of data. The data were collected from Tabor

high school students.

3.4. Sampling Design

A sample design is a definite plan for obtaining a sample from a given population. It refers

to determining the number of respondents to be included in the sample and the sampling

technique or the process of taking a sample from a population (Kothari, 2012).

3.4.1. Sample Size Determination

According to Hawassa city Education Office (2016), the total number of students in Tabor

secondary and preparatory school was 5627. This data were used as benchmark to

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determine the representative sample size. The number of sampled students included for

collecting data was determined by using the formula developed by Yamane as cited in

Amsalu and Wondimu (2014) as follows:

N
n Where: n = Sample size
1  N (e) 2
5627 N = Total Population
n
1  5627 (0.05) 2
5627 e=Sampling Error
n
1  5627 (0.0025)
n  374

Thus, 374 respondents were arrived as sample for eliciting the required data.

3.4.2. Sampling Technique

The study used multistage sampling technique to select sample school and students to be

included in the study. In the first stage Hawassa Tabor High School was purposively

selected on the base of different factors such as accessibility of the school to the researcher,

and the school combines both rural and urban students other than other schools in the city.

In the second stage, stratified random sampling was used to divide the school in to four

grades such as Grade 9, Grade 10, Grade 11 and Grade 12. In the third stage, the sample

size from each category is allocated by using Probability Proportional to Size (PPS)

technique (Figure 3). Finally, the researcher used students list in each class as sampling

frame to choose sample students using systematic random sampling technique. This

technique is preferred since it gives an equal opportunity for each member of the

population to be selected in the sample size.

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Figure 3: Schematic representation used to select study participants in Tabor secondary
and preparatory school students

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3.5. Data Collection Instruments

The task of data collection begins after a research problem has been defined and the

research design checked out. While deciding about the method of data collection to be

used, the study data were collected through questionnaire. Below, the instrument is

discussed in detail.

3.5.1. Questionnaire

To collect relevant and reliable data from the selected sample respondents, closed ended

questionnaire was prepared and administered. To assess the brand preference of soft drinks

among high school students, a five point Likert-type scale was used. The five points on the

scale were weighted according to the degree of relevance. The following scaling procedure

was adopted: Strongly agree=5; agree=4; undecided=3, disagree=2 and strongly

disagree=1. The values of the five responses were added and further divided by 5 to obtain

the population mean, which was 3.0. It was prepared in English language and translated

into the local language (Amharic) in order to make the questions clear, avoid ambiguity as

well as to be easily understood by the respondents. The questionnaire was edited by

English language teachers to check the equivalency of translation to the Amharic meaning.

The data collection process was managed by the researcher and other enumerators who

were trained by the researcher on how to collect the data.

Pre Test

After selecting the instrument for the study based on the basic research questions, a pre-test

were conducted at Addis Ketema secondary and preparatory school students. The

questionnaire was distributed to 38 students. Before distributing the questionnaires, brief

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orientation were given regarding the aim of the questionnaires and the method how to fill

the questionnaire. After collecting the questionnaires from the respondents the researcher

were examined it carefully. To test the reliability of the questionnaire, Cronbach alpha (  )

was used. Furthermore, the researcher consulted his advisor to keep the validity of the data.

Both reliability and validity of the instrument helped the researcher to assess the content,

clarity, and logical flow of the questions and know the time needed on average to fill out a

single questionnaire.

Table 1: Reliability test for the developed questionnaire

Variables Cronbach’s Alpha Number of Items


Brand Identity
Culture 0.746 3
Self-Image 0.760 4
Brand Personality 0.855 5
Brand Equity
Brand Loyalty 0.789 4
Perceived Quality 0.856 3
Price 0.755 2
Brand Awareness 0.865 5
Satisfaction 0.729 3

Source: Survey Questionnaire, 2016

According to Kline (1993) reliabilities should ideally be high, around 0.9 but should never

drop below 0.7. Accordingly, the three dimensions of Brand Identity such as culture, self-

image and brand personality had a Cronbach’s alpha value of 0.746, 0.760 and 0.855

respectively. Similarly, the five dimensions of brand equity such as brand loyalty,

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perceived quality, price, brand awareness and satisfaction had a Cronbach’s alpha value of

0.789, 0.856, 0.755, 0.865 and 0.729 respectively. Therefore, all above principle

components were acceptable and reliable because of the Cronbach’s alpha higher than 0.7.

3.6. Methods of Data Processing and Analysis

Data which were collected through questionnaire were coded, entered, cleaned and

analyzed using SPSS software version 21. Frequencies, percentages, mean and standard

deviations were employed to describe the back ground information of students and other

related variables. Furthermore, independent sample t-test was used to compare the brand

preference of students and finally Chi-square test was used to see the relationship between

students’ background characteristics and brand reference.

3.7. Ethical Consideration

In ethical consideration the researcher informed the participants about the aim of the study

and they were participated based on their own willingness. Privacy and confidentiality

were maintained. In the beginning all legal permissions were secured. As per the work plan

and schedule procedures were followed by effectively undertaking the research process.

Confidentiality was censured by making the questionnaires anonymous and avoiding

personal identifications. The study participant was provided the right to discontinue filling

questionnaires if they want

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CHAPTER FOUR

RESULTS AND DISCUSSION

In this chapter, the data which was collected from secondary and preparatory school

students through closed ended questionnaire was analyzed using the analysis techniques of

frequency, percentage mean, standard deviation, Independent sample t-test and Chi-square

analysis. The purpose of the study was to assess the brand preference of soft drinks. To

achieve the objective of the study, 374 students were selected to participate in responding

the questionnaire and got 100% response rate.

4.1. Background Information of Respondents

In this section of the analysis, background information of the respondents such as sex, age,

educational level, families living place, students preferred brand, frequency of

consumption in a week and reasons for consumption are discussed Tables 2-5.

Table 2: Sex and Age of Students (n=374)

Variables Category n % Mean(+SD)


Sex Male 214 57.2
Female 160 42.8
Age 15-16 91 24.3 18.7(+2.3)
17-18 108 28.9
19-20 140 37.4
Above 20 35 9.4
Education Grade 9 86 23.0
Level Grade 10 122 32.6
Grade 11 92 24.6
Grade 12 74 19.8
Family Living Urban 233 62.3
Place Rural 141 37.7

Source: Survey Questionnaire, 2016

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As indicated in Table 2, the majority (57.2%) of respondents were male students whereas

42.8 % of them were female students. Furthermore, 37.4% of sampled students were under

the age group of 19-20 and 28.9% were in the age group of 17-18. The average age of

sampled students in the selected school was 18.7 with a standard deviation of 2.3.

Table 2 exhibits that 32.6 % of students were studying grade 10, 24.6% of students

studying grade 11, and 23% of students studying grade 9 and 19.8 % of students were

attending grade 12. Likewise, 62.3 % of students’ parents live in urban area whereas

37.7% of students’ parents live in rural area.

Table 3: Students Preferred Brand and Their Reasons for Brand Preference

Variables Category n %
Preferred Brand Coca Cola 207 55.3
Pepsi Cola 167 44.7
Total 374 100
Preference to the Taste 289 77.3
brand Price 18 4.8
Packaging 30 8.0
More popular 37 9.9
Total 374 100
Source: Survey Questionnaire, 2016

According to Table 3, the empirical data obtained from the survey indicate that 55.3% of

students preferred Coca Cola brand while 44.7% respondents implying that Pepsi Cola is

their preferred brand. An interesting observation made in this report is that the majority

(77.3%) of soft drink consumers preferred their brand based on its taste. In connection to

this finding Yglesias (2013) argue that Coke just has a flavor that most people like better,

and decades of brand-on-brand combat can’t change that.

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Table 4: Frequency of soft drink consumption in a week and reasons for consuming

Variables Category n %
Frequency of Once 154 41.2
consumption 2-3 97 25.9
in a week 4-5 67 17.9
6-7 56 15.0
Total 374 100
Reason for Feeling of thirst 65 17.4
Consuming Soft Parties and Celebration 155 41.5
Drinks With fast food 94 25.1
Without any reason 60 16.0
Total 374 100
Source: Survey Questionnaire, 2016

As shown in Table 4, a large number (41.2%) of soft drink consumers consume soft drinks

once in a week and 25.9% of them drink 2-3 times a week. The other 17.9% and 15.0% of

students consume soft drinks 4-5 and 6-7 times a week respectively. In the same table the

reasons for consuming soft drinks were indicated. Accordingly, 41.5% of the respondents’

reason for consuming soft drinks is parties and celebration, and 25.1% of respondents’

reason for consuming soft drinks is with fast foods. The other 17.4% and 16.0% of students

consume when feeling thirsty and without any reason respectively.

4.2. Descriptive Analysis

Under this topic descriptive analysis was used to summarize the variables regarding brand

equity and brand identity in terms of mean and standard deviation (SD). Moreover,

skewness and kurtosis were used to check whether the data is normally distributed or not

before comparing the students’ preference on Coca Cola and Pepsi Cola products using

independent sample t-test.

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Table 5: Descriptive analysis on students brand equity and brand identity

Skewness Kurtosis
Variables n Mean SD Std. Std.
Statistic Error Statistic Error

Brand Loyalty 374 3.844 .8038 0.353 0.181 0.180 0.359

Perceived Quality 374 3.623 .7084 0.182 0.181 -0.360 0.359

Price 374 3.836 .8635 -0.217 0.181 -0.276 0.359

Brand Awareness 374 3.820 .7641 0.253 0.181 -0.198 0.359

Satisfaction 374 3.423 .8773 0.324 0.181 0.224 0.359

Culture 374 3.321 .8864 0.202 0.181 -0.379 0.359

Self-Image 374 3.674 .7269 -0.311 0.181 -0.312 0.359

Brand Personality 374 3.600 .7583 0.272 0.181 -0.203 0.359

Source: Survey Questionnaire, 2016

Since the data collected with five point Likert Scale, the descriptive analysis is made by

using techniques of mean proposed by Al-Sayaad et al. (2006) based on the mean score

ranges as follows: From 1.00 to less than 1.80 “Strongly Disagree”, from 1.80 to less than

2.60 “Disagree”, from 2.60 to less than 3.40 “Neutral”, from 3.40 to less than 4.20 “Agree”

and from 4.20 to less than 5.00 “Strongly Agree”.

Brand loyalty is usually used to describe the often repeated purchase behavior of a

customer towards certain brand. The brand loyalty is measured when customer purchases

the product of a certain brand despite that other competitors brands have the same product

with the same function. Accordingly, Table 6 depicts that the mean value for brand loyalty

is 3.844. Thus it can be identified as respondents were loyal with their preferred brand. The

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Skewness and Kurtosis of the distribution were 0.353 and 0.180, which indicate that the

data recorded for the brand loyalty is approximately normally distributed.

Perceived quality is used to measure the level of student perceived quality of soft drink

brand, since customers are contented with a product when the product quality is good. The

mean value of perceived quality was 3.623. Thus, it can be identified that the preferred

brand were quality to the students. The Skewness and Kurtosis of the distribution were

0.182 and -0.360, which indicate that the data recorded for the perceived quality were

approximately normally distributed.

Price is designed to measure the soft drink value for money, if the customer thinks that the

product is worth the money or price they paid for. When considering the descriptive

analysis for price of a soft drink, the mean value of the distribution was 3.836. Thus it can

be identified that the respondents were agreed for the amount of money they spend for their

preferred brand. The Skewness and Kurtosis of the distribution were -0.217 and -0.276,

which indicate that the data recorded for price were approximately normally distributed.

Similarly, the mean value of brand awareness was 3.820. Thus, it can be identified that

brand awareness of students was “high”. The Skewness and Kurtosis of the distribution

were 0.253 and -0.198, which indicate that the data recorded for brand awareness were

approximately normally distributed. The mean value of satisfaction was 3.423. Thus, it can

be identified that students were satisfied by their preferred brand. The Skewness and

Kurtosis of the distribution were 0.324 and 0.224, which indicate that the data recorded for

satisfaction were approximately normally distributed. When considering the descriptive

analysis for culture, the mean value of the distribution was 3.321. Thus it can be identified

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that the respondents were indifferent for associating the preferred brand to their culture.

The Skewness and Kurtosis of the distribution were 0.202 and -0.379, which indicate that

the data recorded for price were approximately normally distributed.

The mean value of self-image was 3.674. Thus, it can be identified that students associate

their preferred brand to self- image. The Skewness and Kurtosis of the distribution were -

0.311 and -0.312, which indicate that the data recorded for satisfaction were approximately

normally distributed. When considering the descriptive analysis for brand personality, the

mean value of the distribution was 3.6. Thus it can be identified that the respondents were

agreed for their preferred brand personality. The Skewness and Kurtosis of the distribution

were 0.272 and -0.203, which indicate that the data recorded for brand personality were

approximately normally distributed.

4.3. Comparative Analysis of Pepsi Cola and Coca-Cola Products

In this section, comparison was made between two big brands in soft drink industry which

are Pepsi Cola and Coca Cola based on secondary and preparatory student brand

preference. The comparison was examined using independent sample t-test considering the

brand equity (brand loyalty, perceived quality, price, brand awareness and satisfaction) and

brand identity (culture, self-image and brand personality) dimensions.

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Table 6: Brand Loyalty of Students on their preferred Soft Drink

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
If I am going Coca
to buy a soft Cola 1(0.5) 8(3.9) 36(17.4) 78(37.7) 84(40.6) 4.14
drink, I will 1.72
choose my Pepsi (0.087)
preferred 3(1.8) 7(4.2) 30(18.0) 77(46.1) 50(29.9) 3.98
Cola
brand.
I will not 0.73
Coca
purchase 4(1.9) 7(3.4) 48(23.2) 88(42.5) 60(29.0) 3.93
Cola (0.467)
other brands
with similar
Pepsi
quality and 2(1.2) 12(7.2) 39(23.4) 68(40.7) 46(27.5) 3.86
price. Cola
I will not Coca 1.04
buy other 10(4.8) 15(7.2) 33(15.9) 95(45.9) 54(26.1) 3.81
Cola (0.297)
brands if my
preferred
soft drink is Pepsi
10(6.0) 21(12.6) 35(21.0) 46(27.5) 55(32.9) 3.69
not available Cola
at the store.
I consider Coca -1.15
myself to be Cola 14(6.8) 19(9.2) 53(25.6) 73(35.3) 48(23.2) 3.59
(0.253)
loyal to my
Pepsi
preferred 8(4.8) 18(10.8) 33(19.8) 61(36.5) 47(28.1) 3.72
soft drink. Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X = mean S= Standard Deviation

Source: Survey Questionnaire, 2016

As indicated on Table 6, the majority (78.3%) of coca cola brand customers and 76% of

Pepsi cola brand customers responded that they will choose their preferred brand if they are

going to buy a soft drink, whereas 6% of Pepsi cola brand customers and 4.4% of coca cola

brand customers will not choose their preferred brand. In addition, the average perception of

students preferred Coca cola brand (Mean= 4.14) and students preferred Pepsi cola brand

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(Mean=3.98) also showed that both of them agree on their brand loyalty that they will

choose their preferred brand if they are going to buy a soft drink. Furthermore, the t-test

also calculated to check whether the opinion difference exists between two groups or not.

Accordingly, the result (t- value= 1.72, p>0.05) revealed that both groups of students have

no statistically significant difference towards the given idea. Therefore, the result indicates

that both soft drink customers have similar willingness to their preferred brand.

Concerning purchasing behavior of students to other brands with similar quality and price,

about 71.5% of Coca cola brand customers and 68.2% Pepsi cola brand customers were

positively perceived that they will not purchase other brands with similar quality and price.

Contrarily, 8.4% of Pepsi cola brand customers and 5.3% of Coca cola brand customers

were disagree. Furthermore, as the mean result for students those preferred Coca cola

brand (Mean= 3.93) and students those preferred Pepsi cola brand (Mean=3.86) showed

that they will not change their brand even if the other brand has similar quality and price.

Furthermore, the results of t-test (t-value = 0.73, p>0.05) indicates that both groups of

students had the same response. Hence, this indicated that soft drink customers are loyal to

their preferred brand.

In line with purchasing other brands in the absence of preferred soft drink, the majority

(72.3%) of Coca cola brand customers and 60.4% of Pepsi cola brand customers were

agreed that they will not buy. Whereas, 18.6% of Pepsi cola brand customers and 12% Coca

cola brand customers were disagreed with the given idea. On the other hand, the average

perception of students those preferred Coca cola brand (Mean= 3.81) and students those

preferred Pepsi cola brand (Mean=3.69) showed that they will not buy other brands if their

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preferred soft drink is not available at the store. Furthermore, the t-test result (t-value =

1.04, p>0.05) revealed that both students have no statistically significant idea difference.

This implies that both brand customers will not buy other brands if their preferred soft drink

is not available at the store.

Students consider themself to be loyal to their preferred soft drink. In this manner, the

majority (64.6%) of Pepsi cola brand customers and 58.5% Coca cola brand customers were

agreed. Whereas, 16% of Coca cola brand customers and 15.6% of Pepsi cola brand

customers viewed as they did not consider themself to be loyal to their preferred soft drink.

As revealed in Table 7, the average response for students those preferred Pepsi cola brand

(Mean= 3.72) and for students those preferred Coca cola brand (Mean=3.59) shows that

both students replied as they consider themself to be loyal to their preferred soft drink.

Besides, the t-test result (t-value = -1.15, p>0.05) reveals both groups of students have no

idea difference because of statistical level of insignificance. Hence, both groups of students

consider themself to be loyal to their preferred soft drink.

As summary of brand loyalty, both soft drink brand customers have strong loyalty to their

preferred soft drink brand. However, Coca cola customers have shown slightly higher brand

loyalty than Pepsi cola brand customers. The results of independent sample t-test revealed

that both brand customers have equally loyal to their preferred brand. According to Aaker

(1991, p. 87) these consumers are categorized on the fourth level of brand loyalty because

the preference for the brand is based on the symbol, previous experience, or the logo of the

company. They are not vulnerable to the competitors.

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Table 7: Perceived Quality of Students on their preferred Soft Drink

Responses t-value
Preferred
Variables SD D N A SA X (S ) (P-
Brand
n(%) n(%) n(%) n(%) n(%) value)

My preferred Coca
21(10.1) 40(19.3) 45(21.7) 74(35.7) 27(13.0) 3.22
soft drink Cola 0.05
brand is high Pepsi (0.957)
quality. 16(9.6) 29(17.4) 53(31.7) 41(24.6) 28(16.8) 3.22
Cola
The quality Coca 2.42
of my 1 (0.5) 11(5.3) 66(31.9) 69(33.3) 60(29.0) 3.85
Cola (0.016)
preferred soft
drink brand Pepsi
1(0.6) 21(12.6) 58(34.7) 49(29.3) 38(22.8) 3.61
is consistent. Cola
My preferred Coca 2.75
3(1.4) 14(6.8) 37(17.9) 73(35.3) 80(38.6) 4.03
soft drink has Cola (0.006)
excellent Pepsi
features. 2(1.2) 14(8.4) 43(25.7) 72(43.1) 36(21.6) 3.75
Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X = mean S= Standard Deviation

Source: Survey data, 2016

Regarding preferred soft drink brand quality, 48.7% of Coca cola brand customers and

41.4% of Pepsi cola brand customers were positively perceived that they preferred high

quality brand soft drink. However, 29.4% of Coca cola brand customers and 27% of Pepsi

cola brand customers disagree with their preferred brand is high quality soft drink brand. In

addition, the average response of students those preferred Coca cola brand (Mean= 3.22)

and students preferred Pepsi cola brand (Mean=3.22) also showed that both groups of

students have neutral to the quality of their preferred soft drink brand. Furthermore, the t-

test was also calculated to check whether the opinion difference exists between two groups

or not. Accordingly, the result (t- value= 0.05, p>0.05) revealed that both groups of students

have no statistically significant difference towards the given idea. This indicated that both

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brand customers have the same perception towards the quality of their preferred soft drink

brand.

Both soft drink brand customers were requested weather the quality of their preferred soft

drink brand is consistent or not. Depending on this idea, 62.3% of coca cola brand

customers and 52.1% of Pepsi cola brand customers were agreed that the quality of their

preferred soft drink brand is consistent, whereas 13.2% of Pepsi cola brand customers and

5.8% coca cola brand customers were disagreed on consistency of their preferred soft drink

brand. In addition, the average perception of students preferred Coca cola brand (Mean=

3.85) and students preferred Pepsi cola brand (Mean=3.61) also showed that both groups of

students replied that the quality of their preferred soft drink brand is consistent.

Furthermore, the t-test was also calculated to check whether the opinion difference exists

between two groups or not. Accordingly, the t- test (t- value= 2.42, p<0.05) result revealed

that there is statistically significant difference between coca cola brand customers and Pepsi

cola brand customers regarding the consistency of their preferred brand quality. This

disclosed that coca cola brand has high consistency in its quality than Pepsi cola brands.

Regarding soft drink feature, about 73.9% of coca cola brand customers and 64.7% of Pepsi

cola brand customers agreed that their preferred soft drink has excellent features. On the

other hand, 9.6% Pepsi cola brand customers and 8.2% Coca cola brand customers viewed

as they disagree. As the mean result for students those preferred Coca cola brand (Mean=

4.03) and students those preferred Pepsi cola brand (Mean=3.75) implied, both group of

students agree on the given idea. The computed t-test (t-value = 2.75, p<0.05) also

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indicated that there is idea difference because of statistical level of significance. The result

disclosed that coca cola brand has better features than Pepsi cola brands.

As summary of perceived quality, both soft drink brand customers have agreed on the

quality of their preferred brand. However, Coca cola customers have higher brand quality

perception than Pepsi cola brand customers. The results of independent sample t-test

revealed out of three dimensions of perceived quality two of them show significant

difference. The scores disclose that coca cola brand has a leading score when compare to

Pepsi cola brand regarding this dimension. Pepsi cola brand also commands a high perceive

quality among its customers but not as high as Coca cola brand. Apéria & Back (2004, p.

47) notes that customer’s perceived quality drives profitability, there is a strong correlation

between the perceived quality and economic results.

Table 8: Price of a soft drink preferred by students

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
My preferred Coca
7(3.4) 16(7.7) 175(84.5) 8(3.9) 1(0.5) 2.90
soft drink Cola -1.149
brand is less
Pepsi (0.251)
costly than 2(1.2) 14(8.4) 143(85.6) 4(2.4) 4(2.4) 2.96
others. Cola
Considering Coca
what I would 5(2.4) 20(9.7) 32(15.5) 38(47.3) 52(25.1) 3.83
Cola -0.01
pay for my
preferred soft
(0.988)
drink, I get Pepsi
1(0.6) 12(7.2) 38(22.8) 79(47.3) 37(22.2) 3.83
much more I Cola
paid
Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree
X = mean S= Standard Deviation

Source: Survey data, 2016

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In line with preferred soft drink brand cost, about 84.5% of coca cola brand customers and

85.6% of Pepsi cola brand customers were answered that their preferred soft drink brand is

the same cost as other brand. Whereas, 11.1% of coca cola brand customers and 9.6% of

Pepsi cola brand customers were disagree that the preferred drink is less costly. The

average perception of students those preferred coca cola brand (Mean= 2.90) and students

those preferred Pepsi cola brand (Mean=2.96) showed that their response is neutral to the

cost of their preferred soft drink. In addition to this, the t-test result (t-value = -1.149,

p>0.05) revealed that both soft drink brand customers have no statistically significant idea

difference. This indicated that the price of both soft drink brands were almost the same.

As indicated on Table 8, about 72.4% of Coca cola brand customers and 69.5% of Pepsi

cola brand customers consider that they got much more than their money’s worth. On the

other hand, about 12.1% coca cola brand customers and 7.8% of Pepsi cola brand

customers were disagreed on the idea. As the mean result for students those preferred Coca

cola brand (Mean= 3.83) and students those preferred Pepsi cola brand (Mean=3.83)

showed that they consider their preferred soft drink as more than they paid. According to

the t-test result (t-value = -0.01, p>0.05) both groups of students have no statistically

significant idea difference. Therefore, the result indicates that both customers have the

same perception towards their preferred brand regarding the money they paid.

In summary, the customers of Coca-Cola and Pepsi Cola brand equally satisfied with the

price of their preferred soft drink. Even though, price is an important factor to choose one

brand over the other, the findings in this study revealed that Coca cola and Pepsi cola

brands have almost the same price.

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Table 9: Brand Awareness of Students on their Preferred Soft Drink

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
I am aware of Coca
4(1.9) 13(6.3) 41(19.8) 99(47.8) 50(24.2) 3.86
the preferred Cola -0.56
soft drink
Pepsi (0.577)
brand. - 6(3.6) 42(25.1) 80(47.9) 39(23.4) 3.91
Cola
I have clear Coca
image of the 6(2.9) 16(7.7) 40(19.3) 94(45.5) 51(24.6) 3.81
Cola
type of 0.61
person who
would use (0.544)
Pepsi
my preferred 5(3.0) 13(7.8) 42(25.1) 66(39.5) 41(24.6) 3.75
Cola
soft drink.
I have able to Coca
recognize my 6(2.6) 13(6.3) 42(20.3) 89(43.0) 5727.5) 3.86 1.69
Cola
preferred soft
drink among Pepsi (0.093)
other brand. 4(2.4) 15( 9.0) 42(25.1) 74(44.3) 32(19.2) 3.69
Cola
When I think
about soft Coca
5(2.4) 7(3.4) 23(11.1) 101(48.8) 71(34.3) 4.09
drink, my Cola
2.57
preferred soft
drink is the (0.011)
first brand Pepsi
5(3.0) 8(4.8) 30(18.0) 88(52.7) 36(21.6) 3.85
that comes to Cola
my mind.
I first chose Coca
the company 5(2.4) 116(80.2) 17(8.2) 13(6.3) 6(2.9) 2.27 0.401
Cola
which makes
Pepsi (0.688)
my preferred 6(3.6) 134(80.2) 14(8.4) 7(4.2) 6(3.6) 2.24
soft drink. Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X =mean S= Standard Deviation

Source: Survey data, 2016

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Concerning students’ awareness of their preferred soft drink brand, about 72% of Coca

cola brand customers and 71.3% of Pepsi cola brand customers were aware of their

preferred soft drink brand contrarily, 8.2% of students those preferred Coca cola brand and

3.6% of students those preferred Pepsi cola brand were not aware of the preferred soft

drink brand. As the mean result for students those preferred Coca cola brand (Mean= 3.86)

and students those preferred Pepsi cola brand (Mean=3.91) showed that both group of

students were aware of the preferred soft drink brand. Furthermore, the t-test result (t-value

= -0.56, p>0.05) showed that there is no statistically significant difference between coca

cola and Pepsi cola brands in terms of awareness level of its customers. This indicates that

both groups of students had the same level of awareness.

As Table 9 presents, the majority (70.1%) of students those preferred Coca cola brand and

64.1% of students those preferred Pepsi cola brand replied that they have clear image of the

type of person who would use their preferred soft drink, while, 10.6% of students those

preferred Coca cola brand and 10.8% of students those preferred Pepsi cola brand show

their disagreement. In addition, the mean score for students those preferred Coca cola

brand (Mean= 3.81) and for students those preferred Pepsi cola brand (Mean=3.75) showed

that both groups of students agree on the given idea. Furthermore, the t-test was also

calculated to check whether the opinion difference exists between the two groups or not.

Accordingly, the result is (t-value = 0.61, p>0.05). This inferred that both groups of soft

drink customers had the same attitude towards the idea that they have clear image of the

type of person who would use their preferred soft drink.

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Concerning the recognizing ability of respondents on their preferred soft drink among other

brands, about 70.5% of Coca cola brand customers and 63.5% of Pepsi cola brand

customers positively perceived as they have able to recognize their preferred soft drink

among other brand, contrarily, 8.9% of students those preferred Coca cola brand and 5.8%

of students those preferred Pepsi cola brand were disagree. Furthermore, the average

perception of students those preferred Coca cola brand (Mean= 3.86) and of students those

preferred Coca cola brand (Mean=3.69) showed their agreement on the given idea.

According to the t-test result (t-value = 1.69, p>0.05) both groups of students have no

statistically significant idea difference. Hence, both soft drink brand customers have almost

similar ability to recognize their preferred brand.

When students think about soft drink, their preferred soft drink is the first brand that comes

to their mind. In connection to this idea, the majority (83.1%) of Coca cola brand

customers and 74.3% of Pepsi cola brand customers positively perceived their agreement.

Whereas, 5.8% Coca cola brand customers and 7.8% of Pepsi cola brand customers

disagreed with the given idea. The average score for students those preferred Coca cola

brand (Mean= 4.09) and Pepsi cola brand (Mean=3.85) showed that both groups of

students can easily remember the brand of their preferred soft drink. However, the

independent sample t-test result (t-value = 2.57, p<0.05) revealed that both groups of

students have idea difference because of statistical level of significance. This indicated that

coca cola customers can remember their brand than Pepsi cola customers. In connection

this this finding, Paracha, Waqas, Khan, & Ahmad (2012) indicated that coca cola

customers could remember their brand easily because of repeated advertisement of coke.

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As observed from Table 9, about 82.6% of Coca cola brand customers and 83.8% of Pepsi

cola brand customers perceived that their first chose is not the company which makes their

preferred soft drink. On the other hand, 9.2% Coca cola brand customers and 7.8% of Pepsi

cola brand customers first chose the company which makes their preferred soft drink.

Furthermore, the mean score for students those preferred Coca cola brand (Mean = 2.27)

and students those preferred Pepsi cola brand (Mean=2.24) shows the idea of

disagreement. An independent sample t-test was conducted to determine the extent to

which significant differences existed between the mean scores of students those preferred

Coca cola brand and of students those preferred Pepsi cola brand. In light of this, the result

(t-value = 1.55, p>0.05) revealed that both group of students those preferred Coca cola

brand and students those preferred Pepsi cola brand have the same response towards the

given idea. This disclosed that the soft drink brand customers have little awareness about

the company which makes their preferred soft drink brand.

As summary of brand awareness, both soft drink brand customers have equal level of

awareness about its preferred brand and the brand company. However, coca cola brand

customers can remember their preferred soft drink brand than Pepsi cola customers. This is

because Coca Cola Company advertises its products repeatedly in attractive manner. The

record scores show that 83.1 % of coca cola brand users agreed that they think about coca

cola soft drink brand when soft drink is mentioned. This supports Al-azzawi & Anthony,

(2012) view that one advantages of brand awareness is that consumer think about the

product when they think about the category. The reason for high coca cola brand awareness

stem from the fact that respondent could easily remember the brand with it logo.

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Table 10: Satisfaction of Students on their Preferred Soft Drink

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
I would
recommend Coca
2(1.0) 17(8.2) 59(28.5) 86(41.5) 43(20.8) 3.73
my Cola
preferred 1.99
soft drink (0.048)
brand to my Pepsi
6(3.6) 16(9.6) 55(32.9) 63(37.7) 27(16.2) 3.53
friends and Cola
relatives.
I would say
positive Coca
16(7.7) 22(10.6) 58(28.0) 68(32.9) 43(20.8) 3.48
things Cola 2.04
about my
preferred (0.042)
soft drink Pepsi
10(6.0) 37(22.2) 48(28.7) 47(28.1) 25(15.0) 3.24
brand. Cola

I would
recommend Coca
20(9.7) 23(11.1) 65(31.4) 72(34.8) 27(13.0) 3.30
my Cola 0.95
preferred
soft drink (0.345)
brand to Pepsi
18(10.8) 28(16.8) 43(25.7) 60(35.9) 18(10.8) 3.19
someone. Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X =mean S= Standard Deviation

Source: Survey data, 2016

Students would recommend their preferred soft drink brand to their friends and relatives. In

connection to this idea, about 62.3% of Coca cola brand customers and 53.9% of Pepsi cola

brand customers confirmed, while 9.2% of students those preferred Coca cola brand and

13.2% of students those preferred Pepsi cola brand expressed their disagreement. The mean

score for students those preferred Coca cola brand (Mean= 3.73) and for of students those

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preferred Pepsi cola brand (Mean=3.53) showed that both groups of students agree on the

given idea. Furthermore, the t-test was also calculated to check whether the agreement

difference exists between two groups or not. Accordingly, the results of the t -test (t-value

= 1.99, p<0.05) revealed that there is statistically significant difference between two brand

customers in recommending their preferred soft drink brand to their friends and relatives.

This indicated that coca cola brand customers recommend their preferred brand better than

Pepsi cola customers.

As Table 10 presents, about 53.7% of students those preferred Coca cola brand and 43.1%

of students those preferred Pepsi cola brand agreed that they would say positive things

about their preferred soft drink brand. Contrarily, 18.3% of students those preferred Coca

cola brand and 28.2% of students those preferred Pepsi cola brand show their

disagreement. Furthermore, the average perception of students those preferred Coca cola

brand (Mean= 3.48) and for students those preferred Pepsi cola brand (Mean=3.24) implies

that coca cola brand customers are neutral to say positive things about their preferred soft

drink brand, but coca cola brand customers agreed to say positive things about their

preferred soft drink brand. In addition to this, the t-test result (t-value = 2.04, p<0.05)

revealed that there is statistically significant difference the satisfaction level of both brand

customers. This indicated that coca cola brand customers say positive things about their

preferred soft drink brand than Pepsi cola customers.

According to the results of Table 10, about 47.8% of students those preferred Coca cola

brand and 46.7% of students those preferred Pepsi cola brand were perceived that they

would recommend their preferred soft drink brand to someone, where as 20.8% of students

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those preferred Coca cola and 27.6% of students those preferred Pepsi cola were disagree

on the given idea. On the other hand, the average perception of students those preferred

Coca cola (Mean= 3.30) and students those preferred Pepsi cola (Mean=3.19) showed that

they were neutral to recommend their preferred soft drink brand to someone. The t-test

result (t-value = 0.95, p>0.05) also showed that they have no agreement difference.

In summary, the overall findings of Table 10 exhibit that coca cola brand customers are

highly satisfied with the product and would recommend it to their friends and relatives. For

Pepsi cola brand customers the score is slightly lower than coca cola brand customers.

Table 11: Culture of Students on their Preferred Soft Drink

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
My preferred Coca
21(10.1) 35(16.9) 69(33.3) 55(26.6) 27(13.0) 3.15
soft drink Cola 1.00
brand matches
my social Pepsi (0.317)
16(9.6) 38(22.8) 51(30.5) 48(28.7) 14(8.4) 3.04
status. Cola
I associate Coca
my preferred 20(9.7) 37(17.9) 74(35.7) 50(24.2) 26(12.6) 3.12
Cola
soft drink 0.775
with my (0.091)
culture. Pepsi
16(9.6) 38(22.8) 52(31.1) 47(28.1) 14(8.4) 3.03
Cola
I associate Coca
my preferred 17(8.2) 22(10.6) 76(36.7) 64(30.9) 28(13.5) 3.31
Cola 0.82
soft drink to
its country of (0.411)
Pepsi
origin. 13(7.8) 29(17.4) 51(30.5) 57(34.1) 17(10.2) 3.22
Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X =mean S= Standard Deviation
Source: Survey data, 2016

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The results of Table 11 indicated that 39.6% of Coca cola brand customers and 32.4% of

Pepsi cola brand customers agreed that their preferred soft drink brand matches their social

status. While, 27% of Coca cola brand customers and 32.4% of Pepsi cola brand customers

were disagreed. Furthermore, the mean for students those preferred Coca cola brand

(Mean= 3.15) and for students those preferred Pepsi cola (Mean=3.04) showed that they

are neutral for their preferred soft drink brand whether it matches their social status or not.

The results of t test (t-value = 1.00, p>0.05) revealed that there is no statistically significant

idea difference between customers. This indicated that soft drink brand customers have

neutral idea regarding the match of their preferred soft drink to their social status.

Regarding students association of their preferred soft drink brand with their culture, about

36.8% of Coca cola brand customers and 36.5% Pepsi cola brand customers were

perceived their agreement. Contrarily, 27.6% of Coca cola brand customers and 32.4% of

Pepsi cola brand customers were disagreed. In addition to this, the mean score for students

those preferred Coca cola brand (Mean= 3.12) and for students those preferred Pepsi cola

brand (Mean=3.03) implies that students have neutral perception towards the association

their preferred soft drink with their culture. The t-test result (t-value = 2.25, p<0.05)

implies that both group of students have similar idea towards the given idea.

Associate preferred soft drink to its country of origin. In respect to this idea, about 44.4%

of Coca cola brand customers and 44.3% of Pepsi cola brand customers confirmed.

Whereas, 18.8% of Coca cola brand customers and 25.2% of Pepsi cola brand customers

responded as they did not associate their preferred soft drink to its country of origin. On the

other hand, the average perception of Coca cola brand customers (Mean= 3.31) and Pepsi

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cola brand customers (Mean=3.22) showed that they have neutral association of their

preferred soft drink to its country of origin. The t-test result (t-value = 0.82, p>0.05) also

indicated that both students have no statistically significant idea difference.

In summary, the comparison of the empirical data on coca cola and Pepsi cola brand soft

drinks disclosed that both brand has similar culture association to their country-of-origin.

Table 12: Self Image of Students on their Preferred Soft Drink

Responses t-value
Preferred
Variables SD D N A SA X (S ) (P-
Brand
n(%) n(%) n(%) n(%) n(%) value)

My preferred Coca 2.36


- 8(3.9) 25(12.1) 106(51.2) 68(32.9) 4.13
soft drink Cola
brand is my Pepsi (0.019)
interest. 2(1.2) 4(2.4) 32(19.2) 93(55.7) 36(21.6) 3.94
Cola
I would feel Coca
comfortable 8(3.9) 10(4.8) 46(22.2) 87(42.0) 56(27.1) 3.84
Cola
by drinking
1.31
my
(0.192)
preferred Pepsi
3(1.8) 10(6.0) 47(28.1) 80(47.9) 27(16.2) 3.71
soft drink Cola
brand.
My Coca
preferred 6(2.9) 11(5.3) 49(23.7) 82(39.6) 59(28.5) 3.86
Cola 0.67
soft drink is
more than
0.501)
just a Pepsi
2(1.2) 7(4.2) 46(27.5) 81(48.5) 31(18.6) 3.79
product of Cola
me.
Other Coca
people judge 22(10.6) 35(16.9) 74(35.7) 58(28.0) 18(8.7) 3.07
Cola 0.51
me by the
kind of soft (0.607)
drink I Pepsi
20(12.0) 35(21.0) 51(30.5) 45(26.9) 16(9.6) 3.01
preferred. Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X =mean S= Standard Deviation
Source: Survey data, 2016
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As Table 12 result shows, out of the total sampled respondents’ majority (84.1%) of

students those preferred Coca cola brand and 77.3% of students those preferred Pepsi cola

brand were agreed that their preferred soft drink is their interest. Whereas, 16% of students

those preferred Coca cola brand and 3.6% of students those preferred Pepsi cola brand

viewed their disagreement. As the average response for students those preferred Coca cola

brand (Mean= 4.13) and for students those preferred Pepsi cola brand (Mean=3.94) shows

that both brand customers have high interest on their preferred soft drink brand. Besides,

the t-test result (t-value = 2.36, p<0.05) revealed that there is statistically significant

difference between coca cola and Pepsi cola customers regarding the degree of agreement

on the interests of their preferred brand. This implies that coca cola brand customers have

higher interest for their preferred brand.

Concerning customers feeling of their preferred soft drink brand, about 69.1% of students

those preferred Coca cola brand and 55.8% of students those preferred Pepsi cola brand

were positively perceived that they would feel comfortable by drinking their preferred soft

drink brand. Contrarily, 8.7% of students those preferred Coca cola brand and 7.8% of

students those preferred Pepsi cola brand were disagree. In addition, as the mean score for

students those preferred Coca cola brand (Mean= 3.84) and students those preferred Pepsi

cola brand (Mean=3.71) showed that they feel comfortable by drinking their preferred soft

drink brand. Furthermore, the t-test result (t-value = 1.31, p>0.05) indicates that there is no

statistically significant difference between soft drink brand customers regarding their

feeling towards their preferred soft drink. Hence, one can be understood that both brand

customers feel comfortable by drinking their preferred soft drink brand.

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In line with self-image of students on product, the majority (68.1%) of students those

preferred Coca cola brand and 67.1% of students those preferred Pepsi cola brand were

agreed that their preferred brand is more than just a product of me. Whereas, 8.2% of

students those preferred Coca cola brand and 5.4% of students those preferred Pepsi cola

brand were disagreed with the given idea. On the other hand, the average perception of

students those preferred Coca cola brand (Mean= 3.86) and students those preferred Pepsi

cola brand (Mean=3.79) showed that soft drink brand customers believe their preferred soft

drink is more than just a product of them. Furthermore, the t-test result (t-value = 0.67,

p>0.05) revealed that both students have no statistically significant idea difference. This

discloses that their preferred soft drink is more than just a product of them.

As indicated on Table 12, 36.7% of students those preferred coca cola brand and 36.5% of

students those preferred Pepsi cola brand responded that other people judge them by the

kind of soft drink they preferred, whereas 33% of students those preferred Pepsi cola brand

and 25.7% of students those preferred Coca cola brand were disagreed. In addition, the

average perception of students preferred Coca cola brand (Mean= 3.07) and students

preferred Pepsi cola brand (Mean=3.01) also showed neutral to peoples judgment by their

preferred soft drink. Furthermore, the t-test was also calculated to check whether the

opinion difference exists between two groups or not. Accordingly, the result (t- value= 0.51,

p>0.05) revealed that both groups of students have no statistically significant difference

towards the given idea. Therefore, the result indicates that the judgment of other people to

customers by the kind of soft drink they preferred is neutral.

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As summary of self-image, both customers believed that they feel comfortable by drinking

their preferred soft drink and they are not judged by the type of soft drink consumed. But,

coca cola brand customers have higher interest for their preferred brand. In connection to

self-image Apéria & Back (2004, p. 65) pointed out that self-image is the consumer

internal mirror and creates picture of themselves through the attitude to the brand they use.

Table 13: Brand Personality of Students on their Preferred Soft Drink

Responses
Preferred t-value
Variables SD D N A SA X (S )
Brand (P-value)
n(%) n(%) n(%) n(%) n(%)
Sincerity Coca
2(1.0) 21(10.1) 48(23.2) 90(43.5) 46(22.2) 3.76
Cola 2.21
Pepsi (0.028)
5(3.0) 15(9.0) 49(29.3) 80(47.9) 18(10.8) 3.54
Cola
Excitement Coca
3(1.4) 23(11.1) 45(21.7) 93(44.9) 43(20.8) 3.72 1.69
Cola
Pepsi (0.092)
4(2.4) 18(10.8) 49(29.3) 73(43.7) 23(13.8) 3.56
Cola
Toughness Coca
4(1.9) 23(11.1) 50(24.2) 92(44.4) 38(18.4) 3.66 0.93
Cola
Pepsi (0.353)
6(3.6) 12(7.2) 55(32.9) 69(41.3) 25(15.0) 3.57
Cola
Competence Coca
3(1.4) 23(11.1) 67(32.4) 82(39.6) 32(15.5) 3.57 -1.03
Cola
Pepsi (0.918)
2(1.2) 14(8.4) 58(34.7) 72(43.1) 21(12.6) 3.57
Cola
Sophistication Coca
5(2.4) 20(9.7) 64(30.9) 75(36.2) 43(20.8) 3.63 2.91
Cola
Pepsi (0.004)
5(3.0) 33(19.8) 49(29.3) 62(37.1) 18(10.8) 3.33
Cola

Note: SD = Strongly Disagree D = Disagree N = Neutral A = Agree SA = Strongly Agree


X =mean S= Standard Deviation

Source: Survey data, 2016

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The first dimension of brand personality is brand sincerity. This means genuine, honest,

wholesome and cheerful come to mind when thinking of the traits associated with this

dimension. Concerning sincerity, about 65.7% of students those preferred Coca cola brand

and 58.7% of students those preferred Pepsi cola brand were responded as their preferred

soft drink is characterized by sincerity, contrarily, 11.1% of students those preferred Coca

cola brand and 12% of students those preferred Pepsi cola brand were disagreed. As the

mean score for students those preferred Coca cola brand (Mean= 3.76) and students those

preferred Pepsi cola brand (Mean=3.54) showed that both group of students were

responded as their preferred soft drink is characterized by sincerity. However, the t-test

result (t-value = 2.21, p<0.05) revealed that there is statistically significant difference

between coca cola and Pepsi cola customers regarding the degree of agreement. This

indicated coca cola customers have higher perception to their preferred brand genuineness,

honesty, wholesomeness and cheerfulness that come to their mind when they are thinking

of the traits associated with this dimension.

The second dimension of brand personality is brand excitement which contains such traits

as playful, daring, imaginative, and spirited. In this manner, the majority (65.7%) of

students those preferred Coca cola brand and 57.5% of students those preferred Pepsi cola

brand replied as they their preferred soft drink is characterized by excitement, while, 12.5%

of students those preferred Coca cola brand and 13.2% of students those preferred Pepsi

cola brand show their disagreement. In addition, the mean score for students those

preferred Coca cola brand (Mean= 3.72) and for students those preferred Pepsi cola brand

(Mean=3.56) showed that both groups of students agree on the given idea. Furthermore,

the t-test was also calculated to check whether the opinion difference exists between the

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two groups or not. Accordingly, the result is (t-value = 1.69, p>0.05). This implied that

both groups of students had the same attitude towards the idea that their preferred soft

drink is characterized by excitement.

The third dimension of brand personality is brand toughness. Powerful, forceful and potent

come to mind when thinking of the traits associated with this dimension. In line with

toughness, about 62.8% of students those preferred Coca cola brand and 56.3% of students

those preferred Pepsi cola brand positively perceived as their preferred soft drink is

characterized by toughness, contrarily, 13% of students those preferred Coca cola brand

and 10.8% of students those preferred Pepsi cola brand were disagree. Furthermore, the

average perception of students those preferred Coca cola brand (Mean= 3.66) and of

students those preferred Coca cola brand (Mean=3.57) showed their agreement on the

given idea. According to the t-test result (t-value = 0.93, p>0.05) both groups of students

have no statistically significant idea difference. Hence, one can be understand that, the

calculated t-value and the insignificant p-value shows the agreement of students on the idea

that their preferred soft drink is characterized by ruggedness.

The fourth dimension of brand personality is brand competence. The attributes represented

by this brand personality are intelligence, success, reliability and expertise. In connection

to this idea, about 55.1% of students those preferred Coca cola brand and 55.7% of

students those preferred Pepsi cola brand responded as their preferred soft drink is

characterized by competence. Whereas, 12.5% of students those preferred Coca cola brand

and 9.6% of students those preferred Pepsi cola brand were disagreed with the given idea.

The average mean for students those preferred Coca cola brand (Mean= 3.57) and for

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students those preferred Pepsi cola brand (Mean=3.57) showed that both groups of students

agreed on the give idea. In addition to this the independent sample t-test result (t-value = -

1.03, p>0.05) revealed that both groups of students have no idea difference. This indicated

that both brand customers believed that their preferred brand is still in the market because

of its competence.

The final dimension of brand personality is brand sophistication. Common characteristics

associated with this dimension include charming, refined, elegant, and poise. As observed

from Table 14, about 57% of students those preferred Coca cola brand and 47.9% of

students those preferred Pepsi cola brand replied as their preferred soft drink is

sophisticated. On the other hand, 12.7% of students those preferred Coca cola brand and

22.8% of students those preferred Pepsi cola brand were answered that their preferred soft

drink is not sophisticated. Furthermore, the mean score for students those preferred Coca

cola brand (Mean= 3.63) and students those preferred Pepsi cola brand (Mean= 3.33)

shows that coca cola brand customers agreed but Pepsi cola customers were neutral.

Furthermore, the t- test result (t-value = 2.91, p<0.05) revealed that there is statistically

significant difference in the degree of agreement between coca cola and Pepsi cola brand

customers. This discloses that coca cola customers have higher perception to their

preferred brand sophistication.

In summary, the overall findings of brand personality exhibit that coca cola brand

customers are scored better score. However, Pepsi cola brand exhibits almost the same

level of three personality traits as coca cola brand namely, excitement, toughness and

competence.

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4.4. The Relationship between Brand Preference and Students
Background Information

In this section, the relationship between brand preference and students background

information was examined using Chi-square test of independent. The results were shown in

Table 14.

Table 14: Background Information of Students and their Preferred Soft Drink (n=374)
Preferred Brand
Variables Coca Cola Pepsi Cola  2Cal p-value
n % n %
Sex 0.559 0.455
Male 122 58.9 92 55.1
Female 85 41.1 75 44.9
Age 2.458 0.483
15-16 45 21.7 46 27.5
17-18 59 28.5 49 29.3
19-20 81 39.1 59 35.3
Above 20 22 10.6 13 7.8
Education Level 3.706 0.295
Grade 9 42 20.3 44 26.3
Grade 10 69 33.3 53 31.7
Grade 11 49 23.7 43 25.7
Grade 12 47 22.7 27 16.2
Family Living Place 10.420 0.001
Urban 144 69.6 89 53.3
Rural 63 30.4 78 46.7

Frequency of consumption
13.449 0.004
in a week
Once 75 36.2 79 47.3
2-3 48 23.2 49 29.3
4-5 43 20.8 24 14.4
6-7 41 19.8 15 9.0

Source: Survey data, 2016

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From the survey results it is found that 58.9% of male students and 41.1 % of female

students preferred Coca Cola brand whereas, 55.1% of male students and 44.9% of female

students preferred Pepsi Cola brand. Even though male students preferred coca cola brand

than female students this difference was not statistically significant (  2 Cal = 0.56, p>0.05).

This shows that sex of the students has no relationship with brand preference of soft drinks.

This result is consistent with the findings of Paracha, Waqas, Khan, & Ahmad (2012) and

they argued that there is no association between preferred cola and gender.

According to table results (Table 14), about 39.1% of Coca Cola customers and 35.3% of

Pepsi Cola customers were under the age group of 19-20. Also 10.6% of Coca Cola

customers and 7.8% of Pepsi Cola customers were above 20. Whereas 28.5% of Coca

Cola customers and 29.3% of Pepsi Cola customers were under the age group of 17-18 and

21.7% of Coca Cola customers and 27.5% of Pepsi Cola customers were under the age

group of 15-16. This indicated that younger students prefer Pepsi Cola brand than Coca

Cola brand. However, this result is not statistically significant (  2 Cal = 0.46, p>0.05). In

connection to this finding Andersson, Arvidsson, and Lindström (2006) disclosed that the

youngest age group particularly have a more positive attitude towards Pepsi on the whole,

whereas the oldest age group are more positive towards Coca-Cola.

Regarding the relationship between education level and brand preference of students, about

33.3% of Coca Cola customers and 31.7% of Pepsi Cola customers were grade 10 students.

Also 22.7% of Coca Cola customers and 16.2% of Pepsi Cola customers were grade 12

students. Whereas 23.7% of Coca Cola customers and 25.7% of Pepsi Cola customers

were grade 11 students and 20.3% of Coca Cola customers and 26.3% of Pepsi Cola

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customers were grade nine students. The result indicated that grade 10 and 12 students

were coca cola brand customers. However, this result is not statistically significant (  2 Cal =

3.71, p>0.05).

Respondents were also asked about their family living place, accordingly 69.6% of

students whose families are living in urban and 30.4% of students whose families are living

in rural prefer Coca Cola brand. In contrast, 53.3% of respondents whose families are

living in urban and 46.7% of students whose families are living in rural prefer Pepsi Cola

brand. Furthermore, the Chi-square analysis ( x 2 = 10.42, p<0.05) shows that family living

place of students and students brand preference has statistically significant association.

This indicated that those students from rural area were Pepsi Cola customers and those

students from urban area were Coca Cola customers. In contrary to this result the findings

of Hector, Rangan, Louie, Flood, & Gill (2009) revealed that there were no significant

differences in soft drink consumption patterns between people living in urban areas

compared to those living in rural/remote areas. This is because the frequency of

advertisement of cola brands were similar both rural and urban population of Australia.

As presented in Table 14, about 36.2% of Coca Cola brand customers and 47.3% of Pepsi

Cola brand customers consume their preferred brand once in a week whereas, 19.8% of

Coca Cola brand customers and 9.0% of Pepsi Cola brand customers consume their

preferred brand almost every day (6-7 days a week). The Chi-square value ( x 2 = 13.45,

p<0.05) indicated that frequency of consumption in a week and brand preference has

statistically significant relationship. This indicated that Coca Cola brand customers

consume frequently than Pepsi Cola customers.

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CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents summary of major findings, conclusion and recommendations of the

study. In this part, major findings of the study were presented based on the analysis and

interpretation of the results in previous chapter (Chapter 4).

5.1. Summary of Major Findings

The basic purpose of this study is to assess the consumers’ brand preference of soft drinks:

A comparative analysis of Coca cola and Pepsi cola products among high school students.

A total of 374 student consumers were participated in responding the questionnaire and the

collected data were analyzed using the analysis techniques of frequency, percentage, mean,

standard deviation, independent sample t-test and Chi-square analysis. Based on the

information from analysis and interpretation parts, the following summaries are made:

 The majority (57.2%) of respondents were male students. The average age of

sampled students in the selected school was 18.7 with a standard deviation of 2.3.

The majority (62.3%) of students’ parents live in urban area (Table 1).

 The majority (55.3%) of students’ preferred Coca Cola brand. An interesting

observation made in this report is that the majority (77.3%) of soft drink consumers

preferred their brand based on its taste (Table 3).

 A large number (41.2%) of soft drink consumers consume soft drinks once in a

week and 25.9% of them drink 2-3 times a week. About 41.5% of the respondents’

consume soft drinks is parties and celebration, and the other 25.1% of respondents’

consume soft drinks with fast foods (Table 3).

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 The results of brand equity indicated that soft drink consumers are loyal to their

preferred brand, get quality product, happy with price of a product, aware about its

preferred brand and satisfied being a consumer of its preferred brand (Table 4).

 The results of brand identity indicated that soft drink consumers have neutral

cultural association to their preferred brand. However they have high self-image

and good brand personality (Table 4).

 Both soft drink brand customers have strong loyalty to their preferred soft drink

brand. Coca cola customers have shown slightly higher brand loyalty than Pepsi

cola brand customers however it is not supported by statistical evidence. The results

of independent sample t-test revealed that both brand customers have equally loyal

to their preferred brand (Table 6).

 Regarding perceived quality, both soft drink brand customers have agreed on the

quality of their preferred brand. However, Coca cola customers have higher brand

quality perception than Pepsi cola brand customers. The results of independent

sample t-test revealed out of three dimensions of perceived quality two of them

show significant difference. The scores disclose that coca cola brand has a leading

score when compare to Pepsi cola brand regarding this dimension. Pepsi cola brand

also commands a high perceive quality among its customers but not as high as Coca

cola brand (Table 7).

 With reference to price of a soft drink, the customers of Coca-Cola and Pepsi Cola

brand equally satisfied with the price of their preferred soft drink. Even though,

price is an important factor to choose one brand over the other, the findings in this

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study revealed that Coca cola and Pepsi cola brands have almost the same price

(Table 8).

 Concerning brand awareness, both soft drink brand customers have equal level of

awareness about its preferred brand and the brand company. However, coca cola

brand customers can remember their preferred soft drink brand than Pepsi cola

customers. This is because Coca Cola Company advertises its products repeatedly

in attractive manner. The record scores show that 83.1 % of coca cola brand users

agreed that they think about coca cola soft drink brand when soft drink is

mentioned (Table 9).

 On the subject of soft drink brand customers’ satisfaction level, coca cola brand

customers are highly satisfied with the product and would recommend it to their

friends and relatives. For Pepsi cola brand customers the score is slightly lower

than coca cola brand customers (Table 10).

 With reference to culture, the comparison of the empirical data on coca cola and

Pepsi cola brand soft drinks disclosed that both brand has similar culture

association to their country-of-origin (Table 11).

 As regards to self-image, both customers believed that they feel comfortable by

drinking their preferred soft drink and they are not judged by the type of soft drink

consumed. But, coca cola brand customers have higher interest for their preferred

brand. In connection to self-image Apéria & Back (2004, p. 65) pointed out that

self-image is the consumer internal mirror and creates picture of themselves

through the attitude to the brand they use (Table 12).

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 In relation to brand personality of soft drinks, coca cola brand customers are scored

better score. However, Pepsi cola brand exhibits almost the same level of three

personality traits as coca cola brand namely, excitement, toughness and competence

(Table 13).

 Regarding the relationship between sex and brand preference, there is no statistical

significance were observed (  2 Cal = 0.56, p>0.05). This shows that sex of the

students has no relationship with brand preference of soft drinks (Table 14).

 Concerning the relationship between age and brand preference, the result is not

statistically significant (  2 Cal = 0.46, p>0.05) (Table 14).

 Regarding the relationship between education level and brand preference of

students, grade 10 and 12 students were coca cola brand customers. However, this

result is not supported by statistically evidence (  2 Cal = 3.71, p>0.05) (Table 14).

 The results of the Chi-square analysis revealed that family living place of students

and students brand preference has statistically significant association ( x 2 = 10.42,

p<0.05). This indicated that those students from rural area were Pepsi Cola

customers and those students from urban area were Coca Cola customers (Table

14).

 As presented in Table 14, the results of the Chi-square value ( x 2 = 13.45, p<0.05)

indicated that frequency of consumption in a week and brand preference has

statistically significant relationship. This indicated that Coca Cola brand customers

consume frequently than Pepsi Cola customers.

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5.2. Conclusion

Coca cola is the best brand for Tabor high school students. One of the reasons is that

students like Coca cola as its taste is very good. Thus the producer should focus on good

taste so that it can capture the major part of the market. Another reason is that Coke also

acts as refreshment to students which influence on them to preferred coke. Frequency of

advertisement is also important factor for coke customer to choose their brand. Coca cola

customer used the brand not only to fill their basic thirst but also for study purpose.

Each of the brand equity and identity dimensions of coca cola brand soft drinks when

compared to Pepsi cola brand equity and identity dimensions reveals that coca cola brand

has relatively high brand equity and brand identity than Pepsi cola brand. Coca cola has

built strong brand on the three component of brand equity such as perceived quality, brand

awareness and satisfaction. This provides value to the customer by enhancing satisfaction

and confidence in purchase decision and to the firm by enhancing competitive advantage.

Coca cola has also strong brand on the two component of brand identity such as self-image

and brand personality.

Living place of students’ family and frequency of soft drink consumption per a week has

significant relationship with brand preference of students. Those students from rural area

were Pepsi Cola brand customers and those students from urban area were Coca Cola

brand customers. Coca Cola brand customers consume frequently than Pepsi Cola

customers.

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5.3. Recommendations

Based on the findings of the study, the researcher suggests the following recommendations

to ensure the profitability of each soft drink brand producers based on the needs of their

customers.

 Pepsi cola brand producers should concentrate on brand loyalty and perceived

quality. Students have high brand loyalty towards a brand if they are satisfied with

the product delivered by it. This is why Pepsi cola producers should focus their

strategy to create or attract loyal customers which can be done through delivering a

high quality products, this will result in establishing a long term commitment with

loyal customers who will not switch easily to another brand, compared to non-loyal

customer who can switch easily. This will lead in increasing the sales volume of

Pepsi cola brand and would give that brand the chance to present its soft drink in

the market with a premium price.

 In the aspect of brand awareness, it is recommended that Pepsi cola producers

should embark on intensive marketing campaign to create stronger brand awareness

and brand image. The campaign should be based on promoting soft drinks on

traditional media such as paid messages designed and presented through television

networks, radio stations, newspapers and magazines. Additionally, companies use

support media in ongoing campaigns, such as billboards, directories and cars.

Sponsoring major events and community activities also serve as promotional

opportunities for companies as well.

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 Pepsi cola consumers were less satisfied than coca cola customers. Relatively

satisfied customers understand and remember an image of the brand as an accepted,

successful product which will be around and will be able to afford service back up

and product improvement. Therefore, Pepsi cola producers should work to satisfy

their customers.

Scope for Further Research

This study looked at limited number of variables. The researcher recommends further

research to investigate the other factors that affect the preference of soft drink industries.

Equally, further research should be carried out in other types of respondents at organization

and household level.

70

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APPENDICES
Appendix I: Questionnaire for Students

Hawasa University
School of Graduate Studies
Masters of Business Administration

This questionnaire is designed on the thesis title of “Assessment of consumers’ brand

preference of soft drinks: Comparative analysis of Pepsi cola and Coca-cola products

among high school students for the partial fulfillment of Masters of Business

Administration in Marketing Management. Therefore, your cooperation in fulfilling the

questions is vital for the successful accomplishment of this thesis. Your response will be

kept confidential and it is only for academic purpose.

Thank you for your cooperation!

PART I: Background Information of students

Instruction: Please show your answer by circling the appropriate number and filling the
blank.
1. Your Sex 1/ Male 2/ Female
2. Your age _______________________
3. Educational level 1/ Grade 9 2/Grade 10 3/Grade 11 4/ Grade 12
4. Living place of your family 1/ Urban 2/ Rural
5.Do you drink soft drinks 1/ Yes 2/ No
6. If your answer is” Yes” for 1/ Coca cola( Coca, Fanta, Sprite)
Q-4 what is your best soft drink? 2/ Pepsi cola( Pepsi,Mirinda,7up)
7. Why you prefer your brand? 1/ Taste 2/Price 3/Packaging 4/ Popularity
8. Frequency of consumption in a week? ________________
9. Why you chose your consume soft drink? _______________

Electronic copy available at: https://ssrn.com/abstract=3952746


PART II: Perception of customer based brand preference of soft drinks

Instruction: The following set of statements relate to your perception about your brand
preference of soft drinks. For each statement, indicate your level of agreement or
disagreement by encircling the numbers in front of each item.

Keys: 1 = Strongly Disagree 2 = Disagree 3 = Undecided 4= Agree 5 = Strongly Agree


Rating scale
No Items
1 2 3 4 5
1. Brand Loyalty
1.1 If I am going to buy a soft drink, I will choose my 1 2 3 4 5
preferred brand.
1.2 I will not purchase other brands, even if they offer
similar quality and price with my preferred soft drink. 1 2 3 4 5

1.3 I will not buy other brands if my preferred soft drink is


1 2 3 4 5
not available at the store.
1.4 I consider myself to be loyal to my preferred soft drink. 1 2 3 4 5
2. Perceived Quality
2.1 My preferred soft drink brand is high quality. 1 2 3 4 5
2.2 The quality of my preferred soft drink brand is
consistent. 1 2 3 4 5
2.3 My preferred soft drink has excellent features. 1 2 3 4 5
3. Price
3.1 My preferred soft drink brand is less costly than others. 1 2 3 4 5
3.2 Considering what I would pay for my preferred soft
drink, I would get much more than my money’s worth. 1 2 3 4 5
4. Brand Awareness
4.1 I am aware of the preferred soft drink brand. 1 2 3 4 5
4.2 I have clear image of the type of person who would use
my preferred soft drink. 1 2 3 4 5

4.3 I can recognize my preferred soft drink among other


brand. 1 2 3 4 5
4.4 When I think about soft drink, my preferred soft drink is
the first brand that comes into my mind. 1 2 3 4 5
4.5 I first chose the company which makes my preferred soft
drink. 1 2 3 4 5

II

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5.Satisfaction
5.1 I would recommend my preferred soft drink brand to my
1 2 3 4 5
friends and relatives.
5.2 I would say positive things about my preferred soft drink
1 2 3 4 5
brand.
5.3 I would recommend my preferred soft drink brand to 1 2 3 4 5
someone.
6.Culture

6.1 My preferred soft drink brand matches my social status. 1 2 3 4 5


6.2 I associate my preferred soft drink with my culture. 1 2 3 4 5
6.3 I associate my preferred soft drink to its country of
1 2 3 4 5
origin.
7. Self-Image
7.1 My preferred soft drink brand is my interest. 1 2 3 4 5
7.2 I would feel comfortable by drinking my preferred soft
1 2 3 4 5
drink brand.
7.3 My preferred soft drink is more than just a product of
1 2 3 4 5
me.
7.4 Other people judge me by the kind of soft drink I
1 2 3 4 5
preferred.
8.Brand Personality
8.1 My preferred soft drink is characterized by sincerity. 1 2 3 4 5
8.2 My preferred soft drink is characterized by excitement. 1 2 3 4 5
8.3 My preferred soft drink is characterized by ruggedness. 1 2 3 4 5
8.4 My preferred soft drink is characterized by competence. 1 2 3 4 5
8.5 My preferred soft drink is characterized by sophisticated. 1 2 3 4 5

Thank you very much for your valuable time and support!

III

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Appendix II: Detail outputs of a Chi-Square

Sex * Preferred brand

Crosstab

If your answer is” Yes” for Q-4


which brand do you prefer?

Coca Cola Pepsi Cola Total

Sex Male 122 92 214

Female 85 75 160

Total 207 167 374

Chi-Square Tests

Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)

Pearson Chi-Square .559a 1 .455

Continuity Correctionb .413 1 .521

Likelihood Ratio .559 1 .455

Fisher's Exact Test .464 .260

Linear-by-Linear Association .557 1 .455

N of Valid Cases 374

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 71.44.

b. Computed only for a 2x2 table

IV

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Age * Preferred brand

Crosstab

If your answer is” Yes” for Q-4


which brand do you prefer?

Coca Cola Pepsi Cola Total

Age 15-16 45 46 91

17-18 59 49 108

19-20 81 59 140

Above 20 22 13 35

Total 207 167 374

Chi-Square Tests

Asymptotic
Significance (2-
Value df sided)

Pearson Chi-Square 2.458a 3 .483

Likelihood Ratio 2.464 3 .482

Linear-by-Linear Association 2.421 1 .120

N of Valid Cases 374

a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 15.63.

Electronic copy available at: https://ssrn.com/abstract=3952746


Grade Level * Preferred brand

Crosstab

If your answer is” Yes” for Q-4


which brand do you prefer?

Coca Cola Pepsi Cola Total

Grade Level Grade 9 42 44 86

Grade 10 69 53 122

Grade 11 49 43 92

Grade 12 47 27 74

Total 207 167 374

Chi-Square Tests

Asymptotic
Significance (2-
Value df sided)

Pearson Chi-Square 3.706a 3 .295

Likelihood Ratio 2.464 3 .482

Linear-by-Linear Association 2.421 1 .120

N of Valid Cases 374

a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 15.63.

VI

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Living place of your family * Preferred brand

Crosstab

If your answer is” Yes” for Q-4


which brand do you prefer?

Coca Cola Pepsi Cola Total

Living place of your family Urban 144 89 233

Rural 63 78 141

Total 207 167 374

Chi-Square Tests

Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)

Pearson Chi-Square 10.420a 1 .001

Continuity Correctionb 9.738 1 .002

Likelihood Ratio 10.419 1 .001

Fisher's Exact Test .001 .001

Linear-by-Linear Association 10.392 1 .001

N of Valid Cases 374

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 62.96.

b. Computed only for a 2x2 table

VII

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Frequency of consumption in a week * Preferred brand

Crosstab

If your answer is” Yes” for Q-4


which brand do you prefer?

Coca Cola Pepsi Cola Total

Frequency of Once 75 79 154


consumption
in a week 2-3 48 49 97

4-5 43 24 67

6-7 41 15 56

Total 207 167 374

Chi-Square Tests

Asymptotic
Significance (2-
Value df sided)

Pearson Chi-Square 13.449a 3 .004

Likelihood Ratio 13.838 3 .003

Linear-by-Linear Association 11.904 1 .001

N of Valid Cases 374

a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 25.01.

VIII

Electronic copy available at: https://ssrn.com/abstract=3952746

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