DIRE DEWA UNIVERSITY

THE EFFECT OF BRANDING ON CONSUMER

BUYING BEHAVIOURIN THE CASE OF DIRE
DAWA BEER CONSUMERS

BY ZURASHWORKgeremew
ID NO: E/760/10
Advisor: Mestawet Abebe

April:2022
Dira DawaETHIOPIA

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 ACKNOWLEDGMENT

First and for most, I would like to thank the Almighty “God” and “Blessed Mother of the Son
of God” who guide me every direction of my life. Secondly I would like to reward my
deepest gratitude to my advisor Mestawet Abebe who has provided me his wise and
intellectual advice, guidance and direction to finish this research paper. Finally, my thanks go
to all my friends who helped me a lot in my necessity.

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ABSTRACT
Branding is an important concept in consumer buying behavior and it is a crucial factor
influencing the purchasing of product. The main purpose of this study is to explore the impact
of branding on consumer buying behavior in case of dire dawa beer consumer. The target
populations of this research were people from sections of dire dawa. The study adopted a
quantitative researcher design. Questionnaires were distributed to 40 customers by using
simple randome sampling technique and 40 were properly completed and returned. Both
primary and secondary data was used in the study. Moreover, structured questionnaires was
used to gather relevant information and The study come up with branding has a
significant effect on consumer buying behavior. The study revealed that the four dimensions
of branding that is, brand awareness, brand loyalty, brand association and perceived quality
have positive and significant relation with customer buying behavior. The study recommend
that branding is very vita to attract and retain customers; therefore, continues improvement
must be maintained at all times on brand awareness, brand loyalty and brand association as
well as Product quality that meet consumer buying behavior.
.

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Contents
ACKNOWLEDGMENT.............................................................................................................i
ABSTRACT...............................................................................................................................ii
LIST OF TABLE AND GRAPH...............................................................................................v
ACRONYMS............................................................................................................................vi
CHAPTER ONE........................................................................................................................1
1. INTRODUCTION..................................................................................................................1
1.1 Background of the Study..................................................................................................1
1.2 Statement of the Problem.................................................................................................2
1.3 Research Questions..........................................................................................................2
1.4 Objectives of the Study....................................................................................................3
1.4.1 General Objective of the Study.....................................................................................3
1.4.2 Specific Objectives of the Study...............................................................................3
1.5 Significance of the Study.................................................................................................3
1.6. Delimitation/Scope of the Study.....................................................................................3
1.11. Organization of the paper..............................................................................................3
2.1 Theoretical Review..........................................................................................................5
2.2.1 Brand.........................................................................................................................5
2.2.2 The Concept of Branding..........................................................................................5
2.2.3 Brand Equity............................................................................................................6
i Switchers..................................................................................................................................7
ii. Habitual buyers..................................................................................................................7
iii. Satisfied buyers:................................................................................................................7
iv. Committed buyers.............................................................................................................7
2.2.4 Impact of Brand on Consumer Behaviour........................................................................8
2.2.5 The Concept of Consumer Buying Behaviour..........................................................8
1. Cultural measurement.....................................................................................................9
2. social measurement.........................................................................................................9
3. personal measurements...................................................................................................9
4. Psychological measurement............................................................................................9
2.3 Empirical Review...........................................................................................................10
3.1. Description of Research Area.......................................................................................11
3.2.Research Design.............................................................................................................11
3.3.Research Design/Type...................................................................................................11
3.4 Sampling Design............................................................................................................12
3.4.1 Target Population....................................................................................................12
3.4.2 Sampling Technique....................................................................................................12

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 3.4.3 Sample Size Determination.........................................................................................12
3.5 .Sources of Data.............................................................................................................13
3.5.1 Primary Source............................................................................................................13
3.5.1. Data Analysis Methods..........................................................................................13
CHAPTER FOUR....................................................................................................................13
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION.................................13
4.1 Introduction....................................................................................................................13
4.2 Respondent characteristics.............................................................................................13
4.2.1Sex distribution of Respondent................................................................................13
4.2.2Age distribution of Respondents..............................................................................14
Accordingly, the researcher gathered the following data.................................................14
4.2.3Level of Education...................................................................................................15
4.2.4Occupation of the respodent.....................................................................................15
4.3 Customers’ View on Branding and Buying Behavior....................................................16
4.3.1Customers’ Understanding about Branding.............................................................16
4.3.2Response of Customer’s on the Factor for Brand Selection....................................16
4.3.3Customers’ Buying Decision for Most Preferred Beer............................................17
4.4Consumer Response on Brand Awareness......................................................................17
4.5Consumer Response on Brand Loyalty...........................................................................18
4.6Consumer Response on Perceived Quality.....................................................................19
4.7Consumer Response On Brand Association...................................................................20
CHAPTER FIVE......................................................................................................................21
5. SUMMARYOF FINDINGS, CONCLUSION AND RECOMMENDATION..................21
5.1 Introduction....................................................................................................................21
5.2 Summary of major findings...........................................................................................21
5.3 Conclusion......................................................................................................................22
5.4 Recommendations..........................................................................................................22
REFERENCES.........................................................................................................................22
APPENDIX 1:..........................................................................................................................25

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LIST OF TABLE AND GRAPH

Table 3.1 Sex distribution of the respondent 22

Table 3.2 position of employee 25

Pie chart 3.1 Level of Education 24

Column chart 3.1 Age distribution of respondent 23

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

In this era, globalization is increasingly important. Most of the industries are thinking of
expanding their market worldwide. That is, in today’s business environment, companies must
work harder than ever before to achieve some degree of differentiation in their products.
Many companies have sought to achieve this differentiation by branding their products,
simply putting the company’s name on product (Aaker, 1991).
Today in a competitive market, the question is about the survival of the company in the
market. But the answer depends on companies to survive by packaging, design, price, quality,
distribution channel and other means. That is, the proper strategic planning is needed to
achieve revenue, sales, quality and market share. A good strategy differentiates company
brand to other competitor’s brands. The intention to offer marketing goods for consumer
benefits by a marketer is to win the competition by creating new and decisive consumer
value. (Welibacher, 1993 p.130).
Due to increase of globalization a homogenization of consumers’ preference in the world,
global branding has become more widespread. Research in marketing has concentrated more
on discussing how to raise sales rather than how to satisfy create loyal customers (Lee 2006).
That is, it is important to be aware of different brands.
According to Keller (1997) brand is vital and draws synergy between company and
consumers. In this regard, by achieving success through branding maintaining and managing
the consumer buying reputation becomes integral to be the market leader. The branding
aspects of the product that is, refine quality of products and social responsibilities of any
business can positively affect the buying behaviours of people regarding brand image,
satisfaction and loyalty World Applied Sciences Journal( 23 (1): 117-122, 20 )People in our
country are also conscious about their status and they prefer to use branded products to show
off their status symbol. Brand is considered as implied device through which any business
can attain the attraction of people and can enjoy the competitive edge.
In our local scenario branding can change peoples’ buying behaviour and it is also considered
as a valuable asset for business and it can play a vital role to expand marketing. Andualm
2012
While studying the literature, it was found out that there is not much research about branding
and consumer buying behaviour on beer consumers in our locality. Based on the above
background, this study was initiated to assess the effect of branding in consumer buying
behaviour in the city of dire dawa .

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1.2 Statement of the Problem

Companies are facing wider range of competitors who offer a similar product to same
customers (Kotler, 2005). In this increasable competitive market, companies are attempting to
gain better position for them by becoming more customer-oriented (Hartmann, 2007). One
wondering thing that consumers in making choice are merely responding to the outcome of
their perception which is a function of attributes like brand name, mark, package, company-
of-make etc. A point to note is the fact that most producers strongly believe that branding has
a very high influence on consumer’s choice (Ogbuji, 2008).
Brand has been an important concept in consumer behaviour research and it is a crucial factor
influencing the purchasing of product decision. Keller (1997) demonstrates that the brand
image is essential in apparel purchase behaviour because it impacts consumers’ preferences
and purchase intentions as well as their willingness to pay a premium price and recommend
the brand to others.
Thus, when consumers hold a strong and constructive brand, they will be more likely to
evaluate the product positively, regardless of price. The fact that many elements constitute
branding, one is not sure if these elements play equal role in influencing choice or if some
play a higher role than others. In this regard beer industry sector is particularly chosen in this
study. Beer companies as a product provider needs to provide goods that really satisfies
consumers’ expectations in ensuring that the company survives economically. In order to
achieve this deed, they need to understand consumers’ buying behaviour in order to help
them evaluate the product being offered.
Therefore, it is interesting to study how beer consumer has ended up selecting the specific
beer brand. This is depending upon customers buying behaviours. Thus, the overall purpose
of this study to explore the impact of branding on consumer buying behaviour of beer
products Dire Dawa City administration..`

1.3 Research Questions

The purposes of this study is to examine how branding have an effect on consumer buying
behaviour. In examining statement, this study was attempts to answer the following
questions:
1. What is the effect of branding on consumer buying behaviour?
2. What is customers’ brand perception on different brand of beer product?
3. What are the elements of branding that determine beer consumers buying behaviour?

1.4 Objectives of the Study

1.4.1 General Objective of the Study
The main aim of this research is to investigate and analyse the effect of branding on
consumer buying behaviour of beer product.

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1.4.2 Specific Objectives of the Study
The specific objectives of the study;
 To examine the effect of branding on consumer buying behaviour.
 To investigate customers’ brand perception on different brand of beer product.
 To realize the elements of branding that determine beer consumers buying behaviours.

1.5 Significance of the Study

The main drive of this research is to investigate the effect of brand on consumer buying
behaviour of beer product. Theoretically this research provides information on consumer
buying behaviour on beer brands. The outcome of the research would be beneficial to
marketing professionals in the industry to understand the target consumer whether branding
affect customers buying behaviour. Practically this study can help the present marketing
managers to better re-position their brands and advertising strategy to capture the correct
target market to improve the sales in times where economy is at a challenge.

1.6. Delimitation/Scope of the Study

The study is delimited to examining effect of brand on consumer buying behaviour of
beer product. As a part of my marketing program the researcher chooses branding and
consumer buying behaviour. This is due to branding is key to success in today ever –
increasing competition market among companies Therefore, this research was focus on
the impact of branding on consumer buying behaviours in Dira dawa city
administration sabiyan kebele 02 .

1.11. Organization of the paper

This research paper is organized in to four chapters. Chapter one states introduction that
includes background of the study, statement of the problem, objective, significance, scope,
limitation of the study and research methodology. The second chapter presents review of
related literature. The third chapter deals with data presentation and interpretation. The fourth
one deals with the conclusion and recommendations.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Review
2.2.1 Brand
Brand is the name associated with one of more items in the product line that is used to
identify the source of characters of the items (Kotler, 2002). Doyle (2002) also cited that a
brand is defined as a specific name, symbol or design, or the combination of these-that is
employed to differentiate a product. The American Marketing Association (AMA) defines a
brand as a "name, term, sign, symbol or design, or a combination of them intended to identify
the goods and services of one seller or group of sellers and to differentiate them from those of
other sellers.
To customers, brand means familiarity and credibility as they get to experience some contacts
in their everyday life; therefore, they use the brands as an indicator to try or make a decision
to buy new products Moreover, brands are regarded as causal signs of determinants of
product quality depends on if the intrinsic attributes and processes that truly determine
quality. Such familiarity and credibility in the mind of consumers, which creates value to the
firm, can be enforced by the use of brand equity:
brand awareness, brand loyalty, brand associations and perceived quality (Aaker,
2002).brand is a name in every customer mind and it is characterize by a noticeable name or
symbol with can differentiate the good and service from the rivals Aker (1991) and Keller
(1998)

2.2.2 The Concept of Branding

Branding has been defined as the use of identifiable variable like attractive names,
symbolisms, terminologies (slogans), terms, and signs and in an extended version, the
combination of all the above-mentioned variables with the intent of associating it with
particular services and products in an organization which is distinctive from competitors’
brand. Formally, branding was defined as names, associations and other ingredients that are
used to identify a product (Kotler 2000).
Branding has been in existence previously large commercial activities (before the industrial
revolution) to identify one product from the other particularly among the artistic workers. A
brand that is meticulously planned and executed dominates the subconscious minds of
consumers who do not struggle to recall them whenever the need arises and hence has
become a vital tool for business organizations to break into every market. Nowadays,
consumers have a wide range of choice to choose from when they enter a shopping mall.
According to a research conducted by Freerdie 1998) on shopping habits, nearly one-fourth
of the respondents are impulse –buy products they have not budgeted for. When deciding
which products to purchase, consumers would have their preference, which are developed in
accordance with their perceptions towards the brand. Successful branding could make
consumers aware of the presence of the brand and hence could increase the chance of buying
the company’s product and service Doyle(1999)

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2.2.3 Brand Equity
Today brand equity has become one of the most important marketing concepts (Martensen
and Gronholdt 2004) both in business practice as well as in academic research because
marketers can gain competitive advantage through successful brands (Kim, Kim, and An
2003). Further, organizations’ develop brand as a way to attract and retain customers
byPromotion value, image and lifestyle (Rooney 1995) although to create a brand from
scratch requires hunger investment (Motameni and Shahrokhi 1998) but brand have various
advantages to the firm, such as opportunity for successful extension, resilienceagents
competitor promotional pressure and creation of barriers to competitive enter brands are
assets for a company and thus, company financial performance is significantly affected by its
brand equity (Lassar, Mittal, and Sharma 1995) for the consumer ,brand equity could provide
them with information about the brand which influences their confidence during the
purchasing process. There is high propensity for consumer with good perceptions to but from
the same shop again than those with poor perception.as for the firm, brand equity could also
be a source for the firm to generate cash flow. Beside, brand equity could also allow higher
margins through premium pricing and reduce reliance upon promotional activities, Asker
(1991). Owing to the positive image, consumer’s no longer focus on the short term promotion
but the brand on the whole .
Brand equity is a broad concept which can be further subdivided into four main areas, name
Brand loyalty, name awareness, perceived quality and brand associations Aasker,(1991) and
Keller (1998).

2.2.3.1 Brand Awareness

Brand awareness is the first and prerequisite dimension of the entire brand knowledge system
in consumers’ minds, reflecting their ability to identify the brand under different conditions:
the likelihood that a brand name will come to mind and the ease with which it does so
(Keller, 1993). Brand awareness refers to the ability of a potential customer to recognize the
brand while categorizing the brand to a specific class (Aaker, 1991). It is believed that brand
awareness is one of the main subjects to pay attention to in brand equity.
Consumer awareness of the brand refers to the ability to recall, recognize the brand in various
situation and link to the brand name, logo, jingles and so on to certain associations in memory
(Aaskr,1991)

2.2.3.2 Brand Loyalty

Brand loyalty is believed to be one of the main components of brand equity. Brand loyalty
shows customer preferences to purchase a particular brand; customers believe that the brand
offers the enjoyable features, images, or standard of quality at the right price. Agreeing to
Oliver (1997), brand loyalty is a held commitment to repurchase or support a preferred
product continually, despite other brands.

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Today marketers are seeking information on how to build brand loyalty. The increased profits
from loyalty come from reduced marketing costs, increased sales and reduced operational
costs. Further, loyal customers provide strong word -of-mouth, create business referrals,
provide references and serve on advisory boards (Bowen and Chen 2001). Hence, customer
loyalty has a powerful impact on firm’s performance and is considered by many companies
an important source of competitive advantage (Lam et al. 2004). According to Aaker (1991),
consumers tend to continue to purchase the same brand despite the demonstrated benefits
(including better features, lower price convenient by competitors’ products. The four brand
loyalties according to Aaker (1995)

i Switchers: - they do not look at the brand name and they tend to purchase brand in the sales
and they are no loyalty to any brand
ii. Habitual buyers: - These are the customers who purchase a brand out of the habitude
and do not see a need to change a brand. However, these buyers may change a brand if they
face some troubles. The buyer would relatively purchase another brand instead of solving
additional problems stopping from purchasing a regular brand.
iii. Satisfied buyers: - These customers are satisfied clients who tend to switch to another
brand due to thresholds risen (i.e. distance, additional costs, time consumption, etc.). In order
to retain clients and attract new buyers marketers are encouraged to create strategy based on
increasing perceived quality.
iv. Committed buyers: - The most loyal customers are committed buyers. The brand plays
important role in their lives and they do not raise question about switching the brand.
Committed buyers purchase the brand due to ties closely related between brand and personal
values.

2.2.3.3 Perceived Quality

Perceived quality is how a brands quality is seen by consumers. It is one of the key
dimensions in Aakers brand equity model. According to Aaker (1991), perceived quality is
the customer’s perception about the overall quality of the product. The perception about the
product quality is subjective and it is constructed by different knowledge of the same product
specification.
There is a connection between price and experienced quality. Price is one of the important
cues to evaluate perceived quality, Aaker (1991). A strong brand always has a higher price.
The higher price becomes a sign of high quality to the consumers. The quality is highly
associated with other reasons for buying a special brand.
A Perceived quality makes the consumers satisfied which make them repurchase the product
which leads to loyalty (Lin & Chang, 2003).Further, perceived quality help consumers to
reduce the risk; the consumers trust the brand and know the brand what they will get (Uggla,
2001). Perceived quality associated with the brand will influence the Influence buying
behaviour of consumer of branded goods

2.2.3.4 Brand Associations

Brand association is anything relate to the preference of a brand (Aaker, 1991, p.109; Keller,
1993). This factors in brand association assist in the building brand’s image (Biel 1991).

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Brand image is seen as the perceptions-reasoned or emotional- consumers attach to specific
brands (Dobni & Zinkhan, 1990).
Brand image consists of functional and symbolic brand beliefs. Different brands have
different associations to their prospective customers. Such kind of associations can provide
bases for them to make purchase decisions and even become loyal to the brand, Aaker
(1991). Brand associations can differentiate one brand from another. It is about brand
positioning that a well-positioned brand will find it hard to be attacked by its competitors due
to its uniqueness.
Keller (1993) further divides brand association into three categories namely attributes,
benefits, attitudes
Attributes refer to the specific characteristics a product has. Attributes can be further
categorized into product-related attributes as well as non-product related attributes. For
product-related attributes, the overall features of the product or service are concerned. As
form on-product related attributes, price information, packaging, user imagery as well as
usage imagery are to be considered.
Benefitsare another category in brand associations. They can be classified into functional,
experimental and symbolic. Function benefits signify the physical or basic advantages a
brand may have. For experimental benefits, they are related to consumers’ emotional
feelings. Symbolic benefits, on the other hand, refer to the signal effect that a brand may
impose on the consumers. Signal effect is determined by the image of consumers and also the
personality of the brand.
Attitudes are regarded as the consumers’ overall assessments towards a brand. They
incorporate summary evaluations of information which represent how consumers feel in a
long run, lying in a continuum from positive to negative) Author’s own construction based on
Assael (2004)

2.2.4 Impact of Brand on Consumer Behaviour

The impact of branding on customer behaviours had been invested severally by both prolific
writers and emerging writers (Zhang, 2015). Branding creating brand names, logos, style etc.
for it to be distinguished from competitors and also whether product brand should be separate
from corporate brand or a separate brand away from other individual brands. Hence branding
has major impact on perception since perception is regarded as the recognition and
interpretation of sensitive information.
Branding undoubtedly add a significant amount of value to a particular product that instigate
consumers to purchase it. Consumers prior to acquiring a product develop a perceived level
of expected satisfaction or experience through the brand of the product especially when they
understand the brand of the organization.

2.2.5 The Concept of Consumer Buying Behaviour

The Consumer behaviour study involves how an individual or groups select, purchase, use or
dispose of products, services ideas, or experience to satisfy their need and desires. Consumers
consider some attributes of a product before making a decision in respect of purchase
(Schiffman & Kanuk, 2010).

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Assael (2004) defines purchase behaviour as the tendency to act on the object; and according
to him marketers is always testing the elements of the marketing mix that may influence
buying behaviour, for example by testing product concepts, advertising strategy, packing or
brand.
Marketers should strive to measure intention to purchase by the consumer and determine the
factors that influence these intentions. Assael (2004) proposes four types of purchasing
behaviour along these two dimensions

Complex buying behaviour can be defined when consumers are highly involved for making a
purchase decision. Complex buying behaviour calls for high level of involvement on the part
of the consumer. In case of high involvement, consumers distinguish salient differences
among the competing brands. Consumers’ are highly involved in case of expensive and
highly self-expressive products.
In dissonance reducing buying behaviour the level of consumer involvement is also high.
Consumers typically undergo dissonance reducing buying behaviours in case of costly and
infrequent purchase. In this type of consumer behaviours the consumers find it difficult to
differentiate among the brands
.
Habitual Buying Behaviour, consumers´ level of involvement is low. This means that
consumers don’t search much information among the available brands and they don’t find
significant differences among the brands. The level of consumer’s involvement is also low in
case of products that are frequently purchased. Consumers do not usually seek information
much pertaining to available brands before making purchase decision. The consumers don’t
assess different attributes of the available brands and make purchase decision as to which
brand to buy . Author’s own construction based on Assael (2004)

In case of variety seeking buying behaviour the level of consumer involvement is low, but
consumers perceive significant differences among the brands. In variety seeking buying
behaviour, consumers very often switch from one brand to another.
Schiffman & Kanuk (2010) and Assael (2004) mentioned that the consumer made the
purchase behaviour is influenced by several measurements, namely;

1. Cultural measurement, which has the most influence and the most extensive in the
behaviour of consumers so that marketers need to understand the influence of culture,
sub-culture, and social class of consumers;
2. social measurement, which need to be considered when designing a marketing
strategy because these factors can affect consumer responses
3. personal measurements, which consists of the age and stage of life cycle,
occupation, economic situation, lifestyle, personality, and self-concept affects the
consumer on what is purchased; and
4. Psychological measurement, include motivation, perception, learning and beliefs
and attitudes also influence the selection of consumer purchase

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2.3 Empirical Review
The concept of brand is vital and draws synergy between organizational resources (human,
fixed resources, tangibles and intangibles) and the strategic objectives of the organization to
achieve success among competitors. In this regard, after achieving success through branding,
maintaining and managing the brands reputation becomes integral to be the market leader.
Bickerton, (2003) considered the emerging focus in both academic and practitioner literature
on the concept of the corporate brand and argues that the underlying generative mechanisms
and processes that enable successful corporate brand management are not clearly understood.
Alizadeh, et al., (2014) determined Comparison of Product and Corporate Branding Strategy:
a conceptual framework and concluded that competition within the free market environment
has grown to become a throat cutting one and hence calls for distinctive branding in order to
be easily noticed by consumers.

The factor which drive the consumer behavior vary according to the type of brand, the
consumer decides to buy. Brand loyalty is very important for the success of every type of
brand. Consumers can be loyal to a specific brand according to the dimensions of consumer
behavior shermch .k.(1997). Loyal consumers help in gaining a high market share. To make
new customer loyal, it needs to invest five times more cost than to retain the current and
existing consumers. Loyal consumers can provide the competitive edge against competitors
which is a significance factor for success barsky (1994) and roselius vol 35.(1971). The word
loyalty usually refers to the association and recognition. When a consumer is loyal to brand,
he will always prefer that brand upon other brands and he is purchasing that product from
many years. Whenever he will need to buy a particular product, the same brand will come to
his mind which he always buys due to his attachment and satisfaction which he expects from
that brand mc goldrick.(1997). With the growing pace of globalization, competition is
increasing and to compete with other brands, innovation is needed limk .a (2001). Brands
create the sense of status consciousness in many consumers which leads to the sense of
recognition and using different brand products is the new trend of fashion. People feel
pleasure when they are recognized in society, friends and family in connection of specific
brand which is mostly used by a person. Now people want to have very thing branded from
the food they eat, clothes they wear to the decoration of their homes. Status and conspicuous
consumption are also factors which affect the consumer behavior. Consumers now use the
expensive and branded products in order to show their status. The brands which are used for
showing off the luxury, power and wealth are known as status brands tse.d.b (1989). The
wish to have a high status is the factor which compels the people to use brands as status
symbol. Brands are consumed to show that the person who used it is highly status conscious,
trendy and wealthy and these brands can be categorized as status brands mc goldrick( 1997).
As the wish increases, the usage of brands increases [Eastman j.k 1999].

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 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1. Description of Research Area

Dire Dawa lies in the eastern part of the nation, Which is located at the latitude and longitude
of 9°36′N 41°52′ECoordinates: 9°36′N 41°52′E. The city is an industrial centre, home to
several markets and the Dire Dawa Airport.The projected population for 2015 was 440,000
for the entire chartered city and 277,000 for the city proper, making the latter the seventh
largest city in Ethiopia.Dire Dawa is found 500 Km away from Addis Ababa. Since the
population of the study is infinite the detailed description of population of consumer buying
behavior city region picked from respective area. The study area is strategic due to the fact
that the city is hallowed with different types of beer industries with large number of
consumers hence it is simple to collect data as due to large number of people consume
different beer brands in this city.
In Ethiopia, beer is an integral part of peoples’ lives. Peoples especially during holiday’s
celebrations and recreations they buy and consumed. According to the Central Statistical
Authority (CSA) of 2017 reports, breweries in Ethiopia are produced 12 million hectolitres of
beer per year. There are hard facts indicating that beer market in Ethiopia has been growing
and the demand for it is rising. Consumption of these factory beers are also said to be largely
urban.

3.2.Research Design
The research design adopts for the study was descriptive method in the study. According to
Creswell (1994), it can help in order to show the different facts that will connect with the
nature of the status of the current problem or condition as it happens at the time of the study.
This is the reason why it is considered as one of the most applied methodologies in most
studies. Furthermore, it will also be helpful in order to offer logical use in the studies which
focus on dissemination of information, at the same time, it can help in order to investigate
based on normative standards. It will be helpful in order to focus on the practices which exist,
beliefs and processes that are currently going on and the effects that are being felt and
experienced, together with the trends that are currently developing (Best, 1907).

3.3.Research Design/Type

Research design is a logical and systematic plan prepared for directing research study. It
deals with issues as techniques for data collocation, sampling technique as well as time and
cost constrain. (Kothari, 2001). A choice of research design reflects decisions about the
priority being given to a range of dimensions of the research process.

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In this study the researcher will uses descriptive research design to enable the researcher
accomplishes the objectives of the study. The main aim of descriptive research is to identify
any causal links between the factors or variables that pertain to the research problem.

3.4 Sampling Design

Sampling is the process of selecting respondents to be involved in the study from the studied
population. In addition, it can be defined as the process of obtaining information about an
entire population by examining only a part of it (Kothari, 2004). The reason why samples are
important is that within many models of scientific research, it is impossible (from both a
strategic and a resource perspective) to study all the members of a population for a research
project. It just costs too much and takes too much time. Instead, a selected few participants
(who make up the sample) are chosen to ensure that the sample is representative of the
population. Here below the sample design of the research work.

3.4.1 Target Population

Study is target Population of Dire dawa who lives in the city. This location is strategic due to
the fact that the presence of different types of beer brands with large number of consumers
living in the city. Hence it is simple to collect data for all beer brand consumers.that will be
found in the gerocery and hotels.

3.4.2 Sampling Technique

The researcher will adopt convenience sampling of non-probability technique for the study.
Convenient Sampling refers to researching subjects of a population that are easily accessible
to the researcher and it is affordable, easy, and the subjects are readily available (Sakaran,
2003). This is because of the financial constraints hence under the circumstance the
convenience otherwise known as the sampling random will be used to gather the respondents.
In this case consumers who are available and also willing to participate will fill the
questionnaire. The researcher is provides the needed assistance to the respondents in the
completion of the questionnaires. These are in the form of explaining the study objects, and
clarifying the individual question for the respondents have low level offormal education.

3.4.3 Sample Size Determination

In this study the population of the study is infinite. The sample size of total population will be
selected randomly. The a sample will be 40 which includes 5beer seller 35beer consumers
from the total of Dire dawa. The study will applied simplified formula provided by Yamane,
(1967) to determine the required sample size at 95% confidence level, degree of variability =
0.5.
N
n= 2
1+ N e
Where n is the sample size, N is the population size (total household size), and e is the level
of Precision.
45
n= 2
=40
1+ 45(0.05)

12
3.5 .Sources of Data
3.5.1 Primary Source
Primary data is original research that is obtained through first-hand investigation, and it
includes collecting information using interviews and questionnaires.

3.5.1. Data Analysis Methods

The study was used descriptive analysis. The data that collected from questionnaires with the
appropriate response.and appropriate data analysis technique was used in order to bring the
best result. Then tabulate in the form of tables and interpretation will be made. The data that
will be gain from the questionnaires will to analyze quantitatively, whereas the data that will
be gain from the interview also analyze qualitatively.

CHAPTER FOUR

4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

This section present the results of questionnaires that the researcher has been collected from
dire dawa city beer consumers regarding the effect of branding on consumer buying
behaviour . Here, the researcher distributed 45 questionnaires to respondents’ to gather
appropriate data. But from distributed questionnaire, six 5 of them are not filled. So the
questionnaires returned properly are 40.

So this chapter present the information gathered through questionnaires to analyze and
investigate the effect of branding on consumer buying behaviour in case of dire dawa beer
consumers.

4.2 Respondent characteristics

Respondent characteristics means general detail of personality of people or it describes

feature of personality. People have such kind of personal features such as age, sex, education
level … etc

4.2.1Sex distribution of Respondent

In any study, gender distribution helps the researcher to put the respondents into context.
Identification of sex distribution of respondent is very important to know the female or male
are Morley consume beer product .

13
Accordingly the researcher gathered the following data.

Table 3.1 Sex distribution of the respondent

Frequency Percent
Male 36 90
Female 4 10
Total 40 100

Source: - questionnaire survey, 2022

The above table shows that, from total 40 target respondent 36(90%) of respondent are male
and only 4(10%) of them are females.
Thus, from the above result the researcher can conclude that, the majority of the respondents
were male and female beer consumer is very low as compared to the male participation..

4.2.2Age distribution of Respondents

The time of life when a person becomes qualified to assume certain civil and personal rights
and responsibilities, usually more than 18 years old, so the researcher use different ages
group to make sure research conducted and responded to all peoples. This was made the
research clear because there are no complaints of bias in age. The study employs respondents
of different age in order to get wide answers concerning the subject

Accordingly, the researcher gathered the following data.

Age Frequency Percent
21-27 2 5
28-34 13 32.5
35-41 17 42.5
42-48 6 15
Above 49 2 5
40 100

Age distribuion of Respondent

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
21-27 year 28-34 year 35-41 year 42-48 above 49
years
Column chart 3.1 Age distribution of respondent (Source: - questionnaire survey, 2022)

14
From the above data we can understand that most of the respondents which accounts for
42.5% belong in the age range of 35-41 years and this respondent are 17 in number, the next
32.5% of the respondent belongs to 28-334 years and the number of this respondent are 13 in
number and 42-48 years that is 6 in number cover 15% from the total respondent.

From the above result one can understand that the majority of the respondent who consume
beer products are 28-48 years range .

4.2.3Level of Education
Education may be formal or informal. Informal education indicates to the general social
process by which human beings acquire the knowledge and skills needed to function in their
culture. Formal education refers to the process by which teachers instruct students in courses
of study within institutions. Therefore, the study employs respondents of both forms of
education.
Accordingly, the researcher gathered the following data.
Level of education
Frequency Percent
Diploma 8 20
Degree 9 22.5
Masterse and above 1 2.5
Other 22 55
44 100

Level of Education (source: _questionnaire survey, 2022)

This indicates that the educational status of the respondant was under 12 grade that is about
55 and and 45 percent of the respondant was educated

4.2.4Occupation of the respodent

The occupation helps for researcher to put the respondent in to the context of the research
like that of gender distribution and level of education.

Accordingly, the researcher gathered the following data.

Table 3.3 Occupation

Frequency Percent
Private 5 12.5
Business owner 4 10
Self employed 6 15
Government 13 32.5
Teacher 4 10
Labor 8 20

15
 40 100

Source: - questionnaire survey, 2022

The above table shows that most of the respondents are government workers which is 13 in
number and 32.5% percentage followed by labor 8 in number and 20% percentage.

4.3 Customers’ View on Branding and Buying Behavior

Regarding the customer understanding of branding and buying behavior in the case of beer
products consumers give the following response in this study

4.3.1Customers’ Understanding about Branding

Frequency percent
Name 28 70
Labeling 3 7.5
Company image 5 12.5
Slogan or motto 2 5
All of the above 2 5
Total 40 100

From the above table 6 with the understanding of branding 70% of respondents have
understanding on brand name, followed by 7.5% of the respondents who said they understand
labeling of the product, 12.5% of the respondents easily identifies company image, 5% of
respondents have know-how on all branding elements and other 5% said they easily
recognizes the slogan or motto of the organization.

4.3.2Response of Customer’s on the Factor for Brand Selection.

Frequency Percent
Advertisement 8 20
Past experience with the brand 10 25
Self-judgment 8 20
Group reference influence 7 17.5
Availability and accessibility 7 17.5
Other
Total 40 100

This research just wanted to know where the consumers get to know different brands. Table 7
8 respondents equivalent to (20%) it was through advertisement, 10 respondents equivalent
(25%) they say past experience with the brand, equated to 8 respondents equivalent to (20%)
was by self judgment 7 respondents 0r 17.5 % through group reference or influence friends
and 7 respondents equivalent to (17.5%) said through availability and accessibility. It is
concluded that advertisement is the most tool where most of consumer know the brands and it
is a means of their buying behavior

16
4.3.3Customers’ Buying Decision for Most Preferred Beer
Frequency percent
Product Quality and testing 30 75
Price Cost (time cost, energy 4 10
cost)
Promised benefits of the
company
Brand image
Distribution availability 2 5
Familiarity, likeability and 4 10
Reputation
Other
Total 40 100

According to table on what are the attributes consumers prefer when they wanted to choose a
particular brand, due to different behavior there are also different attributes consumer prefer
the most. The research shows 30 respondents equivalent to (75%) agreed on product quality
and testing is their preferable attribute, 2 respondents said availability is the most attribute
they preferred, around 4 respondents said that price Cost and familiarity,likeability accounts
10% and 10 % respectively have impact on consumer buying behavior.

4.4Consumer Response on Brand Awareness

Brand name awareness plays an important role in buying behaviors of a consumer. If
customer had already heard the brand name, the customers would have idea about the
product this makes them feel more comfortable at the time of buying which is not the
case with an unknown brand.

Brand awearness Strongly Somewhat Neutral Agree Strongly

disagree Disagree Agree
Fq % fq % fq % fq % Fq %

1 I can easily and quickly - - - - - - 39 97. 1 2.5

Recall this brand during 5
any buying Power
2 I have adequate - - 6 15 1 2.5 30 75 3 7.5
Knowledge about this
Brand
3 My Position of brand - - 6 15 2 5 28 70 4 10
image is high towards
this brand
4 I can recognize this - - - - - - 35 87. 5 12.5
Brands easily than 5
competitive brands
5 At the place of purchase, - - - - - - 35 87. 5 12.5

17
 I could visually detect 5
my preferred brand
without much effort.

The above table shows the response of the respondent about consumers brand percepetion on
different brands of beer product . The researcher analyses and interprets the above data
below.

In the first case the respondent asked” I can easily and quickly Recall this brand during any
buying Power” inorder to know whether the consumer knows the product brand , from this
the researcher notice majority of the respondents (97.5%) are agreed and 2.5 are strongle
agreed on they are remember this product when they want to use.

Secondly the respondent asked you have adequate Knowledge about this Brand. From the
total respondent, 30 (75%) of the respondent agreed that they have a knowledge about the
brand and some of them are not knows about the brand the use.

This indicates the majority of the respondent knows the brand of the product they consumed.

Thirdly the respondent asked about they Position of brand image is high towards this brand.
The majority of respondent 28 (70%) agreed and 4(10) are strongly agreed on they are high
brand image on the product they consume. that AIS has high role for the consistent
administration of the bank.
Fourthly, the respondent asked they can recognize this Brands easily than competitive
brands.the entire respondent 40(100%)agreed on they can easily recogenize the product that
they can consume
Finally the respondent asked on the place of purchase, they could visually detect they
preferred brand without much effort. All the respondent 40(100%)agreed they visualize the
preferred brand without much effort. All implies that customers of respondents were high
view regarding brand awareness, that when they go for purchasing, they choose the well-
known brands product because they have good information about the product

4.5Consumer Response on Brand Loyalty

Brand loyalty shows customer preferences to purchase a particular brand; customers
believe that the brand offers the enjoyable features, images, or standard of quality at the
right price. Brand loyalty represents an encouraging approach towards a brand resulting
in regular purchase of the brand over time. Brand loyalty is shape of continue purchasing a
conscious to regular buying the same brand.
Table 10 Customer Buying Behavior Concerning about Brand Loyalty

18
Questioner related with brand loyalty
brand loyalty Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
Fq % fq % fq % fq % fq %

1 I would continue to use - - - - 1 2.5 36 90 3 7.5

this brand for the next
time

2 I like to talk to other - - 5 12.5 4 10 30 75 1 2.5

people about this brand
3 I consider myself loyal to - - 7 17.5 3 7.5 28 70 2 5
this brand
4 This brand is more than a 2 5 13 32.5 10 25 10 25 5 12.
product to me 5
5 I usually trust this brand - - 20 50 10 25 8 20 2 5
because of high Social
Image

According to the above table the first case the respondent asked they would continue to use
this brand of for the next time almost all the respondent 39 (97.7%) agreed and
1(2.5%)neutral from this the researcher notice they are loyal for the brand the used .
Secondly the respondent asked would you like to talk to other people about this
brand?,30(75%)of the respondent agreed and 5(12.5%) of the respondent disagreed on the
question. from this the researcher notice the brand they like the most they share to other and
when the respondent asked about they consider them self loyal to the brand they
use ,28(70%) of the respondent agreed and 7(17.5%) of the respondent disagreed. This
indicate most of the people was loyal to their specific brand beer and over time they
buy and consume their preferred beer and they satisfied gained the trust in the brand.

4.6Consumer Response on Perceived Quality

Perceived quality shows customer’s perception and the product’s quality or superiority
which provides the fundamental reason to the customers to purchase. Mostly customers
prefer to buy products from a well-known and familiar brand, rather than opting and
taking a chance by going for the unknown or new brand
Questioner related with brand quality
Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
Fq % fq % fq % Fq % fq %

1 I usually feel the test and - - - - - - 26 65 14 35

color this beer brand

19
2 I usually purchase this - - 4 10 - - 30 75 6 15
brand with Product
Performance
3 I usually purchase this - - 1 2.5 4 10 25 62.5 10 25
brand with Value added
features
4 Improvement is key in my - - 5 12.5 1 2.5 29 72.5 5 12.
choice for beer brand 5

From the above table about customers response on perceived quality the first and the fourth
question is the most important for the researcher because if they feel the test and color of this
beer product the quality of the product is one of the element for the brand of the product. And
improvement makes once brand to become more unique and the to be chosen showing the
similar opinion towards brands and they expected perceived quality

4.7Consumer Response On Brand Association

The brand association creates a positive attitude and feeling that makes a connection of
the customer with the brand, especially when it comes to decision making

Questioner related with brand association

Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
Fq % Fq % fq % Fq % fq %

1 I can have many - - 12 30 4 10 21 52.5 3 7.5

connections or
association between
experience in my life and
this product.

2 I usually trust this brand 4 10 15 37.5 - 16 40 5 12.

because of the 5
advertisement with
celebrity and famous
actress
3 I like this brand due to 5 12.5 30 75 4 10 1 2.5
its place of origin
4 I tend to notice this 5 12.5 21 52.5 10 25 4 10 -
brand with Celebrity and
sports endorsement,
Well-known and admired
people to promote a
product
5 I use this brand to define 2 5 10 25 7 17.5 19 47.5 2 5
and express the “I” and
“me” Within myself

20
The above table shows the response of the respondent about brand association on different
brands of beer product . The researcher analyses and interprets the above data below.

In the first case the respondent asked” if they can have many connections or association
between experience in they life and this product” majority of the respondents 21(52.5%) are
agreed and 3(7.5) are strongle agreed and the reast of the respondent some what disagreed on
the product they used does not have a connection on there past life time.

Secondly the respondent asked they usually trust this brand because of the advertisement with
celebrity and famous actress From the total respondent, 19 (47.5%) of the respondent
disagreed that they have thr rest of them agreed the used this product because of
advertisement that the brand with celebrity and famous actress .from this the researcher
notice that most brand can be trested withe the value of the advertisement method. Generally
This implies that consumer also pay much attention to their preferred beer brands as a
significant asset to their characters and personality

CHAPTER FIVE

5. SUMMARYOF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Introduction
In this chapter, an attempt is made to discuss the findings of the research based on collected
data by referring objectives of the study in a comprehensive way. As a result
recommendations are given for the concerned company.

5.2 Summary of major findings

The impact of branding on consumer buying behaviour can be assessed from the preferably
attribute the consumer desire. This study intends to find out the impact of branding on
consumer buying behavior in the case of dire dawa Municipality and it is based on consumers
only and not branding company. From the analysis carried out the major findings were as
follows:
Branding dimensions are the key indicators of consumer buying behavior as mentioned
before. In this regard, all the respondents highly agreed . brand association shows positive
with customer buying behaviour and brand awareness demonstrates the highest positively
related with customer buying behaviour followed by perceived quality and brand loyalty with
respectively.
The attributes of brand name, logo, character and packaging have positive effect on
consumers buying behaviour towards the endorsed brand elements on their intention to buy
the product, if the producers use the brand elements on their product. Among the attributes,
brand name and logo have the highest influence on consumers buying behaviour

21
5.3 Conclusion
This study was conducted to assess the impact of branding on consumers buying behaviour in
the case of dire dawa beer consumers.
This study is evaluated on the basis of brand dimensions encompassing brand awareness,
brand loyalty, perceived quality and brand association. Based on these four branding
dimension questionnaire is conducted all aspects of the consumer buying behaviour.
Concerning customers view on branding majority of the respondents had adequate knowledge
on branding dimension. That is they acknowledged that branding is about logo, product
quality, pricing, coverage image, and slogan. That means customers have an emotional
connection with the brand logo, image, slogans product quality, pricing, coverage etc.
Finally, the study had also discovered from the data analyzed that, branding has a significant
association with customer buying behaviour. It also revealed that brand association, brand
awareness, perceived quality and brand loyalty has positive and significant association with
customer buying behaviour.

5.4 Recommendations
Based on the results of the analysis concerning about branding and consume buying
behaviour the following recommendations are forwarded.
 Branding play significant role in the success of every business endeavour. In this view
beer companies are encouraged to improve and sustain their brand. These could be
customer survey on their brand or brand performance assessment this is because of
customers have a good knowledge about beer brands or products, they trust the well-
known brand.
 Moreover, branding is very vita to attract and retain customers especially in the beer
business market where competitions among firms are very intensive and unchanged.
Customer relationship management must be given a maximum attention and also their
brands must have much impact on their behaviour to build a strong relationship
between their brand and consumer buying behaviour.
 Continues improvement must be maintained at all times on brand awareness, brand
loyalty and brand association as well as Product quality that meet consumer buying
behaviour. Moreover, in beer market brand association like attitude, attribute and
benefit are more powerful for consumer buying behaviour

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24
APPENDIX 1:
English Questioner

A QUESTIONNAIRE FOR BEER CONSUMER

This questionnaire is a part of a study for BA Degree at dire dawa university school of
marketing management . The purpose of this questionnaire is to gather data about the impact
of branding on consumer buying behavior in the case of dire dawa city. The study is used
purely for academic purpose and thus it does not affect you in any case. . Therefore, I kindly
request you to respond to each question item carefully.
Instruction
Note that,
1. No need to write your name.
2. Please give more attention and be complete as much as possible.
3. All information received will be held in anonymity and in strict confidence.
4. It is estimated that, it will take you not more than 25 minutes to complete
this questionnaire.
5. Please ensure that all instructions are readable very clearly.
6. We trust that all information received will be as honest as possible, no matter
how negative you may be.

Thank you for your time and cooperation!

Please use a () mark in the appropriate box to indicate the answer.
PART I: RESPONDENTS CHARACTERSTICS
1. Sex Male 36 Female 9
2. Age 2 19-25 25 26-32 10 33-39 5 40-46 3
above 47
3. Level of education Diploma 13 10 Degree 2 Master and above
20 other

25
4. Your OCCUPATION?
A. PRIVETE SERVICE 14 B. GOVERNMENT SERVICE
15
C. BUSINESS OWNER 5 D. TEACHER 3
E. SELF EMPLOYED 5 F. LABOUR 3

Part II: Branding and Consumer Buying Behavior Questionnaire

1. What do you understand usually about branding?

Name 29 sloge and motto

labeling all of the above 4
company image 5 none of the above 7
2. Which brand of beer product comes into your mind first from the following beer
product is mentioned below?

Bedel beer harer beer 10 waliya beer zebidare beer

Balageru beer 20 castle beer meta beer st gorge beer 2
Habesha beer dashen beer 3 anbesa beer10 jano beer
Henikone beer

3. From question number 2; how do you come to know about this brand?

Advertisement Group reference influence or

Recommendation 3
5 Past experience with the brand Availability and accessibility 19
Self-judgment 15 Style, Color, Durability 3
Its name or logo Other; Specify:
Country image
4. Which brand of beer do you buy and consume regularly?

26
 Bedel beer harer beer 10 waliya beer zebidare beer
Balageru beer20 castle beer meta beer st gorge beer 2
Habesha beer dashen beer 3 anbesa beer jano beer
Henikone beer

5. With regards to your preferred beer consumption; how often do you purchase and
consume your preferred beer?

Once in a week 3 Three or four days in a month

Twice a week 7 More than 3 days in a month
Three or four days in a week More than 3 days in a month
More than 3 days in a week 35
Once in a month
Twice in a month
6. What encourages you to take the decision for purchasing your most preferred beer
brand recently?

Product Quality and testing 15 Brand image

Price 20 Familiarity, likeability and Reputation
Cost (time cost, energy cost Distribution availability 10
Promised benefits of the company Other; Specify:
Responsiveness and societal service company
7. . Is there any reward that you participate or get by using your preferred beer brand?

yes no 45

8. For question number 7 if your response is “yes”. What are the rewards that you
participate or get from the brand?

Bonus Draw or lotto

Reward Other Specify
Discount

The following questions refer to the brand of beer product which is predominantly purchased
and consumed by you. Please indicate (make circle) your level of agreement or disagreement
on the agreement legend to the following statements
Questioner related with brand awareness
Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
1 I can easily and 10 30 5
quickly Recall this
brand during any

27
 buying Power
2 I have adequate 20 20 5
Knowledge about this
Brand
3 My Position of brand 25 4 15 1
image is high towards
this brand
4 I can recognize this 35 10
Brands easily than
competitive brands
5 At the place of
purchase, I could
visually detect my
preferred brand
without much effort.

Questioner related with brand loyalty

Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
1 I would continue 39 6
to use this brand
for the next time

2 I like to talk to 10 5 30
other people
about this brand
3 I consider myself 6 5 30 4
loyal to this brand
4 This brand is more 5 30 5 5
than a product to
me
5 I usually trust this 30 4 2 9
brand because of
high Social Image

Questioner related with brand quality

Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
1 I usually feel the 40 5
test and color this
beer brand
2 I usually purchase 5 40
this brand with
Product
Performance

28
3 I usually purchase 24 12 9
this brand with
Value added
features
4 Improvement is 1 35 9
key in my choice
for beer brand

Questioner related with brand association

Strongly Somewhat Neutral Agree Strongly
disagree Disagree Agree
1 I can have many 10 20 15
connections or
association
between
experience in my
life and this
product.

2 I usually trust this 5 30 5 5

brand because of
the advertisement
with celebrity and
famous actress
3 I like this brand 12 33
due to its place of
origin
4 I tend to notice this 3 4
brand with 38
Celebrity and
sports
endorsement,
Well-known and
admired people to
promote a product
5 I use this brand to 7 5 30 3
define and express
the “I” and “me”
Within myself

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