ABSTRACT

Brand image is acknowledged as an important concept in modern brand management and it has been examined with respect to its impact on several aspects of brands management. Brand image is frequently examined as an aggregated component. The current study sought to examine the impact of brand image as an aggregated component on brand choice. The study further sought to examine the impact of brand image as a disaggregated component, made up of cognitive and affective dimensions and the impact of these individual dimensions on consumer brand choice in the mobile phone sector in Ghana. Furthermore, the mediation effect of brand trust on the relationship between brand image and brand choice was also examined. The study employed a quantitative research approach. The study considered the views of cell phone users living in Accra and Tema metropolis in the Greater Accra Region of Ghana. A non-probability sampling technique, specifically, the convenience sampling technique was used and 400 respondents were used as a sample for the study. Data were collected using a survey method, through self-administered questionnaires. Out of the four hundred (400) questionnaires, three hundred and eighty-five

(385) questionnaires were returned, three hundred and sixty one were used for the study and

twenty four were rejected. The Statistical Package for Social Sciences Version 22 (SPSS

22) and AMOS version 22 were the tools used for data analysis. The outcome of the study confirmed that brand image is positively related to brand choice, however, brand trust mediates the relationship between brand image and brand choice. The study further revealed that the cognitive dimension of brand image does not significantly have a direct influence on brand choice whereas the affective dimension of brand image has a direct impact on brand choice. Furthermore, the affective dimension of brand image is more influential in explaining brand choice. Brand trust mediates the relationship between both the cognitive and affective dimensions of brand image and consumer brand choice. This study adds to the literature on brand image by identifying the dimension of brand image with the greatest impact on brand choice. It explains the role of brand trust in influencing consumer brand choice. It is recommended that significant attention should be paid to building strong emotional bonds with consumers as the affect was found to contribute more to brand choice. It is further recommended that organisations build trust in order to make the cognitive attributes of their products influence consumers brand choice. As the study considered only the views of mobile phone users in two metropolis in the Greater Accra Region, application of the findings to the general population should be done with this in mind.

CHAPTER ONE

INTRODUCTION

This section discusses the background to the study, the problem statement and the research objectives. It further explains the study’s significance and the research purpose. It would also give a chapter disposition that highlights the key areas the various chapters are to cover.

          Background of the Study

Government’s deregulation of the telecommunications sub-sector in 1994 has led to an expansion of the sector in Ghana. Statistics from the National Communications Authority (2017) indicates that the total number of voice subscriptions in Ghana by the end of July 2017 stood at 37,136,600, representing an upward surge of about 1.94 from the figure for June 2017 (National Communications Authority, 2017). The total penetration rate for voice subscriptions in that same period was 130.35%. Arguably, the statistics is indicative of the fact that the use of mobile phones is widespread and the mobile phones market is one of the largest electronic gadgets market in Ghana. The use of mobile phones has created several avenues for economic development as it provides a source of livelihood for a majority of the populace. In several product markets, manufacturer brands are facing stiff competition and one such market is the mobile phones market. Competing firms are able to influence consumer decision making if their offerings are perceived by consumers to have a positive brand image (Persaud & Azhar, 2012).

For decades, brand image has been documented as a crucial aspect in brand management (Keller, Parameswaran, & Jacob, 2011). Although scholars agree brand awareness is an essential step in building brand equity, it is however insufficient: additional important considerations like brand image are crucial in creating and sustaining brand equity over time (Motion, Leitch, & Brodie,

2003). In line with this assertion, some scholars argue that brand equity is driven by brand image (Chen, 2010). Furthermore, the findings of Alwi (2009) indicates that brand image allows consumers to distinguish alternate choices. The image that a brand is linked with has the ability to affect opinions about quality, value and price (Chi, Yeh & Yang, 2009).

According to Chi, Yeh and Yang (2009), a customer’s purchase decision is influenced by their motivations and preferences in purchasing a specific brand and the image of a brand is an important cue in this process. Collins-Dodd and Lindley (2003) are of the view that consumers ordinarily select well-known brands with positive brand image as this lowers their perceived risk or increases their perceived value. There has been heightened attention among scholars and practitioners on issues related to consumer brand choices (Hennessy & Tol, 2011); this has created the need for companies to comprehend the dynamics that impact consumers’ choice of brand and provide products that suit their demands.

Keller (2003) argues that, although abstract and intangible aspects (affect or emotion) facilitate the illumination of the customer side of brand knowledge, other dimensions of brand knowledge like the tangible dimensions of brands are also relevant. Alwi and Kitchen (2014) confirm this assertion, and they contend that the image of a brand is a total attitude judgement of an object, which is based on two dimensions of attitude, namely cognitive and affective dimensions. Keller (2001) further argues that understanding the cognitive and affective aspects of brand image will improve the capacity of scholars to predict the behavior of consumers and of practitioners to tailor their marketing programs. Although the literature is clear that brand image influences consumers’ choice of brands, brand image has always been measured as an aggregated component, often comprising both cognitive and affective brand attributes (Akdeniz Ar & Kara, 2014; Collins-Dodd

& Lindley, 2003; Narteh, Odoom, Braimah, & Buame, 2012). However, what is not yet examined is the relative effect of each of the dimensions on brand choice.

Delgado-Ballester and Sabiote (2011) assert that scholars from various backgrounds like psychology and sociology conceptualise trust as a vital foundation and a part of the highly preferred quality in almost all relationships. Delgado-Ballester and Sabiote (2011) further argue that, in applied areas like management and marketing, trust has been acknowledged as a relevant element in the business environment. Brand trust is an important factor that has an impact on the nexus between brand image and brand choice. Findings from recent studies have shown brand trust influences the long-term connection consumers develop with a brand and it also impacts brand loyalty (Alhadad, 2015). The findings of Ming, Ismail and Rasia (2011) and Sung, Kim and Jung (2010) suggests the existence of a significant relationship between brand trust, image and consumers choices. Previous studies have revealed that brand trust is the most salient feature a brand can possess (Scott, 2000; Smith, 2001). In this regard, Homer (2007) called for brand trust to be examined as an additional aspect of the connection between customers and brands. In spite of the vital role of brand trust in consumer purchase decisions, it has received relatively little empirical attention in studies on brand image and brand choice.

          Problem Statement

The increasing demand for mobile phones has placed the mobile phone industry among the fast- developing industries in the electronic gadgets market as several brands of mobile phones can be found in almost every nation across the globe (Odoom, 2016). Consumers’ perceptions about brands are one of the main predictors of a long-term consumer relationship with these brands, this has made the creation of strong brand perceptions a top priority for many businesses (Teas &

Agrawal, 2000). There seem to be an agreement among scholars that the significance of brands exist in the minds of customers depending on the things they have learnt, felt, seen or heard about the brands: these brand meanings include the brand image (Aaker, 1991; Keller, 2001).

Although brands and consumers’ perceptions of them are central to the success of firms, marketing researchers have usually measured brand image as an aggregated component and its effect has been examined on various variables in marketing including brand loyalty, purchase intention and brand choice (Low & Lamb Jnr, 2000). Marketing executives are now becoming progressively conscious about the significant role of a brand’s image in modern brand management (Alwi & Kitchen, 2014). Although there is growing awareness about the relevance of brand image, a search of extant literature shows that scholars are divided on the concept and there is no clear agreement on the relative effect of each of the dimensions of brand image on brand choice (Driesener & Romaniuk, 2006).

Extant literature is overwhelmed with explorations of key determinants of consumer brand choice. The results of these studies depict an array of factors that influence brand choice. The findings of previous studies have revealed brand awareness to be a major determinant of brand choice (Keller, 2001; Huang & Sarigollu, 2014; Srinivasan, Vanhuele & Pauwels, 2010). Other studies on brand choice indicated accessibility, price, country of origin and influence of family and friends as the main determinants of brand choice (Lin & Chang, 2003; Van Auken, 2003; Kim, 2008; Ching, Erdem, & Keane, 2009; Wang & Yang, 2010; Evanschitzky, Wagenheim, Woisetschlager, & Blut, 2008). The results from previous studies seem to suggest that a multiplicity of factors including price, country of origin and a brand’s image influence customers’ choice of brands (Erdem & Swait, 2004; Freling & Forbes, 2005). Narteh et al. (2012) assert that people usually choose to buy a brand based on their image. There is a preponderance of literature on brand choice (Agyei &

Kilika, 2014; Alwi & Kitchen, 2014; Bravo, Montaner, & Pina, 2010; Narteh et al., 2012; Homer 2007). These studies have been carried across different product categories and the findings have often revealed a different set of factors that influence brand choice depending on the product category. For example, a study by Narteh et al. (2012) revealed the attribute of an automobile, emotional attachment and influences from the external environment positively influence a consumer’s purchase decision of automobile brands in developing countries like Ghana. However, a research by Diallo et al. (2015) on store brand choice in Latin America revealed that factors such as merchandise, layout and service influenced consumers store brand choice. Studies on the determinants of purchase decision of cell phones are relatively scarce. Hence, this study aims at narrowing the gap by assessing the connection between brand image and brand choice in the mobile phone sector.