Brand Importance across Product Categories in the Czech Republic, the Slovak Republic and the Russian Federation

Radek Tahal

doi:10.12776/qip.v20i2.689

Abstract

Purpose: Customer loyalty is an important and complex aspect of the market environment. This study aims at analysing the significance attached by different customer groups to brands in particular product categories within the Fast Moving Consumer Goods sector and to enhance existing knowledge in this field.Methodology/Approach: This study is based on primary data gathered through a consumer survey that was consistently carrried out in the Czech Republic, the Slovak Republic and the Russian Federation during November 2015. Different quantitative and statistical analysis methods and tests are applied. Logistic regression and average partial effect estimation form the main base for conclusions presented.Findings: This study focuses on two key research topics: First, we describe how much does a perceived brand importance differ across various product categories. Second, we identify and quantify the influence of important socio-demographic and lifestyle factors that affect the potential for brand loyalty across different product categories. Main findings are highlighted and interpreted.Research Limitation/implication: For the three countries involved, this study describes the topical situation at the time of the survey. In the coming years, repeated surveys might identify changes and trends in customer behaviour.Originality/Value of paper: This paper is based on primary data, consistently gathered across three countries. By means advanced statistical analyses, the authors provide comprehensive quantitative output that may be used for immediate marketing purposes and for further scientific research.

Highlights

One of the basic marketing activities may be described as efforts made by one participant – typically a corporate entity – to attract consumersattention towards offered products and services
We may ask whether the reported percentage of brand importance in the Electronics category is statistically different from other product categories
We apply a wide range of quantitative analysis tools in order to examine brand loyalty across different product categories, taking into consideration attributes that characterize consumers according to their sociodemographic classification, purchasing behaviour, attitudes towards modern technologies, work preferences, free time activities, etc

Summary

Introduction

One of the basic marketing activities may be described as efforts made by one participant – typically a corporate entity – to attract consumersattention towards offered products and services. Building customer relations is not a one-off operation, but a continuous process with many follow-up steps and repeated activities. In order to properly analyse customer relations, or even loyalty (which is a higher degree of connection with customers, based on their positive attitudes towards a brand), it may be useful to mention two elementary factors that marketers have to deal with. The so-called USP (Unique Selling Proposition) is a parameter, or a complex of parameters, presented by a seller and perceived by customers as the significant positive differentiator from any competing offers. The other, important step is to retain customersinterest, i.e. to achieve and secure repeated purchases that are based on sufficient and sustained differentiation towards competitors. Relevant research papers indicate existing relationships between brand consciousness, brand preference, brand sensitivity, and brand importance aspects, yet significant knowledge gaps exist in this field (e.g. Zablah, Brown and Donthu, 2010)

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