Editorial Board

A Refereed Monthly International Journal of Management

Factors Affecting Brand Choice of the Consumers on Bottled Water Brands:

Author

Legese Lema Department of Management Dembi Dolo University, Ethiopia Contact No.:- +251924698534 E-mail:- legeselemma3@gmail.com

Dr. Mulugeta Negash Wodaje Department of Marketing Management University of Gondar, Ethiopia Contact No:- +251913781088 E-mail:- mulugetanw@gmail.com

Abstract

A stiffly competitive business environment exposed consumers to a large number of product alternatives in the market. As result, marketers are struggling to increase their brand preferences by customers and trying to avoid competitors from grabbing of these acquired customers mind. To do this, discovering determinants of consumers brand choices is very essential. This research was conducted to identify determinant factors of consumers brand choice on bottled water products and to examine relationship among determinants variables. This study was adopted descriptive and explanatory research design with cross-sectional survey strategy. To collect data from respondent’s convenience and purposive sampling techniques were used. Primary data has been collected from 400 bottled water consumers by using self-administrated structured questionnaires. Quantitative data has been collected and analyzed by using descriptive and multiple linear regression models. This study was found that packaging, product quality, price, brand name, brand availability, brand image and advertisement were significantly associated with consumers brand choice for bottled water products. However, the influences of brand image, brand name, packaging and price on consumers brand choice decision were more contributing than others. Bottled water firms are advised to create brand equity to their product that can emotionally and psychologically connected to customers. They have to features their packaging to make it attractive, and finally set theirs price based on affordability and brand accessibility at right place and time.

Keywords : Brand Choice, Brand Preference, Brand Awareness, Bottled Water products.

Background of the Study

As living organism, human beings cannot survive without water and it is major constituent of body cells, tissue, and fluids ( Gleick, 2004 ). Next to oxygen, water is the most important substance for human existence. For this reasons, the pattern of human settlement throughout history has often been determined by its accessibility ( Saleh et al., 2001 ). Bottled water has been used in place of tap water for its convenience, better taste, for good healthy, perceived purity and quality( Doria, 2006 ). Currently, people can find bottled drinking water almost everywhere. However, products vary, in terms of brand name, packaging design, ingredient content and taste. In today’s living condition, the need for potable drinking water is becoming the main issue for the common human beings. Understanding the customer mind is central issue for the survival and growth of the company by way of attracting and selling the products to them. Competition is inevitable for beverage product industry especially bottled water market ( Ferrier, 2001 ).

As per( 2009 ) bottled water issues, bottled water can be defined as any product, including natural spring or well water, taken from private utility systems or other water or any of the foregoing to which chemicals may be added, which are put into sealed bottles, packages or other containers, to be sold for personal consumption ( Durga, 2010 ). Bottled water market is taken as one of the fastest growing and most dynamic market in the beverage category ( Ferrier, 2001 ). Consequently, like any product, it operates stiffly competitive market and requires thorough research regarding consumer brand choice to guide marketing programs towards present and future actions ( Quansah et al., 2015 ). Bottled water consumption has increased exponentially, globally and locally and increasing by ten percent every year worldwide ( Hu et al., 2011 ). The fastest rise has been seen in the emerging markets like countries of Asia, South America and Africa ( Gleick, 2004 ).

Correspondingly, demand for bottled water increased which resulted from attitude towards tap water quality, economic, demographic and social changes throughout the country these provided an opportunity to sale bottled water as a product( Matewos, 2014 ). In addition to this, expansion of bottled water companied is other cause driving force for the growing demand. This rapidly growing market will make the competition environment; the way by which companies can win the competition is by investigating the determinant factors that consumers perceived to be important in their brand choice decision for bottled water products.

Ethiopia is a developing country and has witnessed speedy consumption growth in fast moving consumer goods penetration in recent years; particularly, bottled water products. The government action towards industrialization and privatization of manufacturing sector resulted in different investment in bottled water by local as well as foreign investors started selling bottled water in various parts of country. The bottled water manufactures in Ethiopia has practiced huge growth as result of a number of changes, together with emerging middle incomers, the need for clean, safe and hygienic drinking water( Yalew, 2014 ). The bottled water industry started in Ethiopia lately in late 1990s by brand name called Highland. The brand now is now existent.

Problem Statement

The fierce competition in terms of product similarity in the market have led marketers to study factors that are influential in consumers’ brand choice decisions and its indispensable to deal with the competitors, changing customer tastes and preferences ( Das, 2012 ). To improve the bottled water market share, the marketers need to understand customer insight in. In today’s marketing environment, consumer preference is continuously changing and becoming highly diversified, buyers were exhibiting diversified, unanticipated and surprising purchase behavior ( Nakmongkol, 2009 ). In these circumstances’ it becomes necessary for firms to ascertain diversified needs, desires of consumers and produce product accordingly ( Batra, 2015 ).

Marketer’s ability to create strong brand depends on thoroughly understanding customers profile about why they prefer one brand over competitors( Njuguna, 2014 ). Strong brand can be a powerful weapon to maintain competitive advantage( Rijal, 2013 ). Building strong brand is management main issue ( Aaker, 1991 ). Companies with better and superior information can able to develop better product and execute better marketing programs towards their customer ( Kotler and Keller, 2012 ). Even though marketers take decisions for planning and implementing the most effective and efficient brand building marketing programs and strategies as possible, the realization of these marketing programs and strategies ultimately resides on how customers respond to particular product brand over competitor’s offers.

Many studies were carried out to identify determinant factors of brand preference and why consumers prefer one brand over competitors brand in particular product category. The various factors influence might varies with different product categories and country context. Product variables such as quality, quantity style, features, variants & color customer services among others have relationship with brand quality that could affect consumer’s particular product choice decision ( Ejionueme and Gerald, 2013 ).

Consumers are willing to pay higher prices for brands that they perceive to have high importance than competing brands in the market with in similar product category( Henry and 2013 ). If consumers have a positive perception of a brand, they tend to choose the brand, and this will have an effect on repeat purchases by consumers ( Andihka et al., 2016a , Andihka et al., 2016b ). A well-known and trusted brand personality makes people confident that the organization is dependable ( Isik and Yasar, 2015 ).

There is an energetic boost in the number of bottled water users as the same time number of bottled water producers are expanding. However, the choice of consumer is different due to various factors associated with consumer behavior. Understanding what consumers consider in choosing a particular bottled water product is important for bottled water companies; it will provides insight to formulate a better marketing strategies. On the other hand, failure to do this may result in losing a substantial market share that in return leads to loss of profit and market share. Moreover, consumers may have their own choice criteria in selection of a particular brand from a set of given product category. Several companies may not understand what factors determine of brand choice of consumers and wrong investments are made to improper aspect, this in return leads them to loss of their customers. Marketers need to comprehend why consumers prefer one brand over the other, how price, product quality, brand image, brand name, brand availability and brand advertisement will affect consumers’ brand choice decision, and how consumers will respond to those factors.

Review of Related Literature

Brand preference is a measure of brand loyalty in which a consumer will choose a particular brand in presence of rival brands, but will accept substitutes if that brand is not present ( Christian and Sunday, 2013 ). Brand choice is in a fact that consumers’ selective choice of brand over competitor’s brands ( Karjaluoto et al., 2005 ). Purchasing decisions are the customer behavioral outcome that precede differentiation between several alternatives brands and subsequent outcome of consumer preferences( Dhar et al., 1999 ). Brands are crucial element for consumer product choices when making purchase decision. Now a day customers perceive brand as an important part of the product. To build strong brand image marketers should find out the factors that affect the consumer’s product choice decision on that specific brand ( Sarker et al., 2013 ).

Advertisement has a positive impact on purchasing decision since purchasing decision is one of consumer choice decision so it’s directly affects consumer brand choices( Latif et al., 2012 ). Advertisement as an influential factor of beer consumers which is based on the fact of creativeness of the message, the contents and the use of spur in the development of marketable communications( Christian and Sunday, 2013 ). Brand name has significant positive relationship with consumers’ choice for products( Oyedikachi et al., 2015 ). As per study of Ogbuji et al. (2011) , brand name has a significant effect on consumer purchase for regulated bottled water. The easily accessibility of a product has a great influence on the customer buying behavior( Boadu, 2012 ). Brand availability is key brand performance driver and distribution strength is certainly a major factor that drives brand preference and ultimately brand loyalty( Srinivasan and Park, 2005 ). Yalew (2014) , asserted that packaging color, graphic design, size and shape of packaging significantly influence consumers purchase decision for bottled water.

Conceptual Framework of Research

Many researchers agree that the following variables are determines of consumers brand choice decision for particular product. On the basis of literature review and previous studies conceptual framework was developed.

Objectives of research

Ø To identify determinant factors of consumers brand choice decision for bottled water products in Gondar city.

Ø To examine if there is a difference among the demographic profile of consumers and the factors they consider in their brand choice decision.

Methods and Materials

This research was employed both explanatory and descriptive research design by using cross sectional survey strategy which was data collected at one point of time from sampled population to give generalization to target under study. The population of the research was all peoples in Gondar town who consumes different brands bottled water. The target populations for this study was residents of Gondar city who are occasional and regular users of branded bottled water and have at least a foundation of education and are eighteen years or older. This study has been conducted on mainly on bottled water manufacturing industry, therefore findings of study was limited to this sector only. Geographical scope of the study is Gondar city

To achieve purpose of study, this research was employed non-probability sampling techniques. Both convenience and purposive sampling techniques had been used in this study. The former has been implanted in this study to select respondents of study, because they happen to be at the right place and time. Later has been employed in this study with aim of to select some parts of the Gondar city in which the investigator believes that consumers of bottled water will be available. Specific places which data was collected from hotels & restaurants, sports area, recreation centers, coffee houses, supermarkets and university of Gondar lounges.

The sample size for this study was 384, however 4% non-response rate was expected and it was increased to 400. The population of the study is unknown and infinite ( Cochran, 1963 ).

, based on this result sample size

The primary instrument for data collection in this research was designed through structured questionnaire, which consists of closed-ended questions with five point Likert scale statements. Questionnaires has been adapted and constructed from different previous studies and literatures ( Alhedhaif et al., 2016 , Anand et al., 2013 , Andihka et al., 2016a , Andihka et al., 2016b )

To assure reliability and validity of questionnaire, questionnaire has been pre-tested on a small sample of 30 consumers of bottled water products. Questionnaire has been distributed to sample of 400 consumers of bottled water products and data has been collected within days of March 1 ^st -29^th 2017.

Zikmund et al. (2010) , suggested that scales with coefficient alpha between 0.6 and 0.7 has fair reliability for further analysis. To assure that data reliable and consistent, Cronbach’s alpha coefficients test has been done. The test revealed that price has (0.83), product quality (0.781), packaging (0.682), advertisement (0.793), brand name (0.679), brand image (0.920) and brand availability (0.840) which indicate the instruments are reliable and acceptable for further data analysis. In order to ensure the content validity discussion with experts in study areas has been made.

After data had been collected, coded, screened and processed, data analyses were made by using both descriptive, bivariate correlation, multiple linear regression models, independent sample t-test and one way ANOVA was done. Multivariate data assumptions test has been done and acceptable results found for linearity, Collinearity, normality and homoscedacity. Descriptive statistics have been employed, to analyze data that related to demographic profile of respondents, correlation coefficient has been employed to show the interdependence between the seven explanatory variables; price, product quality, packaging, advertisement, brand name, brand availability, and brand image and dependent variables that is consumer brand choice decision. Multiple linear Regression analysis was used to test the significance contribution of each independent variable to the dependent variable brand choice decision and independent sample t-test and one way ANOVA has been employed to examine relationship between underlying factors of consumers brand choice decision and demographic profiles of respondents ( Pallant, 2016 , Zikmund et al., 2010 )

Hypotheses of study

H₁ : There is significant and positive relationship between packaging and brand choice decision of consumers on bottled water products.

H₂ : There is significant and positive relationship between product quality and brand choice decision of consumers on bottled water products.

H₃ : There is significant and positive relationship between price and brand choice decision of consumers on bottled water products.

H₄: There is significant and positive relationship between advertisement and brand choice decision of consumers on bottled water products.

H₅: There is significant and positive relationship between brand name and brand choice decision of consumers on bottled water products.

H₆: There is significant and positive relationship between brand image and brand choice decision of consumers on bottled water products.

H₇: There is significant and positive relationship between brand availability and brand choice decision of consumers on bottled water products.

H_8: There is significant difference between demographic profile of respondents and factors that respondents consider in their brand choice decision for bottled water products in Gondar town.

Results and Findings

This section describes descriptive statistics on respondent’s demographic characteristics of respondent and respondents, that distribution by gender, age, education occupation, income and bottled water usage behavior.

Table 1 Demographic characteristics of respondents

No		Frequency	Percent (%)
1	Gender of respondents
	Male	227	57.5
	Female	168	42.5
2	Age (In Years)
	18-25	101	25.6
	26-35	137	34.7
	36-45	113	28.6
	46 and above	43	11.2
3	Educational Level
	Primary and Secondary	1o3	26.1
	University and College student	52	13.2
	Diploma	52	13.2
	First Degree	134	33.9
	Masters and Above	54	13.7
4	Monthly Income (In birr)
	Less than 1000	40	10.1
	1001-2000	46	11.6
	2001-3000	60	15.2
	3001-4000	77	19.5
	4001 and above	172	43.6
5	Occupation
	Student	80	20.8
	Government employee	150	38.0
	Private business owners	99	25.1
	NGO’s employee	51	12.9
	Unemployed	13	3.3
6	Bottled Water Usage Behavior
	Everyday	116	29.4
	Once in a Week	78	19.7
	More than once in a Week	146	37.0
	Others	55	13.9

Majority of respondents were males. The classification of sample based on age seems to be quite appropriate because the taste and consumption pattern of people of different age groups vary from moderately to significant from one another. Sample population largely dominated by age group of 26-35 (34.7%) followed by the group comprising the age group of 36-45. This reveals that brand users for bottled water products prevalent middle aged groups which comprises 63%.Education plays important role in influencing human action and buying behavior. Majority of respondents were bachelor degree holders (33.9%) followed by primary and secondary education (26.1%). Most of the respondents earns4001-above (43.6%), 3001-4000 (19.5%), 2001-300 (15.2%) and those others earn a monthly income that is more than 5000 Ethiopian birr was (14.7%).This might be explained by the fact that a great part of the sample population were highly educated and therefore probably earns a better income. Majority of respondents are government employee (38%) and private business owners (25.1%). The buying behavior of respondents revealed that 37%, 29.4% and 19.7% of respondents were drinking bottled water more than once in a week, every day and once in a week respectively.

Table 2 Top of Mind Brand Recall

	Frequency	Percent	Valid Percent	Cumulative Percent
Gift	24	6.1	6.1	6.1
Aquaddis	36	9.1	9.1	15.2
Guna	43	10.9	10.9	26.1
Abyssinia Spring	86	21.8	21.8	47.8
Eden	61	15.4	15.4	63.3
Origin	5	1.3	1.3	64.6
Agmas	25	6.3	6.3	70.9
Aquasafe	23	5.8	5.8	76.7
Yes	42	10.6	10.6	87.3
Arki	17	4.3	4.3	91.6
Safi	2	.5	.5	92.2
Hiwot	14	3.5	3.5	95.7
Selam	4	1.0	1.0	96.7
Cool	8	2.0	2.0	98.7
One	5	1.3	1.3	100.0
	Total	395	100.0	100.0

Most respondents recall Abysina first, Eden Second, Guna third, Yes fourth, Aquadiss fifth and Gift six. The rest share of mind is insignificant.

Table 5 Model Summary

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.864a	.746	.742	.163	.746	162.734	7	387	.000
a. Predictors: (Constant), Bran Name, Brand Image, Advertisement, Quality, Price, Availabilty, Packaging
b. Dependent Variable: Brand Choice

The regression model summary revealed that explained R square that how much of the variance brand choice of consumers was explained by the determinant factors of consumers brand choice decision. Model coefficient of determination or R²was indicated that 74.6% of the variation in the Brand Choice function can be explained by price, product quality, packaging, advertisement, brand name, brand image and brand availability of a particular bottled water. The remaining 25.4% variations on brand choice of bottled water product were explained by other variables.

ANOVA F-test revealed that the model is significance; all independent variables were related to brand choice decision and F-count at 162.734 with p-value of 0.000 which is less than alpha value 0.05. The p-value is less than <0.05 means that all explanatory variables influence consumers bottled water brand choice. Hence, model was significant, there were linear relationship in multiple regressions and it indicates that the variation explained by the model is not due to chance.

Table 6 Brand choice decisions and determinant factors

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	T	Sig.
		B	Std. Error	Beta
1	(Constant)	.236	.161		1.467	.143
	Price	-.147	.032	-.141	-4.599	.000
	Quality	.056	.022	.075	2.504	.013
	Advertisement	.079	.021	.120	3.790	.000
	Availabilty	.144	.036	.140	3.998	.000
	Packaging	.197	.038	.197	5.164	.000
	Brand Image	.394	.025	.482	15.519	.000
	Bran Name	.223	.027	.279	8.176	.000
a. Dependent Variable: Brand Choice

Brand choice decision of consumers on bottled water are affected by Brand availability, advertisement, brand image, Price, brand name, packaging and product quality (0.140), (0.120), (0.482), (-0.141), (0.279),(0.197) and (0.075) respectively with their significance values of 0.000, 0.000, 0.000, 0.000, 0.000, 0.000 & 0.013. There was positive significant relationship between variables and consumers brand choice decision. Since, coefficients of the predictor variables were statistically significant at less than 0.05, so the hypotheses related with advertisement, brand image, price, brand name, brand availability, packaging, and product quality were accepted.

Demographic Profile and Brand Choice Decisions

One Way ANOVA and Independent sample T-test analysis has been employed to examine relationship between the underlying factors of brand choice decision and demographic profiles of respondents.

Table 7 Relationship between gender and determinant factors of brand choice decision

Source: SPSS output (2017)

An independent sample T-test analysis exhibited that there is a significance difference between gender groups and underlying factors of consumers brand choice decision. Price and advertisement are statistically significant factor with their p-value of 0.036 and 0.030 respectively. Therefore, there is a statistically significant mean difference between determinant factors of brand choice decision and gender of respondents. Thus the management need to further study and segment the pricing and advertisement decisions based on gender difference.

Table 8 Relationship between education and determinant factors of brand choice decision

Source: SPSS output (2017)

The product quality is a determinant factor that is considered in bottled water brand choice among consumers who are in different educational groups. This indicates that all variables except product quality are not used a selection criteria by different educational groups of respondents.

Table 9 Relationship between occupation and determinant factors of brand choice decision

Source: SPSS output (2017)

The one way ANOVA test values revealed that the group means differ between underlying factors and occupational groups with regard to brand advertisement has been represented by F-ratio at 2.233 with p-value of 0.05 which is equal to 0.05, therefore, there is statistically significant mean difference between underlying factors of brand choice i.e. advertisement and different educational groups of respondents.

Conclusions

This study found that price, product quality, brand name, advertisement, packaging, brand availability and brand image, as a critical to brand choice of consumers for bottled water products in Gondar city. Variation on brand choice based on respondent’s educational, occupation and gender groups were statistically significant. However, variation on brand preference consumers for bottled water products, based on respondent’s age and income were statistically insignificant.

Brand image is first dominant factor in order of its contribution to brand choice of consumers for bottled water products. If consumers have positive perception of a brand, they tend to choose a brand and this has positive effect on customers repeated purchase of brand.

Brand name is has a statistically significant and positive relationship with consumers brand choice decision for bottled water. This factor considered as the second important factor that influences consumers brand preference for bottled water products. Brand name is composed of manufactures reputation, relationship with other brands, quality assurance, taste and odor, besides this, it associated with value it provides to customers. Packaging is the third most contributing factor and has significantly positive relationship to brand choice of consumers for the products. Packaging is an essential part of bottled water marketing strategies and it makes the brand and differentiates from competitors. Packaging in various serving sizes (large, small and medium) can expand a product into new target markets or help to overcome cost barriers. It is capable enough to drive and influence the brand choice decision of consumers for bottled water products.

On the other hand, price is an important factor that found to be significant predictor of brand choice decision for bottled water. Most of study participants believe that affordability and reasonably price influences their brand choice decision for bottled water products.

Advertisement is found to be the determinant factor in brand choice decision for bottled water. Consumers prefer to buy bottled water product that frequently exposed by advertisement. The probability to choose the advertised brand will increase.

Brand availability was statistically significant predictor variable to brand choice decision. Since most of bottled water brands in Ethiopia exhibits almost similar product attributes (taste, mineral content, size…), the brand which is distributed intensively can get the chance to be chosen by many consumers who look for ease of availability. Products may be provided at a time that is most convenient and accessible for the customer to be chosen by users. Not least but, lastly, product quality was found to be significantly contributing factor to consumers brand choice decision for bottled water.

Recommendations

The determinants of brand choice for bottled water products are advertisement, price, brand image, product quality, brand availability, packaging, and brand name. These dimensions have an important role in consumers brand choice decision for bottled water products and they provide clear map which are significant points that determine the strengths in consumer’s brand choice decision for bottled water products.

Ø The bottled water firms’ management are advised to set price for its brand reasonably that is consistent with the quality, ingredient contents, resource availability, price, quality and value relationship because most of the consumers consider this issue as significant. It is advised to bottled water industry to restructure prices in a manner that is affordable to customers.

Ø Packaging attributes is essential for the success of a product. Bottled water companies have to put in more effort to create visually attractive packaging shape and design, preferred package size; using more distinctive, upscale new packaging, creative and up-to date logos. It is better to bottled water industries to set packaging standard that can implement packaging strategy accordingly for better design and attractiveness. They have to integrate cool colors, appealing coverings and attractive bottle shapes with rippled texture and seals.

Ø It is better for bottled water industry to improve customer’s positive perception about company through developing company’s positive characteristics through green marketing, healthiness and purity of product, community activity involvement, sponsoring and event marketing.

Ø Consumers spend little effort on the consumption decision for low involvement products, recognizing brand name alone is sufficient to decide which brand to purchase. Therefore, it’s better to companies to choose brand name that is well known, attractive and prestige by considering water sources; natural springs, mountains and waterfalls names that are psychologically connected and inspire a notion of purity, quench and safety to outperform in market place.

Ø Bottled water firms are advised to increase frequency of brand advertisement, to design message that is persuasive, creative and develop positive relationship with channel members.

Ø Bottled water consumer may view quality of the product in terms of having quality assurance, acceptable quality standard, purity, organic nature, taste, source and being nutritious such as high in mineral content of brand. Perception of quality of bottled water comes from the extrinsic marketing communication. It is recommendable that bottled water industry to use different positioning strategies, manufacturing process technology, keeping international quality standard and consistent quality and use an ingredient that put their brand unique in the eyes of the consumers and able to create the point of difference for brand.

Ø Given that bottled water is a low-involvement product, availability of the brand is important for decision-making. Therefore, companies should consider their distribution networks, to guarantee level of product availability that can able to satisfy given market demand throughout the country and provide product easily available/accessible at right time and place. Otherwise, customers prefer to buy bottled water product that is easily available for them in shopping display/supermarkets.

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