market research

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THE EFFECTS OF BRAND IMAGES ON PURCHASE INTENTION IN CATERING INDUSTRY

Chien-Hsiung Lin

Dept. of Hospitality and M.I.C.E. Marketing Management National Kaohsiung University of Hospitality and Tourism

1 Sung-Ho Rd. Hsiao-Kang Kaohsiung Taiwan R.O.C. Email: [email protected]

ABSTRACT

This study is to discuss the relations between brand images on purchase intention in catering industry; quantitative questionnaire survey is preceded in this study. Total 500 copies are distributed and 361 copies are collected, where 354 copies are valid, with the retrieval rate 71%. Having Functionality, Symbolism, and Experientiality in brand image as independent variables and Possibility of Buying, Considered Purchase Product, Recommending Friends for Buying in purchase intention as dependent variables, the casual relationship is explored. After the data analyses with Regression Analysis and Analysis of Variance, the following results are concluded. (1) Brand image presents partially positive effects on Possibility of Buying in purchase intention. (2) Brand image shows remarkably positive effects on Considered Purchase Product in purchase intention. (3) Brand image reveals partially positive effects on Recommending Friends for Buying in purchase intention. (4) Demographic variables appear partially notable effects on the correlations between brand image and purchase intention. Taking Ambassador Hotel Kaohsiung as the research subject, the study is expected to provide precious opinions for catering industry promoting the brand image.

KEY WORDS

Catering Industry; Brand Image; Purchase Intention; Demographic Variables; Moderating Effect.

1. RESEARCH BACKGROUND AND MOTIVATION

According to 2009 Annual Survey Report of Visitors of Tourism Bureau, Rep. of China (Taiwan), delicacy was the key factor in international tourists visiting Taiwan, in which tourists from Japan, Hong Kong, Korea, and Macao were especially attracted to Taiwanese food (Tourism Bureau, Rep. of China (Taiwan), 2009). Apparently, the image of Taiwanese food is internationally approved. While the government progressively developing Taiwan tourism, the potential of Taiwanese food cannot be ignored. The connection between delicacies and specific countries or regions could become the powerful tourism marketing (Richards, 2002; Horng & Tsai, 2010). Consequently, visitors in Taiwan not only could experience the magnificent scenery in Taiwan, but also enjoy the local delicacies and perceive local culture through diet and tourism that Taiwanese food and specialties have play a critical role. Under the impact

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of new living styles in Taiwan, the increasing national income and the changing life styles have delicacy programs and reports be largely discussed and introduced in news reports and magazines. Delicacies have become the common chatting topic among people. For catering industry, the market is getting delicate that simply focusing on products can no longer remain the long-term strength. For people in the new era, the selection of Brand, in addition to product quality, is one of the considerations before consumption. For this reason, Brand Image, Brand Awareness, Customer Identity, and Brand Loyalty are the key factors in establishing a chained business. Effectively promoting customers’ purchase intention through brand image therefore becomes a primary issue for catering industry.

2. LITERATURE REVIEW AND HYPOTHESIS 2.1 Brand Image

Brand image, with the function of driving brand entity, is defined as consumers’ associations with brand names; such associations contain the solid attribute of real perception or the functional attribute of recognition, such as speed and value, and soft attributes, like excitement and reliability. The establishment of brand image requires a lot of energy and efforts that the products will not be delivered to the market without achieving certain quality standard. Bad product quality would affect the brand image and further result in larger loss of the business.

Keegan et al. (1995) regarded brand image as consumers’ overall impression on brands, including the recognition or discrimination of other brands, brand characters, and committed profits. Aaker (1996) defined brand image based on the functional profits and functioned brand image based on emotional profits and self-expression profits; the connection allowed the sustainable management of businesses and built higher relations with customers.

Kamins and Marks (1991) indicated that consumers presented higher brand attitudes and purchase intention towards familiar products with good brand image. Lin (2009) explained brand image as consumers’ overall perception of brands through the brand recognition in the memory, i.e. information-combined product experiences. Peng (2010) considered brand image as the sum of brand perception presented by consumers’ unique concepts of product characteristics or products which were reflected by the relations between brand perception and brand association in the memory. Kotler (1997) regarded brand image as consumers’ brand belief developed from the attributes of each brand. Keller (2001) pointed out brand image as the perception of brands which responded to the brand association in consumers’ memories, while brand association was the information connection between individual memory and brands. Park et al. (1986) regarded consumer demands as the key factor in specific products as well as the major basis of product design and further proposed three dimensions for brand image, as follows.

1) Functionality, the real profits of products or services, focused on solving consumers’ problems that it was generally designed for consumers’ basic demands.

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2) Symbolism, the added value of products or services, stressed on product brands satisfying consumers’ internal demands, such as self-value enhancement, role orientation, group integration, and self-identity that such products were generally designed for connecting individuals with specific groups, roles, or self-image. 3) Experientiality, the perception of products or services, emphasized to satisfy

consumer demands of perceived pleasure, diversity, and perceived stimulation for desired products that such products were commonly designed for satisfying internal demands for stimulation and diversity.

2.2 Purchase Intention

Purchase intention is regarded as consumers’ behavioral intention after receiving the advertisement. Zeithaml (1988) indicated that consumers’ purchase intention was often determined by the perceived profits and value. Dodds et al. (1991) showed purchase intention as the possibility of intending to purchase a product, as the probability, possibility, and intention of a customer willing to purchase a product. Spears and Singh (2004) considered purchase intention as the effort of an individual consciously planning to purchase the products of a brand. Zeithaml et al. (1996) pointed out behavioral intention as the index of customers retaining or leaving a business. Lin (2009) defined the purchase intention as the respond probability of customers purchasing the specific products. He & Hu (2008) explained that purchase intention was the transaction after consumers evaluating the overall products, i.e. the attitudes towards purchase behaviors. Zeithaml (1988) indicated that consumers’ purchase intention would be affected by individual intrinsic and extrinsic characters, objective value, quality perception, and value perception.

Hsu (2009) stated the purchase intention as the subjective probability of customers selecting specific brands. He & Hu (2008) measured purchase intention with the dimensions of willing to purchase, Worth of purchase, and suggesting others to purchase. Schiffman and Kanuk (2000) measured purchase intention by enquiring consumers’ intention to select certain brands, including Absolutely, Possibly, Uncertain, Possibly Not, and Never. In Chang’s (2009) scale, Possibility of Buying, Considered Purchase Product, and Recommending Friends for Buying were used for measuring consumers’ purchase intention. Biswas (1992) measured purchase intention with the dimensions of Possibility of consumers purchasing the products, Possibility of consumers purchasing the products when deciding to purchase, and Possibility of recommending others purchasing the products.

2.3 Effects of Brand Image on Purchase Intention

Favorable brand image is the key factor in purchasing intention and Cause consumers to purchase intention (Shen & Chou, 2006; Jo, Myung-Soo, Nakamoto & Nelson, 2003; Keller, 1993). After perceiving the value, consumers are likely to appear purchase intention (Lin & Chen, 2006) that brand image plays a critical role in purchase decision. Besides, well-known brand image could become the major choice of purchasing specific products (Macdonald & Sharp, 2000) that brand image appears positive effects on purchase intention (Hsueh & Lee, 2008). However, brand image represents consumers’

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viewpoints of a business that they would select the products with favorable business image.

Symbolic brand image could enhance consumers’ purchase intention. Lin & Hong (2009) indicated that emotional advertisement could better stimulate consumers’ purchase intention than rational ones. Chen & Chang (2010) pointed out the positive effects of brand image on consumers’ purchase intention that better brand image would enhance consumers’ purchase intention. A recent study finds the relevance of income level of the consumer, compared to lower income bracket consumers, higher income bracket consumers show higher purchase intention as a result of perceived value (Tseng & Tsai, 2011). When Compared to. Accordingly, in this study, the following hypotheses are made.

H1: Brand image presents significantly positive effects on Possibility of Buying in purchase intention.

H2: Brand image shows remarkably positive effects on Considered Purchase Product in purchase intention.

H3: Brand image reveals notably positive effects on Recommending Friends for Buying in purchase intention.

H4: Gender appears outstanding effects on the correlations between brand image and purchase intention.

H5: Age shows significant effects on the correlations between brand image and purchase intention.

H6: Occupation presents significantly positive effects on the correlations between brand image and purchase intention.

H7: Educational background presents notable effects on the correlations between brand image and purchase intention.

H8: Disposable income appears significant effects on the correlations between brand image and purchase intention.

3. RESEARCH METHOD 3.1 Research Framework

Summing up the above literature review, the conceptual framework (Fig. 1) is drawn to discuss the correlations among demographic variables, brand image, and purchase intention.

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Fig. 1: Research Framework 3.2 Research Sample and Sampling Data Analysis

Inaugurated in 1981, Ambassador Hotel Kaohsiung was appraised as a five-star hotel with Ambassador Hotel Taipei in 1983 and received the first Taiwan Golden Quality Awards in 1997. Approved of ISO-9002, it was appraised by Business Traveler as the cleanest and the most comfortable five-star international hotel with the best services. The hotel is equipped with 453 luxurious guest rooms, seven restaurants and bars, 19 conference rooms and various leisure facilities. By distributing and collecting questionnaires on-site, the customers of Ambassador Hotel Kaohsiung are sampled. Total 500 copies are distributed; within 361 retrieved copies, 354 copies are valid, with the retrieval rate 71%. Each retrieved copies is regarded as a valid sample. SPSS is utilized for data analyses, and Factor Analysis, Reliability Analysis, Regression Analysis, and Analysis of Variance are applied to testing the hypotheses.

4. RESEARCH RESULT AND ANALYSIS 4.1 Factor Analysis of Brand Image

Based on the dimensions for brand image proposed by Park et al. (1986), three factors were extracted with Factor Analysis, including Functionality (eigenvalue=2.771, α=0.88), Symbolism (eigenvalue=2.348, α=0.85), and Experientiality (eigenvalue=1.726, α=0.90). The covariance explained achieved 83.162%.

Referring to the dimensions for purchase intention proposed by Chang (2009), three factors were extracted with Factor Analysis, containing Possibility of Buying (eigenvalue=2.162, α=0.82), Considered Purchase Product (eigenvalue=1.554, α=0.83), and Recommending Friends for Buying (eigenvalue=1.237, α=0.87). The covariance explained reached 76.813%.

4.2 Brand Image and Purchase Intention in the Correlation Analysis

1) Brand image and Possibility of Buying in purchase intention in the correlation analysis

Table 2, the results showed significant effects of Functionality (β=1.835*) and Experientiality (β=2.273**) on Possibility of Buying with Multiple Regression Analysis to test H1, that H1 was partially supported.

Demographic Variables Purchase Intention

1. Possibility of Buying 2. Considered Purchase Product 3. Recommending Friends for

Buying

Brand Image _H1~3

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2) Brand image and Considered Purchase Product in purchase intention in the correlation Analysis

Table 2, the results presented the remarkable effects of Functionality (β=1.538*), Symbolism (β=1.762*), and Experientiality (β=1.633*) on Considered Purchase Product with Multiple Regression Analysis to test H2, that H2 was supported. 3) Brand image and Recommending Friends for Buying in purchase intention in the

Correlation Analysis

Table 2, the results revealed outstanding effects of Functionality (β=1.946*) and Experientiality (β=2.736**) on Recommending Friends for Buying with Multiple Regression Analysis to test H3, that H3 was partially supported.

Table 2

Multiple Regression Analysis of Brand Image and Purchase Intention Dependent

Variable→ Purchase intention

Independent

Variable↓ Possibility of Buying

Considered Purchase Product

Recommending Friends for Buying

Brand image β Beta ρ β Beta ρ β Beta ρ

Functionality 1.835* 0.215 0.017 1.538* 0.169 0.042 1.946* 0.231 0.005 Symbolism 1.036 0.146 0.042 1.762* 0.198 0.021 0.815 0.102 0.138 Experientiality 2.273** 0.287 0.000 1.633* 0.181 0.031 2.736** 0.327 0.000 F 16.725 21.337 27.948 Significance 0.000*** 0.000*** 0.000*** R2 0. 216 0.253 0.327 Regulated R2 0.038 0.047 0.052

Note: * stands for p<0.05, ** for p<0.01 Data source: Organized in this study

4.3 Moderating effects of demographic variables

1) Effects of gender in the relationship between brand image and purchase intention The empirical results, Table 3, showed the notable effects of gender on the relations between Functionality and Possibility of Buying, between Experientiality and Considered Purchase Product, and between Functionality, Symbolism and Recommending Friends for Buying Recommending Friends for Buying that H4 was partially supported.

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2) Effects of age in the relationship between brand image and purchase intention The empirical results, Table 3, revealed the remarkable effects of age on the relations between Functionality, Symbolism, Experientiality and Possibility of Buying, between Symbolism and Considered Purchase Product, and between Functionality, Experientiality and Recommending Friends for Buying that H5 was partially supported.

3) Effects of occupation in the relationship between brand image and purchase intention

The empirical results, Table 3, presented the remarkable effects of occupation on the relations between Experientiality and Possibility of Buying, between Functionality, Experientiality and Considered Purchase Product, and between Symbolism and Recommending Friends for Buying that H6 was partially supported.

4) Effects of educational background in the relationship between brand image and purchase intention

The empirical results, Table 3, appeared the outstanding effects of educational background on the relations between Symbolism and Possibility of Buying, between Functionality, Experientiality and Considered Purchase Product, and between Symbolism, Experientiality and Recommending Friends for Buying that H7 was partially supported.

5) Effects of disposable income in the relationship between brand image and purchase intention

The empirical results, Table 3, showed the notable effects of disposable income on the relations between Functionality, Symbolism and Possibility of Buying, between Symbolism and Considered Purchase Product, and between Functionality, Experientiality and Recommending Friends for Buying that H8 was partially supported.

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Table 3

Effects of Demographic Variables on the Relations Between Brand Image and Purchase Intention Demographic Variables Brand Image Possibility of Buying Considered Purchase Product Recommending Friends for Buying

Gender

Functionality Significant Not Significant Significant Symbolism Not Significant Not Significant Significant Experientiality Not Significant Significant Not Significant

Age

Functionality Significant Not Significant Significant Symbolism Significant Significant Not Significant Experientiality Significant Not Significant Significant

Occupation

Functionality Not Significant Significant Not Significant Symbolism Not Significant Not Significant Significant Experientiality Significant Significant Not Significant

Educational Background

Functionality Not Significant Significant Not Significant Symbolism Significant Not Significant Significant Experientiality Not Significant Significant Significant

Disposable Income

Functionality Significant Not Significant Significant Symbolism Significant Significant Not Significant Experientiality Not Significant Not Significant Significant Data source: Organized in this study

5. CONCLUSION

From the research results, Table 2, the B value among dimensions is positive, revealing the positive correlations, that brand image could enhance purchase intention. In this case, it is apparent that customers would consider a catering business with favorable brand image as the priority when choosing catering businesses. Catering businesses therefore should constantly maintain the brand awareness, reinforce the product convenience, particularly emphasize the quality, and apply advertisement to promoting customers’ preference for the business. In addition to retaining the original customers, attracting more customers by enhancing the brand image and product attributes to present favorable perception could promote the purchase rate. It is further suggested that catering businesses should reinforce the marketing of the products approved by GMP or Health Food, strengthen the brand image and product value, enhance customers’ symbolism towards the products, and allow consumers further understanding the safety of products. Moreover, Packing is also considered as a critical element. Reusable packing and detailed descriptions of product contents, as a part of marketing, could have customers realize the

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functionality of products. It not only could achieve the objectives of energy saving and carbon deduction, but could build the fresh image of a business. Price reduction strategy could further promote consumers’ Experientiality and purchase intention.

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