Research Proposal for Independent Study - I
The Impact of Comparative advertising on Customer’s buying decision
SZABIST Institute of Science and Technology
Significance of the study
Today to be a successful business, the firms need to make a distinctive position in the customer’s minds to obtain the monetary benefits of being different and better then their competitors. Some industries require more such image positioning than others due to their nature of business. The proposal that I am submitting is concerned with one such industry and specifically of two companies that have tried to retain customers through very aggressive marketing more specifically in our research’s case; advertising tactics. We talk about the comparative advertising of Ufone in contrast that of Mobilink Jazz. Comparative advertising inducts the specific mention or presentation of competing brand(s) and a comparison is made or implied. It has been used for quite a long time. It has of course its own advantages and disadvantages; for which it has been banned in some countries whereas appreciated in others like for example, in the United States it is allowed for the sake of free competition whereby in South Africa it is Illegal for direct defaming and insulting competitors which is not an uncommon thing in comparative advertising. We however look at the Pakistani perspective and market nature of the mentioned two telecommunication giants and what results in terms of customer purchase and usage has these advertisements on them.
Aim of the study
This Study aims to find out the effectiveness of the comparable advertisements that Ufone and Mobilink Jazz has made in terms of increased market share and usage of their services. Research Objectives
1. To find the impact of Mobilink Jazz’s comparative advertisements on the whole mobile telecommunications market in regards with the usage/purchase of their services. 2. To find the impact of Ufone’s comparative advertisements on the whole mobile telecommunications market in regards with the usage/purchase of their services. 3. To find out the level of importance (in regards with their purchase/usage of services) that they give to the humor or price packages
1. Is the Humor; a greater determinant for purchase decision in the advertisements? 2. Are the price packages; a greater determinant for purchase/usage decision in the advertisements? 3. What effect does the mention/presentation of other’s brand has on customers? 4. What effect does the copying of Ufone’s fonts and being shown in Mobilink Jazz’s advertisements has on customers in regards with Ufone’s brand equity? Delimitations
1. The time required is not enough to go for proper sampling or a wide (appropriate) sample population as the telecommunications market is above 70% and about 55% has television sets at home in Pakistan. 2. Our financial resources limit us to take samples only from the twin cities.
Concepts and Definitions
Consumers when faced with a stimulus and in our case with the comparative advertisements of Ufone and Jazz, they very firstly select the elements e.g. information or just sheer pleasure, and then adjoining those elements with their respective natures. They create a priority list of those things that as consumers is more worthwhile to them e.g. low prices or brand association/placing personification and thus subconsciously add to the image/positioning that is already developed into their minds. It could be positively or completely distorting the current image/persona or adding negatively to the persistent image that they have. Buying Behavior
The decision processes and acts of final consumers associated with evaluating, buying, consuming, and discarding products after unsatisfactory personal consumption. The main focus of many comparative advertisements of Ufone and Jazz has been to retain customers...
References: Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting
Alexander E. Ellinger a,*, Patricia J. Daugherty b, Quentin J. Plair. (1997). Customer satisfaction and loyalty in supply chain: the role of communication. Transportation Research Part E 35 (1999) 121±134
Bloemer, J., de Ruyter, K., & Wetzels,M
Browne, M. W., & Cudeck, R. (1992). Alternative ways of assessing model fit.
Byron Sharp *, Anne Sharp. (1997). Loyalty programs and their impact on repeat purchase loyalty patterns. Intern. J. of Research in Marketing 14 (1997) 473-486
Fay, C. (1994) `Royalties from Loyalties ', Journal of Business Strategy, 15(2), March± April, 47±51
Francis Buttle & Jamie Burton
Geller, L. (1997) `Thank You So Much For Your Recent Purchase . . . Customer Retention Begins With the Basics ', Direct Marketing, 60(5), September, 58±63.
Gordon Fullerton. (2005). The Impact of Brand Commitment on Loyalty to Retail Service Brands. Canadian Journal of Administrative Sciences Revue canadienne des sciences de I 'administration22(2), 97-1 10
Heskett, J. L. 1997. Putting the service profit chain to work. Har- vard Bus. Rev. 72 (March-April) 164-174.
Michael Lewis. (2004). The Influence of Loyalty Programs and Short-Term Promotions on Customer Retention. Journal of Marketing Research, Vol. 41, No. 3 (Aug., 2004), pp. 281-292.
Noah Gans. (2002). Customer Loyalty and Supplier Quality Competition. Management Science, Vol. 48, No. 2 (Feb., 2002), pp. 207-221
Papassapa Rauyruen, Kenneth E. Miller. (2006). Relationship quality as a predictor of B2B customer loyalty. Journal of Business Research 60 (2007) 21–31
Reinartz,W. J., & Kumar, V. (2000). On the profitability of long-life customers
in a noncontractual setting: An empirical investigation and implications for marketing
Richard L. Oliver. (2004). Whence Consumer Loyalty?. The Journal of Marketing, Vol. 63, Fundamental Issues and Directions for Marketing (1999), pp. 33-44
Svein Ottar Olsen. (2007). Repurchase Loyalty:The Role of Involvementand Satisfaction. Psychology & Marketing, Vol. 24(4): 315–341 (April 2007)
Voss, G. B., & Voss, Z. G. (2000). Strategic orientation and firm performance in an artistic environment. Journal of Marketing, 64, 67–83.
W. T. Tucker. (1997). The Development of Brand Loyalty. Journal of Marketing Research, Vol. 1, No. 3 (Aug., 1964), pp. 32-35
Wouter Buckinx, Geert Verstraeten *, Dirk Van den Poel
Yi, Y., & Jeon, H. (2003). Effects of loyalty programs on value perception, program
loyalty, and brand loyalty
Youjae Yi Hoseong Jeon. (2003). Effects of Loyalty Programs on
Value Perception, Program Loyalty, and Brand Loyalty
Zhilin Yang, Robin T. Peterson.(2004). Customer Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs.
Please join StudyMode to read the full document