March 2013
Field: Economics
Treatment: Economic Sciences
Abstract:
In the highly competitive environment of the food industry, maintaining and developing the market is the result of brand performance. Therefore, identifying the effect of the brand on the performance of food sales (in this research, dairy products) is considered an important issue in strategic decisions. The data was collected through a questionnaire from 20 companies producing dairy products. The panel data method was used to test the model. The Eviews software was used to test and estimate the model. In this research, it has been addressed that the characteristics of commercial brands affect consumers' behavior towards the decision to buy dairy products, and the functional and symbolic characteristics of the brand significantly play a role in consumers' decisions.
Chapter First:
Research generalities
Introduction:
Today, the importance of the concept of brand in the purchase of customers is so much that some experts refer to it as a complete product and believe that many times customers buy brands instead of buying a product. Brands are often a reminder of all the interaction functions and prestige of the organization for customers. Knowing the causes and factors affecting the creation of a brand and prioritizing these factors has become doubly important and makes it necessary to carry out extensive research in this field. Based on the claims of marketing researchers and practitioners who often claim that brands have price elasticity characteristics, evidence has been obtained from empirical studies by Mahajan and Wind (1986), Narasimhan and Sen (1983), Shaker and Hall (1986), Urban and Hauser (1980) who reported that a brand has its own elasticity or elasticity, a finding that is consistent with demand theory. Of course, price is not the only factor influencing traction, but consumers' sensitivity to price is a central input for marketing strategies and tactics. This research evaluates elasticity or elasticity in dairy products in different brands. 2-1 Topic: This research examines food brands on the elasticity of dairy consumers' demand in Iran. That is, to what extent can trademarks affect the demand of dairy consumers in Iran?
3-1 Statement of the problem: Demand elasticity, which is the percentage of changes in the amount of demand compared to price changes. To what extent can trademarks affect changes in the quantity demanded of dairy products? Most research focuses on factors influencing pull, consumer-related characteristics, demographics, and physiography (eg, income level, social class, age, size, family, education, home value, work status, and ethnicity). Few researches have considered brand characteristics as influencing factors on supply and demand elasticity. Based on the research conducted to test the behavioral perspective model, they showed evidence that consumer behavior is influenced by the benefits that consumers get from buying and consuming products, and these benefits are divided into two categories: functional rewards that are obtained from using the value of the product or service, and informational rewards that are inherent in the social status of having and using the product. These benefits derive from the characteristics of commercial brands, whether they are well-known or less well-known, whether they are of high or low quality, with and without additional features. Consumers consider all these features before making a purchase decision. Evidence shows that consumers pay significant attention to the functional and symbolic attributes of a brand when making purchase decisions. Buying food is sensitive to both of these aspects. 4-1 Necessity of conducting research: Since there is currently a great diversity in brand names or food brands related to dairy products in Iran, and considering the significant population of dairy consumers in Iran, this research examines various factors and the effect of these factors on the elasticity of consumer demand and tries to introduce important and significant factors that affect dairy buyers. These factors can be such as quality, advertising, price, distribution factors, support and support of external factors, or even imitation of similar foreign goods.
1-5 Research Objectives: The purpose of this research is to investigate and find the effects of dairy brand names on consumer demand elasticity. Despite the presence of various brands and brand names in the dairy industry in Iran, what are the reasons why some brands have better sales and are more welcomed by consumers? No?
Does the brand-specific feature have an effect on price elasticity, especially with regard to the utility benefit and informational benefit of brands?
Hypotheses:
H1: Price elasticity of supply and demand is different in different brands and products.
H2: Price elasticity of supply and demand is different in different products and brands when prices have different rates of change.
H3: Informational and functional benefits are both brand elements that are effective in predicting the purchase amount of consumers.
H4: Informational benefits are positively related to consumer purchase amount.
H5: Functional benefits are positively related to consumer purchase amount.
7-1 Definitions of words:
1-7-1 Elasticity of demand: The percentage of changes in the amount of product demand divided by the percentage of changes in the price of the product. In other words, this elasticity shows that for a one percent change in the price of the product, the demand for it changes by how many percent. Goods are classified according to the price elasticity of demand: goods with elasticity, goods with low elasticity, goods with unit elasticity, goods that are perfectly inelastic, goods that are perfectly elastic. The price elasticity of the demand of each product is determined by the following factors:
A) The number of substitute goods: the more and better the number of substitute goods, the higher the price elasticity.
B) The share of the product in the individual budget: The greater the share of the product in the individual budget, the greater its elasticity.
C) The price of the product: usually as the price increases, the elasticity also increases.
D) Time: usually in a long period of time due to the reaction and The change in consumer behavior increases the tension. 2-7-1 Consumer behavior: Consumer behavior includes the mental, emotional and physical activities that people perform when choosing, buying, using and discarding products and services that are used to satisfy their needs and desires. Paying attention to the information obtained from the previous steps, he chooses a product that he feels satisfies all his needs and buys it.
3-7-1 Purchase: This stage is the stage where all the marketer's activities come to fruition. At this stage, the consumer with
4-7-1 post-purchase behavior: The consumer compares the purchased products with his thoughts, products, competitors, perception and expectations of the product and two states of satisfaction and dissatisfaction which can have different reasons. 5-7-1 Brand: A name, phrase, design, symbol or any other characteristic that characterizes the service or sale of a particular product by which it is distinguished from other similar products and services. The legal title for a brand is a trademark. A brand is something that the audience evokes in the mind and heart of the audience by seeing, hearing, feeling, or any connection with it conceptually, visually, or verbally. It is the perception of a name. In this story, the issue of brand loyalty is one of the most important issues for companies, and companies are always looking for ways to gain and attract customer loyalty, which will provide the basis for repeat purchases.
Chapter two:
Overview of the research:
Literature and documents:
Ehrenberg and England (1990), based on an empirical study, have reported that the pull of food products for brands And different products are not significantly different even when prices are rising or falling at different speeds. This article has investigated this claim by studying the direct observation of consumers' choices, which evaluates the elasticity of food products and different brands.