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Key drivers of automobile brand choice in sub-Saharan Africa: The case of
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Article in Journal of Product & Brand Management · October 2012
DOI: 10.1108/10610421211276268
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Journal of Product & Brand Management Key drivers of automobile brand choice in sub-Saharan Africa: the case of Ghana Bedman Narteh Raphael Odoom Mahama Braimah Samuel Buame
Article information: To cite this document: Bedman Narteh Raphael Odoom Mahama Braimah Samuel Buame, (2012),"Key drivers of automobile brand choice in sub- Saharan Africa: the case of Ghana", Journal of Product & Brand Management, Vol. 21 Iss 7 pp. 516 - 528 Permanent link to this document: http://dx.doi.org/10.1108/10610421211276268
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Key drivers of automobile brand choice in sub-Saharan Africa: the case of Ghana
Bedman Narteh, Raphael Odoom, Mahama Braimah and Samuel Buame
Department of Marketing, University of Ghana Business School, Accra, Ghana
Abstract Purpose – The paper aims to investigate the determinants of automobile brand choice in Ghana. Specifically, the paper seeks to hypothesize that consumers of automobiles make their purchases based on a multiplicity of factors. Design/methodology/approach – A quantitative approach using questionnaires was adopted to survey 1,020 respondents drawn from various workplaces, churches and homes. The data were analyzed using descriptive statistics, exploratory factor analysis and multiple regression analysis. Findings – The study established that the attributes of a car, emotional connection, external influences, awareness and accessibility make a strong and significant contribution to automobile brand choice in Ghana. Originality/value – The study is one of the few of its nature in sub-Saharan Africa. The new theoretical and empirical insights into factors influencing consumers’ purchase decision of automobiles from the study will be significant to automobile manufacturers and dealers operating in developing countries such as Ghana.
Keywords Automobiles, Brand choice, Ghana, Brand management, Consumer psychology, Brand awareness, Buying behaviour
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
In sub-Saharan Africa and specifically Ghana, market liberalization has ushered in a new economic system where companies compete for the attention of customers to their brands. As such, consumers are daily presented with an array of brands to meet their ever-growing needs. Scholars like (Walker, 2008; Lim and O’Cass, 2001) assert that consumers adopt products as conscious expressions of their
identities and the brands they select are often a symbolic representation of their personality and lifestyles. As a result, a lot of caution often predates the decision-making process especially for high involving products like automobiles. However, consumer brand choice has been made more difficult, especially within an environment that is cluttered with different products, promotions, price information in addition to other economic indices (Huang et al., 2010; Hennessy and Tol, 2011). Interest in consumer brand choices has grown among
marketing practitioners and scholars in the process of understanding consumer brand selection (Hansen and Christensen, 2007). In a Pakistani study for instance, Athar
(2006) noted that for the automotive industry, there are a lot of brand choices of cars to compare and evaluate before making a purchase decision. Hence, it is very critical for companies to understand the customers’ requirements and provide the products that satisfy their needs. Further studies
on consumer brand selection, spanning different products
could be found in the works of (Ross and Harradine, 2004;
Radder and Huang, 2008; Shabbir et al., 2009; Tang et al., 2011).The results from these studies indicate that multiple
factors have underpinned consumer brand choices. However,
the results on the relative importance of these factors have not
been consistent. For instance, some scholars have found
awareness as a major determinant of brand choice (Keller,
2001; Srinivasan et al., 2010; Huang and Sarigollu, 2012)
while others found brand image (Erdem and Swait, 2004;
Freling and Forbes, 2005; Baek et al., 2010), or accessibility
(Lin and Chang, 2003; Van Auken, 2003; Kim, 2008), price
(Erdem et al., 2006; Chattopadhyay et al., 2009; Ching et al., 2009) as the major determinants of brand choice.
Subsequently other external factors such as country-of-
origin (COO or CO) and impact of family and friends were
also found to influence consumer choice of brands
(Evanschitzky et al., 2008; Wang and Yang, 2008). Moreover, studies on automobile choice have mostly
focused on developed country consumers (De Haan et al.,
2006; Diamantopoulos et al., 2011; Lieven et al., 2011, Tang et al., 2011) with very little focus on automobile brand choice in developing countries especially in sub-Saharan Africa.
Recent research indicates that the market for the automobile
industry is generally saturated in developed countries but
believed to be growing in developing countries (Simon and
Reed, 2007; Peters et al., 2011). Thus developing countries
could provide a major market for automobiles, hence
understanding their branch choice decisions is a strategic
necessity for automobile manufacturers and dealers. The
purpose of this study is to integrate the various factors
determining consumer brand choice of automobiles and to
empirically investigate them within a developing country
context. The study will thus, provide automobile
manufacturers and dealers with the critical factors
influencing consumer choice of automobiles in developing
countries and help to develop appropriate marketing
strategies for satisfying them.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
21/7 (2012) 516–528
q Emerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610421211276268]
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Literature review and conceptual framework
The concept of brands
The concept of brand and branding have been discussed by
several contemporary marketing scholars (De Chernatony
and McDonald, 2003; Jones and Slater, 2003; Bertilsson,
2009). A brand is defined as a name, term, sign, symbol,
design or a combination of these that identifies the maker or
seller of a product or services (Aaker, 1991; Kotler and
Keller, 2009). Brands have also been viewed to go beyond the
physical components of what they stand for to encompass
additional attributes which are important considerations for
consumers’ buying decisions (De Chernatony and
McDonald, 2003). In modern times, brands function as
symbols that enable consumers to identify and separate one
producer from another; empowering consumers with the
ability to trace one product back to the manufacturer and
hold them responsible for its quality (Koehn in Bertilsson,
2009). Moreover, brands are today ascribed with almost
divine characteristics that serve as strategic business assets
essential for firms to develop if they are to compete
successfully (Bertilsson, 2009).
Drivers of brand choice
There is unequivocal evidence that researching into factors
that underpin consumers’ needs and wants is crucial to
formulating marketing strategies to serve them. A search
through the literature indicates that multiple factors underpin
consumers’ choice of automobiles. The next section discusses
snapshots of the major factors and formulates hypotheses to
guide the empirical investigation.
Brand awareness Several researchers (Jiang, 2004) have found brand awareness
to be an important element that plays a vital role in
consumer’s choice of brands. Lin and Chang (2003)
established in their study that brand awareness has the most
powerful influence on consumers’ purchase decisions and
ultimately leads to consumer brand loyalty. Keller (2009)
argues that in order to gain customer-based brand equity, the
consumer must be aware of, and be familiar with the offering
and hold brand associations that are strong, favorable and
unique in comparison with other brands offered in the same
category. Similarly, Esch et al.(2006) assert that customer- based brand equity occurs when the consumer is aware and
familiar with the brand and holds positive associations about
the brand in memory. In discussing the concept of brand
awareness, Keller (2009) refers to it as the strength of the
brand node in memory, which explains how easy it is for the
consumer to remember the brand. Hence, the first task of
advertising is to build brand awareness and expose the brand
to all potential consumers (Keller, 2009). Consumer behavior theorists (Wilson, 2000; Schiffman and
Kanuk, 2009) have argued that brands that have some level of
awareness are far more likely to be considered as opposed to
those with lower levels of awareness (Mowen and Minor,
2001). Notably, consumers with high brand awareness do not
always spend a great deal of time or cognitive effort in making
purchase decisions. They often try to minimize decision-
making by using heuristics such as “I buy the brand I have
heard of” or “choose the brand I know” or purchase only
familiar, well-established brands (Keller, 1993). Hence, the
first hypothesis for the study is stated as follows:
H1. There is a positive relationship between brand awareness and consumer brand choice of automobiles.
Brand image Kotler and Keller (2009) described brand image as the
perceptions and beliefs held by consumers about the brand.
In today’s dense marketplace, consumers often decide to
purchase brands based on their image or identity. The identity
of a brand is central to the brand’s strategic vision since it
embodies the basic characteristics that will sustain it over
time; just as a person’s identity provides direction, purpose
and meaning (Aaker, 1996). Thus, a brand’s identity is the
sum of unique associations that consumers have when
confronted with the brand (Keller, 2003). Marketing researchers (Keller, 2009; Bian and Moutinho,
2011) have proposed that brand image is an important
element of brand equity. Evidence of the role of brand image
as a specific influence on consumers’ perceptions about
products or services has been provided in both qualitative and
quantitative studies (such as Martinez et al., 2008; Pappu et al., 2005; Tasci et al., 2007). The results indicate that a brand is a powerful means of differentiation and as a result
becomes a competitive marketing strategy for positioning. For
instance, Kwon (1990) reported that positive brand image is
mostly associated with preferred brands. Also Lassar
et al.(1995) found out that brands with high image ratings always have higher brand equity and premium price. When
the customer experiences that the brand is delivering the
benefits that it promised to undertake, brand bonding occurs
(Kotler and Keller, 2009) and the customer’s resistance to
switching to an unknown brand increases (Aaker, 2003).
Thus, the brand’s image becomes the compass of its identity,
pointing towards the place where it can leverage the most
power in the category in which it competes and establish the
most powerful influence within the lives of its potential users.
In the automobile industry, different automobiles have been
endowed with different brand images. We formulate the
second hypothesis for the study as follows:
H2. There is a positive relationship between brand image and consumer brand choice of a car.
Accessibility Another area that has been of immense interest with regards
to literature on consumer brand decision-making is the
convenience with which consumers are able to obtain their
choice of brands often referred to as accessibility (Branding
Strategy, 2010). According to Lin and Chang (2003),
convenience of a brand has a significant impact on
consumers’ brand choice. In other words, easy access to
brands in a store is vital when buying any product. The car
brand must be available where consumers shop or within a
reasonable distance for it to be considered within the choice
set (Schiffman and Kanuk, 2009; Van Auken, 2003). Certainly, distribution channels and location are important
to brand accessibility, but so also are hours of operation,
waiting times, product availability and process simplicity.
Within the context of consumer decision making, especially
when evaluating potential alternative brands during the pre-
purchase stages, the evoked set refers to the specific brands
(or models) a consumer considers when making a purchase
within a specific product category (Lin and Chang, 2003).
Regardless of the total number of brands in a product
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category, a consumer’s evoked set tends to be quite small on
average, often consisting of only three to five brands based on their accessibility and convenience to the consumer (Schiffman and Kanuk, 2009). In a study by Emmelheinz et al. (1991), it was found that a
substantial amount of consumers (32 percent) switched brands due to out-of-stock situations. A similar study
conducted recently by Kim (2008) also reported 21 percent of consumers behaving in a like manner. For several automobile buyers, accessibility may not only be limited to the car but also the availability of showrooms and spare parts.
We state the third hypothesis of the study as follows:
H3. There is a positive relationship between accessibility and consumer brand choice of a car.
Emotional connections Recent studies indicate that consumers do connect
emotionally with their brands (Aggarwal, 2004; Algesheimer and Dholakia, 2005; Lynch, 2004; Thompson et al., 2006). The concept has been labeled “emotional brands” because consumers may form an intimate bond with a brand, a bond
that is passionate, similar to the emotional bond a consumer experiences with close circle of friends and/or family (Aggarwal, 2004). Consumers’ perceived “emotional value” refers to their affective reactions to a brand (Supphellen,
2000). General feelings for brands are often reported in elicitation sessions (e.g. “this brand makes me feel good”). The feelings about brands can be mild, intense, negative or
positive (Keller, 2001). Morris et al. (2002) found that emotional response to a brand is a strong predictor of purchase intention and accounts for more than twice the variance of cognition. Gobe (2001) emphasizes the importance of emotions and
proposes the use of emotional branding as a methodology to connect the consumer to the product in an emotionally
profound way. Thus, through emotional branding, a firm creates controls on consumer’s emotions and makes them better receptors to brands (Travis, 2000; Gobe, 2001). Some consumers also become emotionally attached towards a
particular car brand based on their personal ethical value considerations. In this regard, several car brands now prefer to enter new markets with emotional promises rather than with assurances of trustworthiness (Menges, 2003; Rindfleisch
et al., 2009). A good experience with a car brand will remain in the consumer’s emotional memory as a connection made on a level far beyond their basic transportation needs. The
fourth proposed hypothesis for the study is stated as follows:
H4. There is a positive relationship between emotional connection and consumer brand choice of a car.
Price Nowlis and Simonson (2000) empirically provide evidence
that price affects consumers’ choice of brands. Generally, it is accepted that consumers are willing to pay higher prices for brands that they perceive to have high value (Erdem and Swait, 1998; Hermann et al., 2007). Mcdonald and Sharp (2000) stated that price can be used as a reason for brand choice in two ways; either by going for the lowest price in order to escape financial risk or the highest price in order to achieve product quality. According to Soderlund (2000),
price, place and brand are three important factors when deciding on consumers’ purchase choices in product brands.
Cadogan and Foster (2000) argued that price is probably the
most important consideration for the average consumer. Consumers with high brand loyalty are willing to pay a premium price for their favored brand, so, their purchase intention is not easily affected by price. Consumers’
satisfaction may be built by comparing price with perceived costs and values. Price perceptions directly influence satisfaction judgments
as well as indirectly through perceptions of price fairness (Hermann et al., 2007). As a reflection of the brand’s ability to command a price higher than its competitors, the price
premium construct is consequently important for all types of car brands, despite their actual position within the category of automobiles (Chattopadhyay et al., 2009). The fifth proposed hypothesis for the study is thence as follows:
H5. There is a positive relationship between price and consumer brand choice of a car.
Automobile attributes According to Uggla (2004), attributes such as quality are an integral part of brand identity. Product quality encompasses
the features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. In other words, product quality is defined as “fitness for use” or “conformance to requirement” from the consumer’s expected
standards of the brand (Russell and Taylor, 2006). A product’s design and style are favored by all consumers
(Kuksov, 2004). This makes it an extremely powerful and unique tool in the modern marketing environment. Some marketers believe that the design and style of a car brand are actually more influential than advertising in influencing
consumers, as they yield a more direct impact on how they perceive and experience the product. Hofmeyr and Rice (2000) assert that “in most cases, our experience has been such that style and designs are more likely to influence the
consumer perception of the brand as compared with advertising”. For car brands with low advertising, support, style and design take on an even more significant role as the key medium for communicating the brand’s positioning
(Rundh, 2005). Consumers are familiar with the flamboyant design of the Hummer Jeep, the uniqueness of the Jaguar, the mechanical accuracy of Mercedes and BMW among others. As such, we hypothesize that:
H6. There is a positive relationship between car attributes and consumer choice of a car.
External influences In today’s era of globalization, COO of the manufacturing
brands is increasingly becoming more important than the actual country of manufacture. COO refers to the country that a manufacturer’s product or brand is associated with. Traditionally, this country is called the Home-Country or
similarly, the country from which the brand initially originated. Thus, for example, the Honda brand connotes a Japanese COO, while Chevrolet consumers feel that they are using an American brand. In a study by Wang and Yang
(2008), image of the COO of a car was found to be a positive moderator in the relationship between brand personality of a car and consumers’ purchase intention. Specifically, they affirmed that, a positive COO image could enhance brand
personality’s positive impact on purchase intention, whereas a negative COO image could significantly decrease the positive
Key drivers of automobile brand choice in sub-Saharan Africa
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brand personality effect on purchase intention. However,
researchers have suggested that the effect varies from one
product category to another (Pappu et al., 2005; Wu and Lo, 2009). Andaleeb (1995) hinted earlier that consumers, in some
instances, have had perceptions about products and brands
based on their COO and might thus have a positive or
negative connotation towards them when it comes to
purchasing brands from stereotyped countries. The concept
of COO effects on consumer purchase decisions have also
been studied by several scholars (Samiee et al., 2005; Usunier, 2006; Samiee, 2010; Balabanis and Diamantopoulos, 2008;
Diamantopoulos et al., 2011). Other studies have also reported external factors such as consumer’s family,
reference groups and the consumer’s role and status as
major influencers of brand choice (Schiffman and Kanuk,
2009). Our final hypothesis for the study is stated as follows:
H7. There is a positive relationship between other external influences and consumer choice of a car.
The reviews indicate the multiplicity of factors that could
influence consumer choice of automobiles. We integrate these
perspectives to form a broader conceptual framework to guide
the current study. Figure 1 illustrates our conceptual model of
automobile brand choice.
Research design and methodology
Survey instrument
Consistent with previous studies on brand choice (Hansen
et al., 2007; Huang et al., 2010), a survey approach using questionnaires was adopted. The design of the questionnaires
was primarily based on multiple-item measurement scales
adopted from previous research on brand choice. The first
section of the questionnaire elicited demographic information
on age, gender, occupation, income levels and educational
qualifications together with the brands of cars they have
bought. The second section obtained information on the
determinants of automobile brand choice. The questionnaire
was a Likert scale type, and anchored on 1 “strongly disagree”
and 5 “strongly agree”. Awareness was measured with four
variables and was adopted from the literature (Keller, 2008).
Image was also adopted from the works of (Erdem and Swait,
2004; Baek et al., 2010) and was measured with three items. Moreover accessibility was measured with four items and was
culled from the literature (Van Auken, 2003). In addition
emotional connection was also adopted from the literature
(Belaid and Behi, 2011) and is measured with four items.
External influence was equally adopted from the literature
(Wang and Yang, 2008; Schiffman and Kanuk, 2009) and was
measured with five items. Furthermore, price was adopted
from the works of (Chattopadhyay et al., 2009) and operationalized with three variables. Similarly, car attributes
was operationalized with four variables from previous studies
(Russell and Taylor, 2006). Finally, the dependent variable,
overall brand choice was also adopted from the literature
(Radder and Huang, 2008; Shabbir et al., 2009) and measured with three variables.
Population, sample and data collection
The data were collected in March, 2011. A database of
registered private cars in Accra within the last five years was
obtained from the Driver and Vehicle Licensing Authority
(DVLA) out of which the respondents were conveniently
selected and contacted on phone for appointment. The
questionnaire for the study was first pre-tested on 20
executive MBA students of the University of Ghana
Business School who owned cars. Five research assistants
were trained to aid in the data collection due to the large
number of respondents. Subsequently, the questionnaires
were answered by the respondents who were contacted at
various meeting points – workplaces, university campuses,
churches and homes. After four weeks, 1,045 responses were
obtained out of which 1,020 were found usable for the
analysis. The data were analyzed using descriptive statistics, t- test, exploratory factor analysis and multiple regression
analysis.
Data analysis, interpretation and results
Demographic characteristics of respondents
The descriptive analysis from Table I indicates that 58.5
percent of the respondents were males while 41.5 percent
were females. In terms of age, a greater part of the
respondents (81.0 percent) were above the age of 35 years
indicating that they were adults who could own cars in
Figure 1 Conceptual framework for drivers of consumer brand choice of cars
Key drivers of automobile brand choice in sub-Saharan Africa
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Ghana. Furthermore, the educational background of the
respondents revealed that 24.9 percent were tertiary degree
holders, 47.3 percent had post-graduate degrees, 3.4 percent
had PhDs, while 4.4 percent had secondary education
certificates. The remaining 3.4 percent had other
professional qualifications. It is evident from these statistics
that a number of the respondents had more than just a high
school educational certificate indicating that education
background in Ghana is highly correlated with car
ownership. With respect to the profession of the
respondents, 2.9 percent were unemployed while 93.9
percent had employment. Out of the working class, 15.6
percent were self-employed whilst 78.3 percent were salaried
employees. Additionally, 3.2 percent of the respondents were
on pension. Subsequently, a look at the annual income ranges
of the respondents revealed that 6.6 percent earned less than
GHC 10,000 annually, 69.7 percent earned between GHC
10,000 to GHC 50,000 annually, 20.0 percent earned from
GHC 51,000 to GHC 100,000 annually, 2.2 percent earned
from GHC 101,000 up to GHC 150,000 annually whilst 1.5
percent of the respondents have annual earnings of above
GHC 150,000. Table I illustrates the demographic profile of
respondents.
Automobile brands used by respondents
An analysis of the car brands used by respondents is presented in Table II. The results indicate that Toyota had the highest number of users with 334 users representing 32.7 percent, Nissan (161 respondents), Volkswagen/VW (89 respondents), BMW (69 respondents), Mercedes Benz and Honda (59
respondents each), Kia (56 respondents), Hyundai (47 respondents), Ford (25 respondents), Peugeot (24 respondents), Audi (22 respondents), Tata (14 respondents), Jaguar, Rover and Skoda (11 respondents each), Rexton (eight respondents), and Mitsubishi (seven respondents). Respondents who use Suzuki were five whilst Jeep had four. Renault and Chevrolet had two respondents
each.
Descriptive statistics
Table III displays the means and standard deviations of the various variables used in the questionnaire. The results
indicate moderate to high mean values. From the table the highest mean was 3.7732 (I buy a car that is durable) while the lowest was 2.6512 (I buy a car used by my family members and friends).
Exploratory factor analysis (EFA)
The variables measuring consumer choice of automobiles were factor analyzed. Prior to the extraction of factors, the Bartlett test of Sphericity (Approx.: Chi-square ¼ 9,115:383, df. 853, sig. 0.000) and the KMO measure of sampling adequacy (value of 0.931) confirmed that there was significant correlation among the variables to warrant the
application of exploratory factor analysis. Only factors whose eigen values were equal or greater than 1 were selected (Malhotra and Birks, 2007). Moreover variables with loadings of at least 0.5 (Hair et al., 2010) and factors with a reliability threshold of 0.7 (Nunnally, 1978; Hair et al., 2010) were
Table I Demographic profile of respondents
Profile of respondents n %
Gender Male 597 58.5
Female 423 41.5
Total 1,020 100
Age (in years) 25-35 194 19.0
36-45 368 36.1
46-55 236 23.2
Above 55 222 21.7
Total 1,020 100
Educational qualification SHS 45 4.4
Professional 204 20.0
Tertiary 254 24.9
Postgraduate 482 47.3
PhD 35 3.4
Total 1,020 100
Profession Unemployed 30 2.9
Self-employed 159 15.6
Salaried employee 798 78.3
Pensioner 33 3.2
Total 1,020 100
Annual income (in GHC)a
Below 10,000 67 6.6
10,000-50,000 710 69.7
51,000-100,000 204 20.0
101,000-150,000 22 2.2
Above 150,000 15 1.5
Total 1,020 100
Note: aApprox. GHC 1=$0.714 during period of study Table II Brands of cars used by respondents
Brand of car Frequency %
Toyota 334 32.7
Nissan 161 15.8
VW 89 8.7
BMW 69 6.8
Mercedes Benz 59 5.7
Honda 59 5.7
Kia 56 5.5
Hyundai 47 4.6
Ford 25 2.5
Peugeot 24 2.3
Audi 22 2.1
Tata 14 1.4
Skoda 11 1.1
Jaguar 11 1.1
Rover 11 1.1
Rexton 8 0.9
Mitsubishi 7 0.7
Suzuki 5 0.5
Jeep 4 0.4
Renault 2 0.2
Chevrolet 2 0.2
Total 1,020 100.0
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selected for the analysis. In the initial exploration, all the 25 variables were factor analyzed which subsequently yielded eight factors as illustrated in the principal component factor loadings Table IV. The eight factors altogether explain satisfactory 63.6 percent variance.
Varimax rotated principal component loadings
The 25 variables were later rotated using the Varimax rotation as the extraction method. The results revealed that the variables loaded perfectly onto the eight factors. Four variables loaded highly on Factor 1 and were all related to the attributes of the cars. Factor 2 also had four variables which were also related to the emotional attachments which respondents had towards their brand of cars. Furthermore, Factor 3 had three variables which related to the image held about the cars. The fourth Factor had three items and these related to consumer awareness of the brand of car. Factor 5 related to the respondents’ ease of accessibility of a car brand. In addition, Factor 6 had three items and related to the price of the car brands whilst Factor 7 had three factors which were all related to the influence of external factors. The final Factor 8 had only one item (My car brand reflects my social status).
Re-specification and reliability of the EFA
The internal reliability of the eight factors was analyzed through Cronbach’s alpha coefficient. Only factors that met the minimum value of 0.7 as postulated by (Hair et al., 2010) were accepted for further analysis. Also, in order to test the value of the variables that loaded onto the factors, item–to total correlation was set above 0.3 (Parasuraman et al., 1988). Factor 8 was subsequently merged with factor 7 on the basis of conceptual fitness. The result is illustrated on Table V. Consequently, the factors that determine consumers’ choices
of automobiles in Ghana are labeled as Car attributes, Emotional connection, Image of car, Awareness, Accessibility, Price of car and External influences.
The dependent variable
The variables measuring brand choice were also checked for their loadings and Cronbach’s alpha. Results showed that all the variables used had high loadings between 0.661 and 0.782 with a satisfactory Cronbach’s alpha value of 0.902, giving an indication that the variables used also represent a complete structure measuring consumer automobile choice.
Multiple regression analysis
In order to test the relationship between the factors that motivate consumers to choose their brand of automobiles as well as overall brand choice within the Ghanaian automobile industry, a multiple regression analysis was used. Brand choice was used as the dependent variable whilst the drivers of brand choice were used as the independent variables. Table VI presents a summary of the multiple regression least squares results for the dependent and independent variables. Similarly, Table VII also presents the correlation results of the independent variables. The results from Table VI indicate that there is a strong and
significant relationship between the determinants of automobile choice by consumers and overall brand choice (F ¼ 179:625, Prob.F-stats , 0:00). The R-square value ¼ 0:714 indicates that the independent variables explain 74.2 percent of the variance in overall consumer choice of automobiles with an adjusted R-square of 71.3 percent. On the individual determinants, car attributes was found to be the most important determinant of brand choice (b ¼ 0:429, t ¼ 9:121, p ¼ 0:000 , 0:05). This was followed by
Table III t test (descriptive statistics)
Variables Mean Std dev. t df Sig. (two-tailed)
I buy cars which are well advertised 2.9098 1.20681 48.821 1,019 0.000
I buy car brands whose name I remember best 2.9463 1.25172 47.662 1,019 0.000
I choose a car with a unique feature 3.2707 1.32951 49.813 1,019 0.000
I prefer a car with low running cost 3.5902 1.44429 50.334 1,019 0.000
I buy a car which is perceived prestigious and luxurious 3.3634 1.14355 59.555 1,019 0.000
I buy a car of high quality 3.4683 1.35062 51.997 1,019 0.000
I prefer attractive and well-designed cars 3.4756 1.28396 54.812 1,019 0.000
I choose a car that is safer 3.7537 1.50640 50.455 1,019 0.000
I will buy a car that is durable 3.7732 1.62190 47.106 1,019 0.000
My brand of car stands for something important to me 3.3805 1.25155 54.692 1,019 0.000
My car brand socially connects me to people 3.2000 1.00073 64.748 1,019 0.000
I buy unique and admirable cars 3.3341 1.18179 57.126 1,019 0.000
My car makes me feel good 3.4756 1.31221 53.631 1,019 0.000
I prefer a car which is widely available 3.4610 1.26634 55.340 1,019 0.000
I buy a car which have showrooms all over the country 3.3415 1.26084 53.662 1,019 0.000
I buy a car which have spare parts readily available 3.7366 1.46145 51.771 1,019 0.000
I choose cars with maintenance and repair services available 3.5829 1.52540 47.560 1,019 0.000
I buy a car which is lowly priced 2.9854 1.08773 55.574 1,019 0.000
I buy a car which is highly priced 2.9073 1.11938 52.591 1,019 0.000
My brand of car gives me value for money 3.5537 1.24043 58.009 1,019 0.000
I will buy a car because of its country of origin 3.3098 1.19663 56.005 1,019 0.000
I buy a car recommended by my family and friends 3.0902 1.16977 53.491 1,019 0.000
My car brand reflects my social status 3.2024 1.12343 57.720 1,019 0.000
I prefer a car used by my family members and friends 2.6512 1.34975 39.773 1,019 0.000
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Emotional connection (b ¼ 0:132, t ¼ 4:660, p ¼ 0:008 , 0:05), External influences (b ¼ 0:079, t ¼ 4:225, p ¼ 0:000 , 0:05), Awareness (b ¼ 0:123, t ¼ 3:591, p ¼ 0:020 , 0:05) and Accessibility (b ¼ 0:120, t ¼ 2:164, p ¼ 0:013 , 0:05). The results provide support for H1, H3, H4, H6, and H7), the remaining two hypotheses (H2 and H5) were rejected in the current study. The Image and Price factors (b ¼ 0:094, t ¼ 3:666,
p ¼ 0:097, . 0.05) and (b ¼ 0:023, t ¼ 2:805, p ¼ 0:055, . 0.05). This means that in Ghana, automobile users do not significantly consider the positioning or the perceived image associated with a car brand in their purchase decisions. Moreover, price is not a major determinant of consumers’ decision to purchase an automobile among the sample considered for the study. Pearson correlation analysis was used to provide evidence of
convergent validity. From Table VII, the correlation coefficients for the seven factors measuring brand choice were all positive within the range of 0.084 to 0.782, most of which were significant at the p , 0:01 level.
Discussion of results
Finding from the study establishes the fact that the attributes of a car make a strong and significant contribution to automobile brand choice in Ghana. The findings confirm results from previous studies (Uggla, 2004; Kuksov, 2004; Russell and Taylor, 2006) who found that a product’s attributes are of great concern to consumers when making purchases. For automobile users, the core features of the car are important considerations in the choice of the car brand. The design, color and glaze, performance, and size all come
into play in influencing consumer choice. Similarly, emotional
connection was also found to be a major determinant of
consumer brand choice of cars, thereby confirming previous
works of (Morris et al., 2002; Gobe, 2001) that assert that
consumers sometimes do not make purely rational decisions
when deciding which products and services to purchase.
Thus, there is an indication that personal emotional
attachments towards some car brands influence consumers
in the purchase of cars in Ghana. Furthermore, external influences were also seen as a key
determinant of automobile brand choice and is also consistent
with previous studies (Evanschitzky et al., 2008; Wang and
Yang, 2008; Schiffman and Kanuk, 2009) who emphasized on
the role played by external influences in brand choices.
According to Keller (1993), cultural differences such as social
values could explain consumer choice of brands. In addition
to external influences, accessibility was also a major factor
which is considered by automobile consumers when making
car purchases. For most Ghanaian car buyers, not only must
the car be available at the various dealer showrooms, but must
also have locations where access to spare parts and
maintenance services are achieved. Some earlier studies (Lin
and Chang, 2003; Kim, 2008) have found the significant role
played by accessibility as an antecedent to consumer
convenience in brand choices. In congruence with previous
studies on brand awareness (Lin and Chang, 2003), it is fair
to further posit that awareness of a car brand significantly
influence purchase in Ghana. Findings from the study also suggest that a car’s brand
image does not to a significant extent influence consumers in
their purchase of car brands in a developing country such as
Table IV Principal component factor loadings
Variables Communality Factor Eigen value Percent of variance Cumulative percent
I buy cars which are well advertised 0.666 1 3.052 12.906 12.906
I buy car brands whose name I remember best 0.611 2 2.103 11.694 24.600
I buy well-known car brands 0.657 3 1.467 8.725 33.325
I choose a car with a unique feature 0.704 4 1.305 7.907 41.232
I prefer a car with low running cost 0.544 5 1.216 6. 683 47.915
I buy a car which is perceived prestigious and luxurious 0.593 6 1.201 5.905 53.820
I buy a car of high quality 0.699 7 1.083 5.428 59.248
I prefer attractive and well-designed cars 0.600 8 1.030 4.393 63.641
I choose a car that is safer 0.813
I will buy a car that is durable 0.787
My brand of car stands for something important to me 0.664
My car brand socially connects me to people 0.565
I buy unique and admirable cars 0.679
My brand of car makes me feel good 0.684
I prefer a car which is widely available 0.555
I buy a car which have showrooms all over the country 0.516
I buy a car which have spare parts readily available 0.784
I choose cars with maintenance and repair services available 0.739
I buy a car which is lowly priced 0.615
I buy a car which is highly priced 0.640
My brand of car gives me value for money 0.642
I buy a car because of its country of origin 0.519
I buy a car recommended by my family and friends 0.741
My car brand reflects my social status 0.667
I buy a car used by my family and friends 0.659
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Ghana. This is to assert that consumers in Ghana may not
merely buy a car brand just because it is positioned to have a
certain image. This is, however, incongruent with previous
studies (Pappu et al., 2005; Baek et al., 2010; Bian and Moutinho, 2011) which have postulated the indispensable
role played by a brand’s image on consumers when making
purchase decisions. Again, unlike past studies (Erdem et al.,
2006; Chattopadhyay et al., 2009; Ching et al., 2009) which emphasized on the effects of prices on brand choice of
products, this study found a contrary result. This may be
deduced from the fact that whilE some consumers are
inclined to buy highly priced products as a sign of quality,
others may stick to low-priced ones due to other individual
economic circumstances. The findings suggest that the
features of the cars are more important to the consumers
than the price imposed on it by the dealers.
Conclusions and implications
The study was initiated to investigate the drivers of consumer
brand choice in Ghana. Using the survey method, data were
collected from 1020 automobile owners in Ghana. The
current study makes a contribution to the literature on
automobile marketing and will be of significance to
automobile manufacturers and dealers who are entering
developing countries such as Ghana as a market expansion
strategy. The study found that the selection of car brands in
Ghana is based on multiplicity of factors, with some directly
attributed to the brands while others are external cues
associated with the brands. This means that manufacturers of
Table V Internal consistency and final revised structure
Factor and items Number of items Loadings Item-total correlation Cronbach’s alpha
Factor 1: car attributes 4 0.890 I buy a car of high quality 0.682 0.493
I prefer attractive and well-designed cars 0.557 0. 658
I choose a car that is safer 0.807 0.674
I will buy a car that is durable 0.785 0.595
Factor 2: emotional connection 4 0.803 My brand of car stands for something important to me 0.526 0.591
My car brand socially connects me to people 0.513 0.485
I buy unique and admirable cars 0.582 0.587
My brand of car makes me feel good 0.520 0.498
Factor 3: image of car 3 0.709 The queues in the bank are reasonable 0.563 0.607
I am always served when it is my turn 0.692 0.563
I am happy with the procedures in the bank 0.585 0.560
Factor 4: awareness 3 0.701 I buy cars which are well advertised 0.685 0.614
I buy car brands whose name I remember best 0.682 0.569
I buy well-known car brands 0.788 0.650
Factor 5: accessibility 4 0.794 I prefer a car which is widely available 0.627 0.457
I buy a car which have showrooms all over the country 0.523 0.653
I buy a car which have spare parts readily available 0.785 0.592
I choose cars with maintenance and repair services available 0.737 0.554
Factor 6: price of car 3 0.703 I buy a car which is lowly priced 0.586 0.492
I buy a car which is highly priced 0.562 0.562
My brand of car gives me value for money 0.739 0.621
Factor 7: external influence 4 0.741 I buy a car because of its country of origin 0.513 0.553
I buy a car recommended by my family and friends 0.568 0.586
I buy a car used by my family and friends 0.655 0.634
My car brand reflects my social status 0.665 0.529
Table VI Multiple regression analysis for key drivers of automobile brand choice in Ghana
Variable Beta SE t Prob.
Constant 0.236 5.844 0.000
Awareness 0.123 0.036 3.591 0.020 *
Image/positioning 0.094 0.041 3.666 0.097
Car attributes 0.429 0.057 9.121 0.000 * *
Emotional connection 0.132 0.059 4.660 0.008 * *
Accessibility 0.120 0.058 2.164 0.013 *
Price 0.023 0.047 2.805 0.055
External influence 0.079 0.054 4.225 0.000 * *
Notes: n=1,020; *p , 0.05; * *p , 0.01; SE of estimate=0.47380; R-square ¼ 0:742; Adj. R-square ¼ 0:713; F-statistics ¼ 179:625; Prob. (F-stats:Þ ¼ 0:000
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automobiles must endow their cars with relevant consumer
features such as style, design, comfort and safety. Efforts must
be made to promote these differences to consumers through
advertisements, exhibitions and trade shows in order to create
strong preference for the brands. In addition, car
manufacturers must further provide external cues such as
opening more showrooms, availability of increase spare parts,
accessories and service centers to provide after sales services
to customers. The study found out for instance that Mercedes
has only one showroom and one service center in Ghana.
Private garages could be licensed to provide the needed after
sales services to customers. It may also be very important for
brand managers to leverage on the power of their brand
promise to get consumers emotionally connected to their
brands. Experiential marketing platforms, where consumers
meet others on regular basis to share their consumption
experiences of the brands, should be incorporated into the
marketing strategies of the manufacturing companies. The current study was limited to the automobile industry in
Ghana. Therefore, the result cannot be generalized to other
countries in sub-Saharan Africa. Future research should
replicate the study in other countries in order to confirm the
results of our findings. Also our study seems to suggest that
price was not a significant determinant of automobile brand
choice. Considering the fact that most of the respondents
were well educated and received high incomes, their economic
circumstances might be different from the majority of the
people who have lower education, job opportunities and
incomes. Further studies are needed to investigate the relative
impact of demographic and economic variables such as
gender, educational level and incomes on consumer brand
choice of automobiles in other developing countries.
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About the authors
Dr Bedman Narteh is a Senior Lecturer in Marketing at the
University of Ghana Business School. He holds a PhD from
Aalborg University, Denmark, an MBA and a BSc degree
from the University of Ghana Business School. He has
researched and published in the International Journal of Bank Marketing, Journal of Knowledge Management, International Journal of Knowledge Management Studies and African Journal of Business and Economic Research. Bedman Narteh is the corresponding author and can be contacted at:
bnarteh@ug.edu.gh Raphael Odoom is a doctoral student at the Department of
Marketing, University of Ghana Business School. His
research interests include brands management and competitiveness of SMEs. Mahama Braimah is a Lecturer and a doctoral student at
the Department of Marketing, University of Ghana Business
School. His research interests include tourism marketing, internal marketing and marketing research. Dr Samuel Buame is a Lecturer in Marketing and
Entreprenuership at the Department of Marketing, University of Ghana Business School. He holds a PhD from
Lund University, Sweden. His research interests are in the
areas of entreprenuership, innovation and small business
management.
Key drivers of automobile brand choice in sub-Saharan Africa
Bedman Narteh et al.
Journal of Product & Brand Management
Volume 21 · Number 7 · 2012 · 516–528
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Executive summary and implications for managers and executives
This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.
Changes to economic and market conditions have created
new opportunities for companies to expand their brands into
new territories. Such developments have occurred in sub-
Saharan African nations like Ghana where consumers now
have an ever growing number of brands competing to meet
their needs. In view of the heightened competition, it is more
important than ever that academics and marketers identify
factors which influence consumer choice of brands. The body of research concerning brands is substantial. A
brand functions as the sum of various attributes which
indicate meaning to the consumer and helps them
differentiate between alternative offerings. Different studies
have found that products have symbolic as well as functional
value. Consequently, people often select brands which they
perceive to closely reflect their self-perceived identity. This
further complicates a decision-making process where an array
of product-related factors must be considered too. In high-
involvement categories like automobiles, these complexities
are particularly evident. Previous studies have pinpointed various factors that
influence the brand selection process. However, evidence
remains inconclusive as to the respective importance of these
factors. Most research has been confined to developed
countries where the automobile market has often reached
saturation point. As the market in developing nations is
generally growing, the automobile industry would benefit
from having a greater understanding of consumer brand
preference. Factors which determine brand choice include:
. Brand awareness. Found to have the strongest impact on purchase decisions in some studies. Familiarity makes it
easier for consumers to recall a brand and also helps to
create brand loyalty. Holding brand associations which are
powerful, positive and unique also contributes. Since
consumers also tend to simplify the purchase decision
process by opting for brands they know, advertising which
builds brand awareness has a crucial role to play. . Brand image. This construct reflects “the perceptions and
beliefs consumers hold about the brand”. Brand
associations shape the uniqueness of a brand and help to
sustain it over the longer term. Research shows that
favored brands invariably boast a positive brand image.
Delivering on brand promises can also boost image and
increase loyalty. Image is especially influential within
certain product categories, such as automobiles. . Accessibility. The automobile sector is one where access to
the brand will impact on consumer choice. Location and
distribution are thus important to ensure availability and
deter consumers from switching to an alternative brand if
their preferred choice is unobtainable. Accessibility also
extends to such as showrooms and parts, meaning that
opening hours, waiting times and processes must help
enhance customer experience with the firm.
. Emotional connections. Consumers are likely to prefer
brands which they are able to form “an intimate bond”
with, various scholars assert. Such emotional connections
can mirror those experienced with close friends and
impact on purchase intention. However, feelings can be
positive or negative and variable in their intensity.
Personal values and positive experiences might
determine emotional attachment to a particular brand
and this is apparent where automobile preference is
concerned. . Price. The role of this factor is widely acknowledged
within the research community. Many consumers are
typically willing to pay higher premiums for brands
perceived as offering superior quality. Loyalty towards a
specific brand triggers the same effect. Conversely, some
individuals are attracted by lower price as this constitutes
less financial risk. . Automobile attributes. Quality is inextricably linked with a
brand’s identity and is in indicated in certain sectors by
design and style. With automobiles, such attributes can
influence consumers more than advertising. Certain
scholars believe that the direct association with how they
experience the product explains this. Design and style
themselves help advertise the brand and communicate
how it is positioned. . External influences. Country-of-origin (COO) is known to
influence consumer perceptions and choice of brands.
COO is based on stereotypical images associated with
certain countries and scholars argue that the construct
can moderate the positive relationship between brand
personality and purchase intention. A favorable COO
increases the positive impact, while the opposite usually
occurs when COO is negative. Brand selection can
likewise be influenced by external factors including the
consumer’s status, role, family and other reference
groups.
Narteh et al. further explore the significance of these factors in
a survey of car owners in Ghana. Subjects were contacted at
various meeting points and 1,020 usable responses were
obtained. Males accounted for 58.5 percent of the sample and
females 41.5 percent, with most being over 35 years-old. The
qualifications held by a sizeable number of respondents
suggest correlation between educational level and car
ownership. Data revealed participant usage of a wide variety of
automobile brands, with Toyota being the most popular.
Various hypotheses were tested and the results indicated that
consumer brand selection was positively influenced by brand
awareness, accessibility, emotional connection, automobile
attributes and external influences. Contrary to expectation, it
appears that perceived brand image and price do not
significantly impact on which car brand buyers in Ghana
choose. The identification of these key determinants adds further
support to studies conducted earlier. Consumers are
enticed by various car attributes and the importance of
emotional connections illustrates that decisions are not
made on a rational basis alone. The authors likewise note
the influence of external factors and suggest that brand
preference could also be influence by different cultural
characteristics.
Key drivers of automobile brand choice in sub-Saharan Africa
Bedman Narteh et al.
Journal of Product & Brand Management
Volume 21 · Number 7 · 2012 · 516–528
527
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Various features relating to such as design, style and comfort must be emphasized if car manufacturers are to attract consumers in the Ghanaian market. Promoting these features in order to differentiate their brand is also advised by Narteh et al. Advertisements, exhibitions and trade shows are channels recommended. A focus on accessibility is essential and should include opening new showrooms and providing an efficient after-sales service, perhaps using private garages where necessary. Nurturing an emotional connection between consumer and brand is perceived to be important too. This can be aided by concentrating on the brand promise and by
creating “experiential brand platforms” where consumers
might share their experiences with the brand. Research elsewhere in sub-Saharan Africa is needed before
these results can be generalized to other countries in the region.
Given the surprise findings about price and brand image, the
authors advocate further exploration of these factors.
(A précis of the article “Key drivers of automobile brand choice in sub-
Saharan Africa: the case of Ghana”. Supplied by Marketing
Consultants for Emerald.)
Key drivers of automobile brand choice in sub-Saharan Africa
Bedman Narteh et al.
Journal of Product & Brand Management
Volume 21 · Number 7 · 2012 · 516–528
528
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