Academic journal article International Journal of Marketing Studies

Brand Name, Sales Promotion and Consumers' Online Purchase Intention for Cell-Phone Brands

Academic journal article International Journal of Marketing Studies

Brand Name, Sales Promotion and Consumers' Online Purchase Intention for Cell-Phone Brands

Article excerpt

Abstract

Although "Internet" has become a wide channel for commercial transactions, yet most people have different concerns in trading through this media, especially within developing countries. This research seeks to examine the final impact of brand name and sales promotion, as two powerful marketing strategies, on consumers' online purchase intention, considering perceived quality, perceived value and store image as possible mediating variables affecting the decision making of consumers. For this purpose, two cell-phone brands (a well-known vs. to a less-known brand) were studied among 248 professors, employees and students from University of Tabriz, in IRAN. The required data was gathered by questionnaire and analyzed using SPSS and AMOS GRAPHICS soft-wares. The results indicate that online cell-phone stores in IRAN should respectively consider the importance of (1) strengthening their online store's image, (2) managing advertisements and increasing public awareness toward their brand, (3) upgrading service quality and (4) providing effective promotions to attract consumers over time.

Keywords: brand name, perceived quality, perceived value, promotion, purchase intention, store image

1. Introduction

Rapid changes of today's world have encountered organizations with different challenges. Meanwhile, only those organizations which useeffective management tools and technologies to take advantage of emerged opportunities are successful. Internet, as one of these tools, has become a wide channel for commercial transactions and a powerful media for organizations' marketing efforts. Statistical reports show a daily increase in the number of internet users and their growing tendency to trade via the internet. However, due to the novelty of this media and the relatively low knowledge toward it within developing countries, yet most people have different concerns in trading via the internet.

Creating a strong brand image can be a powerful marketing strategy to reducing the uncertainty devaluating a product and increasing the online shoppers' purchase intention. Park and Stoel (2005) believe that because of the inability to examine a product physically in the online shopping context, consumers are likely to use recognizable cues (e.g., well-known brand names) to evaluate the value of a product, judge store image and make a purchase decision. Porter and Claycomb (1997) state that "a well-known familiar brand name associated with a positive brand image, creates competitive advantages in terms of increasing consumers' interest, attention and positive evaluation of a product, and encourages repeat purchases". When consumers lack knowledge about attributes of a product and are uncertain about the product, brand names play an important role in reducing perceived risk and assessing product quality (Dean, 1999). Therefore, creating an immensely popular and familiar brand is a competitive marketing strategy for online retailers.

Another way to attract more consumers and to enhance the competitiveness of online retailers is to offer promotions. According to Strahilevitz and Myers (1998) "an unexpected promotion may be attributed to pure luck and may reduce feelings of guilt associated with purchase of a product". In this regard, online retailers offer diverse and effective promotions (for example free shipping and discounts) (Oliver & Shor, 2003). Promotions can facilitate consumers' purchase behaviors and satisfaction with purchases (Darke & Dahl, 2003).

This research seeks to examine the final impact of brand name and promotion on consumers' purchase intention in online shopping context, considering perceived quality, perceived value and store image as mediating variables of the study. The study is sought to help organizations in developing effective marketing plans to make their brand more popular, throughe-business.The research isone of the few which investigate the impact of cell-phone brands and provided promotions for cell-phones, on consumers' online purchase intention in the studied country; Iran. …

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