Academic journal article International Journal of Management and Marketing Research

Does Winning an Award Affect Investors' Brand Preference and Purchase Intention?

Academic journal article International Journal of Management and Marketing Research

Does Winning an Award Affect Investors' Brand Preference and Purchase Intention?

Article excerpt

ABSTRACT

Franklin Templeton Investments is a global leader in asset management serving clients for over 65 years in over 150 countries and is famous in Taiwan. This research takes Franklin Templeton Investments as an example. We investigate the relationships between brand image, perceived quality, brand preference, and purchase intention using questionnaire. The results show that brand image has a significantly positive effect on perceived quality and brand preference. Perceived quality has a significantly positive impact on brand preference. Brand preference also has a significantly positive influence on purchase intention.

JEL: G1, M1, M5

KEYWORDS: Brand Image, Perceived Quality, Brand Preference, Purchase Intention

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

Mutual funds represent one of the most popular investment instruments today. Some institutions hold fund awards to recognize strong performing funds and fund groups that have shown excellent yearly returns relative to their peers - for example, TFF-Bloomberg Best Fund Awards, Morningstar Fund Awards, and Lipper Fund Awards. Many fund companies use awards they have won as advertising and marketing material, hence raising a few questions: Do investors think awarded funds have a better brand image or a better perceived quality? Does wining an award affect investors' brand preference and purchase intention? Most related studies on awarded funds target performance persistence by taking secondary data from the financial markets. In fact, there is limited research targeting investors' brand preference and purchase intentions of awarded funds directly through questionnaires. This study looks to fill this gap. The most popular fund awards in Taiwan include TFF-Bloomberg Best Fund Awards, Morningstar Fund Awards (Taiwan), Lipper Fund Awards, and Smart Taiwan Fund Awards.

Among these four fund awards, Franklin Templeton Investments respectively won a total of 19 and 13 awards in 2014 and 2013, ranking first in the fund industry in awards received. This research takes Franklin Templeton Investments as an example, because it has had such an outstanding performance in the last ten years, is a global leader in asset management serving clients for over 65 years in over 150 countries, and is famous in Taiwan. We investigate the relationships between brand image, perceived quality, brand preference, and purchase intention using questionnaires. This study's results can provide a reference for the fund industry and investors. The rest of this paper is organized as follows. Section 2 reviews previous research on brand image, perceived quality, brand attitude, brand preference, and purchase intention. Section 3 describes the data and method we employ. Section 4 reports the empirical results, and section 5 concludes the paper.

LITERATURE REVIEW

The American Marketing Association defines brand as "a name, term, sign, symbol, design or a combination of them, intended to identify the goods and services to differentiate them from the competition". Kotier (2000) claimed that "brand is a name, term, symbol, design or all the above, and is used to distinguish one's products and services from competitors". Keller (1993) defined brand image as "perceptions about a brand as reflected by the brand associations held in consumer memory". Accordingly, brand image does not exist in the features, technology or the actual product itself. It is something brought out by advertisements, promotions or users. Brand image is often used as an extrinsic cue when consumers are evaluating a product before purchasing (Zeithaml, 1988; Richardson, Dick and Jain, 1994). Perceived quality is the consumer's judgment about a product's overall excellence and superiority, not the actual quality of a product (Zeithaml, 1988; Aaker, 1991). Consumers often judge the product quality by various informational cues. They form their beliefs based on these informational cues (intrinsic and extrinsic). …

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