CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Branding is the act of creating a unique name or image for a product. This serves to distinguish the product in the marketplace, leaves a distinct impression in buyers’ minds and attracts potential new customers. Whilst most people will associate the branding process with relatively modern concepts, its origins date back many thousands of years. Branding in its earliest form dates all the way back to around 2000BC and was purely used to depict ownership. Farmers would brand their cattle to make them stand out from other livestock, and craftsmen would imprint symbols onto their goods to signify their origins. However, as time has progressed, branding has become a way for companies to market themselves and establish a bond of trust with potential customers.

The Ancient Marketplace

Many ancient civilizations made use of branding in order to sell their goods to the masses. In ancient Babylon, merchants attracted buyers to purchase items such as spices, wines and rugs with a verbal sales pitch. To explain their offerings to a mostly illiterate populace, in places like ancient Egypt, Greece and Rome, they hung pictorial signs and painted their storefronts. There are markings on the walls of the ancient city of Pompeii that illustrate writing being used for advertising purposes. More than 3,000 years ago in the Western Zhou Dynasty of China, trade fairs were held, where vendors pitched their wares using displays. It was in China that paper was to be invented, along with block printing, opening the doors to mass communication.

The Medieval Marketplace and the Sung Dynasty

In the thirteenth century, after a period of commercial decline, the trading industry began to recover. The Magna Carta brought about the deterioration of feudalism, creating a more functional and cultured society. Trade was established between the east and west, craft guilds were formed, and a middle class began to emerge. To control trade, guilds made it mandatory to brand goods with proprietary marks. The Sung dynasty was an age of Chinese history beginning in 960 and lasting until 1279, this was a hugely rich and technological time in China. During this era, block-printing, paper money and most importantly, a moveable type of printing – with letters arranged for each new page – were created. With over 10,000 characters in their language, printing was still a long process. However these developments paved the way for a variety of early forms of branding, including printed wrappers, signboards and printed advertisements.

The Gutenberg Printing Press and the 1400s

At the start of the 15^th century every English text still had to be copied by hand, an arduous process which used up much time and energy. With the emergence of a literate middle-class, came a higher demand for the written word. German businessman Johannes Gutenberg saw a gap in the market for mass-produced books, and began to experiment with printing methods. Gutenberg utilized the typesetting technologies of Asia to create a printing press, along with metal letter moulds. His new printing system was more efficient than anything that had come before, and spread literature to the masses for the first time, propelling Europe into the Renaissance. From then on, printed information could be easily distributed, and advertising become a popular and effective way to sell goods. The first English language advertisement, in the form of a leaflet promoting a book, appeared. Soon thereafter, great quantities of posted advertising, announcing information and promoting goods, hung all around London.

The 1600s to the 1700s

In 1625 in England the first advert appeared in a newspaper, and in 1704 the first American advertisement was published in the Boston Newsletter. These early examples of advertising were mostly simple messages, with many repeating a specific line several times. These are thought of as the predecessors to the modern-day advertising slogan.  Trademarks became standard practice in the 1700’s, as governments realized a system of regulation was needed to encourage development and to advance in science, technology and the arts. This led to the introduction of patent, trademark and copyright laws.

The Industrial Revolution

The industrial revolution began in England in the mid-1700s, with petrol and coal powered energy revolutionizing many industries, including branding and advertising. Industrialization paved the way for mass production; making it possible to produce large amounts of goods in a cost-effective way. Early forms of advertising sought to spread information about products, aiming to reach not just the rich, but the rapidly emergent middle class- the new mass market. With buyers now able to choose from a wide selection of products for the first time, logos were used to not only indicate the manufacturer, but to act as a symbol of quality. Advertising agencies began to appear in England in the 1800s, and companies used them to find increasingly new and innovative ways to reach customers. As many people did not read newspapers, other advertising tactics were used, including the use of banners on hand-held poles, people wearing placards, and umbrellas with signs on them. Companies began to promote their ‘brand names’ through attractive packaging and eye-catching slogans.

The progress of the times brought about a wave of extraordinary advances, introducing new products like the car, the vacuum cleaner and the electric iron. Advertising and branding became more successful with the rise of literacy rates, supported by the invention of typewriters. Increased use of mass media, alongside the creation of the telephone, a more effective postal system and better railways made communication over long distances easier than ever before.

The Twentieth Century

At the beginning of the twentieth century, commerce and industry in the western world thrived; more people than ever before could afford to spend money on branded goods and luxury items. Products such as Coca-Cola®, Heinz branded condiments and more expensive goods like cars were all in high demand. The desire for branded products in industrialised countries was stimulated by the continued rise of mass media. Graphic design, advertising, and marketing also encouraged this ‘consumer’ economy.

Before television became the go-to platform for advertisement and sponsorship, corporations paid for broadcasts during radio programmes. The messages used in these commercials propagated the notion that brands could bring about happiness – not only would a brand-name vacuum perform better than others, it also paid for an entertaining radio show. With competition between brands becoming more heightened, corporations aimed to create professional and cohesive images to represent their products. There was big business in targeting specific audiences by injecting a certain ‘look’, style and personality into specific products and companies. Apple Computers’ iconic ‘1984’ television advert, inspired by the George Orwell novel of the same name, showed users breaking free of their rigid confines using the Apple branded Macintosh computer. This was an early example of a corporation selling a concept or an ideal, focusing less on the product itself. This trend became popular, with businesses beginning to focus more on long term corporate identity rather than short ad-campaigns.

Today

Today most companies have carved out their own niche in an increasingly overcrowded market. The internet age has created a culture of instant gratification, leading to a generation of more and more demanding consumers. Companies must create adverts and logos that appeal to this type of audience, taking into account their short attention spans and often disinterested view of advertising. This has led to interactivity, viral marketing and search engine optimization taking Centre stage in the modern world of branding.

Corporate branding has expanded to include political parties, charity organisations and even personal brands for celebrities. Socialites and reality TV stars like Kim Kardashian and Paris Hilton have built empires using their own personal brands, encompassing perfume lines, books and clothing ranges.

The internet is involved in all aspects of advertising and marketing; with social media brands like YouTube and Facebook relying on their users to establish their value. The power of the internet can be demonstrated through the fact that the biggest advertising agency right now is none other than Google- the internet’s number one search engine. To ensure they do not fall behind, organisations must now ensure that they gain visibility in both the real and the online world. 

Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, and how the consumer‘s emotions, attitudes and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–50s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, marketing and economics (especially behavioural economics).

The study of consumer behaviour formally investigates individual qualities such as demographics, personality lifestyles, and behavioural variables (such as usage rates, usage occasion, loyalty, brand advocacy, and willingness to provide referrals), in an attempt to understand people’s wants and consumption patterns. Also investigated are the influences on the consumer, from social groups such as family, friends, sports, and reference groups, to society in general (brand-influencers, opinion leaders).

Research has shown that consumer behaviour is difficult to predict, even for experts in the field; however, new research methods, such as ethnography, consumer neuroscience, and machine learning^[1] are shedding new light on how consumers make decisions. In addition, customer relationship management (CRM) databases have become an asset for the analysis of customer behaviour. The extensive data produced by these databases enables detailed examination of behavioural factors that contribute to customer re-purchase intentions, consumer retention, loyalty and other behavioural intentions such as the willingness to provide positive referrals, become brand advocates or engage in customer citizenship activities. Databases also assist in market segmentation, especially behavioural segmentation such as developing loyalty segments, which can be used to develop tightly targeted, customized marketing strategies on a one-to-one basis.

In recent years and specifically in this twenty first century age represents key changes in the marketing strategies employed by organisations and institutions. The survival or success of companies is now dependent on the amount of information that is carefully gathered by the former with regards to the purchasing habits displayed by consumers. In order to survive in the market, companies are keenly interested in developing strong brands that leads to long term and customer relationships (Danes, 2011). The Telecommunication environment has really become competitive lately regarding its growth in this 21st century. Companies inject heavy resources and time into the study of behavioral and sociological factors in order to gain much insight and to understand consumer purchasing patterns. Thus brands represent key assets to companies (Rindell, 2008).

 Branding has emerged as part and parcel of modern day marketing strategies and now considered a key organisational asset (Kotler, 2000). Organisations shifting from a product or market point of view to consumer or customer focus that reflect the evolution of marketing. Similarly, Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan. Tu et al. (2012) indicated that organizational branding directly affects customer satisfaction. This finding was affirmed by the results of Johnson, et al Andreessen, Lervik & Cha (2001); and Davies et al. (2003). They further resort to underpinning the relationship that exist between consumers spending and the key variables involved in consumer preferences in terms of attitudes, cognition, perception and learning, (Von Moos, 2005).They wants to know who their customers are, what they think and how they feel, and how they buy a specific brand instead of others. Many companies go to the extent of employing a separate brands manager who sees to the management of the brand.  That is serving as a link between the company’s brand and consumers.

In today’s turbulent market place where consumers have an enormous amount of information with regards to products and services at their disposal, yelling louder is not a solution to making you heard or recognize in the market place. Instead, creating an outstanding brand that appeal to consumers (Ahuvia, 2005). The importance of telecommunication is that it has boost the economy of the world, Africa and Cameroon in particular through employment, better brand been produce and fast communication services.

In recent years, the so much competition in Cameroons telecommunication industry has called for telecommunication such as Camtel, MTN, Nextel and Orange firms to improve their corporate performance not only in terms of tele-density (The number of subscribers out of every 100 people), but also engage in intensive marketing activities such as branding, promotion, advertisements. Thus, the economic survival of the telecommunication industry dependent on consumers’ behavior. The fact that consumers maintain long term relationships with telecommunication companies in the Ghanaian telecommunication industry constitutes a sign of long term economic survival of the industry. An interesting philosophical issue may arise in respect of brand-driven satisfaction and long term survival of companies within the telecommunication industry.

 To compete in today’s global markets, organizations strive to deliver their products and services, tangible and intangible in both an efficient and effective manner. Customers today are increasingly demanding and increasingly informed and face a wide range of alternatives that can meet their needs and requirements. In this context, the success of organizations is increasingly dependent on management and leadership of salespeople, including their motivated retention. Sales people are the most visible representatives of companies and often the only ones who are in direct contact with customers. Therefore, the sales force of companies play a key role in diagnosing customer needs, developing customer confidence, and strengthening trade relations. Motivation strategies is a procedure that initiates through a psychological want that stimulates a performance that is intended at an objective. Managers need to remember that sales personnel are motivated by a mix of factors and not just from external or internal motivators (Manion, 2005, p. 283). Rodrigues, Guerra and Câmara (1997) point out that managers must recognize that success comes not only from advanced technology, financial bases, and competitive positions in the market, but also from motivated employees with the right professional skills that contribute to performance and their high productivity. Performance is a decisive measure in the function of the sales department in an organization.

Strong brands have the potential to generate long term and loyal customers, which would eventually lead to an increase in sales in the future, (Hess, Story & Danes, 20011).  In this regard, after achieving success through corporate branding, maintaining and managing the brands reputation becomes integral to be the market leader.  In order to achieve this feat, they need to understand consumers’ buying behavior in order to help them evaluate the service being offered. Telecommunication companies as a service provider needs to provide services that really satisfies consumers’ expectations in ensuring that the company survives economically. Therefore, these companies like MTN, Orange, Nextel and camtel must employ very proactive branding strategies than they currently possessed.  A good portion of the research on brand is devoted to building better understanding in the area of brand choice; brand switching, brand loyalty and brand extension (Moore et.al 2008). There is an association between brand loyalty and continues demand. This is because a satisfied customer buys more and buys longer (Schultz, 2005).  But most telecommunication companies in Bamenda pay little attention to customer complain, design, price and brand name.

1.2 Statement of the Problem

Though many companies are able to have better products and yet are sometimes unable to compete in the market due to poor branding activities. Thus strong brands have the potential to generate long term and loyal customers, which would eventually lead to an increase in sales in the future. (Hess, Story & Danes, 20011).  In this regard, after achieving success through corporate branding, maintaining and managing the brands reputation becomes integral to be the market leader.  In order to achieve this feat, they need to understand consumers’ buying behavior in order to help them evaluate the service being offered.  Telecommunication companies as a service provider needs to provide services that really satisfies consumers’ expectations in ensuring that the company survives economically. Therefore, these companies like MTN, Orange, Nexttel and Camtel must employ very proactive branding strategies than they currently possessed.  A good portion of the research on brand is devoted to building better understanding in the area of brand choice; brand switching, brand loyalty and brand extension (Moore et.al 2008). There is an association between brand loyalty and continues demand. This is because a satisfied customer buys more and buys longer (Schultz, 2005).  The extent to which product branding affects consumers’ decision-making remains a critical area that needs a thorough investigation because this effects is still being neglected by telecommunication companies. It is for this reason why this study is undertaken to determine the effect of branding on consumers’ behavior in the Cameroon telecommunication companies. The problem here is to assess whether an increase in branding strategies will lead to an increase in consumers buying behavoiur.

Poor customer relationship management which include lateness to work and not keeping appointment at all and others are unfriendly and even become hostile while attending to customers.  Example, some sales persons lose focus and consequently supplied wrong brand of products to customers. These result in long waiting time for customers to receive the needed goods and services, and the consequents for low performance is that some customers lose patience and consequently take their leave and even buy the alternatives. When MTN came to Bamenda, they were focusing on commission as a form of motivation strategies, and when they realize that commission was not the only form of motivation strategies, they brought in training as another method of motivation and they had a sales increase of about 5%. And presently they are focusing on branding as a mean to increase sales. (source MTN 2020). The failure of sales force may lead to industrial, managerial and marketing implications which this study is set to explore, and how branding strategies can increase sales.

1.3 Main Research Questions

What are the effects of branding on consumers behavior in telecommunication enterprises in Bamenda?

Specific Research Questions:

What is the effects of price on customers buying behaviour ?

What is the effects of brand name on customers buying behaviour?

What are the core identity of branding strategies to consumer’s buying behaviour?

1.4 Main Objective of Study

Assessing the effects of branding on consumer’s behaviour in the telecommunication companies

Specific Objectives:

a.     To examine the effects of price on consumers behaviour in telecommunication enterprises in Bamenda

1. Evaluating the effects of brand name on consumer’s buying behaviour
2. Critically assessing the effects of product design on consumer’s behaviour