Effect of Marketing Mix Elements on Brand Awareness of Consumer Durables

Abstract

The Indian economy has transformed from a controlled economy to a market driven economy in recent years. Enormous growth has been witnessed due to an active participation by the private enterprise. Along with other sectors, the consumer durables sector has also been riding a crest of the growth wave in India. Growing awareness, rising income and changing lifestyles have been the key growth drivers of the durables market. The transformed marketing scenario has created a spurt in new business opportunities. Increasing competition, evolving technologies and government policy initiatives including tax reforms have been enabling organizations to maintain a marketing oriented focus with emphasis on creating awareness and ensuring consumer satisfaction. While developing a business plan, an organization focuses on elements of marketing mix, commonly referred to as Ps of marketing, to devise integrated programs and to create a desired response in the targeted market. Marketing communication is devised accordingly to build confidence in consumers about a particular brand. Awareness of a brand affects the mind of a consumer in purchase process and increases the probability of it being selected from a set of alternatives. In the present research, the effect of marketing mix elements on brand awareness and consumer satisfaction in the context of consumer durables sector in the state of Punjab and union territory of Chandigarh has been explored. Four Ps of marketing mix, namely, product, price, promotion, place and two levels of brand awareness, viz., brand recognition and brand recall have been studied. The study assumes significance because not many studies have been conducted to examine such an impact. The effect of elements of marketing mix on consumer satisfaction has also been explored, directly as well as, through brand awareness. xi The scope of consumer durable market has been confined to four brands, namely, air conditioners, refrigerators, washing machines and televisions whose buyers have been selected as respondents. Four brands namely, LG, Samsung, Voltas and Hitachi have been studied in the product category of air conditioners; LG, Samsung, Whirlpool and Godrej in case of refrigerators; LG, Samsung, Whirlpool and Videocon in the category of washing machines; and Sony, LG, Samsung and Videocon in the televisions’ category. A pre-tested, structured and non-disguised questionnaire has been used to gather data from 350 consumers. A Likert type scale has been predominantly used. Statistical tools like regression, mediation analysis, structural equation modeling, kruskal-wallis, t-test and chi-square analysis have been applied. It has been observed that elements of marketing mix have a significant effect on brand awareness. It has been seen that elements of marketing mix do not have a direct effect on consumer satisfaction but have an indirect effect on it through brand awareness. Thus, it has been concluded that brand awareness partially mediates the effect of elements of marketing mix on consumer satisfaction. Consumer satisfaction has also been found to increase with brand awareness. It is recommended that practitioners should strategize on creating brand awareness and enhancing its recognition and recall. Marketing communication needs to focus on prominently showcasing the brand and explaining its value proposition clearly. Steps can also be taken to enhance brand awareness through memorable experiences in order to create lasting mindshare in consumers. Improving the levels of brand awareness can also possibly lead to an increase in satisfaction levels of consumers.