Lahore School of Economics Research Methods BBA IV Assignment IV Name: ZARA SIKANDER Section F

Business/ Firm Name: Avari

Problem Definition:
The broad area of research is consumer behavior. The topic pertains to lodging products and how behavior of hospitality industry consumers is effected by brand class, brand awareness (both being sub categories of brand name) and price. The topic is rather very clearly defined and fits perfectly well into the customer value framework

GRID 1 Full article reference : The Effect of Brand Class, Brand Awareness, and Price on Customer Value and Behavioral Intentions, Haemoon Oh, Journal of Hospitality & Tourism Research, 2000, 24: 136, DOI: 10.1177/109634800002400202 TOPIC The Effect of Brand Class, Brand Awareness, and Price on Customer Value and Behavioral Intentions CONTEXT The basic customer value theory (Dodds & Monroe, 1985; Dodds, Monroe, & Grewal, 1991; Monroe & Chapman, 1987) was modified according to the conceptual work by Martins and Monroe (1994) and to lodging-specific factors such as multi-branding and yield pricing strategies. General theses of customer value are reviewed, and research hypotheses are developed next. A web-based experimental study is introduced, along with the logic of hypothesis test and study results. Finally, this study concludes with discussions on managerial and research implications. CONCEPTS The author introduces a comprehensive customer value framework and tests an extended value model with lodging products. The extended value model in this study newly incorporates the concepts of brand awareness, as compared to brand or product class, and price fairness. Based on Baron and Kennys guideline for mediation analysis, this study found the traditional customer value process to be useful for lodging research and marketing. In addition, brand awareness and price fairness concepts were found to play significant roles in the customer value process. The article includes discussions on both managerial and research implications. ISSUES The majority of previous customer value studies have focused on identifying the determinants of value perceptions. A converging theory is that consumers perceive product/service quality based on their purchase experience or information given in marketers ads, and compare the quality perceptions to the sacrifice they have made for the purchase (Dodds et al., 1991; Grewal et al., 1996; Grewal, Monroe, & Krishnan, 1998; Monroe & Chapman, 1987; Rao & Monroe, 1989). The results of this cognitive comparison then form into value judgments. Consumers value perceptions are enhanced with increasing levels of quality they perceive and lowered with increasing levels of sacrifice they

feel. Although empirical investigations support this linear relationship (Dodds et al., 1991; Zeithaml, 1988), whether the influence of both determinants (i.e., quality and sacrifice) is symmetric is unclear. AIMS OF RESEARCH Although researchers have conceptualized perceived sacrifice as a concept that captures not only financial sacrifice but also other psychological and behavioral investments in the purchase, the concepts operationalization has been limited to financial sacrifice induced largely by the product price (e.g., Teas & Agarwal, 1997).

GRID 2 Research Methods literature review template Title: The Effect of Brand Class, Brand Awareness, and Price on Customer Value and Behavioral Intentions The Effect of Brand Class, Brand Awareness, Full referencing of the article and Price on Customer Value and Behavioral Intentions, Haemoon Oh, Journal of Hospitality & Tourism Research, 2000, 24: 136, DOI: 10.1177/109634800002400202 http://jht.sagepub.com/content/24/2/136 Access Location 2000 Year Journal of Hospitality & Tourism Research Journal Haemoon Oh Author(s) The broad area of research is how consumer Area, Topic, Purpose behavior. The topic pertains to lodging products and how behavior of hospitality industry consumers is effected by brand class, brand awareness (both being sub categories of brand name) and price. The topic is rather very clearly defined and fits perfectly well into the customer value framework. The overall purpose of the research is to introduce and test a modified theory of customer value in the lodging industry. Customer value theory postulates 3E`WSQAthe behavior of price quality tradeoff as its central concept. Added to the traditional value model were two new concepts relevant to lodging consumption situations: brand awareness and price fairness. The following hypothesis were tested: Research Question(s) Hypothesis 1: Perceived brand class (or product class) is positively associated with perceived quality. Hypothesis2: Perceived brand awareness is positivelyassociated with perceived quality. Hypothesis 3: Price is positively associated with perceived quality. Hypothesis 4: Price is inversely associated with price fairness. Hypothesis 5: Brand awareness is positively associated with price fairness. Hypothesis 6:

Literature Review & Concepts

Perceived quality is positively associated with price fairness. Hypothesis 7: Perceived quality is positively associated with perceived value. Hypothesis 8: Price is inversely associated with perceived value. Hypothesis 9: Price fairness is positively associated with perceived value. Hypothesis 10: Customer value is positively associated with purchase intention. Hypothesis 11: Customer value is inversely associated with search intention. The hypotheses tested are relevant to the area of the topic. Eight key constructs or variables were tested to have an effect on consumer behavior in essence via these statements. The following authors, specified with dates have been quoted by the author throughout the article: (Dodds et al., 1991; Grewal et al., 1996; Grewal, Monroe, & Krishnan, 1998; Monroe & Chapman, 1987; Rao & Monroe, 1989) (Jacoby, Olson, & Haddock, 1971; Szybillo & Jacoby, 1974; Valenzi & Andrews, 1971) The author uses the basis of research provided by these authors to develop an extended customer value model with reference to lodging products in particular. The role of theory is central to this article. As mentioned earlier, it discusses consumer behavior with respect to brand awareness, brand class and price for which is uses an extension of the main framework surrounding consumer value model. New theories are not generated, however, an extension of the older consumer value model is seen with respect to sub categories of brand name. The hypotheses are based on the relation between eight constructs as stated above already. This study used the quantitative measures that were used to check manipulation effects to

Substantive Theory

Research Strategy

Research Design

Methods of Data Collection and Analysis

improve precision in parameter estimates. Hypotheses were tested via an experimental study that was web based. An experimental situation was presented to participants and results gauged based on questionnaires filled. This study chose an experimental approach to test the causal hypotheses of the proposed model for several reasons (Kerlinger, 1992). First, an experiment could provide relatively good control over the many extraneous influences that could affect the independent and dependent variables. Second, because this study aimed, in part, to explore the role of two new variables (i.e., brand awareness and price fairness), related experimental manipulations could provide a high degree of specificity in the operational definitions of these variables. Additionally, an experiment could allow a relatively high degree of precision in both measurement and outcome, which was desirable in this introductory work. The experiment was conducted electronically by having undergraduate students evaluate eight websites that contained different treatment levels of the three exogenous variables. The experimental treatments were developed based on pilot studies and discussions with 23 undergraduate students and 4 faculty members who were not included in the actual sampling. The student volunteers served as a pretest sample, whereas the faculty members served as expert reviewers. Upon a series of revisions based on the pretest and reviews, the actual sample evaluated a randomly assigned web site and provided responses via systemized electronic mail. The length of participation was approximately 25 minutes. All participants were offered U.S.$5 for their cooperation. The experiment was a 222 quasi-betweensubject complete factorial design. The three exogenous factors each had two treatment levels, namely, high and low. The study results could be generalized to both the upscale and budget category lodging industry. Brand class was manipulated based on brand image and product quality. The names Marriott and Central Park were used for the high brand class, whereas Motel 6 and Roadside were used for the low

Consent, Access, Ethics

Research reporting

counterpart. As such, a total of eight web sites were developed and posted on the Internet for access by the selected respondents. Each web site contained two pages. The first page provided a reservation situation, a treated description of a lodging product, and price information. The second (i.e., linked) page measured specific model constructs, along with a few demographic questions. Also included at the end of the questionnaire was the 20-item Personal Involvement Inventory tocheck the level of response involvement (Zaichkowsky, 1985). The sample for this study was 263 nonhospitality undergraduate students randomly drawn from the directory of a large university, with a response rate of 32.9%. Hospitality students were excluded to avoid potential education bias for the products under examination. This research was funded by Iowa State Universitys Special Research Initiation Grants. The article follows a logical argument via connecting the consumer value model to determine value judgment of consumers of hospitality industry. The variables used in the model are both logically and theoretically viable. There are some limitations in the article stated by the author. Higher external validity of the study results can be achieved by using more active lodging customers, testing the theory in an actual purchase setting, and sampling a wider range of both customers and products. Although this study was carefully designed to strengthen internal validity, the experimental nature prohibited improving external validity to a greater extent. Thus, caution must be given to interpreting and generalizing the findings to all lodging purchase decisions. Examination of the proposed model in a field setting may complement the sampling limitation of this study. The proposed model can be extended to include price perceptions and perceived sacrifice. This study focused on testing a

modified value theory with lodging products; however, as found useful in previous productoriented studies, direct inclusion of price perceptions and perceived sacrifice in the proposed model may enrich marketers understanding of the role of price in consumer behavior. Proper referencing is given along with an appropriate academic format. The research is rather very well written and presents the following conclusions: 1. Brand class and brand awareness have different marketing implications. The former is related mainly to quality perceptions, whereas the latter is associated with price fairness. 2. Previously known brand effects can be interpreted as brand or product class effects. 3. Price signals quality, but counteracts perceptions of price fairness and value. 4. Consumers value perceptions fully mediate price and quality judgments toward purchase and search intentions. 5. Purchase and search intentions are positive and negative consequences of customer value, respectively. Research Process Research opportunities Based on Baron and Kennys guideline for mediation analysis. The concept of brand awareness, as compared to brand class, needs to receive further attention in marketing research. The results of this study provided a useful beginning point for much more rigorous studies on the concept. Many related questions await careful investigations: What is the role of brand awareness relative to brand class in different industries? What are the effects of brand awareness as nested in brand class? How can marketers build brand awareness, that is, what improves brand awareness effectively and efficiently? Additional conceptual and qualitative studies are necessary to distinguish brand awareness effects from those of similar concepts such as brand class.