That's What I like: A Study of Consumer Behavior on Purchase Intention Towards Pepsi

Juliana Johari; Ee Ming Tan; Syaza Najihah; Jia Yin Tan; Fatmah Yousef Alsallal; Suzarmie Supilit; Dalal Alfarhan

doi:10.32535/ijafap.v5i3.1516

That's What I like: A Study of Consumer Behavior on Purchase Intention Towards Pepsi

Juliana Johari, Ee Ming Tan, Syaza Najihah, Jia Yin Tan, Fatmah Yousef Alsallal, Suzarmie Supilit, Dalal Alfarhan

Abstract

PepsiCo's Pepsi is one of the leading brands in the enormous soft drinks market. The company has gone through bankruptcy and survived. Pepsi is a common name globally to most age groups with a wide range of target demographics. This paper examines how five key factors, namely perceived product quality, perceived price affordability, brand awareness, perceived ease of access, and brand loyalty, lead to Pepsi's customer purchase intention in Malaysia and Kuwait. We tested hypotheses with 103 participants. The findings showed that perceived product quality and brand loyalty significantly correlate with purchase intention. Our findings provide new insights and contribute to consumer behavior.Â Â

Keywords: Brand Awareness, Brand Loyalty, Customers Perception, Purchase Intention, Perceived Ease of Access, Perceived Price Affordability, Perceived Product Quality

Full Text:

PDF

References

Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of brand name. Washington: The Free Press.

Aakko, M., & NiinimÃ¤ki, K. (2021) Quality matters: reviewing the connections between perceived quality and clothing use time. Journal of Fashion Marketing and Management, 26(1), 107-125. doi:10.1108/JFMM-09-2020-0192

Alamgir, M., Nasir, T., Shamsuddoha, M., Nedelea, A. (2010). Influence of Brand name on consumer decision-making process: An empirical study on car buyers. The USV Annals of Economics and Public Administration, 10(2), 142-153.

Alchetron. (2021). Alfred Steele. Retrieved from https://alchetron.com/Alfred-Steele

Alnabhan, O. (2019, August). Channel Strategies and the Value Chain. Retrieved from https://www.academia.edu/42933530/Channel_Strategies_and_the_Value_Chain

Amaldoss, W., & Jain, S. (2005). Conspicuous consumption and sophisticated thinking. Management Science, 51(10), 1449â€“1466. doi:10.1287/mnsc.1050.0399

Amaldoss, W., & Jain, S. (2010). Reference groups and product line decisions: An experimental investigation of limited editions and product proliferation. Management Science, 56(4), 621â€“644. doi:10.1287/mnsc.1090.1133

Ambler, T., & Styles, C. (1996). Brand development versus new product development: towards a process model of extension decisions. Marketing Intelligence & Planning, 14(7), 10-19. doi:10.1108/02634509610152664

Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The impact of food prices on consumption: A systematic review of research on the price elasticity of demand for food. American Journal of Public Health, 100(2), 216-222. doi:10.2105/ajph.2008.151415

Balachander, S., & Stock, A. (2009). Limited edition products: When and when not to offer them. Marketing Science, 28(2), 336â€“355. doi:10.1287/mksc.1080.0401

Baltas, G., & Argouslidis, P. C. (2007). Consumer characteristics and demand for storebrands. International Journal of Retail & Distribution Management, 35(5), 328â€“341. doi:10.1108/09590550710743708

Bao, Y., Bao, Y., & Sheng, S. (2011). Motivating purchase of private brands: Effects of store image, product signatureless and quality variation. Journal of Business Research, 64(2), 220-226. doi:10.1016/j.jbusres.2010.02.007

Bhasin, K. (2011). COKE VS. PEPSI: the amazing story behind the cola wars. Retrieved from https://www.businessinsider.com/soda-wars-coca-cola-pepsi-history-infographic-2011-11

Bhuian, S. N. (1997). Marketing cues and perceived quality: Perceptions of Saudi consumers toward products of the U.S., Japan, Germany, Italy, U.K. and France. Journal of Quality Management, 2(2), 217â€“234. doi:10.1016/S1084-8568(97)90004-3

Blecher, E., Liber, A. C., Drope, J. M., Nguyen, B., & Stoklosa, M. (2017). Global trends in the affordability of sugar-sweetened beverages 1990â€“2016. Preventing Chronic Disease, 14(37), 1-13. doi:10.5888/pcd14.160406

Boulding, W., Karla, A., Staelin, R., & Zeithaml, V. A. (1993). A dynamic process model of service quality: From expectations to behavioural intentions. Journal of Marketing Research, 30(1), 7-27. http://dx.doi.org/10.2307/3172510

Britannica. (2020). PepsiCo, Inc. https://www.britannica.com/topic/PepsiCo-Inc

Calvo-Porral, C., & LÃ©vy-Mangin, J. P. (2017). Store brands' purchase intention: Examining the role of perceived quality. European Research on Management and Business Economics, 23(2), 90-95. doi:10.1016/j.iedeen.2016.10.001

Carman, J. M. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66(1), 33-55.

Chakraborty, U. (2019). The impact of source credible online reviews on purchase intention: The mediating roles of brand equity dimensions. Journal of Research in Interactive Marketing, 13(2), 142â€“161. doi:10.1108/JRIM-06-2018-0080

Chang, W. (2020). Experiential marketing, brand image and brand loyalty: A case study of Starbucks. British Food Journal, 123(1), 209-223. doi:10.1108/bfj-01-2020-0014

Chattopadhyay, A., & Nedungadi, P. (1990). Ad affect, brand attitude and choice: The moderating roles of delay and involvement. Advances in Consumer Research, 17, 619-620. https://www.acrwebsite.org/volumes/7075

Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of Marketing, 65(2), 81-93. doi:10.1509/jmkg.65.2.81.18255

Chen, C. H. (2001). Using free association to examine the relationship between the characteristics of brand associations and brand equity. Journal of Product & Brand Management, 10(7), 439â€“451.

Chernatony, L., & Dallâ€™Olmo, R. F. (1998). Modelling the components of the brand. European Journal of Marketing, 32(11/12), 1074-1090. doi:10.1108/03090569810243721

Chernatony, L., & Dall'Olmo, R. F. (1999). Experts' views about defining services brands and the principles of services branding. Journal of Business Research, 46(2), 181-192. doi:10.1016/S0148-2963(98)00021-6

Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009). The impact of brand awareness on consumer purchase intention: The mediating effect of perceived quality and brand loyalty. The Journal of International Management Studies, 4(1), 135-144.

Clottey, T. A., Collier, D. A., & Stodnick, M. (2008). Drivers of customer loyalty in a retail store environment. Journal of Service Science (JSS), 1(1), 127-153. doi:10.19030/jss.v1i1.4300

Collins-Dodd, C., & Lindley, T. (2003). Store brands and retail differentiation: The influence of store image and store brand attitude on store own brand perceptions. Journal of Retailing and Consumer Services, 10(6), 345-352. doi:10.1016/s0969-6989(02)00054-1

Comparably. (2021). PepsiCo Awards. Retrieved from https://www.comparably.com/companies/pepsico/awards

Danish, R. Q., Khan, M. K., Ghafoor, M. M., Ahmad, I., Humayon, A. A., & Aslam, S. (2018). Impact of Brand Loyalty in Assessing Purchase Intentions of a Customer: A Study of Automobile Industry in South Asian Perspective. South Asian Studies. 33(2), 347â€“364.

Dilip, D., Sinha, R., Wen, C. P., Kee, D. M.H., Ching, C. S., Er, L. K., . . . Yan, Y. W. (2021). The influence of brand equity on consumer purchase decisions at Starbucks. International Journal of Accounting & Finance in Asia Pacific, 4(1), 37-50. doi:10.32535/ijafap.v4i1.1031

Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers' product evaluations. Journal of Marketing Research, 28(3), 307-319. doi:10.2307/3172866

Dodds, W. B. (2002). The effects of perceived and objective market cues on consumers' product evaluations. Marketing Bulletin, 13(2), 1-15.

Dranove, D., Reynolds, K. S., Gillies, R. R., Shortell, S. S., Rademaker, A. W., & Huang, C. -F. (1999). The cost of efforts to improve quality. Medical care, 37(10), 1084-1087 doi:10.1097/00005650-199910000-00012

Edeh, F. O., Quttainah, M. A., Badrulzaman, S. N. S., Kee, D. M. H.; Zamri, S. M., Mahmud, T. T., . . . Awoke, V. C. (2021). Factors contributing to online purchase intention amongst Malaysian consumers: A case of Lazada. International Journal of Accounting & Finance in Asia Pasific, 4(2), 33-45.

Etika. (2021). Who are we and what do we do? https://www.etikaholdings.com/about-us

Fazio, R. H., Chen, J., McDonel, E. C., & Sherman, S. J. (1982). Attitude accessibility, attitude-behavior consistency, and the strength of the object-evaluation association. Journal of Experimental Social Psychology, 18(4), 339-357. doi:10.1016/0022-1031(82)90058-0

French, S. A., Story, M., & Jeffery, R. W. (2001). Environmental influences on eating and physical activity. Annual Review of Public Health, 22(1), 309-335. doi:10.1146/annurev.publhealth.22.1.309

Garretson, J. A., & Clow, K. E. (1999). The influence of coupon face value on service quality expectations, risk perceptions and purchase intentions in the dental industry. Journal of Services Marketing, 13(1), 59â€“72. doi:10.1108/08876049910256122

Gogoi, B. J. (2013). Study of antecedents of purchase intention and its effect on brand loyalty of private label brand of apparel. International Journal of Sales & Marketing, 3(2), 73-86.

GonzÃ¡lez-Benito, Ã“, & Martos-Partal, M. (2012). Role of retailer positioning and product category on the relationship between store brand consumption and store loyalty. Journal of Retailing, 88(2), 236-249. doi:10.1016/j.jretai.2011.05.003

Gustafson, T., & Chabot, B. (2007). Brand Awareness. Cornell Maple.

Ha, H. Y., Janda, S., & Park, S. K. (2011). Role of satisfaction in an integrative model of brand loyalty: evidence from China and South Korea. International Marketing Review, 26(2), 198-220.

Hassan, S., & Shamsudin, M., F. (2019). Measuring the effect of service quality and corporate image on student satisfaction and loyalty in higher learning institutes of technical and vocational education and training. International Journal of Engineering and Advanced Technology, 8(5), 533â€“538. doi:10.35940/ijeat.E1077.0585C19

Hennigâ€Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development. Psychology & Marketing, 14(8), 737-764. doi:10.1177/1094670502004003006

Hennig-Thurau, T., Gwinner, K. P., & Gremler, D. D. (2002). Understanding relationship marketing outcomes: An integration of relational benefits and relationship quality. Journal of Service Research, 4(3), 230â€“247. doi:10.1177/1094670502004003006

IÅ¡oraitÄ—, M. (2016). Marketing mix theoretical aspects. International Journal of Research Granthaalayah, 4(6), 2394-3629. doi:10.29121/granthaalayah.v4.i6.2016.2633

Jaiyeoba, H. B., Abdullah, M. A., & Dzuljastri, A. R. (2020). Halal certification mark, brand quality, and awareness: Do they influence buying decisions of Nigerian consumers? Journal of Islamic Marketing, 11(6), 1657-1670. doi:10.1108/JIMA-07-2019-0155

Kamel, H. (2019, December 9). Etika expands business in Malaysia and Singapore. The Retrieved from https://themalaysianreserve.com/2019/12/09/etika-expands-business-in-malaysia-and-singapore/

Kee, D. M. H., Murthy, R., Ganasen, R., Lingam, R. R., & Chandram, R. (2021). The Impact of Marketing on Customer Loyalty: A Study of Dutch Lady in Malaysia. International Journal of Accounting & Finance in Asia Pacific, 4(3), 31-41. doi:10.32535/ijafap.v4i3.1203

Keller, L. K. (2001). Building customer-based brand equity. Marketing Science Institute.

Keller, L. K. (2007). Strategic brand management: Building, measuring, and managing brand equity (3rd ed.). New York: Pearson.

Kirmani, A., & Baumgartner, H. (2000). Reference points used in quality and value judgements. Marketing Letters, 11(4), 299-310. doi:10.1023/A:1008129011202

Konuk, F. A. (2015). The effects of price consciousness and sale proneness on purchase intention towards expiration date-based priced perishable foods. British Food Journal, 117(2), 793â€“804. doi:10.1108/BFJ-10-2013-0305

Kotler, P., & Armstrong, G. (2010). Principles of Marketing (13th ed.). Pearson.

Lee, S., Illia, A., & Lawsonâ€Body, A. (2011). Perceived price fairness of dynamic pricing. Industrial Management & Data Systems, 111(4), 531-550. doi:10.1108/02635571111133533

Lee, Y. K., Back, K. J., & Kim, J. Y. (2009). Family restaurant brand personality and its impact on customer's emotion, satisfaction, and brand loyalty. Journal of Hospitality & Tourism Research, 33(3), 305â€“328. doi:10.1177/1096348009338511

Lynn, M. (1989). Scarcity effects on desirability: Mediated by assumed expensiveness? Journal of Economic Psychology, 10(2), 257-274. doi:10.1016/0167-4870(89)90023-8

Lynn, M. (1992). Scarcity's enhancement of desirability. The role of naive economic theories. Basic and Applied Social Psychology, 13(1), 61â€“78. doi:10.1207/S15324834BASP1301_6

Malik, M. E., Ghafoor, M. M., Hafiz, K. I., Riaz, U., Hassan, N. U., Mustafa, M., & Shahbaz, S. (2013). Importance of brand awareness and brand loyalty in assessing purchase intentions of consumer. International Journal of Business and Social Science, 4(5), 167-171.

Mao, J. (2010). Customer brand loyalty. International Journal of Business and Management, 5(7), 213-216. doi:10.5539/ijbm.v5n7p213

Mat, K. A., Mohamad, A. A., Omar Ali, S. R., & Mohd Said, N. S. (2020). The role of perceived quality, store image, and trust in predicting customers' purchase intentions towards restaurants in Terengganu. Jurnal Intelek, 15(1), 143-151. doi:10.24191/ji.v15i1.277

McWilliam, G., & Dumas, A. (1997). Using metaphors in new brand design. Journal of Marketing Management, 13(4), 265-284. https://doi/10.1080/0267257X.1997.9964472

Miniard, P. W., Sirdeshmukh, D., & Innis, D. E. (1992). Peripheral Persuasion and Brand Choice. Journal of Consumer Research, 19(2), 226-239. http://dx.doi.org/10.1086/209298

Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A study of factors affecting on customers purchase intention: the agencies of bono brand tile in Tehran. Journal of Multidisciplinary Engineering Science and Technology, 2(1), 268-269.

Mohd Yasin, N., Nasser Noor, M., & Mohamad, O. (2007). Does image of countryâ€ofâ€origin matter to brand equity? Journal of Product & Brand Management, 16(1), 38â€“48.

Moralita, R. M. (2016, November 29). Marketing management (Pepsi & Coke) customer perceived value. Retrieved from https://www.slideshare.net/MauchieWolfeMoralita/maketing-management-pepsi-coke-customer-perceived-value

Mourad, M., Ennew, C., & Kortam, W. (2011). Brand equity in higher education. Marketing Intelligence & Planning, 29(4), 403-420. doi:10.1108/02634501111138563

Munnukka, J. (2006). Pricing method as a tool for improved price perception. Journal of Revenue and Pricing Management, 5(3), 207â€“220. doi:10.1057/palgrave.rpm.5160021

Munnukka, J. (2008). Customers' purchase intentions as a reflection of price perception. Journal of Product & Brand Management, 17(3), 188-196. doi:10.1108/10610420810875106

Nandan, S. (2005). An exploration of the brand identityâ€“brand image linkage: A communications perspective. Journal of Brand Management, 12(4), 264â€“278. doi:10.1057/palgrave.bm.2540222

Nazarani, M. R., & Suparna, G. (2021). The effect of luxury brand, brand image, and product quality on purchase intention. American Journal of Humanities and Social Sciences Research, 5(1), 290-295.

Nuseir, M. T., & Madanat, H. (2015). 4Ps: A strategy to secure customers' loyalty via customer satisfaction. International Journal of Marketing Studies, 7(4), 78-85. doi:10.5539/ijms.v7n4p78

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal or Marketing Research, 17(4), 460â€“469 doi:10.1177/002224378001700405

Owens, D. L., Hardman, M., & Keillor, B. (2001). The Differential Impact of Price-Related Consumer Promotions on Loyal versus Non-Loyal Users of the Brand: A Field Study Investigation. Journal of Promotion Management, 6(1-2), 113-131. doi:10.1300/J057v06n01_10

Paniandi, T. A., Albattat, A. R., Bijami, M., Alexander, A., & Balekrisnan, V. (2018). Marketing mix and destination image, case study: Batu Caves as a religious destination. Journal of Tourism, Culture and Territorial Development, 9(17), 165-18.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1996). The behavioural consequences of service quality. Journal of Marketing, 60(2), 31-46. doi:10.2307/1251929

Paul, J., & Rana, J. (2012). Consumer behavior and purchase intention of organic food. Journal of Consumer Marketing, 29(6), 412-422. doi:10.2139/ssrn.2326893

PeÃ±a-GarcÃa, N., Gil-Saura, I., RodrÃguez-Orejuela, A., & Siqueira-Junior, J. R. (2020). Purchase intention and purchase behavior online: A cross-cultural approach. Heliyon, 6(6), 1-11. doi:10.1016/j.heliyon.2020.e04284

Ranjbarian, K., Kabuli, M. R., Sanayei, A., & Hadadian, A. R. (2012). An analysis of the relationship between perceived value, perceived quality, customer satisfaction and repurchase intention in Tehran department stores. Journal of Business Management, 4(1), 55-70.

Rao, A. R., & Monroe, K. B. (1989). The effect of price, brand name, and store name on buyers' perceptions of product quality. An integrative review. Journal of Marketing Research, 26(3), 351-357. doi:10.1177/002224378902600309

Rehman, H. U. (2014, July). Consumer perception with respect to brand awareness and brand loyalty; Case study of Coke & Pepsi (Masterâ€™s Thesis). Ms. Saima Ulfat, Virtual University of Pakistan, Pakistan. doi:10.13140/2.1.4264.0966

Saleem, A., Ghafar, M., Ibrahim, M., Yousuf, M., & Ahmed, N. (2015). Product perceived quality and purchase intention with consumer satisfaction. Global Journal of Management and Business Research: E-Marketing, 15(1), 20-28.

Sanjaya, W., Asdar, M., & Munir, A. R. (2020). The effect of brand image, brand experience and brand loyalty towards purchase intention on Apple smartphone in Makassar. Hasanuddin Journal of Business Strategy, 2(3), 74-82. doi:10.26487/hjbs.v2i3.350

Sawhney, M. (2004). Going beyond the product: Defining, designing and delivering customer solutions. Retrieved from https://www.academia.edu/24515451/Going_Beyond_the_Product_Defining_Designing_and_Delivering_Customer_Solutions?auto=citations&from=cover_page

Scully, M., Morley, B., Niven, P., Crawford, D., Pratt, I. S., & Wakefield, M. (2017). Factors associated with high consumption of soft drinks among Australian secondary-school students. Public Health Nutrition, 20(13), 2340-2348. doi:10.1017/s1368980017000118

Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill-building approach (5th ed.). River Street Hoboken NJ: John Wiley & Sons.

Shahid, Z., Hussain, T., & Zafar, F. (2017). The impact of brand awareness on the consumers' purchase intention. Journal of Accounting & Marketing, 6(1), 1-4. doi:10.4172/2168-9601.1000223

Smith, R. E., & Swinyard, W., R. (1983). Attitude-behaviour consistency: The impact of product trial versus advertising. Journal of Marketing Research, 20(3), 257-267. doi:10.2307/3151829

Snoj, B., Korda, A., & Mumel, D. (2004). The relationships among perceived quality, perceived risk and perceived product value. Journal of Product & Brand Management, 13(3), 156-167. doi:10.1108/10610420410538050

Stoddard, B. (2002). Encyclopedia of Pepsi-Cola collectibles (2nd Ed.). Iola, WI: Krause Publications.

Thabit, H. T., & Raewf, B. M. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4), 100-109. doi:10.23918/ijsses.v4i4p100

Tural, E., Lu, D., & Austin Cole, D. (2021). Safely and actively aging in place: Older adults' attitudes and intentions toward smart home technologies. Gerontology and Geriatric Medicine, 7, 1-15. doi:10.1177/23337214211017340

United Beverage Company (2018). About us. https://www.pepsikuwait.com/aboutUs

Verhallen, T. M. M. (1982). Scarcity and consumer choice behaviour. Journal of Economic Psychology, 2(4), 299â€“322. doi:10.1016/0167-4870(82)90034-4

Walia, S. B., Kumar, H., & Negi, N. (2020). Impact of brand consciousness, perceived quality of products, price sensitivity and product availability on purchase intention towards 'green' products. International Journal of Technology Management & Sustainable Development, 19(1), 107-118. doi:10.1386/tmsd_00018_1

Wang, J. (2021). How Coca Cola and Pepsi use segmentation in consumer product industry. Proceedings of the 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021), 586, 866-870. doi:10.2991/assehr.k.211020.271

Wardani, P. S., & Sanica, I. G. (2020). Strategy to raise brand awareness using sosial media to the milenials. Jurnal Bisnis Terapan, 4(2), 171-182. doi:10.24123/jbt.v4i2.2961

Yang, L., Bashiru Danwana, S., & Yassaanah, I. F. (2021). An empirical study of renewable energy technology acceptance in Ghana using an extended technology acceptance model. Sustainability, 13, 1-19. doi:10.3390/su131910791

Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology and Marketing, 21(10), 799â€“822. doi:10.1002/mar.20030

Yaseen, S., & Mazahir, I. (2019). Impact of corporate credibility, brand awareness, brand image and brand loyalty on purchase intention in the telecommunication sector of Karachi. Global Management Journal for Academic & Corporate Studies, 9(1), 14-14.

Yonathan, F. C., Setyoviyon, I., Khair, A. A., Mubarrok, M. K., & Rosli, N. B. (2018). Developing marketing strategy of PT Angkasa Dwi Utama to America. International Journal of Applied Business and International Management, 2(3), 71-85. doi:10.32535/ijabim.v2i3.23

Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22. doi:10.1177/002224298805200302

DOI: https://doi.org/10.32535/ijafap.v5i3.1516