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Indian Journal of Finance | Prabandhan: Indian Journal of Management | Arthshastra: Indian Journal of Economics & Research
 

   Volume 44 • Number 7 • July 2014

 
Factors Affecting Brand Trust: An Exploratory Investigation Among Indian Retail Consumers
Indian Journal of Marketing, 44(7), 7 – 17
Retailers aim at building brands that can command loyalty and win the trust of consumers. The valuations of brands undertaken by Interbrand shows that brands like Coca-Cola, Microsoft, Wal-Mart, and so forth are valued at sums larger than their turnovers. However, all brands do not succeed in becoming highly valued brands. When it comes to succeeding with branding, one of the key aspects of branding has been winning the 'trust' of consumers. This paper sets out to focus on the various aspects that engender brand trust among consumers of organized retail stores in India through a survey of consumers and elucidates the factors retailers need to manage to enable brand trust. We collected data from 260 shoppers by using 16 variables. The collected data were subjected to exploratory factor analysis (EFA) with principal axis factoring. The findings indicate that the retail consumer brand trust in India is influenced by four factors - Customer Commitment, Reliability, Reputation, and Retail Environment. The managerial implications of the present study are that retailers need to adopt strategies that evince customer commitment and a very good shopping ambience if they wish to engender brand trust and create a large base of loyal customers.
Keywords: brand trust, retailers, customer commitment, retail environment, brand loyalty, valued brand, branding

Paper Submission Date : February 5, 2014 ; Paper sent back for Revision : March 5, 2014 ; Paper Acceptance Date : April 17, 2014
References
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3 Albert, N., & Merunka, D. (2013). The role of brand love in consumer-brand relationships. Journal of Consumer Marketing, 30 (3), 258 - 266. DOI: 10.1108/07363761311328928
4 Bainbridge, J. (1997, October 23). Who wins the national trust? Marketing, pp. 21-23.
5 Ball, D., Coelho, P.S., & Machás, A. (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI Model. European Journal of Marketing, 38 (9/10), 1272 - 1293. DOI:10.1108/03090560410548979
6 Binninger, A. - S. (2008). Exploring the relationships between retail brands and consumer store loyalty. International Journal of Retail & Distribution Management, 36 (2), 94 - 110. DOI:10.1108/09590550810853057
7 BMI India Retail Report. (2013, July 11). In fast market research. Retrieved from http://www.fastmr.com/prod/589164_bmi
8 Chattopadhyay, A. (2013). Consumer shopping behaviour in the new era of retailing: An empirical study on food and grocery and apparel purchase in East India. Indian Journal of Marketing, 43(12), 47 - 57.
9 Chaudhuri, A., & Holbrook, M.B. (2001). The chain of effects form brand trust and brand effect to brand performance: The role of brand loyalty. Journal of Marketing, 65 (2), 81-93.
10 Davies, G. (1992). The two ways in which retailers can be brands. International Journal of Retail & Distribution Management, 20 (2), 24-34. DOI:10.1108/09590559210009312
11 Delgado-Ballester, E., & Munuera-Alemán, J.L. (2001). Brand trust in the context of consumer loyalty. European Journal of Marketing, 35 (11/12), 1238-1258. DOI: 10.1108/EUM0000000006475
12 Delgado-Ballester, E., Munuera-Alemán, J.L., & Yagüe-Guillén, M.J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 35 - 53.
13 Gefen , D ., Karahanna , E., & Straub , D. W . (2003). Trust and TAM in online shopping: An integrated model. MIS Quarterly, 27(1), 51 - 90.
14 Grewal, D., Levy, M., & Lehmann, D.R. (2004). Retail branding and customer loyalty: An overview. Journal of Retailing, 80 (4), 9-12.
15 Guenzi, P., Johnson, M. D., & Castaldo, S. (2009). A comprehensive model of customer trust in two retail stores. Journal of Service Management, 20 (3), 290 - 316. DOI:10.1108/09564230910964408
16 Ha, H.-Y. (2004). Factors influencing consumer perceptions of brand trust online. Journal of Product and Brand Management, 13 (5), 329-342. DOI: 10.1108/10610420410554412
17 Hair, J. F. Jr., Anderson, R. E., Tatham, R. L., & Black W. C. (1998). Multivariate data analysis (5th Ed.). New Jersey: Prentice Hall.
18 Hartman, K. B., & Spiro, R. L. (2005). Recapturing store image in customer-based store equity: A construct conceptualization. Journal of Business Research, 58 (8), 1112-1120. DOI:10.1016/j.jbusres.2004.01.008
19 Kaushal, S. K., & Medhavi, S. (2011). To identify the prominent factors of shopping mall behaviour: A factor analysis approach. Indian Journal of Marketing, 41 (5), 53 -64.
20 Kent, T. (2003). 2D23D: Management and design perspectives on retail branding. International Journal of Retail & Distribution Management, 31 (3), 131- 142. DOI: 10.1108/09590550310465503
21 Kumar, B., & Gogoi, M. (2011). A case study on consumers' buying behaviour and brand loyalty with regard to processed liquid packed milk in Guwahati, Assam. Indian Journal of Marketing, 41(5), 48-52.
22 Lau, G.T., & Lee, S.H. (1999). Consumers' trust in a brand and the link to brand loyalty. Journal of Market Focused Management, 4 (4), 341 - 370. DOI : 10.1023/A:1009886520142
23 Luk, S.T.K., & Yip, L.S.C. (2008). The moderator effect of monetary sales promotion on the relationship between brand trust and purchase behavior. Journal of Brand Management, 15 (6), 452 - 464. DOI:10.1057/bm.2008.12
24 Malik, M. R. (2011). Determinants of retail customer satisfaction - A study of organized retail outlets in Kurukshetra. Indian Journal of Marketing, 41(4), 56-64.
25 Malik, R. (2012). To build a model for the determination of factors that result in the success of the organized retail sector in India and analyzing its relative importance (with reference to fast food chains and grocery and vegetable outlets). Indian Journal of Marketing, 42 (2), 40-50.
26 Morgan, R.M., & Hunt, S.D. (1994). The commitment - trust theory of relationship marketing. Journal of Marketing, 58 (3), 20 - 38.
27 Ramola, B.G., & Bhasin, R. (2013, June 30). Winning in India's retail sector: Factors for success. Retrieved from http://list2.pwc.fr/assets/files/lettre_retail-and-consumer/pwc_winning_in_india_retail_sector_1.pdf
28 Saurabh & Mahajan, A. (2013). Consumers' perception towards miraculous claims of brands with aesthetic appeal. Indian Journal of Marketing, 43(9), 32- 40.
29 Selnes, F. (1998). Antecedents and consequences of trust and satisfaction in buyerseller relationships. European Journal of Marketing, 32 (3/4), 305 - 322. DOI: 10.1108/03090569810204580
30 Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgements. Journal of the Academy of Marketing Science, 28 (1), 150 - 167. DOI : 10.1177/0092070300281014
31 Sung, Y., & Kim, J. (2010). Effects of brand personality on brand trust and brand affect. Psychology & Marketing, 27 (7), 639 - 661. DOI: 10.1002/mar.20349
32 Sung, Y., Kim, J., & Jung, J.- H. (2010). The predictive roles of brand personality on brand trust and brand affect: A study of Korean consumers. Journal of International Consumer Marketing, 22 (1), 5-17. DOI:10.1080/08961530902844907
33 Swoboda, B., Haelsig, F., Schramm-Klein, H., & Morschett, D. (2009). Moderating role of involvement in building a retail brand. International Journal of Retail & Distribution Management, 37(11), 952-974. DOI:10.1108/09590550910999370
34 Vyas, P. H., & Sinha, P. K. (2008). Loyalty programmes: Practices, avenues, and challenges (W.P. No.2008-12-01). Retrieved from http://www.iimahd.ernet.in/publications/data/2008-12-01Preeta.pdf
35 Zboja, J. J., & Voorhees, C. M. (2006). The impact of brand trust and satisfaction on retailer repurchase intentions. Journal of Services Marketing, 20 (6), 381 - 390. DOI:10.1108/08876040610691275
Rajesh Panda
Director
Symbiosis Institute of Business Management Bengaluru (Constituent of Symbiosis International University (SIU))
#95/1, 95/2, Electronics City, Phase-1, Hosur Road
Bengaluru- 560 100.
director@sibm.edu.in , rajeshpanda.80@gmail.com
 
Biranchi Narayan Swar
Associate Professor-Marketing
Symbiosis Institute of Business Management Bengaluru (Constituent of Symbiosis International University (SIU))
#95/1, 95/2, Electronics City, Phase-1, Hosur Road
Bengaluru-560 100.
swar_biranchi@rediffmail.com

Kaushik Mukerjee
Professor, Symbiosis Institute of Business Management (Constituent of Symbiosis International University (SIU))
Symbiosis Knowledge Village, Gram: Lavale via Sus Road
Tal: Mulshi, Dist. Pune - 412 115.
kaushikmukerjee@sibm.edu , kaushikmukerjee@gmail.com
 
 
Factors of Product Customization for the 1200cc Passenger Car Segment: An Empirical Study in Central India
Indian Journal of Marketing, 44(7), 18 -29

Increasing competition in the automobile market has put a great challenge before car companies to cater to the specific needs of the customers in order to remain in business. The growing competition also requires frequent innovations in the industry. High cost associated with frequent innovations may cause big setbacks to these companies if any new launch of a passenger car model fails to attract the customers' attention. A precise model specification, catering to the needs and aspirations of the customers, is ,therefore, required. This paper is an effort to find out the factors that help the companies to customize their products as per varied customer needs, categorized on the basis of their socioeconomic classes such as age, city, occupation, income group, and their present car ownership status. The study investigated selected twenty variables as determinants of the customers' choice for the selection of a 1200cc car. Factor analysis (on the influencing variables) out of the said twenty variables was applied to the respective categories of customers. The analysis found varying factors that contributed differently in the customers' choice while selecting a 1200cc car. Considering these factors and their contribution, the passenger car companies, especially in the 1200cc segment, can incorporate appropriate specifications for innovation in their products.

Keywords: passenger car segment, factor analysis, product customization, automobile industry
Paper Submission Date : October 25, 2013 ; Paper sent back for Revision : February 7, 2014 ; Paper Acceptance Date : March 1, 2014
References
1 Adetayo, J.O., & Apollos, E. A. (2013). An overview of service delivery and customer satisfaction in the telecommunication industry in Nigeria. Indian Journal of Marketing, 43 (8), 14-22.
2 Bikash, R.D., Pravat S.K., & Sreekumar (2010). Factors influencing purchase of 'NANO' - The innovative car from India : An empirical study. Asian Journal of Business Management, 2 (3), 48-56.
3 Buyingadvice.com (n.d.). Over half of car buyers factor auto manufacturer's warranty into choice. Retrieved from http://www.buyingadvice.com/warranty-survey.html
4 Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2005). Multivariate data analysis (6th ed.). New Delhi : Prentice Hall of India.
5 Newstead, S., Cameron, M., Delaney, A., & Watson, L. (2006). Study of the relationship between injury outcomes in police reported crash data and crash barrier test results in Europe and Australia. Retrieved from http://www.euroncap.com/files/SARAC_report_2006---c69a85cf-3aaf-44c7-8ed3-f1a8d3d9f414.pdf
6 Ranawat, M., & Tiwari, R. (2009). Influence of government policies on industry development: The case of India's automotive industry. Technology and Innovation Management (University of Hamburg) Working Paper No. 57.SSRN. DOI : http://dx.doi.org/10.2139/ssrn.1583449
7 Thakar, G. D., Jain, N. K., & Singh, M. D. (2012). Identification of factors affecting the choices of automobile in 1200cc passenger car segment - An empirical study of Central India. Udyog Pragati, 36 (4), 1-11.
Neeraj Kumar Jain
Assistant Professor
Industrial and Production Engineering Department
Shri Govindram Seksaria Institute of Technology and Science (SGSITS)
23, Park Road, Indore
Madhya Pradesh.
asaus343@yahoo.co.in
G. D. Thakar
Associate Professor
Industrial and Production Engineering Department
Shri Govindram Seksaria Institute of Technology and Science (SGSITS)
23, Park Road, Indore, Madhya Pradesh.
gthakar@sgsits.ac.in
 
 
 
Used Durables and Online Buying: An Attitudinal Study of Indian Youth
Indian Journal of Marketing, 44(7), 30 -47
The present paper is an empirical paper based on an online survey conducted in the first quarter of the year 2013. Preliminary findings were presented at an international conference in the last quarter of 2013, and changes were made based on suggestions received from the co-delegates. The study attempts to investigate the attitude, perception, and motivation of Indian youth, especially management students, regarding their adoption of a distinguished selling/ buying online platform for used laptops through a consumer to consumer discount e-commerce portal. With an exploratory research design, this paper uses multivariate analyses to draw perceptual mapping of the proposed portal vis-à-vis other e-commerce sites. It simulates a business model with an integrated value chain from acquisition and selling of used laptops at a discounted price to a value added after sales/ post purchase service in a committed manner. A focus group discussion was carried out initially among the sampling units from the sampling frame of a management college to understand the antecedents. Based on the findings, a questionnaire was developed and pre-tested through a survey design. Across its two stages, the research used both exploratory and descriptive design in sequence. The second part of the research helps in conceptualizing an optimum marketing mix, and explaining differentiation and positioning variables for the commercial launch of such a venture. However, the current paper discusses only the first part of the study.
Keywords : consumerism, performance marketing, disposal behavior, consumer adoption, e-commerce
Paper Submission Date : December 17, 2013 ; Paper sent back for Revision : April 3, 2014 ; Paper Acceptance Date : May 5, 2014
References
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30 Shalini, S., & Kamalaveni, D. (2013). Online buying behaviour of netizens: A study with reference to Coimbatore, Tamil Nadu. Indian Journal of Marketing, 43 (8), 35 - 45.
31 Slade, G. (2006). Made to break: Technology and obsolescence in America. USA: Harvard University Press.
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35 Venkatesh, V. (2000). Determinants of perceived ease-of-use: Integrating control, intrinsic motivation, and emotion into the technology acceptance model. Information Systems Research, 11(4), 342-365. DOI : http://dx.doi.org/10.1287/isre.11.4.342.11872
36 Walker, R. H., & Johnson, L. W. (2006). Why consumers use and do not use technology-enabled services. Journal of Services Marketing, 20 (2), 125-135. DOI:10.1108/08876040610657057
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Surjit Kumar Kar
Assistant Professor - Marketing & Strategy Area
IBS Hyderabad, Donthanapally, Shankarapalli Road
Hyderabad- 501 203.
surjitkar@yahoo.co.in

Monalisa Bhoi
Student, MBA-II, IBS Hyderabad
Donthanapally, Shankarapalli Road, Hyderabad- 501 203.
monalisa.bhoi3@gmail.com
 

 
 
A Study on the Impact of Infrastructure Elements on Aspiring Home Buyers in the National Capital Region
Indian Journal of Marketing, 44(7), 48 - 59
While the most decisive factor for purchasing residential real estate has largely been location, location, and location, there are other factors such as price, amenities, and the developer repute, that also prove to be decisive for a potential home buyer in making the final choice. However, in the current scenario, elements such as water, energy, transportation, and other variables have assumed considerable significance for the prospective clients seeking to purchase a place to dwell in. This present scenario is largely attributed to the fact that certain premium townships across India, which were once most sought after in the initial stages of launch, post handover, the end users had multiple grievances pertaining to their surrounding support systems such as road, electricity, health care, and so forth. This set of interrelated support systems that makes life easier and contributes to the functioning of the society and its activities is termed as infrastructure. The simplified definition of infrastructure is that it is a framework under which various systems and their components operate and deliver service to the end users. Human beings, over a period of time, have created support frameworks in order to sustain themselves in and around their dwellings. From establishing living spaces in and around sources of food and water, in the present times, accessibility and proximity to places of work have taken precedence. Thus, an assessment of the findings of the study throws light on why infrastructure is slowly becoming a high-priority factor in influencing the home buyer's mindset.
Keywords: community, developer, fuel, government, infrastructure, livability, power, public - private partnership, society, sustainability, water
Paper Submission Date: February 10, 2014 ; Paper sent back for Revision : April 12, 2014 ; Paper Acceptance Date : May 6, 2014
References
1 Edwards, P. N. (2003). Infrastructure and modernity: Force, time, and social organization in the history of socio technical systems. In P. Brey, A. Feenberg, & T. Misa (Eds.) Modernity and technology (p.3, pp. 186 - 225). Cambridge: MIT Press.
2 Gonzalez-Navarro, M., & Quintana-Domeque, C. (2010). Public infrastructure, private investment and residential property values: Experimental evidence from street pavement. Paper presented at the Labour & Population: Proceedings of an International Conference, Santa Monica on 13 September (p. 3, pp. 19-20). Santa Monica: Rand Corporation.
3 Grant Thornton. (2012). Unlocking the potential for growth through reforms: Indian real estate sector | Annual handbook 2012 (p.1, pp. 4-5). New Delhi: Grant Thornton.
4 Grant Thornton. (2013). Union Budget 2013-14: Impact on the real estate & infrastructure (REI) sector (p.1, pp. 5-6). New Delhi: Grant Thornton.
5 Grigg, S.N. (2010). Infrastructure finance: The Business of infrastructure for a sustainable future (pp. 2-4). New Jersey: John Wiley & Sons.
6 Haider, M., & Miller, E. J. (2000). Effects of transportation infrastructure and location on residential real estate values: Application of spatial autoregressive techniques. Transportation Research Record: Journal of the Transportation Research Board, 1722 (1), 1-8.
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9 Kanoria, H., & Agarwal, A.K. (2012). Roadblocks in accelerating infrastructure development. Proceedings of India Infrastructure Summit 2012: Accelerating Implementation of Infrastructure Projects held in New Delhi on 31 August 2012 (p.2, pp. 31-29). New Delhi: FICCI & Ernst & Young.
10 Kockelman, K. M., Siethoff, B., Walton, C. M., & Mahmassani, H. S. (2001). Research on relationships between transportation infrastructure & increases in vehicle miles traveled: The effects of highway capacity expansion on land development (p.4, pp. 57 - 59). Final Technical Report for the U.S. Environmental Protection Agency. Center for Transportation Research, University of Texas, Austin.
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Rashi Mittal
Assistant Professor, School of Business Management
Noida International University, Yamuna Expressway
Gautam Budh Nagar, Uttar Pradesh.
rashimittal1@gmail.com
 
Ananta Singh R.
PhD Research Scholar, Noida International University
Yamuna Expressway, Gautam Budh Nagar, Uttar Pradesh.
ananta.raghav@gmail.com