EFFECT OF PERCEIVED BRAND QUALITY ON PERFORMANCE OF MEDIUM-SIZED RESTAURANTS IN KISUMU CITY, KENYA
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Abstract
Perceived quality is how a customer evaluates the overall excellence or superiority of a product. Many companies nowadays place a high value on perceived brand quality, and actions taken to increase brand equity may be impacted by it. The majority of the reviewed studies did not look at non-financial performance aspects like customer satisfaction, acquisition, retention, sales growth, and effective and efficient marketing programs. Moreover, even the studies that looked at perceived brand quality, did not consider it in the context of restaurant industry. However, most of the reviewed studies demonstrated that perceived brand quality, has a considerable effect on organizational performance. The current study was anchored on Aaker brand equity theory. The correlation study design and the quantitative paradigm research philosophy helped the researcher in testing hypothesis. The study obtained a sample of 52 respondents, which comprises owners/managers of selected restaurants from a population of 60 registered restaurants using a saturated sampling technique. Results revealed that perceived brand quality (β=.114, p=0.000) has statistically and significant positive effect on non-financial performance of restaurant enterprises in Kisumu city. The study concluded that perceived brand quality, significant predictors of non-financial performance of restaurants; =0.672; F (2, 49) =20.170, p<0.000. The study recommended that firms should consistently improve perceived brand quality among restaurants customers to bring passionate attachment and lasting brand feelings among prospective customers. The academic community, businesses, government authorities, and the general public will find the study's findings useful.
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References
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Agostini, L., Filippini, R., & Nosella, A. (2015). Brand‐building efforts and their association with SME sales performance. Journal of Small Business Management, 53, 161-173.
Aktaş Arnas, Y., Taş, I., & Gürgah Oğul, İ. (2016). The development of brand awareness in young children: how do young children recognize brands? International Journal of Consumer Studies, 40(5), 536-542.
Alexandris, K., Douka, S., Papadopoulos, P., & Kaltsatou, A. (2008). Testing the role of service quality on the development of brand associations and brand loyalty. Managing Service Quality: An International Journal, 18(3), 239-254.
Alhaddad, A. (2015). Perceived quality, brand image and brand trust as determinants of brand loyalty. Journal of Research in Business and Management, 3(4), 01-08.
Alkhawaldeh, A., Al-Salaymeh, M., Alshare, F., & Eneizan, B. M. (2017). The effect of brand awareness on brand loyalty: Mediating role of brand commitment. European Journal of business and Management, 9(36).
Ambolau, M. A., Kusumawati, A., & Mawardi, M. K. (2015). The influence of brand awareness and brand image on purchase decision. Jurnal Administrasi Bisnis, 2(2).
Amegbe, H., & Hanu, C. (2016). Exploring the Relationship Between Green Orientation, Customer Based Brand Equity (CBBE) and the Competitive Performance of SMEs in Ghana. Journal of Marketing Development & Competitiveness, 10(1).
Andai, J. (2016). Influence of brand equity on consumer purchase choices among pay TV subscribers in Nairobi, Kenya (Doctoral dissertation, University of Nairobi).
Anees-ur-Rehman, M., Wong, H. Y., Sultan, P., & Merrilees, B. (2018). How brand-oriented strategy affects the financial performance of B2B SMEs. Journal of Business & Industrial Marketing.
Asamoah, E. S. (2014). Customer based brand equity (CBBE) and the competitive performance of SMEs in Ghana. Journal of Small Business and Enterprise Development.
Atieno, L. L. (2019). Effect of strategy implementation factors on performance of Medium size enterprises in Kisumu (Doctoral dissertation, Maseno University).
Bhaya, Z. (2017). The impact of dimensions of brand association on customer’s satisfaction: An empirical study of the opinions of customers' samples on Zain Iraq's mobile cell phone company. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS), 30(1), 70-81.
Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image and brand loyalty. Business & management studies: an international journal, 6(1), 128-148.
Calvo-Porral, C., & Lévy-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.
Cheng‐Hsui Chen, A. (2001). Using free association to examine the relationship between the characteristics of brand associations and brand equity. Journal of product & brand management, 10(7), 439-451.
Chepchirchir, J., & Leting, M. (2015). Effects of brand quality, brand prestige on brand purchase intention of mobile phone brands: Empirical assessment from Kenya.
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.
Coelho, F. J., Bairrada, C. M., & de Matos Coelho, A. F. (2020). Functional brand qualities and perceived value: The mediating role of brand experience and brand personality. Psychology & Marketing, 37(1), 41-55.
Cohen et al. (2007). Research Methods in education. Routledge Publishing Ltd.
Collis, J., & Hussey, R. (2013). Business research: A practical guide for undergraduate and postgraduate students. Palgrave Macmillan. (pp 42 – 60).
Conway, J. M., & Huffcutt, A. I. (2003). A review and evaluation of exploratory factor analysis practices in organizational research. Organizational research methods, 6(2), 147-168.
Cresswell, J. (2014). Research design, qualitative, quantitative and mixed methods approaches, 4/e. Sage. (pp 31-53)
Cresswell, J. (2014). Research design, qualitative, quantitative and mixed methods approaches, 4/e. Sage. (pp 31-53)
Draper, N. R., & Smith, H. (1998). Applied regression analysis (Vol. 326). John Wiley & Sons.
Ellis, G., Bertini, E., & Dix, A. (2005, April). The sampling lens: making sense of saturated visualizations. In CHI'05 extended abstracts on Human Factors in Computing Systems (pp. 1351-1354).
Erlangga, H., & Erlangga, H. (2021). Did brand perceived quality, image product and place convenience influence customer loyalty through unique value proposition? Journal of Contemporary Issues in Business and Government, 27(1), 2854-2867.
Field, John. Lifelong learning and the new educational order. Trentham Books, Ltd., Westview House, 734 London Road, Stoke on Trent, ST4 5NP, United Kingdom UK (15.99 British pounds; 25 Euros), 2000.
French, A., & Smith, G. (2013). Measuring brand association strength: a consumer-based brand equity approach. European Journal of Marketing, 47(8), 1356-1367.
Greener, S. (2008). Business research methods. Ventus Publishing ApS (pp 33 - 35). Available at www.bookboon.com
Gujarati, Damodar N. "Sangeetha (2007) Basic Econometrics." Tata McGraw Hill Publishing Company Limited, New Delhi 110.008 (2007): 451-452.
Holden, S. J. (1992). Brand equity through brand awareness: Measuring and managing brand retrieval. University of Florida.
Hoyer, W. D., & Brown, S. P. (1990). Effects of brand awareness on choice for a common, repeat-purchase product. Journal of consumer research, 17(2), 141-148.
Ishaq, M. I., Hussain, N., Asim, A. I., & Cheema, L. J. (2014). Brand equity in the Pakistani hotel industry. Revista de Administração de Empresas, 54, 284-295.
Karam, A. A., & Saydam, S. (2015). An analysis study of improving brand awareness and its impact on consumer behavior via media in North Cyprus (A case study of fast food restaurants). International Journal of Business and Social Science, 6(1), 66-80.
Kothari, C.R. (2004). Research Methodology-Methods and techniques. New Age International Publishing Ltd.
Liu, M. T., Wong, I. A., Shi, G., Chu, R., & Brock, J. L. (2014). The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference. Journal of Services Marketing.
Maddala, G. S., Hongyi Li, and Virendra K. Srivastava. "A comparative study of different shrinkage estimators for panel data models." Annals of Economics and Finance 2.1 (2001): 1-30.
Mugenda O. and Mugenda A., (1999). Research Methods: African Centre for Technology Studies: Nairobi, Kenya.
Mugenda, O.M and Mugenda, A.G. (2003). Research Methods: Qualitative and Quantitative approaches. Nairobi, Kenya: African Centre for Technology Studies.
Odhiambo, P. O., & Nassiuma, B. K. (2017). Supplier Integration Practices and Production Capacity in Restaurant Enterprises, Kisumu City Kenya. International Journal of Supply Chain Management, 2(1), 97-105.
O'Hair, Dan, Gustav W. Friedrich, and Lynda Dee Dixon. "Strategic communication in business and the professions." (1998).
Prasad, K., & Dev, C. S. (2000). Managing hotel brand equity: A customer-centric framework for assessing performance. The Cornell Hotel and Restaurant Administration Quarterly, 41(3), 22-4.
Ringle, Christian, Dirceu Da Silva, and Diógenes Bido. "Structural equation modeling with the SmartPLS." Bido, D., da Silva, D., & Ringle, C. (2014). Structural Equation Modeling with the Smartpls. Brazilian Journal of Marketing 13.2 (2015).
Romaniuk, J., Wight, S., & Faulkner, M. (2017). Brand awareness: revisiting an old metric for a new world. Journal of Product & Brand Management.
Seo, J., & Kim, G. (2022). The effect of Brand Association in Public Libraries on Customer Satisfaction and Loyalty in Public Libraries-Focused on the 20s. Journal of the Korean Society for Library and Information Science, 56(1), 321-345.
Sounders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students, 5/e. (pp 106 – 128)
Susanti, V., Sumarwan, U., Simanjuntak, M., & Yusuf, E. Z. (2019). How to manage customer satisfaction through brand association and perceived value strategy. J. Mgt. Mkt. Review, 4(3), 184-193.
Tabachnick, Barbara G., Linda S. Fidell, and Jodie B. Ullman. Using multivariate statistics. Vol. 6. Boston, MA: Pearson, 2013.
Vatcheva, Kristina P., et al. "Multicollinearity in regression analyses conducted in epidemiologic studies." Epidemiology (Sunnyvale, Calif.) 6.2 (2016).
Vera, J. (2015). Perceived brand quality as a way to superior customer perceived value crossing by moderating effects. Journal of Product & Brand Management.
Adeoye, I., Ayodele, O. E., Adesuyi, I. O., & Ayo, M. F. (2021). Brand Association and Sales Growth: A Study of Nigeria the Flour Milling Industry. International Journal of Entrepreneurial Research, 4(3), 60-63.
Agostini, L., Filippini, R., & Nosella, A. (2015). Brand‐building efforts and their association with SME sales performance. Journal of Small Business Management, 53, 161-173.
Aktaş Arnas, Y., Taş, I., & Gürgah Oğul, İ. (2016). The development of brand awareness in young children: how do young children recognize brands? International Journal of Consumer Studies, 40(5), 536-542.
Alexandris, K., Douka, S., Papadopoulos, P., & Kaltsatou, A. (2008). Testing the role of service quality on the development of brand associations and brand loyalty. Managing Service Quality: An International Journal, 18(3), 239-254.
Alhaddad, A. (2015). Perceived quality, brand image and brand trust as determinants of brand loyalty. Journal of Research in Business and Management, 3(4), 01-08.
Alkhawaldeh, A., Al-Salaymeh, M., Alshare, F., & Eneizan, B. M. (2017). The effect of brand awareness on brand loyalty: Mediating role of brand commitment. European Journal of business and Management, 9(36).
Ambolau, M. A., Kusumawati, A., & Mawardi, M. K. (2015). The influence of brand awareness and brand image on purchase decision. Jurnal Administrasi Bisnis, 2(2).
Amegbe, H., & Hanu, C. (2016). Exploring the Relationship Between Green Orientation, Customer Based Brand Equity (CBBE) and the Competitive Performance of SMEs in Ghana. Journal of Marketing Development & Competitiveness, 10(1).
Andai, J. (2016). Influence of brand equity on consumer purchase choices among pay TV subscribers in Nairobi, Kenya (Doctoral dissertation, University of Nairobi).
Anees-ur-Rehman, M., Wong, H. Y., Sultan, P., & Merrilees, B. (2018). How brand-oriented strategy affects the financial performance of B2B SMEs. Journal of Business & Industrial Marketing.
Asamoah, E. S. (2014). Customer based brand equity (CBBE) and the competitive performance of SMEs in Ghana. Journal of Small Business and Enterprise Development.
Atieno, L. L. (2019). Effect of strategy implementation factors on performance of Medium size enterprises in Kisumu (Doctoral dissertation, Maseno University).
Bhaya, Z. (2017). The impact of dimensions of brand association on customer’s satisfaction: An empirical study of the opinions of customers' samples on Zain Iraq's mobile cell phone company. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS), 30(1), 70-81.
Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image and brand loyalty. Business & management studies: an international journal, 6(1), 128-148.
Calvo-Porral, C., & Lévy-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.
Cheng‐Hsui Chen, A. (2001). Using free association to examine the relationship between the characteristics of brand associations and brand equity. Journal of product & brand management, 10(7), 439-451.
Chepchirchir, J., & Leting, M. (2015). Effects of brand quality, brand prestige on brand purchase intention of mobile phone brands: Empirical assessment from Kenya.
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.
Coelho, F. J., Bairrada, C. M., & de Matos Coelho, A. F. (2020). Functional brand qualities and perceived value: The mediating role of brand experience and brand personality. Psychology & Marketing, 37(1), 41-55.
Cohen et al. (2007). Research Methods in education. Routledge Publishing Ltd.
Collis, J., & Hussey, R. (2013). Business research: A practical guide for undergraduate and postgraduate students. Palgrave Macmillan. (pp 42 – 60).
Conway, J. M., & Huffcutt, A. I. (2003). A review and evaluation of exploratory factor analysis practices in organizational research. Organizational research methods, 6(2), 147-168.
Cresswell, J. (2014). Research design, qualitative, quantitative and mixed methods approaches, 4/e. Sage. (pp 31-53)
Cresswell, J. (2014). Research design, qualitative, quantitative and mixed methods approaches, 4/e. Sage. (pp 31-53)
Draper, N. R., & Smith, H. (1998). Applied regression analysis (Vol. 326). John Wiley & Sons.
Ellis, G., Bertini, E., & Dix, A. (2005, April). The sampling lens: making sense of saturated visualizations. In CHI'05 extended abstracts on Human Factors in Computing Systems (pp. 1351-1354).
Erlangga, H., & Erlangga, H. (2021). Did brand perceived quality, image product and place convenience influence customer loyalty through unique value proposition? Journal of Contemporary Issues in Business and Government, 27(1), 2854-2867.
Field, John. Lifelong learning and the new educational order. Trentham Books, Ltd., Westview House, 734 London Road, Stoke on Trent, ST4 5NP, United Kingdom UK (15.99 British pounds; 25 Euros), 2000.
French, A., & Smith, G. (2013). Measuring brand association strength: a consumer-based brand equity approach. European Journal of Marketing, 47(8), 1356-1367.
Greener, S. (2008). Business research methods. Ventus Publishing ApS (pp 33 - 35). Available at www.bookboon.com
Gujarati, Damodar N. "Sangeetha (2007) Basic Econometrics." Tata McGraw Hill Publishing Company Limited, New Delhi 110.008 (2007): 451-452.
Holden, S. J. (1992). Brand equity through brand awareness: Measuring and managing brand retrieval. University of Florida.
Hoyer, W. D., & Brown, S. P. (1990). Effects of brand awareness on choice for a common, repeat-purchase product. Journal of consumer research, 17(2), 141-148.
Ishaq, M. I., Hussain, N., Asim, A. I., & Cheema, L. J. (2014). Brand equity in the Pakistani hotel industry. Revista de Administração de Empresas, 54, 284-295.
Karam, A. A., & Saydam, S. (2015). An analysis study of improving brand awareness and its impact on consumer behavior via media in North Cyprus (A case study of fast food restaurants). International Journal of Business and Social Science, 6(1), 66-80.
Kothari, C.R. (2004). Research Methodology-Methods and techniques. New Age International Publishing Ltd.
Liu, M. T., Wong, I. A., Shi, G., Chu, R., & Brock, J. L. (2014). The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference. Journal of Services Marketing.
Maddala, G. S., Hongyi Li, and Virendra K. Srivastava. "A comparative study of different shrinkage estimators for panel data models." Annals of Economics and Finance 2.1 (2001): 1-30.
Mugenda O. and Mugenda A., (1999). Research Methods: African Centre for Technology Studies: Nairobi, Kenya.
Mugenda, O.M and Mugenda, A.G. (2003). Research Methods: Qualitative and Quantitative approaches. Nairobi, Kenya: African Centre for Technology Studies.
Odhiambo, P. O., & Nassiuma, B. K. (2017). Supplier Integration Practices and Production Capacity in Restaurant Enterprises, Kisumu City Kenya. International Journal of Supply Chain Management, 2(1), 97-105.
O'Hair, Dan, Gustav W. Friedrich, and Lynda Dee Dixon. "Strategic communication in business and the professions." (1998).
Prasad, K., & Dev, C. S. (2000). Managing hotel brand equity: A customer-centric framework for assessing performance. The Cornell Hotel and Restaurant Administration Quarterly, 41(3), 22-4.
Ringle, Christian, Dirceu Da Silva, and Diógenes Bido. "Structural equation modeling with the SmartPLS." Bido, D., da Silva, D., & Ringle, C. (2014). Structural Equation Modeling with the Smartpls. Brazilian Journal of Marketing 13.2 (2015).
Romaniuk, J., Wight, S., & Faulkner, M. (2017). Brand awareness: revisiting an old metric for a new world. Journal of Product & Brand Management.
Seo, J., & Kim, G. (2022). The effect of Brand Association in Public Libraries on Customer Satisfaction and Loyalty in Public Libraries-Focused on the 20s. Journal of the Korean Society for Library and Information Science, 56(1), 321-345.
Sounders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students, 5/e. (pp 106 – 128)
Susanti, V., Sumarwan, U., Simanjuntak, M., & Yusuf, E. Z. (2019). How to manage customer satisfaction through brand association and perceived value strategy. J. Mgt. Mkt. Review, 4(3), 184-193.
Tabachnick, Barbara G., Linda S. Fidell, and Jodie B. Ullman. Using multivariate statistics. Vol. 6. Boston, MA: Pearson, 2013.
Vatcheva, Kristina P., et al. "Multicollinearity in regression analyses conducted in epidemiologic studies." Epidemiology (Sunnyvale, Calif.) 6.2 (2016).
Vera, J. (2015). Perceived brand quality as a way to superior customer perceived value crossing by moderating effects. Journal of Product & Brand Management.