Consumers’ Brand Preference of Soft Drinks. A Comparative Analysis of Pepsi Cola and Coca-Cola Products

Master's Thesis, 2017

92 Pages, Grade: 4.0









1.1. Background of the Study
1.2. Statement of the problem
1.3. Objectives of the Study
1.3.1. General objective
1.3.2. Specific objectives
1.4. Research Questions
1.5. Significance of the Study
1.6. Scope of the study
1.7. Limitations of the study
1.8. Organization of the study

2.1. The Concepts and Definitions of Brand
2.2. Consumer Brand Preferences
2.3. Brand Equity
2.3.1. Brand Loyalty
2.3.2. Brand Awareness
2.3.3 Brand Association
2.3.4 Perceived Quality
2.3.5. Satisfaction
2.3.5. Price
2.4. Brand Identity
2.4.1 Brand Personalities
2.4.2. Culture
2.4.3. Self-Image
2.5. Conceptual Framework of the Study

3.1. Description of the Study Area
3.2. Research Design
3.3. Data Sources
3.4. Sampling Design
3.4.1. Sample Size Determination
3.4.2. Sampling Technique
3.5. Data Collection Instruments
3.5.1. Questionnaire
3.6. Methods of Data Processing and Analysis
3.7. Ethical Consideration

4.1. Background Information of Respondents
4.2. Descriptive Analysis
4.3. Comparative Analysis of Pepsi Cola and Coca-Cola Products
4.4. The Relationship between Brand Preference and Students Background Information

5.1. Summary of Major Findings
5.2. Conclusion
5.3. Recommendations




The completion of this research is a result of so many people’s efforts that deserve appreciation. My foremost thanks go to my principal advisor, Dr Aravind Soudikar for his close supervision, valuable comments, professional advice and encouragement during the research work. My great appreciation also goes to my co- advisor Mr. Yilma Geleta for every helps he made for me.

My thank goes to Hawassa city education office officers and Hawassa Tabor high school supervisors, principals, teachers and students for helping me the relevant information at data collection moment. And also to all data collectors and respondents who participated in this study.

At last but not least, I would like to take this opportunity to express my immense gratitude to my friends, my family and other individuals who helped me in the course of my study.



Table 1: Reliability test for the developed questionnaire

Table 2: Sex and Age of Students (n=374)

Table 3: Students Preferred Brand and Their Reasons for Brand Preference

Table 4: Frequency of soft drink consumption in a week and reasons for consuming

Table 5: Descriptive analysis on students brand equity and brand identity

Table 6: Brand Loyalty of Students on their preferred Soft Drink

Table 7: Perceived Quality of Students on their preferred Soft Drink

Table 8: Price of a soft drink preferred by students

Table 9: Brand Awareness of Students on their Preferred Soft Drink

Table 10: Satisfaction of Students on their Preferred Soft Drink

Table 11: Culture of Students on their Preferred Soft Drink

Table 12: Self Image of Students on their Preferred Soft Drink

Table 13: Brand Personality of Students on their Preferred Soft Drink

Table 14: Background Information of Students and their Preferred Soft Drink (n=374)


Figure 2 has been removed by GRIN for copyright reasons.


Figure 1: The Conceptual model for brands preference

Figure 2: Administrative Map of Hawassa City Administration

Figure 3: Schematic representation used to select study participants in Tabor secondary and preparatory school students


Abbildung in dieser Leseprobe nicht


Despite their popularity, studies concerning soft drinks are lacking. Hence, this study was conducted to assess the consumers’ brand preference of soft drinks: A comparative analysis of Coca cola and Pepsi cola products among Hawassa Tabor high school students. Both primary and secondary data sources were used in the study. The required data were collected from 374 students of soft drink customers selected by adopting a multistage sampling technique. Descriptive research design with quantitative method was used. The data collected through questionnaire were analyzed using SPSS software version 21. Descriptive statistics such as frequency and percentage, mean and standard deviation were applied. Furthermore, inferential statistics such as independent sample t-test and Chi-square analysis were used to compare the coca cola and Pepsi cola brands based on brand equity, brand identity and background characteristics of students. The findings of the study show that Coca cola is the best brand for high school students. The reasons of consumers to prefer Coca cola were its taste, refreshment and frequency of advertisement. Coca cola customer used the brand not only to fill their basic thirst but also for study purpose. Coca cola has built strong brand on the three component of brand equity such as perceived quality, brand awareness and satisfaction. This provides value to the customer by enhancing satisfaction and confidence in purchase decision and to the firm by enhancing competitive advantage. Coca cola has also strong brand on the two component of brand identity such as self-image and brand personality. Those students from rural area were Pepsi Cola brand customers and those students from urban area were Coca Cola brand customers. Coca Cola brand customers consume frequently than Pepsi Cola customers. The study therefore recommends that Pepsi cola brand producers should concentrate on brand loyalty and perceived quality. Students have high brand loyalty towards a brand if they are satisfied with the product delivered by it.

Key words: Brand Preference, Brand Equity, Brand Identity, Consumer, Soft drink



1.1. Background of the Study

In our modern world, living pattern and life style of the people have been changed a lot. Soft drinks are common preference among all the individuals with the changing life style and income levels, people are shifting their consumption patterns. Market research is based on consumer’s buying preference towards soft drinks. Soft drink is an important product item in modern society both urban and rural and becoming more popular in the consumer world (Andersson, Arvidsson, and Lindström, 2006).

The world's soft drinks market is totally subject by just two players: - Coke & Pepsi. Coke, 'The genuine thing' other than a century old was born eleven years more on of its competitor & a century later on, still maintains the original lead. Pepsi, 'The challenger', even now poses as the hurried, young upstart & is struggle the cola was as the drink for the younger age group. The soft-drink industry comprises companies that manufacture nonalcoholic beverages and carbonated mineral waters or concentrates and syrups for the manufacture of carbonated beverages. Soft drink products have been well accepted by consumers and gradually overtaking hot drinks as the biggest beverage sector in the world (Paracha, Waqas, Khan, and Ahmad, 2012).

In the midst of the rapidly growing soft drink demand, the industry on the whole is encountering new opportunities and challenges. Changing consumer demands and preferences require new ways of maintaining current customers and attracting new ones. Between ever increasing competition, beverage companies must intensely court customers, offer high quality products, efficiently distribute them, ensure safety and keep prices low all while staying nimble enough to exploit new markets by launching new products. Recent developments in soft drink consumption and challenges in marketing have heightened the need for searching the consumers' needs and preferences (Belay, 2013).

At present soft drink market is one of the most competitive markets in the world. In which billions of Birr on advertisement and other promotion activities are being spent. In Ethiopia the soft drink industry is flourishing well with a wide range of brand comprising both popular international, national and regional branded soft drinks. The study on brand preference becomes necessary. The purchase decision largely depends upon Taste, Quality, Quantity, Price, Availability and the like. Due to globalization, there are many soft drink brands available in the market such as Coca- cola, Pepsi-cola, Red Bull, Ambo mineral water and etc. (Andersson, Arvidsson, and Lindström, 2006).

Soft Drinks Industry is one of the processing industries that play an important role in the economic development, especially for developing countries like Ethiopia. A soft drink is a cold beverage, usually sweet drink, which does not contain alcohol. In Ethiopia, soft drinks are known by the Amharic word "leslassa", meaning literally "smooth".

1.2. Statement of the problem

Soft drink is an important product item in the modern society. Due to the development of science and technology, many new brands of soft drink products flood the market every year. However, there are two soft drink brands are available in Ethiopia and consumers in Ethiopia switch over from one brand to the other (Aregawi, 2006).

Among all the soft drink brands customers have to judge the other factors such as price, quality, packaging, availability, variety and taste before making their buying decision. After satisfied with the above factors they have to select the right drinks. Today’s market is open market, consumer taste and preference is always changeable in condition, company’s strategy should be high (Belay, 2013).

Generating timely and appropriate information on the brand preference, brand equity and brand identity of soft drink consumers in the study area is important preconditions for any intervention schemes for soft drink product industries. However, there is a dearth of scientific research evidence in the concerned area to support the present brand preference, brand equity and brand identity of soft drink consumers. Therefore, this study was conducted to fill this gap and to add some drops of knowledge to the existing knowledge in the study area.

1.3. Objectives of the Study

1.3.1. General objective

The general objective of this study is to assess the consumers’ brand preference of soft drinks among Hawassa Tabor high school students in Hawassa City.

1.3.2. Specific objectives

1. To identify the more favorable types of soft drink brand in the eyes of students.
2. To compare the brand preferences of students based on their brand equity and brand identity dimensions.
3. To find out the relationship between socio demographic characteristics of students and their brand preference.

1.4. Research Questions

1. Which soft drink brand is more favorable in the eyes of the students?
2. What are the brand preferences of students based on brand equity and brand identity dimensions?
3. What are the relationship between socio demographic characteristics of students and their brand preference?

1.5. Significance of the Study

The objective of this study is to compare between Coca and Pepsi cola soft drinks on the basis of their brand components and how different components of brand equity and identity influence students in choosing a particular brand of soft drink. A good knowledge of students brand preference in soft drink would help in understanding how brand shape students buying decision and preferences.

Customer perception of any product is an important point to decide the success of an organization. The significance of this paper can provide a clear picture of the consumer’s attitude towards soft drinks of Coca Cola and Pepsi Products, factors that contributed in the formation of these attitudes the opportunities and challenges to the product with respect to understanding, improving and preserving its image.

The study will identify how soft drink producer could improve or maintain its customer’s attitudes and get the maximum out of it and could be useful to other business organizations according to their context.

Taking into account the shortage of clear document concerning consumer’s soft drink brand preference among students, the study will help to enhance the knowledge of marketing managers, scholars and researchers with regard to the concept of consumer perception, attitude and their importance for the success of similar business.

1.6. Scope of the study

The study focused on assessing the consumers’ brand preference of soft drinks. That mean to identify the more favorable types of soft drink brand in the eyes of students, to compare the brand preferences of students based on their brand equity and brand identity dimensions and to find out the relationship between socio demographic characteristics of students and their brand preference. This investigation is only concerned with Hawassa Tabor high school students. This is one of public school that are found in southern regional state and it is located in Sidama Zone specifically in Hawassa City which is found at a distance of 275 Km from Addis Ababa, the capital city of the country. The study is descriptive with quantitative approach. The time scope of the study is limited to the year 2016.

1.7. Limitations of the study

It is unthinkable that a research could be free from any challenges through over the study periods which have possibility of bringing adverse effects on the results of the study. To mention some of the expected limitation of the study: misunderstanding of students about the purpose of this study. In addition, some students were busy and have little time to respond to the questions. The research is purely quantitative; it may not give an opportunity to listen respondents’ reason in person. Nonetheless the researcher took the following measures to minimize the effect of these limitations on the quality of the research. First, probability sampling techniques were designed and more sample size was taken from the targeted population to have representative sample. Second, the researcher arranges programs together with school teachers.

1.8. Organization of the study

The researcher has designed his studies as follows:-

Chapter One: Introduction of the Study: An introductory chapter where back ground of the study, statement of the problem, objective of the study, scope of the study, significance of the study, and limitation of the study are presented.

Chapter Two: Review of Literature: This chapter deals with the review of literatures on brand preference of soft drinks. All theories tending to support this study are incorporated in the review of literature.

Chapter Three: Research Methodology: On this part of the paper, research design, descriptive of the research area, sample size, sampling design, data type and sources of data, method of data analysis and interpretation, questionaries’ design/Measurement are presented.

Chapter Four: Result and Discussion: This chapter investigates the analysis and results of the study.

Chapter Five: Conclusion and Recommendation: This part of the thesis is used to forward the summary of findings, conclusions and recommendations.



2.1. The Concepts and Definitions of Brand

According to Kapferer (2004), brand as a name that influences buyers. He further notes that brand command people’s attention because they have element of saliency, differentiability, intensity and trust. Successful brand conveys a consistent message and create an emotional bond with consumers.

“ A brand is the total emotional experience a customer has with your company and its product or service” the author describes the brand to be an experience that’s implanted in the mind of customers that have experienced an interaction with a company or that got in contact with the company’s staff, product or service. In case the customer experience is different from what the company illustrate its brand. In that case the company is losing. However other parts of the brand such as “logos, advertising campaigns, mission statements, colors holds also great importance but they should always come after the customer, it is vital to put the customer and the company’s relationship with him/her in the first position and think how to develop this relationship and then as a second stage a company can use all important tools like logo’s, color’s and advertising campaigns (Hammond, 2008, p.14).

A brand has also been defined as “a product offer from a known source” (Kotler, 2000). Keller (2003) defines a brand as a product that adds other dimensions that differentiate it from other products and services designed to satisfy the same need. A brand is also an intangible but critical component of what a firm means; a set of promises (Davis, 2002). Finally, Bedbury and Fenichell (2002) say that “a brand is, if it is something, the result of a synaptic process in the brain. They are sponges for content, images, feelings, sensations, experiences, and psychological concepts inside consumers’ minds. There are so many definitions that have been developed for a “brand”, based upon consumer perceptions of brands due to their own feelings, associations, and relationships with them.

2.2. Consumer Brand Preferences

The consumer market amounts to a total of 6.3 billion people, and thus there is great demand for an enormous variety of goods and services, especially as consumers differ from one another in that of age, gender, income, education level, and tastes. Moreover, the relationships between different consumers, as well as their contact with other elements of the world surroundings, affect their choice of products, services, and companies (Kotler and Keller, 2006).

Brand Preference refers fundamental step in understanding consumer choices. A deeper understanding of such preference dynamics can help marketing manager’s better design marketing program and build a long term relationship with consumers. Despite the existence of some investigation how brand preference is built and changed, most of them focus on examine factors from consumer behavior perspective or advertising perspective (Schiffman and Kanuk, 2000).

The reason why consumers buy what they do is often deeply rooted in their minds, consequently consumers do not truly know what affects their purchases as “ninety-five percent of the thought, emotion, and learning [that drive our purchases] occur in the unconscious mind- that is without our awareness” (Kotler and Armstrong, 2005).

Consumers’ purchase process is affected by a number of different factors, some of which marketers cannot control, such as cultural, social, personal, and psychological factors. However, brand preference in terms of brand equity measures such as loyalty, awareness, association, perceived quality and brand identity measures such as personality, physique, relationship, culture were discussed were reviewed as follows.

2.3. Brand Equity

As pointed out by Aaker (1991, p.24) brand equity is among the few strategic assets available to the companies that provide a long-lasting competitive advantage to the company. Brand equity constitutes the assets and the liabilities that is link to a particular brand, like name, or logo. It comprises of brand loyalty, brand awareness, brand association, brand assets, and perceived quality. Creating strong, favorable and unique brand association is a real challenge for markets but it is essential in building strong brand. Strong brands typically have firmly established strong, favorable and unique brand association with customer (Aaker, 1991, p.25).

Aaker (1996, p.8) acknowledge that brand equity is a set of asset and legal responsibility connected to the brand’s name and figure that add to (or take away from) the value presented by the product or service to a company and/or that company’s customers, according to Aaker (1996, p.16) the main assets are grouped in the followings:

- Brand name awareness
- Brand Loyalty
- Perceived quality
- Brand associations

Aaker (1996, p.8) demonstrate in the below figure how brand equity generates value, through investment these assets can be created and improved. Each one of the five brand equity assets produces value in a diverse way; seventeen of these values are listed in the figure below. It is essential to be aware of the ways in which well-built brands forms value, in order to take important decisions about brand building activities.

Brand equity forms value for both the customer and the firm; however the brand equity should be expressed and linked by the name and symbol of the brand.

Aaker (1991, p.15) define a brand as a distinguishing name or symbol intended to identify the goods or service of either one seller or group of seller and to differentiate those goods or service of product and protect both the customer and the producer and product from competitors.

According to Keller (2008), strong brand can command price premiums; on the other hand strong brand cannot command an excessive price premium. Keller (1998, p.64) view on brand equity suggest that brand equity occurs when consumer response to marketing activity differs when consumer know the brand from what they do not.

Mallik (2009, p.31) explain that “brand equity is the value built-up in a brand” it can be calculated by comparing the anticipated potential or future income from the branded product or service with the anticipated or future income from non-branded similar product or service. Brand equity can be positive or negative, positive brand equity is often when a company exceeds their costumer expectation. It formed by past efficient and successful advertising. Negative brand equity is created by usually bad management. Positive brand strategy usually is a strong barrier to entry for potential rival and competitor.

Aaker (1991, p.15.) notes that brand can be nurtured and maintained through advertisement. Kapferer (2004, p.95) comment that the more a brand is known, the more its advertisement are noticed and remembered. Brand equity can provide the company with a high potential of future growth.

Aaker (1991, p.23) Acknowledge that consumers are will to pay high price companies with brand. Brand equity such as brand awareness, image, trust, and reputation are painstakingly built up over many years. Kapferer (2004, p.95) also mention that branding requires a long term corporate involvement, a high level of resource and skills. Brand equity incorporates several advantages like, it ability to attract new customers, resist competitive activity, lower advertising /sale ratios, brand loyalty, trade leverage and premium pricing (Keller 1998, p.53).

Keller (1998, p.7) Brand allows consumers to lower search costs for product both internally (regarding how much they have to think) and externally (in terms of how much they have to search around).It also help consumers make assumption of the product base brand quality and characteristics, thereby forming a reasonable expectation about what they do not know about the brand. It conveys a certain level of quality so that satisfied buyer can chose the product again.

Brand equities is said to be the most intangible assets that a company possess that is not reflected in the balance sheet, given that it provide competitive advantage for the company. Having a brand guarantees future earnings. Despite the fact that the corporate balance sheet display only assets of the company without mentions of the brand equity does not change the fact that it is precious assets to the company. While a competitor can copy a company’s product but its brand is unique.

2.3.1. Brand Loyalty

According to Keller (1998, p.54) brand loyalty is often ascribe to a behavioral sense through the number of repeat purchases, it entails consumer sticking with the brand and reject the overture of competitors. Strong brand equity holds consumer loyalty because consumer values the brand on the basis of what it is and what it represents. Brand loyalty is attributed to brand image and brand equity. It is also worth noting that brand commitment is the substantial expression of brand preference and brand loyalty.

Aaker (1991,p.39) pointed out that brand loyalty ascertains that extent the customer is attached to a brand and speculate how likely the customer will switch to another brand, when the brand changes either in product price or features.

Brand loyalty of current customers represents a strategic assets, and when properly managed would provide the company with several values. Brand loyalty it associated more closely to the use experience, in the sense that it does not exist without prior purchase and use experience (Aaker, 1991, p.41).

There are five different level of brand loyalty; each level poses different challenges and different to companies. The bottom loyalty level is the nonlocal buyers who have no preference for any brand. These groups of buyers place no value on the brand name and consider any brand as adequate. Brand does not play any role in the buyer purchase decision (Aaker, 1991, p.40).

The second level includes buyers who are satisfied with pleased with the product. These groups of buyer are vulnerable to a competitor who offers them a visible benefit to switch; hence they are classified as habitual buyers (Aaker, 1991, p.40)

The third levels are class of buyers who are please with the brand, these buyer might switch brand if competitors overcome the switching cost by inducing the buyer to switch to their brand (Aaker, 1991, p.40).

The fourth levels of brand loyalty are the category of loyal customer that really likes the brand. Their preference for the brand is on the symbol, previous experiences or the logo of the company (Aaker, 1991). The top levels are category of buyers who are committed to the brand, because of the brand functionality or because the brand is the expression of whom they are (Aaker, 1991, p.40).

2.3.2. Brand Awareness

Aaker (1996, p.10) explains that awareness is the power and force of the brand’s presence in the consumer’s mind, consumer, and this awareness is measured by how consumer keeps in mind the brand and how they recall it, acknowledgment measures such as “Have you been exposed to the brand before?, What brands of the product class can you recall?, “top of mind” (the first brand recalled) or (the only brand recalled).

Aaker (1996, p.10) clarifies that Recognition of a brand is based on the knowledge added from earlier exposure, it is not essential to remember where the brand was seen or why it is diverse from other brands neither it needs to be remembered the class of the brand, remembering the earlier exposure is the most important thing. Economist explains that when costumers recall being exposed to a brand this will be transmitted in their brain to be a “signal” of a good brand because they believe that companies don’t pay out large amount of money on bad product.

Aaker (1996, p.15) shows that the crucial part of brand awareness is the brand name dominance because when a recall test is made for customers, it illustrated that customers can remember one brand only, this becomes a risky factor if the brand name is not distinguished and is a common tag for products that are legally protected. This is why companies should start protecting at the beginning of its existence. When choosing a brand name firms should beware of descriptive names, such as Windows because this makes it harder for customers to differentiate from the generic product.

Due to the fact that customers are being exposed to more and more brands and messages, creating brand awareness is a big challenge illuminate that there is two way to create the awareness (Aaker, 1996, p.16):

First is by creating “healthy awareness levels” this wide trade base is typically an asset, but it is expensive and for small unit sales and for life measured in years and not in decades this can be impossible. This is why huge companies have an advantage in building the awareness. Multiple businesses sustain and back up the brand name.

Second in future companies will experts in working outer the usual media channels, by using occasion promotions, sponsorships, advertising and sampling, these companies will be the most successful companies in creating the brand awareness.

According to Aaker (1996, p.16) however, companies should always put in mind while managing the brand that it is necessary that brands are managed not for “general awareness” but for “strategic awareness” it is important that customers recall this brand for good reasons and not for bad ones.

2.3.3 Brand Association

Brand associations are representations of what a brand means for a consumer and are “anything linked in memory to a brand” (Aaker, 1991). Any contact or experience a consumer has with a brand can create, change, or reinforce certain favorable or unfavorable associations (Keller, 2003), in order for associations to have a positive effect on brand equity, they must be unique, strong, and favorable. Aaker (1991) defines brand associations as “anything linked in memory to a brand. Brand associations are believed to contain the meaning of the brand for consumers (Keller, 1993).

Aaker (1991) asserted that brand association is “the category of brand’s implication which includes anything linked in memory to a brand”. According to Keller (1998), it is set of information nodes attached with the brand in mind of consumers, which can be classified as attributes, attitudes & benefits related to the brand. It is helpful to customers to retrieve information about some brands from their memory. When they are confronted with the brand, the associated benefits or experience or features will be reflected in customer’s mind.

Laptop firms need to increase brand awareness to increase the familiarity of brands in the mind of consumers; high level of brand association can moderately work to increase buying behavior of Chinese customers (Liu Z, 2007). Brand association is the informational nodes linked to the brand in memory and the meaning of the brand for consumers (Henry, 2004). CBBE is measured from the consumer perspective based on consumers’ memory based brand associations (Chen, 2010). It indicates that in the consumer’s memory, for all associate with the brand, if these associations can be assembled all together with some signification, then the impression on this signification would become a brand image (Aaker, 1996).

Strong and favorable brand associations contribute toward brand equity. Aaker (1991, quoted in (Atilgan, 2005)) suggests that brand association creates value for customers as well as marketers because brand associations help consumer process information, differentiate an offering, and provide reason to buy and a basis for extension.

2.3.4 Perceived Quality

Perceived quality of brand is defined as the consumer’s judgment about a brand’s overall excellence or superiority with respect to its intended purpose, relative to alternatives (Zeithaml, 1988; Aaker and Jacobson, 1994). Perceived quality is believed to be a type of association warranting elevation to the status of a separate dimension of a brand’s equity (Pappu and Quester, 2006). The customers will have a subjective satisfaction at the comprehensive quality or recognition level against the product or service offering under such brand which is perceived quality (Hu et al., 2010).

According to Aaker perceived quality as “the customer’s perception of overall quality or superiority of a product or service with respect to the intended purpose, relative to alternatives”. Consumers always want to spend less time & efforts in selection of brand, so they mostly rely on feelings about the characteristics of products of particular brands (Aakers, 1991, p 7). Here their perception is driving the decision making process. It also depends on the willingness of the customer for purchase decision. Tsai (2004) Suggests those brands with lower emotional ratings may redirect marketing resources and efforts to increase consumer’s emotional perceptions, which will give higher satisfaction.

Perceived quality is related to a consumer’s judgment of a product or brand’s overall superiority or excellence (Zeithaml, 1988). Therefore, firms have to genuinely increase the real quality of their brands and then communicate this quality through their marketing actions in order to affect perceived quality in a positive manner. High perceived quality allows for consumers to be convinced about buying the brand; for differentiation of the brand from competition; and for the firm to charge a premium price and then extend the brand equity (Aaker, 1991).

2.3.5. Satisfaction

Customers are always aiming to get maximum satisfaction from the products or services that they buy. Willing in today’s market place entails the need to build customer relationship and not just building the products building customer relationship means delivering superior value over competitors to the target customers. Whether an organization provides quality services or not will depend on the customers’ feedback on the satisfaction they get from consuming the products, since higher levels of quality lead to higher levels of customer satisfaction (Kotler and Keller, 2009).

2.3.5. Price

As quoted by Kotler and Armstrong (2008), described price as the amount of money charged for a product or service or the total values that consumers exchange for the benefits of having or using the product or service prices should be set in relation to specific pricing objectives. Decisions concerning the pricing of a product or services include payments, terms, discounts, contract and pricing. Prices have to reflect the costs of production and marketing as well as targeted profit margins. A variety of approaches may be taken to pricing including cost based, demand based, competitor based and market based. Price is a key element of the marketing mix because it represents on a unit basis what the company receives for the product or service which is being marketed (David, 2001).

2.4. Brand Identity

Kapferer (2004, p.107) postulated the brand Identity Prism. It is a hexagonal prism which comprises of six facets of brand identity namely Physique, personality, relationship, reflection, and self-image. The brand identity prism illustrates that these facets are all interrelated and form a well-structured entity. The significance of the brand prism is to help in understanding the essence of brand and retailer identities. Kapferer (2004, p.107) further notes that brand identity reflects the strength of the brand. The essence of brand identity is that they communicate. Brand is a physique. A physique deal with the physical aspect of the brand .It is a combination of the prominent objective features which comes to mind when the brands is mentioned. It represents the backbone and its tangible added value. The physical aspect of the brand is one of the things that define a brand. It also consists of brand´s photo type (Kapferer, 2004, p.108).

Brand is a culture. In the sense that it has its own separate culture which is derive from products. A product embodies not only culture but also is a means of communication. Brand conveys culture and is driven by culture in the sense that they convey the culture of the society they originate from. Country of origin is the reservoirs for brands. One vital role of culture is that it link brand to the firm and play essential role in differentiating brand (Kapferer, 2004, p.108)

Brand is a relationship: This facet of brand, has implication for the way the brand act ,delivers service ,or relate to its customer .Brand are sometimes the crux of transactions and exchange between people. Brand relate its name to a theme .E.g. Like Nike beer a Greek name that relate it to specific cultural values, to the Olympic games (Kapferer, 2004, p. 107).

Brand has a personality. People usually ascribe brand with certain personality. The way in which it speaks of its product or service shows what kind of person it would be if it were human. It also pointed out that brand personality is described and measured by those human personality traits that are relevant for brands (Kapferer, 2004, p. 108).

Brand is a customer reflection. Brand reflects the individual who use it. A brand always tends to reflect or build an image of the buyer or the user which it seems to be addressing. It does reflect the customer as he or she wishes to be seen as a result of using a brand. Consumers use brand to build their own identity. Customers want to be seen in certain way as a result of purchasing a given product (Kapferer, 2004, p. 110).

Everything a brand does is communication. “It is impossible not to communicate.” The way the packs are designed, the words used, the way the phones are answered (or not), and the products the name is put to, the shops in which these are sold: all these can say powerful things about a brand. Clifton, Simmons, Ahmad, & Allen (2003, p. 127) disclosed that brand speaks to our self-image. This facet of brand identity deals with our relationship the inner self-image that is built through our attitude towards certain brand (Kapferer, 2004, p. 111).

2.4.1 Brand Personalities

Aaker (1996, p. 141) defines the brand personalities to be “the set of human characteristics associated with a given brand”. Thus it includes such characteristic as gender, age, and socioeconomic class, as well as such classic human personality traits as warmth, concern, and sentimentality. Brand personalities are similar to human’s personalities; they are different and permanent or long lasting. Different responses were collected from qualitative and quantitative research studies on brand personalities based on the fact that it was collected from two groups first is users group and second is the nonuser group. People frequently have the habit to interact with brands in the same way as this brand was human, actions such as given nick names ad thinking that their possession should rest for a while to feel better.

As mentioned before by Aaker (1996, p. 142) brand personalities can be described by the following:

- Described by demographics such as: age, gender, social class and race.
- Described by life style such as: activities, interests and opinions.
- Described by human personality traits such as: extroversion, agreeableness and dependability.

Further to Aaker (1996, p. 143) Studies that tests the brand personality scale (BPS), has noticed that five personality factors were used while making a study to more than 1000 U.S. respondents, they were asked about the personality of 60 famous brands which have different characteristics. These five personality factors which were later called “The Big Five” appeared even after the respondents were divided into groups on age base and gender base. The Big Five as illustrated in figure 6, it shows personalities of brands, these Big Fives are separated to aspects in order to provide quality and vivid insight connected to the nature and structure of the factor.

2.4.2. Culture

Culture is the fundamental determinant of a person’s wants and behavior for example; growing child acquires a set of values, perceptions, preferences, and behavior through his or her family and other key institutions. Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups and geographic regions (Kotler and Keller, 2006, p.164).

A consumer behavior is influenced by such social factors as reference groups, family, and social roles and statuses. Reference group is a person’s reference group consists of the entire groups that have a direct or indirect influence on individual attitudes or behavior (Kilter and Keller, 2006, p.167). There are 2 types of group. Groups having a direct influence on a person are family, friends’ neighbors and co-workers, these peoples called a primary group. Another group that peoples also belong to but tend to be more formal and require less continuous interaction is secondary groups such as religious, professional and trade-union groups (Hawkins, Best, and Coney, 1998, p.215).


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Consumers’ Brand Preference of Soft Drinks. A Comparative Analysis of Pepsi Cola and Coca-Cola Products
Marketing Management
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The author of this text is not a native English speaker. Please excuse any grammatical errors and other inconsistencies.
consumers’, brand, preference, soft, drinks, comparative, analysis, pepsi, cola, coca-cola, products
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ABEBAW GEBREHANNA HALABO (Author), 2017, Consumers’ Brand Preference of Soft Drinks. A Comparative Analysis of Pepsi Cola and Coca-Cola Products, Munich, GRIN Verlag,


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