Abstract

The general objective of the study is to determine the effect of branding in the Cameroonian telecommunication companies on consumers’ buying behavior within the Buea Municipality Cameroon. The study adopted a quantitative researcher design. Data for the study were gathered from both primary and secondary sources. The study employed convenience sampling technique to select 200 respondents to administer the questionnaires. The data were analyzed using SPSS and Microsoft Excel. The study discovered that an unprecedented majority of the respondents had adequate knowledge on these branding strategies. Although some respondents acknowledged that branding is about logo, service quality, pricing, coverage image, signage and slogan. A whopping majority sees this as combination of all the above. The study had also discovered that branding has a significant association with branding and customer buying behavior. The study revealed that brand loyalty has positive and significant association with customer buying behavior. Brand awareness also has positive and significant association with customer buying behavior. Finally, perceived quality and brand association has positive and significant association with customer buying behavior. The study is therefore recommending that telecommunications conduct regular scientific studies to identify measure to improve and sustain their brand. These could be customer survey on the particular brand or brand performance assessment. Moreover, customer satisfaction is very vita in to attract and retain customers especially in the telephony business environment where competitions among firms are very intensive and unabated. Customer services such as complains handling, waiting time and customer relationship management must be given a maximum attention.

CHAPTER ONE

INTRODUCTION

1.0 Background of The Study

In recent years and specifically in this twenty first century age represents key changes in the marketing strategies employed by organizations and institutions in order to help them be very competitive and be sustainable in the turbulent, unpredictable and in the ever changing market that they find themselves.

The survival or success of companies is now dependent on the amount of information that is carefully gathered by the former with regards to the purchasing habits displayed by consumers. In order to survive in the market, companies are keenly interested in developing strong brands that leads to long term and customer relationships (Hess, Story & Danes, 2011).

The Telecommunication environment has really become competitive lately regarding its growth in this 21st century Companies inject heavy resources and time into the study of behavioral and sociological factors in order to gain much insight and to understand consumer purchasing patterns. Thus brands represent key assets to companies (Rindell, 2008).

Branding has emerged as part and parcel of modern day marketing strategies and now considered a key organizational asset (Kotler, 2000).

Organizations shifting from a product or market point of view to consumer or customer focus reflect the evolution of marketing. Similarly, Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan. Tu et al. (2012) indicated that organizational branding directly affects customer satisfaction. This finding was affirmed by the results of Johnson, Andreessen, Lervik & Cha (2001); and Davies et al. (2003).

They further resort to underpinning the relationship that exist between consumers spending and the key variables involved in consumer preferences in terms of attitudes, cognition, perception and learning. (Von Moos, 2005). They want to know who their customers are, what they think and how they feel, and how they buy a specific brand instead of others.

Many companies go to the extent of employing a separate brands manager who sees to the management of the brand.  That is serving as a link between the company’s brand and consumers.

In today’s turbulent market place where consumers have an enormous amount of information with regards to products and services at their disposal, yelling louder is not a solution to making you heard or recognized in the market place. Instead, creating an outstanding brand that appeal to consumers (Ahuvia, 2005)

In recent years, the so much competition in Cameroons telecommunication industry has called for telecommunication such as Camtel, MTN, Nextel and Orange firms to improve their corporate performance not only in terms of tele-density (The number of subscribers out of every 100 people), but also engage in intensive marketing activities such as branding, promotion, advertisements.

Thus, the economic survival of the telecommunication industry dependent on consumers’ behavior. The fact that consumers maintain long term relationships with telecommunication companies in the Ghanaian telecommunication industry constitutes a sign of long term economic survival of the industry. An interesting philosophical issue may arise in respect of brand-driven satisfaction and long term survival of companies within the telecommunication industry.

 

1.2 Problem Statement

Though many companies are able to have better products and yet are sometimes unable to compete in the market due to poor branding activities. Thus strong brands have the potential to generate long term and loyal customers, which would eventually lead to an increase in sales in the future. (Hess, Story & Danes, 20011).  In this regard, after achieving success through corporate branding, maintaining and managing the brands reputation becomes integral to be the market leader.  In order to achieve this feat, they need to understand consumers’ buying behavior in order to help them evaluate the service being offered.  Telecommunication companies as a service provider needs to provide services that really satisfies consumers’ expectations in ensuring that the company survives economically. Therefore, these companies like MTN, Orange, Nextel etc. must employ very proactive branding strategies than they currently possessed.  A good portion of the research on brand is devoted to building better understanding in the area of brand choice; brand switching, brand loyalty and brand extension (Moore et.al 2008). There is an association between brand loyalty and continues demand. This is because a satisfied customer buys more and buys longer (Schultz, 2005).  The extent to which product branding affects consumers’ decision-making remains a critical area that needs a thorough investigation. It is for this reason why this study is undertaken to determine the effect of branding on consumers’ behavior in the Cameroon telecommunication companies. ”

 

1.3 Research Question

The main research question is how does branding affect consumers buying behavior in the Telecommunication industry in Cameroon? Specific research includes:

1. What is customer’s perception of branding in the telecommunication industry in Cameroon?
2. How does brand name explain customers buying behavior in the telecommunication industry in Cameroon?

 

1.4 Objectives of Study

1.4.1 Main Objective:

The main objective of the research is to analysis effect of branding in the Cameroon telecommunication companies on consumer buying behavior.

1.4.2 Specific Objective:

1. To investigate customer’s views on branding in telecommunication companies in Cameroon.
2. To evaluate the impact of a brand name on a consumer decision making regarding purchase of a product.

Insert Content