An Empirical Study on Brand Awareness

and the Factors Influencing Brand Loyalty

Towards Hair Shampoos
Lalit Mohan Kathuria* and Bhupinder Jit**
Branding is one of the most important factors influencing a products success or failure in the
market and it can have a significant influence on the perception of the general public towards the
company owning the brand. Brand loyalty not only represents the brand of the company but also
the company itself. This study has been conducted to know the brand awareness and brand loyalty
of consumers towards hair shampoos. The study highlights that the major sources of awareness for
hair shampoos are television advertisements, and friends and relatives. The study further highlights
that the important factors influencing brand loyalty towards hair shampoos are product quality
(dandruff removal, shine and silkiness, and ingredients), availability of the preferred brand and
brand image.

Introduction
Brands play an important role in the purchasing decision of a product. A brand is a name,
term, sign, symbol, design or a combination of them, intended to identify the goods and
services of one seller or a group of sellers and to differentiate them from those of its
competitors. A brand is thus a product or service that adds dimensions and differentiates
it in some way from other products or services designed to satisfy the same need (Kotler,
2006). The final consumer receives certain benefits with the consumption of those
products or services. The customers subjective and intangible assessment of brand, above
and beyond its objectively perceived value, is known as Brand Equity. The main subdrivers of brand equity are customer brand awareness, customer attitude towards brand and
customer perception towards brand ethics (Keller, 2007).
More attention is being paid to measuring and managing brands as assets, as brands
represent a business, organization, product, service or celebrity. Building a strong brand
requires putting customers and their needs at the forefront of every organizational
decision. Brands help in building emotional relationships with customers, which in turn
brings tangible returns for the organization in terms of customer loyalty.
Brands create added value for both firms and customers. They play a key role in
enhancing the value of products and protecting the product from being imitated by
competitors. In fact, a product is something that is made in a factory; a brand is something
that is bought by a customer. A product can be copied by a competitor; a brand is unique.
* Associate Professor, Department of Business Management, Punjab Agricultural University, Ludhiana, India.
E-mail: lalit_kathuria@yahoo.com
* * Deputy Manager (Marketing), Abhishek Industries Limited, Ludhiana, India. E-mail: bhupingarg@gmail.com
2009 IUP. All Rights Reserved.
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A product can be quickly outdated; a successful brand is timeless (Aaker, 1991). So,
a strong brand is counted as a valuable company asset. For example, the intangible value
of Coca-Cola is estimated at more than $100 bn, compared to about $10 bn for the
tangible value of books. Therefore, the study of the brand and its parameters is one of the
most interesting topics to both academic researchers and practitioners (Wood, 2000).
After creating a brand, it is even more important to maintain that brand. The success
of a firm depends largely on its capability to attract consumers towards its brands.
In particular, it is critical for the survival of a company to retain its current consumers
and to make them loyal to the brand. Firms selling brands with a high rate of loyal
consumers have a competitive advantage over other firms. Brand loyal consumers reduce
the marketing costs of the firm, as the cost of attracting a new customer has been found
to be about six times higher than the costs of retaining an old one (Rosenberg and Czepiel,
1983). Moreover, brand loyal consumers are willing to pay higher prices and are less price
sensitive. Brand loyalty also provides the firm with trade leverage and valuable time to
respond to competitive moves (Aaker, 1991). In sum, loyalty to the firms brands
represents a strategic asset which has been identified as a major source of the brand equity.
Brand awareness is the consumers ability to identify the brand and can be measured
with the help of brand recall and brand recognition. Brand recall is the ability of
consumers to retrieve the brand from memory, when the product category, the needs
fulfilled by the category, or some other type of probe, is given as a cue. Brand recognition
reflects the ability of consumers to confirm prior exposure to the brand (Keller, 2007).
The term Brand Loyalty is defined as the biased behavioral response expressed over
time by some decision-making unit with respect to one or more alternative brands out of
a set of such brands, and is a function of psychological decision-making and evaluative
processes. Brand loyalty refers to the degree to which a consumer consistently purchases
the same brand within a product class. It is the consumers conscious or unconscious
decision, expressed through intention or behavior, to repurchase a brand continually.
It occurs because the consumer perceives that the brand offers the right product features,
image, or level of quality at the right price. There is a strong relationship between
consumers and brands where consumers show an active preference for one brand over all
others and will continue to buy that brand over time, even when they may also buy other
brands in the same category from time to time to a greater or lesser degree. The more a
customer buys, the more likely he or she would buy from that company again. The more
a customer buys from the trusted company, the less likely he or she is to turn to another
supplier. Also, the regular customer is more likely to switch to a premium product or
service (Jacoby and Kyner, 1973).
Three measures for brand loyalty have been used by most of the researchers in the
marketing literature, namely, 1) Proportion of purchase method; 2) Sequence of purchase
measure; and 3) The probability of purchase measure. In the case of proportion of purchase
measure, loyalty is defined in terms of the percentage of total purchases devoted to the
single most frequently purchased brand. According to sequence of purchase measure,
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brand loyalty can be defined as the tendency for a consumer to buy a particular brand
consistently. Under the probability of purchase measure, loyalty can be defined as the
relative frequency of purchases devoted to a specific brand during a set of previous
purchases (Singh, 1980).
The present study uses the sequence of purchase measure to study the brand loyalty,
i.e., an individuals brand loyalty is described as the consistency in purchasing a single
brand within a given product class. For the brand in a product class, the consumer
purchasing the same brand for more than one year will be considered brand loyal, and also
those consumers using a particular brand for more than six months and would continue
using that brand in future are considered brand loyal. This measure has been selected as
it suited the scope and objective of the study.
The product selected for the study in personal care products is hair shampoo as it is
widely available and commonly used in households. This study is being carried out to know
the awareness among consumers about brands of hair shampoos and the various factors
that influence the brand loyalty to hair shampoos.

Objectives of the Study

The study has been taken up with the following specific objectives:
To study the brand awareness among consumers regarding hair shampoos; and
To identify the factors influencing the brand loyalty towards hair shampoos.

Review of Literature
This section provides a brief review of the research work related to brand awareness and
various aspects of brand loyalty.
Tucker (1964) examined the growth of brand loyalty in a setting where there was no
prior consumer knowledge about any of the available brands. Search behavior precedes the
development of brand loyalty, which grows to measurable strength despite the virtual
identity of the available brands, suggesting that some consumers are prone to brand-loyal
behavior. Jacoby and Kyner (1973) distinguished brand loyalty first from simple repeat
purchasing behavior and then conceptually defined it in terms of six necessary and
collectively sufficient conditions. An experiment designed to test this conceptualization
provided strong empirical support for the distinction as conceptualized. Raj (1985)
investigated the relationship between a brands share of users and its loyal franchise. Based
on data on consumer purchase habits, covering 1,000 brands in 86 product classes, it was
found that brands with a larger share of users have proportionately larger fractions of loyal
buyers. Hoyer and Brown (1990) examined two aspects of brand loyaltypurchase loyalty
and attitudinal loyaltyas linking variables in the chain of effects from brand trust and
brand affect to brand performance (market share and relative price). The results indicated
that when the product- and brand-level variables were controlled for, brand trust and
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brand affect combine to determine purchase loyalty and attitudinal loyalty. Purchase
loyalty, in turn, leads to greater market share, and attitudinal loyalty leads to a higher
relative price for the brand. They found that brand awareness was a dominant choice
heuristic among awareness-group subjects. Building brand awareness is a viable strategy for
advertising aimed at increasing brand-choice probabilities. Raju et al. (1990) analyzed the
role played by brand loyalty in determining the optimal price promotional strategies used
by firms in a competitive setting. The analysis suggested that a brands likelihood of using
price promotions increases with an increase in the number of competing brands in a
product category. The results suggested that the weaker brand gains more from price
promotions. Krishnamurthi and Raj (1991) explored the relationship between consumer
brand preference or loyalty and price elasticity in purchase behavior. However, this
direction is expected to be reversed in the quantity decision, with loyal consumers
expected to be more price sensitive than non-loyal customers. The authors found that
loyal customers were less price sensitive than non-loyal ones in the choice decision,
but more price sensitive in the quantity decision. Laurent et al. (1995) identified three
classical measures of brand awarenessaided, spontaneous, and top-of-mind. The
relationships between these measures, across a set of brands in the same product category,
were close, but highly nonlinear. Papatla and Krishnamurthi (1996) proposed a brand
choice model that provides an estimate of the dynamic effects of promotions on loyalty
to the brand and customers sensitivity to the price of the brand, and measures whether
promotional purchases reinforce or reduce subsequent response to similar promotions.
The results indicated that increased purchases using coupons erode brand loyalty and
increase price sensitivity. Lau and Lee (1999) discussed about the importance of brands
in the consumer market. The brands are the interface between consumers and the
company, and consumers may develop loyalty to brands. The study proposed that trust in
a brand is important and is a key factor in the development of brand loyalty. Knox and
Walker (2001) developed a measure in which both brand commitment and brand support
were found to be necessary and sufficient conditions for loyalty to exist. Based on this
measure, four consumer purchasing styles were identified and characterized as loyals,
habituals, variety seekers and switchers. Lau et al. (2006) conducted a study on brand
loyalty with a sample of 280 students, aged from 18 to 24 years. The study explored the
brand loyalty behavior in sportswear and examined key brand loyalty factors: brand name,
product quality, price, style, store environment, promotion and service quality. The
consumers were classified into two categories by the degree of their brand loyalty:
hard-core brand loyal and brand switchers. The study concluded that brand name, style
and promotion are key brand factors which distinguish the two classes of loyal consumers.
The present study explores the brand awareness and factors influencing brand loyalty
towards hair shampoos in Ludhiana city.

Methodology
For the study, a sample of 90 respondents was selected and 30 respondents each from three
different residential localities in Ludhiana city. Judgmental sampling was used to select the
An Empirical Study on Brand Awareness and the Factors Influencing Brand Loyalty
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localities. These localities were selected on the basis of the plot size of respondents.
Further, convenience sampling technique was used to contact the respondents.
Availability and willingness of the respondents to answer were the main reasons for using
convenience sampling.
The respondents were asked to rate the various factors according to the level of
importance they attach to each factor while purchasing a shampoo on a five point scale.
Mean score was calculated and if the mean score was more than three, it was concluded
that respondents by and large tend to hold that factor important. Further, the analysis was
done by categorizing the respondents by annual family income level. The three income
categories made are: annual family income less than Rs. 1.5 lakh per annum, between
Rs. 1.5 lakh and Rs. 3.5 lakh per annum, and more than Rs. 3.5 lakh per annum. These
categories were named I1, I2 and I3 respectively. Other statistical tools used for analysis
included z-test that helped in checking the significance of the importance of the factor
chosen. If the calculated value of z exceeds the table value at 5% level of significance,
we say the difference between X and is significant and hence the factor is important. Also,
ANOVA-one way classification technique was applied to check whether the respondents
from three defined income categories differed in their responses for the factors.

Findings of the Study

The following section reveals the findings of the study regarding top-of mind-recall brand,
source of information regarding hair shampoo brand, duration of use of the brand, and
usage pattern.

Top-of-Mind-Recall Brand
The respondents were asked which brand came to their mind when they listened to the
word hair shampoo. The question was asked to test the depth of brand recall, i.e., what
percentage of people recall a particular brand.
Table 1: Distribution of Respondents on the Basis of Top-of-Mind Recall
N = 90
Hair
Shampoos

Number of Respondents
I1

I2

I3

Total

Rank
8

Ayur

1
(3.8)

1
(3.1)

1
(3.1)

3
(3.3)

Clinic Plus

2
(7.7)

2
(6.3)

0
(0)

4
(4.4)

Clinic All Clear

5
(19.2)

3
(9.4)

4
(12.5)

12
(13.3)

Dove

1
(3.8)

2
(6.3)

4
(12.5)

7
(7.8)

0
(0)

1
(3.1)

2
(6.3)

3
(3.3)

Garnier

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Table 1 (Cont.)
N = 90
Number of Respondents

Hair
Shampoos

I1

I2

I3

Total

Rank

H&S

2
(7.7)

9
(28.1)

7
(21.9)

18
(20.0)

Pantene

1
(3.8)

3
(9.4)

2
(6.3)

6
(6.7)

Rejoice

0
(0)

1
(3.1)

1
(3.1)

2
(2.2)

Sunsilk

11
(42.3)

7
(21.9)

6
(18.8)

24
(26.7)

Vatika

2
(7.7)

1
(3.1)

2
(6.3)

5
(5.5)

Others*

1
(3.8)

2
(6.3)

3
(9.4)

6
(6.7)

Note: Figure in parenthesis shows percentage; *Others include Amway, Hello, Loreal, Nyle and Lux.

Table 1 shows that Sunsilk had the highest brand recall. 26.7% of the respondents
recalled the brand as top-of-mind brand. 20% respondents recalled Head & Shoulders as
top-of-mind brand. Clinic All Clear was next, with 13.3% respondents recalling it as topof-mind brand. On the basis of income, Sunsilk had the highest brand recall in income
level I1, whereas Head & Shoulders had the highest brand recall in I2 and I3.

Source of Information Regarding Hair Shampoo

The respondents were asked to rank the various sources of information as television ads,
Internet, newspapers, magazines, sign boards, company websites, friends, promotional
campaigns, point-of-purchase from where they got the knowledge of the brands they were
aware of.
Table 2: Sources of Information for Brand Awareness Regarding Hair Shampoo
N = 90
Source of Information

Overall Mean Score

Mean
Score (I1)

Mean
Score (I2)

Mean
Score (I3)

Television Ads

6.94

7.15

6.69

7.03

Friends/Relatives

6.16

7.04

6.06

5.53

Sign Boards

5.62

6.88

4.50

5.72

Newspapers

5.14

5.12

5.53

4.78

Magazines

5.11

3.58

5.66

5.81

Promotional Campaigns

4.48

5.58

4.13

3.94

Internet

4.34

3.08

4.75

4.97

Point-of-Purchase Display

4.13

3.92

4.31

4.13

Company Website

3.22

2.65

3.81

3.09

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Table 2 highlights the various sources of information used by respondents for getting
information about the brands.
Table 2 shows that the most important source of information was television ads while
friends and relatives are the second most important information source. The other
important sources were newspapers, magazines, promotional campaigns and point-ofpurchase display. It was also found that television ads were the main source of information
among the respondents from the three income categories.

Duration of Use
The operational definition of brand loyalty for the research was, When the respondent
had been using a particular brand of hair shampoo for one year or more, he was considered
brand loyal. Also, the respondents using a particular brand for more than six months and
would continue using that brand in future was termed as loyal consumers. The
respondents who were using a particular brand for less than six months were not
considered loyal. So, to study the various factors influencing the brand loyalty to hair
shampoos, responses of only those respondents were chosen which met the criterion of
the operational definition of brand loyalty for the study.
If any respondent was using more than one shampoo, the duration of the shampoo used
for more time was considered.
Table 3: Classification of Respondents on the Basis of Duration of Use
of a Particular Brand of Hair Shampoo
Duration of Use

I1

I2

5
(19.23)

3
(9.4)

2
(6.2)

10
(11.1)

6 months-1 year

2*
(7.7)

2*
(6.2)

3*
(9.4)

7
(7.8)

> 1 year

19*
(73)

27*
(84.4)

27*
(84.4)

73
(81.1)

26

32

32

90

0-6 months

Total

I3

Total

Note: Figure in parenthesis shows percentage; * Respondents will continue using the same shampoo in future.

Table 3 reveals that all the respondents using a particular shampoo for more than six
months will continue using the present brand in the future also. So the number of
respondents considered brand loyal for I1 category was 21(81%), 29(91%) for I2, and 30
(94%) for I3. So the number of respondents taken for further study in finding the factors
affecting brand loyalty was taken as 21, 29 and 30 for I1, I2 and I3 respectively, and the total
sample size for analyzing the factors influencing brand loyalty was taken as 80.

Brands Used by Respondents

Table 4 highlights the various brands used by the respondents.
Table 4 reveals that Sunsilk (19.4%), Head & Shoulders (17.3%) and Clinic All Clear
(15%) are the most used brands. The other brands being used are Pantene (8.2%) and Dove
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Table 4: Details of Brands Used by Respondents

Shampoo Name

I1

I2

I3

Total

Ayur

3
(3.1)

Clinic Plus

6
(6.1)

Clinic All Clear

15
(15.3)

Dove

8
(8.2)

Garnier

3
(3.1)

Head & Shoulders

17
(17.3)

Loreal

4
(4.1)

Pantene

8
(8.2)

Sunsilk

19
(19.4)

Vatika

6
(6.1)

Others

9
(9.2)

Total

26

33

39

98*

Note: Figure in parenthesis shows percentage; * Multiple Responses.

(8.2%). On the basis of income classification, respondents belonging to income categories

I2 and I3 preferred Head & Shoulders, while respondents from I1 category preferred Sunsilk.

Non-Availability of the Preferred Brand

The respondents were further questioned about their action in case of non-availability of
their preferred brand. The findings are given in Table 5.
Table 5 reveals that 73% would move to some other shop for purchasing the same
brand, while 14% would prefer to stay and wait for the brand at the same shop. Only 12%
respondents said that they would shift to another brand. Respondents from I1 category
made a major part of it.

Factors Influencing Brand Loyalty

Brand name, product quality, price, availability and promotion are the important factors
that influence the purchase decision regarding hair shampoos and hence the loyalty of the
consumers using that brand. The respondents were asked to rate the importance of each
factor on a 5-point scale as very important, important, indifferent, less important or not
An Empirical Study on Brand Awareness and the Factors Influencing Brand Loyalty
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Table 5: Responses in Case of Non-Availability of the Preferred Brand

Statements

I1

I2

I3

Total

6
(23)

3
(9.3)

2
(6.2)

11
(12.2)

Move to other shop for same brand

16
(61.5)

25
(78.1)

25
(78.1)

66
(73.3)

Wait till it arrives in shop

4
(15.4)

4
(12.5)

5
(15.6)

13
(14.4)

Buy another brand

Note: Figure in parenthesis shows percentage.

Table 6: Factors Influencing Brand Loyalty

Factors

(N = 80)

Mean

S.D.

z-Value

Dandruff Removal

4.13

0.74

14.58*

Shine and Silkiness

4.08

0.86

11.83*

Medicinal Properties

3.44

1.31

3.22*

Fragrance

3.32

1.09

2.77*

Chemicals Used

3.11

1.62

0.65

Ingredient

3.02

1.34

0.16

Environmental Degradation

2.69

1.42

2.08

Water Consumption

2.48

1.25

3.97

Color of Shampoo

2.22

0.96

7.71

Value for Money

3.68

0.78

8.16*

Change in Price

3.01

1.29

0.08

Brand Image

3.52

0.94

5.28*

Brand Personality

3.21

0.97

2.05*

Availability

3.71

0.97

6.92*

Special Offers

2.67

1.37

2.30

Advertisements

2.60

0.91

4.17

Retailers Recommendation

2.19

1.03

7.50

Pop Display

2.14

1.00

8.11

Celebrity Endorsement

2.00

0.98

9.65

Product Quality

Price

Brand Name

Promotion

Note: * Significant at 5%; 3, z-value (table) is 1.645.

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important. The overall mean score and mean score for different income categories were
calculated, and z-test was applied to check the significance of each factor.
The important factors affecting the brand loyalty of respondents are shown in Table 6.
The findings reveal that dandruff removal (4.13) is the most important factor in
product quality among the respondents. Shine and silkiness (4.08) has been found to be
the second most important factor among respondents. Medicinal properties (3.44),
fragrance (3.32) and chemicals used (3.11) are also considered important. Water
consumption by a shampoo, color of shampoo, environmental degradation caused by using
a shampoo are not given much importance by the respondents. Factors like availability
(3.71), value for money (3.68), brand
Table 7: Association of Responses Towards image (3.52) and brand personality (3.21)
Different Factors Among Respondents from have been found to be important by the
Different Income Categories
respondents. Also, brand name,
Factors
F-Value
availability, value for money, dandruff
removal, shine and silkiness, medicinal
Product Quality
properties and fragrance have been found
Ingredient
5.427582*
to be statistically significant.
Color

0.176512

Medicinal Properties

2.245538

Dandruff Removal

0.592147

Shine and Silkiness

0.074887

Water Consumption

0.379783

Environmental Degradation

0.854073

Chemicals Used

1.742675

Fragrance

0.91752

Price
Change in Price

4.95707*

Value for Money

0.05166

Brand Name
Brand Personality

0.832783

Brand Image

1.877688

Availability

2.888268

Promotions
Advertisements

4.592208*

Celebrity Endorsement

3.094491

Retailers Recommendation

2.502161

Pop Display

0.279677

Special Offers

2.387339

Note: F-Critical (77, 2)= 3.115366.

Association Among Different

Income Categories
To test whether the responses given by
three different respondent groups
segregated by income level differ
significantly or not, one-way ANOVA
test was applied on all factors and the
results are shown in Table 7.
The responses given by respondents
belonging to the three income categories
differ from each other in the case of three
factors, i.e., ingredient, advertisements
and price; the F-value (calculated) is
more than the table value. While for all
other factors, no such difference exists
among the responses drawn from the
respondents belonging to different income
categories.

Results and Discussion

It has been found that the brand awareness
among respondents is high in the case of
Sunsilk, Head & Shoulders and Clinic
All Clear. The major sources of awareness

An Empirical Study on Brand Awareness and the Factors Influencing Brand Loyalty
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are television advertisements, friends and relatives and sign boards. Magazines are
important information source for high income group people.
Sunsilk (19.4%), Head & Shoulders (17.3%) and Clinic All Clear (15.3%) are the
brands used mostly by the respondents. The brands next in usage are Pantene (8.2%) and
Dove (8.2%). Head & Shoulders is preferred the most by medium and upper income category,
while Sunsilk is preferred the most by I1 and I2 segment. It was found that dandruff removal,
value for money, brand image and shine were the most important factors in product quality
considered by the respondents. Medicinal properties and fragrance are also important factors
considered for purchasing a hair shampoo. Respondents from income category I1 do not
consider brand image and brand personality as important factors, while change in price is
a major criterion for deciding the shampoo. Respondents from income category I2 consider
the image associated with brand as an important factor for repeat purchasing, but they do
not consider the factor of brand personality as an important factor. Value for money is
another very important decision criterion. Ingredient, brand personality and availability
have been considered important factors for making a repeat purchase decision in income
category I3. In case of non-availability of a particular brand with a preferred dealer, 14% of
respondents preferred to wait for their brand in that particular store, 73% would move to
another shop for purchasing the same brand, while 12% would change the brand.

Conclusion
The main aim of marketers of hair shampoos is to initiate long-term favorable buying
decisions. For the creation of brand awareness among consumers and for sustaining brand
loyalty, an understanding of brand loyalty of consumers is essential. Many factors influence
the brand awareness and loyalty, and a marketer must understand these. A marketer must
be aware of the brands that a consumer has in his consideration set, how the consumer
actually makes the buying decision, and the consequences of this decision in terms of
satisfaction level and repeat purchase behavior.

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An Empirical Study on Brand Awareness and the Factors Influencing Brand Loyalty
Towards Hair Shampoos

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