BRAND LOYALTY IN THE SPO TS DRINKS MARKET

Neo Phiri

short dissertation submitted as partial fulfillment of the requirements

for the degree

Magister Commercii in Business Management

in the Faculty of Management at the

University of Johannesburg

Johannesburg Supervisor: H B Klopper 2007

ABSTRACT

This study focuses on the South African sports sector. This sector, despite being

relatively small, continues to grow due to growing consumer health

consciousness. Health and energy are the biggest trends which drives this

sector. It is a competitive market where companies use aggressive advertising to

gain market share, and growth is driven partially by the augmented health

consciousness of South African consumers including consumption by athletes

during exercise. World Soccer Cup to be held in South Africa in 2010 may be

prompting many South African food and beverage companies to be watching the

sports world trends. In 2006, the South African sports drinks market estimated at

R853.8 million grew by 7.7% to a volume of approximately 78.7 million liters.

This sector offers a cost saving benefit in terms of Rand per liter compared to

ready-to-drink products. Sports drinks will continue to increase, due to

consumption by many athletes during exercise.

The following study concerns the extent of brand loyalty amongst university

students attending campus gyms in the Gauteng province, specifically at the

University of Johannesburg, Kingsway campus (APC), University of Pretoria and

Monash University. More specifically, it focuses on aspects that play a significant

role in consumers decision making process, and factors that are considered

when sports drinks are being purchased.

A total of 196 interviews have been conducted, 18 were not fit for analysis therefore 178

were fit for response rate 178/196=90.8%. These questionnaires were designed to

specifically measure the extent of brand loyalty amongst university students. A

number of factors were identified as the main influencers and deterrents of sports

drink purchase. Nutritional information on the packaging label and functional

benefits were perceived to be of the utmost importance in the purchasing

decision.

Due to the fact that this study was implemented within the three stated

universities in the Gauteng province, it is important to note that the findings of

this study cannot be generalised, thus providing an opportunity for future

comparative research.

Acknowledgement

I would like to thank the following people whose continuous guidance,

support and love have made completing this research a reality:

The Almighty, my Lord and Saviour, who has made all this possible.

My parents, Batho and Sonono Phiri, for instilling the culture of

learning in our family. My siblings, Comfort, Karabo, Piletso and

Omphile for tolerating and loving me.

Tshepo, for loving me, encouraging and continuously challenging me.

My friends, for listening to me and supporting me.

My mentor and friend, Dr Melanie Louw for always believing in me.

Mr HB Klopper, thank you for all your help in supervising and advising

me through this study and for your experience, insight, guidance and

patience.

vvnacnaa

TABLE OF CONTENTS

ABSTRACT

ACKNOWLEDGEMENTS

LIST OF FIGURES

LIST OF TABLES

CHAPTER 1

RIENTATION

1

1.1. INTRODUCTION

1

1.2. PROBLEM STATEMENT

3

1.3. THE PURPOSE OF THE STUDY

7

1.4. RESEARCH OBJECTIVES

7

1.4.1. Primary research objective

7

1.4.2. Secondary research objectives

7

1.5. RESEARCH METHODOLOGY

8

1.5.1. Sampling

8

1.6. NATURE AND FORM OF RESULTS

8

1.7. THE IMPORTANCE OF THE STUDY

9

1.8. VALUE OF THE STUDY

9

1.9. DEMARCATION AND SCOPE OF THE STUDY

10

CHAPTER 2

AN OVERVIEW OF BRAND LOYALTY

12

2.1. INTRODUCTION

12

2.2. CONCEPT OF BRANDING AND BRAND LOYALTY 12

iii

601.8 1111 ,011111.0

2.2.1. Product versus Brand

2.2.2. Brand loyalty defined

2.2.3. Strategic value of brand loyalty

2.2.4. Measuring brand loyalty

2.2.5. The Stages of brand loyalty

2.2.6. Maintaining and enhancing brand loyalty

2.3. CONCEPT OF CONSUMER BUYING BEHAVIOUR

14

16

21

31

33

35

37

2.3.1. Consumer Behaviour Theory 37

2.3.2. The Consumer Decision making process 39

2.3.3. Factors influencing the consumers decision

making process 42

2.3.4. Brand loyalty and repeat buying behaviour 44

2.3.5. Generation Y 46

2.4. CONCLUSION 55

CHAPTER 3

OVERVIEW OF THE SPORTS DRINKS MARKET 56

3.1. INTRODUCTION 56

3.1.1 Manufacturers 59

3.1.2 Packaging Trends 62

3.1.2.1 Industry Packaging Trends and Characteristics 63

3.1.2.2 Global Trends 73

3.1.2.3 Primary Packaging 74

3.1.2.4 Plastic 74

3.1.3 Outlet Distribution 75

3.1.4 New Products and Promotions 77

3.1.5 Consumption per capita 77

3.1.6 Historical Average Retail Selling Price 78

3.1.7 Growth Prospects 80

iv

%ALM ICH lb"

3.2. INDUSTRY TRENDS DEFINED BY THE MARKETING MIX

CONCEPT 81

3.2.1. Product 81

3.2.2. Price 83

3.2.3. Promotions 84

3.2.4. Place 84

3.2.5. Physical Evidence 86

3.2.6. Processes 86

3.2.7. People 6

3.3. CONCLUSION 87

CHAPTER 4

RESEARCH METHODOLOGY AND PROCEDURE 89

4.1. INTRODUCTION 89

4.2. RESEARCH DESIGN 90

4.3. PRIMARY DATA ANALYSIS 90

4.4. DATA ANALYSIS 92

4.5. METHODS OF COLLECTING QUANTITATIVE DATA 92

4.5.1. Fieldworkers 93

4.6 SAMPLING SIZE DETERMINATION AND THE SELECTION F

THE SAMPLING METHOD 93

4.6.1. Sample size 94

4.6.2. Determining the sample size 94

4.6.3. Defining the target population 95

4.7. QUESTOINNAI RE DESIGN 95

4.7.1. Validity 97

4.7.2. Reliability 99

4.7.3. Choice of scale 99

4.7.4. Questionnaire format and content 100

4.8 ANALYSIS 101

%rtIFIllefil5

4.9 DATA CODING AND EDITING

101

4.9.1 Coding 101

4.9.2 Editing 102

4.10 STATISTICAL PROCEDURES

102

4.10.1 Descriptive statistics 102

4.10.2 Statistical techniques and procedures implemented in

this research 102

4.10.3 Graphic representation of data 103

4.11 CONCLUSION 104

CHAPTER 5

RESEARCH FINDINGS AND INTERPRETATIONS 105

5.1. INTRODUCTION 105

5.2. FINDINGS 105

5.2.1. Section A: Demographic Information 105

5.2.2. Section B: Consumption Frequency 108

5.3. RESULTS OF STATISTICAL TESTING 114

5.4. CONCLUSION 115

CHAPTER 6

CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS FOR

FUTURE RESEARCH

116

6.1. INTRODUCTION 116

6.2. ACHIEVEMENT OF OBJECTIVES 116

6.2.1. Primary objective 116

6.2.2. Secondary objectives 117

6.3. LIMITATIONS 118

6.3.1. Limitations in the literature review 118

6.3.2. Limitations in the empirical research 118

6.4. RECOMMENDATIONS FOR FUTURE RESEARCH 119

vi

%.%/1111C1111Z,

6.5. CONCLUSION

119

CHAPTER 7

REFERENCES

120

CHAPTER 8

APPENDICES

132

8.1. APPENDIX A: QUESTIONNAIRE

8.2. APPENDIX B: FREQUENCIES

8.3. APPENDIX C: CROSS TABULATIONS

vii

..onienis

I

LIST OF FIGURES

I Page:

Figure 1.2: Alternative Growth Strategies Matrix

4

Figure 2.1: The Stages Of Brand Loyalty 33

Figure 2.2: Consumer decision making process 41

Figure 2.3: Factors influencing consumer behaviour 43

Figure 2.4: Repeat Purchase Behaviour and Brand Loyalty 44

Figure 2.5: Level of Involvement and Brand Loyalty 45

Figure 3.1: Volume of Sports Drinks by Subcategory

57

Figure 3.2: Global Sports Beverage Launches over Past Decade 5

Figure 3.3: South Africa Sports Beverage Launches in Past 59

Decade

Figure 3.4: Key Success Factors 62

Figure 3.5: Latest Top Global Trends 63

Figure 3.6: Packaging Trends - Pack Size 64

Figure 3.7: Top 10 Global Flavours - Past 5 Years 65

Figure 3.8: Top 10 Global "Food"/Nutrition Claims-Past 5 Years 67

Figure 3.9: The Four Ps of The Marketing Mix 81

Figure 5.1: Respondent Age 105

viii

,60%.111161 310

LIST OF TABLES

Page:

Table 2.1: The Definition And Benefits of Brands 15

Table 2.2: The Loyalty Matrix - Priorities 24

Table 2.3: Response To Out-Of-Stock Action 41

Table 2.4: Population Estimates By Gender And Age In Gauteng 51

Table 2.5: Demographic Characteristics Of Generati*n 52

Table 3.1: Sports Drink Manufacturers 60

Table 3.2: Comparison Of Sports Drinks Beverages In SA 61

Table 3.3: The Main Food Labelling Requirements And Examples e

Information Than Can Be Provided By Food 71

Manufacturers

Table 3.4: Channel Definitions 75

Table 3.5: Outlet Distribution Of Sports Drinks 75

Table 3.6: Historical SA Per Capita Consumption per year selling 76

Price Per Litre Of Sports Drinks

Table 3.7: Incidence Of Usage By LSM Group Forecast 78

Table 3.8: Selling Price Per Litre of Sports Drinks 79

Table 3.9: Sports Drink Growth Forecast 80

Table 3.10: Packaging Solutions 83

Table 3.11: General Elements of The Physical Environment 85

Table 4.1: Linkages Between Questions In The Questionnaire, 97

Research Objectives And Research Hypotheses

Table 5.1: Demographic Profile 106

Table 5.2: Sports Drinks being sold at gym 106

Table 5.3: Sports Drinks being sold at gym — by University 107

Table 5.4: Branded refrigerator at gym where sports drink is being 108

ix

‘of.71111.G1 1110

Table 5.5:

Table 5.6:

Table 5.7:

Table 5.8:

Table 5.9:

Table 5.10:

Table 5.11:

Table 5.12:

Table 5.13:

Table 5.14:

sold from

Attendance of gym per week

Number of years going to Gym

Activities Done At Gym

Last purchase of Sports Drink

Frequency of Sports Drinks Consumption

Components of the Package

Ranking of characteristics of Sports Drinks

Characteristics of Sports Drinks

Important factors when purchasing a Sports Drink

Favourite Sports Drinks

108

109

109

110

110

111

112

112

113

114

x

Chapter 1

CHAPTER 1

ORIENTATION

"Marketing should focus on market creation, not market sharing."

- Regis McKenna

1.1 INTRODUCTION

Sports drinks are essentially beverages containing nutrients and electrolytes

to replace those lost by the body during physical exertion, or to improve and

sustain performance (BMI Foodpack, 2007:7). Sports drinks claim to

re-hydrate / replenish as well as restore minerals, sugar, and other nutrients

usually lost during sports practise and exercise, and beverages which claim to

improve sports performance and increase endurance" (Robertson, 2007:2).

According to BMI Foodpack (2007:7), the major ingredients comprise water

(to which carbohydrates in the form of fructose, sucrose or glucose have been

added), electrolytes (i.e. sodium, potassium, magnesium, calcium, and

phosphorus) and vitamins and minerals. The functions of these added

ingredients include activating enzymes, strengthening bones, supporting

metabolism and transporting energy.

The South African sports drinks market grew by 7.7% during 2006, to a

volume of approximately 78.7 million litres. The market is worth an estimated

R 853.8 million (BMI Foodpack 2007:7).

The primary driver of this growth is the ready to drink sector of the market by

volume. According to Hehir (2007:9), this growth could be attributed to, the

upward trend to be more health conscious by adopting a healthier diet as well

as attending a gym or health club, consumers consequently incorporate

sports drinks to give energy and replace fluids and electrolytes lost during

training, good weather, increased consumer spending, new launches, sports

drinks have less calories than other non-alcoholic beverages and therefore

provide a healthier alternative for the health conscious consumer. Sports

drinks are expected to grow by 1.0% over the medium to longer tern.

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Chapter 1

The South African sports drinks market is divided into two segments — ready

to drink segment constituting 72.0% and the concentrates and powder

segment constituting 28.0% of total market volume after reconstitution (BMI

Foodpack, 2007:4).

The South African sports drink market consists of seven major competing

sports drinks, all vying for a greater market share. They are not only

competing with one another, but also with no-name brands distributed through

chain stores, as well as less known brands sold through smaller independent

stores (BMI Foodpack, 2007:2).

There has been an increase in the number of sports drink launches in 2006,

and this is likely to continue for the next few years until the 2010 Soccer World

Cup (Robertson, 2007:16).

According to Robertson (2007:16), as with overseas, vitamins and mineral

supplementation was the dominant trend in South Africa. Likewise, "low in"

claims are a trend - after all, consumers are consuming these because they

are doing exercise generally to control their body weight. Hehir (2007:9)

further states that sports drinks with added proteins are conspicuous by their

absence, and also predicted that future trends in SA would be, as

internationally: increased supplementation with electrolytes, amino acids and

protein hydrolosates; more "low in" claims; local experimentation with

innovative ingredients; more sports drinks for children; and more products

with "natural credentials".

The principle of brand loyalty is very specific in this market, as will be shown

further in this study. With a current increase in demand for sports drinks in

the beverage market, it makes for both an interesting and relevant topic of

discussion (BMI Foodpack, 2007:2). In reviewing the different types of

consumers that make purchases, Generation Y consumers are often

described as those that are free spending but hard to reach, ranging from age

18 to 25 years old (Horovitz as in Martin and Turley, 2004:464).

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Chapter 1

1.2 PROBLEM STATEMENT

The sports drinks market is a difficult one within which to compete. Barriers of

entry are high, with a great deal of competition. Many manufacturers and

retailers are finding business increasingly difficult in the present socio-

economic-political environment (BMI Foodpack, 2007:2).

Brand loyalty was once highly significant, now consumers are in the habit of

shopping around and of changing brands with greater frequency. Consumers

are already way less tolerant of mediocrity and less resistant to or afraid of

brand and service provider change that they were just a few years ago

(Simpkins, 2005:1).

Higgs (2002:15) indicates that a not strong relationship with the brand has the

following implications on consumers;

Buy what is available - or what is easiest to find

Be more open to special offers or competitor discounts

Tend to not worry about its availability (Higgs, 2002:15).

While, brand loyalty reduces marketing costs, creates barriers to competitors,

provides trade leverage, affects the brand image, and provides time to

respond to competitive threats (Aaker, 1995:213).

According to BMI Foodpack (2007:3), the sports-drink category is reaching

maturity and that it is currently under a degree of threat, especially from

increased activity in the bottled-water and flavoured-water categories, with

which it competes indirectly. Powerade and Energade control the category in

volume and value.

1.2.1 Growth strategies

According to Aaker (2001:229), the road to improved performance must

involve a renewed emphasis on growth. Growth provides both the potential

for enhanced productivity, as well as greater vitality in the organisation by

providing new challenges and rewards. The next product-market matrix

Page 3

Present New

I. Growth in existing product markets

Increase market share Increase product usage

0 Increase the frequency used Increase the quantity used Find new applications for

current users

II. Product Development 0 Add product features, product

refinement Expand the product line Develop a new generation

product Develop new products for

same market

Present

III. Market Development .

0 Expand geographically 0 Target new segments

V. Diversification involving new products and new markets Related Unrelated

New

IV. Vertical Integration Strategies 0 Forward integration

0 Backward integration Vertical

Chapter 1

(Ansoff matrix) shows a way to structure alternative growth strategies. The

first set of growth strategies involves existing product markets. The next two

concern product development and market development. The fourth concerns

vertical integration strategies, and the fifth, diversification strategies (Aaker,

2001:213). Figure 1.2 illustrates:

FIGURE 1.2: ALTERNATIVE GROWTH STRATEGIES MATRIX

Source: Adapted from Aaker (2001:213)

According to Aaker (2001:229), the most fruitful growth area is often to

increase product usage within existing product market, where assets and

competences are in place and only need to be leveraged. Growth can be

achieved in existing product markets through:

o Increase market share:

- Advertising and promotions

- Offering good value (quality)

o Increase product usage:

- Reminders

- Make use easier

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Chapter 1

- Remove undesirable consequences

- Revitalize the brand (Aaker, 2001:213).

The literature review to follow takes an extensive look at brand loyalty,

consumer decision making process, the sports drinks market as well as the

characteristics of university students or inhabitants of "Generation Y" as

potentially lucrative consumers.

It is apparent from the literature that there is considerable evidence identifying

the reasons why people buy products and services throughout the world as

well as the factors that may affect these purchases. However there has been

no conclusive evidence as to the motivation of students in selected Gauteng

universities and more specifically, no South African studies have currently

been identified in which the concept of brand loyalty and the rationale of

university students has been successfully scrutinised and evaluated for

decision making processes. The following problems have prompted the study

of the extent of brand loyalty in the sports drinks market:

(a) Lack of brand differentiation

According to Aaker (2001:168), differentiation can be based on a host of

dimensions including design, ingredients or components, product line breadth,

or service. According to Keller (2003:556), if two brands cannot be easily

distinguished, then it may be confusing for consumers to make choices

between them.

There is no clear differentiation between the sports drinks brands, and

therefore volume share often comes down to pricing. Consumers cannot tell

the difference between sports drinks brand's advertising or sponsorships,

reducing return on investment (Anon, 2006:62). There is an opportunity to

differentiate through product and communication innovation to establish

unique selling propositions for the brands (Anon, 2006:62).

Competitive brands within the sports drink category are making claims around

being the only "real" sports drink in South Africa. The delicate credibility of

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Chapter 1

sports brands is being brought into question. There is an opportunity to use

advertising and public relations to improve consumer education around

product intrinsics (Anon, 2006:62).

Low consumption frequency

Consumers use sports drinks infrequently, and sports drinks are bought

mainly on impulse (Anon, 2006:62). There is an opportunity to drive volume

through improving availability by increasing availability at the point of

purchase. There is also an opportunity to increase volume through increasing

frequency by using advertising and public relations to improve consumer

education (Anon, 2006:62). According to Keller (2003:101), brand awareness

plays an important role in consumer decision making process for three main

reasons — learning advantages, consideration advantages and choice

advantages. Keller (2003:430), states that brands can gain a lot of attention

from public relations through well placed newspaper and magazine stories.

Lack of consumer education

Consumers will switch flavours before they switch brands, making flavour

availability key to maintaining volume for a brand (Anon, 2006:62). There is

an opportunity to increase consumer purchase through ensuring an educated

choice, by maximising in-store presence through increased flavour range

penetration and merchandising, ensuring that consumers understand the

flavour range. According to Vorster (2004:1), though demand for functional

properties is increasing, taste and flavour is still the prime consideration for

consumers. The addition of flavour and colour to a sport drink are very

important components in the success of the beverage. The use of various

flavours gives the customers the variety they are looking for in the product

they drink. The flavour gives the customer the refreshment and the first

quenching characteristics they may be looking for (Vorster, 2004:1). Aside

from the global trend towards health and wellness. There is an opportunity to

drive volume through advocating a healthy lifestyle, of which sport is a key

part (Anon, 2006:62).

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Chapter 1

Therefore the problem statement is: There tends to be a lack of brand loyalty

in the South African sports drinks market.

1.3 PURPOSE OF THE STUDY

The purpose of the study is to explore the underlying theory of the brand

loyalty concept. It is the specific objective of this research to clarify the extent

of brand loyalty in the sports drinks market. The literature study will be

expanded by extensive descriptive research to determine the influence of

brand loyalty in the sports drink market amongst consumers. With the ever

increasing number of competitors in this category, the findings of this study

will be valuable to manufacturers of sports drinks.

1.4 RESEARCH OBJECTIVES

The research objective is the purpose of the research, expressed in

measurable terms; the definition of what the research should accomplish.

Research objectives specify information needs (Zikmund, 2005:45). The

research objectives in this study are both primary and secondary, and

discussed below:

1.4.1 Primary research objective

The primary objective of this study is to establish the influence of brand loyalty

in the sports drinks market under students.

1.4.2 Secondary research objectives

The secondary objectives of this study are:

To investigate the purchasing behaviour of students, the needs that

sports drinks satisfy, students motivations for buying sports drinks,

characteristics of students, and lastly, students attitudes to different

brands within the sports drinks market.

To identify the perceptions of attributes and package designs of

different brands considered in the choice of the student, and to

establish the attributes that students look for.

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Chapter 1

(c) To investigate the buying motive of sports drinks relating to

ingredients and packaging.

1.5 RESEARCH METHODOLOGY

This is a descriptive study aimed at determining the extent of brand loyalty in

the sports drink market. The research study is limited to students in three

Gauteng universities. The questionnaire was distributed, filled in and

analysed by Statkon. The response rate was 178/196=90.8%. The focus will

be on the student market, targeted at students who drink sports drinks.

A sample was drawn according to the guidelines of sampling and sample size

determination, resulting in a response rate of 178/196=90.8%. This will be

explained in Chapter 4. The study covers the theory on brand the loyalty

concept as revealed in the literature review.

1.5.1 Sampling

The sample for this study was be based on convenience, thus non-probability,

sampling. The target population can be defined as the sports drink students in

selected Gauteng universities that drink sports drink as a qualification

question to screen respondents will enable non drinkers of sports drinks to be

eliminated. The sampling frame will constitute both females and males, of all

races and are 18 years and older. A total of 196 interviews have been

conducted, 18 were not fit for analysis therefore 178 were fit for response rate

178/196=90.8%, the intercept interviews were conducted, on students in

selected Gauteng universities who drink sports drinks.

1.6 NATURE AND FORM OF RESULTS

The results of the study will be provided in a report format including tables,

and figures. Results will include recommendations and action plans for the

sports drinks category.

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Chapter 1

1.7 THE IMPORTANCE OF THE STUDY

Discovering the extent of brand loyalty amongst students in selected Gauteng

universities is necessary because this targeted group should be viewed as the

exceptionally valuable consumers of tomorrow. Many companies have

identified university students in their early twenties as the most profitable

group of consumers to target. This study further investigates consumer

decision making process bearing in mind that consumer behaviour, needs to

be fully understood in order to capitalise on its potential. This research will

therefore provide necessary information to facilitate understanding the

rationale of this potentially profitable consumer group.

1.8 VALUE OF STUDY

Considering the ever increasing number of competitors in the sports drinks

market, the researcher finds it very relevant to conduct a study on brand

loyalty in the sports drinks market. Despite South Africa's many struggles

regarding health issues and poverty, it remains an extremely profitable

country in terms of trade and industry.

By identifying the needs, wants and motivations of Generation Y (suggested

to be some of the most lucrative consumers), organisations will be better

prepared to address these beneficial consumers with products and services

developed to specifically satisfy their needs.

The literature study revealed that empirical studies predominantly focused on

research conducted in developed countries such as the United States and

selected areas in Europe and as such, data were only moderately applicable

to South Africa. Therefore, this research will provide value, not only in terms

of understanding the behaviour of students in selected Gauteng universities,

but also because it will reveal the acceptance of these "new-age" consumers

toward brand loyalty.

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Chapter 1

1.9 DEMARCATION AND SCOPE OF THE STUDY

This is a descriptive study intended to investigate the extent of brand loyalty in

the sports drink segment. The following aspects should be noted:

o The study covers the theory on brand loyalty as well as the characteristics

and behaviour of consumers ranging from the ages of 18-25 (Generation

Y) as divulged in the literature review.

o Focus is placed on consumer behaviour and the consumer decision

making process.

This study will centre around students in selected Gauteng universities whom

attend on campus gyms, at the University of Johannesburg, Kingsway

campus., University of Pretoria, Pretoria campus, Monash University,

Roodeport campus. Although respondents targeted will be of differing

ethnicities and varying degrees of affluence, the data captured will ultimately

lack generalisability because Gauteng students are extremely different to

those students living in other areas of the country, particularly in the more

rural districts.

Chapter 2: Overview of Brand Loyalty

This chapter will provide a theoretical discussion regarding the concept of

branding with emphasis on brand loyalty and the consumer decision making

process. The chapter will include literature on the different areas, criticisms

and gaps.

Chapter 3: Overview of Sports Drinks Market

This chapter will provide a discussion regarding the sports drinks market is

global and local trends as well as growth prospects, a general discussion

regarding major players, distribution and pack trends as applicable to South

Africa.

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Chapter 1

Chapter 4: Research Methodology

The research methodology will be discussed with special reference to the

population, sample, measuring instrument, and qualification of the variables

and the proposed statistical analysis.

Chapter 5: Research Findings and Interpretation

This chapter will present the response rates, descriptive statistics, more

advanced statistics that will be reported on a question-by question basis.

Chapter 6: Summary, conclusions and recommendations for future

research

The final chapter will present all the major findings of this study. The chapter

will be concluded by a discussion on the limitations of the study and will be

enhanced by recommendations for future research.

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Chapter 2

CHAPTER 2

AN OVERVIEW OF BRAND LOYALTY

2.1 INTRODUCTION

The purpose of this section is to introduce the topics of brand loyalty,

consumer decision making process, and Generation Y. A good knowledge of

customer behaviour provides marketers with a sound basis from which to

make decisions regarding forthcoming marketing strategies (Cant, Brink and

Brijball, 2006:236).

Consumers engage in decision-making because they have unlimited wants

and limited resources to satisfy these wants. To make sure that their most

important needs are fulfilled first and that they derive maximum utility from

their purchases, consumers undergo the process of decision-making.

Sometimes a consumer can go through the entire decision-making process

without even realising it, while at other times consumer decision-making may

be complex, deliberate and time-consuming. The level of decision-making

that the consumer engages in depends on the extent of their involvement in a

particular purchase (Cant et al., 2006:207).

2.2 CONCEPT OF BRANDING AND BRAND LOYALTY

Branding is seen as a form of security that adds value and profitability to the

overall marketing effort. There is a relationship between consumers' attitude

toward the brand and their buying behaviour. The repeat buying of a brand

does not imply loyalty towards it. Instead, for brand loyalty to exist, there

must be psychological commitment to the brand. Brand loyalty is the opposite

of variety-seeking behaviour. Consumers engage in variety seeking when

they buy different brands because of heir urge to try different things, curiosity,

novelty or the desire to overcome boredom with original choice (Cant et al.,

2006:236).

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Chapter 2

Branding serves to distinguish products from other similar ones so that they

can be marketed separately. Kotler and Armstrong (2001:172), define a

brand as a name, term, sign, symbol or design, or a combination of these

characteristics, intended to identify the goods or services of one seller or

groups of sellers and to differentiate tem from those of competitors (Cant et

al., 2006:237).

Branding has been around for centuries as a means to distinguish the goods

of one producer form those of another (Keller, 2003:3), and whenever a

marketer creates a new name, logo, or symbol for a new product, he or she

has created a brand. According to O'Malley (1991:107), a brand is a name,

symbol, design, or some combination which identifies the product of a

particular organization as having a substantial, differentiated advantage".

Branding can be an effective and powerful tool for all types of business

organisations. If brand owners use their product correctly, the payoffs can be

substantial. However, if brands are mismanaged, the results can be

damaging. There are many ways to ensure success with branding. Choosing

the right name, using the right advertising, applying the best strategy, and

using the most relevant application techniques are some ingredients needed

to make a branding effort successful (Rooney, 1995:48).

Brand loyalty refers to one's tendency to repurchase the same brand time

after time, and also to have a psychological commitment or attitudinal bias

toward the brand. Thus, the brand loyal customer not only buys the brand, but

refuses to switch even when a better offer comes along (Schoenbachler,

Gordon and Aurand, 2004:488). According to Koekemoer (2004:94), brand

loyalty involves faithful use and purchase of a product.

Once customers have made a decision about a brand and its associations,

they are often loyal to that brand, continue to buy it in the future, recommend

it to friends, and choose the product over others, even those with better

features or lower prices (Assael, 1991:52).

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2.2.1 Product versus Brand

Keller (2003:3) refers to a product as anything that can be offered to a market

for attention, acquisition, use or consumption that might satisfy a need or

want. Thus a product may be a physical good, retail store, person,

organisation or idea. Keller (2003:4) continues to mention that, a brand is

therefore a product, but one that adds other dimensions- (a name, term, sign,

symbol, or design) that differentiate it in some way from other products

designed to satisfy the same need.

There are many characteristics shared by the strongest brands today, the

most critical of which are: clarity, consistency and leadership (Clifton and

Maughan, 2000:2). According to Kapferer (1995:17), the spirit of a brand can

only be inferred through its products and its advertising.

David Ogilvy defined brand as "the intangible sum of a product's attributes: its

name, packaging and price, its history, its reputation and the way it's

advertised. A brand may also denote the product's relatively straightforward

acquisition, financing, ease of use, after sales support, warranty, and lasting

value. Brands also carry emotional impact; they can connect with a

customer's identity and deep aspirations (Barrera 2005:27).

A brand is the product or service of a particular supplier, which is

differentiated by its name and presentation, brands introduce stability into

businesses, help guard against competitive imitation, and allow consumers to

shop with confidence in an increasingly complex world (Aaker, 1991:27).

Once customers have made a decision about a brand and its associations,

they are often loyal to that brand, continue to buy it in the future, recommend

it to friends, and choose the product over others, even those with better

features or lower prices (Assael, 1991:54). Brands are natural barriers to new

competitors because branding reduces consumer risks associated with the

purchase of products or services.

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Table 2.1 illustrates the definition, benefits/advantages of brands:

TABLE 2.1: THE DEFINITION AND BENEFITS OF BRANDS Definition Benefits/advantages

o Name, term, symbol or design or a

combination of traits that help to identify the

o Convenience in shopping through easy

identification and easy recognition of product

product or service o Facilitates the consumer decision-making

o Product with a personality process

o Unique character and appeal o

o

o

o

Provides consumers with consistent quality

Simplifies the buying of replacement parts,

service and accessories

Reduces perceived risk when established

brands are purchased

Enables consumers to express their self-

concepts

Source: Adapted from (Cant et al., 2006:237)

A brand is a trademark or a distinctive name of a product or manufacturer. It is

a name, term, sign, symbol, design or any combination used to identify the

goods and services of a seller. A brand name performs many key functions

(Palumbo and Herbig, 2000:116):

It identifies the product or service and allows the customer to specify,

reject or recommend.

It communicates messages to the consumer. Information provided

could include statements regarding their users' style, modernity or

wealth

It functions as a piece of legal property in which the owner can invest

and through law is protected from competitor trespass. Brand names

convey the image of the product; "brand" refers to a name, term,

symbol, sign or design used by a firm to differentiate its offerings from

those of its competitors, to identify a product with a particular seller

(Palumbo and Herbig, 2000:116).

According to (Aaker, 2001:170), building strong brands involves creating

perceived quality and also brand awareness, brand associations, and brand

loyalty.

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Brands offer consumers convenience in shopping. They make it easier for the

consumer to identify particular items from a multitude of goods and assure

them that it will always be the same product (Cant et al., 2006:237). Brands

provide consumers with consistent quality. Once they have established a

preference for a specific brand, they can be assured of the same quality every

time they buy it. Consumers can also express their self-concepts through

branding. Moreover, as a result of sophisticated buyers and marketers,

brands have acquired an emotional dimension that reflects buyers' moods,

personalities and the messages they wish to convey to others. Individuals

may buy brands that maintain or enhance their self-concepts in a non-verbal

manner (Cant et al., 2006:237).

2.2.2 Brand loyalty defined

Brand loyalty is a measure of a consumers attachment to a specific brand

and is a function of several factors such as the perceived quality of the brand,

its perceived value, its image, the trust placed in the brand, and the

commitment the consumer feels towards it (De Chernatony and McDonald,

2003:439). According to Wozniak and Hanna (2001:293), brand loyalty is an

attachment to brand that have proven satisfactory in the past.

Brand loyalty occurs when consumers make a conscious evaluation that a

brand or service satisfies their needs to a greater extent than others do and

buy the same brand repeatedly for that reason. Brand loyalty therefore

results from very positive reinforcement of a performance related choice

tactic. The level of commitment to the brand distinguishes brand loyalty from

habit. The stronger this evaluation becomes over time, the higher the degree

of brand loyalty (Maclnnis and Hoyer, 2001:4). Research conducted on brand

loyalty has found that losing brand loyalty also means losing a share of the

total market (Giddens and Hofman, 2002:1).

Aaker (1991:31) identifies brand loyalty as a key determinant of brand choice

and brand equity. He notes that the brand loyalty of the customer base is

often the core of a brand's equity. If customers are indifferent to the brand and

will buy with respect to features, price, etc., there is likely little equity.

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According to Aaker (1992:10), brand loyalty develops when the brand fits the

personality or self-image of the consumer or when the brand offers gratifying

and unique benefits that the consumer seeks. In both instances, personal

attachment develops towards the brand.

Brand loyalty is the consumer's conscious or unconscious decision,

expressed through intention or behaviour, 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. In today's highly

competitive environments, improving consumers' loyalty to brands permits

marketers to maintain a comfortable and lasting position in the marketplace

(Essortment, n.d.). According to Hofmeyer and Rice (2000:87), loyalty is the

behavioural propensity to buy a brand repeatedly — differs from commitment —

the strength of the consumers psychological attachment to the brand.

Committed loyalty is the ideal structure. But it is possible for a brand to be

bought loyally without commitment. This happens in two ways:

By force of circumstance — when consumers cannot buy the brand that

they want, and so loyally buy a second or third best brand

By choice — when consumers don't care what they buy, and so loyally

buy the market-leading brand by default (Hofmeyer and Rice, 2000:87)

Many consumers in many markets are both uncommitted and disloyal. But

the fact that loyalty can exist without commitment means that there are other

options (Hofmeyer and Rice 2000:107):

Uncommitted, disloyal consumers can be managed either by making

them enthusiastic about the brand or by mobilizing market forces in

favour of the brand

Consumers who are committed and loyal should be managed by

maintaining both their beliefs about the brand and the importance of

those beliefs.

Consumers whose loyalty is based on market factors need to be

managed by maintaining a strong brand presence because they are

market driven (Hofmeyer and Rice, 2000:107)

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According to Hofmeyer and Rice (2000:87), loyalty refers to consumers who

buy one brand repeatedly. A committed person is one who is strongly

attached to a brand. It is possible to be committed to a brand and yet seldom

buy it. It is also possible to buy a brand again and again, but not be

committed. When the two are combined, we get committed loyalty. If there is

no commitment, then what we have is (merely) loyalty. Having committed

loyalists is the marketing ideal.

Loyalty without commitment occurs when there is a systematic external

reason why consumers cannot get the brand they want. Hofmeyer and Rice

(2000:94), brands with a strong market presence herd uninvolved consumers

into being unconsciously loyal, and when a consumer has no strong

preference for any brand, then they will tend to buy the brand with the

greatest presence in the local market.

According to Aaker (1991:27), brand equity is a set of assets (and liabilities)

linked to a brand's name and symbol that adds to (or subtracts from) the value

provided by a product or service to a organisation and/or that firm's

customers.

The major asset categories are:

Brand name awareness

Brand loyalty

Perceived quality

Brand associations (Aaker, 1991:27)

Aaker (1991:27) identifies brand loyalty as a key determinant of brand choice

and brand equity. He notes that the brand loyalty of the customer base is

often the core of a brand's equity. If customers are indifferent to the brand and

will buy with respect to features, price, etc., there is likely little equity.

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Brand loyalty is a consumer's preference to buy a particular brand in a

product category. It occurs because consumers perceive that the brand offers

the right product features, images, or level of quality at the right price. This

perception becomes the foundation of a new buying habit. Basically,

consumers will make a trial purchase of the brand and, after satisfaction, tend

to form habits and continue purchasing the same brand because the product

is safe and familiar (Giddens and Hofman, 2002:1).

Brand loyalty can be defined as being the degree of attachment that a

customer has to a brand. It reflects how likely a customer will be to switch to

another brand, especially when that brand makes a change, either in price or

in product features. As brand loyalty increases the vulnerability of the

customer base to competitive action is reduced (Aaker, 1996:39). Consumer

using two brands in a short period of time should not be considered 'disloyal'

Instead this is more an expression of active discernment, choosing brand to

meet specific need-states (De Chernatony et al., 2003:439).

Brand loyalty is a measure of the commitment or obligation felt by consumers

to purchase or use a particular brand. Brand loyalty was once highly

significant, now consumers are in the habit of shopping around and of

changing brands with greater frequency (Crainer, 1995:34).

Brand loyalty in fast moving consumer goods categories is a topical issue,

with several brands resorting to price cuts across categories. More

importantly, price cuts or sales promotion by themselves do not seem to have

done much for brands in terms of sustaining brand loyalty. They may attract

consumers in the short run: consumers may stock the brands and consumers

new to the brand may try it. But over a period of time, a brand's value may get

diluted in consumers' psyche, and will eventually lose a strong base of

consumers (Kumar, 2005:1).

A brand without a loyal customer base usually is vulnerable or has value only

in its potential to create loyal customers. Further, the impact of brand loyalty

on marketing costs is often substantial; it is simply much less costly to retain

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customers than to attract new ones. A common and expensive mistake is to

seek growth by enticing new customers to the brand while neglecting existing

ones. The loyalty of existing customers also represents a substantial entry

barrier to competitors in part because the cost of enticing customers to

change loyalties is often prohibitively expensive (Aaker, 2002:21).

According to Hofmeyer and Rice (2000:87), loyalty is always going to be

behavioural; 'attitudinal loyalty' is always going to be 'commitment'.

'Brand loyalty' refers to a situation where a consumer strongly prefers one

brand to others. Consumers become brand loyal in different ways. Some

individuals try different brands and may even buy a different brand every time

they go shopping. Becoming brand loyal is essentially a learning process,

which takes place over a period of time (Cant et al., 2006:237).

According to Schoenbachler, Gordon and Aurand (2004:488), brand loyalty

refers not only to one's tendency to repurchase the same brand time after

time, but also to have a psychological commitment or attitudinal bias toward

the brand. Thus, the brand loyal customer not only buys the brand, but

refuses to switch even when a better offer comes along.

There are three factors that appear to be vital in its development (Cant et al.,

2006:237):

Exposure to information concerning the brand

Favourable experience in buying and using the brand

The extent of its use by peers and social reference groups

There are a number of factors that can influence the degree of brand loyalty

that develops within a target market. Brand loyalty is lower when (Cant et al.,

2006:237):

more brands are available for consumers to choose from

more products of greater value are bought

prices are relatively active among competing brands

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consumers use a number of brands at the same time (Cant et al.,

2006:237).

According to (Bandyopadhyay, Gupta and Dube, 2005:414), small brands in a

product category face twin disadvantages against the big brands: fewer

buyers and lower purchase frequencies among these buyers given the

relatively limited resources of small brands, careful market segmentation may

be the key in circumventing jeopardy among loyal and switching consumer

bases. With regard to the possible jeopardy of small brands among switching

consumers, results are particularly encouraging in that at a given level,

transaction specific antecedents (e.g. exposure to advertisements, price

discount, etc.) are as powerful in influencing choice for small brands as they

are for big brands.

2.2.3 Strategic value of brand loyalty

According to Aaker (2001:168), an existing base of loyal customers provides

enormous sustainable competitive advantages. First, it reduces the marketing

costs of dong business, since existing customers usually are relatively easy to

hold — the familiar is comfortable and reassuring. Keeping existing customers

happy and reducing their motivation to change is usually considerably less

costly than trying to reach new customers and persuading them to try another

brand. Of course, the higher the loyalty, the easier it is to keep customers

happy (Aaker, 2001:168).

Secondly, the loyalty of existing customers represents a substantial entry

barrier to competitors. Significant resources are required when entering a

market in which existing customers must be enticed away from an established

brand that they are loyal to or even merely satisfied with. The profit potential

for the entrant is thus reduced. For the barrier to be effective, however,

potential competitors must know about it; they cannot be allowed to entertain

the delusion that customers are vulnerable. Therefore, signals of strong

customer loyalty, such as advertisements about documented customer loyalty

or product quality, can be useful (Aaker, 2001:168).

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Third, relatively large, satisfied customer base provides an image of a brand

as an accepted, successful, enduring product that will include service backup

and product improvements (Aaker, 2001:168).

Finally, brand loyalty provides the time to respond to competitive moves — it

gives a firm some breathing room. If a competitor develops a superior

product, a loyal following will allow the organization the time needed to

respond by matching and neutralizing (Aaker, 2001:168).

According to Maclnnis et al. (2001:259), brand loyal consumers form a solid

base from which brand profitability can be built. The extent to which a

consumer is brand loyal depends on the product category. According to De

Chernatony et al. (2003:439), committed consumers guarantee future income

streams as well as facilitating brand extensions by transferring any positive

associations to new brands. According to Heimerl (1994:98), there is an

existing relationship between brand loyalty and market share.

According to (Higgs, 2002:15) the following aspects result from relationships

with brands:

Strong relationship with a brand;

Pay more for their brand

Overcome market obstacles to buy that brand

-shop where it's available

-complain if it's out of stock

Ignore competition marketing

Buy again without persuasion (Higgs, 2002:15)

Not strong relationship with brand;

Buy what is available - or what is easiest to find

Be more open to special offers or competitor discounts

Tend to not worry about its availability (Higgs, 2002:15).

Brand loyalty reduces marketing costs, creates barriers to competitors,

provides trade leverage, affects the brand image, and provides time to

respond to competitive threats (Aaker, 1995:213).

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According to Giddens and Hofman (2002:2), an existing base of loyal

customers provides enormous sustainable competitive advantages.

Firstly, it reduces the marketing costs of doing business, since existing

customers usually are relatively easy to hold — the familiar is comfortable and

reassuring. Keeping existing customers happy and reducing their motivation

to change is usually considerably less costly than trying to reach new

customers and persuading them to try another brand. Of course, the higher

the loyalty, the easier it is to keep customers happy (Giddens and Hofman,

2002:2).

Secondly, the loyalty of existing customers represents a substantial entry

barrier to competitors. Excessive resources are required when entering a

market in which existing customers must be enticed away from an established

brand that they are loyal to or even just satisfied with. The profit potential for

the entrant is thus reduced. For the barrier to be effective, however, potential

competitors must know about it, they cannot be allowed to entertain the

delusion that customers are vulnerable. Therefore signals of strong customer

loyalty, such as advertisements about documented customer loyalty or

product quality can be useful (Giddens and Hofman, 2002:2).

Thirdly, brand loyalty provides trade leverage. Strong loyalty toward brands

will ensure preferred shelf space because stores know that customers include

such brands on their shopping lists (Giddens and Hofman, 2002:2).

Fourthly, a relatively large, satisfied customer base provides an image of a

brand as an accepted, successful, enduring product that will include service

backup and service improvements. Finally, brand loyalty provides the time to

respond to competitive moves-it gives an organization some breathing room.

If a competitor develops a superior product, a loyal following will allow the

organization the time needed to respond by match or neutralising (Giddens

and Hofman, 2002:2).

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Reducing customer loss can dramatically improve business growth and brand

loyalty, which leads to consistent and even greater sales since the same

brand is purchased repeatedly (Giddens and Hofman, 2002:2).

Giddens and Hofman (2002:2), further contend that as brand loyalty

increases, consumers are less sensitive to price changes. Generally, they are

willing to pay more for their preferred brand because they perceive some

unique value in the brand that other alternatives do not provide. Brand

loyalists are willing to search for their favourite brand and are less sensitive to

competitor promotions. The results are lower costs for advertising, marketing

and distribution. Specifically it costs four to six times as much to attract a new

customer as it does to retain an old one.

According to (Aaker, 2001:45), brand loyalty, an important consideration in

allocating resources, can be structured using a loyalty matrix as shown in

Table 2.2. Each cell represents a very different strategic priority and can

justify a very different program. Generally it is too easy to take the loyal

customer for granted. A study by Bain shows that a 5 percent increase in

loyalty can nearly double the lifetime profits generated by customers. The key

is often to reward the loyal customer by living up to expectations consistently,

providing an ongoing relationship, and offering extras hat surprise and delight.

TABLE 2.2: THE LOYALTY MATRIX - PRIORITIES Switchers Fence-sitters Loyal

Customer Medium High Highest

Noncustomer Low to Medium High Low

Source: Adapted from Aaker (2001:46).

The loyalty matrix suggests that the brand fence-sitters, including those of

competitors, should also have high priority. Using the matrix involves

estimating the size of each of the six cells, identifying the customers in each

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group, and designing programs that will influence their brand choice and

loyalty levels (Aaker 2001:46).

According to Aaker (2001:46), the loyalty matrix suggests that the brand fence

sitters, including those of competitors

2.2.3.1 Importance of brand loyalty

According to Reichheld (1996:23), the advantages of brand loyalty as follows:

Continues profit. The advantages of customer loyalty are long-term and

cumulative. The longer a customer remains loyal, the more profit a

business can get from that single customer.

Reduces marketing cost. Businesses have to invest money to attract

new customers, such as advertising. For loyal customers, these costs

are eliminated or minimised.

Increases per-customer revenue growth. Customer spending tends to

increase over time. For example, a customer who repeatedly stays at

the same hotel becomes more familiar with the hotel's full product line,

such as gift shops and banquet rooms. And that customer will be likely

to sample other product lines of the company, thus helping the

company achieve a larger share of customers.

Decreases operating cost. For a loyal customer, the front desk clerk

does not need to spend time entering data into the computer — instead

she/he retrieves the loyal customer's existent data. Loyal customers'

familiarity with the company's products makes them less dependent on

its employees for information and service, thus decreasing servicing

cost.

Increases referrals. Satisfied customers recommend the business to

friends and others. Referrals are a vital source of new customers, and

customers who show up on the strength of a personal recommendation

tend to stay longer.

Increases price premiums. Brand loyal customers pay more for a brand

because they perceive some unique value in the brand that no other

alternative can provide, and they are less likely to be lured away by a

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discount of a few dollars. Many people will pay more to stay in a hotel

they know than to take a chance on a less expensive competitor.

Provides competitive advantage. As consumers become loyal to a

brand, they become less sensitive to a price increase. The company

can maintain a price differentiation over the competition because of the

product's ability to satisfy their needs (Reichheld, 1996:23).

The management of brand loyalty is a key to achieving strategic success.

According to Aaker (2001:169), organizations that manage brand loyalty well

are likely to:

Place a value on the future purchases expected from a customer so

that existing customers receive appropriate resources

Measure the loyalty of existing customers. Measurement should

include not only sensitive indicators of customer satisfaction but also

measures of the relationship between the customer and the brand

Conduct exit interviews with those who leave the brand to locate points

of vulnerability

Reward loyal customers with frequent-buyer programs or special

unexpected benefits or premiums

Make customers feel that they are part of the organization, perhaps

through customer clubs

Have continuing communication with customers, using direct mail, the

Web, toll-free numbers, and a solid customer backup organization

(Aaker, 2001:169).

2.2.3.2 Factors contributing to brand loyalty

Brand loyalty in fast moving consumer goods categories is a topical issue,

with several brands resorting to price cuts across categories. More

importantly, price cuts or sales promotion by themselves do not seem to have

done much for brands in terms of sustaining brand loyalty. They may attract

consumers in the short run: consumers may stock the brands and consumers

new to the brand may try it. But over a period of time, a brand's value may get

diluted in consumers' psyche, and will eventually lose a strong base of

consumers (Kumar, 2005:1).

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According to Bowen and Shoemaker (1998:12), loyal customers generally

show these common behaviors: making repeat purchases, trying other

product lines of the company, showing resistance to the pull of the

competition, giving referrals, providing publicity, and serving on advisory

boards. The following paragraphs summarize the factors that create brand

loyalty:

Factor 1 - Awareness

The first step toward loyalty begins with the customer's becoming aware of

the product (Aaker, 1991:27). At the awareness stage, a potential customer

knows that the brand exists, but the bond between a customer and the

product is low. At this point, a brand-name may provide the awareness of the

product because brand names offer value to the consumers by helping them

interpret, process, store, and retrieve large quantities of information about

products (Aaker, 1991:27). According to Kumar (2005:1), a high brand

involvement would mean a greater search intention, and satisfaction of the

customer could lead to repeat purchase and then loyalty. Low involvement

could lead to brand habit.

Branding activities can differentiate between brands on name, symbol, images

and associations. Branding activity in this context refers to creating strong

associations which will influence the consumers not only with regard to

functional attributes but also with symbolism (Kumar, 2005:1)

Awareness can be enhanced in a variety of ways such as advertising, direct

mail, trade press, word-of-mouth communication, and promotion activities

(Grover and Srinivasan, 1992:76). The more the customer is aware of the

product, the greater the possibility that she/he will purchase the product. The

more places the customer can buy the product, the more often that customer

will become a new customer of the same product in another marketplace

(Lewis, Chambers and Chacko, 1995:655).

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Factor 2 - Reputation

If the products are differentiated in their characteristics and this difference is

perceivable, there are chances of brand loyalty being formed based on

satisfaction with greater performance or fit of product with needs. In this case,

loyalty is driven by functional or symbolic benefits (Kumar, 2005:1). If the

products are differentiated in their characteristics and this difference is

perceivable, there are chances of brand loyalty being formed based on

satisfaction with greater performance or fit of product with needs. In this case,

loyalty is driven by functional or symbolic benefits. Functional benefits would

be specific tangible features of the product whereas symbolic benefits would

be intangibles such as brand personality and 'hedonistic' value of purchase

(Kumar, 2005:1)

Selling high-quality products and commanding premium prices increases the

reputation of a firm; thus, developing brand loyalty. In order to build and

maintain a reputation, the promised quality of goods or services must be

delivered. For a firm expanding its product line, a well-known brand can

facilitate user acceptance of the new product (Aaker, 1991:27).

Factor 3 - Image

One of the first steps in maintaining customer brand loyalty is to build and

sustain a positive brand image. A strong brand image is important to brand

owners because the brand name distinguishes a product from the

competitors' products. The image includes colors, symbols, words, and

slogans that convey a clear, consistent message and not simply the name

(Berry, Lefkowith and Claek, 1988:28). The brand image plays an important

role in product choice because consumers attempt to reinforce their self-

image by buying products that are congruent with their self-image. The

consumer may perceive that one brand is more desirable than its competitor's

solely because of the difference in image (Schiffman and Kanuk, 1991:22).

According to Kumar (2005:1), if the price differentiation in the market is

perceivable, price-led loyalty might exist in the market. Price-led loyalty is

practised by supermarkets, airline companies and FMCG brands, which come

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out with frequent sales promotions based on freebies. Alternatively, price

might be taken as an indicator of brand quality, and the customer might go in

for higher priced options. Price-led loyalty has to be carefully considered with

other marketing mix elements and the consumer should never perceive

dilution, especially in low-priced bands. Hence, lower prices should create a

sense of value through the product offerings as well as through

communication.

Factor 4 - Promotion

According to Kumar (2005:1), the more the number of price-discount led sales

promotions, the lesser the likelihood of brand loyalty in the category/segment

which is the focus of such efforts. This is because the consumers are inducted

into the price war mind set. A premium brand which gets into frequent sales

promotion has the risk of losing its premiumness

While promotion is the biggest reason consumers initially try a product

(Grover and Srinivasan, 1992:76), if tied to something positive, such as a new

or better facility or a new product, it facilitates brand loyalty. Promotions can

be used to develop cost leadership or differentiation, and can be used to

create loyalty through switching costs (Grover and Srinivasan, 1992:76).

Factor 5 - Perceived quality

A brand should represent a credible guarantee of quality to the consumers

(Aaker, 1991:22). Once the consumers are persuaded that the brand offers

what they expect, they stay with the brand. Brand names provide a symbolic

meaning which assists the user in the recognition and decision-making

process. A consumer will choose a familiar name because brand names carry

higher perceived quality. Customers may also see this price difference as a

quality indication.

According to loyalty is driven by functional or symbolic benefits. Functional

benefits would be specific tangible features of the product whereas symbolic

benefits would be intangibles such as brand personality and 'hedonistic' value

of purchase.

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Factor 6 - Innovation

Innovation allows the brand to remain up-to-date and demonstrates an

unceasing attentiveness to the changes in customer taste. To keep pace with

changes in the marketplace companies should meet and exceed customer

needs and wants (Aaker and Keller, 1990). A pioneering brand in a category

which offers a good product and addresses the perceived risks associated

with the product is likely to get a loyal base of consumers (Kumar, 2005:1).

According to Uncles, Dowling and Hammond (2003:294), where the focus is

on individual customers, loyalty programs can be seen as vehicles to increase

single-brand loyalty, decrease price sensitivity, induce greater consumer

resistance to counter offers or counter arguments (from advertising or sales-

people), dampen the desire to consider alternative brands, encourage word-

of-mouth support and endorsement, attract a larger pool of customers, and/or

increase the amount of product bought.

Factor 7 - Brand extension

Carrying the brand into new categories that fit well with its concept and image

will help companies increase customer brand loyalty (Aaker, 1991:22). When

the brand's associations and perceived quality can provide a point of

differentiation and advantage for brand extension, the extension will be

successful. However, there is a risk that an extension may damage the core

brand by weakening its associations or its perceived quality. If customers

want to buy a new product, they will prefer a familiar brand. They already

know the brand and have the same performance expectations with the new

product. If they do not get what they expect, they may switch to the new brand

(Aaker, 1991:22).

Loyalty-program members are encouraged to buy products they would not

normally have bought from that provider. In essence, the loyalty program is

seen as a brand extension aid (Uncles et al., 2003:294).

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Factor 8 - Satisfaction

The relationship between satisfaction and brand loyalty has been observed in

several studies. Highly satisfied customers are much more loyal than satisfied

customers — any drop in total satisfaction results in a major drop in loyalty

(Jones, 1990:145).

Factor 9 - Customer background

Customer background characteristics may also contribute to brand loyalty

(Morgan and Dev, 1994:267). Higher income customers may stick to one

premium brand because they perceive it as a contribution to their social

status. Some brands carry images or symbolic meanings that may provide

social value for them. The higher household income, the less switching is

expected because customers can exercise their preferences independently

from monetary considerations.

According to Kumar (2005:1), in the FMCG sector, brand habit is high

whereas attitudinal loyalty is low. As creating attitudinal loyalty based on

functional differentiation is difficult, symbolic differentiation is the key. Building

strong brand personalities and associated symbolic benefits is important for

crafting customer loyalty. The factors discussed cannot be treated in

isolation: they are to provide a synergy to result in brand loyalty. The

combination of these factors and the timing of the combination is the topical

challenge which marketers face in an environment where loyalty is slowly

eroding (Kumar, 2005:1)

2.2.4 Measuring brand loyalty

According to Jensen and Hansen (2006:444), repeat purchasing is measured

by a single item - how many times of the last five purchases they bought the

same brand. Although this is recognized as a measure of past behaviour,

such a measure is a reasonable indicator for future repeat purchasing. An

alternative way to measure behavioural loyalty could be the perceived

probability of purchasing the same brand in the future. Considering the weak

relationship between attitude and behaviour often found in studies of low

involvement situations, such an indicator would neither be a very reliable

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measure of future repeat purchasing, particularly not with regard to frequently

purchased goods markets.

In order to cope with the forces of disloyalty among consumers an accurate

method to measure and predict brand loyalty is needed (Lyong Ha, 1998:51).

There are numerous measures of loyalty, for example measuring actual

purchasing behaviour over time which reflects the degree of satisfaction

existing customers have with the brand (De Chernatony et al., 2003:439).

According to Maclnnis et al. (2001:259), consumers who exhibit a particular

sequence of purchases (three to four purchases of the same brand in a row)

or proportion of purchases (seven or eight out of ten purchases of the same

brand) are considered brand loyal.

It is important to understand the difference between regular users and brand

loyal consumers and to understand the factors that make up brand loyalty in

order to examine and measure this phenomenon. According to Aaker

(1996:43), it is useful to consider approaches to brand loyalty measurement.

A consideration of several measurement tacks will provide additional insights

into its scope and nuances as well as provide a practical tool in using the

construct and linking it to profitability. One approach is to consider actual

behaviour. Other approaches are based upon the loyalty constructs of

switching costs, satisfaction, liking, and commitment.

A market can usually be divided into the following groups: non customers

(those who buy competitor brands or are not product class users), price

switchers (those who are price sensitive), the passively loyal (those who buy

out of habit rather that reason), fence sitters (those who are indifferent

between two or more brands), and the committed (Aaker, 1996:21). The

challenge is to improve the brands loyalty profile: to increase the number of

customers who are not price switchers, to strengthen the fence sitters and

committed's ties to the brand, and to increase the number who would pay

more (or endure some inconvenience) to use the brand or service. Two

segments in which firms often under invest are the passively loyals and the

committed customers (Aaker, 1996:21).

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Brand awareness

Brand trial

Brand image

Brand awareness

Brand habit

Brand loyalty

Chapter 2

One approach to enhancing the loyalty of fence sitters and the committed is to

develop or strengthen their relationship with the brand. Brand awareness,

perceived quality, and an effective, clear brand identity can contribute to this

goal. Increasingly, however, programs that can build loyalty more directly are

becoming important and even critical in many product classes. Included

among these are frequent buyer programs and customer clubs (Aaker,

1996:21).

According to (Aaker, 2001:170), brand loyalty reduces marketing costs,

creates barriers to competition, improves the brand image, and provides time

to reposition in response to competitive threats

2.2.5 The stages of brand loyalty

According to Cant et al., (2006:243), a consumer progresses through various

stages before becoming truly brand loyal, Figure 2.1 below depicts these

phases in chronological order;

FIGURE 2.1: THE STAGES OF BRAND LOYALTY

Source: Adapted from Cant et al., (2006:243)

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Stage 1 - Brand awareness

According to Cant et al., (2006:242), consumers cannot buy a brand unless

they are aware of its existence. By creating brand awareness, marketers

hope that whenever the need for the product arises, the consumer will

remember the brand and include it among the choice alternatives during

decision-making. A high level of brand awareness is vital to influence brand

choice.

Brand awareness provides a sustainable competitive difference. It serves to

differentiate the brands along a recall/familiarity dimension (Aaker, 2001:165).

According to Keller (2003:730), brand awareness is related to the strength of

the brand node or trace in memory as reflected by consumers ability to recall

or recognize the brand under different conditions.

Awareness refers to the strength of a brand's presence in the consumers

mind (Aaker, 2002:10). Brand awareness consists of brand recognition and

brand recall performance. Brand recognition relates to consumers' ability to

confirm prior exposure to the brand when given the brand as a cue. Brand

recall relates to consumers' ability to retrieve the brand from memory when

given the product category, the needs fulfilled by the category, or a purchase

or usage situation as a cue (Keller, 2003:67). The percentage of consumers

or potential consumers who have knowledge of or can identify a particular

brand (Crainer, 1995:33).

Stage 2 - Brand trial

According to Cant et al., (2006:242), consumers will know a brand only if they

try it. Marketers encourage this by providing free samples, or coupons or

attractive reductions on prices as compared to competitors' prices.

Stage 3 - Brand image

According to Cant et al., (2006:242), brand image is the consumers

impression of the brand created by brand messages and experiences, and

assimilated or evaluated into a perception through the processing of

information. According to Kotler (2003:70), a positive brand image is created

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by marketing programs that link strong, favourable, and unique associations

to the brand in memory. According to Keller (2003:206), the consumer

develops a set of brand beliefs about where each brand stands on each

attribute. The set of beliefs about a brand name make up the brand image.

Stage 4 - Brand preference

According to Cant et al., (2006:243), this is a tendency to select a brand or

product from among a set of known available brands. When confronted with a

choice of brands, the consumer will have a more positive feeling about one

brand than about competitor brands.

Stage 5 - Brand habit

According to Cant et al., (2006:243), a consumer who prefers a particular

brand of product will habitually buy it without thinking about or evaluating it.

Stage 6 - Brand loyalty

According to Cant et al., (2006:243), brand loyalty indicates that a person has

a psychological commitment or attachment to a brand. They will visit another

store if their preferred brand is unavailable or out of stock, and may even do

without it until they are able to get the brand from another store. Loyalty is a

true measure of brand preference.

2.2.6 Maintaining and enhancing brand loyalty

According to Schoenbachler et al., (2004:488), building brand loyalty has

taken numerous forms over time. Initially, mass awareness advertising

campaigns were used almost exclusively to build a brand's image, with hopes

that a strong brand image would be enough to establish brand loyal

customers. Firms have used promotional tools such as coupons, rebates,

discounts, bonus packs and gift premiums in an effort to build loyalty.

Establishing brand loyalty may require developing a relationship with

customers that is more than product-based. In a marketplace where products

and services are difficult to differentiate, customers may need an additional

point of contact with a company to develop the commitment needed for brand

loyalty.

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To build loyalty, a manufacturer must concentrate on customer needs, the

consumer has changed, consumer have become better informed and more

discerning. He recognises and expects excellence (Linton, 1993:15).

According to Aaker (1991:49), treat the customer right, stay close to the

customer, measure/manage customer satisfaction, create switching costs,

proved extras. Consumers are loyal to the perceived attributes of the brand

(Melamdowitz, 1993:79).

A brand loyal consumer is less likely to be influenced by a coupon or price

deal for another brand. Price deals have gradually eroded consumer loyalty

towards many brands, and more and more consumers are buying on the

basis of price. Therefore, marketers are now striving to develop consumer

loyalty through product quality or sales promotions (Maclnnis et al.,

2001:260).

One critical way to develop brand loyalty is to provide that consumer with a

high-quality product that leads to satisfaction. Recent evidence suggests that

consumers will become brand loyal to high quality brands if these products

are offered at a fair price. Brand loyalty can also be cultivated through sales

promotions (Maclnnis et al., 2001:260).

Favourable brand attitudes are the determinants of brand loyalty — consumers

must like the product in order to develop loyalty to it. In order to convert

occasional purchasers into brand loyalists, habits must be reinforced

(Giddens and Hofman, 2002:1).

According to Van den Brink, Odekerken and Pauwels (2006:15), in the past,

brand loyalty has been conceptualised both in a behavioural and in an

attitudinal way. The former captures more the patronage behaviour and

focuses on repeated purchasing of a certain brand by a consumer over time.

An advantage of the behavioural approach is that it measures observable

behaviours, instead of (self-reported) intentions and declarations. Observable

behaviour is also easier and less costly to measure.

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To encourage repeat purchase, advertisements before and after the sale is

critical. In addition to creating awareness and creating initial purchases,

advertising shapes and reinforces consumer attitudes so these attitudes

mature into beliefs, which need to be reinforced until they develop into loyalty.

According to Giddens and Hofman (2002:1), a few more points to keep in

mind regarding maintaining brand loyalty:

Develop an unbeatable product

Give customers an incentive to repeat-purchase

Stand behind your product

Know your trophy customers and treat them best of all

Make it easier to buy your brand than competing brands

Go to your customers

Become a customer service champion (Giddens and Hofman, 2002:1).

The less loyal the consumers, the more marketers must deal. A purchase

made on deal will always deliver less profit to the marketer than a purchase

made at full priced (Hallberg, 1995:50).

According to Koekemoer (2005:276), consumers generally have become

much less brand loyal than they once were. Belch and Belch (2004:120) state

that for many products fewer than 50 per cent of consumers are loyal to one

brand. This is partly due to the fact that many products have become

increasingly similar, due to technology. Consumers find it easy to switch

among brands, especially cheaper substitutes, since they all offer similar

features and benefits. There is another reason for reduced brand loyalty and

that has been created by marketers themselves. Marketers in most

developed countries have effectively 'trained' consumers to expect that at

least one brand in a particular product category will be 'on deal' with a

coupon, cents-off offer or refund. The extensive use of sales promotion has

reduced brand loyalty and increased brand switching, therefore requiring even

more 'dealing' to feed the 'monster' (Koekemoer, 2005:276).

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2.3 THE CONCEPT OF CONSUMER BUYING BEHAVIOUR

The purpose of this section is to discuss themes of consumer behaviour,

consumer decision making process and Generation Y.

2.3.1 Consumer Behaviour Theory

Consumer behaviour reflects the totality of consumer's decisions with respect

to the acquisition, consumption, and disposition of goods, services, time and

ideas by (human) decision making units (over time) (MacInnis et al., 2001:4).

Malholtra et al., (2003:51) contends that consumer behaviour focuses on the

consumption-related active entities of individuals. Consumer behaviour

investigates the way individuals choose, purchase, use, and dispose of goods

and services in order to satisfy personal or household needs. Some of the

influences that shape consumer choices and tendencies are internal

processes, such as our own thinking, feeling and desiring. Other influences

spring from environmental factors, such as social forces, economic,

situational, retail, and promotional considerations. These forces combine and

dynamically interact to produce shopping behaviour (Wozniak et al., 2001:2).

According to Schiffman and Kanuk (1997:6), consumer behaviour is how

individuals make decisions to spend their available resources (time, money,

effort) on consumption-related items. It includes what they buy, why they buy

it, where they buy it, how often they buy it, and how often they use it.

Schiffman and Kanuk (1997:6), state that it is important to recognize why and

how individuals make their consumption decisions, so that better strategic

marketing decisions can be made.

According to Schiffman and Kanuk (1991:592), consumer behaviour is not just

making a purchase decision or the act of purchasing: it also includes the full

range of experiences associated with using or consuming products and

services. It also includes the sense of pleasure and satisfaction derived from

possessing or collecting "things". The outputs of consumption are changes in

feelings, moods, or attitudes; reinforcement or lifestyles; an enhanced sense

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Chapte•2

of self: satisfaction of a consumer-related need: belonging to groups;

expressing and entertaining oneself.

The field of consumer behaviour can be defined as "the study of individuals,

groups, or organizations and the processes they use to select, secure, use,

and dispose of products, services, experiences, or ideas to satisfy needs and

the impacts that these processes have on the consumer and society"

(Hawkins, Best and Coney, 2004:7). From the above definition, it is

abundantly clear that identifying consumer motivation is an activity that is

firmly situated within this marketing discipline.

Consumer behavior is habitual because habits are safe and familiar. In order

to create brand loyalty, advertisers must break consumer habits, help them

acquire new habits, and reinforce those habits by reminding consumers of the

value of their purchase and encourage them to continue purchasing those

products in the future (Essortment 2002:1)

Customer behaviour concerns all the activities and influences that occur

before, during and after the purchase itself. According to Olson and Peter

(2005:5), consumer behaviour involves the thoughts and feelings people

experience and the actions they perform in consumption processes.

Consumer behaviour is dynamic because the thinking, feelings, and actions of

individual consumers, targeted consumer groups, and society at large are

constantly changing. Consumer behaviour involves interactions among

people's thinking, feelings, and actions, and the environment. Consumer

behaviour involves exchanges between human beings. In other words,

people give up something of value to others and receive something in return

(Olson and Peter, 2005:8).

2.3.2 The Consumer Decision Making Process

Consumer decision process can be characterized as a form of problem

solving. When consumers perceive a discrepancy between an actual state of

affairs and a desired or ideal state of affairs, problem recognition arises.

Individuals then become involved in a problem solving process. This process

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entails a sequence of activities designed to arrive at a decision leading to a

satisfactory solution to the perceived problem (Wozniak et al., 2001:293).

According to Olson and Peter (2005:165), a decision involves a choice

"between two or more alternative actions". The key process in consumer

decision making, however, is the integration process by which knowledge is

combined to evaluate tow or more alternative behaviours and select one.

The buyer decision process consists of five stages: need recognition,

information search, evaluation of alternatives, purchase decision, and post-

purchase behaviour. According to Kotler et al., (2001:172), the buying

process starts long before actual purchase and continues long after, Figure

2.2 illustrates. Embleton (1995:104) contends that, consumers tend to be

more brand loyal where they have more involvement in the purchase decision.

Brand loyalty is lowest among larger households with above average incomes

and higher educations. In contrast, brand loyalty is highest among smaller

households, older consumers and those with lower incomes (Howell,

2004:30).

According to Quester and Lin Lim (2003:22), product involvement and brand

loyalty are two important concepts believed to explain a significant proportion

of consumer purchase choices. The most significant finding from Quester and

Lim's study is that product involvement does not precede brand loyalty. There

is a relationship between the two constructs but we cannot assume that one

comes before the other.

Since each repurchase offers the same satisfaction — resulting from the

products performance, stability, price and image, from consumers point of

view, the brand distinguishes the offer, reduces risk, and saves on the effort of

making (Kapferer, 1995:190).

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FIGURE 2.2: CONSUMER DECISION MAKING PROCESS

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behaviour

Source: Adapted from Kotler and Armstrong (2001:172)

Consumers pass through all five stages with every purchase (as illustrated in

Figure 2.2). But in more routine purchases, consumers often skip or reverse

some of these stages. Haig (2003:3) declares that consumers make buying

decisions based around the perception of the brand rather than the reality of

the product. MacInnis et al., (2001:4) asserts that brand loyalty results in low-

effort decision making because the consumer does not need to process

information when making a decision and simply buys the same brand each

time. Wood (2004:9) contends that value and variety are important attributes

of brand selection.

According to a survey conducted by Verbeke, Farris and Thurik (1998:1021),

consumers respond to an out-of-stock situation in the following manner,

depicted in Table 2.3 below:

TABLE 2.3: RESPONSE TO OUT-OF-STOCK ACTION Respondents Out-of-stock action

55.2% switched brands,

24.5% switched stores

20.3% postponed purchase

Source: Adapted from Verbeke, Farris and Thurik (1998:1021)

According to Schiffman and Kanuk (1991:592), the decision model has three

sets of variables: input variables, process variables, and output variables.

Input variables that affect the decision-making process include commercial

marketing efforts, as well as non-commercial influences from the consumer's

sociocultural environment.

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The decision process variables are influenced by the consumer's

psychological field, including evoked set (i.e., the brands in a particular

product category considered in making a purchase choice). Taken as a

whole, the psychological field influences the consumer's recognition of a

need, prepurchase search for information, and evaluation of alternatives. The

output phase of the model includes the actual purchase (either trial or repeat

purchase) and postpurchase evaluation. Both prepurchase and postpurchase

evaluation feed back in the form of experience into the consumer's

psychological field, and serve to influence future decision processing

(Schiffman and Kanuk, 1991:592).

According to Cant et al., (2006:193), consumers are continuously making

decisions about what products and services to consume. There are two

fundamental reasons why individuals must make decisions:

o They have to satisfy their needs and desires

o Frequently, more than one choice or alternative will satisfy their needs

Cant et al., (2006:193).

According to Cant et al., (2006:193), consumer behaviour is triggered by

needs. Consumer decision-making directs needs by assessing and selecting

the actions that will fulfill them. However, the process of consumer decision-

making, unlike consumer actions, cannot be observed. Consumer decision-

making is a cognitive process that consists of those mental activities that

determine what activities are undertaken to remove a tension state caused by

a need (Cant et al., 2006:193).

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2.3.3 Factors influencing consumers decision making process

Consumer purchases are influenced strongly by cultural, social, personal, and

psychological factors. Cultural factors exert the broadest and deepest

influence on consumer behaviour. The marketer needs to understand the role

played by the buyers culture, subculture, and social class. A consumer's

behaviour also is influenced by social factors, such as the consumer's small

groups, family, social roles and status. A buyer's decisions are also

influenced by personal characteristics such as the buyer's age and life-cycle

stage, occupation, economic situation, lifestyle, and personality and self-

concept (Kotler et al., 2001:172).

A person's buying choices are further influenced by four major psychological

factors: motivation, perception, learning, and beliefs and attitudes. Many

forces act on consumer behaviour. Embleton (1995:104) contends that, the

lower income groups tend to be more brand loyal than their higher income

counterparts.

The consumer's choice results from the complex interplay of cultural, social,

personal, and psychological factors (Kotler et al., 2001:172). Figure 2.3

below illustrates:

FIGURE 2.3: FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural Social Personal Psychological Buyer Age and life-

[

Culture Reference groups

cycle stage Motivation

Subculture Occupation Perception Family

Social class Economic Learning Roles and status situation Beliefs and

attitudes Lifestyle

Personality and self-concept

Source: Adapted from Kotler and Armstrong (2001:172)

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2.3.4 Brand loyalty and repeat buying behaviour

According to Cant et al., (2006:237), repeat buying involves buying the same

brand frequently, possibly because it is the only one or the cheapest one

available, for brand loyalty to occur there must be some level of psychological

commitment to the brand. This is presented in Figure 2.4:

FIGURE 2.4: REPEAT PURCHASE BEHAVIOUR AND BRAND LOYALTY

REPEAT PURCHASE BEHAVIOUR

Buying the same brand often

over time

May be based on price,

availability, packaging

BRAND LOYALTY

Buying the same brand often over

time because of a commitment

psychological attachment

Characteristics

Consistent buyer of the same brand

Hold strong beliefs about the brand's quality

Feel considerable devotion to brand

Willing to pay the price

Resists competitor's efforts to persuade them

of the quality of other brands

Not vulnerable to other brands

Source: Adapted from Cant et al., (2006:237)

Repeat buying behaviour refers to consumers buying the same brand over

time, while brand loyalty includes psychological and evaluative processes.

These processes need not be elaborate or extensive, but they should show

that a person has reasons for acting and develops a commitment — a

psychological attachment — to one or more brands. Brand loyal consumers,

by contrast, tend to be consistent buyers of the brands they buy; they hold

strong beliefs about their quality, feel considerable devotion towards the

brands and often resist competitors efforts to persuade them of the quality of

other brands. Therefore, they are not vulnerable (Cant et al., 2006:237).

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I Low involvement

Exposure and brand awareness

Buying behaviou

Attitude change

Brand habit

Cannot be brand loyal as there is no low commitment

I High involvement

V

Extensive search for information

Attitude change

Buying behaviour

Brand loyalty (result of brand attitude and commitment)

Chapter 2

Complex decision-making and brand loyalty

Brand loyalty is often measured by how involved consumers are in the

decisions to buy particular products, as shown in Figure 2.5:

FIGURE 2.5: LEVEL OF INVOLVEMENT AND BRAND LOYALTY

Source: Adopted from Cant et al., (2006:237).

As depicted in Figure 2.5, high involvement leads to extensive search for

information, attitude change, buying behaviour and then brand loyalty, while

low involvement creates exposure and brand awareness, buying behaviour,

perhaps attitude change and then brand habit. Since brand loyalty is defined

as a commitment, the low involvement consumer cannot be considered to be

brand loyal. Brand commitment is the result of consumer attitude. The

greater the brand commitment, the more rooted the brand is in the

consumer's mind as the only choice within the product class. If the shop does

not have the brand in stock, this will be a serious problem for the consumer,

who will then look for the brand in another shop. Hence, brand commitment

implies brand loyalty, but brand loyalty does not imply brand commitment.

Consumers who are not brand loyal may be persuaded to buy a competitors

brand (Cant et al., 2006:237).

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2.3.5 GENERATION Y: UNDERSTANDING THE NEW CONSUMER

According to Kotler (2003:291), many researchers are turning to generation

segmentation. Each generation is profoundly influenced by the times in which

it grows up-the music, movies, politics, and defining events of that period.

Demographers call these groups cohorts. Members of a cohort share the

same major experiences. They have similar outlooks and values (Kotler,

2003:291).

Individuals in Generation Y are the children of the "baby boomers" generation

or "Generation X" (Bakewell and Mitchell, 2003:96). There is no exact

consensus as to the years that these consumers were born, however, the

range usually lies between the early 1980's and the early 1990's.

According to NAS Insights (2006:1), there are three major characteristics of

the Millennial group: 1) They are racially and ethnically diverse, 2) They are

extremely independent because of divorce, day care, single parents, latchkey

parenting, and the technological revolution that they are growing up

alongside, and 3) They feel empowered; thanks to overindulgent parents, they

have a sense of security and are optimistic about the future.

The researcher, as a result of the sample in this study, will look specifically at

The Generation Y Cohort. The Generation Y Cohort is shaped by economic

prosperity and the Internet; aged 23 and under in 2000. The following are

traits often ascribed to Generation Y (Kotler, 2003:291):

Optimism and big expectations for the future

An obsession with achievement

Technologically savvy

Greater acceptance of racial and ethnic differences

Media savvy

Busy schedules

Higher levels of stress

A heightened ability to multitask

A strong sense of community and teamwork

A wish to make money, but a need to give back

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Emphasis on immediate gratification

Suspicious of advertising (Kotler, 2003:291).

Groups of people born within the same 20-year time frame are known as

generational clusters. These clusters encounter the same life experiences and

as such share common attitudes and traits (Kruse, 2002:212). Generation Y's

are often described as a free spending but hard to reach generation of 18 —

25 year olds with the wealthiest of its members being the 19 — 25 year old

margin that represent a significant opportunity for today's retailers (Martin and

Turley, 2004:464).

Kruse (2002:212) identified that Generation Y consumers have three

significant expectations: real-time access in the form of instant digital

gratification; personalisation in that these individuals are fully accustomed to

shaping their own digital worlds; and community in that this generation is

proficient at managing larger and more diverse social networks than their

predecessors.

2.3.5.1 Focus of Today - Youth: 16-24 Years

This group is more open to innovation and change than any other group (SA

Consumer Trends, 2006:1);

They are at the cutting edge of new trends which are often absorbed

into the mainstream later on

They are a market that is fast changing, so there is a continual need to

keep abreast of their shifting attitudes and behaviour (SA Consumer

Trends, 2006:1).

2.3.5.2 The importance of youth

SA Youth Market is unique; they follow some overseas trends, reject others,

modify what they see and incorporate all of this into a locally relevant package

(SA Consumer Trends, 2006:1);

The youth market is, on its own, an economically significant sector

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Current youth are learning about buying behaviour which they will carry

with them for much of their lives

While youth have certain values, life styles and buying behaviour of

their own, they are a reference point for many younger and older

consumers

Youth create brands at most, or at very least, gate keep existing

brands, in a manner which is acceptable for themselves (SA Consumer

Trends, 2006:1).

2.3.5.3 Marketing to youth

Youth marketing challenges the very way we think of marketing at a

fundamental level, and this is reflected in how we should be (SA Consumer

Trends, 2006:1);

developing and managing brands

styling and choosing techniques of communication

engage with them in a sensitive and insightful way;

draw on the understanding and experience of people close to the

market (SA Consumer Trends, 2006:1).

2.3.5.4 Meaning makers not meaning takers

Brands playing in this environment need to always remember that they are

targeting consumers who, in many cases are re-shaping brand meaning to

negotiate their own identities (SA Consumer Trends, 2006:1);

Brands that contribute to image need to allow consumers to co-create

meaning

These Brands need to be seen as a 'co-operative project' and

marketers need to create space for consumers to add their own

meaning and experiment

This process adds and deepens brand meaning (SA Consumer

Trends, 2006:1).

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2.3.5.5 Technology

Growing up in the age of technology, educational availability and parents who

want to give it all to their children has made the members of Generation Y a

product of their environment. Generation Y is the workforce of the future. A

few things to keep in mind (Kruse, 2002:212):

These kids are connected: technologically savvy, they are used to

using cellular telephones and the Internet as primary means of

communication.

They are career-minded: the work they do should mean something and

have importance to them personally and to their company.

They are confident: products of encouraged self-esteem and

educational opportunities, they believe they can do it all. Generation Y

will bring new ideas and values into the workplace. They are highly

educated, willing to learn, technologically savvy and motivated.

Understanding and being sensitive to the needs of these workers will

be the key factor in recruiting and retaining them. If you want them to

care about your company, show them that you care about them (SA

Consumer Trends, 2006:1).

Growing up in the age of technology has put a computer in the hands of

almost every child. They have understanding and knowledge of technology

and keep up quite well with its advances. Unlike past generations, the

technological advances in the past decade have put a multitude of choices at

the fingertips of Generation Y. The wealth of information available in seconds

from the Internet, hundreds of television stations to choose from and a

different shopping center every ten miles has given Gen Y members the

notion that if they do not get what they want from one source, they can

immediately go to another (NAS Insights, 2006:1).

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The uptake of cellphones is another form of accessing the internet — will these

become the true "personal" computers of the future? (SA Consumer Trends,

2006:1);

There is substantial growth in cellphone usage among the youth

In South Africa, the SMS component of cellphone use is showing rapid

growth to match global trends

The current school leavers were the first generation to grow up

e-mersed in technology. As Kids and Teens at home, they were

already the experts on the operation of all electronic and technological

devices

Being the authority on something so important has had a significant

impact on their self esteem and their position in the home

Computers govern their lives in an unprecedented way

Advantaged young South Africans have levels of technological

proficiency similar to their counterparts in developed countries

Rapid progress is taking place among the emerging black elite/middle

class (SA Consumer Trends, 2006:1).

Generation Y members have used computers since a young age and are e-

learners (Jorgensen, 2003:82). They live to be trained, enjoy the challenge of

new opportunities, seek work-life balance and like to be involved in decision

making (Jorgensen, 2003:82). Indeed, work-life balance is one of the top

priorities of graduating university students (Jorgensen, 2003:82).

Generation Y has "control" of the marketers, and will be able to obtain any

product desired. (Dias, 2003:43). Generation Y's have been acculturated into

a materialistic culture more so than other generations as a result of

technological innovations. It remains to be seen what Generation Y will grow

up to become. They are determined, motivated workers, and do not mind

fitting into the norm, unlike Generation Xers. Generation Ys have been

brought up in an era where shopping is not regarded as a simple act of

purchasing.

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According to Statistics South Africa's mid-year population estimates (2005:1),

the total South African population constitutes approximately 46.9 million

inhabitants, 51% of which are female, with an ethnic distribution of 79.4%

African, 9.3% White, 8.8% Coloured and 2.5% Indian/Asian.

Table 2.4 below indicates the number of South Africans, living in Gauteng,

who reside between the ages of 15 and 24, specifically congruent to the of

Generation Y members.

TABLE 2.4: POPULATION ESTIMATES BY GENDER AND AGE ON

GAUTENG

Age

Gauteng

Male Female Total

15-19 343 300 347 000 693 300

20-24 458 800 422 400 881 200

Total 802 100 769 400 1 571 500

Source: Adapted from Statistics South Africa (2005:20)

Born between 1980/1981 and 1995/2000, these people constitute the largest

consumer group in the history of the United States and represent the future of

most consumer brands.

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Demographics of the generation indicate that it is far more culturally diverse

than previous generations. Demographics of Generation Y's are summarised

below in Table 2.5:

TABLE 2.5: DEMOGRAPHIC CHARACTERISTICS OF GENERATION Y

Generation Y at a Glance

Ethnicity Generation Y is the most ethnically diverse generation to date One out of every three Generation Y members is not Caucasian sine out of ten children under 12 have friends outside their own ethnicity

Home One out of four lives in a single parent household Three out of four have working mothers The child is the center of the household

Money One out of nine high schoolers have a credit card co-signed by a parent Teens have an average of S100,'week disposable income airo of teens have a part-tune job

Connectisity Generation Y seems to be less cynical and more concerned with social issues than Generation X. although whether to act on those feelings is always a question '5..-90°6 have a computer at home 504 o have Internet access at home

Interaction They prefer directness over subtlety. action over observation and coolness over all else They are heavily influenced by their peers and the media Although technically advanced and saturated. they would prefer personal contact

Status They feel crunched for time. always in a hurry They have direction and brow 'ohm they want

Source: Adapted from NAS Insights (2006:3)

Trend 1 - Global Village

Travel, communication, the media and especially the internet have put

youth in touch with a whole world of different ideas, cultures, religions,

fashion, art and types of music, which they both relate to and aspire to

These greater levels of choice, freedom and social mobility will also

give rise to new, as yet unknown, forms of social differentiation

The internet and global media have shrunk the world so that the local

speed of uptake of media, movies, music, fashion is instantaneously

incorporated into lifestyles

However, the specific South African context with its melting pot of

cultures means that local youth display some particular characteristics

that distinguish them from their global counterparts

On the one hand, the youth absorb Western trends, but at the same

time fuse these with local traditions and cultural expressions to create

their own unique blend e.g. Kwaito music (SA Consumer Trends,

2006:1).

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Chapter 2

Trend 2 — E Mancipation: Interactivity & Customisation

The Generation Y cohort is information and media savvy; has a strong

work ethic, entrepreneurial spirit and sense of responsibility; is

comfortable with change; is paving the way to a more open and

tolerant society; is self-reliant and independent; blends collaboration,

networking and interdependence to achieve goals; has self confidence

and optimism about the future; values skill development and thrives on

mentoring/coaching; and is well educated (Dias, 2003:43).

The new generation of global youth signals the death of the couch

potato and the increasing influence of interactivity.

Interactivity has prepared this generation for a future of customisation -

soon they will be designing their own clothing, their own furniture, their

own cars etc.

The youth will be using their technological skills to transform the

workplace, the home and the world of the future (SA Consumer

Trends, 2006).

Trend 3 - The New SA Fusion

The Berlin walls which divided different cultural and racial groups in the past

are beginning to crumble and this is most apparent amongst young South

Africans (SA Consumer Trends, 2006:1);

This new generation is adopting a set of more common, altered and

negotiated values and attitudes - particularly evidenced in sport and

music.

High levels of social mixing are taking place in schools, campuses and

the work place (SA Consumer Trends, 2006:1).

Generation Y, being career and goal driven, prefer advertising to simply

explain the product features, with high quality, fast moving graphics, similar to

the lives they lead. They like advertisements showing people getting along or

fitting in (Dias, 2003:43). The most successful brands will adequately

represent the generational need to be individual, but also represent the time,

and the events of society. However, once any generation reaches a certain

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Chapter 2

age, needs are very similar, resulting in different advertising for each

generation, but similar products (Dias, 2003:43).

A company that can understand these differences will be able to create better

products that speak to generations and learn how to better advertise and

market to these generations. This generation is one of the most watched by

the media in recent memory (Howe and Strauss, 2000). They score high on

maturity and while their attitude is edgy, they are very optimistic, unlike

Generation X (Dias, 2003:43).

Trend 4 - Politicised, Not Political

Global & Local

Politics is in deep trouble all around the world — the young in the developed

world are basically ignoring it en-masse (SA Consumer Trends, 2006:1);

o In South Africa, with the struggle ultimately over, the youth see little

role for conventional politics other than a government that lives up to its

promises

o Deep disillusionment is setting in (SA Consumer Trends, 2006:1).

Trend 5 - Show Me the Money

As Generation Y members become upper-level students, their accrued

wisdom about money and its value often increases, indicating that they are

likely to be protective of their money and focused on the tangible benefits of

products (Martin and Turley, 2004:470). The significant objective consumption

motivation displayed by Generation Y's might also explain their lack of overly

positive attitudes towards the physical environment characteristics (SA

Consumer Trends, 2006:1).

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2.4 CONCLUSION

Having reviewed the literature, it is evident that brand loyalty is very dynamic,

and therefore has important implications for developing marketing strategies.

Consumer behaviour enables marketers to understand and predict consumer

behaviour in the marketplace; it also promotes understanding of the role that

consumption plays in the lives of individuals (Schiffman and Kanuk, 1997:18).

Analysis of the various stages of the consumer decision-making process

showed that the buying of consumer goods and major durable products are

much alike. Irrespective of the situation, consumer buying behaviour is the

outcome of rational considerations in selecting goods and services that fulfil

consumption goals (Cant et al., 2006:206).

Generation Y's represent a significant portion of the South African population

and as such, are being viewed as an extremely lucrative subset of the

country's total inhabitants. Their savvy and comfort in utilising various

technologies make these consumers more likely to exhibit online purchasing

behaviour than any previous generation. Generation Y, is a constantly

moving target; we have to immerse ourselves in it often and regularly to keep

up with it, so that we can ensure success in this critical and influential

segment (SA Consumer Trends, 2006:1).

One can therefore not take a generalized view, when one looks at specific

products, markets, individuals or groups of consumers. The next chapter will

focus on the sports drinks market.

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Chapter 3

CHAPTER 3

OVERVIEW OF THE SPORTS DRINKS MARKET - READY TO DRINK MARKET

3.1 INTRODUCTION

Beverages have always been a source of refreshment, but developments with

energy drinks and sport beverages are pushing the boundaries to include

fortification as well as physical and mental pick-me-ups. Almost two thirds of

consumers enjoy sport drinks in connection with sports activity, almost as

many regard to the products as "anytime" drinks. There is a definite increase

in impulse buying of sport drinks have crossed from the benefit-orientated

category into the refreshment area, where carbonated beverages can be

found (Vorster, 2006:1).

Another area to consider for the future of the category is the female market.

With weight loss issues becoming a hot topic again, the stage may be set for

an increase in woman's consumption of sport drinks, particularly those opting

to lose weight through exercise (Vorster, 2006:1).

According to (www.sportsdietitians.com ):

Sports drinks are very well researched and can definitely improve

sports performance when used properly.

Sports drinks provide carbohydrates and electrolytes.

The carbohydrates supply the muscles with fuel during sport.

The main electrolyte is sodium, which improves the flavour and

water absorption.

Sports drinks are best suited to endurance sports and high intensity

sports.

The best sports drink depends on personal taste preferences and

individual tolerance. Sports drinks are intended to cater for the

majority of exercise needs most of the time but will not meet every

individual's needs. When undertaking unusual sports or extreme

Page 56

100.0% --

90.0% -

80.0% -

70.0% -

60.0% -

50.0% -

40.0% -

30.0% -

20.0% -

10.0% -

0.0% 1 11 11111 77.9% 22.1% 92.0% 012mm Jul06 7.8% 45.7% 42.0% 79.2% 42.7% 41.6% CI 12mm Jul07 20.7% 93.8% 6.1%

80.4% la 6mm Jul07 41.6% 41.7% 6.1% 93.8% 19.6%

81.6% 18.4% 0 May07 42.0% 39.7% 6.0% 93.9%

77.0% 0 Jun07 93.6% 41.4% 39.0% 6.3% 23.0%

73.0% CiJul07 91.7% 27.0% 39.9% 40.0% 8.3%

ENEROADE POWERADE

CONCENTRATE

(CLIFTON

POWDER

ENEROADE POVVERADE

RTD

GAME

Chapter 3

exercise, it is best to discuss drink choice with a sports dietician

(www.sportsdietitians.com ).

According to Infocy (2007:3), both the ready to drink and concentrate

subcategory are dominated by Powerade and Energade's market share.

Figure 3.1 illustrates:

FIGURE 3.1: VOLUME OF SPORTS DRINKS BY SUBCATEGORY

DEF. RETAILERS Brand Volume% (UC) Of Total Sports Drinks By Subcategory

DEF. RETAILERS SH6PP.ITE. HE( NERS. _HE4. KERS HYPERS. NIPS. PDPF. PDPH. Pf4P1,1

Source: Adapted from Infocy (July 2006:3)

According to Hehir (2007:8), the USA has the highest number of new products

by country in the sports drinks category, while South Africa has the third

lowest. Figure 3.2 illustrates:

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FIGURE 3.2: GLOBAL SPORTS BEVERAGE LAUNCHES OVER PAST

DECADE

.„, Global beverage sub-category

ORO launch corn • arison — • ast 5 ears

\ umber of New Products by Sub-Category

C.,,, -h;:n iron nrs.1 Corvika 40 HI

1,1,41'11M -.+ tt vrolf roil t It 01-,

t Number c \ew 75roclacte:

. '''''..-14Ti`g'. ,;:;:il.,-,-,-,, - ■ :.; .

Mc -....4,a,, C.- cc r,,, - :,:):,

— 4-.1 71 1,1r.m; Tr. - .17 4C.

-- -Vat,:cr 7_ri7c

Source: Adapted from Hehir (2007:8)

Although SA has the third lowest number of sports drink launches, the past

decade has seen a significant increase in the number of sports beverages

launched in SA (Hehir, 2007:9). Figure 3.3 illustrates:

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South Africa — sports beverage launches in past decade goo

Number or Ncv., P,7odLct'3 by Dalt Published

Chapter 3

FIGURE 3.3: SOUTH AFRICA SPORTS BEVERAGE LAUNCHES IN PAST

DECADE

Source: Adapted from Hehir (2007:9)

3.1.1 MANUFACTURERS

The sports drink market is traditionally a difficult one within which to compete.

Barriers to entry are high, with a great deal of competition. Powerade and

Energade are currently the biggest two players in the South African market,

with other brands occupying smaller market share. USN is a new entrant with

a market share that is continuously growing.

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Chapter 3

To put this research into perspective, it is important to consider the

competitive landscape in the sports drinks market. The major manufacturers

of sports drinks in South Africa are displayed in Table 3.1:

TABLE 3.1: SPORTS DRINK MANUFACTURERS

Sports Drink Manufacturers

MANUFACTURERS

Tiger Brands (bought Bromor Foods in 200E.)

I

— 2006/2007

pirpl Clifton

Energade

Energade Crush

Energade !ce

Energade Megaload

Game

Clover Sportsade

Coca-Cola SA Powerade

Powerade Balance

Frucon Food and Beverage co. Sprint

GlaxoSmithKline Lucozade

Liquid Taste Adventures I Edge Sports Drink

U-Go Beverages l Top-Go Sports Quencher

USN Dynamic Ener•

Lean R

?..!oc.lworths Isoactive

Source: Adapted from BMI Foodpack (2006:14)

As indicated above, there are a number of sports drinks brands available in

the SA market. For the purpose of discussion, the focus is on the top three

sports drinks beverages in SA market with the greatest market share.

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Chapter 3

Table 3.2 below focuses on the top three sports drinks beverages in SA, this

indicates the positioning and product attributes of the top three sports drinks

beverages in SA, as discussed next:

TABLE 3.2 COMPARISON OF SPORTS DRINKS BEVERAGES IN SA POWERADE ENERGADE Dynamic EnerG

Manufacturer The Coca-Cola Company

Tiger Brands (bought Bromor Foods in 2005)

USN

Claims Low Calorie Fast acting carbohydrates Electrolytes Affordable Various flavours

Delivers an effective and rapidly available source of carbohydrates and electrolytes to help replenish fluids and minerals lost through sports and exercise

DSM Nutritional Products Is high in vitamin B and helps the body to convert food into energy and to transform fats and carbohydrates into energy. The product also contributes to a healthy nervous system.

Features No other sports drink gives you more energy or potassium than Powerade. Quality push/pull nozzle.

Energade has been designed to taste great throughout, allows drinking and benefiting, however long the activity lasts. Quality push/pull nozzle.

Recent entrant to the sports drinks market in South Africa is Ultimate Sports Nutrition (USN). USN launched Dynamic EnerG sports drink in a 600m1 plastic bottle.

Benefits Potassium is an electrolyte which helps replace lost fluids.

The Energade Sports Performance range was therefore developed to deliver a rapidly available and effective source of carbohydrates and electrolytes to replenish these lost fluids and minerals - before, during and after activity.

Dynamic EnerG provides working muscles with the optimal amount of carbohydrates to: increase absorption, sustain endurance, and speed up recovery following training. Dynamic EnerG's taste profile encourages fluid replacement, which prevents dehydration — The most preventable performance injury

Points Of Difference

Replenishing sports beverage, developed by Sports Scientists in the USA to be the best possible hydration and recovery.

Energade - South Africa's No. 1 sports drink - was developed and tested in conjunction with Professor Tim Noakes (Sports Science Institute) and Dr John Hawley of the University of Cape Town's Bioenergetics Exercise Research Unit, Medical Research Council

Not only does EnerG replace the fluids lost through perspiration, it also replaces electrolytes, essential for maintaining peak performance and preventing cramp. Dynamic EnerG's carbohydrates are derived from maltodextrin (a long chain glucose polymer) and fructose, ensuring a low glycemic index and stable blood sugar levels. Dynamic EnerG does not contain sucrose.

Flavours Mixed Berry Naartjie Orange Blueberry Grape Lemon Lime Tropical

Blueberry Naartjie Orange Lemon Lime Exotic Fruit Raspberry Cherry-Grape

Source: Adapted from (www.powerade.com , www.energade.co.za , www.usn.com)

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According to Robertson (2007:15), there are four key success factors in the

sports beverage market. The figure below illustrates:

FIGURE 3.4: KEY SUCCESS FACTORS

SPORTS BEVERAGES - Four key success factors

Lit style reed Perception as food

Added value ..Worth its money!"

Convenience

Claim guaranteed. Sufficient Info to meet simple consumer logic! How much? How often? For how long?

Cmdlbility Brand to be associated with health!

Knowledge Awareness

„What Is the ingredient doing In this product?" Adverse effects?

Source: Adapted from Robertson (2007:15)

3.1.2 PACKAGING TRENDS Package innovation is one of the most difficult, but most visible, investments

beverage companies can make (Beverage Industry, 2004:2). On-the-go

consumers drive beverage packaging trends: consumer convenience and

distribution flexibility shape packaging directions for ready-to-drink beverages

(Beverage Packaging, 2001:1). Competition among beverages is tougher

than ever.

Innovation in packaging will get a product noticed, it will help build the brand,

and it will give the product some personality. Whether one likes it or not the

product is initially going to be judged by the packaging (Hehir, 2007:9).

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3.1.2.1 Industry packaging Trends and Characteristics

According to Hehir (2007:3), the latest top global trends include:

Vitamin/Mineral Fortified, Flavours, Protein, Packaging, consideration of

young athletes and low in positioning. Figure 3.5 illustrates:

FIGURE 3.5: LATEST TOP GLOBAL TRENDS

Source: Adapted from Hehir (2007:8)

Trend 1 — Packaging According to Hehir (2007:4), the bottle package type has the highest number

of new products in the sports drinks category, followed by cans. Many

sportspeople freeze drinks before their training/competition, allowing it to thaw

over that time. Bottles often burst/crack in the freezer. Hehir (2007:5)

continues to state that plastic package material type has the highest number

of new products in the sports drinks category, followed by metal.

According to Hehir (2007:6), the 500m1 pack size has the highest number of

new products in the sports drinks category, followed by 600m1. Figure 3.6

illustrates:

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5.:PO 5, rrd - 2Pn

4,4e. 31, 2-;

- - 1 .00 AA 32

05 4 .47 - 35

rra - 3E

—330.01} ml -17

rino on - 75 -1

'Dumber of New Products by Pack Si7e (Nun - ber o' New Productsi

SO 00 1•.a 1:1 , 4 Ifs. 1.'9. -

4 r:i rrs1 - 1171.

Chapter 3

FIGURE 3.6: PACKAGING TRENDS - PACK SIZE

Source: Adapted from Hehir (2007:8)

Packaging innovation has improved the functionality and flavour innovation

has brought new flavours into the range, improving on shelf impact, satisfying

consumer taste patterns and ultimately encouraging trial (energade.co.za ).

Trend 2 - Variety of Flavours According to Katz (2006:1), fruit flavours also are gaining popularity due to

new-found links to health and their renewed emphasis in last year's Dietary

Guidelines for Healthy Americans.

Other fruits (and their flavours) also are benefiting from the public's increased

understanding of antioxidants. In addition to being rich in antioxidants, acai is

a fruit that is high in fiber, anthocyanins, minerals and vitamin E. It's showing

up in functional beverages, nutritional bars and smoothies (Katz, 2006:1).

Sweet tastes will naturally produce powerful and pleasant emotions, while

bitter tastes will elicit the opposite response. Most sweet fruit flavours are

universally liked and when sweet is mixed with sour or bitter, such as with

citrus fruit flavoured drinks of coffee (Vorster, 2006:1).

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lit- WA -emu to-r10.1:::" - -C4crut. •as

co _ - aa —Aputr, 40

- ifl

--Pruit

— 14tu E;itt,staiutt - 57

Fruit flavours continue to dominate

Ji.xiber Product's by Flavo -Jr Any IN -Jr-ibe , of New Products)

Chapter 3

Sours has been extremely successful as flavouring agent in the last decade,

but that quality is found more in some regions or ethnicities than others

(Vorster, 2006:1).

According to Hehir (2007:7), fruit flavours continue to dominate the number of

new products by flavour. Figure 3.7 illustrates:

FIGURE 3.7: TOP 10 GLOBAL FLAVOURS - PAST 5 YEARS

Source: Adapted from Hehir (2007:8)

Hehir (2007:11), further states that:

Citrus dominates in the RTD sports beverages.

Citrus masks unpleasant taste of some ingredients.

Protein powders and meal replacers and shakes are still dominated by

variants of vanilla, chocolate, strawberry, toffee, caramel etc. (Hehir

2007:11).

Sports drinks with added protein are conspicuously absent. Fruity flavours

remain the top flavours (Robertson, 2007:15). According to

(www.sportsdietitians.com ), flavour is an important feature of sports drinks.

The more you enjoy the flavour of a drink, the more you drink.

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Chapter 3

According to Jones-Dille (2007:1), fruit flavours are the most favoured for

functional beverages. In these drinks, a "true to fruit" profile is essential.

Consumers expect healthy products to taste natural and fresh, and the

flavours should truly complement the functional ingredients used in the

product.

According to De Swardt (2005:1), with Powerade you have it. The various

flavours ensure that you will find your ideal taste and allow the required

variation.

Citrus flavours and astringent berry flavours work especially well with

antioxidant fortifications. These flavours blend nicely with the acidity that is

inherent in vitamin C and other antioxidant ingredients. Another alternative is

to pair a citrus flavour with a less acidic, milder fruit to create a tropical-type

flavour blend (Jones-Dille, 2007:1).

Trend 3 - Nutrition Increasing consumer interest in health and nutrition places particular

emphasis on the nutritional properties of products as determinants of

consumer demand (Baltas 2000:709). In this respect, nutrition labelling

provides a channel to demonstrate the nutritional properties of products and

an incentive to improve the nutrient content of those that fail to meet

consumer requirements in target markets. Differential advantages can be

achieved by providing overall superior nutritional quality or exhibiting a unique

nutritional profile.

The information provided in the label can also support communication

programmes based on health or, more generally, diet-related claims targeted

to certain consumer segments. For example, high values in ingredients such

as fibre and folic acid have helped cereal brands to become instantly

recognized and differentiated from the competition. Additional benefits may

stem from interactions of nutritional profile with other perceived attributes such

as taste and quality (Baltas 2000:709). Interest in sport has increased greatly

over the last decades. The science of nutrition in relation to sports

Page 66

Top 10 global "food"/nutrition claims —past 5 years

gam 11

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Chapter 3

performance has progressed and we now have a better understanding of the

relationship between diet and physical performance (Hassapidou, 2001:31).

According to Hehir (2007:11), vitamins/mineral fortified have the most number

of new products under food and drink, followed by low calorie. Figure 3.8

illustrates:

FIGURE 3.8: TOP 10 GLOBAL "FOOD"/NUTRITION CLAIMS-PAST 5

YEARS

Source: Adapted from Hehir (2007:11)

Nutrition labelling is intended to enable informed consumer choice, raise the

demand for healthier food products, encourage competition on nutritional

quality, and stimulate development and production of goods with improved

nutritional properties (Pirouznia, 2001:62).

Trend 4 - Labelling

The benefits of consumer information in general and labelling in particular are

clear. For the consumer, it provides the means for the operator to pass on

essential information about products (use-by dates, safety warnings, etc.) as

well as information which, whilst perhaps not essential, is considered useful

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(nutrition labelling, recycling details, etc.). As such, the label has the role of

allowing the consumer to make an informed choice at the point of sale about

whether to purchase a product and, if they do so, to consider how best it

should be used (European Communities, 2006).

Should nutrition labelling be mandatory? Some consider this to be

essential in order to increase consumer use of such labels, although

some consider that the latest research shows that this labelling is very

little used. If it is felt that mandatory labelling is useful, its introduction

could adversely affect some businesses, especially smaller ones, who

would find it hard to bear the costs. However, ways of minimising

these, such as longer implementation dates, derogations for short

production runs or low turnover businesses, providing tools or guidance

to help implementation, could be considered (European Communities,

2006).

Where should the nutrition label be put? Evidence suggests that

simplified front of pack labelling ('signposting') may offer significant

advantages in terms of increasing consumer use (European

Communities, 2006).

How important is presentation of the information? Consumers

often complain that nutrition labels are poorly presented, making them

difficult to use. In particular concern is expressed that the labels

contain too much information and the type size is too small (European

Communities, 2006).

Determinants of label utilisation

Several studies report that consumers want on-pack nutrition information and

make unfavourable inferences about the nutritional properties of products

lacking such information. However, an important issue is the extent to which

consumers actually gather on-pack nutrition information; in other words, use

the label (Baltas 2000:708).

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Nutrition-related advertisements may have a positive effect on awareness of

diet-health relationships and purchase behaviour (Baltas 2000:709). Keller et

al. (1997) find that consumers rely more on nutrition information than on

claims when both are available. Nutrition information is seen as more credible

and people may use it to check the veracity of claims.

Baltas (2000:709) finds that consumers' beliefs about food products differ

when consumers are exposed to health claims on labels that include nutrition

information versus when consumers are exposed to claims on labels that do

not include nutrition information. The use of claims may also be related

positively to the use of nutrition labels because some consumers tend to use

all information readily available to them (Baltas 2000:709). One may

conclude that use of claims and use of nutrition labelling are correlated over

people in the sense that information-seekers usually look at both (Baltas

2000:709).

Although consumers increasingly look at labels, their understanding of

nutrition information is a major issue (Baltas 2000:709). It appears that while

consumers claim extensive label usage and general understanding of dietary

matters, they are often confused by technical terms miscalculate nutrient

intake (Baltas 2000:709).

Nutritional labelling and purchase behaviour

In the UK, more than 80 percent of surveyed individuals claim that they look at

labels and that label information affects their purchase decision (Abbott,

1997). Most consumers also use information on nutrition labels the first time

they purchase a product and this then becomes a source of new knowledge

they can draw on in subsequent purchases (Baltas 2000:709).

According to Brown, Mcllveen and Strugnell (2000:230), many young

consumers whilst being aware of nutritional information and potential

implementation, may indeed be very hesitant in actually putting the theory into

practice. This must not be underestimated in the continued pursuit of a better

diet and/or lifestyle for tomorrow's adult consumers. There remains a

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significant "gap" between young consumers' nutritional knowledge and their

ability to implement such knowledge into the reality of their daily food

behaviour. Unfortunately, such food preference behaviour presents

challenges for future nutritional awareness campaigns (Brown et al., 2000).

Nutrition labelling standards

Where on-pack nutrition information is provided, it should include energy,

protein, carbohydrate and fat or all the former plus sugars, saturates, fibre and

sodium. In addition, nutrition labelling may include data on starch, polyols,

mono-unsaturates, polyunsaturates, cholesterol and listed minerals and

vitamins (Baltas 2000:709).

By disclosing nutrition composition, mandatory labelling intensifies

competition on nutritional quality. Even if only a segment of the population

uses nutrition labelling, this may be sufficient to induce product changes by

manufacturers who wish to increase market share by selling to information-

seeking consumers (Baltas 2000:709). Truthful producer claims may increase

consumer awareness and interfirm competition on nutritional quality, leading

to improved consumption and production patterns (Baltas 2000:709).

Consumer views of labelling practices

According to Humphries (1998:193), common labelling practices were found

to be misleading consumers:

the small print;

the half truth;

the hidden truth;

the bluff;

rose-tinted spectacles;

weasel words;

the illusion (Humphries, 1998:193)

According to EU Labelling Regulations (EuroFIR, 2006:1), the current

legislation requires that information is easily visible, clearly legible and

indelible. Pre-packed foods are also required to make a number of mandatory

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declarations (see Table 3.3). Additional information, also listed in Table 3.3,

can be provided voluntarily, so long as the information is accurate and not

misleading. Provision of nutrition information is voluntary unless a claim is

made on pack, in which case full nutrient labelling (the big 8, namely energy,

protein, total carbohydrate, sugars, total fat, saturates, fibre and sodium)

becomes mandatory.

TABLE 3.3: THE MAIN FOOD LABELLING REQUIREMENTS AND

EXAMPLES OF INFORMATION THAN CAN BE PROVIDED BY FOOD

MANUFACTURERS Mandatory food labelling requirements Voluntary* information sometimes provided

Name Nutrition information (if no claims made)

List of ingredients Nutrition signposting

Quantity of certain ingredients (QUID) e.g. pork (10%) Guideline Daily Amounts

Net quantity (weights & measures) Claims such as 'no artificial additives'

Date of minimum durability ('best before' or 'use by') Graphical and pictorial information

The name and address of manufacturer/ packer/ seller Vegetarian/ vegan labelling

Place of origin (if failure to do so might mislead) May contain (e.g. nuts) labelling

Instructions for use (if failure to do so might mislead) Assurance schemes

Allergen information (in the ingredient list) Method of slaughter (e.g. Halal)

Alcoholic strength by volume (drinks over 1.2% only) Free range e.g. eggs

Sweeteners labelling Environmental impact e.g. dolphin friendly

Polyol warning ('excessive consumption may produce a laxative effect) Country of origin (where not required)

Packaging gases ('packaged in a protective atmosphere') Quality type claims e/g/ '100% chicken breast'

Raw milk labelling Special offer competitions

GMO labelling Production methods (e.g. organic)

Nutritional Panel (where a nutritional claim is made, e.g. low in fat) Brand information

* Based on information provided voluntarily in the UK

Source: Adapted from EuroFIR (2006:1)

Labelling policy must be dynamic if it is to keep up with modern technology

and meet the increasing needs and demands of consumers (Humphries,

1998:193).

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How to Read a Sports Drink Label

Each ingredient in a sports drink (carbohydrate, water, sodium and

potassium) performs an important function. The Nutrition Facts label is a tool

to help consumers choose food products based on their nutrition composition.

The label is designed to provide the nutrient content of select nutrients per

serving. The nutrients listed on the label include: total fat grams, saturated fat

grams, trans fat grams, protein grams, total carbohydrate grams, fiber grams,

sugar grams, sodium milligrams, percent of the Daily Value of calcium,

vitamin A, vitamin C and iron (Walters, County and Kochert, 2007:36).

Besides the nutrition label there is also an ingredient list on food labels. By

law food companies have to list the ingredients in descending order by weight.

The most abundant ingredient is listed first, then the second and so on

(Walters, County and Kochert, 2007:36).

Trend 5 - Vitamin/Mineral Fortified Some beverages marketed as sports drinks have other added ingredients eg

vitamins, minerals, protein and herbs. Currently, there is little evidence to

support the addition of substances other than carbohydrate and electrolytes.

The extra ingredients tend to increase the price and often have adverse

effects on flavour (www.sportsdietitians.com ).

Sports drinks include the electrolytes sodium and potassium. Some also

include magnesium, although there is no evidence that this improves sports

performance. Sodium stimulates the absorption of both carbohydrate and

water from the small intestine. It stimulates thirst receptors, so you are

encouraged to drink more and hence replace fluids faster

(www.sportsdietitians.com ). Sports drinks use glucose, glucose polymers,

sucrose and fructose as a carbohydrate source (www.sportsdietitians.com ).

According to Hehir (2007:11), people often mix sports drinks with additions

e.g enzymes, amino acids, creatine etc. Hehir (2007:11) also states that

packaging solutions will address this, because many of these ingredients

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added are not stable in liquids for very long. There is a need for continuous

consumer awareness of benefit of adequate vitamins/minerals in the diet.

Also, lack of vitamins/minerals and salts can hinder performance.

Trend 6 - Low in positioning

According to Hehir (2007:11),"low positioning" statements have become

convincing to consumers the following are often used by sports drinks

manufacturers to communicate value for their products:

Low Sodium, due to links of high intakes of sodium with blood pressure

and other cardiovascular conditions

Low Calorie, Low Sugar, Low fat, Low Carbohydrates, consumers want

to replace lost micronutrients, electrolytes and fluids, not the energy.

Trend 7 - Protein

According to Hehir (2007:11), athletes and bodybuilders have increased

protein requirements to build and maintain muscle. There is a highlight on

protein in the diet, and by having a protein enriched drink, consumers can

track more accurately their protein intake.

3.1.2.2 Global Trends - Forecast/Predictions

Hehir (2007:11), has identified the following predictions for the future of sports

drinks:

Sports Drinks are likely to offer more supplementation with electrolytes,

amino acids, minerals and vitamins.

Products low in sodium, sugar, calories, and fat are likely to increase

for diet-conscious consumers.

Companies are likely to experiment with innovative ingredients, such

as easy-to-digest protein, specific carbohydrate to protein ratios for

different kinds of exercise, with potential to supplement for specific

forms of exercise, relative to the ratio of stamina and strength needed,

ensuring customised optimal nutrition.

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Products could become more natural or have 'more natural credentials'

communicated more clearly on pack.

Sports Drinks for children seem a likely alternative to more fatty and

sweet offerings such as milk mix drinks, carbonated soft drinks, or juice

drinks.

Packaging is likely to focus on portability; children's products could be

packaged so they fit easier into lunch boxes (Hehir, 2007:11).

3.1.2.3 Primary Packaging The South African sports drink market currently comprises three different

sectors:

Liquid concentrated format: available in 1 Litre plastic bottle

Ready to drink format: available in plastic bottles, carton and

glass

Powder concentrate format: available in sachets and metal cans

Demand for 500m1 - 600m1 Litre packs in 2006 accounted for 64.6% and is

estimated to show some positive growth in the future

The 500m1/600m1 pack range grew well to constitute 64.6% of total volumes

sold during 2006. This pack size category is well suited to the on-the-go

convenient demands of this market. The pack size also proves popular for

promotional campaigns at sporting and other events (BMI Foodpack,

2007:27).

3.1.2.4 Plastic Plastic constituted 91.6% of total sports drinks market volume in 2006. It is the

most dominant form of packaging within the South African sports drinks

market. (BMI Foodpack, 2007:28).

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In 2006, the 500 ml/600 ml pack size is convenient for on-the-go consumption

and at sports events. Overall plastic packaging is anticipated to grow by 4.1%

in 2007(BMI Foodpack, 2007:31).

According to Stewart (1996:169), plastic "PET" is lightweight, with strength,

clarity and is easily molded. Compared to glass, there is a loss of carbon

dioxide through bottle walls which must be allowed for.

3.1.3 OUTLET DISTRIBUTION Sports drinks are products that are designed to re-hydrate and replenish the

minerals lost by athletes during sporting activity. The very nature of sports

drinks dictates that they should be available where people are taking part in

sporting events (BMI Foodpack, 2007:15).

According to Neves, Zuurbier and Campomar (2001:58), distribution builds

stable competitive advantages, since marketing channels have a long-run

character and to build them it is necessary to have a consistent structure; and

due also to the fact that they are focused on people and relationships.

Retail remained dominant across all channels with top-end representing

31.1% of the 48.8% of overall volume sold through the retail channel during

2006. Wholesale saw a share decline in 2006 to constitute 9.9% from 10.6%

in 2005, while garage forecourts demand saw an increase from 2005 to

represent 16.8% during 2006. On-consumption demand declined by 0.6% in

2006 to represent 24.5% of total volumes sold during 2006 (BMI Foodpack,

2007:2).

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Outlet Distribution of Sports Drinks — 2006

r.Outlet___ • &Ilion Litres % of Total

Top-End Retail 24.5 31.1%

Bottom-End Retail 13.9 17.7%

Wholesale 7.8 9.9%

Garage Forecourt 13.2 16.8%

On-Consumption 19.3 24.5%

Total 78.7 100.0%

Source: BMI

NOTE: Reconstituted Volume

Chapter 3

According to ABI Module (2003:23), channels are referred to as a grouping of

customers that have similar marketing characteristics. Channels basically

group customers that have similar product offerings and methods of selling to

the consumer. Table 3.4 illustrates:

TABLE 3.4: CHANNEL DEFINIITONS Wholesalers Wholesale chains i.e. Makro, independent wholesalers

Top-End Retail Retail including hypers, supers

Bottom-End Retail Bottom end outlets such as convenience, general dealers, liquor stores

Garage Forecourts Includes outlets linked to garages shops, Woolworths forecourts

On-Consumption Restaurants, hospitality and pubs, at work, recreational

Source: Adapted from ABI Module (2003)

The outlet distribution of sports drinks in South Africa during 2006 is displayed

in the Table 3.5:

TABLE 3.5: OUTLET DISTRIBUTION OF SPORTS DRINKS

Source: Adapted from BMI Foodpack (2007:15)

According to BMI Foodpack (2007:15), top-end retail and on-consumption

outlets have the highest outlet distribution.

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3.1.4 NEW PRODUCTS AND PROMOTIONS Bromor Foods, manufacturers of Energade sports drink, extended their range

by introducing a low calorie sports drink. Bromor Foods has since being

bought by Tiger Brands Limited during 2005. Various sports activities are

sponsored by players in the sports drinks market create awareness and drive

consumption of their products and also because consumers involved in

sporting activities are their primary target market.

USN — Ultimate Sports Nutrition - has introduced a new sports drink, Lean R.

Lean R is packaged in a unique 600m1 PET bottle and is said to aid weight

loss when used in conjunction with an eating plan. It also claims to aid weight

loss during exercise. In addition, USN has launched a range of sports waters,

giving maximum energy while assisting with weight management (BMI

Foodpack, 2007:20).

3.1.5 CONSUMPTION PER CAPITA The table below and overleaf indicates the per capita consumption per year of

sports drinks by the South African market; the per capita consumption is

expected to grow significantly (BMI Foodpack, 2007:21). Table 3.6 illustrates:

TABLE 3.6: HISTORICAL SA PER CAPITA CONSUMPTION PER YEA

Historical SA Per Capita Consumption per year

Year

2002

COMUmptice (MIlilion Litres)

63.9

pit .1$ rl (Whom)

45.8

titres per Capita

1.4

Per Colman

2303 65.3 46.2 1.4 2.9%

2304 69.5 46.6 1.5 3.9%

2305 73.0 46.8 1.6 4.6%

2006 78.7 47.1 1.7 7.1%

Source: BP.Ii

NOTE: Reconstituted Volume

Source: Adapted from BMI Foodpack (2007:21)

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% incidence of

Wagq LSM 1 4.9%

LSM 2 13.0%

LSM 3 15.4%

LSM 4 20.3%

LSM 24.0%

LSF.1 28.9%

LSM 7 28.8%

LSM 8 22.5%

LSF.1 9 25.3%

LSM 10 28.4%

Incidence of Usage of Sports/Energy Drinks by LSM Group-2006

Source: SAARF AMPS:D

Chapter 3

Table 3.7 highlights the incidence of usage of sports and energy drinks by

LSM group in the South African market, the higher the LSM, the higher the %

incidence of usage (BMI Foodpack, 2007:21):

TABLE 3.7: INCIDENCE OF USAGE BY LSM GROUP

Source: Adapted from BMI Foodpack (2007:22)

3.1.6 Historical Average Retail Selling Price The average historical retail selling price of sports drinks are indicated in the

table below. The average price is expected to increase significantly. The

previous LSM data indicated that the higher the LSM, the higher the % of

incidence of usage. Price plays an important role in affordability by LSM (BMI

Foodpack, 2007:25). Table 3.8 illustrates:

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TABLE 3.8: SELLING PRICE PER LITRE OF SPORTS DRINKS

Average Historical Retail

Year

2001

Selling Price

RSP

R 7:9.

per Litre of Sports

I Chari*p__ . .a. _.,.._ ........a. ,...umore

Drinks

2002 R 8.• 11.4%

2003 R 9.3 .5.2?i,

2004 R 9.8 5.4%

2005 R 10.3 5.5?i.

2006 R 10.9 4.8%

Source: BM

Historical Annual-Retail Selling iPrice of Stiotis.Drinks

-7; 2 z: 5 OD 2 &.

:5

g II: OD

6.131 10.30

:035 .---

- 14 0%

1: tr;

6.C%

T.%

E.80 -.-

E

i : t —

'

2:C1 2:C2 --C's :C.:4 2CC5 :008 Year

BM - =I RSP •=0='% Change p.a.

Source: Adapted from BMI Foodpack (2007:25)

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Chapter 3

3.1.7 GROWTH PROSPECTS The forecast growth for the South African sports drink market is displayed in

the table and graph below. The category is expected to grow, with growth

being led by RTD (BMI Foodpack, 2007:26). Table 3.9 illustrates:

TABLE 3.9: SPORTS DRINK GROWTH FORECAST

Sports Drink Growth Forecast (Million Litres)

rz ,: .. „zilop._, „,„,..„,„ ,„..9.,..,.„., ,a0mi ---m, , Ready :c, :rir k f 3.!

Cor ae-cra:e, and Powders 22.1

c•. 5°.b 1A V: f3.7

-2 2 ,4 4 .0% 2:2

TOTAL 78.7 4./..% 81.9 2.14:: 69.0

Source: MI

NOTE: Reconstituted Volume

Forecast Production of Sports Drinks in South Africa

'Avera^e. Gro'.vih par ArIP urn

ICC :-,

2C C

tO C ..,.

he

C :

120._ 1

85 89.0 872 63.6 .4 78.7 61 9

,.

:::!. :2•27;40 2::E%f) 2032;f: I: : C4f) 23111f1

Year tii Mi

NOTE: Reconstituted Volume

Source: Adapted from BMI Foodpack (2007:26)

Page 80

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Product PrIc.2 Yericy I 1 Fie..cci

1 CLtat ::: 1315,ximIE Dumign A"cf,vaicEs FeicrAL.In Payre.r. peritcl F4i-pznr; -vim CrEel. lemes oackRoria 8arrvel3S

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Chapter 3

3.2 INDUSTRY TRENDS DEFINED BY THE MARKETING MIX

CONCEPT

The marketing mix is the set of controllable, tactical marketing tools that the

organisation blends to produce the response it wants in the target market.

The marketing mix consists of everything the organisation can do to influence

the demand for its product. These can be collected into four groups, as

displayed in Figure 3.10 of variables known as the "four Ps": product, price,

place, and promotion (Kotler and Armstrong, 2001:67).

FIGURE 3.9: THE FOUR PS OF THE MARKETING MIX

Source: Adapted from Kotler and Armstrong (2001:67)

3.2.1 PRODUCT

Product means the goods-and services combination the company offers to the

target market (Kotler et al., 2001:67). Aspects of product are illustrated in

Figure 3.8. Members within the industry claim that the basic sports drink is a

commodity. A commodity is a product presumably so basic that it cannot be

physically differentiated in the minds of consumers (Keller, 2003:13). In the

sports drink market, the difference appears to lie in the "packaging" created by

the different brand manufacturers.

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Consumer's view and respond to the shape of the package, the recognition of

the brand, the colour and the words, and the graphic style and format and

instinctively conjures up an image of the product (Meyers and Lubliner,

1998:1). Packaging involves designing and producing the container or

wrapper for a product, and, innovative packaging can give a company an

advantage over competitors (Kotler and Armstrong, 2001:67).

According to (Melamdowitz, 1993:80) without the labelling and packaging,

many products look the same. Easy grip handle feature on plastic bottles

provides better leverage. The 500m1 pack size sports drink constitutes 64.6%

of total market volume in South Africa. Convenience offered by the push-pull

lids and reusability of these bottles has added to the popularity of this pack

size and secured its place as a favourite with consumers in this category (BMI

Foodpack, 2007:3).

If brand distinctiveness is known to the customers, social visibility of certain

brands is meaningful, increasing product prestige (Melamdowitz, 1993:80).

Aaker and Joachimsthaler (1999:9) contend that, whenever a clear and strong

brand identity is lacking, a brand is like a ship without a rudder.

Winning in the marketplace means being able to deliver beverages where,

when and how consumers want them. Packaging is playing a key role in

expanding both the audience and distribution of spirits, wine, soft drinks, beer,

milk, water, tea and juice drinks (BMI Foodpack, 2007:19).

Today, packaging helps beverage marketers meet three crucial needs:

Deliver consumer convenience.

Gain distribution.

Assure production efficiences (Neves et al., 2001:518)

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Product - Packaging Innovation

Beverage sales begin and end with a satisfied customer. Nothing pleases

busy consumers as much as timesaving, convenient packaging. Recent

packaging solutions include:

TABLE 3.10: PACKAGING SOLUTIONS Proliferation of single-serve sizes

This changes the point of consumption, making grab-and-go portion packaging essential to meet consumer needs. The amount of product in a single-serve package varies depending on the target customer and the venue.

Switch to plastic Plastic bottles continue to find new applications. Reclosable The switch to plastic containers also triggers the change from metal caps to

plastic closures, which may cause a product quality and freshness issue. As one closure manufacturer explains, "There's not a plastic closure available today that can compete in oxygen barrier with metal closures." Barrier closure liners or composite metal/plastic closures are two possible solutions.

Multipack options The increase in single-serve containers has also spurred growth in multipacks. Consumers like the convenience of multipacks for their single-serve beverages. They can buy economically in bulk yet still grab one bottle and run.

Shapes Unique or unusual container shapes catch the customer's eye. Package differentiation helps connect with consumers on an emotional level.

Handles/grips on larger

sizes

For carrying convenience and better control for pouring, larger beverage bottles creatively incorporate grip indents and/or handles.

Hygienic concerns The number of health and wellness drinks has exploded within the last year. In this, and other categories, consumers continue to choose clear, °clean° containers.

Source: Adapted from Hehir (2007:8)

3.2.2 PRICE

Price is the amount of money customers have to pay to obtain the product

(Kotler and Armstrong, 2001:67). Aspects of pricing are illustrated in Figure

3.8. The nature of sports drinks makes them an impulse product to which

consumers are not too often price sensitive. Sports drinks are normally

consumed by people who are thirsty and wanting to replenish themselves

after sporting activity. However, some of the smaller brands within the market

try and broaden their appeal to consumers by offering their product at a lower

price (BMI Foodpack, 2006:8).

The price premium may be the best single measure of brand equity available,

because it directly captures the loyalty of customers in a most relevant way. If

they are loyal, they should logically be willing to pay a price premium; if they

are not willing to pay more, the loyalty level is shallow (Aaker, 1996:51).

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3.2.3 PROMOTIONS

Promotions mean activities that communicate the merits of the product and

persuade target customers to buy it (Kotler and Armstrong, 2001:67).

Marketing and promotion has been heavily targeted at the sports sector. As

competition for share of throat and consumer attention increases, promotional

activity increases (BMI Foodpack, 2007:8).

Once a brand has been built, it must be maintained through advertising and

other forms of communication. Brand building no longer means putting a

commercial in the media and expecting that people will buy your product.

People want to know what the product can do for them (Kuzwayo, 2000:87).

Advertising can induce resistance to switching. By occasionally reminding the

consumer of a reason for buying the brand and keeping the brand name "top

of mind," marketers may be able to keep consumers from switching (Maclnnis

and Hoyer, 2001:257).

3.2.4 PLACE

Place includes company activities that make the product available to target

consumers (Kotler and Armstrong, 2001:67). Sports drinks are products that

are designed to re-hydrate and replenish the minerals lost by athletes during

sporting activity. The very nature of sports drinks dictates that they should be

available where people are taking part in sporting events. The manufacturers

of these products would typically sell their products to wholesalers, who in

turn would then resell the products to outlets such as sporting/running clubs

that fall into the on-consumption sector. Convenience sectors, like forecourt

shops, are also popular channels of distribution (BMI Foodpack, 2007:9).

Distribution is also important to prevent habitual consumers from switching to

another brand. One major factor that might force a consumer to break a habit

is an out-of-stock condition. Without a strong preference, the consumer is

more likely to break the habit and buy another brand than to go to another

store. Widespread distribution can ensure that the consumer is not forced to

buy something else (Maclnnis et al., 2001:257).

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3.2.5 PHYSICAL EVIDENCE

According to Zeithaml, Bitner and Gremler (2006:27), physical evidence is the

environment in which the service is delivered and where the organization and

customers interact, as well as any tangible components that facilitate

performance or communication of the service. The physical environment can

influence customers' choices, expectations, behaviour and satisfaction with

the service. General elements of physical evidence as shown in Table 3.11

includes all aspects of the organization's physical facilities, also known as the

services cape as well as forms of tangible communication.

TABLE 3.11: GENERAL ELEMENTS OF THE PHYSICAL ENVIRONMENT

SERVICESCAPE

Facility exterior

Exterior design Signage Parking Landscape Surrounding

Other tangibles

Business cards Stationery Bulling statements Reports Employee appearance

Facility interior

Interior design Equipment Signage Layout

Other tangibles

Uniforms Brochures Website

Source: Adapted from Hehir (2007:8)

Physical evidence is rooted in the five senses of sight (colour and aesthetics)

sound, scent, touch and taste. Because services are characterised by

inseparability, customers are present in the production premises; therefore,

the physical setting of the delivery processes is vital for success. Physical

setting is sometimes seen as the reason of existence of the service.

Physical evidence is used to make the service more tangible. It is used to

communicate a message of quality, positioning and differentiation. It also

plays a role in setting and meeting customer's expectations. Physical

evidence can also be used to facilitate the service delivery process through

layout and signage, which communicate the customer's role in the service

delivery process. By creating a certain ambience with physical evidence,

service providers can influence the customers' mood states.

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3.2.6 PROCESSES

According to Zeithaml et al., (2006:27) processes refer to the actual

procedures, mechanisms and flows of activity by which a service is delivered.

As such, it includes the service delivery and operating systems required to

deliver a service promise to customers.

Customers do not like chaotic, slow, inconsistent, disorganized or

inconvenient service but demand service that is orderly, fast, uniform,

organized and convenient to them. It is vital that an organization's service

processes must be designed to achieve the ideal set out above. Therefore,

service delivery processes must be designed to meet customers'

requirements.

While service processes must be designed with customer needs and

requirements in mind, operational constraints and efficiency requirements

must also be considered. Service marketers and operations managers must

therefore join forces when designing service processes.

3.2.7 PEOPLE

According to Zeithaml et al., (2006:27), people's role in the service

environment is vital for the success of the entire service experience. People in

the service environment encompasses of customers, other customers and

employees.

People as elements in the service industry include all the human actors - the

organization's employees, the customer and other customers (who play a part

in service delivery and accordingly influence the customer's perception in the

service environment). Service employees interact with customers during

service delivery processes and provide cues to customers concerning the

services.

Hence, it can be said that service employees' competence, attitudes and

appearance, influence customers' perception of services. Customers often

experience service employees as synonymous with the service and no matter

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how small or large part they play in the actual delivery of the service; they are

still the focal point of the service for customers. It is crucial that service

organizations stipulate very specifically to their employees what is expected of

them during interactions with customers.

Employees and customers must be viewed as valuable assets, and

management must attempt to manage them in such a way that they can

achieve their full potential. Specifically, managers have a responsibility to

contribute toward a supportive organizational climate.

3.3. CONCLUSION

In summary, commercial sports drinks supply water, sugar and electrolytes,

including sodium. They promote fluid retention and tend to increase voluntary

drinking because of their taste. They are highly recommended during athletic

and intense physical activity that last over one hour. For casual activities of

less than one hour water is a good choice for hydration purposes. On the

other hand, beverages high in sugar, including fruit juices (fructose) that can

cause nausea or gastrointestinal distress and caffeine or alcohol that increase

urine output and reduce fluid retention (Hehir, 2007:13).

Vitamin and mineral fortification is the dominant trend in this category. Apart

from fortification with vitamins and minerals, low-in positioning dominates the

category, with some Sports Drinks claiming to be low in sodium, calories, and

sugar. As Sports Drinks are usually consumed during or right after exercise

to compensate the fluid and nutrients lost due to sweating, consumers avoid

beverages that are high in calories, sugar, and fat, especially when they

exercise to maintain or lose weight. Sports drinks with added protein are

conspicuously absent. Fruity flavours remain the top flavours. As many

electrolytes have a salty taste, fruity flavours can mask this making the

beverage more appealing (Hehir, 2007:13).

Having reviewed the literature, it is evident that the sports-drink category is

reaching maturity and that it is currently under a degree of threat, especially

from increased activity in the bottled-water and flavoured-water categories,

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with which it competes indirectly. Powerade and Energade control the

category in volume and value. The next chapter will focus on the research

approach, where quantitative aspects of the study will be discussed, to

answer the research questions.

The chapter to follow (Chapter Four) will provide a discussion of the research

methodology, total population and sample size determination, questionnaire

design and various aspects of data collection employed in this research.

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Chapter 4

CHAPTER 4

RESEARCH METHODOLOGY

4.1 INTRODUCTION This chapter describes the research methodology employed in this research

study. A well-designed research plan forms the basis of the entire research

process. Research can be described as a practical activity whose purpose is

to find out things in a systematic way. It is a process of designing, gathering,

analyzing and reporting information to uncover opportunities and reduce the

risks of decision-making (Caldwell and Herbst, 2003:10). According to Shao

(2002:7), research is a systematic and objective investigation of a subject or a

problem to discover relevant information or principles

It is therefore necessary for the researcher to conduct an extensive literature

search on the concept of brand loyalty in order to derive the views of the

majority of researchers. These views will make an important contribution to

the foundation of the proposed study. With the use of research design

methods, primary data will be collected analysed, and reported. Personal

contact of the researcher within the industry helped in gaining access to

relevant information as well as a keen business interest in the outcome of the

results.

This chapter will describe in detail the methodology, namely the research

design, the choice of population, questionnaire design, data collection and the

analysis of the data that was followed by this study. It is not the purpose of

this chapter to provide a detailed description of the relevant theory but rather

to describe and motivate the methodology followed.

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4.2 RESEARCH DESIGN

A research design is a framework or blueprint for conducting a marketing

research project. It entails the procedures necessary for obtaining the

information needed to structure or solve marketing research problems

(Malholtra et al., 2003:51).

According to Shao (2002:41), research design is the framework that directs

marketing research efforts. An effective research design does two things (1)

provides answers to questions as objectively; accurately, an economically as

possible; and (2) controls possible sources of errors, such as collecting data

from respondents who are not representative of the population of interest.

According to the objectives of the study as described in Chapter one form an

integral part of the research design. They ensure that appropriate information

is collected, help to determine the sources of the information, determine the

technique for data gathering, specify the sampling methodology and influence

the schedule and cost of the research project (Zikmund, 2003:58).

According to Malholtra et al. (2003:51), descriptive research is conclusive

research that has as its major objective the description of something, usually

market characteristics or functions. For the purpose of this study, the

researcher will make use of descriptive research to describe the extent of

brand loyalty in the sports drink market.

4.3 PRIMARY DATA ANALYSIS

According to Dillon, Madden and Firtle (1993:78), secondary data involves

already published data collected for purposes other than specific research

needed at hand. Malholtra et al. (2003:87) contends that, the examination of

available secondary data is a prerequisite to the collection of primary data.

The researcher has started with secondary data, and only proceeded to

primary data only when the secondary data sources where exhausted or yield

marginal returns. An extensive literature search on brand loyalty has been

conducted by consulting a wide range of relevant scientific journals and

research publications.

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Chapter 4

The data requirements described above indicate the most appropriate

methodology to be used, namely a combination of both the descriptive and

analytical survey techniques. Survey research is a "procedure for

systematically collecting information about the attitudes, beliefs, background,

experiences, and behaviour of a sample of people by using interviews and

questionnaires".

Survey research has a number of characteristics (Kerlinger 1973):

It is carried out in a short space of time as possible

Surveys are generally said to be structured. There is a fixed set of

questions, and responses are systematically classified

Survey research has a social nature. That it is concerned with

relationships such as opinions and beliefs (Kerlinger 1973).

The biggest advantage of survey research is that it facilitates accumulating a

great deal of information. Another advantage is that it is accurate as long as it

is efficiently administered. Disadvantages include the fact that in-depth

analysis is not facilitated, it is time consuming and costly, and it is dependent

on the respondents perception and honesty.

This method of research is suitable for the purposes of this study. It provides

a means of measuring peoples attitudes and perceptions. It is capable of

generating results that can be generalised to a much larger population, and

allows for a wide range of methods of obtaining information. Face-to-face

interviews will be used for this research.

In today's marketing research environment, secondary data research tasks

are applied more often to specific marketing problems because of the relative

speed and cost-effectiveness of gathering this data (Hair et al., 2003:97).

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4.4 DATA ANALYSIS

Data analysis begins after the data has been collected. During the analysis

stage several interrelated procedures are performed to summarise and

rearrange the data. The raw data must be transformed into meaningful

information, where the transformation of raw data into a form that will make it

easy to understand and interpret is defined as descriptive analysis.

4.5 METHODS OF COLLECTING QUANTITATIVE DATA

According to Dillon et al. (1993:134), quantitative research involves relatively

large numbers of respondents, which are designed to generate information

that can be projected to the whole population. Dillon et al. (1993:158-172),

further state that, versatility, quantity of data, sample control, quality of data,

response rate, speed, cost and uses, influenced the choice of a survey

method. After considering all the advantages and disadvantages of the

various methods (mall intercept, personal interview, mail, telephone and e-

mail), a decision was taken to make use of gym intercept interviews.

According to Dillon et al. (1993:158), a gym intercept is a survey method

using a central location test facility at a sports gym centre; respondents are

intercepted while they are coming into gym. This method fits well with the

study to be conducted, as it is flexible, will cover a broader sample, and is

both cost and time effective.

The choice of data collection method is of great importance, and the

advantages and disadvantages of the method should be taken into

consideration before a choice is made. Because of the attainable

environments, a fieldworker-administered survey was considered the most

appropriate data collection method.

The advantages of this type of survey where:

the availability of a fieldworker to answer questions

the right respondents were interviewed and

it spurred interest among the respondents to answer the questions

(Hair et al., 2003:266).

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4.5.1 Fieldworkers

Fieldworkers are individuals responsible for the gathering of data (Zikmund,

2003:475). According to Dillon et al., (1993:336) field workers should be

carefully prepared for the fieldwork by way of a formal briefing session. During

the briefing session, fieldworkers are given the necessary material and

instructions. They must be informed about who qualifies as respondents, the

period within which the survey must be conducted and the controls that must

be in place. The content of the questionnaire must be explained as well as the

way that respondent's enquiries should be handled. For the purpose of this

study, three field workers will be employed for a period of one week.

4.6 SAMPLING SIZE DETERMINATION AND THE SELECTION OF THE

SAMPLING METHOD

A sample is a subset of the population of interest. If the sample is

representative, then the survey results can be extrapolated to the entire

population (Dillon et al., 1993:214). Non-probability sampling will be used,

there is however no statistical formulas for determining the appropriate

sample size in this method. However cost limitations and industry standards

will be considered in the sample size selection.

Sampling involves any procedure using a small number of items or parts of

the whole population to make conclusions regarding the whole population. A

sample is therefore a subset, or part of a larger population. There are several

alternative ways of taking a sample. The major alternative sampling plans

can be grouped into probability and non-probability techniques (Zikmund,

2003:369).

The purpose of sampling is to enable researchers to estimate some unknown

characteristics. The process of sampling involves any procedure using a

small number of items or parts of the whole population. A sample is a subset,

or some part, of a larger population. There are several alternative ways of

taking a sample. The major alternative sampling plans may be grouped into

two categories according to Malhotra and Birks (2003:362):

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Probability samples where each element of the population has a fixed

probabilistic chance of being selected for the sample

Non-probability samples do no use chance selection procedure, but

rather rely on the personal judgment of the researcher

In probability sampling every element in the population has a known nonzero

probability of selection, where the simple random sample is the best known

probability sample, in which each member of the population has an equal

probability of being selected. In non-probability sampling on the other hand

the probability of any particular member of the population being chosen is

unknown (Zikmund, 2003:369).

According to Dillon et al. (1993:229) non probability sampling designs share a

common characteristic:

There is no way of determining the probability of selecting any

particular element for inclusion in the sample

4.6.1 Sample size

A non-probability sampling design has been used in this research to draw a

representative sample of consumers. This design does not guarantee the

chance of selecting any particular element or sampling unit into the sample.

The sample units will be selected using convenience sampling and

respondents will be randomly selected. Convenience sampling attempts to

obtain a sample of convenient elements. Selection of sampling is left to the

interviewer (Malhotra et al., 2003:363). Non probability sampling will be used

as discussed earlier in the chapter. Consumers will be chosen subjectively

based on availability and convenience.

4.6.2 Determining the sample size

The sample size has been determined according to industry standards and

sampling used in similar studies (Eiselen, n.d.). The researcher will use

industry standard sample size for the purpose of this study. Previous studies

conducted by (Melamdowitz, 1992: Brand loyalty in the denim jean market)

used a sample of 90 respondents, and by (Stephanou, 1983: Brand loyalty in

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the sunglasses market) used sample of 150 respondents. For the purpose of

this study the researcher uses a sample of 178 quantitative interviews. A

cross section of university gyms will be used to gain access to different

students.

4.6.3 Defining the target population

The sample represents students who drink sports drinks. The target

population can be defined as university students that drink sports drink as a

qualification question to screen respondents will enable non drinkers of sports

drinks to be eliminated. The sampling frame constitutes both females and

males, of all races within the age group of 18 years and older. A total of 196

interviews have been conducted, 18 were not fit for analysis therefore 178

were fit for response rate 178/196=90.8%, on students who drink sports

drinks. Respondents include White, Black, Coloured and Indian individuals.

Respondents have been targeted, as mentioned in the demarcation and

scope of study, at students in selected Gauteng universities.

4.7 QUESTOINNAIRE DESIGN

A questionnaire is a set of questions designed to generate the data necessary

for accomplishing the objectives of the research project (McDaniel and Gates,

2001:289). According to Cant et al. (2003:118), a questionnaire is a set of

questions formalised to obtain information from respondents. The

questionnaire will be arranged in a valid, logical fashion that will produce

meaningful results. Questionnaire design can be viewed in terms of four

interrelated activities: (1) preliminary considerations, (2) asking questions, (3)

constructing the questionnaire, and (4) pretesting the questionnaire (Dillon et

al., 1993:300).

A detailed questionnaire will be developed from the literature derived and the

principles associated with questionnaire design applied. The questionnaire

will comprise of both open-ended and closed questions. According to

Creswell (1998:127), phenomenology emphasis that if the research is to be

conducted on people, they should be permitted to speak. Their words should

be used to constitute data for the drawing of ethical and emancipatory findings

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about them. In order to put this principle in practice, a loose structure will be

used to allow sports drink consumers to go into great detail in describing their

view point at every stage of this survey (Denzin and Lincoln, 1998:144).

The purpose of a questionnaire is to collect and record primary research data.

A questionnaire needs to be well designed because it is very seldom possible

to repeat the survey if the researcher finds out afterwards that the

questionnaire was not complete, or that some important topic was omitted.

Once a survey has been completed, the data cannot be changed (Boyce,

2002:318). According to Miller and Read (1998:86) good questionnaires are

those that meet research objectives, obtain valid and reliable data from

respondents, facilitate data processing, achieve, and maintain the

involvement of respondents. The questionnaire to be used in this study to

collect primary data (as viewed in Appendix A) has been designed in

accordance with the research problem, hypotheses and primary and

secondary research objectives.

Dillon et al. (1993:304) specify seven basic principles of questionnaire design

and layout upon which much consideration was given in developing the data

collection instrument. These principles include:

Principle 1: Be clear and precise

Principle 2: Response choices should not overlap and should be exhaustive

Principle 3: Use natural and familiar language

Principle 4: Do not use words or phrases that show bias

Principle 5: Avoid double-barrelled questions

Principle 6: State explicit alternatives

Principle 7: Questions should meet criteria of validity and reliability.

The questionnaire utilised in this study was divided into two distinct sections:

Section A: Demographic Information

NOTE: question one, in this section of the questionnaire were filtering

questions that assisted the researcher in excluding "unwanted" respondents

who did not fit the criteria.

Section B: Frequency

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The formulation of this study's data collection tool was in accordance with the

research problem, primary and secondary research objectives, and the

research hypotheses as specified in chapter one. Table 4.1 below indicates

the relationships between questions in the questionnaire and the research

objectives and hypotheses of this study.

TABLE 4.1: LINKAGES BETWEEN QUESTIONS IN THE

QUESTIONNAIRE AND RESEARCH OBJECTIVES Questions linked to the research objectives

Primary Objective Questions

To establish the influence of brand loyalty in the sports drinks market. 7, 8, 9, 10,11

Secondary Objectives Questions

To investigate the purchasing behaviour of students, the needs that sports drinks satisfy, students

motivations for buying sports drinks, characteristics of students, and lastly, students attitudes to

different brands within the sports drinks market. 1, 2, 3, 4, 5, 6, 8, 9

To identify the perceptions of attributes and package designs of different brands considered in the

choice of the student, and to establish the attributes that students look for. 7, 8, 9, 10, 11

To investigate the buying motive of sports drinks relating to ingredients and packaging. 7, 10

The most predominant question format used in this questionnaire was that of

closed-ended or itemised questions. This type of question requires

respondents to select from preset numbers or descriptions, the one that best

expresses their feelings (Dillon et al., 1993:310). The principal advantages of

such itemised questions include their ease of use in the field, their ability to

diminish interviewer bias, their capacity to decrease bias based differences

pertaining to the articulation of respondents, and their relatively

straightforward coding and tabulation requirements.

4.7.1 Validity

Validity, according to Malhotra et al. (2003:140), is the extent to which a

measurement represents characteristics that in the phenomenon under

investigation. (Dillon et al., 1993:293), also state that to be valid, a scale must

fully capture all the aspects of the characteristic or trait to be measured.

A question is valid if it measures what the questionnaire intends it to measure,

therefore validity can only be measured if the purpose or intentions of the

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question is known. A valid question will always be reliable but a reliable

measure does not guarantee the validity of the question (Webb, 2002:108).

A researcher can utilise various types of validity to prove whether there has

been no measurement error. Thus validity can be examined from a number of

different perspectives using content validity, criterion-related validity, and

construct validity (Webb, 2002:108).

According to Malhotra et al. (2003:314) content validity consists of a

subjective but systematic evaluation of the representativeness of the content

of a scale for measuring the risk at hand. Criterion validity examines whether

the measurement scale performs as expected in relation to other selected

variables such as meaningful criteria. Construct validity addresses the

question of what construct or characteristic the scale is, in fact, measuring

(Malhotra et al., 2003:315).

There are six ways to make an estimation as to the validity of measurements:

Face validity is the ability of the test scale items to measure the topic of

interest as judged subjectively by experts on the topic.

Predictive validity is the ability to predict a future occurrence or

phenomenon.

Concurrent validity is the validation of how well the results from one

scale correspond with those of another, when examining the same

phenomenon at the same point in time.

Construct validity is the ability of the scale to measure an observable

phenomenon that an underlying theory correlates with the construct on

interest.

Convergent validity is the ability of a scale to correlate with other scales

to measure the same concept.

Discriminant validity is the scale's lack of correlation with another scale

that measures different concepts (Struwig and Stead, 2003:139 —

143).

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4.7.2 Reliability

Reliability is a necessary but not sufficient condition for validity (Dillon et al.,

1993:294). Reliability refers to the extent to which a measurement

reproduces consistent results if the process of measurement were to be

repeated (Malholtra et al., 2003:140). A reliability coefficient can be

determined, this coefficient varies from 0 to 1, and a value of 0.6 or less

generally indicates unsatisfactory internal consistency and reliability

(Malholtra et al., 2003:314). The coefficient alpha or Cronbach's alpha for the

measurement of internal consistency in the proposed study will test the

construct reliability.

According to (Dillon et al., 1993:283), if a measurement scale is reliable, then

repeated measurements of the same characteristic will yield similar scores

over time and across situations. Reliability implies consistent and stable

measurement from one use of the scale to the next.

4.7.3 Choice of scale

Measuring is a fundamental activity in each research project. The task of

measurement is to assign numbers to the characteristics of the population

being measured (Dillon et al., 1993:272). This study allows the respondents to

rate how strongly they agree or disagree with their experience and

expectations of the carefully constructed statements in the questionnaire,

(Appendix A).

A Likert scale was employed as a measurement scale of choice. The Likert

scale is one of the most widely used attitude-scaling techniques and it allows

respondents to express the intensity of their feelings. In developing the Likert

scale for this research report, statements were generated corresponding to

the important issues that were identified in the literature study. Each

statement had to be judged as favourable or non-favourable. Respondents

are asked to judge their expectations and experience on a five-point scale

ranging between degrees of strongly agree and strongly disagree with a

neutral point in the middle. The success of a five-point scale is determined by

the quality of scale items used. Scale items should possess three qualities

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namely, the ability to capture all the relevant aspects of the attitude object, to

be unambiguous and to be sensitive enough to discriminate among

respondents with respect to the attitude object under investigation (Dillon, et

al., 1993:292).

According to McDaniel and Gates (2005:311), the Liken scale is a

measurement scale in which the respondent specifies a level of agreement or

disagreement with statements expressing either a favourable or an

unfavourable attitude toward the concept under study. Some of the questions

used, also made use of rank order scales. Rank order scales require

respondents to be simultaneously presented with several objects that they

order in rank (Dillon et al., 1993:283).

4.7.4 Questionnaire format and content

Questionnaires for this study included a covering letter to emphasise the

importance of this study for the beverage industry.

The questionnaire consisted of two sections and 11 questions. The sections

were divided a follows:

Section A: Demographic Information

Section B: Frequency

In Section A, the respondents were asked to indicate their gender, age, and

information based on gym frequency. Section B consists of 11 statements and

required that each respondent indicate their perception and expectation of

each of the statements. The statements were structured as simply as

possible, in wording and language that was perceived as intelligible by all the

elements included in the population.

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4.8 ANALYSIS

After data collection, the emphasis of the research process focuses on the

analysis of the data collected. The analysis of the data collected by this

research report was conducted by STATKON, the statistical consultancy

service of University of Johannesburg.

Analysis is essentially about making sense of the data that has been collected

and using the results of this process to answer the research question

(Sarantakos, 1998:313). In light of this, the responses of the interviews

conducted from the selected consumers of sports drinks around students in

selected Gauteng universities will be coded. The following aspects will be

addressed:

4.9 DATA CODING AND EDITING

All questionnaires were numbered in order to facilitate possible future

reference.

4.9.1 Coding

Data coding relates to the assemblage and assigning of value to responses to

the questions contained in the survey instrument (Hair et al., 2003:499). More

specifically, data coding in this study involved the assigning of numerical

values to each individual response for each question within the questionnaire,

bearing in mind that the questionnaire made use of only closed-ended

questions. The purpose of coding is to convert a respondent's answers to

survey questions into relevant codes/symbols in order to facilitate the ease of

entering and reading by a statistical analysis software package (Cant et al.,

2003:153). According to Dillon et al. (1993:37), coding involves assigning

numerical values to represent specific responses to specific questions. Data

codes have been assigned and the data captured on Microsoft Access to

ensure that no data capturing mistakes were made. After capturing, the data

is exported to SPSS and/or Microsoft Excel and/or Statistica Computer

Software for processing purposes.

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4.9.2 Editing

Editing is the process whereby the raw data are checked to ensure that all

mistakes are found, those made by either the interviewer or respondent (Hair

et al., 2003:493). During the editing process of this study, all the usable

questionnaires had been examined for maximum precision.

4.10 STATISTICAL PROCEDURES

According to Shao (2002:380), statistical procedure is the process of

gathering, organizing, summarizing, presenting, and analyzing data, and

inferring (making decisions) based on the analysis.

4.10.1 Descriptive statistics

"Descriptive statistics are all about describing, graphically displaying and

summarising data" (Cant et al., 2003:170). More simply put, descriptive

statistics are used in this study to describe the basic characteristics of the

data collected. A frequency distribution is a table that displays the amount of

times in the data set that each response occurs (e.g. 42 respondents out of

178 indicated that they consume sports drinks once per week). These tables

will also display the percentage (e.g. 42/178 x 100 = 21.3% of respondents

say they consume sports drinks once per week, which is considered to be a

more meaningful way to express relative frequencies (Anon 1 , 2000).

Furthermore, the researcher can make use of certain measures of central

tendency and variability to routinely report when tabulating a study (Dillon et

al., 1993:372).

4.10.2 Statistical techniques and procedures implemented in this

research

In order for the collected data to aid in determining if research hypotheses are

true or false, cross tabulation was required. Cross tabulation refers to the

process of simultaneously treating two or more variables in the study (Hair et

al., 2003:669). According to Malhotra et al. (2003:759), a cross tabulation is a

statistical technique that describes two or more variables simultaneously and

result in tables that reflect the joint distribution of two or more variables that

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have a limited number of categories or distinct values. A frequency

distribution objective is to obtain a count of the number of responses

associated with different values of one variable and to express these counts in

percentage terms. Critical aspects of the questionnaire will be cross tabulated

with classification or demographic questions in the questionnaire.

Fisher's Exact Test is a statistical significance test used to analyse categorical

data where the sample size is small. This test is used to examine the

significance of the association between two variables in a 2 x 2 contingency

table. It is extremely accurate and as such can be used regardless of the

sample characteristics (Wikipedia, 2005). This process becomes difficult to

use with large samples or well-balanced tables, these being the exact

conditions that make the Chi-Square test particularly appropriate.

According to Shao (2002:460), a chi-square distribution is a frequency

distribution used to test how well a set of observed sample frequencies

corresponds to or "fits" a set of expected or theoretical frequencies.

The Chi-Square test is used to examine the significance between the two (or

more) frequency distributions, and was significant at the 0.05 level. If the

p-value was lower than 0.05, the hypothesis was reject. Conversely, if the

p-value was higher than 0.05, the hypothesis was not rejected.

4.10.3 Graphic representation of data

According to Dillon et al. (1993:381), graphs are a valuable means of

summarizing and displaying data. Data will be presented by the use of

graphs and pie charts. Some of the data will be presented in table format.

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4.11 CONCLUSION

This chapter described the research methodology that was used by this study

to achieve results. A description of the conclusive research was presented as

well as justification for the choice of population. The measuring scale used in

this study was the Likert scale, and an interviewer-administered questionnaire

was the choice of survey for data collection. The results of the fieldworkers'

data collection were given. The method of data analysis of the data was

identified and discussed. In the next chapter the results from the statistical

analysis will be summarised and presented.

The chapter to follow (Chapter Five) will provide a discussion of the research

findings, the interpretation of these findings, including the outcomes of the

various hypotheses as proposed in chapter one.

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Chapter 5

CHAPTER 5

RESEARCH FINDINGS AND INTERPRETATIONS

5.1 INTRODUCTION

This chapter presents the results of the empirical study conducted. Findings

will subsequently be presented in a similar order to that within the

measurement instrument. The frequency distributions of the data will be

reported on, with a summary of all the results available in APPENDIX

Statistical procedures that were performed on the data (Pearson's Chi-

Square) will also be conveyed. Data depicting cross tabulations and statistical

processes can be viewed in APPENDIX C.

5.2 FINDINGS

The original sample was drawn from students in selected Gauteng

universities, with the findings based on the 178 completed questionnaires as

explained in Chapter Four.

5.2.1 Section A: Demographic Information

With this empirical research focused on students in selected Gauteng

universities, it is not surprising that the majority of respondents are between

the ages of (and including) 18 to 24 years old as depicted in Figure 5.1

(Source: Section A: Question 1). The respondents were comparatively

distributed between the different universities in Gauteng i.e. University of

Johannesburg (25%), University of Pretoria (51.3%) and Monash University

(23%), as evidenced by the data depicted in Table 5.1.

Figure 5.1: Respondents Age

Source: Section A: Question 1

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N Percentage

,Gender.

Male 121 68.0%

Female 57

32.0%

Ethnicity

Black

White

Coloured 18 10.2%

Indian or Asian 16

9.0%

n = 178

Institution

University of Johannesburg 50 25.4%

University of Pretoria 101 51.3%

Monash University 46 23.4%

Chapter 5

Of the 178 respondents, a total of 121 respondents (68.9%) were male, while

57 respondents (32.0%) were female. As evidenced by the data depicted in

Table 5.1, the respondents were equally split between white ethnicity

(40.1%), and black ethnicity (40.7%).

Table 5.1: Demographic Profile

Source: Section A: Question A, B, C

Of the respondents, (84.3%) indicated that Dynamic EnerG was being sold at

the gym, followed by Powerade (70.3%) and Energade (60.1%), (Source:

Question B1). As evident by the data depicted in Table 5.2.

Table 5.2: Sports Drinks being sold at gym

I Not Marked Marked Total

N Percentage N I Percentage N Percentage

Energade 71 39.9% 107 60.1% 178 100.0%

Powerade 53 29.8% 125 70.2% 178 100.0%

Dynamic EnerG - USN 28 15.7% 150 84.3% 178 100.0%

Sprint 178 100.0% 178 100.0%

lsoactive 178 100.0% 178 100.0% I

None 176 98.9% 2 1.1% 178 100.0%

Other 177 99.4% 1 1 .6% 178 100.0%1

Source: Question B1

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The 99 of 107 respondents indicated that University of Pretoria had

availability of Energade while Monash was 8 of 107, and no availability at

University of Johannesburg, (Source: Question B2).

The 97 of 150 respondents indicated that University of Pretoria had

availability, University of Johannesburg 49 of 150 availability of EnerG-USN

while Monash had lowest availability (Source: Question B4).

The 101 of 125 respondents indicated that University of Pretoria had

availability of Powerade while Monash was 24 of 125, and no availability at

University of Johannesburg, (Source: Question B3). As evident by the data

depicted in Table 5.3.

Table 5.3: Sports Drinks being sold at gym by University

Source : Question B2, B3, B4

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The respondents indicated that Dynamic EnerG had the highest availability of

branded refrigerator (82.0%), followed by Energade (56.7%), and availability

of Powerade (11.2%), (Source: Question C). As evident by the data depicted

in Table 5.4.

Table 5.4: Branded refrigerator at gym where sports drink is being

sold from

Not Marked Marked Total

N Percentage N Percentage N I Percentage

Energade 77 43.3% 101 56.7% 178 100.0%

Powerade 158 88.8% 20 11.2% 178 ! 100.0%]

Dynamic EnerG - USN 32 18.0%1 146 82.0% 1781 100.0%

Sprint 178 100.0% 178 I 100.0%

Isoactive 178 100.0% 1781 100.0%

None 171 96.1% 7 3.9% 1781 100.0%1

Other 175 98.3% 3 1.7% 178 I 100.0% I

Source: Question C

Majority of respondents (28.7%) indicated they go to gym more than four

times per week, (Source: Section B: Question 2).

5.2.2 Section B: Consumption Frequency

Majority of respondents (28.7%) indicated they go to gym more than four

times per week, (Source: Section B: Question 2), as viewed in Table 5.5

Table 5.5: Attendance of gym per week

N Percentage

1 x per week 42 23.6%

2 x per week 50 28.1%

3 x per week 35 19.1%

>4 x per week 51 28.7%

n = 178

Source: Section A: Question 2

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93 52.2% 85 47.8%

r-

Aerobic/Endurance exercises

Flexibility/Stretching exercises

Not Marked T- Marked

N Percentage N I Percentage

68 38.2% 110I[ 61.8%

1 Total

N

178

178

Percentage I

100.0% I

100.0%

Strength/Resistance training 80 44.9% I 98 I 55.1%

Source: Section A: Question 4 178 100.0% I

Chapter 5

Students participating in this study indicated the period that they have been

going to gym. What is believed to be most significant is that there were a

number of students (56.7%) that have been going to gym for less than two

years (Source: Section A: Question 3). The number of years that students

have been going to gym included less than one year (26.4%) and one to two

years (30.3%) as viewed in Table 5.6

Table 5.6: Number of years going to Gym

N Percentage

<1 year 47 26.4%

1 - 2 years 54 30.3%

2 - 3 years 24 13.5%

>3 years 53 29.8%

n = 178

Source: Section A: Question 3

Certain types of activities were acknowledged as the most frequently done by

respondents, these include, aerobic/endurance exercises (61.8%),

flexibility/stretching exercises (47.8%) and strength/resistance training

(55.1%) as viewed in Table 5.7.

Table 5.7: Activities Done At Gym

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14 7.1 8.0 100.0i

175 88.8 100.0

22 11.2

197 100.0

1 x per month

Total

1 Missing System

Total

Chapter 5

Majority of respondents (66.3%) indicated that they last purchase occurred

less than a week ago, as viewed in Table 5.8.

Table 5.8: Last purchase of Sports Drink

Frequency Percent I Valid Percent 1 Cumulative Percent

<1 week ago 116 .1

58.91 66.3 i 66.3

1 week ago 33 16.8 18.9 85.1 1

Valid 2 weeks ago 12 6.1 6.9 I 92.01

3-4 weeks ago 11 5.6 6.31 98.31

>4 weeks ago 3 1.5 1.71 100.01

Total 175 88.8 100.01 j

Missing System 22 11.2 1 I

Total 197 100.0

Source: Section B: Question 5

Majority of respondents (32.6%) indicated that they consumed sports drinks

twice per week, as viewed in Table 5.9.

Table 5.9: Frequency of Sports Drinks Consumption

Frequency Percent Valid Percent Cumulative Percent

Daily 25 12.7 14.3 14.3

>3 x per week 50 25.4 28.6 42.9

2 x per week 57 28.9 32.6 75.4

1 x per week 29 14.7 16.6 92.0

Valid

Source: Section B: Question 6

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Chapter 5

Students participating in this study indicated the important components of the

package of their sports drink. What is believed to be most significant is that

there were a number of students (54.9%) who indicated that nutritional info on

the bottle was extremely important (Source: Section B: Question 5). Also the

most significant is that there were a number of students (34.5%) who believe

that the size of the bottle is extremely important (Source: Section B: Question

6).

Table 5.10: Components of the Package

Totally unimportant Unimportant Important Very important Total

N Percentage N Percentage N Percentage N Percentage N Percentage

Style and design 13 7.6% 53 30.8% 83 48.3% 23 13.4% 172 100.0%

Colour 21 12.1% 78 45.1% 61 35.3% 13 7.5% 173 100.0%

Nutritional info on bottle

5 2.9% 17 :.1Z.Z*0 95 54.9% 173 100.0% 1 9.8%

bb

Size of bottle 5 2.9% 38 22.2% 69 40.4% 59 34.5% 171 100.0%

Other 2 50.0% 2 50.0% 4 100.0%

Source: Section B: Question 7

Collectively, 54.9% of respondents indicate that the fact that sports drinks

packaging components have nutritional info on bottle is extremely important,

followed closely by size of bottle (34.5%), style and design (13.4%). A factor

that proved to be less important was colour (12.1%) (Source: Section B:

Question 7).

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Most important

reason

Second most important

reason

Least important

characteristic 3 4 Total

Percentage N Percentage N Percentage N Percentage N Percentage Percentage

Chapter 5

Table 5.11: Ranking of characteristics of Sports Drinks

Taste 92 52.6 31 17.7% 13 7.4% 27 15.4% 12 6.9% 175 100.0%

Flavour 35 20.0% 46 26.3% 16 9.1% 23 13.1% 55 31.4% 175 100.0%

(Provides physical

l;energy 82 47.1 I 1 r'c I

I

39 22.4% 32 18.4% 14 8.0% 7 4.0% 174 100.0%

Provides mental energy

45

25.7% 33

18.9% 33

18.9% 38

21.7% 26 14.9% 175

100.0%

' Nutrition I value

62 35.45 28 16.0% 47 26.9% 15 8.6% 23 13.1% 175 100.0%

Source: Section B: Question 8

Taste (52.6%), was viewed as the most important characteristic, provision of

physical energy (47.1%) and nutritional value at (35.4%). While flavour has

one of the highest values of being "not important at all", it is necessary to

recognise that this factor was perceived to be moderately important by 26.3%

of respondents, with a further 20.0% of respondents placing extremely high

importance on this aspect (Source: Section B: Question 8).

Table 5.12: Characteristics of Sports Drinks

r

ly uni

Totam

lportant Unimportant Important Very

important Total

N Percentage N Percentage N Percentage N Percentage N Percentage

Taste of a sports drink

2 1.1% 11 6.3% 71 40.6% 91 .0% i -

175 100.0%

Variety flavoursof

15 8.6`i 53 30.3% 79 45.1% 28 16.0% 175 100.0%

Provides physical energy

5 2.9% 56 32.0% 114 •5.1% 175 100.0%

Provides mental energy

1 .6% 14 8.0% 87 49.7% 73 41.7% 175 100.0%

Nutritional value

2 1.1% 11 6.3% 66 37.9% 95 54.6% 174 100.0%

Source: Section B: Question 9

Page 112

Chapter 5

Collectively, 65.1% of respondents indicate that the fact that sports drinks

provide physical energy is extremely important, followed closely by nutritional

value (54.6%) and taste (52.0%). Factors that proved to be of less

importance were variety of flavours (8.6%) (Source: Section B: Question 9).

Table 5.13: Important factors when purchasing a Sports Drink

Totally unimportant

Unimportant Important Very important Total

N Percentage N Percentage N Percentage N Percentage N Percentage]

100.0% ] The brand 11 6.3% 49 27.8% 76 43.2% 40 22.7% 176

'Variety of flavours 11 6.3% 52 29.5% 93 52.8% 20 11.4% 176 100.0%

Ingredients on the bottle

4.6% 26 14.9% 75 42.9% 66 37.7% 175 100.0%

Technical features 24 13.6e7r 66 37.5% 72 40.9% 14 8.0% 176 100.0%

' Price 23 13.0 % 40 22.6% 53 29.9% 61 34.5% 177 100.0%

Association with top sports performers

56 35.9 % 46 29.5% 33 21.2% 21 13.5% 156 100.0%

Other

50.0% 1

50:0%

2 100.0%

Source: Section B: Question 10

As observed in the comprehensive literature review (Chapter Two), there are

a number of factors that university students in Gauteng take into account

when purchasing a sports drinks, and these factors influence the purchase

decision process (see Table 5.13).

Collectively, 37.7% of respondents agree that ingredients on the bottle are

extremely important on a sports drink bottle, followed closely by price and the

brand (22.7%). Factors that proved to be of less importance were association

with top sports performers (35.9%), the price (22.6%) and technical features

(37.5%), (Source: Section B: Question 10).

Page 113

N N Percentage N N Percentage N Percentage Percentage N Percentage Percentage

100.0%

Percentage N

2 176 Energade

Powerade

69 25.6% 45 34.1% 60 39.2%

50.6% 3 1.7% 176 100.0% 66 37.5% 18 10.2% 89

Most important

reason

Second most important

reason

Least important

reason 3 4 5 Total

Chapter 5

Table 5.14: Favourite Sports Drinks

Dynamic EnerG - USN

32 18.7% 54 31.6% 64 37.4% 9 5.3% 4 2.3% 8 4.7% 171 100.0%

Sprint 1 1.1% 17 19.3% 14 15.9% 28 31.8% 17 19.3% 11 12.5% 88 100.0%

Isoactive 4 4.3% 15 16.3% 9 9.8% 23 25.0% 26 28.3% 15 16.3% 92 100.0%

I prefer drinking somethin g else

2 33.3% 1 16.7% 2 33.3% 1 16.7% 6 100.0%

Source: Section B: Question 11

Powerade has one of the highest values of being "most favourite" at 50.6%, it

is necessary to recognise that Energade was also perceived to be moderately

important by 39.2% of respondents (Source: Section B: Question 11).

5.3 RESULTS OF STATISTICAL TESTING

To facilitate the use of statistical procedures, it was necessary to recode

certain data groups within the entire set of collected data, thereby improving

the accuracy of the statistical analyses conducted. The relationship between

frequency of consumption with age, gender and race was tested. There was

no statistical relationship between frequency of consumption with age, gender

and race. Since the respective p-values were more than 0.05. The recoded

data can be viewed in APPENDIX D.

Page 114

Chapter 5

5.4 CONCLUSION

This chapter portrayed the results of the empirical section of this study.

Responses were arranged by demographic information, purchase behaviour

of sports drinks, purchaser motivation and brand loyalty. Frequency

distributions were analysed, interpreted and where appropriate, graphically

represented. The results of statistical tests (i.e. significance) were also

reported.

The chapter to follow (Chapter Six) will provide a discussion pertaining to

certain conclusions of this study and the implications thereof, as well as

recommendations for future research.

Page 115

Chapter 6

CHAPTER 6

CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS FOR FUTURE

RESEARCH

6.1 INTRODUCTION

While the previous chapter discussed the empirical results, this chapter will focus

on the main conclusions, limitations and recommendations of this descriptive study.

Final conclusions will be drawn regarding the aspects that have the greatest

influence on undergraduate students' offline and online shopping behaviour as well

as general recommendations for future research.

6.2 ACHIEVEMENT OF OBJECTIVES

6.2.1 Primary objective

The primary objective was to discover and evaluate the influence of brand loyalty in

the sports drink market amongst students in selected universities in Gauteng.

In Chapter 1 the study is introduced, with a framework of how the study is

structured.

Brand loyalty (Chapter 2)

The theory brand loyalty presented shows the importance of this topic. Brand

attributes are seen as important to the students. The decision making process is

discussed, without labeling and packaging of sports drinks, they look the same.

Generation Y is discussed as a constantly moving target; we have to immerse

ourselves in it often and regularly to keep up with it, so that we can ensure success

in this critical and influential youth segment.

Overview of The Sports drinks market (Chapter 3)

Although sports drinks are consumed primarily when engaging in formal/informal

exercise (rehydration, energy, refreshment) they are also consumed whilst

"generally keeping active". The sports drinks market is extremely competitive, with

very little differentiation. Consumers must understand the ingredients on the label,

therefore, communication on packaging needs to describe benefits.

Page 116

Chapter 6

Research Methodology (Chapter 4)

The study has been conducted amongst 178 students in selected Gauteng

Province universities. Statistical analysis has been conducted through Frequency

distributions and cross tabulation.

Research Findings (Chapter 5)

Respondents indicate that, brand loyalty and product attributes have an influence in

the purchasing decision of sports drinks. Students have specific motivations for

purchasing brands based on brand intrinsic and extrinsic benefits.

Conclusion, Implications and Recommendations (Chapter 6)

The key lessons learnt from this study, is no different to what the literature states,

the sports drinks market is a highly competitive market and not well differentiated.

Whilst the target is students in selected Gauteng universities, the students exhibit

similar attribute preferences. Attributes have indicated to have a major influence in

the decision making process. The findings on the sports drinks market have

managerial implications, and are important issues in the development and

implementation of marketing strategies, aimed at building and maintaining market

share.

6.2.2 Secondary objectives

To investigate the purchasing behaviour of students, the needs that sports drinks

satisfy, students motivations for buying sports drinks, characteristics of students,

and lastly, students attitudes to different brands within the sports drinks market.

o Purchasing behaviour of students:

Majority of respondents indicated that their last purchase

occurred less than a week ago (Section B: Question 5).

Majority of respondents also indicated that they consumed sports

drinks twice per week (Section B: Question 6).

o The needs that sports drinks satisfy:

Respondents indicated that the fact that sports drinks provide

physical energy is extremely important, followed closely by nutritional

value and taste (Section B: Question 9).

Page 117

Chapter 6

To identify the perceptions of attributes and package designs of different brands

considered in the choice of the student, and to establish the attributes that students

look for.

o Perceptions of attributes and packaging:

Majority of respondents agree that ingredients on the bottle are

extremely important on a sports drink bottle, followed closely by price

and the brand name. Factors that proved to be of less importance

were association with top sports performers (Section B: Question 10).

To investigate the buying motive of sports drinks relating to ingredients and

packaging.

o Buying motive related to ingredients and packaging:

Majority of respondents indicate that the fact that sports drinks

packaging components have nutritional info on bottle is extremely

important, followed closely by size of bottle, style and design

(Section B: Question 7).

6.3 LIMITATIONS

Limitations were identified with regards to the information obtained for the literature

review as well as during the actual data collection process.

6.3.1 Limitations in the literature review

Much of the literature acquired for Chapter Two regarding both Brand loyalty well as

the characteristics of Generation Y consumers was obtained from American and

European studies and is therefore only moderately applicable to South Africa as it is

still considered to be a developing country.

6.3.2 Limitations in the empirical research

The research was carried out at Gauteng universities and relevance is assumed for

the rest of South Africa universities.

Page 118

Chapter 6

6.4 RECOMMENDATIONS FOR FUTURE RESEARCH

The research topic can be further investigated and extended in the future in the

following areas:

The influence of brand awareness on the purchasing decision of sports drinks

The influence of brand loyalty on the purchasing decision of sports drinks

If differentiation of product attributes complicates the consumer decision

making process

If communication of nutritional value and ingredients on the pack influence

product credibility

Comparisons of brand loyalty across a range of industries

6.5 CONCLUSION

This study was conducted to investigate brand loyalty in the sports drink market

amongst students in selected Gauteng universities. The primary and secondary

objectives of this study have been realised and it can therefore be deduced that the

results add value to the body of knowledge pertaining to marketing theory in

general as well as to consumers' purchasing behaviour in particular.

Page 119

Chapter 7

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Frequencies

Statistics

Cumulative Percent

68.01

100.01

1

gender irace

N I Valid I 178 177

location al

178 197 1901

19 0 71

Missing I 19 1 20

A.1

gender

Frequency Percent Valid Percent

Valid

1 Male 121 61.4 68.0

2 Female 57 28.9 32.0

Total 178 90.4 100.0

Missing System 19 9.6

19-7-{ 100.0 Total

race

, Frequency Percent Valid Percent Cumulative Percent

Valid

1 Black 72 36.5 40.7 40.7

2 Coloured 18 9.1 10.2 50.8

3 White 71 36.0 40.1 91.0

4 Indian 16 8.1 9.0 100.0

Total 177 89.8 100.0

Missing System 20 10.2

Total 197 100.0

A.1

Frequency Percent Valid Percent Cumulative Percent

Valid

1 18-24 years 143 72.6 80.3 80.31

2 25 years or older 35 17.8 19.7 100.01

Total 178 90.4 100.0 I

Missing System 19 9.6 I

Total 197 100.0 1

location

Frequency Percent Valid Percent Cumulative Percent

alid

1 UJ 50 25.4 25.4 25.41

2 PTA 101 51.3 51.3 76.61

3 MONASH 46 23.4 23.4 100.01

Total 197 100.0 100.0 j

al

Valid Percent 1 Cumulative Percent

Frequency Percent

A.2 A.3 1

Valid 178 1781

Missing 19 191

A.2

r

,N

b6 None

b7 Other

b3 Dynamic EnerG - USN 1

b4 Sprint 1

, b5 Isoactive

1 Frequency Percent Valid Percent Cumulative Percent'

11 Yes 1 173 87.8 91.1 91.1

Valid 1 2 No 17 8.6 8.9 100.0 I

Total 190 96.4 100.0

Missing System 7 3.6 1

Total 197 100.0

Sports Drinks being sold at gym

1 0 Not Marked

1 Marked

Total

b1 Energade

1

b2 Powerade

I

Branded refrigerator at gym where sports drink is being sold from

0 Not Marked 1 Marked Total 1

Count % Count % Count % 1

rc1 Energade 77 43.3% 101 56.7% 178 100.0%1

c2 Powerade 158 88.8% 20 11.2% 178 100.0%1

100.0%1

100.0%

c3 Dynamic EnerG - USN 32 18.0% 146 82.0% 178

c4 Sprint 178 100.0% 178

c5 Isoactive 178 100.0% 178 100.0%1

c6 None 171 96.1% 7 3.9% 178 100.0%1

100.0%1 c7 Other 175 98.3% 3 1.7% 178

Frequencies

Statistics

Count % Count % Count %

71 39.9% 107 60.1% 178 100.0%

53 29.8% 125 70.2% 178 1100.0%]

28 15.7%1 150 84.3% 178 100.0%1

178 1100.0% 178 100.0%

178 100.0% 178 [100.0%1

176 98.9% 2 1.1% 178 100.0%1

177 99.4% 1 .6% 178 100.0%1

Valid 1 1 x per week T 42 21.3 23.6 23.61

A.3 1

Frequency Percent Valid Percent jCumulative Percent

47 23.9 26.4 26.41

54 27.4 30.3 56.7

24 12.2 13.5 70.11

53 26.9 29.8 100.01

I

1

178 90.4 100.0

19 9.6

197 100.0

1 <1 year

2 1-2 years

Valid

3 2-3 years

174 >3 years

Total

Missing System

Total

66.3

18.9

66.3

85.1 I 92.01

98.31

100.01

6.9

6.3

1.7

100.0

Valid Percent Cumulative Percent

2 2 x per week 50 25.4

3 3 x per week 35 17.8

4 >4 x per week 51 25.9

Total 178 90.4

Missing System 19 9.6

Total 197 100.0

28.1 1 51.71

19.7 1 71.3

28.7 1 100.01

100.01

I 1 I II

Type of activity

0 Not Marked 1 Marked Total

Count Count % Count %

A.4.1 Aerobic/Endurance exercises 68 38.2% 110 61.8% 178 1 00 .0% 1

1 00 .0%1

100.0%1

A.4.2 Flexibility/Stretching exercises 93 52.2% 85 47.8% 178

A.4.3 Strength/Resistance training 80 44.9% 98 55.1% 178

Frequencies

Statistics

8.5 B.6 I

,N Valid 175 1751

Missing 22 221

B.5

Frequency Percent

, Valid

1 <1 week ago 116 58.9

2 1 week ago 33 16.8

3 2 weeks ago 12 6.1

4 3-4 weeks ago 11 5.6

5 >4 weeks ago 3 1.5

Total 175 88.8

Valid Percent Cumulative Percent

14.3 14.31

28.6 42.91

32.6 75.41

16.6 92.01

8.0 100.01

100.0

Missing I System 22 11.2

Total 1971 100.01

B.6

, Valid

Frequency Percent

1 Daily 25 12.7

2 >3 x per week 50 25.4

3 2 x per week 57 28.9

41 x per week 29 14.7

51 x per month 14 7.1

Total i 175 88.8

Missing System 22

197

11 .2

Total 100.0

Importance scale r---

1 Totally unimportant

2 Unimportant

3 Important 4 Very

important Total

Count % Count % Count % Count % Count %

B.7.1 Style and design 13 7.6% 53 30.8% 83 48.3% 23 13.4% 172 100.0%

B.7.2 Colour 21 12.1% 78 45.1% 61 35.3% 13 7.5% 173 100.0%

6.7.3 Nutritional info on bottle 5 2.9% 17 9.8% 56 32.4% 95 54.9% 173 100.0%

B.7.4 Size of bottle 5 2.9% 38 22.2% 69 40.4% 59 34.5% 171 100.0%

B.7.5 Other 2 50.0% 2 50.0% 4 100.0%

Rank scale

Count

13

16

32

33

1 1. Most important

reason

2 2. Second most important

reason

Count Count

B.8.1 Taste 92 52.6% 31 17.7%

13.82 Flavour 35 20.0% 46 26.3%

B.8.3 Provides physical energy

82 47.1% 39 22.4%

B.8.4 Provides mental energy

45 25.7% 33 18.9%

B.8.5 T 62 35.4% 28 16.0%

3 4 5 5. Least important

characteristic Total

Count Count Count

7.4% 27 15.4% 12 6.9% 175 100.0%

9.1% 23 13.1% 55 31.4% 175 100.0%

18.4% 14 8.0% 7 4.0% 174 100.0%

18.9%

26.9%

38

151

21.7% 26

8.6% 23

14.9% 175 100.0%

13.1% 175 100.0% 1-47

Nutrition value

2 Unimportant

3 Important 4 Very

important

% Count I- % Count ! % ICountf

11 i 6.3% 71 40.6% 91 52.0%

53 30.3% 79 45.1% 28 16.0%

5 2.9% 56 32.0% 114 65.1%

14 8.0% 87 49.7% 73 41.7%

11 6.3% 66 37.9% 95 54.6%

Total

Counil.

-I- 1 Totally unimportant

Count T %

B.9.4 Provides mental energy

1 .6%

2 1.1% B.9.5 Nutritional value

B.9.1 Taste of a sports drink

B.9.2 Variety of flavours 15

B.9.3 Provides physical energy

2

Importance scale 2 i

175 100.0%

175 100.0% I

175 100.0%

175 100.0%

174 100.0%

Importance scale 3 r-

1 Totally unimportant

2 Unimportant

3 Important 4 Very

important Total

Count % Count % Count % Count % Count % i

' B.10.1 The brand 11 6.3% 49 27.8% 76 43.2% 40 22.7% 176 100.0%

' B.10.2 Variety of flavours 11 6.3% 52 29.5% 93 52.8% 20 11.4% 176 100.0%

B.10.3 Ingredients on the bottle 8 4.6% 26 14.9% 75 42.9% 66 37.7% 175 100.0%

B.10.4 Technical features 24 13.6% 66 37.5% 72 40.9% 14 8.0% 176 100.0%

B.10.5 Price 23 13.0% 40 22.6% 53 29.9% 61 34.5% 177 100.0%

8.10.6 Association with top sports performers

56 35.9% 46 29.5% 33 212% 21 13.5% 156 100.0%

B.10.7 Other 1 50.0% 1 50.0% 2 100.0%

Rank scale 2

6 6. Least important Total

reason

% Count [ % Count %

1.1% 176 100.0%

3 1.7% 176 100.0%

2.3% 8 4.7% 171 100.0%

19.3% 11 12.5% 88 100.0%

28.3% 15 16.3% 92 100.0%

33.3% 1 16.7% 6 100.0%

18.7% 54 31.6% 64 37.4% 9 5.3% 4

Count % Count % Count % Count

B.11.1 69 39.2% 60 34.1% 45 25.6%

Energade

4 5

% Count

r 21

B.11.2 Powerade 10.2%

B.11.4 Sprint

8.11.5 4 4.3% Isoactive

B.11.6 I prefer drinking something else

17 19.3% 14 15.9%

15 16.3% 9 9.8%

-7-

1 16.7%

•

1 1.1%

2

1 1. Most important

reason

2 2. Second most

important reason

3

B.11.3 Dynamic EnerG -USN

2 33.3%

28 31.8% 17

23 25.0% 26

89 50.6% 66 37.5% 18

32

18 17 9

gender B.6

Val id

N Percent

175 88.8%

Missing Total

N Percent N Percent 1

22 11.2% 197 100.0%

3 2 x per week

2 >3 x per week

1 Daily

r 16

13.3%

4 1 x per week

21 32 40 1 Male

17.5% 9.2% 100.0% 33.3% 26.7% gender

8

Count

% within gender

Count

% within gender

3 551

5.5% 100.0%

14 1751

8.0% 100.0%

2 Female 14.5% 32.7% 30.9% 16.4%

Count

% within gender

29 25 50 57 Total

28.6% 16.6% 32.6% 14.3%

gender * B.6 Crosstabulation r

B.6 J

5 1 x per Total month

11 120

Crosstabs

Case Processing Summary

Cases

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 1.644(a) 4 .8011

Likelihood Ratio 1.679 4 .795

Linear-by-Linear Association 1.480 1 .224

N of Valid Cases 175

a 1 cells (10.0%) have expected count less than 5. The minimum expected count is 4.40.1

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

gender * B.9.1 175 88.8% 22 11.2% 197 100.0%

gender * B.9.2 175 88.8% 22 11.2% 197 100.0%

gender • B.9.3 175 88.8% 22 11.2% 197 100.0%

gender * B.9.4 175 88.8% 22 11.2% 197 100.0%

gender ' B.9.5 174 88.3% 23 11.7% 197 100.0%

gender • B.9.1 Crosstabulation

-r

--r

gender

1 Male

B.9.1

Total 1 Totally

unimportant 2

Unimportant

-7

3 Important

4 Very important

61

50.8%

Count 2 9 48

40.0%

120 1

100.0% % within gender

1.7% 7.5%

2 Female

Count 0 2 23 30 551

% within gender

.0% 3.6% 41.8% 54.5% 100.0%

1 Total Count 2 11 71 91 1751

% within gender

1.1% 6.3% 40.6% 52.0% 100.0%

gender B.9.2 Crosstabulation

B.9.2

r__

1 Totally unimportant

2 Unimportant

3 Important

4 Very

1 important Total

, gender

1 Male Count 10 33 58 19 1201

100.0%1

551

% within gender

8.3% 27.5% 48.3% 15.8%

2 Female

Count 5 20 21 9

cYc. within gender

9.1% 36.4% 38.2% 16.4% 100.0%

1 Total Count 15 53 79 28 175 !

% within gender

8.6% 30.3% 45.1% 16.0% 100.0%

gender B.9.3 Crosstabulation

B.9.3 Total

2 Unimportant 3 Important 4 Very important rt

gender

1 Male Count 5 30 85 120 !

%within gender 4.2% 25.0% 70.8% 100.0%1

55 2 Female

Count 0 26 29

% within gender .0% 47.3% 52.7% 100.0%1

175 !

.----

Total Count 5 56 114

cr. within gender 2.9% 32.0% 65.1% 100.0% I

gender * 8.9.4 Crosstabulation

B.9.4

1 Totally unimportant

2 Unimportant

3 Important

4 Very 1 Total important

53 Count gender

.8%

55 120

45.8%1-100.0% 1 Male % within

gender

1

9.2% 44.2%

11

B.9.5

3 Important

2 Unimportant

1 Totally unimportant

4 Very I Total important

68 119 1 57.1% 100.0%

27 55 1 49.1% 100.0%

95 174

54.6% 100.0%]

10 40

8.4% 33.6% 1 Male % within

gender

Count

gender

2 Count

Female % within gender

Count Total % within

gender

1 26

1.8% 47.3%

11 66

6.3% 37.9%

Total

2 Female

'Count

% within gender

Count

% within gender

3I 341 181 551

5.5% I

61.8% 1 32.7% 100.0% I 1

.0%

1

14I

87 1 73 1751

"7-

.6%

8.0%1 49.7% j 41.7% 100.0%

gender • B.9.5 Crosstabulation

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent I

gender * B.10.1 176 89.3% 21 10.7% 197 100.0% j

gender * B.10.2 176 89.3% 21 10.7% 197 100.0% I

gender • B.10.3 175 88.8% 22 11.2% 197 100.0%

gender • B.10.4 176 89.3% 21 10.7% 197 100.0%

gender * B.10.5 177 89.8% 20 10.2% 197 100.0%

gender * B.10.6 156 79.2% 41 20.8% 197 100.0%

gender • B.10.7 2 1.0% 195 99.0% 197 100.0%

gender B.10.1 Crosstabulation

gender

B.10.1

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

1 Male Count 7 34 49 31 121

% within gender 5.8% 28.1% 40.5% 25.6% 100.0%

2 Female

Count 4 15 27 9 55 - -

% within gender

7.3% 27.3% 49.1% 16.4% 100.0% I

2 Female

1 Male

1 Totally unimportant

5.8%

7

41- 13 34

2 3 Unimportant Important

B.10.2

32.2%

39 59

48.8%

Count

% within gender

Count

% within gender

Count

% within gender

Count

% within gender

40 1 1761

22.7%1100.0%1

4 Very important

16

13.2%

4 551

Total 111 49I 761

1

6.3% 27.8% 43.2% 1

gender * B.10.2 Crosstabulation

, gender

Total

100.0%

Total

1

1211

7.3% 23.6% 61.8% 7.3% 100.0%

11 52 931 20 1761 _J

6.3% 29.5% 52.8% , 11.4% 100.0%

gender • B.10.3 Crosstabulation

B.10.3

4 Very important

Total 1 Totally

unimportant 2

Unimportant 3

Important

21 7 46 120 46 Count 1 Male

, gender

2 Female

% within gender 5.8% 17.5% 38.3% 38.3% 100.0%

Count 1 5 29 20 55

% within gender

1.8% 9.1% 52.7% 36.4% 100.0%

Total Count

% within gender

26

4.6% 14.9%

75

42.9%

66

37.7%

175

100.0%

8

gender * B.10.4 Crosstabulation

1 B.10.4

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

'

, gender

1 Male Count 18 45 46 11 120

% within gender 15.0% 37.5% 38.3% 9.2% 100.0%

2 Female

Count 6

10.7%

21

37.5%

26

46.4%

3

5.4%

561

100.0% % within gender

Total Count 24 66 72 14 1761

% within gender 13.6% 37.5% 40.9% 8.0% 100.0%1

gender * B.10.5 Crosstabulation

-

, gender

1 Totally unimportant

1 Male Count 11

% within gender

9.1%

2 Female

Count 12

% within gender

21.4%

' Total Count 23

% within gender 13.0%

8.10.5

2 1 3 4 Very j Total

Unimportant I Important important

23 37 1

50 , 1211

19.0% 30.6% 41.3%1100.0%1

17 16 11 1 561

30.4% 28.6% 19.6% 100.0%

40 53 611 1771

22.6% 29.9% 34.5% r1;0.0%

gender • B.10.6 Crosstabulation

B.10.6 1-

1 Totally unimportant

2 Unimportant

4 Very 3 important

Important

Total

Count 31 34 27 18 110

% within gender

282% 30.9% 24.5% 16.4% 100.0%

a

Count 25 12 6 3 __1

% within gender

54.3% 26.1% 13.0% 6.5% 100.0%

Count 56 46 33 21 1561

100.0% % within gender 35.9% 29.5% 21.2% 13.5%

gender " B.10.7 Crosstabulation

B.10.7 Total

2 Unimportant 3 Important

, gender

1 Male Count 0 1 1

% within gender .0% 100.0% 100.0%

2 Female Count 1 0 1

% within gender 100.0% .0% 100.0%

Total Count 1 1 2

% within gender 50.0% 50.0% 100.0%

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N I Percent 1 N !Percent N 1 Percent(

1 Mal

, gender

2 Femal

:Total

Count

100.0% 28.7% 8.0% 32.2% 16.7%

5j

% within 31.3% race

Count 25

% within 14.4% race

4 Indian 5

25.0% 31.3% _ _

50 56

21 0 161

12.5%1 .0% 100.0°k]

29 14 1741 ' Total

race* B.6 1174 1 88.3%1231 11.7%11971 100.0%

race * B.6 Crosstabulation

B.6

1 I Daily

2 >3 x per 1 week

3 2 x per week

4 1 x per week

' 5 1 x per 1 month

1 Black Count I 71 24 21 12 7

1( % within race 9.9% 33.8% 29.6% 16.9% 9.9%

2 Coloured

Count 0

.0%1-

7 9 -- -

50.0%

2 _ _ _

11.1%

0 __ _ _.

.0%

-

1( % within race

38.9%

3 White Count 13 15 21 13 7

% within race

18.8% 21.7% 30.4% 18.8% 10.1% 1(

Chi-Square Tests r

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 16.355(a) 12 .1761

Likelihood Ratio 20.674 12 .0551

Linear-by-Linear Association 1.340 1 .247

' N of Valid Cases 174

a 7 cells (35.0%) have expected count less than 5. The minimum expected count is 1.29]

Symmetric Measures

Value Approx. Sig.

, Nominal by Nominal Phi 307 .1 .176

Cramer's V .177 .1761

N of Valid Cases 174

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.]

Crosstabs

Case Processing Summary

Cases

r Valid 1 Missing Total

, race

otal

71

181

0.0%

69j

0.0%1

, Total

4 Indian % within race

Count

% within race

Count

.0%

2

1.1%

0

0 6

.0% 37.5%

11 70

6.3% 40.2%

10

62.5%

91

52.3%

100.0%

174

100.0%

16

171 Totally unimportant

B.9.1

2 Unimportant Total

3 Important 4 Very important

2

2.8%

0 0 10 8 181

.0% .0%-{ 55.6% 44.4% , 100.0% ,

0 5 27 37 69

% within race .0% 72% 39.1% 53.6% 100.0%

r-

race

Count 1 Black

% within race

Count 2 Coloured

% within race

Count 3 White

6 27

8.5% 38.0%

36 71J

50.7% 100.0%

race * B.9.2 Crosstabulation

B.9.3

2 Unimportant 3 Important 14 Very important Total

1 Black Count

% within race

2 Coloured Count

2

2.8% 35.2%

0

44 711

62.0% 100.0%

16 18j

race 25 1

2 I

N 1 Percent N Percent 1 N I Percent j

race ' B.9.1 174 88.3% 23 11.7%1197 100.0%

race * B.9.2 174 I 88.3% 23 11.7%1197 100.0% i

race ' B.9.3 174 88.3% 23 11.7% 1197 100.0% I

i race' B.9.4 174 88.3% 23 11.7%1197 100.0% 1

race * B.9.5 173 87.8% 24 12.2%1197 100.0%

race * B.9.1 Crosstabulation

B.9.2 Total

1 Totally unimportant 2 Unimportant 3 Important 4 Very import important

T 1 Black

Count 6 18 33

46.5%

14

19.7%

71j

100.0% % within race 8.5% 25.4%

2 Coloured Count 3 6 8 1 18

% within race 16.7% 33.3% 44.4% 5.6% 100.0%

3 White Count 3 26 31 9 69

% within race 4.3% 37.7% 44.9% 13.0% 100.0%

4 Indian Count 3 3 7 3 16

% within race 18.8% 18.8% 43.8% 18.8% 100.0%

I Count 15 53 79 27 174

% within race 8.6% 30.5% 45.4% 15.5% 100.0°/.11

race B.9.3 Crosstabulation

, race

Tota

i 3 White

4 Indian

, Total

Pie within race I .0% 11.1% 88.9%1100.0%1

Count 1 3 24 1 42 69

% within race I 4.3% 34.8%1 60 9% 1 100 0%

Count I 0 51 111 161

% within race 1 .0% 31.3% I ' 68.8%1100.0%1

Count I 5 56 1 113 1 1741

% within racel 2.9% 32.2%1 64.9%1100.0%1

1 Black

race

Total

Count

% within race

2 Coloured Count °A within race

Count 3 White

% within race

Count 4 Indian

% within race

Count

% within race

j

B.9.4 I

1 Totally unimportant 2 Unimportant 3 Important 4 Very important Total

1 7 38 25 71I

1.4% 9.9%f 53.5% 35.2%1100.0e/0j

10

0 0 8 18j

.0% .0% 44.4% 55.6% 100.0%

0 5 32 32 69

.0% 7.2% 46.4% 46.4%1100.0%

5

31.3%

72

41.4%

race B.9.4 Crosstabulation

.0%

.6%

0

2 9

12.5% 56.3%

14 87

8.0% 50.0%

16

100.0%

174

100.0%

race ° B.9.5 Crosstabulation

B.9.5 Total

1 Totally unimportant 2 Unimportant 3 Important 4 Ve Very important

1 Black Count 1 4 33 32 70

% within race 1.4% 5.7% 47.1% 45.7% 100.0%

2 Coloured Count 0 0 6 12 18

% within race .0% .0% 33.3% 66.7% 100.0%

3 White Count 1 6 23 39 69

% within race 1.4% 8.7% 33.3% 56.5% 100.0%

4 Indian Count 0 1 4 11 16

% within race .0% 6.3% 25.0% 68.8% 100.0%

Count 2 11 66 94 173

% within race 1.2% 6.4% 38.2% 54.3% 100.0%

Crosstabs

Case Processing Summary

Cases

1 Valid Missing Total ! _J

, race

t---

Total

B.10.1

T -{--- 2 Unimportant 3 Important 4 Very important

Total

38.9% 1 44.4%

25 29

41.4%

4

25.0%

75

42.9%

711

100.0%1

181

5.6% 100.0%1

12 701

17.1% 100.0%1

7 161

43.8% 100.0%

40 1751

22.9% 100.0%1

121 34 20

16.9%1 47.9% 28.2%

7I 8I 1

35.7%

5

31.3%

49

28.0%

1 1 rt 1 Totally unimportant 2 Unimportant 3 Important

B.10.3

4 Very important Total

N Percent N Percent N Percent I

race* 8.10.1 175 88.8% 22 11.2% 197 100.0% I

race * B.10.2 175 88.8% 22 112% 197 I 100.0%1

100.0% 1 I race* B.10.3 174 88.3% 23 11.7% 197

race • B.10.4 175 88.8% 22 11.2% 197 100.0%

race' B.10.5 176 89.3% 21 10.7% 197 100.0%1

race* B.10.6 155 78.7% 42 21.3% 197 100.0%1

100.0%1 race* B.10.7 2 1.0% 195 99.0% 197

race • B.10.1 Crosstabulation

1 Totally unimportant

Count 5 1 Black

% within race 7.0%

Count 2 2 Coloured

% within race 11.1% , race

Count 4 3 White

% within race 5.7%

Count 0 4 Indian

within race .0%

Count 11 Total

% within race 6.3%

race • B.10.2 Crosstabulation

B.10.2 Total

1 Totally unimportant 2 Unimportant 3 Important 4 Very important

, race

,

1 Black Count 4 15 42 10 71

% within race 5.6% 21.1% 59.2% 14.1% 100.0%

2 Coloured Count 3 5 9 1 18

% within race 16.7% 27.8% 50.0% 5.6% 100.0%

3 White Count 1 29 34 6 70

% within race 1.4% 41.4% 48.6% 8.6% 100.0%

4 Indian Count 3 3 7 3 16

% within race 18.8% 18.8% 43.8% 18.8% 100.0%

, Total Count 11 52 92 20 175

% within race 6.3% 29.7% 52.6% 11.4% 100.0%

race • B.10.3 Crosstabulation

race 1 Black Count

4 11I 26

301 711

74

66 1741

42.5%

37.9% 100.0%1

i, within race 5.6% 15.5%

2 Coloured Count 1 1

% within race 5.6% 5.6%

3 White Count 3 12

% within race 4.3% 17.1%1

Count 0 2 4 Indian

% within race .0% 13.3%

Count 8 26 , Total

% within race 4.6% 14.9%

36.6% 42.3% 100.0%

8T 8 18

44.4% 44.4% 100.0%1

32 23 701

45.7% 32.9% 100.0% I

8 5 15]

53.3% 33.3% 100.0%

B.10.6 Total

1 4 Very important

1 Totally unimportant 2 Unimportant 13 Important

race * B.10A Crosstabulation

B.10.4

1 Totally unimportant 2 Unimportant 13 Important

Count 7 29 1 28 1 1 Black I

% within race 10.0% 41.4% 1 40.0%

2 Coloured Count 0 11 1 5

, race 31

43.7%

7

% within race 25.0% 25.0% 43.8% 6.3% 100.0%

Count 24 66 71 14 175

% within race

13.7%

37.7% 40.6%

8.0% 100.0%

race • B.10.5 Crosstabulation r-

B.10.5 Total

1 Totally unimportant 2 Unimportant 3 Important 4 Very import

important

r-

, race

1 Black Count 3 17 26 25 71 1

% within race 4.2% 23.9% 36.6% 35.2% 100.0%1

18 2 Coloured

Count 2 7 4 5

% within race 11.1% 38.9% 22.2% 27.8% 100.0%1

71)

100.0%1

161

100.0%1

3 White Count 13 11 17 30

% within race 18.3% 15.5% 23.9% 42.3%

4 Indian Count 5 5 5 1

% within race 31.3% 31.3% 31.3% 6.3%

, Total Count 23 40 52 61 1761

100.0%1 % within race 13.1% 22.7% 29.5% 34.7%

race • 8.10.6 Crosstabulation

4 Very important Total I

6 70

8.6% 1-100.0%1

3 White

4 Indian

% within race .0% 61.1%

Count 13 22

% within race 18.3% 31.0%

Count 4 4

1 27.8%

2 181

11.1% 100.0%1

5 711

7.0% 100.0%1

1 161

, Total

Count 19 16

within race 29.2% 24.6%

Count 8 6

% within race 50.0% 37.5%

Count 25 19

% within race 41.0% 31.1%

Count 4 5

within race 30.8% 38.5%

Count 56 46

% within race 36.1% 29.7%

1 Black

2 Coloured

race 1_

1 3 White

4 Indian

Total

15 1 15, 651

23.1% I

23.1% 100.0%

21

0 161

12.5%1 .0% 100.0%1

121

5 61 1

1

19.7%

8.2% 100.0%1

3

1 131

23.1%

7.7% 100.0%1

32

21

1551

20.6%

13.5% 100.0%

race * B.10.7 Crosstabulation

; race

B.10.7 Total 1

2__I

2 Unimportant I c 3 Important

1 1 1 Black Count 1

% within race 50.0%1 50.0% 100.0%

, Total Count 1 1 1 2

% within race 50.0%1 50.0% 100.00/d

Crosstabs

Case Processing Summary

Cases r Valid Missing Total

N Percent N Percent N Percent I

A.1 * B.6 175 88.8% 22 11.2% 197 100.0%

A.1 * B.6 Crosstabulation ,

1 1- B.6

Total 1 Daily

2 >3 x per week

3 2 x per week

41 x per week

51 x per month

4 A.1

1 18-24 years Count 17 40 45 26 13 1411

100.0!,1

341

% within A.l

12.1% 28.4% 31.9% 18.4% 9.2%

2 25 years or older

Count 8 10 12 3 1

% within A.1

23.5% 29.4% 35.3% 8.8% 2.9% 100.0%

' Total Count 25 50 57 29 14 175_1

100.0% % within A.1

14.3% 28.6% 32.6% 16.6% 1 8.0%

Chi-Square Tests !

Value I df ' Asymp. Sig. (2-sided) 1

Pearson Chi-Square 5.509(a)1 4f .239

Likelihood Ratio 5.783 41 .2161

Linear-by-Linear Association 4.526 1 1 .033 1

' N of Valid Cases 175 I 1

a 2 cells (20.0%) have expected count less than 5. The minimum expected count is 2.72.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .177 1 .2391

Cramer's V .177 1 .2391

175 1 J

I

N of Valid Cases

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

Crosstabs

Case Processing Summary

Cases I Valid Missing Total j

N Percent N Percent N Percent I

A.1 ' B.9.1 175 88.8% 22 11.2% 197 100.0%_1

100.0%1

100.0%1

100.0% I

A.1 ' B.9.2 175 88.8% 22 11.2% 197

1 A.1 * B.9.3 175 88.8% 22 11 .2% 197

A.1 * B.9.4 175 88.8% 22 11 2% 197

A.1 * B.9.5 174 88.3% 23 11.7% 197 100.0% I

A.1 * B.9.1 Crosstabulation

B.9.1

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

, A.1

Total

1 18-24 years Count 1 8 57 75 141

% within . A 1

.7% 5.7% 40.4% 53.2% 100.0%

2 25 years or older

Count 1 3 14 16 34 1

% within A.1

2.9% 8.8% 41.2% 47.1% 100.0%

Count 2 11 71 91 1751

% within A.1

1.1% 6.3% 40.6% 52.0% 100.0%]

A.1 B.9.2 Crosstabulation

B.9.2

3 4 Very

tal ry Important I important

1 Totally 2 unimportant 1 Unimportant

1 18-24 years

, A.1

, 2 25 years or older

r--

1 Count

1 °Akrithin

Count

% within A.1

Count

% within A.1

1 1 1

11 ; 431 62 i 251 141 r

7.8%1

1

30.5%1 44.0% 1 17.7% 100.0%1

. ---t-1

10 - -

4 I

17 3 ,

34i

11.8%1 29.4%1 50.0%1 8.no, 100.0%

; 8.8%

i 1

151 531 791 281 1751

8.6%1 30.3% 45.1%1 16.0%1100.0%1

1 18-24 years

A.1

2 25 years or older

' Total

1 18-24 years

A 1 1 , 12 25 years or older

, Total

A.1 ° B.9.3 Crosstabulation

,

B.9.3 Total

2 Unimportant 3 Important I

46 1

4 Very important

Count 41 91 141 1

% within A.1 2.8% 32.6% 64.5% 100.0%1

341 Count 1 10 23

% within A.1 2.9% 29.4% 67.6% 100.0%1

1751 Count 5 56 114

% within A.1 2.9% 32.0% 65.1% 100.0%1

A.1 B.9.4 Crosstabulation ,

.

, A.1

,

B.9.4

Total 1 Totally

unimportant 2 3

Unimportant Important

4 Very important

1 18-24 years Count 1 12 74 54 1411

% within A.1

.7% 8.5% 52.5% 38.3% 100.0%1

341 2 25 years or older

Count 0 2 13 19

% within A.1

.0% 5.9% 38.2% 55.9% 100.0%

r---

Total Count 1 14 87 73 175

% within A.1

. 6% 8.0% 49.7% 41.7% 100.0%

A.1 * B.9.5 Crosstabulation

B.9.5

4 Very I Total

1401

100.0%1

25 341

73.5% 100.0%

2 Unimportant

3 Important

1 Totally unimportant

2

1.4%

Count

% within A.1

important

10 58 70

7.1% 41.4% 50.0%

1 8

2.9% I 23.5%

0

% within A.1

.0%

Count

- Count

--r 2 11 66 95

• Total % within

A.1 1.1% 1 6.3% 37.9% 54.6%

174 , _ 100.0%;

B.10.1

1 Totally unimportant

2 Unimportant

3 Important

4 Very important

, A.1

1 18-24 years Count 9 37 64 32

% within A.1 6.3% I 26.1% 45.1% 22.5%

2 25 years or older

Count 2 12 12 8

% within A.1

5 .9% 35.3% 35.3% 23.5%

' Total Count 11 49 76 40

% within A.1

6.3% 27.8% 43.2% 22.7%

Total

142

100.0%

341

100.0%

1761

100.0%_d

Crosstabs

Case Processing Summary

Cases

Valid Missing f Total 1

N Percent N Percent 1 N Percent'

A.1 * B.10.1 176 89.3% 21 10.7%1197 100.0%1

A.1 * 8.102 176 89.3% 21 10.7% 197 100.0%

A.1 • B.10.3 175 88.8% 22 11.2% 197

197

197

100.0%1

100.0%1 A.1 ' 8.10.4 176 89.3% 21 10.7%

I 10.2% A.1 * 8.10.5 177 89.8% 20 100.0%1

eA.1 • B.10.6 156 79.2% 41 20.8% 197 100.0% 1

A.1 * B.10.7 2 1.0% 195 99.0% 197 100.0%

A.1 * B.10.1 Crosstabulation

A.1 B.10.2 Crosstabulation

8.10.2

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

A.1

1 18-24 years Count 9 40 77 16 1421

100.0%1

341

% within A.1 6.3% 28.2% 54.2% 11.3%

2 25 years or older

Count 2 12 16 4

% within A.1 5.9% 35.3% 47.1% 11.8% 100.0%

Total Count 11 52 93 20 176J

100.0% % within A.1

6.3% 29.5% 52.8% 11.4% 1

A.1 * B.103 Crosstabulation

, A 1

I Total

B.10.3

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very I important

1 18-24 years Count 8 59 52 1411

% within A.1

5 .7% 15.6% 41.8% 36.9% 100.0%1

341

100.0%

2 25 years or older

Count 0 4 16 14

% within A.1

.0% 11.8% 47.1% 41.2%

Count 8 26 75 66 175]

100.0% % within A.1

4.6% 14.9% 42.9% 37.7%

A.1 * B.10.4 Crosstabulation

■

r---

, A 1

,

B.10.4

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

1 18-24 years Count 20 57 53 11 141

% within Al.

14.2% 40.4% 37.6% 7.8% 100.0%

2 25 years or older

Count 4 9 19 3 35

% within A.1

11.4% 25.7% 54.3% 8.6% 100.0%

' Total Count 24 66 72 14 176

% within A.1

13.6% 37.5% 40.9% 8.0% 100.0%

A.1 * B.10.5 Crosstabulation

B.10.5

Total 1 Totally

unimportant 2

Unimportant 3

Important

4 Very important

'

A.1

1 18-24 years Count 14 32 44 52 142

% within A.1

9.9% 22.5% 31.0% 36.6% 100.0%

225 years or older

Count 9 8 9 9 351

% within A.1

25.7% 22.9% 25.7% 25.7% 100.0%

' Total Count 23 40 53 61 1771

100.0% % within A.1 13.0% 22.6% 29.9% 34.5%

A.1 * B.10.6 Crosstabulation

B.10.6

1 Totally 2 unimportant Unimportant

3 Important

4 Very important

1 Total

,

A.1

,

1 18-24 years Count 41 43 29 17 1301

% within A.1 31.5% 33.1% 22.3% 13.1% 100.0%

2 25 years or older

Count 15 3 4 4 261

% within A.1 57.7% 11.5% 15.4% 15.4% 100.0%

Total Count 56 46 33 21 1561

100.0%] % within A.1 35.9% 29.5% 21.2% 13.5%

A.1 * B.10.7 Crosstabulation

B.10.7 Total

2 Unimportant 3 Important

, A.1 1 18-24 years Count 1 1 2

I % within A.1 50.0% 50.0% 100.0%

Total Count 1 1 2

% within A.1 50.0% 50.0% 100.0%1

Crosstabs

Case Processing Summary

i

Cases

Valid Missing Total

N Percent N Percent N Percent

' location * b1 178 90.4% 19 9.6% 197 100.0%

. location • b2 178 90.4% 19 9.6% 197 100.0%

t location * b3 178 90.4% 19 9.6% 197 100.0%

location * b4 178 90.4% 19 9.6% 197 100.0%

location * b5 178 90.4% 19 9.6% 197 100.0%

' location * b6 178 90.4% 19 9.6% 197 100.0%

location * b7 178 90.4% 19 9.6% 197 100.0%

location • b1 Crosstabulation

r

b1: Energade Total

0 Not Marked 1 Marked

, location

■

1 UJ Count 50 0 50

% within location 100.0% .0% 100.0%

2 PTA Count 2 99 101

% within location 2.0% 98.0% 100.0%

3 MONASH Count 19 8 27

% within location 70.4% 29.6% 100.0%

b2 Powerade

0 Not Marked 1 Marked

Count 50 0

cYo within location 100.0% .0%

Count 0 101

% within location .0% 100.0%

Count 3 24

% within location 11.1% 88.9%

Count 53 125

% within location 29.8% 70.2%

1 UJ

location 2 PTA

3 MONASH

Total

Total

501

100.0% I

101)

100.0%1

271

100.0cYd

1781

100.0%

b3 Dynamic EngerG

1 Marked Total J

0 Not Marked

Count 1 49

% within location 2.0% 98.0%

Count 4 97

% within location 4.0% 96.0% 100.0%

Count 23 4 27

50 1 UJ

100.0%

101 2 PTA

3 MONASH

, location

% within location

Count

% within location

14.8% 100.0%

150 178

15.7% 84.3% 100.0%

85.2%

28 Total

Total Count 71 1 107 178

% within location 39.9%1 60.1% 100.0%

location * b2 Crosstabulation

location * b3 Crosstabulation

location • b4 Crosstabulation

b4 Sprint I

Total 0 Not Marked

location

,---

1 UJ Count 50 50

% within location 100.0% 100.0%

2 PTA Count 101 101

% within location 100.0% 100.0%

3 MONASH Count 27 27

% within location 100.0% 100.0%

Total Count 178 178

% within location 100.0% 100.0% I

location b5 Crosstabulation

1 b5 lsoactive Total I

I I

1 UJ

r0 Not Marked

I I Count I 50 501

% within location I 100.0% 100.0%1

location 2 PTA Count 1 01 101

% within location 100.0% 100.0%1

Count 27 271

% within location 100.0% 100.0%

Count 178 1781

% within location 100.0% 100.0% , Total

3 MONASH

location * b6 Crosstabulation

b6 None

0 I Not Marked 1 Marked !

Total i

1 UJ Count 50 01 501

% within location I 100.0% .0%1100.0%1

location 2 PTA Count 101 0 101 1

% within location 100.0% .0% 100.0%1

3 MONASH Count 25 2 271

% within location 92.6% 7.4% 100.0%1

Count 176 2 1781 Total ,

% within location 98.9% 1.1% 100.0%I

location b7 Crosstabulation C

b7 Other Total

0 Not Marked 1 Marked

■

, location

■

1 UJ Count 50 0 50

cY. within location 100.0% .0% 100.0%

2 PTA Count 100 1 101

% within location 99.0% 1.0% 100.0%

3 MONASH Count 27 0 27

% within location 100.0% .0% 100.0%

Total Count 177 1 178

% within location 99.4% .6% 100.0%

2099 -02- 2 6

2011 -03- 3 0

X099 -05- 11 9

UNOVERSITY OF JOH NNESIBURG UNOVERSFEOT VAN JOH NNESBURG

AUCKLAND PARK KINGSWAY CAMPUS / KAMPUS POSBUS 524 BOX 524

AUCKLAND PARK 2006

Tel: 011 559-2165

This item must be returned on or before the last date stamped. A renewal for a further period may be granted provided the book is not in demand. Fines are charged on overdue items.