ABSTRACT
In today's rapidly developing and highly competitive trade, the use of a special brand is necessary. The brand is the most valuable assets for the company and advertising is the most effective way to build brand awareness. This study examines the effect of out of home advertising on building brand awareness. The moderating role of the Latin alphabet used in the text is also examined in the relationship between outdoor advertising and brand awareness. The collection of the data was based on quantitative methods, the questionnaire was sent to the respondents through e-mail. Data analysis was performed via Smart PLS software. Results of the research indicated that outdoor advertising is effective marketing tool to build brand awareness. However, type of the alphabet used in the text do not moderate the relation between outdoor advertising and brand awareness. Taking all the details, the practical implication of the study would be that effect of the new Latin script on perception of the text in outdoor ads.
Keywords: Brand, brand equity, brand awareness, advertising, outdoor advertising.
1. INTRODUCTION
Today brand names play a significant role in customer purchase decisions, many customers trust to the brand because branded products have a high quality, status in society and brands are reliable. Most of the customers which have the high awareness about the specific brand became loyal to those brands. The branding is the strategy of market segmentation and product differentiator. The company not just have a name and symbol that identifies them, with the help of the brand name they can gain a good image and reputation among customer. The brand image requires a corporate long term involvement and high level of efforts to the brand building which need resources and skills (Kapferer, 2004)
While previous studies have focused mainly on identifying and measuring the brand awareness concept and understanding its effect on customer and causes of the effect, there is a broad agreement that one of the main factors affecting the awareness of the brand is advertising (Aaker & Biel, 2005). Outdoor advertising considered to be the most effective medium in advertisement as it can give opportunity to target costumer. As many customers spend their large span of time traveling on roads or use public transportation for traveling, companies use outdoor advertising for targeting their customers. Outdoor Advertising Association of America, Inc. (2015) for out of home advertisement the most impactful and largest medium of advertising is billboard. History of out of home advertising starts when Jared Bell in 1800s used large circus poster to the public. Since that moment, outdoor advertising has been used by world brands (HISTORY OF OOH, 2015).
The outdoor advertising market in Kazakhstan began to develop actively since the early 90s. Outdoor advertising in Kazakhstan has become a fairly stable and promising type of business. Statistics on the distribution of advertising budgets by the mass media of Kazakhstan show that the share of outdoor advertising in the total amount of "promotional pie" in 2000 was about 8%. This figure is comparable with the European indicators and allows us to confidently judge that in Kazakhstan, world trends in the growth of outdoor advertising popularity are being realized. According to statistics outdoor advertising expenditure in Kazakhstan was 86 million U.S. dollars in 2016 and expected to reach 92 million U.S. dollars in the next 2 year.
Despite the previous researches on building brand awareness through advertising, limited research has been done about outdoor advertising to establish the impact of this marketing communications mix on increasing brand awareness . A review of the literature shows very few studies (Fredrik&Veronika, 2015; Aaker & Biel 1993; Mazzarol, 2006) that concentrate on outdoor ads. Thus, in order to contribute to fulfilling this gap in the literature, the aim of this research is to examine the effect of the outdoor advertising on build strong brand awareness.
This research will demonstrate the importance of using advertising as a strategic tool for building brand awareness.
In October 26, 2017, the Head of State signed a decree "On translating the Kazakh alphabet from Cyrillic alphabet to the Latin script." These changes in the Kazakh alphabet brought a lot of contradictory opinions among the citizens of Kazakstan. So this decision influenced the poetic attitude between other countries, especially with Russia, who took this change as a step towards the renewal of relations between the two countries. Despite all of these poetic aspects, sooner or later the Kazakh alphabet will change and we must be prepared. Many companies have already changed their name to the Latin script. For example, in 2016 bank KAZKOM made a rebranding by changing name and logo to QAZKOM. Also our President indicated that in 2025 all official paperwork and publications will be in the new Latin script. The question is does this changes will effect to the customer’s perception of the text in outdoor advertising? What will happen with outdoor advertising in Kazakhstan if alphabet changes? Some companies ignore the changes in alphabet and don’t pay attention to that. But this change in alphabet can bring a good opportunity to the company in form of Latin rebranding and company can use it as a new marketing strategy. Company can make rebranding in Latin as tool of new brand awareness like “Qazkom” and change their position in market.
Building reputable brand in Latin has been the main deriver for success in a competitive market. Importance of advertising to enhance brand awareness in Kazakhstan is underestimated. First of all, brand is very important element of a company. The company, without its special and individual brand, is doomed to a quick failure in its activities. This is expressed in the loss of the main market or part of it; loss of customer interest in the company's products.
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The main objective of the study is to examine the influence of outdoor advertising on building brand awareness, in case of different types of alphabet.
1.5 Contribution of the Study
The importance of the study is to provide better understanding of role of alphabet in brand awareness and outdoor advertising. The research is expected to be useful to the following parties:
Theoretical Contribution
This research is going to be important for researcher who has interest to increase the knowledge about building brand awareness through outdoor advertising. Also they will get information about the effect of the type of alphabet used in the text on brand awareness. To understand the affect of Latin alphabet used in the text on the relation between outdoor advertising and brand awareness. This study also expected to be important for another researcher, where it cаn be used аs а body of knowledge regarding same topics.
Practical Contribution
The finding of the research expected to help company find out the effect of the change in the alphabet and customer perception of the text in outdoor ads. Also study can help see impact of the outdoor advertising on building brand and to create new brand with the help of the Latin alphabet.
2.1 The concept of a brand and advertising
The brand is the main thing which differentiates certain products and companies. The brand has so wide range of uses and so many determinations. According to Heidi Cohen (2011), a brand is a personality that your company, product, or service has over time. The brand incorporates both visual aspects and communicated aspects, as well as the perceived personality from other outside the company. Visual aspects are logos, graphics, colors, sounds and video, where is personality, culture, experience and conscience and the people within corporation are communicated aspects. According to Holt (2004), brand it is not only logos, graphics, trademark, name that creates visual aspect of the brand, it is necessary for the product to have a history in order to become a brand. De Chernatony and McDonald (1998), believes that successful brand is what the consumer think the closest mach to own needs through uniqueness. Blackwell et al (2001) hаs come to the conclusion thаt is consumer hаve а problem or а dissаtisfаction or further requirement they will not buy а product.
The brand also can be determined as the "relationship" with the consumer. The relationship is built on experiences, and the relationship with a consumer is the sum of his experiences with specific brand. This relationship may lead to the trust, so that’s why customer prefer specific brand than another unknown products. Millward Brown(2013), says that strong brands are "trustmarks." Positive аssociation with brаnd nаme leаd to increаse in consumer perception of quаlity and purchase rates along with positive customer evaluations (Weitz and Wensley, 2005). Attitude towards the brаnd, customer confidence and purchase intention аlso increase when consumer is already familiar with the brand (Weitz and Wensley, 2005). Аt the sаme time positive аssociation with brаnd cаnnot sustаin infinitely. Golder (2006) cited in (Weitz & Wensley, 2005) found that so many leаding brаnds in the market lost their leadership over а period of 76 yeаrs.
According to Doostar, Akhlagh, and Abadi (2012) study the brand help to receive a competitive advantage and used as an important tool of the corporations in receiving competitive advantage. Brand strength is multidimensional structure with customer opinion. The brand has two different parts, which are the face and soul. Outer attributes expressed by face, like appearance and package of the product. While main personality, history and behavior of the brand expressed by the soul. Building the soul of the brand requires courage to uncover the vulnerable side of the brand it is more difficult than creating the face by visual and communication tools. Brand can be anything, not just a name of the big enterprise but also a service, product, person, country, city and even village. The best brand along with the face should has a heart and soul with it. (Kotler and Armstrong, 2010)
2.1.1 Brand Equity concept
The concept of the brand equity was first mentioned in the 1980s and considered to be one of the most popular and potentially important marketing concepts. However, its appearance meant both good news and bad news for marketers. The good news is that, with the brand equity organizations started to use brand as marketing strategy and rise focus for managerial interest and research activity. The bad news is that, the concept has been studied in several different ways for a number of different purposes. There is no common point of view on how to conceptualize and measure brand equity (KL. Keller, 2011).
Name, sign and logo of the brand can bring a power in the market and that power called brand equity (Farquhar 2009). The concept of brand equity has been mentioned in different sources of literature, and there is no agreement on the definition because of the difficulties experienced by practitioners and marketers in measuring equity. There are, apparently, two approaches to determining the brand equity, namely the consumer and financial perspective. According to Simon and Sullivan (2010) brand equity is defined as the brand value for a firm. Keller (2011) and Aaker (2009) agree with the statement that brand equity means the value imposed to the brand by the consumer. One of the main difficult questions facing by brand managers is how to develop understanding of the relationship between brand equity and customer loyalty (Taylor,2004). Brand equity provides a solid platform for the introduction of new products and isolates the brand from competitive attacks. In terms of trade, brand equity contributes to the overall image of retail trade. It creates store traffic, provides a constant volume and reduces the risk when allocating space on the shelf (Cobb-Walgren 1995). However, the researcher Farquhar (2009) said that if brand does not make any difference to the consumer, there will not automatically be any value to investors, retailers and manufacturer unless there is value to the consumer.
The value of the brand in the market is defined by the brand equity (Keller 2011). Despite the abundance of definitions the meaning of the brand equity is often not fully or clearly understood. The brand with high equity or high brand value means that it can create a kind of positive differentiаl response in the mаrket. This means that your brand is easily recognized in advertising or other commercials, also it means that your brand is the first brand recommended to others. All this positive responses about the brand is an easily recognizable brand, the brand which is quickly and easily remembered as necessary, one that people are willing to pay for the premium price, and the brand is recommended to others (Keller 2011)..
According to Keller (2011) the concept of customer-based brand equity occurs when a consumer has a high level of awareness of the brand and familiarity with it and holds in memory some strong, favorable and unique brand associations. But sometimes strong brand awareness can be enough to build favorable consumer response; for instance, in decisions with a low level of participation, when consumers are ready to buy product with mire familiar brand name (Keller 2011).
Brand awareness is responsible for the ability of the customer to recognize or recall the company's trademark at the time of making the choice or just before purchasing the product. Knowledge of goods is measured in% and means the proportion of the audience that is familiar with the product of the company and can identify the brand within the product category.
Brand awareness consist two different parts brand recall and brand recognition. Brand recognition is the ability of consumers to confirm the preliminary exposure to the brand when the brand was given in a cue. In other words, while purchasing particular product, will the customer recognize the brand as the one to which they have already been exposed? The next concept is brand recall, which defines as the ability of consumers to retrieve a brand from memory when specifying the product category, the needs fulfilled by the category, or the usage situation as a cue (Keller, 2011).
According to Keller (2011) importance of the brand awareness is that, it can bring a chance that the brand will come to the mind of customer at time of purchase.
The awareness of the brand reflects for what the brand stands for. Building brand can be carried out by repeating the brand name to consumers. The more experience customer has through name, logo, symbol, outdoor advertising or packaging the greater the probability that brand will stay in the mind of the customer. The brand awareness strengthen the association with brand and consumer may chose it as a part of consideration set (Keller, 2012).
Previous studies show that combination of the elements like sense of presence and interactivity positively effect on remembering brand and can change attitude toward the brand (Keng,Vang & Christy, 2014). However, many of this researches focused on TV and online advertising.
In the study of Keng and Lin (2006) they examined the effect of the Internet advertising on brand recall in the level of the presence in the context. This presence was divided into three levels like content, personal and social presence. Daurghrty and Biocca (2012) on their study measured the effect of the presence in three -dimensional advertisement space on building product knowledge.
2.1.3 Outdoor Advertising
Outdoor advertising is more old and spread tool of a communication (Roux T, 2014). The concept of the OOH or “out-of-home” and “outdoor” comes from the meaning out-side of the home (Fill, 2009). Outdoor advertising have to be located in the area with high visibility and where targeted people are most likely to see it, for instance in the moving transit, buildings, public facilities, in leisure zones, in parking lots and stationary transport, which gives free hands for individual advertising. (Roux T, 2014) For extensive coverage marketers can use outdoor advertising as the main or support media in campaigns (Raninen and Rautio, 2002). It is stated that human being spend almost third of his time outdoors by travelling with cars, trains, buses, bikes and taxis. The outdoor ads can make the travelling more entertaining on the road. Outdoor advertising media includes billboards and banners, posters, digital and mobile hoardings, transit ads in vehicles and others.
Authors of the different textbooks and academic researchers have defined variety of characteristics of the billboard and outdoor ads (e.g.,Vanden Bergh and Katz 1999; Kelly and Jugenheimer 2004; Taylor 1997; Woodside 2002). The advantages of outdoor advertising are that it offers potential placement of the ads close to the point of sale, long exposing time, 24-hour presence, effects on peoples’ choices, economic efficiency in term of low costs and has durability and level of trust (Chunawalla and Sethia, 2008). Limitations of the outdoor advertising includes the number of words should be limited, difficultness to collect statistic data from people exposed to advertisement. However, some studies found that creative execution could increase awareness and take attention to billboards.
2.1.4 Influence of advertising on brand awareness
Advertising has several ways to effect on brand and on creation of the awareness. In creation of brand awareness marketing communications play great role, especially advertising (Flemming & Christensen, 2006). Advertising has ability to create recall and recognition of the brand, can build awareness of certain product (Vuokko, 2008). Creation of a strong brand awareness is main goal of the company, as it increase the likelihood of being part of the consideration process in consumer’s mind. Awareness of the brand leads to the brand knowledge and brand image, which create strong brand relation.
Cobb-Walgren (2009) in his research found that advertising can affect the brand awareness in a number of ways. With the help of the advertising marketers can create awareness of the brand and increase the likelihood that the brand is included in the evoked set of consumers. Also advertising can influence perceived quality of the brand and usage experience with the brand (Cobb-Walgren 2009). Cobb-Walgren (2009) indicated that appropriate advertising can make positive brand evaluations and attitudes easily accessible in memory. For development of the brand equity the researchers Herr and Fazio (2008) found that a favorable brand attitudes will determine consumer perceptions and behaviors if those attitudes can be instantly improved. These perceptions will contribute to the brand equity by the meaning or value that the brand adds to the consumer. Then brand choice and purchase intentions will be ultimately influenced by brand equity (Cobb-Walgren 2009).
Outdoor advertising is one of the type in traditional advertising, which is more effective than other forms, if it’s located in the suitable for target audience place (Todor, 2015). The advantage of outdoor advertising is that it can reach high frequency. This type of the advertising reaches costumer attention in public places like train, buses and on roads.
2.3 The effect of the alphabet type on perception
In the world so many languages, but it seems that alphabets are not as many as there are languages. The most widespread alphabet is Latin, so many different languages use Latin script. There are some studies about perception of different alphabets like Arabic and Chinese characters (Robert, Colin & Brenda, 2016; Mary & Ching, 2016).
In their study Robert and Colin (2016) examined the effect of alphabet on letter perception. They analyzed perception of Arabic alphabet by judgment task on pairs of letters, they use two different groups the one who don’t have any prior exposure to Arabic alphabet and the one who can understand the alphabet. Participants of the study were asked to judge the presented letters if letters are visually or physically identical or not. The results of the experiment revealed that knowledge-based factors like identity of the letter influence the perception of the letter. Moreover, they defined several factors that affect perception and make supportive contribution to visual perception of the letter. The learning of the alphabet also effect in visual processing.
According to Mary and Ching (2016) Chinese characters are more efficient to read and perceive written information quickly, if it is learned leader. Chinese characters are words, not separate letters, its faster to read than phonetic systems. Some non speakers see the “mystic beauty” of Chinese characters and perceive it as visually attractive. On their study Mary and Ching (2016) defined the recognition and perception of the Chinese and Latin script among expertise. Participants was divided by designers and non-designers. The results show that both groups visually perceive more Chinese charters rather than Latin.
In the study of Kara (2011), which is concentrated on awareness of the outdoor advertising in Hong Kong, examined the effect of the outdoor advertising on Hong Kong residents and tourists. Message response involvement is high to residents and low to the tourists, this can be due to the lack of language knowledge and unfamiliarity with local brands. However, both of tourists and residents pay attention to outdoor ads which are creative and vivid in color. If outdoor advertising are creative and aye catching, the message will reach the customer even they don’t know the alphabet used in the text.
2.4 Theoretical Framework
Based on the review of the literature, awareness of the brand can be build by outdoor advertising (Keng,Vang & Christy, 2014; Herr & Fazio, 2008; Fredrik & Veronika, 2015; Aaker & Biel 2009; Mazzarol, 2006; Keng,Vang & Christy, 2014). Attractive outdoor ads require appropriate location in order to reach customer’s attention. Image, color and font size play main role in outdoor ads. According to Mary and Ching (2016) different alphabet perceived differently, as some may consider particular alphabet more attractive than other. So the type of the alphabet used in the text can influence the perception of the message and brand itself (Robert, Colin & Brenda, 2016; Mary & Ching, 2016).
The theoretical framework of this research include brand awareness as dependent variable and effect of the outdoor advertising as independent variable. Additionally moderating role of the used alphabet in the text on the relation between outdoor advertising and brand awareness is also considered.
Figure 2.1-Theoretical Framework
The research hypothesis based on the literature and model are as follows:
H1: Outdoor advertising has significant effect on brand awareness.
H2: Latin alphabet used in the text has significant effect on the relationship between outdoor advertising and brand awareness.
3.1 Samples and Procedure
This research made to establish the impact of outdoor advertising on building brand awareness in comparison of using text in Cyrillic and Latin alphabet. For the study quantitative research method was considered as the most effective way to establish the relationship between the dependent (brand equity) and the independent variable (outdoor advertising). For the population of the study was selected Almaty city. Data have been collected by using convenience sampling method, due to several limitations like time and resources. Table 1 shows the response rate of 45.8%, total 120 surveys was distributed among respondent, but only 54 of them responded to the questionnaire. Demographic profiles of the respondents represented in the Table 2.
The questionnaire for the study was created by using GOOGLE forms. The link for the survey was circulated through various social media and as well as through E-mail of the respondent. The survey consists of four independent parts. The first part consists brief information about the purpose of the study and demographic questions to determine individual characteristics like age and gender. The next section contains question about outdoor advertising, and it effect on the perception of the brand. This part of questionnaire was taken from the assessment of advertising effectiveness by Ruchika (2015). This survey contains five-point Likert scale, which ranged from 5 strongly agree to1 strongly disagree. The third part contains questions about the awareness (recognition and recall) of the brand after watching particular advertisement of the brand. The first question is made to establish which of the brand’s outdoor advertising they remember as most effective to them, as suggested by Sally at al. (2012). Other questions were related to the recognition and recall of the brand in order to define the effect of ads in awareness level. Respectively five-point response format used. The last part contains questions about perception of the alphabet, two similar pictures with different alphabets used in the text, required to choose most attractive advertising. This method was acquired by the study of Mary and Ching (2016) where they defined the perception of the Chinese and Latin alphabet.
3.3 Data Preparation for Data Analysis
After finishing the collection of the data through questionnaire, the data have been converted to the format which can be read by computer. The data preparation process according to Hair et al. (2009) is aimed to provide accurate and complete basic data without any problems like outlier, coding mistakes, missing values and non-normal distribution. Data preparation process has several steps which are editing and coding, error detection and cleaning of the data (Hair et al. 2006).
The process of checking collected data was run through Smart PLS, with this software response of outlier and missing data have been checked. Consistency and stability of the finding is measured by reliability. Correctness and appropriateness of the survey was measured by validity. In this research in order to find consistency and appropriateness of the data Smart PLS have been used.
4 DATA ANALYSIS AND RESULTS
As previously mentioned, the purpose of the study is to determine the effect of outdoor advertising on brand awareness and define moderating effect of the Latin alphabet used in the text. This part of the research contains the results of statistical analysis for testing the research model and the corresponding hypotheses. To test each hypothesis there are conducted several steps as follow:
1. Finding of demographic and descriptive analysis with the help of SPSS
2. Testing hypothesis on PLS through structural model
3. Conducting moderation analysis through PLS
First section shows data on response rate, the distribution of the questionnaire and how many respondents answered to the question. The next section is 4.2 represents the demographic information of the data collection. The main part of the analysis starts in 4.3 by implementing structural model via PLS and testing of moderating effect which is presented in 4.4.
4.1 The Response Rate
The questionnaires ware distributed through E-mails and various social media sources among 120 respondents. Totally only 55 respondents filled the survey and resend, however 4 responses in questionnaire was inadequate for the research. So, information of only 51 respondents used in the research, which is represented in the following Table 4.1.
Table 4.1-Respose rate.
Distributed Questionnaire
|
Returned questionnaire
|
%
|
Conducted Questionnaire
|
%
|
120
|
55
|
45.8
|
51
|
42.5
|
Source: SPSS
4.2 Demographic Analysis of Respondent
Demographic information of the respondents was held by SPSS, where results show characteristics of gender and age. As Table 4.2 shows, in the questionnaire participated 51 respondents, from which 64.5% is females and 35.2% is males. Most of the respondents are between age 21-30, almost 58.8% of the all respondents. Respondents who are under the 20 is 21.6% and who are age between 31-40 is 15.7%. Only 3.9% of the respondents are between age 41-50.
Table 4.2- Demographic Analysis of Respondent
Demographics of respondent
|
Frequency
|
Percentage
|
Gender
|
Male
|
18
|
35.2%
|
Female
|
33
|
64.5%
|
Age
|
20 or Under
|
11
|
21.6%
|
21-30
|
30
|
58.8%
|
31-40
|
8
|
15.7%
|
41-50
|
2
|
3.9%
|
Source: SPSS
4.3 Measurement Model via SmartPLS
As previously mentioned the data for the study was analyzed via SmartPLS. Data findings was reported to the Excel format and then transferred to the SmartPLS for drawing model. As shown in the following Figure 4.1, after listing the input data SmartPLS start to draw model fit coefficient, where the number in arrow is the coefficient of the Standardized regression rate. The value of R square is the number which is indicated in variable. PLS model measurement is represented in the following Figure 4.1.
Measurement model encompasses knowing the individual item reliability, internal consistency reliability, content validity, convergent validity and discriminant validity as suggested by scholars (Hair et al., 2014; Henseler et al., 2009)
Figure 4.1 Model Fit Coefficient
Source: Smart PLS
Individual item reliability was determined by examining the outer loadings of each construct’s measure as recommended by (Hair et al., 2014)
Table 4.3-Reliability and Validity
|
Cronbach's Alpha
|
rho_A
|
Composite Reliability
|
AVE
|
Latin Alphabet
|
0,808
|
0,827
|
0,815
|
0,689
|
Brand Awareness
|
1,000
|
1,000
|
1,000
|
1,000
|
Outdoor Advertising
|
0,800
|
0,811
|
0,804
|
0,673
|