AN INVESTIGATION INTO THE IMPACT OF BRANDING ON CUSTOMER BRAND PREFERENCES IN CAMEROON(A CASE STUDY OF MTN CAMEROON)

CHAPTER ONE

INTRODUCTION

Background of the study

Numerous marketing organizations operating in the worldwide industry have come to recognize that branding is a crucial undertaking that may guarantee their longevity in the market. As a result, there is a rise in the number of brands and an increase in branding activities, as companies are actively seeking ways to establish themselves and maintain a competitive edge in the market. Branding transforms a basic product into an entity that has a specific name and characteristics that may elicit emotions and has a unique personality. Kotler (2016) cites the definition of a brand provided by the American Marketing Association, which states that a brand is a name, phrase, sign, symbol, or design, or a combination of these elements, that is used to identify the products and services of a particular seller or group of sellers and distinguish them from those offered by other sellers. Utilizing signs, symbols, and artefacts may elucidate the process of delivering services, hence minimising client wait times and fostering a sense of efficiency for consumers. According to Dayan and Kromidas (2017), branding is not only about convincing your target market to select your product or service above others. It is about making your potential customers see you as the exclusive provider of a solution to their issue. Consumers often use the phrases "product" and "brand" interchangeably. However, there are indeed distinctions, and it is more accurate to use it precisely to refer to the written or spoken linguistic components of any given output.  Customers have a preference for brand names since they assist in distinguishing quality disparities and facilitate more efficient shopping (Furlow, 2016). Distributors and retailers favour brand names since they facilitate product management, ensure adherence to certain quality standards, enhance consumer preferences, and simplify supplier identification. Ensuring a consistent level of quality is crucial for establishing a successful brand (Lamptey, 2016). A brand serves as a kind of assurance to prospective clients (Herich, 2018). Both businesses and customers are prepared to pay a significant amount for brand names because brand names contribute to the overall value of a product or service. The enhancement in worth that a brand name provides to a product is usually known as "brand equity" (Kalembe, 2015). In growing economies such as Cameroon, branding has a heightened importance due to the fast socio-economic changes occurring in these markets. Cameroon, with a population over 25 million individuals and a culturally diversified terrain consisting of more than 200 ethnic groups, creates a multifaceted and ever-changing market environment for enterprises (Umar & Abdu, 2016). The nation's economy, mostly propelled by agriculture, oil, and natural resources, is undergoing a progressive transformation towards diversification and modernization, pushed by urbanization, technological improvements, and evolving consumer tastes. Cameroon is shifting towards an economy that focuses more on consumers, leading to an increasing importance placed on brands as representations of excellence, social standing, and personal identity. Businesses in Cameroon, ranging from international companies to small organisations, are progressively allocating resources towards branding projects. The objective is to seize a larger portion of the market, enhance the value of their brand, and establish significant relationships with customers. Nevertheless, there is a scarcity of empirical research investigating the influence of branding on consumer brand choices specifically in the Cameroonian environment, despite the significant strategic value of branding. Therefore, the researcher sought to  investigate  the impact of branding on customer brand preferences in Cameroon.(A case study of MTN Cameroon).

1.2 Statement of the problem

Marketers are typically aware that the characteristics of a product have an impact on customer behaviour towards it. Consumers often do not buy products that lack proper packaging and branding. Many companies neglect the aspects of packaging and branding for their goods. Many items have inadequate packaging, resulting in low sales volumes that may not even cover the production costs for the companies involved (Umar & Abdu, 2016). Therefore, it is possible for losses to arise. Nevertheless, while branding is increasingly acknowledged as a crucial factor in achieving corporate success, there is a significant lack of comprehension about the impact of branding on client brand choices in developing countries like Cameroon. Although there is a wealth of study on branding in Western markets, there is a scarcity of empirical information about its influence on consumer behaviour in Cameroon, which is characterised by cultural diversity and fast market evolution. Hence, the study investigate the impact of branding on customer brand preferences in Cameroon.(A case study of MTN Cameroon)

1.3 Objective of the study

The broad objective of the study is to investigate  the impact of branding on customer brand preferences in Cameroon.(A case study of MTN Cameroon). The specific objectives is as follows:

Investigate the branding strategies employed by MTN in Cameroon.

Assess the effectiveness of MTN branding initiatives in shaping customer preference towards the brand.

Identify factors that contribute to customer preference of MTN brand in Cameroon

Analyze the relationship between branding and customer brand preferences of MTN in Cameroon.

1.4 Research Questions

The following questions have been prepared for the following

What are the branding strategies employed by MTN in Cameroon?

How effective is MTN branding initiatives in shaping customer preference towards the brand?

What are the factors that contribute to customer preference of MTN brand in Cameroon?

Is there a relationship between branding and customer brand preferences of MTN in Cameroon?

1.5 Significance of the study

The findings of the study will offer valuable insights to marketing professionals, particularly those working in the telecommunications sector in Cameroon, enabling them to refine their branding strategies and tactics to better meet the needs and preferences of their target audience.

This research will be significant as it will contribute to the existing literature on branding and consumer behavior. It will also serve as a guide to researchers who might want to further explore the gaps in the study.

1.6 Scope of the study

The study focuses on the impact of branding on customer brand preferences in Cameroon.(A case study of MTN Cameroon). Empirically, the study will investigate the branding strategies employed by MTN in Cameroon, assess the effectiveness of MTN branding initiatives in shaping customer preference towards the brand, identify factors that contribute to customer preference of MTN brand in Cameroon and analyze the relationship between branding and customer brand preferences of MTN in Cameroon.

Geographically, the study is delimited to MTN in Cameroon.

1.7 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of terms

Branding: Branding refers to the process of creating a unique identity and image for a product, service, or organization through various elements such as name, logo, design, and messaging. It encompasses the strategies and activities undertaken to establish and differentiate a brand in the minds of consumers, with the goal of influencing their perceptions, preferences, and behaviors.

Customer Brand Preferences: Customer brand preferences refer to the choices and inclinations that consumers exhibit towards specific brands within a given product or service category. These preferences are influenced by various factors including brand image, perceived quality, past experiences, and emotional connections, and they play a significant role in shaping consumer purchasing decisions and brand loyalty.

Telecommunications Industry: The telecommunications industry encompasses the provision of communication services including voice, data, and multimedia transmission over networks such as telephone lines, cable systems, satellites, and wireless networks. 

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