IMPACT BRANDING ON CONSUMER PREFERENCE TOWARDS BUYING A CERTAIN PRODUCT: COMPARATIVE ANALYSIS OF BRANDS NIKE AND ADIDAS

Abstract

Brands Nike and Adidas are considered competitors because both companies produce sports shoes, clothes and equipment and are leading in the global market. The subject of this work is analysis of the impact of brands on consumers' willingness to buy brands like Nike and Adidas, as well as examining the similarities and differences between the brands and their positioning in the global market. The purpose of this work is reflected in increasing the level of awareness of the importance that the companies in BiH build a strong brand as one of the prerequisites for good positioning on the market, and about the impact of the brand on consumers ' inclination to purchase specific products. The specified subject and aim of this research has set up guidelines to define the main hypotheses that the citizens of the municipality of Foca believe that brand has a significant impact on them when purchasing athletic shoes, apparel and equipment, and to prefer shopping Nike better than Adidas brand. The research was conducted by a variety of techniques and methods of scientific research .

Alternate abstract:

Брендови Ниκе и Адидас се сматрају κонκурентима јер обје κомпаније производе спортсκу обућу, одјећу, опрему и водеће су на глобалном тржишту. Предмет истраживања овог рада се односи на испитивање утицаја брендова на сκлоност потрошача κа κуповину брендова Ниκе и Адидас , κао и испитивање сличности и разлиκа између наведених брендова и њиховог позиционирања на глобалном тржишту. Циљ рада се огледа у подизању нивоа свијести предузећима у БиХ о значају изградње јаκог бренда κао једног од предуслова за добро позиционирање предузећа на тржишту и о утицају бренда на сκлоност потрошача κа κуповини одређених производа. Наведени предмет и циљ истраживања су поставили смјернице за дефинисање главне хипотезе κоја се односи на то да грађани општине Фоча сматрају да бренд има значајан утицај на њих прилиκом κуповине спортсκе обуће, одјеће и опреме и да преферирају κуповину бренда Ниκе у односу на бренд Адидас. Истраживање је спроведено уз различите техниκе и методе научног истраживања.

Headnote

Received: Jun 02. 2019.

Accepted: Jul, 09. 2019.

Abstract

Brands Nike and Adidas are considered competitors because both companies produce sports shoes, clothes and equipment and are leading in the global market. The subject of this work is analysis of the impact of brands on consumers' willingness to buy brands like Nike and Adidas, as well as examining the similarities and differences between the brands and their positioning in the global market. The purpose of this work is reflected in increasing the level of awareness of the importance that the companies in BiH build a strong brand as one of the prerequisites for good positioning on the market, and about the impact of the brand on consumers ' inclination to purchase specific products. The specified subject and aim of this research has set up guidelines to define the main hypotheses that the citizens of the municipality of Foca believe that brand has a significant impact on them when purchasing athletic shoes, apparel and equipment, and to prefer shopping Nike better than Adidas brand. The research was conducted by a variety of techniques and methods of scientific research .

Keywords: Brand, Nike, Adidas, comparative analysis, consumer, buying a particular brand

JEL classification: M31

Апстраκт

Брендови Ниκе и Адидас се сматрају κонκурентима јер обје κомпаније производе спортсκу обућу, одјећу, опрему и водеће су на глобалном тржишту. Предмет истраживања овог рада се односи на испитивање утицаја брендова на сκлоност потрошача κа κуповину брендова Ниκе и Адидас , κао и испитивање сличности и разлиκа између наведених брендова и њиховог позиционирања на глобалном тржишту. Циљ рада се огледа у подизању нивоа свијести предузећима у БиХ о значају изградње јаκог бренда κао једног од предуслова за добро позиционирање предузећа на тржишту и о утицају бренда на сκлоност потрошача κа κуповини одређених производа. Наведени предмет и циљ истраживања су поставили смјернице за дефинисање главне хипотезе κоја се односи на то да грађани општине Фоча сматрају да бренд има значајан утицај на њих прилиκом κуповине спортсκе обуће, одјеће и опреме и да преферирају κуповину бренда Ниκе у односу на бренд Адидас. Истраживање је спроведено уз различите техниκе и методе научног истраживања.

Кључне ријечи: Бренд, Nike, Adidas, κомпаративна анализа, потрошач, κуповина одређеног бренда

Introduction

Analysis of brands like Nike and Adidas, it can be concluded that the Nike and Adidas competitive brands because it's about brands that have a common market, which is the marketplace for footwear, apparel and equipment. The primary difference between brands Nike and Adidas is considered to be the following difference: brand Nike promotes the existence of competitive spirit and the idea that whoever plays needs to win, while the brand Adidas satisfies itself by participating and game and kept saying "it does not matter to win, it's important to participate " (Filipović V 2008). Observingthese brands during 2018 leads to the conclusion that the brand Nike stood at the 25 th position among the top 100 brands in the entire world market, while the brand Adidas has taken only 50thplace.

For the purposes of this research, using the appropriate samples, the survey covered is 80 subjects, citizens in the municipality of Foča (Matović V. 2018). Questionnaire forms are collected through personal interviews. Research process consists of the following activities:

* Creation of the questionnaire,

* Determining the sample that will be conducted the survey and the demograpic structure of subjects,

* Interviewing a pre-set pattern of the citizens of the municipality of Foca,

* Sorting and processing the information obtained through the questionnaire,

* Interpretation of the results and

* Discussions.

Questionnaire was created for the purpose of research and consists of 3 parts:

part I - General information on the subject with which to collect data on consumers who participate in research

part II - the tendency of consumers to purchase certain products which are examines consumers' propensity to purchase specific products and examining factors that have influence on the behavior of the customers and

part Ill-branding's impact on consumers' propensity to purchase specific products, which examines which of the two brands that are subject to research among the citizens of Foca are preferred, as well as the reasons why.

The results of research and discussion

The research was conducted in order to examine the influence of branding on consumer preference towards buying brands like Nike and Adidas. Since respondents were asked to assess the importance of making a certain decision when buying clothes and shoes.

It is about the following decisions:

* -decisions on brand,

* -decisions of the seller,

* -decisions on the quantity,

* -decisions on the time of purchase and

* -decisions on the method of payment.

The first question, the significance of decision which brand to purchase, is the most important point of this research, because the main hypothesis is based on this decision. This decision has proven to be quite significant to the respondents because the average rating of importancesums up to 3.55. Numerical structure that gives an explanation on the importance of thisdecision is shown in the following chart.

Based on the chart above leads to the following conclusions:

* -2% of the respondents considered that a decision on the brand does not matter,

* -14% of the respondents considered that a decision on brand is less important,

* -24% of the respondents considered that a decision on brand is partly important,

* -46% of the respondents considered that the decision on brand is important and

* -14% of the respondents considered that a decision on the brand is very important.

The survey is also intended to examine to which ofthe brands, Nike and Adidas, do respondents give priority to when shopping, as well as the reasons why respondents prefer one of these brands in relation to another. The results showed that respondents generally prefer brand Nike versus Adidas brand as follows:

* -52 respondents preferred the brand Nike and

* -28 respondents preferred the brand Adidas.

Above the results of the survey are presented in the chart that follows.

Since respondents were asked to specify the reasons for preferring a particular brand, and they are offered to the following reasons:

* -Quality of the products,

* -Having left better impression on customer

* -Better resonance,

* -Recognizable logo,

* -Easy to remember slogan,

* -Interesting packaging and design,

* -Brand color that varies in relation to competitive.

Respondents have given grades 1 to 7 for each of these reasons for preferring a particular brand, with seven being most important reason, and 1 the least important reason. First presented are the results of Nike brand.

The first reason of brand preference which has been the subject of evaluation is the quality of the products. The obtained results are shown in the chart that follows.

Data from previous graphs show the following:

* -42.31% of the respondents named the score of 7 of quality of Nike products as the decisive reason for the preference of this brand over Adidas

* -28.85% of the respondents named the score of 6of quality of Nike products as the decisive reason for the preference of this brand over Adidas

* -21.15% of the respondents named the score of 5of quality of Nike products as the decisive reason for the preference of this brand over Adidas

* -7.69% of the respondents named the score of 4 of quality of Nike products as the decisive reason for the preference of this brand over Adidas

* -average rating of the respondents regarding the importance of choosing the brand Nike is 6.06.

The first reason for that has been the subject of evaluation by respondents who prefer brand Adidas is the quality of the brand's products. The following results:

* -32.14 percent of the respondents considered the superior quality of Adidas products as the reason they prefer this brand and consider this of the highest importance,

* -14.29% of respondents named the score of 6 of the quality of Adidasproducts as one of the reasons for the tendencyto purchase the products of this brand,

* -7.14%% of respondents named the score of 5of the quality of Adidasproducts as one of the reasons for the tendency to purchase the products of this brand,

* -39.29% of respondents named the score of 6 of the quality of Adidasproducts as one of the reasons for the tendency to purchase the products of this brand,

* -7.14%% of respondents named the score of 6 of the quality of Adidasproducts as one of the reasons for the tendency to purchase the products of this brand,

* -Average gradeof the importance of quality in choosing the Adidas brand is 5.25.

Another reason that has been the subject of evaluation by the respondents is the fact that Nike leaves bigger impact on a customer. The obtained results are shown in the chart that follows.

Data from previous graphs show the following:

* -46.15% of respondents graded 7 the reason to choose Nike as the brand leaves the biggest impact on them,

* -21.16% of respondents graded 6 the reason to choose Nike as the brand leaves the biggest impact on them,

* -32.69% of respondents graded 5 the reason to choose Nike as the brand leaves the biggest impact on them,

* -average grade of the importance of choosing Nike, based on the impression it leaves, is 6.13

Another questionnaire deals with the customers that prefer the brand Adidas as it leaves the greater impression on them. The results are in the following table:

Using the data presented in table 1 leads to the following conclusions:

* -50% of respondents graded 7 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -21.44% of respondents graded 6 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -7.14% of respondents graded 5 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -10.71% of respondents graded 4 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -3.57% of respondents graded 3 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -3.57% of respondents graded 2 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -3.57% of of respondents graded 1 the reason to chooseAdidas as the brand leaves the biggest impact on them,

* -average grade of the importance of choosing Adidas, based on the impression it leaves, is 5.79.

The third reason which has been the subject of evaluation by respondents that chose Nike over Adidas is the resonance of the brand name. The obtained results are shown in the chart below:

Data from previous graphs show the following:

* -9.61% of respondents graded 7 the better resonance of the brand name as the reason to chooseNike over Adidas

* -32.69% of respondents graded6 the better resonance of the brand name as the reason to chooseNike over Adidas

* -19.24% of respondents graded5 the better resonance of the brand name as the reason to chooseNike over Adidas

* -13.46% of respondents graded4 the better resonance of the brand name as the reason to chooseNike over Adidas

* -17.31% of respondents graded3 the better resonance of the brand name as the reason to chooseNike over Adidas

* -5.77% of respondents graded2 the better resonance of the brand name as the reason to chooseNike over Adidas

* -1.92% of respondents graded1 the better resonance of the brand name as the reason to chooseNike over Adidas

* -average grade of the importance of choosing Nike, based on the resonance of the brand name, is 4.79.

The third reason which has been the subject of evaluation by respondents that chose Adidas over Nike is the resonance of the brand name. The obtained results are shown in the chart below:

Data from previous graphs show the following:

* -17.86% of respondents graded 7 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -28.57% of respondents graded 6 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -14.29% of respondents graded 5 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -14.29% of respondents graded 4 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -10.71%% of respondents graded 3 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -10.71% of respondents graded 2 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -3.57% of respondents graded 1 the better resonance of the brand name as the reason to chooseAdidasover Nike

* -average grade of the importance of choosing Adidas, based on the resonance of the brand name, is 4.82.

The fourth reason which has been the subject of evaluation by respondents was if they choose a particular brand because of the recognizable logo, obtained results suggest that Adidas is,with the higher average score of 5.04, more recognisable than Nike with an average grade of 4.27.

The fifth reason which has been the subject of evaluation by respondents was if they choose a particular brand because of the easily remembered slogans, obtained results suggest that Nike has, with the higher average grade of 3.21, more recognisable slogan than Adidas with an average grade of 2.86.

The sixth reasonwhich has been the subject of evaluation by respondents was if they choose a particular brand because of the interesting packaging and brand design, provided the result to brand Adidas, with an average score of 2.57 has a more interesting packaging and design in comparison to Nike with the average grade of 2.19.

The seventh reason which has been the subject of evaluation by the respondents was if they choose a particular brand because of the colour of the brand that is different to their competitors', the survey showed that respondents prefered Adidas to Nike,with the average grade of 1.68 compared to 1.33 in favor of Adidas.

Conclusion

Based on the research conducted, the conclusion is that the branding has a significant influence on the customers when purchasing athletic shoes, apparel and equipment in the municipality of Foča. The decision that respondents make when choosing the brand has proven to be quite significant to them, because the average grade they gave to it was 3.55. The results showed that 2% of respondents considered that a decision on brand isn't important, 14% of the respondents considered that a deciding on brand less important, 24 percent of respondents considered it partly important, 46 percent of respondents considered that the decision matters and 14% of respondents considered a decision on which brand very important. The survey showed that the citizens of the municipality of Foča prefer buying Nike products compared to Adidas ones: 52 respondents prefer Nike brand and 28 respondents preferred Adidas. In this way, the major hypothesis of research is proven: ,,The citizens of the municipality of Foča prefer buying Nike over Adidas products, and brand has a significant impact on them when purchasing athletic shoes, clothing and equipment' '.

Respondents opt for a particular brand because it leaves a better impression on them. This testifies to the fact that the respondents who prefer Nike brand gave an average grade of importance of 6.06 to this reason, while those who prefer Adidas consider it important with an average grade of 5.79.

Respondents who prefer Adidas have graded having a powerful slogan as the reason of purchasing a productaverage score of 2.86, while respondents who prefer Nike brand graded it with an average score of 3.23.

Based on the facts presented, the conclusion is that managements ofBiH companies must focus on strengthening the brand and on building strong brands in order to become competitive on the market. Asides from good branding, the strategy of positioning on the market and in the minds of consumers,as well as the product quality depends mostly on successful business management. The importance of research carried out is reflected in showing how much importance they give to the process of branding companies on the international market, shown on a practical example. This research highlightsthe importance of developing and positioning of brand if one wants to do business in the international market, and achieve good business results.

Footnote

1 [email protected]

2 [email protected]

3 [email protected]

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