Determinants of Consumer preferences of Branded Goods: A Case Study of Selected Districts of Punjab Pakistan

Abstract

The objective of the study was to analyze the determinants of consumer preferences for branded or non branded goods in Punjab (Pakistan). For this purpose two cities named Faisalabad, Mandibhaudin and two corresponding villages( Manget and Makkuana) were selected. Users of branded and open Tea were selected for the study and Binary Logit Model was used to draw conclusions. It was found that due to low income levels more percentage of consumers were using non branded low quality goods as they are cheaper. Results indicated that variable income, education, consumer loyalty, taste, quality, and advertisement were positively related to the choice of branded tea while price was negative related to the choice of branded tea. Hosmer-Lemeshow Statistics shows that model is good fit.

Keywords: Consumer Preferences; Branded Goods; Logit Model; Hosmer-Lemeshow Test.