Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. In marketing, brand loyalty consists of a consumer's commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. True brand loyalty implies that the consumer is willing, at least on occasion, to put aside their own desires in the interest of the brand.

Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience. ^{Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality (Paul Herbig, 1997).}

The new millennium is not just a new beginning; it is a continuation of trends in human behavior that have been following cyclical patterns throughout our country's history. Just because we have entered a new era does not mean we have to start from scratch when it comes to interpreting why certain consumers are loyal to certain brands, and what type of factors influence these allegiances.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, 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. 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.

The image surrounding a company's brand is the principal source of its competitive advantage and is therefore a valuable strategic asset. Unfortunately, many companies are not adept at disseminating a strong, clear message that not only distinguishes their brand from the competitors', but distinguishes it in a memorable and positive manner. The challenge for all brands is to avoid the pitfalls of portraying a muddled or negative image, and instead, create a broad brand vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed. In fact, a company should view its brand to be not just a product or service, but as an overall brand image that defines a company’s philosophies. A brand needs more than identity; it needs a personality. Just like a person without attention-grabbing characteristics, a brand with no personality can easily be passed right over. A strong symbol or company logo can also help to generate brand loyalty by making it quickly identifiable.

From the design of a new product to the extension of a mature brand, effective marketing strategies depend on a thorough understanding of the motivation, learning, memory, and decision processes that influence what consumers buy. Theories of consumer behavior have been repeatedly linked to managerial decisions involving development and launching of new products, segmentation, timing of market entry, and ^{brand management. Subsequently, the issue of brand loyalty has been examined at great length. Branding is by far one of the most important factors influencing an item's success or failure in the marketplace, and can have a dramatic impact on how the "company behind the brand" is perceived by the buying public. In other words, the brand is not just a representation of a company's product; it is a symbol of the company itself, and that is where the core of brand loyalty lies. All this information was found out through a research conducted by Jovey Wai Kwan Leung and Gail Tylor.}

The brand name of a product that has worldwide recognition. A global brand has the advantage of economies of scale in terms of production, recognition, and packaging. While the product or brand itself remains the same, the marketing must take into account the local market conditions and the resulting marketing campaign must be tailored accordingly. Care must also be taken to ensure that there is nothing offensive in terms of the name or packaging in the various cultures and languages. A problem with global branding is that, if problems are experienced in one country, there could be worldwide repercussions for the brand (www.brighternaming.com/brands).

According to Omelia (1995), successful global brands must anticipate cultural trends, styles and evolving consumer values in order to appeal to customers across international boundaries; a product's relevance to its customers dictates its global potential. Brands which have a large disparity in consumer regard and image are not as likely to find a standardized global positioning to become a global brand. Successful multicultural advertisers have secured brand loyalty from culturally diverse consumers by tailoring the brand's image to reflect individual cultures. With regards to brands, creation or maintenance of a global brand is highly dependent upon the existing status of the brand. If the company has maintained independent brand names for the same product for numerous countries, it becomes more difficult and risky to implement a single global brand name. If the product has been adapted in various countries to accommodate local tastes, the creation of a single global brand is not recommended.

International brands are somewhat different from global brands. They also have a worldwide recognition but the basic marketing strategies are not same in all the countries, in fact these brands do not have a marketing team working for the brand in every country. For example, Marlboro, Imperial leather, Mercedes etc.

According to one study “Understanding the path to purchase”, the drivers of purchase are psychographics/personality, social context of a consumer, his current relationships and the functionality/product attributes (Michael Mills, N. Torkar, Tina k. & A. Dye).

Another research conducted by Davis, Hatch & Roberts in 1985 states that “clothing choice criteria are defined as the intrinsic(inherent to the product) and extrinsic(product-related but not part of the physical product) product attributes that associated with desired benefits or incurred costs as consumers make buying decision among various alternatives. Intrinsic product attributes are those which cannot be changed without altering the physical characteristics of the product, for example, style, color, design, appearance, safety, comfort etc. While extrinsic ones are those that are exerted by manufacturers or retailers and do not form the component parts of the product. For example, price, brand, country of origin, warranty etc.

The past researches have shown that there are countless factors which attract consumers to buy branded products whether national or international. The factors are:

What is happening in the world of fashion and what are the current fashions trends is one of the factor which consumers consider when buying products and which results in their change of taste. Brands convey a certain fashion image or social status better than non branded ones. The social identification implies the sense of belonging to certain groups or organizations (Ashforth and Mael, 1989, Aaker, J, 1999, Kim, Han and Park, 2001).

A study conducted on consumer behavior by Kwan C.Y, Yeung K.W. & Au K.F. says that the brand consciousness and perfectionism consciousness are directly related to fashion consciousness of consumers. These are combined to form a new factor named “brand and fashion consciousness” in this study. Consumers with this style are more likely to purchase expensive International brands.

Kotler and Armstrong describe price as the money charged for products or services or the sum of values that is exchanged by consumers for having the benefits of that product or service.

Price plays a pivotal role in a consumer’s choice of brand. Many consumers organize their products category knowledge in terms of the price bands of different products (Keller, 1998).

According to a study named “The Dual Role of Price in Consumer’s Value Judgments” by Manoj Thomas, Vicki G., Leonard M. Lodish; first, as a product attribute, price affects the perceived similarity of the target product to the mental prototype of a higher or lower quality product. However, price is not the only attribute used to make similarity based quality judgments. Other relevant and available product attributes moderate the effect of price on quality judgments. Second, as a measure of sacrifice, price serves as the benchmark for comparing utility gains from superior product quality. However, this comparison process is dynamic because the relative importance of money and product quality changes across consumption occasions.

The findings of previous researches indicate that the status-conscious market is more likely to be affected by the representative characteristics of a brand; feelings aroused by the brand; and by the degree of agreement between the brand-user's opinion and the brand's image itself. Results also show that the higher the symbolic or representative characteristics, the stronger the positive feelings, and the greater the congruency between the consumer and brand image, the greater the chance of the brand being perceived as possessing high status elements.

Past researches have developed a greater understanding of the relationship between international branded products and status consciousness of consumers, how consumers are most likely to use status conscious approach in their lives and the status that comes from displaying one's self though branded products (Eastman, 1999; Mason, 1992; Motameni & Shahrokhi, 1998; O'Shaughnessy, 1992; Schitovsky, 1992).

A paper titled “How Global Brands Compete” by ^{Douglas B. Holt, John A. Quelch, and Earl L. Taylor states that one important factor considered by consumers during the purchase decision is the ‘Quality Signal’. Consumers watch the fierce battles that transnational companies wage over quality and are impressed by the victors. A focus-group participant in Russia told us: “The more people who buy a brand, the better quality it is.” A Spanish consumer agreed: “I like global brands because they usually offer more quality and better guarantees than other products.”}

Czinkota & Ronkainen in their book “Global Marketing” have mentioned that global marketers must emphasize quality in their strategies because they cannot compete on price alone. To maintain a position of product superiority, firms must invest in research and development for new products as well as manufacturing methods. Another important aspect of improving quality is an emphasis on design. Some countries such as Singapore and Taiwan provide financial assistance to help companies improve product design. Cash grants help defer design costs, and publicity-oriented programs increase overall design consciousness. Moreover, global marketers must realize that they have to meet ISO 9000 standards to compete for business abroad and to win contracts from multinational corporations.

Advertising is a paid non-personal communication from an identified sponsor using mass media to persuade or influence audience (Wells Vurnett Moriaaty). It is all about an affective communication of the message through an affective media like television, radio, internet, news paper, magazines, billboards, banners, brochures, etc. There are various types of advertising, one of which is ‘Brand Advertising’. It’s the most visible type which focuses on the development of long term brand identity and image.

Celebrity endorsement has been recognized as “a ubiquitous feature of modern marketing” (McCracken, 1989). The company can build characters that are congruent with their brands and the target audience. Companies have very little control over the celebrity’s persona, as this has been created over the years (Tom et al., 1992).

Celebrity endorsers have been found to produce more positive responses towards advertising and greater purchase intentions than a non-celebrity endorser (Atkin & Block, 1983; Petty & Cacioppo, 1983). Stars are loved and adored by their fans, so advertisers use stars to capitalize on these feelings to sway the fans towards their brand. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. For example, L’Oreal hired Beyonce Knowles and Natalie as their spokesperson whereas; Estee Lauder hired a famous actress Elizabeth Huley to promote the brand.

According to Shilbury et al. (1998), “sports advertising is now a multibillion dollar industry and has as its prime purpose the influencing of consumers to respond positively to products or services.” One of the top sports celebrity endorsers ever, basketball superstar Michael Jordan, made an estimated 40 million dollars a year in endorsement fees from companies such as McDonald’s, Nike, General Mills, and Hanes etc.

A past research shows that most of the people like to watch ads with their favorite celebrity and desire to purchase the brands promoted by a favorite spokesperson.

The country of origin of a product, typically communicated by the phrase “made in…” has a considerable influence on the quality perceptions of a product. The manufacture of products in certain countries is affected by a built-in positive or negative stereotype of product quality (Czinkota & Ronkainen).

Japanese brands seem to be perceived as more reliable (i.e., requiring less repair), while American brands are perceived as more roomy and safer in the event of a collision. It is expected that a marketing strategy that works well for Japanese brands will not work as well for U.S. brands or European brands because of their different country image. This has been stated in an empirical study named “Brand popularity, country image and market share” by Chung Koo Kim, Jay Young Chung.

Another research says that country of origin effects have lessened as consumers are more informed today. The argument has been made that with the advent of more economic integration, national borders become less important.

Independent variables Dependent variable

The dependent variable in this case is the consumer behavior. This study is focused upon the buying behavior of consumer regarding the fast moving consumer goods industry only.

Consumer behavior: Consumer behavior is the study of the process involved when individuals or groups select, purchase, use or dispose off products, services, ideas or experiences to satisfy needs and desires (Solomon, 1996).

Consumer behavior is the study of the buying behavior patterns of the consumers and the factors that influence behavior of final consumers- individuals and households who buy goods and services for personal consumption (Kotler & Armstrong, 2001).

During the selection of a brand, a person always considers certain factors, so the buying decision process is not an independent process and is dependent on various factors. For example while buying a television; one always considers its picture and sound quality, its design and the current trend, his income level etc. So the decision of buying a television is dependent upon the above independent factors.

It is a multivariate analysis as there are a number of independent variables which directly affect the dependent variable i.e. consumer behavior. The independent variables involved in this study are:

1. Quality: Quality is a factor where no one compromises. It has a long lasting impact on consumer’s perception. It is the basic factor considered by consumers when purchasing a brand.

2. Status: Many people buy foreign brands just for the status enhancing motive. Such consumers are very conscious about their appearance, so they choose the brands very vigilantly. They are the ones who frequently purchase foreign brands even if they are expensive. They go for the image of brand which can enhance their own image and status in the society.

3. Price: Price plays a vital role in consumer’s choice of brand. High priced products are considered luxury and purchased occasionally. Price is also perceived to be the reflection of the quality of brand. Expensive brands are considered to be of premium quality whereas a low priced brand is regarded to be of inferior quality. Thus income level is also a part of the price factor. The consumers with high purchasing power frequently purchase the expensive brands may be to impress others or for their own satisfaction. So, it can be said that, price does not influence the purchase decision of the status conscious people as they use International branded products as a symbol of status (Pollack, 1977).

4. Fashion consciousness: Most of the consumers consider the current fashion trends while purchasing a product. Every consumer has his own taste and desires to buy the latest design from the market. Consumers are more aware about the latest fashion trends and are more fashion conscious. So they go for the brands which are in fashion at the time of purchase.

5. Reference groups: Reference groups include persons, groups or institutions whom one look up to for guidance for one’s own behavior and whose opinion one cares for. These are also an important source of influencing the brand purchases. They serve as direct or indirect points of comparison or reference in forming a person’s attitude or behavior. Reference group may involve family, friends or even opinion leaders who exert influence on other’s buying decisions due to special skills, knowledge or personality.

6. Advertising and celebrity endorsers: An effective advertisement educates the consumer about the product and makes recognition of the brand. It helps creating an image of a brand and plays important role in changing consumer’s perception, thus influencing his buying decision. Also celebrity endorsers have been found to produce more positive responses towards advertising and greater purchase intentions than a non-celebrity endorser. Celebrities build an image between the brand and the consumer and are a major source of influencing brand purchases.

7. Country of origin: It is at times the only variable used to evaluate products. Some countries are known for the products they manufacture and their perceived quality, hence, consumers rely on this factor when they make their purchases. For example Japan is known for its electronic products, France is known for its fashion designers and Italy is famous for shoes. So, it is a general perception that these countries are reliable for the respective products.

8. Affiliations: Sometimes consumer buying behavior is influenced by small groups to which he belongs. For example, membership groups and symbolic groups like community organizations, clubs, professional associations etc. such groups may influence the consumer’s buying behavior due to his particular life-style, attitude and self-concept and create pressures to conform that may affect the person’s product and brand choices. The importance of group influence varies across products and brands. It tends to be strongest especially during the young age when peers are seen as an important source of influence on fashion clothing preferences.

9. Brand consciousness: In the United States, brand names are an important factor affecting consumer’s purchase decisions, with well-known brands, such as Nike and Gap, being popular choices (Lie beck, 1996). It has been generally observed that young adults are brand conscious consumers most of the time.

According to a previous research on “brand consciousness” conducted by Leah Rausch The level of brand consciousness was found to be significantly different across cultures, gender and age. Females were found to be more brand conscious than males. He assumed that males generally do not shop as frequently or do not put as much effort into searching for information about product brands. They conveniently choose the brands they recognize and use the name of the brand as a signal of quality.

Marx states, “College students are decidedly brand conscious” (1995). In another study, parents expressed concern that kids are extremely brand conscious with high school students being the most brand conscious (Lie beck, 1996). Now it has to be analyzed through this research that which age group is more brand conscious among Pakistani consumers and whether female consumers are more brand conscious than male consumers in Pakistan or not.

H_{0: Consumers in twin cities do not prefer foreign brands over local brands.}

H1: Consumers in twin cities prefer foreign brands over local brands.

The sample for this research was drawn from the adult population of Rawalpindi and Islamabad as people from all walks of life reside here. Simple random sampling was preferred for this descriptive research study. The sample size for the study was one hundred consumers which include only the adult consumers of twin cities.

The type of research was a descriptive study in order to identify, determine and analyze the reasons why consumers prefer international brands to national brands when purchasing consumer goods. Questionnaire survey was employed as the tool to collect primary information. To maintain confidentiality, the respondents were specifically asked not to write their names on the survey forms. It was a structured questionnaire which consisted of 14 questions. The questionnaire was designed and modified for the study after discussions with professionals advising the researcher in the study.

Most of the items were close ended. Likert scale was used in most of the questions. Some of these were three-point likert scale questions whereas some were four-point likert scale. Two items were open ended as well as closed ended. Furthermore, age, gender and income level of the consumers were asked at the top of the questionnaire to analyze the consumers demographically.

The questionnaire was given directly to the consumers to be filled in. After that the analysis of the data was carried out using frequency distribution and percentage of respondent’s answers. These calculations were then interpreted. In addition to this the calculations and interpretations were carried out for different age groups, gender and income levels being asked for in the questionnaire.

The questionnaire was designed after the consideration of different variables of theoretical framework. Age, gender and income level of the respondents have been asked to analyze the population demographically. Pilot test was conducted on 25 respondents and the questionnaire was refined. Value of Cronbach Alpha came to 0.7. The questionnaire was later validated by experts.

First two questions answered whether consumers buy local brands more frequently or the international brands.

Questions 3, 4, and 5 are related to the factors consumers look for when purchasing an international brand and the reasons for not buying the local brands.

The next three questions measured the role of factors like brand loyalty, price and country of origin in consumer’s purchase decision of foreign or local brand.

In the 9th question each consumer gave his opinion whether international brands are a symbol of status or not.

Question 10, 11, 12 & 13 were designed to measure the importance of advertisements and the role of celebrities endorsed in advertisements, importance of reference groups and peer groups and the role of current fashions in the purchase decision regarding a particular brand.

The last question has been asked to determine whether consumers are brand conscious or not.

After conducting survey, following data have been collected for analysis: