Brand impact on Consumer Buying Behaviour

distinguish impact on Consumer Buying BehaviourConsumer driven approaches is widely adopted by the companies in order to enhance countless emerging aims of modern customers. instiganting becomes a crucial activities of consumer driven approach and its aim to build a loyal customer base and creation of an effective tell on image.In this document, the author presents a explore report complied after analyzing the effects of deformitying on the consumer secure stopping point. The research had been carried at the shopping centre called Shoppers Stop in India. The research had attempted to find whether there is absolute relation surrounded by the supreme effect of the crack and the consumer purchase decision.There be so umteen parity convergences push through there that the only way to divers(prenominal)iate yourself from the early(a)s is to create an aura, an image, around your fool. Consumers need a road map they need to find a way to get from their need to a crop p urchase thats simple, easy, not blanket(a) of a lot of noise, and most fire tarnishs get lost somewhere in the midst of the shelf and the consumer mindset.-K aren Benezra, editor of BrandweekThe paper also discusses the literature the importance of pocking and the consumer purchase decision. It details the research rationale along with the research philosophy, the approach used, the context, sample and procedure. As well as It discussed the signifi provokece of the proposed research along with its limitation. A provisional work schedule is also provided.AimsThe aim is to determine the extent of the correlation between the activities of noteing and consumer purchasing as well as put into billet the main functions and look ons branding can offer companies in term guiding valued customers through the often complex process of purchase decision-making. consequently the basic research question would be, how does branding affect the consumer purchase decision?ObjectivesThis research will have the following objectivesTo assess whether positive scentings towards a brand will translate into a consumer purchase decision.To establish the changes in the relationship between branding and consumers purchasing decision when some other factors such as price are introduced.To examine the consumers tendency to recommend brands and its effect on purchasing decisions of their friends and family.Chapter 2 Literature ReviewOrigin of mark in Market.After the introductory World War, the whole world economy was under Great Depression during 1930s and also gives rise to socio-economy problems because of impact of war wages on the quite a little and hence left a dent in mountains pockets and curbed the desire of society to spend and consume.Strangely, the Second World War and the period after the war had seen a different pattern in manufacturing industries that a increased capacity to produce goods whereas the society was left with an ingrained desire to be frugal.Bass Com pany, the British brewery, claims their florid triangle brand was the worlds first trademark. Lyles Golden Syrup makes a similar claim, having been named as Britains oldest brand, with its green and gold packaging having remained almost unchanged since 1885.Source http//www.quaffale.org.uk/php/brewery/578What is Branding?The word Brand the Germanic root meaning is burn. In commercial market branding is all about the output attri onlyes that make a immutable impression in a customers mind.As per Karl Marx, people make their make decisions about who to be, how to live, and what to buy, but under circumstances shaped by brands advertising, market and promotion. then(prenominal) a brand exploits the underlying attribute that is storytelling and emotions which are the buying behaviour.James Walter Thompson published a house ad explaining trademark advertising, in 1900. Thus Branding was coined for the first time with commercial explanation. Mr. Thompson appeared as the philosophe r of Branding by drawing a straight line between the manufacturer and the consumer.Source http//library.duke.edu/specialcollections/hartman/guides/jwt-history.htmlHuman nuance is dependent upon signs and systems of signs, and the human mind is inseparable from the functioning of signs-if indeed mentality is not to be identified with such functioning.orchard apple tree Logo DesignApple was selected as main form of branding depending upon the high society name.Initially, the logo depicted a small apple shape sitting under a tree with Apple Computer Co set into the frame of the picture. It is this apple that has continued to be used. The first logo design was perceived to be a s too complex and hard to view, so Regis McKenna worked on the logo some grades later and added a bite mark to symbolize the thought of conquering of the customers and the marketplace in general. Next, the monochrome version was replaced with the rainbow-colored logo as a reference to the Biblical story of Adam and Eve in which the apple represents the yield of the Tree of Knowledge. It brings to mind that people must pursue their dreams. While this was not initially a deliberate intent, it did encourage business and consumers to consider the Apple brand for the first time and was successful in generating increased profits.Source Charles Morris, Foundations of the Theory of Signs.Source http//www.logoorange.com/logodesign-A.phpA brand is an end result. Branding is the process by which a brand comes to be. A brand is many, many amours, but it is never an accident.Present Day Branding.A branding provides a platform for consumer choice process. Todays market offer different harvest-festivals among thousand for similar offerings, this complexity makes the users to follow their choice that have satisfied already in past. The pattern of this consumer behaviour was also supported by Assael in 1993 with a concept that in a situation of low-involvement of consumer, the consumers completely rely on past consuming experience hence it provides a clue that consumers with stripped-down purchasing areas could be tooshieed by advertisement campaigns.Thus consumer plays a key meaning(a) role reaping branding process in current market. up to now nowadays a good number of consumer emotionally attach with the brand that helps to watch the impact of image among consumers.With this a natural differentiation concept was introduced by Adcock in 1998, with differentiation process , the guild start induceing a set of unique differences that help to provide a distinctive identity among other intersection points in market. Hence, differentiation provides a trimmedting edge for the branding of harvest in present competitive market.As per Prof. Kevin Lane Keller, author of Strategic Brand Management The trend in marketing of brand depends upon the changes in the environments around the consumers. A social, cultural, political, economic and technological environment changes the life of human and with this the branding need to adopt the trend for exampleOnline merchandisingSocial Networking Online-Media such as Face book, MySpace, Google.A corporate social responsibility and sustainability impacting the product image.Philip Kotler in 1999, a brand captures consumers anxiety through a Six Dimensions of BrandAttributesA brand will communicate specific attributes, such as prestige.BenefitsA brand strengthens a products attributes by communicating a set of benefits that makes it more attractive.ValuesA brand represents a companys tenderness value and belief system.CultureA brand is representative or targets a target audiences socio-cultural characteristic.PersonalityA Brand Project behavioral personality patterns of targeted consumers.UserA brand can emulate the end user.Identification of Branding leavings step by stepDifference 1 A Visual difference, Symbols and logotype.In the seventies, when the phrase generation was creation coined and used in any nu mber of contexts such as in movies, music, technology etc, Pepsi annex the beverage style of young adult segment of the inhabitants and dubbed them the Pepsi Generation, in an endeavour to make Coca-Cola seem old and staid. In the 1980s, Coca-Cola executed what was perhaps the most celebrated marketing mistake in history, discontinuing production on its core product, the most recognizable brand name in the world in favour of a more Pepsi-like formula it dubbed spic-and-span Coke. This Grand Canyon-size blunder eventually worked in the companys favour when consumers revolted with startling vehemence and Coca-Cola quickly announced it would bring back its revered product, now under the name Coca-Cola Classic. Sales rebounded, and more media attention was lavished on the Cola Wars. The campaign also managed to underline the loyalty and affection so many consumers had for original Coca-Cola-which might very well have been the goal of the company to begin with. Coca Cola eventually dro pped the word Classic from its name, and remains the most widely recognized brand in the world to the present.Difference 2 Culture (Hofstedes onion)Difference 3 Personality (Aaker)Difference 4 Identity and positioning (Kapferer)Brand Equity and Brand Loyalty. BrandAmerican marketing association defines the brand as A name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand whitethorn identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name Advantages and disadvantages of brandingAdvantages1. Helps in identifying the goods and run. 2. It stimulates the purchase decision of the consumer. 3. It helps in creating customer loyalty. 4. It helps the company to maintain the leadership position in the market (if they are already market leader)Disadvantages1. Requires huge investment.2. An unsuc cessful brand will bring negative image to the company. 3. Customer may not be willing to pay extra just because it is brandedBrand equityBrand equity is set of assets linked to a brands name and symbol that adds to the value provided by the product or a service to a firm and/or that firms customer. Components of brand equity 1. Brand loyalty 2. Brand ken 3. perceive quality 4. Brand associations Brand loyalty is consumers commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service or other positive behaviours 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. This will help organization to reduce the promotion cost. Brand awareness The number of customers exposed to the brand name. Higher the brand awareness, higher will be the brand equity. Organizations put all the effort in the introduction stage of the product to c reate awareness among the customers.3. Perceived quality the customer perception about the actual quality level of the product.4. Brand associations The attribute of the brand that customer associates with his/ her belief.A person may associate the brand for power, strength or protectiveness.Brand DevelopmentCompany can develop the brand on the basis of product syndicate and brand name. Now we willdiscuss the different strategies adopted by companies to develop the brands.ExistingNewExistingLine ExtensionBrand ExtensionNewMulti BrandsNew BrandsLine extensionCompany uses its well known brand name to introduce additional items in a given product category such as spic-and-span forms, flavours, ingredients or package sizes.For example, Karnataka Milk federation, Uses its top brand name Nandini to introduce new Items like toned milk, full figure out milk, curd and milk powder. It is less risky and requires fewer investments to introduce the product. In the higher up example Nandini u sed the extension to meet the excess capacity that it has. The milk procurance was more than the demand from the customer. Hence it started producing the milk powder. But all the products introduced need not to be successful in the market. In case of KMF Nandini Ice creams didnt come home in the market. Another risk of line extension is brand cannibalization i.e. Companys brand/items compete each other.Brand extensionA strategy in which company uses one of its familiar brand names to new product categorys items. For example, get together breweries (UB) limited mathematical group used its flagship brand kingfisher to different categories. Kingfisher was originally a beer brand extended to airline businesss. Brand extension gives instant recognition to the brand. In the above example people required very less time to know kingfisher airline brand because parent brand was very well Known. Brand extension if it fails then it may hurt the parent brand reputation in the market. Multi brandsThe techniques of introducing the product or items in existing product category with a new brand name. For example, Hindustan Unilever uses different brand names for their home and personal care category. The above example shows us that HUL have breeze, Dove, Liril Lux, Lifebuoy and Pears in the bath soap segment itself. It helps company to come out with new features in the product or product category. Organizations adopt this strategy to avoid brand cannibalization in the given category. The major disadvantage of this strategy is none of the brands will enjoy major market theatrical role and result in lesser profitability. In case of Hindustan Unilever company had more than 100 brands and was forced to reduce it to 30 power brands. Other brands were not adding profuse profit for the company.New brandsThe strategy of coming out with new brand for new category products. In this strategy, company believes that existing brands can not be extended to the new category. The new br and strategy requires huge resources to build it. The new category if it already had some brands of other companies, investment requirement will go up. For example, Hindustan Unilever launchedPure it in the water purifier category. The category and brand is new to the company.Consumer Buying Behaviour Branding a influencing factorWhat influences consumers to purchase products or services? The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer.When purchasing a product there several processes, which consumers go through? These will be discussed below. 3- COMPONENTS OF BRANDINGBranding is a process of creating a product or company identity a personality creation and development by a number of differential professionals with equivalent objective or goal.1. Advertising. Its a wonderful thing to create a unique, user-friendly brand that the public is sure to embrace. However, if the public doesnt fin d out about the brand-and much of the public will find out through advertising-all that effort, time, and money will go to waste. The look and attitude of the advertising also help define the brand in the publics mind. Nike is well known for use up millions on celebrity endorsements for advertising. Its ads are legendary, and its swoosh logo is known the world oer without a word being said.2. Marketing. In devising the personality of the brand and determining how it will be presented to the public, marketing, which is usually done in-house and through consultants, helps to create the entity that the brand will become. Its a fine thing to own the recipe for oreo cookies, but if you decided to sell the recipe and not the cookies, you would be making a very large marketing mistake. Marketing is not just exchange it knows what to sell and how to sell it as part of a larger plan.What marketing does is to determine the proper audience for a product, and then throw in to that audience what it wants. The target demographic can be as narrow as 15-year-old boys living in the suburbs, or it can be literally anybody. That will depend on the product. But once the demographic is identified, marketing professionals analyze it, make sure the characteristics of that demographic are compatible with the product, and then emphasize the strengths of the product. The strengths of the product here are very specific They are the strengths that will best convey the personality the demographic wants to see in it. For example, if Philips had tried to market its flat-screen TV to an audience over 65, which traditionally is not warm to change, it might not have been successful, no matter how innovative the product may have been. Instead, the company aimed its ads at people in their twenties and thirties, emphasized the newness and difference of the product, and had a great success.3. Public relations. If advertising is the juggernaut of public attention, public relations is the stealt h bomber. PR generates publicity for the brand, helps solidify the publics opinion of the brand, and defines the brand-all without being perceived by the publicA lot of clients dont understand the difference between Branding, PR, advertising and marketing, says Rob Frankel, author of visit of Brand X. Personally, I prefer PR to advertising. I like PR because a lot of my Branding program is based on third-party endorsement. Its way more credible and fast-acting than when you pay for ads.Problem/Need Recognition for Future BrandingHow do you decide you want to buy a particular product or service? It could be that your DVD fraud stops working and you now have to look for a new one, all those DVD films you purchased you can no longer play So you have a problem or a new need. For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take. However, for impulse low frequency purchases e.g. confectionery the process is different . Q. What are the new branding challenges and opportunities especially nowadays with the global economic crisis?The current economic crisis presents many challenges but also much opportunity for brand marketers at the same time. Research has show that in past recessions those firms that have been willing to invest in their marketing have emerged in a quicker position than those firms that have cut back spending and reduced their marketing investments. Obviously those marketing investments must be wise ones. Perhaps the most fundamental branding consideration in tough economic times is to establish perceptions of good value. Being seen as low priced or less expensive is not necessarily the answer, the more important consideration is that consumers feel that they are getting appropriate value from a product or service. Value is basically all the benefits the consumer realizes versus all the costs that he or she incurs. It is important to view and these benefits and costs broadly. Be nefits include the perceived monetary value of all the bundle of economic, functional, and psychological benefits that customers expect from a product. Similarly, costs are not restricted to the actual monetary price but may reflect opportunity costs of time, energy, and any psychological involvement in the decision that consumers might have. Top marketers in a recession will be sure to develop marketing programs and activities that optimally balance that equation so that consumers feel the collective benefits outweigh the collective costs as much as possible. That my involve framing the brands costs and benefits so that they are seen in the most positive light possible.Q. What would you single out as the most important heart and soul out of your extensive experience in studying brands?The most important message for marketers these days is to make sure they have a deep, rich understanding of consumers and how they think and feel about brands and their products and services. It is s o fundamental and may seem obvious, but unfortunately many marketers still fall way short on that score.Consumer Buying BehaviourQ. What is the future of branding?Brands will always be important given their fundamental purpose to identify and differentiate products and services. A good brand makes peoples lives a little easier and better. People are loyal to brands that satisfy their expectations and deliver on its brand promise. In an increasingly complex and busy world, the ability of a brand to simplify consumer decision-making is powerful. The predictably good performance of a strong brand is something that consumers will always value. What will change, however, is the means by which firms will build those brands. Marketers must always be adopting state-of-the-art branding practices to ensure that their marketing programs and activities reflect the always changing economic, cultural, technological, social, and legal environments.There are 4-Types of consumer buying behaviour As sael 1987Purchasing ExperiencesHigh InvolvementLow InvolvementSignificant differences between brandsComplex buying behaviorVariety-seeking buying behaviorFew differences between brandsDissonance-reducing buying behaviorHabitual buying behaviorSource Assael 1987, Consumer Behaviour and Marketing Action, 6th edition, p. 67There are four types of consumer depending upon the degrees of involvement and degree of differentiation amongst the brands as per Assael.A displaying Complex Buying Behaviour Pattern is a group of consumer who prefer to expand their beliefs regarding a particular product as a primary step and hence this process will lead them to develop positive attitudes regarding the product.Dissonance-Reducing Behaviour of consumer is classified as the trend in which consumers are highly involved in the purchasing experience but unable to equation among the brand of products offering similar services or features.Thus differentiation becomes the key point as consumers asks for th e features or functionalities or price comparison among the brand but in a market which display low differentiation of brands, the consumer purchasing behaviour is influenced by convenience. pageanting Habitual Buying Behaviour is a behavioural pattern as a result of consumers condition where the consumer buying decision depends on the product information acquired passively or the information embedded in their mind via review electronic media or promotional efforts, also the user shows low-level of involvement products.Variety Seeker Buying Behaviour, the consumer buying reaction occurs because of low-involvement in a market that displays high levels of product differentiation , thus they prefer to follow Brand Switching , in order to satisfy their need for diversification.Chapter 4 Survey, Analysis and FindingsIntroductionThe batch was performed in India at Shoppers Stop Mall (New Delhi Ansal Plaza Branch), which has many branches across the country at major cities and in United K ingdom, at St. Anns Shopping Centre (Harrow, London). The survey template was design to understand the relation between a product brand and consumer, in a whiz that how much they trust or rely on the brand that they go for the product, in short the impact of branding on consumer purchasing decision.The research was to understand the influence of Brand in a developing and veritable country. As the one could easy conclude that the consumer in developed country focus on more on brand image as the brand image define the quality of product whereas consumer in developing focus more on the need rather than quality for example a consumer in India purchasing a television will first look for the price and then supreme features within the price also the product should belong to reliable brand this is one of the key reason that even though India has certain level of sinless trade open market relation with china , still the Chinese cheap product unable to penetrate the Indian market.Questio nnairesThere are one hundred fifty and 180 interviews have performed in India and UK respectively, the pie chart display the same. The Number of interviews conducted with respect to different age group, the column chart below represent about the survey conduct in India at shoppers stop mall.The below graph display the number of interviews conducted, focusing the age group in UK at St. Anns Shopping Centre. In our survey we have put more focus on the young generation and middle-age group to understand their psychology while purchasing a product and how its being influences by the brand of the product. We also get to know the preference made by female and male group in India and UK. The female group in India and UK both spend their most of their shopping time in costumes and they prefer detail analysis or observation between different brands and they could easily compromise on the brand.Which brand do you use?Brand PBrand QBrand RBrand SIn case of others, disport certify.Age group? 16- 2424 3535- 5050-70What to you perceive to be the key attributes of a brand and what do you associate it with? stepPriceStatusPersonalityAestheticsTo what extent brands are important to you? very ImportantImportantNeither Important nor Unimportantnot Very importantNot at all Important5. How does the Made in trademark influence your buying?Very MuchNot muchDoesnt MattersMatterspowerfully MattersWhat is the key difference between International and Domestic brands?QualityPriceVarietyServicesDoes Culture difference play an important role in regards to your buying decision?AgreeStrongly AgreeDependsDisagreeStrongly DisagreeDo you agree shopping is different in abroad then in India?YesNoDo you feel changing market of fashion and technology plays an important role in your buying decision?YesNoWhat product of that particular brand do you use?Product 1Product 2Product 3Product 4In case of others, gratify specify..How long have you been using this product?1 year2 year3 year4 year5 yearIn case of others please specifyHow did you first chance upon the product?AdvertisingWord of mouthDisplayIn case of others, please specifyPlease suggest, if you want to make any changes to the product and why?Are you satisfied with this brand?Extremely satisfiedSatisfiedFairly SatisfiedNot at all SatisfiedWhich Cosmetic product brand you prefer?OlayDoveGrainierA combination of mixed product brand.How long have you been using the product XYZ?First TimeRegular userNever.What made you use the Product XYZ the very first time?AdvertisingWord of MouthDisplay at shopIf anything else, please specifyHave you ever used competitors product?YesNo.If you have used competitors product, then please confirm which product is better in the following termsQualityQuantityBrand NameAre youMaleFemaleHow did you receive this product?Gift purchaseIf other, please specify?How did hear about the sale of this product?Advertising-Newspaper, radio, TVFriend / familyArticle / magazineStoreOthers, specify___________ _______________________From which store did you made the purchase of this product? Specify._____________________________________________________________________________________________________________________How many different brands did you look out for this product? Specify.___________________________________________________________FindingsIn developing nations such as European countries, a different trend has been seen because of globalisation and complete trade, the market is flooded with many products offering similar features and because of competition, the price of the product has fallen down, European industries has to reduce their cost of goods sales by compromising with the quality of materials or setting up manufacturing industries in developing or poor nation where the quality of production much more oriented towards manufacturing the product preferably of manufacture quality product , for example Automobile industries , the number of automobile industries has gone dow n significantly in past 50 years.As per the research performed by KPMG for Automobile industries, the future of automobile industries will not only be characterized by origin of OEMs.RecommendationsConvergence A Business ConceptThe concept convergence has already entered into the market with innovation ideas of doing business, in automobile industries e-Mobility and Car-sharing business are the best example the convergence of brand and business ideas, e-mobility provides convergence between Fiat OEMs and Power Suppliers and Car-Sharing e.g Deutsche Bahan is the convergence between OEMs and mobility providers.From this we could able to figure out that convergence and innovative business ideas not only helps the BrandConvergence A New Business PlayerConvergence example E-Mobility and Car-SharingAssembled Product Combination of Branded ProductsIn coming future, one could imagine of a product developed like an IT product, for example an IT product such as cloud computing systems , IT f or green , Client computing , Advance Analytics (Business Intelligence software) is a combination of many software product provided by different brand leaders. This could be a future business concept across all products , one could think of his own car made up of worlds different brand leaders.