Chapter III

THEORETICAL FRAMEWORK –
CONSUMER BEHAVIOUR AND BRANDING
 Chapter III
THEORETICAL FRAMEWORK –
CONSUMER BEHAVIOUR AND BRANDING
____________________________________________________________________

“If the business were split up, I would give you the land and bricks and mortar,
and I would keep the brands and trademarks, and I would far better than you”-
John Stewart (Former CEO of Quaker Oats)

3.1 Introduction

In marketing it is believed, announced and picturised that consumer is the

king. Companies are providing goods and services to the market for satisfying the
needs and wants of consumers. For that it is essential for them to identify, define and
understand the target market, also its components, characteristics and unique nature.
A market consists of persons who have unfulfilled needs and wants. The knowledge
of consumer behaviour helps the marketer to understand how consumers think, feel
and select from alternatives like products and brands.
As far as consumers are concerned brand plays a significant communicative
and informative role. Brands are the ultimate differentiators and the basis of
customer relationship. In this era of globalization, brand is a key driver of economic
values of a company and it is a wealth generator. Brands bring consumers and
marketers closer and bind them together. The brand choice decisions of consumers
are critical to the marketers. Creating a successful brand is the ultimate aim of
marketing endeavour.

3.2 Customer and Consumer

Customer refers to a person who buys the goods or commodity and pays the
price for it. A Consumer is the user of those goods. The customer and the consumer
are the same, if the person purchases goods for his own consumption.

The word customer is derived from the term „custom‟ which means
„practice‟, so the word customer means the individual or entity who purchases

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products or services from a seller at regular intervals. The word consumer is made
from the word „consume‟ which means „to use‟. In this way, the word consumer
means a person who purchases the product or service for his own use or
consumption.

3.3 Consumer Attitude

Attitude is a feeling of favorableness or unfavorableness that an individual

has towards an object, a person, thing or situation. A consumer attitude is a
composite of three elements: cognitive information, affective information, and
information concerning a consumer's past behavior and future intentions. In other
words we can say the three elements are beliefs, feelings and behavioural intentions.

According to Leon G. Schiffman“Attitudes are expressions of inner feelings

that reflect whether a person is favorably or unfavorably predisposed to some object
(e.g., a brand, a service, or a retail establishment)”. Schiffman adds that it is “a
learned predisposition to behave in a consistently favorable or unfavorable way
based on feelings and opinions that result from an evaluation of knowledge about the
object”.

3.4 Consumer Behaviour

Consumer behaviour is comparatively a new field of study which began to

evolve rapidly after the Second World War. The seller‟s market disappeared and
buyers markets have come up. This change led to a shift of the manufacturer„s
attention from product to consumer and specially focused on the consumer
behaviour. Marketing concept changed from selling concept to consumer-oriented
marketing and it led to development of a discipline called consumer behaviour or
buyer behaviour. Consumers are heterogeneous and it makes difficult to understand
their behaviour. Marketers should need an in-depth knowledge of consumer buying
behaviour. They can use this valuable information for satisfying consumer‟s present
and future needs also for maintaining a long term relationship with consumers.
Simply we can say that understanding of how a consumer behaves in a market place
and why he behaves so is known as consumer behaviour. Consumer behaviour

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means the study of consumers mind. It is the study of what they buy, why they buy
it, when they buy it, from where they buy it, how often they buy it and how often
they use it.

Leon G.Schiffman and Leslie lazar Kanuk defined consumer behavior “as
the behavior that consumers display in searching for, purchasing, using, evaluating
and disposing of products, services and ideas which they expect will satisfy their
needs”. Consumer behaviour deals with the various stages a consumer goes through
before purchasing products or services for his end use. Consumer behaviour refers to
the study of buying tendencies of consumers. Companies need to understand the
buying behaviour of consumers for their products to do well. It is very important for
companies to understand and focus what prompts a consumer to purchase a
particular product or brand and what stops him from buying.

According to Walters and Paul, “Consumer behavior is the process

whereby individuals decide what, when, where, how and from whom to purchase
goods and services.

“Consumer buying behavior refers to the buying behavior of final

consumers - individuals and household who buy goods and services for personal
consumption”. All of these final consumers combined make up the consumer
market” (Philip Kotler and Garry Armstrong).

According to Solomon (1996) “Consumer behavior is the process involved

when individuals or groups select, purchase, use, or dispose of products, services,
ideas or experiences to satisfy needs and desires”.

William L. Willkie (1986) defined consumer behavior as „„the activities that

are selecting, purchasing and using products and services in order to satisfy the
needs and desires in which people engage”.

Engel, Kollat and Blackwell (1970) define consumer behavior as “acts of

individuals directly involved in obtaining and using economic goods and services,
including the decision processes that precede and determine these acts”.

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3.5 Buying Motives

Consumer has a motive for purchasing a particular product. The causes and
factors which stimulate consumer to buy certain goods or services are called buying
motives. Motive is a strong feeling, urge, instinct, desire or emotion that makes the
buyer to take a decision to buy. According to Prof.D.J.Duncan buying motives are
those influences or considerations which provide the impulse to buy, induce action
or determine choice in the purchase of goods or services. These motives are
generally controlled by economic, social, psychological influences etc. Buying
motives are classified into two: product motives and patronage motives.

Product motives- product motives means the desire to buy a particular

product.Product motive is classified into two; Emotional product motive and rational
product motive.

Emotional Product Motives -Emotional Product Motives are those

impulses which persuade the consumer on the basis of his emotion. The buyer does
not try to reason out or logically analyze the need for purchase. He makes a buying
to satisfy pride, sense of ego, urge to initiate others, and his desire to be unique.

Rational product motives- It is a type of buying motive where a person

thinks twice before buying the product. These are the impulses which arise on the
basis of conclusions arrived at after logical analysis and proper evaluation. Before
making decisions buyer considers a number of factors like purpose of buying,
alternatives available, cost benefit etc.

Patronage motives- Patronage buying motives refer to those considerations or

reasons, which prompt a buyer to buy the product wanted by him from a particular
shop in preference to other shops. Patronage motive is also classified into two;
Emotional patronage motive and rational patronage motive.

Emotional patronage motives- Here the buyer selects or patronizes a shop

without any logical reason. He selects or prefers some specific shops for buying the
goods without any special reasons.

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 Rational patronage motives- Buyer selects shops after proper evaluation
and logical analysis. Here buyer considers factors like wide variety of selection,
offers, after sale service etc before selecting a particular shop.

3.6 Buyer Decision Process

Generally a consumer passes through five stages with every purchase. They
are need recognition, information search, evaluation of alternatives, purchase
decision and post purchase behaviour. In real sense buying process starts before
actual purchase and continues after purchase. Because of these reason marketers are
required to concentrate on the entire buying process of consumers and understand
the real picture.

1
• Need recognition

2
• Information serach

3
• Evaluation of alternatives

4
• Purchase decision

5
• Post purchase decision

Figure 3.1
Stages in Buying Process

From the above picture it is clear that buying process involves five stages.
But in some cases there may be two or three cases. For example if a person is using
a particular brand regularly when the need arrives he just go to a shop and purchase
his particular brand or product. In this case the buying process has only two stages.
This situation arises in certain cases; otherwise there are five stages in buying
process.

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Need recognition- Buying process starts with need recognition that the buyer
identifies a need. A need may be the result of internal stimuli or external stimuli.
Internal stimuli means individuals‟ normal needs like hunger, thirst etc, when it rises
into a high level, people will acquire it and fulfill their needs. External stimuli
motivate people to satisfy their need in a different manner. With the influence of
other things like advertisement sometimes people will have different needs. It is very
important to understand needs of consumers and how they satisfy their needs. Here
marketer can form external stimulies to induce consumers towards their needs.

Information search- When a need is identified consumer may or may not search for
more information. The type or nature of the need determines information search by
the consumer. If the need is very urgent and the product that satisfies the need is
available easily they may not go for deep enquiry. Otherwise consumer will go for a
detailed information search and it depends upon some factors like availability of
information, importance given to additional information etc. Different sources are
availale for getting information. Personal sources like family, friends, and
commercial sources like advertising, shop displays and public sources like press,
internet etc. Companies should identify all these sources and provide maximum
information to consumers, at minimum of efforts, and ease of extraction.

Evaluation of Alternatives- At this third stage consumer is having a number of

brand choices from which he has to select the best one. For evaluating the available
alternatives each consumer adopts different evaluation procedures. Evaluation also
differs according to the nature of the products. In some cases, they may use deep and
logical thinking while in other cases they can easily determine their final choices.
From the choices, consumer selects brands according to preference.

Purchase decision- After evaluating all the alternatives consumer decides to

purchase his most preferred brand.This purchase intention may change due to factors
like unexpected situational changes, non availability etc. In some cases purchase
intentions may not lead to actual purchase. But in most of the cases purchase
intentions change into actual purchase.

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Post purchase behaviour- It means consumers‟ response after using the product or
service and it depends on whether the consumer is satisfied or dissatisfied. It simply
means that if the consumer is satisfied he will continue to buy the same brand and
become a loyal customer. If he is dissatisfied he will not purchase the same in future.
Consumer is having some expectations about the product which are provided by the
company. If the product fails to meet the consumers‟ expectations they will become
dissatisfied. To retain customers companies should be able to provide the offered
benefits to its customers.

3.7 Buying Roles

Gary Armstrong and Philip Kotler state that the marketer needs to know
what people are involved in the buying decision and what role each person plays. In
the case of some products it is easy for a marketer to identify the buyer. Normally
men choose their shoes and personal care products like hair oil, shampoo etc,
likewise women select their cosmetic items and hand bags. But in the case of some
other products, purchase decision is made by a group of members. It usually happens
in the case of car, mobile, home appliances etc. In such cases, all the family
members including children have their own opinions and suggestions. Friends and
colleagues may also give some advices.

People play five different roles in a buying decision. They are discussed
below:

 Initiator - The person who first suggests or thinks of the idea of buying a
particular product or service.

 Influencer - A person whose opinions, advice or ideas influencs the buying

decision of some one else.

 Decider- The person who finally makes a buying decision or any part of the
decision such as whether to buy, what to buy, how to buy or where to buy.

 Buyer - The person who makes an actual purchase of the product or service.

 User - The person or persons who consume or use a product or services.

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 A marketer or company needs to identify the different roles played by the
individual. This information will be helpful while designing the product,
determining the content of the advertisement, selecting the media for marketing
communication and deciding the promotional offers of the product or service. The
successful marketing program satisfies all or most of the participants in the decision
making group.

3.8 Types of Decision Process

Decision process means the process of decision making. Consumers‟

decision making process is very important for marketers as it leads to final purchase
and consumption. Different types of decision processes are discussed below. There
are mainly two situations and they are initial purchase and repeated purchase. In
initial purchase three types of decision processes exist and they are Extended
Problem Solving (EPS), Limited Problem Solving (LPS) and Midrange Problem
Solving (MPS). In repeat purchases two types of decision processes exist, and they
are repeated problem solving and habitual decision making.

Extended Problem Solving (EPS) - When the decision process is especially

detailed and rigorous EPS occurs. It is common in automobile purchase, expensive
clothing and other major products for which the costs and risks of wrong decisions
are high. Sometimes EPS is fueled by doubts and fears and sometimes it is based on
lack of experience and information about an expensive, significant of high
involvement purchase.

Limited Problem Solving (LPS) - In LPS there is little information search and
evaluation before purchase. It occurs when consumers have neither time or resources
nor the motivation to engage in EPS. In such cases they simplify the process and
reduce the numbers and variety of information sources, alternatives and criteria used
for evaluation.

Midrange Problem Solving (MPS) - EPS and LPS are two extremes on a decision
process. The decision process somewhere in between these two is MPS. It usually
takes a minimum amount of information to get the details.

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3.9 Factors Influencing Consumer Behaviour

Consumer purchases are influenced strongly by cultural, social, personal and

psychological characteristics.

I. Cultural factors

Culture: Culture is the set of basic values, perceptions, norms, attitude and
behaviours learned by a member of society from family and other important
institutions.

Subculture: Each culture contains different subcultures such as religions,

nationalities, geographic regions, racial groups etc. Marketers can use these groups
by segmenting the market into various small portions. Marketers can design
products according to the needs of a particular group.

Social class: Social class refers to the hierarchical arrangement of the society into
various divisions, each of which signifies social status or standing. Social class is an
important determinant of consumer behaviour as it affects consumption patterns,
lifestyle, media patterns, activities and interests of consumers.

II. Social factors

Social factors also impact the buying behavior of consumers. The important
social factors are: reference groups, family, role and status.

Reference Groups: Persons reference group are those groups that have a direct or
indirect influence on the person‟s attitudes or behaviour. Individuals use these
groups as reference points for learning attitudes, beliefs and behaviour, and adapt
these in their life. Family and close friends are considered to be primary reference
groups in an individual‟s life due to their frequency of interaction with the individual
and primacy of these significant others in an individual‟s life. Schoolmates,
neighborhood, colleagues, other acquaintances are a part of the secondary reference
groups of an individual.

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Family: Buyer behaviour is strongly influenced by the member of a family.
Therefore marketers are trying to find the roles and influence of the husband, wife
and children. If the buying decision of a particular product is influenced by wife then
the marketers will try to target the women in their advertisement. Here we should
note that buying roles change with change in consumer lifestyles.

Roles and Status: Each person possesses different roles and status in the society
depending upon the groups, clubs, family, organization etc. to which he belongs.
The social role and status profoundly influence the consumer behaviour and his
purchasing decisions.

III. Personal Factors

Personal factors can also affect the consumer behaviour. Some of the
important personal factors that influence the buying behaviour are: lifestyle,
economic situation, occupation, age, personality and self concept.

Age: Age and life-cycle have potential impact on the consumer buying behaviour.
Consumers change the purchase of goods and services with the passage of time.
Family life-cycle consists of different stages such as childhood, bachelorhood,
newly married couple, parenthood etc. which help marketers to develop appropriate
products for each stage.

Occupation: The occupation of a person has significant impact on his buying

behaviour. For example a marketing manager of an organization will try to purchase
business suits, whereas a low level worker in the same organization will purchase
rugged work clothes.

Economic Situation: Consumer‟s economic situation has great influence on his

buying behaviour. If the income and savings of a customer is high then he will
purchase more expensive products. On the other hand, a person with low income and
savings will purchase inexpensive products.

Lifestyle: Lifestyle of customers is another import factor affecting the consumer

buying behaviour. Lifestyle refers to the way a person lives in a society and is

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expressed by the things in his/her surroundings. It is determined by customer
interests, opinions, activities etc and shapes his whole pattern of acting and
interacting in the world.

Personality: Personality changes from person to person, time to time and place to
place. Therefore it can greatly influence the buying behavior of customers. Actually,
personality is not what one wears; rather it is the totality of behavior of a man in
different circumstances. It has different characteristics such as: dominance,
aggressiveness, self-confidence etc which can be useful to determine the consumer
behavior for particular product or service.

IV. Psychological factors

There are four important psychological factors affecting the consumer

buying behaviour. These are: perception, motivation, learning, beliefs and attitudes.

Motivation: The level of motivation also affects the buying behaviour of customers.
Every person has different needs such as physiological needs, biological needs,
social needs etc. The nature of the needs is that, some of them are most pressing
while others are least pressing. Therefore a need becomes a motive when it is more
pressing to direct the person to seek satisfaction.

Maslow‟s Theory of Motivation explains why people are driven by particular

needs at particular times. Maslow arranged human needs in a hierarchy according to
their importance. They are physiological needs, safety needs, social needs, esteem
needs and self-actualization needs. A person tries to satisfy the most important need
first. When that need is satisfied, it will stop being a motivator and the person will
then try to satisfy the next important need.

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 Figure 3.2
Maslow’s Need Hierarchy Model

Perception: Selecting, organizing and interpreting information in a way to produce

a meaningful experience of the world is called perception. What an individual thinks
about a particular product or service is his/her perception towards the same.
Individuals with the same needs might not purchase similar products due to
difference in perception. There are three different perceptual processes which are
selective attention, selective distortion and selective retention. In case of selective
attention, individuals pay attention to information that is of use to them or their
immediate family members. Where as, in case of selective distortion, consumers
tend to perceive information in a way which would be in line to their existing
thoughts and beliefs. Similarly, in case of selective retention, consumers remember
information which would be useful to them, rest all they forget in due course of
time.

Beliefs and Attitudes: Customer possesses specific beliefs and attitudes towards
various products. Since such beliefs and attitudes make up brand image and affect
consumer buying behaviour, therefore, marketers are interested in them. Marketers

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can change the beliefs and attitudes of customers by launching special campaigns in
this regard.

3.10 Types of Buying Decision Behaviour

Different buyers have different buying behaviour and also it differs in case of
different products. It means that an individual shows different behaviour in
purchasing different products and services. The below image depicts four types of
buying decision behaviour.

Figure 3.3
Types of buying decision behaviour

Complex Buying Behaviour- This behaviour shows high level of involvement at

the time of purchase and exist significant differences between brands. It happends
when the product is expensive and purchased for a long time usage. In such cases
consumers need a lot of time to select the brand and high involvement in purchase
decision occurs. For example while purchasing mobiles, laptops and cars consumers
show complex buying decision behaviour.

Dissonance Reducing buying behaviour- Here also consumers show high level of
involvement at the time of purchase but there exists few differences between brands.

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Due to high price and infrequent purchase consumers show high involvement but
they take relatively quicker decisions than complex buying behaviour. Another
reason for quick decision is few differences among available brands. In this case
consumer may feel some discomfort after using the product or service.

Habitual Buying Behaviour- When consumer involvement is low and few

differences exists among brands, it is called habitual buying behaviour.This happens
in the case of low cost, frequently purchased products like salt, match box etc.
Consumers just go to shops and purchase the products and they do not show loyalty
towards such products. Here consumers are not highly involved and they will not
search for detailed information, they just purchase familiar brands. Marketers can
increase brand familiarity among consumers by providing advertisemens through
television and newspapers which can be remembered easily.

Variety seeking buying bahaviour- This behaviour occurs when consumers show
low involvement even though there exists significant difference among brands. Here
consumers always switch brands just for variety and not because of dissatisfaction.
Consumers acquire products without much evaluation first time and next time they
purchase other brands for having a variety. In food items generally consumers show
variety seeking behaviour.

3.11 Consumer Behaviour Models

All consumers are different. The decision making process is same for all
consumers but they view different stages and processes in a different manner, thus it
affects final decision of the consumers. Marketer can easily understand and predict
consumer behaviour with the help of models as it contains a lot of variables which
explains different aspects of consumer behaviour.

3.11.1 Traditional Models

3.11.1.1 The Economic Model

Economic model says that buyer is a rational man and utility concept is
governing all the buying decisions of a buyer. Buyer is acting with an intention of

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maximizing benefits with minimum costs. If an individual have a lot of needs to be
satisfied with a limited amount of purchasing power, he will select the products or
items which will give maximum benefits from the available alternatives.

3.11.1.2 The Learning Model

All the buyer behaviour theories are based on a learning model called
Stimultaion-Response model which is known as SR model. Change in the behaviour
as a result of practice is known as learning. This theory states that behaviour is
affected by learning experiences of the buyers. Pavlovian stimulous response theory
states that buyer behaviour can be influenced by manipulating the drives, stimuli and
responses of the buyer. This model deals with individual‟s ability to leave, forget
and discriminate. Drive, cues and response are the three important elements in this
model.

3.11.1.3 Psychoanalytic Model

This model is based on Freudian psychology. Every individual consumer has

a complex set of motives which are deeply fixed in their mind and drives them
towards specific buying decisions. Each buyer has his own ideas, feeling, fears,
desires etc and his buying behaviour is influenced by both conscious and
subconscious mind. Sigmund Freud discussed three levels of consciousness (id, ego,
super ego) which are influencing individuals buying decisions.

3.11.1.4 Sociological Model

This model states that the individual buyer is influenced by society. His
buying decisions are not fully determined or governed by utility. People associated
with the individual, culture of the society to which he belongs etc influence
individuals‟ behaviour. Individual has a tendency to follow and fit in with his
immediate environment.

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3.11.2 Contemporary Models

3.11.2.1 Howard-Sheth Model

John Howard and Jagdish Sheth constructed Howard and Sheth model in
1969. It is an integrated and complex model of consumer buying behaviour. The
main components of the model are Input variables, Output variables, Hypothetical
constructs (Perceptual constructs and Learning constructs) and Exogenous variables.
Input variables are the stimulies from the environment. It consists of information
about the attributes of a product and brand. Output variables start from attention and
ends with actual purchase. Between these input and output variables there exist some
variables affecting perception and learning of consumers which are known as
hypothetical because they cannot be measured directly. This model also includes
some exogenous variables which are not clearly defined but significantly affect
buyer decisions.

Source: John A Howard & Jagadish Sheth, the Theory of Buyer Behaviour, John
Wiley, 1969

Figure 3.4
Howard-Sheth Model of Consumer behaviour

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3.11.2 .2 Engel-Kollat-Blackwell Model

Engel, Kollat and Blackwell model is also known as EKB model. It is a

comprehensive model which shows various elements of consumer decision making
and the interactions and relations among them. Five components of this model are
information input, information processing, decision process stage, decision processs
variables and external influences. .

Information Input- In this stage consumer collects information from all

available marketing and non-marketing sources.

Information Processing- Consumer processes the collected information. It

consists of exposure, attention, perception, accepatance and retension of collected
information.

Decision Process Stage- First stage of this model deals with decision
making process which involves five levels. They are problem recognition,
information search, evaluation of alternatives, purchase and post purchase
behaviour.

Decision process Variables- It includes all individual and environmental

influences that affect the decision making process. Motives, values, lifestyle and
personality are individual influences. Culture, reference group, family etc are
environmental influence.

External influences- The model also proposes certain environmental and

situational influences that affect the decision making process. The environmental
influences include social Influences like culture, sub-culture, social class, reference
groups, family and other normative influences. Situational influences include
consumer‟s financial condition.

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 Figure 3.5
Engel-Kollat-Blackwell Model

3.11.2.3 Nicosia Model

Francesco Nicosia developed a buyer behaviour model in 1966. This model

establishes a connection between organization and consumer. It states that the
message or information from the firm will influence consumers decisions about the
product or services. Model includes four areas. First area has two subfields ie firm‟s
attributes and consumer‟s attributes. According to firm‟s attribute consumer will
form an attribute towards the product or service offered by the firm. This resulting
attitude forms second area of the model. Before forming the attitude consumers go
through a detailed search and evaluation process of the available alternatves. If
consumers have decided to purchase the product the actual purchase becomes the
third area. Fourth area covers consumption and feedback about the product.

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 Figure 3.6
Nicosia Model

3.11.2.4 Stimulous Response Model

This model consists of three elements, marketing stimuli, buyer‟s blackbox

and buyer responses. Marketing stimuli affects buyer‟s blackbox and forms buyer
responses. Buyer characteristics and buyer decision making process together forms
buyer‟s blackbox. Marketers must understand inside elements of buyer‟s blackbox
and how stimulies are converted into responses. Marketing stimuli includes four ps
product, price, place and promotion. It also includes economic, technological,
political and cultural forces in the buyer environment. All these inputs enter into
buyer‟s black box and produce buyer responses in the form of product choice, brand
choice, dealer choice, purchase time and purchase amount. It is very important for

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marketers to study the changing process of stimulies into responses with the effect of
buyer‟s blackbox.

Figure 3.7
Stimulus Response Model

3.11.2.5 Andreason model

Andreason (1965) proposed one of the earliest models of consumer behaviour which
is shown below. The model recognizes the importance of information in the
consumer decision-making process and emphasizes the importance of consumer
attitudes although it fails to consider attitudes in relation to repeat purchase
behaviour. All the sources of information collection are filtered and matched with
other behavioural aspects like belief, norms, values etc; along with the search for
alternate, substitute and other probable suitable products. Finally it goes through the
budget, priority and fit for needs which some time work as constraint against the
initial needs and wants.

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 Figure 3.8
Andreason model

3.12 Brand

Brand is something which a company or firm uses to differentiate their

product or service from other products or services. The name which helps the buyers
in recalling the product instantly is known as brand name. Brand creates a
personality and life for company‟s products or services. The word ―brand is
derived from the Old Norse word, ―brandr which means ―to burn (Keller, 1993).

According to American Marketing Association (AMA) a brand as a name,

term, sign, symbol, or design, or a combination of them, intended to identify the
goods or services of one seller or group of sellers and to differentiate them from
those of competitors.

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 AMA redefined brand in 2009 as a name, term, design, symbol, or any other
feature that identifies one seller's good or service as distinct from those of other
sellers.

Duane E. Knapp defines a genuine brand as “the internalized sum of all the
impressions received by the customers (and consumers) resulting in a distinctive
position in their minds eye based on perceived emotional and functional benefits.”

Porter (1985) suggested a simple equation which defines a brand. S=P X D

X AV, Where S=Successful brand, P= Effective product, D= Distinctive Identity &
AV=Added Value.

Leslie de Chernatony and Francesca Dall'Olmo Riley (1997) described

brand as a multi dimensional construct having nine dimensions which were
classified under three categories viz. input, output and evolutionary perspectives.
The input perspective is company oriented, the output perspective is customer
oriented while the evolutionary perspectives is the long term orientation of the brand
as an evolving identity. The nine brand dimensions are Legal instrument, Logo,
Company, Identity, Image, Personality, Relationship, Added Value, and Evolving
entity.

The input perspective presents the brand as a legal instrument, logo, and the
organization which owns the brand, or as an identity system developed by the
company. This perspective purely looks at the brand in a non emotional way and
does not allocate any importance to the attachment between the brand and the
customer.

The output perspective of the brand consists of Image, Personality,

Relationship and Added Value. This perspective establishes the customer centric
nature of the brand. Here the brand represents the image it enjoys in the minds of
customers (Martineau, 1958), as adding value to the purchase, as a personality which
portrays the brand as a living being and as a relationship which the brand enjoys
with the consumer.

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Evolutionary perspective of brand portrays the evolving nature of brand. As and
when years pass more and more values may get attached to the brand. In this
perspective brand has 2 dimensions like added value and evolving entity.
3.13 Branding

Branding is the marketing practice of creating a name, symbol or design that

identifies and differentiates a product from other products. Branding is endowing
products and services with the power of the brand and it develops customer loyalty.
Branding facilitates product differentiation. It aims to establish a significant and
differentiated presence in the market that attracts and retains loyal consumers.

3.14 Significance of Branding

Branding is very important in this competitive marketing environment. It

provides different benefits to buyers as well as sellers.

To Consumers

 Branding helps easy identification of products in their choice list

 It gives information about the manufacturer
 Communicates features and benefits of the products
 It saves time of purchase
 With the brand name buyers can easily evaluate the available alternatives
 It may offer psychological reward to consumers

To Companies/Manufacturers

 Facilitates product differentiation

 Companies can introduce new products with the name of an existing successful
brand
 Helps to develop customer loyalty
 Allows for premium pricing
 Firms may be able to increase the price of a successful established brand
 Helps sales promotional activities

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3.15 Branding Principles

An effective branding program is designed to differentiate your product from

all the other products which are used for the same purpose, even if all the products
available in the market seem to look very much alike. A good branding program
should have some specific qualities. They are explained below.

 Keep It Simple: one big idea is best- Branding programmes should be simple
and effective. If one says a lot about his products it may not be good for our
products. Branding program should include some attractive elements which
induce consumers to pay attention towards it. People are getting a lot of
messages from different companies everyday. To differentiate our messages
from others it should be powerful, personal and simple. To build a world-class
organization a product requires attention to every detail.

 Mass-produced word of mouth (PR) builds brands- In this competitive

environment a bundle of money cannot buy name, recognition and brand
awareness. “The birth of a brand is achieved with publicity, not advertising.”
And continuing on that thought, “Once born, a brand needs advertising to stay
healthy.”( The 22 Immutable Laws of Branding- Al and Laura Ries )

 Focused brands are more powerful than diffused brands- One of the goals of
a powerful branding program is to create a memorable concept. And to stay in
people‟s minds, one must first get inside. This requires focused, sharp and to-
the-point branding. It is very important to define the brand clearly. There should
be a list of qualities that describes the company and it is called the brand
definition. Key to branding success is differentiation. One should select that
qualities which decsribes his brand in a way that‟s different from the
competition. It takes courage to be different, but that‟s what it takes to become
successful. According to branding experts good things happen when you narrow
your focus. A good agency will help you create the words and images to
communicate your brand, but your success will depend largely on your ability
to stay focused.

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 Somehow, some way, you have to be different- It is very important to make
the product to be different from competitors‟ products. If there is no clear cut
difference between your product and competitors‟ product, then you have to find
out something special and attractive and should connect that to your product.
Creative and versatile thinking is essential here to implement such ideas and it
will create a feeling that your product is different from others.

 The first brand in a category has a huge advantage- Companies should plan
and implement programmes which help them to be first not only in the market
but also in consumers‟ minds. Coke was the first carbonated cola drink. Polaroid
was the first manufacturer of instant developing cameras and film. It means that
some people are inventing something and they are becoming the first in that
product. Others are following them and trying to win first place if possible.
Obviously, not every product or company can be first. In most of the cases the
top two brands in the same categories tend to dominate the lion‟s share of the
market. So a strong second place is also good in the business world. If a
company is not able to become first or second then they can create a new sub
category and can become first in that category by adopting effective ideas.

 Avoid sub-brands at all cost- Introducing sub-brands commonly referred as

line extension don‟t work in long run in most of the cases and affect the life of
parent brands. According to Al and Laura Ries (The 22 Immutable Laws of
Branding), the easiest way to destroy a brand is to put its name on everything.
Companies introduce new product by using their successful brand name and
think that people will recognize the brand and trust the new product or sub-
brand. In most of the cases sub-brands benefit initially from the parent brand
recognition. The real aim of branding is to create a special singular identity in
the minds of people about the products or services. Introduction of sub –brands
dilutes the focus of parent brands and it will lead to failure of parent brands as
well as sub-brands.

 Quality is important, but not as important as the perception of quality-

Branding sets a product apart in the consumer‟s mind as unique, and therefore

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 more desirable and valuable. In the case of products and services quality is
important at the same time most important thing is perception of quality. It
means that the quality of the product should be shown to people by using
different ways like price, packaging, appearance etc. For real and lasting success
the perception of quality must be a reflection of actual quality. A key to good
branding is to communicate the important qualities that are actually experienced
by the user or buyer.

 Be consistent and patient. Building a strong brand takes time- While dealing
with brands companies should be consistent and patient because building strong
brands takes time and effort. Consistency and focus are the keys to long-term
success. Companies should have corporate style guide and written down brand
qualities. In order to attain target market and maintain a consistent image in the
market companies should institutionalize the brand within the organization.
Otherwise if the company changes its personnel its brand also will change.
Companies should prevent the tendency of playing with the brand it means
continuously changing the brand is not good for the organization. It is better to
present an image or brand consistently. Lack of consistency and lack of focus
will affect the brand badly.

 Put your brand definition in writing, otherwise you'll get off course- Every
company should have a written brand policy and definition. It will help the brand
to stay constant even with the changes in the marketing directors, employees and
advertising agencies. Generally every modification will weaken your position in
the consumer‟s mind. A brand definition works for a company on a regular basis
and it presents everything about the company in a different manner. Decision
making becomes easier with a written brand definition .For a successful brand
three things are important ie define the brand, write it down and enforce it.

3.16 Brand Elements

Brand elements are those trademarkable devices that serve to identify and
differentiate the brand. They are also known as brand identities. Important brand
elements are brand name, URLs, logos, symbols, characters, spokepeople, slogans,

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jingles, packages and signage. The customer based brand equity model suggests that
marketers should select those brand elements which help to enhance brand
awareness and facilitate formation of strong and unique brand associations.

Brand name- Selection of a brand name is an art and science. The brand name is an
important choice because it captures the central theme and key associations of a
product. Brand names that are simple and easy to pronounce, familiar and
meaningful can improve brand awareness. Short brand names facilitate easy recall.

URLs- URLs (Uniform Resource Locators) specify locations of pages on the Web
and are also commonly referred to as domain names. Companies must register and
pay for getting a specific URL. Most of the companies are using URLs for creating
websites for their brands because of the increased usage of internet services by the
consumers.

Logos and Symbols- Visual elements paly a vital role in building brand equity and
brand awareness. Some logos are literal representations of the brand name while
others are pictorial in nature. Logos and symbols help easy identification of
products.

Characters- Characters represent special type of brand symbol. Some of them are
animated characters and others are live action figures. Brand characters play an
important role in advertisement, campaigns and package designs. They are attractive
and help in creating brand awareness.

Slogans- Slogans are short phrases that communicate descriptive or persuasive

information about the brand. They play an important role in marketing programmes
especially in advertising and packaging. Slogans are also a powerful branding device
like brand name which helps to build band equity. Slogans summarise and translate
the intent of marketing program into a few short words or phrases.

Jingles- Jingles are musical messages written around the brand. They can
communicate brand benefits and enhance brand awareness. A well-known jingle can
serve as an advertising foundation for years.

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Packaging- Packaging is the activities of designing and producing containers or
wrappers for a product. Packaging serves objectives like identification of brand, aid
product consumption, facilitate product transportation and protection etc. For
achieving marketing objectives marketers must choose aesthetic and functional
components of packaging correctly. Aesthetic components mean package size and
shape, material, colour, text, and graphics. Structural design is an important
functional component of packaging.

3.17 Criteria for Choosing Brand Elements

Generally six criterias are suggested for selecting brand elements. They are
memorability, meaningfulness, likability, transferability, adaptability and
protectability. Among them the first three criterias are the marketer‟s offensive
strategy and build brand equity. Others play a defensive role for leveraging and
maintaining brand equity in the face of different opportunities and constraints.

Memorable- High level of brand awareness helps to build brand equity. Memorable
brand elements facilitate recall and recognition in purchase process.

Meaningful- Brand elements may have meaning with either descriptive or

persuasive content. Descriptive content means general information about the
function of the product or service and it suggests the needs satisfied or benefits
supplied. Persuasive content means specific information about particular attributes
and benefits of the brand and suggest some aspects of the product performance. The
first dimension is an important determinant of brand awareness and salience while
the second dimension is an important determinant of brand image and positioning.

Likable- In addition to memorability and meaningfulness the brand elements should

be aesthetically appealing to customers. Brand elements can be rich in imagery and
inherently fun and interesting, even if not always directly related to the product. It
should be likable visually, verbally and in other ways also.

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Transferable- Transferability measures the extent to which the brand element adds
to the brand equity for new products or in new markets for the brand. There are
several aspects to this criterion. One aspect is to what extent brand elements useful
for line or category extensions. Generally, the less specific the name, the more easily
it can be transferred across categories. Another one is that to what extent the brand
element adds to brand equity across geographic boundaries and market segments. It
depends on the cultural content and linguistic qualities of the brand element. One of
the main advantages of nonmeaningful, synthetic names is that they transfer well
into other languages. Also to avoid complications related to meaning of brand
elements companies must review all their brand elements for cultural meaning
before introducing the brand in to a new market.

Adaptable- The fifth consideration for brand elements is their adaptability over
time. Companies update brand elements due to changes in consumer values and
opinions. It is easy to update adaptable and flexible brand elements.

Protectable- While selecting brand elements marketers should ensure that they are
protectable both in a legal and a competitive sense. Marketers should concentrate on
three imporant matters related to legal protectability such as choose brand elements
that can be legally protected internationally, formally register them with the
appropriate legal bodies and vigorously defend trademarks from unauthorized
competitive infringement. Competitively protectable means if a name, package, or
other attribute is too easy to copy, much of the uniqueness of the brand may
disappear. Here companies can reduce the likelihood of brand elements which
protect them from competitors.

3.18 Brand Ladder

The term was coined by Kevin Lane Keller. Brand Ladder refers to the
various benefit levels which a brand provides to it consumers. Multiple qualities of
the brand can influence consumer decision making. Brand ladder is a marketing tool
used by marketers, to communicate all the benefits of a brand to the customer.

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 Figure 3.9
Brand Ladder

Attributes- It refers to the physical features of the product like specifications.

Functional Benefits: It refers to the benefits that are rendered to the consumer by
the attributes.

Emotional Benefits: It refers to how the product/ service connect with the consumer
in daily life through its usage.

The concept says that over a period of time, the projected use of the brand is
varied along the ladder. A brand initially showcases attributes as benefit, followed
by functional benefits finally leading up to the emotional benefits. Here the initial
promotion of product is based on physical attributes. In the next level functionality
of the product is being projected. In the final stage the campaign aims to form a
bond with the consumer projecting the product as a reliable friend. Through this
brand ladder the product is being perceived to be an emotional requirement.

3.19 Strong Brands

Strong brands are

 Valuable to the extent that enable the firms to explore opportunities (through line
and brand extension) and neutralize competitive threats (due to high customer
retention and loyalty rate).

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 Rare among manufacturers or marketers, current and potential competitors.

 Costly to imitate.

 Without strategic substitutes.

3.20 Selection of Brand Name

Brand name is the combination of words, letters or numbers used to identify a

product and to differentiate it from other products. Selection of brand name is an
important and prime task of brand management. A number of factors may be
considered by the company before selecting the brand name. Some of them are:

 It should be simple and easy to pronounce, recognize and remember

 It may indicate the nature and functions of the product

 It should be attractive and distinctive from other brands

3.21 Methods/ Approaches for Selection of Brand Name.

Companies are using different methods for naming their products.

Commonly used methods are explained below.

Use of Acronyms- Some companies are using acronyms for naming their products.
This is a common and easy method adopted by companies. Some examples are
AMUL (Anand Milk Union Limited), MRF (Madras Rubber Factory), LG (Lucky
Goldstar), KFC (Kentucky Fried Chicken) and ITC (Indian Tobacco Company).

Company Name- Another method is using the company name itself for the
products. Example is Samsung, Sony, Philips and Dabur.

Names which communicate function or attribute of the product- Some brand

names communicate product‟s functions and attributes.

3.22 Types of Branding

 Umbrella Branding/Family Branding- It is the marketing practice of giving a

single brand name for all the products manufactured by the company. Family

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 branding makes introduction of new products easier for the company because the
brand name is already familiar among the consumers. But if one of the products
fails it may negatively affect other products.

 Individual Branding/Product branding- In individual branding company uses

a distinctive logo, name and marketing strategy for each product that the
company offers to public. There may or may not be connection between the
products. Uniliver owns a number of brands in different markets with different
names.

 Private Branding/Own label branding- Private brands are initiated and owned
by retailers. The retailer markets the product under his own brand name.

 Sub-branding–Sub branding is the process of creating a secondary brand within

a main brand. Sub brands attributes and features are different but are related to
the main brand.

 Global branding- This is the practice of using the brand name in international
level. L‟Oreal, McDonalds restaurant, KFC etc are examples of global branding.

 Co-branding- In co-branding two companies join to create a new product

carrying both their brands. McCains cake and KFC, Pizza Hut & Pepsi are
examples of co-branding.

3.23 Brand Awareness

Brand awareness simply means knowledge about the existence of the brand
or product in the market. Brand awareness refers to the strength of a brand‟s
presence in the consumer‟s mind (Aaker 1996). It means the extent to which
consumers are familiar with the qualities or image of a particular brand of goods or
services and the ability to identify a brand under different conditions. It is also
known as ability of a potential buyer to recognize or recall brand. Brand awareness
helps the customers to understand to which product or service category the particular
brand belongs to and what product and services are sold under the brand name. It

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also ensures that customers know which of their needs are satisfied by the brand
through its products (Keller).

Brand recognition and brand recall are the two crucial parts of brand
awareness. Brand awareness involves a continuum ranging from an uncertain feeling
that the brand is recognized to a belief that it is one in the product category (Aaker
1991). A brand that can be easily recalled has a deeper level of brand awareness than
one that can only be recognized.

3.23.1 Factors Affecting Brand Awareness

Brand name- Brand name plays an important part in creating awareness for a brand.
It is better to have a meaningful, attractive and simple name. Also it should be easy
to remember the brand name.

Advertising -Advertising helps to create high brand awareness among consumers.

Celebrity- Celebrities endorsing brands have an important role in affecting brand

awareness. People will give more attention to advertisements when they see their
favourate celebrities and will try to know more about the brands and products.

Parent company- Parent company helps a lot in promoting a brand. Popularity of

the parent company helps the brand to become popular and people get aware of the
product easily.

Sales promotions and offers- Sometimes consumers are aware about the
brand/product through sales promotions and offers. Attractive and special sales
promotions/offers help to increase the awareness among consumers.

First mover advantage- The company that enters into a product category first has
this advantage. Generally people will remember the first player in the market.

Public relations- Public relations activities through fourth estate and press plays an
important role in building brand awareness about brands.

Direct selling- Direct selling acts as a major tool to create brand awareness.

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Peer group opinion- Peer group opinion also increases brand awareness. People
usually discuss about brands and share their experience with the brand among peer
groups.

Recall of advertisements-Recalling of advertisements also helps to increase

awareness.

3.23.2 Levels of Brand Awareness

Brand awareness has four levels. They are shown below:

Top of
mind

Brand recall

Brand recognition

Unaware of brand

Source- Aker David A (1991), Managing Brand Equity, p.62

Figure 3.10
Brand Awareness Pyramid

Unaware of brand - It is the first level in the brand awareness. It simply means that
people are not aware about the brands. It is very risky situation for the companies.
Companies use different methods to create brand awareness among consumers.
Marketers should try to avoid this first level in brand awareness as soon as possible.

Brand recognition- It means the amount to which a brand is recognized by the

consumer through its particular attributes.

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Brand recall- It is the extent to which a brand is recalled with a product type or
class of products by the consumers. A brand‟s value is directly connected to its
presence in the memory of consumers. Brand recall can be divided in to two;
namely, aided recall and un-aided recall. In the case of aided recall, some hints about
the brands are shown to customers and checks that they are able to remember the
brand name or not. It means that symbols, logos, celebrity‟s name or pictures are
used to check the recall ability of consumers with reference to brands. Unaided
brand recall checks that if the consumer can remember the brand name without
giving any hints or information about the brands. Unaided brand recall is more
important for companies as it gives a competitive advantage against their rival
companies. Brands which come to mind on an unaided basis are likely to be the
brands in customer‟s consideration set and thus have a higher possibility of being
purchased.

Top of mind- If we are asking about products or brands some particular image,
sound, name, brand or attribute will come to individual‟s mind immediately. This is
called top of mind recall. Every company aims to create the top of the mind recall in
consumers about their brands.

3.24 Brand Preference

"Brand Preferences can be defined as the subjective, conscious and

behavioral tendencies which influence consumer‟s predisposition toward a brand".
Brand preference is when you choose a specific company's product or service when
you have other, equally-priced and available options. It means a consumer chooses a
particular brand in presence of competing brands, but will accept substitutes if that
brand is not available.

3.25 Brand Loyalty

Brand loyalty is the degree of consumer attachment to a brand. It occurs

when consumers committed to a brand and make repeat purchases over time. Loyal
consumers will consistently purchase their preferred brands regardless of
convenience or price. Brand loyalty is an act of purchasing the same brand within a

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product category again and again. It is the biased behavioural response expressed
overtime by some decision making unit with respect to one or more alternative
brands out of a set of such brands, and is a function of psychological processes.

According to American Marketing Association “Brand Loyalty is the

extent to which a consumer constantly buys the same brand within a product
category”.

According to Bloomer and Kasper, “Brand Loyalty implies that consumers

bind themselves to product or services as a result of a deep – seated commitment”.
Brand loyalty is based on an emotional involvement that develops between the
consumer and the brand.

For the buyers a brand conveys a promise from the manufacturer in the form
of specific attributes like quality, value, satisfaction, services etc. Consumers will be
loyal to a brand based on the benefits which they are getting from the product. These
benefits may vary from product to product. In the case of food products some
common benefits are quality, price, satisfaction after use, easy to use and durability
etc.

A market can be divided based on consumer loyalty patterns. Brand loyalty

also can be used as a basis for market segmentation. A clear understanding of brand
loyalty helps companies to create and strengthen their relationship with consumers.
In a market there exists mainly four types of loyalty. They are discussed below:

Hard core loyalty- Hard core loyal consumers buy same brand all the time.
They are committed buyers of a particular brand with undivided loyalty. Hardcore
loyal consumers always speak in favour of their brand. This hard core loyalty leads
to brand insistence.

Soft core loyalty- Soft core loyal consumers are loyal to two or three brands.
Consumers may have divided loyalty. They maintain their loyalty between two or
three specific brands.

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 Shifting loyalty- These types of consumers shift their loyalty from one
brand to another. They are loyal to one brand for sometime after that they shift to
another brand and become loyal to that brand.

Switchers- Switchers show no loyalty to any brand. They always buy

different brands.

3.26 Brand Switching

Brand switching is a situation in which someone changes from buying one

brand of a product to buying a different brand. Customers‟ switching behavior refers
to the level of propensity of customers to switch from one product or service
provider to another in a given industry or purchase situation. Brand switching is
sometimes induced by extrinsic incentives, such as sales promotion or as a result of
in- trinsic motives such as a desire to try a new brand. Price increase, deterioration
of quality, attractive offer from new brands, family members dissatisfaction etc are
some of the top reasons for brand switching.

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