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EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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I SHASHANK SRIVASTAV student of SCHOOL OF MANAGEMENT &
SCIENCES, VARANASI of MBA IV semester, hereby, declare that the
Research Project Report having the title. EFFECT OF BRANDING ON
CONSUMER BUYING BEHAVIOUR WITH THE REFERENCE TO
FASHION INDUSTRY .There are several things, which are essential and
important.
It is outcome of my own work and the same has not been submitted to any
universityCollegeInstitution for the award of my degree
Date : SHASHANK SRIVASTAV
Place :Varanasi Roll No.1510670090
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Management is a profession wherein no work can be accomplished without
the help and assistance of a large number of people, be it your superiors or
subordinates. A good manager is the one who knows how to get the work
accomplished with the help of his colleagues. As future managers, we are
taught to practice such behavior at every step. This project is also a part of it.
My sincere thanks to Mr. PINAK NATH JHA Director of SMS Varanasi,
Coordinator of MBA Course Mr. KARTIKEYA SINGH and in last but not
least the Guide of the Project Dr. ANIL KUMAR GOPE, for initiating and
guiding the project with attention and care. He has always been available for
me to put me on track from time to time to bring the project at its present
form.
Date: SHASHANK SRIVASTAV
Place:Varanasi Roll No. 1510670090
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Customers all over the world now prefer branded products. This study is
aimed at analyzing the effect of brand on consumer buying behavior. Along
with finding the effect of brand on consumer buying behavior the purpose of
the study is to have an in depth knowledge of what actually is branding and
consumer behavior. To study the relationship between brand and consumer
behavior the following methodology is opted: Consumer Survey on the effect
of brands on their buying behavior through questionnaire. The key results of
the study are: The degree brand of consciousness goes ondecreasing in higher
age groups; price & brand were the major attributes that customer’s gave
most importance and 80% people believe that Brands in fashion industry have
become a status symbol.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Sr. No. Topic Page
No.
I. CHAPTER  Executive Summary
 Introduction
 Literature Review
 Objective of the project
 Limitation of the project
6
7
8
9
10
II. CHAPTER  Concept Of Branding
 Introduction Of Consumer
Behavioutr
 Impact On Brand On Consumer
 Behaviour
 Positioning
13-22
23-29
30-37
38-39
III. CHAPTER  Research Methodology 41-43
IV. CHAPTER
V. CHAPTER
 Finding $ Analysis
 Conclusion
 Recommendation
 Bibliography
45-58
60-61
62-63
64
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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CHAPTER-I
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Brand is a Guarantee, an assurance for a defined standard of quality for the first time and
for every time but not the vice versa. Brand is name or logo that plays the role in the mind
of the customer. Brands do not compete in the product area but compete for the mind
space of the customer. A brand once established in the mind of the customer becomes
indelible when customer identifies itself with that particular Brand.
Branding is an effective marketing strategy tool that has been used with frequent success in
the past. Branding can be an effective and powerful tool for all types of business
organizations. If brand owners use their product correctly, the payoffs can be substantial.
However, if brands are mismanaged, the results can be damaging.
This report is aimed to investigate the effect of brand on consumer buying behavior. How
much consumers are prepared to pay for branded products, how important they consider
price, brand or other factors during their purchasing decisions. The Report aimed at
comprehensive literature review on branding, brand loyalty, brand awareness, brand
equity and brand perceptions, price sensitivity and willingness to pay.
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Brand these days have become a status symbol. Customers all over the world now prefer branded
products. But why is the question. Is it the quality that attracts customers towards brand or some
other related factor? This study is aimed at analyzing the effect of brand on consumer buying
behavior. Along with finding the effect of brand on consumer buying behavior the purpose of the
study is to have an in depth knowledge of what actually is branding and consumer behavior.
All the study has been conducted with reference to fashion industry in India. Firms in fashion
industry are competing to increase their profit share in the market and among these firms;
branded clothing & accessories has shifted the conventional style & interest of people. A brand
which is sold at a high price and the other which is sold at low price while both have same
quality and attributes, why is that? Brand studies always have remained the key attention of the
marketer’s because of its importance and direct relationship with consumers.
Marketers use brands as to get the competitive advantage on other competitors playing an
imperative role in the success of companies. Brand holds a great importance in consumer’s life.
Consumer’s choose brands and trust them the way they trust their friends and family members to
avoid uncertainty and quality related issues. India has a successful growing economy and the
Fashion industry of the country has advanced tremendously in the recent
years. The increasing use of fashion goods and the emerging market has intrigued foreign as well
as local brands to provide services to its customers.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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The concept “brand image” has drawn significant attention from academics and practitioners
since it was put forward, because it played an important role in marketing activities. Although
brand image was recognized as the driving force of brand asset and brand performance, few
studies have elaborated on the relationship between brand image and brand equity. Based on the
brand image theories, this study reviewed extant studies about the impact of brand image on
consumer from perspective of customer equity. It also presented the shortcomings of current
research and pointed out the trends for future study.
The topic of consumer behaviour is one of the massively studied topics by the researchers and
marketers in the past and still being studied. Researchers show different reasons as to why
consumer behaviour has been the topic of many academics and researchers. One of the common
views is that understanding consumer behaviour has become a factor that has a direct impact on
the overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that
understanding consumer behaviour has become crucial especially due to fierce competition in
retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce some
other areas of research background of consumer behaviour addressing the works
of researchers and marketers. Moreover, consumer decision making process, in particular, five
stages of consumer decision making process will be discussed in detail.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Importance of understanding branding and its impact on modern day markets is vital to the
health and growth of most industries. The aim of this report is to put into perspective the
functional values of branding as well as assess its role in the consumer purchase decision-making
process.
 Understanding the concepts of branding and consumer behavior.
 To study the effect of brands on consumer buying behavior in relation to Readymade garments.
 To analyze the branding strategies adopted by some of the companies in the readymade garments
to woo the consumers into buying their products.
 To do a comparative study of the branding strategies adopted by the companies in the readymade
garments.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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 This project is limited due to time constraint as it involves a lot of complex variables
which require a detailed study over a period of time.
 The project did not cover the effect of branding on a very large scale. Only a small
population was studied, which may not be enough to show correct picture.
 The consumers were very reluctant to answer the question and the response may be
biased.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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In order to fully answer this research question, the following objectives have been set:
• Set a valid and sustainable research question in order to achieve a non-bias and accurate
understanding on the topic in question;
• Present the key concepts behind branding, its values and its usage in modern day marketing
campaigns by reviewing current literature pertaining to the subject matter;
• Determine whether a correlation between consumer identities and perceived brand identities is
present;
• Determine the impact of branding on the consumer purchase decision-making process
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.
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CHAPTER-II
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Branding more or less for centuries has been a mean to differentiate goods of one producer from
that of another. Brand studies have always remained a key attention of marketers because of its
importance and direct relationship with consumers. Several studies illustrate that, marketers use
brands as the primary point of differentiation to get that competitive advantage on other
competitors playing an imperative role in the success of the company. Brand holds a very
significant place in the life of a consumer. Consumers choose brands and trust them to avoid
uncertainty and quality related issues.
Brand serves as a pivotal role for distinguishing goods and services from those of the
competitors. Aaker (1991) and Murphy (1998).the emergence of brand equity underlies the
importance of brand in marketing tactics and hence provides useful insights for managers and
further research, Keller (2003).
A brand can be an everlasting and lucrative asset as long as it is maintained in a good manner
that can continue satisfying consumers’ needs,Batchelor(1998) andMurphy(1998). Although
successful brands can be totally different in nature, they share something in common, for
instances well-priced products and consistent quality,Murphy(1998).
As mentioned by Levitt (1983), there are four elements for building a successful brand, namely
tangible product, basic brand, augmented brand and potential brand. Tangible product refers to
the commodity which meets the basic needs of the customers. Basic brand, on the other hand,
considers the packaging of the tangible product so as to attract the attention from the potential
customers. The brand can be further augmented with the provision of credibility, effective
aftersales services and the like.
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Brand is a name in every customer mind Mooij (1998) and it is characterize by a noticeable
name or symbol which can differentiate the goods and services from the rivals Aaker(1991) and
Keller(1998).in addition to a specific brand name, a brand is composed of products, packaging,
promotion, advertizing as well as its overall presentation, Murphy(1998). From the consumer’s
perspective, brand is a guarantor of reliability and quality in consumer products. Roman et al
(2005) added to this, consumers would like to buy and use brand-name products with a view to
highlight their personality in different situational contexts, Aaker (1999) and Fennis and Pruyn
(2006).
Nowadays, consumers have a wide range of choice to choose from when they enter a shopping
mall. It is found that consumers’ emotions are one of the major determinants which affects their
buying behavior Berry (2000).
According to a research conducted by Freerdie Media LLC(1998) on shopping habits, nearly
one-fourth of the respondents are impulse –buy products they have not budgeted for. When
deciding which products to purchase, consumers would have their preference, which are
developed in accordance with their perceptions towards the brand.
Successful branding could make consumers aware of the presence of the brand and hence could
increase the chance of buying the company’s product and services,Doyle (1999).
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
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Branding in Today’s Markets
A central function of branding is the facilitation of the consumer choice process. Due to the
complexity of having to select a product amongst thousands of similar offerings, consumers will
instinctively attempt to simplify their choice process by selecting brands that have satisfied them
in the past. Thus, one can conclude that pleasant past experiences is highly conducive to
consumers associating benefits to a brand. One can conclude that a central function of branding
is its ability to negate the need for a consumer to seek out information when a need or a want has
been recognized, but rather, lead him to a brand that has been satisfying in the past..
One must acknowledge however, that frequent purchasing of a brand cannot always be linked to
previous experiences, but can alternatively be formed by embedded perceptions. A consumer
might strongly favour a brand with no prior purchasing experience. This type of consumer
behavior is based on stimulus provided by direct exposure to advertising campaigns, a
company’s PR efforts or even a high concentration of local distribution in an area that is in close
proximity to a consumer.
In terms of companies’ views on branding, it can induce the natural differentiation of their
offerings, which ultimately, will produce a state of competitive advantage. Differentiation can
only allow for competitive advantage if the cost of differentiating is significantly lower than the
revenue earned by the sales. Differential advantage allows companies to showcase their offer in
respects to other competitors in the same marketplace.
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Brand Equity
The term brand equity refers to a set of assets and liabilities associated with a brand, including its
name and symbol, which could impose beneficial or detrimental effects on the values arising
from the products or services Aaker (1991) and Yasin et al. (2007). Added to this, Keller (1998)
points out that brand equity signifies the unique marketing effects imposed on the brand.
Concerning the positive side of brand equity, it happens when consumers are willing to pay more
for the same level of quality just because of the attractiveness of the name attached to the product
Bello and Holbrook (1995). However, brand equity could be ruined if it is not properly
managed. For instance, poor product quality and customer services could adversely affect the
brand image, giving rise to a reduction in sales volume.
One of the quintessential examples regarding brand as a kind of equity is the imposition of laws
to protect intellectual property, Murphy (1998). In countries with well-established legal system,
the values of brands have been recognized to both the consumers and producers. In order to
combat piracy, many countries have set up laws to protect trademarks, patents, designs as well as
copyright. In addition, brand is also a tradable product with measurable financial value, Murphy
1998). It is not uncommon to find some familiar brands listed on the stock markets in which they
could be bought or sold. Brands like HSBC, Marks and Spencer, Vodafone, Sainsbury and Tesco
are all listed on the FTSE 100 index (London Stock Exchange, 2007). It is found that the
volatility of stock market could affect consumers’ purchasing mood, not to mention the growth
or declines of retail sales Blackwell (2002).
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This is supported by the fact that brand equity depends on the number of people with regular
purchase Aaker (1996).The above examples highlight the values of brand equity for both
consumers and the firm. For
the consumers, brand equity could provide them with information about the brand which
influences their confidence during the purchasing process. There is a high propensity for
consumers with good perceptions to buy from the same shop again than those with poor
perceptions. Past purchasing experiences and familiarity with the brand could be attributable to
the perceptions generated from the consumers, Aaker (1991). As for the firm, brand equity could
also be a source for the firm to generate cash flow. For instance, the merger between adidas and
Reebok in 2005 not only increased their market share so as to compete with Nike in the US
sports apparel market.
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Brand Awareness.
Brand awareness is one of major determinants of brand equity. It refers to the ability of a
potential consumer to recall and recognize the brand, linking the brand with its corresponding
product class,Aaker (1991). The level of brand awareness lies in a continuum, with brand
recognition being the lowest level and the first named brand with unaided recall being the
highest level. It is important for the potential consumers to be aware of a product so that it can
become one of the purchasing choices. This is due to the fact that the product needs to enter the
awareness set before it comes to the consideration set,Blackwell et al. (2001) and an increase in
brand awareness is conducive toa higher chance of entering the later set Nedungadi, (1990). In
this way,brands with higher level of awareness would be more likely to be purchased,
Yasin et al. (2007). This could probably explain why consumers tend to buy a recognizable
brand rather than an unfamiliar one,Hoyer (1990) and Macdonald and Sharp, (2000). Several
factors can alter the level of brand awareness. In case of China, its geographical location and
politics could affect the consumer brand awareness level seriously. According to research
conducted by Delong et al. (2004), owing to geographical differences, Chinese consumers cannot
distinguish US product brand names from the European ones.
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As mentioned by Keller (1998), brand awareness can be enhanced through repeat exposure to the
brand. In order to achieve brand awareness, two tasks are to be accomplished, namely increasing
brand name identity and associating it with the product class. Advertising and celebrity
endorsement could be some useful tools for raising brand awareness. It is found that
advertisement attitude is attributable to the influence on brand attitudes, affecting consumer’s
intention to purchase, Mackenzie et al.(1986) and Tsai et al. (2007). In recent decades, there is
an increasing number of advertising campaigns around the world. Consumers are hence well
equipped with comparative elements to judge which product or service to purchase, Alvarez and
Casielles (2005). Moreover, celebrity endorsement can give rise to source credibility and source
attractiveness.
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Brand Loyalty.
Brand loyalty is one of the core components of brand equity and also positively and directly
affected brand equity,Atilgan et al. (2005). Under the influence of brand loyalty, consumers
continue to buy the brand, regardless of the superior features, prices and convenience owned by
its competitors Aaker(1991). The more loyal the consumers are towards the brand, the less
vulnerable the customer base would be. Based on the practice that repeat buying is one of the
indicators for brand loyalty, Keller (1998), however, challenges that such measure may not be
totally accurate. This is due to the fact that some consumers make habitual purchase towards a
particular brand just because of its prominence in stock and effective promotions.
Keller (1993, 1998) further divides brand associations into three categories, namely attributes,
benefits and attitudes. Attributes refer to the specific characteristics a product has. Attributes can
be further categorized into product-related attributes as well as non-product related attributes.
For product-related attributes, the overall features of the product or service are concerned. As for
non-product related attributes, price information, packaging, user imagery as well as usage
imagery are to be considered. Benefits are another category in brand associations. They can be
classified into functional, experimental and symbolic. Function benefits signify the physical or
basic advantages a brand may have. For experimental benefits, they are related to consumers’
emotional feelings. Symbolic benefits, on the other hand, refer to the signal effect that a brand
may impose on the consumers. Signal effect is determined by the image of consumers and also
the personality of the brand.
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Consumers are attracted by the signal when they purchase a product in a particular brand.
Finally, attitudes are regarded as the consumers’ overall assessments towards a brand. They
incorporate summary evaluations of information which represent how consumers feel in a long
run, lying in a continuum from positive to negative,Gabbott and Hogg(1998).
Different brands have different associations to their prospective customers. Such kind of
associations can provide bases for them to make purchase decisions and even become loyal to
the brand, Aaker (1991). Associations towards a brand can create value for the firm and so its
customers in a number of ways. First of all, they help the customers to process or retrieve
information, Keller (1998). Customers are sometimes forgetful and associations towards a brand
serve as a brief summary for the customers to make their purchasing decision. Associations can
also be used to trigger the customers to recall their past experiences, making the customers
remember the brand by heart. Second, brand associations can differentiate one brand from
another. It is about brand positioning that a well-positioned brand will find it hard to be attacked
by its competitors due to its uniqueness. This can make the brand unbeatable but it is quite
difficult to achieve since consumer taste changes quite rapidly. Third, brand associations may
include some product attributes or consumer benefits which encourage the consumers to
purchase the brand. Forth, some associations can engender positive feelings. For examples,
adidas slogan ‘Impossible is nothing’, Madonna appearance in H&M’s collection advertisement
can stimulate customers their positive feelings about the products.
Once brand associations are constructed in a meaningful way, a vivid brand image is established.
Brand image possibly affects how consumers perceive the brand and hence their purchasing
behavior. There may be products on the market with similar quality and design. However, the
specific brand image attached on a product may differentiate itself from the others.
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Perceived Quality
Another important attribute to brand equity is perceived quality. It is defined as the customer’s
perception of the overall quality or superiority of a product or service, Aaker (1991), Keller
(1998) and Yasin, (2007). Since it is a kind of intangible, overall feeling towards a brand, itIs
subjective in nature and hence the knowledge of actual detailed product specifications couldhave
little correlation with the perceived quality.
Perceived quality of a brand could help generate values by providing a pivotal reason-to-buy,
differentiating the position of a brand, charging premium price, motivating channel members to
perform well and also introducing.
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Consumer behaviour is the study of individuals, groups, or organizations and the processes they
use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society. It attempts to understand the
decision-making processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from groups such as
family, friends, reference groups, and society in general. Behaviour study is based on consumer
buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.
Research has shown that consumer behaviour is difficult to predict, even for experts in the field.
Consumer behavior involves the psychological processes that consumers go through in
recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether
or not to purchase a product and, if so, which brand and where), interpret information, make
plans, and implement these plans (e.g., by engaging in comparison shopping or actually
purchasing a product).
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Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.
1. Social Factors
Social factors refer to forces that other people exert and which affect consumers’ purchase
behavior. These social factors can include culture and subculture, roles and family, social class
and reference groups.
Example:
By taking into consideration Reference group, these can influence/ affect the consumer buying
behavior. Reference group refers to a group with whom an individual identifies herself/ himself
and the extent to which that person assumes many values, attitudes or behavior of group
members. Reference groups can be family, school or college, work group, club membership,
citizenship etc.
Reference groups serve as one of the primary agents of consumer socialization and learning and
can be influential enough to induce not only socially acceptable consumer behavior but also
socially unacceptable and even personal destructive behavior. For example, if fresher student
joins a college / university, he/she will meet different people and form a group, in that group
there can be behavior patterns of values, for example style of clothing, handsets which most of
group member prefer or even destructive behavior such as excessive consumption of alcohol, use
of harmful and addictive drugs etc. So, according to how an individual references him / her to
that particular reference group, this will influence and change his/her buying behavior.
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2. Psychological Factors
These are internal to an individual and generate forces within that influence her/his purchase
behavior. The major forces include motives, perception, learning, attitude and personality.
Example:
Attitude is an enduring organization of motivational, emotional, perceptual and cognitive
processes with respect to some aspect of our environment. Consumers form attitude towards a
brand on the basis of their beliefs about the brand. For example, consumers of Sony products
might have the belief that the products offered by Sony are durable; this will influence those
customers to buy Sony products due to this attitude towards the brand.
3. Personal Factors
These include those aspects that are unique to a person and influence purchase behavior. These
factors include demographic factors, lifestyle, and situational factors.
Example:
Lifestyle is an indicator of how people live and express themselves on the basis of their
activities, interests, and opinions. Lifestyle dimension provide a broader view of people about
how they spend their time the importance of things in their surroundings and their beliefs on
broad issues associated with life and living and themselves. This is influenced by demographic
factors and personality.
E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less
informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their
lifestyle and profession, the buying behavior of people differs from one another.
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Consumer Buying Decision Process
Consumer buying decision process is the processes undertaken by consumer in regard to a
potential market transaction before, during and after the purchase of a product or service.
Consumer decision making process generally involves five stages:
A. Problem Recognition
Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or
problem. This is the vital stage in buying decision process, because without recognizing the need
or want, an individual would not seek to buy goods or service.
There are several situations that can cause problem recognition, these include:
 Depletion of stock
 Dissatisfaction with goods in stock
 Environmental Changes
 Change in Financial Situation
 Marketer Initiated Activities
It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she
recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to
be repaired or buying a new piece.
B. Information Search
After the consumer has recognized the need, he / she will try to find the means to solve that need.
First he will recall how he used to solve such kind of a problem in the past, this is called nominal
decision making.
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Sources of information include:
 Personal sources
 Commercial Sources
 Public sources
 Personal experience
C. Alternatives Evaluation
Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits
that a consumer desires to solve a certain problem. Product features and its benefit is what
influence consumer to prefer that particular product. The consumer will decide which product to
buy from a set of alternative products depending on each unique feature that the product offers
and the benefit he / she can get out of that feature.
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D. Purchase Action
This stage involves selection of brand and the retail outlet to purchase such a product.
Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet
for minor shopping and they can willingly go to a far away store when they purchase items
which are of higher values and which involve higher sensitive purchase decision. After selecting
where to buy and what to buy, the consumer completes the final step of transaction by either cash
or credit.
E. Post-Purchase Actions
Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the
purchase is basically a function of the initial performance level expectation and perceived
performance relative to those expectations. Consumer tends to evaluate their wisdom on the
purchase of that particular product. This can result to consumer experiencing post purchase
dissatisfaction. If the consumer’s perceived performance level is below expectation and fail to
meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet
will not be considered by the consumer in the future purchases. This might cause the consumer
to initiate complaint behavior and spread negative word-of-mouth concerning that particular
product.
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Branding’s Influence on ConsumerPurchasing
Behavior
The preceding section of this literature reviewed has sought to define the term branding and
explain its functions and values as an instrumental marketing tool used in attaining differential
and competitive advantage.
The following section of this literature review will seek to enlighten the impact branding has on
the consumer decision-making process.
First however, one must gain clear insight into the definition of consumer buying behavior in
order to understand the impact branding has on it. In defining “consumer buying behavior”, one
may refer to Assael (1987) who distinguishes four types of consumer buying behaviors. He bases
these four consumer types on the varying degrees of involvement and the degree of
differentiation amongst the brands in question.
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Consumers who are described as displaying complex buying behavior will expand their beliefs
regarding a particular product as a starting point. This stage will eventually lead them to develop
positive attitudes regarding the product. These intermediary stages lead them to the final stage of
their behavioral pattern, where they consciously make the choice of purchasing the product.
Referring to the Assael’s model; one will notice this type of consumer engages in highly
involved purchasing experiences being fully aware of the range of brands available and their
levels of differentiation.
Assael (1987) classifies consumer who exhibit Dissonance-reducing behavior as consumer who
are highly involved in the purchasing experience, however see few differences between brands.
For this reason, the consumer will seek information on the differentiation of the product
offerings and will not be particularly price sensitive when seeking functionality. In the event that
this consumer finds him or herself in a market that displays low levels of differentiation, the
consumer might result to purchasing influenced by convenience. Like consumers who display
complex buying behavior, consumers with dissonance-reducing behavior will seek to establish
personal beliefs regarding the product. If fostered adequately, these beliefs with eventually
transform into attitudes regarding the product offerings. These attitudes, if favourable, will lead
to a thoughtful purchase.
Assael (1987) considered consumes displaying habitual buying behavior as consumers who did
not experience the same sequence as the previous two behavioral types. Instead of basing their
decision-making process on seeking product information pertaining to functionality or
characteristics, this type of consumer will purchase based on information gathered passively, via
the company’s promotional efforts, by it through the medium of television, radio or print
advertising. This behavioral type, as can be seen on Assael’s (1987) model, with low-level
involvement products. Differentiating this consumer type is the fact that they being the process
with beliefs already embedded in their mind, which they have learnt passively, rather than
actively.
Variety-seekers are the last behavioral type contained in Assael’s (1987) model. Their typical
buying situation is summarized by low-level involvement in a market that displays high levels of
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
31
product differentiation. Common to this type of consumer, is “brand switching”, in order to
satisfy their need for diversification.
In order to fully ascertain the effects that branding has on the consumer decision making process,
the Howard-Sheth Decision-making model by Howard and Sheth (1969) is used that explains not
only the process of consumer decision-making during purchasing activities, but one that
facilitates the understanding of pre and post purchasing activities as well.
The model’s core assumption lies in that the key to determining behavior exhibited by consumers
is to fully understand the consumer thought process. The Howard-Sheth model illustrates that
cognitive decision-making is the process in which consumers mentally process information that
influences his or her selection of brands.
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Impact on The Consumer Learning Process
At its most basic definition, one can define the consumer learning process as being a time period
in which a customer is heavily exposed to the branding process of a product or service. The
branding process can include any aspect of the promotional strategy, including audio/visual
forms of promotion. By learning from this information, whether it is a conscious process or not,
the consumer will develop strong feelings towards a brand. For marketers, branding has a vital
effect on the learning process, because it is self-growing. Once consumers start to purchase
product, others will vicariously learn from them. Vicarious learning is when consumers begin to
copy the behavioral patterns of their peers by making changes in their own lives to reflect what
they have “vicariously” learnt.
In searching for a more academic view on consumer learning, one can understand the process as
modifications to a consumer’s behavioral patterns that are the direct consequence of either past
experiences or information gathered during all aspects of the purchase decision-making process.
These modifications are caused by information that has essentially been saved as a set of
meaningful associations in the consumer’s mind. These above-mentioned associations provide
the consumer with link to the brand image of offerings in respects to the promotional tools used
to further this brand image. These tools include both physical characteristics of the product as
well as pricing policies. All the elements that are retained by the consumer stem from what they
have been exposed to during their individual learning process. This is ultimately, what will shape
their views and attitudes in regards to brands.
It has been found that the learning process discussed above acts as a catalyst in creating
emotional and evaluating responses. These responses are embedded in the consumer’s memory
span, which will be recalled when faced with a purchase decision-making process. Thus,
understanding the learning process is the key to marketers who seek to efficiently use
promotional methods to influence consumers, because the imprints they create in the mind of
consumer will later on be recalled when selecting a product or brand.
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Impact on Consumers’ Perception of Brands
One may refer to Foxall (1980), where Engel defines perception as “the process whereby stimuli
are received and interpreted by the individual and translated into a response”. At this point, it is
important to note that this process is unique to each individual, asperception is highly dependent
on a consumer’s individual beliefs structure.
Perception is crucial in the decision-making process. In a market where branding is used,
products are no longer only purchased for their functional characteristics, but primarily for the
social or in some cases, psychological identity they express.
Building on these concepts, One can elaborate on these concepts by outlining two determinants
that influence a consumer’s perception of brands. These two factors are stimulus discrimination
and stimulus generalization.
Whether a consumer has the ability to “discriminate” between the various methods used to
stimulate a consumer? When a customer is introduced to a brand, whether this is done via
advertising, packaging, word of mouth marketing or any other form of stimuli that affected them
during their decision-making process, their levels of awareness of the brand will gradually
increase via their ability to learn. Once their level of brand awareness has increased, their
purchase decision-making process will be influenced by their perception of the brand in question.
The perception of brands is crucial to both the marketer and the customer. If one considers that
frequency of purchases varies from consumer to consumer, one can understand that the influence
of perception is vital. By providing relevant information for the consumer market, marketers
enable the creation of symbolic links between the consumer and the brand image. Thus,
consumers will have the relevant tools needed to distinguish between the brands on offer and
therefore be persuaded in their selection. In the event that a consumer is a new user with no
product experience, he or she will not be able to make relevant decisions based on the actual
product. Thus, the brand image again, becomes vital in directing the consumer to a specific
product.
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In order to better understand the relevance of branding on the consumer purchase decision
making process, four key factors that are responsible for directing a potential consumer towards
a particular brand are referred.
Brands have a large impact on the perceived risks consumers associate with the consumer
purchase decision-making process. There to be six risks that are perceived by consumers during
all aspects of the decision-making process and further outlines how brands can appease the
consumer’s mind in regards to these perceived risks.
Perceived Quality In time, consumer will have faith in a brand’s integrity
via their perceived quality of the brand in question
Building Excellent Service When a company implements excellent after service
sales, this endorses the perceived quality of the brand
and facilitates activities in the pre and post purchase
moments of the decision-making process. As discussed
previously, this is key in the creation of loyal customers
Standing Out in the Consumer’s By striving to differentiate one’s brand from another,
companies hope to become embedded in the user’s
culture and mind. This is the most effective way to
insure consumers positively perceive the brand and
product. This eventually leads to extremes forms of
competitive advantage
Investing in Differential
Markets
When one seeks to establish a brand, it is essential to
select a market in which it is possible to create
differentiation. Otherwise, the concepts of branding will
not be possible.
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The first perceived risk a consumer might encounter is one of a functional nature. The consumer
might worry whether the product will meet his or her expectations. In the creation of a
trustworthy brand, marketers seek to raise the level of perceived quality in order to specifically
address this risk.
Consumer might also perceive a physical and/or psychological risk that might dissuade them
from continuing the purchasing decision-making process.
A fourth possible risk that might be perceived by the consumer is one of an economic nature.
Price sensitive consumers will question whether the product is in fact properly valued at the
quoted asking price. Again, marketers will strive to counter this by highlighting the perceived
value of a product in the branding process. If properly done, consumer can become price
insensitive by forming a strong bond to a brand and therefore isolating him or herself from
competitors.
Socially speaking, a fifth risk a consumer might perceived to be detrimental to the buying
process is whether his or her selection of a brand will cause embarrassment in a social setting,
amongst his or her peers. Marketers address this issue in the creation of the brand image. By
emulating current market trends and fashions, marketers strive to identify and differentiate their
products as being the selected choice of revered people.
.
Yet another economic risk consumer might consider, is the opportunity cost of seeking out
alternative products, and should the selected one fail to satisfy their needs and wants. Reflected
in a loyal consumer base, is a brands ability to deliver on the satisfaction guarantee. Thus, one
can understand that branding is the key in addressing this issue in the consumer’s mind.
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Impact on Consumers’ Attitudes Towards Brands
An attitude can be considered to be either positive or negative, depending on the outcome of
their learning and evaluating process.
The evaluation of consumer attitudes towards brands has quickly become a major part in
conducting marketing research. The development of positive attitudes
towards brands can lead to not only the sustaining of competitive advantage, but in the bettering
of the financial health of a company.
Branding has been found to be a key in formation of positive attitudes towards products,
especially those involving low-levels of consumer involvement. However it has been noted that
there are factors that might negate the effects of the formation of positive attitudes. One being
that the effects of positive attitudes can dissipate should the consumer not purchase the product
within a certain timeframe. Another factor that might negate the effects of positive attitudes
might be an overtly high pricing policy, which might have a contrary effect to the consumer’s
positive attitudes towards the brand and result in a non sale.
In considering attitudes towards brands, one must ponder whether these attitudes all remain at a
conscious level, or whether branding can instigate attitudes at a sub-conscious level. Sigmund
Freud’s theory that individuals are rarely aware of how their own psychology shapes their visual
behavioral patterns which suggests that at an unconscious level, consumer might have beliefs
that shape their attitudes towards products. By acknowledging Freud’s theories, one can
conclude that branding can be used to target sub-conscious desires that rest at a primal level.
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37
Various authors have given different definition of Positioning. Some are:-
Beckman, Kurtz, Boonee
“Product positioning refers to the consumer’s perception of a product’s attribute, use, quality &
advantages & disadvantages in relation to competing brands.”
Berkowitz, Kerlin, Rudelius
“Product positioning refers to the place an offering occupies in the consumer’s mind on
important attributes relative to competitive offerings.”
Usefulness of Positioning
As competition intensifies & brands proliferate, consumers tend to differentiate between brands
in their own way. Positioning is a conscious attempt on the part of the marketer to accentuate this
natural tendency & in the process, impart a distinct identity to his own brand to make it stand out
among the competitors. The basis on which this differentiation is achieved reflects consumer
preferences or attitudes. The marketer, through his diverse & coordinated actions, tries to
influence this process.
The concept of positioning is also important in various other aspects of the marketing strategy.
Once one is clear about the position one wants, the other marketing decisions like product
design, packaging, pricing, method of distribution, etc., become clearer.
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Brand Positioning
It should be remembered that positioning is more a reflection of a product and that it stifles the
rich meaning of the brand without taking into account all its potentialities.
Positioning applies to the process of emphasizing the brands distinctive and motivating attributes
in the light of competition.
It is based on the analysis of response to the following four questions.
POSITIONING
 Why?
 For whom?
 When?
 Against whom?
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Elements of Positioning
Evidence has shown that there are four distinct variables that affect the position of a given
product. These are:-
a) The product itself,
b) The company behind it,
c) The competition,
1. The Product: - How important the product is or what meaning it has for the consumer & how
he relates to it. The fact that a product involves better ingredients or processes is a matter of
indifference unless this knowledge offers distinct advantages to the consumer.
2. The Company: - A product comes from a company & every company has its ownhistory.
Generally, the stronger the companies profile the better the image of its products. For
instance, consumers may perceive a better the image of a product if it comes from a reputed
house like Tata’s.
3. The Competition: - Product positioning is invariably done in relation to various competitive
offerings. In most cases, the consumers have a tendency to judge a product in comparison to
the dominant brand, e.g., all photocopiers are compared with Modi Xerox, all PCs with HCL,
toothpastes with Colgate & so on. Leading brand enjoys some edge over others.
4.The Consumer: - It should be reiterated that positioning is essentially based on consumer
perception rather than factual evaluation. Hence, it becomes necessary to examine how the
consumer views at product. Here, it becomes necessary to examine how the consumer views a
product. Here, the consumer’s self-perception comes into play along with his cognitive &
connotative factors.
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CHAPTER-III
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Marketing research is the process of systematic design, collection of data, analysis and reporting
of data to specific marketing situation which an organization faces. It is an activity which is done
by organization for accomplishment of a particular objective. Through this activity an
organization find the specific reason of the problem which organization face.
Marketing research got a vital role in decision making process by making available right
information, at the right time, and to the right person who involves in decision making process.
Thus it is the basic tool of marketing mix elements, like product, place, price and promotion.
The research methodology is considered as a major part of the study that is being conducted. It
determines the strength, reliability and accuracy of the project. Methodology will be considered
as the methods used in research is selecting sample, sample size, data collection and various
tools for data analysis.
LOGICAL FLOW OF RESEARCH IS AS FOLLOWS
Identification of problem
Research objective
Sources of data
Data collection
Sample
Sample Size
Data interpretation
Data analysis
Finding and observation
Conclusion
Recommendation
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RESEARCH DESIGN
Research design can be thought of as the structure of research. It is the glue that holds all the
elements in a research project together. Research design is a vital part of the research study. It is
the logical and systematic planning and directing of piece of research. It is the master plan and
blue print of the entire study.
TYPES OF DATA: There are two types of data-
1. Primary data.
2. Secondary data.
Secondary Data If the data have been collected by an already available source of
information such as Newspapers, Television Commercials or any other institute that has
collected data for their purposes, then those will be secondary data to the researcher or
investigator. Moreover, the sources that give the secondary data might have collected the data for
the owner’s specific purposes. These data may not have been tailored according to the purpose of
the researcher. In fact, the secondary data have not been collected with the objective of fulfilling
the interest of the researcher but of the other data owners. Therefore, it is clear that these
secondary data for the researcher may be the primary data for the owner of the source of
information.
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It is very interesting to know that primary data can be converted into secondary data by
performing statistical operation on the primary data. In this particular case, primary data, which
had been collected by the researcher, have been altered so that he can use the amended data right
away for his intended purposes. In this manner, he is not using the original primary data, as they
were, but altered data. It is very clear, that the original primary data become secondary data for
the owner after operating the statistical methods. By using the secondary data, costs can be
eliminated. Apart from the information gathered by the media, the secondary data can also be
obtained from the information recorded in the interviews or surveys.
I HAVE COLLECTED SECONDARY DATA TO COMPLET MY RESEARCH
REPORT.
Secondary Data
 Articles in Newspapers, Magazines and Internet
 Study Reports from Internet
 Books
 Internet
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CHAPTER-IV
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Consumer Behavior is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Consumers take many forms, ranging from an eight-year-old child begging her mother for
Pokemon shoes to an executive in a large corporation deciding on a multimillion-dollar computer
system. The items that are consumed can include anything: Gucci handbags, a massage,
democracy, rap music, or hoopsterrebel Dennis Rodman. Needs and desires to be satisfied range
from hunger and thirst to love, status, or even spiritual fulfillment. Consumer behavior is the
study of the processes involved when individuals or groups select, purchase, use, or dispose of
products, services, ideas, or experiences to satisfy needs and desires.
 A consumer may purchase, use, and / or dispose of am product, but these functionsmay be
performed by different people. In addition, consumers may be thought of as role players who
need different products to help them play their various parts.
 Fashion terminology is often used by consumers in overlapping ways. A style of apparel is
defined by distinctive attributes that distinguish it from others in its category, such as different
types of skirts; a fashion is a style that has been accepted by many people; high fashion consists
of new, expensive styles offered by upper-end designer. A trend is a general direction that may
lead to a fashion. Merchandise classifications include designer, bridge, better, moderate, and
budget prices.
 Fashions tend to follow cycles. The two extremes of fashion adoption known as collective
selection. Perspectives on motivations for adopting new styles include psychological, economic,
and sociological models of fashion.
 Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to
our understanding of the dynamics of popular culture.
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 The Internet is transforming the way consumers interact with companies and with each other.
Online commerce allows us to locate obscure product from around the world, and consumption
communities provide forums for people to share opinions and product recommendations. The
benefits are accompanied by potential problems, including the loss of privacy.
 The field of consumer behavior is interdisciplinary; it is composed of researchers from many
different fields who share an interest in how people interact with the marketplace. These
disciples can be categorized by the degree to which their focus is micro (the individual
consumer) versus macro (the consumer as a member of a group or of the larger society).
 There are many perspectives on consumer behavior, but research orientations can roughly be
divided into two approaches. The positivist perspective emphasizes the objectivity of science and
the consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the
subjective meaning of the consumer’s individual experience and the idea that any behavior is
subject to multiple interpretations rather than to one single explanation.
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Current Customer Trends
Male Shopping Habits
 Men are creatures of habit and find comfort in what is familiar to them – less risk in purchases.
 Research shows that nearly 75 per cent of male shoppers buy clothing at the exact same stores
they went to three years back.
 Men are not as adventurous in fashion as women and changes to wardrobe are far less common.
 Male shoppers demand much more customer service.
 Men tend to stay with a brand or a style and stick with it for several years – less likely to change.
 Male consumer loyalty makes it harder for new businesses or brands to attract new customers.
 Retail stores must create some kind of compelling reason for the male shopper to switch.
 Male oriented activities like putting greens in the sports department, computer games, celebrity
endorsements, all help men try a new store.
Marketer’s and brand retailer’s need to capitalize on this consumer trend. It’s no longer just the
metrosexual or uber-sexual man. It’s the future consumer and the buyer. In the past men were
ignored as mere buyers for their female counterparts. But as the market evolves they will be the
biggest buyers for themselves. Brands need to focus on this consumer as he will be the next big
thing – The Man.
Teenage Power
 Teenage consumers influence the purchase patterns of many different age groups.
 They are the offspring of the baby boomers and represent over 14 per cent of the total
population.
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 Typical teenager’s room now includes a TV, a stereo, a DVD player, a computer and perhaps
even a microwave oven.
 Each room is a highly personalized environment that can be custom tailored and personalized as
a centre for entertainment.
 42 per cent of all Indian teenagers, 18 and over, have their own credit card and increasing –
another 14 per cent to have access to the credit cards.
Fashion brands need to pay more attention to this consumer segment as they are the future of the
marketplace. Increased income levels and exposure to television makes them the consumer with
the buying power, especially with the phenomenal growth in the BPO sector where dress codes
are essential and thus increasing the opportunities for brands to market themselves and sell to
this segment.
Buying Experiences
 Popularity of reality television speaks volumes about the heart beat of the consumer.
 Insecurity and a shyness and a new perspective about the outside world cause people to enjoy
vicarious adventures enacted by ordinary souls.
 Family values become more important.
 Historical movies that present plot lines about overcoming danger and winning against greater
odds connect us to our past.
 Women are being drawn to plots with warm and fuzzy endings – men to macho excitement.
 People are watching more newscasts and making a bigger effort to understand current events.
 Marketers and businesses alike need to focus on these consumer trends and make a detailed
outline as to how they need to innovate to cater to the masses and not just a niche crowd as that’s
where the major business lies and the brand image gets identity in the marketplace.
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Top Brands In India
 PROVOGUE
The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited.
Provogue stands for fashion and not pure apparel; this in itself makes it the leader instantly. Its
designs are cutting edge and radical, which epitomizes its mantra “Redefining Fashion”.
The Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of
seven (7) years; it has established a strong brand identity in the minds of the urban consumer.
The Company’s philosophy of ‘creating trends’ in fashion, an aggressive marketing strategy,
coupled with high profile promotional events and its distribution strategy of retailing through
selective stores and malls has resulted in Provogue being now positioned as a leading fashion
brand in India.
The Company acquired from Acme Global the entire business of export of textile; textile
machinery and textile related chemicals and operates these businesses as its division under the
name Acme Global.
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 LOUIS PHILIPPE
A division of Aditya Birla Fashion and Lifestyle is India’s largest and fastest growing branded
apparel companies and a premium lifestyle player in the retail sector. After consolidating its
market leadership with its own brands, it introduced premier international labels, enabling Indian
consumers to buy the most prestigious global fashionwear and accessories within the country.
The company’s brand portfolio includes product lines that range from affordable and mass-
market to luxurious, high-end style and cater to every age group, from children and youth to men
and women. Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van
Heusen, Allen Solly, Peter England — that personify style, attitude, luxury and comfort.
It also includes India's first fast-fashion youth brand, People; India’s largest fully integrated
fashion multi-brand outlet chain, Planet Fashion; India's largest premium international brand
retailer, The Collective and the British fashion icon, Hackett London's mono-brand retail in
India.
ABFRL has acquired exclusive online and offline rights to market the global brand – ‘Forever
21’ and its existing store network, in the fast-fashion segment in India.
To expand its international portfolio, ABFRL entered into exclusive partnerships with two of
UK’s most successful fashion brands, ‘Simon Carter’ and `Ted Baker’.
Madura Fashion & Lifestyle reaches its discerning customers through an exclusive network
comprising approx. 2,000+ stores (as on 31st December 2016), covering 3.05 million sq ft of
retail space, and is present in more than 3,800 premium multi-brand stores and 490+
departmental stores.
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 VANHEUEN
The History Of Phillips-Van Heusen (Pvh) Goes Back In Part To Dramin Jones, A Prussian
Immigrant Who Founded D. Jones & Sons, Which Had Become The Largest Shirt-Maker In The
United States By The 1880s. Separately, In 1881, Moses Phillips And His Wife Endel Began
Sewing Shirts By Hand And Selling Them From Pushcarts To Local Anthracite Coal-Miners In
Pottsville, Pennsylvania. This Grew Into A Shirt Business In New York City That Placed One Of
The First Ever Shirt Advertisements In The Saturday Evening Post. D. Jones & Sons Merged
With Phillips After Dramin Jones's Death In 1903. Later Isaac Phillips Met John Van Heusen,
Resulting Both In Their Most Popular Line Of Shirts (Van Heusen) And In The Subsequent
Renaming Of The Corporation To Phillips-Van Heusen In The 1950s.
The Phillips-Jones Corporation Received A Patent For A Self-Folding Collar In 1919; The
Corporation Released The Product To The Public In 1921 And It Became Successful. The First
Collar-Attached Shirt Was Introduced In 1929. The Bass Weejun Was Introduced In 1936.
Geoffrey Beene Shirts Were Launched In 1982. In 1987, Phillips-Van Heusen Acquired G.H.
Bass. In 1995, The Corporation Acquired The Izod Brand, Followed By The Arrow Brand In
2000, And The Calvin Klein Company In 2002.
After Acquiring Superba, Inc., In January 2007, Pvh Now Owns Necktie Licenses For Brands
Such As Arrow, Dkny, Tommy Hilfiger, Nautica, Perry Ellis, Ted Baker, Michael Kors, Joe
Joseph Abboud, Original Penguin And Jones New York The Corporation Began Making Men's
Clothing Under The Timberland Name In 2008, With Women's Clothing Following In 2009,
Under A Licensing Agreement.
On March 15, 2010, Phillips-Van Heusen Acquired Tommy Hilfiger For $3 Billion.[7]
In The Third Quarter Of 2010 Losses Made On The "Van Heusen" Brand Led To The Decision
To Pull It Out Of All European Trading Markets. As Of March 2011The Company Sells No
Products Under That Name In Europe. All European Staff Became Redundant As A Result.
In February 2013, Pvh Acquired Warnaco Group, Which Manufactured The Calvin Klein
Underwear, Jeans And Sportswear Lines Under License, Thus Consolidating Control Of The
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
52
Calvin Klein Brand. The Warnaco Acquisition Also Added The Warner's And Olga Intimate
Apparel Brands, As Well The Speedo Swimwear Brand (The Latter In North America Only).
In November 2013 Pvh Sold The G.H. Bass Brand And All Of Its Assets, Images And Licenses
To G-Iii Apparel Group.
Distribution
Pvh Provides Products To Many Popular Department Stores, Such As Sears, Jc Penney, Macy's,
Myer, David Jones, Kohl's, And Dillard's, Both Through Its Own Labels And Private Label
Agreements. Pvh Also Sells Its Products Directly To Customers Through About 700 Outlet
Stores Under The Brand Names Van Heusen, Tommy Hilfiger, And Calvin Klein.
The Calvin Klein Stores Sell The Full Range Of Products At Full Price, Differing From Existing
Outlet Stores. The Stores Are Be About 10,000 Square Feet (930 M2). Phillips-Van Heusen
Closed Its Geoffrey Beene Outlet Retail Division In 2008.Approximately 25 Percent Of The
Geoffrey Beene Outlet Stores Became Calvin Klein Stores, While The Remaining 75 Percent Of
Stores Closed Entirely. The Company Will Continue To License The Geoffrey Beene Brand
Name For Geoffrey Beene Brand Dress Shirts And Men's Sportswear Until At Least 2013, Pvh
Closed Its Izod Retail Division Due To An Increasing Competitive Environment Driven By
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53
More Premium Brands In The Outlet Retail Channel; This Did Not Affect Izod's Wholesale
Business To Department Stores And Online Retailers. The Izod Golf Line Is Now Available At
Select Van Heusen Stores.Van Heusen Has Redefined Corporate Attire Through Continuous
Product Innovation And Exclusive Collections.
 ALLEN SOLLY
Bringing the concept of ‘Friday Dressing’ to menswear in
India, Allen Solly is known as an understated yet upbeat work wear brand. Breaking away from
convetions, Allen Solly stomped all the rules when it came to corporate dressing. Ditching the
black, greys and whites, the brand aimed to add a pop of vibrant personality to formal wear with
its range of clothing for women and men. With work cultures getting more relaxed and ditching
norms, the new age workforce can now dress fashionably smart and express their individual style
with Allen Solly’s range of clothing. Termed as ‘work casuals’ the collection ranges from shirts,
T-shirts, chinos, trousers, jeans and jackets for men, while for women the plethora of styles range
from dresses, skirts, blouses, pants and tunics.
Allen Solly- Work Appropriate Casuals
Stylish yet sufficiently casual, you can browse and shop for an Allen Solly shirt online and pair
it up with dark washed jeans and loafers for a work-appropriate look that is also perfect for days
when you mix a little business with leisure. You can also explore the colourful range of Allen
Solly chinos to add a dash of colour to your work wear capsule. For new-age entrepreneurs who
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prefer to step out of the boardroom, you can buy an Allen Solly blazer and partner it with a
casual shirt, chinos and brogues for a smart yet effortlessly nonchalant look.
Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001
'Best Brand Award' in the readymade menswear apparel category.
 PETER ENGLEND
Peter England- India’s Largest Menswear Brand
Peter England has made a mark as the largest menswear brand in India. Known for its
standardized fits, superior quality, wide range and fashionable styles, the trusted mid-segment
brand comes with apparel offerings for young men entering the corporate world. The brand boots
confidence with their clothing that marks the “Beginning of Good Things”. The range includes
shirts, trousers, suits, blazers and accessories for everyday wear and special occasions. The
trendy and contemporary work wear formals are perfect for young professionals who want to
express their sartorial tastes. You can buy Peter England blazers and suits from
Peterengland.com to add a sharp statement to your 9 to 5 style.
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Peter England Elements- Relaxed Office Wear
The brand also offers relaxed office wear and casual wear through its sub brand Peter England
Elements. The casual wear line is slightly more eclectic with a stylish range of washed cotton
shirts, denims, cargoes, jackets, sweaters and accessories that you can shop for online on
Peterengland.com. Refresh your wardrobe and choose from smart yet casual Peter England
trousers that come with promise of style and comfort. Peter England also recently launched the
sub brand Peter England Party, which offers trendy club wear that is easy on the pocket yet high
on style.
Peter England Elite- Premium Formal Wear
Perfect for young managers who are making their mark, sub brand Peter England Elite comes
with a complete array of dapper formal shirts and trousers, sharp suits and blazers, and
accessories. Progressive and international, the clothing evokes understated elegance without
trying hard. Choose a timeless Peter England shirt for your big client meeting and pin it under a
classic suit for a smart look that always makes a sharp impression.
This mid-segment shirt has effectively penetrated the mini metros. It has won several awards,
including 'Shirt of the Year 2000' and 'India's most admired menswear brands 2001'.
 LEVI’S FASHION BRAND
Levi Strauss & Co. /ˌliːvaɪ ˈstraʊs/ is a privately owned American clothing company known
worldwide for its Levi's /ˌliːvaɪz/ brand of denim jeans. It was founded in May 1853 when Levi
Strauss came from Buttenheim, Bavaria, to San Francisco, California to open a west coast branch
of his brothers' New York dry goods business. The company's corporate headquarters is located
in the Levi's Plaza in San Francisco.
Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next
moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. Jacob Davis, a
Latvian Jewish immigrant, was a Reno, Nevada tailor who frequently purchased bolts of cloth
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
56
made from denim from Levi Strauss & Co.'s wholesale house. After one of Davis' customers
kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the
points of strain, such as on the pocket corners and at the base of the button fly. Davis did not
have the required money to purchase a patent, so he wrote to Strauss suggesting that they go into
business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men received
U.S. Patent 139,121 from the United States Patent and Trademark Office. The patented rivet
was later incorporated into the company's jean design and advertisements. Contrary to an
advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the
California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began
in the 1870s. The company created their first pair of Levis 501 Jeans in the 1890s.
In the list of top market players in the fashion industry, the most shining name is Levis fashion
brand. Levi Strauss & Co. (LS&CO) was named after its founder Levi Strauss in 1853. Since
then the journey of its success has been going on. It has cast its spell in more than 110 countries.
Levis as leading jeans brand has entered into the international parlance and flooding the market
with its designer apparels. Levis products are marketed under various brand names like Levis,
Dockers and Levi Strauss Signature.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
57
 ITC’S LIFESTYLE RETAILING
ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence
through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion
destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills
Clublife evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine
fragrances and bath & body care products for men and women. Wills Lifestyle has also
introduced Wills Signature – designer wear designed by the leading designers of the country.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
58
 UNITED COLORS OF BENETTON
The United Colors of Benetton (UCB) is changing hues in India. Flush with plans of capturing
80,000 sq ft of retail space across the country before the year ends, coupled with a stringent
fabrication and merchandising exercise, United Colors of Benetton is aiming to shore up volume
and value sales, while also presenting a larger-than-life facet of its retail look.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
59
CHAPTER-V
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
60
Readymade garment is really becoming big business. The domestic market too presents immense
opportunities with consumer spending on the rise and organized retailing growing. But should a
garment player go global or sell at home?
Some players such as Raymond and Zodiac Clothing have chosen to be aggressive in both
markets. Even as they plan to improve their retail presence over the next three years, both are
expanding their manufacturing facilities in Bangalore to cater to the expected rise in international
demand.
Interestingly, major export players such as Ambattur Clothing (Color Plus) and Acme Clothing
(Provogue) have, in the past, placed their bet on the domestic market.
These companies quickly managed to give bigger players a run for their money. But, as Color
Plus discovered, further growth could come only from a wider distribution network, which needs
deep pockets. Raymond stepped in and acquired the brand.
Operating in the domestic market poses an entirely different set of challenges from that of the
export market. It requires more than manufacturing expertise and a heightened fashion-
consciousness.
Established names, however, do not have it easy either. The entry of international brands such as
Tommy Hilfiger into the Indian market is likely to be followed by more players.
Competition is likely to hot up and keep domestic players on their toes. The retail landscape is
changing, and the traditional distribution strategy of apparel players is in for an overhaul.
Figuring out which price point to operate in is yet another challenge for an apparel maker.
Challenging, but interesting, times are ahead for the readymade garment industry.
Apparel retailers, with little retail expertise, had to build their own network, at considerable
expense. The rapid growth in recent years of various retail formats, such as departmental stores
and malls, has given a fillip to the industry.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
61
A boost to the industry would come from allowing foreign direct investment in retailing, which
would increase space considerably and also bring international practices to India. This may also
encourage newer entrants, once the distribution costs decline.
Private labels tend to do well during recessions. Retailers enjoy better margins on their own
labels, and are also able to price them lower.
Players such as Madura Garments, which have a presence in the segment through Allen Solly,
believe that once women try out private labels and get more accustomed to Western wear, they
are likely to upgrade to a more expensive brand.
But players may still find it tough to cater to this market. They would have to move towards a
low-margin, volume-driven business. This would also need a far larger distribution network than
what exists today.
Few retail formats in India operate on a truly large scale. Giants such as Wal-Mart and Carrefour,
which have the ability to drive volumes, are what the industry would need.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
62
1. Rural market. Knowing the huge size of rural population of India it is natural that the rural
market is attractive to marketers. Company should study purchasing power, life styles, buying
habits, optimal usage level. Brooke Bond for instance could capture the crux of the challenge
when they started marketing Re 1 tea packets.
2. Understanding role of children. Marketers should study the role of children in buying
decision – as influencers and decision makers. However, the challenge remain how does one
communicate with children? Advertising recalls being more in the case of children-one way is
clear but with every one trying to apply the same technique, marketers will be gradually
disillusioned with the method. Possible ways of circumventing this problem may be to market
the product through schools or to use the imitative tendencies of children by influencing their
peers.
3. Distribution. Distribution cost are an increasing component of marketing cost marketers will
have to find ways through which one can achieve efficient as well as economic distribution. One
solution is joint distribution or by adopting direct marketing.
4. Packaging. With self-shopping gaining grounds and shelf space getting limited, packaging
becomes an important factor that marketers have to be concern about. Companies should
identify the requirements and pack commodities according to demand.
5. Customer service challenge. In an increasingly competitive market, retention of a customer
is possible only through better service. Marketers will require devoting to more efforts to
understand the customer view of quality and convenience. Marketers should do regular
research to find this fact.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
63
6. Adaptation to newer environment. As government withdraw entry barriers and relax
restriction on merger or takeover many companies should install superior technology and
resort to merger – acquisition route to make their unit more efficient.
7. Creativity and innovation in overall marketing programmes. Marketers have to develop
organizational structure style and functioning, which enable them to act fast and bring in
innovations in their marketing programmes.
EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR
64
Books and Journals
 Kevin Lane Keller (2004), Strategic Brand Management, 2nd edition, Pearson Education, New
Delhi
 Consumer Behavior, 6th Edition, by Lean G.Sehiffman and Leslic lazan Kanuk.
 Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.
Websites
 www.google.com
 www.wikipedia.com
 www.levis.com
 www.peterengland.com
Magazines
 Brand Equity (Economic Times)

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Effect of branding on consumer buying behaviour

  • 1. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 1 I SHASHANK SRIVASTAV student of SCHOOL OF MANAGEMENT & SCIENCES, VARANASI of MBA IV semester, hereby, declare that the Research Project Report having the title. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR WITH THE REFERENCE TO FASHION INDUSTRY .There are several things, which are essential and important. It is outcome of my own work and the same has not been submitted to any universityCollegeInstitution for the award of my degree Date : SHASHANK SRIVASTAV Place :Varanasi Roll No.1510670090
  • 2. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 2 Management is a profession wherein no work can be accomplished without the help and assistance of a large number of people, be it your superiors or subordinates. A good manager is the one who knows how to get the work accomplished with the help of his colleagues. As future managers, we are taught to practice such behavior at every step. This project is also a part of it. My sincere thanks to Mr. PINAK NATH JHA Director of SMS Varanasi, Coordinator of MBA Course Mr. KARTIKEYA SINGH and in last but not least the Guide of the Project Dr. ANIL KUMAR GOPE, for initiating and guiding the project with attention and care. He has always been available for me to put me on track from time to time to bring the project at its present form. Date: SHASHANK SRIVASTAV Place:Varanasi Roll No. 1510670090
  • 3. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 3 Customers all over the world now prefer branded products. This study is aimed at analyzing the effect of brand on consumer buying behavior. Along with finding the effect of brand on consumer buying behavior the purpose of the study is to have an in depth knowledge of what actually is branding and consumer behavior. To study the relationship between brand and consumer behavior the following methodology is opted: Consumer Survey on the effect of brands on their buying behavior through questionnaire. The key results of the study are: The degree brand of consciousness goes ondecreasing in higher age groups; price & brand were the major attributes that customer’s gave most importance and 80% people believe that Brands in fashion industry have become a status symbol.
  • 4. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 4 Sr. No. Topic Page No. I. CHAPTER  Executive Summary  Introduction  Literature Review  Objective of the project  Limitation of the project 6 7 8 9 10 II. CHAPTER  Concept Of Branding  Introduction Of Consumer Behavioutr  Impact On Brand On Consumer  Behaviour  Positioning 13-22 23-29 30-37 38-39 III. CHAPTER  Research Methodology 41-43 IV. CHAPTER V. CHAPTER  Finding $ Analysis  Conclusion  Recommendation  Bibliography 45-58 60-61 62-63 64
  • 5. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 5 CHAPTER-I
  • 6. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 6 Brand is a Guarantee, an assurance for a defined standard of quality for the first time and for every time but not the vice versa. Brand is name or logo that plays the role in the mind of the customer. Brands do not compete in the product area but compete for the mind space of the customer. A brand once established in the mind of the customer becomes indelible when customer identifies itself with that particular Brand. Branding is an effective marketing strategy tool that has been used with frequent success in the past. Branding can be an effective and powerful tool for all types of business organizations. If brand owners use their product correctly, the payoffs can be substantial. However, if brands are mismanaged, the results can be damaging. This report is aimed to investigate the effect of brand on consumer buying behavior. How much consumers are prepared to pay for branded products, how important they consider price, brand or other factors during their purchasing decisions. The Report aimed at comprehensive literature review on branding, brand loyalty, brand awareness, brand equity and brand perceptions, price sensitivity and willingness to pay.
  • 7. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 7 Brand these days have become a status symbol. Customers all over the world now prefer branded products. But why is the question. Is it the quality that attracts customers towards brand or some other related factor? This study is aimed at analyzing the effect of brand on consumer buying behavior. Along with finding the effect of brand on consumer buying behavior the purpose of the study is to have an in depth knowledge of what actually is branding and consumer behavior. All the study has been conducted with reference to fashion industry in India. Firms in fashion industry are competing to increase their profit share in the market and among these firms; branded clothing & accessories has shifted the conventional style & interest of people. A brand which is sold at a high price and the other which is sold at low price while both have same quality and attributes, why is that? Brand studies always have remained the key attention of the marketer’s because of its importance and direct relationship with consumers. Marketers use brands as to get the competitive advantage on other competitors playing an imperative role in the success of companies. Brand holds a great importance in consumer’s life. Consumer’s choose brands and trust them the way they trust their friends and family members to avoid uncertainty and quality related issues. India has a successful growing economy and the Fashion industry of the country has advanced tremendously in the recent years. The increasing use of fashion goods and the emerging market has intrigued foreign as well as local brands to provide services to its customers.
  • 8. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 8 The concept “brand image” has drawn significant attention from academics and practitioners since it was put forward, because it played an important role in marketing activities. Although brand image was recognized as the driving force of brand asset and brand performance, few studies have elaborated on the relationship between brand image and brand equity. Based on the brand image theories, this study reviewed extant studies about the impact of brand image on consumer from perspective of customer equity. It also presented the shortcomings of current research and pointed out the trends for future study. The topic of consumer behaviour is one of the massively studied topics by the researchers and marketers in the past and still being studied. Researchers show different reasons as to why consumer behaviour has been the topic of many academics and researchers. One of the common views is that understanding consumer behaviour has become a factor that has a direct impact on the overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that understanding consumer behaviour has become crucial especially due to fierce competition in retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce some other areas of research background of consumer behaviour addressing the works of researchers and marketers. Moreover, consumer decision making process, in particular, five stages of consumer decision making process will be discussed in detail.
  • 9. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 9 Importance of understanding branding and its impact on modern day markets is vital to the health and growth of most industries. The aim of this report is to put into perspective the functional values of branding as well as assess its role in the consumer purchase decision-making process.  Understanding the concepts of branding and consumer behavior.  To study the effect of brands on consumer buying behavior in relation to Readymade garments.  To analyze the branding strategies adopted by some of the companies in the readymade garments to woo the consumers into buying their products.  To do a comparative study of the branding strategies adopted by the companies in the readymade garments.
  • 10. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 10  This project is limited due to time constraint as it involves a lot of complex variables which require a detailed study over a period of time.  The project did not cover the effect of branding on a very large scale. Only a small population was studied, which may not be enough to show correct picture.  The consumers were very reluctant to answer the question and the response may be biased.
  • 11. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 11 In order to fully answer this research question, the following objectives have been set: • Set a valid and sustainable research question in order to achieve a non-bias and accurate understanding on the topic in question; • Present the key concepts behind branding, its values and its usage in modern day marketing campaigns by reviewing current literature pertaining to the subject matter; • Determine whether a correlation between consumer identities and perceived brand identities is present; • Determine the impact of branding on the consumer purchase decision-making process 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.
  • 12. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 12 CHAPTER-II
  • 13. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 13 Branding more or less for centuries has been a mean to differentiate goods of one producer from that of another. Brand studies have always remained a key attention of marketers because of its importance and direct relationship with consumers. Several studies illustrate that, marketers use brands as the primary point of differentiation to get that competitive advantage on other competitors playing an imperative role in the success of the company. Brand holds a very significant place in the life of a consumer. Consumers choose brands and trust them to avoid uncertainty and quality related issues. Brand serves as a pivotal role for distinguishing goods and services from those of the competitors. Aaker (1991) and Murphy (1998).the emergence of brand equity underlies the importance of brand in marketing tactics and hence provides useful insights for managers and further research, Keller (2003). A brand can be an everlasting and lucrative asset as long as it is maintained in a good manner that can continue satisfying consumers’ needs,Batchelor(1998) andMurphy(1998). Although successful brands can be totally different in nature, they share something in common, for instances well-priced products and consistent quality,Murphy(1998). As mentioned by Levitt (1983), there are four elements for building a successful brand, namely tangible product, basic brand, augmented brand and potential brand. Tangible product refers to the commodity which meets the basic needs of the customers. Basic brand, on the other hand, considers the packaging of the tangible product so as to attract the attention from the potential customers. The brand can be further augmented with the provision of credibility, effective aftersales services and the like.
  • 14. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 14 Brand is a name in every customer mind Mooij (1998) and it is characterize by a noticeable name or symbol which can differentiate the goods and services from the rivals Aaker(1991) and Keller(1998).in addition to a specific brand name, a brand is composed of products, packaging, promotion, advertizing as well as its overall presentation, Murphy(1998). From the consumer’s perspective, brand is a guarantor of reliability and quality in consumer products. Roman et al (2005) added to this, consumers would like to buy and use brand-name products with a view to highlight their personality in different situational contexts, Aaker (1999) and Fennis and Pruyn (2006). Nowadays, consumers have a wide range of choice to choose from when they enter a shopping mall. It is found that consumers’ emotions are one of the major determinants which affects their buying behavior Berry (2000). According to a research conducted by Freerdie Media LLC(1998) on shopping habits, nearly one-fourth of the respondents are impulse –buy products they have not budgeted for. When deciding which products to purchase, consumers would have their preference, which are developed in accordance with their perceptions towards the brand. Successful branding could make consumers aware of the presence of the brand and hence could increase the chance of buying the company’s product and services,Doyle (1999).
  • 15. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 15 Branding in Today’s Markets A central function of branding is the facilitation of the consumer choice process. Due to the complexity of having to select a product amongst thousands of similar offerings, consumers will instinctively attempt to simplify their choice process by selecting brands that have satisfied them in the past. Thus, one can conclude that pleasant past experiences is highly conducive to consumers associating benefits to a brand. One can conclude that a central function of branding is its ability to negate the need for a consumer to seek out information when a need or a want has been recognized, but rather, lead him to a brand that has been satisfying in the past.. One must acknowledge however, that frequent purchasing of a brand cannot always be linked to previous experiences, but can alternatively be formed by embedded perceptions. A consumer might strongly favour a brand with no prior purchasing experience. This type of consumer behavior is based on stimulus provided by direct exposure to advertising campaigns, a company’s PR efforts or even a high concentration of local distribution in an area that is in close proximity to a consumer. In terms of companies’ views on branding, it can induce the natural differentiation of their offerings, which ultimately, will produce a state of competitive advantage. Differentiation can only allow for competitive advantage if the cost of differentiating is significantly lower than the revenue earned by the sales. Differential advantage allows companies to showcase their offer in respects to other competitors in the same marketplace.
  • 16. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 16 Brand Equity The term brand equity refers to a set of assets and liabilities associated with a brand, including its name and symbol, which could impose beneficial or detrimental effects on the values arising from the products or services Aaker (1991) and Yasin et al. (2007). Added to this, Keller (1998) points out that brand equity signifies the unique marketing effects imposed on the brand. Concerning the positive side of brand equity, it happens when consumers are willing to pay more for the same level of quality just because of the attractiveness of the name attached to the product Bello and Holbrook (1995). However, brand equity could be ruined if it is not properly managed. For instance, poor product quality and customer services could adversely affect the brand image, giving rise to a reduction in sales volume. One of the quintessential examples regarding brand as a kind of equity is the imposition of laws to protect intellectual property, Murphy (1998). In countries with well-established legal system, the values of brands have been recognized to both the consumers and producers. In order to combat piracy, many countries have set up laws to protect trademarks, patents, designs as well as copyright. In addition, brand is also a tradable product with measurable financial value, Murphy 1998). It is not uncommon to find some familiar brands listed on the stock markets in which they could be bought or sold. Brands like HSBC, Marks and Spencer, Vodafone, Sainsbury and Tesco are all listed on the FTSE 100 index (London Stock Exchange, 2007). It is found that the volatility of stock market could affect consumers’ purchasing mood, not to mention the growth or declines of retail sales Blackwell (2002).
  • 17. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 17 This is supported by the fact that brand equity depends on the number of people with regular purchase Aaker (1996).The above examples highlight the values of brand equity for both consumers and the firm. For the consumers, brand equity could provide them with information about the brand which influences their confidence during the purchasing process. There is a high propensity for consumers with good perceptions to buy from the same shop again than those with poor perceptions. Past purchasing experiences and familiarity with the brand could be attributable to the perceptions generated from the consumers, Aaker (1991). As for the firm, brand equity could also be a source for the firm to generate cash flow. For instance, the merger between adidas and Reebok in 2005 not only increased their market share so as to compete with Nike in the US sports apparel market.
  • 18. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 18 Brand Awareness. Brand awareness is one of major determinants of brand equity. It refers to the ability of a potential consumer to recall and recognize the brand, linking the brand with its corresponding product class,Aaker (1991). The level of brand awareness lies in a continuum, with brand recognition being the lowest level and the first named brand with unaided recall being the highest level. It is important for the potential consumers to be aware of a product so that it can become one of the purchasing choices. This is due to the fact that the product needs to enter the awareness set before it comes to the consideration set,Blackwell et al. (2001) and an increase in brand awareness is conducive toa higher chance of entering the later set Nedungadi, (1990). In this way,brands with higher level of awareness would be more likely to be purchased, Yasin et al. (2007). This could probably explain why consumers tend to buy a recognizable brand rather than an unfamiliar one,Hoyer (1990) and Macdonald and Sharp, (2000). Several factors can alter the level of brand awareness. In case of China, its geographical location and politics could affect the consumer brand awareness level seriously. According to research conducted by Delong et al. (2004), owing to geographical differences, Chinese consumers cannot distinguish US product brand names from the European ones.
  • 19. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 19 As mentioned by Keller (1998), brand awareness can be enhanced through repeat exposure to the brand. In order to achieve brand awareness, two tasks are to be accomplished, namely increasing brand name identity and associating it with the product class. Advertising and celebrity endorsement could be some useful tools for raising brand awareness. It is found that advertisement attitude is attributable to the influence on brand attitudes, affecting consumer’s intention to purchase, Mackenzie et al.(1986) and Tsai et al. (2007). In recent decades, there is an increasing number of advertising campaigns around the world. Consumers are hence well equipped with comparative elements to judge which product or service to purchase, Alvarez and Casielles (2005). Moreover, celebrity endorsement can give rise to source credibility and source attractiveness.
  • 20. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 20 Brand Loyalty. Brand loyalty is one of the core components of brand equity and also positively and directly affected brand equity,Atilgan et al. (2005). Under the influence of brand loyalty, consumers continue to buy the brand, regardless of the superior features, prices and convenience owned by its competitors Aaker(1991). The more loyal the consumers are towards the brand, the less vulnerable the customer base would be. Based on the practice that repeat buying is one of the indicators for brand loyalty, Keller (1998), however, challenges that such measure may not be totally accurate. This is due to the fact that some consumers make habitual purchase towards a particular brand just because of its prominence in stock and effective promotions. Keller (1993, 1998) further divides brand associations into three categories, namely attributes, benefits and attitudes. Attributes refer to the specific characteristics a product has. Attributes can be further categorized into product-related attributes as well as non-product related attributes. For product-related attributes, the overall features of the product or service are concerned. As for non-product related attributes, price information, packaging, user imagery as well as usage imagery are to be considered. Benefits are another category in brand associations. They can be classified into functional, experimental and symbolic. Function benefits signify the physical or basic advantages a brand may have. For experimental benefits, they are related to consumers’ emotional feelings. Symbolic benefits, on the other hand, refer to the signal effect that a brand may impose on the consumers. Signal effect is determined by the image of consumers and also the personality of the brand.
  • 21. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 21 Consumers are attracted by the signal when they purchase a product in a particular brand. Finally, attitudes are regarded as the consumers’ overall assessments towards a brand. They incorporate summary evaluations of information which represent how consumers feel in a long run, lying in a continuum from positive to negative,Gabbott and Hogg(1998). Different brands have different associations to their prospective customers. Such kind of associations can provide bases for them to make purchase decisions and even become loyal to the brand, Aaker (1991). Associations towards a brand can create value for the firm and so its customers in a number of ways. First of all, they help the customers to process or retrieve information, Keller (1998). Customers are sometimes forgetful and associations towards a brand serve as a brief summary for the customers to make their purchasing decision. Associations can also be used to trigger the customers to recall their past experiences, making the customers remember the brand by heart. Second, brand associations can differentiate one brand from another. It is about brand positioning that a well-positioned brand will find it hard to be attacked by its competitors due to its uniqueness. This can make the brand unbeatable but it is quite difficult to achieve since consumer taste changes quite rapidly. Third, brand associations may include some product attributes or consumer benefits which encourage the consumers to purchase the brand. Forth, some associations can engender positive feelings. For examples, adidas slogan ‘Impossible is nothing’, Madonna appearance in H&M’s collection advertisement can stimulate customers their positive feelings about the products. Once brand associations are constructed in a meaningful way, a vivid brand image is established. Brand image possibly affects how consumers perceive the brand and hence their purchasing behavior. There may be products on the market with similar quality and design. However, the specific brand image attached on a product may differentiate itself from the others.
  • 22. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 22 Perceived Quality Another important attribute to brand equity is perceived quality. It is defined as the customer’s perception of the overall quality or superiority of a product or service, Aaker (1991), Keller (1998) and Yasin, (2007). Since it is a kind of intangible, overall feeling towards a brand, itIs subjective in nature and hence the knowledge of actual detailed product specifications couldhave little correlation with the perceived quality. Perceived quality of a brand could help generate values by providing a pivotal reason-to-buy, differentiating the position of a brand, charging premium price, motivating channel members to perform well and also introducing.
  • 23. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 23 Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the field. Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product).
  • 24. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 24 Factors Affecting Consumer Buying Behavior Consumer buying behavior is influenced by the major three factors: 1. Social Factors 2. Psychological Factors 3. Personal Factors. 1. Social Factors Social factors refer to forces that other people exert and which affect consumers’ purchase behavior. These social factors can include culture and subculture, roles and family, social class and reference groups. Example: By taking into consideration Reference group, these can influence/ affect the consumer buying behavior. Reference group refers to a group with whom an individual identifies herself/ himself and the extent to which that person assumes many values, attitudes or behavior of group members. Reference groups can be family, school or college, work group, club membership, citizenship etc. Reference groups serve as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only socially acceptable consumer behavior but also socially unacceptable and even personal destructive behavior. For example, if fresher student joins a college / university, he/she will meet different people and form a group, in that group there can be behavior patterns of values, for example style of clothing, handsets which most of group member prefer or even destructive behavior such as excessive consumption of alcohol, use of harmful and addictive drugs etc. So, according to how an individual references him / her to that particular reference group, this will influence and change his/her buying behavior.
  • 25. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 25 2. Psychological Factors These are internal to an individual and generate forces within that influence her/his purchase behavior. The major forces include motives, perception, learning, attitude and personality. Example: Attitude is an enduring organization of motivational, emotional, perceptual and cognitive processes with respect to some aspect of our environment. Consumers form attitude towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buy Sony products due to this attitude towards the brand. 3. Personal Factors These include those aspects that are unique to a person and influence purchase behavior. These factors include demographic factors, lifestyle, and situational factors. Example: Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their time the importance of things in their surroundings and their beliefs on broad issues associated with life and living and themselves. This is influenced by demographic factors and personality. E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and profession, the buying behavior of people differs from one another.
  • 26. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 26 Consumer Buying Decision Process Consumer buying decision process is the processes undertaken by consumer in regard to a potential market transaction before, during and after the purchase of a product or service. Consumer decision making process generally involves five stages: A. Problem Recognition Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service. There are several situations that can cause problem recognition, these include:  Depletion of stock  Dissatisfaction with goods in stock  Environmental Changes  Change in Financial Situation  Marketer Initiated Activities It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to be repaired or buying a new piece. B. Information Search After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making.
  • 27. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 27 Sources of information include:  Personal sources  Commercial Sources  Public sources  Personal experience C. Alternatives Evaluation Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature.
  • 28. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 28 D. Purchase Action This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit. E. Post-Purchase Actions Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance level expectation and perceived performance relative to those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product. This can result to consumer experiencing post purchase dissatisfaction. If the consumer’s perceived performance level is below expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint behavior and spread negative word-of-mouth concerning that particular product.
  • 29. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 29 Branding’s Influence on ConsumerPurchasing Behavior The preceding section of this literature reviewed has sought to define the term branding and explain its functions and values as an instrumental marketing tool used in attaining differential and competitive advantage. The following section of this literature review will seek to enlighten the impact branding has on the consumer decision-making process. First however, one must gain clear insight into the definition of consumer buying behavior in order to understand the impact branding has on it. In defining “consumer buying behavior”, one may refer to Assael (1987) who distinguishes four types of consumer buying behaviors. He bases these four consumer types on the varying degrees of involvement and the degree of differentiation amongst the brands in question.
  • 30. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 30 Consumers who are described as displaying complex buying behavior will expand their beliefs regarding a particular product as a starting point. This stage will eventually lead them to develop positive attitudes regarding the product. These intermediary stages lead them to the final stage of their behavioral pattern, where they consciously make the choice of purchasing the product. Referring to the Assael’s model; one will notice this type of consumer engages in highly involved purchasing experiences being fully aware of the range of brands available and their levels of differentiation. Assael (1987) classifies consumer who exhibit Dissonance-reducing behavior as consumer who are highly involved in the purchasing experience, however see few differences between brands. For this reason, the consumer will seek information on the differentiation of the product offerings and will not be particularly price sensitive when seeking functionality. In the event that this consumer finds him or herself in a market that displays low levels of differentiation, the consumer might result to purchasing influenced by convenience. Like consumers who display complex buying behavior, consumers with dissonance-reducing behavior will seek to establish personal beliefs regarding the product. If fostered adequately, these beliefs with eventually transform into attitudes regarding the product offerings. These attitudes, if favourable, will lead to a thoughtful purchase. Assael (1987) considered consumes displaying habitual buying behavior as consumers who did not experience the same sequence as the previous two behavioral types. Instead of basing their decision-making process on seeking product information pertaining to functionality or characteristics, this type of consumer will purchase based on information gathered passively, via the company’s promotional efforts, by it through the medium of television, radio or print advertising. This behavioral type, as can be seen on Assael’s (1987) model, with low-level involvement products. Differentiating this consumer type is the fact that they being the process with beliefs already embedded in their mind, which they have learnt passively, rather than actively. Variety-seekers are the last behavioral type contained in Assael’s (1987) model. Their typical buying situation is summarized by low-level involvement in a market that displays high levels of
  • 31. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 31 product differentiation. Common to this type of consumer, is “brand switching”, in order to satisfy their need for diversification. In order to fully ascertain the effects that branding has on the consumer decision making process, the Howard-Sheth Decision-making model by Howard and Sheth (1969) is used that explains not only the process of consumer decision-making during purchasing activities, but one that facilitates the understanding of pre and post purchasing activities as well. The model’s core assumption lies in that the key to determining behavior exhibited by consumers is to fully understand the consumer thought process. The Howard-Sheth model illustrates that cognitive decision-making is the process in which consumers mentally process information that influences his or her selection of brands.
  • 32. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 32 Impact on The Consumer Learning Process At its most basic definition, one can define the consumer learning process as being a time period in which a customer is heavily exposed to the branding process of a product or service. The branding process can include any aspect of the promotional strategy, including audio/visual forms of promotion. By learning from this information, whether it is a conscious process or not, the consumer will develop strong feelings towards a brand. For marketers, branding has a vital effect on the learning process, because it is self-growing. Once consumers start to purchase product, others will vicariously learn from them. Vicarious learning is when consumers begin to copy the behavioral patterns of their peers by making changes in their own lives to reflect what they have “vicariously” learnt. In searching for a more academic view on consumer learning, one can understand the process as modifications to a consumer’s behavioral patterns that are the direct consequence of either past experiences or information gathered during all aspects of the purchase decision-making process. These modifications are caused by information that has essentially been saved as a set of meaningful associations in the consumer’s mind. These above-mentioned associations provide the consumer with link to the brand image of offerings in respects to the promotional tools used to further this brand image. These tools include both physical characteristics of the product as well as pricing policies. All the elements that are retained by the consumer stem from what they have been exposed to during their individual learning process. This is ultimately, what will shape their views and attitudes in regards to brands. It has been found that the learning process discussed above acts as a catalyst in creating emotional and evaluating responses. These responses are embedded in the consumer’s memory span, which will be recalled when faced with a purchase decision-making process. Thus, understanding the learning process is the key to marketers who seek to efficiently use promotional methods to influence consumers, because the imprints they create in the mind of consumer will later on be recalled when selecting a product or brand.
  • 33. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 33 Impact on Consumers’ Perception of Brands One may refer to Foxall (1980), where Engel defines perception as “the process whereby stimuli are received and interpreted by the individual and translated into a response”. At this point, it is important to note that this process is unique to each individual, asperception is highly dependent on a consumer’s individual beliefs structure. Perception is crucial in the decision-making process. In a market where branding is used, products are no longer only purchased for their functional characteristics, but primarily for the social or in some cases, psychological identity they express. Building on these concepts, One can elaborate on these concepts by outlining two determinants that influence a consumer’s perception of brands. These two factors are stimulus discrimination and stimulus generalization. Whether a consumer has the ability to “discriminate” between the various methods used to stimulate a consumer? When a customer is introduced to a brand, whether this is done via advertising, packaging, word of mouth marketing or any other form of stimuli that affected them during their decision-making process, their levels of awareness of the brand will gradually increase via their ability to learn. Once their level of brand awareness has increased, their purchase decision-making process will be influenced by their perception of the brand in question. The perception of brands is crucial to both the marketer and the customer. If one considers that frequency of purchases varies from consumer to consumer, one can understand that the influence of perception is vital. By providing relevant information for the consumer market, marketers enable the creation of symbolic links between the consumer and the brand image. Thus, consumers will have the relevant tools needed to distinguish between the brands on offer and therefore be persuaded in their selection. In the event that a consumer is a new user with no product experience, he or she will not be able to make relevant decisions based on the actual product. Thus, the brand image again, becomes vital in directing the consumer to a specific product.
  • 34. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 34 In order to better understand the relevance of branding on the consumer purchase decision making process, four key factors that are responsible for directing a potential consumer towards a particular brand are referred. Brands have a large impact on the perceived risks consumers associate with the consumer purchase decision-making process. There to be six risks that are perceived by consumers during all aspects of the decision-making process and further outlines how brands can appease the consumer’s mind in regards to these perceived risks. Perceived Quality In time, consumer will have faith in a brand’s integrity via their perceived quality of the brand in question Building Excellent Service When a company implements excellent after service sales, this endorses the perceived quality of the brand and facilitates activities in the pre and post purchase moments of the decision-making process. As discussed previously, this is key in the creation of loyal customers Standing Out in the Consumer’s By striving to differentiate one’s brand from another, companies hope to become embedded in the user’s culture and mind. This is the most effective way to insure consumers positively perceive the brand and product. This eventually leads to extremes forms of competitive advantage Investing in Differential Markets When one seeks to establish a brand, it is essential to select a market in which it is possible to create differentiation. Otherwise, the concepts of branding will not be possible.
  • 35. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 35 The first perceived risk a consumer might encounter is one of a functional nature. The consumer might worry whether the product will meet his or her expectations. In the creation of a trustworthy brand, marketers seek to raise the level of perceived quality in order to specifically address this risk. Consumer might also perceive a physical and/or psychological risk that might dissuade them from continuing the purchasing decision-making process. A fourth possible risk that might be perceived by the consumer is one of an economic nature. Price sensitive consumers will question whether the product is in fact properly valued at the quoted asking price. Again, marketers will strive to counter this by highlighting the perceived value of a product in the branding process. If properly done, consumer can become price insensitive by forming a strong bond to a brand and therefore isolating him or herself from competitors. Socially speaking, a fifth risk a consumer might perceived to be detrimental to the buying process is whether his or her selection of a brand will cause embarrassment in a social setting, amongst his or her peers. Marketers address this issue in the creation of the brand image. By emulating current market trends and fashions, marketers strive to identify and differentiate their products as being the selected choice of revered people. . Yet another economic risk consumer might consider, is the opportunity cost of seeking out alternative products, and should the selected one fail to satisfy their needs and wants. Reflected in a loyal consumer base, is a brands ability to deliver on the satisfaction guarantee. Thus, one can understand that branding is the key in addressing this issue in the consumer’s mind.
  • 36. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 36 Impact on Consumers’ Attitudes Towards Brands An attitude can be considered to be either positive or negative, depending on the outcome of their learning and evaluating process. The evaluation of consumer attitudes towards brands has quickly become a major part in conducting marketing research. The development of positive attitudes towards brands can lead to not only the sustaining of competitive advantage, but in the bettering of the financial health of a company. Branding has been found to be a key in formation of positive attitudes towards products, especially those involving low-levels of consumer involvement. However it has been noted that there are factors that might negate the effects of the formation of positive attitudes. One being that the effects of positive attitudes can dissipate should the consumer not purchase the product within a certain timeframe. Another factor that might negate the effects of positive attitudes might be an overtly high pricing policy, which might have a contrary effect to the consumer’s positive attitudes towards the brand and result in a non sale. In considering attitudes towards brands, one must ponder whether these attitudes all remain at a conscious level, or whether branding can instigate attitudes at a sub-conscious level. Sigmund Freud’s theory that individuals are rarely aware of how their own psychology shapes their visual behavioral patterns which suggests that at an unconscious level, consumer might have beliefs that shape their attitudes towards products. By acknowledging Freud’s theories, one can conclude that branding can be used to target sub-conscious desires that rest at a primal level.
  • 37. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 37 Various authors have given different definition of Positioning. Some are:- Beckman, Kurtz, Boonee “Product positioning refers to the consumer’s perception of a product’s attribute, use, quality & advantages & disadvantages in relation to competing brands.” Berkowitz, Kerlin, Rudelius “Product positioning refers to the place an offering occupies in the consumer’s mind on important attributes relative to competitive offerings.” Usefulness of Positioning As competition intensifies & brands proliferate, consumers tend to differentiate between brands in their own way. Positioning is a conscious attempt on the part of the marketer to accentuate this natural tendency & in the process, impart a distinct identity to his own brand to make it stand out among the competitors. The basis on which this differentiation is achieved reflects consumer preferences or attitudes. The marketer, through his diverse & coordinated actions, tries to influence this process. The concept of positioning is also important in various other aspects of the marketing strategy. Once one is clear about the position one wants, the other marketing decisions like product design, packaging, pricing, method of distribution, etc., become clearer.
  • 38. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 38 Brand Positioning It should be remembered that positioning is more a reflection of a product and that it stifles the rich meaning of the brand without taking into account all its potentialities. Positioning applies to the process of emphasizing the brands distinctive and motivating attributes in the light of competition. It is based on the analysis of response to the following four questions. POSITIONING  Why?  For whom?  When?  Against whom?
  • 39. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 39 Elements of Positioning Evidence has shown that there are four distinct variables that affect the position of a given product. These are:- a) The product itself, b) The company behind it, c) The competition, 1. The Product: - How important the product is or what meaning it has for the consumer & how he relates to it. The fact that a product involves better ingredients or processes is a matter of indifference unless this knowledge offers distinct advantages to the consumer. 2. The Company: - A product comes from a company & every company has its ownhistory. Generally, the stronger the companies profile the better the image of its products. For instance, consumers may perceive a better the image of a product if it comes from a reputed house like Tata’s. 3. The Competition: - Product positioning is invariably done in relation to various competitive offerings. In most cases, the consumers have a tendency to judge a product in comparison to the dominant brand, e.g., all photocopiers are compared with Modi Xerox, all PCs with HCL, toothpastes with Colgate & so on. Leading brand enjoys some edge over others. 4.The Consumer: - It should be reiterated that positioning is essentially based on consumer perception rather than factual evaluation. Hence, it becomes necessary to examine how the consumer views at product. Here, it becomes necessary to examine how the consumer views a product. Here, the consumer’s self-perception comes into play along with his cognitive & connotative factors.
  • 40. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 40 CHAPTER-III
  • 41. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 41 Marketing research is the process of systematic design, collection of data, analysis and reporting of data to specific marketing situation which an organization faces. It is an activity which is done by organization for accomplishment of a particular objective. Through this activity an organization find the specific reason of the problem which organization face. Marketing research got a vital role in decision making process by making available right information, at the right time, and to the right person who involves in decision making process. Thus it is the basic tool of marketing mix elements, like product, place, price and promotion. The research methodology is considered as a major part of the study that is being conducted. It determines the strength, reliability and accuracy of the project. Methodology will be considered as the methods used in research is selecting sample, sample size, data collection and various tools for data analysis. LOGICAL FLOW OF RESEARCH IS AS FOLLOWS Identification of problem Research objective Sources of data Data collection Sample Sample Size Data interpretation Data analysis Finding and observation Conclusion Recommendation
  • 42. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 42 RESEARCH DESIGN Research design can be thought of as the structure of research. It is the glue that holds all the elements in a research project together. Research design is a vital part of the research study. It is the logical and systematic planning and directing of piece of research. It is the master plan and blue print of the entire study. TYPES OF DATA: There are two types of data- 1. Primary data. 2. Secondary data. Secondary Data If the data have been collected by an already available source of information such as Newspapers, Television Commercials or any other institute that has collected data for their purposes, then those will be secondary data to the researcher or investigator. Moreover, the sources that give the secondary data might have collected the data for the owner’s specific purposes. These data may not have been tailored according to the purpose of the researcher. In fact, the secondary data have not been collected with the objective of fulfilling the interest of the researcher but of the other data owners. Therefore, it is clear that these secondary data for the researcher may be the primary data for the owner of the source of information.
  • 43. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 43 It is very interesting to know that primary data can be converted into secondary data by performing statistical operation on the primary data. In this particular case, primary data, which had been collected by the researcher, have been altered so that he can use the amended data right away for his intended purposes. In this manner, he is not using the original primary data, as they were, but altered data. It is very clear, that the original primary data become secondary data for the owner after operating the statistical methods. By using the secondary data, costs can be eliminated. Apart from the information gathered by the media, the secondary data can also be obtained from the information recorded in the interviews or surveys. I HAVE COLLECTED SECONDARY DATA TO COMPLET MY RESEARCH REPORT. Secondary Data  Articles in Newspapers, Magazines and Internet  Study Reports from Internet  Books  Internet
  • 44. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 44 CHAPTER-IV
  • 45. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 45 Consumer Behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumers take many forms, ranging from an eight-year-old child begging her mother for Pokemon shoes to an executive in a large corporation deciding on a multimillion-dollar computer system. The items that are consumed can include anything: Gucci handbags, a massage, democracy, rap music, or hoopsterrebel Dennis Rodman. Needs and desires to be satisfied range from hunger and thirst to love, status, or even spiritual fulfillment. Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.  A consumer may purchase, use, and / or dispose of am product, but these functionsmay be performed by different people. In addition, consumers may be thought of as role players who need different products to help them play their various parts.  Fashion terminology is often used by consumers in overlapping ways. A style of apparel is defined by distinctive attributes that distinguish it from others in its category, such as different types of skirts; a fashion is a style that has been accepted by many people; high fashion consists of new, expensive styles offered by upper-end designer. A trend is a general direction that may lead to a fashion. Merchandise classifications include designer, bridge, better, moderate, and budget prices.  Fashions tend to follow cycles. The two extremes of fashion adoption known as collective selection. Perspectives on motivations for adopting new styles include psychological, economic, and sociological models of fashion.  Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our understanding of the dynamics of popular culture.
  • 46. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 46  The Internet is transforming the way consumers interact with companies and with each other. Online commerce allows us to locate obscure product from around the world, and consumption communities provide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of privacy.  The field of consumer behavior is interdisciplinary; it is composed of researchers from many different fields who share an interest in how people interact with the marketplace. These disciples can be categorized by the degree to which their focus is micro (the individual consumer) versus macro (the consumer as a member of a group or of the larger society).  There are many perspectives on consumer behavior, but research orientations can roughly be divided into two approaches. The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the subjective meaning of the consumer’s individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation.
  • 47. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 47 Current Customer Trends Male Shopping Habits  Men are creatures of habit and find comfort in what is familiar to them – less risk in purchases.  Research shows that nearly 75 per cent of male shoppers buy clothing at the exact same stores they went to three years back.  Men are not as adventurous in fashion as women and changes to wardrobe are far less common.  Male shoppers demand much more customer service.  Men tend to stay with a brand or a style and stick with it for several years – less likely to change.  Male consumer loyalty makes it harder for new businesses or brands to attract new customers.  Retail stores must create some kind of compelling reason for the male shopper to switch.  Male oriented activities like putting greens in the sports department, computer games, celebrity endorsements, all help men try a new store. Marketer’s and brand retailer’s need to capitalize on this consumer trend. It’s no longer just the metrosexual or uber-sexual man. It’s the future consumer and the buyer. In the past men were ignored as mere buyers for their female counterparts. But as the market evolves they will be the biggest buyers for themselves. Brands need to focus on this consumer as he will be the next big thing – The Man. Teenage Power  Teenage consumers influence the purchase patterns of many different age groups.  They are the offspring of the baby boomers and represent over 14 per cent of the total population.
  • 48. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 48  Typical teenager’s room now includes a TV, a stereo, a DVD player, a computer and perhaps even a microwave oven.  Each room is a highly personalized environment that can be custom tailored and personalized as a centre for entertainment.  42 per cent of all Indian teenagers, 18 and over, have their own credit card and increasing – another 14 per cent to have access to the credit cards. Fashion brands need to pay more attention to this consumer segment as they are the future of the marketplace. Increased income levels and exposure to television makes them the consumer with the buying power, especially with the phenomenal growth in the BPO sector where dress codes are essential and thus increasing the opportunities for brands to market themselves and sell to this segment. Buying Experiences  Popularity of reality television speaks volumes about the heart beat of the consumer.  Insecurity and a shyness and a new perspective about the outside world cause people to enjoy vicarious adventures enacted by ordinary souls.  Family values become more important.  Historical movies that present plot lines about overcoming danger and winning against greater odds connect us to our past.  Women are being drawn to plots with warm and fuzzy endings – men to macho excitement.  People are watching more newscasts and making a bigger effort to understand current events.  Marketers and businesses alike need to focus on these consumer trends and make a detailed outline as to how they need to innovate to cater to the masses and not just a niche crowd as that’s where the major business lies and the brand image gets identity in the marketplace.
  • 49. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 49 Top Brands In India  PROVOGUE The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited. Provogue stands for fashion and not pure apparel; this in itself makes it the leader instantly. Its designs are cutting edge and radical, which epitomizes its mantra “Redefining Fashion”. The Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of seven (7) years; it has established a strong brand identity in the minds of the urban consumer. The Company’s philosophy of ‘creating trends’ in fashion, an aggressive marketing strategy, coupled with high profile promotional events and its distribution strategy of retailing through selective stores and malls has resulted in Provogue being now positioned as a leading fashion brand in India. The Company acquired from Acme Global the entire business of export of textile; textile machinery and textile related chemicals and operates these businesses as its division under the name Acme Global.
  • 50. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 50  LOUIS PHILIPPE A division of Aditya Birla Fashion and Lifestyle is India’s largest and fastest growing branded apparel companies and a premium lifestyle player in the retail sector. After consolidating its market leadership with its own brands, it introduced premier international labels, enabling Indian consumers to buy the most prestigious global fashionwear and accessories within the country. The company’s brand portfolio includes product lines that range from affordable and mass- market to luxurious, high-end style and cater to every age group, from children and youth to men and women. Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England — that personify style, attitude, luxury and comfort. It also includes India's first fast-fashion youth brand, People; India’s largest fully integrated fashion multi-brand outlet chain, Planet Fashion; India's largest premium international brand retailer, The Collective and the British fashion icon, Hackett London's mono-brand retail in India. ABFRL has acquired exclusive online and offline rights to market the global brand – ‘Forever 21’ and its existing store network, in the fast-fashion segment in India. To expand its international portfolio, ABFRL entered into exclusive partnerships with two of UK’s most successful fashion brands, ‘Simon Carter’ and `Ted Baker’. Madura Fashion & Lifestyle reaches its discerning customers through an exclusive network comprising approx. 2,000+ stores (as on 31st December 2016), covering 3.05 million sq ft of retail space, and is present in more than 3,800 premium multi-brand stores and 490+ departmental stores.
  • 51. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 51  VANHEUEN The History Of Phillips-Van Heusen (Pvh) Goes Back In Part To Dramin Jones, A Prussian Immigrant Who Founded D. Jones & Sons, Which Had Become The Largest Shirt-Maker In The United States By The 1880s. Separately, In 1881, Moses Phillips And His Wife Endel Began Sewing Shirts By Hand And Selling Them From Pushcarts To Local Anthracite Coal-Miners In Pottsville, Pennsylvania. This Grew Into A Shirt Business In New York City That Placed One Of The First Ever Shirt Advertisements In The Saturday Evening Post. D. Jones & Sons Merged With Phillips After Dramin Jones's Death In 1903. Later Isaac Phillips Met John Van Heusen, Resulting Both In Their Most Popular Line Of Shirts (Van Heusen) And In The Subsequent Renaming Of The Corporation To Phillips-Van Heusen In The 1950s. The Phillips-Jones Corporation Received A Patent For A Self-Folding Collar In 1919; The Corporation Released The Product To The Public In 1921 And It Became Successful. The First Collar-Attached Shirt Was Introduced In 1929. The Bass Weejun Was Introduced In 1936. Geoffrey Beene Shirts Were Launched In 1982. In 1987, Phillips-Van Heusen Acquired G.H. Bass. In 1995, The Corporation Acquired The Izod Brand, Followed By The Arrow Brand In 2000, And The Calvin Klein Company In 2002. After Acquiring Superba, Inc., In January 2007, Pvh Now Owns Necktie Licenses For Brands Such As Arrow, Dkny, Tommy Hilfiger, Nautica, Perry Ellis, Ted Baker, Michael Kors, Joe Joseph Abboud, Original Penguin And Jones New York The Corporation Began Making Men's Clothing Under The Timberland Name In 2008, With Women's Clothing Following In 2009, Under A Licensing Agreement. On March 15, 2010, Phillips-Van Heusen Acquired Tommy Hilfiger For $3 Billion.[7] In The Third Quarter Of 2010 Losses Made On The "Van Heusen" Brand Led To The Decision To Pull It Out Of All European Trading Markets. As Of March 2011The Company Sells No Products Under That Name In Europe. All European Staff Became Redundant As A Result. In February 2013, Pvh Acquired Warnaco Group, Which Manufactured The Calvin Klein Underwear, Jeans And Sportswear Lines Under License, Thus Consolidating Control Of The
  • 52. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 52 Calvin Klein Brand. The Warnaco Acquisition Also Added The Warner's And Olga Intimate Apparel Brands, As Well The Speedo Swimwear Brand (The Latter In North America Only). In November 2013 Pvh Sold The G.H. Bass Brand And All Of Its Assets, Images And Licenses To G-Iii Apparel Group. Distribution Pvh Provides Products To Many Popular Department Stores, Such As Sears, Jc Penney, Macy's, Myer, David Jones, Kohl's, And Dillard's, Both Through Its Own Labels And Private Label Agreements. Pvh Also Sells Its Products Directly To Customers Through About 700 Outlet Stores Under The Brand Names Van Heusen, Tommy Hilfiger, And Calvin Klein. The Calvin Klein Stores Sell The Full Range Of Products At Full Price, Differing From Existing Outlet Stores. The Stores Are Be About 10,000 Square Feet (930 M2). Phillips-Van Heusen Closed Its Geoffrey Beene Outlet Retail Division In 2008.Approximately 25 Percent Of The Geoffrey Beene Outlet Stores Became Calvin Klein Stores, While The Remaining 75 Percent Of Stores Closed Entirely. The Company Will Continue To License The Geoffrey Beene Brand Name For Geoffrey Beene Brand Dress Shirts And Men's Sportswear Until At Least 2013, Pvh Closed Its Izod Retail Division Due To An Increasing Competitive Environment Driven By
  • 53. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 53 More Premium Brands In The Outlet Retail Channel; This Did Not Affect Izod's Wholesale Business To Department Stores And Online Retailers. The Izod Golf Line Is Now Available At Select Van Heusen Stores.Van Heusen Has Redefined Corporate Attire Through Continuous Product Innovation And Exclusive Collections.  ALLEN SOLLY Bringing the concept of ‘Friday Dressing’ to menswear in India, Allen Solly is known as an understated yet upbeat work wear brand. Breaking away from convetions, Allen Solly stomped all the rules when it came to corporate dressing. Ditching the black, greys and whites, the brand aimed to add a pop of vibrant personality to formal wear with its range of clothing for women and men. With work cultures getting more relaxed and ditching norms, the new age workforce can now dress fashionably smart and express their individual style with Allen Solly’s range of clothing. Termed as ‘work casuals’ the collection ranges from shirts, T-shirts, chinos, trousers, jeans and jackets for men, while for women the plethora of styles range from dresses, skirts, blouses, pants and tunics. Allen Solly- Work Appropriate Casuals Stylish yet sufficiently casual, you can browse and shop for an Allen Solly shirt online and pair it up with dark washed jeans and loafers for a work-appropriate look that is also perfect for days when you mix a little business with leisure. You can also explore the colourful range of Allen Solly chinos to add a dash of colour to your work wear capsule. For new-age entrepreneurs who
  • 54. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 54 prefer to step out of the boardroom, you can buy an Allen Solly blazer and partner it with a casual shirt, chinos and brogues for a smart yet effortlessly nonchalant look. Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001 'Best Brand Award' in the readymade menswear apparel category.  PETER ENGLEND Peter England- India’s Largest Menswear Brand Peter England has made a mark as the largest menswear brand in India. Known for its standardized fits, superior quality, wide range and fashionable styles, the trusted mid-segment brand comes with apparel offerings for young men entering the corporate world. The brand boots confidence with their clothing that marks the “Beginning of Good Things”. The range includes shirts, trousers, suits, blazers and accessories for everyday wear and special occasions. The trendy and contemporary work wear formals are perfect for young professionals who want to express their sartorial tastes. You can buy Peter England blazers and suits from Peterengland.com to add a sharp statement to your 9 to 5 style.
  • 55. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 55 Peter England Elements- Relaxed Office Wear The brand also offers relaxed office wear and casual wear through its sub brand Peter England Elements. The casual wear line is slightly more eclectic with a stylish range of washed cotton shirts, denims, cargoes, jackets, sweaters and accessories that you can shop for online on Peterengland.com. Refresh your wardrobe and choose from smart yet casual Peter England trousers that come with promise of style and comfort. Peter England also recently launched the sub brand Peter England Party, which offers trendy club wear that is easy on the pocket yet high on style. Peter England Elite- Premium Formal Wear Perfect for young managers who are making their mark, sub brand Peter England Elite comes with a complete array of dapper formal shirts and trousers, sharp suits and blazers, and accessories. Progressive and international, the clothing evokes understated elegance without trying hard. Choose a timeless Peter England shirt for your big client meeting and pin it under a classic suit for a smart look that always makes a sharp impression. This mid-segment shirt has effectively penetrated the mini metros. It has won several awards, including 'Shirt of the Year 2000' and 'India's most admired menswear brands 2001'.  LEVI’S FASHION BRAND Levi Strauss & Co. /ˌliːvaɪ ˈstraʊs/ is a privately owned American clothing company known worldwide for its Levi's /ˌliːvaɪz/ brand of denim jeans. It was founded in May 1853 when Levi Strauss came from Buttenheim, Bavaria, to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. The company's corporate headquarters is located in the Levi's Plaza in San Francisco. Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. Jacob Davis, a Latvian Jewish immigrant, was a Reno, Nevada tailor who frequently purchased bolts of cloth
  • 56. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 56 made from denim from Levi Strauss & Co.'s wholesale house. After one of Davis' customers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required money to purchase a patent, so he wrote to Strauss suggesting that they go into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men received U.S. Patent 139,121 from the United States Patent and Trademark Office. The patented rivet was later incorporated into the company's jean design and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began in the 1870s. The company created their first pair of Levis 501 Jeans in the 1890s. In the list of top market players in the fashion industry, the most shining name is Levis fashion brand. Levi Strauss & Co. (LS&CO) was named after its founder Levi Strauss in 1853. Since then the journey of its success has been going on. It has cast its spell in more than 110 countries. Levis as leading jeans brand has entered into the international parlance and flooding the market with its designer apparels. Levis products are marketed under various brand names like Levis, Dockers and Levi Strauss Signature.
  • 57. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 57  ITC’S LIFESTYLE RETAILING ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products for men and women. Wills Lifestyle has also introduced Wills Signature – designer wear designed by the leading designers of the country.
  • 58. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 58  UNITED COLORS OF BENETTON The United Colors of Benetton (UCB) is changing hues in India. Flush with plans of capturing 80,000 sq ft of retail space across the country before the year ends, coupled with a stringent fabrication and merchandising exercise, United Colors of Benetton is aiming to shore up volume and value sales, while also presenting a larger-than-life facet of its retail look.
  • 59. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 59 CHAPTER-V
  • 60. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 60 Readymade garment is really becoming big business. The domestic market too presents immense opportunities with consumer spending on the rise and organized retailing growing. But should a garment player go global or sell at home? Some players such as Raymond and Zodiac Clothing have chosen to be aggressive in both markets. Even as they plan to improve their retail presence over the next three years, both are expanding their manufacturing facilities in Bangalore to cater to the expected rise in international demand. Interestingly, major export players such as Ambattur Clothing (Color Plus) and Acme Clothing (Provogue) have, in the past, placed their bet on the domestic market. These companies quickly managed to give bigger players a run for their money. But, as Color Plus discovered, further growth could come only from a wider distribution network, which needs deep pockets. Raymond stepped in and acquired the brand. Operating in the domestic market poses an entirely different set of challenges from that of the export market. It requires more than manufacturing expertise and a heightened fashion- consciousness. Established names, however, do not have it easy either. The entry of international brands such as Tommy Hilfiger into the Indian market is likely to be followed by more players. Competition is likely to hot up and keep domestic players on their toes. The retail landscape is changing, and the traditional distribution strategy of apparel players is in for an overhaul. Figuring out which price point to operate in is yet another challenge for an apparel maker. Challenging, but interesting, times are ahead for the readymade garment industry. Apparel retailers, with little retail expertise, had to build their own network, at considerable expense. The rapid growth in recent years of various retail formats, such as departmental stores and malls, has given a fillip to the industry.
  • 61. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 61 A boost to the industry would come from allowing foreign direct investment in retailing, which would increase space considerably and also bring international practices to India. This may also encourage newer entrants, once the distribution costs decline. Private labels tend to do well during recessions. Retailers enjoy better margins on their own labels, and are also able to price them lower. Players such as Madura Garments, which have a presence in the segment through Allen Solly, believe that once women try out private labels and get more accustomed to Western wear, they are likely to upgrade to a more expensive brand. But players may still find it tough to cater to this market. They would have to move towards a low-margin, volume-driven business. This would also need a far larger distribution network than what exists today. Few retail formats in India operate on a truly large scale. Giants such as Wal-Mart and Carrefour, which have the ability to drive volumes, are what the industry would need.
  • 62. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 62 1. Rural market. Knowing the huge size of rural population of India it is natural that the rural market is attractive to marketers. Company should study purchasing power, life styles, buying habits, optimal usage level. Brooke Bond for instance could capture the crux of the challenge when they started marketing Re 1 tea packets. 2. Understanding role of children. Marketers should study the role of children in buying decision – as influencers and decision makers. However, the challenge remain how does one communicate with children? Advertising recalls being more in the case of children-one way is clear but with every one trying to apply the same technique, marketers will be gradually disillusioned with the method. Possible ways of circumventing this problem may be to market the product through schools or to use the imitative tendencies of children by influencing their peers. 3. Distribution. Distribution cost are an increasing component of marketing cost marketers will have to find ways through which one can achieve efficient as well as economic distribution. One solution is joint distribution or by adopting direct marketing. 4. Packaging. With self-shopping gaining grounds and shelf space getting limited, packaging becomes an important factor that marketers have to be concern about. Companies should identify the requirements and pack commodities according to demand. 5. Customer service challenge. In an increasingly competitive market, retention of a customer is possible only through better service. Marketers will require devoting to more efforts to understand the customer view of quality and convenience. Marketers should do regular research to find this fact.
  • 63. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 63 6. Adaptation to newer environment. As government withdraw entry barriers and relax restriction on merger or takeover many companies should install superior technology and resort to merger – acquisition route to make their unit more efficient. 7. Creativity and innovation in overall marketing programmes. Marketers have to develop organizational structure style and functioning, which enable them to act fast and bring in innovations in their marketing programmes.
  • 64. EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR 64 Books and Journals  Kevin Lane Keller (2004), Strategic Brand Management, 2nd edition, Pearson Education, New Delhi  Consumer Behavior, 6th Edition, by Lean G.Sehiffman and Leslic lazan Kanuk.  Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney. Websites  www.google.com  www.wikipedia.com  www.levis.com  www.peterengland.com Magazines  Brand Equity (Economic Times)