Shanlax

International Journal of Management

Impact of Branding on Consumer

Behaviour
Thangamani
Associate Professor, Department of Economics
National Defence Academy, Pune, India
OPEN ACCESS
Abstract
Liberalization, globalization and privatization policies have not only improved the global position
Volume: 6 of the Indian economy but also affected the demographic trends, lifestyle and culture of the people
by the various brands and its performance. The main objective of the study is to analyse the
impact of branding on consumer behavior and its effect on the domestic industry. Brand holds
Issue: 3
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. Fashion
Month: January industry of the country has advanced tremendously in the recent years. The increasing use of
fashion goods and the emerging market has attracted foreign as well as local brands to provide
services to its customers. All data and result based on literature is collected from mainly books,
Year: 2019 journal, articles, and online material.
Key words: brand, consumer behavior, domestic industry.
ISSN: 2321-4643

Received: 27.01.2019 Introduction

Liberalization, globalization and privatization policies have not only
Accepted: 29.01.2019 improved the global position of the Indian economy but also affected the
demographic trends, lifestyle and culture of the people by the various brands
Published: 31.01.2019 and its performance. A brand item holds a great importance in consumer’s
life. Consumer’s choose brands and trust them the way they trust their friends
Citation:
and family members to avoid uncertainty and quality related issues. Fashion
Thangamani. “Impact of
Branding on Consumer industry of the country has advanced tremendously in the recent years. The
Behaviour.” Shanlax increasing use of fashion goods and the emerging market has attracted foreign
International Journal of as well as local brands to provide services to its customers.
Management, vol. 6, no. 3, Consumer is the cause & purpose of all production and marketing activities.
2019, pp. 74–79.
Customer behaviour study is based on consumer buying behaviour, with
the customer playing the three distinct roles of user, payer and buyer.CB
DOI:
https://doi.org/10.5281/ determines a firm’s profitability. Further profitability is established into loyal
zenodo.2553781 customer. Companies that develop a fuller understanding of consumers will
be better able to develop marketing strategies to meet their needs. . There are
many factors or attributes of consumers effecting their view and decisions.
In today’s increasing competitive marketplace, Consumers differ in their
perceptions; they would necessarily hold different images for any specific
brand and often have to make a choice among a range of products or brands in
the market that differ very little in its price or function. In such circumstances,
their final decision depends on the image they associate with different brands.

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International Journal of Management

The study attempts to analyze the impact of Factors influencing the branded items.
branded items on consumer behaviour and its effect There are various factors influencing the
on Indian domestic industries. The objectives of the purchases of consumer these are, internal influences
study are as follows. and external influences, costumer behaviour is
1. To analyse the factors affecting consumer influenced by the interaction of interpersonal
behavior. influences such as cultures, subcultures, household
2. To analyse the impact of domestic industries structures, and groups that have an effect on the
with respect to foreign brands. individual. In addition to that internal influences
3 To study the effect of brands on consumer come from inside the consumer and they are the
buying behavior. personal thoughts and feelings, including perception,
This study is based on the secondary sources self-concept, lifestyle, motivation, emotion, attitudes
collected from various books, journals and on line and intentions.
materials.
Consumer Behavior
Review of literature
According to Kahle and Kim in the present day ’s
growing competitive market place, consumers have
to make their choice between a variety of product or
brands in the market that differ very small in its price
or function. They argue that in such situations, their
final decision depends on the image they relate with Price The price of products and services often
dissimilar brands. Additionally the authors express influence whether consumers will purchase them,
that the brand image has increased reputation as and what competition offering should be selected.
the feelings and images associated with brand and Stores such as Wal-Mart, which is perceived to
a well- known accepted brand image is one of the charge lowest price attract many consumers. For
most important assets a firm possesses (Kahle and some offerings, higher prices may not deter purchase
Kim, 2006). because consumers believe that, the products or
Keller (1997) demonstrates that the brand image services are higher quality or are more prestigious.
is essential in apparel purchase behaviour because However, many of today’s value –conscious
it impacts consumers’ preferences and purchase consumers may buy products merely on the basis of
intentions as well as their willingness to pay a price than other attributes.
premium price and recommend the brand to others. Promotion Advertising, sales promotion, sales
According to Gabbott and Hogg(1998) brand people, and publicity can influence what consumers
attitudes are defined as “consumers’ overall think about products, what emotions they experience
evaluations of a brand” also they incorporate in purchasing and using them, and what behaviours
summary evaluations of information which they perform including shopping in particular
represent how consumers feel in a long run, lying in stores and purchasing specific brands. Marketing
a continuum from positive to negative. Keller (1993) communication play a critical role in informing
also indicates that brand images are closely related consumers about products and services, including
to how favorably the brand is evaluated. According where they can be purchased, and in creating
to Keller the higher the brand approach, the higher favourable image and perceptions.
the brand image is and he points out that a positive Place The marketer’s strategy for distributing
overall brand attitude can be arranged if consumers products can influence consumers in several ways.
believe that the brand has attributes that can satisfy Products that are convenient to buy in a variety of
their wants and as well as their needs. stores increase the chances for consumers finding
and buying them. When consumers are seeking
low-involvement products, they are unlikely to

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engage in extensive search. Therefore, availability Opinion leaders are People in a reference group who
becomes very important. Second, products sold in because of some characteristics exert influence on
exclusive outlets, may be perceived by consumers others. Family most buying organization, interaction
as higher quality. In fact, one of the ways marketers of family ties, women are getting jobs, men are
create brand equity is by selling them in prestigious making more buying decisions constantly , Role is
outlets. Third, offering products by non-store activities people are expected to perform according
methods such as on the internet or in catalogues, can to the persons around them and Status reflects the
create consumer perceptions that the products are esteem given to role by society.
innovative, exclusive, or tailored for specific target Personal factors Age and life-cycle stage Tastes
market. in food, clothes, furniture and other are age related,
Consumer Decision making The consumer family situation no longer directly age related.
decision making process defines different steps when Occupation, Blue collar is more rugged clothes,
a consumer goes through to purchase a product. If white collar is more business suits. Economic
customer wants to make a purchase he or she takes a situation Buying behavior affected by things like
sequence of steps in order to do complete this purchase. income, wealth and business cycle. Lifestyle
Problem recognition includes when consumer feel a AIO dimensions Activities like work, hobbies,
significant difference between the current state and shopping, sports, social events and also interests
ideal so consumer thinks there is some problem to like food, fashion, family recreation and opinion
be solved. The problem may be small or big. In the about themselves, social issues, business, products.
second step, the consumer seeks information about Personality is unique psychological characteristic
the product. The extent of information search relies that lead to relatively consistent and lasting respons
on the level of consumer involvement. In case of es to one own environment.
expensive products, the level of involvement is high. Psychological factors Motivation Motive (drive)
Conversely, in case of relatively cheap products the need sufficiently pressing to direct the person to seek
level of involvement is usually low. In the third step, satisfaction many at the same time is biological and
the consumer 14 evaluates the different attributes psychological, some needs are not strong enough
of the brands. Consumer may consider the product to cause action (not motives) Freud’s theory of
attributes and compare brand products. In the final motivation and Abraham Maslow’s theories urgues
step consumer makes his choice about a product. the hierarchy of needs from most to least pressing
Cultural factors Cultures, are the most basic physiological, safety, social, esteem and self
cause of want and behavior, largely learned, cultural actualization. People always act on most pressing
influences on buying behavior vary greatly. Cultural active need first.
shifts to new market opportunities. Sub-cultural are Beliefs and attitudes Belief is descriptive thought
group of people who share value system based on that a personhas about something – can be changed
common life experiences and situations, nationalities, and Attitude is relative consistent evaluation,
religions, racial groups, geographic locations. Social feelings, and tendencies towards an object or idea
class Society’s relative permanent and ordered – difficult to change that should fit products into
divisions, Member share similar values, interests existing attitudes and not try to change them.
and behavior. Class is defined by a combination of Other Factors influencing consumer buying
occupation, income, education, wealth and other behavior in branded goods The consumer can have
variables. many reasons of buying a special brand. The reasons
Social factors Membership groups, are persons can be rational, emotional or self-expressive or
belongs to, and has a direct influence on the person. the three combined (Uggla, 2001). In comparison,
Williams (2002) concluded that the criteria for
Reference groups serve as point of comparison in
brand/product choice may 30 relate to either
forming attitudes or behavior. Does not require
utilitarian criteria (objectives, economic, rational and
membership in a group, for example aspiration group functional) or hedoic criteria (subjective, emotional,
is a group to which the persons wants to belong. irrational and symbolic.).
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International Journal of Management

Social Status Social Status is an important globalization of markets. Downsizing, consolidation,

concept to marketers, since consumers within each and reconfiguration are common terms used to
social stratum often have similar values, lifestyle, describe the current state of affairs in all industries.
and buying behaviour. Thus, the various social At the firm level, managers have come to recognize
class groups provide a natural basis for market that constant productivity improvement is the only
segmentation. Consumers in the different social durable solution to remaining economically viable.
classes differ in the degree to which they use various Those companies that operate in global industries
products and services and their leisure activities. find that they must achieve “world class” status. This
Advertisers often show how the benefits of their implies that they must have benchmark against the
products help to perform certain roles. Most often, best of their competition, wherever they are located.
promotional messages suggest that, using the Benchmarking refers to the process of identifying,
advertiser’s product will help raise one’s status in the learning, and implementing the best practices of
eyes of others, while using a competitor’s product world class organizations, “ Practices in various
may have a negative effect on state . Attitudes areas of company activity are targeted: order filling,
allow the individual to develop a coherent behavior customer service, manufacturing processes, and
against a class of similar objects or ideas. Beliefs as human resource management. Managers study the
well as attitudes are generally well-anchored in the best practices of leading companies, not necessarily
individual’s mind and are difficult to change. For those in the same line of business, and then try to
many people, their beliefs and attitudes are part of implement them in their own organizations. There
their personality and of who they are. However, it are now consortia of firms who agree to facilitate
is important to understand, identify and analyze the benchmarking studies at each other’s facilities.
positive attitudes and beliefs but also the negative The new realities of the global marketplace have
ones that consumers can have on a brand or product. prompted business organizations to be constantly in
Family The family is maybe the most influencing search of enhanced productivity and new sources of
factor for an individual. It forms an environment competitive advantage.
of socialization in which an individual will evolve, Why do people prefer branded products?
shape his personality, acquire values. But also Whalley, A (2010), Companies invest millions in
develop attitudes and opinions on various subjects the development and protection of their brands,
such as politics, society, social relations or himself they do so because branded products have distinct
and his desires. But also on his consumer habits, his advantages over nonbranded ones, and this is akin
perception of brands and the products he buys. We to differentiated versus generic product positioning.
all kept, for many of us and for some products and A strong brand is now seen as a key to commercial
brands, the same buying habits and consumption success by providing advantages. Whilst the below
patterns that the ones we had known in our family. mentioned are the advantages there are others and the
Perceptions and family habits generally have a exact mix of advantages will depend on the context
strong influence on the consumer buying behavior. of the brand-product-market environment on a case
People will tend to keep the same as those acquired by case basis. It will also depend on the investment
with their families made in building-up a brand; in order to be strong
and benefit from the above advantages a brand has
Impact of Globalization on Domestic Institutions to be crafted, designed and invested in. it is not
No industry has escaped the impact of enough just to attach a name and logo to a product
globalization. Some have been hit hard, for example; and as with products unless they are developed and
automobiles, chemicals, electronics, steel, textiles, adopted, brands tends to decline over time. They
and tires. Others, such as food and beverages, must be nurtured and carefully managed or they
paper, pharmaceuticals, and industrial machinery become unfit. The following are the advantages of
and equipment, have fared better. An ongoing brands.
restructuring was put in motion as a result of the

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High brand equity The basis of brand equity lies include, club membership, loyalty card schemes,
in the relationship that develops between a consumer registration of warranties, other products such as
and the company selling the product or service T-shirts and bags with the brand name and logo
under the brand name. A consumer who prefers a on the website activities. The number of brands
particular brand basically agrees to select that brand communities is increasing rapidly, thanks in part to
over others based primarily on his or her perception the World Wide Web, and they form a significant
of the brand and her value. Thus a well known brand part of a growing number of peoples social lives.
adds the value to a product both from the customer
perspective and from the companies. Indeed brands Conclusion
may be the most valuables assets that a company has, Since market conditions are constantly changing,
a quick examination of major international business the new role of brand management as an integral
balance sheets will show that their brand equity, part of holistic marketing is more important than it
usually shown as intangible goodwill is often over ever was. According to the situation on current retail
fifty percent of their assets value, and in some cases market, it is very important that enterprises manage
such as coca-cola is over seventy percent over their their brands so they can flexibly fulfill desires
value- far in excess of their tangible assets. Increased and wishes of their customers. In order to create
product awareness Cleary it is crucial that potential a competitive brand, they need to pay attention
customers should be aware of a product; it is the to their customers constantly. In current retail
first stage on their journey to buying it. one the key environment, consumers are overwhelmed with
roles of advertising is to built that awareness and plenty of brands and products. market conditions
an easily recognized brands makes that task much are constantly changing, therefore it is concluded
more achievable. Product and packaging design play that change is inevitable hence producers have to
key roles here as well by making the product more take up challenges in a positive way and undergo
visible and reinforcing the brands values. Premium the production processes as per the latest trend and
pricing and reduced susceptibility to price wars A lifestyles of the people.
good brand name helps a firm to achieve a premium
price for its products. Think of the differences in References
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