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How does branding affect customer behavior?

Since the internet, how


does marketing now affect a customers purchasing decision?

The internet has turned the tables on how consumers and brands engage
with each other. The internet is transforming branding strategies as well as
business models around the world. What was standard just a few years
ago is practically obsolete. For todays marketers, the old way of doing
business is unsustainable.
Consumers still desire a clear brand promise, enjoying the products and
services they value. What has changed is how and when the consumer is
influenced by a brand as it interacts with them at various touch points.
In the past, brands concentrated most of their efforts and budget into
building brand awareness, having consumers then open their wallets at the
point of purchase. And it worked pretty well until the growth of the
internet.
Touch points and consumers have changed in both number and nature,
requiring a major adjustment in a brands strategy and budgets, solely
based on where consumers are actually focusing their attention.

How Does Branding Affect Customer Behavior: The Five Key Stages
Successful brands understand and nurture the customer decision journey,
which is now composed of five distinct stages:
Paying Attention
Evaluation
Purchasing
Enjoying
Advocating
Because all brands are attempting to gain more Attention in a highly-
competitive world, most brands are losers in succeeding to gain an
abundant amount of consumer attention for their brand.
In the Evaluation stage, consumers now look to their peers and other third
party information to determine which brands on their list will be purchased.
It is at this stage when more brands lose out, as most do not have a
strategy to ensure that their brand is properly represented with high-quality
to assist the customer with their evaluation.
In the past, this stage was short and not that involved. But as the internet
grew in size and influence, so did grow the consumers ability to visit
trusted locations containing reviews, good or bad, videos from YouTube
commentators, and independent bloggers. All of these factor are now
shaping the brands identity; important factors not under the brands control.
Better, more in-depth evaluations of brands were being conducted online
by the consumer and this left most brands losing out on the consumers
interest.
With now even fewer brands left at the Purchasing stage, many of their
branding and sales strategies were weak with poorly designed packaging,
awkward pricing, or sales people who could not clearly explain the brands
features and benefits. Or the brands sales team simply failed to adequately
close sales.
After purchase, a deeper connection begins where the customer is
now Enjoying the product/service along with additional online touch points
with the brand. When consumers are pleased with a purchase, theyll
advocate it with word-of-mouth, creating consumer generated content. In
turn, Advocating invigorates a brands potential by now helping other
consumers to pay attention and evaluate the brand. And so a new
sequence of the customer decision journey begins with even more
potential customers, As we all know too well, would-of-mouth leads to a
brands best new customers.
Few companies have created the roles and systems needed to manage
their content supply chain and create a coherent consumer experience at
all 5 states of the consumer decision journey. And for those brands that
do adapt to how the internet has changed customer behavior, they will
dramatically grow market share in this new digital economy.

How Branding Affect Consumer Purchasing Decisions

In the current world the presentation of products in the market is very


important. This implies that for a product to be accepted by customers, it
has to impress them. There are various ways through which organizations
use to attract their customers. Some companies use quality, some others
use names, color and still others use shapes of products. These factors are
counted important by the people who buy them. There are marks that are
made on the products that are important in distinguishing products from
others of the same type (Coomber, 2002). Branding options can be using a
specific logo, name, slogan or a design that will differentiate products from
of the same type from one or different companies (Clifton, Simmons and
Ahmad, 2003). This makes it easy for customers to identify these products
when they are placed in the market for them to buy. In branding, colors are
very important (Miletsky, and Smith, 2009). This is because they distinguish
products when they are placed in the same shelf with other products. It is
also noteworthy that brands cannot be shared across companies.

Rationale

The proposal is going to evaluate the causes and effects of branding and
how they are fashioned. This will be an evaluation of the types of features
and styles a company may use to come up with a brand. Some companies
brand through use of logos, names and, or slogans (Walker, 2008).
Companies choose considerably the different colors and designs they can
use for branding. There are reasons why different companies use specific
colors to represent their brands (Bleicher, 2012). The proposal will evaluate
the different significances placed on choice of branding symbols. This is
because different companies use different combination of branding choices
and technologies to come up with their own brands (Klein and Barber,
2011). The mode of evaluation of the effects of the different types brands in
the current world market and evaluate the combination of aspects and how
they have influence the customers. Of the brands that are in the market,
the evaluation of their shapes and sizes impacts on consumers will be
evaluated so as to inform the conclusion on the effects they have on
consumers purchasing decisions (Lury, 2004). Also of importance in the
research will be the evaluation of the uses of names and slogans in the
branding in different cultural settings. This will evaluate how different
cultures influence, through their preferences, choices of names and
slogans that are used to brand commodities.

The research also will evaluate transferability of brands among companies.


This will venture to determine whether companies producing similar product
can use a single brand name and color or any other aspect of brand to
brand their products. The research will evaluate possibilities of autonomous
companies to share a brand (Simon, 2007). The research, therefore, will
explore the world market to evaluate any close-usage of a similar logos or
brand names for autonomous companies (Healey, 2008).

Proposal objectives
This involves the may purposes of carrying out research on the effects
branding has on consumers purchase decisions. It evaluates all the
impacts branding have on the way a customer chooses to make decisions.
The objects of this proposal will be as follows;

To evaluate what customers look for a product they buy

To evaluate the colors most preferred by customers in different localities


and cultures

To establish the influence a brand has on marketing of products (Wright,


2008)

To determine the least number of aspects of a commodity there are in a


single products

To evaluate rights of transferability of company brand names, logos and


slogans among autonomous companies in the world

To assess various ways of popularizing new brands

To evaluate the drivers for a company to come up with a certain brand,


whether it is centered on their interests or those of their potential customers
(Tungate, 2008)

To determine the effects of a brand on the identity of a company (Halter,


2000)

To evaluate the process of customer loyalty to a product (Eliason, 2012)

Research questions

In conducting the research on the effect of branding on customer decision


making about purchase some questions will need to be answered
(Andrews, 2003). At the end of the process of enquiry and interview and
exploration of the various factors, a person who reads the outcome of the
research should be able to answer some questions like;

What are the most attractive branding features that can be used to create
brand of a new product in the market?
How do different cultures affect the choices of names, slogans or logos for
a new product in the market?

Does branding affect the customer decisions of purchasing products of any


kind in the market?

Does a brand influence the cost of marketing activities in a company


throughout time or for a period?

If the research is able to answer the questioned posed positively, therefore,


the company that adopt the proposal will choose ways which can be used
to facilitate the improvement of their branding techniques. On the contrary,
if that research is unable to answer the above questions in an amicable
way, the company will need to explore the causes of failure witnessed in
the process of branding. This will call for monitoring of processes that can
be used to improve the productivity of the company in different areas of
branding (Andrews, 2003).

Hypothesis

In carrying out the research on the effects of branding on consumers


purchasing decision, various hypotheses are developed. These hypotheses
are based on a generalization of ideas which will need to be substantiated
by a research. Some hypotheses for this research include;

The appearance of a packed product is the first attraction to customers


(Arthur, 2012)

Colors of products important in choosing products in the market

The features of a brand reflect the culture of the people in the market
where that product is sold (Kumar, 2011)

Customer develop loyalty of products which interests them and attract other
customers to buy products

Product branding is a marketing tool of companies

Theoretical Framework
Customers
view products

Display of
products

Branding
products

Invention of

Products

Customers
invite others to
buy

Customers
love products
Customers
become loyal

Customers buy
products

Methodology

Target Area

The research will target consumers of products from different companies


within the world and will evaluate them on different cultural bases. This will
be focusing of world market flow of products and services of a person.

Target population

Respondents to the research will include consumers of different products


from different companies in the world. It will target consumers of products
which appear in variety but from different companies and manifesting
different features branding. This will be important to test why people prefer
certain products in place of others although they can serve similar
purposes.

Sampling Procedure

The population for this research will be defined as the total industries
producing similar products within the world. Because of the large number of
companies producing similar products within the world, a small well
selected sample will be used to represent the larger population. The
selected sample will have all the characteristics of the other population
(Wang, 2008).
Various sampling methods that can be used are categorized as probability
or non-probability (Ardilly, and Tille, 2006). In probability sampling, every
member of the population stands a chance to be selected but still they have
a non-zero probability not to be picked. Some methods in this category
include stratified sampling, random sampling, and systematic sampling
(Bluman, 2005).

On the other hand, in non-probability sampling, selection is not


randomized. These include convenience-sampling and judgment sampling
(Bartoszynski, and Niewiadomska-Bugaj, 2008). Probability sampling is
advantageous because it is possible to calculate sampling error, the degree
of variance of a sample from the population. This does not happen in non-
probability sampling. In reporting, the results are given in terms of plus or
minus the sampling error. This variance from the population is unknown in
non-probability sampling.

Survey tools

The research will use interviews and structured questionnaires which will
be administered to the customers of sample products around the world
(Neely, 2006). This will involve administering questionnaires on all
customers from different countries who buy similar products and from
different companies. The informants will involve all people who are at the
market place as well as those at their homes who have bought selected
products (Ind and Bjerke, 2007).

Conclusion

Branding is a venture that involves putting some marks on products to


identify them as different from various other products. In branding products
are named and associated with phrases that cannot be used by other
companies. The role of a feature of branding can be evaluated from
different perspectives. This is in relation to its ability to trigger emotions of
customers until they buy the product. Once the effects of branding have
been established, different companies will be able to assess their level of
usage of their brands in controlling the market. This will inform the
monitoring of the brands already in use so that they can retain the identity
of the company as well as serving the purposes of marketing. The
companies will be able to learn the different variance that are witnessed in
terms of cultures in different colors, sizes, shapes, and designs of logos
that are attractive to the potential customers. Proposal research will serve
as a source of information to all companies about transferability of rights of
ownership of a brand. This will prevent many companies from engaging in
activities that will risk their prosecution. Since the research will pinpoint
different branding techniques that attract customers, it will serve as a
means for further research about ways to improve current brands. The
research will create an awareness of the means of making a certain brand
competitive in the market. This research will also inform the process that
will be followed to develop a brand from the point of invention of a product
to the time it is placed in the market for customers to buy.

BRANDS AND BRANDING: RESEARCH FINDINGS AND FUTURE


PRIORITIES INTRODUCTION

Brands serve several valuable functions. At their most basic level, brands
serve as markers for the offerings of a firm. For customers, brands can
simplify choice, promise a particular quality level, reduce risk, and/or
engender trust. Brands are built on the product itself, the accompanying
marketing activity, and the use (or non-use) by customers as well as others.
Brands thus reflect the complete experience that customers have with
products. Brands also play an important role in determining the
effectiveness of marketing efforts such as advertising and channel
placement. Finally, brands are an asset in the financial sense. Thus, brands
manifest their impact at three primary levels customer-market, product-
market, and financial-market. The value accrued by these various benefits
is often called brand equity. Our primary goal in this paper is to both
selectively highlight relevant research on building, measuring, and
managing brand equity and to identify gaps in our understanding of these
topics. We put considerable emphasis on the latter and suggest numerous
areas of future research.1 Five basic topics that align with the brand
management decisions and tasks frequently performed by marketing
executives are discussed in detail: 1) developing brand positioning, 2)
integrating brand marketing; 3) assessing brand performance; 4) growing
brands; and 5) strategically managing the brand. We then consider the
implications of this work for choice models. Finally, we present a simple
framework for integrating the customer-market, product- 1 For commentary
on the state of branding, see special issues of International Journal of
Research in Marketing (Barwise 1993) and Journal of Marketing Research
(Shocker et al. 1994). For a more exhaustive review of the academic
literature on brands and brand management, see Kevin Lane Keller (2002),
Branding and Brand Equity, in Handbook of Marketing, eds., Bart Weitz
and Robin Wensley, Sage Publications, London, 151-178. 2 market, and
financial-market level impact of brands and how the brand is created and
developed by company actions. BRANDING DECISIONS AND TASKS
DEVELOPING BRAND POSITIONING Brand positioning sets the direction
of marketing activities and programs what the brand should and should
not do with its marketing. Brand positioning involves establishing key brand
associations in the minds of customers and other important constituents to
differentiate the brand and establish (to the extent possible) competitive
superiority (Keller et al. 2002). Besides the obvious issue of selecting
tangible product attribute levels (e.g., horsepower in a car), two particularly
relevant areas to positioning are the role of brand intangibles and the role
of corporate images and reputation. Brand Intangibles An important and
relatively unique aspect of branding research is the focus on brand
intangibles aspects of the brand image that do not involve physical,
tangible, or concrete attributes or benefits (see Levy 1999). Brand
intangibles are a common means by which marketers differentiate their
brands with consumers (Park, Jaworski, and MacInnis 1986) and transcend
physical products (Kotler and Keller 2006). Intangibles cover a wide range
of different types of brand associations, such as actual or aspirational user
imagery; purchase and consumption imagery; and history, heritage, and
experiences (Keller 2001). A number of basic research questions exist
concerning how brand tangibles and intangibles have their effects.

Effects of Branding Strategy on Consumer Choice


Introduction
Consumers preferences are really hard to determine not only
because there are many types of buyers but also due to the rapid changes
in terms of their buying tastes and preferences. The prices affect their
decisions to buy, the marketing strategies and promotional advertisements
affects their decisions to purchase; as well as the amount the differences
between the buying preferences regarding the needs and wants. In the
recent behavior of the consumers, the action on frugality became an
additional part of the consumers power to buy. And in a more relative
investigation, the branding strategies can be also taken into a significant
cause.
Background and Problem Statement
The manufacturers and retailers are concern on how well the
products will sell into the market; therefore, they created a brand that can
create an influence into the buying decisions of the consumers. A brand is a
trade mark created by the manufacturers to remain effective in the market.
Once the consumer get used to the brand or on the label, and there is great
experience in using the said product, the consumer can somehow drive by
the brand and affected by its presence in the retail stores which ends in
buying that product. In the middle of shelf, the brands are enjoying
considerably more attention than those in the lower or higher shelf, as
according to the retailers, in the place where the eyes meet or in the level
of the consumers eyes which definitely works. In terms of how long the
attention lasted, the previous study discovered that the brands positioned in
the center of the shelf got nine times higher consideration time than those
placed in the corners. These are called proprietary behavior that gives
importance of different shelf placement for consumer choices of brands
(Sigurdsson, Saevarsson, & Foxall, 2007). In this case, how effective are
the branding strategies to affect the consumers choice and the preferences
to buy?
Purpose of the Study
The purpose of the study is to drive the applicable concepts in
consumer choice by highlighting the factors in marketing like branding
strategies. Branding strategies might be through the labeling and the
internet-branding in which the consumers refer in their reason to buy the
said marketed products.
Significance of the Study to the Consumer
The more successful brand, the more buyers will be encouraged to
buy - that is one of the main ideas that linger in the branding strategies of
the organization. Since the consumers are the final people who will use the
products, it is important for them to know the issues that might include in
branding as well as the influence that it might drive them to buy the
products that might be unimportant in their households or everyday
activities.
Research Objectives
to investigate the effects of branding strategy or the brands in the
choice of the consumers
to evaluate preferred brand element when making a choice

Conceptual Framework
Borrowing the illustration of Simmons (2007), the conceptual
framework is constituted with four pillars. There are two dependent
variables (marketing communications and interactivity) and independent
variable (understanding customers and content). The framework is based
on the I-Branding or internet branding which can be also applied in the
retailing because it provides the intellectual interest and practical value in
marketing planners and systematic approach in selling.

Brief Review
In terms of branding literature, internet became the most common
tools to market the products and leave an influence on the consumers.
Because of the idea that the consumers are more interactive, the
manufacturers and marketers use the online environment to extend the
practice of brand management. In this case the process of consumer
choice expanded and the attributes of the product recorded and
represented in the memory of the consumers which will definitely play an
important in terms of buying.
Methodology
The applied method in the study is the use of survey and interview
which will give a comprehensive result regarding the objectives of the
study. In the first method, the survey will be conducted into the sample of
200 participants who are also consumers. The use of questionnaires under
the form of Likert Scale that can measure the importance of branding in
their buying decisions will help the researcher to understand the consumer
choice. On the second method, the interview will be conducted among the
managers, supervisors, retailers, and manufacturers of the products. They
will be asked about the importance of brands and the branding strategies
that might gain them a profit margin.
References:
Erdem, T., Swait, J., Broniarczyk, A., Chakravari, D., Kapferer, J-N., Keane,
M., Steenkamp, J.E., & Zettelmeyer, F., (1999) Brand Equity,
Consumer Learning and Choice, Marketing Letters 10(3) [Online]
Available at: http://leeds-faculty.colorado.edu/Chakrava/Published
%20Articles/Brand%20Equity,%20Consumer%20Learning,%20and
%20Choice.pdf [Accessed 23 September 2010]

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