Influence of Brand Image on Consumer Behavior - Research Proposal Example

Influence of brand image on consumer behaviour The society today is largely influenced by brands. Consumers believe that purchasing branded products reflects their preference towards high quality. Moreover nowadays, adherence to branded products is considered to define one’s lifestyle. The kind of products people use reflects their tastes and economic background. This aspect establishes a deep connection between a consumer and a brand. Most people are seen to adhere to specific brands when they purchase mobile phones, cars and many other products that are used in their daily lives. Brand image and name are seen to affect their choices. Consumers believe that a good brand name symbolizes high quality. The purpose of this study is to identify the reasons behind the adherence of consumers towards products that have a high brand image. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Features of brand image 4 Brand image as a Trustmark 4 Brand experience 4 Lifestyle statement 5 Consumer behaviour 5 Social factors 5 Psychological factors 6 Personal factors 6 Brand image and consumer behaviour 6 Consumers learning process 6 Consumer’s perception regarding brands 7 Price related matters 8 Customer attitude 8 Advantages of brand image 9 Sustaining competition 9 Building customer loyalty 9 Commanding high price 9 Methods of building brand image 10 Conclusion 10 Reference list 11 Introduction Developing a good brand image is every firm’s objective. It helps to gain superior advantage over other firm in the industry and leads to generating higher sales. In order to develop brand image it is essential that the product is of high quality and meets customer requirements correctly. In respect of consumer behaviour, it is seen that consumers are largely driven towards purchasing those products that have a good brand image. High brand image indicate better quality products which helps attracting greater number of consumers. In case of high end products, brand image is also associated with luxury and greater social impact. A healthy brand image is therefore seen to influence consumer behaviour in a positive way (Nandan, 2005). Features of brand image Brand image as a Trustmark The market for a single product can be flooded with numerous brands. It becomes difficult for consumers to decide which one is of the best quality. Instead of wasting time analyzing each brand, they are motivated to buy those products that already have a good reputation in the market. Consumers believe that quality and reputation go hand in hand. When consumers purchase a product that has a high brand image they automatically develop a trust upon the brand and view it to be of high quality (Jamal and Goode, 2001). Brand experience Many consumers feel an increased level of satisfaction when they use a product that has high brand image. Brands are seen to infuse certain emotions and actions upon the behaviour of consumers. Such cognitive and virtual attributes of brand image drives consumer’s into purchasing specific products. It is seen that when an individual wears a branded watch, they experience a higher level of satisfaction although there is technically not much of a difference between a branded watch and an ordinary watch as both serve the same purpose. The influence comes from the brand image, the additional qualitative aspects and the luxury factor (Thompson, Rindfleisch and Arsel, 2006). Lifestyle statement Consumers believe that purchasing products that have a high brand image helps to develop a lifestyle statement. It is indicative of the economic background of the consumer and their social status. Driven by such characteristic influences consumers prefer buying products that have a good brand image. Consumers sense that through branded products, it is possible to generate positive influence upon the minds of others. Moreover branded products are expensive in comparison to ordinary products. For purchasing branded products consumers need to spend more. Not all individuals are in a financial position to spend heavily upon branded items. As a result it is assumed in general that if a person is purchasing something that is branded, then he or she is financially quite stable (Degeratu, Rangaswamy and Wu, 2000). Consumer behaviour Consumer behaviour can be defined as the mental and emotional processes that are observed in searching, purchasing, consumption and post consumption of a product or service. It is the study that relates to how people buy, what are the factors that motivate them to buy a certain product and their expectations regarding a product. Consumer behaviour is broadly affected by three main factors that are discussed as follows (Cretu and Brodie, 2007). Social factors The social factors may include culture, family, friends and reference groups. Social factors take into consideration the suggestion that others have regarding different products. It is often seen that before investing in a certain product, especially the ones that are expensive, most people tend to seek the feedback of others. Psychological factors Psychological factors are aspects that are internal to the consumers such as their level of understanding, learning and their personality. Consumers develop a perception regarding a brand based on their understanding regarding it (Keller, 2003). For instance if the general perception of consumers is that the products offered by Sony are durable, they will not hesitate to purchase them. Psychological factors are seen to influence consumers more than the social factors. Personal factors Personal factors include past experience of consumers and their lifestyle. For instance if a consumer has had a satisfying experience by consuming a certain product, he or she is likely to purchase the same product again. Similarly in terms of lifestyle, the purchasing behaviours of teenagers are likely to vary from adults. Brand image and consumer behaviour The influence of brand image upon the consumers buying pattern is discussed briefly as follows. Consumers learning process The learning process includes the mediums through which consumers come to know about different products or services. The exposure that individuals gain through different promotional mediums influences their learning process. During the learning process, the consumers develop knowledge regarding a certain product or service though word of mouth, viewing advertisements and reading about the products in journals, magazines. The learning process helps individuals to develop a sense of preference regarding products (Esch, et al., 2006). This is one reason why different companies are seen to invest so heavily upon promotional activities. Through influential promotional strategies, brands try to create a positive impact upon the minds of the consumers so that they are enticed to purchase a certain product. For instance a meaningful advertisement may have a lasting effect on the minds on a consumer and they are reminded of the same while purchasing products. The manner in which brands spread their product awareness in the market influences their image and ultimately the buying pattern of the consumers (Low and Lamb Jr, 2000). Past experience also form an important aspect in developing brand image. If consumers have experienced superior benefits from consuming a product, they are likely to purchase the same product again. If a large number of people have positive experiences regarding a product then through word of mouth, the brand can create a favourable brand image (Escalas and Bettman, 2005). Consumer’s perception regarding brands Perception is an important aspect in the decision making process. Products are not only purchased because of only their functional utility but also because there is a social or a psychological value associated with it. The perception of brads is a critical aspect for both the consumer and the producers (O’cass and Frost, 2002). Perception is vital in case where the consumption pattern differs from consumer to consumer as it is indicative of the phenomenon that different consumers perceive the same products differently. Marketers are required to deliver correct and accurate information regarding different products so that consumers can have the right perception (Martenson, 2007). In case of products which are new to a consumer and for which they do not have any prior experience, it is seen that they are largely influenced by the image and reputation that the brand has in the market. The brand image in this respect will play a guiding factor in consumer’s choice. Perceived Quality is also an aspect that influences the brand image. In perceived quality, it is expected that the consumers will develop their faith upon the brand with the passage of time that in turn will help to generate positive brand image (Holbrook, 2002). Price related matters Brand conscious consumers are seen to worry less about the price of the products. Individuals whose purchase pattern is dependent upon brand image are seen to concentrate more upon the quality aspect of the product. They do not mind paying a high price for the branded product. According to them it is the social impact that is more valuable which branded products help in creating. Brand loyal consumers are also not really affected by changes in prices of products. In fact it is seen that the high price of branded products are an indicator of superior quality (Schroeder, Salzer-Morling and Askegaard, 2006). It is expected that branded products would be highly priced. If the prices of branded products are reduced, consumers would perceive that there has been a decline in the products quality. As most consumers are not willing to pay high prices for products, they prefer not to buy highly priced branded items. Thus such branded products can only be purchased by those who are willing to pay more and are fewer in number. This makes branded products less common in society which makes it all the more special. Therefore it can be said that the high price of branded products adds to increasing its brand image in many ways (Keller, Parameswaran and Jacob, 2011). Customer attitude The study of customer attitude is increasingly becoming important for understanding their adherence towards brands. From the consumer behaviour factors that were discussed earlier it is clear that psychological factors play an important role in the consumer choice and preference. The general assumption that buying products with high brand image would lead to increasing the social status of the consumers is what drives most consumers to purchase branded products. Individuals who prefer buying branded items are seen to have greater affiliation towards maintaining high social impact (Evan, Jamal and Foxall, 2007). Advantages of brand image Sustaining competition A strong brand image helps a company to sustain competition in the market. It helps in dominating over a larger proportion of the market. A strong brand image helps to reach out to the target customers in a more effective manner. A good brand image also helps to identify the brands products to be of superior quality in respect of its competitors and thereby sets it apart. In general it is seen that the older brands have better brand image in comparison with newer brands (De-Chernatony, 2010). It takes time for newer brands to generate positive perception in the minds of the consumers. Existing brands have a comparative advantage in this respect. Building customer loyalty Brand image helps in developing loyal customer. When consumers are satisfied with a brands product, they purchase the same repeatedly. In order to develop loyal customers, it is essential that brands adequately realize the needs and preferences of the consumers (Delgado-Ballester and Munuera-Aleman, 2001). Commanding high price A good brand image allows firms to charge higher prices as the products deliver superior quality in respect of its competitors. It is perceived that higher prices indicate better quality. Therefore a good brand image helps firms to generate greater revenue (Research gate, 2011). In order to benefit from products that are of superior quality, customers are seen to be willing to pay higher prices. Methods of building brand image Building brand image takes time. Consumers are required to purchase the product and experience its benefits personally. If consumers are satisfied with the product, they repeat their purchase. In this manner customer loyalty gets generated. As the number of loyal customers increase in the market, a healthy brand image gets created (Hasan, 2008). It is also essential for company’s to spread adequate awareness about their products through the right mediums in an effective manner. Once a firm suitably establishes in the market as a good brand it becomes easier for it to launch additional products. Many brands also include social cause aspect in their brand in order to develop their image. For instance it is seen that many firms promote their products by stating that a portion of the revenue collected by them will be contributed as charity to different institutions. This induces buying behaviour amongst many consumers. Such strategies not only help in developing brand image but also the society as a whole. Conclusion Although a good brand image is beneficial for a firm from most viewpoint it also has certain limitations. High brand image brings along with it high expectations. Consumers expect superior quality and value for their money. If branded products fail to deliver the promised offering, it may harm its image. Competitors might take advantage of this situation and try to overtake market position (Academia, 2013). Another disadvantage for branded products is that, if firms decide reducing the cost of there products it may adversely affect the image of the brand as consumers may perceive that the cost reduction must have led to decrease in quality of the product. 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