Effect of Branding on Consumer Buyer Behaviour within the Grocery Sector - Research Paper Example

Effect of Branding on Consumer Buyer Behaviour within the Grocery Sector Table of Contents Introduction: 2 Research Aim: 3 ResearchObjectives: 3 Methodology: 4 Literature Review 5 Brief History of Branding: 5 Some Common Definitions: 6 Why Brands are Powerful in Driving Consumer Behavior: 7 Brand Vision and the 'sensual shopper': 8 Analysis: 9 Consumer Experience: 10 Marketing Asset in the Grocery Sector: 11 Significance of Survey Results: 12 Conclusion: 14 References: 16 Appendix: 19 Survey 19 Introduction: In order to sell products, organizations resort to various strategies. Each company has its strategy structured in accordance with market factors as well as product strengths. This may mean that an organization has to consider various angles in order to make sure its products enter a market and sell successfully. In considering several factors that play their parts in the success of a product in the market, 'branding' is one major component for organizations to work on. Branding is considered to be a major component in the success of a product in the market because it can control consumer decisions. This of course depends on the reputation of the brand, which refers to how it has appealed to consumers in the grocery sector in the past and how it has served them. Research Aim: The aim of this research is to identify, examine, and evaluate the effect of branding on consumer buyer behavior. Research Objectives: 1- Understand what branding is and its effect in the form of simply trademarks, symbols, names and logos. 2- Recognize and identify the role that branding plays on buyer behavior in the grocery sector, as a function and as a managerial philosophy. 3- Investigate into the psychological and theoretical dimensions of branding's effect on buyer behavior in the grocery sector. 4- Research why and how do brands form successful long-term relationships with consumers on the basis of emotions. Methodology: The literature review highlights previously researched concepts of branding and its effects on buyer behavior. The literature review's aim is to establish the range of concepts and theories associated with branding's effects on buyer behavior in the grocery sector. This is by reviewing a wide range of books, journals, business publications, and periodicals. The chapter begins by tracing the development of the branding concept through to key theoretical models associated with its application. The review then concludes on the brands' principles of importance in business-to-consumer emotional relations. Methods of research employed, need to be as equally balanced as possible. Therefore, a balance of qualitative and quantitative data needs to be considered. This means that books, journals, websites and reports will be considered as important sources of data. In addition to these sources, a survey will also be conducted in order to gather first hand information from individuals regarding the operations of corporations that have shareholders as their principal. In order to find out the answers to research questions, a survey with a qualitative technique is used. Qualitative research methods aim at understanding the rich, complex and idiosyncratic nature of human phenomena. This is important particularly for understanding the manner in which each individual behaves when he/she has a role to play in an important position. This is important to consider because of the fact that while researching the effect branding on consumer's buying behaviour, elements like trust and integrity play a significant role. Literature Review Brief History of Branding: For the past 4000 years, symbolism - a form of branding, has been used as means of ownership, recognition, and identification. The Ancient Romans and Egyptians identified their livestock with symbols and signs. These activities, ideologies and practices were the very early concepts of identification and recognition. Yet, the theoretical published material on branding from a businesses perspective only emerged towards the mid-1900s. "The recognition of the benefits that a consistent visual presentation can bring to a company's performance has grown steadily since the 1950s. During the 1980s there was an explosion as large and small businesses around the world invested in their identities in search for competitive advantages" (Murphy and Hart 1998). Branding is a theme nowadays discussed across the fields of business, economics and strategy. The concept of branding emerged in the 20th century when literacy and increased living standards combined with the innovation of technology created the first mass market. The economist magazine proclaimed the year 1988 to be the year of the brand - The brand boom. Some Common Definitions: While many different definitions of a brand exist, the emerging themes from textbooks and journals portray brands as a reputation, a relationship, a promise, and a set of expectations. According to the American Marketing Association (AMA) " a brand is a name, sign, term, design, or a combination of them intended to identify and differentiate goods or services of sellers from those of competitors" (Kotler & Armstrong, 1996). Consequently, researchers (De Chernatony and Riley, 1998 and Keller, 2000) have proclaimed that AMA's definition is restrictive and outdated by its focus on trademark elements and on products only. Subsequently, Kapferer (1992), De Chernatony and Riley (1998) and Gobe (2001) defined the brand as a multidimensional construct whereby businesses and organizations augment goods and services with values. This facilitates the process of consumer recognition, identification, acceptance, and appreciation of a good or a service provided. Brand definitions tend to oversimplify the details involved in ensuring a convergence between businesses' concepts of corporate brand identity and the market/consumer perception of its brand image. Aaker's (1997) perspective includes a classification of the brand image as a complex and unique range of associations, memories, and emotions. He defines a brand as an identity "a unique set of associations that strategists aspire to maintain or create. These associations represent a brand's vision and imply a promise to consumers on behalf of an organization in the grocery sector. Brand identity help establish a relationship between a brand and a customer by generating value propositions involving functional, emotional, or self-expressive benefits" (Keller 1998). As adapted by De Chernatony and Riley (1998) the brand exists via continuous processes whereby a firm or a business fulfills values and in turn are defined by consumers. Latest definitions include "The brand is the nucleus of sales and marketing activities which result in increased awareness and loyalty when managed strategically." (Wheeler 2003) Why Brands are Powerful in Driving Consumer Behavior: A number of authors and theorists (Arnold 1992; Hart and Murphy 1998; and Keller 1998) adhere to the belief that a fundamental element of brand equity is that of brand association- the attributes that consumers think of when they see or hear the brand name, as these suggest the emotional relationship with brands that makes them powerful (Keller, 1993, 2). According to Aaker (1997), "customer benefits and product attributes are the associations that have obvious relevance because they provide a reason to buy and thus a basis for brand loyalty". Consequently, we can understand associations even more by looking at actual cases; whilst Pepsi wins blind taste tests over its main competitor Coca Cola, the fact is that Coca Cola has higher sales. According to Van Gelder (2002), this is because people enjoy the brand 'experience' of drinking and buying Coca Cola. It is the emotional relationship that makes brands very powerful. " It is not true anymore that the drink which tastes better sells better, it's a whole concept of emotional branding and an experience of encouraging consumers to live the brand" (Van Gelder 2002). Brand Vision and the 'sensual shopper': While businesses have different relationships with consumers in the grocery sector, consumers also have similar relationships with brands. Paco Underhill, in Why We Buy (1999), devotes a substantial amount of material to the 'sensual' shopper. He presents that by enhancing the shopping 'experience' with the sights, sounds, and smells and, where applicable, tastes can tremendously increase buyer conversion and 'emotional' awareness. It is an 'experience' for consumers to live the brand. In the Pepsi-Cola case, the 'value' of purchase was not taste, but was the 'experience of living' the brand (De Chernatony and Riley, 1999, 181-192). "The biggest misconception in branding strategies is the belief that branding is about market share when it is really always about mind and emotions share" (Gobe 2001). According to Gobe, the 'emotional content' adds 'value' to brands, not the market nor the product or business itself! The future of branding is listening to people carefully in order to connect efficiently with them by bringing pleasure, entertainment, and satisfaction to consumers needs. According to De Chernatony (2001) traditional businesses will not be able to rely on their brand history or their classical distribution systems. Businesses will have to focus on maximizing 'value' by enhancing the brand vision with powerful emotional content to reflect a new desirable brand image. Looking at actual cases; brands such as shopping malls are in the process of being reinvented as a form of exciting and diverse community entertainment and cultural center, such as Bluewater Mall in London and Mall of America in Minnesota. They are highly creative and innovative complexes with restaurants, theme parks, aquariums, shops, cinemas etc This implies that retail environments and organizations have to adopt to become 'brand images' rather than them being places to sell goods. Businesses will need to 'emotionally' bond with consumers in order to gain brand 'value'. It is the inspiration of living the brand. Analysis: The process of people welcoming products that are brought nearer to them heralds the current trend in globalization. This is the same process that was seen during the 1950s when consumer behavior was on the rise. This trend is extended to other places in the world today through globalization, which means that there are a whole lot more people aware of what is available around the world. This also means that there is a lot more stuff for people to be engrossed in, which would further help people to be relieved of stress in their everyday lives. But it also must be realized that there are other things to consider besides stress relief and extension of culture (Annesley, 1998). It must be realized here that there is an intense effort to control people economically through consumerism. During the 1950s this was seen as people bought what was advertised. Similarly, this is seen in many countries around the world that buy American products1. Consumer Experience: As opposed to having to depend on particular advertising to learn about products, people have often used other consumer experiences as their guides. This means that people without experience of a particular product have in fact waited for others to purchase it; the observer sits back and observes the performance and customer satisfaction. If a product happens to satisfy a consumer, others will certainly be willing to use the same service providers. Hence, it can be seen here that reputation does matter to service providers and customers. In a changing global business environment one of the key features that define a company's success is the recognition of its brand. Coke, Pepsi, LG, General Motors and Toyota are companies that stand out as examples; the representation of their company through a name is more than sufficient for people to purchase their products. People know and recognize their names, and this ensures the company's success (Alreck & Settle, 1999, 130-144). A Brand is one of the integral tools for a company's success in these modern times where competition is tough. Once a company makes its name popular through satisfying customers, it is easier to stay where they are in the market as opposed to those that try hard to make a name in a market where there are already so many companies with their products. After a product has made its impact in the market its name acts as a symbol that people recognize anywhere. This must be said while considering the fact that people today live in an image-conscious world, it must be said that using images to represent ideas is a must. Therefore, a Brand or even a brand logo becomes important in promoting a company (Rooney, 1995). Marketing Asset in the Grocery Sector: A Brand or its Brand Logo is a marketing asset for a company (Kotler, 1999, 23-27). The reason why it is an asset is that it helps to connect customers to a company. If a company has services to offer that satisfy customer needs that company needs to have a way through which they are recognized in case customers need their help again (Broniarczyk & Alba, 1994, 214-228). Undoubtedly, a name alone is good enough to help consumers find their way to services suppliers in the grocery sector, but symbols have always been a human need. In an era when time is money, a brand logo is the short hand to the company name. Through a Brand, instant recognition is received. Consider a passenger in a train passing a billboard, he or she may not have the time to read the complete company name but a glance at a colorful or uniquely designed logo will be enough to recognize and recall the name (Aaker, 1996). Brands are implemented for different purposes. The main purpose of developing a Brand is for the sake of recognition. As emphasized above, recognition is important so that consumers recognize and can approach a service provider. However, this is not the only message that a brand sends out to consumers in the grocery sector (Keller, 2002, 2). A brand may announce a special understanding between itself and consumers, such as reliability of services and affordability. Brands have the ability to create and establish an amazing relationship between a company and consumers, and this is why they have their importance in contemporary business today. A Brand is also a tool for marketers; it is through the Brand of a company that marketers have an easier time referring to their company. Regardless of the company size, a brand is needed to ensure that marketers can create the greatest impact in the shortest possible time. So, no matter what your company size ensure that your brand is a virtual or visual representation of your company mission and services (Keller, 2002, 2). Significance of Survey Results: The answers to questions listed in the Appendix provide interesting view that relate to the literature reviewed. Though all answers do not correspond with the literature review, the majority of them are significant. The number of participants for this study is 50. This small but significant number of participants provides one with a reasonable idea of public opinion about their choices and how they are impacted by particular brands. The participants have been selected at random to minimize possible bias, and therefore, helps to provide one with a general view of consumer perception. This in turn helps one to get an idea of the extent of communication between a brand and a consumer. The survey conducted here and the answers were obtained after informing the participants that they could think of any brand they use in the grocery sector. Based on that one brand they select and keep anonymous, the answers were achieved. Question 1 asked whether one feels confident about the products they buy that are produced under particular brand names. Participants provided 31 positive answers, saying 'Yes', while 15 answered 'No'. 4 participants supplied no answer. The positive answer indicates a 62% agreement that one feels confident about the products they buy that are produced under particular brand names. According to the accumulated results with question 2, 70% of the participants agreed that they choose their selected brand on their own. Related to this answer is the following one, question 3. In question 3, 24 % of the participants agreed that they had been referred to a selected brand. According to the answers in question 4, up to 32% of the participants would want to switch to a better brand, which is yet a significant finding. Related to this answer is the accumulated answer of question 5. In this answer, 20% of the participants believe that there are risks involved if they want to switch brands they are using for newer ones. This may be perhaps because of them not being certain of what to experience with a new brand they try out. Also, not every new brand can prove to be satisfactory. When asked about being in favor of readily surrendering a selected brand for another one just launched in the grocery market, accumulated answers in question number 6, 32% were in favor. Regarding appearance of a product or its brand symbol in question 7, 50% of the participants feel excited or pleased. In question 8, 80% of the participants agree that the colors in a brand logo fascinate them. Aside from the outlook of a brand wit its colorful logo, 70% of participants feel confident or safer using the brand they have selected. However, 48% would like to know more about their brand they are using. Conclusion: Undoubtedly, there is a strong relationship developed when a consumer has a good experience with any brand product. If a consumer happens to have a good experience with one product of a company, s/he is most likely to have the same expectation of the same brand with another one of its products. It is then necessary for a company to live up to the consumer's expectation. The company needs to create all its products according to what a consumer expects. If a consumer is let down, s/he may develop a negative impression of the brand, and therefore, would be more than likely to try out a competitor's brand. However, a positive experience on the consumer's part helps to develop a relationship between the consumer and the brand. In the future, it is most likely that a consumer would become increasingly loyal to a particular brand. The relation ship that a consumer develops with a brand tends to become emotional. This is because a brand has the power to tap into one's emotions. This is especially when it has had a history of living up to your expectations. Consistency is one of the main keys then for emotional branding to take place. To begin with, it is a primary key to first of all to keep a consumer interested in a particular brand. This is perhaps the most logical way to think about the beginning of a consumer loyalty process because a consumer wants something good for the amount s/he spends. A consumer to begin with will not mind spending on something that has quality and consistency. Second to these are aspects like pricing and affordability. Stronger emotional bonds between the brands and the consumers result in brand loyalty but more importantly companies get to retain and acquire customers for the long run. In the battle of survival of the brands this aspect is imperative. Product differentiation through physical qualities is having less and less appeal to the consumer and thereby companies need a better strategy to bridge the communication between the consumer and the brand. Visual effects, brand qualities and packaging no longer work to attract consumers. Companies are realizing that their brands need to delve deeper and connect with the consumer at the emotional level before it can really attract their attention. This is where emotional branding comes in. From Gobe's concept as well as other authors the researcher understands that emotional branding maximizes interactions through strategic value creation based on individual needs and desires. "Emotional branding provides the means and the methodology for connecting products to consumers in the grocery sector in an emotionally profound way" (Gobe 2001). This shift in corporate culture and consumer approach has altered the brand management field. References: Aaker, D. A. (2004). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage, and Clarity. pp 137-140. Aaker, J. (1997), "Dimensions of brand personality", Journal of Marking Research, 34(August): 347-356. Almquist, E., Glynn, S. and Hogan, S. (2004). Building a Brand on the Touchpoints Alreck, P. and Settle, R. (1999). Strategies for building consumer brand preference. Journal of Product and Brand Management, Vol.8, Iss. 2, Pgs 130-144. Arnold, D. (1992). The handbook of brand management. Reading, MA: Addison-Wesley Broniarczyk, S.M Alba, J.W (1994) The Importance of Brand in Brand Extension, Journal of Marketing Research, Vol. 31, pg.214-228. De Chernatony, L. (2001) From Brand Vision to Brand Evaluation: Strategically Building and Sustaining Brands, London: Butterworth-Heinemann. Pp 3 & 4 De Chernatony, L. (2001). From Brand Vision to Brand Evaluation: The Strategic Process of Growing and Strengthening Brands. Published by Elsevier De Chernatony, L. and F. Dall'Olmo Riley (1998) Modelling the components of a brand, European Journal of Marketing, Vol.32, No.11/12, pp.1074-1090. De Chernatony, L. and F. Dall'Olmo Riley (1999), Experts' views about defining services brands and the principles of services branding, Journal of Business Research, Vol 46, No 2, pp 181-192. Gobe, M. (2001) Emotional Branding: The New Paradigm for Connecting Brands to People, New York: Allworth Press. Hart, S. & Murphy, J. (1998). Brands: The New Wealth Creators. New York: New York University Press, pp. 1-12. Holt, D. (2004). How Brands Become Icons: The Principles of Cultural Branding, Harvard Business School Press pp 132-135 Kapferer (1998) qtd in Mockler, R. J. 2002. Multinational Strategic Management: An Integrative Entrepreneurial Context-Specfic Process Kapferer, J. N. (1992). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. Les Editions d'organization Kapferer, J. N. (2003). Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity. Published by Kogan Page. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity, Vol. 57, Iss. 1, pg.2. Keller, K.L, (2000). The Brand Report Card. Harvard Business Review, 78(1) (January-Februaury): 3-10 Keller, Kevin Lane (1998), "Strategic Brand Management", New Jersey, Prentice Hall. Kotler, P. and Armstrong, G., (1996). The Principles of Marketing, 7th edition, Prentice Hall. Kotler, P. et al. (1999) Principles of Marketing, 2nd Edition, Europe: Prentice Hall. Pp 23-27. Rooney,J.(1995). Branding: a trend for today and tomorrow, Journal of Product and Brand Management, Vol.4, Iss 4, Pgs 48-55. Underhill, P. (1999). Why we buy: The science of shopping. New York: Touchstone. Van Gelder, S. (2002) Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures and Markets, London: Kogan Page Ltd. Wheeler, Alina R. (2003) The Designing Brand Identity: A Complete Guide to Creating, Building, and Maintaining Strong Brands: John Wiley & Sons Inc Appendix: Survey Age group surveyed: 20 -45yrs Participants: Grocery Sector Consumers 50 Participants Participants of this survey were asked to consider any product they use from the grocery sector, and were told to keep it anonymous. All answers obtained were based on the particular brands that participants kept in view. 1. Generally, do you feel confident about the products you buy that are produced by under particular names YES/NO 2. Did you choose your selected brand on your own YES/NO 3. Did someone refer you to your selected brand YES/NO 4. Would you want to switch to a better brand YES/NO 5. Do you think that there are risks involved if you want to switch your brands over YES/NO 6. Are you in favor of readily surrendering your selected brand for another one just launched in the grocery market YES/NO 7. Does the logo or impression of your brand make you feel excited or pleased YES/NO 8. Do the colors in your brand logo fascinate you YES/NO 9. Do you feel confident or safer using the brand you do YES/NO 10. Would you welcome more information about your product YES/NO Answers: 1. Yes: 31 No: 15 No Answer: 04 2. Yes: 35 No: 15 No Answer: 00 3. Yes: 12 No: 35 No Answer: 03 4. Yes: 16 No: 28 No Answer: 06 5. Yes: 10 No: 24 No Answer: 16 6. Yes: 18 No: 28 No Answer: 04 7. Yes: 25 No: 15 No Answer: 10 8. Yes: 40 No: 02 No Answer: 08 9. Yes: 35 No: 08 No Answer: 07 10. Yes: 24 No: 22 No Answer: 04 Read More