Consumer Behavior Theory and Brand Development - Coursework Example

Consumer Behavior Theory and Brand Development inserts his/her s Consumer behavior is strongly and directly related tothe notion of brand development and management. Considering that brands reflect the perceptions of consumers and attempt to fulfill consumer needs, it is not surprising that the two work in harmony. The concepts of brand awareness, brand equity, consumer research, brand loyalty as well as brand added value are all linked with the Black Box theory of Consumer Behavior. This paper, therefore, explores the link between brand management/development and consumer behavior in the light of the Black Box model. The process of brand development is best described as one that begins with the identification of target market and its needs as well as the development of brand personality, promise, persona and competitors’ analysis (Smith & Zook, 2011). Once the concept is generated, it is then developed and finally executed by employing personnel (Smith & Zook, 2011). This may require frequently re-visiting the black-box model of consumer behavior which describes the role of the environment, buyer characteristics and stimuli in shaping consumer behavior. Powerful brands are often built on concepts that are highlighted by the black box. For instance, one of the authors describes how an environmentally-conscious company ties customer psyche and emotions with recycling to create a truly recycled product that customers can touch or feel themselves. The idea or concept was, therefore, generated from buyer characteristics and environmental stimuli. One such example is of innovative brands such as Apple’s iPod and iTunes which have been developed keeping in view an external fit with the technological environment. One of Apple’s most innovative product- iPod, succeeded largely because the product was introduced once the broadband technology necessary to support transfer of music files was in place (Allen, 2012) . This concept was enlarged by the introduction of the Apple iTunes store and the compatibility of this device with personal computers (Park, 2011). Brands are deeply rooted in the personalities of their customers to the extent that brand personalities have come to be defined as having human traits. While human personality has been defined as the set of emotional and cognitive traits that shape human behavior and reflect customers’ adaptation to the environment, brand personality has been defined as the set of “human characteristics” that may be associated with the brand (Tuominen, 1999). For instance, Marlboro can be identified as aggressive, crude male personality whereas Coca Cola can be imagined as a flamboyant, exuberant individual. Similarly, most companies aim at developing brand loyalty for their brands to ensure commitment and repeat purchases of their brand vis-à-vis competitors’ brands. While price may be a basis for differentiation, non-price differentiation largely involves playing with the customers’ minds or the buyer black box. For instance, keeping in view the change in customers’ attitudes in favor of charitable organizations and companies that practice corporate social responsibility, Energizer batteries in the U.K has started devoting a certain amount of purchases to charities (Hoyer, MacInnis, & Pieters, 2013). Perceptual mapping or positioning the brand plays a key role here as this captures the unique place that the brand has occupied in customers’ mind vis-à-vis competitors’ brands. Brand positioning, therefore, is largely based on the psychological aspects of consumer behavior. For instance, Southwest Airlines has positioned itself as a low-price high quality airline with exceptional customer service. This has been done keeping in view the needs of segments of customers who would rather pay less for a no-frills airline service rather than paying more for meals. At the very heart of most branding efforts is brand identity which involves the effort to develop brand awareness or the ability of customers to recall the brand. This generally pertains to developing customers’ understanding of the product category where the brand competes along with an understanding of which needs are satisfied by the brand (East, Wright, & Vanhuele, 2013). Therefore, the Buyer’s Black Box which highlights satisfaction of customers’ needs is essential to the formation of a brand with high brand awareness. This has been captured successfully by brands such as Apple in its iPhone which has been associated very well with the product category of smartphones. Similarly, consumers may recall FedEx when they require a courier service (East, Wright, & Vanhuele, 2013). Therefore, the product category as well as the customers’ “needs” strongly aid recall of the brand. Furthermore, authors such as Kelvin Lane Keller have highlighted the concept of brand equity based on customer theory. Brand equity has generally been described as the set of outcomes that are uniquely attributable to the brand name and image (Keller, 1993). Customer-based brand equity has been best described by Keller as the differential effect that results from consumers’ knowledge of the brand that results in varying responses towards the marketing of the brand. In other words, it can be explained as the customers’ response towards an element of marketing mix towards the brand versus customers’ response towards the same element for an unbranded product of similar nature (Keller, 1993).. In this case, marketing stimuli (in the form of marketing mix), an element of the Black Box theory of consumer behavior, play a role in shaping brand equity. Customer-based brand equity, therefore, results from the fundamental associations (emotional, cognitive or other) that the consumer has with the brand. Furthermore, customer-based brand equity is closely tied with the concept of “learning” in the Buyer’s Black Box as highlighted by consumer behavior theory. This is because any marketing activity conducted by the company will ultimately affect brand knowledge and, in turn, affect consumer’s decision to purchase (measured through sales) (Keller, 1993). Additionally, the firm’s marketing activities in the short-run greatly influence customers’ memory and knowledge of the brand which in turn determines the usefulness of long-term marketing efforts (Keller, 1993). Therefore, brand managers must incorporate the impact that their marketing activities have on consumer learning which ultimately impacts customers’ brand recall and brand knowledge. Branding which attempts to enhance customers’ memory of the product often involves developing a brand that becomes associated with the product category to which it belongs. For instance, Pepsi’s strong association with the product category- soft drinks may drive customers towards purchasing the brand. Furthermore, the need to have a soft drink may lead to customers recalling the sugar content of Pepsi or even the advertising or other marketing messages associated with it (Keller, 1993). Therefore, not only does strong branding result in appropriate consumer behavior (to purchase the brand) but is also affected by various elements in the Buyer’s Black Box such as needs, attitudes etc. It is also important to note how consumer research attempts to impact the process of positioning the brand. Successful positioning of most brands requires the generation of consumer insights. Considering that brands occupy unique places in the “minds of consumers”, it is at the heart of positioning to determine what place the brand acquires in the consumer’s mind vis-à-vis that of competitor’s (VanAuken, 2012). This helps determine the value proposition or the unique selling point that the brand will offer. Therefore, tapping into consumers’ minds and analyzing their perceptions requires thorough consumer research which often encapsulates the power of qualitative research through word associations, thematic apperception tests and picture associations. Therefore, gathering information on consumer needs and then incorporating those needs into the actual product or brand reduces the chances of product failure. Finally, the concept value-added branding revolves around the development of functional values or features in order to differentiate brands from competitor’s brands and counterfeit products. Considering the significance of added value, it is no wonder that “semiotics” have acquired a significant position in brand management. Semiotic analysis has been used to align the brand’s meaning and positioning with the cultural, social, personal needs and expectations of consumers (Oswal, 2012). For instance, if Volkswagen were to produce a “green” car brand for catering to environmentally conscious customers it may have to lose the “cute car” image attached with Beetle (Oswal, 2012). However, if a “mutual code” could be developed then neither of the signs would be compromised (Oswal, 2012).. Therefore, brands must be thought of as systems governed by signs and symbols (semiotics) that convey meaning. For instance, Mc Donald’s golden arches can be viewed as “signs” that “hungry” consumers can identify at a distance to satisfy their hunger cravings (Oswal, 2012). To conclude, consumer research reflects how brands are a reflection of the consumers who buy it. Brands are often associated with the personality of consumers who possess them. Furthermore, achieving a unique position in the market requires brands to be developed around a set of key attributes that concern customers (perceptual mapping). Most importantly, however, is the notion of customer-based brand equity which requires brands to aid recall and to enable customers to associate the product category with the brand. Successful brands also ensure brand loyalty by engaging in non-price differentiation keeping in view the environmental stimuli. Finally, adding value through semiotics as well as creating brand awareness are closely rooted in linking the brand with customers’ needs. References Allen, F. E. (2012, May 3). Why Great Innovations Fail: Its All in the Ecosystem. Retrieved from Forbes: http://www.forbes.com/sites/frederickallen/2012/03/05/why-great-innovations-fail-its-their-ecosystem/ East, R., Wright, M., & Vanhuele, M. (2013). Consumer Behaviour: Applications in Marketing. London: SAGE. Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2013). Consumer Behavior. Mason: South-Western Cengage. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 1-22. Oswal, L. R. (2012). Marketing Semiotics: Signs, Strategies, and Brand Value. New York: Oxford University Press. Park, S. (2011). The effects of entry timing and business model innovation on performance: the case of the global MP3 player market. Asian Journal of Technology, 133-147. Smith, P. R., & Zook, Z. (2011). Marketing Communications: Integrating Offline and Online with Social Media. London: Kogan Page Limited. Tuominen, P. (1999). Managing Brand Equity. The Finnish Journal of Business Economics, 65-100. VanAuken, B. (2012, February 03). Brand Positioning With Consumer Research. Retrieved from Branding Strategy Insider: http://www.brandingstrategyinsider.com/2012/02/brand-positioning-with-consumer-research.html#.UpsKTNKmiiQ Read More