Consumer Behaviour and Branding: A Comparative Analysis of Apple and Samsung - Research Proposal Example

CONSUMER BEHAVIOUR AND BRANDING: A COMPARATIVE ANALYSIS OF APPLE AND SAMSUNG Table of Contents Table of Contents 2 0 Introduction: 3 2.0 LiteratureReview: 3 2.1 Theories of Consumer Behaviour: 4 2.2 Theories of Branding and Brand Development: 5 3.0 Methodical Choice Justifications: 6 4.0 Draft of the Research Instrument: 9 5.0 Expected Findings: 10 Reference List: 11 1.0 Introduction: Brands as termed by Elliott and Percy (2007), explains the value of a company for their target customers where value signifies the bond between trust and loyalty of the consumers. Apart from this psychological measurement of brand, brand value is also measured in financial terms which reflect the position of various global firms in the business process. According to the ranking process of American magazine Forbes, Apple Inc has been ranked as the world’s foremost brand with a value of $124.2 billion in 2014 (Forbes, 2014). Further clarifying the definition of brand provided by Elliott and Percy (2007), Dawar and Philip (2008) stated that brand reflects the relationship between consumers and a company. Relating to consumer behaviour, Keller, Parameswaran and Jacob (2011) mentioned that brand reflects the experience of the customers with any company which includes pre-sales, sales and post-sales services of a company. This research aims to understand the relationship between branding process and the consumer behaviour by considering the case of technology giants and arch rivals Apple Inc of America and Samsung Corp. of Korea. 2.0 Literature Review: Theories related to consumer behaviour and branding process mostly focused on their individual attributes, stating the influence of branding on consumer behaviour or vice-versa. However, the mutual relationship between both the concerned variables has hardly been reflected. In the contemporary scenario, the growth of the business houses is mostly driven by technological growth and competition (Keller, Parameswaran and Jacob, 2011). Thus, the relationship between consumer behaviour and branding will be analysed by considering the factors influencing consumer decisions and branding process of a business for gathering wide spread understanding of the research arena. 2.1 Theories of Consumer Behaviour: Consumer behaviour is a widely researched topic in the business research arena with numerous outcomes that differ in their viewpoints of explaining the process of purchase decision and it’s after affects on the consumers and the brand. According to Buckingham (2011), consumer behaviour can be reflected in the actions of consumers that fulfils the needs and requirements of individuals or groups by selecting, purchasing, using and disposing or a product, service or idea. Agreeing to this notion, Keller, Parameswaran and Jacob (2011) mentioned that the actions taken by consumers for identifying the necessary products and brands reflects the consumer behaviour. While researchers such as Elliott and Percy (2007), Richardson and Jain (2009) and Dawar and Philip (2008) focused on understanding consumer behaviour by assessing the differences in consumer behaviour and developed behavioural theories such as economic man, behaviourist, cognitive, etc. researchers such as Rennstam (2013) and Kipins et al. (2013) focused on social influence on the consumers and concentrated on theories of perception, exposure and collective consciousness. Behavioural theorists evaluated that man takes actions based on the necessity and ability to support their activities (Keller, Parameswaran and Jacob, 2011). This concept reflected that the decisions of consumers are based on the economic situation. For example, the price of Samsung Smart phones is less in comparison to Apple making it an obvious choice for people who cannot afford Apple phones (Buckingham, 2011). However, Dawar and Philip (2008) argued that behaviour is the outcome of the actions taken on the basis of drives and desires of an individual or group, which may or may not be intentional. This concept is based on the psychodynamic approach and reflects the theories and studies evolved by Sigmund Freud (Besharat, 2010). For instance, Apple as a brand is highly preferable and has a good brand positioning which attracts the consumers towards their products and services (Buckingham, 2011). Conflicting with the behavioural studies, the theory of exposure reflected that the number of options available to consumers influences the choices made by them whereas the theory of collective consciousness reflects the strength of social consciousness among consumer groups and their influence in the consumer decision making process. However, Akgun, Kocoglu and Imamoglu (2013) stated that the theories of socio-cultural influence on consumer decision making and behaviour does not necessarily reflect their relationship with the branding process unlike the behavioural theories. 2.2 Theories of Branding and Brand Development: The process of branding is commonly related with the promotional activities of a business. Knox and Bickerton (2007) segmented the process of branding and promotion by observing the purpose of these business functions. According to Knox and Bickerton (2007), promotional activities of a business is used for enhancing consumer awareness towards a product, service or a firm whereas branding is the process of developing a loyal consumer base and generating goodwill for the business. Branding has been segmented into various aspects such as brand loyalty, value-based brand theory, brand equity, etc in order to understand the influence of branding on consumer decision making process and consumer behaviour. In the words of Kipins et al. (2013), the foremost aim of branding process is to create a place for the concerned firm in the perception of the consumers which is termed as brand positioning or brand perception. Brand perception depends on any particular feature or attribute of a product or the brand. For instance, Knox and Bickerton (2007) observed that the positioning of automobile manufacture Volvo for American consumers is that of safety whereas Lexus is positioned as a luxurious car. Similarly, in context of Apple, the consumer perception is of an ultimate experience whereas for Samsung is positioned as maximum utility. Branding process of business firms depends on how they design their consumer offerings and reflect them to the target audience (Akgun, Kocoglu and Imamoglu, 2013). Besharat (2010) noted that Apple Inc created a phenomenon with their “Think Different” marketing campaign that made the consumers feel special while using their products. This campaign developed a different brand perception altogether as the focus of the marketing process was not the products or services of Apple but they promoted a feeling which reflects the core value of the company. On the other hand, branding focused on products and services are aimed towards knowledge sharing and making direct communication with the consumers for enhancing the quality of the consumer service (Allison, Gualtieri and Craig-Petsinger, 2004). Sunde and Brodie (2008) argued that product or service focused branding does not influence the consumer for long-term loyalty and exposure to other products can change the consumer behaviour in favour of competitor firms. For instance, the branding process of Samsung is focused on the benefits they are providing to the consumers in their products and services. However, Samsung’s market share started falling in the Asian market as new low-end smart phone companies such as Micromax entered the industry (Akgun, Kocoglu and Imamoglu, 2013). It can be assessed that branding process needs to connect with the emotions of the consumers rather than their needs in order to mould the consumer behaviour in their favour. 3.0 Methodical Choice Justifications: The methodological considerations of the researcher have been developed by existing researches made on the selected research field. “Branding Beyond Prejudice: Navigating Multi-Cultural Marketplace for Consumer Well-being” made by Kipins et al. (2013) reflects on how corporate firms are utilising branding practices in multi-cultural markets and directing their brand equity with a focus on consumer well-being. The study has been developed with observational method and considered only secondary data for evaluation of the research problem. The study provides an in-depth explanation of the processes implemented by firms for enhancing their branding activities and aligning the cultural differences among their consumers to build up a shared vision. The aspect of the study also reflected a version of consumer behaviour and changes in it because of cultural influence and also how consumers from different cultures forms the perception of a firm based on their branding process. “Branding in Sacrificial Mode: A Study of the Consumptive Side of Brand Value Production” by Rennstam (2013) reflected the various considerations made by the consumers while following any particular brand while making purchase decisions. Various aspects of branding incorporated by business firms for internal and external communication in order to enhance their brand equity has been highlighted in the study. The research is based on ethnographical design and included a mixed methodology. The study also reflects a strong amalgamation of primary and secondary sources which have been aligned with the research problem. This research reflects a view of branding a thought towards a mass consumer group based on a case study. The ability of the business firms to influence large consumers and develop their brand equity in a wider prospect can be studied from this research. “How co-branding versus brand extensions drive consumers’ evaluations of new products: A Brand Equity Approach” by Besharat (2010) has specifically focused on the branding options utilised by the business houses and its influence on the consumers’ analysis of the products. The study is based on the process of brand equity development of the business firms by urging consumers towards their products and services. This research is a quantitative study that includes primary data for assessing the influence of branding and co-branding processes on the consumers. The participants of the research were mainly students who were questioned with a survey questionnaire. This research has been selected as the scope of study and the outcome is not biased as per the research paradigms used. “An Emerging Consumer Experience: Emotional Branding” by Akgun, Kocoglu and Imamoglu (2013) is based on the emotional aspects considered in the branding process of the corporate firms so that they can connect with the consumers not only in relation to the product but also with a psychological content. The research not only explains the branding process of the firms but also examines the changes in the consumer behaviour when approached with a deeper content related to their sentiments. The research is an informal study and only focuses on the aspect of emotional branding process which is one of most commonly used tools in the brand development process. The relationship between the psychological wants of the consumers and the ability of the firms to formulate a similar concept which can connect with an enhanced influence level was the primary problem studied. “Are young teens influenced by increased product description detail and branding during consumer testing?” by Allison, Gualtieri and Craig-Petsinger (2004) mainly focused on the youths and reflects the behaviour of a specific consumer group. With technology and changing generations, the youths in the contemporary scenario are more informed and knowledgeable consumer group. The research processes has been conducted on teenagers and youths, collecting primary data and the respondents were selected with purposive sampling. The research has also included a thorough discussion of the findings of the study which are qualitative in nature. The above mentioned articles have been selected considering their relevancy to the research topic of the study. Other criteria considered for selection of articles include updated data, proper explanation and presentation of research findings, validity and authenticated sources. 4.0 Draft of the Research Instrument: The study is descriptive in nature and will be based on secondary data only. The researcher has considered secondary usage because of the wide database available for understanding the underlying concepts and theories related to consumer behaviour and branding process. However, inclusion of secondary data will also be supported with documents and other important knowledge bases collected from the authenticated sources. Secondary data sources will also be helpful for the researcher for gathering knowledge regarding the historical development of the concepts of consumer behaviour and branding. The articles selected for conducting the study are mainly from online databases such as EBSCO host, Science Direct, Emerald Insight, etc. Other offline means considered for gathering secondary data include business reports, University library. The data analysis process of the research will be mainly observational and will be supported with data gathered from the performance of both the companies. The researcher will develop the process of analysis supported by secondary that will evaluate and examine the problem statement framed in the introductory part of the literature review of the study. The study will be conducted considering all the ethical boundaries as provided by the University. 5.0 Expected Findings: The researcher findings are expected to highlight the influence of branding process on the consumer behaviour and how will they develop the organisational relationship with the consumers for ensuring a sustainable consumer loyalty for the concerned firms. The researcher will also try to identify the various emotional and economic factors that influence consumer behaviour or may hamper the branding effects of the firm. In short, it can be stated that the research scope encompasses the relationship between branding and consumer behaviour as well as it reflects the various factors that influences both variables included in the subject topic. Reference List: Akgun, A.E., Kocoglu, I. and Imamoglu, S.Z., 2013. An Emerging Consumer Experience: Emotional Branding. Report Submitted from 9th International Strategic Management Conference, pp - 503- 508. Allison, A, A., Gualtieri, T. and Crag-PetSinger, D., 2004. Are young teens influenced by increased product description detail and branding during consumer testing? Food Quality and Preference, 15, pp. 819-829. Besharat, Al., 2010. How co-branding versus brand extensions drive consumers evaluations of new products: A brand equity approach, Industrial Marketing Management, 39(8), pp. 1240-1249. Buckingham, I. P., 2011. Brand Champions: How Superheroes Bring Brands to Life. 3rd ed. London: Harvester Wheatsheaf. Dawar, N. and Philip, P., 2008. Marketing Universals: Consumers Use of Brand Name, Price, Physical Appearance, and Retailer Reputation as Signals of Product Quality. Journal of Marketing, 58, pp.81-95. Elliott, R. and Percy, L., 2007. Strategic Brand Management. 4th ed. Huntington, New York: Free Press. Forbes, 2014. Apple, Microsoft And Google Are Worlds Most Valuable Brands. [Online] Available at: [Accessed 1st December 2014]. Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 4th ed. New Jersey: Pearson Education. Kipins, E., et al. 2013. Branding beyond prejudice: Navigating multicultural marketplaces for consumer well-being. Journal of Business Research, 66, pp. 1186-1194. Knox, S. and Bickerton, D., 2007. The Six Conventions of Corporate Branding. European Journal of Marketing, 37(8), pp.998-1016. Rennstam, J., 2013. Branding in the sacrificial mode – A study of the consumptive side of brand value production. Scandinavian Journal of Management, 29(2), pp 123-134. Richardson, P. S. and Jain, A., 2009. Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality, Journal of Marketing, 58, pp.28-30. Sunde, L. and Brodie, R. J., 2008. Consumer Evaluations of Brand Extensions: Further Empirical Evidence. International Journal of Research in Marketing, 10(1), pp. 47-53. Read More