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CONSUMER BEHAVIOR AND THE
INFLUENCE OF BRANDS
• Think of an important purchasing decision
you have made
• What are some of the thoughts you have had
following your purc...
Decision Processing
WHAT'S IN A NAME

If Shakespeare were writing today, he probably would leave out the lines:
"What's in a name? That which ...
IS THIS PERCEPTION OF BRANDING
AND CONSUMER BEHAVIOR RIGHT

The Answer is No
A brand is more than a name - it is the sum t...
HOW DOES BRANDING HELP
PURCHASE DECISIONS
Branding on packaging acts as an important cue to guide
consumer choice in the r...
SOME EXAMPLES OF REMARKABLE
BRANDING ON PACKAGING
THE IMPACT OF REDUCED BRANDING
ON CONSUMER CHOICE.

Reducing the branding on packaging can influence
consumer behavior by
...
THE IMPACT OF COPYCAT BRANDING
ON CONSUMER CHOICE.

Copycat branding can influence consumer choice.
There is an unmistakab...
CLUTTERED RETAIL ENVIRONMENT

In today's cluttered retail environment, consumers are overwhelmed with
choice.

In order to...
PSYCHOLOGICAL MECHANISMS THAT
GUIDE CUSTOMERS’ CHOICES
Different types of branding practices can effect consumers choices ...
BRANDING INCREASES PRODUCT
KNOWLEDGE AND HELPS IN BUYING
DECISIONS
Brand image: defined by entire array of associations ac...
PRODUCT KNOWLEDGE

Image analysis: involves examining the current set of brand
associations that exist in the marketplace
...
BRANDING GOES A LONG WAY IN
BUILDING PRODUCTS
Every ad contributes to make the brand what it is in the minds of the
consum...
BRAND CHALLENGES IN A CHANGING
WORLD
Brand management is as difficult as ever
Savvy consumers
Increased competition
Decrea...
BRANDING IS BECOMING IMPORTANT
Brands are important as ever Why?
Consumer need for simplification

Consumer need for risk ...
RELATIONSHIP BETWEEN BRANDS AND
THE CONSUMER
It is important for the potential consumers to be aware of a product
so that ...
Three Models of Advertising Effect
Hierarchy of
Effects Model

AIDA Model
Perception

Key Advertising
Effects Model

Atten...
THE AFFECTIVE OR EMOTIONAL
RESPONSE
• Mirrors a
person’s
feelings about
something
• Stimulates
wants
• Touches the
emotion...
WHY CELEBRITY ENDORSEMENTS
They motivate consumers
They increase awareness
They create positive feelings towards brands, c...
INDIAN CONSUMER MENTALITY

They look up to certain public faces and aspire to be one among them
Brand Ambassadors connect ...
SIX USES OF CELEBRITY ENDORSEMENT
Establishes Credibility
Attracts Attention
Associative Benefit
Psychographic Connect
Dem...
BRANDING WITH CONTEMPORARY
RELEVANCE

Sometimes Brands leverage contemporary events to make a
connect with the consumer

I...
CUSTOMER-BASED BRAND EQUITY
MODEL
Basic premise:
Power of a brand resides in the minds of customers
Challenge is to ensure...
IS THE CUSTOMER
REALLY THE KING
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
Consumer behavior and the influence of brands
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Consumer behavior and the influence of brands

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Consumer behavior and the influence of brands

  1. 1. CONSUMER BEHAVIOR AND THE INFLUENCE OF BRANDS
  2. 2. • Think of an important purchasing decision you have made • What are some of the thoughts you have had following your purchase? Any regrets? • What has influenced those thoughts? • How have you dealt with the discomfort? • How has the company anticipated or dealt with your discomfort?
  3. 3. Decision Processing
  4. 4. WHAT'S IN A NAME If Shakespeare were writing today, he probably would leave out the lines: "What's in a name? That which we call a rose / By any other name would smell as sweet.“ Why? Because studies have shown that, in all probability, sticking that rose in a Coca-Cola can or a MacDonald's wrapper would really make people perceive it as smelling that much sweeter.
  5. 5. IS THIS PERCEPTION OF BRANDING AND CONSUMER BEHAVIOR RIGHT The Answer is No A brand is more than a name - it is the sum total of a consumer's experiences with a recognizable product - and it is powerful.
  6. 6. HOW DOES BRANDING HELP PURCHASE DECISIONS Branding on packaging acts as an important cue to guide consumer choice in the retail environment. From a psychological perspective, branding on packaging serves two important purposes, crucial to decision making: 1) It guides consumers' attention, drawing attention to certain brands. 2) It allows consumers to recognize and find familiar brands.
  7. 7. SOME EXAMPLES OF REMARKABLE BRANDING ON PACKAGING
  8. 8. THE IMPACT OF REDUCED BRANDING ON CONSUMER CHOICE. Reducing the branding on packaging can influence consumer behavior by Reducing attention to and recognition of certain brands. Strong evidence from the recognition data suggested that reducing the size of a logo on packaging impairs consumers' ability to recognize and find a brand they are looking for.
  9. 9. THE IMPACT OF COPYCAT BRANDING ON CONSUMER CHOICE. Copycat branding can influence consumer choice. There is an unmistakable impact of perceptually similar (copycat) brands on an established brand. In cases where an established brand was displayed alongside a copycat supermarket brand, participants were slower and more inaccurate in identifying the established brand.
  10. 10. CLUTTERED RETAIL ENVIRONMENT In today's cluttered retail environment, consumers are overwhelmed with choice. In order to make such fast decisions, consumers need to use mental shortcuts, or heuristics, to guide their choices. Perhaps the most powerful mental shortcut available to the consumer is branding. Branding on packaging allows us to quickly and efficiently select from a huge array of products.
  11. 11. PSYCHOLOGICAL MECHANISMS THAT GUIDE CUSTOMERS’ CHOICES Different types of branding practices can effect consumers choices in a number of different ways. First, branding can influence whether consumers notice a product or not, that is, how much attention is paid to a product. Second, branding can influence whether and how quickly consumers recognize a product. This recognition and subsequent memory retrieval then have a knock-on effect on how consumers feel about that product. Branding ultimately works as a signal. It allows consumers to quickly recognize a product as one they are familiar with or one they like. It acts as a memory cue, allowing consumers to retrieve relevant information from memory.
  12. 12. BRANDING INCREASES PRODUCT KNOWLEDGE AND HELPS IN BUYING DECISIONS Brand image: defined by entire array of associations activated from memory when consumers think about a brand May involve product attributes and associations May also include endorsers, ad campaigns, symbols, product slogans, etc.
  13. 13. PRODUCT KNOWLEDGE Image analysis: involves examining the current set of brand associations that exist in the marketplace Identify attributes and associations that come to mind about the brand Assess strengths of associations Examine what an association represents in the consumer’s psyche
  14. 14. BRANDING GOES A LONG WAY IN BUILDING PRODUCTS Every ad contributes to make the brand what it is in the minds of the consumer – David Ogilvy A company’s brand is the primary source of its competitive advantage and is a very valuable strategic asset – David Aaker It Emotional bond with the customer It Generates relationships measurably stronger than ordinary brands
  15. 15. BRAND CHALLENGES IN A CHANGING WORLD Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios
  16. 16. BRANDING IS BECOMING IMPORTANT Brands are important as ever Why? Consumer need for simplification Consumer need for risk reduction In this difficult environment, marketers must have a keen understanding of: Customers Brands The relationship between the two
  17. 17. RELATIONSHIP BETWEEN BRANDS AND THE CONSUMER It is important for the potential consumers to be aware of a product so that it can become one of the purchasing choices. A product needs to enter the awareness set before it comes to the consideration set If Manufacturers learn how to read their consumers, they can influence their purchasing decisions. And this is exactly what they do by branding a product and working towards its selling power. A brand allows organizations to differentiate their business from their competitors. But more importantly, brands help to motivate customer loyalty.
  18. 18. Three Models of Advertising Effect Hierarchy of Effects Model AIDA Model Perception Key Advertising Effects Model Attention Cognition Think Association Interest Affective Response Feel Desire Persuasion Do Action Behavior
  19. 19. THE AFFECTIVE OR EMOTIONAL RESPONSE • Mirrors a person’s feelings about something • Stimulates wants • Touches the emotions • Creates feelings Wants • Influenced more by emotion or desire • Desire is based on wishes, longings, and cravings Emotions • Agitates passions or feelings
  20. 20. WHY CELEBRITY ENDORSEMENTS They motivate consumers They increase awareness They create positive feelings towards brands, connect user to brand They are used as fire fighters They provide credibility that reinforces consumer confidence in brands. They also act as trendsetters in categories such as fashion, music, entertainment watches and mobiles. (Eg: Swatch watch and Dev Anand’s hat.)
  21. 21. INDIAN CONSUMER MENTALITY They look up to certain public faces and aspire to be one among them Brand Ambassadors connect with a sense of attachment They give Word of Mouth opinions to the Indian consumers
  22. 22. SIX USES OF CELEBRITY ENDORSEMENT Establishes Credibility Attracts Attention Associative Benefit Psychographic Connect Demographic Connect Mass Appeal
  23. 23. BRANDING WITH CONTEMPORARY RELEVANCE Sometimes Brands leverage contemporary events to make a connect with the consumer It could be something to do with sports, politics or even a scientific invention that could change the way people look at the world It ultimately helps Brand recall and facilitates purchase
  24. 24. CUSTOMER-BASED BRAND EQUITY MODEL Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes
  25. 25. IS THE CUSTOMER REALLY THE KING

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