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1. IMPACT OF BRAND PREFERENCE ON CONSUMERS IN UK

2. 1. Literature Review
1.1 Introduction
The preference of consumer brand is an important step for understanding the behaviour
related to the choice of consumers. Hence, this particular step has been receiving huge
attention from the marketers. The preferences of brand contribute in revealing the different
categories related to attributes that are being possessed by the brand that are important for
strengthening the position as well as increasing the share within the market. In addition to
this, it contributes in the formation of a crucial input in the development of a successful
strategy of brand within the organization that provides an insight for the development of the
product. However, the shift being made towards the marketing of experience results in
broadening the role being played by the brand from a number of different combinations
related to attributes towards the experiences. The marketing of experience also has the
tendency of considering both types of assumptions related to the behaviour of consumer that
can be rational as well as irrational. The advancement of technology contributes to increase
the similarities that lie amongst the attributes of brands and the commoditisation of product.
In a consequent manner, preferences of customers cannot be shaped by them amongst the
brands that utilize only the rational attributes. The brands are being approached by the
customers that contributes in the creation of experience that intrigue them in a manner that is
emotional, creative as well as sensorial. The competitiveness of the companies in this type of
a market has hence, ended up becoming extremely difficult. There is a need to build the
advantage of competition for their survival by the delivery of experiences that are
memorable. This results in influencing the brand preferences of the customers and in a
consequent manner contributes in stimulating the purchase decisions of the customers.
In the literature of marketing, the traditional forms of models are known to be uni-
dimensional and address the preferences of brand by the cognitive judgement of the customer
related to the attributes of brand on the basis of rationality. The role related to experience is
restricted to the effect of the type to shift the level of preferences. Majority of the previous
studies conducted are partial and create a focus on a single or two antecedents related to the
preferences of brand. Apart from these specific limitations, there has been ignorance of
consequences within the study that contribute in the determination of the decision related to
the purchases being made by the customers.
The level of familiarity amongst the consumers regarding the availability and life of a product
provided by a particular brand is referred to as awareness of brand. The concept of brand
awareness can be referred to as the consumer being so familiar about a particular brand he or
she prefers that if a particular category of a product or choosing certain brand is mentioned,
then the preferable brand strikes in the mind of the consumer (Morris et al, 2009).
Preferences of consumers can be defined as personal tastes of individuals that can be
understood by the utility of particular goods.
According to Morris et al, 2009, brand preference has a close relation with consumer
preferences as well as brand awareness. This is due to the fact that if a consumer is aware
about a particular brand and these consumers often prefer purchasing and using it, it can be
referred to as the concept of brand preferences. This relation along with the concept of brand
preference shall be studied in detail.

3. Studies in the past over the preferences on brands have been divided into 2 important
classifications (Schmitt, 2009). A number of researchers have conducted the study by
analysing the factors related to customers that may cause an impact. This consideration had
its focus over the culture impact, society impact, psychology impact and factors of
personalities of the customers (Hsee et al, 2009). Of this group, the main finding illustrated
that preferences of brands can lead towards an alteration being experienced in the style of life
of a customer. The traits of personality of a customer and the beliefs of the customer are
important preferences of brand predicators.
According to Shamoon, et al, (2011), the business of a product and service associated with a
company has an influence on the customers who decide to buy the product or the service.
However, the term brand experience as subjective internal consumer behaviour primarily
evolved through brand associated stimuli that are an aspect of a brand’s environment,
communication, packaging, identity, and design. The formation of brand preference is
considered to be a cumulative process of learning which is primarily evoked with time,
especially in the situation where brand experience is the main source of learning (Shamoon et
al, 2011). Many researchers state that each of the elements of brand experience offers a
primary way in changing the buying decision of a customer and hence plays a crucial role in
the development and determination of the brand preference of different consumers.
According to Armstrong, (2011), the business of Reebok considers the brand associations as
the information, which includes benefits of consuming a particular brand and attributes of a
brand. The same is closely associated with the memory nodes of an individual. According to
the HAM or human associative theory, brand associations can be developed by either indirect
or direct experiences of consumers (Armstrong 2011). On contrary to this, entrepreneurs
argue that brand associations offer people with significant reasons to develop preference for
the brand and buy the products of that particular brand. Brand associations help the people to
retrieve and process information and lead to attainment of positive benefits (Brakus et al.
2009). Thus, brand experience can be considered as a key source of information that the
people have regarding a particular brand, which, in turn, develop brand preferences.
Brand has been identified as a power tool for the attraction of maximum number of customer
for purchasing specific products. In a nation that is highly developed in all dimensions, such
as the United Kingdom, the industry of sports apparel and footwear is one of the most
significant industry that acts as a major contribution within the economy in a substantial
manner. As the decision making of consumers play a major role within the market, it is
crucial for studying how the choices are made by the consumers when these apparels and
accessories are purchased for the evaluation of the impact towards a specific brand within the
market. This is particularly due to the fact that there are a number of other options available
and tough competitions within the industry.
1.2 Marketing and Branding:
Malik et al (2013) believe that branding and advertising are great tools by manufacturers to
increase buying of their products. (Malik et al, 2013) Although marketing may essentially be
described as one that amalgamates a customer’s satisfaction with the company’s overall
objectives, branding is essentially a tool used by the companies to enhance their marketing
strategies and objectives. (Kotler et al, 2009) Consumers are more than happy to pay extra for
their favourite brands, even if other brands offer a similar experience at a cheaper rate.

4. (Bronnenberg Dube' & Gentzkow, 2010). According to Dikempe et al (1997), most
consumers have their chosen brand when it comes to beer, aerated drinks and margarine.
(Bronnenberg Dube' & Gentzkow, 2010). Ling et al (2002) further adds that customers pay a
large premium for their desired brand of medicines, even though the same compounds may
be offered by other pharmaceutical companies at a comparatively lower price. (Bronnenberg
Dube' & Gentzkow, 2010)
Concept of Brand Equity and measurement:
The writing on brand equity, albeit significant, it is to a great extent divided and uncertain.
(Christodoulides & de Chernatony, 2009)
Marketers persistently try to support the effect of marketing exercises and this has restored
enthusiasm toward measures of marketing execution. (Christodoulides & de Chernatony,
2009) The Marketing Science Institute has demonstratively set responsibility and rate of
profitability of marketing expenditure at the highest point of its examination needs for 2008-
10. (Christodoulides & de Chernatony, 2009) Financial measures, for example, deals and
benefit give just halfway pointers of marketing execution because of their recorded
introduction and commonly transient skyline. (Christodoulides & de Chernatony, 2009)
Elusive, market-based assets then again give a better understanding of marketing execution,
accommodating short- and long haul execution and additionally spanning marketing and
shareholder value. (Christodoulides & de Chernatony, 2009).
Whilst competitors can copy financial and physical assets, intangible assets speak to a more
supportable advantage Brand equity is a key marketing resource which can incite an
interesting and invited relationship separating the bonds between the firm and its stakeholders
(Capron and Hulland 1999; Hunt and Morgan 1995 cited by (Christodoulides & de
Chernatony, 2009)) and supporting long haul purchasing conduct. Understanding the
measurements of brand equity, at that point contributing to develop this impalpable resource
raises aggressive boundaries and drives brand riches (Yoo, Donthu and Lee 2000 cited by
(Christodoulides & de Chernatony, 2009)). For firms, developing brand equity is a key
destination attained through picking up more good affiliations and emotions among target
purchasers (Falkenberg 1996 cited by (Christodoulides & de Chernatony, 2009)). Past
examination built a positive impact of brand equity on: purchaser inclination and buy
expectation (Cobb-Walgren, Ruble, and Donthu 1995 cited by (Christodoulides & de
Chernatony, 2009)); market offer (Agarwal and Rao 1996 cited by (Christodoulides & de
Chernatony, 2009)); purchaser impression of item quality (Dodds, Monroe, and Grewal 1991
cited by (Christodoulides & de Chernatony, 2009)); shareholder value (Kerin and Sethuraman
1998 cited by (Christodoulides & de Chernatony, 2009)); purchaser assessments of brand
augmentations purchasers price sensitivity and versatility to product harm. Throughout the
most recent 15 years, brand equity has ended up more imperative as the way to understanding
the goals, the instruments, and net effect of the all encompassing effect of marketing
(Reynolds and Phillips 2005 cited by (Christodoulides & de Chernatony, 2009)). In this
connection, it is not astonishing that measures catching parts of brand equity have gotten to
be a piece of a set of marketing execution markers (Ambler 2003 cited by (Christodoulides &
de Chernatony, 2009)). The examination of brand equity and its estimation has a wide scope
of followers, both scholastic and expert, that altogether impart what can be portrayed as a
"discovery" introduction (Reynolds and Phillips 2005 cited by (Christodoulides & de

5. Chernatony, 2009)). Proof of the importance of brand equity for the business world is the
way that there is as of now a noteworthy number of counseling firms (e.g. Interbrand, WPP,
Young & Rubicam and Research International), each with their own restrictive routines for
measuring brand equity (Haigh 1999 cited by (Christodoulides & de Chernatony, 2009)). In
setting up the future exploration plan for brand administration, Keller and Lehman (2006)
obviously recognized brand equity and its estimation as a noteworthy exploration subject.
(Christodoulides & de Chernatony, 2009)
1.3 Labelling:
According to Malik et al (2013) people in society are generally extremely concerned with
their status and hence, buy popular and expensive brands to show off that status. (Malik et al,
2013) Branding is an essential tool in the hands of the producers, which, if managed
correctly, can lead to substantial gains. (Malik et al, 2013) It can be equally useful in terms of
attracting new customers as well as retaining old ones. (Malik et al, 2013)
Trademarks, logos and images are all part of labelling, which is an essential component of
branding. It is a great distinguishing factor between one product and the other. (De
Chernatony and Riley, 1998)..Labelling is also part of the brand image. (Tanner & Raymond,
2014) An extensive research by Leighton and Bird (2012) infers that reducing brand value
information on a package has a small effect on the customers’ preferences as well as brand
recognition. (Leighton & Bird, 2012). In a research conducted by London Economics (2012),
they conclude that the packaging imagery helps consumers differentiate between several
brands available in the market. (London Economics,, 2012)
1.4 Customers and Brand Preference in UK:
An online research and survey was conducted by London Economics in 2012 with 3000
consumers as the focus group, across a variety of products, including tobacco products such
as cigarettes. (London Economics,, 2012) The concluded that after removal of the branding
on the packets of cigarettes, customers shifted from the premium brands to cheaper brands.
(London Economics,, 2012). Their deduction falls in line with several other literature
available on branding for example Malik et al (2013), (Bronnenberg Dube' & Gentzkow,
2010) etc. that customers are willing to pay a premium for their favourite brands. If there was
no way to distinguish one brand from the other, with other things remaining the same, the
customers buying preference changed according to the changes in price. (London
Economics,, 2012) It was also found that since price would determine the buying choices of
the consumers, it would lead to a higher consumption of products, especially amongst people
with fewer financial resources. (London Economics,, 2012)
1.4.1 Pioneer Brands in the UK:
It is believed that some brands outsell others in many markets for a continued period of time,
this is attributed to a theory that is based on a clear “first-movers” advantage. (Carpenter and
Nakamoto, 1989; August) Xerox may be the best example to this theory. (Carpenter and
Nakamoto, 1989; August). These first movers are also known as market pioneers. (Carpenter
and Nakamoto, 1989; August). Hallmark too is pioneer in various markets. (Robinson and
Fornell, 1985). Another example of a pioneer brand is DuPont, which is first mover in

6. various markets globally. (Robinson, 1988) Pioneer advantage essentially is carried forward
to several years of market dominance by these brands. (Bowman and Gatignon, 1996) The
concept of Pioneers was first discovered in the US markets. (Alpert and Kamins, 1995)
However, Rettie Hiller & Alpert (n.d) carry out a similar research in the UK markets, with
concentration on pioneer brands, and hypothesise that
1. Consumers often remember the pioneer brand in a certain product segment. (Rettie
Hiller & Alpert, n.d)
2. Consumers will remember the pioneer brand more than even the best selling brand in
the product segment. (Rettie Hiller & Alpert, n.d)
3. Other things remaining the same, consumers have a preference for the pioneer brand.
(Rettie Hiller & Alpert, n.d)
4. A pioneer brands rememberance will have a positive result on the buying preference
of the consumer, although their degree of preference may reduce over a period of
time. (Rettie Hiller & Alpert, n.d)And,
5. Consumers who successfully recall the pioneer brand have purchased it atleast once.
(Rettie Hiller & Alpert, n.d)
Through their research, they successfully infer all five hypotheses to be true. Moreover, in
their second hypothesis, consumers remembered the pioneer brand more than the best
selling brand, even in cases where the pioneer brand was not the top selling brand. (Rettie
Hiller & Alpert, n.d). In UK, the pioneer brand name recall as well as the pioneer brand
name retreival were found to be greater than that in the US. (Comparing (Alpert and
Kamins, 1995) and (Rettie Hiller & Alpert, n.d))
Local Versus International Brands:
Schuiling and Kapferer (2004) contend that local brands' flexibility and better reaction to
nearby needs, e.g. adaptability of valuing method for particular local markets highlighting
a huge distinction to universal brands, which need cozy associations with nearby markets
(Schuiling and Kapferer, 2004 cited by (Burge, 2013)). Their exploration on the
distinctions found that local brands have a larger amount of mindfulness (85%) than
universal brands (73%) connected by the quantity of years nearby brands have been in the
market (Schuiling and Kapferer, 2004: 105 cited by (Burge, 2013)). Their database
uncovered different variables recommending nearby brand advantages, for instance, as
being reliable, dependable, great value, excellent and customary (Table 3 in Schuiling and
Kapferer, 2004: 105 cited by (Burge, 2013)
Local brands can make a brand value framework (Chernatony and Dall'olmo Riley, 1998
cited by (Burge, 2013)) by supporting individual and social values (Engel, 1993;
Reynolds and Gutman, 1988 cited by (Burge, 2013)). Chernatony and Dall'olmo Riley
(1998) contended that Brand Relationship and Brand Personality (Blackston, 1992) were
essential for rehash custom and solid holding, e.g. Cadwaladers, a nearby Welsh case,
give 'different character' and "society" of its terminus (Jones and Jenkins, 2002: 116 cited
by (Burge, 2013)) and help make a more novel offering suggestion (Haven-Tang and
Jones, 2006 cited by (Burge, 2013)).

7. Confirmation exists of group backing for nearby brands to backing, fortify and revitalize
local economy (Boyne, Hall and Williams, 2003 cited by (Burge, 2013)), making local
improvement (Hall, Kirkpatrick and Mitchell, 2005; Steinmetz, 2010 cited by (Burge,
2013)) and counteracting "cloning" (Kelly, 2012 cited by (Burge, 2013)). A careful
investigation by Patterson et al. (2010) highlights local brand control in Australia.
Shutting 75% of Australian Starbucks, Australians kept on remainning unwavering the
their own particular espresso brand Gloria Jeans. (Burge, 2013)
Schuiling and Kapferer (2004) help nearby brands as the main rival, contending the
qualities and attributes of local business have demonstrated prevalent. (Burge, 2013)
They infer that cost is in charge of local disadvantage, with failure to produce economies
of scale. (Burge, 2013) Schuiling and Kapferer (2004) contend that universal brand
improvement advantages from worldwide marketing, e.g. portfolio improvement,
contrasted with nearby brands who need worldwide status. Schuiling and Kapferer (2004)
propose an adjusted blend of local and worldwide brand advancement is key to whole
industry achievement. (Burge, 2013)
1.5 Past researches on Brand perception in UK
1.5.1 Weight Watchers use FlashtalkingWatchers Brand Impact Survey:
The objective of this research was mindful of how brand and DR progressively meet on the
web, Weight Watchers and OMD needed to gauge the adequacy of showcase crusades past
clickthroughs and associations or transformations and complex attribution models. The key
target was to discover a quick, practical approach to quantify the effect of presentation on
buyer inclination utilizing an answer that was not difficult to situated up crosswise over both
automatic and named site stock, giving noteworthy information bits of knowledge to enhance
show investment progressively. The Brand Impact overview got some information about their
inclination between the Weight Watchers eating regimen arrange and contending items, and
the probability of which arrange they would picked. The overview was conveyed over all
distributers as a component of the media purchase. Purchasers were partitioned between the
individuals who had not seen the Weightwatchers promotions and the individuals who had
seen the commercial. The solutions provided in the research included: The online promotion
campaign expanded purchaser affinity to pick Weight Watchers over contending brands by
37% with a 99% factual certainty level in the Survey results. It also exhibited the buyer effect
of presentation promoting past the straightforward click (Flashpoint, 2014) [Appendix: 1]
1.5.2 Followers who see Promoted Tweets more likely to have a brand preferenc:
The consequences of EE's brand study stress the effect that running Promoted Tweets in the
course of events can have and how it can help movement brand observation. (MacMillan,
2013)

8. It additionally echoes late research Twitter UK did with Deloitte, to evaluate the potential
effect Tweets have on deals execution, and with Compete into how Tweets are assuming an
undeniably compelling part concerning customers purchasing tech items. (MacMillan, 2013)
The Deloitte study found that in terms of purchasing feature diversions, for example, Tweets
create solid verbal that specifically affects customer demand. Moreover, positive Tweets
around a brand can impact buy choices. Individuals like to discuss what they've perused on
Twitter, and that discussion specifically impacts what they wind up purchasing when they are
prepared to buy. The Tweets in real life: Mobile/Tech UK study with Compete discovered
those customers who see Tweets are more inclined to visit brand sites, hunt or chase down
item audits to figure out all the more about the brands they saw on Twitter. Not just that: the
exploration found that Twitter clients visit mobile and tech brand sites at a much higher rate
than general web clients – 62% versus 45%. Moreover, it uncovered that introduction to
brand Tweets improved the probability that customers would visit outsider audit destinations,
for example, @cnetuk or @techradar, to discover all the more about the brands or items.
(MacMillan, 2013)
This is the place the numbers truly begin to shoot up. While around 36% of normal web
clients went by outsider survey destinations amid the Christmas shopping season this figure
was 28% higher when it came to Twitter clients. (MacMillan, 2013)
It concluded with some basic tips for achievement:
1. Make captivating and shareable substance – Use feature and pictures and consider silliness
in the event that you need to achieve your crowd with news of new items and brand
declarations. Incorporate connections to let purchasers to take in more. (MacMillan, 2013)
2. Use advanced Tweets in hunt – More than others, Twitter clients like to chase down
insights about items, so verify your Tweets are the ones that they are seeing. (MacMillan,
2013)
3. Use catchphrase focusing in timelines – Consumers like to discuss buys they're planning to
make on Twitter. You can focus on those clients discussing mobile telephones, for example,
specifically and attain fundamentally more elevated amounts of engagement. (MacMillan,
2013)
1.5.3 Consumer Perception to Branded Automobiles (Comparison with Thailand):
With the goal of a near study between Thai and UK extravagance automobiles' customer
discernments, tantamount demands and supplies need to be drawn. (ANURIT NEWMAN &
CHANSARKAR, n.d.) Among the new enlistments of autos in Thailand and the UK between
1995-1997, their business exhibitions demonstrate that Germany is the main manufacturing
nation. This records for the way that an extensive number of German models are foreign
made in Thailand and UK with a perspective of the extravagance auto markets. Audi, BMW,
and Mercedes are the top extravagance marques in both nations. Mercedes autos are more
costly than BMW autos in every section in both nations, yet BMW is more prominent in the
UK, while Mercedes is customarily more prominent in Thailand. From a monetary

9. perspective, ought worse off customers in one of the wealthier UK be ready to purchase
Mercedes as opposed to customers in a poorer nation like Thailand? The out performance of
Mercedes in a littler and poorer market, for example, Thailand may be the aftereffect of
social contrasts, for example, 'defenselessness to social impact' (ANURIT NEWMAN &
CHANSARKAR, n.d.)
This sort of phenomena is not new. Most distributed studies on nation of-inception find that
nation generalizations have some effect on item assessments and buy choices. (ANURIT
NEWMAN & CHANSARKAR, n.d.) They are discovered to be persuasive to particular
brands, to automobiles , and to extravagance automobiles. (ANURIT NEWMAN &
CHANSARKAR, n.d.) As needs be, customers can put diverse noteworthiness to specific
brand pictures and characters. This then prompts contrasts in customers' individual contrasts
(specificity, disposition), the choice process (the buy choice), and administration marketing
system (7 Ps). In this connection, enthusiastic components start to assume a significant part in
branding. Customers in both nations need to pick among brands, all of which give useful
insights. (ANURIT NEWMAN & CHANSARKAR, n.d.) Despite the fact that engineering
has turned into an essential in the markets; social contrasts, for example, social values could
clarify the extravagance auto deals positions and customers' diverse disposition towards
BMW and Mercedes in an unexpected way. This may be clarified by Keller (1993)
conceptualization of brand learning which has two segments: brand mindfulness and brand
picture. (ANURIT NEWMAN & CHANSARKAR, n.d.) The primary segment of brand
information is sorts of brand affiliations which comprises of properties [non product related
including: price and packing] and product related, profits [functional, experience, symbolic],
and mentality. The other two parts are favourability of brand affiliations and uniqueness of
brand affiliations. (ANURIT NEWMAN & CHANSARKAR, n.d.)
1.6 Summary:
Brands have in the past have had a huge influence on the purchasing pattern of a consumer.
The reasons may be diverse, for example, snob value, customer loyalty, preference, or its
history of low pricing. However, the fact remains that brands have a huge role to play when it
comes to determining the sales of a product.
Most organizations around the world spend considerable amount of resources in builing and
sustaining their brand equity. This is seen as a great investment by many management gurus
in order to boost future sales and make a solid foundation for the company.

10. Bibliography:
Alpert and Kamins, 1995.
ANURIT NEWMAN & CHANSARKAR, n.d. Consumer Behaviour of Luxury Automobiles:
A Comparative Study between Thai and UK Customers’ Perceptions.
Bowman and Gatignon, 1996.
Bronnenberg Dube' & Gentzkow, 2010. The Evolution of Brand Preferences Evidence from
Consumer Migration. University of Chicago and NBER, 02 August.
Burge, S. A., 2013. The Motivational Reasons behind Consumer Choice in Branded Coffee
Shops. [Online]
Available at:
http://www2.warwick.ac.uk/fac/cross_fac/iatl/reinvention/issues/bcur2013specialissue/burge/
[Accessed 27 December 2014].
Carpenter and Nakamoto, 1989; August. Consumer preference formation and pioneering
advantage. Journal of Marketing Research, Volume 27, pp. 285-298.
Christodoulides & de Chernatony, 2009. Consumer Based Brand Equity Conceptualization &
Measurement:. International Journal of Market Research.
De Chernatony and Riley, 1998. Defining a brand: beyond the literature with experts'
interpretations,. Journal of Marketing Management,, 14(5), pp. 417-443.
Flashpoint, 2014. Online Advertising Technology. Made Simple, s.l.: Flashpoint.
Kotler et al, 2009. Management,. Pearson/Prentice Hall..
Leighton & Bird, 2012. The Effect of Branding on Consumer Choice. Mountainview
Learning; Original Research Paper.
London Economics,, 2012. The role of packaging imagery on consumer preferences for
experience goods. A consumer behavioural experiment: London Economics.
MacMillan, G., 2013. Followers who see Promoted Tweets more likely to have a brand
preference. [Online]
Available at: https://blog.twitter.com/2013/followers-who-see-promoted-tweets-more-likely-
to-have-a-brand-preference
[Accessed 27 December 2014].
Malik et al, 2013. Impact of Brand Image and Advertisement on Consumer Buying Behavior.
World Applied Sciences Journal, 23(1), pp. 117-122.
Rettie Hiller & Alpert, n.d. PIONEER BRAND ADVANTAGE WITH U.K. CONSUMERS.
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Robinson and Fornell, 1985.
Robinson, 1988.
Tanner & Raymond, 2014. Principles of Marketing,. 2 ed. s.l.:Flat World Education, Inc..

11. APPENDICES:
APPENDIX: 1
(Flashpoint, 2014)