Perception of customers towards services & products of
Brand and brand equity
1. EFFECT OF BRAND AWARENESS ON
CONSUMER’S PURCHASE INTENTION
SHWETANSHU GUPTA
2. INTRODUCTION
• The American Marketing Association (1960) proposed the following
company- oriented definition of a brand as: A name, term, sign,
symbol, or design, or a combination of them, intended to identify the
goods or services of one seller or group of sellers and to differentiate
them from those of competitors.
• This definition was criticized for being too product oriented with
emphasis on features that are easily visible.
“We do not longer buy products. We buy brands.”
3. • Dibb et al. (1997) redefined brand as : A brand is a name, term,
design, symbol or any other feature that identifies one seller's good
or service as distinct from those of other sellers.
• The basic difference between these two definitions was the use of
words “any other features” which includes all the intangible features
besides the visual features associated with brand. The particular
value of this definition is that it focuses on a fundamental brand
purpose, which is differentiation (Wood 2000).
CONT’D
4. • A brand is a promise that the product will perform as per customers
expectations.
• A brand helps make a mark and differentiate a good or service from
others in marketplace.
• A strong brand makes people aware of what the company represents
and about the different offerings of the company.
• Brands help customers to connect to the product or service on an
emotional level.
WHY DO BRANDS MATTER?
5. • Brands represent immaterial assets that often have greater financial
value than material assets.
• A brand is a name that influences buyers, by creating mental
associations and relationships built up over time among customers
and distributors.
• Strong brands are fundamental to succeed in the powerful
competition in the marketplace.
• They gain higher preferences from consumers, and individuals tend
to prefer products that are familiar and have high awareness.
6. • Strong brands can escape price competition, since it can
command a higher price.
• Brand represents a relationship between a product and a
customer.
• Strong brands attract loyal customers who tend to repeatedly
purchase the same brand.
• Successful brands add value to all parties involved, which
entices customers to buy their products.
7. BRANDS FOR CONSUMERS
• Source of product: Consumers can easily make a purchase
decision based on brands.
• Lower risk: Brands means lower purchase risk to
consumers as they are dealing with a product or
organization that they trust.
8. • Symbol of quality: Consumers see brands as a symbol of
quality and remain committed and loyal to a brand as
long as they believe that the brand will continue meeting
their expectations.
• Less cost of search for a choice: If consumers recognize a
particular brand and have knowledge about it ,they can
make quick purchase decision.
9. Main aim of each marketer is to
create brand awareness for his
product or service, to attract a large
customer base to it.
10. BRAND AWARENESS
• Brand awareness means the ability of a consumer to recognize and
recall a brand in different situations .
• Brand awareness consists of : brand recall and brand recognition.
• Brand recall means when consumers see a product category, they
can recall a brand name exactly.
• Brand recognition means consumers has ability to identify a brand
when there is a brand cue i.e. consumers can tell a brand correctly if
they ever saw or heard it.
11. • Brand awareness also acts as a critical factor in the
consumer purchase intention, and certain brands will
accumulate in consumers’ mind to influence consumer
purchase decision.
• A product with a high level of brand awareness will receive
higher consumer preferences because it has higher market
share and quality evaluation.
12. BRAND IMAGE
• Brand image reflects consumers’ perceptions of a brand’s
characteristics and can be determined by their associations.
• The image refers to the way in which consumers’ interpret all of the
signals coming from the products , services and communication
covered by the brand.
• Brand image convey the product’s distinctive benefits & positioning.
“Everyone experiences more than he understands – but it is
experiences, not understanding, that influences behaviour.”
13. • Brand image has four purposes:
– Brand image communicates expectations
– It influences the perception of a company’s activities
– Brand image is a result of consumers’ experiences as well as their
expectations
– It affects the company internally
• Image is created on the basis of two variables, personal and indirect
experiences.
– Personal experiences arise through direct contact with the
company
– while indirect experiences occur through communication with the
environment, such as rumors and media.
14. • Brand image communicates expectations:
Brand image communicates expectations through marketing
campaigns such as advertisement, personal sales and word-
of-mouth communication
• Brand image influences the perception of a company’s
activities:
If the image is good, occasional problems become less
fateful and the image functions as a protection. But when the
image is negative an increasing dissatisfaction occurs among
the customers
15. • Brand image is a result of consumers’ experiences and
expectation:
If the experienced quality is equivalent to the image, or
exceeds it, the image will be strengthen or improved. But if
the company does not succeed to deliver the experienced
image the effect will be the opposite
16. • Brand image affects the company internally
• When the image is unclear it affects employees’
attitudes towards the employer and the
organization. This can lead to a negative impact on
employees’ work and their contribution which
affects quality and their relationship with
customers.
17. PERCEIVED QUALITY
• Perceived quality is a result of consumers’ subjective
judgment on a product.
• Perceived quality is a judgment on the consistency of
product specification or an evaluation on added value of a
product.
• Perceived quality will be affected by factors such as
previous experience, education level, and perceived risk
and situational variables such as purchase purpose,
purchase situation, time pressure, and social background
from consumers.
18. • It is the consumers opinion of a product’s ability to fulfill
his expectations.
• The term "Perceived Quality" refers to the quality that
customers acknowledge via the look, the touch, and the
feel of a car.
• For example, in a showroom, the customer would first
take a glance around the car, then open the door, sit on the
seat, and check the quality of the details.
19. Perceived quality is different to real quality is because
• Previous bad image of a product will influence consumers’
judgment on product quality in the future. Even if the
product quality has been changed, consumers will not trust
that product because of their unpleasant experience in
previous.
• Manufacturers and consumers have different views on the
judgment of the quality dimensions
• Consumers seldom hold enough information to evaluate a
product objectively.
20. Ways to increase perceived quality
• Create a brand name for it that is based on market research
of your target market and what this audience sees as
beneficial.
• Brand names, logos and slogans offer a consistency to the
viewing public that leads to an appearance of reliability and
thus higher quality.
• Presenting what your business offers in an effective brand
form can help drive sales.
21. • Good service leaves a lasting impression on customers and
can make them feel more loyal to your product or brand.
For example, a coffee shop's lattes might be no better in
quality than the next shop's selections, but delivering each
latte personally to a customer at his table or putting an artful
design in the foam of the latte could make the consumer
conclude that it's the best latte he's ever had.
22. BRAND LOYALTY
• Brand loyalty is a measure of the extent to which
consumers are loyal to a particular brand over a period of
time, which emphasizes a consistent repurchase of the
same brand.
• Brand loyalty results in an emotional attachment to the
brand, which is driven primarily by commitment and
affection.
23. • Consumers exhibit behavioural brand loyalty when a
consumer buys a brand simply out of habit or convenience
without thinking much about it.
• If consumers primarily use the products of a particular
company in preference to the products of competing
companies, they are absolutely brand loyal.
• If they use a product most of the time but occasionally use
a competitors’ product, they are moderately brand loyal.
24. • There are certain behaviors which developed in the
consumers as a result of the brand loyalty i.e. positive
attitudes toward brand, insensitivity to the price of the
preferred brand, unpleasant feeling, if preferred brand
departed unexpectedly and recommendation to others
about brand.
25. PURCHASE INTENTION
• Purchase intention can be divided into:
a)Unplanned buying
b)Partially planned buying
c)Fully planned buying
• Unplanned buying : Consumers make all decisions to buy
a product category and a brand in a store. It can be
regarded as an impulse buying behavior.
26. • Partially planned buying:
Consumers only decide a product category and the
specification before buying a product, and brands and
types will decide in the shop later.
• Fully planned buying :
Consumers decide which product and brand to buy before
entering the shop.
28. CONCLUSION
• A brand with high awareness and good image can promote
brand loyalty to consumers, and the higher the brand
awareness is, the higher brand trust and purchase
intention are to consumers.
• Higher brand awareness , higher market share and a
better quality evaluation.
29. • When businesses develop a new products or a new market, they
should promote their brand awareness in order to receive the best
result because brand awareness is positively related to brand loyalty.
• Consumers will have a higher purchase intention with a familiar
brand & brand loyalty will ensure a repurchase commitment in the
future purchase which consumers will not change their brand loyalty
under different situations and still buy their favorable brands.
