1.1 extent to which consumers are loyal to a

1.1 Brand

 

Brand is
important for any company and establishing and maintaining the proper position
in the minds of customers is one of the important goals of markers. Customers
buy brand not goods, in other words, brand is something that customer buys and
goods is something that is produced in the factory. Goods can be imitated by
rivals but brand is unique.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

1.2
Brand awareness

 

Brand awareness
is an important indicator of consumers’ knowledge about a brand, the strength
of a brand’s presence in the consumers’ minds. It is the probability that
consumers will easily recognize the existence and availability of a company’s
product or service. Customer 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 (Sheth& Mittal 2004).
Customer loyalty results in an emotional attachment to the brand, which is
driven primarily by commitment and affection. The consumer develops affection
for the brand in a manner similar to a friendship (Ball, Coelho &Machas
2004).The present-day marketplace is flooded with a wide variety of product
brands. Consequently, synchronizing with this inundated of diverse brands in
the market has become lurid for the simple consumer (Suresh, Monahan
&Naresh 2012).

 

 

1.3 Brand
Loyalty

 

Brand loyalty
has many operational definitions. Normally, brand loyalty is defined as how strong
customer’s preference is towards a brand comparing to similar options available
in the market. This is often determined based on price volatility or repeat
purchase behavior (Brandchannel.com, 2006). According to Kasper and Bloemer
(1995) actual brand loyalty have six necessary factors that are; the non-random
(that is biased), behavioral expression or purchase, over time response,
decision-making units, out of a set of such brands the comparison of comparing
to one or more alternative brands, and  a
function of psychological processes.

When customers
have a high relative attitude toward the brand the actual brand loyalty exists and
this is shown by repurchase behavior. Firms can consider this kind of loyalty
is a great asset for firms, because of customer’s willingness to pay higher
prices, less cost of serving and opportunity of bringing new customers to the
firm (Sasser and Reichheld, 1990). Brand loyal customers do not try any kind of
evaluated approaches, the known brand is simply chosen by them in terms of some
positive evaluations about it. Experience of past with the certain brand under consideration stems this
overall positive evaluation on the brand. According to Amine (1998) in
her literature brand loyalty can be described by two main approaches; first one
is behavioral, that tells that the repurchasing a brand by a customer overtime
indicates loyalty of them; second perspective is the perspective from attitude
that supposes that a necessary condition of brand loyalty is consistent buying
but it is not enough to prove “authentic” brand loyalty. It should be supported
by a favorable attitude towards the brand that ensures that the further
continuation of this behavior.

Therefore,
brand loyalty is a function of attitude as well as behavior. A customer’s
preference to purchase a particular brand within available alternative product
category is defined as brand loyalty. It occurs when customers
understand that at the right price the brand proposesthe
right level of quality or image, product features. This idea is the fundamental
of new purchasing habits. Primarily, a trial product of the brand will be
purchased by customers after that when the purchase is satisfactory to the
customers, they form habits to repurchase that brand continuously as the
product seems safe and familiar. In line with Jacoby and Kyner (1973), there
are differences in the middle of recurrence behavior of purchasing and loyalty
towards brand. According to them, the set of six essential as well as mutually
satisfactory conditions can be defined as brand loyalty. They explained the
combination of six factors i.e. non-random, behavioral reaction, expression over
time, some unit?s decision making process, in comparison to some other brands
and finally is the function regarding the psychological (evaluation, decision
making etc.) procedures. They added that statements of inclination or else
aim of buying i.e. verbal reportsof loyalty are not enough to explain
loyalty. In order to consider brand loyalty, verbal reports must be pooled with
the customers? loyal behaviour of purchasing. This article provides me broad meaning
of brand loyalty applicable in the work place and hence, the article is very much
crucial to this research. In accordance with Tucker (1964), to know details
about brand loyalty, one must consider the way it has been developed. He
further said that in terms of branded products, brand loyalty isregarded as the
biased purchasing behaviour. He also has made an exciting aspect that he points
to the Psychology Theory which says that one might learn of loving what he
selects as instantly he might learn of choosing what he loves. Tucker argued
that regardless of any special differences among the various brands, some
customers will get more loyal to any specific brand. Even if the products of
various brands are same, they will also continue choosing products from a
certain brand. These happenings are more common in case of sportswear industry.
If two sportswear stores serve the same sportswear, people will get more loyal
to any of the brands due to the connection made between them and the brand . On
the other hand, in line with Fournier (1998), factors leading towards
durability as well asstability of the relationship between consumers and the
brand/s over time period. She investigated that the six factors lead towards
maintaining a strong brand relationship. The six factors are: self-connection,
passion and love, commitment, interdependence, brand partner
quality and finally, intimacy. Fournier also revealed
that through significant brand as well as actions of consumers, the
quality brand relationship can be evolved. Hence, the reciprocity principal is
applicable in case of quality brand relationship. This principal is applicable
in case of all other relationships. The essence of reciprocity principal is
that if someone treats the brand well by the way of becoming loyal to that
brand, then the brand will also repeat it by becoming faithful to its
customers. This notion is also related with the example of sportswear industry.
In sportswear industry, customers get loyal to the specific sportswear stores
as they mean that store will behave them well by becoming available when their
customers need them.

One process
relates that the experts of marketing are using specification of loyalty by
market segmentation for a specific product/service. Market segmentation is the procedure
in which marketing experts divide the whole market into various segments
depending on the apparent quality of product/service as well as cost. After
that, the experts habitats various kinds of customers into each of the segment
of products they will buy most. This tool is very much effective for the
companies which aim at the advertising of their products to a specific consumer
group.

 

 

1.4
Brand building

 

Building a
strong brand is the goal of many organizations. Building a strong brand with significant
equity is seen as providing a host of possible benefits to a firm, including
greater customer loyalty and less vulnerability to competitive marketing
actions and marketing crises, larger margins as well as more favorable customer
response to price increases and decreases, grater trade or intermediary
cooperation and support, increased marketing communication effectiveness, and
licensing and brand-extension opportunities.

 

Working paper, report no 01-107,2001 writer: kevin lane keller

 

1.4.1
The four steps of brand building

 

Building a
strong brand, according to the customer-based brand equity model, can be
thought of in terms of a sequence of steps, in which each step is contingent
upon the successful completion of the previous step. All the following steps
involve accomplishing certain objectives with customers:

1.     
To ensure identification of the
brand with the customer and association of the brand in customers’ minds with
specific product class or customer need.

2.     
To firmly establish the brand meaning
in the minds of the customers by strategically linking a host of tangible and
intangible brand associations.

3.     
To elicit the proper customer
responses to this brand identity and brand meaning,

4.     
To convert brand response to create
an intense, active loyalty relationship between customer and the brand.

 

These four
steps represent a set of fundamental questions that customers invariably ask
about brands, implicitly if not explicitly: Who are you? (Brand identity). What
are you? (Brand meaning). What do I think or feel about you? (Brand response). What
kind of association and how much of connections would I like to have with you?
(Brand relationships).

 

There is an
obvious sequence in this “branding ladder,” that is, meaning cannot be
established unless identity has been created; responses cannot occur unless the
right meaning has been developed; and a relationship cannot be forged unless
the proper response have been elicited.

 

Working paper, report no 01-107,2001 writer: kevin lane keller

 

1.4.2
Brand-building blocks

Enacting the
four steps to create the right brand identity, brand meaning, brand responses,
and brand relationships is complicated and difficult process.to provide some
structure, its useful to think of six “brand building blocks” to accomplish the
four steps necessary to create strongbrand.to connote the sequencing involved,
these building blocks can be assembled as a brand pyramid. Creating significant
brand equity involves reaching the pinnacle of the pyramid and will only occur
if the right brand building -blocks are in place. The corresponding brand steps
represent different levels of the pyramid as illustrated in Figure 1.1. While
Figure 1.2 examines each of the building blocks in detail.

 

 

 

 

 

 

 

 

 

 

 

 

Figure1.1
Customer- based brand equity pyramid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1.2
Sub-dimensions of brand building blocks

 

 

1.5 Benefits of branding for companies

 

Researchers agree that branding provides a variety of important
benefits to the industry. First, a clear brand identity helps marketers
successfully differentiate their offerings from their competitors (Aaker, 2007;
Keller, 2008). Second, successful branding helps firms reduce advertising costs
by increasing awareness of the brand name (Keller & Lehmann, 2006; Keller,
2008). Third, branding helps a firm to become a leader among the competitors in
the same product category (Keller, 2008). As a consequence, a desirable brand
identity not only helps increase the profit margin resulting from consumers’ willingness
to pay a premium for products, it may lead to profitable brand extensions into
the same or different market. Finally, certain characteristics of branding help
firms safeguard their product features through legal protection from
counterfeiting (Keller, 2008; Keller & Lehmann, 2006; Schmitt &
Simonson, 1997).

 

1.6 Benefits of branding for consumers

 

Branding provides consumers with three major benefits: risk
reduction, information efficiency, and self-expression (Aaker, 2007; Keller,
2003, 2008; Riesenbeck & Perrey, 2007). Keller (2008) argued that branding
helps consumers decrease the chance of choosing a  product that may not perform well or meet
their expectations. Thus, risk reduction is accomplished by providing assurance
of consistent quality. Riesenbeck and Perrey (2007) suggested that branding may
help consumers recognize and become aware of offerings in a specific product
category, which helps them efficiently categorize vast amounts of information
available about the product. Finally, branding involves creating cognitive
structures that help consumers organize knowledge and experience regarding
different  products, which may help
consumers transfer characteristics of the brand onto themselves (Riesenbeck
& Perrey, 2007). This process, in turn, could affect consumers’ perception
of a  brand as a reflection of their
personality, character, social status, and lifestyle (Aaker, 2007).

 

 

1.7 Brand identity

Brand salience. Achieving the right brand identity  involves creating brand salience,  brand salience relates to aspects of customer
awareness of the brand. How easily and often is the brand evoked under various
situations or circumstances? To what extent is the brand top-of-mind and easily
recalled recognized? What types of cues or reminders are necessary? How
pervasive awareness?

 

Formally, brand awareness refers to customer’s ability to recall
and recognize a brand. Brand awareness is more than just the fact that
customers know a brand name and the fact that they have previously seen it,
perhaps even many times brand awareness also involves linking the brand name,
logo, symbol, and so forth  to certain
associations in memory. In particular, building brand awareness involves making
sure that customers understand the product or service category in which the
brand competes. There must be clear links to other product or services sold
under the brand name. At a broader, more abstract level, however, building brand
awareness also means ensuring that customers know which of there needs the
brand is designed to satisfy through this products. In other words, what basic
functions does the brand provide for customers?

Salience forms the foundational building block in developing brand equity and
provides three important functions. First salience influences the formation and
strength of brand associations that make up the brand image and gives the brand
meaning. Second, creating a high level of brand salience in terms of category
identification and needs satisfied is of crucial importance during possible
purchase or consumption opportunities. brand salience influences the likelihood
that brand will be a member of the consideration set, those handful of brands
that receive serious consideration for purchase. Brand salience is also
important during possible consumption settings in terms of maximizing potential
usage. Third when customers have “low involvement” with a product category,
they may make choices based on brand salience alone. Low involvement occurs
when customers lack either: purchase motivation (e.g., when customers do not
care about the product or service or purchase ability (e.g., when customer do
not know anything else about the brands in a category or lack the expertise to
judge quality even if they do know some thinds).

 

1.8 Key criteria for brand identity

 

Brand awareness can be distinguished in terms of two key dimensions
depth and breadth. Depth of brand awareness refers to how easily customers can
recall or recognize the brand. While breadth of brand awareness refers to the
range of purchase and consumption situations in which the brand comes to mind.
A highly salient brand is one that possesses both depth and breadth of brand
awareness, so that customers always make sufficient purchases as well as always
think of the brand in a variety of settings in which the brand could be
employed or consumed.

Thus, in terms of creating brand salience, in many cases it is not only the
depth of brand awareness that matter, but also the breadth of brand awareness
and the proper linkage of the brand to various categories and cues in the minds
of customers. In other words, it is important that the brand not only be
“top-of-mind” and have sufficient “mind share”, but it must also do so at the
right times and right places breadth is an often-neglected consideration, even
for brands that are category leaders with many brands, the key question is not
whether customers can recall the brand, but rather, where do they think of the
brand, when do they think of the brand, and how easily and often do they think
of the brand? In particular, many brands and products are ignored or forgotten
in possible usage situations. Increasing the salience of the brand in those
settings can be effected means to drive consumption and increase sales volume.
For example, a potentially effective strategy for market leader campbell’s
overlooked consumption opportunities.