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C-5

Brand and Consumers

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C H A P T E R

Brand and Consumers

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Copyright © 2002, Harsh V Verma

5± 1

Brand Management Text and Cases (Ed-2)

Harsh V Verma

Excel Books

C-5

Brand and Consumers

5

The Buying Decision
The core of marketing is exchange. It is the actualization of a transaction between the seller and the seeker of value. It is a trade of values. The marketers devise values which customers seek. Marketing arises out of exchange. In this whole process, the customer must make a choice or decisions with regard to selection of a value provider. The customers essentially make two types of decisions in the context of marketing.  The first type of decisions is directed at the choice of product or services. These decisions are called assortment decisions.  The second type of decisions concern the choice of specific brands and how to obtain them. These are called market related decisions.
Copyright © 2002, Harsh V Verma

5± 2

Brand Management Text and Cases (Ed-2)

Harsh V Verma

Excel Books

C-5 Brand and Consumers 5 Perspectives on Consumer Behaviour Alternative models exist to explain consumer behaviour. The important ones among these include:     Economic Perspective Passive Perspective Emotional Perspective Cognitive Perspective Cont«. Copyright © 2002. These seek to provide explanations as to why do consumers behave as they do. Harsh V Verma 5± 3 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .

while complex problem recognition is the development of a problem over time.C-5 Brand and Consumers 5 Customer Decision making The customer. Harsh V Verma 5± 4 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . as actual state and derived state move apart (e. Problem Recognition The problem recognition may be simple or complex..g.g. Copyright © 2002. hunger) which are automatically dealt with. A simple problem recognition is the frequent arousal of needs (e. A customer faces a hierarchy of levels of choice to actually reach brand choice. moves on to the next stage of market. after having done mental calculations about product assortment. over time.. Cont«. usage of a computer may leave one desiring a system of higher configuration).

Cartier. Casio. Patek Phillipe Unable to satisfy: Casio Considered Brands: Titan. Corum Unknown Brand: Patek Phillipe Indifferent Brand: Mont Blanc. Lancer. How Brands Get Eliminated  Total Brand: Titan. Mont Blanc. The outcome of the information search is knowledge about various brands. Citizen. Maxima. Tag Heuer. Reebok Overlooked Brands: Corum. Sieko. Omega.C-5 Search for Information   Brand and Consumers 5 The search for a satisfactory solution necessitates gathering of relevant information about alternative products and/or brands. Rolex. Harsh V Verma      5± 5 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . Citizen. Copyright © 2002. Timex. HMT. Timex. The information search stage is crucial for the marketers. Reebok. The brands available in the market are organized in a particular form. Patek Phillipe. HMT Cont«.

Consumers evaluate information as they gather it.´  The consumer¶s evaluation of alternatives may vary from being very simple to very complex. and continues to the point where a product is purchased. psycho-social benefits and value satisfaction. Cont«. or even before. consumers evaluate brands on the basis of their ability to deliver functional benefits. Often. Copyright © 2002. Harsh V Verma 5± 6 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . discounting or discarding information as it appears relevant and/or trustworthy. accepting.C-5 Alternative Evaluation  Brand and Consumers 5 ³Evaluation is a continuing process that starts with the gathering of information.

the consumer moves on to buy the product.  The decision making does not terminate with the act of purchase. A brand fails when it gets eliminated in the process. 5± 7 Cont«. Once a choice has been made. the greatest challenge facing the brand marketer is how to survive in each stage of decision making and ultimately get bought. Brand Selection Brand marketer¶s interest is served when the consumer selects and purchases his brand.  The post-purchase evaluation involves comparison between the expectations and actual performance of the product or brand. Copyright © 2002. Harsh V Verma Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . After the purchase. consumers go through the post-purchase evaluation stage. Therefore.C-5 Brand and Consumers 5 Post-Purchase Behaviour  The purchase decision is the culmination of the decision making process.

Cont«. ³Not all or even most consumer behaviour results from the traditional decision making. Copyright © 2002.C-5 Brand and Consumers 5 Moven17 identifies alternative perspectives on consumer decision making. Harsh V Verma 5± 8 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .´ There are three perspectives in consumer behaviour:    The traditional decision making perspective The experiential perspective The behavioural influence perspective.

verbal Elaborate information Toned down reason Verbal and visual Limited information Appeal to emotions.C-5 Brand and Consumers 5 Brand Focus Appeal to reason Utility focused. Harsh V Verma 5± 9 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . feelings Visual Manage selling environment Consumer Behaviour Perspectives and Brands Perspective Decision making (high) Consumer Highly cognitive Left brain Decision making (low) Moderate reason oriented Moderate left and right brain Experiential Emotional Orientation Right brain Behavioural No role of reason or emotion (intervening system) Copyright © 2002.

C-5 Brand and Consumers 5 Making Brands Succeed Implicit in any brand¶s success is the failure of rival brands. Essential to the success of a brand are the following:   Better brand strategy Superior brand strategy Brands offering similar values (parity brands) Brands offering lesser value or suffering competitive disadvantage (inferior brands) Brands offering value not in line with customer needs (mismatch brands) Brands offering superior value at higher sacrifice (over-priced brands) Cont«. It is relative superiority over competition in doing what customers value. Harsh V Verma The following types of brands are generally potential candidates for failure:     5± 10 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . Copyright © 2002.

For instance. motives. a brand may seek to achieve success in the market-place. PMPO ends up as a belief connected with the brand Orient but connection with the buyer is not achieved. If a brand just limits itself to attribute level in the consumer¶s mind (brand knowledge structure). goals and values. This transformation essentially involves extension of its meaning by adding invisible layers that surround the brand as information layers. Products per se are not something which stimulate buyers. A consumer is a bundle of needs. if Orient fans lay greater stress on higher PMPO²the knowledge is not perceived to be personally relevant. It is the perceived relevance to customer motives. Therefore. It is only then.C-5 Brand and Consumers 5 Making the Brand Relevant The key to any brand¶s strength lies in its connection with the customer. Cont«. the brand¶s knowledge structure must be made complete so as to make it relevant in prospects¶ minds. values and benefits that turn them on. Harsh V Verma 5± 11 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . The brand must become a psychological entity in a prospect¶s mind. A product needs to be transformed into something that fits with what the customer is. ³The attribute levels of product knowledge are not relevant per se. The essence of good marketing is to create this brand ± consumer relationship. the customer may find it difficult to decode its relevance in his personal frame. Copyright © 2002. A brand must move beyond its physical character to acquire perceptual character representing itself as a means to achieving what is sought by him or her. while higher level of psychosocial consequences and values are more directly related to self´.

Copyright © 2002. When one thinks of a brand a multidimensional network of associations springs up in the mind. Harsh V Verma 5± 12 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .C-5 Brand and Consumers 5 VALUES CUSTOMER Terminal ATTRIBUTES BRAND/ PRODUCT BENEFITS Concrete Abstract Functional Psycho-social Instrumental CONNECTION The cognitive representation of a brand is its knowledge structure in a prospect¶s mind. The brand becomes the centre having a network of related concepts around it. Cont«.

C-5 Brand and Consumers 5 Brand Attributes Must Connect With The Higher Order Needs ² Sunglasses Category The marketer can discover the subtle ways a brand develops relevance with prospects. The following hierarchical value map shows these links for sunglasses category. Business Analyst. With the help of means±end chains. J33-46. the internal picture as to how an attribute translates into something of significance can be captured. Source: Harsh V Verma and Neha Kalia. Cont«. Harsh V Verma Accomplishment Enjoy life Self esteem Responsibility to many Make impression Stay healthy Save money Eye protection Sophisticated image Quality Wearability Look good Saves from scratches Comfortable Design Lasts longer UV protection Light weight Expensive Brand Metal strength Scratch proof 5± 13 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . The methodology used for discovering these is called means±end chain. pp.July-Dec 1999. µ Values and consumer behavior: an exploratory study of young consumers¶. Copyright © 2002.

C-5 Brand and Consumers 5 Brand Associations BRAND Category membership (acquire category associations) CATEGORY Parity with rivals (acquire associations similar to rivals) BRAND AND RIVALS Build superiority (acquire association which customers prefer and are unique) BRAND AND RIVALS Copyright © 2002. Harsh V Verma 5± 14 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .

 It is so strong that recall of one leads to another. PUF and Godrej refrigerators (earlier). It is this connection which makes these brands immensely successful. Harsh V Verma 5± 15 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .  All the brands are successful in the Indian market. The connection between the attribute or/and benefit or/and value and the brand in question is very strong.C-5 Brand and Consumers 5 Building Superior Brands  Explore the connection between: Quick chill and Whirlpool refrigerators. µover 100 exclusive models¶. µArrive in style¶ and LML scooters. Golden Eye and LG television. Micro ZPTO and Head & Shoulders Shampoo. Cont«. Copyright © 2002. Germi-check and Pepsodent toothpaste.

Harsh V Verma 5± 16 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . success is all about valued discrimination. iii. In all of the above cases. Cont«. for whom is the product meant ? (the target customers) what do competitive brands offer ? (the similarity) what do customers desire/value but do not get ? (discriminative value. e. ii. Copyright © 2002.C-5  Brand and Consumers 5 Nowadays.. Germi-check)  The procedure to achieve valued discrimination can be illustrated with the help of a car market (not whole but a segment).g. the following are common: i.

What do Strong Brands have in Common? Some brands consistently score high on strength. They are all strong brands. Every manager wants to create a strong brand.C-5 Identify Segments Brand and Consumers 5 Perform detailed market segmentation analysis. 2. A brand¶s tangible and intangible components need to be fine tuned to stay relevant. Study existing segments ± the customer characteristics and competition. Stay Relevant: With time. Harsh V Verma 5± 17 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . Copyright © 2002. The brand must be an excellent provider of these benefits. What do top brands have in common which can provide a benchmark against which a brand can be measured? There are ten attributes shared by top brands: 1. Deliver Excellent Customer Benefits: The brand¶s tangible and intangible components must be combined to create value or benefits that customers desire. Make sure you are in touch with these changes. customers change. Cont«. Strong brands have great equity and enjoy customer loyalty and profits.

4. Brand Makes Use of all Needed Marketing Elements to Build Activities: Brands are made up of all marketing elements. while continuity is required to maintain a brand¶s core. Cont«. Consistency: Strong brands essentially strike a perfect balance between continuity and change. or image. 7. They create appropriate points of differences to gain advantage over competition. Make sure these elements are combined intelligently to perform brand related functions. These elements perform various functions for the brand. All these brands contribute to overall equity of the portfolio..C-5 3. 6. Brand and Consumers 5 Pricing is Based on Perception of Value: Price is an important brand attribute. Proper Positioning: Well positioned brands occupy a distinct place in customers¶ minds. Change is needed for staying relevant. Generally. Make sure price is based on how customers view the product as a whole. e. 5. Copyright © 2002. awareness. It is therefore necessary that this hierarchy is well thought out and properly understood. Strong brands achieve points of parity in areas where competitors are aiming to get advantage. Harsh V Verma 5± 18 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .g. Continuity helps a brand from going astray. Brand Portfolio and Brand Hierarchy: Companies keep a portfolio of brands for different customer segments and product lines. corporate brands are combined with sub-brands at different levels. Charging too high or too low a price may not be appropriate.

Impact of marketing programmes must be appreciated before any change is made. This gives them an idea about what can be touched and what is untouchable about the brand. Short cuts must be avoided. 10. Long-Term Support: Brand equity construction requires long-term sustained efforts. Brand and Consumers 5 Know What a Brand Means to Consumers: Managers of strong brands exhibit great understanding of what a brand means to consumers in terms of its perceptions. Harsh V Verma 5± 19 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . It is on this understanding that they make decisions about the brand. Only then can consumers have proper depth and breadth of awareness and strong. Cont«. Monitor Sources of Equity: The health of a brand must be assessed on an on-going basis. 9. Strong brands are supported and navigated by a formal system. Brand tracking studies need to be carried out for the evaluation of brands¶ performance. Adapted from: Kevin Lane Keller.C-5 8. Copyright © 2002. beliefs. Jan-Feb. The Brand Report Card. attitudes and behaviours. Harvard Business Review. 2000. favourable and unique associations.

For instance. The need is to go beyond the obvious. Harsh V Verma Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .C-5 Brand and Consumers 5 Understand Key Drivers of Buying List the attributes and/or benefits and/or values sought by the customers. This task involves extensive use of marketing research. we may get a list like the following:        5± 20 Price Image Looks Accessories After sale support Fuel efficiency Comfort       Safety Space Pick up/acceleration Power Colours Performance Cont«. Various open and disguised methodologies would be used to understand the key drivers of buying. Copyright © 2002.

In this step the purpose is to get priorities or importance that customers attach to various dimensions.C-5 Brand and Consumers 5 Determine Relative Importance The next step in the process is to get customers to rate or rank these parameters/requirements in such a manner that these are divided into important and unimportant or less important categories. Copyright © 2002. Harsh V Verma 5± 21 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . The earlier step allows us to capture the overall buying criteria that customers use. the above list would look like the following: Cont«. For instance.

Harsh V Verma 5± 22 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . Copyright © 2002.C-5 Brand and Consumers 5 Not Important Important ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Price Image Looks Accessories After sale support Fuel efficiency Comfort Safety Space Pick up/acceleration Power Colours Performance ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Cont«.

Harsh V Verma 5± 23 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books . Copyright © 2002.C-5 Brand and Consumers 5 Competitor B ¥ ¥ ¥ ¥ ¥ ¥ Important Not Important Competitor A ¥ ¥ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Price Image Looks Accessories After sale support Fuel efficiency Comfort Safety Space Pick up/acceleration Power Colours Performance ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Cont«.

C-5 Brand and Consumers 5 Important Attributes Shared/Common to Competition ¥ ¥ ¥ ¥ ¥ Sources of Valued Discrimination ‡ ‡ ‡ ‡ ‡ ‡ ‡ Price Image After sale support Fuel efficiency Comfort Safety Performance ¥ ¥ Copyright © 2002. Harsh V Verma 5± 24 Brand Management Text and Cases (Ed-2) Harsh V Verma Excel Books .