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Excel Books5– 1 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
C H A P T E R
5
Brand and
Consumers
Excel Books5– 2 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 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.
Excel Books5– 3 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Perspectives on Consumer Behaviour
Alternative models exist to explain consumer behaviour. These seek to provide
explanations as to why do consumers behave as they do. The important ones
among these include:
Economic Perspective
Passive Perspective
Emotional Perspective
Cognitive Perspective
Excel Books5– 4 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Customer Decision making
The customer, after having done mental calculations about product assortment;
moves on to the next stage of market. A customer faces a hierarchy of levels of
choice to actually reach brand choice.
Problem Recognition
The problem recognition may be simple or complex. A simple problem
recognition is the frequent arousal of needs (e.g., hunger) which are
automatically dealt with, while complex problem recognition is the development
of a problem over time, as actual state and derived state move apart (e.g., over
time, usage of a computer may leave one desiring a system of higher
configuration).
Excel Books5– 5 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Search for Information
The search for a satisfactory solution necessitates gathering of relevant
information about alternative products and/or brands.
The information search stage is crucial for the marketers. The outcome of
the information search is knowledge about various brands. The brands
available in the market are organized in a particular form.
How Brands Get Eliminated
Total Brand: Titan, Timex, Maxima, Sieko, Citizen, Casio, Lancer, Omega, Cartier, Rolex, HMT, Mont Blanc, Reebok, Tag Heuer, Patek Phillipe, Corum
Unknown Brand: Patek Phillipe
Indifferent Brand: Mont Blanc, Reebok
Overlooked Brands: Corum, Patek Phillipe
Unable to satisfy: Casio
Considered Brands: Titan, Timex, Citizen, HMT
Total Brand: Titan, Timex, Maxima, Sieko, Citizen, Casio, Lancer, Omega, Cartier, Rolex, HMT, Mont Blanc, Reebok, Tag Heuer, Patek Phillipe, Corum
Unknown Brand: Patek Phillipe
Indifferent Brand: Mont Blanc, Reebok
Overlooked Brands: Corum, Patek Phillipe
Unable to satisfy: Casio
Considered Brands: Titan, Timex, Citizen, HMT
Excel Books5– 6 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Alternative Evaluation
“Evaluation is a continuing process that starts with the gathering of
information, or even before, and continues to the point where a product is
purchased. Consumers evaluate information as they gather it, accepting,
discounting or discarding information as it appears relevant and/or
trustworthy.”
The consumer’s evaluation of alternatives may vary from being very simple
to very complex. Often, consumers evaluate brands on the basis of their
ability to deliver functional benefits, psycho-social benefits and value
satisfaction.
Excel Books5– 7 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Post-Purchase Behaviour
The purchase decision is the culmination of the decision making process.
Once a choice has been made, the consumer moves on to buy the product.
The decision making does not terminate with the act of purchase. After the
purchase, consumers go through the post-purchase evaluation stage.
The post-purchase evaluation involves comparison between the
expectations and actual performance of the product or brand.
Brand Selection
Brand marketer’s interest is served when the consumer selects and purchases
his brand. A brand fails when it gets eliminated in the process. Therefore, the
greatest challenge facing the brand marketer is how to survive in each stage of
decision making and ultimately get bought.
Excel Books5– 8 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Moven17 identifies alternative perspectives on consumer decision making. “Not all
or even most consumer behaviour results from the traditional decision making.”
There are three perspectives in consumer behaviour:
The traditional decision making perspective
The experiential perspective
The behavioural influence perspective.
Excel Books5– 9 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Consumer Behaviour Perspectives and Brands
Perspective Consumer Brand Focus
Decision making (high) Highly Appeal to reason
cognitive Utility focused, verbal
Left brain Elaborate information
Decision making (low) Moderate reason Toned down reason
oriented Verbal and visual
Moderate left and right brain Limited information
Experiential Emotional Appeal to emotions,
Orientation feelings
Right brain Visual
Behavioural No role of reason Manage selling environment
or emotion (intervening system)
Excel Books5– 10 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Making Brands Succeed
Implicit in any brand’s success is the failure of rival brands. It is relative
superiority over competition in doing what customers value. Essential to the
success of a brand are the following:
Better brand strategy
Superior brand strategy
The following types of brands are generally potential candidates for
failure:
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)
Excel Books5– 11 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Making the Brand Relevant
The key to any brand’s strength lies in its connection with the customer. Products per se are not something which stimulate buyers. It is the perceived relevance to customer motives, values and benefits that turn them on. A product needs to be transformed into something that fits with what the customer is. A consumer is a bundle of needs, motives, goals and values. 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. This transformation essentially involves extension of its meaning by adding invisible layers that surround the brand as information layers. The brand must become a psychological entity in a prospect’s mind.
If a brand just limits itself to attribute level in the consumer’s mind (brand knowledge structure), the customer may find it difficult to decode its relevance in his personal frame. For instance, if Orient fans lay greater stress on higher PMPO—the knowledge is not perceived to be personally relevant. PMPO ends up as a belief connected with the brand Orient but connection with the buyer is not achieved. “The attribute levels of product knowledge are not relevant per se, while higher level of psychosocial consequences and values are more directly related to self”. Therefore, the brand’s knowledge structure must be made complete so as to make it relevant in prospects’ minds. The essence of good marketing is to create this brand – consumer relationship. It is only then, a brand may seek to achieve success in the market-place.
Excel Books5– 12 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
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. When one thinks of a
brand a multidimensional network of associations springs up in the mind.
BRAND/PRODUCT
ATTRIBUTES BENEFITS VALUES
CUSTOMER
CONNECTION
Concrete Abstract Functional Psycho-social Instrumental Terminal
Excel Books5– 13 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Brand Attributes Must Connect With The Higher Order Needs — Sunglasses Category
The marketer can discover the subtle ways a brand develops relevance with prospects. The methodology used for discovering these is called means–end chain. With the help of means–end chains, the internal picture as to how an attribute translates into something of significance can be captured. The following hierarchical value map shows these links for sunglasses category.
UV protection Light weight Expensive
Design
Brand Metal strength
Scratch proof
Comfortable
Wearability
Eye protection
Stay healthy
Accomplishment Enjoy life Self esteem Responsibility to many
Quality
Look good
Sophisticated image
Make impression
Lasts longer
Saves from scratches
Save money
Source: Harsh V Verma and Neha Kalia, ‘ Values and consumer behavior: an exploratory study of young consumers’, Business Analyst, J33-46.July-Dec 1999, pp.
Excel Books5– 14 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
BRAND
CATEGORY
BRAND AND RIVALS
BRAND AND RIVALS
Category membership (acquire category associations)
Parity with rivals (acquire associations similar to rivals)
Build superiority (acquire association which customers prefer and are unique)
Brand Associations
Excel Books5– 15 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Building Superior Brands
Explore the connection between: Quick chill and Whirlpool refrigerators;
Golden Eye and LG television; Germi-check and Pepsodent toothpaste;
Micro ZPTO and Head & Shoulders Shampoo; PUF and Godrej refrigerators
(earlier); ‘Arrive in style’ and LML scooters; ‘over 100 exclusive models’.
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.
It is so strong that recall of one leads to another. It is this connection which
makes these brands immensely successful.
Excel Books5– 16 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Nowadays, success is all about valued discrimination. In all of the above
cases, the following are common:
i. for whom is the product meant ? (the target customers)
ii. what do competitive brands offer ? (the similarity)
iii. what do customers desire/value but do not get ? (discriminative value,
e.g., Germi-check)
The procedure to achieve valued discrimination can be illustrated with the
help of a car market (not whole but a segment).
Excel Books5– 17 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Identify Segments
Perform detailed market segmentation analysis. Study existing segments – the
customer characteristics and competition.
What do Strong Brands have in Common?
Some brands consistently score high on strength. They are all strong brands. Strong brands
have great equity and enjoy customer loyalty and profits. Every manager wants to create a
strong brand. 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. The
brand must be an excellent provider of these benefits.
2. Stay Relevant: With time, customers change. Make sure you are in touch with these
changes. A brand’s tangible and intangible components need to be fine tuned to stay
relevant.
Excel Books5– 18 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
3. Pricing is Based on Perception of Value: Price is an important brand attribute. Charging too high or too low a price may not be appropriate. Make sure price is based on how customers view the product as a whole.
4. Proper Positioning: Well positioned brands occupy a distinct place in customers’ minds. Strong brands achieve points of parity in areas where competitors are aiming to get advantage. They create appropriate points of differences to gain advantage over competition.
5. Consistency: Strong brands essentially strike a perfect balance between continuity and change. Change is needed for staying relevant, while continuity is required to maintain a brand’s core. Continuity helps a brand from going astray.
6. Brand Portfolio and Brand Hierarchy: Companies keep a portfolio of brands for different customer segments and product lines. Generally, corporate brands are combined with sub-brands at different levels. All these brands contribute to overall equity of the portfolio. It is therefore necessary that this hierarchy is well thought out and properly understood.
7. Brand Makes Use of all Needed Marketing Elements to Build Activities: Brands are made up of all marketing elements. These elements perform various functions for the brand. Make sure these elements are combined intelligently to perform brand related functions, e.g., awareness, or image.
Excel Books5– 19 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
8. 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,
beliefs, attitudes and behaviours. It is on this understanding that they make decisions
about the brand. This gives them an idea about what can be touched and what is
untouchable about the brand.
9. Long-Term Support: Brand equity construction requires long-term sustained efforts.
Only then can consumers have proper depth and breadth of awareness and strong,
favourable and unique associations. Short cuts must be avoided. Impact of marketing
programmes must be appreciated before any change is made.
10. Monitor Sources of Equity: The health of a brand must be assessed on an on-going
basis. Brand tracking studies need to be carried out for the evaluation of brands’
performance. Strong brands are supported and navigated by a formal system.
Adapted from: Kevin Lane Keller, The Brand Report Card, Harvard Business Review,
Jan-Feb, 2000.
Excel Books5– 20 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
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. Various open and disguised
methodologies would be used to understand the key drivers of buying. The need
is to go beyond the obvious. For instance, we may get a list like the following:
Price
Image
Looks
Accessories
After sale support
Fuel efficiency
Comfort
Safety
Space
Pick up/acceleration
Power
Colours
Performance
Excel Books5– 21 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
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. The earlier step allows us to
capture the overall buying criteria that customers use. In this step the purpose is
to get priorities or importance that customers attach to various dimensions. For
instance, the above list would look like the following:
Excel Books5– 22 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Important Not Important
• Price √
• Image √
• Looks √
• Accessories √
• After sale support √
• Fuel efficiency √
• Comfort √
• Safety √
• Space √
• Pick up/acceleration √
• Power √
• Colours √
• Performance √
Excel Books5– 23 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Cont….
Important Not Competitor Competitor
Important A B
• Price √ √ √
• Image √ √ √
• Looks √ √
• Accessories √ √
• After sale support √ √
• Fuel efficiency √ √
• Comfort √ √ √
• Safety √
• Space √ √ √
• Pick up/acceleration √ √
• Power √ √ √
• Colours √ √
• Performance √
Excel Books5– 24 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand and ConsumersC-5 5
Important Attributes Shared/Common Sources of Valued to Competition Discrimination
• Price √
• Image √
• After sale support √
• Fuel efficiency √
• Comfort √
• Safety √
• Performance √