CHAPTER – I

INTRODUCTION TO THE PROJECT

BRAND
Brand is a Guarantee, an assurance for a defined standard of quality for the first time
and for every time but not the vice versa. Brand is name or logo that plays the role in the
mind of the customer. Brands do not compete in the product area but compete for the mind
space of the customer. A brand once established in the mind of the customer becomes
indelible when customer identifies itself with that particular Brand. Branding is an effective
marketing strategy tool that has been used with frequent success in the past. Branding can be
an effective and powerful tool for all types of business organizations. If brand owners use
their product correctly, the payoffs can be substantial. However, if brands are mismanaged,
the results can be damaging. This report is aimed to investigate the effect of brand on
consumer buying behavior. How much consumers are prepared to pay for branded products,
how important they consider price, brand or other factors during their purchasing decisions.
The Report aimed at comprehensive literature review on branding, brand loyalty, brand
awareness, brand equity and brand perceptions, price sensitivity and willingness to pay.

Brand these days have become a status symbol. Customers all over the world now
prefer branded products. But why is the question. Is it the quality that attracts customers
towards brand or some other related factor? This study is aimed at analyzing the effect of
brand on consumer buying behavior. Along with finding the effect of brand on consumer
buying behavior the purpose of the study is to have an in depth knowledge of what actually is
branding and consumer behavior. All the study has been conducted with reference to fashion
industry in India. Firms in fashion industry are competing to increase their profit share in the
market and among these firms; branded clothing & accessories has shifted the conventional
style & interest of people. A brand which is sold at a high price and the other which is sold at
low price while both have same quality and attributes, why is that? Brand studies always have
remained the key attention of the marketer’s because of its importance and direct relationship
with consumers. Marketers use brands as to get the competitive advantage on other
competitors playing an imperative role in the success of companies. Brand holds a great
importance in consumer’s life. Consumer’s choose brands and trust them the way they trust
their friends and family members to avoid uncertainty and quality related issues. India has a
successful growing economy and the Fashion industry of the country has advanced
tremendously in the recent years. The increasing use of fashion goods and the emerging
market has intrigued foreign as well as local brands to provide services to its customers.

The concept “brand image” has drawn significant attention from academics and
practitioners since it was put forward, because it played an important role in marketing
activities. Although brand image was recognized as the driving force of brand asset and brand
performance, few studies have elaborated on the relationship between brand image and brand
equity. Based on the brand image theories, this study reviewed extant studies about the
impact of brand image on consumer from perspective of customer equity. It also presented
the shortcomings of current research and pointed out the trends for future study. The topic of
consumer behaviour is one of the massively studied topics by the researchers and marketers
in the past and still being studied. Researchers show different reasons as to why consumer
behaviour has been the topic of many academics and researchers. One of the common views
is that understanding consumer behaviour has become a factor that has a direct impact on the
overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that
understanding consumer behaviour has become crucial especially due to fierce competition in
retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce
some other areas of research background of consumer behaviour addressing the works of
researchers and marketers. Moreover, consumer decision making process, in particular, five
stages of consumer decision making process will be discussed in detail.

In order to fully answer this research question, the following objectives have been set:
• Set a valid and sustainable research question in order to achieve a non-bias and accurate
understanding on the topic in question; • Present the key concepts behind branding, its values
and its usage in modern day marketing campaigns by reviewing current literature pertaining
to the subject matter; • Determine whether a correlation between consumer identities and
perceived brand identities is present; • Determine the impact of branding on the consumer
purchase decision-making process The image surrounding a company's brand is the principal
source of its competitive advantage and is therefore a valuable strategic asset. Unfortunately,
many companies are not adept at disseminating a strong, clear message that not only
distinguishes their brand from the competitors', but distinguishes it in a memorable and
positive manner. The challenge for all brands is to avoid the pitfalls of portraying a muddled
or negative image, and instead, create a broad brand vision or identity that recognizes a brand
as something greater than a set of attributes that can be imitated or surpassed. In fact, a
company should view its brand to be not just a product or service, but as an overall brand
image that defines a company’s philosophies. A brand needs more than identity; it needs a
personality. Just like a person without attention-grabbing characteristics, a brand with no
personality can easily be passed right over. A strong symbol or company logo can also help
to generate brand loyalty by making it quickly identifiable.

CONCEPT OF BRANDING

Branding more or less for centuries has been a mean to differentiate goods of one
producer from that of another. Brand studies have always remained a key attention of
marketers because of its importance and direct relationship with consumers. Several studies
illustrate that, marketers use brands as the primary point of differentiation to get that
competitive advantage on other competitors playing an imperative role in the success of the
company. Brand holds a very significant place in the life of a consumer. Consumers choose
brands and trust them to avoid uncertainty and quality related issues. Brand serves as a
pivotal role for distinguishing goods and services from those of the competitors. Aaker
(1991) and Murphy (1998).the emergence of brand equity underlies the importance of brand
in marketing tactics and hence provides useful insights for managers and further research,
Keller (2003). A brand can be an everlasting and lucrative asset as long as it is maintained in
a good manner that can continue satisfying consumers’ needs,Batchelor(1998)
andMurphy(1998). Although successful brands can be totally different in nature, they share
something in common, for instances well-priced products and consistent
quality,Murphy(1998). As mentioned by Levitt (1983), there are four elements for building a
successful brand, namely tangible product, basic brand, augmented brand and potential brand.
Tangible product refers to the commodity which meets the basic needs of the customers.
Basic brand, on the other hand, considers the packaging of the tangible product so as to
attract the attention from the potential customers. The brand can be further augmented with
the provision of credibility, effective aftersales services and the like.
 Brand is a name in every customer mind Mooij (1998) and it is characterize by a
noticeable name or symbol which can differentiate the goods and services from the rivals
Aaker(1991) and Keller(1998).in addition to a specific brand name, a brand is composed of
products, packaging, promotion, advertizing as well as its overall presentation,
Murphy(1998). From the consumer’s perspective, brand is a guarantor of reliability and
quality in consumer products. Roman et al (2005) added to this, consumers would like to buy
and use brand-name products with a view to highlight their personality in different situational
contexts, Aaker (1999) and Fennis and Pruyn (2006). Nowadays, consumers have a wide
range of choice to choose from when they enter a shopping mall. It is found that consumers’
emotions are one of the major determinants which affects their buying behavior Berry (2000).
According to a research conducted by Freerdie Media LLC(1998) on shopping habits, nearly
one-fourth of the respondents are impulse –buy products they have not budgeted for. When
deciding which products to purchase, consumers would have their preference, which are
developed in accordance with their perceptions towards the brand. Successful branding could
make consumers aware of the presence of the brand and hence could increase the chance of
buying the company’s product and services,Doyle (1999).

Branding in Today’s Markets A central function of branding is the facilitation of the

consumer choice process. Due to the complexity of having to select a product amongst
thousands of similar offerings, consumers will instinctively attempt to simplify their choice
process by selecting brands that have satisfied them in the past. Thus, one can conclude that
pleasant past experiences is highly conducive to consumers associating benefits to a brand.
One can conclude that a central function of branding is its ability to negate the need for a
consumer to seek out information when a need or a want has been recognized, but rather, lead
him to a brand that has been satisfying in the past.. One must acknowledge however, that
frequent purchasing of a brand cannot always be linked to previous experiences, but can
alternatively be formed by embedded perceptions. A consumer might strongly favour a brand
with no prior purchasing experience. This type of consumer behavior is based on stimulus
provided by direct exposure to advertising campaigns, a company’s PR efforts or even a high
concentration of local distribution in an area that is in close proximity to a consumer. In terms
of companies’ views on branding, it can induce the natural differentiation of their offerings,
which ultimately, will produce a state of competitive advantage. Differentiation can only
allow for competitive advantage if the cost of differentiating is significantly lower than the
revenue earned by the sales. Differential advantage allows companies to showcase their offer
in respects to other competitors in the same marketplace.

The term brand equity refers to a set of assets and liabilities associated with a brand,
including its name and symbol, which could impose beneficial or detrimental effects on the
values arising from the products or services Aaker (1991) and Yasin et al. (2007). Added to
this, Keller (1998) points out that brand equity signifies the unique marketing effects imposed
on the brand. Concerning the positive side of brand equity, it happens when consumers are
willing to pay more for the same level of quality just because of the attractiveness of the
name attached to the product Bello and Holbrook (1995). However, brand equity could be
ruined if it is not properly managed. For instance, poor product quality and customer services
could adversely affect the brand image, giving rise to a reduction in sales volume. One of the
quintessential examples regarding brand as a kind of equity is the imposition of laws to
protect intellectual property, Murphy (1998). In countries with well-established legal system,
the values of brands have been recognized to both the consumers and producers. In order to
combat piracy, many countries have set up laws to protect trademarks, patents, designs as
well as copyright. In addition, brand is also a tradable product with measurable financial
value, Murphy 1998). It is not uncommon to find some familiar brands listed on the stock
markets in which they could be bought or sold. Brands like HSBC, Marks and Spencer,
Vodafone, Sainsbury and Tesco are all listed on the FTSE 100 index (London Stock
Exchange, 2007). It is found that the volatility of stock market could affect consumers’
purchasing mood, not to mention the growth or declines of retail sales Blackwell (2002).

EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR

Brand Awareness. Brand awareness is one of major determinants of brand equity. It

refers to the ability of a potential consumer to recall and recognize the brand, linking the
brand with its corresponding product class,Aaker (1991). The level of brand awareness lies in
a continuum, with brand recognition being the lowest level and the first named brand with
unaided recall being the highest level. It is important for the potential consumers to be aware
of a product so that it can become one of the purchasing choices. This is due to the fact that
the product needs to enter the awareness set before it comes to the consideration
set,Blackwell et al. (2001) and an increase in brand awareness is conducive toa higher chance
of entering the later set Nedungadi, (1990). In this way,brands with higher level of awareness
would be more likely to be purchased, Yasin et al. (2007). This could probably explain why
consumers tend to buy a recognizable brand rather than an unfamiliar one,Hoyer (1990) and
Macdonald and Sharp, (2000). Several factors can alter the level of brand awareness. In case
of China, its geographical location and politics could affect the consumer brand awareness
level seriously. According to research conducted by Delong et al. (2004), owing to
geographical differences, Chinese consumers cannot distinguish US product brand names
from the European ones.
CONSUMER BUYING BEHAVIOUR

Buying behaviour is an important aspect of consumer behaviour. If a marketer can

identify consumer buying behaviour, he/she will be in a better position to target products and
services at them. Buyer behaviour is focused upon the needs of individuals, groups and
organizations. It is important to understand the relevance of human needs to buying
behaviour since marketing is all about satisfying needs. Abraham Maslow's hierarchy is
triangular. This is because as you move up it, fewer and fewer people satisfy higher level
needs. Physiological needs such as food, air, water, heat and the basic necessities of survival
need to be satisfied. At the level of safety, man has a place to live that protects him from the
elements and predators. At the third level we meet our social and belongingness needs i.e. we
marry, or join groups of friends etc. The final two levels are esteem and self-actualization.
Fewer people satisfy the higher level needs. Esteem means that you achieve something that
makes you recognized and give personal satisfaction for e.g. writing a book. Self-
actualization is achieved by few. Here one is the one of a small number who actually do
something worthwhile e.g. Dr. APJ Abdul Kalam self - actualized as the father of the Indian
nuclear and missile mission. To understand consumer buying behaviour is to understand how
the person interacts with the marketing mix. The marketing mix inputs i.e. the four Ps of
price, place, promotion and product are focused upon the consumer. The psychology of each
individual considers the product or service on offer in relation to their own culture, attitude,
previous learning, and personal perception. The consumer then decides whether or not to
purchase, where to purchase, the brand that he or she prefers, and other choices.
OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE

 To analyse the consumer buying behaviour with reference to Ponmani garments.

SECONDARY OBJECTIVES

 To identify the users &non-users of Ponmani garments.

 To arrive at the average buying process of products in Ponmani garments.

 To identify various brands operating in the market.

 To identify the most preferred brand.

 To analyse the reasons for poor intake of Ponmani garments.

SCOPE OF THE STUDY

This project gives an insight into consumer buying behavior of Ponmani garments and
brings to light, the reasons why consumers prefer other brands and areas where the company
should strengthen its position.
NEED OF THE STUDY

Buyer behavior is studied to predict buyers’ reaction in markets. If a firm understands

its customers, it becomes successful in the market place. The success of any business is based
on understanding the consumer and providing the kind of products that the consumer wants.
The consumer decides what to buy, when to buy and also what not to buy. One cannot
thrust a product on a consumer. A marketer sells what the consumer wants. So, emphasis is
placed on knowing what the consumers’ wants are.
RESEARCH METHODOLOGY

STAGES OF RESEARCH PROCESS

1) Defining problem

The task of formulating or defining, a research problem is a step of greatest

importance in the entire research process.

2) Developing Research Plan

The function of research plan is to provide for the collection of relevant evidence
with mineral expenditure effort, time and money.

3) Implementing Research Plan

In survey data can be collected through observation, personal interviews, telephone

interviews, mailing of questionnaires and through schedules.

Coding, editing and tabulation is done is the analysis of data. Analysis of work is
generally based on the computation of various percentages, co-efficient etc.

4) Interpreting the Findings

If the researchers had no hypothesis to start with, he might seek to explain his
findings on the basis of some theory. It is known as interpretation.

RESEARCH PROBLEM

Since there is a problem in garments industries, as Ponmani Garments is being

running in the textile field, so purchasing behaviour is being qualified better in Ponmani
Garments so research problem has been conducted in this area.
RESEARCH PLAN

The present study is done in Ponmani Garments, one of the leading export company
dealing in knitted and woven garments in Tiruppur. This research is done not only to know
the Purchasing behaviour level in the company but also the problems and hindrances that
employees face in getting their satisfaction and the level of fulfillment of the expectations of
customer buying behaviour by the company.

POPULATION SIZE

The size taken for the survey in staff category is population size which is 100
respondents.

SAMPLE SIZE AND SELECTION PROCEDURE

SAMPLE SIZE

The size taken for the survey in workers category is sample size which is 100
respondents.

SAMPLING TECHNIQUE

In this study, the probability method is used under simple random sampling technique
for collection of resources.

STATISTICAL TOOLS USED FOR ANALYSIS

The various statistical tools used for analysis are:

1) Chi- Square Test

2) Percentage method

DATA COLLECTION METHOD

The study involved both primary and secondary data. The secondary data were
collected from the records of the company and other published reports. The primary data
were collected from the respondents on opinion survey basis. The staff and worker were
interviewed by the investigator personally, and they were encouraged to share their opinions,
feelings, problems and suggestions regarding their work.

PROBLEMS EXPERIENCED IN RESEARCH

The study was restricted with single firm, so we cannot conclude that all the textile
employees are in same opinion level. In this also data provided by the respondents may be
limited with their knowledge and memory capacity. So the reliability of the results becomes
approximation not a accurate. Not only that due to time constraint the number of respondents
are also fixed to certain level to complete this study within time.

LIMITATIONS OF THE STUDY

 In the absence of owners, the researcher could not elicit good response from the
others present.

 Only limited information was provided when customer were contacted.

 The time span for research was very limited.