Relationship Between Brand Equity and Customer Purchasing Behavior Term Paper

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Brand Equity and Customer Purchasing Behavior

Taking into account the numerous modifications witnessed in the marketing milieu- viz. The accessibility to plethora of knowledge through various electronic devices, the emergence of modern methods of buying, the ability of the companies to use technology to target consumer more specifically, getting a feel of customer tendencies is still more difficult. Purchasing activities is the sequence of choice and actions of individuals occupied in procuring and consuming the same. An enterprise must evaluate its purchasing activities. Purchaser's responses to the marketing technique of the enterprise put an enormous influence on the achievement of the enterprise. The marketing perception highlights that an enterprise must build up a unique blend of marketing initiatives that makes the customers happy, and hence the urgency to evaluate the substance, the place, the time and the purchasing pattern of consumers and by way of addressing this, marketing personnel can project in an improved fashion the response of the customers to various marketing techniques. (Rayport, Sviokla, 1995, p. 147)

The categories of customer purchasing tendencies are found out by the extent of involvement in the purchasing choices. Magnitude and the ardor of fondness towards a commodity in a specific circumstance; and the purchaser's degree of involvement establishes the reasons behind a person getting interested to find out knowledge regarding some commodities and brands, yet almost overlooks others. Outcomes of research conducted over the years have revealed that the impression and mindset of the customer evaluated severally have an unequivocal connection to the market stance of the brand and performance of the business and endurable resources and by any business or technological sequence of smaller durations. They produce endurable resources and hence consistent revenue in favor of a business. An enterprise, which chooses a strategic branding positioning for contending intentions, will as a consequence put down the crucial foundation for improved corporate administrative prowess. Researches on equity normally orient features explicit to a brand or group, to recognize the distinctive equities that place and set apart particular brands from the rest. (Keller, 2002, p. 46)

Brand equity is explained as the various impacts of awareness regarding brands on the consumer buying tendencies. The main significant component is the existence of variety of brands. In the absence of this, a brand becomes at par with another brand and hence cannot command extra price to justify its quality. The second component is brand awareness. The customers should be aware of the exclusive status of the brand and what it signifies. They must be conscious of it, and must understand that the variation remains comprehensible to them. The ultimate crucial component of this explanation is consumer reaction. Consumers must answer positively to this variation. The reaction must be reproduced in their yearning to exhibit certain allegiance to the commodity, and in their readiness to pay higher price for their choice. (Crimmins, 1992, p. 15)

Considering the position of a firm, awareness regarding a brand can be created. In the end, brand equity leads to exemplary performance, which is the capability to bring-in monetary earnings for extended times of time. The two pointers of the potency of the brand to rake in monetary profits on a long-term basis are brand loyalty and the capability to dominate the price segment demanding a higher price. Better-quality brands are better visionaries. They are committed to the cause of something vital and appropriate to their prospects, and they go on performing it persistently. This does not come by all of a sudden; managers must ground their leadership status for their brands with precision and steadiness. (Anderson; Cleveland; Schroeder, 1989, p. 58)

The significance of the brand equity lies in its extension of liberty with regard to the brand choice resulting in brand loyalty and protects the brand from being vulnerable to the contests from its rivals. It has various inferences. Firstly, it strives to have a favorable representation so as to strengthen its stand and to isolate from the rivalry and take it more quickly towards supremacy in the industry. It enables to product to exercise price discrimination and lures the customers to strive for the branded product. Secondly, the brand equity infuses consciousness among the consumers which enhances the marketing interaction. The terminology brand equity has formed the essence of many analyses and has been perceived from different angles. This has been defined in many occasions as the supplementation of the worth of the product that the brand name contributes. The additional worth of the product as a result of the brand equity is perceived as the radiation that surpasses the present product categories with that of the other product classes. Commonly, the brand equity is found to be the consequences of all sorts of actions necessary to promote the brand. It is therefore, perceived in terms of the brand centered implications of such actions on marketing. (Aaker, 1996, p. 44)

Presently it attracted notice of many for various factors the first of all being as a growing impetus for enhancing the marketing potentialities of the product. This motive increases the efforts of the entrepreneurs to make the most out of the increased productivity. Besides the success stories in respect of the enhanced efficiency out of the combined efforts, stability and pairing of the products made the entrepreneurs to become aware of the intrinsic value of the products and led them to find out the alternatives to thrive against the adversaries of flat markets, enhanced expenses, and increased international rivalry. The texts on brand equity mostly concentrate on two basic facts. Some texts mostly concentrate on the financial implications of the brand equity more significantly the methodology to find out the worth of the brand name with a view to estimating in connection with merger and acquisition. Other texts concentrate mostly on the reactions of the consumers with regard to a particular brand. The distributors in the market mainly are interested in these effects on the consumers and visualize it as the combination of many real effects. (Pitta; Katsanis, 1995, p. 52)

Marketing professionals depend upon advertisement as a single fundamental instrument to build up and cultivate Brand Equity. Daily, the citizens are relentlessly attacked with a barrage of advertisements, testimonials, and advices on usage of commodities. Each of these exercises is an endeavor to persuade the person to procure a specific commodity since it will present them some contentment to their being. The duty of the marketing professional is to launch a marketing technique which will be fruitful towards this objective. Advertisement puts a remarkable influence and is totally indispensable to the profitability of enterprises in aggressive markets. Due to this reason, American companies annual spending on advertisement runs into billions. The quantity of funds corporations earmark for advertisement frequently exceeds the total profits after tax these companies earn. A lot of enterprises also shell out billions to engage the services of marketing research outfits to gather knowledge and find out which manner of enticing mechanism functions in a better fashion to accomplish the selling of their commodities. (Gilligan; Wilson, 1997, p. 68)

An alternative initiative to advertisement might be to initially find out an enhanced appreciation of why some processes are more fruitful in persuading buyers to buy commodities. This knowledge might equip marketing research experts with a pristine perception regarding the knowledge as to which commodity will be in accordance with each enticing procedure. Advertisement accomplishes two functions. To start with, advertisement instantly draws a very little amount of customers. Secondly, for the more proportion of persons who are subjected to the advertisement by watching or listening to the advertisement, that particular advertisement caters to acquaint them with the existence of the firm, yet they do not jump into the customer bandwagon instantly. (Baker, 2000, p. 18)

The two categories are extremely crucial to the effectiveness of advertisement, albeit in exceedingly diverse manners. The first category, the miniscule minority who is the early adopter turns out to be the instant customers, are tremendously vital to the companies in vastly aggressive markets. In markets where competition is cutthroat, the customers have demonstrated an analogy akin to that of 'sway' electorates are to political parties during elections which is extremely indispensable for triumph. The significance of the second category is due to the existence of the first category. This category joins the ranks of the customer of the advertisement pie following the action and due to many allied causes, comprising the exclusion of the substitutes because of the constricted market conditions. Self-indulgence, desire and usefulness of an advertisement have been acknowledged as the essential elements of outlook to the ad. (Gruen, 1995, p. 448)

Outlook toward the advertisement is generally undertaken for assessment of the usefulness of advertisement. This has been due to the studies that have referred to the feelings to a customer's advertisement's job as an intermediary of the advertisement's influences on brand calls outlook. Advertisement performs diverse functions - for instance, as a pointer of value, to hand out knowledge, as a…[continue]

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