1.

0 Background of the Study

For many businesses, brand name and what it represents are its most important assetsthe basis of
competitive advantage and of future earnings streams ( 2002). Traditionally, a brand has been defined as "a name,
term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of competitors ( 1991). However, in the modern context,
branded name products are a symbol, design, or mark that enhances the value of a product beyond its functional
purpose.
Furthermore, some people distinguish the psychological aspect of a brand from the experiential aspect. The
experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience.
The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the
minds of people and consists of all the information and expectations associated with a product or service (1991).
Consumers have to rely on brand names and company reputations associated with them because of the asymmetric
information. One of the many issues brand name causes is that it gives the company a certain market power to
charge more than its competitors. And if there is no difference between the products of different companies in the
same industry, consumers will be paying a higher price just for the quality assurance. Additionally, most consumers
prefer purchasing only those products and services that they might be familiar with. Since branding helps create such
perceptions among the target audience, it goes a long way in determining customer purchasing behavior.
2.0 Statement of the Problem
What are the factors that influence the decision making of consumers towards buying unfamiliar brands when
considering the importance of brand name? How are the issues of perceived risk, perceived brand difference,
association of brand name and customer values as major influencing factors in making buying decisions affect
towards consumer purchasing behavior? Consumer perceptions on brand names in reference to brand risk and
brand differences have been the prime factors in making a buying decision for new brands among the consumers.
What makes a consumer choose a branded item over a non-branded item? What are the types of consumer
purchasing behavior? What are the dynamics of why a consumer becomes loyal to particular brand? Brand name has
a power, which attracts the customers towards branded products. The reason is that customer gets a special
connection with a specific brand product and become loyal with the brand. Almost all consumers pay more for brand
name assurance.
3.0 Objectives of the Study

The main purpose of this study is to analyze the several activities of businesses in marketing themselves in
having particular followers or cult through branding. This research, specifically, purports to determine how these
activities affect the consumer purchasing behavior and to distinguish the role of the businesspersons in attracting and
making a consumer become loyal to their products. This research takes into account the practices that affect
consumer purchasing behavior, recognizing the economic, social, and environmental aspects of the consumers. The
study also seeks to investigate the relationship between brand names and consumers' perceived risk and evaluate
the five stages and types of consumer purchasing behavior.
4.0 Research Methodology
This study will use the descriptive type of research. A descriptive research intends to present facts
concerning the nature and status of a situation, as it exists at the time of the study and to describe present conditions,
events or systems based on the impressions or reactions of the respondents of the research (1994). It is also
concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being
felt, or trends that are developing (1970).
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to
provide adequate discussion for the readers that will help them understand more about the issue and the different
variables that involve with it. The primary data for the study will be represented by the survey results that will be
acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the
study will represent the secondary data of the study.
The research will be presented in written form with the addition of data charts, which will present the projects
results. Pie charts and network charts will be needed to illustrate some of the analyzed data. This cannot be confirmed,
however, until the research data have been analyzed.