REVIEW OF LITERATURE

This chapter deals with the review of literature relevant to effect of branding on consumer
purchase decision. Branding is a process by which a marketer tries to build a long term
relationship with the customer by learning their needs and wants so that the offering could satisfy
their mutual aspirations.
Singh and Singh (1981) in his article entitled A Study of Brand Loyalty in India,
found that consumers had single or multi-brand loyalty based on the nature of product, such as
necessities or luxuries. In addition, brand choice and store loyalty were found to affect the brand
loyalty of the consumer. The factors that influence and strengthen loyalty to brand were quality
of product, habit of use and ready and regular availability.
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. Finally and most importantly, a potential brand is established through
engendering customer preference and loyalty. By doing so, the image of the brand could be well
instilled in the customers mind.
Kumar et al. (1987) in their article entitled Buying Behaviour of Rural consumers,
point out that the factors influencing the buying decision - making of consumers on various food
products. The chief factors influencing the consumers were country of origin, brand and the
socio-economic factors were age, education, and income. Finally, the study identified brand
image seemed to be more important than the origin of the product.
Wayne D.Hoyer and steven.P.Brown (1990) demonstrates that brand awareness exerts
an influence on choice and brand sampling. In particular, it has shown that branding is a
prevalent choice tactic among inexperienced consumers facing a new decision task, subjects who
are aware of one brand in a choice set tend to sample fewer brands across a series of product
trials. They study suggested that consumers choice tactics in purchase of a common, repeatpurchase product tend to change with increasing in making selections.Therefore, the branding
has important effects on consumer choice of a product category.

Assael (1994) explained that consumer behavior as the process of perceiving and
evaluating different components of a purchase. Furthermore, he explains that there are two broad
influences that decide consumer choice. At First, the individual consumers needs, consciousness
of brand characteristics and awareness to alternatives are of significance in the matter of
decision-making. Other factors that influence the choice of brand are the consumers
demographics, lifestyle and personal characteristics. Secondly, the environment has importance
in consumer behavior, which consists of culture, social class and reference groups.
Awais sharif & colleagues (2002) examined that the consumers usually prefer global
and international brands, global brands are less demanded. Global brands possess strong
strategies regarding the prices of their products, quality of their products, advertisement of their
brand and developing strong image of their brands. It is found that the product quality and
product price strongly impacting on consumer buying behavior. When the difference is much
greater between local and global brands then the consumers prefer international brands, where
product quality and product price is not much different then consumers also prefer some local
brands.
Kolter et al (2005) explained that the pre-purchase evaluation that consumers compare
between different products and brands to make a purchasing decision. In this stage, consumers
pay particular attention to the attributes which are most relevant to their needs. Attributes like
quantity, size, quality and price are commonly used to judge a brand by customers. Any changes
in these attributes can affect consumers decisions on brand or product choices.
Ramana and Viswanath (2005) in their article entitled Consumers Behavior and
Awareness with Special Reference to Edible Oil Users, declare that the price, quality, and taste
were the most influencing factors among all categories of consumers than smell, colour and
company package and brand in the purchase of Edible oil. The change in price and quantity of
buying was not influenced the buying behavior of the consumers. Non-availability of a particular
product forced some of the consumers to buy other brands. Reasons for using the same brand
attributes are taste, quality, easy availability and low price. Regarding motivation factors
influencing buying decisions, it was found that head of the family and advice of the family
members were the most influencing factors.

Sathya (2005) in her article entitled that Consumer Awareness and Brand Preference for
Health Drinks, points out that the brand attitude of the consumers depends on the benefit
expected from it and studied the consumer awareness about various brands of health drinks and
brand loyalty of health drinks. The study also concentrates on consumer purchase decision for
number of quality factors, which lead them to select a particular brand in preference to others,
influences health drinks.
Kurt Von Moos (2005) proposed that there is indeed a correlation between the effects of
branding and the consumer purchase decision-making process. It is apparent in how branding
influences the process of learning, the creation of beliefs and the formation of attitudes in various
types of consumer purchasing behavior. However, it must be noted that is also evidence to
suggest that the four different types of consumer purchasing behavior, namely the complex
behavior type, dissonance-reducing buying behavior types, habitual buying behavior type and
variety-seeking behavior type, all exhibited different reaction to branding stimuli. Therefore, one
can conclude that it is essential that marketers individualize the branding process in regards to
these four types of consumer behavior in order to achieve maximum efficiency.
Rosaline Fernandez (2009), to fully understand the potential of branding in terms of its
growth in markets, marketers are more likely to identify the sources of brand meaning,
understanding the meaning, and also to manage it in a fast changing environment. Brand image
is also important for fashion clothing as it can help represent a persons identity
Sudhanshu leekha (2011) examined the effect of branding on consumer purchase
decision. The paper mainly focuses on clothing industry so the findings are limited to clothing
sector. Understanding the effectiveness of branding and its impact on consumers is vital for the
retailers. Product differentiation is also one of the main factors which influence the consumers
purchase decision. Regarding the effectiveness of branding the retailer/ manufacturer has to look
on the following;

The retailer has to analyze the level of competitors and their domestic market conditions.
Consumer always looks for creative and innovative products for their product
differentiation.

Sharma & Pathan (2011) finds that the age & gender does not make much difference in
the opinion of a consumer while choosing a brand. The purchase decision of the consumers
mainly depends on the value of the brand in monetary terms as well as the position it enjoys in
the minds of the people. It is found that primary price of the product also determines the brand
and its consumers buying behavior.
Zeb et al (2011) indicates that the female consumer shows positive attitudes towards
brands and high level of involvement in fashion clothing. Along with that self concept was also
the most important element as consumers use brand related product that matches with their
personality. It is proved that brand shows the social status of the consumers.
Bhuvan Lamba (2012) highlighted that the important factor: brand which influence the
customers regarding buying decision. This study explores the new implications to the
manufacturers related to brand. The influence of brands on consumer buying decision is very
effective today. So, it is the need of hour to focus on the role of a brand which influences the
customers regarding selection of a particular product. The companies have opportunity to grow
up faster with the industry growth. The companies also have the option to tie up with the foreign
brands to increase their market size with the collaborations through FDI. This study explores the
factor brand that influence the customers while purchasing, In future, these factors will become
the strength of the company in attracting the customers towards purchasing their products.
Sawant (2012) proposed that, in todays world a brand occupies a very important place in
the mind of customers. A brand, by definition, is a short hand description of a package of value,
on which consumes can rely to be consistently the same or better over a period of time. The
owner of a registered brand personally stands behind the branded and offers personal guarantee
for maintaining the quality and standards of the product.
Egle Petrauskaite (2014) proposed that Advertisement creates brand awareness among
the consumer, this influence the consumer to buy brands. Various advertising methods are used
and this methods influence brand image through a consumers perspective. It is found that
consumers tend to buy quality products if the brand is well known. The brand equity can be
strengthened by repeated purchases. Product differentiation also makes the consumers to stick on
brands.

Abdurrahman Isik, Mehmet Fatih Yasar (2015) examined that the concept for brand
variable effects consumers preferences. This study illustrates that brand name of a product has
more likely a strong impact on the decision making process of a consumer. Brand image also
plays a vital role in consumer purchase decision. It also implies that brand creates consumer
awareness and desirability that can facilitate consumer decision making and activate brand
purchase. Peoples brand experiences built consumers preferences toward certain brands directly
or indirectly.
Neyati Ahuja (2015) proposed that 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. From the
overall research we came to the know that brands have an effect on the consumer mind in many
ways like quality, rates, income, age groups etc. Even in the fashion industries brand have a
significant effect on consumer behavior.
Rose Lwitiko Mwambusi (2015) Conditions of competition are changing rapidly today
and companies that strategize and react to these changes promptly and quickly are the most
successful. Due to technological developments, physical differences of products have decreased.
Differentiation should be made on the meanings products bear instead of on their physical
features. The price of the product also influences the consumers, it is also important to identify
the quality of the brands. Successful branding is about promoting your strengths. Firms need to
be sure that they can always deliver on their promises using these strengths, referred to as brand
values.
Heidi Cohen (2015) in his article stated that A brand is the identity that your company,
product, or service has over time. It incorporates both the visual and communicated aspects as
defined by the enterprise, as well as the perceived identity from others outside the company. The
visual aspects include logos, graphics, colors, sounds, and video. The communicated aspects
include emotion, culture, personality, experience, and conscience of the corporation and the
people within it.