This document discusses how branding influences consumer behavior and decision making. It covers several key points: 1) Branding helps guide consumers' attention and allows them to recognize familiar brands in crowded retail environments filled with choices. This acts as an important mental shortcut for fast decision making. 2) Different branding practices can influence whether consumers notice and recognize products, as well as the feelings they associate with those products. Branding ultimately works as a signal to consumers. 3) Strong branding increases consumers' product knowledge and helps inform their purchasing decisions by building familiarity and positive associations with the brand over time.

1. CONSUMER BEHAVIOR AND THE
INFLUENCE OF BRANDS

2. • Think of an important purchasing decision
you have made
• What are some of the thoughts you have had
following your purchase? Any regrets?
• What has influenced those thoughts?
• How have you dealt with the discomfort?
• How has the company anticipated or dealt with
your discomfort?

3. Decision Processing

4. WHAT'S IN A NAME
If Shakespeare were writing today, he probably would leave out the lines:
"What's in a name? That which we call a rose /
By any other name would smell as sweet.“
Why?
Because studies have shown that, in all probability, sticking that rose in a
Coca-Cola can or a MacDonald's wrapper would really make people
perceive it as smelling that much sweeter.

5. IS THIS PERCEPTION OF BRANDING
AND CONSUMER BEHAVIOR RIGHT
The Answer is No
A brand is more than a name - it is the sum total of a consumer's
experiences with a recognizable product - and it is powerful.

6. HOW DOES BRANDING HELP
PURCHASE DECISIONS
Branding on packaging acts as an important cue to guide
consumer choice in the retail environment.
From a psychological perspective, branding on packaging
serves two important purposes, crucial to decision making:
1) It guides consumers' attention, drawing attention to certain
brands.
2) It allows consumers to recognize and find familiar brands.

7. SOME EXAMPLES OF REMARKABLE
BRANDING ON PACKAGING

8. THE IMPACT OF REDUCED BRANDING
ON CONSUMER CHOICE.
Reducing the branding on packaging can influence
consumer behavior by
Reducing attention to and recognition of certain brands.
Strong evidence from the recognition data suggested that
reducing the size of a logo on packaging impairs consumers'
ability to recognize and find a brand they are looking for.

9. THE IMPACT OF COPYCAT BRANDING
ON CONSUMER CHOICE.
Copycat branding can influence consumer choice.
There is an unmistakable impact of perceptually similar
(copycat) brands on an established brand.
In cases where an established brand was displayed alongside a
copycat supermarket brand, participants were slower and more
inaccurate in identifying the established brand.

10. CLUTTERED RETAIL ENVIRONMENT
In today's cluttered retail environment, consumers are overwhelmed with
choice.
In order to make such fast decisions, consumers need to use mental
shortcuts, or heuristics, to guide their choices.
Perhaps the most powerful mental shortcut available to the consumer is
branding.
Branding on packaging allows us to quickly and efficiently select from a
huge array of products.

11. PSYCHOLOGICAL MECHANISMS THAT
GUIDE CUSTOMERS’ CHOICES
Different types of branding practices can effect consumers choices in a
number of different ways.
First, branding can influence whether consumers notice a product or not,
that is, how much attention is paid to a product.
Second, branding can influence whether and how quickly consumers
recognize a product. This recognition and subsequent memory retrieval
then have a knock-on effect on how consumers feel about that product.
Branding ultimately works as a signal. It allows consumers to quickly
recognize a product as one they are familiar with or one they like. It acts
as a memory cue, allowing consumers to retrieve relevant information
from memory.

14. BRANDING INCREASES PRODUCT
KNOWLEDGE AND HELPS IN BUYING
DECISIONS
Brand image: defined by entire array of associations activated from
memory when consumers think about a brand
May involve product attributes and associations
May also include endorsers, ad campaigns, symbols, product slogans,
etc.

15. PRODUCT KNOWLEDGE
Image analysis: involves examining the current set of brand
associations that exist in the marketplace
Identify attributes and associations that come to mind about the brand
Assess strengths of associations
Examine what an association represents in the consumer’s psyche

17. BRANDING GOES A LONG WAY IN
BUILDING PRODUCTS
Every ad contributes to make the brand what it is in the minds of the
consumer – David Ogilvy
A company’s brand is the primary source of its competitive advantage
and is a very valuable strategic asset – David Aaker
It Emotional bond with the customer
It Generates relationships measurably stronger than ordinary brands

19. BRAND CHALLENGES IN A CHANGING
WORLD
Brand management is as difficult as ever
Savvy consumers
Increased competition
Decreased effectiveness of traditional marketing tools and
emergence of new marketing tools
Complex brand and product portfolios

20. BRANDING IS BECOMING IMPORTANT
Brands are important as ever Why?
Consumer need for simplification
Consumer need for risk reduction
In this difficult environment, marketers must have a keen
understanding of:
Customers
Brands
The relationship between the two

21. RELATIONSHIP BETWEEN BRANDS AND
THE CONSUMER
It is important for the potential consumers to be aware of a product
so that it can become one of the purchasing choices.
A product needs to enter the awareness set before it comes to the
consideration set
If Manufacturers learn how to read their consumers, they can
influence their purchasing decisions.
And this is exactly what they do by branding a product and working
towards its selling power.
A brand allows organizations to differentiate their business from their
competitors. But more importantly, brands help to motivate
customer loyalty.

22. Three Models of Advertising Effect
Hierarchy of
Effects Model
AIDA Model
Perception
Key Advertising
Effects Model
Attention
Cognition
Think
Association
Interest
Affective Response
Feel
Desire
Persuasion
Do
Action
Behavior

23. THE AFFECTIVE OR EMOTIONAL
RESPONSE
• Mirrors a
person’s
feelings about
something
• Stimulates
wants
• Touches the
emotions
• Creates feelings
Wants
• Influenced more by
emotion or desire
• Desire is based on
wishes, longings,
and cravings
Emotions
• Agitates passions or
feelings

25. WHY CELEBRITY ENDORSEMENTS
They motivate consumers
They increase awareness
They create positive feelings towards brands, connect user to
brand
They are used as fire fighters
They provide credibility that reinforces consumer confidence in
brands.
They also act as trendsetters in categories such as fashion,
music, entertainment watches and mobiles.
(Eg: Swatch watch and Dev Anand’s hat.)

26. INDIAN CONSUMER MENTALITY
They look up to certain public faces and aspire to be one among them
Brand Ambassadors connect with a sense of attachment
They give Word of Mouth opinions to the Indian consumers

27. SIX USES OF CELEBRITY ENDORSEMENT
Establishes Credibility
Attracts Attention
Associative Benefit
Psychographic Connect
Demographic Connect
Mass Appeal

29. BRANDING WITH CONTEMPORARY
RELEVANCE
Sometimes Brands leverage contemporary events to make a
connect with the consumer
It could be something to do with sports, politics or even a scientific
invention that could change the way people look at the world
It ultimately helps Brand recall and facilitates purchase

31. CUSTOMER-BASED BRAND EQUITY
MODEL
Basic premise:
Power of a brand resides in the minds of customers
Challenge is to ensure customers have the right types of experiences
with products & services and their marketing programs to create the
right brand knowledge structures:
Thoughts
Feelings
Images
Perceptions
Attitudes

34. IS THE CUSTOMER
REALLY THE KING