BRAND IMAGE AND IT’S IMPACT ON BUYING BEHAVIOUR

DISSERTATION/PROJECT

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

M.COM

IN

COMMERCE

BY

SUDESHNA ROY CHOWDHURY

[ROLL NO: 2010311022]

UNDER THE GUIDANCE OF

DR.HEMANT KUMAR

M.COM

Shri Krishna University

N-H 86, Village Chauka, Sagar Road, Chhatarpur, Madhya Pradesh

11-2022
 BRAND IMAGE AND IT’S IMPACT ON BUYING BEHAVIOUR
M.com 4th Semester

Dr. Hemant Kumar

SHRI KRISHNA UNIVERSITY,CHHATARPUR(M.P)

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Name of the Guide: Dr. Hemant Kumar Name of the student: Sudeshna Roy Chowdhury
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Research work has been completed by me, is my original work and is completely owned by me. I completed
this Research work under the guidance/supervision of Prof/Dr. Hemant Kumar Department of Commerce.

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project entitled BRAND IMAGE AND IT’S IMPACT ON BUYING BEHAVIOUR under my
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 Outline of Research Work

 Introduction of research work.

 Acknowledgement.

 Table of content.

 Aim/Objectives of the study.

 Scope of study.

 Experiences faced during Research work.

 Findings and conclusion.

 Suggestions and policy Implications.

 References and bibliography.

 Introduction of research work.
A brand is a name, term, design,
symbol or any other feature that distinguishes one seller's good or service from those of other sellers.Brands are
used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand
equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Brand
names are sometimes distinguished from generic or store brands.
The practice of branding - in the original literal sense of marking by burning - is thought to have begun with
the ancient Egyptians, who are known to have engaged in livestock branding as early as 2,700 BCE. Branding
was used to differentiate one person's cattle from another's by means of a distinctive symbol burned into the
animal's skin with a hot branding iron. If a person stole any of the cattle, anyone else who saw the symbol could
deduce the actual owner. The term has been extended to mean a strategic personality for a product or company,
so that "brand" now suggests the values and promises that a consumer may perceive and buy into. It includes
the voice and the tonality of the business. Over time, the practice of branding objects extended to a broader
range of packaging and goods offered for sale including oil, wine, cosmetics, and fish sauce and, in the 21st
century, extends even further into services, political parties and people (e.g. Lady Gaga and Katy Perry).
Branding in terms of painting a cow with symbols or colors at flea markets was considered to be one of the
oldest forms of the practice.
In the modern era, the concept of branding has expanded to include deployment by a manager of
the marketing and communication techniques and tools that help to distinguish a company or products from
competitors, aiming to create a lasting impression in the minds of customers. The key components that form a
brand's toolbox include a brand's identity, personality, product design, brand communication (such as
by logos and trademarks), brand awareness, brand loyalty, and various branding (brand management)
strategies. Many companies believe that there is often little to differentiate between several types of products in
the 21st century, hence branding is among a few remaining forms of product differentiation.
Brand equity is the measurable totality of a brand's worth and is validated by observing the effectiveness of
these branding components. As markets become increasingly dynamic and fluctuating, brand equity is built by
the deployment of marketing techniques to increase customer satisfaction and customer loyalty, with side
effects like reduced price sensitivity. A brand is, in essence, a promise to its customers of what they can expect
from products and may include emotional as well as functional benefits. When a customer is familiar with a
brand or favors it incomparably to its competitors, a corporation has reached a high level of brand equity.
Special accounting standards have been devised to assess brand equity. In accounting, a brand, defined as
an intangible asset, is often the most valuable asset on a corporation's balance sheet. Brand owners manage their
brands carefully to create shareholder value. Brand valuation is a management technique that ascribes
a monetary value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio
of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet,
the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the
brand and managing for value.
The word "brand" is often used as a metonym referring to the company that is strongly identified with a
brand. Marque or make are often used to denote a brand of motor vehicle, which may be distinguished from
a car model. A concept brand is a brand that is associated with an abstract concept, like breast-cancer
awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a
brand associated with a commodity.
The word, brand, derives from its original and current meaning as a firebrand, a burning piece of wood. That
word comes from Old English byrnan, biernan, and brinnan via Middle English as birnan and brond. Torches
were used to indelibly mark items such as furniture and pottery, and to permanently burn identifying marks into
the skin of livestock and even slaves. Later the firebrands were replaced with branding irons. The marks
themselves took on the term and came to be closely associated with craftsmen's products. Through that
association, the term evolved to its current meaning.

Branding and labeling have an ancient history. Branding probably began with the practice of branding
livestock to deter theft. Images of the branding of cattle occur in ancient Egyptian tombs dating to around 2,700
BCE. Over time, purchasers realized that the brand provided information about origin as well as about
ownership, and could serve as a guide to quality. Branding was adapted by farmers, potters, and traders for use
on other types of goods such as pottery and ceramics. Forms of branding or proto-branding emerged
spontaneously and independently throughout Africa, Asia and Europe at different times, depending on local
conditions. Seals, which acted as quasi-brands, have been found on early Chinese products of the Qin
dynasty (221-206 BCE); large numbers of seals survive from the Harappan civilization of the Indus Valley
(3,300–1,300 BCE) where the local community depended heavily on trade; cylinder seals came into use in Ur in
Mesopotamia in around 3,000 BCE, and facilitated the labelling of goods and property; and the use of maker's
marks on pottery was commonplace in both ancient Greece and Rome. Identity marks, such as stamps on
ceramics, were also used in ancient Egypt.
Diana Twede has argued that the "consumer packaging functions of protection, utility and communication have
been necessary whenever packages were the object of transactions".She has shown that amphorae used in
Mediterranean trade between 1,500 and 500 BCE exhibited a wide variety of shapes and markings, which
consumers used to glean information about the type of goods and the quality. The systematic use of stamped
labels dates from around the fourth century BCE. In largely pre-literate society, the shape of the amphora and its
pictorial markings conveyed information about the contents, region of origin and even the identity of the
producer, which were understood to convey information about product quality. David Wengrow has argued that
branding became necessary following the urban revolution in ancient Mesopotamia in the 4th century BCE,
when large-scale economies started mass-producing commodities such as alcoholic drinks, cosmetics and
textiles. These ancient societies imposed strict forms of quality-control over commodities, and also needed to
convey value to the consumer through branding. Producers began by attaching simple stone seals to products
which, over time, gave way to clay seals bearing impressed images, often associated with the producer's
personal identity thus giving the product a personality. Not all historians agree that these markings are
comparable with modern brands or labels, with some suggesting that the early pictorial brands or simple
thumbprints used in pottery should be termed proto-brands while other historians argue that the presence of
these simple markings does not imply that mature brand management practices operated.
Amphorae bearing a titulus pictus and potters' stamps, found at Monte Testaccio

Scholarly studies have found evidence of branding, packaging, and labeling in antiquity. Archaeological

evidence of potters' stamps has been found across the breadth of the Roman Empire and in ancient Greece.
Stamps were used on bricks, pottery, and storage containers as well as on fine ceramics. Pottery marking had
become commonplace in ancient Greece by the 6th century BCE. A vase manufactured around 490 BCE bears
the inscription "Sophilos painted me", indicating that the object was both fabricated and painted by a single
potter.Branding may have been necessary to support the extensive trade in such pots. For example, 3rd-century
Gaulish pots bearing the names of well-known potters and the place of manufacture (such as Attianus
of Lezoux, Tetturo of Lezoux and Cinnamus of Vichy) have been found as far away as Essex and Hadrian's
Wall in England. English potters based at Colchester and Chichester used stamps on their ceramic wares by the
1st century CE. The use of hallmarks, a type of brand, on precious metals dates to around the 4th century CE. A
series of five marks occurs on Byzantine silver dating from this period.
 Copper printing-plate including the White Rabbit trademark of Jinan Liu's Fine Needles Shop, Chinese, Song
Dynasty (960-1127 CE)

Some of the earliest use of maker's marks, dating to about 1,300 BCE, have been found in India. The oldest
generic brand in continuous use, known in India since the Vedic period (c. 1100 BCE to 500 BCE), is the herbal
paste known as chyawanprash, consumed for its purported health benefits and attributed to a revered rishi (or
seer) named Chyawan. One well-documented early example of a highly developed brand is that of White
Rabbit sewing needles, dating from China's Song dynasty (960 to 1127 CE). A copper printing plate used to
print posters contained a message which roughly translates as: "Jinan Liu’s Fine Needle Shop: We buy high-
quality steel rods and make fine-quality needles, to be ready for use at home in no time." The plate also includes
a trademark in the form of a 'White Rabbit", which signified good luck and was particularly relevant to women,
who were the primary purchasers. Details in the image show a white rabbit crushing herbs, and text includes
advice to shoppers to look for the stone white rabbit in front of the maker's shop.

Roman oil lamp, showing underside with maker's mark. Museo Bellini

In ancient Rome, a commercial brand or inscription applied to objects offered for sale was known as a titulus
pictus. The inscription typically specified information such as place of origin, destination, type of product and
occasionally quality claims or the name of the manufacturer. Roman marks or inscriptions were applied to a
very wide variety of goods, including, pots, ceramics, amphorae (storage/shipping containers) and on factory-
produced oil-lamps. Carbonized loaves of bread, found at Herculaneum, indicate that some bakers stamped their
bread with the producer's name. Roman glassmakers branded their works, with the name of Ennion appearing
most prominently.
 Mosaic showing garum container, from the house of Umbricius Scaurus of Pompeii. The inscription, which
reads "G(ari) F(los) SCO(mbri) SCAURI EX OFFI(CI)NA SCAURI", has been translated as: "The flower of
garum, made of the mackerel, a product of Scaurus, from the shop of Scaurus"

One merchant that made good use of the titulus pictus was Umbricius Scaurus, a manufacturer of fish sauce
(also known as garum) in Pompeii, circa 35 CE. Mosaic patterns in the atrium of his house feature images of
amphorae bearing his personal brand and quality claims. The mosaic depicts four different amphora, one at each
corner of the atrium, and bearing labels as follows:
1. G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI (translated as: "The flower of garum, made
of the mackerel, a product of Scaurus, from the shop of Scaurus")
2. LIQU[minis]/ FLOS (translated as: "The flower of Liquamen")
3. G[ari] F[los] SCOM[bri]/ SCAURI (translated as: "The flower of garum, made of the mackerel, a product
of Scaurus")
4. LIQUAMEN/ OPTIMUM/ EX OFFICI[n]/A SCAURI (translated as: "The best liquamen, from the shop
of Scaurus")
Scaurus' fish sauce was known by people across the Mediterranean to be of very high quality, and its reputation
traveled as far away as modern France. In both Pompeii and nearby Herculaneum, archaeological evidence also
points to evidence of branding and labeling in relatively common use across a broad range of goods. Wine jars,
for example, were stamped with names, such as "Lassius" and "L. Eumachius"; probably references to the name
of the producer.

Back section of a bracelet clasp with a hallmark of Hunnish craftsmanship, early 5th century

The use of identity marks on products declined following the fall of the Roman Empire. In the European Middle
Ages, heraldry developed a language of visual symbolism which would feed into the evolution of branding, and
with the rise of the merchant guilds the use of marks resurfaced and was applied to specific types of goods. By
the 13th century, the use of maker's marks had become evident on a broad range of goods. In 1266, makers'
marks on bread became compulsory in England. The Italians used brands in the form of watermarks on paper in
the 13th century. Blind stamps, hallmarks, and silver-makers' marks—all types of brand—became widely used
across Europe during this period. Hallmarks, although known from the 4th-century, especially in
Byzantium, only came into general use during the Medieval period. British silversmiths introduced hallmarks
for silver in 1300.
 Bass Brewery's logo became the first image to be registered as a trademark in the UK, in 1876.

Some brands still in existence as of 2018 date from the 17th, 18th, and 19th centuries' period of mass-
production. Bass Brewery, the British brewery founded in 1777, became a pioneer in international brand
marketing. Many years before 1855, Bass applied a red triangle to casks of its pale ale. In 1876, its red-triangle
brand became the first registered trademark issued by the British government. Guinness World
Records recognizes Tate & Lyle (of Lyle's Golden Syrup) as Britain's, and the world's, oldest branding and
packaging, with its green-and-gold packaging having remained almost unchanged since 1885. Twinings tea has
used the same logo – capitalized font beneath a lion crest – since 1787, making it the world's oldest in
continuous use.

A tin of Lyle's Golden Syrup, first sold in London in 1885. Recognised by Guinness World Records as
having the world's oldest branding and packaging.

A characteristic feature of 19th-century mass-marketing was the widespread use of branding, originating with
the advent of packaged goods.Industrialization moved the production of many household items, such as soap,
from local communities to centralized factories. When shipping their items, the factories would
literally brand their logo or company insignia on the barrels used, effectively using a corporate trademark as a
quasi-brand.
Factories established following the Industrial Revolution introduced mass-produced goods and needed to sell
their products to a wider market—that is, to customers previously familiar only with locally produced goods. It
became apparent that a generic package of soap had difficulty competing with familiar, local products.
Packaged-goods manufacturers needed to convince the market that the public could place just as much trust in
the non-local product. Gradually, manufacturers began using personal identifiers to differentiate their goods
from generic products on the market. Marketers generally began to realize that brands, to which personalities
were attached, outsold rival brands.By the 1880s, large manufacturers had learned to imbue their
brands' identity with personality traits such as youthfulness, fun, sex appeal, luxury or the "cool" factor. This
began the modern practice now known as branding, where the consumers buy the brand instead of the product
and rely on the brand name instead of a retailer's recommendation.
The process of giving a brand "human" characteristics represented, at least in part, a response to consumer
concerns about mass-produced goods. The Quaker Oats Company began using the image of the Quaker Man in
place of a trademark from the late 1870s, with great success. Pears' soap, Campbell's soup, Coca-Cola, Juicy
Fruit chewing gum and Aunt Jemima pancake mix were also among the first products to be "branded" in an
effort to increase the consumer's familiarity with the product's merits. Other brands which date from that era,
such as Ben's Original rice and Kellogg's breakfast cereal, furnish illustrations of the trend.

The Quaker Company was one of the earliest to use a character on its packaging, branding, and advertising.
Pictured: The Quaker Man, c. 1900

By the early 1900s, trade press publications, advertising agencies, and advertising experts began producing
books and pamphlets exhorting manufacturers to bypass retailers and to advertise directly to consumers with
strongly branded messages. Around 1900, advertising guru James Walter Thompson published a housing
advertisement explaining trademark advertising. This was an early commercial explanation of what scholars
now recognize as modern branding and the beginnings of brand management. This trend continued to the 1980s,
and as of 2018 is quantified in concepts such as brand value and brand equity. Naomi Klein has described this
development as "brand equity mania". In 1988, for example, Philip Morris Companies purchased Kraft Foods
Inc. for six times what the company was worth on paper. Business analysts reported that what they really
purchased was the brand name.
With the rise of mass media in the early 20th century, companies adopted techniques that allowed their
messages to stand out. Slogans, mascots, and jingles began to appear on radio in the 1920s and in
early television in the 1930s. Soap manufacturers sponsored many of the earliest radio drama series, and the
genre became known as soap opera.
By the 1940s, manufacturers began to recognize the way in which consumers had started to develop
relationships with their brands in a social/psychological/anthropological sense. Advertisers began to use
motivational research and consumer research to gather insights into consumer purchasing. Strong branded
campaigns for Chrysler and Exxon/Esso, using insights drawn from research into psychology and cultural
anthropology, led to some of the most enduring campaigns of the 20th-century. Brand advertisers began to
imbue goods and services with a personality, based on the insight that consumers searched for brands with
personalities that matched their own.

Concepts
Effective branding, attached to strong brand values, can result in higher sales of not only one product, but of
other products associated with that brand. If a customer loves Pillsbury biscuits and trusts the brand, he or she is
more likely to try other products offered by the company – such as chocolate-chip cookies, for example. Brand
development, often performed by a design team, takes time to produce.
Brand names and trademarks[edit]
Further information: Trademark and Trademark symbol

Coca-Cola is a brand name, while the distinctive Spencerian script and the contour bottle are trademarked

A brand name is the part of a brand that can be spoken or written and identifies a product, service or company
and sets it apart from other comparable products within a category. A brand name may include words, phrases,
signs, symbols, designs, or any combination of these elements. For consumers, a brand name is a "memory
heuristic": a convenient way to remember preferred product choices. A brand name is not to be confused with
a trademark which refers to the brand name or part of a brand that is legally protected. For example, Coca-Cola
not only protects the brand name, Coca-Cola, but also protects the distinctive Spencerian script and the
contoured shape of the bottle.
It appears that a brand name and the relationship the consumer keep with the brand as a whole has evolved.
From the simple product recognition process a brand name now holds a symbolic and social identification
spectrum. [fournier 1998] For example, one can buy Nike because they want to be associated with the kind of
people who wear Nike and with the values and attributes of that brand. More than a product it is a statement that
one should seek to purchase by proxy of the brand [Belk 1988].
Corporate brand identity[edit]
Brand identity is a collection of individual components, such as a name, a design, a set of images, a slogan, a
vision, writing style, a particular font or a symbol etc. which sets the brand aside from others.[68][69] For a
company to exude a strong sense of brand identity, it must have an in-depth understanding of its target market,
competitors and the surrounding business environment. Brand identity includes both the core identity and the
extended identity.[8] The core identity reflects consistent long-term associations with the brand; whereas the
extended identity involves the intricate details of the brand that help generate a constant motif.
According to Kotler et al. (2009), a brand's identity may deliver four levels of meaning:

1. attributes
2. benefits
3. values
4. personality
A brand's attributes are a set of labels with which the corporation wishes to be associated. For example, a
brand may showcase its primary attribute as environmental friendliness. However, a brand's attributes alone are
not enough to persuade a customer into purchasing the product. These attributes must be communicated
through benefits, which are more emotional translations. If a brand's attribute is being environmentally friendly,
customers will receive the benefit of feeling that they are helping the environment by associating with the
brand. Aside from attributes and benefits, a brand's identity may also involve branding to focus on representing
its core set of values. If a company is seen to symbolize specific values, it will, in turn, attract customers who
also believe in these values. For example, Nike's brand represents the value of a "just do it" attitude. Thus, this
form of brand identification attracts customers who also share this same value. Even more extensive than its
perceived values is a brand's personality. Quite literally, one can easily describe a successful brand identity as
if it were a person. This form of brand identity has proven to be the most advantageous in maintaining long-
lasting relationships with consumers, as it gives them a sense of personal interaction with the
brand  Collectively, all four forms of brand identification help to deliver a powerful meaning behind what a
corporation hopes to accomplish, and to explain why customers should choose one brand over its competitors.
Brand personality
Brand personality refers to "the set of human personality traits that are both applicable to and relevant for
brands." Marketers and consumer researchers often argue that brands can be imbued with human-like
characteristics which resonate with potential consumers. Such personality traits can assist marketers to create
unique, brands that are differentiated from rival brands. Aaker conceptualized brand personality as consisting of
five broad dimensions, namely: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring,
spirited, imaginative, and up to date), competence (reliable, intelligent, and successful), sophistication
(glamorous, upper class, charming), and ruggedness (outdoorsy and tough). Subsequent research studies have
suggested that Aaker's dimensions of brand personality are relatively stable across different industries, market
segments and over time. Much of the literature on branding suggests that consumers prefer brands with
personalities that are congruent with their own.
Consumers may distinguish the psychological aspect (brand associations like thoughts, feelings, perceptions,
images, experiences, beliefs, attitudes, and so on that become linked to the brand) of a brand from the
experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is
termed the consumer's brand experience. The brand is often intended to create an emotional response and
recognition, leading to potential loyalty and repeat purchases. The brand experience is a brand's action
perceived by a person. The psychological aspect, sometimes referred to as the brand image, is a symbolic
construct created within the minds of people, consisting of all the information and expectations associated with
a product, with a service, or with the companies providing them.
Marketers or product managers that responsible for branding, seek to develop or align the expectations behind
the brand experience, creating the impression that a brand associated with a product or service has certain
qualities or characteristics, which make it special or unique. A brand can, therefore, become one of the most
valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in
the marketplace. This means that building a strong brand helps to distinguish a product from similar ones and
differentiate it from competitors. The art of creating and maintaining a brand is called brand management. The
orientation of an entire organization towards its brand is called brand orientation. Brand orientation develops in
response to market intelligence.
Careful brand management seeks to make products or services relevant and meaningful to a target audience.
Marketers tend to treat brands as more than the difference between the actual cost of a product and its selling
price; rather brands represent the sum of all valuable qualities of a product to the consumer and are often treated
as the total investment in brand building activities including marketing communications.
Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain
attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded
products or services can command higher prices. Where two products resemble each other, but one of the
products has no associated branding (such as a generic, store-branded product), potential purchasers may often
select the more expensive branded product on the basis of the perceived quality of the brand or on the basis of
the reputation of the brand owner.
Brand awareness
Main article: Brand awareness
Brand awareness involves a customers' ability to recall and/or recognize brands, logos, and branded advertising.
Brands help customers to understand which brands or products belong to which product or service category.
Brands assist customers to understand the constellation of benefits offered by individual brands, and how a
given brand within a category is differentiated from its competing brands, and thus the brand helps customers &
potential customers understand which brand satisfies their needs. Thus, the brand offers the customer a short-cut
to understanding the different product or service offerings that make up a particular category.
Brand awareness is a key step in the customer's purchase decision process, since some kind of awareness is a
precondition to purchasing. That is, customers will not consider a brand if they are not aware of it. Brand
awareness is a key component in understanding the effectiveness both of a brand's identity and of its
communication methods. Successful brands are those that consistently generate a high level of brand awareness,
as this can be the pivotal factor in securing customer transactions. Various forms of brand awareness can be
identified. Each form reflects a different stage in a customer's cognitive ability to address the brand in a given
circumstance.
Marketers typically identify two distinct types of brand awareness; namely brand recall (also known as unaided
recall or occasionally spontaneous recall) and brand recognition (also known as aided brand recall). These
types of awareness operate in entirely different ways with important implications for marketing strategy and
advertising.

 Most companies aim for "Top-of-Mind" which occurs when a brand pops into a consumer's mind when
asked to name brands in a product category. For example, when someone is asked to name a type of facial
tissue, the common answer, "Kleenex", will represent a top-of-mind brand. Top-of-mind awareness is a
special case of brand recall.
 Brand recall (also known as unaided brand awareness or spontaneous awareness) refers to the brand or set
of brands that a consumer can elicit from memory when prompted with a product category
 Brand recognition (also known as aided brand awareness) occurs when consumers see or read a list of
brands, and express familiarity with a particular brand only after they hear or see it as a type of memory
aide.
 Strategic awareness occurs when a brand is not only top-of-mind to consumers, but also has distinctive
qualities which consumers perceive as making it better than other brands in the particular market. The
distinction(s) that set a product apart from the competition is/are also known as the unique selling point or
USP.
Brand recognition
Brand recognition is one of the initial phases of brand awareness and validates whether or not a customer
remembers being pre-exposed to the brand. Brand recognition (also known as aided brand recall) refers to
consumers' ability to correctly differentiate a brand when they come into contact with it. This does not
necessarily require that the consumers identify or recall the brand name. When customers experience brand
recognition, they are triggered by either a visual or verbal cue. For example, when looking to satisfy a category
need such as a toilet paper, the customer would firstly be presented with multiple brands to choose from. Once
the customer is visually or verbally faced with a brand, he/she may remember being introduced to the brand
before. When given some type of cue, consumers who are able to retrieve the particular memory node that
referred to the brand, they exhibit brand recognition. Often, this form of brand awareness assists customers in
choosing one brand over another when faced with a low-involvement purchasing decision.
Brand recognition is often the mode of brand awareness that operates in retail shopping environments. When
presented with a product at the point-of-sale, or after viewing its visual packaging, consumers are able to
recognize the brand and may be able to associate it with attributes or meanings acquired through exposure to
promotion or word-of-mouth referrals. In contrast to brand recall, where few consumers are able to
spontaneously recall brand names within a given category, when prompted with a brand name, a larger number
of consumers are typically able to recognize it.
Brand recognition is most successful when people can elicit recognition without being explicitly exposed to the
company's name, but rather through visual signifiers like logos, slogans, and colors. For
example, Disney successfully branded its particular script font (originally created for Walt Disney's
"signature" logo), which it used in the logo for go.com.
Brand recall
Unlike brand recognition, brand recall (also known as unaided brand recall or spontaneous brand recall) is
the ability of the customer retrieving the brand correctly from memory. Rather than being given a choice of
multiple brands to satisfy a need, consumers are faced with a need first, and then must recall a brand from their
memory to satisfy that need. This level of brand awareness is stronger than brand recognition, as the brand must
be firmly cemented in the consumer's memory to enable unassisted remembrance. This gives the company huge
advantage over its competitors because the customer is already willing to buy or at least know the company
offering available in the market. Thus, brand recall is a confirmation that previous branding touchpoints have
successfully fermented in the minds of its consumers.
Marketing-mix modeling can help marketing leaders optimize how they spend marketing budgets to maximize
the impact on brand awareness or on sales. Managing brands for value creation will often involve applying
marketing-mix modeling techniques in conjunction with brand valuation.

Brand elements
Brands typically comprise various elements, such as:

 name: the word or words used to identify a company, product, service, or concept
 logo: the visual trademark that identifies a brand
 tagline or catchphrase: a short phrase always used in the product's advertising and closely associated with
the brand
 graphics: the "dynamic ribbon" is a trademarked part of Coca-Cola's brand
 shapes: the distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked
elements of those brands
 colors: the instant recognition consumers have when they see Tiffany & Co.’s robin's egg blue (Pantone No.
1837). Tiffany & Co.’s trademarked the color in 1998.
 sounds: a unique tune or set of notes can denote a brand. NBC's chimes provide a famous example.
 scents: the rose-jasmine-musk scent of Chanel No. 5 is trademarked
 tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried
chicken
 movements: Lamborghini has trademarked the upward motion of its car doors

Figure 2. Demonstrating touch points associated with purchase experience stages

Brand communication
Further information: Advertising management, Integrated marketing communications, Marketing
communications, and Promotion (marketing)
Although brand identity is a fundamental asset to a brand's equity, the worth of a brand's identity would become
obsolete without ongoing brand communication. Integrated marketing communications (IMC) relates to how a
brand transmits a clear consistent message to its stakeholders . Five key components comprise IMC:

1. Advertising
2. Sales promotions
3. Direct marketing
4. Personal selling
5. Public relations
The effectiveness of a brand's communication is determined by how accurately the customer perceives the
brand's intended message through its IMC. Although IMC is a broad strategic concept, the most crucial brand
communication elements are pinpointed to how the brand sends a message and what touch points the brand uses
to connect with its customers [Chitty 2005].
One can analyze the traditional communication model into several consecutive steps:
 Firstly, a source/sender wishes to convey a message to a receiver. This source must encode the intended
message in a way that the receiver will potentially understand.
 After the encoding stage, the forming of the message is complete and is portrayed through a selected
channel. In IMC, channels may include media elements such as advertising, public relations, sales
promotions, etc.
 It is at this point where the message can often deter from its original purpose as the message must go
through the process of being decoded, which can often lead to unintended misinterpretation.
 Finally, the receiver retrieves the message and attempts to understand what the sender was aiming to render.
Often, a message may be incorrectly received due to noise in the market, which is caused by "…unplanned
static or distortion during the communication process".
 The final stage of this process is when the receiver responds to the message, which is received by the
original sender as feedback.
When a brand communicates a brand identity to a receiver, it runs the risk of the receiver incorrectly
interpreting the message. Therefore, a brand should use appropriate communication channels to positively "…
affect how the psychological and physical aspects of a brand are perceived".
In order for brands to effectively communicate to customers, marketers must "…consider all touch point|s, or
sources of contact, that a customer has with the brand". Touch points represent the channel stage in the
traditional communication model, where a message travels from the sender to the receiver. Any point where a
customer has an interaction with the brand - whether watching a television advertisement, hearing about a brand
through word of mouth or even noticing a branded license plate – defines a touchpoint. According to Dahlen et
al. (2010), every touchpoint has the "…potential to add positive – or suppress negative – associations to the
brand's equity"  Thus, a brand's IMC should cohesively deliver positive messages through appropriate touch
points associated with its target market. One methodology involves using sensory stimuli touch points to
activate customer emotion. For example, if a brand consistently uses a pleasant smell as a primary touchpoint,
the brand has a much higher chance of creating a positive lasting effect on its customers' senses as well as
memory. Another way a brand can ensure that it is utilizing the best communication channel is by focusing on
touchpoints that suit particular areas associated with customer experience. As suggested Figure 2, certain touch
points link with a specific stage in customer-brand-involvement. For example, a brand may recognize that
advertising touchpoints are most effective during the pre-purchase experience stage therefore they may target
their advertisements to new customers rather than to existing customers. Overall, a brand has the ability to
strengthen brand equity by using IMC branding communications through touchpoints.
Brand communication is important in ensuring brand success in the business world and refers to how businesses
transmit their brand messages, characteristics and attributes to their consumers. One method of brand
communication that companies can exploit involves electronic word-of-mouth (eWOM). eWOM is a relatively
new approach [Phelps et al., 2004]  identified to communicate with consumers. One popular method of eWOM
involves social networking sites (SNSs) such as Twitter. A study found that consumers classed their relationship
with a brand as closer if that brand was active on a specific social media site (Twitter). Research further found
that the more consumers "retweeted" and communicated with a brand, the more they trusted the brand. This
suggests that a company could look to employ a social-media campaign to gain consumer trust and loyalty as
well as in the pursuit of communicating brand messages.
McKee (2014) also looked into brand communication and states that when communicating a brand, a company
should look to simplify its message as this will lead to more value being portrayed as well as an increased
chance of target consumers recalling and recognizing the brand.
In 2012 Riefler stated that if the company communicating a brand is a global organization or has future global
aims, that company should look to employ a method of communication that is globally appealing to their
consumers, and subsequently choose a method of communication with will be internationally understood. One
way a company can do this involves choosing a product or service's brand name, as this name will need to be
suitable for the marketplace that it aims to enter.
It is important that if a company wishes to develop a global market, the company name will also need to be
suitable in different cultures and not cause offense or be misunderstood. When communicating a brand, a
company needs to be aware that they must not just visually communicate their brand message and should take
advantage of portraying their message through multi-sensory information. One article suggests that other
senses, apart from vision, need to be targeted when trying to communicate a brand with consumers. For
example, a jingle or background music can have a positive effect on brand recognition, purchasing behaviour
and brand recall.
Therefore, when looking to communicate a brand with chosen consumers, companies should investigate a
channel of communication that is most suitable for their short-term and long-term aims and should choose a
method of communication that is most likely to reach their target consumers. The match-up between the
product, the consumer lifestyle, and the endorser is important for the effectiveness of brand communication.

Relationship between trademarks and brand

The term "brand name" is quite often used interchangeably with "brand", although it is more correctly used to
specifically denote written or spoken linguistic elements of any product. In this context, a "brand name"
constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial
source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name
through trademark registration – such trademarks are called "Registered Trademarks". Advertising
spokespersons have also become part of some brands, for example: Mr. Whipple of Charmin toilet tissue
and Tony the Tiger of Kellogg's Frosted Flakes. Putting a value on a brand by brand valuation or
using marketing mix modeling techniques is distinct to valuing a trademark.
Types of brand names[edit]
Brand names come in many styles. A few include:

 initialism: a name made of initials, such as "UPS" or "IBM"

 descriptive: names that describe a product benefit or function, such as "Whole Foods" or "Toys R' Us"
 alliteration and rhyme: names that are fun to say and which stick in the mind, such as "Reese's Pieces" or
"Dunkin' Donuts"
 evocative: names that can evoke a vivid image, such as "Amazon" or "Crest"
 neologisms: completely made-up words, such as "Wii" or "Häagen-Dazs"
 foreign word: adoption of a word from another language, such as "Volvo" or "Samsung"
 founders' names: using the names of real people, (especially a founder's surname), such as "Hewlett-
Packard", "Dell", "Disney", "Stussy" or "Mars"
 geography: naming for regions and landmarks, such as "Cisco" or "Fuji Film"
 personification: taking names from myths, such as "Nike"; or from the minds of ad execs, such as "Betty
Crocker"
 punny: some brands create their name by using a silly pun, such as "Lord of the Fries", "Wok on Water" or
"Eggs Eggscetera"
 portmanteau: combining multiple words together to create one, such as "Microsoft" ("microcomputer" and
"software"), "Comcast" ("communications" and "broadcast"), "Evernote" ("forever" and "note"),
"Vodafone" ("voice", "data", "telephone")
The act of associating a product or service with a brand has become part of pop culture. Most products have
some kind of brand identity, from common table salt to designer jeans. A brandnomer is a brand name that
has colloquially become a generic term for a product or service, such as Band-Aid, Nylon, or Kleenex—which
are often used to describe any brand of adhesive bandage; any type of hosiery; or any brand of facial tissue
respectively. Xerox, for example, has become synonymous with the word "copy".
Brand line
A brand line allows the introduction of various subtypes of a product under a common, ideally already
established, brand name. Examples would be the individual Kinder Chocolates by Ferrero SA, the subtypes
of Coca-Cola, or special editions of popular brands. See also brand extension.
Open Knowledge Foundation created in December 2013 the BSIN (Brand Standard Identification
Number). BSIN is universal and is used by the Open Product Data Working Group [104] of the Open
Knowledge Foundation to assign a brand to a product. The OKFN Brand repository is critical for the Open Data
movement.
Brand identity
The expression of a brand – including its name, trademark, communications, and visual appearance – is brand
identity. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to
perceive the brand – and by extension the branded company, organization, product or service. This is in contrast
to the brand image, which is a customer's mental picture of a brand. The brand owner will seek to bridge the gap
between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and
symbolizes the brand's differentiation from competitors. Brand identity is distinct from brand image.
Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a
product's brand identity may acquire (evolve), gaining new attributes from consumer perspective but not
necessarily from the marketing communications, an owner percolates to targeted consumers. Therefore,
businesses research consumer's brand associations.
The brand identity works as a guideline, as the frame in which a brand will evolve and define itself, or in the
words of David Aaker, "…a unique set of brand associations that the brand strategist aspires to create or
maintain."
According to Kapferer (2007), there are 6 facets to a brand's identity:

 Physique: The physical characteristics and iconography of your brand ( such as the Nike swoosh or the
orange pantone of easyJet).
 Personality: The persona, how a brand communicates with their audience, which is expressed through its
tone of voice, design assets and then integrates this into communication touchpoints in a coherent way.
 Culture: The values, the principles on which a brand bases its behaviour. For example, Google flexible
office hours and fun environment so the employees feel happy and creative at work.
 Reflection: The "stereotypical user" of the brand. A brand is likely to be purchased by several buyer's
profiles but they will have a go-to person that they use in their campaigns. For example, Lou Yetu and the
Parisian chic profile.
 Relationship: The bond between a brand and its customers, and the customer expectations of the brand (the
experience beyond the tangible product). Such as warranties or services during and after purchase help
maintain a sustainable relationship and keep the consumer trust.

 Self-image: How does one brand-customer portrays their ideal self – how they want to look and behave;
what they aspire to – brands can target their messaging accordingly and make the brand's aspirations reflect
theirs.
Visual brand identity[edit]
 The visual brand identity manual for Mobil Oil (developed by Chermayeff & Geismar & Haviv), one of the
first visual identities to integrate logotype, icon, alphabet, color palette, and station architecture.

A brand can also be used to attract customers by a company, if the brand of a company is well established and
has goodwill. The recognition and perception of a brand is highly influenced by its visual presentation. A
brand's visual identity is the overall look of its communications. Effective visual brand identity is achieved by
the consistent use of particular visual elements to create distinction, such as specific fonts, colors, and graphic
elements. At the core of every brand identity is a brand mark, or logo. In the United States, brand identity and
logo design naturally grew out of the Modernist movement in the 1950s and greatly drew on the principles of
that movement – simplicity (Ludwig Mies van der Rohe's principle of "Less is more") and geometric
abstraction. These principles can be observed in the work of the pioneers of the practice of visual brand identity
design, such as Paul Rand and Saul Bass. As part of a company's brand identity, a logo should complement the
company's message strategy. An effective logo is simple, memorable, and works well in any medium including
both online and offline applications.
Color is a particularly important element of visual brand identity and color mapping provides an effective way
of ensuring color contributes to differentiation in a visually cluttered marketplace.
Brand trust
Brand trust is the intrinsic 'believability' that any entity evokes. In the commercial world, the intangible aspect
of brand trust impacts the behavior and performance of its business stakeholders in many intriguing ways. It
creates the foundation of a strong brand connect with all stakeholders, converting simple awareness to strong
commitment. This, in turn, metamorphoses normal people who have an indirect or direct stake in the
organization into devoted ambassadors, leading to concomitant advantages like easier acceptability of brand
extensions, the perception of premium, and acceptance of temporary quality deficiencies. Brand trust is often
used as an important part of developing the portrayal of the business globally. Foreign companies will often use
names that are associated with quality, in order to entrust the brand itself. An example would be a Chinese
company using a German name.
The Brand Trust Report is syndicated primary research that has elaborated on this metric of brand trust. It is a
result of the action, behavior, communication, and attitude of an entity, with the most trust results emerging
from its action component. The action of the entity is most important in creating trust in all those audiences who
directly engage with the brand, the primary experience carrying primary audiences. However, the tools of
communications play a vital role in transferring the trust experience to audiences who have never experienced
the brand, the all-important secondary audience.
Brand parity
Brand parity is the perception of the customers that some brands are equivalent. This means that shoppers will
purchase within a group of accepted brands rather than choosing one specific brand. When brand parity
operates, quality is often not a major concern because consumers believe that only minor quality differences
exist. Instead, it is important to have brand equity which is "the perception that a good or service with a given
brand name is different, better, and can be trusted" according to Kenneth E Clow.

Expanding role of brands

The original aim of branding was to simplify the process of identifying and differentiating products. Over time,
manufacturers began to use branded messages to give the brand a unique personality. Brands came to embrace a
performance or benefit promise, for the product, certainly, but eventually also for the company behind the
brand.
Today, brands play a much bigger role. The power of brands to communicate a complex message quickly, with
emotional impact and with the ability of brands to attract media attention, makes them ideal tools in the hands
of activists.[110] Cultural conflict over a brand's meaning has also influences the diffusion of an innovation
During the Covid-19 pandemic, 75% of US customers tried different stores, websites or brands, and 60% of
those expect to integrate new brands or stores into their post-pandemic lives. If brands can find ways to help
people feel empowered and regain a sense of control in uncertain times, they can help people reconnect and heal
(and be appreciated for it).

Branding strategies
Further information: Brand management
Company name
Often, especially in the industrial sector, brand engineers will promote a company's name. Exactly how the
company name relates to product and services names forms part of a brand architecture. Decisions about
company names and product names and their relationship depend on more than a dozen strategic considerations.
In this case, a strong brand name (or company name) becomes the vehicle for marketing a range of products (for
example, Mercedes-Benz or Black & Decker) or a range of subsidiary brands (such as Cadbury Dairy Milk,
Cadbury Flake, or Cadbury Fingers in the UK).
Corporate name-changes offer particularly stark examples of branding-related decisions. A name change may
signal different ownership or new product directions.Thus the name Unisys originated in 1986
when Burroughs bought and incorporated UNIVAC; and the newly-named International Business
Machines represented a broadening of scope in 1924 from its original name, the Computing-Tabulating-
Recording Company. A change in corporate naming may also have a role in seeking to shed an undesirable
image: for example, Werner Erhard and Associates re-branded its activities as Landmark Education in 1991 at a
time when publicity in a 60 Minutes investigative-report broadcast cast the est and Werner Erhard brands in a
negative light, and Union Carbide India Limited became Eveready Industries India in 1994 subsequent to
the Bhopal disaster of 1984
Individual branding
Main article: Individual branding
Marketers associate separate products or lines with separate brand names - such as Seven-Up, Kool-Aid,
or Nivea Sun (Beiersdorf - which may compete against other brands from the same company (for
example, Unilever owns Persil, Omo, Surf, and Lynx).
Challenger brands
Main article: Challenger brand
A challenger brand is a brand in an industry where it is neither the market leader nor a niche brand. Challenger
brands are categorized by a mindset that sees them have business ambitions beyond conventional resources and
an intent to bring change to an industry.
Multiproduct branding strategy
Multiproduct branding strategy is when a company uses one name across all its products in a product class.
When the company's trade name is used, multiproduct branding is also known as corporate branding, family
branding or umbrella branding. Examples of companies that use corporate branding
are Microsoft, Samsung, Apple, and Sony as the company's brand name is identical to their trade name. Other
examples of multiproduct branding strategy include Virgin and Church & Dwight. Virgin, a multination
conglomerate uses the punk-inspired, handwritten red logo with the iconic tick for all its products ranging from
airlines, hot air balloons, telecommunication to healthcare. Church & Dwight, a manufacturer of household
products displays the Arm & Hammer family brand name for all its products containing baking soda as the main
ingredient. A multiproduct branding strategy has many advantages. It capitalizes on brand equity as consumers
that have a good experience with the product will in turn pass on this positive opinion to supplementary objects
in the same product class as they share the same name. Consequently, the multiproduct branding strategy makes
product line extension possible.
Product line extension
Main article: Product line extension
A product line extension is the procedure of entering a new market segment in its product class by means of
using a current brand name. An example of this is the Campbell Soup Company, primarily a producer of canned
soups. They utilize a multiproduct branding strategy by way of soup line extensions. They have over 100 soup
flavours putting forward varieties such as regular Campbell soup, condensed, chunky, fresh-brewed, organic,
and soup on the go. This approach is seen as favourable as it can result in lower promotion costs and advertising
due to the same name being used on all products, therefore increasing the level of brand awareness. Although,
line extension has potential negative outcomes with one being that other items in the company's line may be
disadvantaged because of the sale of the extension. Line extensions work at their best when they deliver an
increase in company revenue by enticing new buyers or by removing sales from competitors.
Subbranding
Subbranding is used by certain multiproduct branding companies. Subbranding merges a corporate, family
or umbrella brand with the introduction of a new brand in order to differentiate part of a product line from
others in the whole brand system. Subbranding assists to articulate and construct offerings. It can alter a brand's
identity as subbranding can modify associations of the parent brand. Examples of successful subbranding can be
seen through Gatorade and Porsche. Gatorade, a manufacturer of sport-themed food and beverages effectively
introduced Gatorade G2, a low-calorie line of Gatorade drinks. Likewise, Porsche, a specialized automobile
manufacturer successfully markets its lower-end line, Porsche Boxster and higher-end line, Porsche Carrera.
Brand extension and brand dilution
Main article: Brand extension
Brand extension is the system of employing a current brand name to enter a different product class. Having a
strong brand equity allows for brand extension; for example, many fashion and designer companies extended
brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture,
hotels, etc. Nevertheless, brand extension has its disadvantages. There is a risk that too many uses for one brand
name can oversaturate the market resulting in a blurred and weak brand for consumers. Examples of brand
extension can be seen through Kimberly-Clark and Honda. Kimberly-Clark is a corporation that produces
personal and health care products being able to extend the Huggies brand name across a full line of toiletries for
toddlers and babies. The success of this brand extension strategy is apparent in the $500 million in annual sales
generated globally. Similarly, Honda using their reputable name for automobiles has spread to other products
such as motorcycles, power equipment, engines, robots, aircraft, and bikes. Mars extended its brand to ice
cream, Caterpillar to shoes and watches, Michelin to a restaurant guide, Adidas and Puma to personal
hygiene. Dunlop extended its brand from tires to other rubber products such as shoes, golf balls, tennis racquets,
and adhesives. Frequently, the product is no different from what else is on the market, except a brand name
marking. Brand is product identity.
There is a difference between brand extension and line extension. A line extension is when a current brand
name is used to enter a new market segment in the existing product class, with new varieties or flavors or sizes.
When Coca-Cola launched Diet Coke and Cherry Coke, they stayed within the originating product category:
non-alcoholic carbonated beverages. Procter & Gamble did likewise extending its strong lines (such as Fairy
Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within the same category, dish washing
detergents.
The risk of over-extension is brand dilution where the brand loses its brand associations with a market segment,
product area, or quality, price or cachet.
Co-branding
Main article: Co-branding
Co-branding is a variation of brand extension. It is where a single product is created from the combining of two
brand names of two manufacturers. Co-branding has its advantages as it lets firms enter new product classes and
exploit a recognized brand name in that product class. An example of a co-branding success is Whitaker's
working with Lewis Road Creamery to create a co-branded beverage called Lewis Road Creamery and
Whittaker's Chocolate Milk. This product was a huge success in the New Zealand market with it going viral.
Multibranding strategy
Multibranding strategy is when a company gives each product a distinct name. Multibranding is best used as an
approach when each brand in intended for a different market segment. Multibranding is used in an assortment of
ways with selected companies grouping their brands based on price-quality segments. Individual brand names
naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold
without confusing the consumer's perception of what business the company is in or diluting higher quality
products. Procter & Gamble, a multinational consumer goods company that offers over 100 brands, each suited
for different consumer needs. For instance, Head & Shoulders that helps consumers relieve dandruff in the form
of a shampoo, Oral-B which offers inter-dental products, Vicks which offers cough and cold products,
and Downy which offers dryer sheets and fabric softeners. Other examples include Coca-
Cola, Nestlé, Kellogg's, and Mars.
This approach usually results in higher promotion costs and advertising. This is due to the company being
required to generate awareness among consumers and retailers for each new brand name without the benefit of
any previous impressions. Multibranding strategy has many advantages. There is no risk that a product failure
will affect other products in the line as each brand is unique to each market segment. Although, certain large
multiband companies have come across that the cost and difficulty of implementing a multibranding strategy
can overshadow the benefits. For example, Unilever, the world's third-largest multination consumer goods
company recently streamlined its brands from over 400 brands to center their attention onto 14 brands with
sales of over 1 billion euros. Unilever accomplished this through product deletion and sales to other companies.
Other multibrand companies introduce new product brands as a protective measure to respond to competition
called fighting brands or fighter brands.
Cannibalization is a particular challenge with a multi-brand strategy approach, in which the new brand takes
business away from an established one which the organization also owns. This may be acceptable (indeed to be
expected) if there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for
shifting its position in the market; the new product being one stage in this process.
Fighting brands
Main article: Fighter brand
The main purpose of fighting brands is to challenge competitor brands. For example, Qantas, Australia's largest
flag carrier airline, introduced Jetstar to go head-to-head against the low-cost carrier, Virgin Australia (formerly
known as Virgin Blue). Jetstar is an Australian low-cost airline for budget conscious travellers, but it receives
many negative reviews due to this. The launching of Jetstar allowed Qantas to rival Virgin Australia without the
criticism being affiliated with Qantas because of the distinct brand name.
Private branding strategy
Main article: Store brand
Private branding (also known as reseller branding, private labelling, store brands, or own brands) have increased
in popularity. Private branding is when a company manufactures products but it is sold under the brand name of
a wholesaler or retailer. Private branding is popular because it typically produces high profits for manufacturers
and resellers. The pricing of private brand product are usually cheaper compared to competing name brands.
Consumers are commonly deterred by these prices as it sets a perception of lower quality and standard but these
views are shifting.[citation needed]
In Australia, their leading supermarket chains, both Woolworths and Coles are saturated with store brands (or
private labels). For example, in the United States, Paragon Trade Brands, Ralcorp Holdings, and Rayovac are
major suppliers of diapers, grocery products, and private label alkaline batteries,
correspondingly. Costco, Walmart, RadioShack, Sears and Kroger are large retailers that have their own brand
names. Similarly, Macy's, a mid-range chain of department stores offers a wide catalogue of private brands
exclusive to their stores, from brands such as First Impressions which supply newborn and infant clothing,
Hotel Collection which supply luxury linens and mattresses, and Tasso Elba which supply European inspired
menswear. They use private branding strategy to specifically target consumer markets.
Mixed branding strategy
Mixed branding strategy is where a firm markets products under its own name(s) and that of a reseller because
the segment attracted to the reseller is different from its own market. For example, Elizabeth Arden, Inc., a
major American cosmetics and fragrance company, uses mixed branding strategy. The company sells its
Elizabeth Arden brand through department stores and line of skin care products at Walmart with the "skin
simple" brand name. Companies such as Whirlpool, Del Monte, and Dial produce private brands of home
appliances, pet foods, and soap, correspondingly. Other examples of mixed branding strategy
include Michelin, Epson, Microsoft, Gillette, and Toyota. Michelin, one of the largest tire manufacturers
allowed Sears, an American retail chain to place their brand name on the tires. Microsoft, a multinational
technology company is seriously regarded as a corporate technology brand but it sells its versatile home
entertainment hub under the brand Xbox to better align with the new and crazy identity. Gillette catered to
females with Gillette for Women which has now become known as Venus. The launch of Venus was conducted
in order to fulfil the feminine market of the previously dominating masculine razor industry. Similarly, Toyota,
an automobile manufacturer used mixed branding. In the U.S., Toyota was regarded as a valuable car brand
being economical, family orientated and known as a vehicle that rarely broke down. But Toyota sought out to
fulfil a higher end, expensive market segment, thus they created Lexus, the luxury vehicle division of premium
cars.
Attitude branding and iconic brands[edit]
Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product
or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The
Body Shop, Safeway and Apple. In the 1999 book No Logo, Naomi Klein describes attitude branding as a
"fetish strategy". Schaefer and Kuehlwein analyzed brands such as Apple, Ben & Jerry's or Chanel describing
them as 'Ueber-Brands' – brands that are able to gain and retain "meaning beyond the material."
A great brand raises the bar – it adds a greater sense of purpose to the experience, whether it's the
challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're
drinking really matters. – Howard Schultz (President, CEO, and Chairman of Starbucks)
 The color, letter font and style of the Coca-Cola and Diet Coca-Cola logos in English were copied into
matching Hebrew logos to maintain brand identity in Israel.

Iconic brands are defined as having aspects that contribute to consumer's self-expression and personal identity.
Brands whose value to consumers comes primarily from having identity value are said to be "identity brands".
Some of these brands have such a strong identity that they become more or less cultural icons which makes
them "iconic brands". Examples are: Apple, Nike and Harley-Davidson. Many iconic brands include almost
ritual-like behaviour in purchasing or consuming the products.
There are four key elements to creating iconic brands (Holt 2004):

1. "Necessary conditions" – The performance of the product must at least be acceptable, preferably with a
reputation of having good quality.
2. "Myth-making" – A meaningful storytelling fabricated by cultural insiders. These must be seen as
legitimate and respected by consumers for stories to be accepted.
3. "Cultural contradictions" – Some kind of mismatch between prevailing ideology and emergent
undercurrents in society. In other words, a difference with the way consumers are and how they wish
they were.
4. "The cultural brand management process" – Actively engaging in the myth-making process in making
sure the brand maintains its position as an icon.
Schaefer and Kuehlwein propose the following 'Ueber-Branding' principles. They derived them from studying
successful modern Prestige brands and what elevates them above mass competitors and beyond considerations
of performance and price (alone) in the minds of consumers:

1. "Mission Incomparable" – Having a differentiated and meaningful brand purpose beyond 'making
money.' Setting rules that follow this purpose – even when it violates the mass marketing mantra of
"Consumer is always Boss/right".
2. "Longing versus Belonging" – Playing with the opposing desires of people for Inclusion on the one hand
and Exclusivity on the other.
3. "Un-Selling" – First and foremost seeking to seduce through pride and provocation, rather than to sell
through arguments.
4. "From Myth To Meaning" – Leveraging the power of myth – 'Ueber-Stories' that have fascinated- and
guided humans forever.
5. "Behold!" – Making products and associated brand rituals reflect the essence of the brand mission and
myth. Making it the center of attention, while keeping it fresh.
 6. "Living the Dream" – Living the brand mission as an organization and through its actions. Thus radiating
the brand myth from the inside out, consistently and through all brand manifestations. – For "Nothing is
as volatile than a dream."
7. "Growth without End" – Avoiding to be perceived as an omnipresent, diluting brand appeal. Instead
'growing with gravitas' by leveraging scarcity/high prices, 'sideways expansion' and other means.
"No-brand" branding
Recently, a number of companies have successfully pursued "no-brand" strategies by creating packaging that
imitates generic brand simplicity. Examples include the Japanese company Muji, which means "No label" in
English (from 無印良品 – "Mujirushi Ryohin" – literally, "No brand quality goods"), and the Florida company
No-Ad Sunscreen. Although there is a distinct Muji brand, Muji products are not branded. This no-brand
strategy means that little is spent on advertisement or classical marketing and Muji's success is attributed to the
word-of-mouth, simple shopping experience and the anti-brand movement. "No brand" branding may be
construed as a type of branding as the product is made conspicuous through the absence of a brand name. "Tapa
Amarilla" or "Yellow Cap" in Venezuela during the 1980s is another good example of no-brand strategy. It was
simply recognized by the color of the cap of this cleaning products company.
Derived brands
Further information: Derived demand
In this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to
guarantee its own position by promoting that component as a brand in its own right. The most frequently quoted
example is Intel, which positions itself in the PC market with the slogan (and sticker) "Intel Inside".
Social media brands
In The Better Mousetrap: Brand Invention in a Media Democracy (2012), author and brand strategist Simon
Pont posits that social media brands may be the most evolved version of the brand form, because they focus not
on themselves but on their users. In so doing, social media brands are arguably more charismatic, in that
consumers are compelled to spend time with them, because the time spent is in the meeting of fundamental
human drivers related to belonging and individualism. "We wear our physical brands like badges, to help define
us – but we use our digital brands to help express who we are. They allow us to be, to hold a mirror up to
ourselves, and it is clear. We like what we see."[128]
Private labels
Further information: Private label
Private label brands, also called own brands, or store brands have become popular. Where the retailer has a
particularly strong identity (such as Marks & Spencer in the UK clothing sector) this "own brand" may be able
to compete against even the strongest brand leaders, and may outperform those products that are not otherwise
strongly branded.
Designer Private Labels
A relatively recent innovation in retailing is the introduction of designer private labels. Designer-private labels
involve a collaborative contract between a well-known fashion designer and a retailer. Both retailer and
designer collaborate to design goods with popular appeal pitched at price points that fit the consumer's budget.
For retail outlets, these types of collaborations give them greater control over the design process as well as
access to exclusive store brands that can potentially drive store traffic.
In Australia, for example, the department store, Myer, now offers a range of exclusive designer private labels
including Jayson Brundson, Karen Walker, Leona Edmiston, Wayne Cooper, Fleur Wood and ‘L’ for Lisa Ho.
[129] Another up-market department store, David Jones, currently offers ‘Collette’ for leading Australian
designer, Collette Dinnigan, and has recently announced its intention to extend the number of exclusive
designer brands.[130] Target Australia has teamed up with Dannii Minogue to produce her "Petites"
range. Specsavers has joined up with Sydney designer, Alex Perry to create an exclusive range of spectacle
frames while Big W stocks frame designed by Peter Morrissey.
Individual and organizational brands
With the development of the brand, Branding is no longer limited to a product or service. There are kinds of
branding that treat individuals and organizations as the products to be branded. Most NGOs and non-profit
organizations carry their brand as a fundraising tool. The purpose of most NGOs is to leave a social impact so
their brand becomes associated with specific social life matters. Amnesty International, Habitat for
Humanity, World Wildlife Fund and AIESEC are among the most recognized brands around the world. NGOs
and non-profit organizations moved beyond using their brands for fundraising to express their internal identity
and to clarify their social goals and long-term aims. Organizational brands have well-determined brand
guidelines and logo variables.
Personal branding
Main article: Personal branding
Employer branding
Main article: Employer branding
Crowd sourced branding
These are brands that are created by "the public" for the business, which is opposite to the traditional method
where the business creates a brand.
Personalized branding
Many businesses have started to use elements of personalization in their branding strategies, offering the client
or consumer the ability to choose from various brand options or have direct control over the brand. Examples of
this include the #ShareACoke campaign by Coca-Cola[citation needed] which printed people's names and place
names on their bottles encouraging people. AirBNB has created the facility for users to create their own symbol
for the software to replace the brand's mark known as The Bélo.
Nation branding (place branding and public diplomacy)
Further information: Place branding
Nation branding is a field of theory and practice which aims to measure, build and manage the reputation of
countries (closely related to place branding). Some approaches applied, such as an increasing importance on the
symbolic value of products, have led countries to emphasize their distinctive characteristics. The branding and
image of a nation-state "and the successful transference of this image to its exports – is just as important as what
they actually produce and sell."
Destination branding
Destination branding is the work of cities, states, and other localities to promote the location to tourists and
drive additional revenues into a tax base. These activities are often undertaken by governments, but can also
result from the work of community associations. The Destination Marketing Association International is the
industry leading organization.
Brand protection
Main article: Brand protection
Intellectual property infringements, in particular counterfeiting, can affect consumer trust and ultimately
damage brand equity. Brand protection is the set of preventive, monitoring and reactive measures taken by
brand owners to eliminate, reduce or mitigate these infringements and their effect.

Doppelgänger brand image (DBI)

Main article: Doppelgänger brand image
A doppelgänger brand image or "DBI" is a disparaging image or story about a brand that it circulated in popular
culture. DBI targets tend to be widely known and recognizable brands. The purpose of DBIs is to undermine the
positive brand meanings the brand owners are trying to instill through their marketing activities.
The term stems from the combination of the German words doppel ('double') and gänger ('walker').
Doppelgänger brands are typically created by individuals or groups to express criticism of a brand and its
perceived values, through a form of parody, and are typically unflattering in nature.
Due to the ability of doppelgänger brands to rapidly propagate virally through digital media channels, they can
represent a real threat to the equity of the target brand. Sometimes the target organization is forced to address
the root concern or to re-position the brand in a way that defuses the criticism.
Examples include:

 Joe Chemo campaign organized to criticize the marketing of tobacco products to children and their harmful
effects.
 Parody of the Pepsi logo as an obese man to highlight the relationship between soft drink consumption and
obesity.
 The FUH2 campaign protesting the Hummer SUV as a symbol of corporate and public irresponsibility
toward public safety and the environment.
In the 2006 article "Emotional Branding and the Strategic Value of the Doppelgänger Brand Image",
Thompson, Rindfleisch, and Arsel suggest that a doppelgänger brand image can be a benefit to a brand if taken
as an early warning sign that the brand is losing emotional authenticity with its market.

International Standards
The ISO branding standards developed by the Committee ISO/TC 289 are:

 'ISO 10668:2010' Brand valuation - Requirements for monetary brand valuation ,

 'ISO 20671:2019' Brand evaluation - Principles and fundamentals .
Two other ISO standards are being developed by ISO/TC289:

 ISO/AWI 23353 Brand evaluation - Guidelines for brands relating to geographical indications 

 ISO/AWI 24051 Brand evaluation - Guide for the annual brand evaluation.

Consumer behaviour

Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with
the purchase, use and disposal of goods and services. Consumer behaviour consists of how the consumer's
emotions, attitudes, and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s
as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements
from psychology, sociology, social anthropology, anthropology, ethnography, ethnology, marketing,
and economics (especially behavioural economics).
The study of consumer behaviour formally investigates individual qualities such
as demographics, personality lifestyles, and behavioural variables (such as usage rates, usage occasion, loyalty,
brand advocacy, and willingness to provide referrals), in an attempt to understand
people's wants and consumption patterns. Consumer behaviour also investigates on the influences on the
consumer, from social groups such as family, friends, sports, and reference groups, to society in general (brand-
influencers, opinion leaders).
Research has shown that consumer behaviour is difficult to predict, even for experts in the field; however, new
research methods, such as ethnography, consumer neuroscience, and machine learning[1] are shedding new
light on how consumers make decisions. In addition, customer relationship management (CRM) databases have
become an asset for the analysis of customer behaviour. The extensive data produced by these databases enables
detailed examination of behavioural factors that contribute to customer re-purchase intentions, consumer
retention, loyalty, and other behavioural intentions such as the willingness to provide positive referrals, become
brand advocates, or engage in customer citizenship activities. Databases also assist in market segmentation,
especially behavioural segmentation such as developing loyalty segments, which can be used to develop tightly
targeted customized marketing strategies on a one-to-one basis. (Also see relationship marketing).

Origins of consumer behaviour[edit]

Main article: History of marketing § History of marketing thought
In the 1940s and '50s, marketing was dominated by the so-called classical schools of thought which were highly
descriptive and relied heavily on case study approaches with only occasional use of interview methods. At the
end of the 1950s, two important reports criticized marketing for its lack of methodological rigor, especially the
failure to adopt mathematically-oriented behavioral science research methods.[2] The stage was set for
marketing to become more inter-disciplinary by adopting a consumer-behaviorist perspective.
From the 1950s, marketing began to shift its reliance away from economics and towards other disciplines,
notably the behavioral sciences, including sociology, anthropology, and clinical psychology. This resulted in a
new emphasis on the customer as a unit of analysis. As a result, new substantive knowledge was added to the
marketing discipline – including such ideas as opinion leadership, reference groups, and brand loyalty. Market
segmentation, especially demographic segmentation based on socioeconomic status (SES) index and household
life-cycle, also became fashionable. With the addition of consumer behavior, the marketing discipline exhibited
increasing scientific sophistication with respect to theory development and testing procedures.[3]
In its early years, consumer behavior was heavily influenced by motivation research, which had increased the
understanding of customers, and had been used extensively by consultants in the advertising industry and also
within the discipline of psychology in the 1920s, '30s, and '40s. By the 1950s, marketing began to adopt
techniques used by motivation researchers including depth interviews, projective techniques, thematic
apperception tests, and a range of qualitative and quantitative research methods.[4] More recently, scholars have
added a new set of tools including ethnography, photo-elicitation techniques,
and phenomenological interviewing.[5] Today, consumer behavior (or CB as it is affectionately known) is
regarded as an important sub-discipline within marketing and is included as a unit of study in almost all
undergraduate marketing programs.

Definition and explanation[edit]

Consumer behaviour entails "all activities associated with the purchase, use and disposal of goods and services,
including the consumer's emotional, mental and behavioural responses that precede or follow these
activities."[6] The term consumer can refer to individual consumers as well as organisational consumers, and
more specifically, "an end user, and not necessarily a purchaser, in the distribution chain of a good or
service."[7] Consumer behaviour is concerned with:[8]

 purchase activities: the purchase of goods or services; how consumers acquire products and services, and all
the activities leading up to a purchase decision, including information search, evaluating goods and services,
and payment methods including the purchase experience
 use or consumption activities: concerns the who, where, when, and how of consumption and the usage
experience, including the symbolic associations and the way that goods are distributed within families or
consumption units
 disposal activities: concerns the way that consumers dispose of products and packaging; may also include
reselling activities such as eBay and second-hand markets
Consumer responses may be:[9]

 emotional (or affective) responses: refer to emotions such as feelings or moods,

 mental (or cognitive) responses: refer to the consumer's thought processes, their
 behavioural (or conative) responses: refer to the consumer's observable responses in relation to the purchase
and disposal of goods or services.
According to the American Marketing Association, consumer behaviour can be defined as "the dynamic
interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the
exchange aspects of their lives."
As a field of study, consumer behaviour is an applied social science. Consumer behaviour analysis is the "use of
behaviour principles, usually gained experimentally, to interpret human economic consumption." As a
discipline, consumer behaviour stands at the intersection of economic psychology and marketing science.[10]

The purchase decision and its context[edit]

Shoppers inspect the quality of fresh produce at a market in Jerusalem.

Understanding purchase and consumption behaviour is a key challenge for marketers. Consumer behaviour, in
its broadest sense, is concerned with understanding both how purchase decisions are made and how products or
services are consumed or experienced. Consumers are active decision-makers. They decide what to purchase,
often based on their disposable income or budget. They may change their preferences related to their budget and
a range of other factors.[11][12][13]
Some purchase decisions involve long, detailed processes that include extensive information search to select
between competing alternatives.[14] Other purchase decisions, such as impulse buys or habitual purchases, are
made almost instantaneously with little or no investment of time or effort in information search.
Some purchase decisions are made by groups (such as families, households or businesses) while others are
made by individuals. When a purchase decision is made by a small group, such as a household, different
members of the group may become involved at different stages of the decision process and may perform
different roles. For example, one person may suggest the purchase category, another may search for product-
related information while yet another may physically go to the store, buy the product, and transport it home. It is
customary to think about the types of decision roles; such as:
In a family unit, an adult female often makes brand choices on behalf of the entire household, while children
can be important influencers.

The Initiator
the person who proposes a brand (or product) for consideration (something in return);
The Influencer
someone who recommends a given brand;
The Decider
the person who makes the ultimate purchase decision;
The Purchaser
the one who orders or physically buys it;
The User
the person who uses or consumes the product.[15]
For most purchase decisions, each of the decision roles must be performed, but not always by the same
individual. For example, in the case of family making a decision about a dining-out venue, a parent may initiate
the process by intimating that they are too tired to cook. The children are important influencers in the overall
purchase decision, but both parents may act as joint deciders performing a gate-keeping role by vetoing
unacceptable alternatives and encouraging more acceptable alternatives. The importance of children as
influencers in a wide range of purchase contexts should never be underestimated and the phenomenon is known
as pester power.[16]
 The purchasing decision model

To approach the mental processes used in purchasing decisions, some authors employ the concept of the black
box, which represents the cognitive and affective processes used by a consumer during a purchase decision. The
decision model situates the black box in a broader environment which shows the interaction of external and
internal stimuli (e.g. consumer characteristics, situational factors, marketing influences, and environmental
factors) as well as consumer responses.[17] The black box model is related to the black box
theory of behaviourism, where the focus extends beyond processes occurring inside the consumer and also
includes the relation between the stimuli and the consumer's response.
The decision model assumes that purchase decisions do not occur in a vacuum. Rather, they occur in real time
and are affected by other stimuli, including external environmental stimuli and the consumer's momentary
situation. The elements of the model include interpersonal stimuli (between people) or intrapersonal stimuli
(within people), environmental stimuli and marketing stimuli.[18] Marketing stimuli include actions planned
and carried out by companies, whereas environmental stimuli include actions or events occurring in the wider
operating environment and include social, economic, political, and cultural dimensions. In addition, the buyer's
black box includes buyer characteristics and the decision process, which influence the buyer's responses.

Purchases of up-market perfumes, often bought as gifts, are high involvement decisions because the gift
symbolises the relationship between the giver and the intended recipient.
The black box model considers the buyer's response as a result of a conscious, rational decision process, in
which it is assumed that the buyer has recognized a problem, and seeks to solve it through a commercial
purchase. In practice some purchase decisions, such as those made routinely or habitually, are not driven by a
strong sense of problem-solving. Such decisions are termed low-involvement and are characterized by relatively
low levels of information search and evaluation activities. In contrast, high involvement decisions require a
serious investment of time and effort in the search and evaluation process.[19] Low involvement products are
typically those that carry low levels of economic or psycho-social risk. High involvement products are those
that carry higher levels of risk and are often expensive, infrequent purchases.[20] Regardless of whether the
consumer faces a high or low involvement purchase, they need to work through a number of distinct stages of a
decision process.

The consumer's purchase decision process: an overview[edit]

The consumer buying process is usually depicted as consisting of 5 distinct stages:[21]
The purchase decision begins with the problem recognition stage, which occurs when the consumer identifies a
need, typically defined as the difference between the consumer's current state and their desired state. The
strength of the need drives the entire decision process. Information search is the phase where consumers scan
both their internal memory and external sources for information about products or brands that will potentially
satisfy their need. The aim of the information search is to identify a list of options that represent realistic
purchase options. Throughout the entire process, the consumer engages in a series of mental evaluations of
alternatives, searching for the best value. Towards the end of the evaluation stage, consumers form a purchase
intention, which may or may not translate into an actual product purchase.[21] Even when consumers decide to
proceed with an actual purchase, the decision-process is not complete until the consumer purchases or
experiences the product and engages in a final post purchase evaluation, a stage in which the purchaser's actual
experience of the product is compared with the expectations formed during the information search and
evaluation stages. The stages of the decision process normally occur in a fixed sequence.[22] However,
information search and evaluation can occur throughout the entire decision process, including post-purchase.
Problem recognition[edit]
The first stage of the purchase decision process begins with problem recognition (also known as category need
or need arousal). This is when the consumer identifies a need, typically defined as the difference between the
consumer's current state and their desired or ideal state. A simpler way of thinking about problem recognition is
that it is where the consumer decides that they are 'in the market' for a product or service to satisfy some need or
want. The strength of the underlying need drives the entire decision process.[23]
Theorists identify three broad classes of problem-solving situation relevant for the purchase decision:[24]
Extensive problem-solving
Purchases that warrant greater deliberation, more extensive information search and evaluation of
alternatives. These are typically expensive purchases, or purchases with high social visibility e.g. fashion,
cars.
Limited problem-solving
Known or familiar purchases, regular purchases, straight re-buys. Typically low-priced items.
Routinized problem-solving
Repeat purchases or habitual purchases
Consumers become aware of a problem in a variety of ways including:[25]
 The purchase of a mobile phone may trigger the desire for accessories such as this phone mount for use in a
car.

Out-of-Stock/ Natural Depletion

When a consumer needs to replenish stocks of a consumable item e.g. ran out of milk or bread.
Regular purchase
When a consumer purchases a product on a regular basis e.g. newspaper, magazines.
Dissatisfaction
When a consumer is not satisfied with the current product or service.
New Needs or Wants
Lifestyle changes may trigger the identification of new needs e.g. the arrival of a baby may prompt the
purchase of a cot, stroller, and car-seat for the baby.
Related products
The purchase of one product may trigger the need for accessories, spare parts, or complementary goods and
services e.g. the purchase of a printer leads to the need for ink cartridges; the purchase of a digital camera
leads to the need for memory cards.
Marketer-induced problem recognition
When marketing activity persuades consumers of a problem (usually a problem that the consumer did not
realise they had). The consciously, and subconsciously, consumed content in traditional as well
as social media greatly plays the role of a stimulus for the consumer's recognition of a new need.
New Products or Categories
When consumers become aware of new innovative products that offer a superior means of fulfilling a need.
Disruptive technologies such as the advent of wireless-free communications devices can trigger a need for
plethora of products such as a new mouse or printer.
Information search[edit]
Customer purchase decision, illustrating different communications touchpoints at each stage

During the information search and evaluation stages, the consumer works through processes designed to arrive
at a number of brands (or products) that represent viable purchase alternatives. Typically consumers first carry
out an internal search and scan their memory for suitable brands. The evoked set is the set of brands that a
consumer can elicit from memory and is typically a very small set of some 3- 5 alternatives.[26] Consumers
may choose to supplement the number of brands in the evoked set by carrying out an external search using
sources such as the Internet, manufacturer/brand websites, shopping around, product reviews, referrals from
peers and the like. The readiness of information availability has raised the informedness of the consumers: the
degree to which they know what is available in the marketplace, with precisely which attributes, and at
precisely what price.[27]
The fact that a consumer is aware of a brand does not necessarily mean that it is being considered as a potential
purchase. For instance, the consumer may be aware of certain brands, but not favourably disposed towards them
(known as the inept set). Such brands will typically be excluded from further evaluation as purchase options.
For other brands, the consumer may have indifferent feelings (the inert set).[28] As the consumer approaches
the actual purchase, they distill the mental list of brands into a set of alternatives that represent realistic
purchase options, known as the consideration set.[29] By definition, the consideration set refers to the “small
set of brands which a consumer pays close attention to when making a purchase decision”.[30] This ultimately
leads to a choice set which includes the alternatives that are strong contenders for purchase.[31]
Specific brand names enter the consumer's consideration set based on the extent to which they satisfy the
consumer's purchasing objectives and/or the salience or accessibility of the brand at the time of making the
purchase decision.[32] By implication, brand names that are more memorable are more likely to be accessible.
Traditionally, one of the main roles of advertising and promotion was to increase the likelihood that a brand
name was included in the consumer's evoked set.[33] Repeated exposure to brand names through intensive
advertising was the primary method for increasing top-of-mind brand awareness. However, the advent of the
Internet means that consumers can obtain brand/product information from a multiplicity of different platforms.
In practice, the consideration set has assumed greater importance in the purchase decision process because
consumers are no longer totally reliant on memory. This is marketing, which could be defined as “the process
by which companies create value for customers and build strong customer relationships, in order to capture
value from customers in return.”[34] This definition strongly implies that the relationship is built upon an
exchange and the "creation" of value. This means that a need is built for a consumer, with the product presented
or advertised to them through an analytical study of the user's patterns of consumption and their behaviors and
habits. The implication for marketers is that relevant brand information should be disseminated as widely as
possible and included on any forum where consumers are likely to search for product or brand information,
whether traditional media or digital media channels. Thus, marketers require a rich understanding of the typical
consumer's touchpoints.
Evaluation of alternatives[edit]
 Consumers shopping at London's Burlington Arcade engage in a variety of recreational and functional
purchasing activities - from window shopping through to transporting their purchases homewards.

Consumer evaluation can be viewed as a distinct stage. Alternatively, evaluation may occur continuously
throughout the entire decision process. Consumers evaluate alternatives in terms of the functional (also
called utilitarian) and psycho-social (also called the value-expressive or the symbolic) benefits offered.[35]

 Functional benefits are the tangible outcomes that can be experienced by the consumer such as taste or
physical appearance.
 Psycho-social benefits are the more abstract outcomes or the personality-related attributes of a brand, such
as the social currency that might accrue from wearing an expensive suit or designer label or driving a 'hot'
car.
Brand image (or brand personality) is an important psycho-social attribute. Consumers can have both positive
and negative beliefs about a given brand.[36] A considerable body of research suggests that consumers are
predisposed towards brands with a personality that matches their own and that a good match can affect brand
preference, brand choice, satisfaction with a brand, brand commitment and loyalty, and the consumer's
propensity to give positive word-of-mouth referrals.[citation needed] The branch of consumer behaviour that
investigates the matching of a brand's personality and the consumer's personality is known as self-congruity
research. [37] The social media presence of a brand plays a huge part in this stage, with the effect described as
“Think of regular media as a one-way street where you can read a newspaper or listen to a report on television,
but you have very limited ability to give your thoughts on the matter. Social media, on the other hand, is a two-
way street that gives you the ability to communicate too.”[38] Consumer beliefs about a brand or product
category may vary depending on a range of factors including the consumer's prior experience and the effects of
selective perception, distortion, and retention. Consumers who are less knowledgeble about a category tend to
evaluate a brand based on its functional characteristics. However, when consumers become more
knowledgeable, functional attributes diminish and consumers process more abstract information about the
brand, notably the self-related aspects.[39]
The marketing organization needs a deep understanding of the benefits most valued by consumers and therefore
which attributes are most important in terms of the consumer's purchase decision. It also needs to monitor other
brands in the customer's consideration set to optimise planning for its own brand. During the evaluation of
alternatives, the consumer ranks or assesses the relative merits of different options available. No universal
evaluation process is used by consumers across all-buying situations.[40] Instead, consumers generate different
evaluation criteria depending on each unique buying situation. Social media further enables consumers to share
views with their peers about the product they are looking to purchase.[41] This way, consumers can gauge the
positive and negative sides of each alternative, and decide even more conveniently as for the best product to
buy. Thus the relevant evaluation attributes vary according to across different types of consumers and purchase
contexts. For example, attributes important for evaluating a restaurant would include food quality, price,
location, atmosphere, quality of service, and menu selection. Consumers, depending on their geographic,
demographic, psychographic and behavioural characteristics, will decide which attributes are important to them.
Potential patrons seeking a pleasant dining experience may be willing to travel further distances to patronise a
fine-dining venue compared to those wanting a quick meal at a more utilitarian eatery. After evaluating the
different product attributes, the consumer ranks each attribute or benefit from highly important to least
important. These priorities are directly related to the consumer's needs and wants.[42] Thus, the consumer
arrives at a weighted score for each product or brand which represents the consumer's subjective assessment of
individual attribute scores weighted in terms of their importance. Using these scores, they arrive at a total
mental score or rank for each product/brand under consideration.[43]
Purchase decision[edit]
Once the alternatives have been evaluated, the consumer firms up their resolve to proceed through to the actual
purchase. For example, the consumer might say to themself, "Yes, I will buy Brand X one day." This self
instruction to make a purchase is known as purchase intent. Purchase intentions are a strong yet imperfect
predictor of sales. Sometimes purchase intentions simply do not translate into an actual purchase and this can
signal a marketing problem.[44] For instance, a consumer may wish to buy a new product, but may be unaware
of the retail outlets that stock it, so that purchase cannot proceed. The extent to which purchase intentions result
in actual sales is known as the sales conversion rate.[45]

Happy hour, where two drinks can be purchased for the price of one, is a strong call-to-action because it
encourages consumers to buy now rather than defer purchasing to a later time.

Organizations use a variety of techniques to improve conversion rates. The provision of easy credit or payment
terms may encourage purchase. Sales promotions such as the opportunity to receive a premium or enter a
competition may provide an incentive to buy now rather than defer purchases for a later date. Advertising
messages with a strong call-to-action are yet another device used to convert customers.[46] A call-to-action is
any device designed to encourage immediate sale.[47] Typically, a call-to-action includes specific wording in
an advertisement or selling pitch that employs imperative verbs such as "Buy now!" or "Don't wait!". Other
types of calls-to-action might provide consumers with strong reasons for purchasing immediately such an offer
that is only available for a limited time (e.g. 'Offer must expire soon'; 'Limited stocks available') or a special
deal usually accompanied by a time constraint (e.g. 'Order before midnight to receive a free gift with your
order'; 'Two for the price of one for the first 50 callers only'). Additionally, service convenience is a saving of
effort, in the way that it minimizes the activities that customers may bear to buy goods and services.[48] The
key to a powerful call-to-action is to provide consumers with compelling reasons to purchase promptly rather
than defer purchase decisions.
As consumers approach the actual purchase decision, they are more likely to rely on personal sources of
information.[49] For this reason, personal sales representatives must be well versed in giving sales pitches and
in tactics used to close the sale. Methods used might include ‘social evidence’, where the salesperson refers to
previous success and satisfaction from other customers buying the product. ‘Scarcity attraction’ is another
technique, where the salesperson mentions that the offer is limited, as it forces the consumer to make a quicker
decision and therefore spend less time evaluating alternatives.[50]
Post-purchase evaluation[edit]
Following purchase and after experiencing the product or service, the consumer enters the final stage, namely
post-purchase evaluation. Foxall suggested that post-purchase evaluation can provide key feedback to marketers
because it influences future purchase patterns and consumption activities.[51][52]
The post purchase stage is where the consumer examines and compares product features, such as price,
functionality, and quality with their expectations.[53] Post purchase evaluation can be viewed as the steps taken
by consumers to correlate their expectations with perceived value and thus influence their next purchase
decision for that good or service.[54] For example, if a consumer buys a new phone and their post-purchase
evaluation is positive, they will be encouraged to purchase the same brand or from the same company in the
future. This is also known as "post-purchase intention".[55] On the contrary, if a consumer is dissatisfied with
the new phone, they may take actions to resolve the dissatisfaction. Consumer actions, in this instance, could
involve requesting a refund, making a complaint, deciding not to purchase the same brand or from the same
company in the future, or even spreading negative product reviews to friends or acquaintances, possibly via
social media.
After acquisition, consumption, or disposition, consumers may feel some uncertainty in regards to the decision
made, generating in some cases regret. Post-decision dissonance[56] (also known as cognitive dissonance) is the
feeling of anxiety that occurs in the post purchase stage, as well as the uneasy feelings or concerns as to whether
or not the correct decision was made at purchase.[57] Some consumers, for instance, may regret that they did
not purchase one of the other brands they were considering. This type of anxiety can affect consumers'
subsequent behaviour and may have implications for repeat patronage and customer loyalty.
Consumers use a number of strategies to reduce post purchase dissonance. A typical strategy is to look to peers
or significant others for validation of the purchase choice. Customers have always been led by the opinions of
friends and family, but nowadays this is corroborated by social media likes, reviews, and testimonials.
Marketing communications can also be used to remind consumers that they made a wise choice by purchasing
Brand X.[58]
When consumers make unfavorable comparisons between the chosen option and the options forgone, they may
feel post-decision regret or buyer's remorse. Consumers can also feel short-term regret when they avoid making
a purchase decision, however this regret can dissipate over time. Through their experiences consumers can learn
and also engage in a process called hypothesis testing. This refers to the formation of hypotheses about the
products or a service through prior experience or word of mouth communications. There are four stages that
consumers go through in the hypothesis testing: Hypothesis generation, exposure of evidence, encoding of
evidence, and integration of evidence.

Influences on purchase decision[edit]

Purchasing is influenced by a wide range of internal and external factors.
Consumer awareness[edit]
Consumer awareness refers to the awareness of the consumption of goods formed by consumers in the long-
term shopping environment and purchasing activities.[59]
The change of life concept is the subjective factor of the change of consumer awareness. As people's living
standards continue to increase and incomes continue to increase, people's life concepts are constantly changing.
[60] Differences in consumer personality are the internal motivations for changes in consumer awareness.
Intensified market competition is a catalyst for changes in consumer awareness. Many companies have
launched their own branded products in order to gain a foothold in an increasingly competitive market.[61] In
the face of a variety of goods and brands, consumers' brand awareness matures. When people buy goods, paying
attention to the brand has become a fashion. Faced with the severe competition situation, companies began to
realize the importance of implementing brand strategy, and began to focus on market research, and on this basis,
deeply grasp the consumer's psychological pulse to improve market share and brand loyalty.[62] With the
change of people's life concept, consumers' rational consumption psychology has become increasingly
prominent. Social Marketing,[63] Customized Marketing,[64] brand-name shopping,[65] and the consumer's
perception of the price of the commodity (directly expressed as the consumer's sensitivity to price) are all main
factors for understanding consumer attitudes, and help explain the reaction of market demand to price changes.
[66]
Internal influences on purchase decision[edit]
See also: Market segmentation
Internal influences refer to both personal and interpersonal factors. Social theory suggests that individuals have
both a personal identity and a social identity. Personal identity consists of unique personal characteristics such
as skills and capabilities, interests, and hobbies. Social identity consists of the individual's perception of the
central groups to which an individual belongs and may refer to an age group, a lifestyle group, religious group,
educational group, or some other reference group. Social psychologists have established that the need to belong
is one of the fundamental human needs.[67] Purchasing behaviour is therefore influenced by a broad range of
internal factors such as psychological, socio-economic, demographic and personality
factors. Demographic factors include income level, psychographics (lifestyles), age, occupation, and
socioeconomic status. Personality factors include knowledge, attitudes, personal values, beliefs, emotions, and
feelings. Psychological factors include an individual's motivation, attitudes, personal values, and beliefs. Social
identity factors include culture, sub-culture, and reference groups. Other factors that may affect the purchase
decision include the environment and the consumer's prior experience with the category or brand.
Motivations and emotions[edit]

Maslow's hierarchy suggests that people seek to satisfy basic needs such as food and shelter before higher
order needs become meaningful.

The consumer's underlying motivation drives consumer action, including the information search and purchase
decision. The consumer's attitude to a brand (or brand preference) is described as a link between the brand and a
purchase motivation.[68] These motivations may be negative (to avoid pain or unpleasantness) or positive (to
achieve some type of reward such as sensory gratification).[69]
One approach to understanding motivations was developed by Abraham Maslow. Maslow's hierarchy of
needs is based on five levels of needs, organized accordingly to the level of importance.
Maslow's five needs are:[58]
Physiological
basic levels of needs such as food, water, and sleep
Safety
the need for physical safety, shelter, and security
Belonging
the need for love, friendship, and also a desire for group acceptance
Esteem
The need for status, recognition, and self-respect
Self-actualization
The desire for self-fulfillment (e.g. personal growth, artistic expression)
Physiological needs and safety needs are the so-called lower order needs. Consumers typically use most of their
resources (time, energy, and finances) attempting to satisfy these lower order needs before the higher order
needs of belonging, esteem, and self-actualization become meaningful. Part of any marketing program requires
an understanding of which motives drive given product choices. Marketing communications can illustrate how a
product or brand fulfills these needs.[61] Maslow's approach is a generalised model for understanding human
motivations in a wide variety of contexts, but is not specific to purchasing decisions.

A decision to purchase an analgesic preparation is motivated by the desire to avoid pain (negative
motivation).

A decision to buy an ice-cream sundae is motivated by the desire for sensory gratification (positive
motivation).
Another approach proposes eight purchase motivations, five negative motives and three positive motives, which
energise purchase decisions as illustrated in the table below.[69] These motivations are believed to provide
positive reinforcement or negative reinforcement.[70]
Rossiter and Percy's Purchase Motivations & Emotions

Motivation Emotional Sequence

NEGATIVE

Problem removal Annoyance → Relief

Problem avoidance Fear → Relaxation

Incomplete satisfaction Disappointment → Optimism

Mixed approach avoidance Conflict → Peace-of-mind

Normal depletion Mild annoyance → Convenience

POSITIVE

Sensory gratification Dull (or neutral) → Sensory anticipation

Intellectual simulation Bored (or neutral) → Excited

Social
Apprehensive (or ashamed) → Flattered/proud
approval/conformity

In the marketing literature, the consumer's motivation to search for information and engage in the purchase
decision process is sometimes known as involvement.[71] Consumer involvement has been defined as "the
personal relevance or importance of a message [or a decision]".[72] Purchase decisions are classified as low
involvement when consumers suffer only a small psycho-social loss in the event that they make a poor
decision. On the other hand, a purchase decision is classified as high involvement when psycho-social risks are
perceived to be relatively high.[73] The consumer's level of involvement is dependent on a number of factors
including perceived risk of negative consequences in the event of a poor decision, the social visibility of the
product, and the consumer's prior experience with the product category.[74]
Perception[edit]
Part of marketing strategy is to ascertain how consumers gain knowledge and use information from external
sources. The perception process is where individuals receive, organize, and interpret information in order to
attribute some meaning. Perception involves three distinct processes: sensing information, selecting
information, and interpreting information. Sensation is also part of the perception process, and it is linked direct
with responses from the senses creating some reaction towards the brand name, advertising, and packaging. The
process of perception is uniquely individual and may depend on a combination of internal and external factors
such as experiences, expectations, needs, and the momentary set.
When exposed to a stimulus, consumers may respond in entirely different ways due to individual perceptual
processes.[58] A number of processes potentially support or interfere with perception. Selective exposure occurs
when consumers decide whether to be exposed to information inputs. Selective attention occurs when
consumers focus on some messages to the exclusion of others. Selective comprehension is where the consumer
interprets information in a manner that is consistent with their own beliefs. Selective retention occurs when
consumers remember some information while rapidly forgetting other information.[75] Collectively the
processes of selective exposure, attention, comprehension, and retention lead individual consumers to favor
certain messages over others. The way that consumers combine information inputs to arrive at a purchase
decision is known as integration.[76]
Marketers are interested in consumer perceptions of brands, packaging, product formulations, labeling, and
pricing. Of special interest is the threshold of perception (also known as the just noticeable difference) in a
stimulus. For example, how much should a marketer lower a price before consumers recognize it as a bargain?
[77] In addition, marketers planning to enter global markets need to be aware of cultural differences in
perception.[78] For example, westerners associate the color white with purity, cleanliness, and hygiene, but in
eastern countries white is often associated with mourning and death. Accordingly, white packaging would be an
inappropriate color choice for food labels on products to be marketed in Asia.
Prior experience[edit]
The consumer's prior experience with the category, product, or brand can have a major bearing on purchase
decision-making. Experienced consumers (also called experts) are more sophisticated consumers; they tend to
be more skillful information searchers, canvass a broader range of information sources, and use complex
heuristics to evaluate purchase options. Novice consumers, on the other hand, are less efficient information
searchers and tend to perceive higher levels of purchase risk on account of their unfamiliarity with the brand or
category. When consumers have prior experience, they have less motivation to search for information and spend
less effort on information search but can process new information more efficiently.[79] One study, for example,
found that as consumer experience increases, consumers consider a wider range of purchase alternatives (that is,
they generate a larger consideration set, but only at the product category level).[80]
External influences on purchase decision[edit]
Purchasing behaviour can also be affected by external influences, such as culture, sub-culture, social
class, reference groups, family, and situational determinants.
Culture[edit]

People with shared interests, such as skaters and bladers, tend to form informal groups known as subcultures.

Culture is the broadest and most abstract of the external factors. Culture refers to the complexity of learning
meanings, values, norms, and customs shared by members of a society. Cultural norms are relatively stable over
time, so culture has a major effect on consumer behaviour. Research studies have consistently shown that
culture influences almost every aspect of purchasing: it affects basic psychological domains such as self-identity
and motivation, the way that information is processed, and the way that advertising messages are interpreted.
[81]
Marketers interested in global expansion are especially interested in understanding cross-cultural differences in
purchasing and consumption. For instance, Ferrari, one of the world's top brands found that Chinese consumers
are very different from their Western counterparts. Whereas consumers in the US, UK and Australia expect to
wait 12 months for a custom-made Ferrari, prospective Chinese buyers want to drive the vehicle off the
showroom floor. China is an ‘instant-gratification market’. Buyers see their friends riding around in a luxury car
and want to have the same as quickly as possible. To meet the growing demand for luxury goods, Ferrari and
other luxury car makers have been forced to modify their production processes for Asian markets.[82]
Subcultures[edit]

Harley-Davidson enthusiasts are an example of a consumption subculture.

Subcultures may be based on age, geographic, religious, racial, and ethnic differences. More often, however,
a subculture occurs when people with shared interests form a loose-knit group with a distinctive identity
(sometimes called consumer tribes). Members of subcultures are self-selected, and signal their membership
status by adopting symbols, rituals, or behaviours that are widely understood by other members of the tribe (e.g.
a dress code, hairstyle or even a unique way of speaking). For example, within youth culture it is possible to
identify a number of sub-groups with common interests such as skaters and bladers, surfers, ravers, punks, skin-
heads, Goths, homies, and others. Generally known as communities, as they create a sense of belonging to
something important.
A different type of subculture is a consumption subculture which is based on a shared commitment to a
common brand or product. In other words, consumption subcultures cut across demographic, geographic, and
social boundaries. The most well-known example of a consumption subculture is that of Harley-
Davidson motorcycle owners. Ethnographic researchers who have studied Harley riders believe that there are
only two types of motor cyclists: Harley owners and the rest.[83] Harley-Davidson has leveraged the values of
this subculture by establishing the Harley Owners Group (HOG).[84]
 Members of the 'Goth' subculture share a dress code.

Subcultures are important to marketers for several reasons. Firstly, given that subcultures can represent sizeable
market segments which are profitable and influential, there are obvious advantages in developing and selling
products and services that meet the needs of subculture members. Secondly, and perhaps less obviously, many
new fads and fashions emerge spontaneously from within these tribal groups. Trend-spotters are accordingly
interested in studying the lifestyles and activities of tribes in an effort to spot new trends before they go
mainstream.
Social class[edit]
Social class refers to relatively homogenous divisions in a society, typically based on socio-economic variables
such as educational attainment, income, and occupation. Social class can be very difficult to define and
measure, however marketers around the world tend to use a conventional classification which divides any given
population into five socio-economic quintiles (e.g. In Australia the groups AB, C, D, E and FG, where AB is the
top socio-economic quintile, but in much of Asia the quintiles are labelled I, II, III, IV and V where I is the top
quintile). In Australia, for example, the AB socio-economic group account for just 24% of the population, but
control 50% of discretionary spending.[85] The top quintiles (i.e. AB socio-economic segments) are of
particular interest to marketers of luxury goods and services such as travel, dining-out, entertainment, luxury
cars, investment or wealth management services, up-market consumer electronics, and designer labels (e.g.
Louis Vuitton). However, middle-class consumers tend to consume more carefully in comparison and collect
information to compare different producers in the same line. Those who are lower-class consumers tend to buy
more on impulse in comparison to the wealthy class who purchases goods to maintain social status.[86]
Reference groups[edit]
A reference group is defined as "a group whose presumed perspectives or values are being used by an
individual as the basis for his or her judgment, opinions, and actions". Reference groups are important because
they are used to guide an individual's attitudes, beliefs and values.[61] Insights into how consumers acquire a
given value system can obtained from an understanding of group influence and group socialisation processes.
The family, a primary reference group, exerts a strong influence on attitudes and behaviours.

The literature identifies five broad types of reference group: primary, secondary, aspirational, dissociative and
formal:
Primary groups: groups, such as family, that exert a strong influence on attitudes and behaviours
Secondary groups: groups such as clubs, societies, sports teams, political parties, religions that align with a
person's ideas or values, but exert a less fundamental influence on the formation of attitudes and behaviours
Aspirational groups groups to which an individual does not currently belong, but possibly aspires to become
a member because the group possesses characteristics which are admired.
Disassociative reference groups - a group which has a negative image; individuals may disapprove of the
disassociative group's values, attitudes or behaviours and may seek to distance themselves from such groups.
[57]
Opinion Leaders can act like reference groups in that they exert considerable social influence because of their
product knowledge, expertise and credibility. In the marketing literature, opinion leaders are also known as
influencers, mavens, and even hubs.[87] Opinion leaders are specific to a product category, so that an opinion
leader for computers is not likely to be an opinion leader for fashion. Typically, opinion leaders have high levels
of involvement with the product category, are heavy users of the category, and tend to be early adopters of new
technologies within the category. Journalists, celebrities, and bloggers are good examples of an opinion leader
due to their broad social networks and increased ability to influence people's decisions.[57] Indeed, recent
evidence suggests that bloggers may be emerging as a more important group of opinion leaders than celebrities.
[88]
In order to leverage the value of opinion leaders in marketing strategies, it is important to be able to identify the
unique opinion leaders for each category or situation and this can be very challenging. Some techniques that can
be used are through key informants, socio-metric techniques and self-questionnaires.[89] More often, however,
marketers use gut instinct to identify opinion leaders. For example, marketers of athletic shoes have been known
to provide gym and aerobic instructors with free shoes in the hope that class members will adopt the same brand
as the instructor. Marketers of cosmetics and skincare preparations regularly provide fashion editors with free
samples in the hope that their products will be mentioned in fashion magazines.
Influences on consumer purchasing behaviours during the COVID-19 pandemic[edit]
Evidence shows that certain consumer purchasing behaviours rose to prominence during the COVID-19
pandemic[90] as result of external and internal factors. Namely, behaviours such as compulsive buying,
impulsive buying, panic buying, and revenge buying – where panic buying and revenge buying were most
noticeable – proved as a coping strategy for alleviating consumers’ negative responses to the pandemic.[91]
Panic buying occurs when consumers purchase more things than usual as a consequence of adverse feelings of
fear, anxiety and uncertainty surrounding a crisis or disruptive event.[92] Such purchases tend to be excessive in
relation to the perceived threat.[93] During the pandemic, panic buying of necessities, such as food and hygiene
products, increased across the globe.[91] Consider, in particular, that Australia faced an unprecedented spike in
toilet paper sales, prompting comments from its Prime Minister.[94] Panic buying – in response to an irrational
fear of scarcity of products and heightened urgency to procure coveted items – provided a sense of control for
consumers during the pandemic, notwithstanding a loss of control to the social, professional and health
environments around them.[93]
In addition to panic buying throughout the pandemic, revenge buying was apparent during periods when non-
essential stores reopened after COVID-19-related lockdowns.[91] Revenge buying was specifically observed in
physical luxury retail stores.[91] For example, it was reported that an Hermes store in Guangzhou, China, made
US$2.7 million in the first day it opened after lockdown, where consumers' purchases ranged from leather
goods, scarves and homewares to a diamond-studded Birkin bag, among other things.[95]
The purchase of luxury products – where ‘luxury’ is defined as high quality, expensive and non-necessary[96] –
is associated with positive emotions, often to compensate for negative feelings.[97] Namely, revenge buying of
luxury products provided an emotional release and a sense of belonging, esteem, and self-actualisation during
the COVID-19 pandemic, in which people were frustrated and psychologically discomforted.[98] Such
purchases can be said to have achieved sensory gratification as well as problem avoidance for consumers.[91]
It is clear that consumers sought to obtain internal happiness through consumption as a response to external
health crises and social distancing measures.[99] Both panic buying and revenge buying were compensatory in
nature and therapeutic in nature – an attempt for consumers to control an external situation that was out of their
internal control, as well as provide comfort, security, and improvement of well-being.[91]
Due to the environmental trends, people begin to shop online more to avoid physical stores and stay contactless.
Customers will spend more on sportswear than on professional dressing in 2020, and technology products
related to teleworking, such as Zoom, also have more consumers than before.[100]
Kannan and Kulkarni also illustrate some phenomena led by the channel migration caused by Covid-19. The
first phenomenon is that customers are more open-minded to trying new brands and products because of the
limitation of online channels of certain brands; the second phenomenon is that the long time pandemic
restrictions make customers who use online channels as substitutes for their offline purchases initially now
those customers have learned how to effectively use online channels for their daily lives.[101]

Consumer decision styles[edit]

Those who shop for pleasure are said to be recreational shoppers.

A number of theorists have argued that certain fundamental decision-making styles can be identified.[102]
[103] A decision-making style is defined as a "mental orientation characterising a consumer's approach to
making choices."[104] Sproles and Kendall (1986) developed a consumer style inventory (CSI) consisting of
eight factors, such as price-sensitivity, quality-consciousness, brand-consciousness, novelty-seeking, fashion-
consciousness, and habit. Based on these factors, the authors developed a typology of eight distinct decision-
making styles:[105]

 Quality conscious/Perfectionist: characterised by a consumer's search for the very best quality in products;
quality conscious consumers tend to shop systematically making more comparisons and shopping around to
compare quality and value.
 Brand-conscious: characterised by a tendency to buy expensive, well-known brands, or designer labels.
Those who score high on brand-consciousness tend to believe that the higher prices are an indicator of
quality and exhibit a preference for department stores or top-tier retail outlets.The concept of Brand
Consciousness can be defined as the awareness of the brand and its product offerings that are quite
distinctive from the other brands in the market having a competitive advantage. The consumers are very
concerned about what the brand company thinks about its name and products.
 Recreation-conscious/Hedonistic: characterised by the consumer's engagement in the purchase process.
Those who score high on recreation-consciousness regard shopping itself as a form of enjoyment.
 Price-conscious: characterised by price-and-value consciousness. Price-conscious shoppers carefully shop
around seeking lower prices, sales, or discounts and are motivated by obtaining the best value for money.
 Novelty/fashion-conscious: characterised by a consumer's tendency to seek out new products or new
experiences for the sake of excitement; who gain excitement from seeking new things; they like to keep up-
to-date with fashions and trends. Variety-seeking is associated with this dimension.
 Impulsive: characterised by carelessness in making purchase decisions, spur of the moment purchases, and
lack of significant concern with expenditure levels or obtaining value. Those who score high on impulsive
dimensions tend not to be engaged with the object at either a cognitive or emotional level.
 Confused (by over-choice): characterised by a consumer's confusion caused by too many product choices,
too many stores, or an overload of product information. A result of information overload.
 Habitual/brand loyal: characterised by a consumer's tendency to follow a routine purchase pattern on each
purchase occasion; consumers have favourite brands or stores and have formed habits in choosing so the
purchase decision does not involve much evaluation or shopping around.
The Consumer Styles Inventory (CSI) has been extensively tested and retested in a wide variety of countries
and purchasing contexts.[106] Many empirical studies have observed cross-cultural variations in decision styles,
leading to numerous adaptations or modifications of the CSI scale for use in specific countries.[107] Consumer
decision styles are important for marketers because they describe behaviours that are relatively stable over time
and are therefore useful for market segmentation.[108]

Other topics in consumer behaviour[edit]

The purchase of an up-market sports car carries both financial risk and social risk, because it is an expensive
purchase and it makes a highly visible statement about the driver.
In addition to understanding the purchasing decision, marketers are interested in a number of different aspects
of consumer behaviour that occur before, during, and after making a purchase choice. Areas of particular
interest include risk perception and risk reduction activities, brand switching, channel switching, brand loyalty,
customer citizenship behaviours, and post purchase behavioural intentions and behaviours including brand
advocacy, referrals, word of mouth activity etc.
Risk perception and risk reduction activities[edit]
The consumer's perceptions of risk are a major consideration in the pre-purchase stage of the purchasing
decision. Perceived risk is defined as "the consumer's perceptions of the uncertainty and adverse consequences
of engaging in an activity".[109] Risk consists of two dimensions: consequences which refer to the degree of
importance or the severity of an outcome and uncertainty which is the consumer's subjective assessment of the
likelihood of occurrence.[110] For example, many tourists are fearful of air travel because, although the
probability of being involved in an airline accident is very low, the consequences are potentially dire.
The marketing literature identifies many different types of risk, of which five are the most frequently cited:
[111]

Facilitating trial of a product may help to alleviate risk perceptions.

 Financial Risk: the potential financial loss in the event of a poor decision
 Performance Risk (also known as functional risk): the idea that a product or service will not perform as
intended
 Physical Risk: the potential for physical harm if something goes wrong with a purchase
 Social Risk: the potential for loss of social status associated with a purchase
 Psychological Risk: the potential for a purchase to result in a loss of self-esteem
If a consumer perceives a purchase to be risky, they will engage in strategies to reduce the perceived risk until it
is within their tolerance levels or, if they are unable to do so, withdraw from the purchase.[112] Thus, the
consumer's perceptions of risk drive information search activities.
Services marketers have argued that risk perception is higher for services because they lack the search attributes
of products (i.e. tangible properties that can be inspected prior to consumption).[113] In terms of risk
perception, marketers and economists identify three broad classes of purchase: search goods, experience goods,
and credence goods with implications for consumer evaluation processes.[114] Search goods, which include
most tangible products, possess tangible characteristics that allow consumers to evaluate quality prior to
purchase and consumption. Experience goods, such as restaurants and clubs, can only be evaluated with
certainty after purchase or consumption. In the case of credence goods, such as many professional services, the
consumer finds it difficult to fully appreciate the quality of the goods even after purchase and consumption has
occurred. Difficulties evaluating quality after consumption may arise because the cost of obtaining information
is prohibitive, or because the consumer lacks the requisite skills and knowledge to undertake such evaluations.
These goods are called credence products because the consumer's quality evaluations depend entirely on the
trust given to the product manufacturer or service provider.[115]
Typical risk-reduction strategies used include:[116][117]

Prospective purchasers carefully inspect the merchandise before purchasing expensive gold jewellery.

 Advertising and Promotional Messages: pay closer attention to product or brand related promotion
including advertising messages
 Shopping Around: comparing offers and prices, inspecting the merchandise
 Buy Known Brand: using a known, reputable brand as an indicator of quality merchandise
 Buy from Reputable Store: relying on a reputable retail outlet as an indicator of quality
 Product Reviews: reading independent reviews in main media (e.g. newspapers, magazines), written by
independent experts
 Online product reviews or consumer-generated testimonials: reading about the experiences of other
consumers (e.g. TripAdvisor, Amazon customer reviews)
 Sampling or Limited-scale Trial: where practical, obtaining samples, free trial or a 'test-drive' prior to
purchase
 Manufacturer Specifications: reading information provided by manufacturers e.g. brochures or specs
 Referrals: obtaining referrals from friends or relatives
 Sales Representatives: talking to sales reps in retail outlets
 Product Guarantees: looking for formal guarantees or warranties
New product adoption and diffusion of innovations[edit]
See also: Diffusion of innovations and Bass diffusion model
The diffusion of innovations according to Rogers. As successive groups of consumers adopt the
innovation(shown in blue), its market share (yellow) will eventually reach saturation level.

Within consumer behaviour, a particular area of interest is the study of how innovative new products, services,
ideas, or technologies spread through groups. Insights about how innovations are diffused (i.e., spread) through
populations can assist marketers to speed up the new product adoption process and fine-tune the marketing
program at different stages of the diffusion process. In addition, diffusion models provide benchmarks against
which new product introductions can be tracked.
A sizeable body of literature has been devoted to the diffusion of innovation.[118] Research studies tend to fall
into two broad categories: general diffusion research which is an approach that seeks to understand the general
process of diffusion and applied diffusion research which consists of studies that describe the diffusion of
specific products at particular moments in time or within given social communities.[119] Collectively these
studies suggest a certain regularity in the adoption process; initially few members adopt the innovation but over
time successive, overlapping waves of people begin to adopt the innovation.[120] This pattern contributes to a
generalised S-shaped curve, as shown in the figure at right. However, the exact shape and timing of curves
varies in different product markets such that some innovations are diffused relatively quickly, while others can
take many years to achieve broad market acceptance.
The diffusion model developed by Everett Rogers is widely used in consumer marketing because it segments
consumers into five groups, based on their rate of new product adoption.[121] Rogers defines the diffusion of
innovation as the process by which that innovation is "communicated through certain channels over time among
the members of a social system."[122] Thus the diffusion process has a number of elements, the innovation, the
communication channels, time and the social system. An innovation is any new idea, object or process that is
perceived as new by members of the social system. Communication channels are the means by which
information about the innovation is transmitted to members of the social system and may include mass media,
digital media and personal communications between members of the social system. Time refers to the rate at
which the innovation is picked up by the members of the social system.
Table 1: Adopter Categories[123]
Adopter Proportion of All
Psycho-social and Demographic Characteristics
Group Adopters

Innovators 2.5%  adopt new products or concepts well ahead of the social community
 venturesome; like new ideas
 are willing to accept some uncertainty/risk in purchase decision-
making
 are active information seekers
 cosmopolitan; move in broad social circles
  have access to financial resources (which helps absorb potential losses
when innovations fail)
 tend to be heavy users or category enthusiasts (e.g. tech-heads are the
first to adopt new communications technologies)
 tend to be younger, well-educated, and affluent
 second group to adopt new products or concepts
 not too far ahead of the community in terms of innovativeness
Early  have the respect of their social communities
13.5%
adopters  potential adopters look to early adopters as role models
 are important opinion leaders
 higher social status and well-educated
 third group to adopt new products or concepts
Early  adopt innovations only marginally ahead of the community average
34%
majority  tend to be more deliberate in purchase decision-making
 average social status and education levels
 adopt new products or concepts slightly later than average
Late majority 34%  skeptical in purchase decision-making
 adoption is often a response to social community pressures
 last group to adopt new products or concepts
 highly cautious; need to be confident that an innovation will not fail
before purchasing
Laggards 16%  are the most risk-averse of all adopter segments; dislike change
 traditionalists; resistant to change; look to the past
 somewhat isolated within their social community
 often adopt innovations when they are becoming obsolete
 tend to be older, less well educated, and less affluent

A number of factors contribute to the rate at which innovations are diffused through a social community.[124]

Facilitating a 'test-drive' can encourage consumers to speed up adoption rates.

 Relative advantage: the degree to which an innovation is perceived to be superior to alternatives

 Compatibility: the extent to which an innovation fits in with an individual's values, lifestyles and past
experiences
 Complexity: the degree to which an innovation is perceived to be easy or difficult to understand and use
 Trialability: the extent to which an individual can experiment with the innovation on a limited scale prior to
adoption
 Observability: the degree to which the results of the innovation are visible to other members of the social
community
Innovations with some or all of these factors are more likely to be adopted quickly. Accordingly, marketing
communications may stress the innovation's relative benefits over other solutions to the consumer's problem.
Marketing messages may also focus on compatibility and observability. Marketers can also facilitate adoption
by offering limited scale trial (e.g. samples, test drives, sale on approval) enabling consumers to develop and
understanding of the innovation and how it is used prior to purchase.
Studies have shown that the diffusion rate for many new technologies is speeding up.[125] The figure in
the Household Penetration of Selected Communications Technologies report illustrates U.S. household
penetration rates of selected communications technologies, measured as a percentage of all households.
[126] The slope of the curve becomes steeper with each successive innovation indicating a more rapid diffusion
rate. For example, it took decades for the telephone to achieve 50 percent penetration rates beginning in around
1900, but it took less than five years for cellphones to achieve the same penetration rates. In order to explain the
increasing pace of adoption, some have pointed to supply-side issues such as reduced barriers to entry and lower
costs of innovation,[127][128] while others have argued that consumers drive adoption rates because they place
a high value on the convenience of new innovations.[129]
Brand-switching[edit]
Brand-switching occurs when a consumer chooses to purchase a different brand from their regular or customary
brand. Consumers switch brands for a variety of reasons including that the store did not have the regular brand
or the consumer's desire for variety or novelty in brand choice. In the fast moving consumer goods market
(FMCG), the incidence of switching is relatively high. A great deal of marketing activity is targeted at brand-
switchers. Rossiter and Bellman have proposed a classification of consumers based on brand-loyalty/switching
behaviour:[130]
Brand Loyals
Purchase preferred brand on almost every purchase occasion
Favourable Brand Switchers
Exhibit moderate preference for the brand or brands that they buy and can be readily enticed to purchase
competing brands
Other Brand Switchers
Normally purchase a competing brand, possibly because they are unaware of our brand or due to a negative
experience with our brand
New Category Users
Those who are unaware of a category but have potential to become new users
Marketers are particularly interested in understanding the factors that lead to brand-switching. A global, large
sample survey carried out by Nielsen shows that four in 10 shoppers (41%) said that getting a better price would
encourage them to switch brands (or service provider/retailer), 26% said quality was an incentive to switch,
15% looked for a better service agreement and 8% said that improved features are a switching incentive.
[131] However, cross-cultural differences were observed among respondents. Price was the major switch
incentive for more than half of North Americans (61%) and Europeans (54%) but price and quality held equal
sway in Asia-Pacific and Middle East/Africa, with roughly one-third of respondents each in both regions
reporting that both price and quality were the major incentives to switching.
The concept of switching costs (also known as switching barriers) is pertinent to the understanding of brand
switching. Switching costs refer to the costs incurred by a consumer when they switch from one supplier to
another (or from one brand to another). Although switching costs are often monetary, the concept can also refer
to psychological costs such as time, effort, and inconvenience incurred as a result of switching. When switching
costs are relatively low, as in the case of many fast moving consumer goods (FMCG), the incidence of brand
switching tends to be higher.[citation needed] An example of switching that includes both monetary and
psychological costs is when Android or Apple users wish to switch to a different platform, they would need to
sacrifice their data, including purchased music tracks, apps, or media and may also need to learn new routines to
become an efficient user.
Channel-switching[edit]

The advent of "category killers", such as Australia's Officeworks, has contributed to an increase in channel
switching behaviour.

Channel-switching (not to be confused with zapping or channel surfing on TV) is the action of consumers
switching to a different purchasing environment (or distribution channel) to purchase goods, such as switching
from brick-and-mortar stores to the internet.[132] A major reason for this channel switching behaviour is the
convenience that online shopping provides for consumers. Consumers can shop online at any hour of the day,
without having to drive, travel or walk to a physical store, and browse for as little or as much time as they
please. The additional lure of ‘online only’ deals and discounts helps enforce a consumer's preference to shop
online. Other factors for this shift are the globalization of markets, the advent of category killers (such
as Officeworks and Kids 'R Us) as well as changes in the legal regulatory environment. For instance, in
Australia and New Zealand, following a relaxation of laws prohibiting supermarkets from selling therapeutic
goods, consumers are gradually switching away from pharmacies and towards supermarkets for the purchase of
minor analgesics, cough and cold preparations and complementary medicines such as vitamins and herbal
remedies.[133]
For the consumer, channel switching offers a more diverse shopping experience. However, marketers need to be
alert to channel switching because of its potential to erode market share. Evidence of channel switching can
suggest that disruptive forces are at play, and that consumer behaviour is undergoing fundamental changes. A
consumer may be prompted to switch channels when the product or service can be found cheaper, when
superior models become available, when a wider range is offered, or simply because it is more convenient to
shop through a different channel (e.g. online or one-stop shopping).[134] As a hedge against market share
losses due to switching behaviour, some retailers engage in multi-channel retailing.[135]
Impulse buying[edit]
Impulse purchases are unplanned purchases. Impulse buying can be defined as “a sudden and powerful urge to
buy immediately” and occurs when a consumer purchases an item which they had no intention of purchasing
prior to entering the store.[136] Impulse buying can be influenced by external stimuli such as store
characteristics and sale promotions, internal stimuli such as enjoyment and self-identity, situational and product
related factors such as time and money available, and demographic and socio-cultural factors such as gender,
age, and education.[citation needed] Stern introduced the four broad classifications of impulse buying including
pure impulse buying, reminded impulse buying, suggestion impulse buying, and planned impulse buying:[137]
Large family-sized cakes are more likely to be a planned purchase, while the individual portions are much
more likely to be an unplanned purchase.

Pure impulse buying

Occurs outside of the normal purchase behaviour where a consumer experiences a strong emotion of desire
towards a product that they did not initially plan to buy.[50] Online shopping largely contributes towards
enabling spontaneous buying. Consistent email alerts from subscribed websites about special offers, limited
time discounts and flash sales on some level, stealthily create a sense of urgency for the consumer to
purchase the product.
Reminded impulse buying
Occurs when a consumer remembers the need for a product by seeing it in a store.[138] This is triggered
through various techniques such as in-store advertising or sensory marketing.[50] For example, a consumer
may be reminded to buy ingredients for a barbecue when they drives past a butcher store.
Suggestion impulse buying
Occurs when a consumer sees a product that they have no prior knowledge about, envisions a use for it, and
decides that they need it.[139] An example of suggestion impulse buying is when a consumer is encouraged
to purchase an electric hand-mixer after having picked up a brochure from the baking department of a home-
ware store. The brochure convinces the consumer of the hand-mixer's superiority over the wooden spoon
they have been using. Marketing techniques that can also trigger suggestion impulse buying include long-
term warranties or a free trial period.[50]
Planned impulse buying
Involves a partially planned intention of buying, however specific product or categories are not yet
determined.[citation needed] In this case, the consumer's purchasing decision can be encouraged by retailing
staff or even their peers who can persuade the consumer to purchase a substitute or provide reassurance
about an alternative brand choice.
Recent research carried out by Nielsen International suggests that about 72 percent of FMCG purchases are
planned, but that 28 percent of supermarket purchases are unplanned or impulse purchases. The top unplanned
purchases in the food category are candy (lollies), chocolate, cookies (biscuits), frozen desserts, and snacks and
the top unplanned purchases in the non-food category are cosmetics, air-fresheners, toothbrushes, hand-soaps,
and hand/body lotions.[140] This explains why supermarkets place these types of products at the front of the
store or near the checkout where the consumer spends more time and is more likely to notice them and therefore
more likely to pop them into the shopping basket. Retailers use insights from this type of research to design
stores in ways that maximise opportunities for impulse-buying.
Affect: Emotions, feelings and mood[edit]
The consumer's affective state has implications for a number of different dimensions of consumer behaviour,
including information search, evaluation of alternatives, product choice, service encounters, complaining, and
advertising responses. Westbrook (1987, p. 259) defines affect as a “class of mental phenomena uniquely
characterised by a consciously experienced, subjective feeling state, commonly accompanying emotions and
moods."[141] Research suggests that affect plays an important role in underlying attitudes, as well as shaping
evaluation and decision-making.[142]
Consumer researchers have noted the difficulties separating the concepts of affect, emotions, feelings, and
mood. The line between emotions and mood is difficult to draw and consumer researchers often use the
concepts interchangeably.[143] Yet other researchers note that a detailed understanding of the relationship
between affect and consumer behaviour has been hampered by the lack of research in the area.[144] Indeed,
within the consumer behaviour literature, there is widespread agreement that the role of emotions is an area that
is currently under-researched and is in need of greater attention, both theoretically and empirically.
Information search[edit]
Studies have found that people in a positive mood are more efficient at information search activities. That, is
they are more efficient at processing information, are able to integrate information by identifying useful
relationships and arrive at creative solutions to problems. Due to their efficiency processing information, those
who are in a positive mood are generally quicker to make decisions and easier to please. Research consistently
shows that people in a positive mood are more likely to evaluate information positively.[145] As online
environments become more important as a consumer search tool, it may be prudent for web designers to
consider site-design issues such as ease of navigation, lest poor design contribute to customer frustration
thereby engendering a bad mood and ultimately leading to unfavourable product/brand evaluations.
Choice[edit]

The immediate pleasure of eating candy often outweighs the longer term benefit of a healthier food choice.

Affect may play an important role in impulse-buying decisions. Research suggests that consumers place higher
weightings on immediate affective rewards and punishments, while delayed rewards receive less weighting.
[146] For instance, the immediate pleasure of eating a sweet treat often outweighs the longer term benefits of
eating a healthy alternative such as fruit. This occurs because the immediate emotional gain is a strong driver,
and one that consumers can readily visualise whereas the more distant goal lacks sufficient strength to drive
choice.
Customer experience[edit]
Customers who are in a bad mood are more difficult to please. They are slower to process information and
consequently take longer to make decisions. They tend to be more argumentative and are more likely to
complain.
Customer satisfaction[edit]
The relationship between affect and customer satisfaction is an area that has received considerable academic
attention, especially in the services marketing literature.[147] The proposition that there is a positive
relationship between affect and satisfaction is well supported in the literature. In a meta-analysis of the
empirical evidence, carried out in 2001, Szymanski et al., suggest that affect may be both an antecedent to and
an outcome of satisfaction. Emotions elicited during consumption are proposed to leave affective traces in
memory that are available for consumers to access and integrate into their satisfaction assessments.[148]
A 2011 meta-analysis[149] illustrates how both repurchase intent and loyalty enjoy a strong positive
relationship (0.54) with customer satisfaction. Another [150] meta-analysis finds that "The results indicate that
both cognitive-related variables (including brand awareness, brand personality, and brand identity) and hedonic-
related variables (including hedonic attitude, entertainment, and aesthetic appeal) have significant impacts on
quality and value perceptions towards the brand (including perceived quality, reputation, brand image,
perceived value, commitment, and trust). In addition, these variables are all significant predictors of brand
loyalty."
A third [151] meta-analysis, from 2013 elaborates on the concept of brand personality (bp): "First, the key
drivers of BP are communication with hedonic benefit claims, branding activities, a brand’s country-of-origin,
and consumer personalities. Second, the study finds that the effects of BP are stronger for mature brands than
for brands in the early life cycle stages. Third, sincerity and competence have the strongest influence on brand
success variables (e.g., brand attitude, image, commitment, purchase intention), while excitement and
ruggedness have the weakest influence on brand attitude and brand commitment."
Advertising[edit]
Emotion can play an important role in advertising. In advertising, two different approaches to persuasion are
common: (a) thinking ads that require cognitive processing (also known as the central route to persuasion) and,
(b) feeling ads that are processed at an emotional level (also known as the peripheral route).[152] Advertisers
can bypass cognitive, rational processing which can lead to counter-arguing by simply appealing to the
emotions. Neuro-imaging studies suggest that when evaluating brands, consumers primarily use emotions
(personal feelings and experiences) rather than information (brand attributes, features, and facts).[153]
It is relatively widely accepted that emotional responses require fewer processing resources (i.e. are easier) and
also result in more enduring associations with the brand being advertised.[154] Feelings elicited by the
advertising message can shape attitudes towards the brand and to the advertisement.[155]
Customer loyalty[edit]
See also: Loyalty marketing, customer retention, brand loyalty, loyalty program, and customer loyalty program
Customer loyalty, defined as “the relationship between an individual's relative attitude and repeat patronage"
(Dick and Basu, 1994: p. 99). Thus, by definition, loyalty has both an attitudinal component and a behavioural
component. Dick and Basu proposed four types of loyalty based on relative attitude and patronage behaviour:
[156]
Dick and Basu's Loyalty Matrix

No Loyalty
Characterised by low relative attitude and low repeat patronage behaviour. May occur when competing
brands are seen as similar or in the case of new brands (or categories) where insufficient time has elapsed for
loyalty to become established.
Spurious Loyalty
Characterised by low relative attitude and high repeat patronage. Spurious loyalty occurs when the consumer
undertakes repeat purchasing due to situational factors such as access, convenience. or shelf placement.
Spurious loyalty can also occur when there are no genuine alternatives or the consumer is ‘locked-in’ to
purchasing a given brand due to some quasi-contractual arrangement or membership status which creates
difficulties for switching. In other words, where switching costs are relatively high, high patronage
behaviour may be observed despite the absence of a favourable attitude towards the brand. An example
would be a consumer who always purchases petrol from the same outlet on the way to work because there
are no other outlets in the vicinity.
Latent Loyalty
Characterised by high relative attitude and low repeat patronage. Latent loyalty occurs when situational
factors over-ride strong favourable attitudes. For example, a person may have a preferred restaurant but may
not patronize it due to the preferences of dining companions.
Loyalty
(i.e. true loyalty) Characterised by favourable attitude and favourable patronage behaviour. For marketers,
true loyalty is the ideal situation.

Frequent flyer schemes are among the most well known of the reward programs.
Loyalty marketing programs are built on the insight that it costs 5-20 times more to acquire a new customer
than to retain an existing customer.[157] Marketers use a variety of loyalty programs to strengthen customer
attitudes towards the brand (or service provider/retailer) in order to retain customers, minimise customer
defections, and strengthen loyalty bonds with existing customers. Broadly there are two types of program:
reward and recognition programs. In a Reward Program, the customer accumulates points for each purchase,
and the points can subsequently be exchanged for goods or services.[158] Recognition Programs operate on a
quasi-membership basis where the consumer is issued with a card that upon presentation leads to various
entitlements such as free upgrades, special privileges, or access to products/services that are not normally
available to non- members, and that acknowledge the loyal customer's "VIP" status.[159] For example, a hotel
might recognise loyal patrons by providing a complimentary fruit bowl and bottle of champagne in the room on
arrival. Whereas reward programs are motivated by the consumer's desire for material possessions, recognition
programs are motivated by the consumer's need for esteem, recognition, and status. Many commercial loyalty
programs are hybrid schemes, combining elements of both reward and recognition. In addition, not all reward
programs are designed to encourage loyalty. Certain reward programs are designed to encourage other types of
positive customer behaviour such as the provision of referrals or providing positive word-of-mouth (WOM)
recommendations.[160]
Loyalty marketing can involve the use of databases and sophisticated software to analyse and profile customer
loyalty segments with a view to identifying the most desirable segments, setting goals for each segment, and
ultimately attempting to increase the size of the loyal customer base.
Customer citizenship behaviour[edit]
Customer citizenship behaviour refers to actions that are not part of the customer's normal behaviour, that are of
a voluntary or discretionary in nature and which are thoughtful, considerate, and helpful. Citizenship behaviour
often requires some type of sacrifice on the part of customers.[161] Service marketers are particularly interested
in citizenship behaviour because it harnesses the consumer's labour power and therefore increases
organisational efficiency. It also has the potential to improve service quality.
The services marketing literature identifies a number of distinct types of citizenship behaviour:[162]
Voice
When customers direct their complaint to the service provider in order to rectify and maintain the
relationship.
Display of Affiliation
When customers communicate with others their relationship with the organization e.g. provide word-of-
mouth referrals.
Policing
The observation of other customers to ensure their appropriate behaviour.
Flexibility
Customer willingness to adapt to situations beyond their control.
Service Improvement
Providing ideas and suggestions which may aid in the organization's improvement.
Positive Word-of-mouth Referral or Recommendation
Favourable communication regarding brand, product, an organization or a service.
Benevolent Act of Service
A willingness to help employees in performing service.
Internet consumer behaviour[edit]
Traditional models of consumer behaviour were developed by scholars such as Fishbein and Ajzen [163] and
Howard and Sheth [164] in the 1960s and 70s. More recently, Shun and Yunjie have argued that online
consumer behaviour is different to offline behaviour and as a consequence requires new theories or models.
[165] After Covid-19, online consumer behavior seems more essential, because since Covid-19 began, there
were about 31% more people started shopping online with 43% of all respondents compared to only 12% of
respondents before Covid-19.[166]
Research has identified two types of consumer value in purchasing, namely product value and shopping value.
Product value is likely to be similar for both online and offline shoppers. However, the shopping experience
will be substantially different for online shoppers. In an offline shopping environment, consumers derive
satisfaction from being within the physical store environment or retail landscape (hedonic motivations). In the
case of online purchasing, shoppers derive satisfaction from their ability to navigate a website and the
convenience of online searching which allows them to compare prices and 'shop around' with minimal time
commitment. Thus the online consumer is motivated by more utilitarian factors.[167]
Different types of online behaviour[edit]
Consumers may use online platforms for various stages of the purchase decision. Some consumers use online
sources simply to acquire information about planned purchases. Others use online platforms for making the
actual purchase. In other situations, consumers may also use online platforms to engage in post-purchase
behaviours, such as staying connected with a brand by joining a brand community. Or they may become a brand
advocate by posting a product review online, or providing brand referrals via social media. Some e-commerce
providers have encountered a challenge in courting consumers who seek information online, but still prefer to
turn to bricks and mortar retailers for their purchase. To understand the needs and habits of these and other
kinds of online shoppers, online marketers have segmented consumers into different kinds of online behaviour
in accordance with their online behavioural characteristics. Lewis and Lewis (1997) identified five market
segments based on the way that consumers use the Internet in the purchase decision process:[168]

1. "Directed Information-seekers" are users that primarily look for information about a product or service
online, but there is no guarantee that they may be converted into online buyers.
2. "Undirected Information-seekers" are newcomers to a product or service. They are more likely to interact
with online prompts, and click through to web pages linked in advertising.
3. "Directed Buyers" have a predetermined mindset and wish to purchase a specific product or service
online.
4. "Bargain Hunters" are price-sensitive users that like to discover products during sales promotions. For
these users, discounts are a major attraction to online sales conversion.
5. "Entertainment Seekers" are online consumers that are attracted to marketing delivered as a fun activity.
Interactive online games could be useful in attracting this kind of customer.
A typology of online consumer behaviour[edit]
Wendy Moe (2003)[169] argues that in the offline environment, consumers who are shopping in stores can be
easily classified by experienced sales employees only by watching their shopping behaviours. Such
classification may not appear online, but Moe and Fader[170] argued that it is feasible to predict practical
buying, surfing, and searching action online by investigating click patterns and repetition of visit within online
behaviour. In addition, a report of E-consultancy about "benchmarking of user experience" outlined three kinds
of online consuming behaviour as a valuable classification for the research of design of web pages to better
serve different kinds of consuming behaviour. The three categories are: "trackers", "hunters", and "explorers".

1. "Trackers" are the online consumers who are exactly looking for a product that they definitely wish to
buy. They use the Internet for the information about its price, delivery methods, post-purchase service,
and so on. Once they have found the proper information, little effort is needed to let them do the
business.
2. "Hunters" just know the categories of the product that they need, for instance, a novel for leisure time.
However, they haven't made specific decision on whose novel to buy. They use the Internet to find a list
 of product of their needed categories to make comparison. This kind of online consumer needs advice
and help to do their business.
3. "Explorers" don't even have the categories of product on their minds. In fact, they just want to buy
something online. There is more uncertainty of this type of online consumers.
Influence of the Internet on buying process[edit]
Table[171] Internet's impact on buying process hide

2 Aware of 6 Post-
4 Evaluate
Stage in product need 3 Supplier 5 purchase
1 Unaware and
Purchase evaluation
buying process develop search
select
specification and feedback
Position Lead
Assist Support use
Communications Generate features, generation Facilitate
purchase and
awareness purchase
objectives benefit and (from range of
decision retain business
brand customers)

Web site Personalised

Internet Banner Search Web site
content Web site web site
marketing advertising, engines, content
content content
(plus search
techniques PR, links intermediates intermediates
support) and interaction

As the preceding table shows, the first row indicates the process of a consumer buying a new product, while the
second and third row illustrates the positive influences the Internet could have on buying process by creating
effective communications with online consumers. For example, suppose a consumer carelessly see an
advertisement about laptops on Wechat, a popular Chinese social media developed by Tencent. He begins to
feel that his laptop is a bit out of date and want to buy a new one, which the outcome of good advertisement
placed on the daily Internet tool. He doesn't know anything about how to buy a new one as business change so
fast today, so he search on Google to find out the answer. On the result page, what he finds out is the
promotional ads which mainly come from JD.com and Taobao, RingToRed.Com two main Chinese competitors
of online retailer at this field. As always, he used to prefer JD.com, which provides comparison in detail on
brands, price, place and ways of payment and delivery. After careful selection, he makes his order through
payment of Wechat, which was placed inside of JD.com. JD.com has one of the fastest distribution channels
within China and it support excellent post-purchase service to maintain its position in the market.
The role of aesthetics and visual fluency in relation to consumer choice[edit]
Consumers decide whether or not they like a product within 90 seconds of viewing it for the first time.
[172] Therefore, having an aesthetically pleasing product is essential in the marketplace. Studies in processing
fluency and consumer behaviour have revealed that “that people prefer visual displays that are easier to process
and understand.”[173] and “When a product matches the user’s associations with it it is perceived as more
attractive.”[173] Visually fluent products draw upon consumer's pre-existing associations with their design
elements, leading to a sense of familiarity and understanding with the product at hand. Visual cues such as
colour, composition, typography, and imagery are associated with the phenomenon of fluency.
Colour[edit]
See also: Color psychology
 No Name Brand is associated with economy and affordability. Because of yellow's associations with
cheapness, this brand's logo is processed fluently and easily by consumers.

Research in colour psychology has shown 62-90% of consumer product assessment is based on colour alone.
[172] Indeed, colours have been shown to be linked to consumer's perceptions on a product's quality, reliability,
and value. The colours blue and black are viewed as being more reliable, valuable, and expensive while yellow,
orange, and brown are associated with cheapness and low quality.[174] Therefore, a product intended to be
perceived as "high quality" with a predominately orange and brown palette would lack visual fluency and would
likely fail to elicit a positive response with consumers. However, this can be advantageous if the consumer is
already in the market for an item that is known to be inexpensive, in which case the use of yellow, orange, or
brown would be appropriate.
Composition[edit]
Composition is another visual tool that has the ability to affect information processing and influence in
consumer perceptions. Studies have shown that consumers in western countries will associate products that are
right aligned or placed on the right side of a display to be higher quality.[175] Humans also have a center bias,
which makes products that are centered or symmetrical in composition or display seem intrinsically more
pleasing.[175] Products that are centered in composition or have centered elements are perceived as being more
attractive, popular, and important than products that are left aligned or right aligned.[176] When an object is
centered compositionally, it easier for a viewer to interpret and understand. It becomes more “fluent” and is
therefore viewed as being more aesthetically pleasing.[177]
Imagery[edit]
Evidence has shown that pictorial imagery correlates to higher instances of consumer recall and recognition.
Pictorial imagery is also easier to process and gains consumer's attention faster.[178] There is significant
evidence that when consumers are presented with multiple choices, they will view objects more positively and
more aesthetically pleasing when surrounded by congruent imagery.[177] After repeated exposure, this familiar
imagery becomes incorporated into consumer's visual lexicon and they become “fluent” in it. Images with
higher levels of visual fluency perceived as being more familiar, likeable, and friendly and are therefore more
likely to be chosen by consumers.[179]
Typographic elements[edit]
Although studies have shown that of pictorial imagery is easier for consumers to process and understand,
[178] the choice of typography remains an indispensable element of product design. Handwritten and scripted
fonts are associated with individuality, femininity, and luxury while sans serif fonts embody energy, cleanliness,
and modernity.[180] Font size has also been shown to have a direct correlation on the emotional attributes
assigned to a product. One study has shown that larger type size and weight is perceived as more intimidating
and authoritative.[181] Although imagery reigns supreme in product design, it is important to note that type is
processed just as easily as pictorial information when the consumer is already familiar with the product.
Environmental impact[edit]
Consumer behavior in certain ways affects how much material is used to produce goods, how much material
is recycled or composted, how much ends up as pollution, how much ends up in landfills, where goods are
produced, how far they travel, and the carbon footprint of manufacturing, transportation, and disposal. Green
marketing targets consumers who take the environmental impact of their purchases into account. One 2017
study found no impact of green marketing on consumer behavior in Bangladesh.[citation needed] The study
suggests policies be made that decrease the cost of eco-friendly products. It also encourages the implementation
of programs which raise consumer awareness regarding the issue of green consumption.
There are psychological factors which contribute to a consumer's perception surrounding their personal
contributions to climate change inducing actions. One of the more well studied biases is referred to as the
"better-than-average", or self-enhancing bias.[182] This bias depicts an individual's tendency to perceive that
their actions are superior, especially when compared to peers or demographically similar consumers. It has been
found that this cognitive bias is indeed present when considering how consumers perceive their pro-
environmental efforts.[182] This may be a result of information about climate change leading to feelings of
guilt and concern, which activates an unconscious thought process (denial, the better-than-average effect, and
other cognitive reactions) that leads to a reduced perception of the threat of climate change. It is a
mental defense mechanism that ultimately leads to a reduction in perceived individual responsibility to take part
in green behaviors and one-planet-living.[182]

Research methods used[edit]

See also: Advertising research
To gain insights into consumer behaviour, researchers uses the standard battery of market research methods
such as surveys, depth interviews, and focus groups. Increasingly, researchers are turning to newer
methodologies and technologies in an effort to seek deeper understandings of why consumers behave in certain
ways. These newer methods include ethnographic research (also known as participant observation)
and neuroscience as well as experimental lab designs. In addition, researchers often turn to separate disciplines
for insights with potential to inform the study of consumer behaviour. For instance, behavioural economics is
adding new insights into certain aspects of consumer behaviour.
Ethnographic research[edit]

Product usage studies are used to improve packaging design.

Ethnographic research or ethnography has its origins in anthropology. However, marketers use ethnographic
research to study the consumer in terms of cultural trends, lifestyle factors, attitudes and the way that social
context influences product selection, consumption, and usage. Ethnographic research, also called participant
observation, attempts to study consumer behaviour in natural settings rather than in artificial environment such
as labs. Different types of ethnographic research are used in marketing including;[183]

 Observed product usage: observing regular product usage at home or work, to gain insights into how
products are opened, prepared, consumed, stored, disposed etc. to gain insights into the usefulness of
packaging, labelling and general usage
 Day-in-the-life studies: extended visits during product usage situations to gain insights into norms and
consumer expectations
 Accompanied purchase or shop-alongs: researcher accompanies a shopper on a purchase expedition to gain
insights into consumer responses to merchandising and other sales tactics
 Cultural studies: similar to traditional ethnography; extended stays with a group or tribe with a view to
uncovering the fundamental rules and conventions that govern behaviour
 Guerilla ethnography: random observations in public settings to help establish research questions or to gain
quick insights into specific behaviours
 Mystery shopping: observations in the retail context with a view to gaining insights into the customer's
service experience
 Multiple methodologies: combining ethnographic research methods with conventional research techniques
with a view to triangulating results
Trendspotters such as Faith Popcorn's BrainReserve make extensive use of ethnographic research to spot
emergent trends.[184]
Consumer neuroscience[edit]

Neuromarketing uses sophisticated biometric sensors such as EEG to study consumer responses to specific
stimuli.

Consumer neuroscience (also known as neuromarketing) refers to the commercial use of neuroscience when

applied to the investigation of marketing problems and consumer research. Some researchers have argued that
the term consumer neuroscience is preferred over neuromarketing or other alternatives.[185][186]
Consumer neuroscience employs sophisticated bio-metric sensors, such as electroencephalography (EEG),
functional magnetic resonance imaging (fMRI) and eye tracking,[187] to study the ways that consumers
respond to specific stimuli such as product displays, brands, packaging information, or other marketing signals.
Such tests reveal stimuli that trigger the brain's pleasure centre.
Consumer neuroscience has become a mainstream component of consumer research methods. International
market research company Nielsen Research has recently added neuromarketing to its services by acquiring
Innerscope, a company specialising in neuromarketing research thus enabling Nielsen to add neuromarketing
research to the suite of services available to clients.[188]
Consumer neuroscience research has led to some surprising findings:
Framing price or value
For example, one study reported on a magazine subscription where potential subscribers were offered two
options: an online subscription for $59, or a combined online and print for $129 a year. Most people chose
the online only option. However, when a third option was introduced: print only for $129 (i.e. the decoy),
the online and print option seemed like better value and a significant number of people switched to that
option. In other words, the decoy price assists in framing value.[189] Marketers use a variety of methods
to frame value: e.g. quote monthly payment options rather than a single all-inclusive price.
Choice fatigue
Research by Sheena Iyengar experimented with the number of gourmet jams on display. When consumers
were faced with a large number of alternatives (24 jams), 60% of consumers stopped and looked but only a
few (3%) actually made a purchase. However, when consumers faced with fewer brands (6 jams), were
more likely to make a purchase with 30% going on to buy something. Similar results have been observed in
other categories. The findings suggest that while consumers appreciate being given some choice, the process
of making a selection is painful and can lead to choice fatigue.[190] An issue for marketers and retailers is to
determine the ‘sweet spot’ where consumers are given sufficient choice to satisfy their desire for variety, but
not become overwhelmed by it.
Decision paralysis
One study examined the wording used to solicit philanthropic donations. Consumers were exposed to
variants in the advertising copy execution: "Would you be willing to help by giving a donation?" and
"Would you be willing to help by giving a donation? Every penny will help." Those given the second option
were almost twice as likely to donate. The researchers concluded that people are more likely to take action
when given parameters. By clarifying that “even a penny” could make a difference, the second line provides
guidance and makes the request more achievable.[191] For marketers, the implication is that when asking
consumers to take an action, specifying a small step helps to break through the action paralysis. This finding
also suggests that even small differences in advertising copy can lead to improved outcomes. Action
instructions will make the advertisement more purposeful.

Tata Motors

Tata Motors Ltd

Formerly Tata Engineering and Locomotive Company Ltd.

(TELCO)
Type Public

Traded as BSE: 500570

NSE: TATAMOTORS

NYSE: TTM

NSE NIFTY 50 Constituent

ISIN IN9155A01020

Industry Automotive

Founded 1945; 77 years ago

Founder Jehangir Ratanji Dadabhoy Tata

Headquarters Mumbai, Maharashtra, India[1]

Area served Worldwide

Key people Natarajan Chandrasekaran (Chairman)

Martin Uhlarik (CDO)

Products Automobiles

Luxury vehicles

Commercial vehicles

Automotive parts

Pickup trucks

SUVs

 1.1 Million (approx) (2021)

Production output

Services Automotive finance

Vehicle leasing

Vehicle service

 ₹281,507 crore (US$35 billion) (2022)[2]

Revenue

 ₹−7,003 crore (US$−880 million) (2022)[2]

Operating income

 ₹−11,234 crore (US$−1.4 billion) (2022)[2]

Net income

 ₹330,619 crore (US$41 billion) (2022)[3]

Total assets

 ₹44,554 crore (US$5.6 billion) (2022)[3]

Total equity

Number of employees 78,906 (2021)[2]

Parent Tata Group

 Divisions Tata Motors Cars

Subsidiaries Tata Daewoo

Jaguar Land Rover

Tata Technologies

Tata Hispano

Tata Hitachi Construction Machinery

Tata Passenger Electric Mobility

Website www.tatamotors.com

Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered

in Mumbai, India, which is part of the Tata Group. The company produces passenger
cars, trucks, vans, coaches, buses.
Formerly known as Tata Engineering and Locomotive Company (TELCO), the company was founded in 1945
as a manufacturer of locomotives. The company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered the passenger vehicle market
in 1988 with the launch of the TataMobile followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous automobile.In 1998, Tata
launched the first fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's most affordable car. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial
Vehicles Company in 2004. Tata Motors has been the parent company of Jaguar Land Rover since the company
established it for the acquisition of Jaguar Cars and Land Rover from Ford in 2008.
Tata Motors' principal subsidiaries include British premium car maker Jaguar Land Rover (the maker of Jaguar
and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a
construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a
joint venture with Stellantis which manufactures automotive components and Fiat Chrysler and Tata branded
vehicles. On 12 October 2021, private equity firm TPG invested $1 billion in Tata Motors' electric vehicle
subsidiary.
Tata Motors has auto manufacturing and vehicle plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad,
and Pune in India, as well as in Argentina, South Africa, the United Kingdom, and Thailand. It has research and
development centres in Pune, Jamshedpur, Lucknow, Dharwad, India and South Korea, the United Kingdom,
and Spain. Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The company is
ranked 265th on the Fortune Global 500 list of the world's biggest corporations as of 2019.
On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company Tata Group. Tata
Motors increased its UV market share to over 8% in FY2019.

History
Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group entered the commercial vehicle
sector in 1954 after forming a joint venture with Daimler-Benz of Germany. After years of dominating
the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching
the Tata Sierra, a sport utility vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata
Estate (1992; a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV)
and the Tata Safari (1998).

Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-made to suit Indian consumer
needs though styled by I.D.E.A, Italy. Although initially criticized by auto analysts, its excellent fuel economy,
powerful engine, and aggressive marketing strategy made it one of the best-selling cars in the history of the
Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the
previous version and quickly became a mass favorite. Tata Motors also successfully exported large numbers of
car to South Africa. The success of the Indica played a key role in the growth of Tata Motors.
In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo Commercial
Vehicles Company, later renamed Tata Daewoo.
On 27 September 2004, Ratan Tata, the Chairman of Tata Motors, rang the opening bell at the New York Stock
Exchange to mark the listing of Tata Motors.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano
Carrocera.[12] Tata Motors continued its market area expansion through the introduction of new products such as
buses (Starbus and Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly
developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to manufacture
fully built buses and coaches.

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of the Jaguar and Land
Rover from Ford Motor Company.
In April 2022, Tata AVINYA Concept:A NEW PARADIGM OF INNOVATION;
Tata acquired full ownership of Hispano Carrocera in 2009.
In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix for €1.85
million. The acquisition formed part of the company's plan to enhance its styling and design capabilities.
In 2012, Tata Motors announced it would invest around ₹6 billion in the development of Futuristic Infantry
Combat Vehicles in collaboration with DRDO.
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run on compressed air
(engines designed by the French company MDI) and dubbed "Mini CAT".
In 2014, Tata Motors introduced the first Truck Racing championship in India "T1 Prima Truck Racing
Championship".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the 22nd floor to the
fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend a meeting of Tata Motors Thailand.
On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador at New Delhi, to
promote and endorse passenger vehicles globally.
On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as brand ambassador for
its commercial vehicles range.
On 8 March 2017, Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.

On 3 May 2018, Tata Motors announced that it sold its aerospace and defence business to another Tata Group
Entity, Tata Advanced Systems, to unlock their full potential.
On 29 April 2019, Tata Motors announced a partnership with Nirma University in Ahmedabad to provide
a B.Tech. degree programme for employees of its Sanand plant.
On 24 March 2020, Tata Motors Ltd announced that it would spin off its passenger vehicles arm as a separate
unit within the company.
On 5 March 2021, Tata Motors' shareholders approved hiving off its passenger vehicles business into a separate
entity.
In August 2021, as a complimentary reward for Indian Olympians who finished close fourth in Tokyo
Olympics 2021 and missed the place for Bronze, the company planned to recognize the efforts by gifting an
Altroz hatchback.
On 23 August 2021 Tata Motors announced it will launch its mini SUV Punch in the ongoing festive season.
On 30 May 2022 Tata Motors announced that it has signed an agreement to acquire a Ford India manufacturing
plant in Sanand, Gujarat. Tata Motors agreed to pay 7.26bn rupees ($91.5m) for the manufacturing plant.

Operations
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain, and
South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern Europe.
Tata Motors Cars
Main article: Tata Motors Cars
Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata Motors marque.
Tata Motors is among the top four passenger vehicle brands in India with products in the compact, midsize car,
and utility vehicle segments. The company's manufacturing base in India is spread
across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand),
Dharwad (Karnataka) and Sanand (Gujarat). Tata's dealership, sales, service, and spare parts network comprise
over 3,500 touchpoints. Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and
four Union Territories of India. It has the third-largest sales and service network after Maruti
Suzuki and Hyundai.
Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, and
Senegal. Tata has dealerships in 26 countries across 4 continents. Tata is present in many countries, it has
managed to create a large consumer base in the Indian subcontinent, namely India, Bangladesh, Bhutan, Sri
Lanka and Nepal. Tata is also present in Italy, Spain, Poland,Romania, Turkey, Chile,South Africa, Oman,
Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Iraq, Syria and Australia.
Tata Daewoo
Main article: Tata Daewoo
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly Daewoo Commercial
Vehicle Company) is a commercial vehicle manufacturer headquartered in Gunsan, Jeollabuk-do South Korea,
and a wholly owned subsidiary of Tata Motors. It is the second-largest heavy commercial vehicle manufacturer
in South Korea and was acquired by Tata Motors in 2004. The principal reasons behind the acquisition were to
reduce Tata's dependence on the Indian commercial vehicle market (which was responsible for around 94% of
its sales in the MHCV segment and around 84% in the light commercial vehicle segment) and expand its
product portfolio by leveraging on Daewoo's strengths in the heavy-tonnage sector.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses
including GloBus and StarBus. In 2012, Tata began developing a new line to manufacture competitive and fuel-
efficient commercial vehicles to face the competition posed by the entry of international brands such as
Mercedes-Benz, Volvo, and Navistar into the Indian market.

Tata Hispano
Main article: Tata Hispano
Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza, Aragon, Spain, and
a wholly owned subsidiary of Tata Motors. Tata Hispano has plants in Zaragoza, Spain, and Casablanca,
Morocco. Tata Motors first acquired a 21% stake in Hispano Carrocera SA in 2005,[12] and purchased the
remaining 79% for an undisclosed sum in 2009, making it a fully owned subsidiary, subsequently renamed Tata
Hispano. In 2013, Tata Hispano ceased production at its Zaragoza plant.
Jaguar Land Rover

Main article: Jaguar Land Rover

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry, United Kingdom,
and has been a wholly owned subsidiary of Tata Motors since June 2008, when it was acquired from Ford
Motor Company of USA.[51] Its principal activity is the development, manufacture and sale of Jaguar luxury and
sports cars and Land Rover premium four-wheel-drive vehicles.
Jaguar Land Rover has two design centres and three assembly plants in the United Kingdom. Under Tata
ownership, Jaguar Land Rover has launched new vehicles including the Range Rover Evoque, Jaguar F-Type,
the Jaguar XE, the Jaguar XJ (X351), the second-generation Range Rover Sport, and Jaguar XF, the fourth-
generation Land Rover Discovery, Range Rover Velar and the Range Rover (L405).

JD Power, of the US, rates Land Rover and Jaguar as the two worst brands for initial quality. [52] The Jaguar F-
Pace made Consumer Reports February 2019 list of the 10 Least Reliable Cars. The editors cited "electronics,
drive system, power equipment, noises and leaks" as problematic aspects.
The Jaguar Land Rover subsidiary was struggling by 2019 and Tata Motors wrote down its investment in JLR
by $3.9 billion. Much of the financial problem was due to a 50% drop in sales in China during 2019, although
the situation was improving. Still, Tata was open to considering a partnership with another company according
to a statement in mid-October, as long as the partnership agreement would allow Tata to maintain control of the
business. The company ruled out the possibility of a sale of JLR to another entity.
TML Drivelines
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of gearboxes and
axles for heavy and medium commercial vehicles. It has production facilities at Jamshedpur and Lucknow.
TML Forge division is also a recent acquisition of TML Drivelines. TML Drivelines was formed through the
merger of HV Transmission and HV Axles .
Tata Technologies
Tata Technologies Limited (TTL) is a 43%-owned subsidiary of Tata Motors which provides design,
engineering, and business process outsourcing services to the automotive industry. It is headquartered in Pune's
Hinjewadi business district and also has operations in London, Detroit and Thailand. Its clients include
Ford, General Motors, Honda, and Toyota.
The British engineering and design services company Incat International, which specialises in engineering and
design services and product lifecycle management in the automotive, aerospace, and engineering sectors, is a
wholly owned subsidiary of TTL. It was acquired by TTL in August 2005 for ₹4 billion.
In 2017, TAL, a subsidiary of Tata Motors, manufactured India's first industrial articulated robot for micro,
small, and medium enterprises.
European Technical Centre
The Tata Motors European Technical Centre (TMETC) is an automotive design, engineering, and research
company based at Warwick Manufacturing Group (WMG) on the campus of the University of Warwick in
England. It was established in 2005 and is a wholly owned subsidiary of Tata Motors. It was the joint developer
of the World Truck.
In September 2013, it was announced that a new National Automotive Innovation Campus would be built at
WMG at Warwick's main campus at a cost of £100 million. The initiative will be a partnership between Tata
Motors, the university, and Jaguar Land Rover, with £30 million in funding coming from Tata Motors.

Joint ventures
Tata Marcopolo
Main article: Tata Marcopolo

Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%) and the Brazil-
based Marcopolo S.A. (49%). The joint venture manufactures and assembles fully built buses and coaches
targeted at developing mass rapid transportation systems. It uses technology and expertise in chassis and
aggregates from Tata Motors, and know-how in processes and systems for bodybuilding and bus body design
from Marcopolo. Tata Marcopolo has launched a low-floor city bus which is widely used by transport
corporations in many Indian cities. Its manufacturing facility is based in Dharwad, Karnataka State, India
and Lucknow, India.
Tata Motors is expected to buy the 49% stake held by its partner Marcopolo in the bus-making joint venture for
₹100 crore by February 2021. The subsidiary will continue with the ‘Marcopolo’ trademark for a minimum of
three years with a non-compete provision in India for a corresponding period.
Fiat-Tata
Fiat-Tata is an India-based joint venture between Tata and Stellantis' Fiat which produces Fiat and Tata branded
passenger cars, as well as engines and transmissions. Tata Motors has gained access to Fiat's diesel
engine and transmission technology through the joint venture.[61]
The two companies formerly also had a distribution joint venture through which Fiat products were sold in
India through joint Tata-Fiat dealerships. This distribution arrangement was ended in March 2013; Fiats have
since been distributed in India by Fiat Automobiles India Limited, a wholly owned subsidiary of Fiat.[62][63]
Tata Hitachi Construction Machinery
Main article: Tata Hitachi Construction Machinery
Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which manufactures
excavators and other construction equipment. It was previously known as Telcon Construction Solutions.
Tata Motors European Technical Centre
The TATA Motors European Technical Centre is an automotive design, engineering, and research
company. Company based at Warwick Manufacturing Group (WMG) on the campus of the University of
Warwick in the United Kingdom.It was established in 2005 and is wholly owned subsidiary of Tata Motors. It
was the joint developer of the World Truck. In September 2013 it was announced that a new National
Automotive Innovative Campus would be built at WMG at Warwick's main campus at a cost of 92 million
pounds. The initiative will be a partnership between Tata Motors, the university, and Jaguar Land Rover, with the 30 million pounds in funding coming from Tata Motors.
Hyundai-Tata
Tata Motors and Hyundai are in a joint venture to provide the transmission for Tata Harrier model.

Products
For details of Land Rover and Jaguar products, see Jaguar Land Rover.
Passenger vehicles[edit]
Main article: Tata Motors Cars § Products
Current Models[edit]

 Tata Tiago (2015–present)
 Tata Tigor (2016–present)
 Tata Nexon (2017–present)
 Tata Harrier (2018–present)
 Tata Altroz (2020–present)
 Tata Nexon EV (2020–present)
 Tata Safari (2021–present)
 Tata Tigor EV (2021–present)
 Tata Punch (2021–present)
 Tata Tiago EV (2022–present)
Commercial vehicles[edit]

 Tata Ace

o Tata Ace Zip

o Tata Ace EV

 Tata Super Ace

 Tata Intra
1499cc disel engine
 Tata Xenon XT
 Tata Yodha
 Tata Ace Mega
 Tata TL/Telcoline/207 Pick-up truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin + steel body chassis)
 Tata 809 Ex and Ex2
 Tata 909 Ex and Ex2
 Tata 1210 SE and SFC (Semi Forward)
 Tata 1210 LP (Long Plate)
 Tata 1109 (Intermediate truck/ LCV bus)
 Tata 1512c (Medium bus chassis)
 Tata 1515c/1615 (Medium bus chassis)
 Tata 1612c/1616c/1618c (Heavy bus chassis)
 Tata 1618 (Semilow-floor bus chassis)
 Tata 1623 (Rear-engined low-floor bus chassis)
 Tata 1518C (Medium truck) 10 ton
 Tata 1613/1615c (Medium truck)
 Tata 1616/1618c (Heavy duty truck)
 Tata 2515c/2516c/2518c (Heavy duty 10-wheeler truck)
 Tata Starbus (Branded buses for city, intercity, school bus, and standard passenger transportation)
 Tata Divo (Hispano Divo)
 Tata CityRide (12- to 20-seater buses for intracity use)
 Tata 3015 (Heavy truck)
 Tata 3118 (Heavy truck) (8×2)
 Tata 3516 (Heavy truck)
 Tata 4018 (Heavy truck)
 Tata 4923 (Ultraheavy truck) (6×4)
 Tata Novus
 Tata Prima
 Tata SIGNA series
 Tata Ultra series (ICV Segment)
 Tata Winger - (Maxivan)
Military vehicles
Tata Nexon EV Max electric SUV receives a price hike, gets dearer by Rs 60,000 - Details here.
Electric vehicles
Tata Motors has unveiled electric versions of the Tata Indica passenger car powered by TM4 electric motors
and inverters,[67] as well as the Tata Ace commercial vehicle, both of which run on lithium batteries which
launched in 2022.
In 2008 Tata Motors' UK subsidiary, Tata Motors European Technical Centre, bought a 50.3% holding
in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1.93 million, and planned
to launch the electric Indica hatchback in Europe the following year.[68][69][70] In September 2010, Tata Motors
presented four CNG–Electric Hybrid low-floored Starbuses to the Delhi Transport Corporation, to be used
during the 2010 Commonwealth Games. These were the first environmentally friendly buses to be used for
public transportation in India.
In December 2019, Tata Motors unveiled the Nexon EV, an SUV with a 30.2KWh lithium-ion battery and a
consistent range of 312 km on a single charge. It is also equipped with fast charging technology, which can
charge the vehicle from 0% - 80% in 60 minutes.With 525 units of Nexon EV sold in India last month, Tata
Nexon EV was the best-selling electric car in the month of April 2021 in India.
Tata Passenger Electric Mobility is a subsidiary which produces electric cars under the brand name Tata
Motors.
List of Tata electric vehicles:

 Tata Nexon EV
 Tata Tigor EV
 Tata Altroz EV
 Tata Tiago EV
 Tata Ace EV
Electric Vehicle Concepts

 Tata Curvv
 Tata Avinya

Notable vehicles
Tata Nano
Main article: Tata Nano

The Nano was launched in 2009 as a city car intended to appeal as an affordable alternative to the section of the
Indian populace that is primarily the owner of motorcycles and has not bought their first car. Initially priced at
₹100,000 (US$1,500), the vehicle attracted a lot of attention for its relatively low price. However, the Nano was
very poorly rated for safety[74][75] and in 2018, Cyrus Mistry, chairman of the Tata Group, called the Tata Nano a
failed project, with production ending in May 2018.[76]
Tata Ace
Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one-ton minitruck, was launched in May 2005. The
minitruck was a huge success in India with auto analysts claiming that Ace had changed the dynamics of the
light commercial vehicle (LCV) market in the country by creating a new market segment termed the
small commercial vehicle segment. Ace rapidly emerged as the first choice for transporters and single truck
owners for city and rural transport.
By October 2005, LCV sales of Tata Motors had grown by 36.6% to 28,537 units due to the rising demand for
Ace. The Ace was built with a load body produced by Autoline Industries.[77]
By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still a top seller for TML
with 500,000 units sold by June 2010.[78] In 2011, Tata Motors invested Rs 1000 crore in Dharwad Plant,
Karnataka, with the capacity of 90,000 units annually and launched two models of 0.5-T capacity as Tata Ace
Zip, Magic Iris.[79] Ace has also been exported to several Asian, European, South American, and African
countries and all-electric models are sold through Polaris Industries' Global Electric Motorcars division. In Sri
Lanka, it is sold through Diesel & Motor Engineering (DIMO) PLC under the name of DIMO Batta.
Tata Prima
Main article: Tata Prima
Tata Prima is a range of heavy trucks first introduced in 2008 as the company's 'global' truck. Tata Prima was
the winner of the 'Commercial Vehicle of the Year' at the Apollo Commercial Vehicles Awards, 2010 and 2012.
Tata 407
Main article: Tata 407
The Tata 407 is a light commercial vehicle (LCV) that has sold over 500,000 units since its launch in 1986.[80] In
India, this vehicle dominates market share of the LCV category, accounting for close to 75% of LCV sales. The
407 model range includes trucks, tippers, pick-ups and vehicles for agri/food products, construction, light
mining and services.

Tata Harrier
Main article: Tata Harrier

Tata Harrier

Tata Harrier is a 5-seater SUV that rivals the MG Hector and Jeep Compass. This car uses the engine
from Fiat which is a 2.0 L-4 cylinder turbocharged diesel motor and transmission from Hyundai which is a 6-
speed, available in both manual and automatic. Tata Harrier is derived from the H5X Concept displayed at the
2018 Auto Expo. It was launched on 23 January 2019.
The car is a C-segment crossover SUV based on the OmegaArc platform, an essentially re-engineered version
of the Jaguar Land Rover D8 platform.[83] A petrol variant of the Harrier is confirmed to launch in 2022-23.
Tata Harrier is also available in Nepal with the name H5.
 Tata Nexon

Tata Nexon
Main article: Tata Nexon
The Tata Nexon is a subcompact crossover SUV produced by Tata Motors since 2017. It is the first crossover
SUV from Tata Motors, and occupies the sub-4 metre crossover SUV segment in India.[85] The electric version
of the Nexon was revealed on 19 December 2019. The Nexon EV uses components from Tata Motors' electric
vehicle technology brand Ziptron. The electric motor produces 94.7 kW (127 hp; 129 PS) and 245 N⋅m
(181 lbf⋅ft) of torque and 0 - 100 under 9.9 seconds. It has a 30.2 kWh battery with an ARAI rated range of up
to 312 km.
The battery can be fully charged in under 8 hours using a complimentary AC charger. It can also be charged
using a 15-ampere power cable that can be used at any place with the necessary power socket. DC 25 kW fast
charging can be used to charge the battery from 0 to 80% in 1 hour.