This investigation is done to find out how brand image affects the consumer buying behaviour on clothing with a comparative study between India and U. K customers. “ Manufactured goods are something that is prepared in a factory; a brand is what that is purchased by a consumer. Merchandise can be imitated by an opponent; a brand is exceptional. Manufactured goods can be promptly out of date; a flourishing brand is eternal (Stephen King, WPP Group, London). Brand value has turn out to be one of the central parts of advertising area. Therefore, companies who comprehend the significance of brand value are capable to distinguish themselves in the markets. Furthermore, realizing how customers react to brands is supportive for companies to plan as well as build advertising activities. In this research both exploratory and performance monitoring research is applied. To attain general information on brand awareness and the concept of shopping centre and reading literature to increase knowledge about the subject, an exploratory research approach is utilized. A hermeneutic approach is used, since the purpose of the research is to recognize if the brand identity consents with the image that the customers have of the brand. The primary data comes from personal interviews with the students from both UK and India. These personal interviews are a good approach since the communication takes place under relaxed circumstances. The questionnaire comprises of both open ended and closed ended questions. Closed questions are selected so as to be able to measure the respondents’ attitudes and opened questions were used in order to attain a deeper understanding of the respondents’ actual perception and what they are based upon. The survey is carried out in two colleges: LSBF in UK and Stella Mary’s in Chennai, India
Chapter 1: Introduction
1. 1 The importance of brand image on fashion clothing
Clothing is a kind of need that aids to keep our bodies tepid. Individuals will not be able to survive with a safeguard from clothes in unfavorable circumstances and this denotes how essential clothing is for us. In this day and age, along with the fundamental tasks, clothes can also serve as style things, which can notify how important a human being is, states the position an individual possess and what their individual image is like (O’Cass, 2000). Therefore, clothing can help out symbolize our individual personality.
A clothes shopping is one of the well-liked activity between people from all ages, diverse genders as well as educational backgrounds. Due to the propagation of clothing brands segment, customers have to capture a grave thought during the purchasing procedures. Like stated by Jaworski and Rayport (2003), the buying procedure is split into three levels, i. e. pre-buying, buying and post-buying. All the levels are of equal significance that can change the consumer buying decision. Once customers make a buying decision, they may want to identify their individual requirements, read manufactured goods facts, make a decision on where and which to buy, choose whether to buy once more from the identical seller, deciding on the purchasing methods, exhibit contentment to the merchandise or amenities excellence and finally be truthful to the brand. These stress the difficulty of purchasing procedures along with the prospective influence a brand could enforce in the middle of them. A number of brands, under the impact of globalization and concentrated efforts from publicity by the media, have turned out to be well-liked not only in their country of origin, but as well in other markets with soaring prospective. Having a well-built and extraordinary brand image could facilitate to institute an individuality in market (Aaker, 1996),
1. 2 circumstantial data of India and the UK clothing markets
The apparel as well as textile business is one of the top sectors of the Indian market and the major source of overseas exchange incomes for India. This business reports for 4 % of the gross domestic product, (GDP) 20 % of manufacturing productivity, and fairly more than 30 % of export incomes. The apparel as well as textile business hires about 38 million people, making it the major basis of Indian business employment. The UK is a European country with a population of about 60 million. About its GDP development, because of its established financial arrangement, it is following a steady somewhat than destructive GDP growth rate. In totaling, the finance sector and business amenities are the most significant source of GDP (gross domestic products), putting in to almost 30% of the whole domestic goods (Economist. com, 2007).
1. 2. 1 Indian clothing markets
The population of India is 1 billion people, has a vast domestic marketplace. India’s middle class, presently expected at 200 million, is estimated to enlarge to comprise almost ½ the country’s total population by 2006. Based on the acquiring power equivalence, India is the fourth-largest market in the earth, has the third-largest GDP in the continent of Asia, and is the second-largest economy among the emerging nations. India is as well one of the quickest developing markets of the world. Even though the disposable income of the greater part of the Indian population is low, as the Indian economy develops, more customers will possess bigger optional income for clothing and other procurements after meeting their basic requirements.
Source: http://www. usitc. gov/publications/332/PUB3401. pdf
1. 2. 2 Indians expenditure habits
Expenditure habits are dissimilar for people belonging to different sections of society. For instance, people belonging to the middle-class regard basic requirements and education and expenses toward the future of their children as their top main concerns, followed by standard of living commodities. The rich class expends more on luxury merchandise and intercontinental brands. The super rich class expends on ultra luxury merchandise. It is seen that as disposable income increases, people have a preference more for branded goods, shift to processed foods, and the expenses on tobacco, beverages, food and transport and contact also rises.
Indians shopping habits of are shifting owing to their growing not reusable income, comparative increase in the younger population, and the change in approaches towards shopping. The stress has altered from cost contemplation to quality, trendiness and design. The yearning to look and feel good is also guiding aspect for consumers while making their buying choices. Rising disposable income is also driving demand for customer durables and dining in restaurants among Indians. Age is also a foremost aspect that influences the spending choices of an individual. For example, people in 20-24 years age group spend more on home appliances/ electronic and movies, whereas people in the 45-48 years age group spend more on holidaying.
Source: http://www. icmrindia. org/casestudies/catalogue/Business%20Reports/BREP047. htm
1. 2. 3 Characteristics of the Indian clothing
The textile industry of India is one the biggest and oldest segments in the country and amongst the most significant in the market in terms of productivity, venture and employment. The segment takes up nearly 35 million people and following agriculture, is the second-highest employer in the country. Its significance is emphasized by the fact that it reports for around 4% of GDP (Gross Domestic Product), 18% of employment, 14% of industrial production, and 9% of excise collections in the industrial segment, and 16% of the country’s total exports earnings. By means of direct connections to the countryside economy and the agriculture zone, it has been expected that one of each six households in the country relies on this segment, either indirectly or directly, for its source of revenue.
A vast pool of skilled and unskilled personnel, cheap labour, low import content, good export potential, and a strong raw material production base are some of the prominent aspects of the textile industry of India. This is a conventional, tough, unshakable industry, enjoying substantial demand in the domestic as well as international markets.
(Source: http://www. udel. edu/alex/chapt6. html)
1. 2. 4 UK clothing market
The UK is a European country with population of around 60 million. About its GDP growth, because of its established financial structure, it is following a steady rather than destructive GDP growth rate. In addition, the finance sector and business services are the most significant source of GDP (gross domestic products), contributing to almost 30% of the total domestic products (Economist. com, 2007). The production division, comprising the clothing industry, pales in comparison with the growth of the business segment and even has an indication of recession in the current decades. This can be exposed by the steady decline of hiring rate in the UK clothing business (Jones and Hayes, 2004).
1. 2. 5 British expenditure habits
Expenditure seems more welcome than saving amongst the British people. According to a study performed by Weekes (2004), only around 1/3 rd of female participants and less than half of the male participants convey that they have the saving habits. Amongst the participants, females are more expected to spend on clothes than males, with nearly half of female participants saying that they have no less than one store card and nearly two-thirds of them possess one or two loyalty cards. This might probably clarify why shopping is a gendered action (Dholakia, 1999; South and Spitze, 1994), and rarely, women might even shop for a man’s clothing (Dholakia, 1999).
Loyalty cards and Store cards are general advertising plans to implore customer’s faithfulness. Nevertheless, the same study denotes that store cards might not be frequently utilized although exceptional offers are frequently offered to the people who possess cards (Weekes, 2004). This may perhaps be clarified by the information that store cards sometimes have much advanced interest rates than that of the credit cards and personal loans (Mintel, 2002)
1. 2. 6 Characteristics of the UK clothing market
Similar to most of the developed financial system, the UK clothing industry has transferred its production segment to other countries with small labor costs and trained manual labor, leaving only the design centre with tractable designers. Such shift can possibly report for the important fall in employment rate and quantity of production in the clothing segment (Jones, 2003). Nevertheless, this is discovered to obstruct the expansion of British clothing design owing to be short of production amenities (Dagworthy, as cited in Carruthers, 2004).
as much as the UK fashion retail sector is apprehensive, there is a tendency for own brand growth, determined markets, tough aggressive activities, a polarized market, short-life-cycle goods, as well as variable customer demand (Marciniak and Bruce, 2004; Siddiqui et al., 2003). As stated by Moore (1995), fashion dealers have a tendency to generate product discrimination in which they can differentiate themselves from their prospective opponents in terms of manufactured goods features like design as well as cost. Even though the UK is besieged with style brands, the market is set apart by goods with small discrimination (Birtwhistle and Freathy, 1998; Moore, 1995). In addition, the selling segment is disjointed, creating of self-governing, Family- possessed businesses also some large scale chain stores, with the later one contributing to the biggest amount of market share (Easey, 2001; Marciniak and Bruce, 2004; Mintel, 2003). In contrast with other retailed segment, the fashion retailing segment is found to integrate the biggest number of native chains for example next plc (Marciniak and Bruce, 2004). Such fact has motivated the appearance of brand name expansion in the spirited UK clothing market.
1. 3 Research Questions
“ Manufactured goods are something that is prepared in a factory; a brand is something that is purchased by a consumer. Merchandise can be imitated by an opponent; a brand is exceptional. Manufactured goods can be promptly out of date; a flourishing brand is eternal (Stephen King, WPP Group, London). Brand value has turn out to be one of the central parts of advertising area. Therefore, companies who comprehend the significance of brand value are capable to distinguish themselves in the markets. Furthermore, realising how customers react to brands is supportive for companies to plan as well as build advertising activities.
Does brand image affect the consumer buying behaviour in the clothing sector?
1. 4 Aim
The aim of this dissertation is to investigate the effect of brand image on consumer purchasing behaviour in clothing, with the comparison between the Indian and British consumers. Having found out the relationship between brand image and consumer purchasing behaviour, marketers and practitioners could devise strategies to increase the sales revenues.
Objectives
- To analyze that brand image has an influence on the consumer buying behaviour of clothing
- To prove that there are differences in buying behaviour of clothing for consumers in India and the UK
- To prove that Brand image builds a connection and a tough bond that grows over time.
- To show that Brand image denotes the excellence of the merchandise, thus giving consumers the contentment of purchasing quality things.
- To prove that Branding helps in developing a customer commitment.
1. 5 Methodology
In common, there are two types of research methods that is qualitative and quantitative research. Each one of them includes a range of approaches, which are decided on the kinds of data being gathered. Qualitative semi-structured interviews have been selected as a mean to gather data because they are found to be more suitable for seeking replies in relation to approaches, views and feelings. In addition, the sampling method was enclosed. In the course of data compilation, the mixture of expediency and quota sampling was being employed. In addition, the agenda of interview was argued with an outlook to offering some common ideas about the underlying causes for enquiring such questions. The data composed would be studied using the methods of cross-case and within-case analysis.
1. 6 Theoretical framework
With a recognized brand name, customers would seem to be more liable to buy the goods in much advanced costs. As far as the similar level of manufactured goods quality is apprehensive, customers would have a preference for purchasing brand-name goods (Bello and Holbrook, 1995). This fact brings out the model of brand equity. According to Aaker (1991), brand equity is mostly obtained from four elements, namely brand loyalty, brand awareness, perceived brand equity plus brand associations. The theoretical framework implemented in this dissertation would be based on the theory of brand equity and the particulars of each element are to be discussed and analyzed later.
1. 7 Outline of the dissertation
The structure of the dissertation is shown as follows:
Chapter 1 is the introductory section, containing the background information of India and the UK clothing industry, the research objectives and the dissertation outline.
Chapter 2 will incorporate the review of previous studies, mainly concentrating on clothing industry and consumer buying behavior. It is believed that this chapter could provide readers with general information like theories and issues in relation to consumer buying behavior for clothes so as to make them more understandable in the forthcoming sections.
Chapter 3 delineates the research methodology, focusing on the description of research design and justification of data.
Chapter 4 is the core of the dissertation in which research findings are presented and discussed. Whether brand image would affect the consumer buying behavior in the clothing sector is shown and also the similarities and differences regarding the circumstances in India and the UK are investigated.
Chapter 5 would draw conclusions on the findings from the previous chapters. Implications towards the business environment and research limitations are also included. Recommendations would be made with regard to the limitations so as to provide further directions in the future studies
1. 8 SUMMARY
This chapter summarized the aims, objectives research questions and the summary of the following chapters. “ Manufactured goods are something that is prepared in a factory; a brand is something that is purchased by a consumer. Merchandise can be imitated by an opponent; a brand is exceptional. Manufactured goods can be promptly out of date; a flourishing brand is eternal (Stephen King, WPP Group, London). Brand value has turn out to be one of the central parts of advertising area. Therefore, companies who comprehend the significance of brand value are capable to distinguish themselves in the markets. Furthermore, realizing how customers react to brands is supportive for companies to plan as well as build advertising activities.
Chapter 2: Literature Review
2. 1 Introduction
Consumer behavior indicates to the behavior in which people obtain, use and organize goods as well as amenities (Blackwell et al., 2001). Due to the explosion of brands in the current years, there are a growing number of studies carried out in the area of consumer buying behavior. Nevertheless, a majority of them focus on a particular nation investigation, despite of the significance of cross-country evaluations which shall motivate inventive thoughts for accepting the fast- shifting customer practice. This research will examine the dissimilarities of British and Indians in purchasing clothes under the effect of brand image. In this chapter, the literatures relating to the functions of brand and brand equity are to be assessed so as to offer a theoretical framework for the abovementioned analysis.
Brand presents an essential function for differentiating merchandise and amenities from those of the competitors (Aaker, 1991; Murphy, 1998). The appearance of brand equity inspires the significance of brand in advertising policies and therefore offers helpful approaches for managers and more study (Keller, 2003).
(Ref: http://edissertations. nottingham. ac. uk/983/1/07MSClixkkt1. pdf)
2. 2 Definitions of brand by different Authors
According to the AMA (American Marketing Association) Board of Directors, Marketing is the action, set of organizations, and procedures for creating, interacting, delivering, and exchanging contributions that have worth for consumers, customers, associates, and society at large.(source: www. heidicohen. com)
Dr. Philip Kotler defines advertising as “ the art along with science of producing, delivering as well as exploring importance to satisfy the necessities of a target market at a gain. Marketing identifies unhappy desires and requirements. It explains events along with measures the size of the known marketplace as well as the revenue likely. It spots out which sector the company is capable of serving supreme and it designs and markets the suitable merchandise and amenities.”
(Source: www. kotlermarketing. com)
Marketing is a planned and strategic many-sided process that holds sales as well as consumer service and withholding. Marketing can also become a response loop involving an organization and its consumers and prospects that assists to notify and develop the business going forward. (Rebecca Lieb, 2009). Marketing comprehends your buyers actually well then creating precious goods, services, and facts particularly for them to facilitate resolve their difficulties. (David Meerman Scott 2010)
Marketing, when performed properly, is building such an astonishing experience around your brand or manufactured goods that individuals with no other association to it want to inform their friends about how astonishing it is, and the series starts again. (Peter Shankman 2010)
“ A brand is nothing but an appearance of the consumer’s trustworthiness and faith.” (Phil Dusenberry 2006)
“ In the public’s eye, a brand is a guarantee. It is a pledge that the service carrying that brand will survive up to its name, and execute.” (Harry Beckwith 1997)
“ Brand works in two ways: It works in the manner we characteristically think, as drawing buyers with the brand’s hidden promise of quality. But the brand also works at the stage of the second key pool of forecast: potential workers. Since you are more than your brand; you are the people who symbolize it, supervise it, and perform its promises and the more forceful your brand, the more effortlessly you can employ that outstanding talent you require to carry on to convey outstanding results.” (Harry Beckwith 2000)
“ Simply acknowledged, a brand is an identifiable place, person, or thing. Our job as marketers is to build brands that are separate and different from related products or services presented by competitors. It’s all about discrimination.” (Steve Cone 2011)
“ If you want to make a flourishing brand, you have to comprehend difference. You have to look for chances to build new groups by difference of existing groups. And after that you have to become the first brand in this rising new group.” (Al & Laura Ries, 2004)
“ A Killer Brand survives when an individual develops an inconsistent amount of achievement in its group for the reason that of a forceful and distinguished anticipation that comes to be connected with its name.” (Frank Lane 2007)
“ Brand refers to the set of aspects that occur in a consumer’s mind when that individual hears your name or views your logo.” (Bill Chiaravalle, 2006)
A brand is a term, name, symbol, plan or every additional aspect that recognizes one retailer’s merchandise or amenities as different from those of new retailers. (Dibb et al (1997) Bennett (1988))
2. 3 The significant roles of brand
Brand is a term in each customer’s intellect (Mooij, 1998) plus it is distinguished by a visible symbol or term which shall make a distinction between the services and products from the opponents’ (Aaker, 1991; Keller, 1998). In accumulation to a particular brand name, a brand is furthermore composed of goods, wrapping, advertising, endorsement, and also its general appearance (Murphy, 1998). From the customers’ point of view, brand is a sponsor of dependability as well as quality in customer goods (Roman et al., 2005). Further to this, customers would be fond of to purchase plus make use of brand-name goods with a vision to emphasize their individuality in unusual circumstances backgrounds (Aaker, 1999; Fennis and Pruyn, 2006).
These days, customers possess a broad variety of option to select from when they go into a mall. It is established that customers’ sentiments are one of the most important elements which have an effect on their purchasing behavior (Berry, 2000). According to a study performed by Free ride Media LLC (1998) on shopping practices, nearly 1/4th of the participants are to be expected to impulse -purchase accessories plus clothes. When choosing which goods to buy, customers have their favorites, which are urbanized in harmony with their insights in the direction of the brand. Victorious branding possibly will formulate customers’ conscious of the existence of the brand plus as a result could amplify the possibility of purchasing the company’s goods along with amenities (Doyle, 1999).
2. 4 The distinctiveness of victorious brands
A brand can be a never-ending and beneficial quality on condition that it is preserved in a good mode that can carry on fulfilling customers’ requirements (Batchelor, 1998; Murphy, 1998). Even though doing well brands can be completely dissimilar in environment, they share a bit in general, for example well-priced goods plus constant quality (Murphy, 1998).
As citied by Levitt (1983), there are four fundamentals for creating a victorious brand, namely augmented brand, tangible product, potential brand, and basic brand. Tangible product refers to the goods which meet up the essential requirements of the consumers. Basic brand, on the other hand, considers the wrapping of the tangible product in order to draw the notice from the prospective clientele. The brand can be extra increased with the provision of trustworthiness, effectual after-sales services and the same. Lastly plus most significantly, a prospective brand is recognized through stimulating consumer favorite and reliability. By doing so, the picture of the brand could be well inspired in the consumers’ brain.
(Ref: http://edissertations. nottingham. ac. uk/983/1/07MSClixkkt1. pdf)
The following are the several features adding to the victory of brands which are recognized;
A characteristic merchandise / amenity Experience
Acceptable skill is the most important element of brand values. If the feature of knowledge worsens, or if the brand is exceeded by better discounts from opponents, then its place shall be damaged.
initial -Mover benefit
Being foremost into the marketplace does not essentially fetch victory, but it creates the job effortless. It is very easy to confine a division of the customer’s mind and manufacture a customer base, when the brand has no opponents to equal its place.
exclusive spotting model
If the brand is not the leader, it should have an exclusive spotting model – a section plan, importance scheme or amplified brand, which will append the importance as well as differentiate it from opposition.
Tough interactions Programme
A victorious brand needs a successful retailing, promotional or advertising operation, which will commune the brand’s survival, its purpose along with emotional significance, activate test and strengthen promise to it. Exclusive of creating consciousness, understanding and intent to purchase the brand is insignificant.
instance and constancy
Customarily, brands were not manufactured swiftly. It frequently obtains years to increase the augmented values, and create a faithful association.
(Ref: http://www. scribd. com/doc/2631025/36/characteristics-of-successful-brands)
2. 5 The value of brands to customers
According to Jean-Noel Kapferer (1992), brands carry out quite a lot of roles that put in value as well as consumer advantages:
expediency: To accumulate moment as well as energy via indistinguishable re-buying and faithfulness
moral: contentment related to the dependable action of the brand in its association with society
assurance: To be certain of discovering the similar quality no issue where or when you purchase the manufactured goods or amenities
permanence: contentment brought about through acquaintance as well as closeness with the brand that you have been using for many decades
self-indulgent: contentment related to the charisma of the brand, to its symbol, to its interaction
Optimization: To be sure of buying the best product in the category, the best performer for a particular purpose
recognition: To be evidently seen, to formulate sense of the propose, to rapidly recognize required goods
Characterization: To have confirmation of your personality or the image that you show to others
2. 6 The significance Of Brands To Companies
Brands build worth for companies, in the subsequent methods:
Brand influence: The brand manager gains From two major influence results: Higher volume leads to economies of scale in development, production and marketing; Premium pricing increases revenue.
Brands, market share and profits: characteristically a brand manager acquires twice the market share of the brand which is in second position, and the brand which is in second position twice the share of the third position. The brand leader is the most profitable and all beyond number two are unprofitable
The importance of Niche Brands: controlling a niche market is generally extra advantageous than being fifth in a huge marketplace.
The Brand obstacle: Brand mangers generally have the economic power to fend off rivals. Prospective opponents are generally unwilling to penetrate the market if present brands please consumers. In accumulation, brand managers can expand their authority in the market.
Possibilities for development: The manufactured goods life cycle relates to goods, not brands. Companies can preserve a brand while altering the fundamental manufactured goods to report for new knowledge, trend or existing market circumstances. The brand can also be utilized to enter new marketplace.
Brand reliability and values: well-built brands are more eye-catching to sponsors. Brand reliability also diminishes advertising costs and makes sure companies to overrule irregular issues (e. g. Johnson & Johnson with Tylenol).
Encouraging shareholders: businesses with well-built brands magnetize good recruits. They also are inclined to bring out society as well as government support.
(Ref: http://www. scribd. com/doc/2631025/36/characteristics-of-successful-brands)
2. 7 Brand equity
The name ‘ brand equity’ denotes to organized qualities as well as accountabilities linked with a brand, consisting of its name as well as logo, which possibly will force advantageous or disadvantageous results on the values taking place from the goods or amenities (Aaker, 1991; Yasin et al., 2007). And Keller (1998) spots out that brand equity denotes the elite advertising results forced on the brand. Relating to the affirmative part of brand equity, it occurs when customers are eager to give more for the similar stage of excellence just for the reason that of the magnetism of the name connected to the manufactured goods (Bello and Holbrook, 1995).
Nonetheless, brand equity may possibly be damaged if it is not correctly handled. For example, underprivileged merchandise quality and consumer amenities can unfavorably influence the brand image, providing ascend to a decrease in retailing quantity. One of the typical instances concerning brand as a type of equity is the obligation of rules to shelter logical possessions (Murphy, 1998). In countries with entrenched officially permitted scheme, the importance of brands has been acknowledged to both the customers and manufacturers. In order to combat plagiarism, many countries have established rules to guard rights, trademarks, and plans in addition to copyright. In accumulation, brand is also deal able merchandise by means of quantifiable fiscal worth (Murphy, 1998). It is not rare to discover some recognizable brands scheduled on the stock markets in which they could be purchased or traded. Brands like Vodafone, Marks and Spencer, HSBC, Sainsbury and Tesco are all listed on the FTSE 100 index (London Stock Exchange, 2007). It is discovered that the instability of stock market could have an effect on customers’ buying mood, not to talk about the growth or turns down of retail sales (Blackwell, 2002). This is supported by the truth that brand equity relies on the number of people with usual acquisition (Aaker, 1996).
The aforementioned instances stress the standards of brand equity for both customers and the company. For the customers, brand equity can offer them with data about the brand which powers their self-assurance throughout the buying procedures. There is a soaring tendency for customers with high-quality insights to purchase from the similar shop again than those with poor insights. Past
