The Literature Review of Brand Equity and Consumer Buying Behaviour: 1980~2014

Abstract

This literature review presents an overview of the definition of brand, important roles of brand, followed by the characteristics of successful brands, consumer buying behavior and finally the models of consumer behavior. Brands are so important that they are regarded as the equity to a firm. Brand equity can be divided into four dimensions, including brand awareness, perceived quality, brand loyalty and brand associations. The study of consumer buying behaviour is of utmost importance in a number of aspects. First of all, consumer behaviour can influence the economic health of a nation. Second, through understanding the reasons for consumers to buy the products and their buying habits, the firms can make use of such information to devise corresponding marketing strategies in response to the consumers’ needs. Only by understanding the consumer purchasing behaviour can the products or brands be developed in a right way. Keywords-brand research; brand characteristics; consumer buying behaviour; consumer preferences; brand loyalty I. DEFINITION OF BRAND One definition for a brand has been offered in the Journal of Marketing Management by Professor Peter Doyle of Warwick University: “A name, symbol, design, or some combination which identifies the product of a particular organization as having a substantial, differentiated advantage” (O‟Malley, 1991). Another definition by Kapferer (2004) says that a brand is a set of mental associations, held by the customer, which add to the perceived value of a product or service. These associations should be unique (exclusive), strong (salient), and positive (desirable). To many, a brand suggests the best choice, while others see a brand as something the customer knows and will react to. Despite the formal definition, the purpose of branding is essentially to build the product‟s image (Cleary, 1981). This image will influence the perceived worth of the product and will increase the brand‟s value to the customer, leading to brand loyalty (The Economist, 2007). II. THE IMPORTANT ROLES OF BRAND Brand is a name in every consumer‟s mind (Mooij, 1998) and it is characterized by a noticeable name or symbol which can differentiate the goods and services from the rivals‟ (Aaker, 1991; Keller, 1998). In addition to a specific brand name, a brand is also composed of products, packaging, promotion, advertising, as well as its overall presentation (Murphy, 1998). From the consumers‟ perspective, brand is a guarantor of reliability and quality in consumer products (Roman et al., 2005). Added to this, consumers would like to buy and use brand-name products with a view to highlight their personality in different situational contexts (Aaker, 1999; Fennis and Pruyn, 2006). Nowadays, consumers have a wide range of choice to choose from when they enter a shop. It is found that consumers‟ emotions are one of the major determinants which affect their buying behaviour (Berry, 2000). According to a research conducted by Freeride Media LLC (1998) on shopping habits, nearly one-fourth of the respondents are likely to impulse-buy clothes and accessories. When deciding which products to purchase, consumers would have their preferences, which are developed in accordance with their perceptions towards the brand. Successful branding could make consumers aware of the presence of the brand and hence could increase the chance of buying the company‟s products and services (Doyle, 1999). III. THE CHARACTERISTICS OF SUCCESSFUL BRANDS A brand can be an everlasting and lucrative asset as long as it is maintained in a good manner that can continue satisfying consumers‟ needs (Batchelor, 1998; Murphy, 1998). Although successful brands can be totally different in nature, they share something in common, for instances well-priced products and consistent quality (Murphy, 1998). As mentioned by Levitt (1983), there are four elements for building a successful brand, namely tangible product, basic brand, augmented brand, potential brand. International Conference on Mechatronics, Electronic, Industrial and Control Engineering (MEIC 2014) © 2014. The authors Published by Atlantis Press 1577