As proposed in the previous sections, brand credibility has three components, trustworthiness, expertise and attractiveness. Relationship marketing theory suggests that trust leads to affective commitment (Morgan and Hunt, 1994). If consumers believe that the company can deliver on its promise of service or product quality (i.e., high trustworthiness), they tend to have higher affective commitment, since trust in a company justiﬁes consumers ' positive feelings towards and reliance on the company (Erkmen and Hancer, 2015; Hunt et al., 2006). H3. Brand credibility positively affects consumers ' affective commitment.
Plummer (1985) found that brand image perceptions are formed whenever there is an indiret/direct contact with the brand. The consumer derives some intrinsic value from these associations. Aaker (1996) found the cognitive elements (ex product/ specification related characteristics) to be the primary precursors of brand personality. He also found that Brand Personality is a key component of Strong Brands (Aaker D. A., 1996) Research has also found that the functional/ utilitarian motivations could lead to emotional or affective reaction. This in turn may lead to the overall evaluation and thus lead to conative, behavior intention (e.g.
Within the brand equity model the trustworthiness as an important attribute in assets the strengths of a brand. Consumer confidence is defined as the trustworthiness of companies and enterprises to communicate, and the company would be interested in whether the behavior of consumers. Consumers placed their trust in the high value as one of the brand equity. Swait et al (1993) said that the consumer’s implicit valuation of a brand in the market with differentiated brands, which are relative to the market with no brand differentiation. Brand’s act is like a signal or cue, which shows the nature of product, service quality, reliability and also the image or
(Martínez, 2004) Suggests that only companies or organisations with high quality products can effectively implement umbrella branding to transfer the quality to new products launched by them. To ensure that limited information issues are overcome by the company and quality perceptions are transferred properly, the brand in question must already enjoy a positive image. According to (Lee, H., Lee, C. and Wu, C, 2011) positive attitudes that the consumers have developed on products they love can be a sign on quality for other products within that brand. An evaluation by (Sinapuelas, I. C. and Sisodiya, S. R., 2010) suggests that consumers are likely to have their uncertainty about trying or adopting new products reduced if they have experienced a mother brand previously, as this offers availability of information and also reduces their perceived risk about this new product.
2.2.3 Brand Loyalty High product sales can be explained in two different principles; the first concerned by many people buying the brand and the second concerned by that a few buying a lot. Ford (2005) referred the second principle to brand loyalty. A brand loyalty is a core factor in brand equity and should be taken in consideration when setting a value on a brand (Aaker, 1996). He continues saying that a highly loyal customer base is expected to bring in stabile sales and profit streams. When talking about loyal customer we can archive two important aspects – retain of customers and entry barrier.
He suggests comparing a product with a brand name to an unnamed product what can explain the consumer’s buying habits and preferences (Jara & Cliquet, 2008). Keller applies brand awareness and brand image as two major components of his model. Thus, brand awareness relates to brand spontaneous recognition in consumer’s mind, and brand image is defined as brand associations erased in consumer’s memory. In regards to brand associations, three categories emerge, namely, attributes, benefits, and brand attitudes. Attitudes correspond to descriptive characteristics of the product; benefits relate to the personal value attached to the product; and brand attitudes are used for customers’ evaluation of a product.
Branding nowadays is used to make over emotional attachment to help products as well as firms. Branding attempts build an emotion associated with involvement, a sense associated with good quality, as well as a feeling associated with intangible qualities that are around this brand name. Branding is much important it is the single most important factor for those companies investing their time and money to improve their branding strategy. The decision for considering brand awareness and brand image as important element is because nowadays we value brand positioning more important than physical product itself. Marketers play with consumers thoughts and register their brands in their mind.
Besides, it helps to build brand loyalty. Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become brand loyal. Cultivating brand loyalty among customers is the ultimate reward for successful marketers since these customers are far less likely to be enticed to switch to other brands compared to non-loyal customers. It also enables an organization to command a price premium. A strong brand will help an organization to differentiate the price from the rest and encourage their customers to pay for the intangible benefits they get from associating themselves with a brand that makes them appear cool fashionable, or clever.
Furthermore, Fan (2005) states that consumers’ purchasing decisions is not only influenced by the perception of product, service quality or price, but also based on how ethical the company has fulfilled responsibility in producing its products or services. When consumers know that the company trying to undertake social responsibility it may result in a positive brand image in their minds (Mart ́ınez et al., 2013). Moreover, Lynch and Chernatony (2004) argue that a brand related to emotional values is perceived more appealing and less likely replaced by competitor brands. In the study conducted by Chen and Bouvain (2005) find out that the company whether or not performs social responsibility has a great influence on its CSR Ranking and brand image, as customers are unwilling to buy products or services from companies which are taking part in socially or ethically irresponsible activities. Consequently, CSR as an emotional part of brand image plays a significant role in a firm’s sustainable competitive advantages, which lead to an increase in market share and
1 – Abstract A study on the Impact of advertisement on the purchase behaviour of customers, this study is carried out to understand the effectiveness of advertisement on the purchasing behaviour of customers. Advertising is a factor that is used for building, creating and sustaining brands. Advertisements shows a main role in persuading, informing and reminding both potential and existing consumers towards making a brand decision. Advertising is the non-personal communication of the information typically paid for and influential in nature about products, services or ideas by recognised sponsors through the numerous media. The advertiser aims to spread his ideas about the products and offerings between the prospects.