Factors That Influence Consumers Purchase Decision Marketing Essay

2.0 Introduction

In this chapter, this survey will reexamine the factors that influence consumer ‘s purchase determination of national trade name goods. For your information, a dramatic phenomenon in this modern concern environment is the magnitude and importance of trade names in the heads of consumers every bit good as investors both locally and internationally ( Pillay, 2007 ) . Harmonizing to Nilson ( 1998 ) , a valued trade name is declarative of trust and good will. Harmonizing to ( Kotler, 2008 ; Shiffman and Kanuk, 2004 ; Nilson, 1998 ; and Doyle, 2002 ) a good established and successful trade names have the alone ability to heighten stockholder wealth non merely by capturing new market portion but besides by retaining bing loyal clients. Therefore, successful trade names bring impact on an entity ‘s lucks in three ways which are developing a healthy market portion, keeping competitory monetary value degrees and guaranting steady hard currency flows. Apart from that, De Chernatony and McDonald ( 1998 ) define that “ a successful trade name is a recognizable merchandise, service, individual or topographic point, augmented in such a manner that the purchaser or user perceives as relevant, unique added values which match their demands more closely. Besides, it ‘s success consequences from being able to prolong these added values in the face of competition ”

2.1 Consumer goods

There are four types of trade name which are national trade name, shop trade name, licensed trade name and co-brand ( Kotler ) . Harmonizing to Erdem and Valenzuela ( 2006 ) , national trade names are trade name that is marketed by companies that are really big, reputable and have immense fiscal resources for illustration IBM and Gillette. Such companies are well-positioned to offer the full market place a individual trade name due to their well-established distribution systems, big market portion and comprehensive merchandise which they possesses ( Erdem and Valenzuela, 2006 ) .

Meanwhile, shop trade names are trade names where retail merchants are responsible non merely publicity, shelf arrangement and pricing but besides specifying the very nature of the merchandise ( Morton and Zettelmeyer, 2004 ) . The retail merchants besides need to make up one’s mind the exact placement of shop trade names in merchandise infinite which includes the size, form, colour, inscription, art of shop trade name ‘s packaging every bit good precise quality and gustatory sensation specifications ( Morton and Zettelmeyer, 2004 ) .

( Park et al. , 1996 ) defined that co-branding is the combination of two or more branded merchandises ( constitutional trade names ) to organize a typical merchandise. This scheme is popular for presenting new consumer merchandises ( Park et al. , 1996 ) . Some of the illustrations of co-branding merchandises include Betty Crocker Brownie Mix with Hershey ‘s cocoa flavorer, Kudo ‘s granola bars with Snicker ‘s pieces and Ford Explorer with Eddie Bauer inside. For your cognition, there are assortment of co-branding schemes exist such as joint publicities, joint advertisement, complementary usage of publicity and physical merchandise integrating. McDonald and Disney are company that involve in joint publicities, which is an effort by one or both trade names to protect corporate indorsement in order to do their market places get better ( Park et al. , 1996 ) . Following, Apple Company Macintosh Powerbook run having the film “ Mission Impossible ” is the illustration of joint advertisement technique ( Grossman, 1997 ) . Rao and Ruekert ( 1994 ) in the other manus proposed that Bacardi Rum and Coca-Cola has involved in publicity of complementary usage. Last, Rao and Ruekert ( 1994 ) besides stated that when one branded merchandise is inextricably linked with another merchandise, physical integrating is said to happen, for illustration Ruffles potato french friess and K.C. Masterpiece barbecue sauce flavorer.

Licensed trade name

2.1.1 National trade name goods

Harmonizing to Webster ( 2000 ) , national trade names are non limited to often buy consumer-packaged goods or household terminal users as markets. For your cognition, the value within national trade name goods is much more than the merchandise or service itself ( Webster, 2000 ) . The assortments of national trade name goods bring out lifestyle, feeling and experience to consumers ( Webster, 2000 ) for illustration Calvin Klein ( from denims to dishes and bed sheets ) , Starbucks ( from java to frost pick ) , Martha Stewart ( from Television and magazine to home trappingss ) , Ralph Lauren ( from vesture to spectacless and house pigment ) , Nine West ( from places to pocketbooks and accoutrements ) , Jack Daniels ( from Bourbon to apparels ) and Brooks Brothers ( from apparels to wine ) .

2.1.2 Purchase determination of national trade name goods

2.2 Factors act uponing purchase determination of national trade name goods

2.2.1 Feature

2.2.1.1 Quality

Harmonizing to ( Chueh and Kao, 2004 ; Villarejo-Ramos and Sa’nchez-Franco, 2005 ) , perceived quality refers to the consumer ‘s sentiment about a merchandise ‘s overall high quality or excellence. National trade names have high acquaintance among consumers ( d’Astous and Saint-Louis, 2005 ) and more adept in operational procedure efficiency, high engineering accomplishment and merchandise design ( Steiner, 2004 ) . Besides, national trade names are believed to be more capable in fabricating attention-getting merchandises and due to that the quality are seem to be superior ( Babakus et al. , 2004 ) . Kellogg, which is the universe ‘s prima manufacturer of cereal and taking manufacturer of convenience nutrients have built repute for consistent merchandise quality and invention in its scope of breakfast cereals ( Business Week, 2005:91 ) . As a consequence, Kellogg has achieved first-class trade name equity and international growing ( Business Week, 2005:91 ) . For your information, Kellogg ‘s trade name is deserving 8306 million US dollars ( Business Week, 2005:91 ) .

Research workers look intoing the relationship between perceived quality and trueness have showed a positive nexus. The sensed quality had an consequence on satisfaction which besides influences purchasing purposes harmonizing to the research carry out by Cronin and Taylor ( 1992 ) on a survey about the relationship between service quality, consumer satisfaction and buying purposes. Meanwhile, there is besides extra empirical grounds provided by Selnes ( 1993 ) and Fornell ( 1992 ) , showing the effects of public presentation quality on trueness mediated by satisfaction, while other surveies have probed the direct consequence of sensed quality on trueness. Following, attribute public presentation ( public presentation quality ) was besides found to hold a direct impact on buy backing purposes in a survey of the relationship between attribute-level public presentation, overall satisfaction and buy backing purposes, in add-on to its impact on satisfaction. Olivia et Al. ( 1992 ) and Boulding et Al. ( 1993 ) have found similar consequences on the direct nexus between quality and trueness excessively.

2.2.1.2 Lastingness

Harmonizing to Mowen and Minor ( 2001 ) , lastingness is the mean life span and overall construction of the merchandise. The lastingness of a merchandise is really of import when the consumer programs to utilize the merchandise for a certain period of clip ( Mowen and Minor, 2001 )

In a survey conducted by Keller et Al. ( 1998 ) , it was found that trade names that have over a period of clip taken ownership for a peculiar physical property, for illustration, strength and lastingness are immediately recognized by consumers for holding this peculiar characteristic nowadays in all of their merchandises. Life Long baggage trade name is an illustration of a trade name that has used lasting building as a alone characteristic of its merchandises ( Keller et al. ( 1998 ) .

& gt ; illustration

grounds

2.2.1.3 Design

2.2.2 Social Status

specify societal position

Based on the research done by Schiffman and Kanuk ( 2004 ) , societal category is a popular tool that is used for market cleavage and consumers can be placed into separate degree of classs based on their degree of income, instruction and business. In order to fulfill the demands of consumers in different societal categories, sellers frequently construction their merchandise portfolio ( Schiffman and Kanuk, 2004 ) . Not merely that, sellers of fast traveling consumer goods can besides market assortment of merchandises to provide for different classs of consumers ( Schiffman and Kanuk, 2004 ) . For illustration, an international investing banker who is entertaining high profile clients at place might prefer to buy expensive pasta that is hand-made and imported from Italy, while a individual female parent fixing dinner for her kids will be happy to settle for basic house trade name pasta that is much cheaper ( Schiffman and Kanuk, 2004 ) .

2.2.2.1 Education Level

Based on the research carry out by Caswell et Al. ( 1994 ) has indicated that consumer ‘s willingness to pay relies on socio-demographic factors such as income, instruction, demographic features and topographic point of abode.

2.2.2.2 Occupation degree

2.2.2.3 Income Level

2.2.2.4 Wealth

2.2.3 Brand Equity

Brand equity is defined as the value that a trade name is able to add to the merchandise it is meant to stand for harmonizing to Etzel et Al. ( 2001 ) and Shiffman and Kanuk ( 2004 ) . Over the last decennary, trade name equity has gain attending in the selling literature ( Wulf et al. , 2005 ) . Nowadays, Broniarczyk and Gershoff ( 2003 ) still emphasize the importance of trade name equity. Brand equity besides provides goodwill value in the face of uncertainness harmonizing to Shapiro ( 1982 ) . Apart from that, high equity trade names minimize the negative impact on consumer ‘s penchant of an unattractive gross revenues publicity ( Simonson et al. , 1994 ) and more likely to hold faith in enormous advertisement claims ( Goldberg and Hartwick, 1990 ) . Due to that, monetary value addition does n’t convey excessively much negative illations towards consumer if the trade name has high equity ( Campbell, 1999 ) .

Lassar et Al. ( 1995 ) stated that when clients are holding greater assurance in the trade name as compared to rivals ‘ trade name, it means the trade name is extremely valued by clients and ensuing competitory advantage. Swait et Al. ( 1993 ) described consumer ‘s determination to purchase certain merchandises is related to trade name equity and a clear apprehension of trade name equity can develop selling schemes ( Keller, 1993 ) . Based on the research done by Pitta and Katsanis ( 1995 ) , successful companies were much more likely to mensurate the value of their trade names than less successful companies.

2.2.3.1Brand Salience

Keller ( 2003 ) defined trade name saliency as consumer ‘s consciousness of the trade name and he or she can remember the trade name ‘s name easy under any fortunes. In other words, the trade name can be easy recognize by consumer and remain first. A trade name which has high grade of saliency is purchased often by consumer harmonizing to Keller ( 2003 ) .

illustration

grounds

2.2.3.2Brand Imagination

Brand imagination is about how consumers view a trade name in footings of fulfilling their psychological and societal demands ( Keller, 2003 ) . Brand imagination can be developed in the head of consumer through personal experience with the trade name or through viva-voce communicating. Strength, favorability and singularity are the dimensions that consumer makes with the trade name ( Keller, 2003 ) . It is of import for sellers to guarantee that their trade names are easy associated with strong, favourable and alone associations as trade name equity is built on these three dimensions ( Keller, 2003 ) . As an illustration, ‘Snowflake ‘ coat flour has established their motto over many old ages ago which sounds “ excessively fresh to flop ” in the heads and Black Marias of South African consumers and have become established as the premier trade name of bar flour in South Africa ( Pillay, 2007 ) .

Trade names have become the cardinal point of many organisations ‘ selling enterprises and are seen as a beginning of market strength, competitory advantage and chance to make and spread out stockholder wealth through the research conducted by Reid et Al. ( 2005 ) .

& gt ; grounds

2.2.3.3 Brand Feelingss

Brand feelings is the emotional responses and reactions that consumers will experience towards a peculiar trade name and these emotions are warmth, merriment, exhilaration, security, societal blessing and ego regard ( Keller, 2003 ) . Consumer ‘s determination whether doing or non doing the trade name a long-run member of their lives will depend on the positive emotions that consumers experience towards the trade name ( Keller, 2003 ) .

& gt ; illustration

grounds

2.2.3.4 Brand Resonance

Brand resonance illustrates the extent to which a trade name is viewed by consumers as being an indispensable portion of their lives and it consists of four constituents viz. behavioural trueness, attitudinal fond regard, sense of community and active battle ( Keller, 2003 ) . Behavioral trueness concerns the frequence of consumers buying a trade name and besides the measure that is purchased ( Keller, 2003 ) . Although behavioural trueness has a important impact on the net incomes and lucks of a company, it does non vouch in trade name resonance. For illustration, a consumer may buy a trade name often because it is the lone option and non because there is deeper attitudinal fond regard to the trade name ( Keller, 2003 ) . Attitudinal fond regards consequences when consumers have a favourable temperament for a trade name and position it as an indispensable and particular portion of their lives ( Keller, 2003 ) .

Sense of community is state of affairs whereby people portion similar positions on the trade name and lament to take part particular occasions to observe the trade name with trade name proprietors ( Keller, 2003 ) . For your information, Keller ( 2003 ) besides states that successful trade names are able to widen the personal experience with the trade name to a wider community. When the consumers devote clip and attempt to affect in more countries of their lives, this is so called active battle. For illustration, consumers that will buy one trade name of merchandise will be prepared to take part in nines, visit web sites, attend meetings, societal assemblages and subscribe to company or trade name related magazines. Not merely that, the consumers will volitionally go embassadors of the board and guarantee that the positive facets of the trade name are delivered and communicated to non-users of the trade name ( Keller, 2003 ) .

grounds

2.2.4 State of Origin

2.2.4.1 Level of Familiarity

The degree of acquaintance with state of beginning has been identified as holding the possibility of modifying the impact of state of beginning ( Manrai et al. , 1998 ; Sahdrudin and D’Astous, 2007 ; Smaoui, 2003 ) . The consumer ‘s cognition and experience of the merchandise every bit good as cognition and experience with the state is concern to the acquaintance with the state of beginning ( Smaoui, 2003 ) .

2.2.4.2 Level of Country ‘s Growth

In the other manus, the degree of state ‘s growing and development affects the purchase determination of national trade name goods excessively ( Crawford and Lamb, 1981 ) . For your information, there is a positive relationship between degrees of economic development of a state, grade of political freedom and the importers ‘ penchant for a beginning of supply harmonizing to Crawford and Lamb ( 1981 ) .

2.2.4.3 Differences At The Level of Economic Development

The differences at the degree of economic development are of import factors in operationalizing the impact of the state of beginning ( Verlegh and Steenkamp, 1999 ) . Through research conducted by Manrai et. al. , ( 1998 ) about the hierarchy of effects of the state of beginnings based on economic development, the rating of a merchandise tends to be intensive for merchandises that are origin from developed states, followed by merchandises coming from freshly industrialized states and weak for merchandises from developing states.