A STUDY ON INFLUENCE OF BRANDING ON CONSUMER

PURCHASING BEHAVIOUR

ABSTRACT

The purpose of this study is to comprehend the variables that influence

consumers' decisions to purchase smartphones. These days, businesses employ a variety
of techniques to draw in new clients, hold on to their current clientele, and set their
products apart from those of their rivals. Stressing the items' "brand name" is arguably
the most significant and successful way to affect consumer behavior when it comes to
product choosing. In this study, we explore the ways in which smartphone brands can
affect consumers' purchasing decisions.

Brand equity is the combination of brand liabilities and assets associated with a
brand name and symbol that increase or decrease the value that a good or service offers.
It influences the quality of the user experience, improves confidence in the purchase
decision, and enhances the customer's capacity to understand and process information.
We employ this concept, which has been extensively debated in the literature, to
develop our hypothesis about brand equity, which is based on the Aaker model and
includes perceived quality, brand awareness, brand association, and brand loyalty.

The study involved a questionnaire administered to 50 smartphone users who

are students from across the state. Google Forms was utilized to deliver the
questionnaire. The results of the study show that consumer buying behavior was
significantly influenced by perceived quality, brand awareness, brand loyalty and brand
association.

Keywords: Smartphones, Purchase Decision, Brand Association, Brand equity,

Perceived Quality.

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 CONTENTS

[Link] TITLE PAGE NO.

1. CHAPTER 1 INTRODUCTION
03-04
1.1 Research Objectives
2. CHAPTER 2 LITERATURE REVIEW
2.1 Brand Equity
2.2 Brand Awareness
2.3 Perceived Value
2.4 Brand Association 05-08
2.5 Brand Loyalty
2.6 The Aaker Model
2.7 Buyer Decision Making Process
2.8 External Influence on Consumer Behavior
2.9 Internal Influence on Consumer Behavior
3. CHAPTER 3 PROFILE OF RESPONDENTS 09
4. CHAPTER 4 METHODOLOGY
10
4.1 Data Collection and Sampling Methods
5. CHAPTER 5 DATA ANALYSIS AND
11-17
INTERPRETATION
6. CHAPTER 6 CONCLUSION 18
7. REFERENCES 19

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 CHAPTER 1

INTRODUCTION

The primary factor driving the surge in interest in this topic is people's growing
fascination with cellphones. There has been a sharp rise in people's fascination with
smartphones. Thus, the purpose of this study is to ascertain the purchasing habits of
Indian smartphone users. The study attempts to determine how individuals buy
smartphones, what influences their purchasing decisions, and the motivations behind
the purchase decision.

Diverse consumers possess unique life experiences that impact their purchasing
decisions. Both personal and social factors—such as age, occupation, lifestyle,
personality, and self-concept—as well as family, groups, roles, and status—are those
that could impact the final decision-making process of the buyer.

Why do individuals purchase pricey smartphones when there are cheaper

models available on the market? Prior to purchasing a smartphone, a consumer may
consider several aspects, including price, quality, brand, country of origin, marketing,
sales, word-of-mouth, etc. To what extent does a customer's purchase choice depend on
the brand of a smartphone? Given the wide range of smartphone models and prices on
the market, what makes one type of smartphone different from another amidst them?
And how do they affect the decision a customer makes to buy? This study also looks at
the marketing tactics used by smartphone manufacturers to sway consumer purchasing
decisions. Among these tactics are tie-ups and promotional initiatives. utilizing the
network provider, etc.

1.1 Research Objectives

The research objectives of this study are as follows:

• To determine the degree to which consumers' attitudes and purchasing

intentions are influenced by the assessment of results and beliefs in the Indian
smartphone market.

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• To create a framework for understanding how internal and external factors
impact a consumer's lifestyle and self-perception, which in turn influences their
decision to buy.
• To evaluate the elements that ultimately persuade and inspire a consumer to
purchase a smartphone in the Indian market.
• to examine the theoretical implications of smartphone brand in the Indian
market and how they affect consumers' decision-making process while making
a purchase.

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 CHAPTER 2

LITERATURE REVIEW

A review and synthesis of the literature is presented here, explaining the

decision-making process of consumers using the model that serves as the study
framework. All the internal and external elements that affect a consumer's decision-
making process are explained here. This chapter explains the Indian smartphone
industry's consumer purchasing behavior using a consumer decision-making model.
Research questions and the contents of literature reviews are connected to the purpose
of this study's investigation.

2.1 Brand Equity

The definition of brand equity is "a collection of brand assets and liabilities
associated with a brand name and symbol, which add to or subtract from the value
offered by a good or service." This value may be seen in the prices, market share, and
profitability that the brand commands for the company in addition to how customers
feel, think, and behave toward the brand.

Enhancing customer-based brand equity can result in increased revenue,

reduced expenses, and ultimately higher profit. This directly affects the company's
capacity to charge higher prices, customers' inclination to explore new channels of
distribution, and the efficacy of marketing efforts, communications, as well as the
accomplishment of brand expansions and licensing prospects.

2.2 Brand Awareness

Brand awareness refers to the level of familiarity consumers have with a

particular brand. It is measured by how well consumers can recognize the brand's logo,
name, products, and other assets.

Logos or symbols represent a brand, a tagline, a character, a visual metaphor, a

logo, a color, a gesture, a musical note, a package, or a program. Logos help companies

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to develop brand equity through raised brand identification and brand loyalty. As a
result, they are highly valuable assets that businesses heavily invest their time and
resources in promoting.

2.3 Perceived Value

Perceived value is a customer's own perception of a product or service's merit

or desirability to them, especially in comparison to a competitor's product. Perceived
value is how a customer sees the benefits and value of a product. This value could be
anything, like money saved, better health, or higher social standing. Businesses use
many ways to show customers that their product is better than the competition.

2.4 Brand Association

Brand association is a mental connection a customer makes between your brand

and a concept, image, emotion, experience, person, interest, or activity. This association
can be immediately positive or negative and it heavily influences purchase decisions.
Companies may use various strategies, including images, experiences, celebrity
representatives and social media influencers, to help consumers think about their brand
positively. From a unique logo to a TV commercial, brand association helps customers
recognize and remember a brand.

2.5 Brand Loyalty

Brand loyalty is when customers continue to purchase from the same brand over
and over again, despite competitors offering similar products or services. Not only do
customers continue engaging and purchasing from the same brand, but they also
associate positive feelings toward that brand, this tendency of some consumers to
continue buying the same brand of goods rather than competing brands is known as
brand loyalty.

2,6 The Aaker Model

The Aaker model is a brand blueprint developed by marketing expert David

Aaker. It mostly emphasizes the importance of brand identity and offers unique

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solutions to building a strong brand. The Aaker Model includes four different brand
topics that give value to brands:

• Brand Awareness,
• Brand loyalty,
• Perceived Value and
• Brand Associations.

2.7 Buyer Decision Making Process

The consumer decision-making process involves five basic steps. This is the
process by which consumers evaluate making a purchasing decision. The 5 steps are:

• Problem Recognition,
• Information Search,
• Alternatives Evaluation,
• Purchase Decision and
• Post-Purchase Evaluation.

2.8 External Influence on Consumer Behavior

• Culture
• Demographics
• Social Status
• Reference Groups
• Family and Friends
• Marketing Activities

2.9 Internal Influence on Consumer Behavior

• Perception
• Learning
• Memory
• Motivation

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• Personality
• Attitude
• Lifestyle

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 CHAPTER 3

PROFILE OF RESPONDENTS

[Link] PROFILE NUMBER OF

RESPONDENTS
1. GENDER:
Male 26
Female 24
Prefer not to say 0
2. AGE:
18-21 16
22-25 17
26-29 9
30-33 8
3. EDUCATION:
High School 14
Diploma 6
Bachelor’s Degree 10
Post Graduation 20
4. EMPLOYEMENT STATUS:
Full – Time Employee 26
Part – Time Employee 13
Unemployed 11

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 CHAPTER 4

METHODOLOGY

4.1 Data Collection & Sampling Methods

The questionnaire was administered using online data collection forms prepared
by Google forms utility. The primary data collection is used in this dissertation in order
to address the research objectives. It should be mentioned that the primary method of
gathering data for this study was a questionnaire survey, which enables to analyze and
clarify links between structures, especially those involving cause-and-effect
interactions.

The information gathered specifically for the research problem at hand, through
methods that best suit the research purpose, is known as primary data. To conduct this
research and analyze consumer behavior about smartphones in the Indian market,
surveys are used to gather primary data. Research questionnaires were given since this
study collects primary data using the quantitative method.

The survey was done with 50 people living in Hyderabad. The data collected in
a spreadsheet were exported to a statistical tool for data analysis. Then descriptive
statistics like a graph, pie chart and cross tabulation tables were prepared according to
the data collected.

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 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

Data analysis is covered in this chapter, where the information gathered via
surveys was examined. Given that the main study approach involved conducting a
survey, individuals were given questionnaires. Different kinds of graphs, charts, and
statistics were employed to process the data using statistical methods and present the
results. The sample and analysis of the intended sample will be presented first in this
section. The research findings are then examined and evaluated considering the goals
of the study.

The questionnaire is as follows,

Question 1: Gender

Out of the 50 members who participated in the study, there are 24 female and
26 males.

Question 2: Age

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 The above chart shows the percentage of each age group of the participants.

Question 3: Education

This study has a mix of 14 High School students, 6 Diploma students, 10

bachelor's degree students and 20 PG students.

Question 4 Employment Status

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 The study comprises of 26 full-time working members, 13 part time working
members and 11 unemployed members.

Question 5: Do you own a smartphone?

The purpose of this question was to find out what proportion of the respondents
used smartphones. The pie chart shows that 94% use smartphones, while only 6% do
not. Thus, it makes clear that a sizable portion of people utilize smartphones.

Question 6: What is your preference of brand for a smartphone?

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Question 7: Student’s primary purpose in choosing their current smartphone
brand?

Question 8: What smartphone company logo comes to your mind first?

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Question 9: Which smartphone brand has the best marketing champaigns?

Question 10: Which smartphone brand has the best overall attributes?

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Question 11: Do you prefer to buy smartphones from brands that are familiar to
you?

❑ YES - 50
❑ NO - 0

Question 12: Do you consider any lesser-known brands while purchasing?

❑ YES - 4
❑ NO - 46

Question 13: Do you believe that the brand name of your smartphone reflects your
social class?

❑ YES - 37
❑ NO -13

Question 14: Do you prefer to buy from brands that are advertised by your
favorite celebrity?

❑ YES - 46
❑ NO - 4

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Question 15: Does the country of origin of the smartphone brand affect the
product purchase decision?

❑ YES - 39
❑ NO - 11

Question 16: Do you believe that well-known brands are more trustable?

❑ YES - 42
❑ NO - 8

Question 17: Will you buy a new smartphone from the same brand as your
previous one?

❑ YES - 24
❑ NO - 26

Question 18: Will you recommend the brand of your smartphone to others?

❑ YES - 36
❑ NO - 14

Question 19: Will you continue to purchase from your smartphone brand even if
the prices are higher than that of the competitors?

❑ YES - 21
❑ NO - 29

Question 20: Will you switch your smartphone to a new and trendier model
smartphone?

❑ YES - 32
❑ NO – 18

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 CHAPTER 6
CONCLUSION

Some restrictions came up as this study's conclusion was being drawn. For
pragmatic considerations, only a small sample of responders were included in the study.
The sample that was utilized cannot be considered representative of the nation's whole
population. Thus, it was difficult to draw a conclusion based on this small sample. This
sample does not fairly reflect all age groups because it was mostly concentrated on
individuals in the 18–35 age range. Additionally, the sample only includes residents of
Hyderabad. India is an extremely large country, making it challenging to choose
examples from each state.

Finding the variables that affect customers' decisions to buy smartphones is the
main goal of this study, which examines the Indian consumers behavior.

The findings of this study indicate that consumers' purchasing decisions are
influenced by price, product performance, design, and branding. Whether the product
can satisfy people’s needs or not can affect consumer behavior. The impact of a brand
name on the perception of product quality is well-established, as evidenced by the
reviewed findings.

There are many factors related to brand awareness, brand quality, and brand
association that can affect loyalty of customers such as brand name, logo, quality, good
service, well warranty, innovation, price, design and so on.

Apple had a quite remarkable presence throughout the study and its smartphones
are the choice of most of the users. This further solidifies that branding indeed plays a
significant role in consumer purchasing behavior.

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 REFERENCES

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