CHAPTER III

CONCEPTUAL FRAMEWORK OF CONSUMER BEHAVIOUR AND BRAND

LOYALTY OF PACKAGED MILK

INTRODUCTION

Understanding consumer behaviour is a complex phenomenon. The consumer

behaviour has emerged as a separate discipline which intends to analyse what, when,
where, why and how people decide to purchase or not purchase the products or
services. The ideologies and concepts of consumer behaviour have been borrowed
from various disciplines such as sociology, economics, psychology and anthropology.
It is very essential to know the differences between consumer and customer before
analysing the behaviour of consumers.

A consumer of Packaged Milk may be an individual or a household taking

decision to purchase or consume the product. The customer of Packaged Milk is
considered as and when the consumer buys for his own consumption. Here in this
study, the term customer of milk refers to the person who regularly consumes
Packaged Milk. The customer covers both individual and household consumers of
Packaged Milk. Brand Loyalty is a major factor which influences customer based
brand equity. Consumer decision making process, Brand Awareness, Brand
Knowledge, Perceived Quality, Brand Association, Purchase Decision and Post
Purchase Behaviour, which leads to accomplish customer-based brand equity with
reference to various brands like Aavin, Arokya, Cavinkare, Jersey, Tirumala,
Heritage, Hatsun are also discussed in this chapter.

3.1 CONSUMER DECISION MAKING PROCESS

The consumer decision making is the process underlying in an individual or

the group in which he or she belongs to. Analysing consumer behaviour of packaged
milk is an attempt to find out the needs and wants of consumers by focusing on their
behavioural, demographic and psychographic profile. This attempt also helps the
researcher to understand what factors influence the consumers of packaged milk,

56
factors such as friends, reference groups, family and society. Apart from these forces,
the needs, wants, belief, attitudes, perception, personality and behaviour are also
dependent on the level of satisfaction of consumers of packaged milk. The thinking
and decision process of an individual becomes the outcome for the level of awareness
of consumers towards different brands of packaged milk.

3.2 BRAND AWARENESS

The Researcher analysed that when a consumer consumes Packaged Milk, he

is able to recognize or recall the particular brand. This ability of the consumer reveals
the fact that he is member of a particular product category of milk. 73 It was confirmed
that Brand Awareness had created the linkage between product category and brand in
Brand Awareness. Thus, brand awareness involves the belief that it is the only one in
the product class. It makes the consumers recognize the products with the well
established brand names74.

Brand name, symbol, character, logo, slogan or packaging plays an important

role in increasing the awareness of consumers towards a particular brand of milk.
Brand Awareness is to be created through popularization of brands through repeated
exposure for brand recognition and brand recall75.

 Brand recognition and brand recall

Brand Awareness consists of both Brand Recognition and Brand Recall. Brand
Recognition refers to the ability of consumers to confirm their experiences as having
seen or heard previously. It also requires the consumers to correctly differentiate the
brand based on their past experiences. Brand Recognition is the prerequisite to
forming the basic level of Brand Awareness. Brand Recall is the next level of Brand
Awareness. In the case of Brand Recall, the consumers are required to correctly
generate the particular brand of milk in their memory. It is a more difficult task than
Brand Recognition.

73
Aaker David, A. (1991). “Managing Brand Equity”. Free Press, New York, p.15.
74
Mary W. Sullivan, (1998). “How Brand Names Affect the Demand for Twin Automobiles”. Journal
of Marketing Research, Vol. XXXV, May, pp.154-165.
75
Joseph W. Alba and Wesley J. Hutchinson, (1987). “Dimensions of Consumer Expertise”. Journal of
Consumer Research, 13, March, pp. 411-455.

57
 The first named brand in their recall ability shows their alertness of mind and
awareness. Brand Recognition and Recall depend on the decision of the consumers
that they make in the place versus outside the place of purchase. However, the
importance of Brand Recognition lies in making the decisions when they make the
purchase which is called as Purchase Decision. The characteristics of Brand
Awareness are according to the depth, breadth and knowledge of the level of
awareness of consumers. The depth of brand awareness is measured out of easy recall
ability instead of mere recognition. The breath of Brand Awareness depends on the
level of knowledge on the product and brand in memory of the consumer76.

Brand Awareness creates value in different ways. Recognition provides the

brand with a sense of familiarity and people are at ease to use the brand. In the
absence of motivation to engage in attribute evaluation, familiarity may be enough.
Brand Awareness can be a signal of substance. The first step in the buying process
often is to consider a selected group of brands. Brand Awareness can be crucial step
in getting into this group.

 Role of Brand Awareness in consumer decision making

Brand Awareness plays an important role in consumer decision making as

well in three different ways. First of all, the consumers must be aware of a particular
brand and locate the product category. Secondly, Brand Awareness of consumers has
to influence the Brand Decisions, as the Brand Awareness may have a very low
impact in some cases. The final way is where Brand Awareness is added to Brand
Image which affects the decision making of consumers by influencing the strength of
Brand Association77.

76
Kevin Lane Keller, (1998) “Strategic Brand Management: Building, Measuring and Managing
Brand Equity”, Prentice-Hall, New Jersey, p.88.
77
[Link].,Kevin Lane Keller, p.88.

58
  Perceived Quality

Perceived quality is defined as the perception of customers on overall quality

of the product with respect to its intended purpose and alternative uses 78 . The
perceived quality reflects the superior service, nature of products, quantities of
ingredients, services needed and free from defectives. Perceived quality is a judgment
about the opinion of customers who are members of the product group in the
particular brand of Packaged Milk. In short, it is the strong overall feeling about a
brand. Perceived quality is attached with reliability and performance, as it is
intangible in nature. In many cases, perceived quality of a brand is the prime reason
influencing customers to select a particular brand. Thus, it is linked to the Purchase
Decisions of the customers. High perceived quality results in effective promotion and
advertising. It also provides the option of charging a premium price.

The premium price offers would increase profit margin of the products and
help the customers reinvest in the same brand. The increased financial resources can
be used for brand building activities including awareness, Research and Development
etc. This price premium strategy may reinforce the perceived quality. The perceived
quality provides gains to channel members also. It also helps to go for further brand
extensions using the brand name.

The brand with perceived quality ensures higher success than the weaker
brand. In addition to Return on Investment (ROI), the perceived quality creates more
profitability79. So, it influences market share and exercises control on other factors
influencing the business in an attempt to retain the market value.

The perceived quality influences the price of the product also. Higher the
perceived quality leads to higher price for the product. It also helps to reduce
competitive pressures and promotes a direct link between quality and ROI. There is
always a natural bond between quality, prestige and high cost. Quality of the products
should be enhanced through reduction of defects and low manufacturing costs.

78
Valarie [Link], (1988) “Consumer Perceptions of Price, Quality, and Value: A Means –End
Model and Synthesis of Evidence”, Journal of Marketing, Vol.52 (3), pp.2-22.
79
Robert Jacobson and Aaker David A, (1987), “The Strategic Role of Product Quality”, Journal of
Marketing, pp. 31-44.

59
 The perceived quality is the most important element of building consumer
based brand equity. If the quality of the product is up to the expected level of
satisfaction, it provides maximum benefits and adds strength to the brand. Thus,
positive reflection of quality stays and spreads in all the spheres of consumer based
brand equity.

3.2 BRAND IMAGE AND EXPERIENCE

Consumer purchasing behaviour focuses on studying the elements which

influence the consumers to purchase a product 80 . Consumer purchasing behaviour
intends to observe the behaviour of ultimate consumers, both individuals and
households who purchase products for personal consumption. It also refers to the
activities in which people purchase and dispose products and services. However, it is
a very crucial and dynamic issue to define commonly. The consumer buying
behaviour is defined as ‘to choose and acquire products or services to fulfill their
needs’. Awareness of consumer buying behaviour is a positive contribution to the
quality and economic growth of the nation.

Most research studies have attempted to find out the relationship between
brand image and consumers’ buying behaviour. These studies have investigated the
influence of customer purchase behaviour on Brand Image. According to Thakor and
Katsanis (1997), ‘the positive Brand Image increases the possibility of the selection of
the product’81.

Pitta and Franzak (2008)82 viewed that food products are heavily influenced
by brands. These brands are expected to spell out the quality of food products thereby
creating an image in the minds of the consumers. Further, the Brand Image induces
the buying motive of a particular brand of the product. Ultimately, that Brand Image

80
[Link].,Kevin Lane Keller, p.88., P.22.
81
Thakor, M.V. and Katsanis, L.P. (1997) ‘A Model of Brand and Country Effects on Quality
Dimensions: Issues and Implications’, Journal of International Consumer Marketing, Vol. 9(3), pp. 79-
100.
82
Dennis A. Pitta, Frank J. Franzak, (2008) "Foundations for building share of heart in global
brands", Journal of Product & Brand Management, Vol. 17 Issue: 2, pp.64-
72, [Link]

60
becomes the basic motive for the consumers’ choice of a particular product brand83.
According to the arguments, identifying consumer needs and wants leads to long term
benefits to the business. Consumers are able to recognize a product, evaluate the
quality, lower the purchase risk and obtain certain experiences through Brand Image.
Brand image and its perspective are to be considered as the most important
independent variables whereas consumer buying behaviour is a dependent variable
while developing a conceptual framework on consumer buying behaviour. Keller’s
conceptual framework on consumer buying behaviour is three dimensional. It
includes Brand Attitude, Brand Attributes and perceived benefits. These dimensions
determine the Brand Associations.

Figure –3.1
Keller’s Conceptual Framework on Consumer Buying Behaviour

Source: Keller, K. L. (1993) conceptualizing, measuring and Managing Customer

based Brand Equity. Journal of Marketing, p.22.

83
Vranesevic, T., Stancec, R., (2003), “The Effect of Brand on Perceived Quality of Food Products”,
British Food Journal, Vol. 105, No. 11, pp. 811-825

61
3.3 BRAND ASSOCIATION

A Brand Association is a psychological connectivity of the consumers with the

brand. It includes product attributes, customer usages, life styles, product groups,
rivalry forces etc. The Brand Association not only exists merely, but also it has
strength to sustain the bondage between consumers and product classes. It differs
from one brand to another brand according to the level of competition that prevails in
the market.

An association of brand influences the recognition and recall of information

that provides the point of differentiation, reasons to purchase and attitudinal changes.
It also serves as the basis for promoting brand extensions. The associations with well
established brand name influence the purchase behaviour of consumers and the level
of satisfaction of users. The Brand Association may not be important for brand
choices. But it can reassure and reduce the efforts of consumers trying for other
brands84.

 Forms of Brand Associations

Brand Associations may have different forms. Abstraction is the first way to
distinguish brand awareness. In this context, abstraction refers to the summary or
inclusion of information about the brand in the association. There are three major
types of Brand Associations such as attributes, benefits and attitudes85.

a) Brand Attributes

Brand attributes occupy the first position in types of Brand Associations.

Attributes are descriptive, reflecting the characteristics of products. These attributes
can be differentiated with respect to the performance of product or service. Attributes
may be product related or non -product related. Product related attributes focuses on

84
Sridhar Samu (1994) ,"Brand and Line Extensions: Role of Brand Associations in Choosing the
Better Alternative", in AP - Asia Pacific Advances in Consumer Research Volume
1, eds. Joseph A. Cote and Siew Meng Leong, Provo, UT : Association for Consumer Research,
pp.311-315.
85
Belen del Rio, Rodolfo Vazquez, Victor Iglesias, (2001) "The effects of brand associations on
consumer response", Journal of Consumer Marketing, Vol. 18 Issue: 5, pp.410-
425, [Link]

62
performing primary product functions expected by customers. These attributes relate
to physical composition or service requirements 86 . These attributes promote the
product performance. So, these attributes may be distinguished according to the
contents, features, customization and personalized usages. Non product related
attributes are the external aspects of products related to consumption. These attributes
do not directly influence the performance of the products. Pricing, packaging, User
imaginary and Usage imaginary are the types of these non-product related attributes.
User imaginary refers to the types of person using the product or service whereas
usage imaginary refers to the situations that warrants the use of products.

b) Brand Benefits

The second type of brand associations is known as Brand Benefits. Benefits

refer to the personal value attached with the product or service purchased by the
consumers. Benefits can be divided into three categories viz., functional benefits,
experiential benefits and symbolic benefits. Functional benefits provide inherent
benefits of product consumption and rely upon the product related attributes. These
benefits are associated with the physiological and safety needs of consumers. In short,
these benefits concentrate on motivation oriented aspects.

Experiential benefits relate to the perception of consumers when they use the
products. These benefits relate to both product related attributes and non-product
related attributes. These benefits focus on fulfilling the experiential needs viz.,
delightedness, different variety of products and cognitive inspiration. Symbolic
benefits provide external advantages of product consumptions. These relate to non-
product related attributes87. These benefits are applicable for socially visible products.
Therefore, consumers give more emphasis for prestige, uniqueness, fashion and styles
of product.

86
Agarwal, M.K. and Rao, V.R. (1996), ``An empirical comparison of consumer-based measures of
brand equity'', Marketing Letters, Vol. 7 No. 3, pp. 237-47
87
Cobb-Walgren, C.J., Ruble, C.A. and Donthu, N. (1995), ``Brand equity, brand preference, and
purchase intent'', Journal of Advertising, Vol. 24, pp. 25-40.

63
 c) Brand Attitudes

The third types of Brand Association are Brand Attitudes. Brand Attitudes
reflect the evaluation of brand by consumers. Brand Attitudes form the foundation for
the actions and behaviour of consumers with the brand that they select. These
attitudes rely on attributes and benefits of the brand by considering both product
related attributes and non-product related attributes. Thus, Brand Attitudes form the
basis of functional benefits, symbolic benefits and experiential benefits.

Figure -3.2
The Value of Brand Association

Brand
Association

Help Process/ Create Positive

Retrieve Differential/ Reason-to Buy Attitudes/ Basis for
Information Position Feelings Extension

Source: Adapted from Aaker David. A (1991), “Managing Brand Equity”, The
Free Press, New York, p.111

 Favourable brand associations

Brand Associations vary according to their strength and uniqueness. These

Brand Associations differ in their pattern of evaluation. The most favourable
evaluation of brands is essential to the consumers in one hand and to ensure the
success in marketing programs on the other hand. Consumers believe Brand
Attributes due to favourable Brand Associations. These associations also develop
positive overall Brand Attitudes and benefits. It is important to note that favourable

64
associations depend on the successful entry of information in the memory of
consumers and the development of Brand Image.

The favourable Brand Associations facilitate the consumers to think about the
significance of the product and create stronger associations in their memory 88 .
Therefore, recall and recognition of the brand will be more easy and accessible. If the
brand has no competitors, the brand shares some associations with other brands.
Implying the superiority of brands over other brands is always crucial to ensure
success in branding the products. Shared associations help to establish and define the
scope of competition with other related products.

 Cohesiveness of the Brand Image

The strength of the brand association depends upon the Brand Associations
recorded in the memory of consumers. Congruence is the extent of sharing the content
and meaning of brand association with another Brand Association. The existing Brand
Associations may be easily learnt and remembered than unrelated details. The
congruence among Brand Associations determines the consistency of brand image.
Secondary Brand Association occurs when it is not directly linked with related
product or services. Secondary associations arise from the associations related to the
company, country of origin, celebrity used, etc. which establishes indirect links to the
products.

Strong, favourable and unique Brand Association creates Brand Equity. It is a

real challenge to marketers. However, it is pertinent to build consumer based Brand
Equity.

88
Baker, W. J., Hutchinson, W, Moore, D., &Nedungadi, P. (1986). Brand familiarityand advertising:
Effects on the evoked set and brand preference.
Advances in Consumer Research, 13(19), pp.637-642.

65
 Figure 3.3
Types of Brand Association

Product Attributes

Intangibles

Customer Benefits

Relative Price

Use/Application
Brand Name and
Symbol User/Customer

Celebrity/Person

Life Style/Personality

Product Class

Competitors

Country/Geographic

Source: Adapted from Aaker David. A (1991), “Managing Brand Equity”,

The Free Press, New york, p. 115.

3.4 BRAND PERSPECTIVE

There are different views and perceptions with regard to brands. There is no
common parlance of perspectives on brand. However, these perspectives become
vital to understand and appreciate larger realities89. The major perspectives of brand
are as follows:

89
Harsh V Verma (2006), “Brand Management: Text and Cases”, Excel Books, New Delhi, pp. 54-59

66
  Visual Perspective

Visual perspective is also called as verbal perspective. It focuses on the

symbol, logo, trademark and design of packages. This perspective is essential for
identification and differentiation of brands 90 . Brand recognition and recall are
increased by the symbols and logos. Visual images improve the visual memory.

 Positioning Perspective

The brand must occupy a key position in the minds of consumers. Positioning
is helpful to launch a special position in the minds of prospective consumers. The
brand is not only a position occupied but also a perceived experience of the
consumers.

 Value Perspective

The value perspective views a brand as a three tier system consisting of

functional value, expressive value and central values. The functional value focuses on
the brand performance. The expressive values reflect the consumer expressions and
values. The value to the consumer is more than the product value in this case. The
central values arise due to the persuasion of religious, national and political systems.

 Brand Image perspective

Brand Image perspective covers the imaginary aspects of a brand. The

imaginary aspects go beyond the physical product. It aims to make the brand more
appropriate and meaningful to its targeted consumers91.

 Added value perspective

The thrust of this perspective lays in the value addition features of the brands.
It aims to derive more consumer satisfaction. It helps to seek a balance between offer
of a product, wants and desires of the consumers.

90
Keller,K.L., Heckler, S.E. and Houston, M.J., 1998: ‘The Effects of Brand Name Suggestiveness on
Advertising Recall.’ Journal of Marketing, 62,January, pp.48- 57 .
91
Baltas, G., 1999: ’Understanding and Managing Store Brand’, The Journal of Brand management,
6(3), pp.175-187.

67
  Perceptual Appeal Perspective

This perspective pays attention to the behavioural perspectives of consumers.

The focus is on the structure and appeal of brands. Based on the tastes and preferences
of consumers, structure and appeal aspects would be developed.

 Personality Perspective

The personality of the individual has its own impact on the choice and
selection of his product and brand. Personality refers to the inner features or innate
qualities. It differs from one person to another.

3.5 PURCHASE DECISIONS

Exchange is the most significant function of marketing. In this process, the

consumers take decisions with regard to the selection of value provider. The decision
involves choosing the best course of action among the available alternatives92. The
success of a brand lies in the choice of decisions in its favour. These decisions are
called as assortment decisions. The second type of decision is concerned with the
choice of specific brands93. These decisions are called as branding decisions. The
concept of assortment reveals the basic combination of products to meet the
requirements of a particular individual or group94.

Assortment decisions are guided by central values held by the individual and
socio-psychological factors. In the case of assortment decisions, perception of each
stratum of consumers would be duly recognized with respects to attributes and
benefits of products. The process of purchase decision making are uniform viz., need
recognition, identification of alternatives, evaluation of alternatives and decisions
regarding the post purchase behaviour 95 . The consumers involve in taking market
related decisions based on assortment strategy. After analysing the merits and

92
Henson, Flemming, (1976) “Psychological Theories of Consumer Choice”, Journal of Consumer
Research, December, pp. 117-42.
93
Walters,GC, (1974) “Consumer Behaviour: Theory and Practice”, Homewood, III., Richard [Link],
p. 473.
94
Alderson,Wroe, (1957) “Marketing Behaviour and Executive Action”, Homewood, III, Irwin, ch.7.
95
William [Link], Michael, [Link] and Bruce [Link], (1994) “Fundamentals of Marketing”,
McGraw Hill Inc, Tenth Edition, p.154.

68
demerits of each alternative, the consumers will be able to decide whether they want
to buy or not.

The first outcome of decision making is to decide to purchase or not to

purchase. If the decision to purchase is made, the plan to make actual transaction
would be worked out. This plan includes what, when, where and how to purchase the
products. It also covers various aspects such as mode of payment, delivery procedures
and other issues related with buying decisions. The buying decisions are also
influenced by social, cultural and psychological factors. Based on the comprehensive
analysis on the buying decisions of consumers, value additions in the products of
particular brand must be made to increase the sales. Customer’s acceptance results
into increase in sales and brand equity.

3.6 POST PURCHASE BEHAVIOUR

Consumer derives satisfaction or dissatisfaction after purchasing the product.

The extent of satisfaction of consumers influences their subsequent behaviour. If the
consumers are satisfied, they exhibit a high chance of purchasing product again. The
satisfied consumer by nature spread the values of the products and company to other
customers. The post purchase behaviour depends upon the experience of consumers,
selection of products, stores and type of feedback received by the marketers. Proper
understanding of consumers’ needs and wants leads to establishment of effective
marketing strategies. Problem recognition, information search, evaluation of
alternatives, purchase decisions and post purchase behaviour determines the process
of purchase decisions of consumers.

The post purchase decisions involve the comparison between the expectations
and actual performance of the product. There are three chances in this regard. First of
all, there is no discrepancy between expectations and actual performance. It promotes
unbiased feelings among the consumers. Secondly, performance goes beyond the
expectations which are termed as customer delight. In this regard, the consumers feel
satisfactory. Thirdly, the performance falls below expectations so the consumers

69
express their dissatisfaction 96 . There is no direct correlation found between the
expectations and the level of satisfaction of consumers. This situation is described as
‘disconfirmation of expectations’.

The disconfirmation is categorized into positive disconfirmation and negative

disconfirmation. Positive disconfirmation occurs when the satisfaction is more than
the expectations. Negative disconfirmation arises when the customer feels that the
product is worse than the expected. Thus, disconfirmation is the situation when the
judgment of consumers goes wrong97. Post purchase behaviour reflects the extent of
achievement of buying motives of consumers. It indicates whether the consumers can
continue their purchase in the same way or to recommend a product to prospective
customers.

3.7 BRAND LOYALTY

The major element of Brand Equity is Brand Loyalty. Brand Loyalty is a

central part in marketing. It is a measure that a customer has to select and satisfy the
particular brand. The consumers must continuously purchase one particular brand
even though there are lot of other brands existing in the market with superior features
and price. It helps to know the expectations of consumers and work out the
possibilities whether he or she wants to switch over to another brand. It also facilitates
changes in price or in product features for retaining the customers.

Brand Loyalty serves as the indicator of Brand Equity linked with futures
profits. There exists a qualitative difference between Brand Equity and Brand
Loyalty. Brand Loyalty needs prior purchase and user experience. It is a basis of
brand equity.

Brown (1953)98 defined ‘Brand Loyalty as the sequence purchase of specific

brand. He classified it into undivided loyalty, divided loyalty, unstable loyalty and no

96
Cadotte, Ernet R, Robert B Woodruff and Roger L Jenkins, (1987) “Expectations and Norms in
Models of Consumer Satisfaction”, Journal of Marketing Research, Aug, pp. 305-14.
97
Simon Bension, (1980) “Buying Patterns Different”, Advertising Age, Apr. pp. 10-24.
98
George Brown, (1953) “Brand Loyalty-Fact or Fiction?”Advertising Age, Vol.2 (3), June, pp.75-76.

70
loyalty’. Gunningham (1956) 99 was of the view that Brand Loyalty showed the
measurement of total purchases of a particular product class. Raj (1985)100 specified
that brands with larger market shares retain more loyal consumers. It would help them
not only to increase sales in the future but also to build Brand Equity.

101
Rossiter and Piercy (1987) expressed that Brand Loyalty Reflects
favourable characteristics of brand and its repetitive purchase by the consumers.
Aaker (1991)102 viewed that Brand Loyalty is the affection that customers hold for a
brand. It is prime element of Brand Equity.

Keller (1993)103 stated that Brand Loyalty is the effect of Brand Equity. The
favorable attributes of products induce the consumers to undergo repeated purchases.
Brand Loyalty offers more benefits to the company and the customers. It prevents
prospective competitors and increases the possibility of price hikes. It makes the
company respond to the innovative tasks of the competitors and also facilitates an
intensive price war. (Aaker 1996) 104 , Oliver (1997) 105 defined Brand Loyalty as
‘commitment to repurchase and repatronize a desired product or service in the future
period’.

DIFFERENT TYPES OF BRAND LOYALTY DIMENSIONS

Brand Loyalty is viewed and conceptualized in various perspectives. Yoo and

Donthu (2002)106 defined ‘Brand Loyalty from the perspective of attitude’. He stated
that the intention to buy the brand is the primary choice. The tendency of intention to
buy arises due to loyalty for the brand. Though brand loyalty is a complex subject, it
is classified into seven types.

99
Roses [Link], (1956) “Brand Loyalty-What, Where, How much?”Harvard Business Review,
Vol.34 (Jan-Feb) pp. 116-128”.
100
Raj S.P, (1985) “Striking a Balance Between Brand ‘Popularity’ and Brand Loyalty”, Journal of
Marketing, 49, Winter, pp. 53-59
101
Rossiter, J.R, and Piercy.L (1987), “Advertising and Promotion Management, McGraw-Hill ,New
York.
102
[Link].,Aaker David A, p.39.
103
[Link]., Kevin Lane Keller, pp. 1-22.
104
[Link].,Aaker David A, p.40.
105
Oliver, R.L (1997), “A Behavioral Perspective on the Consumer”, McGraw-Hill, NewYork.
106
[Link]., BoongheeYoo, Naveen Donthu (2002), pp. 380-398.

71
  Emotionally loyal

Strong emotional bond over the brands is created due to special, memorable
and reinforcing experiences. High level positive word of mouth results in emotional
loyalty.

 Loyalty to identity

When brand is identified as an expression of self-esteem, identity loyalty

arises. It is used to manage impressions and as an expression of self.

 Differentiated loyalty

Brand Loyalty is expected to perceive superior features and attributes in the

case of differentiated loyalty. Demonstrations and trials are used as the best
marketing tactics in this regard.

 Loyalty on a contract

This type of loyalty arises when a consumer believes that he is specially

treated due to the continuous business deal. But the competitor has the perception that
consumer’s trust is being exploited.

 Switching cost loyalty

When the consumer is not able to get the expected return over the new
alternative, he minimizes his efforts of evaluating the alternatives. He is loyal to the
same particular brand.

 Familiarity loyalty

Brand Awareness is the prime element deciding Brand Loyalty in the case of
familiarity loyalty. It is achieved through constant advertisements thereby inducing
the interest for the customers to buy the product.

72
  Convenience loyalty

In the case of convenience loyalty, convenience is the deciding factor of brand

loyalty. This type of loyalty may be influenced by the competitors through the
expansion of convenient channels.

FIVE LEVELS OF POTENTIALS WHICH LEADS TO LOYALTY

Brand Loyalty is the base of brand equity. There are five potential levels of
loyalty. These levels provide a feeling that loyalty impacts brand equity107.

The bottom loyalty level focuses on the non–loyal buyers who are completely
unbiased about the brand. Here, the role of the brand name is very limited. This is
termed as switcher which happens in the first level.

The second level focuses on the satisfied buyers and the buyers who are not
dissatisfied with the product class of brand. These buyers are called as habitual
buyers.

The third level also covers the satisfied customers, in addition, who incur
switching costs. So, these buyers are called as switching cost loyal.

In the case of fourth level, buyers are more true to the brand. Symbol, brand
name, bundle of experiences and quality consciousness are the reasons for product
preferences. In the fourth segment, friends of the brand attach emotional feeling
towards the brand.

At the fifth level, the customers are well committed. They are very proud of
being users of the product. They are very confident in recommending the brands to
others.

107
[Link].,Aaker David A, p.41.

73
 Figure 3.4
The Brand Loyalty Pyramid

Committed

Likes the Brand –

Considers it a Friend

Satisfied Buyer with Switching Costs

Satisfied/Habitual Buyer, No Reason to Change

No Brand Loyalty – Switchers/Price sensitive, Indifferent

Source: Aaker David. A (1991), “Managing Brand Equity”, The Free Press,
New York. p. 40.

3.8 PACKAGING

Proper packaging of milk is the most important factor, not only to protect its
nutritional value but also to save from wastages and spoilages. It aims to improve the
marketability and ensure sufficient returns. The main challenge faced by the
packaging industry is to deliver the milk in cheap, secure and eco-friendly containers
with hygienic and nutritional values. Multiple laminations, triple layer density
polyethylene packages are used to deliver the milk108. Manufacturer’s preference may
be a small barrier in this regard.

108
[Link].,Baltas, G.,,,pp. 175-187.

74
 Oxygen penetration at the time of storage would not be a problem. But, aseptic
techniques are to be used in filling the liquids in order to put off contaminations. By
using this technique, milk can be used within a shelf life of six months under the
conditions of particular temperature levels. Cream is the main element which leads to
spoilage, as it contains more fat. Therefore, the packages are vulnerable to spoilage.
The packaging material must be grease resistant. Special chemical and bacteriological
properties of fermented milk must be used for storing the liquids and semi solids of
milk products.

 Packaging of fluid milk

There are two methods of packing systems of fluid milk viz., traditional
bottling system and non-returnable distribution system. In the case of traditional
bottling system, the container is to be returned. It consists of two way delivery
systems of containers. In the non-returnable distribution system, the bottles are not
returned.

The container is disposable and it does not reach the dairy units. So, it is
termed as one way delivery system of containers. There are several alternative
methods that use different packaging materials, designs, shapes and sizes. Different
forms of hi-tech machineries and equipment are also used for packaging the milk
products.

75
PACKAGED MILK PRODUCING COMPANIES – AN OVERVIEW

There are many brands in Packaged Milk. Aavin, CavinKare, Arokya and
Hatsun are the noteworthy players in Packaged Milk supply in Chennai city. Brief
introduction about the selected Packaged Milk producing companies are highlighted
below:

 AAVIN

In the year 1981, The Tamil Nadu Cooperative Milk Producers Federation
Limited was established to handle the commercial activities of procurement,
processing and marketing of milk products. The Cooperative Milk Producers
Federation has implemented developmental activities in the dairy sector with the
financial assistance of National Dairy Development Board (NDDB). This assistance
was provided under the Operation Flood Program. Aavin is the most popular brand of
the federation. It intends to offer continuous supply of milk in packed sachets and in
convenient supply methods through booths, Automatic Vending Machines (AVM),
parlours and other retail outlets.

The average milk procurement of seventeen District Cooperative Milk

Producers Unions stood at 28.5 Lakh Litres of milk Per Day (LLPD) in the year 2016-
17. The milk procurement reached its peak on 21.09.2017 with a quantum of 33.01
lakh litres. Aavin secures the fourth place among the state cooperatives in India.
Aavin maintains quality of milk by avoiding transportation to chilling centres.
Instead, it has proper arrangement of storage in the form of Bulk Milk Coolers
(BMC). Aavin has 341 BMCs with a capacity of 15.14 LLPD109.

Dairy units of Aavin have supplied 7.19 LLPD to consumers in the year 2000-
2001. Bulk quantities of milk have been supplied to institutional customers with the
help of 196 AVMs, 192 Fibre Reinforcement of Plastic (FRP) tanks, 512 booths and
34 parlours. There are 34 Consumer Cooperative Societies in and around Chennai to
distribute milk to consumers.

109
[Link]

76
 Table- 3.1
Average Milk Procurement in District Cooperative Milk Procurement
Unions (DCMPUs) in Lakh Litres Per Day
Average Milk Procurement per
Year
day ( in lakh litres)
2012-13 24.36
2013-14 23.22
2014-15 23.68
2015-16 28.97
2016-17 28.50
Source: [Link]

Chart -3.1
Average Milk Procurement in District Cooperative Milk Procurement
Unions (DCMPUs) in Lakh Litres Per Day
35

28.97 28.5
30

24.36
23.22 23.68
25

20
Lakh Liters

15

10

0
Year
2012-13 2013-14 2014-15 2015-16 2016-17

The above table 3.1 shows that average milk procurement of DCMPUs from
2012-13 to 2016-17. The average milk procurement has increased from 24.36 LLPD
in the year 2012-13 to 28.5 LLPD in the year 2016 -17. It showed the fact that milk
procurement has increased according to the requirements of consumers.

77
  Marketing of Milk in Chennai District

Marketing of milk in Chennai District is carried out through three wings of the
federation viz.

 Metro Liquid Milk Marketing

 Metro Milk Product Marketing
 Up country Marketing.

The manufacturing wing of the Federation is located at Nandanam. This wing

is responsible for the marketing operations in Chennai metro and suburbs. The storage
facilities are at Ambattur. The sale of milk in sachets is done through 16 zones, 292
Federation Depots and 184 Federations apart from the wholesalers and retailers.
Special orders like marriage functions are undertaken by the Federation. Aavin milk is
available liberally to consumers at all times. 5 litre milk cards are also issued to tea
shops, canteens and to retail outlets with the support of city zonal officers. Tamil
Nadu Cooperative Milk Producer’s Federation Limited sells milk and milk products
under the trademark of ‘Aavin’. In the Tamil language, ‘Aa’ stands for cow and
‘Aavin’ stands for cow’s milk.

Table-3.2
Aavin Packaged Milk
Sl. No. Milk Fat Content
1. Pasteurized Toned Milk FAT 3.0% SNF 8.5%
2. Standardized Milk FAT 4.5% SNF 8.5%
3. Full Cream Milk FAT 6% SNF 9.0%
4. Double Toned Milk FAT 1.5% SNF 9.0%
Source: [Link]

 CAVINKARE

CavinKare offers umbrella brand of milk and milk products. This brand offers
Ultra high temperature Processing Milk (UHT milk), Curd, Paneer, Butter and other
milk products such as Milk shakes, Butter milk, Lassi etc. The brand renews many
products in its dairy brand while conscious about maintaining a high quality. It

78
follows international quality standards of production. Erode is the main location of the
CavinKare brand. It is situated in 22 acres of land and it is well equipped with
machineries for milk processing and packaging110.

The plant focuses on producing many milk products viz., pasteurized milk,
curd in cups and pouches, milk share in tetra packs, UHT milk in pouches, skimmed
milk power etc. The first product of milk was manufactured on 14th January 2009. The
plant has a capacity of manufacturing 320 LLPD of milk and milk products per day.
The brand sells fresh and hygienically processed milk and milk products. The milk is
procured from village farms and processed at CavinKare’s dairy plant. The quality
standards are followed strictly. Modern technology is used to retain the freshness and
the nutritional value of the milk products. Processed milk is distributed within 24
hours. The brand sells varieties of milk such as standardized milk, toned milk, full
cream milk and double toned milk.

 HATSUN AND AROKYA

Hatsun is the largest dairy producer in India. It is a private sector company. It

was started in the year 1970 with a single ice cream product, known as ‘Arun Ice
Cream’. The manufacturing plant of ice cream is situated in Chennai. Later on,
Hatsun introduced ‘Arokya’. Arokya is the standardized and bacterial clarified milk.
Hatsun processes 1.8 million litre per day111. The company has a proper network of
logistics and distribution. There are 1100 ice cream parlours functioning in Tamil
Nadu and in select parts of Andhra Pradesh and Karnataka.

The company has a network of distributors with 150 wholesale distributors

and more than 10000 dealers of Arokya 112. It also appointed more than 850 direct
selling agents for HatsunKomatha milk. The plants of Hatsun are situated at Salem,
Kancheepuram, Madurai, Palacodu in Tamil Nadu and Honnali in Karnataka. Milk
vans procure milk to the plant after undergoing quality tests and weight tests before
entering into the plant. The company has chilling centres in more than 50 locations
with the vehicles of 1348. It covers ten districts in Tamil Nadu and thee districts in
110
[Link]
111
[Link]
112
[Link]

79
Karnataka. The company has undertaken the assignments at the international level in
the year 2004 -05.

As the Aavin brand has its strong network in Salem District, Arokya was not
able to beat the fluid milk market. However, Arokya extends its market share by
retaining quality as its unique selling proposition. It developed Hatsun Distribution
Centres (HDCs) in order to reach retailers and direct consumers. In Chennai itself,
there are 145 HDCs and 230 company retailers to cover grocery shops, petty shops,
super markets and door-to-door vendors. Hatsun Komatha and Hatsun Full Cream
Milk were the product lines launched by Arokya in Tamil Nadu to compete with the
Aavin Brand.

Arokya adopts intensive promotional efforts through Television media. It also

conducts awareness programs, road shows, stalls, exhibitions and free sample
distributions etc. to promote the brand.

 HERITAGE

Heritage offers rich and fresh milk with protective food characteristics. The
milk is hygienically procured, pasteurized and packed. Heritage was founded in the
year 1992 by Nara Chandrababu Naidu. It is one of the public listed companies in
India. It has two business divisions viz. Dairy and Renewable Energy. The name of
the company is known as Heritage Foods Limited. The company is located at
Hyderabad. The annual turnover of Heritage foods stood at Rs.2642.89 crores in the
year 2016-2017113.

The company has a good network of 140 milk collection routes and 3000 milk
collection agents. The company procures milk from 140000 dairy farmers who supply
375000 litres of milk in a day. The company has extended its distribution points in
various States including Andhra Pradesh, Tamil Nadu, Pondicherry, Kerala,
Karnataka, Madhya Pradesh, Maharashtra, Orissa and West Bengal.

113
[Link]

80
  THIRUMALA MILK

Thirumala Milk Products Private Limited is one of the most popular brands in
South India. It was formed in the year 1996. The brand gained popularity in major
states of India such as Uttar Pradesh, Madhya Pradesh, West Bengal, Karnataka,
Andhra Pradesh, Telangana, Kerala and Tamil Nadu.

The plants of Thirumala are situated between the borders of Andhra Pradesh
and Tamil Nadu. The brand extended its product line by venturing into ice cream
products.

The headquarters of the company is situated in Guntur District of Andhra

Pradesh. The company produces a variety of dairy items such as milk, sweets,
flavoured milk, yoghurt, milk power, butter and ghee. The company sells seven lakh
litres of milk per day, and is the single largest plant in Andhra Pradesh114.

 JERSEY DAIRY

Creamline Dairy Products Limited (CDPL) is one of the major private players
of dairy products in Southern India. The operations of the company spread across
Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Maharashtra. The products
of the company are sold under the brand name ‘Jersey’. The company was established
in the year 1986.

The company has adequate infrastructure facilities at strategic locations. It

owns 42 chilling centres, 84 cooling units and 6 dairy plants. All the dairy units of the
company are ISO 22000 certified. The powder plant of the company is situated in
Ongole and it has been certified by the Export Inspection Agency. The company has
the capacity of selling 9.76 LLPD with the support of 5000 selling agents. In the
financial year 2016-17, the turnover of the company was reported to 1000 plus
crore115.

114
[Link]
115
[Link]

81
CONCLUSION

Studying consumer behaviour is crucial in measuring the life cycle of milk

and milk products. Though the consumers vary in their choice, preference and
attitude, various brands with many product lines find a solution and unearth issues
emerging in the milk markets. High level quality consciousness would hold key to the
complex consumer issues. As milk is a prime food article, it is very essential to
provide proper care on ingredients, package and supply chain aspects in order to cater
to the needs of both individuals and institutions. Only then the sustainability of brands
would become possible in the long run with increased brand loyalty of consumers.
Awareness, knowledge, quality and association of brands must always be promoted in
order to lead the consumers towards making effective purchase decisions with brand
equity.

82