Impact of Brand on Consumer Behavior: A Study on Amazon

Assignment-2
Student Name : Karthik reddy chilukuri
Student Number : 12029956
Subject : Research in Business
Subject Number : BUSN20016
Due Date : 6 June 2018
Campus : Sydney.

Introduction
The aim of this research is to explore the impact of brand on consumer behavior. For this, a
proposal has been prepared highlighting the methods that would be used for conducting the
research. The problem statement has been explored in the current section to identify the key
objectives of the research and a literature study would be conducted and presented in the next
section to identify the constructs that can be used for analyzing the impacts of brand on the
consumer behavior.
Problem Statement
With more and more businesses coming into being, there is high competition in any field of
business in the modern world. In this situation, branding plays a critical role in creating
awareness which gives an edge to a brand over competition as the customer is able to recognize
the product. Moreover, stronger brands not just create awareness and recognition but also bring
loyalty in their customers so that customers have preferences for them. The loyalty of a customer
towards a brand can have a significant influence on the buyer’s behavior. However, building a
loyal customer base requires creation of a strong image in a market. This can be built by shaping
experiences of customers in such a way that they start to value the brand and its services. For
organizations planning to create a brand or making their brand stronger, it is very important to
understand how brands create impact on consumer behavior as the insights can help them plan
their branding strategies to support their business objectives by getting them customer loyalty.
This study would make an attempt to understand how brands can create impact on the consumers
today.
Aims and objectives of research

The aim of this research is to understand the impact of branding on the consumer behavior. To
achieve this aim, following questions are needed to be answered in the research:
 How closely are brands and the consumer behavior related?
 What are various strategies which can be used by the organizations to make brand
popular among people
 How brand image helps in increasing the brand loyalty
 What is the relationship of brand image and customer satisfaction?
Based on these research questions, following research objectives can be formulated:
 Understanding relationship between branding and consumer behavior
 Explore branding strategies used by popular organizations
 Understanding loyalty and the impact of brand on loyalty
 Understanding the impact of brand image on customer satisfaction
Literature review
For understanding brand, a number of constructs may be studied here as they can explain a
brand. These include brand image, customer satisfaction, brand loyalty, and brand equity. For
understand the consumer side, customer satisfaction, brand loyalty, and brand equity would be
the important constructs to study. In this section, the past literature on the subject is explored to
understand these constructions and the connection between them so that the objective of
exploring the impact of brand on consumer behavior can be studied.
A concept of brand has been explained by the American Marketing Association that defines a
brand as a construct including name, symbol, term, design or any combination of these that is

used for identifying services or goods of a seller or a group of sellers so that they are
differentiated from their competition. The brand image makes the common perception that
affects the purchases by consumers and create an influence towards the brand with a stronger
image as compared to competition. Thus, branding can be understood by studying the concept of
brand image and related constructs (Myllärniemi, 2015).
Brand Image
Brand Image is defined by Kotler as "the set of beliefs, ideas, and impression that a person holds
regarding an object" and Keller as "a set of perceptions about a brand as reflected by brand associations
in consumer's memory". Brand image is the perception that is formed in a consumers mind while
making a purchase of a product or a service about the associated brand. If the purchase of a
customer is satisfactory, there is a higher probability of shaping a good brand image in the
consumer mind. Customer satisfaction also influences the loyalty of the customer towards the
brand. A strong correlation exists between the brand image and the intention of a buyer towards
the development of loyalty. Customer satisfaction can also be seen as the benchmark for the
measurement of customer loyalty as a satisfied customer is more likely to display loyalty towards
a brand. Establishment of the brand image is one of the most important function of marketing.
People do not make purchases just for the product and associated attributes they have but also for
some psychological benefits such as the feeling high self-esteem. Product performance also
shapes the brand image. Consumers have both cultural and social values attached to a brand.
Customer Satisfaction
Customer satisfaction is one of the key factors that determine the loyalty for a brand in a
customer. It is influenced by the expectations and experiences of the customers with the services