Investigating Nike's Branding Impact on Customer Buying Behavior

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This report investigates the impact of branding on customer buying behavior within the UK retail sector, using Nike as a case study. It explores the core concepts of branding and consumer buying behavior, analyzes the positive and negative influences of branding strategies, and examines the challenges faced by companies like Nike. The literature review synthesizes the views of various authors on branding's role in marketing and its impact on consumer decisions. The research methodology focuses on secondary research, particularly qualitative analysis. The data analysis section interprets the findings, and the conclusion summarizes the key insights. The report concludes with recommendations for improving branding strategies to enhance consumer buying behavior, emphasizing the importance of adapting to changing consumer needs and preferences. The report also covers challenges like consumer loyalty, brand management costs, and the influence of branding on consumer knowledge and company goodwill. The report aims to provide a comprehensive understanding of branding's impact in a competitive market, offering insights for effective brand management.
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TO INVESTIGATE THE
IMPACT OF BRANDING ON
CUSTOMER BUYING
BEHAVIOUR WITHIN UK
RETAIL SECTOR
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ACKNOWLEDGEMENT
I might want to recognize all the individuals who assumed basic part in my scholarly
accomplishment. Initially, I might want to thank my folks who have offered a successful help
with their adoration and appropriate arrangement. Without them I couldn't ever have reached to
my present position and level of progress. Further I might want to thank my panel individuals
who have given great and powerful counsel and direction through entire of exploration.
Thank you
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EXECUTIVE SUMMARY
Branding is defined as a tool of marketing with help of which the company tries to promote the
product and service of company in high competitive market. This is very important for
companies to make use of effective branding strategy as this will assist the company in managing
the business in effective and efficient manner. The present report is based over company Nike
which is an American multination company dealing in sales and marketing of sports product,
footwear, apparel and related accessories and equipment. the current research included the
literature review section in which viewpoint of different authors relating to the concept and
impact that is positive and negative impact of branding over the company and the buying
behaviour of consumers. Furthermore, with help of research methodology section it was seen
that secondary research under qualitative type of research is more beneficial for the researcher. in
the end after concluding the result, some recommendation were made like use of infographic,
social media contest and many others strategies for improving branding.
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Table of Contents
Table of Contents.............................................................................................................................4
INTRODUCTION...........................................................................................................................5
Background.................................................................................................................................5
Aim and objectives......................................................................................................................5
Rationale.....................................................................................................................................6
Structure of report.......................................................................................................................6
LITERATURE REVIEW................................................................................................................8
RESEARCH METHODOLOGY...................................................................................................12
DATA ANALYSIS........................................................................................................................15
CONCLUSION..............................................................................................................................21
RECOMMENDATION.................................................................................................................22
REFERENCES..............................................................................................................................24
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Topic- “To investigate the impact of branding on customer buying behaviour within UK retail
sector.”
INTRODUCTION
Background
Branding is a marketing practice with help of which the company try to create a symbol
or design for the company to identify itself with that symbol only. For the company to be
successful it is very important for the company to have effective branding strategy which will
assist the company in securing a competitive position in the highly competitive market. The
current report is based over company Nike which is a multinational corporation founded in 1964
by Bill Bowerman and Phil Knight. The current research will outline that how branding of Nike
has a positive or negative impact over the buying behaviour of the consumers. Further this
discussion will also list out the different challenges which the company faces in order to attract
the buying behaviour of the consumers.
Aim and objectives
Aim
“To examine the impact which branding has on buying behaviour of consumer. A study on
Nike.”
Objectives
To articulate knowledge relating to branding and buying behaviour of consumer.
To analyse the positive and negative influence of branding over the consumer buying
behaviour.
To examine the various challenges which Nike faces in order to attract buying behaviour
of consumers.
To recommend some of the strategies through which Nike can improve is branding in
order to improve consumer buying behaviour.
Research questions1. What is the concept of buying behaviour and branding?2. What are the positive and negative influence of branding with respect to consumer
buying behaviour?
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3. What are the different challenges which the company face while using branding for
attracting behaviour of consumer?4. What are the major suggestions for company in improving branding for the purpose of
enhancing buying behaviour of consumers?
Rationale
The major reason for the selection of branding as a research topic is that the competition
in the current market is very high and if the company will not effectively make use of branding
then it might lose its competitive position. Further another major reason for the selection of this
as topic of study is the personal and academic interest of the researcher themselves.
Structure of report
Chapter 1- Introduction
This chapter will highlight the aim and objective of the study and the rationale of selecting the
research topic. This also includes the basic overview of the topic and the things which will be
done in the report.
Chapter 2- Literature review
This is the chapter which highlights the views of different authors and writers relating to the
branding and the impact over the consumer buying behaviour. This will include the complete
analysis of the research topic with views of different authors.
Chapter 3- Research methodology
Under this chapter the list of different methods used for the completion of the research in
successful manner are listed. This is particularly because of the reason that this chapter includes
methods like research type, approach, philosophy and other data.
Chapter 4- Data analysis
Under this chapter the use of secondary source of analysis will be used in order to analyse the
collected data. This will provide the view to the reader that what are the findings of the data
collected.
Chapter 5- Conclusion
With this chapter the researcher will provide a brief conclusion that what all findings have been
found from the study. All the finding will be highlighted in very brief manner so that the reader
gets an idea about what need to be done.
Chapter 6- Recommendation
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In this chapter the future recommendation will be made in order to improve the branding
strategies of company. This is essential because of the reason that this will assist the company in
identifying ways in which they can improve the branding strategy.
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LITERATURE REVIEW
Theme 1- Articulating knowledge relating to concept of branding and consumer buying
behaviour.
With reference to the views of Ashraf, Naeem and Shahzadi (2017) branding is a tool of
marketing the product and services of the company in the highly competitive market. Use of
branding is very important and critical for the company as this will assist the company in
improving its market position in the highly competitive market. In general, the brand involves
making or using a symbol or design so that the consumer can remember the company by that
brand or the logo.
On the other side Raj and Aithal (2018) argues that the buying behaviour of consumer is
defined as the series of steps or action taken by the consumer before they buy the product and
services of the company. This process includes making use of different types of resources both
online and offline. The consumer goes through a process under which they analyse the fact that
whether the product and service of the company is good for them or not.
Further on the other side Figueiredo and Eiriz (2020) states that the branding has a great
impact over the working and the guiding of the buying behaviour of the consumer. This is
majorly because of the reason that if the branding of the company and its product and services is
good then this will have a positive impact over the buying behaviour of the consumer. Further in
contrast to this if the branding is not good the then this will negatively impact the working of the
company and the behaviour of the consumers.
Theme 2- Positive and negative impact of branding over the buying behaviour of consumers.
As per the views of Diallo, Moulins and Roux (2020) with the help of branding there are
many different types of impact both positive and negative. This is majorly because of the reason
that when the branding of the company is effective then this will have a positive impact over the
buying behaviour of the consumer. On the other side if the branding strategy is not good then this
will have a negative impact over the buying behaviour of the consumers.
As per the views of Kumar, Konar and Balasubramanian (2020) the major positive
impact of proper branding over the consumer buying behaviour is that this attracts a majority of
the consumers. The major reason underlying this fact is that when the company uses effective
branding practices then the consumer will know that fact that what services the company is
providing and how this is helpful for the person. In order to brand the product and services of
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company the company list out all the benefits of the product and services. Thus, this attracts the
attention of the consumer and this direct their behaviour in the direction of buying that product or
the service.
In against of this Liu, Zhang and Zhang (2020) argues that the major negative aspect of
using branding is that if the tool of branding is not used in proper and effective manner then this
may lead to heavy losses for the company. This is particularly because of the reason that when
the company branding is not clearly understandable by the consumer then it might be possible
that they might misunderstand the product or service. Thus, this can lead to negative impact over
the consumer buying the product or the service and this will result in consumer getting distracted
away from the company and its product and services.
On the contradictory side Vuong and Khanh Giao (2020) criticizes the fact by saying that
the use of branding is assistive in increasing the knowledge of the consumer which in turn
increases the goodwill of the company. The major reason underlying this fact is that when the
company effectively uses the branding strategy then they are in position of attracting more of the
consumers. Further this will increase the interest of the consumer towards the company as they
will like the branding of the company.
But in contrast to this Araujo and et.al., (2020) disagrees that if the branding of the
company is not effective then this will increase the negative publicity of the company. This is
particularly because of the reason that if the branding involves any such line which affects the
thinking of the company then this will have created a negative image of company among the
employees. Further this will increase the negative image of the company among the company is
one consumer does not like the branding strategy. Hence, this will direct the buying behaviour of
the consumer in negative aspect as they will get carried away with the negative publicity of the
company and will not buy the product and services of company.
On the flip side Chin, Isa and Alodin (2020) articulates that the major positive impact of
branding over the consumer buying behaviour is that this will increase the consumer loyalty for
the company. The major reason for this is that when the branding will be effective then this will
attract a majority of the consumers and this will make them stay loyal to the company for a
longer period of time.
On the flip side Ting, Abbasi and Ahmed (2020) argues that another major negative
aspect of branding over the buying behaviour of consumers. The major negative impact is that if
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the company is not able to manage all the branding for a longer period of time then this will have
a negative impact over the working of company. The major reason for this is that managing the
brand in the market is very expensive and if the company is not able to manage the brand for a
longer then this will negatively impact the consumer buying behaviour, and they will not get
attracted towards the company and its product and services.
Theme 3- Different types of challenges which company faces at time of using branding in
affecting the consumer buying behaviour.
As per the thinking of Almohaimmeed (2020) there are many different types of
challenges which the company face in order to make effective use of the branding strategy in
attracting costumer. The biggest challenge is that the need and preferences of consumer keeps on
changing and if these will not be included in the branding strategy then this will distract the
consumer, and they will not like to buy the product and services.
On the contrary side Dhaliwal, Singh and Paul (2020) argues that the major type of
challenge which the company faces in order to use the branding strategy is that this will increase
the cost of the company to a great extent. The major reason for this is that when the company
will make use of branding then they have to invest huge amount of money in the branding and
this will affect the financial position of the company to a great extent. Further when the company
makes the use of branding then this will also involve hiring of some external person in order to
make effective use of the branding. This hiring of the external person will also add in the cost of
the company.
In contrast to this Kim (2019) criticizes the fact that another major challenge which the
company faces at the time of the branding in order to direct the consumer buying behaviour is
the continuous changes in the preference and trends of the consumers. This is the biggest
challenge as when the company uses branding and if they do not involve the use of the latest
trend in the branding then this will not attract the consumer. Thus, their buying behaviour will
not be affected by the branding strategy of company, and they will not be motivated in order to
buy the product or service of the company. Further this will create a negative impact over the
consumer buying behaviour of the company.
In addition to this Valaei and Nikhashemi (2017) argues that the major challenge which
the company face in branding effectively is that there are also many changes in the technology.
Thus, if the company does not make effective use of the latest technology within the branding
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strategy then this will create a challenge in impacting the consumer buying behaviour to a great
extent. Further if the company makes use of excess of technology then also it might create a
negative impact over the consumer buying behaviour. The major reason underlying this fact is
that excess of technology will not be understood by the consumer and this will distract them
from buying the products and services.
Furthermore, Vijayalakshmi and et.al, (2020) disagrees that the major challenge which
the company faces in attracting the buying behaviour of the consumer is that every consumer has
their own need and requirement. Thus, for this the company has to make such a branding strategy
that it covers the requirement of majority of the consumer. This is essential because of the reason
that if the company does not cover every segment of the consumer then the market share of
company will decrease. Thus, for this the major requirement of the company is that they must
focus on the need of all the different groups of consumer and cover them in the branding
strategy.
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RESEARCH METHODOLOGY
Research type- the type of research is defined as the method or the series of steps through
which the whole research is being completed. This is particularly essential for the researcher to
select the appropriate type of research as if the type is not good then this will not result in better
outcome of research. There are two different types of research types that is qualitative and
quantitative research (Mohajan, 2018). Under the qualitative type of research, the researcher
makes the use of attributes and non- numeric facts and figures for the analysis of research topic.
On the flip side the quantitative type of research is the one which includes the analysis of facts
and figures relating to research topic. For the completion of present research over impact of
branding over consumer buying behaviour is use of qualitative type of research. This is
particularly used as this helped the researcher in developing their knowledge to a great extent
with help of this type of research.
Design of research- the research design is defined as the overall strategy used for the
integration of different aspect of the research to complete the research in successful manner. The
design of the research is referred to as the blueprint of the whole process or the series of steps
which will be followed within the completion of the whole research in successful manner. The
design for the research are generally of two types that is descriptive and experimental. Under the
descriptive design the use of many data in form of case studies, observation is used. In contrast
to this in experimental research the use of experiment are made to reach to some conclusion.
Hence, for the completion of the research over impact of branding on consumer buying
behaviour is the use of descriptive research as this will assist in detailed analysis of the research
topic.
Approach for research- the approach for the research is defined as the procedures which
includes the assumption behind the selection of the various methods of the research. These are
the assumption which underlies the selection of all the different methods of research such as
collection of data, its analysis and all other methods. The approach is of two type that is
inductive and deductive (Dodds and Hess, 2020). The inductive is related to the framing of aim
an objective relating to research topic whereas deductive relates with the formulation of research
hypothesis. Thus, for the completion of the research in successful manner the researcher has used
the inductive approach as this involves the framing of aim and objective relating to the research
topic.
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