The Impact Of Branding On Consumer Purchase Decision In The UAE Retail Industry

Reduced branding negatively impacts customer decision making

Question:

Explain On Branding On Consumer Purchase Decision UAE?

The modern times exhibit significant transformations in the marketing strategies used by companies to become more competitive and ensure their survival in turbulent markets. Customers today are living in a world where product and service purchases are constant and enormous. The success and survival of organizations are reliant on the amount of information which is collected meticulously by companies regarding buying habits of their existing and potential customers. For long term sustenance, firms are interested in building powerful brands which result in enduring customer relations (Iqbal, 2014).

In the cluttered environment of today, customers have become overwhelmed with variety. An average supermarket has nearly 45,000 products. An average buyer purchases nearly 50 products in 50 minutes. Customers, therefore, need to weigh around 900 products every minute (Sharma, 2015).

For obtaining a complete understanding of customer choice, it is important to comprehend the underpinning psychological factors which stimulate those decisions, i.e. the unconscious and conscious elements which impact decision making. Varied branding practices can impact customer choice in myriad ways (Kotler and Keller, 2009). Firstly, branding can impact whether customers notice an item or not, i.e. the level of attention paid to that product. Secondly, branding can also impact whether and how fast customers distinguish a product.

Comprehending this crucial role of branding in consumer purchase decision making is the main issue to be researched in the current study. This study is perfectly timed for two reasons. Firstly, current evolutions in behavioural and brain sciences have grown our comprehension of how the mind collects and stores information and how decisions are made. While in the earlier days, scholars had to depend on questioning customers’ opinions, it is now possible to delve deeper to identify the decision-making process, which the customers are not even conscious of. Secondly, a better comprehension of the impacts of branding on customer purchase decision is especially relevant in light of present legal considerations and public policy. With restrictions on some type of branding and stringent regulations in some categories, companies are keen to know how such modifications will affect their choice and eventually sales. Besides legislation, companies also encounter another threat, i.e. copycat branding. It is still not comprehended how and whether copycat branding influences customer choice.

The present research intends to explore the role of branding using meticulous qualitative and quantitative techniques, underlined by a comprehension of customer decision making. The study will be carried out in relation to the branding of packaged products in the UAE retail industry, Lulu to be specific. The main aim of the present study is to identify the impact of branding on decision making. This impact will be examined in three areas which also form the objectives of this research.

1. To identify the effect of reduced branding on customer decision making and choice – When the level of branding on the packaging is decreased, what influence does it have on decision making?
2. To determine the effect of higher non-branded information on customer decision making and choice – What is the impact of non-branded information, like nutritional information, have on purchase decision?
3. To examine the effect of copycat branding on customer decision making and choice – When a company is almost similar to some renowned brand, does it impact consumer decision?
4. To determine the strategies used by Lulu for branding

Higher non-branded information positively affects customer decision making

H1 – Reduced branding negatively impacts customer decision making

H2 – Higher non-branded information positively affects customer decision making

H3 – Copycat branding negatively impacts customer decision making

H4 – Reference groups, age, emotional exploitation and cultural values and attitudes have a positive impact on purchase decisions.

In accordance with the study of Malik (2013) every brand has its own characteristics for which customers are ready to pay the supreme amount to buy them. In this aspect Solomon (2014) had cited certain characteristics brought up with a brand as it is a product or a blueprint which has its own colour, size, shape and logo, and is expensively and proactively secured by an organization via legal ways. All well-known brands all around the world are protected and secured by law and regulations. It is the trademark which an organization doesn’t operate with. In support of this fact Pappas (2016) had said that a brand contains some category for a targeted audience such as upper and lower category of products in that order. In the same way, there is the brand of Axe deodorant and perfumes particularly for youngsters and the items of angry birds brand for kids.  A brand can also be used for security against financial obligations, and further can be a deal as an asset.

A brand plays a range of importance to the organization as well as the buyers. It is inclusive of the following; branding assists the seller to section markets the best example is Toyota as it offers brands like Scion, Lexus and Toyota brands are supported by sub brands like Matrix, Cruiser, Tundra, Prius, Yaris, and Camry. As per viewpoint of Albert and Merunka (2013) branding assist in adding value to goods and services. Customers attach significance to brands and improve the relationship with the brand. Such as most customers notice a Voltic water bottle as a premium product whiles the same water in another bottle will be considered as an inferior product.  Brands also represent product offerings and class, customers who always buy the similar brand are well known for the quality they get.

In accordance with the study of Pappas (2016) consumer behaviour is driven by many factors but the brand is one of the primary and crucial factors. In support of this argument, the study of () shows that according to the dimensions of consumer behaviour, the consumer may be loyal to a specific brand. The success of any brand depends on brand loyalty as market share is increased with the help of loyal consumers. The cost company has to invest in making new customer loyal is five times more than the cost incurred in retaining the existing and current consumers. The significant factor for success is the competitive edge that loyal consumers can provide consumers.

Copycat branding negatively impacts customer decision making

As per the viewpoint of Raheem and co-authors (2014), association and recognition are two important terms that define loyalty. Consumer Loyalty towards a particular brand means that the individual prefers that brand upon other brands and is buying it for many years.  Due to individual’s attachment and satisfaction from a particular brand, they will constantly buy products of that brand irrespective of price and available options.

In contrary to this Malik and co-authors (2013) states that innovation is a very important factor to compete with the other brands in this growing pace of globalization and competition. In today’s world, the new trend of fashion is the usage of different brand products. In support of this argument, the study of Solomon (2014) states that many consumers brand creates a sense of status consciousness which results in creating a sense of recognition. The connection to a particular brand which is mostly used by a person gives them a sense of pleasure. People are becoming brand conscious in probably all segments. For example, the food they eat, clothes they wear, and even the decorating items displayed at home are branded. So, status and conspicuous consumption are the factors that can affect consumer behaviour.

In this aspect, Iqbal (2014) had stated that the expensive and the branded products are used by the consumers to show their status. Status brands include the brands that show the luxury, power and wealth of the consumer.

Interpretivism research philosophy will be used in the present study. This paradigm will help the researcher in interpreting elements of the research. This philosophy works on the premise that access to reality is possible only via social constructions like instruments, shared meaning, consciousness and language. This paradigm is proposed for adoption because it is important to appreciate the personal, behavioural, cultural and attitudinal differences among customers. In addition to this, such type of a study has a high degree of validity as data collected and analyzed tend to be honest and reliable (Saunders, Lewis and Thornhill, 2012).

Data will be collected through both primary and secondary research. Secondary research will be conducted by going through relevant journals, books, articles, survey results and related publications. Primary data will be collected by conducting interviews with customers visiting Lulu Mall. Non-probability sampling technique will be used given the nature of this research and under that convenience sampling method would be employed. The sample size is proposed to be 45 customers. Convenience sampling will be used not just because of its ease of use, but also because it will allow collecting basic trends and data relevant to the research without any complication of using a random sample. This technique will also help in recognizing any relationship among varied phenomena (Collins, 2010). The data so collected will be analyzed quantitatively as it will provide detailed outcomes.

The main limitation of the study is time. Due to a shortage of time, the sample size will be kept small and the scale of the study will also not be huge. The main ethical aspect required to be considered while collecting primary data is that the respondents should be ensured about the privacy and confidentiality of their information and responses. Moreover, they must be briefed beforehand about the nature and purpose of the study. Resources required for completing the proposed research include time, money, books, journals, the internet, computer and access to online libraries.

Time table and References

Activities/ Time in weeks	1	2	3	4	5	6	7	8	9	10	11	12	13
Formulation of research idea
Analysis of feasibility of research work
Finalization of title
Preparation of draft
Description of research objectives and research questions
Designing a literature review
Conducting primary study through collection of data
Analysis the collected data
Presentation of findings  and conclusions
Proof reading of report
Final submission

References

Albert, N. and Merunka, D., 2013. The role of brand love in consumer-brand relationships. Journal of Consumer Marketing, 30(3), pp.258-266.

Collins, H., 2010. Creative Research: The Theory and Practice of Research for the Creative Industries. AVA Publications.

Iqbal, M., 2014. The Impact of Branding on Consumer Buying Behavior. International Journal of Technology and Research.

Kotler, P. and Keller, K., 2009. Marketing management. 13th Ed. New Jersey: Pearson Prentice Hall.

Malik, M.E., Ghafoor, M.M., Iqbal, H.K., Ali, Q., Hunbal, H., Noman, M. and Ahmad, B., 2013. Impact of brand image and advertisement on consumer buying behavior. World Applied Sciences Journal, 23(1), pp.117-122.

Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.

Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. Impact of product packaging on consumer’s buying behavior. European Journal of Scientific Research, 122(2), pp.125-134.

Saunders, M., Lewis, P. and Thornhill, A., 2012. Research Methods for Business Students. 6th edition. Pearson Education Limited.

Sharma, E., 2015. How Does Branding Impact Consumer Purchase Decisions? [Online]. Available through: <https://www.brandanew.co/how-does-branding-impact-consumer-purchase-decisions/>. [Accessed on 15^th September 2017].

Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.