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Submitted to:
Dr. Dayakar.Rao
CEO, Nutrihub
Principal scientist, IIMR
Abstract
The objective of this study is to determine role of branding, labelling and packaging on consumer’s buying
behavior. The purpose of this research is to examine the essential factors, that are driving the success of a
brand. This primary research data has been collected through questionnaire for analysis R software has
been used. The questionnaire studies brand loyalty, brand perception, brand values and brand quality
which are the major aspects of consumer buying behavior. Hence in this study a sample of 109 respondents
has been collected for testing the reliability of the model. According to the finding of the research study,
it has been observed that the branding, labelling and packaging are important factors which affect the
consumer buying behavior.
Introduction:
Branding is the set of activities designed to create a brand and position it in the minds of consumers.
Another set of questions to consider involves the packaging on which a brand’s marks and name will be
prominently displayed. Sometimes the package itself is part of the brand. Label is a part of product which
carries verbal information about the product or seller it may be a small slip or printed statement. This
report is about the impact of branding, labelling and packaging on consumer buying behavior. Brand
awareness is a very important factor. It refers to the extent to which customers are able to recall or
recognize a brand. Brand awareness is a key consideration in consumer behavior, advertising
management, brand management and strategy development. Today, if the consumer is aware of the
product, then he is more likely to buy the product. The major factors which affect the consumers buying
behavior are the branding of the product and how it appeals to them. Hence, the purpose of this study is
to analyze the impacts of gender, field of education, and consumption of the product, on consumers buying
behavior. So, good branding, labelling and packaging basically leads to arousal of emotions and we can
say that branding influences the behavior of consumers and consumers behave in response according to
various dimensions of consumer behavior.
Here, we will examine those dimensions of consumer behavior which influence them in selecting a
branded product. We will try to explicitly establish a relationship between branding and consumer buying
behavior. In this paper, we will try to use the Aaker’s brand equity model and Keller’s customer-based
brand equity model which consider the consumer perceptions and their buying decisions basis on the
evaluation of their knowledge about brand, their association with specific brands and how the purchase
will affect them if they purchase a recognized brand [1][2]. Hence, we try to develop a complete and brief
model of qualitative and quantitative variables at same time analyze their connection with each other. Also
look how they are playing a role in order to achieve the ultimate goal, that is to increase profit. Qualitative
variables are those which show the attachment of consumers with brands and at the last behavioral
outcome variables that are related to consumer’s reaction or purchase behavior in light of above two
variables [3]. Innovation is to bring or create something new in market which is totally or slightly different
from the existing one. It is also found that the process of merger and acquisition leads to innovation in
business. Due to which brand is considered more valuable [3]. But in case of luxury vehicles this process
has not been viewed as such beneficial or truly participate in expanding brand market.
Merger and acquisition strategies in automotive industry leads to “brand corrosion” meaning companies
ignore their special attributes in order to gain a large target market. This is not for the purpose of their
brand image, but to increase profit by huge production with less focus on quality perspective and more on
cost saving. There is a difference between the choices of younger and older consumers in consumption of
products or while making purchase related decisions [4]. Here is the question from what age maturity
starts and younger hood ends. According to Nielson and Curry, it is difficult to find out when maturity
comes; at the age of 50, 55, 60 or after 60.
In UK, most of the retailers ignore the younger’s preferences and offer them mass products as it is from
the outlet [5]. In contrast, with mature consumer’s, retailers have more focus on mature market segment
because they enjoy a high level of income which results in high level of consumption. This also helps in
forming strong bonds within the community which affects brand knowledge and image. Therefore, this
market is more valuable for retailers. Children below the age of 15 are being considered a large target
market for different fast-moving consumer goods brands. At that age, their mindsets are forming and they
are exploring their wants and needs and become attached to things that can best satisfy them accordingly.
It is difficult to understand values and preferences at that age, but fortunately now researchers are
beginning to focus on identifying and understanding the buying behaviors and preferences of such
important market segments.
Hence, Branding is important because is it what makes a memorable impression on consumers and, allows
your customers to know what to expect from your company. It is a way of distinguishing yourself from
the competitors and clarifying what it is you offer that makes you the better choice. One of the functions
of packaging within marketing communications is to help in the process of building the brand personality
and to create links with consumers. Marketers conduct various packaging related tests to research on
consumer's preferences toward product and its packaging in order to make suitable change to develop a
market for themselves. Labeling is used for packaging the product. In marketing, a marketer can also use
a sticker inedible products to impart knowledge of the ingredients of the food items. This helps to spread
awareness among the customers about the item they are consuming and to mention ingredients. The paper
therefore focuses on these 3 aspects of marketing to understand the consumer buying behavior better.
1) Branding
2) Labelling
3) Packaging
Objectives:
1) Assess the look and feel of a product and evaluate its impact on the consumer.
2) Evaluating brand reputation and brand awareness based on branding, labelling and packaging.
3) To assess consumer satisfaction and consumer loyalty on the basis of the branding of Nutrihub
incubated start-ups vis-à-vis other millets based brands.
4) To find impact of branding, labelling and packaging on the consumer buying behaviour.
Review of Literature:
The factor which drives consumer behavior varies according to the type of brand the consumer is buying.
Brand loyalty is very important for the success of every type of brand. Consumers can be loyal to a specific
brand according to the dimensions of consumer behavior [6]. Loyal consumers help in gaining a high
market share. To make new customer loyal, it needs to invest five times more cost than to retain the current
and existing consumers. Loyal consumers can provide the competitive edge against competitors which is
a significant factor for success [7][8].
The word loyalty usually refers to association and recognition. When a consumer is loyal to a brand, he
will always prefer that brand upon other brands and will purchase that product for many years. Whenever
he will need to buy a particular product, the same brand which he always buys will come to his mind due
to his attachment and satisfaction which he gains from the brand. With the growing pace of globalization,
competition is increasing and to compete with other brands, innovation is needed.
Brands create the sense of status consciousness in many consumers which leads to the sense of
recognition. Using different brand products is the new trend of fashion. People feel a sense of pride
when they are recognized in society, friends and family because of a specific brand being used by
that person. People nowadays want to have everything branded; from the food they eat, the clothes
they wear to the decoration of their homes. Status and conspicuous consumption are also factors
which affect the consumer behavior.
Consumers now use the expensive and branded products in order to show their status. The brands
which are used for showing off luxury, power, and wealth are known as status brands [9]. The wish
to have a higher status is the factor which compels the people to use brands as a status symbol.
Status brands are brands consumed to show that the person who used it is highly status conscious,
trendy and wealthy. As the desire increases, the usage of brands increases [10].
When branded products are displayed intentionally or shown specifically to people for making them
realize their power and wealth, we can say that it is conspicuous consumption [11]. It means that,
consumers purchase specific products to display their wealth and to showcase their high status. It is a very
important dimension of consumer behavior for influencing their behavior towards brands and also the
impact and power of branding in influencing and molding the consumer behavior.
Brands are mostly used by rich females to show their wealth and status. It has become a trend in
India due to the increasing number of brands, continual change in fashion and the fact that if you
are rich, you cannot buy unbranded products [12]. It is further argued that status consumption and
conspicuous consumption are related to each other, with status consumption being the reason of
conspicuous consumption [13].
Consumers should have brand awareness. It basically includes awareness of brand and the information or
image of brand in the mind of consumers. Awareness of brands help consumers to recall the brands easily
and it creates a positive image about the brand in their mind. Awareness of brand leads to the creation of
brand image in consumer’s mind which helps in future purchases of the same product. Brand image is
basically the association and attachment of consumer with the brand [14].
Whenever thought about, the image of brand means how the brand looks and its usage comes to the mind.
On the other hand, relationship of consumers with brands has significant effect on consumer behavior
[15]. Relationship with the brands is built through trust and satisfaction provided by the brand to
consumers which leads to the attachment with the brand. So, for creating a long-term relationship with
brands, attachment and association with the brand is necessary because these are the variables that affect
the current and future purchases of consumers. Association with a brand also helps the consumer in saving
the switching cost.
It is said that consumer’s behavior towards branded products or services are according to their age, gender
and personality traits and people get social according to their personality traits. The research explicated
that individuals behave differently towards the same brand according to their gender. Therefore, gender is
the basis of determining the consumer behavior [17].
It is explored that females are more innovative, enthusiastic and interested in the fashion industry and are
open to getting introduced to new brands than males. Women feel proud in showing off and displaying
their wealth, power and status. In India, females show off their branded clothes for making others
realize that they belong to a higher status [18][19]. So, people show different behaviors towards
different brands according to their gender.
It is found that the growing age and the loyalty factor have a direct link [20]. It is proposed that consumers
tend to become more loyal to brands with their growing age [21]. But the attitude towards purchasing is
almost similar among older and younger age groups because of the factor of low income as both the groups
(younger and older) have a lower income than the middle aged group and due to that they have to bargain
which decreases their loyalty level. The people who are more price conscious (younger and older age
groups), tend to become less loyal than those consumers (middle age groups) who are rich, less concerned
about prices. Due to this, they are compelled to purchase lower priced brands [22].
Middle aged consumers (25 to 44 years old) are found more committed, associated and loyal to brands
[23]. The richer the consumer, the more he is loyal. Thus, we can say that high income and middle age are
indicators of loyal customers. Another driver of consumer purchasing behavior is emotions. The
relationship between brands and emotions is significant. Markets nowadays focus on emotional
exploitation. They try their best to connect their product emotionally to the consumers. Advertisements
are the best way to create an emotional connect between a consumer and a product [24].
When people watch different advertisements like a mother caring about the health of her child by telling
him to use Safeguard to kill germs, then a mother in reality will also try to use the same product for the
safety of her child as she is emotionally exploited and concerned about her child’s health. Another example
is of brands related to the telecom industry. They give the message to ‘stay connected to your loved once’
to the consumers in order to attract them.
It is argued that some brands use the images, videos for arousing the emotions among consumers. These
types of stimuli are known as mood boards because they are directly related to the mood of consumers
[25]. Sometimes a test is written in order to create the connection with the consumers and awareness about
the benefits and pricing of particular brands and it is known as positioning statements.
The relation between choices of brand by consumers according to their personal values is explored.
Childhood is the time when individuals start to recognize their values and try to adjust them in certain
groups of society in which they feel comfortable. Values are personal beliefs and are learnt by individuals
from their elders and the society [26]. They learn these values through a cognitive process and guide
individuals during many situations in their daily life. They are internally embedded in every individual’s
mind. They affect the consumer behavior because consumers buy their products according to their values.
Values create the link between individual and their surrounding environment. According to the means-
end theory, attributes of the products which are selected by consumer lead to the satisfaction of the values.
So, there is a significant relationship between the behavior of consumer in choosing a brand and the
personal values of consumers which are satisfied by the usage of that branded product. Every consumer
has their own reason for choosing their brands. Therefore, the hidden dimensions of consumer behavior
can be found through applying the means-end theory [27].
A major aspect of consumer behavior is the influence of reference groups on it. It is argued that the most
important reference group for consumers is their family, which affects their behavior and attitude towards
brands and also the selection of brands. The reference group includes the purchasing behavior which is
influenced by the reference groups family, friends, neighbors, colleagues etc [28].
Inertia is another factor. Some consumers buy the same brand repeatedly in order to save time; it
is the inertia of saving time which compels and influences the buyers to buy the same brand again
[29].
To examine the consumer behavior of younger and older consumers in relation to the factors like income
or age, degree of loyalty is also influenced by the type of product, importance of product and also the
characteristics of brand. It is proposed that the products like toothpaste which consumers use every day
and for a long time, they rarely think about changing these kinds of products.
Sometimes consumers stay loyal to a brand and avoid switching brands because they want to be
careful about making mistakes and it regulates their buying behavior. It is also found that the
reference groups influence the consumers to choose the type of products which leads to status consumption
and display of wealth and high status which is, conspicuous consumption [30].
The degree to which consumers is influenced by the groups with whom they interact and the wish to
display the brands are the two dimensions of Conspicuous Consumption. Now the products are not
consumed only for the satisfaction and getting benefits, although the branded products are used as the
symbol of high status and richness. The brands have the power to make them others realize the status of
consumers and also what they think about them.
The consumers who use the branded products as status symbol are more involved in being social and
making friends. They like to be known as ‘Social’. Brands help the consumers in letting them know that
people idealize them because of the usage of specific brands [31].
The research methodology used for analysis is a survey by using the questionnaires. Questionnaire was
distributed among 109 people. The questionnaire data was collected at Ratnadeep store (Attapur,
Hyderabad), Ahobilum Millet Cave Restaurant (Hyderabad) and Inorbit Mall (Hyderabad).
QUESTIONNAIRE
Gender
Male Female
Age
18-39 40-59 60+
Education
Less than 10th Intermediate Graduate
Reference group
Family Friends Social media
What are the top brands you can think of which have millet products?
Q1) How likely are you to switch to another brand if this alternative was cheaper?
Most likely Likely neutral Not likely Never
Q4) How likely are you to purchase one of our products in the next 30 days?
Most likely Likely neutral Not likely Never
Q6) How would you describe your level of emotional attachment to the brand?
Very strong Strong neutral Minimum None
Q9) How much does the color of product affect your thought of buying the product?
Very much Sometimes neutral Not so much Not at all
Q10) Do you think highlighting benefits of the product on the cover make you buy the product?
Very much Sometimes neutral Not so much Not at all
Q14) The labelling should have a focus on Social, cultural and nutritional values.
Strongly agree Agree neutral Disagree Strongly disagree
Q15) Advertisements with an emotional angle will have a better connect with consumers.
Strongly agree Agree neutral Disagree Strongly disagree
Name:
Contact:
Then, R programming language was used to calculate the summary statistics and plot the boxplots for easy
interpretations of the data.
library(readxl)
dat1<- read_excel("C:/Users/gmrau/Desktop/efa3.xls")
dat1$Gender<-factor(dat1$Gender)
boxplot(dat1$BL~dat1$Gender,data=dat1,xlab="GENDER",ylab="loyalty")
boxplot(dat1$BL~dat1$Age,data=dat1,xlab="AGE",ylab="loyalty")
boxplot(dat1$BL~dat1$brand,data=dat1,xlab="BRAND",ylab="loyalty")
boxplot(dat1$BP~dat1$Gender,data=dat1,xlab="GENDER",ylab="brand appearence")
boxplot(dat1$BP~dat1$Age,data=dat1,xlab="AGE",ylab="brand appearence")
boxplot(dat1$BP~dat1$brand,data=dat1,xlab="BRANDS",ylab="brand appearence")
boxplot(dat1$BV~dat1$Gender,data=dat1,xlab="GENDER",ylab="Brand value")
boxplot(dat1$BV~dat1$Age,data=dat1,xlab="AGE",ylab="Brand value")
boxplot(dat1$BV~dat1$brand,data=dat1,xlab="BRANDS",ylab="Brand value")
boxplot(dat1$BQ~dat1$Gender,data=dat1,xlab="GENDER",ylab="Brand qualtiy")
boxplot(dat1$BQ~dat1$Age,data=dat1,xlab="AGE",ylab="Brand qualtiy")
boxplot(dat1$aware~dat1$brand,data=dat1,xlab="BRANDS",ylab="AWARENESS")
boxplot(dat1$BQ~dat1$brand,data=dat1,xlab="BRANDS",ylab="Brand qualtiy")
Mean ratings for each question categorized by group gender, age and brands
24 Health
Innerbeing Ratnadeep Soulful
mantra sutra
male female 18-39 40-59
BL1 2.94 2.89 2.78 3.20 3.14 2.50 2.90 3.06 2.94
BL2 3.60 3.67 3.56 3.79 3.79 3.50 3.24 4.00 3.81
BL3 3.60 3.49 3.6 3.4 3.71 3.50 3.33 3.56 3.69
BL4 4.10 3.91 3.97 4.05 4.00 4.06 3.71 4.25 3.94
BL5 3.40 3.30 3.33 3.38 3.64 3.28 3.19 3.44 3.25
BP1 3.79 3.68 3.72 3.76 3.50 3.89 3.86 3.75 4.06
BP2 3.58 3.32 3.54 3.20 3.07 3.28 4.00 3.00 4.13
BP3 3.60 3.33 3.54 3.26 3.29 3.39 3.71 3.13 4.00
BP4 3.79 3.77 3.77 3.79 3.43 3.89 3.90 3.56 4.06
BP5 3.40 3.46 3.48 3.32 3.71 3.22 3.62 3.31 3.50
BV1 3.90 3.74 3.76 3.94 3.79 3.72 3.52 4.25 4.13
BV2 3.92 3.88 3.98 3.70 3.64 3.94 3.86 4.00 4.00
BV3 3.29 3.37 3.34 3.29 3.21 3.11 3.38 3.63 3.38
BV4 3.50 3.37 3.42 3.44 3.21 3.33 3.33 3.56 3.50
BV5 3.52 3.32 3.34 3.55 3.43 3.44 2.95 3.50 3.88
BQ1 3.50 3.51 3.58 3.32 3.79 3.22 3.43 3.38 3.44
BQ2 3.60 3.61 3.62 3.55 3.50 3.44 3.76 3.63 3.44
BQ3 3.63 3.42 3.53 3.55 3.57 3.44 3.81 3.38 3.56
BQ4 3.50 3.53 3.54 3.44 3.57 3.78 3.33 3.44 3.56
BQ5 3.69 3.60 3.62 3.67 3.36 3.78 3.52 3.75 3.63
Mean ratings for aspects of Consumer Buying Behavior categorized by Gender, age
and Brands
The above table displays mean ratings for brand Loyalty(BL), brand Perception(BP), brand Value(BV) and brand
Quality(BQ) which together measure the Consumers buying Behavior.
The questions BL1 to BL5 evaluate brand loyalty of the respondents and the table results show
that in category Gender Male are more Loyal. In the age category respondents of age 40-59
are more loyal. In the Brand category respondents of 24 mantra and Ratnadeep are more
Brand Loyal.
The questions BP1 to BP5 evaluate brand perception(appearance) of the respondents and the
table results show that in category Gender, Male are more affected by appearance of product.
In the age category respondents of age 18-39 are affected more by the appearance. In the
Brand Category Soulful has highest rating for brand appearance.
The questions BV1 to BV5 evaluate brand values(socio-economic) of the respondents and the
table results show that in category Gender, male and female both are affected equally by the
brand values. In the age category respondents of age 18-39 are affected more by the brand
values displayed. In the Brand category brands ratnadeep and soulful have highest rating for
display of brand values.
The questions BQ1 to BQ5 evaluate brand quality of the respondents and the table results
show that in category Gender, male and female both are affected equally by the brand quality.
In the age category respondents of both categories are affected equally by the brand quality.
In the Brand category all Brands have almost equal rating for brand quality (packaging, taste,
labelling).
Regression analysis (Brands are fitted with 24 mantra as reference)
R programming Codes:
library(readxl)
dat1<- read_excel("C:/Users/gmrau/Desktop/efa3.xls")
names(dat1)
attach(dat1)
fit<- lm(dat1$BL~dat1$Gender+dat1$Age+Education+dat1$HS+dat1$IB+dat1$RT+dat1$SF+dat1$other,
data = dat1)
summary(fit)
fit1<-
lm(dat1$BP~dat1$Gender+dat1$Age+Education+dat1$HS+dat1$IB+dat1$RT+dat1$SF+dat1$other, data
= dat1)
summary(fit1)
fit2<-
lm(dat1$BV~dat1$Gender+dat1$Age+Education+dat1$HS+dat1$IB+dat1$RT+dat1$SF+dat1$other, data
= dat1)
summary(fit2)
fit3<-
lm(dat1$BQ~dat1$Gender+dat1$Age+Education+dat1$HS+dat1$IB+dat1$RT+dat1$SF+dat1$other, data
= dat1)
summary(fit3)
CODE OUTPUT:
Estimate Std. Error t value Pr(>|t|) The p value is not significant for Gender,
(Intercept) 3.80276 0.23389 16.259 <2e-16 *** Age, Education and any brand.
dat1$Gender 0.10366 0.10283 1.008 0.316
This explains that effect of Brand
dat1$Age -0.15339 0.12082 -1.27 0.207
Quality does not vary with Gender,
Education -0.22015 0.2013 -1.094 0.277
Age, Education.
dat1$HS -0.30398 0.26506 -1.147 0.254
Quality of various brands is almost
dat1$IB -0.14319 0.18422 -0.777 0.439
similar to that of 24 Mantra products.
dat1$RT 0.02861 0.17767 0.161 0.872
dat1$SF -0.07135 0.17448 -0.409 0.683
dat1$other 0.03247 0.1635 0.199 0.843
Results and Inference
A. Brand loyalty- Men are more brand loyal and it also dependent on the age group
The results of the summary statistics suggest that men seem to be more loyal than the female.
The age category of 40-59 seems to be more loyal than the 18-39 category. It shows that
middle ages people are more loyal to their particular brand. As the age increases, the level of
income decreases which forces the people to switch their branded products. Due to high prices,
they shift towards lower priced brands. Brand loyalty leads to the customer satisfaction which
in turn helps in creating the trust and commitment towards specific brands among consumers.
1. 24 mantra
2. Ratnadeep
3. Soulful
4. Health sutra
5. Inner being
B. Men tend to buy more based on the appearance and the age category of 18-39 is affected
most by the appearance of product
The buying tendency of the male gender is affected more by the brand appearance and the
buying tendency of the female gender is affected more by the emotional exploitation of
advertisements or packaging. The age category of 18-39 is more affected by the brand
appearance.
Ranking brand appearance of studied brands-
1. Soulful
2. Innerbeing
3. HealthsSutra
4. 24 Mantra
5. Ratnadeep
C. Both genders are affected equally by the values displayed by the brands in their branding
packaging and labelling.
The buying tendency of both genders is affected equally by the social and cultural values
displayed through the branding, packaging and labelling of the product.
Both age categories, 18-39 and 40-59, are also affected equally by the display of socio-economic
values in branding. This involves value for money, value for culture and value for social issues.
Ranking display of brand values of studied brands-
1. Ratnadeep
2. Soulful
3. Healthsutra
4. 24 Mantra
5. Innerbeing
D. The Brand quality affects both gender and age group equally
The buying tendency of both genders is affected equally by the quality of packaging and
labelling. Both age categories of 18-39 and 40- 59 are equally affected by the quality.
It is therefore concluded that branding has a great impact on consumer buying behavior. Future researches
should be conducted for evaluating the impact of consumer behavior on brands.
Things to focus on for Brands:
All companies have average quality ratings hence, the companies should try to maintain quality and
make improvements where necessary.
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