Branding Experiences and Consumer Purchase Decisions in FMCG, the effect of branding on consumer purchase decision in fact goods and durable goods. The discussion covered consumer perception of branded and non-branded goods, the impact of marketing on the consumer experience and the relationship between marketing and branding in business. In this, we will deal with some more details related to branding and consumer experience. How is branding impacted by marketing? How do we measure the impact of marketing on the consumer experience?
Branding is often perceived as an external force that produces a change in people's attitudes and choices without their control. The process of brand creation and the attitudes it inspires can create substantial changes in people's experience of purchasing decisions in FMCG. How do we measure the effectiveness of branding in creating change? Does it differ from consumer attitudes towards brand names and brands? And if it does, how does it affect the FMCG consumer spending decision?
Branding is sometimes thought to be the driving force behind consumer attitudes towards FMCG branded products. Marketing can be seen as a more indirect driver of consumer attitudes. Marketing research has identified strong relationships between marketing and brand energy, especially across firms in different industry segments (e.g., FMCG, retail, and office equipment). These relationships are revealed when looking at the effect of branding on consumer purchase in terms of change in brand name perceptions, loyalty and other important characteristics associated with purchasing decisions. Below I identify the four main channels through which branding drives consumer attitudes and buying behavior.
Branding creates an emotional reaction in many people in the direction of one of the four main drivers of consumer attitudes towards FMCG products. The first driver is the sub-objective of promoting the image of the firm. For example, in food and grocery retailing, the primary motivation is to promote product excellence, which provides customers with a better buying experience. The second driver is the positive benefits of brand name recognition and thirdly, the recognition that consumers gain by having been associated with a brand name.
When assessing the effect of branding on consumer attitudes and buying behavior, it is important to consider the different ways in which branding differs from traditional marketing practices. One common way in which branding differs from marketing is in its ability to position a firm as an innovator, as described by Halliday and Griffiths (1990). They argue that branding enables firms to position themselves as the "newer" firm in the marketplace, by offering something new and different, in comparison to what existing firms have to offer. By positioning firms as innovators, or at least the manufacturers of innovative products, marketers imply that firms have a responsibility to their customers to provide the latest products, and these products must meet certain standards. This in turn helps to foster brand preference, where consumers have a high expectation of being provided with a new product that meets all their expectations, as well as satisfying their needs.
A key question that arises from this analysis is how does brand energy relates to brand preference and attitude. In FMCG marketing analysis studies, the brand energy or attitude of a customer is explored using two main channels - direct and indirect channels. Direct channels refer to FMCG marketing campaigns and promotional activities, whereas indirect channels refer to the existence and impact of consumer attitudes and purchasing behaviors. It is found that there is a strong negative correlation between brand energy and brand attitude, with stronger correlation for firms operating in the services sector, where there is a greater concentration on service quality and perceived urgency of purchasing.
The importance of brand identity in consumer perceptions has also been explored using a different methodology, that of elicitation. Appraisal of goods and services is carried out using a series of qualitative questionnaires and qualitative merchandise surveys. Questions relating to brand name, perceived promise, perceived benefits, brand image and profitability are included in these surveys. Using elicitation techniques, it is found that firms tend to overestimate consumer acceptance of sub-type of goods, which results in a shift in strategy towards selling more of the same type of sub-type of branded goods. Such a behavior is contrary to the objectives of FMCG advertising initiatives, where the main objective is to sell branded and targeted goods to customers, regardless of their purchasing preferences.
When we analyze consumer purchase decisions in terms of brand preference and attitude, it is clear that FMCG firms have a strong advantage when compared to other competitors. Comparing brand preference and attitude directly with sales is however difficult, as there are many other important factors affecting consumer attitudes towards various brands. However, to understand the impact of brand preference and attitude, it is useful to relate these factors with conventional marketing research and analysis. Using this approach, it is found that FMCG firms tend to respond to consumer demand by offering new products and/or services that are related to the core strengths of their brands. For example, while offering television sets that are powerful, reliable, stylish and affordable, they also offer books that are interesting, educational, challenging and inspiring. Such marketing programs help firms in building loyalty and following by strengthening their brand preference and attitudes, all of which are crucial for enhancing sales.