This document discusses a study on the effect of brand image on consumer purchase behavior of sports shoes brands in the UK, using Nike as a case study. It first reviews literature on concepts like brand awareness, brand preference, and factors that influence consumer preferences. It then discusses how brand experience and associations can develop brand preferences over time. The document also examines the difference between local and international brand images in the UK context, and identifies some pioneer brands in the UK, like Nike, and how they may have longer-term consumer preference advantages.
To study the effect of brand image on consumer purchase behaviour towards sports shoes brands in UK: case study of Nike
1. Title: To study the effect of brand image on consumer purchase behaviour
towards sports shoes brands in UK: case study of Nike
2. 1. Literature Review
The level of familiarity amongst the consumers regarding the availability and life of a product
provided by a particular brand is referred to as awareness of brand. The concept of brand
awareness can be referred to as the consumer being so familiar about a particular brand he or
she prefers that if a particular category of a product or choosing certain brand is mentioned,
then the preferable brand strikes in the mind of the consumer (Morris et al, 2009).
Preferences of consumers can be defined as personal tastes of individuals that can be
understood by the utility of particular goods.
According to Morris et al, 2009, brand preference has a close relation with consumer
preferences as well as brand awareness. This is due to the fact that if a consumer is aware
about a particular brand and these consumers often prefer purchasing and using it, it can be
referred to as the concept of brand preferences. This relation along with the concept of brand
preference shall be studied in detail.
Studies in the past over the preferences on brands have been divided into 2 important
classifications (Schmitt, 2009). A number of researchers have conducted the study by
analysing the factors related to customers that may cause an impact. This consideration had
its focus over the culture impact, society impact, psychology impact and factors of
personalities of the customers (Hsee et al, 2009). Of this group, the main finding illustrated
that preferences of brands can lead towards an alteration being experienced in the style of life
of a customer. The traits of personality of a customer and the beliefs of the customer are
important preferences of brand predicators.
According to Shamoon, et al, (2011), the business of a product and service associated with a
company has an influence on the customers who decide to buy the product or the service.
However, the term brand experience as subjective internal consumer behaviour primarily
evolved through brand associated stimuli that are an aspect of a brand’s environment,
communication, packaging, identity, and design. The formation of brand preference is
considered to be a cumulative process of learning which is primarily evoked with time,
especially in the situation where brand experience is the main source of learning (Shamoon et
al, 2011). Many researchers state that each of the elements of brand experience offers a
primary way in changing the buying decision of a customer and hence plays a crucial role in
the development and determination of the brand preference of different consumers.
According to Armstrong, (2011), the business of Nike considers the brand associations as the
3. information, which includes benefits of consuming a particular brand and attributes of a
brand. The same is closely associated with the memory nodes of an individual. According to
the HAM or human associative theory, brand associations can be developed by either indirect
or direct experiences of consumers (Armstrong 2011). On contrary to this, entrepreneurs
argue that brand associations offer people with significant reasons to develop preference for
the brand and buy the products of that particular brand. Brand associations help the people to
retrieve and process information and lead to attainment of positive benefits (Brakus et al.
2009). Thus, brand experience can be considered as a key source of information that the
people have regarding a particular brand, which, in turn, develop brand preferences.
1.1 Introduction
The preference of consumer brand is an important step for understanding the behaviour
related to the choice of consumers. Hence, this particular step has been receiving huge
attention from the marketers. The preferences of brand contribute in revealing the different
categories related to attributes that are being possessed by the brand that are important for
strengthening the position as well as increasing the share within the market. In addition to
this, it contributes in the formation of a crucial input in the development of a successful
strategy of brand within the organization that provides an insight for the development of the
product. However, the shift being made towards the marketing of experience results in
broadening the role being played by the brand from a number of different combinations
related to attributes towards the experiences. The marketing of experience also has the
tendency of considering both types of assumptions related to the behaviour of consumer that
can be rational as well as irrational. The advancement of technology contributes to increase
the similarities that lie amongst the attributes of brands and the commoditisation of product.
In a consequent manner, preferences of customers cannot be shaped by them amongst the
brands that utilize only the rational attributes. The brands are being approached by the
customers that contributes in the creation of experience that intrigue them in a manner that is
emotional, creative as well as sensorial. The competitiveness of the companies in this type of
a market has hence, ended up becoming extremely difficult. There is a need to build the
advantage of competition for their survival by the delivery of experiences that are
memorable. This results in influencing the brand preferences of the customers and in a
consequent manner contributes in stimulating the purchase decisions of the customers.
4. In the literature of marketing, the traditional forms of models are known to be uni-
dimensional and address the preferences of brand by the cognitive judgement of the customer
related to the attributes of brand on the basis of rationality. The role related to experience is
restricted to the effect of the type to shift the level of preferences. Majority of the previous
studies conducted are partial and create a focus on a single or two antecedents related to the
preferences of brand. Apart from these specific limitations, there has been ignorance of
consequences within the study that contribute in the determination of the decision related to
the purchases being made by the customers.
The level of familiarity amongst the consumers regarding the availability and life of a product
provided by a particular brand is referred to as awareness of brand. The concept of brand
awareness can be referred to as the consumer being so familiar about a particular brand he or
she prefers that if a particular category of a product or choosing certain brand is mentioned,
then the preferable brand strikes in the mind of the consumer (Morris et al, 2009).
Preferences of consumers can be defined as personal tastes of individuals that can be
understood by the utility of particular goods.
According to Morris et al, 2009, brand preference has a close relation with consumer
preferences as well as brand awareness. This is due to the fact that if a consumer is aware
about a particular brand and these consumers often prefer purchasing and using it, it can be
referred to as the concept of brand preferences. This relation along with the concept of brand
preference shall be studied in detail.
Studies in the past over the preferences on brands have been divided into 2 important
classifications (Schmitt, 2009). A number of researchers have conducted the study by
analysing the factors related to customers that may cause an impact. This consideration had
its focus over the culture impact, society impact, psychology impact and factors of
personalities of the customers (Hsee et al, 2009). Of this group, the main finding illustrated
that preferences of brands can lead towards an alteration being experienced in the style of life
of a customer. The traits of personality of a customer and the beliefs of the customer are
important preferences of brand predicators.
According to Shamoon, et al, (2011), the business of a product and service associated with a
company has an influence on the customers who decide to buy the product or the service.
However, the term brand experience as subjective internal consumer behaviour primarily
evolved through brand associated stimuli that are an aspect of a brand’s environment,
5. communication, packaging, identity, and design. The formation of brand preference is
considered to be a cumulative process of learning which is primarily evoked with time,
especially in the situation where brand experience is the main source of learning (Shamoon et
al, 2011). Many researchers state that each of the elements of brand experience offers a
primary way in changing the buying decision of a customer and hence plays a crucial role in
the development and determination of the brand preference of different consumers.
According to Armstrong, (2011), the business of Nike considers the brand associations as the
information, which includes benefits of consuming a particular brand and attributes of a
brand. The same is closely associated with the memory nodes of an individual. According to
the HAM or human associative theory, brand associations can be developed by either indirect
or direct experiences of consumers (Armstrong 2011). On contrary to this, entrepreneurs
argue that brand associations offer people with significant reasons to develop preference for
the brand and buy the products of that particular brand. Brand associations help the people to
retrieve and process information and lead to attainment of positive benefits (Brakus et al.
2009). Thus, brand experience can be considered as a key source of information that the
people have regarding a particular brand, which, in turn, develop brand preferences.
Brand has been identified as a power tool for the attraction of maximum number of customer
for purchasing specific products. In a nation that is highly developed in all dimensions, such
as the United Kingdom, the industry of sports apparel and footwear is one of the most
significant industry that acts as a major contribution within the economy in a substantial
manner. As the decision making of consumers play a major role within the market, it is
crucial for studying how the choices are made by the consumers when these apparels and
accessories are purchased for the evaluation of the impact towards a specific brand within the
market. This is particularly due to the fact that there are a number of other options available
and tough competitions within the industry.
6. 1.2 Brand Image
Malik et al (2013) believe that branding and advertising are great tools by manufacturers to
increase buying of their products. Although marketing may essentially be described as one
that amalgamates a customer’s satisfaction with the company’s overall objectives, branding is
essentially a tool used by the companies to enhance their marketing strategies and objectives.
Consumers are more than happy to pay extra for their favourite brands, even if other brands
offer a similar experience at a cheaper rate. According to Dikempe et al (1997), most
consumers have their chosen brand when it comes to beer, aerated drinks and margarine. .
Ling et al (2002) further adds that customers pay a large premium for their desired brand of
medicines, even though the same compounds may be offered by other pharmaceutical
companies at a comparatively lower price.
1.2.1 Concept of Brand Equity
The writing on brand equity, albeit significant, it is to a great extent divided and uncertain.
Marketers persistently try to support the effect of marketing exercises and this has restored
enthusiasm toward measures of marketing execution. The Marketing Science Institute has
demonstratively set responsibility and rate of profitability of marketing expenditure at the
highest point of its examination needs for 2008-10. Financial measures, for example, deals
and benefit give just halfway pointers of marketing execution because of their recorded
introduction and commonly transient skyline. Elusive, market-based assets then again give a
better understanding of marketing execution, accommodating short- and long haul execution
and additionally spanning marketing and shareholder value. .
Whilst competitors can copy financial and physical assets, intangible assets speak to a more
supportable advantage Brand equity is a key marketing resource which can incite an
interesting and invited relationship separating the bonds between the firm and its stakeholders
(Capron and Hulland 1999; Hunt and Morgan 1995) and supporting long haul purchasing
conduct. Understanding the measurements of brand equity, at that point contributing to
develop this impalpable resource raises aggressive boundaries and drives brand riches (Yoo,
Donthu and Lee 2000). For firms, developing brand equity is a key destination attained
through picking up more good affiliations and emotions among target purchasers (Falkenberg
1996). Past examination built a positive impact of brand equity on: purchaser inclination and
buy expectation (Cobb-Walgren, Ruble, and Donthu 1995); market offer (Agarwal and Rao
1996); purchaser impression of item quality (Dodds, Monroe, and Grewal 1991 ); shareholder
value (Kerin and Sethuraman 1998); purchaser assessments of brand augmentations
7. purchasers price sensitivity and versatility to product harm. Throughout the most recent 15
years, brand equity has ended up more imperative as the way to understanding the goals, the
instruments, and net effect of the all encompassing effect of marketing (Reynolds and Phillips
2005). In this connection, it is not astonishing that measures catching parts of brand equity
have gotten to be a piece of a set of marketing execution markers (Ambler 2003). The
examination of brand equity and its estimation has a wide scope of followers, both scholastic
and expert, that altogether impart what can be portrayed as a "discovery" introduction
(Reynolds and Phillips 2005). Proof of the importance of brand equity for the business world
is the way that there is as of now a noteworthy number of counseling firms (e.g. Interbrand,
WPP, Young & Rubicam and Research International), each with their own restrictive routines
for measuring brand equity (Haigh 1999). In setting up the future exploration plan for brand
administration, Keller and Lehman (2006) obviously recognized brand equity and its
estimation as a noteworthy exploration subject.
1.2.2 Labelling
According to Malik et al (2013) people in society are generally extremely concerned with
their status and hence, buy popular and expensive brands to show off that status. Branding is
an essential tool in the hands of the producers, which, if managed correctly, can lead to
substantial gains. It can be equally useful in terms of attracting new customers as well as
retaining old ones.
Trademarks, logos and images are all part of labelling, which is an essential component of
branding. It is a great distinguishing factor between one product and the other. ..Labelling is
also part of the brand image. An extensive research by Leighton and Bird (2012) infers that
reducing brand value information on a package has a small effect on the customers’
preferences as well as brand recognition. . In a research conducted by London Economics
(2012), they conclude that the packaging imagery helps consumers differentiate between
several brands available in the market.
1.3 Customers and Brand Image Preference in UK
An online research and survey was conducted by London Economics in 2012 with 3000
consumers as the focus group, across a variety of products, including tobacco products such
as cigarettes. The concluded that after removal of the branding on the packets of cigarettes,
customers shifted from the premium brands to cheaper brands. . Their deduction falls in line
8. with several other literature available on branding for example Malik et al (2013), etc. that
customers are willing to pay a premium for their favourite brands. If there was no way to
distinguish one brand from the other, with other things remaining the same, the customers
buying preference changed according to the changes in price. It was also found that since
price would determine the buying choices of the consumers, it would lead to a higher
consumption of products, especially amongst people with fewer financial resources.
1.3.1 Pioneer Brands in the UK
It is believed that some brands outsell others in many markets for a continued period of time,
this is attributed to a theory that is based on a clear “first-movers” advantage. Xerox may be
the best example to this theory. . These first movers are also known as market pioneers. .
Hallmark too is pioneer in various markets. . Another example of a pioneer brand is DuPont,
which is first mover in various markets globally. Pioneer advantage essentially is carried
forward to several years of market dominance by these brands. The concept of Pioneers was
first discovered in the US markets.
However, Rettie Hiller & Alpert (n.d) carry out a similar research in the UK markets, with
concentration on pioneer brands, and hypothesise that
1. Consumers often remember the pioneer brand in a certain product segment.
2. Consumers will remember the pioneer brand more than even the best selling brand in
the product segment.
3. Other things remaining the same, consumers have a preference for the pioneer brand.
4. A pioneer brands rememberance will have a positive result on the buying preference
of the consumer, although their degree of preference may reduce over a period of
time. And,
5. Consumers who successfully recall the pioneer brand have purchased it atleast once.
Through their research, they successfully infer all five hypotheses to be true. Moreover, in
their second hypothesis, consumers remembered the pioneer brand more than the best
selling brand, even in cases where the pioneer brand was not the top selling brand. . In
UK, the pioneer brand name recall as well as the pioneer brand name retreival were found
to be greater than that in the US. (Comparing and )
1.3.2 Local Versus International Brand Image
9. Schuiling and Kapferer (2004) contend that local brands' flexibility and better reaction to
nearby needs, e.g. adaptability of valuing method for particular local markets highlighting a
huge distinction to universal brands, which need cozy associations with nearby markets
(Schuiling and Kapferer, 2004 ). Their exploration on the distinctions found that local brands
have a larger amount of mindfulness (85%) than universal brands (73%) connected by the
quantity of years nearby brands have been in the market (Schuiling and Kapferer, 2004: 105
). Their database uncovered different variables recommending nearby brand advantages, for
instance, as being reliable, dependable, great value, excellent and customary (Table 3 in
Schuiling and Kapferer, 2004: 105
Local brands can make a brand value framework (Chernatony and Dall'olmo Riley, 1998 )
by supporting individual and social values (Engel, 1993; Reynolds and Gutman, 1988 ).
Chernatony and Dall'olmo Riley (1998) contended that Brand Relationship and Brand
Personality (Blackston, 1992) were essential for rehash custom and solid holding, e.g.
Cadwaladers, a nearby Welsh case, give 'different character' and "society" of its terminus
(Jones and Jenkins, 2002: 116 ) and help make a more novel offering suggestion (Haven-
Tang and Jones, 2006 ).
Confirmation exists of group backing for nearby brands to backing, fortify and revitalize
local economy (Boyne, Hall and Williams, 2003 ), making local improvement (Hall,
Kirkpatrick and Mitchell, 2005; Steinmetz, 2010 ) and counteracting "cloning" (Kelly, 2012
). A careful investigation by Patterson et al. (2010) highlights local brand control in Australia.
Shutting 75% of Australian Starbucks, Australians kept on remainning unwavering the their
own particular espresso brand Gloria Jeans.
Schuiling and Kapferer (2004) help nearby brands as the main rival, contending the qualities
and attributes of local business have demonstrated prevalent. They infer that cost is in charge
of local disadvantage, with failure to produce economies of scale. Schuiling and Kapferer
(2004) contend that universal brand improvement advantages from worldwide marketing, e.g.
portfolio improvement, contrasted with nearby brands who need worldwide status. Schuiling
and Kapferer (2004) propose an adjusted blend of local and worldwide brand advancement is
key to whole industry achievement.
10. 1.4 Past researches on Brand perception in UK
1.4.1 Weight Watchers use FlashtalkingWatchers Brand Impact Survey:
The objective of this research was mindful of how brand and DR progressively meet on the
web, Weight Watchers and OMD needed to gauge the adequacy of showcase crusades past
clickthroughs and associations or transformations and complex attribution models. The key
target was to discover a quick, practical approach to quantify the effect of presentation on
buyer inclination utilizing an answer that was not difficult to situated up crosswise over both
automatic and named site stock, giving noteworthy information bits of knowledge to enhance
show investment progressively. The Brand Impact overview got some information about their
inclination between the Weight Watchers eating regimen arrange and contending items, and
the probability of which arrange they would picked. The overview was conveyed over all
distributers as a component of the media purchase. Purchasers were partitioned between the
individuals who had not seen the Weightwatchers promotions and the individuals who had
seen the commercial. The solutions provided in the research included: The online promotion
campaign expanded purchaser affinity to pick Weight Watchers over contending brands by
37% with a 99% factual certainty level in the Survey results. It also exhibited the buyer effect
of presentation promoting past the straightforward click [Appendix: 1]
1.4.2 Followers who see Promoted Tweets more likely to have a brand preference
The consequences of EE's brand study stress the effect that running Promoted Tweets in the
course of events can have and how it can help movement brand observation.
It additionally echoes late research Twitter UK did with Deloitte, to evaluate the potential
effect Tweets have on deals execution, and with Compete into how Tweets are assuming an
undeniably compelling part concerning customers purchasing tech items.
The Deloitte study found that in terms of purchasing feature diversions, for example, Tweets
create solid verbal that specifically affects customer demand. Moreover, positive Tweets
around a brand can impact buy choices. Individuals like to discuss what they've perused on
Twitter, and that discussion specifically impacts what they wind up purchasing when they are
prepared to buy. The Tweets in real life: Mobile/Tech UK study with Compete discovered
those customers who see Tweets are more inclined to visit brand sites, hunt or chase down
item audits to figure out all the more about the brands they saw on Twitter. Not just that: the
exploration found that Twitter clients visit mobile and tech brand sites at a much higher rate
than general web clients – 62% versus 45%. Moreover, it uncovered that introduction to
11. brand Tweets improved the probability that customers would visit outsider audit destinations,
for example, @cnetuk or @techradar, to discover all the more about the brands or items.
This is the place the numbers truly begin to shoot up. While around 36% of normal web
clients went by outsider survey destinations amid the Christmas shopping season this figure
was 28% higher when it came to Twitter clients.
It concluded with some basic tips for achievement:
Make captivating and shareable substance – Use feature and pictures and consider
silliness in the event that you need to achieve your crowd with news of new items and
brand declarations. Incorporate connections to let purchasers to take in more.
Use advanced Tweets in hunt – More than others, Twitter clients like to chase down
insights about items, so verify your Tweets are the ones that they are seeing.
Use catchphrase focusing in timelines – Consumers like to discuss buys they're
planning to make on Twitter. You can focus on those clients discussing mobile
telephones, for example, specifically and attain fundamentally more elevated amounts
of engagement.
1.4.3 Consumer Perception to Branded Automobiles (Comparison with Thailand)
With the goal of a near study between Thai and UK extravagance automobiles' customer
discernments, tantamount demands and supplies need to be drawn. Among the new
enlistments of autos in Thailand and the UK between 1995-1997, their business exhibitions
demonstrate that Germany is the main manufacturing nation. This records for the way that an
extensive number of German models are foreign made in Thailand and UK with a perspective
of the extravagance auto markets. Audi, BMW, and Mercedes are the top extravagance
marques in both nations. Mercedes autos are more costly than BMW autos in every section in
both nations, yet BMW is more prominent in the UK, while Mercedes is customarily more
prominent in Thailand. From a monetary perspective, ought worse off customers in one of the
wealthier UK be ready to purchase Mercedes as opposed to customers in a poorer nation like
Thailand? The out performance of Mercedes in a littler and poorer market, for example,
12. Thailand may be the aftereffect of social contrasts, for example, 'defenselessness to social
impact'
This sort of phenomena is not new. Most distributed studies on nation of-inception find that
nation generalizations have some effect on item assessments and buy choices. They are
discovered to be persuasive to particular brands, to automobiles , and to extravagance
automobiles. As needs be, customers can put diverse noteworthiness to specific brand
pictures and characters. This then prompts contrasts in customers' individual contrasts
(specificity, disposition), the choice process (the buy choice), and administration marketing
system (7 Ps). In this connection, enthusiastic components start to assume a significant part in
branding. Customers in both nations need to pick among brands, all of which give useful
insights. Despite the fact that engineering has turned into an essential in the markets; social
contrasts, for example, social values could clarify the extravagance auto deals positions and
customers' diverse disposition towards BMW and Mercedes in an unexpected way. This may
be clarified by Keller (1993) conceptualization of brand learning which has two segments:
brand mindfulness and brand picture. The primary segment of brand information is sorts of
brand affiliations which comprises of properties [non product related including: price and
packing] and product related, profits [functional, experience, symbolic], and mentality. The
other two parts are favourability of brand affiliations and uniqueness of brand affiliations.
1.5 Summary
Brands have in the past have had a huge influence on the purchasing pattern of a consumer.
The reasons may be diverse, for example, snob value, customer loyalty, preference, or its
history of low pricing. However, the fact remains that brands have a huge role to play when it
comes to determining the sales of a product.
Most organizations around the world spend considerable amount of resources in builing and
sustaining their brand equity. This is seen as a great investment by many management gurus
in order to boost future sales and make a solid foundation for the company.
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