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Brand- Meaning-Significance

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Brand is a distinctive symbol or name created with the intention to identify and recognize the goods or services of one seller or a particular group of sellers. Another purposeis to differentiate such goods or services from its competitors. As such a brand signals to its customers the specific source of product and attempts to protect both the producer and customer from competitors who ultimately endeavor to provide products that seems to be identical. (Kotler, P and Armstrong, 1996)

Early history provides proof of the significance of brands. In those days, names were given to some specific goods such as; bricks, for the purpose of identifying their producer. It is also known that trade associations in medieval Europe utilized trademarks for ensuring their customer and providing the required legal protection to their entire producer. In the early 16th century, distillers of Whisky shipped all of their products in barrels made of woods with the producer's name burned right into the barrel. The name showed the maker of the brewer to consumer and prevented the replacement of cheaper products. In the year 1835, a specific brand of scotch known as 'Old Smuggler' was initially launched with the intention of capitalizing on the reputation of high quality that was developed by some bootleggers who utilized a special process of distilling. (Brennan, Ian; Babin, Laurie A, 2004)

Although a special role had throughout been played by brands in commerce, it was twentieth century that brand association and branding became a primary element to competitors. A distinguishing feature of modern marketing, for many decades, has been its focus upon the establishment of distinguished brand associations to emphasize the basis of distinction. The idea has ultimately moved beyond different commodities to branded products- to diminish the worth of price upon the decision to purchase. Consumers link the product value with the brand as it can convey either a negative or positive message about the product to its consumer. (Broniarczyk, S,M and Alba, 1998)

The significance of a brand is mostly based on the particular association of a "use background", like prevention of heart attack can specifically provide a particular reason for buying, that can captivate customer. Such type of association represents the meaning of product to customers. Brand associations in fact represent justification for purchase decision ultimately creating brand loyalty. There are different possible relationships and associations that an organization can establish in a brand. All associations are not required to be established, but rather those that indirectly or directly impact consumer buying behavior. (Lederer, C. and Hill, 2001)

Brand Associations and Price Perceptions

As far as brand associations are concerned some researchers had narrated a minimum of nine brand associations. The associations communicate either the approach, or the meaning of product in specific terms of how the needs of customers can be fulfilled. In the present competitive environment a distinguished image of product is among the top priority of an entrepreneur. As products become complicated and the market more crowded, consumers become dependent on the image of product than its real attributes in the execution of purchase decision. (Aaker, D.A. Kumar and Day, 1998)

Customer benefit refers to the particular needs and demands that are satisfied by products or services, for example control of cavity by toothpaste is termed as customer benefit which may be psychological, rational or self expressive benefit. A rational benefit is closely associated with an attribute of product and would be an integral part of reasonable decision process. As different roles are performed by consumers, most of them have an associated concept and a need to narrate that concept. The purchase and utilization of brands is one method for the fulfillment of need. The example of a consumer can be quoted who could define her/himself as powerful and successful by driving a particular car, say Mercedes Benz. Galician, (Mary-Lou, 2004)

For the last two decades significant attention has been given to the concept of brand equity. Brand equity has been seen from different perspectives. Generally brand equity is also defined as the marketing effects that are attributable uniquely to the brand, for example when different results are derived from the marketing of goods or service due to the brand name that would not happen if the similar goods or service did not own that name. (Broniarczyk, S,M and Alba, 1994)

There have been two kinds of motivations and inspirations for the study of brand equity. The first is motivation, based financially for making estimate of the brand value in more precise terms for accounting purpose or for acquisition or merger in terms of the enhanced discounted cash flows in future that could result from a particular product that have its brand name as against the proceeds that would happen if the similar product did not posses such brand name. On the basis of financial worth of the firm, their estimation method extracts the worth or value of the brand equity from the overall value of assets of the firm. (Galician, Mary-Lou, 2004)

Second reason of motivation for studying the concept of brand equity evolves from motivation based on strategy for the purpose of improving productivity of market. The increased competition, higher costs and flattening demand surfacing in most of the countries force firms to increase the overall efficiency of their expenses on marketing. Consequently marketers require a thorough awareness of consumer behavior as a fundamental basis for executing strategic decisions about the definition of product positioning and target market as well as tactical decisions relating to the actions of marketing mix. (Maklan, S, 2004)

The most valuable asset for a firm in increasing market productivity is the general awareness created about the brands in the minds of consumers from the investment by firm in previous programs of marketing. Issues of financial valuation have somewhat little relevance if there is no specific underlying value created for brand or if the managers are not aware on exploiting that value for developing profitable and strategies for promoting brand. (Nilson, T.H, 1999)

Brand Equity a Determinant of Price Perception

Brand equity is basically conceptualized from the overall perspective of a consumer and a framework of concept that is provided of what consumer thinks about brands and what is the implication of brand for the business practice. Consumer-based concept of brand equity can be defined as the differential impact of brand knowledge on the response by consumer to the marketing of company's brand. It means that customer-based brand equity implies the reactions of consumers to marketing mix element for the brand as and when compared with the reactions to similar element of marketing mix particularly attributed to an unnamed or false name version of the goods or service. Consumer based brand equity happens when the consumer is mostly familiar with the specific brand and shows some strong, unique and favorable brand associations in memory. (Quester, P and Farrelly, 2006)

The overall concept of brand equityparticularly from this perspective is quite useful as it suggests specific guidelines set for making marketing tactics and strategies and areas where research can be useful in supporting decisions by managers. There are two significant points that evolve from this kind of conceptualization. First is that marketer must take a wider view of their marketing activities for brand and should recognize the different impacts it has on brand knowledge. Marketer should also consider the long-term effect of brand equity, and not the changes that take place in brand knowledge and impact traditional results measures like sales. (Till, B.D, 1998)

The second point is that marketer should realize that the success, particularly on long-term basis, for future marketing plans for a brand is influenced by the cognizance about brand in memory established by the short term marketing endeavors of the firm. Due to the structure and content of memoryfor brand impact and the effectiveness of brand strategies in future, it is vital that managers should understand the marketing programs that influence the learning of consumers recalling subsequently for information related to the brand.

The proposition formed by consumers from perceptions of prices and utilizing them in formulating different responses to prices has instinctive appeal and empirical support. For examplein the auto industry speculations had been made in the past that the rates of sales would drop if local car companies were to abolish sales incentives such as financing at low interest rate, rebate etc. The consumers expect such kind of incentives once they have been available for some period of time. From a manager's perspective the significance of information relating to the usage of price by consumers in making their ultimate choice or decision is quite obvious. If price expectations are not incorporated,specifically in those cases where their prime role has been authenticated, it can result in wrong estimation of price elasticity and ultimately creates non-optimal pricing. (Chernatony, L and McDonald, 2005)

Significance of Information

Managers should try to obtain a clear understanding of how price information is used by the consumers in choosing among different brands within regularly bought categories of product. Some researchers have identified two stages in this procedure. The first stage is the examination of how perceived prices are formed. Customer characteristics, past prices and situational factors like variables that impact price perceptions of brand by consumers are suggested in this stage. The primary issue is to understand if the inclusion of variables related to price deviation, in addition to the retail prices of brand, improves the overall capability of to narrate the response of consumer to price. (Rooney, J.A, 2002)

The essential characteristic of conceptualizing consumer response to price is that; when response is given to the retail price, the present and past background of the experience that ultimately defines level of adaptation and price incentives are perceived in association to the adaptation level. This conceptualization in which consumer uses information of price in making choices about brand is the perceptual apparatus that is adjusted to the assessment of changes as compared with the evaluation of entire magnitude.

The expected price of brand is the price that consumers are ready to pay for the specific brand on a given buying occasion but there are other concepts of the price used by the consumers as a reference in executing purchase decisions like fair price, list price and aspiration price. The expected price should match with the fair price. In case they are different, i.e. the perceived price and the fair price, then consumers are likely to use the perceived price in the evaluation stage of consumer buying process. In the category of products that arebought frequently, the notion of price related to internal reference is expected to be more significant construct in impacting consumer buying behavior as compared with the external reference price like suggested price list of manufacturer as customers are well-informed about the brand prices.

Introductory Price of Brand

Some studies have revealed that if a product is introduced at the discounted price and then price is raised to the normal level, it will mostprobably undermine the sale of product. The explanation to this phenomenon is that once consumers have perceived and adopted the notion of low price at the introduction level, they consider it as the real price and also treat the regular price of product as unacceptably high. The researchers have also discovered that increasing the sales incentive level seems to enhance the possibility of acknowledging a trial presentation of weekly newspaper but a considerable incentive challenges the possibility of buying a subscription in case the incentive is withdrawn.

Most of the research made in past revealing the findings that supported the construct of perceived price are theoretically based as indirect proof. A support had been discovered for the supposition that extreme prices are offered initially in a sequence of price incentive anchor perceptions of price, thereby attracting the adaptation level in the direction of extreme which results in accentuated or depressed judgment of price.

In evaluating a change in price, consumers use mostly the price that is last paid by them as a reference. The standard serving price as an anchor for evaluation of other prices will be some standard of the prices for one kind of products. Some consumers use the notion of end prices, the highest and lowest prices- as anchors in the evaluations of prices. The subject frames of specific reference are sensitive to the sequence of presentation of prices that is responsive to the presentation order of prices and suggest the trend or price as a determinant of perceived price. Other contextual impact such as intended use or the primary purpose of purchase has also been discovered to impact how consumers evaluate the price.

Building on the mediating role of brand in perceived price the transaction utility approach has been proposed by some researcher that is related to the gross difference between the retail price and expected price. It explains the choice of consumer for a brand that is at variance with conventional economic theory. It is argued that in supplement to the acquisition utility which is an ultimate function of difference between market prices and reservation consumers kết nối thương hiệu can gain utility by using brand depending upon its perceived merits.

Impact of Deviations in Prices of Brand

When the retail price contrasts adversely with the perceived price, it reduces the possibility of purchasing brand. On the other hand when the retail price compares favorably with the perceived price, it enhances the probability of purchasing that brand. Consumers seem to be 'risk averse' for making choice of a specific brand that involves losses. It means that they favor a probabilistic result with lower or equal perceived value of brand to a sure loss.

The positive deviations, as discovered in some studies, about retail price of a brand from the reference price had an overall statistically important negative influence on the buying behavior of consumer. Empirical support had been provided in the study of a significant role of perceived price in choice of a brand by consumer or brand affecting the price perceptions of consumer. A perceived price of a brand as function of the price last paid, promptness of deal by the consumer and the occurrence of sales promotions are interrelated with the strength of the brand also called the brand equity.

The study of regularity in response by consumer to the deviations of the perceived price from retail price is inspired by empirical evidence that increased response by consumer may be different from their response given to decrease in price. Consumers are more sensitive to increase in price of a brand rather than decrease. However some authors have insisted on opposite scenario, that response to decrease in the price of brand is stronger than the increase. Consumers are loyal to their preferred and much loved brands and as such an increase in price of brand seems to have less influence on the brand sales.

The sales gain from price reduction, on the other hand is most likely to include the component of forward buying that is intended to construct the home inventory of the brand. As such the consumers respond more strongly to the decrease in price than the increase. If positive and negative deviations of the retail price from the perceived price are taken to symbolize perceived losses and gains of brand, the response given to the positive deviation in the price of brand is possibly stronger than negative price deviation.

Conclusion

There are rival premises relating to the asymmetry of responses by consumers to deviations in price of brand which are based on different factors like innate psychological response to gains by brand as against the losses, switching costs of brand and impulse purchases versus regular buying of a specific brand. To put our study in the perspective of previous work done on this subjectit has been noted that considerable efforts had been made on the psychological elements of prices in general. (Stanton, W. Etzel, I.J. and Walker, 1994)

Some elements are in specific orders, for providing support to variables that are included in the perceived price list. The empirical evidence and the theoretical arguments presented by almost all the researchers emphasize that past prices play a significant role in determining the perceived price of a brand. Consumers may expect to deal with a brand that is frequently promoted. As such an inverse relationship is found between the perceived price and the regularity of using the brand. (Marshall, Norm and Ayers, Dean, 1998)

Economic forces such as inflation also influence the perception of prices in addition to the role played by the brand. Consumers may differ in the specific price they perceive to pay for a particular brand. For exampledeal-prone consumers may perceive a relatively low price than other consumers because of the low level of transaction cost. Finallythe consumers normally perceive to pay different prices for brands in different stores. For example they may perceive to pay a premium price for a brand while making purchases in a convenience store. We conclude that the brand affect consumers perception of price which is not only a function of past prices but this perception is influenced by the frequency with which a promotion of brand is made. Economic conditions such as inflation, consumer characteristics and the type of stores in which purchases are made also influence the price perception of consumer. (Kim, C.K and Chung J.Y, 1994)

Implications for Louis Vuitton

Louis Vuitton is the French based companywhich deals in leather goods and French luxury fashion. The company specializes in trunks and bags. Louis Vuitton is internationally recognized in the fashion world and among world's most successful brands. The operation of company are traced back to 1850 when it started dealing in the fashion brands and considered as one of the oldest fashion brands still leading from the front in the world of fashion. (www.louisvuitton.com)

The one hundred and fiftieth anniversary of Louis Vuitton was celebrated throughout the world in 2004. In the same year, the brand was introduced in Johannesburg- South Africa, New York- U.S and Shanghai China. For the continuous increase in brand awareness and improvement in brand equity,Louis Vuitton uses celebrities, utilizing the services of famous actresses and models in its marketing campaigns. (www.louisvuitton.com)

The products of Louis Vuitton are luxury goods and fashion accessories made of leather. The brand on the products is recognized by LV initials. The brand of Louis Vuitton is strong enough to influence consumer perceptions. The brand is considered an elusive concept in the firm and mostly the marketing department is striving to improve the brand equity by continuously adding value to the brand. The value of Louis Vuitton brand is measured not only through the advantages it provides, but also the current competitive arena and the potential benefitsit offers in handmade leather products. (Lim, K, 2005)

The similar insight by its marketing department has prompted enhanced usage of brand as a vehicle for growthspecifically of its entry into United States, South Africa and China. Assuming that multiple determinants exist for Louis Vuitton of brand evaluation a rational goal is to determine the influence of each and every determinant. From the perspective of its fashion consumer, the problem for L.V can be directed in relation to the perceived diagnosis of every determinant. That is the basic task for the consumer of firm to assess the attractiveness of a brand on the basis of available signs. A cue like brand impact should be used to the level that it is perceived to be a fair predictor of the attractiveness of the brand on the basis of cues. (www.louisvuitton.com)

Particular attention is paid by Louis Vuitton to the impact of brand association. Brand is perceived in the firm as active, trustworthy and competent. Brand personality help the firm in communicating attribute of product and as such contributes to monetary benefits. Similarlyit supports in creating self-expressive advantage that has become a vehicle for their consumers to express the personality of Louis Vuitton. (www.louisvuitton.com)

Position of the brand of Louis Vuitton using attribute of organization like innovation is a need for quality and a special apprehension for the environment. The firm uses its brand in relation to its competitor. Sometimes it is not significant as to how good customers think the firm isbut how they consider it is far better than a particular competitor. Association of brand is particularly useful to marketers as they used this association to position, differentiate and extend brands to create feelings and positive attitudes towards it. (www.louisvuitton.com)

Implication for the Reject Shop

The Reject Shop offers a huge variety of common consumer merchandise. It attempts to focus on each and every need of its consumer like cosmetics, toiletries, personal care, hardware, home wares, basic furniture, snack food, confectionery and seasonal merchandises like cards, seasonal gifts, leisure items, wrapping,home decorations and leisure items. (www.rejectshop.com)

The target market of Reject Shop focus on consumers who are aware of value, enjoy bargain and save money and change continuously its offer of product lines in creating a special sense of discovery for its customers. Consumes are attracted to the convenient shopping location of the company and distinctive features like low price, everyday bargains as well as times and mix of quality. This is also shown in the extremely powerful brand awareness in its target market. Stores are found in standalone sites, shopping centers in metropolitan areas, main regional centers or country towns. (Aaker, D.A, 1996)

Association of Reject Shop with its brand represents the basis for buying decision and brand loyalty. Different ways adopted by the firm provide value. There are many ways in which value is created by the firm that include helping to process, generating reason to buy, retrieve data about brand and creating positive feelings attitudes towards the brand. Association with brand helps the consumers of Reject Shop to judge the value of products. Its consumers seem to have broad but indistinct stereotypes about specific brands that are judged best. (www.rejectshop.com)

One of the prime functions performed in brand management by the Reject Shop is to remain step ahead of its competitors by imprinting the entire brand family on the consumer awareness and maintain it there. The Reject Shop requires understanding by consumer about its brands in relation with its competitors. This requires the measurement by the firm of brand associations. Different techniques are used by Reject Shop to achieve this specific objective that can be classified into two categories. (www.rejectshop.com)

The techniques used to improve brand awareness involve concentrating on the analysis of using experience, the brand user, the decision process and perspectives like considering the brand to be just like a person. The related dimensions that differentiate brand knowledge and influence response of consumers are the brand awareness and the strength, uniqueness and favorability of the products of Reject Shop. Emphasis is placed by the firm on the components of brand name, though other elements of the brand recognition are also considered. (www.rejectshop.com)

The brand knowledge of the Reject Shop is reflected by ability of consumers to recognize brand in serving its functions. In particular awareness of brand name 'Reject Shop' is related to the probability that the name of its brand comes to mind with all the easiness. Brand awareness of Reject Shop is specifically related to the ability of its customers to confirm previous exposure of the brand whenever a cue of brand is given. Or it could be said that brand recognition means; consumer of the Reject Ship discriminate correctly remembers the brand, whenever a purchase decision is made. The distinctive features of product play a significant role in determining the characteristic response that establishes brand equity. (www.rejectshop.com)

References

Aaker, D.A. Kumar and Day. Marketing Research. New York. John Wiley & Sons, Inc. 1998.

Aaker, D.A. Building Strong Brands. New York. The Free Press. 1996

Alerck, P.L. and Settle R.B. Strategies Building Consumer Brand Preference. Journal of Product and Brand Management. Vol 8 No. 2. 2002

Brennan, Ian; Babin, Laurie A. Brand Placement Recognition: The Influence of Presentation Mode and Brand Familiarity". Journal of Promotion Management, 2004, Vol. 10 Issue 1/2, pp.185-203

Broniarczyk, S,M and Alba. The Importance of Brand Extension. Journal of Marketing Research. 1994

Chernatony, L and McDonald. Creating Powerful Brands. London. Butterworth-Heinemann, 2005

Fry, J.N and Claxton. Semantic Differential and Nonmetric Multi-dimensional Scaling Descriptions of Brand Images. Journal of Marketing Research, Vol, 8, May

Galician, Mary-Lou (Ed). Handbook of Product Placement in the Mass Media. Ne

The largest population in America travels in cars. Today the cars have not remained a means of transport but have become a thing of comfort and a sign of economic status. People prefer expensive and comfortable luxury cars. The article discusses the top 10 best-selling car brands in America. The list of best car brands in America will help you to know the statistics of increasing rate of car sales in America.

If you are thinking of buying a car and comfort is the key concern behind that objective, our information on best car brands in America will definitely help you in achieving your purpose. The cars with good economy, comfort levels, and longevity are mostly preferred by the people. People buy branded and expensive cars due to its extraordinary features and smooth ride over the road.

Below is the list of top 10 car brands that are widely sold in US. The sales are for the month of June in 2010.

Top 10 best Selling Car Brands in America:

Ford

With the introduction of 2011 Ford Mustang, Ford topped the list of best-selling car brands in US leaving Chevrolet Camaro in the second position. The sales of Ford increased to 16.2% and the total sales were around 155,332.

Chevrolet

Chevrolet Camaro was outstandingly hit before introduction of Ford Mustang in the market. The sales of Camaro increased to 32.5% and the total sales were around 141,381.

Toyota

Toyota was the third most popular car brand in America in June 2010. The sale of car boosted to 7.4% and the total cars sold were 123,272. It was the top-most selling car brand for the year 2009.

Honda

Honda is one of the major and well-known auto makers. The sales of Honda boosted up by 7% in June 2009 and the total cars sold were 95,788. It remained the fourth best-selling car brand in America.

Nissan

Nissan was rated the 5th best car brand in America. The sales of Nissan increased to 8.2% in June 2010. The total cars sold in this year were 56,266. It achieved one of the largest sale of vehicles in North America.

Hyundai

The Hyundai's Equus is the large sedan that augmented the sales of the brand in June 2010. Hyundai experienced a tremendous 35% rise in the car sale and around 51,205 cars of this make were sold. It remained the 6th best-selling car brand in US.

Dodge

Dodge finished 7th in the overall sales of car brands in America. The Dodge scored around 66.8% growth in the sales in this year. Around 36,996 cars were sold in this particular year.

Kia

Kia occupied 8th position in the list of best car brands in US. The sale of this brand increased to 18.9% in June 2010. Around 31,906 cars of this brand were sold in this year. The 2011 Kia Sorento was the best-selling car of this brand.

GMC

The GMC was a non car building brand. Its sales boosted by 45% than what they were in May 2009. It is ranked 9th in the list of top 10 best-selling car brands in America. Around 28,526 cars of GMC brand were sold in USA in June 2010.

Subaru

Subaru gained the 10th position in the list of top 10 best-selling car brands. Its sales increased to 16% than the previous year and around 21601 cars of this brand were sold in June 2010. Subaru is making a charge out from under the shadow into the mainstream.

The above information describes the top 10 most selling car brands in America.