LITERATURE REVIEW

“Brand is something what remains us when our factory is burned”. These are the words
of David Ogilvy who is considered “the father of advertising”. Brands are important to brand
owners at two quite different levels. Firstly, they serve as a focus for consumer loyalties and
therefore develop as assets which ensure future demand and hence future cash flows. They
thus introduce stability into businesses, help guard against competitive encroachment, and
allow investment and planning to take place with increased confidence (Loken, Ahluwalia,
Houston, 2010). Brands are business assets, legally protected and shielded from duplication.
They are valuable, rare, non-substitutable and provide sustainable competitive advantages –
and therefore superior financial performance. A brand is built over time, by the impressions
one has of the company, its products or services, and is confirmed (or destroyed) by
experiences. People use brands to categorize their choices (Transparency, 2005). On the basis
of existing definitions of the brand we define brand as: “Perceptible sign of the organization
and its products to the human senses, through which the customer is able to differentiate an
organization and its products from others” (Babčanová, 2010).

According to Aggarwal (2004) prior research has examined differences in how consumers
perceive and evaluate brands, for example, through investigating brand equity, brand
personality and brand extensions. More recently, researchers have noted that consumers
differ not only in how they perceive brands but also in how they relate to brands. This line of
research has suggested that people sometimes form relationships with brands in much the
same way in which they form relationships with each other in a social context (Aggarwal,
2004).

Activities within brand management enable to build loyal customers through positive
associations and images or a strong awareness of the brand. Brand image is the key driver of
brand equity, which refers to consumer’s general perception and feeling about a brand and
has an influence on consumer behaviour. For marketers, whatever their companies’
marketing strategies are, the main purpose of their marketing activities is to influence
consumers’ perception and Henrieta Hrablik Chovanová et al. / Procedia Economics and
Finance 34 ( 2015 ) 615 – 621 617 attitude toward a brand, establish the brand image in
consumers’ mind, and stimulate consumers’ actual purchasing behaviour of the brand,
therefore increasing sales, maximizing the market share and developing brand equity (Zhang,
2015).

Brand awareness, as one of the fundamental dimensions of brand equity, is often considered
to be a prerequisite of consumers’ buying decision, as it represents the main factor for
including a brand in the consideration set. Brand awareness can also influence consumers’
perceived risk assessment and their confidence in the purchase decision, due to familiarity
with the brand and its characteristics. On the other hand, brand awareness can be depicted
into at least two facets – unaided (brand recall) and aided (brand recognition) – each of the
two facets having its more or less effective influence on buying decision and perceived risk
assessment (Aaker, 1991, Moisescu, 2009).

Brands also have a symbolic value which helps the people to choose the best product
according to their need and satisfaction. Usually people do not buy certain brands just
for design and requirement, but also in an attempt to enhance their self esteem in the society
(Leslie and Malcolm, 1992). Brand names present many things about a product and give
number of information about it to the customers and also tell the customer or potential buyer
what the product means to them. Further more it represents the customers’ convenient
summary like their feelings, knowledge and experiences with the brand. More over customer
do not spend much time to do find out about the product. When customer considers about the
purchase they evaluate the product immediately by reconstructed product from memory and
cued by the brand name (Hansen and Christensen, 2003).

Brands play a very important role in the consumer decision making processes. It is really
important for companies to find out customer’s decision making process and identify the
conditions, which customers apply while making decision (Cravens and piercy, 2003).
Marketers are highly concerned to know how brand names influence the customer purchase
decision. Why customers purchase a particular brand also implies how customers decide what
to buy. Customers follow the sequence of steps in decision process to purchase a
specific product. They start realizing a requirement of product, get information, identify &
evaluate alternative products and finally decide to purchase a product from a specific brand.
When customers purchase particular brand frequently, he or she uses his or her past
experience about that brand product regarding performance, quality and aesthetic appeal
(Keller,2008).

When a brand is introduced to consumers through the various media like advertising,
packaging, WOMM, their levels of brand awareness gradually increases and as it once
awareness increases, the purchase decision of that brand in question will be influenced by the
perception of that brand, Erdem, (1998).

Malik, Ghafoor, Iqbal, and Ali (2013) Mentioned that Brand image has solid progressive
control on Customer purchasing behavior as it‟s an implied method that can modify
people‟s purchasing behaviors positively and youngsters in Gujranwala are becoming more
attentive for brand-named goods to show off their character sign. If persons will be well
conscious about the brand and they have decent brand view, reliability and association then
routinely brand image will be extra and stronger in their minds and that brand will develop
the part of their purchasing behavior. Advertisement is a large promotion weapon to attract
your consumers and to stay in consumer’s mind.

According to Doostar1, Abadi, and Abadi (2012) brand fairness has a positive impact
on buying decisions, customers Feel by heights of brand equity for the first time after use
and then tend to make buying decisions, they use brands that is slightly aware with its name
and express value that this worth has made for them. Dimensions of brand fairness have a
positive impact on buying choices.
Nepalia (2011) Summed up that to accomplish the brand means to apply marketing
tackles for particular goods. If brand will be managed effectively product value and brand
loyalty will also be enhanced in customers mind. Dealers consider a brand as an assurance
with customers that product feature will be similar in upcoming and due to this assurance
sales increase.

According to Khasawneh and Hasouneh (2010) Customers recognize the reputation of brand
while in their buying decisions and customers „demographic features have no significant
relation and influence on brand awareness. People favor the branded goods with upper prices
because they study that branded goods have more value than local goods.