Literature Review Of The Topic Brand Marketing Essay

2937 words (12 pages) Essay

1st Jan 1970 Marketing Reference this

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Kotler (2005) defined brand as “a name, term, sign, symbol, design or a combination of these that identifies the makers or seller of the product or services”. Kapferer (2004) expressed his views that a brand has the potential to drive the choices of customers. He further stated that this effect can be because of the physiological bonds of customers with the brand which are made over a prominent period of time.

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Brand Equity

Aaker (1991) stated that brand equity can be referred as “a set of brand assets and liabilities linked to a brand, its name and symbol. How can companies create a distinct positioning in an overcrowded market and create, reinvent and sustain their competitive advantage? Among the many strategies that companies use, one of the useful ways has been to create a powerful brand that resonates with customers. Firms engage clients by offering interesting experiences and sticking the brand’s messages and myths deep in the customers’ minds, aligning with the culture and needs of the market. Such strategies to attach with customers allow companies to cut a distinct positioning and offer a distinctive and unique value proposition. As such, brand equity has always been viewed as a positive component of business strategies. It benefits companies by enhancing their insubstantial value and maximizing shareholder value.

There are number of definitions of brand equity in different literatures. Farquhar (1989) said that brand equity is something which increases the value of the manufactured goods. Aaker (1991), Keller (1993), Leuthesser (1998), Yoo and Donthun (2001). also presented definitions which are not different from the ones stated above.

Keller (1993) took brand equity as the gap between the brands from the view of the knowledge of the customers which effect the brand marketing. anticipates brand equity as the differential effect of brand knowledge on consumer response to the marketing. There is an assumption here that the capability of a brand is based on the experiences of the consumer at different phases of time.

Simon and Sullivian (1993) said that brand equity can be described as the additional satisfaction. Brand equity is described differently by different researchers and that is quite obvious. But all of them meant the same. Brand goodwill is considered as an asset and if we take the example of America, the banks issue big loans against the same goodwill. So brands goodwill can be taken as an asset. When the owners fail to return these loans that becomes a liability.

The study which we are doing targets on how consumers behave. We can elaborate brand equity through consumer behavior of customers and brand awareness, perceived quality, brand loyalty and brand image are the tools for that. From the point of view of the consumer these four tolls or dimensions are very important.

Brand Equity and its Attributes

Basically there are four main attributes of brand equity, which are as follows

Brand loyalty

Brand awareness

Perceived quality

Brand image

Brand Loyalty

According to Oliver (1999) brand loyalty plays a vital role in sustaining and enhancing the purchasing of the same product time and again, thereby customers comes again to buy the same products due to the their brand loyalty though, other brands also try to make the customers to switch from their brand with different marketing strategies and push the customers to change their brand loyalty.

Odin et al. (2001) viewed brand loyalty as habitual or physiological. Habitual loyalty Behavioral loyalty means continuation of purchases of a same brand. From the view of Dekimpe et al. (1997), it is very useful because it calculates practical behaviors which can be seen in daily routine. It is very simple to calculate.

Chaudhuri and Holbrooks (2001) said that the loyalty with a brand has a relation and aim to make sure that the customer will purchase the same product or service again.

Brand Awareness

According to Aaker (1991) and Keller (1993) brand awareness is one of the important parts of brand equity. Rossiter and Percy (1987) stated that the ability of the customers to differentiate or to know that how different the brand is from other brands is called brand awareness.

Keller (1993) said that brand awareness has a lot to do with the respect and acknowledgement that customers give to the brand. Moreover he stated that the identification of the brand by customers shows how well they remember the brands product.

Rossiter (1991) said that brand awareness is an important factor that can be a big reason for customers to buy certain brands and it can push them towards some brands asswell.

Hoye and brown (1990) as cited by Lin and Chang (2003), researched to find out the significance and effects of brand awareness when the consumers makes choices and make decisions about their purchasing. They came to a conclusion that brand awareness plays a vital role.

Jiang (2004) found that brand identification affects decision making of the customers, which deals with psychology of the customers.

Some people think that why is brand awareness so important? They have a bundle of customers and sales why do they spend time and money on it. But the answer is that there

are very few things which can increase sales than Brand awareness. The reality is that when more people are aware of your brand the result would be that more likely people will buy from you.

Perceived Quality

Aaker (1996) and Keller (1993,1998) was of the view that perceived quality is a fundamental aspect brand equity because it is related to the intention of the purchasing of the customers and their desire to pay a price.

Low and Lamb Jr (2000) stated that perceived quality is the opinion of dominance of a brand from other brands. Zeithamal (1998) viewed the concept as how people think think about its quality and what is their opinion about the brand.

Szymanski and Henard (2001) talked about the satisfaction and believed that perceived quality is the base of satisfaction. Perceived quality also gives value and importance to the consumers make them able to separate the brand they are using from the other brands as we know the same thing happens in brand association. Many Researchers after their research e.g Carman (1990), said perceived quality drives the decision making of the customers in a good way.

The purchase plans and decisions of the customers are affected by perceived quality which has a link with satisfaction said Taylor and Bakor (1994). So perceived quality is the consumers view and opinion about a brand and the quality of its products which makes them realize the differences of different brands.

Brand Image

Engel Blackwell and Miniard (1993) said that brand image is a mixed effect of brand bond or consumers point of view of the “brands physical and subtle relationship”.

Keller (1993) said brand image is something that evolved through the customer’s memory regarding a brand by that they make a awareness and alliance about that product

.

So, the existence of brand image is not in the facial appearance, its built or it specs ,it is something told by the marketers through advertisements, promotions.. The customers make an image of the product which is stored in their mind by the marketers. That is how the customers become known to some product. Their purchasing risk levels are also lowered. Researchers like Keller (1993) anticipated that brand image play an eminent role in brand equity.

Krishnan (1996) believed that those brands which have high brand equity experiences good bonds of people with the brand. Lassar et al. (1995) came to the conclusion that brands whose brand image is high in ranking have higher brand equity and get higher profits.

The term good brand image normally is linked with privileged brands said Kwon (1990) According to some researchers to some extent brand equity is controlled by the composition of the association of a brand .

Keller (1993) found out that encouraging, unique and tough associations are understood to provide a positive brand image which will create favoritism in the mind of consumers thereby growing the brand equity.

Some experts acknowledge that firm, exclusive, approving brand image enable the consumers to see the difference of their brand among other brands. It also help the customers to place the picture of the brand in their mind. Conclusively, we can say that brand image is the picture of the brand that is printed on consumers mind regarding its attributes.

Consumer Behaviour

Consumer behaviour can be viewed as risk taking. To better realize the effect of brand equity on consumer actions, it is necessary to see the sketch of brand equity.

Belch and Belch (2004) said that consumer behaviour is “the procedure and actions people engage in when penetrating, selecting, purchasing, using, evaluating and disposing of product and services so as to please their wants and craving”.

Dalqvist and Linde (2002) divided consumer behaviour into many segments i.e. rational, learned, unconscious and social behaviour and they are presented in these three steps:

knowledge→ Attitude→ Action.

Rational Behaviour

The consumers who have a rational approach takes information about the product and see how it can give them benefit. Using this information they evaluate their needs and what the product has to offer them and approach the product, then they take some practical step. They have two choices, to buy or not to buy the product. It happens when the customers are dealing in the purchase of some highly expensive products such as cars

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Unconscious Behaviour

Some consumers have unconscious behaviour. They start with leaning themselves near the product. That can be a result of their conviction or faith. They collect information after that which is helped by the first step and then make a choice about wheather to buy or not to buy the product

Learned Behaviour

Learned behaviour is habitual. It does not have a lot to do with the choice. The consumers do not think a lot in this and do not make a table or chart of choices. This behaviour mostly is based on the habits. Example of such behaviour can be seen in everyday life for example purchasing a newspaper.

Social Behaviour

Some consumer’s behaviour are viewed as social in terms of buying. They purchase products with respect to their social needs and social environment because it is difficult for them to survive otherwise

Another thing which has a large effect on the consumer behaviour is referred as Culture. Kotler et al. (1999) suggested, personal and psychological likings and disliking, culture and social elements also effect the consumer behaviour big time other than social behaviour.

Cultural Factors

They are concerned with the culture or the way people lead there life and social class where a person finds himself.

Social Factors

It is concerned with family of the consumer and with the people he lives with.

Personal Factors

Personal factors are about the age, how much one earns, profession, attitude and the character of consumer.

Psychological Factors

They deals with awareness, keenness, knowledge, approach and idea of the consumers.

Consumer Buying Behaviour

Consumer buying behavior is highly concerned with how consumer thinks, his need of the product or the reason for buying a product, his fondness and the source through which he recognize. Consumers buying behavior can also be expressed as the buying habits of the last consumer. It is as complicated as the human mind and the most complicated issue in it is the fact that there are so many factors which have an impact on the purchasing plans or decisions of the consumers.

Kotler et al. (1999) viewed; that there is a procedure through which the consumer goes while buying and that is divided in five segments which are given below.

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Post purchase behavior

Kotler (1999)said that consumers does not necessarily go through all these segments in every purchase. He said that when we buy the routine products we do not have search for information and assessment. The consumers who have confusions about their purchase or sometimes finds it hard to decide that what to buy, passes through all these segments.

Need Recognition

It occurs when the consumers divide their trouble or desire. The need of the product may come from two ways of desires one could be the inner or interior and the other could be outer or exterior. One of the examples of the inner desire can be when we want to drink water or drink because we are thirsty. External desire may occur after watching a billboard of a product or after listening a commercial on the radio which induces the customer to realize the need of the product. So it is very important for the marketers to see that what desire is beneficial.

Information Search

It occurs when the customers start to gather information of the products through different means they may be commercials, promotions, from their friends and experience. These all things increases and update the consumers information and awareness of any certain brand..

Alternative Evaluation

In this stage the consumers analyze which brand is better for them. They calculate the benefits and classify the brand with respect to quality and price which is based on the information they have gathered.

.

Purchase Decision

This is the stage where consumers decides and purchase the product. Other factors such as unpredicted situations also affect the consumer’s knowledge

Post-purchase Decision

This is the stage where consumers check the performance of the product. Kotler et al. (1999) said that the consumers are satisfied when the product performs according to their expectation.

There are many differences in consumer’s behavior which rely on the kind of product the consumer is purchasing. Kotler et al. (1999) structured a model which was composed of four buyer behaviors.

Complex Buying Behavior

It occurs when the consumer gathers a lot of information because they are going to purchase a very good brand in terms of the quality so before the purchase they collect the information.

Habitual Buying Behavior

It is a buying behavior which is related to the buying of the products which is not purchased daily or in routine.

Variety Seeking Buying Behavior

It occurs wonder around and go to different places in search of a variety and differentiated products.

Dissonance Reducing Buying Behavior

It occurs when the consumer is engaged in the buying of a product because the product is luxurious or exclusive

Factors Effecting Perceptions of a Brand

Kotler (2005) said that perception is the process through which information is recognized, preferred, arranged by a person. Other factors which effect the perception of the consumer are:

Quality

This is one of the important factors considered by a customer while making a decision about the product. Uggla (2001) said that the term quality is an important and essential component of brand individuality.

Price

According to McDonald and Sharp (2000) in two ways the price can work as a tool while selecting some product, one is buying the product which is cheap enough to stay away from the possibility of damage or loss, the other way is buying a very expensive product to make sure that the quality is good.

Influence by Others

Kotler et al. (1999) said that the directions and advices of other people effects the decision making in making choices to a great extent. Mostly all the consumers talk to each other and share their experiences about the new brand or a new product when it comes into the market and seek each other’s approval. These opinions have a strong impact on the consumer behaviors. Culture can also effect the buying habits, culture also includes the values of the society and the relationships. Our groups and the family also effects the buying behavior.

Advertising

The major task of advertisement is to spread brand awareness. It plays the role of a bridge between the consumer and the marketers or the product. The message is conveyed through advertisement.. Aaker (1991) said that if the advertisement and promotion of the brand is done in the right direction it can help the brand stand tall in a strong position.

Packaging

This is the period of making the outlook of the product which is very important these days. According to Kotler et al. (1991), good packaging and outlook attract the consumers and results in increased sales. Packaging also sometimes works as a tool of advertisement.

Convenience

Lin and Chang (2003) said that the consumer will buy the product which is in his reach and accessible to him. They said that degree of how convenient the product is effects the consumer behavior very strongly.

Kotler (2005) defined brand as “a name, term, sign, symbol, design or a combination of these that identifies the makers or seller of the product or services”. Kapferer (2004) expressed his views that a brand has the potential to drive the choices of customers. He further stated that this effect can be because of the physiological bonds of customers with the brand which are made over a prominent period of time.

Brand Equity

Aaker (1991) stated that brand equity can be referred as “a set of brand assets and liabilities linked to a brand, its name and symbol. How can companies create a distinct positioning in an overcrowded market and create, reinvent and sustain their competitive advantage? Among the many strategies that companies use, one of the useful ways has been to create a powerful brand that resonates with customers. Firms engage clients by offering interesting experiences and sticking the brand’s messages and myths deep in the customers’ minds, aligning with the culture and needs of the market. Such strategies to attach with customers allow companies to cut a distinct positioning and offer a distinctive and unique value proposition. As such, brand equity has always been viewed as a positive component of business strategies. It benefits companies by enhancing their insubstantial value and maximizing shareholder value.

There are number of definitions of brand equity in different literatures. Farquhar (1989) said that brand equity is something which increases the value of the manufactured goods. Aaker (1991), Keller (1993), Leuthesser (1998), Yoo and Donthun (2001). also presented definitions which are not different from the ones stated above.

Keller (1993) took brand equity as the gap between the brands from the view of the knowledge of the customers which effect the brand marketing. anticipates brand equity as the differential effect of brand knowledge on consumer response to the marketing. There is an assumption here that the capability of a brand is based on the experiences of the consumer at different phases of time.

Simon and Sullivian (1993) said that brand equity can be described as the additional satisfaction. Brand equity is described differently by different researchers and that is quite obvious. But all of them meant the same. Brand goodwill is considered as an asset and if we take the example of America, the banks issue big loans against the same goodwill. So brands goodwill can be taken as an asset. When the owners fail to return these loans that becomes a liability.

The study which we are doing targets on how consumers behave. We can elaborate brand equity through consumer behavior of customers and brand awareness, perceived quality, brand loyalty and brand image are the tools for that. From the point of view of the consumer these four tolls or dimensions are very important.

Brand Equity and its Attributes

Basically there are four main attributes of brand equity, which are as follows

Brand loyalty

Brand awareness

Perceived quality

Brand image

Brand Loyalty

According to Oliver (1999) brand loyalty plays a vital role in sustaining and enhancing the purchasing of the same product time and again, thereby customers comes again to buy the same products due to the their brand loyalty though, other brands also try to make the customers to switch from their brand with different marketing strategies and push the customers to change their brand loyalty.

Odin et al. (2001) viewed brand loyalty as habitual or physiological. Habitual loyalty Behavioral loyalty means continuation of purchases of a same brand. From the view of Dekimpe et al. (1997), it is very useful because it calculates practical behaviors which can be seen in daily routine. It is very simple to calculate.

Chaudhuri and Holbrooks (2001) said that the loyalty with a brand has a relation and aim to make sure that the customer will purchase the same product or service again.

Brand Awareness

According to Aaker (1991) and Keller (1993) brand awareness is one of the important parts of brand equity. Rossiter and Percy (1987) stated that the ability of the customers to differentiate or to know that how different the brand is from other brands is called brand awareness.

Keller (1993) said that brand awareness has a lot to do with the respect and acknowledgement that customers give to the brand. Moreover he stated that the identification of the brand by customers shows how well they remember the brands product.

Rossiter (1991) said that brand awareness is an important factor that can be a big reason for customers to buy certain brands and it can push them towards some brands asswell.

Hoye and brown (1990) as cited by Lin and Chang (2003), researched to find out the significance and effects of brand awareness when the consumers makes choices and make decisions about their purchasing. They came to a conclusion that brand awareness plays a vital role.

Jiang (2004) found that brand identification affects decision making of the customers, which deals with psychology of the customers.

Some people think that why is brand awareness so important? They have a bundle of customers and sales why do they spend time and money on it. But the answer is that there

are very few things which can increase sales than Brand awareness. The reality is that when more people are aware of your brand the result would be that more likely people will buy from you.

Perceived Quality

Aaker (1996) and Keller (1993,1998) was of the view that perceived quality is a fundamental aspect brand equity because it is related to the intention of the purchasing of the customers and their desire to pay a price.

Low and Lamb Jr (2000) stated that perceived quality is the opinion of dominance of a brand from other brands. Zeithamal (1998) viewed the concept as how people think think about its quality and what is their opinion about the brand.

Szymanski and Henard (2001) talked about the satisfaction and believed that perceived quality is the base of satisfaction. Perceived quality also gives value and importance to the consumers make them able to separate the brand they are using from the other brands as we know the same thing happens in brand association. Many Researchers after their research e.g Carman (1990), said perceived quality drives the decision making of the customers in a good way.

The purchase plans and decisions of the customers are affected by perceived quality which has a link with satisfaction said Taylor and Bakor (1994). So perceived quality is the consumers view and opinion about a brand and the quality of its products which makes them realize the differences of different brands.

Brand Image

Engel Blackwell and Miniard (1993) said that brand image is a mixed effect of brand bond or consumers point of view of the “brands physical and subtle relationship”.

Keller (1993) said brand image is something that evolved through the customer’s memory regarding a brand by that they make a awareness and alliance about that product

.

So, the existence of brand image is not in the facial appearance, its built or it specs ,it is something told by the marketers through advertisements, promotions.. The customers make an image of the product which is stored in their mind by the marketers. That is how the customers become known to some product. Their purchasing risk levels are also lowered. Researchers like Keller (1993) anticipated that brand image play an eminent role in brand equity.

Krishnan (1996) believed that those brands which have high brand equity experiences good bonds of people with the brand. Lassar et al. (1995) came to the conclusion that brands whose brand image is high in ranking have higher brand equity and get higher profits.

The term good brand image normally is linked with privileged brands said Kwon (1990) According to some researchers to some extent brand equity is controlled by the composition of the association of a brand .

Keller (1993) found out that encouraging, unique and tough associations are understood to provide a positive brand image which will create favoritism in the mind of consumers thereby growing the brand equity.

Some experts acknowledge that firm, exclusive, approving brand image enable the consumers to see the difference of their brand among other brands. It also help the customers to place the picture of the brand in their mind. Conclusively, we can say that brand image is the picture of the brand that is printed on consumers mind regarding its attributes.

Consumer Behaviour

Consumer behaviour can be viewed as risk taking. To better realize the effect of brand equity on consumer actions, it is necessary to see the sketch of brand equity.

Belch and Belch (2004) said that consumer behaviour is “the procedure and actions people engage in when penetrating, selecting, purchasing, using, evaluating and disposing of product and services so as to please their wants and craving”.

Dalqvist and Linde (2002) divided consumer behaviour into many segments i.e. rational, learned, unconscious and social behaviour and they are presented in these three steps:

knowledge→ Attitude→ Action.

Rational Behaviour

The consumers who have a rational approach takes information about the product and see how it can give them benefit. Using this information they evaluate their needs and what the product has to offer them and approach the product, then they take some practical step. They have two choices, to buy or not to buy the product. It happens when the customers are dealing in the purchase of some highly expensive products such as cars

Unconscious Behaviour

Some consumers have unconscious behaviour. They start with leaning themselves near the product. That can be a result of their conviction or faith. They collect information after that which is helped by the first step and then make a choice about wheather to buy or not to buy the product

Learned Behaviour

Learned behaviour is habitual. It does not have a lot to do with the choice. The consumers do not think a lot in this and do not make a table or chart of choices. This behaviour mostly is based on the habits. Example of such behaviour can be seen in everyday life for example purchasing a newspaper.

Social Behaviour

Some consumer’s behaviour are viewed as social in terms of buying. They purchase products with respect to their social needs and social environment because it is difficult for them to survive otherwise

Another thing which has a large effect on the consumer behaviour is referred as Culture. Kotler et al. (1999) suggested, personal and psychological likings and disliking, culture and social elements also effect the consumer behaviour big time other than social behaviour.

Cultural Factors

They are concerned with the culture or the way people lead there life and social class where a person finds himself.

Social Factors

It is concerned with family of the consumer and with the people he lives with.

Personal Factors

Personal factors are about the age, how much one earns, profession, attitude and the character of consumer.

Psychological Factors

They deals with awareness, keenness, knowledge, approach and idea of the consumers.

Consumer Buying Behaviour

Consumer buying behavior is highly concerned with how consumer thinks, his need of the product or the reason for buying a product, his fondness and the source through which he recognize. Consumers buying behavior can also be expressed as the buying habits of the last consumer. It is as complicated as the human mind and the most complicated issue in it is the fact that there are so many factors which have an impact on the purchasing plans or decisions of the consumers.

Kotler et al. (1999) viewed; that there is a procedure through which the consumer goes while buying and that is divided in five segments which are given below.

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Post purchase behavior

Kotler (1999)said that consumers does not necessarily go through all these segments in every purchase. He said that when we buy the routine products we do not have search for information and assessment. The consumers who have confusions about their purchase or sometimes finds it hard to decide that what to buy, passes through all these segments.

Need Recognition

It occurs when the consumers divide their trouble or desire. The need of the product may come from two ways of desires one could be the inner or interior and the other could be outer or exterior. One of the examples of the inner desire can be when we want to drink water or drink because we are thirsty. External desire may occur after watching a billboard of a product or after listening a commercial on the radio which induces the customer to realize the need of the product. So it is very important for the marketers to see that what desire is beneficial.

Information Search

It occurs when the customers start to gather information of the products through different means they may be commercials, promotions, from their friends and experience. These all things increases and update the consumers information and awareness of any certain brand..

Alternative Evaluation

In this stage the consumers analyze which brand is better for them. They calculate the benefits and classify the brand with respect to quality and price which is based on the information they have gathered.

.

Purchase Decision

This is the stage where consumers decides and purchase the product. Other factors such as unpredicted situations also affect the consumer’s knowledge

Post-purchase Decision

This is the stage where consumers check the performance of the product. Kotler et al. (1999) said that the consumers are satisfied when the product performs according to their expectation.

There are many differences in consumer’s behavior which rely on the kind of product the consumer is purchasing. Kotler et al. (1999) structured a model which was composed of four buyer behaviors.

Complex Buying Behavior

It occurs when the consumer gathers a lot of information because they are going to purchase a very good brand in terms of the quality so before the purchase they collect the information.

Habitual Buying Behavior

It is a buying behavior which is related to the buying of the products which is not purchased daily or in routine.

Variety Seeking Buying Behavior

It occurs wonder around and go to different places in search of a variety and differentiated products.

Dissonance Reducing Buying Behavior

It occurs when the consumer is engaged in the buying of a product because the product is luxurious or exclusive

Factors Effecting Perceptions of a Brand

Kotler (2005) said that perception is the process through which information is recognized, preferred, arranged by a person. Other factors which effect the perception of the consumer are:

Quality

This is one of the important factors considered by a customer while making a decision about the product. Uggla (2001) said that the term quality is an important and essential component of brand individuality.

Price

According to McDonald and Sharp (2000) in two ways the price can work as a tool while selecting some product, one is buying the product which is cheap enough to stay away from the possibility of damage or loss, the other way is buying a very expensive product to make sure that the quality is good.

Influence by Others

Kotler et al. (1999) said that the directions and advices of other people effects the decision making in making choices to a great extent. Mostly all the consumers talk to each other and share their experiences about the new brand or a new product when it comes into the market and seek each other’s approval. These opinions have a strong impact on the consumer behaviors. Culture can also effect the buying habits, culture also includes the values of the society and the relationships. Our groups and the family also effects the buying behavior.

Advertising

The major task of advertisement is to spread brand awareness. It plays the role of a bridge between the consumer and the marketers or the product. The message is conveyed through advertisement.. Aaker (1991) said that if the advertisement and promotion of the brand is done in the right direction it can help the brand stand tall in a strong position.

Packaging

This is the period of making the outlook of the product which is very important these days. According to Kotler et al. (1991), good packaging and outlook attract the consumers and results in increased sales. Packaging also sometimes works as a tool of advertisement.

Convenience

Lin and Chang (2003) said that the consumer will buy the product which is in his reach and accessible to him. They said that degree of how convenient the product is effects the consumer behavior very strongly.

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