For more than a century, the use of brands as a means of first identifying a product and then acquiring and maintaining consumer loyalty to that product and its manufacturer has been a key element in marketing activities (Berthon, Hulbert, and Pitt, p. 53). It is generally assumed that brands "create a distinction among entities that may satisfy a consumer's need. This primary distinction is the origin of a series of benefits for both the buyer and the seller (Berthon, Hulbert, and Pitt, p. 54). Brands are perceived as having the capacity to reduce search costs for consumers, to assure quality and reduce perceived risk, and to impart status and prestige to purchasers. For sellers, brands are regarded as fostering repeat purchases, facilitating new product introductions, consumer loyalty, and promotional efforts, and conveying a coherent product and company message.
Frederick Webster (p. 17) has described brands as a fundamental link between manufacturers and consumers, and noted that brands have been used by manufacturers to reach out directly to consumers - thereby reducing the strength of the relationship between consumers and retailers. Implicit in the brand-consumer relationship is the development and enactment of a psychological process by means of which a consumer elects (or is drawn or "pulled") to make certain purchases based upon brand appreciation or loyalty. At issue in this report is an analysis of the decision-making process a consumer goes through in purchasing a branded as opposed to generic products. The report will demonstrate that manufacturers have, in the last century or more, used brands to acquire more control over their marketing channels as well as over the consumer (Webster, p. 18).
Theoretical Understanding of Consumer Behaviors
A market demand curve is the sum of individual household decisions about how many units of a particular product to purchase at varying price levels. This type o...