The concept and importance of branding is addressed in this paper. The effects of branding on customer relations are discussed. Ethical and legal issues related to the promotion of brands also are discussed.
Branding: The Concept and Its Importance, Effect on Customer Relations, and Ethical and Legal Issues That Affect the Promotion of Branded Products
Branding is the assignment of a name, term, sign, symbol, design, or some combination to identify a product, a product line, or a company. The goal of branding is to develop brand loyalty. Brand loyalty reflects the extent to which consumers seek a specific brand of a product as a part of their purchasing behavior, as opposed to selecting a product on the basis of cost, convenience of access., or some factor other than brand. In the absence of brand loyalty, there is little brand value (Zaichkowsky, 2010).
Brand loyalty is the outcome of the effect of branding on customer relations. Brand loyalty measurement typically involves three classification levels - brand recognition, brand preference, and brand insistence. Brand recognition describes the stage of consumer awareness wherein the consumer is knowledgeable of the existence of a branded product brand. Brand recognition alone, however, does not imply a preference for that brand over any other brand of the same product (Luo & Bhattacharya, 2006).
Brand preference is a reflection of the stage of consumer awareness related to a branded product that is based on prior experience with the branded product. A positive prior experience will cause a consumer to opt for that brand of the product if the brand is available at the time and the place of purchase. Conversely, a negative prior experience with the branded product will cause a consumer to avoid selecting the brand if any alternatives are available at the time and the place of purchase (Dimofte, Johansson, & Bag
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