Week 02 Hand-in Assignment KMGT-642, 160107, 1, Consumer Behaviour.201640-10 26the January 2016

Impact of Brand image/equity and extension and consumer behaviors

The main goal of advertisements is to improve consumer products knowledge. Whether introducing a new products or promoting and established products, the goal is to make the products memorable to the consumers. Whole the products knowledge can be very from one consumer to another, the consumers can have knowledge about the products attributes, the positive benefits of suing the products or the values that the product will contribute in achieving or the values that the product will satisfy. Whether it is the product class, products form, brand or the products model, it is immortal to note that these levels of products knowledge will depend on how much the consumer is interested in the product. The above level of products knowledge also varies from one person to another (Kumar et al., 2014).

Brand image is positively significantly correlated to the brand equity such that any feeling or perception that a consumer has about a brand can affect the consumers buying behaviors. For example, Razmdoost, Dimitriu, and Macdonald, (2015, pp. 392–407) argues that any products branded ex-UK or ex-US is considered to be of high quality. This is the same concept that most of the local franchising companies use to market their products. For example, despite having local cooks, and stewards, there are many fast food outlets that use the major brand names from UK, and US to market their products. A better example is the McDonalds in Dubai. The company’s success in Dubai is mainly because of the strong brand image associated with the name McDonalds (Rea, Wang and Stoner, 2014). On the other hand, Kempf, (1999, pp. 35-50) argues that brand image is therefore a very strong driver of sales and growth as it can significantly influences the potential customer’s attitude and perception about a products. It is the same concept that is also used with brand extension as consumers purchase a products or re-patronize a service because the brand name is associated with a another high quality brand or premium exceptional service experience. Brand image can be established through either functional elements, symbolic elements or experimental elements (Homburg, Koschate, & Hoyer, (2006, pp. 21–31).

Country of origin and consumer bewares

While most of the millennial are known to be risk takes, they are brought up in a conservative environment where most of the products they use were bought by their parents. For example, in most of the developing countries, almost 80% of the house ware is made in China (with the tag). In the US, most phones made in developing or third world countries are shunned because there is a general perception that they are of low quality (Yazdanparast, and Spears, 2012, pp. 415–421). Therefore, brand image can also affect brand loyalty. There are many high quality phones made in China with many features and are of high quality than the phones such as Xiomi. However, the general perception that the phones are of low quality and the poor brand image associated with the Chinese products affects the consumer’s intention to patronize or purchase (Keller, 1993).

Consumer products knowledge and consumer behaviors

Based on the research findings of Homburg, Koschate, & Hoyer, (2006, pp. 21–31). It is clear hat products knowledge can also significantly influence consumer behaviors positively or negatively depending on the customer’s perception about the brand. For example, Homburg, Koschate, & Hoyer, (2006, pp. 21–31) argued that with perfect products knowledge, a consumer become highly involved with a products that without the perfect products knowledge. There is a significant difference between high knowledge and low knowledge consumers in relation to product memory and patronage. Most consumers are known to engage in item specific cognitive information processing based on how the brand information was displayed (Razmdoost, Dimitriu, and Macdonald, 2015, pp. 392–407).

The effect of consumer product knowledge on business competitive strategy.

Consumers play important roles in products development and service design (Rea, Wang and Stoner, 2014). The same consumers can also influence business competitive strategy as the company strives to meet the consumer’s demands. When consumers have better product knowledge, they can demand high quality or low priced product, the desired products features as well as the company’s market entry and product packaging. In order to develop stable satisfaction judgments, the company must taken into consideration the consumer’s perception and product knowledge as this is the, only way that a company can developed a successful competitive strategy. Product involvement is the perceived relevance that a consumer attaches to a product and a customer’s inherent interest in a product. The company must therefore align its operations and the company’s business strategies with the consumer’s product’s knowledge or desire (Yazdanparast, and Spears, 2012, pp. 415–421).


In concision, proper product knowledge can determine the level of interacting that a consumer has with a product. In the study, it is clear that the formation process of customer satisfaction is highly dependent on the level of customer involvement with the products. If the customer believes that the precuts will help them realize their goals by meeting their needs, then the level of satisfaction can be high despite there being few instances when cognitive dissonance is felt. It is the duty of the marketer to ensure that they influence customer judgment. The customer’s cognition plays a more important role in purchasing decision and cognition than affect. Customer satisfaction may not be consistent over time. It is therefore the duty of the marketer to ensure that they manage affective aspects effectively.


Lee, B.-K. and Lee, W.-N. (2011), The impact of product knowledge on consumer product memory and evaluation in the competitive ad context: The item-specific-relational perspective. Psychol. Mark., 28: 360–387.

Yazdanparast, A. and Spears, N. (2012), Need for touch and information processing strategies: An empirical examination. Journal of Consumer Behaviour, 11: 415–421.

Kumar, A., Besharat, A., Lindsey, C. and Krishnan, S. (2014). Contextual and Competitive Interference: Inhibition or Facilitation?. Journal of Advertising, 43(3), pp.228-243.

Keller, K. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), p.1.


Rea, B., J. Wang, Y. and Stoner, J. (2014). When a brand caught fire: the role of brand equity in product-harm crisis. Journal of Product & Brand Management, 23(7), pp.532-542.

Kumar, A., Besharat, A., Lindsey, C. and Krishnan, S. (2014). Contextual and Competitive Interference: Inhibition or Facilitation?. Journal of Advertising, 43(3), pp.228-243.

Homburg, C., Koschate, N. & Hoyer, W.D. (2006) ‘The role of cognition and affect in the formation of customer satisfaction: a dynamic perspective’, Journal of Marketing, 70 (3), pp. 21–31,


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