An Investigation of Young Indian Consumer's Perceptions on Foreign Branded Apparels

Table Of Content

1. Introduction

2. Literature Review
2.1Customer Behavior
2.2. Theories of Buyer Behavior
2.3. Factors that influence on customer behavior
2.4. Brand and Brand Management
2.5. Brand Identity
2.6. Brand Differentiation
2.7. Branding Models
2.7.1. Brand Positioning
2.7.2. Brand Resonance
2.7.3. Brand Value Chain
2.8. Customer Mindsets
2.9. Advertising Brands
2.9.1. The AIDA Model of Advertising
2.9.2. Lavidge and Steiner Model
2.10. Background-The Indian Scenario
2.11. International Brands in India and their Entries

3. Methodology
3.1. Research Design
3.2. Research Approach
3.3. Quantitative Approach
3.4. Qualitative Research
3.5. Data Collection
3.6. Primary Data
3.6.1. Survey
3.6.2. Interviews
3.7. Secondary Data
3.8. Sampling

4. Findings and Analysis
4.1. Demographic Status
4.2. Age Distribution
4.3. Relationship Status
4.4. Employement Status
4.5. Customer Brand Knowledge
4.6. Customers textile preference
4.7. Customers Foreign textile preference
4.8. Buying Frequency of Customers
4.9. Place
4.10. Time Management
4.11. Relative Purchasing Frequency
4.12. Brand Characteristics
4.13. Buyer Satisfaction Levels
4.14. Foreign Apparels Purchasing Intensity
4.15. Impact of Social Media on Brands
4.16. Customers Expectations
4.17. Customer Feedback Forum
4.18. Interview Analysis
4.19. Demographics

5. Discussions
5.1. Demographics-Who Shops more
5.2. Branding-What they prefer
5.3. Place-Where they prefer to buy Brands
5.4. Branding-Why do they buy
5.5. Impact of Social Media on Brands
5.6. Expectations-What they expect from brands

6. Conclusions
6.1. Target Segments
6.2. Brand Loyalty is an Attitude
6.3. The need for Customization and Innovation
6.4. Access to Everyone to Everything
6.5. Virtually representing brands

7. Limitations
7.1. Recommendations

8. Reflection
8.1. The Learning Process
8.2. The Concrete Experience
8.3. Observation & Reflection
8.4. Concept Formation
8.5. Testing Implications in new situations

9. Bibliography

10. Annexure

List of Tables

Table 1: Questionnaire Design and Plan

Table 2: Customer Expectations on Foreign Apparels

Table 3: Customer Feedbacks

Table 4: Interview highlighted Inputs

List of Charts

Chart 1: Age of the Participants

Chart 2: Customer Preferences

Chart 3: Customer Brands

Chart 4: Customer Purchase Platform

Chart 5: Customer Brand drivers

Chart 6: Interviewee's Demographics

List of graphs

Graph 1: Demographic Status of Participants

Graph 2: Relationship Status of the Participants

Graph 3: Employments Status of the participants

Graph 4: Customer Preferred Brands

Graph 5: Customer time on Spending

Graph 6: Customer buying periods

Graph 7: Customer Satisfaction Levels

Graph 8: Customer and Social Websites

Graph 9: Interviewee’s age classification

1. Introduction

“In an age of hyper-competition, commoditization, globalization and rapid technological obsolescence, marketers are struggling to find new conceptual bases… There are two answers to the marketing challenge facing today’s companies. One is to know your customers better and get close to them. The other is to differentiate your offering through branding work so that the offering stands out as relevant and superior in value to a clear target market… Branding is much more than attaching a name to an offering. Branding is about making a certain promise to customers about delivering a fulfilling experience and level of performance” (Kotter 2005).

In this study, I would like to investigate the perceptions of Indian customers on foreign branded textiles. The focus of the study is to determine the behavior of young Indian customers and their perceptions on foreign apparels. The study also helps in determining the key factors] that are taken into consideration when they make purchasing decisions of foreign apparels using survey analysis and research methodologies. More attention given to brand and the factors associated with them that trigger the purchase behavior of customers. The outcomes analyzed in relation with the literature review and previous academic works by authors to arrive at the conclusion of the research.

The word “Brand” is one of the oldest traditional concept used to distinguish the goods if one producer from of the other. The word brand derived from Old Norse word “brandr” which means “to burn” as brands were and still are the means by which owners of livestock mark their animals to identify them (Douglas 2001). Many firms by now have realized that their brands associated with their products; are one of the most valuable assets to them.  Brands represents firms & firms offerings and branding has been an innovative approach used by the firms to tackle its competitors in the market.

History is that the brands used to represent the name or symbol of the firm that produce products and services, but in the current scenario, they are connected with the brands in such a bonding; that brands influence their final choice of purchase. Brands have ability to influence the way the Customers view products.

According to previous researches, brand awareness is a progressive process that influences the final decision of customers, which also proves that brand is more important than the products. (Cho, B., 2010)

The research demonstrated by (Padmanabhan, B., 2012) explored the roles of brands influencing Customer decision- making process among young Indian community. (Kotler 2005) also stated that brands triggers varied emotions of Customers and Customers perceptions about the products are directly biased with their brands. According to the statistics provided by (Jana 2013), 34.5% of Indian customers preferred to be foreign branded apparels rather than domestic apparels, as only 24.6% of the Indian customers preferred domestic apparel retailers. The survey was conducted in Asia, which included India, Indonesia, Philippines and Vietnam as primary target for the survey. The survey outcomes stated that majority of Asian Customers preferred to purchase apparels from the foreign branded providers.

However, there is also constant demand raising for the domestic apparel retailers in the market. According to the Joint Managing Director of Future Group Rakesh (Anon p1), “there is a significant rise in demand for desi (domestic apparels) in the market, especially for women’s ethnic clothing”. Which stated that despite the high end foreign luxury brands bombarding the Indian market with their products domestic retailers are pushing the in-house apparels towards an increasing demand.

Indian apparel market is huge. According to (Euro-monitor, 2013), a slight down in economic growth has led to the increased demand in foreign textiles. The influence of western wear, which had infiltrated the Indian culture, remained one of the biggest driving factors boosting gradual growth in sales. According to (Kulkarni 2012), the Indian apparel market is estimated to be worth U.S$ 3.2 billion in 2011-12 and is expected to grow at a compound rate, and the major players in the market are foreign branded apparels bagging more share than the domestic apparels.

From the background study it can argued that there is quite greater demand for foreign branded apparels in Indian market and brand plays a significant role for such a growth in demand. Therefore, it leads the study to answer certain questions that are raised in this research:

- What is the relationship between customer behavior and brands?
- Why there is a greater demand for foreign branded apparels in India?
- What characteristics of foreign apparels attract the national customers in India?
- What are the perceptions of young Indian customers of foreign apparels?
- What strategies can the global marketers adopt to promote their sales in India?

2. Literature Review

The aim of the literature review is to provide the readers with theoretical framework of theories and models, which are covered in the scope of the study. It is a brief description of what authors and researchers have published about the interests of the particular study. The chapter starts with defining customer behaviors and the components from various author’s perspective. These theories and models will be tested analyzed empirical evidences and using critical reflection the viability of the models will be tested. The chapter continues with describing brands and brand management, accompanying with brand building and brand building models. A short piece of history and current trends in the India retail market will be presented in this chapter.

2.1Customer Behavior

The term Customer behavior is a wide concept. Over many decades, the concept has gone through different phases. As the customers tastes and preferences changes, the market changes and so the firms changes. Customers behavioral changes has been subjected to many researches and studies by many professional authors and researches, helping firms and corporations to know their customers better than ever (e.g. Kotler, Armstrong, Saunders & Wong, 2001; Jobber, 2004; Keith 1960).

The generic statement or definition for Customer behavior refers to the study of how a person buys products and it involves quite a bit more, which because of the wide scope of the term Customer behavior. The study of Customers behavior has gained an increasing attention in the context of marketing, as the firms expand their needs there is an obligatory and increasing need to know more about their existing and new customers and their behaviors.

A customer can be anyone; every individual is a potential customer, who consumes things based on needs and according to the needs based on preferences and buying power. The business and market executives have a striving need to determine these preferences of the customers to design their policies that enables them to sustain in the market.

According to the American Marketing Association , “Customer Behavior is defined as the dynamic interaction of the affect and cognition, the behavior and environment through which people carry out transactions in their life (Bennett 1995, page 59). While from the perspective of utility theory, customer is a “rational animal” and their behavior is influenced by range of activities beyond purchasing”

(Zinkhan, 1992). (Bennett 1995), states that customer behavior is influenced by four factors; affect, cognition, buying environment & the behavior, while (Zinkhan, 1992), argues that customer behaviour is influenced on the utilities that they derive from the product when they make a purchase: An economic point of view while making purchase. As stated earlier, the concept Customer behavior has derived its definition from many authors from different perspectives.

“Customer behavior reflects the totality of Customers decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human) decision making units (Over time)”.

(Hoyer & Deborah 2008, p. 6)

“Customer behaviour that, it covers all the grounds that are related to selection of product or service, buying and then consumption of goods or services”

(Kotler, 2002)

“Customer behaviour is also defined as the dynamic interaction of affect and cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives”.

According to Kotler (2002), Customer behavior is study of processes that covers right from the evaluation of the products/services to the ultimate disposal of product or services. Solomon, Bamossy et al (2006) agreeing upon Kotler’s (2002) views they state, customer behavior is a study of analyzing how Customers select the products/services, use of them and disposal of the products/services that satisfy their needs. Both authors stress upon the fact that, customer behavior can be understood only when Customers processes of buying products/services are studies. However, Hoyer & Deborah (2008) stressed upon the process of decision making of buying products/services and argued that Customers behavior includes people, experiences and ideas that motivates decision making by adding further more elaboration for the term Customer behavior providing more scope to the concept. Whilst Bennett (1995), had completely different views on

Customer behavior as he argued that Customer behavior is an interaction identifying four elements in the process: affect, cognition, the behavior and buying environment, which is more related to the emotional aspects of the customers.

The important aspect that Bennett (1995) outlined was the interaction between the Customers behavior and the environment, as it is important to know this relationship as because environment has an significant bearing on the Customers behavior and so does the affect and cognition (Foxall, 1990).

While authors (Kotler 2002, Bennett 1995, Solomon, Bamossy et al 2006) stated that Customers behavior can analyzed when their processes of buying behavior is understood, Zinkhan (1992) had a distinct perspective on Customer behavior and argued that behavioral changes of Customers are subjected to the utilities that the Customers derive from the products/services. From Zinkhan’s (1992), customer is an rational animal and wishes to derive maximum benefits or utilities from the unit of money spent; an economic perspective on customer behavior which is likely to true as Customers behavior is influenced by the price factor.

Zinkhan’s (1992) perspectives on Customer behavior was influenced by Foxall’s (1990) views on customer behavior. According to Foxall (1990), Customer behavior consists a composition of five components simply like defining customer from five different perspectives.

Foxall (1990) analyzed Customer behavior from varying perspectives and stated that, from the “economic man” approach Customer are ration human beings and they are interested in making decisions themselves based on their abilities to maximize or to derive more utility expending minimum effort or minimum spending. This particular suggests the individuals that to make better decisions customers should be aware of alternatives in the market and should be capable of rating alternatives against others to make efficient decisions. However, such approach is skeptical because customers rarely have adequate information or time rate the alternatives.

Nevertheless, the economic approach has been wisely proclaimed by many authors (Zinkhan, 1992; Richarme 2007, Persky, 1995) which was first stated in 19th century. While (Schiffman & Kanuk, 2007) agreed with Foxall (1990) by stating that customers should be capable of evaluating alternatives to pursue a better course of action.

illustration not visible in this excerpt

Figure 1. Source Foxall (1990).  (2013) Self-Portrait [Customer Behavior Components]. Bangalore

.Contradictorily (Simon, 1997) had argued that the course of actions are no longer realistic in account of human beings; as Customers rarely have adequate information, motivation or time to make such a purchase which is completely perfect, but are often acted upon less rational influences such as social relationship values. (Simon, 1997) perspectives can be argued and stated that his views on Customers behavior were presented in 90’s, which is a long way down the history and customers & their behavior changes when subjected to time.

The development of economic theory gave rise to psychodynamic approach towards Customers in relation to traditional psychology: which is widely attributed to the work of behaviorist (Freud, 1994 & Stewart 1994). These authors defined Customers behavior using the traditional applications of psychology and defined as, behavior is subjected to biological influences through instinctive forces, which act outside of conscious thought.

According to (Freud, 1839; Stewart 1994) there were three facets of human behavior, ID, the EGO and the Super Ego and stated that the “Customers behavior is influenced and determined by biological drivers rather than individual cognition or environmental stimuli”. However (Freud, 1839) views were questioned by (Bennett 1995) and other behaviorists (Ribeaux & Poppleton 1978) as they identified different Customer behavior drivers which were completely different from Sigmund’s three facets.

Nevertheless, such psychological perspective gave more importance Customers emotional and behavioral aspects inducing the other researchers and authors to concentrate on the Customers body and verbal behaviors.

(Watson. J. B., 1920) researches on behavioral changes of Customers can be regarded as pinnacle in the study of Customer behavior. As his study popularly known as “Little Albert” involved a technique of governing behavioral changes, by teaching a small child (Albert) to fear otherwise begins objects through repeated pairing with loud noises. The study helped in explaining the theory that behavior is explained by external events and that all things do, including actions, thoughts, feelings that can be regarded as behaviors. This particular theory largely confronted the predominant theory of psychodynamic approach during the old times.

According to (Ribeaux & Poppleton, 1997), customers are termed as “information processors” which challenges the explicative power of environmental variables as suggested by behavioral approaches. The cognitive approach can be regarded as one of the oldest approach as because it is derived in a large part from cognitive psychology; proclaimed by early philosophers like Socrates when traced back into the history.

The cognitive approach has went underlying changes since 360 B.C, until it gathered a high importance when Stimulus-Organism-Response model developed by Hebb during 1950’s. According to stimulus-response-model, there is a linear relationship between the three stages with environmental and social stimuli acting as antecedents to the organisms assuming that stimuli to act depend upon an inactive and unprepared organism (Cziko, 2000).

The criticisms of cognitive models led to the development of humanistic studies on Customer behavior. According to (Natarajan & Bagozzi, 1999), cognitive models of Customer behavior neglected the role of emotions in behavior and decision making process.  While (Engel, et al 1986, p5) defined customer behavior from humanistic perspective as, those arts of individuals directly involved in obtaining, using and disposing economic goods and services, including the decision process that precede and determine these acts. The definition gives the readers a conceptual clarity of the term customer behavior, as it pertains to economic and behavioral acts of the customers.

2.2. Theories of Buyer Behavior

The buyer behavior theory (Howard & Sheth 1969) is theory that explains the empirical phenomena.  According to (March & Simon. 1958) buyer behaviors were rational which is bounded to buyer’s rationality.  (Howard & Sheth 1969) model described the various motives of this behavior and the purchase decision-making process, phases and components.

The model used to depict Customer behavior in selecting the desired brand from available alternatives that consists three main parts: a) a set of motives, b) several alternative course of actions and c) decision mediators by which the motives are matched with alternatives.

Motives: They are embodied in the brand significance and symbolism. They are largely influenced by social and environmental factors, particularly the things learned from family, friends and reference group. When the customer is just at the beginning purchase process (information search phases) he/she shall not be aware of particular brand or product, henceforth they are motivated to collect information about a brand from the environment around them. Howard & Sheth views are agreed and shared by many authors (Kotler 2005, Solomon et al) as the environment has a significant influence on the customer behavior.

Alternative Course of Action: When the buyer does not belong to the same product class, other brands turns to be alternatives of purchase for the buyer. Brands, which are alternatives of the buyer’s choice decision, are generally small in number, collectively called as “evoked set”. The evoked set is only a fraction of the brands the Customer is aware of in the market.

Decision Mediators: Decision mediators are the set of rules that the customer adapts to match his motives and his means of satisfying those motives. Motives are the urge to satisfy particular need of the customers and they serve the function of ordering and structuring the buyer’s motives and then structuring various brands based on their potentials.  The decisions of the buyer are influenced by the environment, and the customer tends to seek information about a brand from different sources.

The buyer may extent generalize from similar past experience, such generalization may be due to physical similarity of new product to an old product class.  Based on the information obtained, then buyer decides or make a buying decision based on his potential. If the brand proves satisfactory then the customer is likely to purchase the particular brand in the future.

As the brand satisfies the customer, he/she would engage in routine purchase of the brand or repetitive decision-making, by reducing the product class (which means the product is lesser value than the brand) and the larger is the evoked set (Howard & Moore, 1963)

2.3. Factors that influence on customer behavior

Many significant factors have a bearing on the customer’s behavior. Customers and their behaviors are subjected to internal and external environment conditions. (Howard & Sheth 1969) outlined few of such factors that has an impact on Customers behavior.

Time Pressure: Customer behaviors are subjected to changes in time. When the customer is pressured by time by several environment influences, he must or will allocate his time among the alternative uses. In such hustle-bustle, customers can make or experience unfavorable or wrong decisions while purchasing the brand. Time pressure will also avoid or restricts customers in searching of information about the brand.

Financial Status: As (Zinkhan 1995) argued that the customer is a rational animal and he/she looks for maximum utility for minimum spending, financial status of the customers can limit the purchase behavior as he may lack financial resources or he/she might perceive the product is over-priced when they are low in their resources. Financial constraints can create barriers around customer behaviors avoiding them from the purchases of most preferred brand.

Personality Traits: Customers are human beings with unsatisfying needs and emotions with them. As Sigmund Freud named the Ego, the Super ego and the ID, customers are filled up with different more variables as self-confidence, self-esteem, authoritarianism and anxiety and researches have outlined that these variable exerts their effects across the product classes. (Howard & Sheth 1969) believed that this effect is felt on nonspecific motives and the evoked set.

Social Class: Represents a higher level of social organization and several indices are available to classify people on their social class. Social class meditates the relation between input and output by influencing specific motives, decision mediators, the evoked set and the inhibitors

Culture: It provides a comprehensive framework than the social class. Culture is set of symbols, ideas, behavior and their attached values, which influences motives, decision mediators and inhibitors.

Howard & Sheth (1969) model can be viewed as dynamic model, which can be changed or modified by researchers. The model can be used satisfactorily in the multi brand products as a good learning tool regarding the various aspects of studying consumer behavior.

However, the contradictions are that, not all purchase decisions are systematic or sequential for all products. Some decisions are taken with no prior thinking or information search, which do not follow the model sequence. Unless there are various models and products, the model will be difficult to apply, for it emphasizes the existence of varied conditions.

Customer behavioral models are frameworks for future researchers. However, when interpreted closely and clearly there exist a vague understanding. As the behavior, patterns are researched from the product perspective; rather than the brand perspective (Zinkhan, 1992; Kotler, 2002; Solomon, Bamossy, 2006; Schiffman and Kanuk 2007; Foxall (1990). However, contradictorily, at a period: customer preferences were stressed upon product quality and quantity rather than the brand identity. Whilst the market and customer tastes have changed, customers prefer brands in the current market conditions (Anon 2012, p5)

2.4. Brand and Brand Management

The word “Brand” is one of the oldest traditional concept used to distinguish the goods if one producer from of the other. The word brand derived from Old Norse word “brandr” which means “to burn” as brands were and still are the means by which owners of livestock mark their animals to identify them (Douglas 2001). Brand is the image the firm has in public and more likely brand speaks about firm’s products and services.

“A brand is a set of associations linked to name, mark or symbol associated with a product or service. The difference between name and brand is that a name does not have associations; it is simply a name. A name becomes a brand when people link it to other things. A brand is much like reputation”. (Calkins 2005).

According to the American Marketing Association (AMA), a brand is a “name, term, symbol sign, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” (Keller 2009). A brand can be a label of owner company which we experience, evaluate, have feeling towards and build associations with the perceive value (Brakus et al, 2009).

A brand is more than a product, as because it differentiates from the product dimensions and designed to satisfy the customer in one way or the form. These differences can be tangible or rational, based on the performance of the brands, more like symbolic, emotional and tangible representation.  (Pallotta 2011), termed brand as a strategy, brand is a product and the story that tells together, concluding to state that brand is much more than a logo, brand is everything and everything is brand. (Pallotta 2011) views on brand is quite different from the traditional and oldest authors, which is contradictory to literature of the brand.

- Brand is your calls to action
- Brand is your strategy
- Brand is your customer service
- Brand is the way you speak
- Brand is whole array of communication tools
- Brand is your people
- Brand is your facilities
- Brand is your logo and visuals too

“Ultimately brand is about caring about your business at every level and in every detail from the big things like mission and vision to your people, your customers and every interaction anyone is going to have with you, no matter how small”. (Pallotta 2011). The term brand has numerous definitions; essentially brand is a way of differentiating company’s goods or services, from those of its competitors (Kotler 2009, p.  425). the important role of brand is to differentiate the products in the competitive market.

Brands play different roles in the market. Brand performs various functions for firms. They simply product handling or tracing, helps to organize inventory and accounting records (Kotler & Keller, 2009). Brand is also an intellectual property of the firm offering a legal protection for unique features for the firm’s offerings from the competitors. Customer evaluate products based on the products’ brand. The knowledge of brands can studied through experiences in the past with product and its marketing program. Latterly Customers decide which brands satisfy their needs and which one does not.

De Pelsmacker (2001, p. 35) states that investments in brand awareness and brand image can act as powerful instruments of marketing strategy, as they are “important vehicles on the road to long-term profitability”. Contradictorily, unnecessary brand investments could ideally lead to brand investment traps as brands have become increasingly fragile and difficult to sustain.

“History shows that even great brands, from A&P Zenith, are vulnerable to sudden collapse or to slow and devastating erosion.” (Roberts & Glynn 2010. P. 1).

According to (Stuart 1993 p.5), branding was infancy a century ago; people made most of the products popular which were daily consumable (e.g. food, soap and clothes), where Customers had faith in the quality as they knew their manufacturers, but in a post-modern era people tend to rationalize the producers. Brands played significant role in conceiving the Customers as brands started to process vital information to the customers.

2.5. Brand Identity

“Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members” (Aaker 1999, 68).

According Aaker, brand identity consists of 12 dimensions organized around four different perspectives: brand-as-product (product, scope, product attributes, quality/value, users, country of origin); brand-as-organization (organizational attributes, local versus global); brand-as-person (brand personality, brand-customer relationships); and brand as symbol (visual imagery/metaphors and brand heritage). (Kotler & Keller 2009, p. 280). Aaker’s relates brand with major core elements. He also emphasizes that brand identity also includes core and extended identity.

From the Customers perspective, a brand is an image or identity that transmits quality, trustworthiness, quality and increased satisfaction levels. If the particular product/service satisfies the individual, then the customer will respect the brand of the product as it has met his/her expectations of the need, if the satisfaction levels are low; then the customer will not be willing to make a purchase a particular of branded product.

According (Kotler & Keller 2009), there are six elements known as brand elements, which are served to identify and differentiate among different brands. These six elements plays significant roles in brand building and provides a defensive mechanism against the competitors in the market.

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Figure 2: Source Kotler P & Keller,L (2009)..K (2013) Self-Portrait [Elements of Brand]. Bangalore

- Memorable: How well the brand can be remembered by the Customers and easily recognized. For instance, brands like PUMA & Nike can be easily recognized.
- Meaningful: A brand should specify or communicate its product category. It should carry message about the particular product/service. Brands like COLA & Pepsi represents their product category as soft drinks.
- Likeability: How appealing the brands are to the customers or how Customers like about a particular for due to its significance. Fire station Ice parlors are suitable examples as evoke much imagery.
- Transferable: A brand should be able to introduce new products in its existence, which also may be different product category. How well a particular brand can travel across national boundaries? Introduction PUMA Social Clubs in India, the firm using an existing brand (Apparels & Footwear) introduced a social elite club for its customers, as its brand was transferrable.
- Adaptable: It is all about how a particular brand can operate or adapt in different markets. Adidas subdivided its brand in three product lines using the same brand, which can be termed as adaptability of a brand.
- Protectable:  A brand should be able to protect its products/services legally from the competitors. A specific brand should not be imitable and it is important that names become synonymous with product categories.

2.6. Brand Differentiation.

As stated earlier brands can differentiate with the competitor’s offerings by being distinctive in their features and capabilities. When brands are designed using (Kotler 2009) six elements they are more like to be distinctive and different from the competitor’s in the market. Well to be branded, products must differentiated at the same time.

Differentiation on the hand is grounded in how a brand is experienced which includes both tangible and intangible brand assets. Differentiation can happen, only when it is intrinsic that is based on a relevant and tangible asset that can be experienced through the senses, which can come through in look, feel, sound, smell or taste of a product (Hollis 2011. p. 4). Effective branding creates a perception that there is no other product, service, organization or community.

Whether the distinction is a result of function, form, ease of use price or prestige, the Customer believes that the firm has offered something exceptional (Stine 2010, p. 3). Integrated brand management starts by defining which elements of brands create differentiation and influence customer behavior, which emerges from the market research or in-market experimentation, which shows how existing and prospective customers make choices in a competitive market place. According to (Hollis 2011), it is far easier to create differentiation when the product is tangible and customer interests is high; e. g in fields such as technology, automotive or personal care. In categories where the offerings are intangible and genuinely indistinguishable, marketers are more reliant on extrinsic differentiation.

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