It is easier for consumers to consummate transactions when they are aware of sellers and, moreover, when they have confidence that sellers will deliver as promised. The reputation of sellers - or the brand - is one means by which businesses have traditionally promoted buyer awareness and bonded their promises to deliver (Klein & Leffler, 1981). Brands as "a collection of perceptions in the mind of the consumer" (Bates, 2006) are relevant for many choice and purchase decisions (Meffert, 2000). Consumers link a range of associations to a brand, from associations that include characteristics which can be perceived by the senses (e.g., an engine’s horsepower, a product’s design, or a brand’s visual presence in visual or promotional campaigns) to characteristics associated with a brand’s identity (origin, reputation, and personality); and from perceived rational benefits (the product and its functions, the transaction process, or the relationship between the consumer and the brand/supplier) to emotional benefits which consumers perceive to be related to a brand (self-expression, image transfer, or self-realization) (Perrey et al., 2003; see also Aaker, 1996). By delivering all this information to consumers, brands can facilitate consumers’ purchase decisions. At the same time, information provided by sellers and by third parties can be an alternative mechanism for making consumers willing to undertake transactions. Through the Internet 1 , an ever-increasing amount of information from branded sellers, unbranded competitors, and third party information providers (“information intermediaries”) is provided to consumers. Consumers are now able to obtain objective, trustworthy information on retailers’ existence and reliability as well as products and services in real-time, at any time from virtually any place in the world - markets become increasingly transparent and information asymmetries between sellers and buyers decrease. The so empowered consumers may, as a consequence, become willing to patronize lesser-known, rather than branded, retailers (Deregatu, Rangaswamy & Wu, 2001). [...]
Table of Contents
- Introduction
- The research area - The changing role of brands in the age of empowered consumers
- Brands
- The role of brands
- Functions of brands
- Functions of the Internet on markets
- Brands in the online environment
- The relative importance of the Internet as a touchpoint with the brand
- Particularities of branding in the Internet
- The changing role of brands and the empowerment of consumers
- Purchase decision process
- Problem recognition
- Information search
- Manufacturers' and dealers' homepages and online shops
- Experts' homepages
- Cybermediaries
- Consumer-to-consumer communities
- Evaluation of alternatives
- Purchase
- After-purchase evaluation
- Effects of consumer empowerment
- Information as a substitute for functions of the brand
- The frame of reference
- The empirical study
- Synopsis of primary and secondary research results
- The changing role of intermediaries and online retailers
- Impacts on price and quality
- Implications for brand management
- Conclusions
- Summary and key findings
- Limitations and future research issues
Objectives and Key Themes
This master's thesis aims to investigate the evolving role of brands in a marketplace characterized by empowered consumers, particularly focusing on the impact of the internet. The study explores how increased consumer access to information and online interaction modifies traditional brand functions and the purchase decision process.
- The changing role of brands in the digital age
- The impact of the internet on consumer behavior and brand perception
- The influence of online information on the purchase decision process
- The effects of consumer empowerment on brand management strategies
- The shifting roles of intermediaries and online retailers
Chapter Summaries
Introduction: This chapter introduces the research topic, focusing on the changing dynamics between brands and empowered consumers in the digital era. It sets the stage for the subsequent chapters by highlighting the increasing influence of the internet and readily available information on consumer purchasing decisions and brand strategies.
The research area - The changing role of brands in the age of empowered consumers: This section provides a foundational understanding of brands, their functions, and the impact of the internet on market dynamics. It delves into the specific role brands play, the various functions they serve, and how these functions are affected by the increasing accessibility of information online. It lays the groundwork for understanding how the internet alters the consumer-brand relationship and the overall market landscape.
Purchase decision process: This chapter details the stages involved in consumer purchasing decisions, focusing specifically on how online resources and increased information access impact each stage. From problem recognition to post-purchase evaluation, the chapter analyzes how empowered consumers utilize online tools and communities to gather information, compare alternatives, and ultimately make purchasing decisions. It emphasizes the role of various online resources, such as manufacturer websites, expert opinions, and consumer communities, in shaping the consumer journey.
Effects of consumer empowerment: This chapter examines the consequences of increased consumer empowerment, particularly focusing on how readily available information alters the traditional functions of brands. It delves into how this access changes the roles of intermediaries and retailers, and analyzes the impacts on pricing strategies and product quality perceptions. The chapter explores the implications of these changes for effective brand management in the new landscape.
Keywords
Brand management, consumer empowerment, internet marketing, online branding, purchase decision process, information asymmetry, digital marketing, brand functions, consumer behavior, online retailers, e-commerce.
Frequently Asked Questions: A Comprehensive Language Preview
What is the overall topic of this research?
This research investigates the evolving role of brands in a marketplace characterized by empowered consumers, particularly focusing on the impact of the internet on brand functions and the purchase decision process. It examines how increased consumer access to information and online interaction modifies traditional brand strategies.
What are the key themes explored in this research?
The key themes include the changing role of brands in the digital age; the impact of the internet on consumer behavior and brand perception; the influence of online information on the purchase decision process; the effects of consumer empowerment on brand management strategies; and the shifting roles of intermediaries and online retailers.
What aspects of the purchase decision process are analyzed?
The research analyzes the entire purchase decision process, from problem recognition to post-purchase evaluation, examining how online resources and increased information access impact each stage. It explores the role of various online resources, including manufacturer websites, expert opinions, and consumer communities, in shaping consumer choices.
How does the research define "consumer empowerment" and its effects?
Consumer empowerment refers to the increased access to information and online interaction that allows consumers to make more informed purchasing decisions. The research explores how this readily available information alters traditional brand functions, changes the roles of intermediaries and retailers, impacts pricing and quality perceptions, and ultimately necessitates shifts in brand management strategies.
What are the main findings or conclusions of this research (as summarized)?
The research summarizes key findings related to how readily available online information acts as a substitute for some traditional brand functions. It also highlights the changing roles of intermediaries and online retailers in the new landscape of consumer empowerment. The implications of these findings for brand management in the digital age are discussed.
What are the limitations and future research issues identified?
The research acknowledges limitations and suggests avenues for future research, likely focusing on further exploration of the effects of consumer empowerment and the evolving landscape of online brand management. Specific limitations and future research directions are detailed within the full text.
What specific online resources are examined in relation to the purchase decision process?
The research examines the role of various online resources in the purchase decision process, including manufacturers' and dealers' homepages and online shops, experts' homepages, cybermediaries (online intermediaries), and consumer-to-consumer communities.
What is the purpose of the chapter summaries provided?
The chapter summaries offer a concise overview of the key topics and findings presented in each section of the research, providing context and highlighting the progression of the argument.
What are the keywords associated with this research?
The keywords associated with this research include brand management, consumer empowerment, internet marketing, online branding, purchase decision process, information asymmetry, digital marketing, brand functions, consumer behavior, online retailers, and e-commerce.
- Quote paper
- Gunnar Klaming (Author), 2006, The changing role of brands in the age of empowered consumers, Munich, GRIN Verlag, https://www.grin.com/document/63919
