Impact of Brand Image on Consumer Buying Behavior

Question: Discuss about the Impact of Brand Image on Consumer Buying Behavior. Answer: Introduction: Accounting is a technique of identifying, recording, analyzing, evaluating, summarizing and communicating important financial information to internal and external users with an aim to assist them in interpreting relevant data (Weil, Schipper Francis, 2013). Managers use accounting information to understand consumers preference and their buying behavior. Every organization must design effective accounting system to provide timely and accurate report to various departments including the marketing department so that these departments can use the information for understanding and forecasting important matters (Aguilar et al., 2013). Thus, effective accounting practice is beneficial to entire organization. Profession and being professional: Profession is an occupation for which individuals undergo formal training and acquire intensive education through professional courses from recognized university or educational institution. Professionals provide counseling and services to clients and charge a predetermined compensation in turn, irrespective of whether the client incurs loss or earns profitability from the business (Aguilar et al., 2013). Professionals are generally not involved in any physical labor. They are competent in providing mental labor in the area of their expertise. They follow strict code of conduct and represent a body of professionals (King Fitzgerald, 2016). Accounting as a profession: Accounting profession has definite principles, methods and fundamentals and thus it is actually a pure profession. Accounting professionals can be private accounting professionals who work as an employee in an organization or public accounting professionals who are self employed and obtain a license to practice on their own. Accounting professionals can be engaged in different areas of specialization depending on the degree that they obtained and keen interest that they have in a particular subject (Carrington et al., 2013). The demand for accounting professionals has been rising continuously. Every economy is suffering from big corporate frauds and scams. Professional accountants play an important role in fighting corporate corruptions and fraud. The role of professionals like Income Tax officers and auditors in the corporate world is given due importance. Various legislations have made the audit of company by independent auditor mandatory for every accounting period. The auditors can help in preventing fraud by giving an independent, true and fair view of the accounting position of the company (Rezaee Kedia, 2012). Income Tax Officers ensure that the tax obligations are met within due date. Buying behavior is the study of pattern of purchase and consumption of various products and services by ultimate consumers be it individuals or group of individuals for personal consumption or organizations for business purpose (Solomon, 2014). Brand image is the set of beliefs and overall impression of prospective customers about a particular brand (Rocereto, Kwak Puzakova, 2015). It indicates the position of a brand in the market as compared to other substitute and competitive products. Consumers form an emotional and mental image with regard to a brand through observation and accumulation of knowledge about the company (Anselmsson, Vestman Bondesson Johansson, 2014). Accounting plays an important role in formation of brand image and thus it affects consumers buying behavior as well. Companys Income Statement and Balance Sheet shows the financial position of the company. It helps consumers to understand the liquidity, cash flow, net worth status of the company. Consumers use annual reports and other available data to evaluate the reputation of the company. Accounting also provides data, which are specific to customers. These data give details about the order processing, shipping details and commitment of the company to deliver the products on time. Thus, if a company fails to meet the expectation of customers, it affects the buying behavior negatively. If the reports show that the company is committed to provide quality service, the consumers tend to get attracted towards the brand. To explain the concept of brand image and consumer buying behavior To indicate the components of consumer buying behavior To discuss the impact of brand image on consumer buying behavior. Objectives and Research Questions: Which the term brand image means What is the concept of consumer buying behavior What is the impact of brand image on consumer buying behavior? How can the company create a good brand image? Time Horizon: Main activities Week 1 Week 2 Week 3 Week 4 Week 5 Study of Contextual Background v Selection of the Topic v Collection of secondary data v Composition of literature review v Results and findings v Analysis of the report v Conclusion v Final submission v Figure 1: Gantt chart Created by: Author Consumer Buying Behavior: Consumer buying behavior is a complex term, which is concerned with different aspects of buying behavior from the decision to purchase to the final disposal and use of the product or service (Solomon, 2014) The following diagram shows systematic process of consumer purchasing decision influenced by consumer buying behavior: Different research methods are used to analyze what makes a particular consumer to buy a product and reject another (Claiborne Sirgy, 2015). Consumer buying behavior is influenced by various factors like personal psychological factors, prevailing political and legal factors, the existing geographical social conditions and marketing promotion strategies adopted by the company. While studying consumer behavior, not only the activities and decisions undertaken by consumers before purchase of the product, service, experience or ideas are considered but also the disposal and consumption activities of consumers are taken into account. It is a difficult task for marketing managers to predict and understand the consumers and their buying behavior (Juster, 2015). Consumer buying behavior is affected by following factors: The cultural factors Social factors like family, friends and other reference groups Personal factors like age group, gender, nationality Psychological factors like motivation and perception. Brand Image: Marketing managers are always concerned about maintenance of brand image. Brand is a unique feature of a product, which distinguishes it from the products of the competitors. A brand may be the name of the company, its logo or any other sign or symbol which defines and differentiates the product (Anselmsson, Vestman Bondesson Johansson, 2014). A customer evaluates all the available brands to which he has access and develops brand relationship based on the differentiating features, which attract mind of the customer (Tukej, Golob Podnar, 2013). Brand image is considered one of the most valuable assets a company can have and indicates all the visible traits, visible representations, tangible and intangible qualities of the product (Rocereto, Kwak Puzakova, 2015). Brand image is specifically related to a product or service and indicates expectation of the customers to meet the promises . Impact of Brand Image on Consumer Buying Behavior: Brand image is one of the most important factors that influence the consumer buying behavior. In industries like banking and tele- communication, brand image plays significant role in influencing consumer-buying behavior. Consumers evaluate different attributes of a product before making a purchase decision (lensen, 2015). If the product has a great brand image, it directly influences consumer perception about the product, which ultimately affects the purchase decision-making process. Researchers consider study of brand awareness and brand image as the first step in conducting the research on consumer behavior (Malik et al., 2013). A great brand is the psychological and intangible value of a product that the customers have in their mind. Customer satisfaction creates customer loyalty and customer preference, which ultimately result in brand image. If a product has a good brand image but the consumers have negative buying behavior, the company has scope to increase the sales by creating good brand image through various marketing strategies. Good brand image and positive buying behavior is the win-win situation. If the consumers have positive buying behavior towards a product but the product has a bad brand image, there are high chances that consumers will change their preferences. Again bad brand image and negative behavior requires urgent attention of marketing managers to improve the situation. Findings and analysis: Consumer buying pattern is very unpredictable and is a matter of concern for marketing managers (Kardes, Cronley Cline, 2014). The main motive of a company engaged in providing any kind of services, ideas, knowledge or product is to beat the competition and attract consumers to buy their product instead of those of the competitors. In formulating the marketing strategies, the companies always consider how consumers perceive the products that the company is offering. The consumer perception depends on the ability of the company to meet their expectation and is termed as brand image. If the company fails to keep the promises it makes, it affects the brand image. The consumers shift their buying decision to some other alternative. Brand image is an invaluable asset, which is difficult to regain in this competitive market. Thus, every company tries to maintain and improve the brand image in the eyes of customers. Conclusion: It can be concluded that accounting as a profession has very bright future. The importance of accounting professionals is rising day by day. Accounting plays an important role in marketing management too (van Helden Alsem, 2016). It provides information to consumers on which the consumers base their decision. Apart from the financial position, brand image is a factor, which influences the buying decision of consumers. Consumers make their purchase decision after evaluating a number of tangible and intangible key attributes of the product. Brand image reflects these attributes and is a sign, symbol, name or logo of the company, which is widely used by the consumers to recognize the product. Brand image is considered the most important factor in influencing consumer buying behavior. The consumer perception about the quality is influenced by the brand image. This perception has direct impact on consumer buying behavior. Hence, it can be said that brand image has direct impact on consum er buying behavior. References: Aguilar, A., Stupans, I., Scutter, S., King, S. (2013). Towards a definition of professionalism in Australian occupational therapy: Using the Delphi technique to obtain consensus on essential values and behaviours.Australian occupational therapy journal,60(3), 206-216. Anselmsson, J., Vestman Bondesson, N., Johansson, U. (2014). Brand image and customers' willingness to pay a price premium for food brands.Journal of Product Brand Management,23(2), 90-102. Carrington, T., Johansson, T., Johed, G., hman, P. 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