Why Copying Your Competitions Content Marketing Doesnt Actually Work

What are my competitors writing about? Why did their new blog post get so many shares? What are they doing that we’re not? As a content marketer, it’s natural to be curious about your competition. However, copying their tactics in the hope of replicating their success is a common mistake among content marketers. Here, we’ll look at why imitation is a bad idea and explain what you should do instead. Free Actionable Bonus: Looking to elevate your content strategy? Get our our complete guide to creating a content strategy, plus a free content planning template and a list of 30+ places to distribute content Your Competitors Don’t Know What They’re Doing Okay, maybe not all the competition is totally clueless, but in terms of content marketing, many of them are as in the dark as you are. Some will also be copying their competitors, who are copying their competitors. So if you copy anyone, you could simply be copying an imitation of an imitation. According to research from the Content Marketing Institute, 63 percent of businesses don’t have a documented content marketing strategy. So if your competitors don’t have a real plan, how can their strategy have any relevance to your business? Tip: Don’t waste your limited resources on untested strategies. Instead, trust your own judgement. By developing your own ideas and analyzing the results of your own efforts, you’ll find out what actually works. And this approach is crucial to developing an authentic brand voice. Authenticity is the New Marketing Currency Modern consumers are tired of being lied to. To succeed as a business today, you need to be authentic. If you sound like every other brand, you’re unlikely to be remembered. In a Pardot report, 80 percent of people cite â€Å"authenticity of content† as the most influential factor in their decision to follow a brand. Tip: Whatever your niche, stay true to who you are; it’s the best way to stand out from the crowd. Think about what makes your brand unique. Tell personal stories and use testimonials to build trust. Be transparent and don’t be afraid to be different. Your Audience is Unique You may be in the same industry as a competitor, but your audience may prefer different types of content. Perhaps they respond more to short blog posts or love sharing visual content. Your competitors don’t know your audience like you do, so copying their style of content may not work. Tip: Deliver a variety of content formats and analyze the results. Get genuine feedback from your followers on social media. Ask your audience directly what content they prefer. Your Goals Are Unique Your competitors may be running a paid advertising campaign for a limited period. They may have gated content that’s only available to certain email subscribers. It’s virtually impossible to identify their content marketing successes, because you don’t have access to their analytics. Tip:Focus on what works for you.Start by defining your marketing goals. Do you want to build your email list, or drive website traffic? When you know your goals, you can measure the results and then form a content strategy that is built on past successes. You Don’t Have the Same Resources Even if a competitor’s content marketing tactics seem to be working for them, it’s probably because they have enough resources to make it work. Do you have the same amount of staff, the same access to software, and a vast marketing budget? According to Chris Von Wilpert, Sumo’s chief content strategist, they spend around $40,000 a month on writers, editing, and promotion. If you’re a small business, it’s unlikely you can replicate what they’re doing, even if you wanted to. Tip: You can only make the best use of the resources you have. However, building an effective content marketing team doesn’t have to break the bank. Hire quality writers that know your industry, and treat them well. When you offer competitive rates of pay, they’re more likely to produce high-quality content that can outshine the content of your biggest competitors. The Bottom Line: Don’t Imitate, Innovate It’s only natural to want to emulate the best, but copying your competition’s content marketing is ultimately a road to nowhere. Developing a content strategy to meet the needs of your own audience will be more effective in the long run and help to differentiate your business from the competition. In summary: Focus on what makes your brand unique. Find out what topics your audience cares about. Test different content formats. Hire the best writers and treat them well. Define your goals, define your target audience, and define what content success looks like. Track everything you do so you can discover what works and what doesn’t. Be consistent, and be patient. Successful content marketing is a long-term game. If you follow these suggestions, you can develop a content strategy that suits your unique business, doesn’t stretch your resources too far, and plays to the strengths of your team. This way, you’ll be more memorable and distinctive, and give your target audience a reason to believe in your brand. Do you need unique content for your business? Constant Content’s is a content creation service that connects you with thousands of talented freelance content writers.

SMS Quotes to Text to a Loved One

SMS Quotes to Text to a Loved One In todays hi-tech world, love has also gone hi-tech. While people still believe in expressing their love, they want to communicate their feelings instantly. The use of the internet and mobile technology has enabled instant communication. So if you are one of those tech-savvy individuals who want their feelings to be known right away, using the following SMS love quotes will serve your purpose. Short Love Quotes You Can Text W. E. HenleyOpen your heart and take us in,Love - love and me.Sarah BernhardtYour words are my food, your breath my wine. You are everything to me.David ReedLove me and the world is mine.Herman HesseIf I know what love is, it is because of you.AnonymousWithin you, I lose myself, without you, I find myself, searching to be lost again.James J. WalkerWill you love me in December as you do in May,Will you love me in the good old-fashioned way?When my hair has all turned gray,Will you kiss me then and say,That you love me in December as you do in May?Erica JongLove is everything its cracked up to be. Thats why people are so cynical about it... It really is worth fighting for, risking everything for. And the trouble is, if you dont risk everything, you risk even more.AnonymousAs I gaze upon your beauty, I think to myself, never have I seen an angel fly so low...Elizabeth Barrett BrowningI love you not only for what you are but for what I am when I am with you.Shirley BasseyId like to run a wayFrom you,But if you didnt comeAnd find me... I would die.Ibn AbbadMy night has become a sunny dawn because of you.HobbesI think we dream so we dont have to be apart so long. If were in each others dreams, we can be together all the time.AnonymousOnly a person who has not felt true love can move on in life saying There are lots of other fish in the sea.Dick SutphenLove me without fearTrust me without questioningNeed me without demandingWant me without restrictionsAccept me without changeDesire me without inhibitionsFor a love so free...Will never fly away.Steve WinwoodThink about it, there must be higher loveDown in the heart or hidden in the stars aboveWithout it, life is a wasted timeLook inside your heart, Ill look inside mine.Antoine de Saint-ExuperyAnd now here is my secret, a very simple secret; it is only with the heart that one can see rightly, what is essential is invisible to the eye.Henry David ThoreauI love you not as something private and personal, which is my own, but as something universal and worthy of love which I have found. AnonymousJust because somebody doesnt love you the way you want them to, doesnt mean they dont love you with all they have.

Analysis of all constitutes of successful service delivery Essay

Analysis of all constitutes of successful service delivery - Essay Example Thus, prior to direct interaction with the service, consumers form own expectations about experiences related to the service consumption. In such way, customers establish own standards against which in the future the quality of the service received will be compared in accordance with the disconfirmation model. In case if the expectations about the service consumption were greater then the actual quality of product received, the outcome is negative disconfirmation or, in the other words, dissatisfaction with the service received. Whereas, if the expectations were smaller then the quality of the services received, the outcome is positive disconfirmation or product satisfaction. (Lovelock, C., & Wirtz, J. 2004). The higher customer satisfaction is, the greater is the possibility of customer loyalty in the post consumption stage. Thus, customer satisfaction and loyalty are directly related. The concept of customer loyalty is of vital importance as repurchase of services gives significant advantages to the service producer: a continuous stream of profit, reduction of marketing costs, growth of per-customer revenue, decrease in operating costs, increase in referral, increase in price premium (Youjae, Y., Suna, L. 2004). In relation to the customer loyalty, the service recovery concept should be emphasized, as customer loyalty is often seen as a consequence of successful service recovery. ... Thus, service recovery significantly influences customer's attitudes alongside with behavioral intentions and results in a possibility of customer loyalty when successfully executed (Lovelock, C., Patterson, P.G., & Walker, R.H. 2001). Customer Expectations of Services: Formation As previously stated, customer expectations are formed during the first two stages of customer purchase decision and are closely related to knowledge about a service a customer already has. The expectations formation process is not only influenced by marketer's communications, but also is shaped by word of mouth communication, past experience, and personal need. While marketer's communication is a relatively simple concept, word of mouth communication and past experience should be further categorized. Scholars distinguish two sources of customer knowledge about a service: external research and internal research. While internal search is directly linked to previous experiences and influences both the level of desired and expected services, external search category unites implicit and explicit promises (marketer's communication) and word of mouth secondary information received from second sources. Consequently, the two major types of knowledge are distinguished: experience and familiar ity, knowledge received through direct involvement and second hand knowledge, respectively (Palmer, A. 2001). Customer service expectations can be categorized into 5 overall dimensions: reliability, tangibles, responsiveness, assurance, and empathy. The formation process is affected by numerous factors; in general, price is considered to be the dominant one. In the article "Understanding Customer Expectations of Service" by Parasuraman, A., Berry, Leonard L., Zeithaml, Valarie (1991), authors

The Key Factors Dictating Stalins Attitudes And Policies Toward Essay

The Key Factors Dictating Stalins Attitudes And Policies Toward Religion - Essay Example There is no politician accused in so many uncommitted crimes. How to understand this ambiguous personality? The best way is to address the documents and the recollections of the people who were acquainted with him. Stalin’s regime is characterized by mass repressions of 1937-1939 and 1943. This period is also characterized by extermination of the outstanding figures in the field of science and art, church and religion persecution, forced by industrialization that turned that USSA in to the state with one of the strongest economies in the world. Stalin’s regime was also the period of collectivization that led to agriculture downfall, mass escape of peasants form villages and the famine of 1932-1933. There are many questions around Stalin’s personality, which can be addressed in this paper: if Stalin was despot in relation to his companions and subordinates, if he really was unskillful leader and impeded the process of the war, why Stalin’s contemporaries co nsidered him to be brainy. All these questions are very interesting to be answered, however, the given paper will investigate Stalin’s attitude towards religion: what it was and how it was formed. *** Stalin is one of the greatest oppressors. He was a master of destinies of millions of people. The Soviet Union was focused on eradication of religion. It is incredible, but Stalin thought that it was necessary to take away the most important trigger of human spirit, which is religion. Stalin positioned himself as God. He wanted to be the most powerful human being in the world. Physical features of Stalin and his middle height were hidden behind his artificial power. He was unattractive pygmy, who wanted to compensate his physical vices by his cruel intentions taken against other people. Therefore, the Communist regime was enriched at the expense of church resources. Religion was ridiculed and the believers and followers were prosecuted. Atheism was promoted at schools, but the C ommunists wanted to position their beliefs as the most important and the crucial for the society. Anti-religious campaigns of Stalin’s policies were focused against the Russian Orthodox Church. This religion had the largest number of followers. There were 50,000 churches, but in the result of this anti-religious policies only 500 remained open. Nazi Germany attacked the Soviet Union in 1941. After that year Stalin was promoting patriotic feelings of his nation and restored the Russian Orthodox Church. By 1957 about 22,000 Russian Orthodox churches had become active. Other types of religion were also oppressed during the regime of Communists. Attacks on Judaism were dangerous in the Soviet period. Religious practices of Judaism were almost forbidden and the followers were prosecuted. â€Å"Nonetheless,  Davies  discovered  that  throughout  the  periodbelievers  could  be  found  among   all segments  of  society.  The  population  stubbornly  resisted  official  antireligious  propaganda.   Moreover,  the  church  held  special  attraction  for  it  continued  to  provide  a  type  of  entertainmentwhen  other  diversions  were  lacking†Ã‚  (Dunn 2004, p. 156). It was a kind of entertainment for people to go and take part in different forbidden rituals. Russians were positioned as those, who were prevented from following their own religious beliefs or any other triggers for their possible normal functioning in the society. In the majority of cases average Russians were positioned in opposition to other nations. At the same time, Russians were not totally prosecuted; they were put under a strong control and supervision of their almighty rulers. Communism was ever existent form of ruling and oppression in

The use of behaviourism theories on a social work case study Essay

The use of behaviourism theories on a social work case study - Essay Example This research will begin with the statement that the beginnings of social work are focused on the principle of providing aid to the people. There is minimal change in this perception, but it has shifted from the individual reformation to collective views. However, the central purpose remains to be the responsibility of helping the people, whether individually or collectively as one society. The vitality of social work practice has been never more emphasized with the prevalence of change and threats on each and every member of society. The most common concern of this discipline is the alterations of relationships and social institutions such as the family, which greatly affects the children. In response, theorists, psychologists, and social workers continue the study of human behavior and cognition to formulate methods and theories as a foundation for alleviating the effectiveness of social work. The use of the assumptions of behaviourism to empiricism is useful in examining the resul ts of the intervention. This demonstrates that social work practices grounded in this theory help provide better social work measures for both service provider and users. The case for this study is in Case Study No. 2 involving Gemma the 15-year-old daughter of Kitty and Tony and the sister of the nine-year-old Jake. Gemma is from a broken family with an absentee father, who left them after the discovery of Kitty’s extramarital activities with another woman. Gemma was once a promising child with good academic records.

Effect of Branding on the Consumer

Effect of Branding on the Consumer Branding: How It Inspires People To Purchase A Particular Brand Abstract This research is done with the suitable research methods to describe how the people attempt to match their characteristics with a particular brand. A firm or company’s primary target is to make and preserve customers. They use various plans which include several research methods in order to discover the best way to make profits. For the companies, the saying, consumer is god, is crucial for a successful their business. Observing the customer’s purchasing behaviour is the initial step in the direction of successful understanding of customers. Branding is a crucial marketing strategy which inspires customer’s viewpoint and purchasing behaviour every time. Understanding customer buying behaviours will give marketers a close look into how significance for the marketers is to know the basic association the consumer has with the brand. So, for this reason, the research splits these issues into number of dimensions to consider that there is any connection between consum er purchasing behaviour. In other words, it permits one to see if branding can actually inspire consumer purchasing process. The research concentrates on the individual purchasing behaviour and branding associations. The sample is collected from the United Kingdom to overlook the culture impact and moreover to get rid of racial, religion and geographic issue for suitable sampling. The importance of this research is to explain how branding have an effect on different buyers behaviours build upon four kinds of complicated purchasing behaviour, conflict-reducing purchasing behaviour, habitual purchasing behaviour, and variety-seeking purchasing behaviour that are further talked about in this paper. By assessing commodity products, investigation of different approaches from these different consumer purchasing behaviour groups towards brand effects is done. The findings showed in the end reveals a strong positive association that can guide companies to concentrate more on strategies of branding according to the customers purchasing attitude towards branding. Introduction Today, in this fast moving environment, marketing depends upon the consumer’s behaviour and response to the product, price, promotion, place, physical layout, process and people (Gronroos, 1997; Kotler and et al., 1999; Egan, 2002) because today marketing is more consumers oriented than never before and due to the increasing value of service sector. For the development and survival of a firm, it requires exact facts about customers like their approach of buying, what they purchase, from which place they purchase and most essentially quantity they buy. Marketing has accepted the behavioural sciences basically sociology and social psychology to study and understand the process of consumer behaviour and decision making. While doing this, marketers are able to get explanations and forecasts build on these disciplines to figure their market offerings. To the extent that marketers are investigating the consumers psychological background in order to their establish factors that affect consumer choice in terms of cognition, perception, learning and attitude – all of which affect his buyer behaviour. A current day market trend has been the increasing similarity of products with little real functional difference between competing products. This is primarily due to intensive competitive rivalry and the existence of efficient production, transport, communication and financial systems. Under such circumstances technological innovations are quite quickly imitated by competitors and can no longer offer previous levels of sustainable competitive advantage and product differentiation (Levitt, 1983; Gronroos, 1997; Kotler, 2000). Therefore a significant feature of contemporary marketing research and practice concerns the emergence of brands as key organisational assets and a major issue in product strategy (Kotler, 2000). Firms have pla ced a heavy emphasis on adding symbolic values associated with brand names as the basis for product differentiation. The winner will eventually be the one whose strategy entails a mix conducive to the customers purchase behaviour, while doing so more effectively than its competitors. Objective Of The Study The primary goal of this research is to display branding value, functions and most important thing, its part in the consumer buying decision. This research examines the process and attributes that direct towards the customers’ evaluation of brands. This research will concentrate on the assessment of questionnaires filled by the public. Other objectives are like explanation of how the present customers attempts to match the individual identity with the identity that they relate to the brand, to prove that is there any correlation between individual purchasing behaviour and branding, and to evaluate how branding have an effect on different purchaser behaviours. Literature Review This study provides a foundation for the value and uses of branding as a vital marketing activity having an important impact on the consumer purchase decision. This research relates to a basic theory which has yet to be verified which says that as the difference among similar available products in the market is reducing, the chances that customers will buy through extrinsic signals, i.e. brand name associations is rising (Murphy, 1992). So, as customers’ ability to distinguish same kind of product declines, it is likely that the awareness of familiarity of a particular brand will push them to buy their particular choice of brand. Branding Let us define a ‘product’ before defining a brand, according to Baker (2000) a product is like anything that meets the needs of consumers. He says that it is the ability of the product to meet these needs that gives it value. The needs or problems can be psychological, economic or functional. In a competitive environment there are several companies offering opponent products that meet the customer’s needs. It is important to consider the fact that the brand can also allow companies to overcome the need to compete at a functional level, and can be used to help a company to compete on any level it is by applying its main capabilities (Hamel and Prahalad, 1994). It is the brand that distinguishes and identifies their offerings (Levitt, 1983). Like, most valuable possession is its brand name. They may be referred to as invisible assets of a lot of corporations around the world. Branding at present is increasingly concerned with bringing together and maintaining a mix of values, both tangible as well as intangible, which are relevant to the consumers and which properly differentiate one’s brand from that of another (Muehling and Laczniak, 1991; Hankinson and Cowking, 1993; Kapferer, 1995; Kotler et al., 1999). There are many tools other then the brand name to distinguish products and invest them with personality. Leading among them are advertising, promotion and packaging, other ways to differentiate from the competition may be product formulation, delivery systems, sizes, colour, smell, shape and so on. On the other hand, all these elements are put together with an appropriate and protected name with which the primary attributes of the product or service ultimately reside give the product its brand identity. This combination of messages within the structure of a brand name is a foundation to the development of brand personality (Graham, 2001; Holt, 2002). From the consumers point of view, brand names are as important as the product itsel f in the sense they make purchasing process easier, guarantee quality and at times form as a basis of self-expression. As said by Kotler (1997), any company can produce cold drinks, but only Pepsi Co. can produce 7UP. Talking about branding purpose and benefits, branding facilitates and makes the customers selection process more effective, people are loaded with lots of decisions in their day to day lives, and they are flooded with limitless products and messages contesting for attention. People look for shortcuts to make the decisions easier, a shorter way is to depend on habit, this shows of purchasing products that have shown good results in the past. This is in particular a case of less involvement purchases. This is further shown by a model of habitual buying behaviour (Assael, 1993), stating that reasonable past consumption behaviour leads to benefit association, which is a idea means the tendency of the consumer to relate the positive rewards to a particular brand, this relation between positive rewards towards a certain brand restricts the customers need for looking information and strengthen the likelihood that the identification of a need will lead the customer to straight buy a particul ar brand. And from the retailer’s point of view, branding can help differentiation. According to (Adcock. et al., 1998), differentiation is an action of modelling a set of meaningful differences to differentiate the companys offering from the opponent’s offerings. Competition with fast pace can follow development in technology and product formulation. An opponent will quickly able to make a replica, example, a cigarette brand, though they will not be able to copy the personality that use the brand name, like Marlboro. Porter (1980) says that differentiation is a source of competitive advantage. Using a differential advantage companies are in a position to distinguish their offer from competitors in the same segment. According to Porter (1980), the main need for gaining a competitive advantage is by creating such differentiation. Differentiation, in this case, refers to a company’s ability to be exclusive in its product sold and service offered. This individuality must be of a value to the consumer and can thus be sold at a premium over its competitor’s price. The more valuable this exclusivity is, the higher the differentiation, leading to the higher premium. Differentiation however comes with a cost, so for differentiation to have a competitive advantage, the cost of differentiating must be significantly lower than the premium earned. Therefore, in the perfect market with perfect competition, this premium allows the company to make a higher profit margin than its competitors. In a market segment with no differential advantage held by anyone, consumers might opt purely on the basis of price, and perfect competition which confirms that profits are pushed to zero (Porter, 1980; Foxall and Goldsmith, 1994; Baker, 2000). The differential advantage above can be gained by obtaining any element of the marketing mix. But studies have shown that the best possible plan is to focus on brand differentiation, rather than cost and price as a way of building profitability and growth (East, 1997; Diaz de Rada, 1998; Fankel, 2002). The Significance of Brand Loyalty According to (Meenaghan, 1995; Quester and Smart, 1998), branding can be related to the increasing value of brand loyalty. Loyalty can be termed as a total commitment towards a particular brand. Building loyalty depends on satisfying the needs of the consumers better than other opponents (Oliver, 1999) and the stage of loyalty that can be reached depends on the aimed consumers. According to (Quester and Smart, 1998), people all over the globe develop irrational connection with different products. Though (Levitt, 1983), came with the structure to understand how booming brands are made and claimed that consumers are not irrational to select them. The core of all brands consists of key product attributes, which allow the consumers to distinguish the product, as an answer to their needs; the attributes describe the products performance and usefulness. Adjoining this main product there is a group of attributes that enable the consumer to distinguish the product from other products of different brands. These characteristics take the shape of the products appearance, design, packaging, and identification. If these attributes would not been there, the only differentiation would be based on its reasonable pricing. According to Doyle, the brand name permits for a sustainable differential advantage. In the end, it is the external shell of the product that has been described by Doyle as, whatever thing that possibly can be done to create customer inclination and loyalty (cited Baker, 2000). According to (Alreck and Settle, 1999,) marketer’s basic aim is to make good relationship with buyers, rather just selling. The core of a relationship is a powerful bond between the brand and the buyer. If successful there will be present a loyalty that keeps out the opponents. A strong brand name should have a consumer franchise that will develop when enough number of customers wants that brand and reject other alternatives, still if the price is less. A brand with a powerful consumer franchise is protected from competitors (Kotler and Cox, 1980; Cheratony, 1993; Cowley, 1996). The brand loyal customers, whether they purchase same brand every time which can be an act of trust, habit or outcome of less participation and product availability, the clear assumption is that they push high profits for the company. Thakor and Kohli (1996) says that it costs six times more to succeed over new buyers then to hold present ones, because of the fact that it results in more expenditure li nked to adverts, promotions and sales. So loyal consumers make brand equity the main asset underlying brand equity is buyers’ equity (Machleit, 1993; Kotler, 1999). It is vital to make loyalty and settled base of customers who are fixed and loyal purchasers of a brand, which negates change and churn from the company’s’ products. For every business it is costly to increase new customers and cheaper to keep present one. Therefore, a settled customer base has the customer acquisition investment mainly in its past (Gwinner and Eaton, 1999). Contemporary marketing recommends obtaining data about customers as much as possible, anywhere it is to widen the understanding of customer wants, standard of living, attitude and purchasing behaviour (Chisnall, 1995; Davis et al., 1996; Dun, 1997; Chevron, 1998). This allows a company to modify the brand offering, to shift from the usual to an unexpected level of service actually delighting the customer, make sure the future loyalty and commitment. Generally, a brand’s value to a company is mainly created by the customer loyalty it controls (Aaker, 1996). Brand Equity Brands might differ in terms of the amount of dominance they have in the market. Many brands are unfamiliar whereas others have great consumer awareness, and moreover some brands have a great amount of consumer brand inclination. A strong brand can be said to have great brand equity. This can be explained as a brand which enjoys great brand loyalty, awareness, powerful brand associations, perceive quality and other benefits like trademarks, exclusive rights and channel relationships (Chay, 1991). The idea behind brand equity relates to the importance of a brand, value to the marketer as well as the buyer. With the marketers’ viewpoint, brand equity is a big market share therefore better cash flows and profit. From the consumer viewpoint, brand equity relates to a powerful positive brand attitude through a promising assessment of the brand, which is build upon consistent meanings and values that are simply accessible in the buyers’ memory (Lewis, 1993; Keller, 1998). With substantial effort has been put in measuring and defining the concept of brand equity there has been limited empirical research aimed at understanding the importance of the brand name associations in product differentiation (Aaker, 1991). One of the main objectives of Marketing is to get the products offered in a particular category to be distinct. Muehling, Stoltman and Mishra (1989), have found consumers to be less brand loyal, more price sensitive and less receptive to marketplace information in the absence of perceived differences between the alternatives. Brand Image Marketers understand that brands summon up symbolic pictures which are more significant to success of a product than its real natural characteristics (Meenaghan, 1995; Feltham, 1998). For products which are recognized with a brand, Davis (1995) has performed a research by splitting the customer assessment in two factors. Assessment which is linked to product characteristics (tangible) and assessment linked to the brand name (intangible). The consumers power to assess the performance abilities of the product and view about its value for money, usage effectiveness, reliability and availability develops the inherent advantage of the product, matching to product’s characteristics. The external benefits are at the emotional stage where, the symbolic assessment of the brand is taken into account. Here consumers make use of their personal reasons normally matching the brand name related attributes. With the growing variety of standardized products, consumers give more importance to t he image of products to make the assessment of different options easier. Meenaghan (1995) tells that consumers display an inclination towards symbolic rather than purely functional features of products. Therefore, they usually ask for social reliability and loyalty from firms and, in general, symbolic associations have their origin mostly in brand name perception instead of product perception (Meenaghan, 1995). Marketers have tried to employ behavioural theories to clarify and recognize useful relations involving consumer’s personality and their buying behaviour. Kamakura and Russell (1993) have spotted such theory stating that individuals have a definite self-image build on who they believe they are ideal self-concept build on who they believe they would like to be. Howard and Sheth (1969) have explained self-image as an individual thoughts and feelings about their own selves in relation to other objects in a socially determined frame of reference. By self-concept or self-image model, individuals will perform in a way that sustain and improve thei r self-image. One way is through the products they buy and use. The Effect of Branding on Consumer Purchase Behaviour The function of brand values is highlighted in the literature above, and in particular the significance of the brand to get distinctive benefit has been documented in depth. The reason behind the study to understand the consumer purchasing behaviour in light of the literature discussed so far. In order to do this consumer decision-making models will be organized. The hypothesis will be assumed as the derivation of the tests that will be conducted in the primary research. Marketing and ecological stimuli penetrate the buyer’s perception, the definition of consumer buying behaviour can be comprehended as buyer’s purchasing decision process. Four types of consumer buying behaviours, based on the degree of buyer contribution and the degree of differences among brands (Kotler, 2000). These four types are complex buying behaviour, habitual buying behaviour, variety-seeking buying behaviour, and dissonance-reducing buying behaviour. In complex buying behaviour the consumer is aware of the brands and gets too involved in the buying by analysing the product thoroughly. The customer is highly involved in buying the product in dissonance-reducing behaviour but doesn’t get too involved in the brands. Some buying situations are characterised by low involvement but significant brand differences. Consumer’s often do a lot of brand switching for variety-seekers. They are only according to the information in advertisement and television. The buying process begins with brand beliefs in habitual buying behaviour. The brand plays most important role in consumers’ purchase decision to purchase a particular product from another. Various attributes that merge to make the consumer behaviour in particular fashion during his purchase decision but also inducing any pre-purchase and post purchase activities. As (Engle et al., 1995) has defined consumer behaviour as consisting all those acts of individuals which are directly involved in obtaining, using and disposing of economic goods and services, including the decision process that precede and determine these acts. It is important factor to consider that influence the consumers’ buyer behaviour and study wishes to incorporate the Howard-sheth model of decision making. The theory of the model is that buyer behaviour is in general component firm by how consumer thinks and develops in order. (Howard and Sheth, 1969). It supports the fact that cognitive decision making which eventually determine the choice of brand and purchasing decision. The brand impact motivate the buyer and changes the behaviour , perception, learning and attitude are examined in terms of how each is affected by this impact on branding. Perception Here brand perception is based on individual personal experience of their own beliefs, needs and values. People receive and understand the sensory from their five senses they are sight, hearing, smell, touch and taste) in their own ways. Engel at el have defined perception as â€Å" the process whereby stimuli are received and interpreted by the individual and translated into a response† (Foxall, 1980,p.29). Primarily the social and psychological meaning of a product gets conveyed by two factors which determine the idea of stimuli, also known as stimulus discrimination and stimulus generalisation. Stimulus discrimination the question that hits in mind is whether the consumer can actually discriminate between differences in stimuli. Consumers become conscious of brands through packages, advertisements, promotions, and word of mouth they may be involved at some point in decision making process. Once customers became aware of brands through learning their purchase decision are then guided by their perceptions of their brands formed from the information they get about the brands characteristics (Foxall and Goldsmith, 1994). The marketers will first provide the similar brands and provide same information about the product and they position better way and discriminate between characteristics of the brands. The marketing information which will discriminate based on the brand name information provided with and it will be derived from brand name or the perception of the brand. It has been concluded (kotler et al, 1999) that consumers depend on reputation of the brand name to believe t he quality of the product. Brand name is someone who creates the image and some cases provide perception of the quality in a product and that shows the involvement of low level buyers. The main part of brand impact where the customer experiences the service they provide and class they maintain it guide through the purchasing behaviour. Chernatony (1993) explained four factors that attract them to change a particular brand and to understand their provided framework of their successful brands . 1. Quality is the pre-eminent factor that through time can lead buyers to learn to trust a brand which leads to priority position in the evoked set and repeat purchasing activity. 2. Build superior service can not only endorse product quality, but also prove post purchase problem solving. For instance, digital camera consumers would select an international brand for its global service and technological support. 3. The most common means of building an outstanding brand is being the first into the mind consumer. It is much easier to build a strong brand in the consumer’s mind than in the market, characterised by the intense level of competition. 4. In building brands the principle is to invest in markets which are highly differential or where such differentiation can be created. Mostly, the differentiation is why the brand is different from others. Brand provides consumer with lower search costs for products internally and externally. Brand reduces the risk in product decisions and Keller (1998) identifies six types of risk in consumers view. 1. Functional risk- product expectations 2.physical risk- friendly user or not 3. Financial risk- product should fit in the budget and it should be worth 4. Psychological risk- the product affects the mental well-being of the user 6. Time risk- failure of the product leads to find the other product. Brands have a personally of their own which consumers want to associate with, would like to reflect their own behaviour or aspirations and want to have an experience with. A brand, therefore, adds value to a functional product providing it offers clear differentiation in the market in which it competes. â€Å"Branding is short, transforms the actual experience of using the product and thereby adds to its value (Chevron, 1998). Learning So far it has been highlighted how extrinsic cues of a product namely the brand name can affect the consumers perception. Learning refers to any change in behaviour that comes about as a result from past experience. Dodds (1991) refers to learning as changes in a consumer’s behaviour caused by information and experience. Consumers store information in their memory in the form of associations, which links the brand name of a product with a variety of other attributes of the brand, like its price, packaging, colour, size and benefits as well as how the consumer feels about it in terms of its quality and emotions it evokes. These associations are the ones that form the information base from where the consumer makes his ultimately decisions (Foxall and Goldsmith, 1994). Most of this information consumers have stored in their memory comes from the process of learning that is what they think, feel or know about brands. Conoway (1994), claims that the subjective personal meanings of psycho-social consequences are represented by consumers’ cognitive systems. Since these consequences are experienced by consumers they are likely to trigger responses such as emotions, feelings and evaluations. Learning will be examined as a result of the marketing efforts, in terms of how information from the external communication environment is registered with the consumers long term memory from where it is extracted and used during his purchasing decision and also examine the way learning takes place in the form of changes in the consumers behaviour as a result of experience. At its simplest form learning occurs when consumers are repeatedly exposed to information such as brand names, slogans and jingles. Through this forms of learning consumers may form a weakly held belief that a particular brand is desirable due to an advertisement where the spokesperson repeats this claim over and over again. On the other hand, learning vicariously occurs when a consumer imitates the behaviours of others. Bandure (1977) stated that vicarious learning describes the way in which a consumer learns pattern of behaviour by watching other behave and applying the same lessons to his/her life. Brand images are created through advertisements, marketers use celebrities and famous sportsmen for this purpose, as it are the case with major retailing brands of Sainsburys and ASDA or Nike and Puma. Advertisements conjure upon a image for the brand through the use of models living a certain lifestyle that might be in tune with the consumers aspirations this will allow for favourable information about the brand to be processes by the consumers learning process. For marketers the learning theory is one of significance and of practical importance, as it allows them to build up demand for their brands by associating them to strong drives, motivation cues and thereby enabling positive reinforcements. Attitude A person’s overall evaluation of a concept may be defined as his or her attitude (Carpernter and Nakamopto, 1989). Consumers’ attitudes towards brands are reflected by their tendency to evaluate brands in a consistently favourable or unfavourable fashion. While behaviour and attitude are related and each may uinfluene each other, it si not necessary for them to be entirely consistent (Briggs and Cheek, 1986). General logic claims that if a consumer prefers or favours a brand there is greater likelihood of him to purchase it. thereby a positive trend in consumers attitude towards a particular brand may result in an increase in sales forecast. It is no wonder that testing or measuring attitude provides the bulk of marketing research work (Foxall and Goldsmith, 1994). Researching consumer attitudes are functionally useful for the marketer in directing consumers toward brands they find useful in satisfying needs, wants and aspirations. Chay (1991) claims that advertisements influence attitudes towards the add, which is an importance predecessor of brand attitude. While Cheratony (1989) and Muehling (1987) go on saying that the influence of attitudes towards the ad on brand attitudes has been found to be even more significant under low-involvement conditions and emotionally based advertising. While in some cases even though the consumer has a favourable attitude towards a brand due to an advertisement he might have enjoyed, after having watched the advertisement if his purchase action is postponed the effect of the advertisement will wear off resulting in the favourable attitude towards the brand fading away. Furthermore even if the purchase action is not delayed there is the possibility of variables such as price that rule out the consistency between attitude and behaviour (Belk, 1975). Motivation is another mental factor that influences the underlying emotions and attitudes towards brands and the purchasing decision. Freud (Vecchio, 1992) claims that people are mostly unconscious of the real psychological forces shaping their behaviour. He suggests that a person does not fully understand his/her motivation. He states that as people grow up they repress many urges, and these urges are never really eliminated or under perfect control. An applied example could be in terms of Pepsi adverting campaign during 1989 to 1992, with slogan such as Pepsi the choice of a new generation and Pepsi Gotta Have It (Alison, 1992). David Novak, Pepsis vice president of marketing explains that the campaign represents the Pepsi attitude for people who think young and want to celebrate his life. The implication here would be for a young adult who purchases the Pepsi with the underlying motive to quench his thirst or purchase a beverage. At a deeper leave he might have purchase the Pepsi to feel or show that he is young and alive (Alison, 1992). There is a possibility for the brand to be a reflection of the consumers perception of his image or self-presentation. Carpernter and Nakamopto (1989) and Chisnall (1995) have defined image as a function of social interaction. Thereby consumption can be an act of self-presentation. The consumer tries to link himself with a desired image, or the ideal social self-image. Conclusion Through the literature reviewed the significance and importance of branding as a marketing tool has been highlighted, while providing sufficient evidence as to why a company should brand its products. Product differentiation has been made difficult due to immense competition and improvements in technology, allowing products to be quickly imitated. In this way firms have placed a heavy emphasis on adding symbolic values as the basis for product differentiation. Therefore, while evaluating products the consumer will tend to consider the image aspect of the product to simplify the evaluation of different alternatives. Additionally the review suggested that consumers have a self-concept that have a crucial effect on their purchase decisions. This means that consumer might evaluate brands on the basis of the congruence between the brands image and their own self-image. Moreover, when the consumer has little or no experience with the product or has a lack of information about the product, consumers will use brand names to evaluate products, some consumers even when provided with information will avoid spending time to investigate the products intrin Effect of Branding on the Consumer Effect of Branding on the Consumer Branding: How It Inspires People To Purchase A Particular Brand Abstract This research is done with the suitable research methods to describe how the people attempt to match their characteristics with a particular brand. A firm or company’s primary target is to make and preserve customers. They use various plans which include several research methods in order to discover the best way to make profits. For the companies, the saying, consumer is god, is crucial for a successful their business. Observing the customer’s purchasing behaviour is the initial step in the direction of successful understanding of customers. Branding is a crucial marketing strategy which inspires customer’s viewpoint and purchasing behaviour every time. Understanding customer buying behaviours will give marketers a close look into how significance for the marketers is to know the basic association the consumer has with the brand. So, for this reason, the research splits these issues into number of dimensions to consider that there is any connection between consum er purchasing behaviour. In other words, it permits one to see if branding can actually inspire consumer purchasing process. The research concentrates on the individual purchasing behaviour and branding associations. The sample is collected from the United Kingdom to overlook the culture impact and moreover to get rid of racial, religion and geographic issue for suitable sampling. The importance of this research is to explain how branding have an effect on different buyers behaviours build upon four kinds of complicated purchasing behaviour, conflict-reducing purchasing behaviour, habitual purchasing behaviour, and variety-seeking purchasing behaviour that are further talked about in this paper. By assessing commodity products, investigation of different approaches from these different consumer purchasing behaviour groups towards brand effects is done. The findings showed in the end reveals a strong positive association that can guide companies to concentrate more on strategies of branding according to the customers purchasing attitude towards branding. Introduction Today, in this fast moving environment, marketing depends upon the consumer’s behaviour and response to the product, price, promotion, place, physical layout, process and people (Gronroos, 1997; Kotler and et al., 1999; Egan, 2002) because today marketing is more consumers oriented than never before and due to the increasing value of service sector. For the development and survival of a firm, it requires exact facts about customers like their approach of buying, what they purchase, from which place they purchase and most essentially quantity they buy. Marketing has accepted the behavioural sciences basically sociology and social psychology to study and understand the process of consumer behaviour and decision making. While doing this, marketers are able to get explanations and forecasts build on these disciplines to figure their market offerings. To the extent that marketers are investigating the consumers psychological background in order to their establish factors that affect consumer choice in terms of cognition, perception, learning and attitude – all of which affect his buyer behaviour. A current day market trend has been the increasing similarity of products with little real functional difference between competing products. This is primarily due to intensive competitive rivalry and the existence of efficient production, transport, communication and financial systems. Under such circumstances technological innovations are quite quickly imitated by competitors and can no longer offer previous levels of sustainable competitive advantage and product differentiation (Levitt, 1983; Gronroos, 1997; Kotler, 2000). Therefore a significant feature of contemporary marketing research and practice concerns the emergence of brands as key organisational assets and a major issue in product strategy (Kotler, 2000). Firms have pla ced a heavy emphasis on adding symbolic values associated with brand names as the basis for product differentiation. The winner will eventually be the one whose strategy entails a mix conducive to the customers purchase behaviour, while doing so more effectively than its competitors. Objective Of The Study The primary goal of this research is to display branding value, functions and most important thing, its part in the consumer buying decision. This research examines the process and attributes that direct towards the customers’ evaluation of brands. This research will concentrate on the assessment of questionnaires filled by the public. Other objectives are like explanation of how the present customers attempts to match the individual identity with the identity that they relate to the brand, to prove that is there any correlation between individual purchasing behaviour and branding, and to evaluate how branding have an effect on different purchaser behaviours. Literature Review This study provides a foundation for the value and uses of branding as a vital marketing activity having an important impact on the consumer purchase decision. This research relates to a basic theory which has yet to be verified which says that as the difference among similar available products in the market is reducing, the chances that customers will buy through extrinsic signals, i.e. brand name associations is rising (Murphy, 1992). So, as customers’ ability to distinguish same kind of product declines, it is likely that the awareness of familiarity of a particular brand will push them to buy their particular choice of brand. Branding Let us define a ‘product’ before defining a brand, according to Baker (2000) a product is like anything that meets the needs of consumers. He says that it is the ability of the product to meet these needs that gives it value. The needs or problems can be psychological, economic or functional. In a competitive environment there are several companies offering opponent products that meet the customer’s needs. It is important to consider the fact that the brand can also allow companies to overcome the need to compete at a functional level, and can be used to help a company to compete on any level it is by applying its main capabilities (Hamel and Prahalad, 1994). It is the brand that distinguishes and identifies their offerings (Levitt, 1983). Like, most valuable possession is its brand name. They may be referred to as invisible assets of a lot of corporations around the world. Branding at present is increasingly concerned with bringing together and maintaining a mix of values, both tangible as well as intangible, which are relevant to the consumers and which properly differentiate one’s brand from that of another (Muehling and Laczniak, 1991; Hankinson and Cowking, 1993; Kapferer, 1995; Kotler et al., 1999). There are many tools other then the brand name to distinguish products and invest them with personality. Leading among them are advertising, promotion and packaging, other ways to differentiate from the competition may be product formulation, delivery systems, sizes, colour, smell, shape and so on. On the other hand, all these elements are put together with an appropriate and protected name with which the primary attributes of the product or service ultimately reside give the product its brand identity. This combination of messages within the structure of a brand name is a foundation to the development of brand personality (Graham, 2001; Holt, 2002). From the consumers point of view, brand names are as important as the product itsel f in the sense they make purchasing process easier, guarantee quality and at times form as a basis of self-expression. As said by Kotler (1997), any company can produce cold drinks, but only Pepsi Co. can produce 7UP. Talking about branding purpose and benefits, branding facilitates and makes the customers selection process more effective, people are loaded with lots of decisions in their day to day lives, and they are flooded with limitless products and messages contesting for attention. People look for shortcuts to make the decisions easier, a shorter way is to depend on habit, this shows of purchasing products that have shown good results in the past. This is in particular a case of less involvement purchases. This is further shown by a model of habitual buying behaviour (Assael, 1993), stating that reasonable past consumption behaviour leads to benefit association, which is a idea means the tendency of the consumer to relate the positive rewards to a particular brand, this relation between positive rewards towards a certain brand restricts the customers need for looking information and strengthen the likelihood that the identification of a need will lead the customer to straight buy a particul ar brand. And from the retailer’s point of view, branding can help differentiation. According to (Adcock. et al., 1998), differentiation is an action of modelling a set of meaningful differences to differentiate the companys offering from the opponent’s offerings. Competition with fast pace can follow development in technology and product formulation. An opponent will quickly able to make a replica, example, a cigarette brand, though they will not be able to copy the personality that use the brand name, like Marlboro. Porter (1980) says that differentiation is a source of competitive advantage. Using a differential advantage companies are in a position to distinguish their offer from competitors in the same segment. According to Porter (1980), the main need for gaining a competitive advantage is by creating such differentiation. Differentiation, in this case, refers to a company’s ability to be exclusive in its product sold and service offered. This individuality must be of a value to the consumer and can thus be sold at a premium over its competitor’s price. The more valuable this exclusivity is, the higher the differentiation, leading to the higher premium. Differentiation however comes with a cost, so for differentiation to have a competitive advantage, the cost of differentiating must be significantly lower than the premium earned. Therefore, in the perfect market with perfect competition, this premium allows the company to make a higher profit margin than its competitors. In a market segment with no differential advantage held by anyone, consumers might opt purely on the basis of price, and perfect competition which confirms that profits are pushed to zero (Porter, 1980; Foxall and Goldsmith, 1994; Baker, 2000). The differential advantage above can be gained by obtaining any element of the marketing mix. But studies have shown that the best possible plan is to focus on brand differentiation, rather than cost and price as a way of building profitability and growth (East, 1997; Diaz de Rada, 1998; Fankel, 2002). The Significance of Brand Loyalty According to (Meenaghan, 1995; Quester and Smart, 1998), branding can be related to the increasing value of brand loyalty. Loyalty can be termed as a total commitment towards a particular brand. Building loyalty depends on satisfying the needs of the consumers better than other opponents (Oliver, 1999) and the stage of loyalty that can be reached depends on the aimed consumers. According to (Quester and Smart, 1998), people all over the globe develop irrational connection with different products. Though (Levitt, 1983), came with the structure to understand how booming brands are made and claimed that consumers are not irrational to select them. The core of all brands consists of key product attributes, which allow the consumers to distinguish the product, as an answer to their needs; the attributes describe the products performance and usefulness. Adjoining this main product there is a group of attributes that enable the consumer to distinguish the product from other products of different brands. These characteristics take the shape of the products appearance, design, packaging, and identification. If these attributes would not been there, the only differentiation would be based on its reasonable pricing. According to Doyle, the brand name permits for a sustainable differential advantage. In the end, it is the external shell of the product that has been described by Doyle as, whatever thing that possibly can be done to create customer inclination and loyalty (cited Baker, 2000). According to (Alreck and Settle, 1999,) marketer’s basic aim is to make good relationship with buyers, rather just selling. The core of a relationship is a powerful bond between the brand and the buyer. If successful there will be present a loyalty that keeps out the opponents. A strong brand name should have a consumer franchise that will develop when enough number of customers wants that brand and reject other alternatives, still if the price is less. A brand with a powerful consumer franchise is protected from competitors (Kotler and Cox, 1980; Cheratony, 1993; Cowley, 1996). The brand loyal customers, whether they purchase same brand every time which can be an act of trust, habit or outcome of less participation and product availability, the clear assumption is that they push high profits for the company. Thakor and Kohli (1996) says that it costs six times more to succeed over new buyers then to hold present ones, because of the fact that it results in more expenditure li nked to adverts, promotions and sales. So loyal consumers make brand equity the main asset underlying brand equity is buyers’ equity (Machleit, 1993; Kotler, 1999). It is vital to make loyalty and settled base of customers who are fixed and loyal purchasers of a brand, which negates change and churn from the company’s’ products. For every business it is costly to increase new customers and cheaper to keep present one. Therefore, a settled customer base has the customer acquisition investment mainly in its past (Gwinner and Eaton, 1999). Contemporary marketing recommends obtaining data about customers as much as possible, anywhere it is to widen the understanding of customer wants, standard of living, attitude and purchasing behaviour (Chisnall, 1995; Davis et al., 1996; Dun, 1997; Chevron, 1998). This allows a company to modify the brand offering, to shift from the usual to an unexpected level of service actually delighting the customer, make sure the future loyalty and commitment. Generally, a brand’s value to a company is mainly created by the customer loyalty it controls (Aaker, 1996). Brand Equity Brands might differ in terms of the amount of dominance they have in the market. Many brands are unfamiliar whereas others have great consumer awareness, and moreover some brands have a great amount of consumer brand inclination. A strong brand can be said to have great brand equity. This can be explained as a brand which enjoys great brand loyalty, awareness, powerful brand associations, perceive quality and other benefits like trademarks, exclusive rights and channel relationships (Chay, 1991). The idea behind brand equity relates to the importance of a brand, value to the marketer as well as the buyer. With the marketers’ viewpoint, brand equity is a big market share therefore better cash flows and profit. From the consumer viewpoint, brand equity relates to a powerful positive brand attitude through a promising assessment of the brand, which is build upon consistent meanings and values that are simply accessible in the buyers’ memory (Lewis, 1993; Keller, 1998). With substantial effort has been put in measuring and defining the concept of brand equity there has been limited empirical research aimed at understanding the importance of the brand name associations in product differentiation (Aaker, 1991). One of the main objectives of Marketing is to get the products offered in a particular category to be distinct. Muehling, Stoltman and Mishra (1989), have found consumers to be less brand loyal, more price sensitive and less receptive to marketplace information in the absence of perceived differences between the alternatives. Brand Image Marketers understand that brands summon up symbolic pictures which are more significant to success of a product than its real natural characteristics (Meenaghan, 1995; Feltham, 1998). For products which are recognized with a brand, Davis (1995) has performed a research by splitting the customer assessment in two factors. Assessment which is linked to product characteristics (tangible) and assessment linked to the brand name (intangible). The consumers power to assess the performance abilities of the product and view about its value for money, usage effectiveness, reliability and availability develops the inherent advantage of the product, matching to product’s characteristics. The external benefits are at the emotional stage where, the symbolic assessment of the brand is taken into account. Here consumers make use of their personal reasons normally matching the brand name related attributes. With the growing variety of standardized products, consumers give more importance to t he image of products to make the assessment of different options easier. Meenaghan (1995) tells that consumers display an inclination towards symbolic rather than purely functional features of products. Therefore, they usually ask for social reliability and loyalty from firms and, in general, symbolic associations have their origin mostly in brand name perception instead of product perception (Meenaghan, 1995). Marketers have tried to employ behavioural theories to clarify and recognize useful relations involving consumer’s personality and their buying behaviour. Kamakura and Russell (1993) have spotted such theory stating that individuals have a definite self-image build on who they believe they are ideal self-concept build on who they believe they would like to be. Howard and Sheth (1969) have explained self-image as an individual thoughts and feelings about their own selves in relation to other objects in a socially determined frame of reference. By self-concept or self-image model, individuals will perform in a way that sustain and improve thei r self-image. One way is through the products they buy and use. The Effect of Branding on Consumer Purchase Behaviour The function of brand values is highlighted in the literature above, and in particular the significance of the brand to get distinctive benefit has been documented in depth. The reason behind the study to understand the consumer purchasing behaviour in light of the literature discussed so far. In order to do this consumer decision-making models will be organized. The hypothesis will be assumed as the derivation of the tests that will be conducted in the primary research. Marketing and ecological stimuli penetrate the buyer’s perception, the definition of consumer buying behaviour can be comprehended as buyer’s purchasing decision process. Four types of consumer buying behaviours, based on the degree of buyer contribution and the degree of differences among brands (Kotler, 2000). These four types are complex buying behaviour, habitual buying behaviour, variety-seeking buying behaviour, and dissonance-reducing buying behaviour. In complex buying behaviour the consumer is aware of the brands and gets too involved in the buying by analysing the product thoroughly. The customer is highly involved in buying the product in dissonance-reducing behaviour but doesn’t get too involved in the brands. Some buying situations are characterised by low involvement but significant brand differences. Consumer’s often do a lot of brand switching for variety-seekers. They are only according to the information in advertisement and television. The buying process begins with brand beliefs in habitual buying behaviour. The brand plays most important role in consumers’ purchase decision to purchase a particular product from another. Various attributes that merge to make the consumer behaviour in particular fashion during his purchase decision but also inducing any pre-purchase and post purchase activities. As (Engle et al., 1995) has defined consumer behaviour as consisting all those acts of individuals which are directly involved in obtaining, using and disposing of economic goods and services, including the decision process that precede and determine these acts. It is important factor to consider that influence the consumers’ buyer behaviour and study wishes to incorporate the Howard-sheth model of decision making. The theory of the model is that buyer behaviour is in general component firm by how consumer thinks and develops in order. (Howard and Sheth, 1969). It supports the fact that cognitive decision making which eventually determine the choice of brand and purchasing decision. The brand impact motivate the buyer and changes the behaviour , perception, learning and attitude are examined in terms of how each is affected by this impact on branding. Perception Here brand perception is based on individual personal experience of their own beliefs, needs and values. People receive and understand the sensory from their five senses they are sight, hearing, smell, touch and taste) in their own ways. Engel at el have defined perception as â€Å" the process whereby stimuli are received and interpreted by the individual and translated into a response† (Foxall, 1980,p.29). Primarily the social and psychological meaning of a product gets conveyed by two factors which determine the idea of stimuli, also known as stimulus discrimination and stimulus generalisation. Stimulus discrimination the question that hits in mind is whether the consumer can actually discriminate between differences in stimuli. Consumers become conscious of brands through packages, advertisements, promotions, and word of mouth they may be involved at some point in decision making process. Once customers became aware of brands through learning their purchase decision are then guided by their perceptions of their brands formed from the information they get about the brands characteristics (Foxall and Goldsmith, 1994). The marketers will first provide the similar brands and provide same information about the product and they position better way and discriminate between characteristics of the brands. The marketing information which will discriminate based on the brand name information provided with and it will be derived from brand name or the perception of the brand. It has been concluded (kotler et al, 1999) that consumers depend on reputation of the brand name to believe t he quality of the product. Brand name is someone who creates the image and some cases provide perception of the quality in a product and that shows the involvement of low level buyers. The main part of brand impact where the customer experiences the service they provide and class they maintain it guide through the purchasing behaviour. Chernatony (1993) explained four factors that attract them to change a particular brand and to understand their provided framework of their successful brands . 1. Quality is the pre-eminent factor that through time can lead buyers to learn to trust a brand which leads to priority position in the evoked set and repeat purchasing activity. 2. Build superior service can not only endorse product quality, but also prove post purchase problem solving. For instance, digital camera consumers would select an international brand for its global service and technological support. 3. The most common means of building an outstanding brand is being the first into the mind consumer. It is much easier to build a strong brand in the consumer’s mind than in the market, characterised by the intense level of competition. 4. In building brands the principle is to invest in markets which are highly differential or where such differentiation can be created. Mostly, the differentiation is why the brand is different from others. Brand provides consumer with lower search costs for products internally and externally. Brand reduces the risk in product decisions and Keller (1998) identifies six types of risk in consumers view. 1. Functional risk- product expectations 2.physical risk- friendly user or not 3. Financial risk- product should fit in the budget and it should be worth 4. Psychological risk- the product affects the mental well-being of the user 6. Time risk- failure of the product leads to find the other product. Brands have a personally of their own which consumers want to associate with, would like to reflect their own behaviour or aspirations and want to have an experience with. A brand, therefore, adds value to a functional product providing it offers clear differentiation in the market in which it competes. â€Å"Branding is short, transforms the actual experience of using the product and thereby adds to its value (Chevron, 1998). Learning So far it has been highlighted how extrinsic cues of a product namely the brand name can affect the consumers perception. Learning refers to any change in behaviour that comes about as a result from past experience. Dodds (1991) refers to learning as changes in a consumer’s behaviour caused by information and experience. Consumers store information in their memory in the form of associations, which links the brand name of a product with a variety of other attributes of the brand, like its price, packaging, colour, size and benefits as well as how the consumer feels about it in terms of its quality and emotions it evokes. These associations are the ones that form the information base from where the consumer makes his ultimately decisions (Foxall and Goldsmith, 1994). Most of this information consumers have stored in their memory comes from the process of learning that is what they think, feel or know about brands. Conoway (1994), claims that the subjective personal meanings of psycho-social consequences are represented by consumers’ cognitive systems. Since these consequences are experienced by consumers they are likely to trigger responses such as emotions, feelings and evaluations. Learning will be examined as a result of the marketing efforts, in terms of how information from the external communication environment is registered with the consumers long term memory from where it is extracted and used during his purchasing decision and also examine the way learning takes place in the form of changes in the consumers behaviour as a result of experience. At its simplest form learning occurs when consumers are repeatedly exposed to information such as brand names, slogans and jingles. Through this forms of learning consumers may form a weakly held belief that a particular brand is desirable due to an advertisement where the spokesperson repeats this claim over and over again. On the other hand, learning vicariously occurs when a consumer imitates the behaviours of others. Bandure (1977) stated that vicarious learning describes the way in which a consumer learns pattern of behaviour by watching other behave and applying the same lessons to his/her life. Brand images are created through advertisements, marketers use celebrities and famous sportsmen for this purpose, as it are the case with major retailing brands of Sainsburys and ASDA or Nike and Puma. Advertisements conjure upon a image for the brand through the use of models living a certain lifestyle that might be in tune with the consumers aspirations this will allow for favourable information about the brand to be processes by the consumers learning process. For marketers the learning theory is one of significance and of practical importance, as it allows them to build up demand for their brands by associating them to strong drives, motivation cues and thereby enabling positive reinforcements. Attitude A person’s overall evaluation of a concept may be defined as his or her attitude (Carpernter and Nakamopto, 1989). Consumers’ attitudes towards brands are reflected by their tendency to evaluate brands in a consistently favourable or unfavourable fashion. While behaviour and attitude are related and each may uinfluene each other, it si not necessary for them to be entirely consistent (Briggs and Cheek, 1986). General logic claims that if a consumer prefers or favours a brand there is greater likelihood of him to purchase it. thereby a positive trend in consumers attitude towards a particular brand may result in an increase in sales forecast. It is no wonder that testing or measuring attitude provides the bulk of marketing research work (Foxall and Goldsmith, 1994). Researching consumer attitudes are functionally useful for the marketer in directing consumers toward brands they find useful in satisfying needs, wants and aspirations. Chay (1991) claims that advertisements influence attitudes towards the add, which is an importance predecessor of brand attitude. While Cheratony (1989) and Muehling (1987) go on saying that the influence of attitudes towards the ad on brand attitudes has been found to be even more significant under low-involvement conditions and emotionally based advertising. While in some cases even though the consumer has a favourable attitude towards a brand due to an advertisement he might have enjoyed, after having watched the advertisement if his purchase action is postponed the effect of the advertisement will wear off resulting in the favourable attitude towards the brand fading away. Furthermore even if the purchase action is not delayed there is the possibility of variables such as price that rule out the consistency between attitude and behaviour (Belk, 1975). Motivation is another mental factor that influences the underlying emotions and attitudes towards brands and the purchasing decision. Freud (Vecchio, 1992) claims that people are mostly unconscious of the real psychological forces shaping their behaviour. He suggests that a person does not fully understand his/her motivation. He states that as people grow up they repress many urges, and these urges are never really eliminated or under perfect control. An applied example could be in terms of Pepsi adverting campaign during 1989 to 1992, with slogan such as Pepsi the choice of a new generation and Pepsi Gotta Have It (Alison, 1992). David Novak, Pepsis vice president of marketing explains that the campaign represents the Pepsi attitude for people who think young and want to celebrate his life. The implication here would be for a young adult who purchases the Pepsi with the underlying motive to quench his thirst or purchase a beverage. At a deeper leave he might have purchase the Pepsi to feel or show that he is young and alive (Alison, 1992). There is a possibility for the brand to be a reflection of the consumers perception of his image or self-presentation. Carpernter and Nakamopto (1989) and Chisnall (1995) have defined image as a function of social interaction. Thereby consumption can be an act of self-presentation. The consumer tries to link himself with a desired image, or the ideal social self-image. Conclusion Through the literature reviewed the significance and importance of branding as a marketing tool has been highlighted, while providing sufficient evidence as to why a company should brand its products. Product differentiation has been made difficult due to immense competition and improvements in technology, allowing products to be quickly imitated. In this way firms have placed a heavy emphasis on adding symbolic values as the basis for product differentiation. Therefore, while evaluating products the consumer will tend to consider the image aspect of the product to simplify the evaluation of different alternatives. Additionally the review suggested that consumers have a self-concept that have a crucial effect on their purchase decisions. This means that consumer might evaluate brands on the basis of the congruence between the brands image and their own self-image. Moreover, when the consumer has little or no experience with the product or has a lack of information about the product, consumers will use brand names to evaluate products, some consumers even when provided with information will avoid spending time to investigate the products intrin

Astrology :: essays research papers

Have you ever wondered what astrology is? Astrology has been around for many years, but many people don’t understand what astrology is, who used astrology, and it’s connection with the zodiac. Many people don’t know this, but the actual term astrology comes from two words, which are â€Å"astra† and â€Å"logos†. (Weblinkers.com Enterprises, p.1) When people believe in astrology, what they believe is that the planets and stars directly or indirectly influence their lives and determine what happens to them in life. (Weblinkers.com Enterprises, p.1) The stars are said to show guidance and meaning for the lives of people. (Woolfolk, p.297) Most people think that astrology is a recently thought up science, but it has actually been around for many generations. (www.astrology.net/about.html, p.1) The actual science of astrology can be dated to about six thousand or so years before the birth of Christ! (Woolfolk, p.297) The oldest astrology chart dates back to 4,200 BC (Weblinkers.com Enterprises, p.1) At this time, astrology and religion went hand in hand with each other. (Woolfolk, p.297) Most astrologers were priests. (Woolfolk, p.297) Many people looked up to these astrologers as â€Å"taught men†. (www.astrology.net/about.html) Astrology has had its ups and downs through history, but it always maintained that station of being. (www.astrologers.com/history.html# Relevant, p.1) After some aspects of religion became prevalent, astrology became known as the â€Å"work of the devil†. (Weblinker.com Enterprises, p.1) During the Renaissance, though, astrology became more liked than before. (Weblinkers.com Enterprises, p.1) Even religious leaders began to practice astrology more often. (Weblinkers.com Enterprises, p.1) People of the royal families had their own astrologers. (Weblinkers.com Enterprises, p.1) That is how worldwide astrology was. (Weblinkers.com Enterprises, p.1) Modern day astrology is meant to be a philosophy to put into detail different aspects of life instead of predicting the future. (www.astrology.net/about.html, p.2) Astrology has been the stuff that has brought people together. (www.astrology.net/about.html, p.2) It explains the power that people contain in their lives. (www.astrology.net/about.html, p.2) Of course, there are many different aspects or branches of astrology. (www.astrology.net/about.html, p.3) Some are medical, business, stock market, weather, mundane, electrical, horary, and natal. (www.astrology.net/about.html, p.3) They are practiced for health, financial, politics, marriage, business, and other things that concern people in their lives. (www.astrology.net/about.html, p.3) As a matter of fact, even Hitler used an astrologer during World War II. (Weblinkers.com Enterprises, p.1) One of the astrologers said that he should seek peace, and Hitler became mad at the astrologer and burned him and all astrology books.

Behind Closed Doors at WorldCom Essay

1.Two General Accounting employees—Dan Renfroe and Angela Walter—made journal entries in the amount of $150 million and $171 million, respectively, without detailed support. It was noted that this was not out of the ordinary at WorldCom. In your opinion, was this a proper accounting practice? Explain. Though this may not be out of the ordinary for WorldCom, this is not a correct accounting practice. The way the entries were made does not comply with the proper account practice according to GAAP. Detailed support is an important part of providing support to a journal entry and it explains the reason or purpose as to why the journal entry was created. 2.Based on GAPP, describe the propriety or impropriety of releasing of $150 million in line cost accruals in the Wireless division over Deloris DiCicco’s objections. Support your position using the authoritative accounting literature. When instructed to reduce the Wireless Division’s line cost by $150 million due to savings from the prior period, DiCicco refused because there was no support for the entry.   WorldCom would prepare an adjusting entry each month to recognize the estimated cost of the period as period expense, by capitalizing the expense as an accrued interest. According to GAAP, a line item cost must be reported as an expense on a company’s income statement. WorldCom capitalized the line expense, instead of expensing it and placed it on the balance sheet as an accrued liability rather than on the income statement as an operating expense. 3.On the topic of capitalizing line costs, critique the rationale included in CEO Scott Sullivan’s White Paper. Based on your own analysis of GAAP, explain the propriety or impropriety of capitalizing line costs in the telecom industry. In the White Paper presented to the Board of Directors, the CEO Scott Sullivan supported the decision to capitalize line costs. Sullivan provided that the White Paper was in line with the company’s goal of maintaining strong growth rate through increasing its capital investment. Management noted that the treatment of the E/R cots as an asset was in no way in any contradiction of the definition of an asset as per FASB Concept Statement No. 6 which states, â€Å"Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events†. However, as per GAAP, line costs must be reported as an expense in the company’s income statement as these are fundamentally,  ope rating expenses. It was put in the Balance Sheet as an accrued liability rather than in the income statement as an accrued expense. This resulted in falsely projecting income and profits; and concealing huge losses by wrongly capitalizing the line costs. 4.Consider journal entry that recognized $35 million of revenue in 2001 from the EDS contract based on WorlCom’s expectation that the five-year required cumulative minimum payment would not be met. Based on your own analysis of GAAP, explain the propriety to impropriety of this journal entry. This is not in compliance with the provisions of GAAP or SAB 101. Revenue should not be recognized until it is realized or becomes realizable and earned. If we followed this statement the company did not have realized revenue Furthermore, the penalty payments if enforced could not be paid till the year 2005 as stated in the contract. Also, the journal entry resulted in recognizing revenue when it was not earned or realized and thus, overstated the profits. 5.Why do you think the professionals in this case, most of whom are CPA’s, would agree to record a material journal entry contrary to their best professional judgment? I think that in many situations employees were able to twist statements which follow GAAP guidelines. May employees were convinced they were doing the right thing and those that were unwilling to participate were overlooked. Most of the material journal entries which were made contrary to best judgment were so done with a view to mask the declining profits and to show increasing profits, which in turn would increase stock prices. 6.In general, how does the role of Internal Auditing differ from the role of Independent (or External) Auditing? What is the role of Internal Auditing in a well-run corporation? When performed by internal auditors, what is a financial audit versus an operating audit? Do you think WorldCom’s Internal Audit Department was functioning as it should have been? Explain. Internal auditors work within an organization and report to its audit committee and/or directors. They help to design the company’s organizing systems and help develop specific risk management policies. External auditors are independent of the organization they are auditing. They report to the company’s shareholders. They provide their experienced opinion on the truthfulness of the company’s financial statements and perform work on a test basis to monitor systems in place. Internal Auditing  is designed to look at the key risks facing the business and how the business is managing those risks ef fectively. It usually results in recommendations for improvement across departments. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. A financial audit is an audit or examination of the financial reporting process, determining the reliability and integrity of the financial statements and preparation of such statements. It also involves an appraisal of the internal controls related to the finance function of the enterprise. An operational audit, on the other hand, is a systematic review and evaluation of an operational unit in terms of its effectiveness and efficiency of operations, accomplishment of its laid down objectives and goals, and determining its appropriateness in the use of various resources. It is clear that the WorldCom’s Internal Audit department was not functioning as it should have been. It was concentrating only on operational audits and totally avoiding financial audits. On the cause of cost-saving, it clearly avoided any and every function which could overlap with the role of the external auditors.

Apple’s iPhone Price Cut Consumers’ Reaction

Apple Inc. (Apple) was established in Cupertino, California on April 1, 1976, engaged in producing, selling and supporting a wide range of personal computers, portable media players, mobile phones, computer software, computer hardware and hardware accessories (Apple Store). The company is always known for its strive for delivering new and improved products and find innovative means of marketing and strategies of human resource management. Since its inception, the firm has been enjoying a prominent place among the players in the computer industry with most successful marketing strategies and innovative products and services. The company is a US – based multinational corporation that focuses on design and manufacture of consumer electronics and closely related software products. The company was established in Cupertino, California on April 1, 1976, engaged in designing, developing, selling and supporting a wide range of personal computers, portable media players, mobile phones, computer software, computer hardware and hardware accessories. Till 2007, the firm opened around 200 retail stores across five countries and one online store through which hardware and software products are being sold (Retail Stores). In the year 2008, the firm was awarded the best corporate performer organized by the famous business magazine, Business Week. (Best Performer Award 2008). iPhone: A Revolutionary Invention The mobile phone technology made its beginning in the mid 20th century. In the opinion of Robert Conway (Conway), the head of, Global System for Mobile Communication (GSM) Association â€Å"Mobile phones are becoming absolutely indispensable in the developing world†. It was in Sweden the first mobile service introduced in the form of radio telephony which was two-way radio; used in taxis and police cruisers as tested by Swedish police. Then in 1946, first commercial mobile service for use in communication devices was launched by American AT&T and South-western Bell. It was only in 1970s the ‘modern’ mobile phones were developed, researched and experimented. Thereafter from 1980s, it attracted more and more consumers as a result the growth in the mobile phone industry was tremendous. In 2003 the number of mobile phone users around the world reached to 1. 52 billion. So the mobile phone technology is experiencing fast growth and making greater sophisticated one. The mobile users were also benefited from security systems and surveillances. Conway also stated that,† â€Å"The technology is a gravitational force that brings into its orbit a huge amount of innovators. † The trend in the mobile phones users in the developing nations never showed a negative trend but instead it always showed a positive trend. For estimating the target market in mobile technologies and services, it is necessary to have proper knowledge regarding consumers live style and their demand because as the consumers passes through different stages their interest levels, usage patterns, spending habits, and brand preferences for mobile and other technological products and services constantly changes. So a good e. g. to give is iPod a revolutionary model of Apple bringing bundle of digital music’s introduced by the Apple company in order to exploit maximum home computer market. With this iPod, the company created user friendly product so that the users could download music from the Internet to the player and used technological expertise to improve their product based on consumer needs. The analyst Richard Jameson, GfK NOP said,† Apple's history proves that it has the magic touch when it comes to product development and marketing†. There after Apple introduced by totally redesigning iPod a small sized that changed the rules for the entire portable music market named iPod nano. This introduction made no changes in the market for iPod and continued as Apple’s monopoly product. As the competition rose between various devices in market, the iPod nano became the most fashionable product of Apple, made a stiff move with many optional accessories including lanyard headphones. There was a price-cut in iPod nanos i. e. Its 4 GB version was priced at $149, which was $50 below the cost of current version having a similar memory and the 8 GB version was priced $199 lower than current model which resulted its success, so the Apple thought of launching iPhone by combining iPod and mobile phone in order to meet its design and user interface with consumers and proved to be number one in the market. This gadget was launched on June 29, 2007 and revolutionized the tech-savvy market. It also entered highly volatile cell phone market combining telephony, MP3, web surfing and video watching. The iPhone was the most awaited gadget by technology enthusiasts and mainstream media. It wants to reach top during holiday season of 2007 than the previous year’s 2121 million units and the way it interacted its consumers succeeded it to reach the top. Exhibit 1) describes the features of iPhone as: it has got2-megapixel camera, headset and audio jacks, an iPod dock, Wi-Fi, stereo Bluetooth and a speakerphone; weight is about 135 g little heavier than standard mobile phone but lighter than many devices having QWERTY keyboard; its thin design has a touch screen that allow users to use on-screen soft keys to dial numbers, enter web addresses and type e-mails and text messages; it makes more appealing to the less tech-savvy users because of touch screen that helps for all menu navigation an d data entry from typing messages to dialing phone numbers; it can also support digital-music player that syncs with iTunes; the Apple’s voicemail system provides visual interface that allow users to pick messages as the wants to listen; finally it has built-in rechargeable battery that allow users to talk up to eight hours and standby time up to 250 hours but browser sessions on General Packet Radio Service (GPRS), depletes its battery rapidly, however if the iPhone is used as an iPod music player by users its life would be shortened. Apple iPhone also possesses unique features that perform its most functions with single contract and able to standby long time. It also has supportive functions of like multi tasking where the user can read a web page while downloading e-mail in the background over Wi-Fi or Enhanced Data rates for GSM Evolution (EDGE). Here interface is unique with large multi-touch display and innovative new software that allows controlling everything by finger on touch screen. It also combined the features of multiple tools into one handheld device to appear as the grid of colorful icons, with the four chief functions—Phone, Mail, Safari web browser and iPod—in a separate strip along the bottom. These all sophisticated features made iPhone a much sought after device and enjoyed a top position in the market (Exhibit 2) in spite of its acute competition from the top mobile players having overlapping features. The combined features of iPod music and video player with mobile telephone, the iPhone was available through AT&T Wireless Services. But it was locked by the service provider AT&T in its two-year service agreement. The consumers in India could not use iPhones in their home town even they have purchased from US or UK, because of reloading software. The demand for iPhones rated greater than any other product of Apple. In the opinion of iSuppli, the best-selling handset among the 2, 70,000 smart phones and featured phones sold to US consumers during the beginning of month in July 2007 is iPhone. Even market analyst pointed that Apple created a strong brand and customer Market analysts pointed out that Apple had created a strong brand and customer loyalty by following a skimming price strategy and customers are ready to purchase highly priced products now and in future with equanimity. iPhone: Banking on Pricing The iphone entered the market a month with stock of 3, 00,000 and a manufacturing capacity of 1, 50,000. Their version 8 GB was available for $399 in the US through Apple's retail and online stores and AT&T retail stores but 4 GB version were sold till the supplies lasted. To make it affordable to customers, Apple launched more iPhones during holiday seasons. The launching of Apple iPod in October 2001 is a success story which was priced at$349 (as of 2007) for 160 GB lower than a MP3 player and remained popular by gaining high demand till date though there was a price rise in 2005. Later another product named ipod shuffle with 512 MB, was introduced having unique appeal with a price at $99 and $149 for 1 GB. The analyst at Jupiter Research Joe Wilcox analyzed that the lower-priced iPod is part and parcel of Apple's new mass-market strategy, and before September 2007 it wanted its one-millionth piece to be sold. Similar to the price cut of the iPod, the Apple after two months decision to cut the price of 8 GB storage iPhone from $599 to $399 on September 5, 2007 showed a good response from many quarters. In accordance to Steve Wozniak, Cofounder of Apple Computers, remarked, â€Å"Nobody expects a product to drop that much in price in such a short time† and criticized Steve Jobs (Jobs) the chief executive of Apple Inc. , for his decision to price cut of iPhone by $200 within 68 days of its launch. He also said that Jobs has received letter on the company’s website and complaints from hundreds of customers acknowledging that Apple has disappointed some of its customers through price cut of iPhone's 8-gigabyte model. According to Apple executives the plan for price cut was done long ago and hoped it would keep the iPhone's pricing in line with its new iPod Touch. But this price cut suggested that Apple which long lived in a pricing bubble insulated from other personal computer makers was not different from the brutal pressures of the cellular phone business. Van Baker, an industry analyst at Gartner Group said that. â€Å"My suspicion is that they got to 7, 50,000 really quickly, and then it started to slow down†. This price cut dropped down the share price of Apple by 5% and stood at $136. 76 on September 5, 2007. Protests against Apple went to the extent of consumers filing cases against the company. Dongmei Li (Li) a customer of Apple filed a case on September 24, 2007 in the US District Court, against the company for violating price discrimination laws claiming that it should stop selling the $499 4 GB model. Li had waited for the launch of iPhone and then found that the store only had 4 GB iPhones in stock and had subsequently purchased one. Much to her charging, Apple then slashed the price of the 8 GB iPhone and stopped selling the 4 GB model. 100s of customers like Li who paid the full price did not expect the sudden reduction and complained bitterly. Apple, however, had no financial reason to cut prices, but to gain more customers during the holiday season. By the end of September 2007, Apple had sold 1. 4 million iPhones and also launched the device in the UK, Germany, and France. In Asia and Australia iPhone was scheduled to be released during 2008 (Exhibit 3). While the company was dealing with the price cut controversy, its competitors were working on developing models that could compete with the iPhone. Apple's competitor LG was working on iPhone `killers', its new product Prada phone KE850 will attempt to offer unbeatable combinations of style, features and price. It costs ?300 ($614). Nokia with its N800 was already a tough competitor to Apple's iPhone with a niche market. The iPhone price cut caught the media attention in a big way and raised questions about the device's continued success. However, there are also some advantages to Apple's price cut (Exhibit 5). The price cut has raised the question as to whether Apple needed to stimulate demand as it is the most valued gadget in history, by reducing the price drastically soon after its release. Experts observe that Apple is switching from a price-skimming strategy to market penetration strategy. They felt that it would be able to expand market share more rapidly and competitive barriers could be strengthened through the change in strategy (IPod: Factors of Success). In spite of its popularity, the iPhone is said to suffer a few shortcomings. Apple iPhone lacks some features like user-changeable battery, voice dialing, voice recording, video recording, instant messaging, Multimedia Messaging Service (MMS), copy and paste and common Bluetooth file transfer OBject EXchange (OBEX). It is hard to use the on-screen keyboard because of its small sized surface. Further, the iPhone is available only through AT&T service provider and not through third parties. It comes with a two-year service agreement in the US. In countries like India even if iPhones are purchased customers cannot use them, as they have to reload the software to use it. Many users opine that though it boasts of a very clear and sharp screen, Apple's user interface is finger driven and the screen rapidly becomes covered in unsightly fingerprints (Ziegler). Apart from these limitations, Apple had to tackle the consequent criticism following the price cut of the iPhone Stephen Hoch, marketing professor at Wharton University, observed, â€Å"The reversal on Apple's iPhone may have been more dramatic because the company has marketed itself as consumer friendly. People have strong positive feelings about Apple. They feel they are part of the Apple family. When Jobs announced the price decrease, people felt betrayed†. According to Wharton faculty and analysts, the iPhone episode reveals the perils of pricing in a marketplace where constant innovation, fierce competition and globalization are changing the rules of the game (Smart pricing boosts revenue). John Zhang, marketing professor at Wharton University, said, â€Å"The product lifecycle is short and the market is moving quickly. You don't have a lot of time to learn from your mistakes. You have to price the product right the first time†. Jobs, while speaking to reporters, defended his move stating that his price cut was directed to attract new customers in the holiday season with more aggressive pricing. He added that it benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone `tent'. Jobs observed, â€Å"†¦even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these. † Greg Joswiak, Apple's worldwide vice president of iPod and iPhone product marketing, also agreed with Jobs and observed that there was no better time for the price cut and he also added that it was that time of the year that was most important and an opportunity to come into the holidays with a fresh and aggressive product line (Ziegler). Work Cited Aaker, Kumar, Day George, and Kumar V. Marketing Research. 2nd Edition, John Wiley ; Sons, Inc., 2000 Apple Retail Store, â€Å"Interior Design of Apple Retail Store in the US, Apple Inc â€Å". Apple Inc. 16 June 2009 ;www.apple.com/retail ;. Apple Store, â€Å"Store information: Apple Inc â€Å". Apple Inc. 17 June 2009 ;http://store.apple.com/us ;. Apple Changes Strategies, Apple Changes Strategies for iPhone and iPode Touch Devices†, Apple Inc â€Å". Apple Inc. 16 June 2009 ;www.enbite.com/apple-changes-strategies-for-iphone-and-ipode-touch-devices/ ;. Best Performer Award 2008, â€Å"Best Performer Award 2008†. Apple Inc. 17 June 2009 ;http://search.businessweek.com/Search?i=1;page=2;resultsperpage=20;searchterm=best+corporate+performers+2008;sortby=relevance;u1=searchterm;. Hawkins, D I, Best R J, and Coney K A. Consumer Behaviour: Implications for Marketing Strategy. Homewood: Boston, 1989. IPod: Factors of Success, â€Å"Big Apple†. Apple Inc. 17 June 2009 ;www.korekalibre.wordpress.com/category/successfulpioneers ;. Mahajan, Vijay, Muller Eitan, and Bass Frank M, A New Product Diffusion Models in Marketing – Review and Directions for Research. Journal of Marketing, ; Self Service Account Program, â€Å"Self Service Account Program†. Apple Inc. 16 June 2009 ;http://www.apple.com/support/programs/ ;. Ziegler Chris, â€Å"The Apple iPhone†. Apple Inc. 17 June 2009 ;www.engadget.com/2007/01/09/the-apple-iphone ;.