3. Branding Strategy According to Kotler Kotler, 2006:278, definition of Branding
Strategy is the number of and nature of common and distinctive brand elements applied to the different products sold by the company. In other
words, devising a branding strategy involves deciding the nature of new and existing brand elements to be applied to new and existing products.
The decision as to how to brand new products is especially critical. When a company introduces a new product, it has three main choices
Kotler, 2006:278: a. It can develop new brand elements for the new product.
b. It can apply some of its existing brand elements. c. It can use a combination of new and existing brand elements.
d. When a company uses an established brand to introduce a new product, it is called Brand Extension, the brand extension can also be
called a sub-brand. An existing brand that gives birth to a brand extension is referred to the parent brand. If the parent brand is
already associated with multiple products through brand extensions, then it may also be called a family brand.
F. The Definition of Consumer Behavior
According to Wells Wells, 2000:5, definition of Consumer Behavior is the study of individuals and the activities that take place to satisfy their
realized needs. That satisfaction comes from the processes used in selecting,
securing, and using products or services when the benefits received from those processes meet or exceed consumers’ expectations. In other words,
when an individual realizes that he has a need, the psychological process starts the consumer decision process. Through this process, the individual sets
out to find ways to fulfill the need he has identified. That process includes the individual’s thoughts, feelings, and behavior. When the process is complete,
the consumer is faced with the task of analyzing and digesting all the information, which determines the actions he will take to fulfill the need.
Furthermore, Wells Wells, 2000:5 also stated that the consumer’s background characteristics that covered in the consumer behavior are as
follows: 1. Culture, which is the characteristic of certain society that can be
differentiate from other societies. 2. Value, which is the very basic beliefs that the society’s hold about how
the way they think, behave, and feel. 3. Demographic characteristics, which is the physical attributes, social
geography and economy of the consumer that has become part of their daily activities.
4. Personality, lifestyles, and psychography is the characteristics that represent the psychology characteristics that influence the individual’s
behavior.
5. Reference groups, which are the people or institutions whose opinions are valued and to whom a person looks for guidance in hisher own
behavior, values, and conduct, such as family, friends, or celebrities. The consumer decision-making process consists of five steps Wells,
2000:8, which are: 1. A consumer becomes aware of a need. This need is triggered either
internally or externally. 2. After the need is identified, the consumer goes through a process to
search for solutions that will fulfill that need. This search involves identifying criteria that’s important to the consumer. Then the consumer
begins to search for a location where heshe can find the solution. 3. The consumer evaluates the alternatives or options. She takes the
information she collected in Step 2 and processes that information in order to evaluate her options and arrive at a decision.
4. The consumer makes the purchase based on the information processed in Step 3. In this step, the consumer determines where to purchase and how
to purchase as well as when she should purchase. 5. The consumer evaluates the purchase. This step focuses on the
psychological response of the buyer regarding the purchase. It’s in this phase that buyer’s remorse often pops up.
According to Wells Wells, 2000:45, the process of consumer behavior is occur from motivation, perception, learning, attitude formation, and
decision making.
1. Motivation According to Wells Wells, 2000:227 Motivation is the process by
which an individual recognize a need and takes action to satisfy it. There are three factors that influence the consumer purposes Wells, 2000:230,
which are: a. Background Characteristics, is the background that every human
have in differentiating the brand that will fulfill their needs b. Available Options, is the choices or options that are available.
c. Marketers and Public Policy, is the factor that can influence consumer in choosing the consumer purposes.
2. Perception According to Kurtz Kurtz, 2008:160 Perception is the meaning that
a person attributes to incoming stimuli gathered through the five senses, which are, sight, hearing, touch, taste, and smell. Certainly a buyer’s
behavior is influenced by his or her perceptions of a good or a service. According to Frank H.Alpert and Michael A.Kamins Alpert and
Kamins, 1995:39, a person’s perception of an object results from the interaction of five types of factors:
a. The quality of the object. b. The benefit or usefulness of the object.
c. The five-senses perceived of the object. d. The promotion attraction of the object.
e. The representation of consumers’ status.
3. Learning The definition of Learning according to Hawkins Hawkins,
2002:317 is any change in the content or organization of long-term memory. This definition doesn’t explain about the cause of the change
and whether this change is fix or not. The definition of Learning according to Wells Wells, 2000:28 is
the process by which individuals organize knowledge so that it causes a permanent change in behavior.
The definition of Learning according to Kurtz Kurtz, 2008:163 is the knowledge or skill that is acquired at a result of experience, which
changes consumer behavior. The learning process includes the component of drive, which is any strong stimulus that impels action.
Fear, pride, desire for money, thirst, pain avoidance, and rivalry are examples of drives. Learning also relies on a cue, which is any object in
the environment that determines the nature of the consumer’s response to a drive. Example of cue is a newspaper advertisement for a new
Indonesian Restaurant a cue for a hungry person.
4. Learning Theories There are three main categories or philosophical frameworks under
which learning
theories fall:
behaviorism, cognitivism,
and constructivism Wells, 2000:28.
a. Behavior Learning Theories Behaviorism characterize by the investigators that underlying
the assumptions about the process of learning. In essence, three basic assumptions are held to be true. First, learning is manifested by a
change in behavior. Second, the environment shapes behavior. And third, the principles of contiguity how close in time, two events
must be for a bond to be formed and reinforcement any means of increasing the likelihood that an event will be repeated are central to
explaining the learning process. For behaviorism, learning is the acquisition of new behavior through conditioning. There are two
types of possible conditioning: 1 Classical conditioning, where the behavior becomes a reflex
response to stimulus. 2 Operant conditioning, where there is reinforcement of the
behavior by a reward or a punishment. Within this framework, behaviorists are particularly interested in measurable changes in
behavior.
b. Cognitive Learning Theories Cognitive theories look beyond behavior to explain brain-based
learning. Cognitivists consider how human memory works to promote learning. For example, the physiological processes of
sorting and encoding information and events into short term memory and long term memory are important to educators working under the
cognitive theory. Two key assumptions underlie this cognitive approach:
1 The memory system is an active organized processor of information, and
2 Prior knowledge plays an important role in learning. c. Constructive Learning Theories
Constructivism views learning as a process in which the learner actively constructs or builds new ideas or concepts based upon
current and past knowledge or experience. In other words, learning involves constructing ones own knowledge from ones own
experiences. Constructivist learning, therefore, is a very personal endeavor, whereby internalized concepts, rules, and general
principles may consequently be applied in a practical real-world context. Aspects of constructivism can be found in self-directed
learning, transformational learning, experiential learning, situated cognition, and reflective practice.
5. Applying Learning Theories to Marketing Decisions According to Kurtz Kurtz, 2008:164, learning theory has some
important implications for marketing strategists, particularly those involved with consumer packaged goods. Marketers must find a way to
develop a desired outcome such as repeat purchase behavior gradually over time. Shaping is the process of applying a series of rewards and
reinforcements to permit more complex behavior to evolve. Both promotional strategy and the product itself play a role in the
shaping process. Some strategies that usually used to influence the consumer are reward, reception, stimulus generalization and
discrimination, experience, and signs and symbols. For example, when marketers want to motivate consumers to
become regular buyers of certain merchandise, their first step in getting consumers to try the product might be to offer a free-sample package that
includes a substantial discount coupon for the next purchase. This example uses a cue as a shaping procedure.
The second step is to entice the consumer to buy the item with little financial risk. The discount coupon enclosed with the free sample
prompts this action. Suppose the package that the consumer purchase has still another, smaller discount coupon enclosed. The satisfactory product
performance and the second coupon provide reinforcement. The third step is to motivate the person to buy the item again at a
moderate cost. A discount coupon accomplishes this objective, but this
time the purchased package includes no additional coupon. The only reinforcement comes from satisfactory product performance.
The final step comes when the consumer decides whether to buy the item at its true price without a discount coupon, Satisfaction with the
product performance provides the only continuing reinforcement. Therefore, repeat purchase behavior is literally shaped by effective
application of learning theory within a marketing strategy context.
6. Attitude Perception of incoming stimuli is greatly affected by attitudes. In
fact, a consumer’s decision to purchase an item is strongly based on hisher attitudes about the product, store, or salesperson.
According to Kurts Kurtz, 2008:162, attitudes are a person’s enduring favorable or unfavorable evaluations, emotions, or action
tendencies toward some object or idea. Because favorable attitudes likely affect brand preferences, marketers are interested in determining the
consumer attitudes toward their offerings. According to Frank H. Alpert and Michael A. Kamins Alpert and
Kamins, 1995:40, an attitude has three multiattribute components, which are:
a. Actual purchase behavior. b. Consumers’ consumption.
c. Loyalty of product.
7. Decision Making According to Wells Wells, 2000:343, the decision making can be
defined as the behavioral process that an individual use to choose certain product or service that they want to consume.
Consumer Background Characteristics and Behavioral Process that has already explained above can influence the Consumer Purchasing
Activities. According to Wells Wells, 2000:37, the consumer purchase activities can be categorized into seven steps, which are:
a. Need recognition, is happen when consumer know andor recognize hisher needs.
b. Search for alternatives, is happen when consumer consider several available choices that can fulfill hisher needs.
c. Evaluation of alternatives, is happen when consumer consider those available choices and decide which one is best to fulfill hisher
needs. d. Purchase and use of products, is happen when consumer make a
decision to purchase certain product and consume it. e. Evaluation of consumption experience, is happen when consumer
evaluate hisher experience when heshe consume the product, in which whether the product can fulfill hisher needs or not.
f. Feedback, is the information responsive feedback that the consumer
give about the product that heshe consume to hisher families, friends, andor the society environment.
g. End of consumption process, is happen when the consumer stop to purchase and consume certain product.
Picture 2.1 The Influence of Consumer Background Characteristics and Behavioral Process
Towards Consumer Purchase Activities Behavioral Process
Consumer Background
Characteristic s
Demographic Personality
Psycography Lifestyle
Culture Values
Reference Group
Consumer Purchase
Activities
Need Recognition
Search for Alternatives
Evaluation for Alternatives
Purchase and Use of Products
Evaluation of Consumption
Experience Feedback
End of Consumption
Process
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D. Theoretical Framework
