The examples cited below and concept is developed and extracted from the book, The Art of Choosing by Sheena Iyengar. We hope to present these to you with our interpretation to give you some insight into branding. It is not an exact excerpt from the book Hope you enjoy it :)
Story of water bottle industry:
In bottled water industry, the manufacturers use the terms like Himalaya, pure, tasty, natural, etc. However there is no major difference in the water as such. A study was conducted where people were offered tap water ( from municipal corporation ) in a bottle telling it was 'X' brand of water directly from the Himalayas and they were also offered the water of brand 'X' in a glass and were told that this was tap water. People tasted both and concluded that the water in the bottle of brand 'X' was actually tastier than the water in the glass. So the they indirectly concluded that tap water was tastier:)
Also, the municipal corporation's norms for supplying water from the tap are more stringent than what bottled manufacturers may follow.
In another case, a waiter in a restaurant was asked to offer two different brands of mineral water to the customers. One was said to be directly from a fresh spring and tasted much better than the normal mineral water brand. The one from fresh Spring (supposedly) was priced at 50 and the normal mineral water brand was priced at 30. In reality both had the same water. However, people who purchased the spring water felt that they had consumed a better product.
Story of Coke's brand awareness:
Coca Cola is known for its innovative advertisements and marketing campaign right from 1885. They were one of the first companies that understood, name and people's association with the brand sells more. Pepsi is sweeter when compared to Coke, otherwise the composition is almost similar. Then too some people just like Coke, because coca comes out of coca leaves (after cocaine had been eliminated from them). People associate in a way to that feeling of being high. People say Coke is Christmas, Coke is happiness.
In a controlled experiment, people were told that they would be offered a drink which might or might not be Coke (in reality everyone was offered Coke itself). Each would be offered say 6 sips in different glasses. Half of the sips that were offered was preceded by a Coke image and the rest were preceded by a flash light. 75% of the people said that they preferred the sip which was preceded by an image of Coke. Even though they were drinking the same thing.
In fact even the Santa Claus that we see today was created by Coca Cola (the red and black colours in Santa Claus's attire is same as that of Coke) that's how they associate the brand with happiness and Christmas!!!! That red colour of Santa is the same colour which Coca Cola has patented.
Story of Fashion Industry:
There are companies which do fashion forecast for the next 2 years. These guys talk about it everywhere. Designers, apparel manufacturing companies buy these studies and commissions them to their factories to bring them out during the next two years. Almost all the brands would keep it that way even though they are competitors. All of them would scratch each other's backs in this matter. The design and trend for the next two years becomes a self fulfilling prophecy. The ones who predict the trend talk about it every where, sell it to the designers and apparel manufacturers. So, everyone is talking about it, manufacturing it and people are buying it. If a design is exposed largely and it has no negative feeling, people automatically buy.
The cosmetic companies like Loreal would sell the same matte foundation at 2 different prices. The one with Loreal brand would fetch 4 times the price of what maybelline brand would sell for ( this one is also owned by Loreal !!!!)
Conclusion:
Puffery: those subjective claims that ordinary customers do not take seriously. It's a hyperbole.
Companies use puffery and people associate their feelings to that brand.
Whenever people see the brand, those parts of the brain get activated which bring the previous experiences and feelings into consciousness.
Thoughts for you to think about:
1) Can you associate your brand with the feelings of your customer.
2) Can you have 2 brands, one that sells at a higher price and one that sells at a lower price but the product is more or less same.
Story of water bottle industry:
In bottled water industry, the manufacturers use the terms like Himalaya, pure, tasty, natural, etc. However there is no major difference in the water as such. A study was conducted where people were offered tap water ( from municipal corporation ) in a bottle telling it was 'X' brand of water directly from the Himalayas and they were also offered the water of brand 'X' in a glass and were told that this was tap water. People tasted both and concluded that the water in the bottle of brand 'X' was actually tastier than the water in the glass. So the they indirectly concluded that tap water was tastier:)
Also, the municipal corporation's norms for supplying water from the tap are more stringent than what bottled manufacturers may follow.
In another case, a waiter in a restaurant was asked to offer two different brands of mineral water to the customers. One was said to be directly from a fresh spring and tasted much better than the normal mineral water brand. The one from fresh Spring (supposedly) was priced at 50 and the normal mineral water brand was priced at 30. In reality both had the same water. However, people who purchased the spring water felt that they had consumed a better product.
Story of Coke's brand awareness:
Coca Cola is known for its innovative advertisements and marketing campaign right from 1885. They were one of the first companies that understood, name and people's association with the brand sells more. Pepsi is sweeter when compared to Coke, otherwise the composition is almost similar. Then too some people just like Coke, because coca comes out of coca leaves (after cocaine had been eliminated from them). People associate in a way to that feeling of being high. People say Coke is Christmas, Coke is happiness.
In a controlled experiment, people were told that they would be offered a drink which might or might not be Coke (in reality everyone was offered Coke itself). Each would be offered say 6 sips in different glasses. Half of the sips that were offered was preceded by a Coke image and the rest were preceded by a flash light. 75% of the people said that they preferred the sip which was preceded by an image of Coke. Even though they were drinking the same thing.
In fact even the Santa Claus that we see today was created by Coca Cola (the red and black colours in Santa Claus's attire is same as that of Coke) that's how they associate the brand with happiness and Christmas!!!! That red colour of Santa is the same colour which Coca Cola has patented.
Story of Fashion Industry:
There are companies which do fashion forecast for the next 2 years. These guys talk about it everywhere. Designers, apparel manufacturing companies buy these studies and commissions them to their factories to bring them out during the next two years. Almost all the brands would keep it that way even though they are competitors. All of them would scratch each other's backs in this matter. The design and trend for the next two years becomes a self fulfilling prophecy. The ones who predict the trend talk about it every where, sell it to the designers and apparel manufacturers. So, everyone is talking about it, manufacturing it and people are buying it. If a design is exposed largely and it has no negative feeling, people automatically buy.
The cosmetic companies like Loreal would sell the same matte foundation at 2 different prices. The one with Loreal brand would fetch 4 times the price of what maybelline brand would sell for ( this one is also owned by Loreal !!!!)
Conclusion:
Puffery: those subjective claims that ordinary customers do not take seriously. It's a hyperbole.
Companies use puffery and people associate their feelings to that brand.
Whenever people see the brand, those parts of the brain get activated which bring the previous experiences and feelings into consciousness.
Thoughts for you to think about:
1) Can you associate your brand with the feelings of your customer.
2) Can you have 2 brands, one that sells at a higher price and one that sells at a lower price but the product is more or less same.
