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The IUP Journal of Brand Management
Focus

We are witnessing a very dynamic phase of the Indian economy. On the one hand, we have various positive events taking place like the government’s coming out of the self-imposed policy paralysis, sectors like aviation looking up, etc. But on the other hand, there is a whole list of negative news-items like the increase in trade deficit, struggling of the automobile sector, and the lowest growth in manufacturing in the last two decades and other such pessimistic news. In such a vibrant phase of the economy, which can tilt either towards growth or towards recession, corporates are always looking for newer ways to survive, sustain and develop. Through our journal, we enable the managers to get a grip of the latest happenings in the brand management environment. This insight helps them to devise cutting edge contemporary strategies for survival, sustenance and development. In this issue, we present four such contemporary and insightful research works.

The first paper, “Does Emotional Appeal Work in Advertising? The Rationality Behind Using Emotional Appeal to Create Favorable Brand Attitude”, by Tapan K Panda, Tapas K Panda and Kamalesh Mishra, attempts to assimilate the current thinking on the use of emotional appeals in advertising, positioning and communication in order to build a favorable attitude towards a brand. They identify products and services for which emotional advertising appeals will be more suitable and also elaborate on the risks involved in using emotional appeals. The factors influencing the effectiveness of emotional appeals are discussed in detail and guidelines are drawn for effective use of emotional appeals. The authors have also suggested the future direction of research in the area of use of advertising appeal and its influence in brand attitude formation.

In the second paper, “Measuring Customer-Based Brand Equity Through Brand Building Blocks for Durables”, the authors, Rinalini P Kakati and Smritishikha Choudhury, have evaluated global and Indian brands in the consumer durables sector by using Customer-Based Brand Equity Model (Keller, 2001). The findings reveal that global brand’s brand strength is much higher than the Indian brand’s. In the empirical analysis, the Indian brand has scored significantly less in ‘brand preference’, and consequently ‘brand strength’ has been much lesser than the global brand. The authors claim that their empirical findings show that there exists a positive relationship between brand trust and brand affect with attitudinal and purchase loyalty for both global and Indian brands.

The third paper, “Building Private Labels into Strong Brands”, by K R Senthilvelkumar and P David Jawahar, presents the findings of an empirical research among consumers in Coimbatore. The empirical analysis has revealed that the buyers of private labels, based on their perception of private labels and intention to buy private labels, could be classified into three and two clusters respectively. The authors claim that private labels can assume vital roles in helping Indian retailers attract customers, generate adequate revenue and create strong customer loyalty.

The last paper, “The Effect of Repositioning on Brand Personality: An Empirical Study on BlackBerry Mobile Phones”, by Mukesh Kumar Mishra and Dibyendu Choudhury, focuses on measuring the brand personality of BlackBerry mobile phone, to find out the changes in brand image after repositioning and targeting youth, and exploring the model validity of Jennifer Aaker’s brand personality scale. The authors suggest that the company should project sophistication as an important brand personality dimension for BlackBerry mobile phone rather than competence after repositioning the brand, while targeting the Indian youth.

- Nitin Gupta
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Brand Management