• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Consumer perception of global vs. local
 

Consumer perception of global vs. local

on

  • 2,628 views

 

Statistics

Views

Total Views
2,628
Views on SlideShare
2,628
Embed Views
0

Actions

Likes
1
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Consumer perception of global vs. local Consumer perception of global vs. local Document Transcript

    • Consumer Perception of Global vs. Local Brands: The Indian Car Industry By Shyamala Mathan Sankar 2006A Dissertation presented in part consideration for the degree of MA Marketing. 1 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • AbstractKey words: Consumer Perception, Global brands, Local brands, consumerpreference, Country-of-origin, foreign brand, globalness, Consumer ethnocentrism.This study examines consumer perception of global brands vs. local brands in theIndian car industry. Consumer brand perceptions have substantial implications inMarketing. The study explores and understands consumer perceptions of global andlocal car brands in India by accomplishing the secondary objectives. The secondaryobjectives were achieved by highlighting the factors that effect consumer preferencefor global brands; by examining the effects of country of origin on consumerperceptions of global brands and local brands; and by studying the effects ofconsumer ethnocentrism towards global brands.For creating a deep understanding of consumers’ insights of global car brands againstlocal car brands, qualitative approach was adopted with an in-depth and semi-structured interview process. Interviews as a qualitative tool helped the researcher touncover individual’s covert feelings and emotions towards perception of globalbrands vs. local brands.The findings of the study advised that the consumers who possessed global carbrands, preferred their car brands due to factors such as global presence, worldwidereputation, and quality of being a foreign make. Prestige or status had a very little orno influence in their preference for global car brands. Consumers made favorable I Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • perceptions of the country, wherein they tend to associate factors such as superiorquality, technical advancements, modernization, etc…to the country from which thebrand had taken its origin. Consumers who owned a local car brand evaluated thelocal brand in a favorable manner, wherein they tend to associate the brand to India’sstrong automobile sector that makes quality and technically efficient cars. The studyfound to have both non-ethnocentric consumers and consumers who were low onCET. Most of the respondents perceive local brands to be good in India, but not asgood as the global ones in quality, technical expertise and designs of the cars. II Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Table of ContentsAbstract……………………………………………………………………………… IList of Figures……………..………………………………………………………..VIList of Tables………………………………………..………………………………VIDedication………………………………………………………………………….VIIAcknowledgement…………...……………………………………………………VIIIChapter One – Introduction………………………………………………………...1 1.1 Introduction……………………………………………………………....1 1.2 Objectives of the study…………………………………………………..2 1.3 Synopsis of Chapters…………………………………………………….2Chapter Two - Literature Review…………………………………………………..5 2.1 Introduction………………………………………………………………5 2.2 Brands and Branding…………………………………………………......5 2.3 Local Brands and Global Brands…………………………………………8 2.4 Pros and Cons of Local brands and global brands……………………......9 2.5 Shifts from Local Brands to Global Brands……………………………..12 2.6 Basic factors that effect consumer preference for Global Brands….......13 2.7 Consumer Ethnocentrism and evaluation of global brands and local brands by consumers…………………………………………….....17 2.8 Consumer Brand Knowledge………………………………………….....20 2.9 Effects of Country-of-Origin (COO), Culture-of-Brand Origin (COBO) and consumer perception of global brands vs. local brands…...21 2.10 Conclusion………………………………………………………………28 III Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Three -Industry Overview……………..………………………………….30 3.1 Introduction…………………………………………………………….30 3.2 Indian automobile industry – an Overview……………………………..30 3.3 Advent of cars in India………………………………………………….34 3.4 Local Car Brands in India………………………………………………35 3.5 Global Car Brands in India……………………………………………..36Chapter Four - Research Methodology…………………………………………...40 4.1. Introduction………………………………………………………….....40 4.2 Research purpose…………………………………………………….....41 4.3 Qualitative Research…………………………………………………....42 4.4 Why Qualitative Research?.......................................................................43 4.5. Interviews………………………………………………………………44 4.6. Sampling…………………………………………………………….....46 4.7. Telephone interview……………………………………………………46 4.8. Summary…………………………………………………………….....49Chapter Five - Analysis and Findings…………………………………………......50 5.1 Introduction……………………………………………………………..50 5.2 Background of the respondents………………………………………....50 5.3 Analysis and Discussion of the interviews…………………………......51 5.4 Accomplishing objectives of the study………………………………....52 5.4.1. Objective one: Highlighting the factors that effect consumer preference for global brands……………………………..52 5.4.2. Objective two: Examining the effects of country-of-origin on consumer perceptions of global brands and local brands…………..57 5.4.3. Objective three: To study the effects of consumer ethnocentrism IV Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • over global brands………………………………………………….62 5.4.4. Key Objective: To understand consumer perception of Global brands vs. local brands……………………………………..66 5.5. Review of key Findings and Conclusion………………………………72Chapter Six – Conclusion………………………………………………………….77 6.1 Conclusions of the study………………………………………………..77 6.2. Limitations of the study and recommendations for future research……………………………………………………...82ReferencesAppendix One – Interview templateAppendix Two - Interview Transcripts V Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • TABLE OF FIGURESFigure 1: Conceptual model of Perceived brand Globalness................................................................................................ 14Figure 2: Strong growing automotive sector in both domestic and global markets.................................................................................................... .32 LIST OF TABLESTable 1: A background of the respondents......................................... ……………51 VI Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • DedicationI dedicate this work to my dearest grandpa with fond and everlasting memories of him. VIIConsumer Perception of Global vs. Local Brands: The Indian Car Industry
    • AcknowledgementsI would like to convey my heartiest appreciation to Dr Heidi Winklhofer for intensifying mylearning curve. Without her guidance and persistent help, this dissertation would not havebeen possible.I also extended my gratitude to my Mom, Dad, and my Brothers for their unconditional loveand support throughout my work. Their steadfast support and encouragement accompaniedme throughout this journey. Shyamala Mathan Sankar VIII Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter One1.1 IntroductionBrands are at the heart of marketing and business strategy (Doyle, 2002)Advances in communications and information systems technology have shrunkdistances, thereby linking markets through flows of information across markets. Thesetrends enhance the management of global operations and drives up the need to dealeffectively with global competition. As firms enter international markets, brandingplays an important role in its marketing strategy. Many consumers use brands as cluesto indicate product performances, instead of engaging themselves in search forinformation when deciding between competing brands. Consumers use brands as cuesto make decisions to purchase or try products (Ger et al., 1993). During the recentyears, there has been a great shift from local brands to global brands due to thedisplay of similar needs and preferences by the consumers.As the world is shrinking in to a global marketplace, it is increasingly significant tounderstand the consumers’ perception of global brands to local brands. Studyingconsumer perceptions towards global vs. local brands have substantial implications inmarketing and will also serve as a citation for future research. There would also beseveral reasons for consumers’ perceptions and attitudes towards the brand. Thusthere is also a need to uncover the reasons for consumers’ preference for globalbrands over local brands.This study aims in understanding consumer perception of global brands vs. localbrands in the Indian car industry. The car industry in India is undertaken for the study 1 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • for the simple reason being the strong growth of the automobile sector in India. Thecar segment is specifically chosen as it is highly competitive with well established andflourishing global and local brands. Moreover, consumers in India are now moreinformed, sophisticated and demanding. Urban consumers have been especiallyexposed to western lifestyles through overseas travel (IBEF, 2006). This served thepurpose for studying the Indian car industry.1.2 Objectives of the studyThe key objective of the study was to understand consumer perception of globalbrands vs. local brands in the Indian car industry. The research explores andcomprehends consumers’ perceptions of global brand vs. local brands. The secondaryobjectives of the study are to highlight the factors that effect consumer preference forglobal brands; to examine the effects of country of origin on consumer perceptions ofglobal brands and local brands; and to study the effects of consumer ethnocentrismtowards global brands. The study originally achieves the secondary objectives in orderto accomplish the primary objective.1.3 Synopsis of chaptersThe outline of the chapters that are included in the study is depicted as follows;Second chapter of the study reviews the literature which discusses, what is alreadyknown of the main themes and issues. It covers past research and studies and articlesfrom relevant journals, books, newspapers, etc. It is a summary of what other peoplehave written and published around the theme of this particular research. The literaturereview is of course critical. The chapter starts by explaining the basics of the study, 2 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • being brands. Local brands and global brands are brought to light. The reasons for theshift from local to global brands are then discussed. The factors that are believed toeffect consumer preference of global brands are also discussed. In order to examinecountry-of- origin and culture of brand origin effects on consumer perception ofglobal brands and local brands, the literature regarding it is critically discussed. Thechapter then reviews effects of consumer ethnocentrism with regard to the evaluationof global brands and local brands by consumers.Third chapter of the study presents an overview of the chosen industry. The industryoverview starts with the purpose of choosing the Indian car industry for the study andan overview of the respective industry is presented. This chapter also discusses theadvent of cars in India along with a brief description of the local and global car brandson Indian roads. This would facilitate the reader to comprehend the study in anenhanced way.Fourth chapter of the study describes and evaluates the methods, techniques andprocedures used in the investigation. In this chapter, the methods used are alsojustified for the reason it has been used. In order to create a deep understanding ofconsumers’ insights of global brands against local brands, qualitative approach wasadopted with an in-depth and semi-structured interview process.Fifth chapter of the study discusses and critically analyses the findings of thequalitative data by tentatively examining the interviewees’ responses and beliefs. Thegathered qualitative data are analysed accordingly to accomplish the objectives of thestudy. This was done by meticulously comparing the most relevant distinct responses 3 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • by the interviewees. These distinct responses were also critically analysed with thesupport of the past literature and also the researchers’ own personal view andexperience during the interviews. Thus the unique personal quotes of the respondentsremained as the rationale for the analysis of the study. This chapter begins with thebackground information of the respondents who possess a car in India. The chapter isthen pursued to analysis and discussion of the findings from the interviews made,wherein the responses are analysed and discussed with regard to the researchobjectives of the study.Lastly, the Sixth chapter of the study sketches out the conclusion of the study. Thechapter also presents the limitations of the study and provides recommendations forfuture research. 4 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Two2. Literature Review2.1. IntroductionThis chapter reviews concepts and theories by researchers that are highly related tothe area of study. The chapter provides a critical analysis of the views and insights ofvarious researchers on the subject area. The chapter starts by explaining the basics ofthe study, being brands. Local brands and global brands are brought to light. Thereasons for the shift from local to global brands are then discussed. The factors thatare believed to effect consumer preference of global brands are also discussed. Inorder to examine country-of- origin and culture of brand origin effects on consumerperception of global brands and local brands, the literature regarding it is criticallydiscussed. The chapter then reviews effects of consumer ethnocentrism with regard tothe evaluation of global brands and local brands by consumers.2.2. Brands and BrandingBranding is the art and cornerstone of marketing (Kotler, 2003).A brand is defined as a specific name, symbol or design- or, more usually somecombination of these- that is used to distinguish a particular seller’s product (Doyle,2002). Branding exists from the very early times to distinguish the goods of oneproducer from those of another. The word ‘brand’ derives from the Old Norse word‘brandr’ which means to burn and brands were, and still are, the means by whichowners of livestock marked their animals. From branding his livestock, early manmoved on to branding his wares- where a potter for example would identify his pots 5 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • by putting a mark like a thumbprint into the wet clay on the bottom of the pot and thepotter would expect customers to seek out those products which carried his mark(Interbrand,1990). Today with a considerable change over time, there is an increase inmodern and sophisticated branding of both tangibles and intangibles.Aaker (1997) asserts that brand is a complex symbol and presents six levels ofmeaning that convey it: Attributes: A brand brings to mind certain attributes; Benefits:Attributes being translated into functional and emotional benefits; Values: The brandalso says something about the producer’s values; Culture: The brand may represent acertain culture; Personality: The brand can project a certain personality; User: Thebrand suggests the kind of consumer who buys or uses the product.Brand names have become increasingly valuable assets for many multinationalcompanies. In a cluttered marketplace, brands stand up as the source of differentiationfor providers of products and services that can be quickly tracked with easy access totechnology and information (Lim and O’Cass, 2001). Many consumers use brands asclues to indicate product performances, instead of engaging themselves in search forinformation when deciding between competing brands. Consumers use brands as cuesto make decisions to purchase or try products (Ger et al., 1993). Monroe and Krishnan(1985) define cue as all informational stimuli available to the consumer beforeconsumption, and can be intrinsic or extrinsic. Few examples of intrinsic cues aretaste and design, while extrinsic cues include COO, brand, and price (Rao andMonroe, 1989). It is said that consumers tend to rely more on extrinsic cues (Jacoby etal., 1977). Moreover, Han and Terpstra (1988) assert that consumers utilize extrinsiccues in evaluating a brand because they often are unable to detect its true intrinsic 6 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • quality. It is also said that country-of-origin is also found to be one of these extrinsiccues to a greater extent as consumers tend to be less familiar with products of foreignorigin.To a large extent, the brands also speak of familiarity and credibility (Fatt, 1997)about the product. In developing economies, consumer choice is significantlyincreasing. However, in the early stages of economic transformation, there is littleinformation available to the consumer. Thus, consumers in transitioning economiesrely on cues from brands by default (Reardon et al, 2005). In less-developedcountries, many brands are still desired and trusted for their functional values and inthese markets, for many people, it is often enough that a brand has a guaranteed originand a guaranteed consistency of quality (Interbrand, 1998). Brands are used as asurrogate to inform the consumer about the product, including relative product qualitysince direct experience with a product is not available (Rao, 1972).Forty years ago, a British or American housewife might have performed all herdomestic cleaning chores with only three or four branded products, but now she mayhave twenty or thirty specialist products for floors, baths, windows, stubborn stains,tiles, fabrics, toilet bowls, even chandeliers. Brands provide consumers with a meansof shopping with confidence, even when faced with bewildering choice (Interbrand,1990).Doyle (2002) asserts that brands are bought by consumers for emotional as well asfunctional reasons. It is also said that people use brands to show off their lifestyles, 7 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • interests, values or wealth. Not only customers choose brands that they perceive asmeeting their ‘needs’, but also for gaining a sense of belonging, esteem, etc..Brand attitudes are a central construct of marketing and have received wide attention(Gardner and Houston, 1986). Both the short- and long-term health of a business aredependent upon the brand image of a firm’s products, as brand equity can lead tohigher market share, increasing brand loyalty, and being able to charge premiumprices (Chaudhuri and Holbrook, 2001). It is increasingly significant to know whatlocal and global brands are and how they differ from each other before reviewing thecore concepts regarding the study.2.3. Local Brands and Global BrandsLocal brands are defined by Wolfe (1991) as brands that exist in one country or in alimited geographical area. It is also noted by Schuiling et al (2004) that local brandsbelong to a local, international, or global firm. Local brands provide a link betweenthe national economy and individual well-being. Levitt (1983) defines global brandsas brands that use the same marketing strategy and mix in all target markets.Johansson and Ronkainen (2004) assert that global brands benefit from the scale andscope of having presence in multiple markets. The researchers define global brand as“a brand that is marketed under the same name in multiple countries with similar andcentrally coordinated marketing strategies.” However there are some selected globalbrands that don’t have the same name but share some marketing program elements.For example, “Mr. Clean” also sells under the “Mr. Proper” and “Maestro Limpio”names, among others. Although global brands play a dominant role in today’s world, 8 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • the advantages of the local brands are still stronger and this is reviewed in thefollowing part.2.4. Pros and Cons of Local brands and global brandsAn exploratory research on the Y&R (Young & Rubicam’s) database was conductedby Schuiling et al (2004) across four largest European countries: the United Kingdom,Germany, France, and Italy. The study affirms that local brands benefit from strongbrand equity and specifically, local brands benefit from higher consumer awarenessthan international brands do, and they enjoy a strong brand image. Local brandsbenefit not only from a good quality image but also from a better value and trustperception than international brands do (Holt et al, 2003). Value is linked with the factthat prices of local brands are usually lower than those of international brands,providing consumers a sense of better value for the money (Schuiling et al, 2004).According to the research by Schuiling et al, (2004), local brands are also perceivedas more “down to earth” than international brands, meaning that local brands offer amore basic/no frills brand proposition. The study also indicates that local brands areperceived as more traditional than international brands, because local brands arelinked more to local traditions and local cultures than international brands are. It wasalso found that trust is an important advantage for local brands, because it provides aunique relationship with consumers that take years to develop. It also indicated thatthere is no significant difference between the perception of prestige for internationalbrands and that for local brands. Another significant finding was that consumers areattracted to international brands but in reality, they prefer to purchase local brands(Schuiling et al., 2004). In the words of Johansson and Ronkainen (2004), although 9 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • global brands may have more success in high-profile, high-involvement categories,consumers may still give local brands preference in purchasing every day products.The advantages cherished by local brands can be dominated by the enormousadvantages enjoyed by global brands. Eckhardt (2005) avows that local brands are notmore flexible than global brands in terms of their marketing activities when theycompete in a foreign product category due to cultural categories being associated withthe product category. Just as global brands need to conform to international marketingdictums, local brands sometimes need to conform to deeply held preconceptions aboutthe product category in which they operate.Johansson and Ronkainen (2004) assessed brand realities on the global - localcontinuum using data from Young & Rubicam’s Brand Asset Valuator (BAV). Thisdatabase is considered to be the most exhaustive of its kind, covering 20,000 brandsacross 40 countries. Data have been collected since 1993 across a wide range ofindustry sectors to measure brand perceptions of more than 100,000 consumers. It wasnoted that local brands exhibit higher familiarity among consumers, but whenfamiliarity levels are similar, global brands enjoy higher levels of esteem. Also thatGlobal brands were known for their perceived quality. The researchers asserted thatglobal branding will arguably face different challenges by product category. Certaincategories, such as automobiles and computers, are deemed more global in terms ofthe similarity in consumer preferences. Apart from discussing the pros and cons oflocal and global brands, it is necessary to comprehend the shifts that occurred due toincreased consumer preference from local brands to global brands. 10 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • 2.5. Shifts from Local Brands to Global BrandsDuring the recent years, a number of multinational companies are reducing theirbrand portfolios to manageable sizes in favor of global brands. For example, bothProcter and Gamble (P&G) and Unilever have greatly pruned the number of brandsthey market around the world, often disposing of those with limited global potential(Pitcher, 1999). Massive presence of Global brands is fuelled by the increasingsimilarity that consumers display in their consumption habits and preferences. It hasalso been argued that Global brands, are perceived to be more value-added for theconsumer, either through better quality (as a function of worldwide acceptance) or byenhancing the consumer’s self perception as being cosmopolitan, sophisticated andmodern (Johansson and Ronkainen, 2004). Consumers throughout the world arebecoming increasingly sophisticated and international brands offer a measure ofexclusivity or even eccentricity that are increasingly sought after and valued becausesuch appeals are universal (Interbrand, 1990). According to Schuiling et al (2004),this trend has been occurring not only in fast moving consumer goods sector but alsoin other industrial sector including services. Although global brands are becomingmore significant, it is asserted that there are many local brands than internationalbrands in Europe. As examples, in Germany’s oil industry, British Petroleum acquiredthe local leader Aral and decided to retain the local brand name due to its strong brandequity; In Belgium, Spa being the local leader in mineral water, has shares aboveinternational leader Evian (Schuiling et al, 2004).A number of reasons have been presented by various researchers for the movestoward global brands. Out of which, the main reason would be the one given byHassan and Katsanis (1994), being meaningful segments of consumers around the 11 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • world develop similar needs and tastes. According to Neff (1999), globalizationspeeds up a brand’s time to market by reducing time- consuming local modifications.Another important reason given by Shocker et al. (1994) for moves toward globalbrands would be consumer preference for brands with ‘global image’ over localcompetitors, even when quality and value are not ‘objectively’ superior. Conversely,in the view of Terpstra (1987), consumer preference has not has not been the primaryreason for companies to decide to move to international and global brands. As anexample, P&G accelerated its development of global brands since the early 1990s andits aim being to achieve competitive advantage in markets (Schuiling et al 2004).As the world is shrinking in to a global marketplace, it is increasingly significant tounderstand the consumers’ perception of global brands to local brands. There is alsoneed to uncover the reasons for consumers’ preference for global brands over localbrands.Consumers become perceptive to global brands when consumers believe the brand ismarketed in multiple countries and is recognized as global in these countries(Steenkamp, 2003). This perception occurs in two forms; consumers realize that thesame brand is found in other countries through media exposure, word of mouth, orduring travel overseas. Secondly, as studied by Alden et al., (1999) that a brand mayassert or imply its ‘globalness’ through marketing communications that use brandnames, endorsers, advertising themes, etc.. Consumers prefer brands that theyperceive as originating from a non-local country, especially from Western countries,more than they do local brands and that preference is linked not only to perceivedquality but also to social status (Alden et al., 1999). In the words of Peterson and 12 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Jolibert (1995), consumers in developing countries generally seek to emulate westernconsumption practices and lifestyles and purchase foreign brands. It is asserted thatconsiderable similarities exist in the needs of consumers around the world (Domzaland Unger, 1987) And this convergence in consumer needs is largely attributed toincreased cross border population mobility and electronic mobility facilitated bytelecommunications technology (Quelch, 1999). On the other hand, there existsdifferences between the markets of different countries due to factors such as culture,history, and geography; and also there exists difference between many regions of theworld in the way consumers perceive products and brands (Lim and O’Cass, 2001).This shift from local brands to global brands can be reinforced by the following basicfactors that effect consumer preference for global brands.2.6. Basic factors that effect consumer preference for Global BrandsResearch shows that perceived brand globalness for global brands could createconsumer perceptions of brand superiority (Shocker et al., 1994). International andglobal brands have been associated with high prestige or status, in addition to quality(Batra et al., 2000). Empirical study conducted by Steenkamp et al (2003) hasrevealed that prestige is the second factor driving global brand preference. Foreignbrands of most consumer durables and non-durable categories were givensignificantly higher mean attribute ratings on “status and esteem” except where “colddrinks” and “ice creams” were concerned. A study conducted by Kinra (2006) heldthat COO credibility of foreign brands was a significant factor influencing consumerattitudes and preferences as it was correlated highly with “quality” and “status andesteem”. 13 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Steenkamp et al (2003) made a study on consumer preference for global brands tolocal brands. The researchers framed three pathways through which perceived brandglobalness (PBG) influences consumers’ purchase likelihood were hypothesized. Thepathways were higher perceived quality, higher prestige, and the psychologicalbenefits of PBG. The hypotheses were tested in Korea and the United states, acrossdifferent product categories and brands.Fig 1. Conceptual model of Perceived brand Globalness (Steenkamp et al., 2003)The result of the study being PBG positively associated with both brand quality andprestige. The researchers found that both in Korea and the U.S.A., PBG exerted itsstrongest effect on purchase likelihood through perceptions of superior quality.Although global brands were found to communicate higher prestige and status, qualityappears to be more heavily weighted by consumers. According to Han (1990), higherperceived quality, higher prestige, and the psychological benefits of PBG are the 14 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • pathways through which PBG can directly affect purchase likelihood and indirectlyaffect through brand quality and brand prestige.Bearden and Etzel (1982) state that, if global brands have higher prestige, it wouldbecause of their relative scarcity and higher price compared with local brands.Consumers develop prestige meanings for brands based upon interactions with people(e.g., aspired and/or peer reference group), object properties (e.g., best features), andhedonic values (e.g., sensory beauty) (Vigneron and Johnson 1999). Kapferer (1997)suggests that consumers may prefer foreign brands because of associations of higherprestige. Steenkamp et al. (2002) argue that the influence of perceived prestige onpurchase intention is stronger when the product category is more conspicuous and itsownership or consumption is more publicly visible. Furthermore Veblen (1899)asserts that conspicuous consumption was used by consumers to signal wealth, power,and status.Despite exceptions (like Coca-Cola, Nestlé, etc...), evidence indicates that globalbrands are typically more scarce and more expensive than local brands (Batra et al.,2000). Global brands may also connote cosmopolitanism (Thompson and Tambyah,1999). In the words of Friedman (1990), consumers are said to buy global brands toenhance their self-image as being cosmopolitan, sophisticated, and modern.The worldwide scale of global brands allows people to associate themselves withglobally recognized events (World Soccer Cup, Formula one, etc…) and celebrities(Steffi Graf, Michael Schumacher, David Beckham, etc… for example). Through a 15 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • process of meaning transfer, the prestige attached to these events and celebrities maybe transferred to the sponsoring global brand (McCracken, 1986).Brand name is a key indicator to quality (Rao and Monroe, 1989), and a global imagecan arguably enhance the brand’s perceived quality (Steenkamp et al, 2003).According to Kapferer (1997), if a brand is viewable as globally available, consumersmay attribute higher quality to the brand because such quality is likely to be thoughtof as critical to global acceptance. According to Kirmani and Baumgartner (2000),perceived quality is defined as a consumer’s evaluation of a brand’s overallexcellence based on intrinsic (e.g., performance, durability) and extrinsic cues (e.g.,brand name, warranty).Global brands often advertise their worldwide availability and acceptance (Alden etal., 1999). There has been an enhanced appeal of global brands among certainsegments, such as teenagers and business people (Walker, 1996).One of the other reasons for a global brand preference may be the globalness per se ofsuch brands, independent of any effects through prestige and quality. Perceived BrandGlobalness (PBG) by itself may also be an added value for consumers (Steenkamp etal, 2003). Dawar and Parker (1994) asserted that global brands often appeal to humanuniversals and are purchased to signal membership in worldwide consumer segments.This signifies that global brands are often seen by consumers as brands that conveyworldwide citizenship, when consumed. A number of authors (Appadurai, 1990;Hannerz, 1990) note that media flows, increased travel, and other factors are creatingwidely understood symbols and meanings reflected in global brands that, in turn, 16 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • communicate membership in the global consumer community with all its positiveconnotations (McCracken, 1986). Although this was being said some twenty yearsback, this condition has grown eventually stronger.Although there are numerous factors for consumer preference for global brands,consumer ethnocentrism (CET) is considered to have moderating influence inconsumer perception of global brands.2.7. Consumer Ethnocentrism and evaluation of global brands and local brandsby consumersAlthough some consumers prefer global brands to local brands, Shimp and Sharma(1987) have said that the phenomenon of consumer ethnocentrism (CET), wherein awell- established bias exists among consumers in favor of home- grown products.Zambuni (1993) believes that there is evidence that many consumers prefer brandswith strong local connections.Consumer Ethnocentrism (CET) is defined as ‘the beliefs held by consumers aboutthe appropriateness, indeed morality, of purchasing foreign made products’ (Shimpand Sharma, 1987). As defined by Kinra (2006), Consumer ethnocentrism is apsychological construct representing how consumers view products made in their owncountry markets as objects of pride and identity versus those from other countrymarkets. Ethnocentricity has substantial implications for consumer attitude formationtowards foreign products/brands, their purchase intentions and choice betweendomestic versus foreign-made products (Reardon et al, 2005). 17 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • According to Steenkamp et al (2003) ethnocentric consumers take pride in theircountry’s brands, symbols, and culture. They are less open to foreign cultures, and areless cosmopolitan. Purchasing foreign made products may be seen as immoral andunpatriotic because it has an adverse impact on the domestic economy; hence,consumers tend to purchase local products even if the quality is lower than that ofimports (Wall and Heslop, 1986).CET is closely linked to economic nationalism (Baughn and Yapark, 1996).According to Shimp and Sharma (1987), consumer characteristics such as nationalismand domestic country preference have been known to have a moderating influence onforeign brands. Kinra (2006), asserts that this moderating influence on foreign brandsis consistent with the fact that consumer ethnocentrism is contingent not only on thedomestic country culture that espouses it, but also the quality of domestic productscoming from it. According to Baughn and Yapark (1996), ethnocentric consumersmay even be willing to sacrifice ‘objective’ gain (higher quality, prestige, etc.) toenjoy the psychological benefit of avoiding contact with the out-group (i.e., the globalculture) by purchasing local brands.According to Vida and Fairhurst (1999), Consumer ethnocentric attitudes can be ratedon a continuum from highly ethnocentric to non-ethnocentric, whereby a consumer atthe high end of the spectrum believes that purchasing foreign-made products ismorally wrong. In contrast, highly non ethnocentric consumers may judge foreignproducts based on their attributes and/or view them as better because they are notproduced in their own country. Consumers who are low on CET are morecosmopolitan in outlook and have a higher degree of cultural openness. Supphellen 18 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • and Gronhaug (2003) state that, in transitional economies, low ethnocentricconsumers may have positive stereotypes of foreign brands, whereas highethnocentric viewers tend to reject brands merely because they are foreign. Batra etal., (2000) asserts that ethnocentrism is unlikely to affect brand attitudes in the leastdeveloped transitional economies due to the fact that foreign brands are perceived tobe measurably better than most locally produced brands.Wang and Lamb (1980) found that consumers in developed countries tend to prefertheir own locally-produced goods first, followed by products from other developedcountries, and then products from less developed countries. In a detailed telephonesurvey of 1,000 consumers across the region of United States, conducted just prior tothe war, the aim was to compare American brands to local brands and looking acrossa whole host of categories. It was found that, the most established American brands inthe survey were in fact regarded as more global than American. They were morelikely to be better assimilated into the culture of the country and to be seen to havethat countrys interests at heart than even some local brands. And they were morelikely to enjoy increased purchase intent in the future (Richard, 2003).On the other hand, Baker and Michie (1995) examined British car drivers perceptionsof, and attitudes towards, four makes of foreign cars: Honda, Hyundai, Proton, andToyota. A British car (Rover) was also added to the study in order to establish thepossible effects of ethnocentrism on intention to buy. A detailed description for eachmodel was provided in the exhibit; however, no reference was made to price orcountry of origin. The study revealed that respondents preferred the most expensivecars (Toyota and Rover) but some of them changed their decision when informed that 19 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • the prices of these two makes were 50 per cent higher than an available alternative.The results also indicated that product country images and ethnocentrism had asignificant impact (both positive and negative) on the consumers intention to buy.Furthermore it was revealed ethnocentrism can be a strong source of competitiveadvantage, especially when domestic products are equal to imported products on aprice-performance basis.Previous studies on Eastern European countries namely, Russian (Johansson et al.,1994), and Hungarian consumers (Papadoupoulos et al, 1993), has been found toshow that consumers prefer Western products because of superior quality, despiteconsumer ethnocentric tendencies (Kinra, 2006). In a cross-cultural study by Vida andFairhurst (1999), in Central Europe, the study revealed significant differences inconsumer ethnocentrism across the four countries investigated. In studyingantecedents of consumer ethnocentrism, the researchers established a positiverelationship between consumer familiarity with and knowledge of international brandsand their ethnocentric attitudes across the four countries.In order to study consumer perception, it is significant to review concepts ofconsumer brand knowledge.2.8. Consumer Brand KnowledgeThere has been a plenty of research about consumer brand knowledge and its impactson consumer behavior. According to Keller (1993), consumer brand knowledgedetermines how a consumer thinks about a brand. It also determines how theconsumer responds to different stimuli regarding a brand (Lim and O’Cass, 2001). 20 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Rossiter and Percy (1987) assert that brand awareness is a major component of brandknowledge that is reflected by a consumer’s ability to identify a brand under differentconditions and is related to the strength of the brand node or trace in memory.Consumers tend to generalize their attitudes and opinions across products from agiven country, based on their familiarity and background with the country, and theirown personal experiences of product attributes such as “technological superiority”,“product quality”, “design”, “value for money”, “status and esteem”, and “credibilityof country-of-origin” of a brand (Kinra, 2006). Country of Origin (COO) effects playsa vital role in studying consumer perception of global brands vs. local brands.2.9. Effects of Country-of-Origin (COO), Culture-of-Brand Origin (COBO) andconsumer perception of global brands vs. local brandsAccording to Al-Sulaiti and Baker (1998), among the many factors that are believedto influence consumer perceptions of products in an age of international competition,country-of-origin (COO) effects, remains the most researched. Kinra (2006) assertsthat COO is considered an important differentiating factor in consumer attitudes toforeign and local brand names. COO has been defined as the country where thecorporate headquarters of the company marketing the product or brand is situated(Johansson, J.K. et al, 1985). Lee and Schaninger (1996) define COO as the country-of-manufacture or assembly. Research works have documented the importance ofcountry-of-origin (COO) image in consumer evaluation of foreign products andbrands and also favorable country perceptions are known to lead to favorableperceptions of associated attributes such as product quality indicating thereby, thatconsumer evaluations are governed by influences other than the quality of the product 21 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • (Peterson and Jolibert, 1995). According to Samiee (1994), one key drawback ofCOO studies is the priori assumption that “customers were typically knowledgeableor sought to acquire CO/M (country origin/manufacturing) information, and that COis a salient attribute in their decisions and that this assumption clearly biased the effectsize because all consumers are not the same with regard to the influence of COO. Theliterature has clearly paid insufficient attention to this customer difference in theirawareness and perceived salience of COO”.Ghauri and Cateora (2006) defines COO effect as any influence that the country ofmanufacture has on consumer’s positive or negative perception of a product. Theresearchers also assert that when the consumer is aware of the country of origin, thereis the possibility that the place of manufacture will affect product/ brand image. Iyerand Kalita (1997) revealed from a study that COO has been found to reflectconsumers’ general perceptions about the quality of products made in a foreigncountry, along with the nature of people from that country. In a study by Eroglu andMachleit (1989) in the case with consumer durables, a product’s technical complexityaffects the importance given to consumer evaluations and that, the more complex theproduct, the more relevant the COO cue.Many brands use cues that are either implied in the brand name or in promotionalappeals in order to elicit perceived country of origin associations (Agarwal andKamakura, 1999). According to Thakor and Lavack (2003), these perceived originassociations are a powerful source of brand appeal, as marketers have revealedthrough focusing advertising on origin associations in many product categories. Asexamples asserted by the researchers, Porsche ads often show a German test track, to 22 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • reinforce its German origin; Christian Dior uses the French word, “Parfum”, in itsadvertising to reinforce its French origin association. Brand has been considered as apurely extrinsic variable in country-of-origin effects and consumer perceptions oforigin have been manipulated almost solely through the “made in” label information(Mohamad et al., 2000). Papadopoulos (1993) asserts that there are a variety of waysin which origin information can be communicated, specifically through brand name.According to Kinra (2006), foreign brand names are frequently associated with thecountry-of-origin (COO) of the brand. Papadoupoulos et al. (1993) asserts thatconsumer perceptions of a product’s COO are based on three components associatedwith the standard attitude model, namely their “cognitions” which include knowledgeabout specific products and brands, consumer “affect” or favorable/unfavorableattitude towards the COO, and their “conative” behavior which is related to actualpurchase of a foreign brand. Leclerc et al. (1994) uses the term “foreign branding” todescribe the approach of spelling or pronouncing a brand name in a foreign language,using brands such as Egoiste fragrance, Frusen Gladje ice cream, as examples.Conversely, in the words of Kinra (2006), there are product categories notdistinctively associated with any COO image as in the case of the car industry, whereit has been less easy to market global brands such as “Mercedes”, “Audi”, “Toyota”,“Jaguar” for which brand images have developed quite apart from their COO, andwhich do not use their national COO association in their promotion and marketingstrategies. A study by Leclerc et al. (1994) revealed that perceptions of brandnationality were manipulated through French/ English pronunciation. It was alsofound that for hedonic products, the brand name was preferred when the Frenchpronunciation was used. Furthermore, the French pronunciation resulted in more 23 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • favorable brand attitudes. In another study made by Harris et al. (1994), it wasrevealed that English brand names were preferred to French and German brandnames. Thakor and Lavack (2003) states that the studies conducted by Leclerc et al.(1994) and Harris et al. (1994) suggest that brand origin associations play apotentially powerful role in the formation of brand attitudes. Erickson, et al. (1984)analysed the country of origin effects on the evaluation of automobile brands. Datawere collected from 96 MBA students at the University of Washington. Subjects wereasked about their beliefs and attitudes towards ten automobile models (e.g. four US,two German and four Japanese models). The study revealed that country of originaffects beliefs but not attitudes. It also indicated that the effect of image variables onattitude was not direct; any influence they have appeared to be a secondary one actingthrough beliefs.According to Kinra (2006), previous studies on foreign brands reveal that foreignbrands serve as symbolic acquisitions communicative of social distinctions innegotiating status and prestige and this incidence exists in country markets whereeconomic transition and income disparities are high and, social mobility magnifies thetendency to claim differential status through the brands one consumes. Consumersperceive foreign brand that it might have superior quality because of its developednation origin is certainly likely (Batra et al., 2000; Leclerc and Schmitt, 1994).Conversely, Gaedeke (1973) found that CO information did not significantly affectopinions regarding the quality of branded products.According to Thakor and Lavack (2003), though COO studies rely heavily on the“made in” information, such information is not expected to be the only factor in 24 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • determining brand origin perceptions. The researcher asserts that there are multipleantecedents of brand origin (such as location of ownership, location of manufacture,location of assembly, etc…) and from which consumers draw brand origin cues. Andthese cues help consumers to formulate perceived brand origins, which they use todevise more general perceptions, attitudes, expectations and intentions about thebrand.Conversely, it is said that the view of COO effects is increasingly becomingmisleading or confusing in the modern marketplace as products are typically designedin one country, manufactured in another, and assembled in another and this hasresulted in a hybrid of products (Chao, 1993). In the words of Lim and O’Cass (2001),Country-of-origin research has revealed two crucial facts about how the origin of aproduct influences consumer behaviour – people tend to prefer products from theirhome country and have a more negative perception of brands from “emergingeconomies”. In a study by Nes and Bilkey (1993), it was found that products fromdeveloping and less developed countries were rated lower on quality and higher inrisk regardless of brand name.Level of education is considered to be significant demographic variable (Al-Sulaitiand Baker, 1998) influencing country of origin effect (Paswan and Sharma, 2004). Aseducation levels increase, consumers are likely to become more knowledgeable ofother countries and cultures, and more tolerant of things that are different. It has alsobeen posited to result in more favorable opinion towards foreign products (Good andHuddleston, 1995; Sharma et al., 1995) and a reduction in consumer ethnocentrism(Bailey and Pineres, 1997). Paswan and Sharma (2004) suggest that as a consumer’s 25 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • education level increases their awareness of brand and hence brand’s COO shouldalso increase.Lim and O’Cass (2001) assert that The COO effects have been shifted from theproduct level to the brand level in consumers’ product evaluations. It is also said thatspecific country-of-origin information is becoming less relevant for the fact that it isbecoming increasingly difficult for consumers to extract the multiplicity of countryinformation. The researchers also state that in place of country-of-origin is theculture-of-brand-origin (COBO), which is more readily available to the consumer as aresult of exposure to the marketing activities of the brand. It is also stated that COBOis argued here to provide the next wave of understanding in how consumers perceiveand evaluate brands. Thakor and Kohli (1996) define brand origin as “the place,region or country to which a brand is perceived to belong by its target consumers”.They also advise that the origin of manufacture (country-of-origin) is no longersignificant to buying behaviour in the age of corporate globalisation, and that theperceived origin of the brand is more suggestive as a demographic variable. Forexample, many perfume labels bear the names of major cities: Paris Milan New YorkRome London ... No one assumes that the perfume is actually made in any of thecities, but their names carry the suggestion of quality and tradition. A bottle labelledPrague Helsinki Melbourne Moscow would not carry the same sense of gravitas ormystique, regardless of whether it might be of a better quality (Lindstrom, 2005). Asasserted by Lim and O’Cass (2001), consumers judge products by referring to thebrand and it is the national or cultural associations of that brand that matter rather thanthe precise details of product manufacture and no consumer doubts that a Coca Cola isan American brand but the bottling of the product takes place locally. Thus it is 26 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • asserted that the cultural associations of the brand that matters. Culture-of-brand-origin could be the reason why consumers still attach certain cultural characteristics toa brand when specific information about the foreign country is not available. Forexample, consumers evaluated Volkswagon Fox favourably in a study because of itsimage as a brand of exceptional engineering based on its German origins and only 8percent of the respondents knew it was manufactured in Brazil (Ratliff, 1989). Asexamples given by Thakor and Lavack (2003), Guinness does not become less Irishfor the average UK consumer by being made in London and those same consumersstill see Toyota as a Japanese car despite it being manufactured at Derby; BMW is byitself a German brand regardless of whether the cars are made in Munich orManchester.In a study made by Lim and O’Cass (2001), the researchers examined consumer’sperception of brands as influenced by their origins and the differences in classificationability between consumers’ knowledge levels. The results of the study indicate thatconsumers can more easily identify the cultural origin of brands over the country-of-origin. In the view of the researchers, the issue of consumer brand knowledge isimportant in order to understand how consumers perceive information about originsof a brand and ultimately perceive and evaluate brands and also that consumers arebelieved to be able to classify culture-of-brand-origin better than country-of-brand-origin.There are few studies that have shown that consumers may prefer brands with localconnections, and few researchers have argued that there is no intrinsic preference forglobal brands (De Mooij, 1998). Higher levels of domestic country bias have been 27 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • found in research on Western consumers where domestic products were found toenjoy a generally more favourable evaluation than foreign made products (Bannisterand Saunders, 1978; Cattin et al., 1982). Han (1989) had asserted that consumers tendto evaluate local products more highly than foreign products. Balabanis andDiamantopoulos (2004) studied eight product categories with regard to consumerpreferences for domestic versus foreign brands and found that ethnocentrism was alsodependent to a large extent, on the nature of the product category.2.10. ConclusionThe literature review has discussed concepts and theories regarding the basics ofglobal brands and local brands, the shifts from local brands to global brands and alsothe factors leading to the shift. Country-of-Origin effects are reviewed in order toexamine its influence on consumer perception of global brands to local brands. It ishighly significant to highlight that studies on foreign brands by researchers (such asKinra, 2006) foreign brands serve as symbolic acquisitions communicative of socialdistinctions in negotiating status and prestige and this incidence exists in countrymarkets where economic transition and income disparities are high and, socialmobility magnifies the tendency to claim differential status through the brands oneconsumes. Consumers perceive foreign brand that it might have superior qualitybecause of its developed nation origin is certainly likely (Batra et al., 2000; Leclercand Schmitt, 1994). The literature review also appraises the effects of consumerethnocentrism in the purchase of global brands and local brands.To proceed this study further, the next chapter talks about the car industry in India.The reason for explaining the car industry in India is because this specific sector in 28 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • India is tremendously growing with both global players and local players in themarket. Further more, another reason for choosing the car industry is because people(consumers) in the country like cars and they are more concerned about carefullydeciding and buying a car. They are considered to be among the high involvementproducts. Thus, this would enforce the study as it is to study the consumer perceptionon global brands vs. local brands. 29 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Three3. Industry Overview3.1. IntroductionThe car industry in India is chosen for studying consumer perception of global brandsvs. local brands for the simple reason being the strong growth of the automobilesector in India. The car segment is specifically chosen as it is highly competitive withwell established and flourishing global and local brands.3.2. Indian automobile industry – an OverviewIndia is emerging as one of the most attractive automotive markets in the world, and ispoised to become a key sourcing base for auto components. The Indian automotivesector has a presence across all vehicle segments and key components. In terms ofvolume, two wheelers dominate the sector, with nearly 80 per cent share, followed bypassenger vehicles with 13 per cent. Passenger vehicles consist of passenger cars andutility vehicles. The industry had few players and was protected from globalcompetition till the 1990s. After government lifted licensing in 1993, 17 new ventureshave come up. At present, there are 12 manufacturers of passenger cars, 5manufacturers of multi utility vehicles (MUVs), 9 manufacturers of commercialvehicles, 12 of two wheelers and 4 of three wheelers, besides 5 manufacturers ofengines. With the arrival of global players, the sector has become highly competitive(Automotive, 2006).The growth curve of Indian automobile industry has been on an upswing for the pastfew years. It is the 4th largest passenger vehicle market in Asia and has become the 30 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • fastest growing car market in the world in 2004, with a growth rate of 20 per cent.Continuing the upswing, the sector posted an impressive 8.9 per cent growth in 2005-06, says the Economic Survey 2005-06. The latest announcement by the Governmentto cut excise duty on small cars will soon see India emerging as the worlds largestmanufacturing hub for small or compact cars (IBEF, 2006).Indian automobile companies are moving aggressively into foreign markets. As agood example, Tata Motors Ltd., which is one of the largest private sectorcommenced its distribution of Fiat cars across India as part of the new Tata-Fiatdealer network, is also looking at tapping overseas markets through the partnership.The company is gearing up to re-launch its best selling passenger car, Indica, in theUnited Kingdom under its own brand. Indica had made its debut on the British roadsabout two years ago as City Rover under Tata Motors tie-up with the Birmingham-based MG Rover (IBEF, 2006). With few such movements happening tremendously,it wouldn’t be too long for India to have its brands on the international roads.Apart from the automobile brands moving aggressively into the foreign markets, thereare huge foreign brands rolling on the roads of India. The year 2006 will see the entryof many high-end brands into the country. The Indian automobile market will see atleast 30 new launches, spanning everything from affordable hatchbacks to mid-sizemodels to super luxury high-end cars and Sports Utility Vehicles (SUVs) (IBEF,2006). 31 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Fig 2. Strong growing automotive sector in both domestic and global markets(IBEF, 2006)Thus the Indian automobile industry has been performing well both in the domesticand the international markets.According to IBEF (India Brand Equity Foundation), India has several competitiveadvantages in the automobile sector and they can be explained as following; India hasa growing workforce that is English-speaking, highly skilled and trained in designingand machining skills required by the automotive and engineering industries. ManyIndian and global players are leveraging this advantage by increasingly outsourcingactivities like design and R&D to their Indian arms. 32 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • India offers a huge growth opportunity for the automobile sector – the domesticmarket is large and has the potential to grow further in the future due to positivedemographic trends and the current low penetration levels. India has nearly 23 percent of the global population and is one of the most attractive consumer markets in theworld today. Income levels across population segments have been growing in India.According to National Council of Applied Economic Research (NCAER) data, theconsuming class, with an annual income of US$ 980 or above, is growing and isexpected to constitute over 80 per cent of the population by 2009-10 (IBEF, 2006).In addition, a large proportion of the Indian population is relatively young - in the agegroup of 20-59 years. This is expected to further boost the automotive domesticmarket as a younger population has a higher consumption index. The rise in incomelevels of the Indians and the emergence of the consuming class that has higherpropensity to spend offers great opportunities for growth to companies across varioussectors. Furthermore, Consumers in India are now more informed, sophisticated anddemanding. Urban consumers have been especially exposed to western lifestylesthrough overseas travel. For example, more than 5 million Indians traveled overseaslast year and this number is expected to increase by 15 per cent to 20 per cent perannum. An increase in the number of working women and the prevalence of nucleardouble-income families, especially in urban areas, are other trends shaping lifestyles(IBEF, 2006).According to IBEF, large infrastructure development projects underway in Indiacombined with favorable government policies will also drive automotive growth in 33 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • the next few years. Easy availability of finance and moderate cost of financingfacilitated by double income families will also increase consumption.3.3. Advent of cars in IndiaThe advent of cars in India dates back to 1898 when the first motorcar rode downIndia’s roads. From then till the First World War, about 4,000 cars were directlyimported to India from foreign manufacturers. During 1948, the first car wasmanufactured in India. In 1993, with the winds of liberalization sweeping the Indiancar market, many multinationals like Daewoo, Peugeot, general Motors, Mercedes-Benz and Fiat came into the Indian car market. Since the 80s, the Indian car Industryhas seen a major resurgence with the opening up of Indian shores to foreignmanufacturers and collaborators. The 90s became the melting point for the carindustry in India. The consumer being the king, was constantly wooed by both theIndian and foreign manufacturers. Though sales had taken a dip in the first fewmonths of 1999, it is back to boom time (http://auto.indiamart.com/cars/birth-car.html). High- end models are being launched rapidly and are flourishing.As already said, Indian automobile industry is highly competitive with a large numberof players in each industry segment. Most of the global majors are present in thepassenger vehicle and two wheeler segments. The key players in passenger vehiclessegment in India are Tata Motors, Maruti Udyog, Honda Motors, Hyundai Motors,Toyota, Skoda, Daimler Chrysler, and Hindustan Motors. Mercedes, BMW, Porsche,Audi, Bentley and Rolls Royce are already here (IBEF, 2006). 34 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Brief descriptions of both local and global car brands in India are presented below toenhance the comprehension of the study. Local car brands in India are initiallydescribed before pursuing to global car brands.3.4. Local Car Brands in IndiaThe local car brands found in India are;Maruti Udyog Limited is the premier car company in India. Maruti Udyog Limited(MUL) was established in Feb 1981. The company entered into collaboration withSuzuki Motor Corporation of Japan to manufacture cars. Maruti is the highest volumecar manufacturer in Asia, outside Japan and Korea. Despite there being 11 companiesnow in the passenger car market in India, Maruti holds about 60% of the total marketshare. Maruti Udyog Limited has many unique Service advantages for the customers.It has bagged the First Position in JD Power Customer Satisfaction Index for theconsecutive two years. The company has also ranked highest in the India SalesSatisfaction Study. The models of Maruti Udyog Limited cars are Maruti 800, MarutiAlto, Maruti Zen, Maruti Zen Classic, Maruti Esteem, Maruti Gypsy, Omni, WagonR, Versa, Baleno, Swift and Grand Vitara (www.auto.indiamart.com).Hindustan Motors Limited (HML) is Indias renowned automobile manufacturingcompany. In 1942 this company was introduced in India by Mr. B.M. Birla of Birlafamily (Indias largest business groups). Since then, it has become a vast company,manufacturing cars like Ambassador, Contessa, and in collaboration with Mitsubishiof Japan now manufactures the new Mitsubishi Lancer (www.auto.indiamart.com). 35 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Tata Motors Limited is Indias largest automobile company, with large revenues. Itsname comes first in the category of commercial vehicles and the second largest in thepassenger vehicles, mid size car and utility vehicle segments. The company is theworlds fifth largest medium and heavy commercial vehicle manufacturer. Over 3.5million Tata vehicles are moving on Indian roads, since 1954. The models of thecompany are Tata Indigo, Tata Indica, Tata Sumo, Tata Safari and Tata Indigo Marina(www.auto.indiamart.com).3.5. Global Car Brands in IndiaApart from local car brands, the global car brands present in India are;Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly ownedsubsidiary of South Korean multi national, Hyundai Motor Company. HMIL is thefastest growing and the second largest car manufacturer in India and presently selling30 variants of passenger cars in six segments. The Company has set up more than 70dealer workshops that are equipped with the latest technology, machinery, andinternational quality press, body and paint shops, across the country, therebyproviding a one-stop shop for a Hyundai customer. Hyundai also has a fleet of 78emergency road service cars that can provide emergency service to all its customersanytime, anywhere. The models of Hyundai are Santro, Getz, Accent, Elantra, Sonata,Tucson, Terracan. The awaited models of Hyundai Motors are Verna, Getz nextgeneration and Santa Fe (www.auto.indiamart.com).Honda Siel Cars India Ltd., (HSCI) was set up in December 1995 as a joint venturebetween Honda Motor Co. Ltd., Japan and Siel Limited to manufacture passenger carsin India. The company has brought about three models in India - Honda City, Honda 36 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Accord, and Honda CR-V. Its first model was launched in 1997. Very recently HondaSiel Cars has launched one more market friendly model, Honda Civic on 9th July2006 in India (www.auto.indiamart.com).Toyota Motor Corporation is the premium vehicle manufacturer in the world. Basedin Japan, the company manufactured its first vehicle in 1936. Toyota exported its firstJapanese-made passenger car to the United States in 1957. Today Toyota has globalpresence and Toyota branded vehicles rank among the worlds highest quality cars. InIndia Toyota Motor Corporation has entered into a joint venture with Kirloskar Groupand the new entity is called Toyota Kirloskar Motor Private Limited (TKM). Thecompany aims to play a major role in the development of Indian automotive industry(www.iloveindia.com).Daewoo Motors is a South Korean company. General Motors took decision to take upDaewoo Motors to form GM Daewoo. This brand entered the Indian market duringthe year 2002 with its models such as Daewoo Matiz, Daewoo Cielo, and DaewooNexia (www.auto.indiamart.com).Ford Motor Company is the worlds second largest automaker. The companys worldheadquarters is in Dearborn, Michigan. Its automotive brands include Aston Martin,Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. The brands on Indianroads include Ford Icon, Ford Mondeo, Ford Fiesta, Ford Fusion, Ford Escort andFord Endeavor. The company is also waiting for Ford Focus to be launched in Indiashortly (www.auto.indiamart.com). 37 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Fiat, a make from Italy stepped in India during the year 1905 and later on joinedhands with Premium Automobiles which was a private company in India(www.auto.indiamart.com).General Motors Corporation was founded in 1908 and is the worlds largest vehiclemanufacturer (www.iloveindia.com). General Motors enlisted its name for makingoutstanding future performance in the field of automobile industry in India from theyear 1994. The models of General motors in India are Chevrolet Aveo, ChevroletOptra and Chevrolet Tavera, Opel Astra and Opel Corsa (www.auto.indiamart.com).German based company Audi has spreaded its wings of success in the field ofautomobile industry for its technical expertise and creativity. Audi has already startedleaving its footprint in India from July 2004. Audi has launched its bigger models A6and A8 in the Indian market (www.auto.indiamart.com).BMW (Bayerische Motoren Werke) was founded on March 7, 1916 and is now one ofthe major automobile manufacturers in the international market. Its major brandsinclude BMW, MINI and Rolls-Royce Motor Cars. Although its cars are on Indianroads, it has been announced that 2007 will be the year when BMW will startmanufacturing and selling cars in India (www.auto.indiamart.com).Czech Republic based Skoda Auto Company is one of the popular brand name in thefield of automobile industry. It is a part of the international Volkswagen Group.Skoda Auto introduced itself in Indian market in November 2001. The models of 38 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Skoda cars on Indian roads are Skoda Octavia, Skoda Superb and Skoda Laura. Theawaited models are Skoda Fabia and Roomster (www.auto.indiamart.com).Daimler Chrysler entered the Indian market and set up Mercedes-Benz India Ltd.during 1994 with the aim to serve the customers in India with the latest products andtechnological excellence from the Mercedes-Benz (www.auto.indiamart.com).Rolls-Royce Motor Cars was introduced by Frederick Henry Royce and CharlesStewart Rolls on May 4, 1904. Rolls-Royce model, Phantom is already in the roads ofIndia (www.auto.indiamart.com).Porsche was established by Ferdinand Porsche. In 1931, Ferdinand Porsche foundedthe Porsche Engineering Office in Stuttgart. Porsche started leaving its footprint in themarket of luxury and utility vehicle in India from 2003 (www.auto.indiamart.com).Thus, these descriptions of the global and local car brands would enhance the readingin a better manner. This also depicts India’s richness in automobiles and particularlyin cars. The study is prolonged by presenting the research methodology that has beenadopted for the study, in the next chapter. 39 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Four4. Research Methodology4.1. IntroductionThis chapter talks about the methods and techniques of data collection and selects themost appropriate method for the study based on the strengths and weaknesses of eachmethod.The data collection methods used in this research involves the search for both primaryand secondary data. According to Malhotra (2005), Primary data are originated by theresearcher for the specific purpose of addressing the problem at hand. Also thatobtaining primary data can be expensive and time consuming. Primary data, being themost significant is gathered through depth interviews, focus groups, observations andsurveys. This particular study has used depth interviews as a means for obtainingprimary data.Secondary data are data that are collected for some purpose other than the problem athand (Malhotra, 2005). Secondary data are usually collected from journals, existingreports, and statistics by public and private authorities. The secondary data for thisparticular study were collected through marketing journals and other existing reportsthat were based on the topic. Secondary data helped the researcher to create bettercomprehension of consumer perceptions. As a general rule stated by Malhotra (2005),“Examination of available secondary data is a prerequisite to the collection of primarydata. Start with secondary data. Proceed to primary data only when the secondary data 40 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • sources have been exhausted or yield managerial returns.” Thus the study conductedand analysed primary data with the rationale of the secondary data.Since the aim of the study was to understand consumers’ view of global brands vs.local brands, qualitative research was preferred to quantitative research. In order tocreate a deep understanding of consumers’ insights of global brand against localbrands, qualitative approach was adopted with an in-depth and semi- structuredinterview process. Interviews as a qualitative tool helped the researcher to uncoverindividual’s covert feelings and emotions towards perception of global brands vs.local brands. As it was rightly said by Bate (1997) that qualitative research is aboutdigging into the everyday life of people. It is also that qualitative research produces aquality in a research that no other method gives, and provides a unique way ofillustrating and explaining theoretical issues in everyday, experimental terms.4.2. Research purposeThe purpose of this study is to understand consumers’ perception of global brands vs.local brands in the Indian car industry. The secondary objectives of the study are tohighlight the factors that effect consumer preference for global brands; to examine theeffects of country of origin on consumer perceptions of global brands and localbrands; and to study the effects of consumer ethnocentrism towards global brands.The study originally achieves the secondary objectives in order to accomplish theprimary objective.The research explores consumers’ perceptions of global brand vs. local brands in theIndian car industry. The study is conducted among the adult consumers in the agegroup of 30-60 years old. 41 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • The study undertakes exploratory research in order create a better understanding ofthe consumers. According to Malhotra (2005), the objective of exploratory research isto explore or search through a problem or situation to provide insights andunderstanding. The research process of an exploratory research is flexible andunstructured and the sample size is small and non-representative. The analysis of theexploratory research is qualitative and the results are tentative in nature (Malhotra,2005).4.3. Qualitative ResearchQualitative research methodologies are oriented towards developing understandingof the meaning and experience dimensions of human lives and their social worlds(Fossey et al, 2002).Qualitative research is chosen as the tool for research in order to explore the chosentopic of the study. In the words of Denzin and Lincoln (1994) Qualitative research ismulti-method in focus, involving an interpretive, naturalistic approach to its subjectmatter. This conveys that qualitative researchers study things in their natural settings,attempting to make sense of or interpret phenomena in terms of the meanings thatpeople bring to them. Qualitative research involves the studied use and collection of avariety of empirical materials; case study, personal experience, introspective, lifestory interview, observational, historical, interactional, and visual texts that describeroutine and problematic moments and meaning in individuals lives. “A qualitativestudy is defined as an inquiry process of understanding a social or human problem,based on building a complex, holistic picture, formed with words, reporting detailedviews of informants, and conducted in a natural setting” (Cresswell, 1994). 42 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Denzin and Lincoln (1994) assert that qualitative research tool is “the art of askingquestions and listening”. Qualitative research is unstructured, exploratory in nature,based on small samples, and may utilize popular qualitative techniques such as focusgroups (group interviews), word association (asking respondents to indicate their firstresponses to stimulus words), and in-depth interviews (one-on-one interviews thatprobe the respondents’ thoughts in detail) (Malhotra, 2005). Qualitative researchinterviews vary in methodological features such as length, style of questioning, andparticipant numbers (group or individual), while most of them are carried out face-to-face, and can also be carried out by telephone, or via the internet (Cassell and Symon,2004). This study uses the mode of telephonic interviews as a qualitative researchtool.4.4. Why Qualitative Research?The reason for choosing qualitative research tool instead of quantitative research toolcan be justified in the words of Van Mannen (1991) as he asserted that “Unlikequantitative data, raw qualitative data cannot be analysed statistically and hencequalitative research is always concerned with questions that begin with, why? How?In what way? Etc... Qualitative research is preferred because it is very difficult toexplain human behaviour in simply measurable terms like quantitative researchmethod. Measurements essentially tell us how many people behave in a certain waybut they do not adequately answer the question ‘why’? (Denzin and Lincoln, 1994).Since the study focuses around consumers’ beliefs, opinions, and views, qualitativeapproach is adopted. This can be inferred from the words of Silverman (1999) thatqualitative approach is favoured as it helps the researcher to gain insight into people’s 43 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • motivation, emotions and behaviours. Holliday (2002) asserts that qualitative researchis interpretative. Qualitative research carries deep insights into behaviour of peoplewithin specific social setting rather than a broad population. According to baker(1991), qualitative research is appropriate particularly to ‘elicit attitudinal andmotivational factors which influence behaviour’ and ‘to understand why peoplebehave the way they do’. Kaplan (1964) suggested that there is only one thing thatdistinguishes human from natural world; it is our ability to talk, interact. This‘interactive nature’ of qualitative research makes it possible to measure the reactionsof a great many people to a limited set of questions thus facilitating comparison andstatistical aggregation of data.The qualitative research adopted in this study is flexible in nature. As said by Patton(2000), In-depth interviews are flexible as it does not follow the rigid method to carryout the interview. Semi-structured interviews are more suitable when the research areais sensitive and requires the respondents to talk more personally of their experiences.4.5. InterviewsIn-depth interviews were carried out as a qualitative research tool for pursuing thestudy. An interview has been defined as ‘a conversation directed to a definite purposeother than satisfaction in the conversation itself’ (Chisnall, 1997). According toDrever (1995), interviewing people is one of the commonest methods used in small-scale educational research work. An interview is a purposeful conversation “used togather descriptive data in the subjects own words so that the researcher can developinsights on how subjects interpret some piece of the world” (Bogdan & Biklen, 1998). 44 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • In-depth interviews were carried out for the study in order to uncover the beliefs,attitudes, feelings and emotions of the respondents. In the words of (Cooper andSchindler, 1999), in-depth interview encourages respondents to share as muchinformation as possible in an unconstrained environment.Interview styles differ in structure. According to Seidman’s (1998) in-depthinterviewing utilizes open-ended questions that build upon and direct the probing ofparticipants’ responses and the goal of in-depth interviewing is “to have participantsreconstruct his or her experience within the topic under study”.In the words of Drever (1995) semi-structured interviews are ‘that the interviewer setsup a general structure by deciding in advance what ground is to be covered and whatquestions are to be asked. This leaves the detailed structure to be worked out duringthe interview. The person interviewed can answer at some length in his or her ownwords, and the interviewer responds using prompts, probes, and follow-up questionsto get the interviewee to clarify or expand on the answers’.One of the most significant techniques in good interviewing is the use of probes.Probes were used in the study, during the interviews to obtain detailed substantiatedanswers. The technique of stimulating respondents to answer more fully andrelevantly is termed probing (Cooper and Schindler, 1999). Patton (1990) identifiesthree types of probes: detail-oriented probes, elaboration probes, and clarificationprobes. This study uses the elaboration probes and according to Patton (1990)elaboration probes is designed to encourage the interviewee to tell the researchermore. Furthermore the researcher indicates his/her desire to know more by such 45 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • things as gently nodding his/her head as the respondent talks, softly voicing un-huhevery so often, and sometimes by just remaining silent but attentive. The interviewused few questions such as ‘Could you tell me more about this?’, ‘Why do you thinkso?’, ‘What else can you think about it?’, ‘What is the reason for your reason?’ etc…4.6. SamplingQualitative researchers work with small samples of people, bound by specificcontexts, and studied in depth (Miles and Huberman, 1994). Nonprobability samplingwhich is non-random and subjective (Cooper and Schindler, 1999) is applied in thestudy to carry out the interviews. Nonprobability sampling allows interviewers tochoose sample members ‘at random’ (meaning ‘as they wish’ or ‘wherever they findthem’) which is not random sampling. Judgement sampling, a kind of nonprobabilitysampling, was used in order to select the interviewees. Judgement sampling occurswhen a researcher selects sample members to conform to some criterion (Cooper andSchindler, 1999). With the application of Judgement sampling, people who possess acar in India were alone picked up as per the researcher’s choice from the generalpublic for the study. Thus the sampling frame for this study was the public in generalwho own a car brand in India. As asserted by Malhotra (2005) “Qualitative research isunstructured, exploratory in nature, based on small samples…”, the sample size forthis study is 10.4.7. Telephone interviewCooper and Schindler (1999) assert that telephone makes its greatest contribution insurvey work as a unique mode of communication to collect information fromrespondents. Also that telephone can be helpful in arranging personal interviews and 46 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • screening large populations for unusual types of respondents. Despite telephonicinterviews being expensive than other modes of interviews, they helped the researcherto converse with the respondents who are far beyond the reach. Telephonic interviewsare also less time consuming when the interviews are well scheduled through emailsbefore the interview is carried out.The study consisted of 10 adult customers in the age group of 30-60 years old. All theten respondents were interviewed through telephone. The respondents were alreadyinformed of the interviews and were scheduled through emails according to theirconvenience. This helped the researcher to avoid lapse of time that results frommaking repeated calls in order to check the availability of respondents. Therespondents were well informed of the purpose of the interview before the start ofeach and every interview. Furthermore, the respondents were explained the subjectoriented terms such as ‘COO’, ‘COBO’, ‘globalness of the brand’, etc… The reasonfor explaining these terms were to make the respondents feel more comfortable withthe topic to be interviewed. Each interview lasted for about 30-40 minutes.The interviews were started with questions that were easy to answer such as ‘whatbrand is you car?’, which made the respondents to feel free by answering thequestions. The respondents were then gradually asked questions that took a little timefor the respondents to answer such as ‘How do you perceive global brands (such asFord, BMW, Mercedes, Toyota, etc...)?’, ‘If in case the price of the local brand wascheaper than the global brand, which brand would you choose? Why’, etc…Theinterviews were thus started with easy questions and once the conversations got 47 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • smoother and friendly, it was then moved to questions where the respondents tooktime to answer.The main purpose of the interview was to understand consumer perception of globalbrands vs. local brands of cars in India. The questions were framed in such a way thatthe objectives of the study were addressed accordingly. For example, questions suchas ‘Do you know the brand origin of your car?’, ‘What makes you attached to thecountry (of the brand origin)?’, ‘Do you think that Country of Origin of your brandhas a direct influence in your purchase?’ etc…facilitated the researcher to examine theeffects of country of origin on consumer perceptions of global and local car brands.Furthermore questions such as ‘How do you perceive local brands (such as Tata,Maruti etc...)?’, ‘How do you perceive global brands (such as Ford, BMW, Mercedes,Toyota, etc...)?’, ‘What factors (such as quality, value, esteem, status, globalness perse) influenced you to buy this brand?’ etc… facilitated the researcher to highlight thefactors that effect consumer preference for global car brands and also to understandconsumer perceptions of global vs. local car brands.A pilot interview was conducted before interviewing the actual recruited respondents.The purpose of the pilot interview was to test the framed questions for flaws. Thepilot interview helped the researcher to a great extent wherein a major error wasrectified. The initial idea of the study was to understand customers’ perception ofglobal vs. local car brands in UK. Thus the pilot study was conducted with arespondent in UK. During the pilot interview, it was discovered by the researcher thatthe UK car industry was very rich only in its global brands and hardly had any localbrands. Thus, in order to create a balance in the study and also to create a more 48 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • meaningful insight, the researcher had to pursue the same study in the Indian carindustry, which has a good mixture of global and local car brands.4.8. SummaryThe chapter has explained and substantiated the methods used for conducting thestudy. With the application of qualitative research, the researcher was able to explainthings in a more descriptive manner. In order to create a deep understanding ofconsumers’ insights of global brands against local brands, qualitative approach wasadopted with an in-depth and semi-structured interview process. Interviews as aqualitative tool helped the researcher to uncover individual’s covert feelings andemotions towards the perception of global and local car brands. Telephonic interviewswere adopted in order to reach the far-off customers. Although telephonic interviewsseem to be a little expensive, it was tremendously helpful when the interviews werewell scheduled through emails before the interview was carried out, therebyconsuming less time. The use of pilot study before the actual interviews, were ofenormous help to the researcher.The next chapter will prolong the study to analysis and findings of the gathered data.The data gathered through interviews are analysed and findings are divulged in thechapter with the espousal of the literature review. 49 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Five5. Analysis and Findings5.1. IntroductionThis chapter discusses and critically analyses the findings of the qualitative data bytentatively examining the interviewees’ responses and beliefs. The gatheredqualitative data are analysed accordingly to accomplish the objectives of the study.This was done by meticulously comparing the most relevant distinct responses by theinterviewees. These distinct responses were also critically analysed with the supportof the past literature and also the researchers’ own personal view and experienceduring the interviews. Thus the unique personal quotes of the respondents remained asthe rationale for the analysis of the study.This chapter begins with the background information of the respondents who possessa car in India. The study is then pursued to analysis and discussion of the findingsfrom the interviews made, wherein the responses are analysed and discussed withregard to the research objectives of the study.5.2. Background of the respondentsThe researcher interviewed 10 respondents in the age group of 30-60 who owned a carin India. 50 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Table 1 – A background of the respondents Age Global / Local car Name of the carName of the Respondent brand brandMr. Arun 32 Local Brand Maruti ZenMr. Sathish 35 Global brand Ford IkonMr. Sudharson 42 Local Brand Tata IndicaMr. Napoleon 51 Local Brand Tata SafariMr. Arumugasamy 60 Global Brand Hyundai SantroMr.Chakravarthi 56 Local Brand Maruti ZenThavamaniMr. Surendhran 33 Global Brand Skoda OctaviaMr. Rajendhran 59 Global Brand Mercedes BenzMr. Ashok 49 Global Brand Hyundai AccentMr. Lambodharan 38 Global Brand Honda CityAmong the 10 respondents interviewed, 4 individuals possessed a local brand and 6individuals possessed a global brand. Most of the respondents who were interviewedhad a good knowledge about the cars in general, so it was expedient for the researcherto obtain pragmatic and valuable answers in order to pursue the study.5.3. Analysis and Discussion of the interviewsQualitative analysis is a process of reviewing, synthesizing and interpreting data todescribe and explain the phenomena or social worlds being studied (Fossey et al,2002). Thus the analysis part of this study provides insights into the understanding of 51 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • the beliefs and attitudes of the respondents and the perceptions they hold towards theglobal and local car brands. Fossey et al (2002) assert that developing anunderstanding of qualitative data requires conceptual level processes of exploring themeanings, patterns or connections among data that involve the researcher’s ownthought, reflection and intuition.The interview questions were framed in such a way that the respondents’ answerscould be interpreted meticulously in order to accomplish the desired objectives of thestudy. The responses are analysed and discussed with regard to the research objectivesof the study. To begin with the analysis, the secondary objectives of the study are firstaccomplished in order to achieve the key objective of the study.5.4. Accomplishing objectives of the study5.4.1. Objective one: Highlighting the factors that effect consumer preference forglobal brandsEmphasizing the factors that effect consumer preference for global car brands assistedthe researcher to relate these factors to understand consumer perception of global vs.local car brands. Under this category of discussion, it was convenient for theresearcher to analyze the responses from the individuals who possessed a global carbrand.A respondent who had a Ford Ikon could immediately think of; “Its reputation as abrand that has a world wide presence and its quality….I said reputation because;many people all over the world fancy the brand….As a worldwide brand, Ford standsfor its quality.” And he bought the brand as he asserted that; “I would first tell its 52 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • word wide presence….ya its globalness as you said…then comes status andquality…Ford brand is really good. All these factors add value to the car andeventually made me to buy this brand.”- Sathish, 35.As Steenkamp (2003) had asserted that Consumers become perceptive to globalbrands when consumers believe the brand is marketed in multiple countries and isrecognized as global in these countries, the brand, Ford Ikon having a worldwidepresence has influenced the respondent to possess it. Also the respondent isinfluenced by the brands’ world wide reputation and its quality and status ofpossessing the brand.Similarly, the factors that influenced a respondent to buy a Mercedes Benz assertedthat “worldwide presence was the foremost factor….this made me to trust the brandand made me safe in possessing the brand…the quality of cars of the brand,‘Mercedes Benz’ was also one of the reasons…and also its powerful engines and itswell-built cars make me admire the brand….and lastly, ‘esteem’ in possessing thecar…” and when he thinks of the brand he says, ‘Its poshness and its luxury…are theones that I think about the car brand….another important feature of the brand is itscomfortableness…But generally, “Mercedes” often conveys “poshness”….and alsoits worldwide presence” – Rajendhran, 59.Skoda Octavia was possessed by a respondent as he justified it as “I would just tellesteem and globalness, which made me buy the brand... also because of the foreignmake and international presence that would boost up the reason…Skoda is good inquality as well….but ‘esteem’ in possessing the car and ‘foreignness’ of the brand 53 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • were the major influencers that backed up my purchase…”and when the respondentthinks of Skoda, he talks of “Its elegance…..and comfortness are the initial ones thatcome to my mind immediately… Skoda cars also stand for their powerful engines andluxury interiors….” – Surendhran, 33.Apart from the respondents’ preference of the brand being present worldwide, theyalso added factors such as trust, luxury, comfortness, esteem, quality of cars made bythe brand. One respondent (Rajendhran, 59) mentioned that he felt safe of possessingMercedes Benz as the brand is trusted worldwide. Another respondent who owns aSkoda, revealed the ‘foreignness’ and esteem in possessing the brand (Surendhran,33). The technological superiority of the global brand makes the respondents toadmire the brand. The technological superiority of the brand here is referred to thepowerful engines and the luxury interiors mentioned by the respondents. Mercedes,being a global brand conveys poshness and worldwide presence to the respondents.This anecdotes from the words of Batra et al (2000), who asserted that internationaland global brands have been associated with prestige or status, in addition to quality.Besides this, there are research works that have documented the importance ofcountry-of-origin (COO) image in consumer evaluation of foreign products andbrands and also favorable country perceptions are known to lead to favorableperceptions of associated attributes such as product quality indicating thereby, thatconsumer evaluations are governed by influences other than the quality of the product(Peterson and Jolibert, 1995). 54 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • This can be inferred from a respondent who could immediately think about HyundaiSantro as; “It is a Korean make….a brand from Korea that has world wide reputationand has got good fame….. The brand that is well known for its technical expertise…”and the factors that he associated with the brand were as he asserted; “Factors such asquality and good reputation have influenced me to buy this brand….It is also thebrand name, ‘Hyundai’ that influenced my purchase…because it is a very goodmake….” – Arumugasamy, 60Likewise in the words of another respondent, “Quality and globalness of the brandhas a major influence for my purchase. Good reputation also has its part, as it has alarge presence all over the world….people around the world can recognize the brandname…due to the Korean make and the quality in it…” and also “comfortness wouldbe the first thing that comes to my mind….I just can imagine the comfortness of thecar while I drive and also the pleasure by driving it…the brand conveys quality andcomfortness…” – Ashok, 49.Thus the respondents were influenced by the Korean make. As the brand has its originfrom Korea, it made the respondents trust the brand due to its quality and reputation.The quality of being a Korean make has influenced the respondents’ purchase. Therespondents have associated the brand name, ‘Hyundai’ to quality, worldwidepresence, fame and technical expertise.“I was first influenced by its foreign make…..and then the brand being from Japan,made me to trust its quality…It is trusted and preferred by a large number of peoplein India itself….People who possessed the brand were satisfied with the brand and 55 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • this increased my trust….ya…globalness can also be one of the reasons….as it haspresence and being trusted all over the world ”…and when the respondent thinks ofHonda, he could think of “Its quality and sturdiness….By sturdiness, I mean itsruggedness on the roads due to its quality make… I can also think of the reputation ofthe brand ‘Honda’….and nothing else other than this…a very strong brand inIndia...” – Lambodharan, 38.Here, the respondent conversed about the foreign make. And also the brand beingJapanese make, has made him trust the brand due to its quality, globalness andreputation of the brand. This can be inferred from Batra et al., (2000) and Leclerc andSchmitt (1994) that Consumers perceive foreign brand that it might have superiorquality because of its developed nation origin is certainly likely.Therefore, the respondents who possessed global brands preferred them due to itsglobal presence, worldwide reputation, quality of being a foreign make. Good qualityand reputation of being a global brand were the major influencers for their preferencesof global brands. It was also found during the interview that the respondentsmentioned the terms ‘foreign make’, ‘foreignness’, ‘foreign car’, etc…and their likingtowards it during the conversations. This indicated their interest in possessing foreignmade products. It was also inferred from the respondents’ conversations that theytrusted foreign made cars that had worldwide presence. They also tried associating thebrands to the country from where it took its origin from and also attaching values suchas technological expertise, superior quality, etc... Thus, it was found that one of thesignificant reasons for customer preference for global brands was considered to be the 56 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • country-of- origin effects, which will be discussed in detail in the next part of thischapter.5.4.2. Objective two: Examining the effects of country-of-origin on consumerperceptions of global brands and local brandsCOO has been defined as the country where the corporate headquarters of thecompany marketing the product or brand is situated (Johansson, J.K. et al, 1985).Country-of-origin plays a vital role in the formation of consumer perceptions towardsglobal and local brands, as Kinra (2006) asserts that COO is considered as animportant differentiating factor in consumer attitudes to foreign and local brandnames. Examining the effects of country-of-origin will assist the researcher to studyits influence on consumer perceptions towards global brands and local brands.It was surprising to note that every respondent who were interviewed, were aware ofthe brand origins of their cars. Thus it was convenient for the researcher to probe theinterviewees in-depth and gain valuable insights of their beliefs and perceptionstowards their brands. The questions such as ‘Do you know the brand origin of yourcar?’, ‘what makes you attached to the country (of the brand origin)?’, and ‘Do youthink that Country of Origin of your brand has a direct influence in your purchase?’assisted the researcher to examine the effects of country-of-origin on consumerperceptions of global brands and local brands.A respondent who possesses a Maruti, which is a local brand, converses the reason forbeing attached to the country of origin that “I trust because it is made in India….It isfrom India!! Although it is purely because of trust….some times I get the feel of our 57 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • own Nationality. And moreover, India is getting rich and stronger in its automobilesector and I also trust the cars made in our country….India manufactures and sellquality cars and are also technically efficient. So I can easily relate car brands fromIndia to quality and technically efficient ones.”- Arun, 32The respondent evaluated the local brand in a favorable manner, wherein heassociated the brand to India’s strong automobile sector that makes quality andtechnically efficient cars. He also mentioned the feel of nationality towards thecountry by possessing a local brand. This shows his positive attitude towards thecountry of manufacture, although there are numerous global brands on Indian roads.A respondent who possesses a Hyundai Santro, a global brand said that “I feel thatKorean products in general are good for it quality technical expertise…they are verytough and sturdy….Korea is always famous for its technical products andequipments….. They are technically good, durable and best in quality…”–Arumugasamy, 60Similarly, another respondent who possessed a Hyundai Accent asserted that “theplace of origin of my brand has a direct influence with my purchase...largely becauseit is a Korean brand. Before I bought my car, I felt that a Korean car would be highlygood in quality and technically advanced in its make…and this made me attached tomy purchase…”- Ashok, 49Both the respondents here related ‘Hyundai’ as a brand from Korea and they believedthat Korean made products are known for their best quality and technical expertise. 58 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Moreover, it was found that the country-of-origin of Hyundai had a direct influence inthe respondents’ purchase. Thus the Korean car makes are related by the respondentsto best quality, durability, and technical advancements and these makes therespondents attached to Korea. These backs up the words of Harris et al. (1994) whosuggested that brand origin associations play a potentially powerful role in theformation of brand attitudes.This can again be illustrated wherein a respondent who owns a global brand, Hondasaid that “Only because the brand was a Japanese make, I bought the brand…Japan’sadvanced engineering works and technological advancements in making cars had adirect influence in my purchase…” and also that “Japan is known for its technologicaladvancements and advanced engineering manufactures. Japan is especially best formaking very very high quality cars…” - Lambodharan, 38. Thus the respondent wasinfluenced by the Japanese make due to the country’s advanced engineering worksand technological advancements. Also when the respondent was asked if he wasdirectly influenced by the country-of-origin of Honda, it was found that Japan had adirect influence in the respondent’s purchase.Likewise, it was found from a respondent who owns a Mercedes Benz that he wasinfluenced by the German and American make of cars due to its technicaladvancements, powerful in nature, modernization and also trust. He also stressed theword ‘make’ which was an important deciding factor for him to decide betweenbrands. A brief of his words were “Of course, the ‘make’ that is the place of originmatters a lot to me and also has a direct influence in my purchase…Only becauseMercedes Benz was a German and an American make…it made me trust the brand 59 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • and led to my purchase…just because German and American cars are strong andpowerful in nature and technically advanced…..German made vehicles are especiallygood for its modernization of cars….Both the countries are ahead in their technicaladvancements…and this makes me attached to the countries...”- Rajendhran, 59A respondent who owns a Skoda, which is based from Czech Republic responded that“I just know that it is a European make….It is known for its well built cars withpowerful engines….Europe is generally superior in manufacturing cars that arerobust…”. Although the brand was from Czech Republic, the respondent generalizedhis statement by saying that the brand was from Europe. He also said that “Yes I dofeel that country of origin of the brand has a direct influence in my purchase, justbecause I felt that the European cars are best for their powerful engines, for itsruggedness and quality…I just relate European countries with its richness in makingcars…..”- Surendhran, 33. The respondent associated the brand ‘Skoda’ to Europewhich is rich in making cars that are best known for their powerful engines,ruggedness and quality.Despite the presence of respondents who felt that the country of their brand origin hada direct influence in their purchase, there were also few respondents who felt that theirbrand origin had an indirect influence in their purchase. This can be perceived when arespondent who possessed a local brand, was asked if his purchase of the local brandwas directly influenced by the country-of-origin, as he asserted that “No, I don’t thinkthat the origin of the brand has a direct influence in buying. The first thing Iconsidered was the brand name, ‘Tata’ because of its good reputation….place oforigin of the brand would have had an indirectly influence in my purchase because 60 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • ‘Tata’, a well reputed brand from India……”- Sudharson, 42. Thus the respondentwas not influenced by the country-of-origin, but merely trusted the brand name itself.Similarly, a respondent who possesses a ‘Ford’ said that “I do know the country fromwhich the brand came into. But I don’t tend to relate it to the country…I just see it asa global brand. So, there is nothing that I feel attached to the country.” “I don’t feelthat it is American and I didn’t buy because its origin is America. But when I think ofFord…it is just the foreign make” - Sathish, 35. In this context, the respondent wasnot influenced by the country-of-origin, but was just influenced by the brand as beinga foreign make.All the consumers who were interviewed were aware of their car’s brand origin andthis made the study even more interesting. It was found that 7 out of 10 consumersbeing interviewed were directly influenced by the country-of-origin of their brand topurchase. It was also found that the respondents made favorable perceptions of thecountry, wherein they tend to associate factors such as superior quality, technicaladvancements, modernization, etc…to the country from which the brand had taken itsorigin. There were also respondents who were attached to the country-of-origin due tothese factors. Despite this, there were also very few respondents who weren’t directlyinfluenced by the country of brand origin. These respondents were merely influencedby the brand just as a ‘foreign make’ or as a trust towards the brand name that madethem purchase the brand.It is considerable to note that Country-of-origin of the brand has a substantial effecton consumers’ perception of global and local car brands. The respondents who owned 61 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • a local brand evaluated the local brand in a favorable manner, wherein they tend toassociate the brand to India’s strong automobile sector that makes quality andtechnically efficient cars. Moreover, these respondents also had a sense of nationalityand trusted the local brands and felt safe in possessing them. Besides this, most of therespondents who owned a global car brand had a positive perception towards thecountry-of-origin, thereby appealing the brand by associating with its origin. It wasalso found that these respondents had a fascination towards their brands as a ‘foreignmake’.Although country-of-origin has a substantial effect on consumer perception of globaland local car brands, it is significant to discuss the effects of consumer ethnocentrismtowards global brands. This is discussed in objective three.5.4.3. Objective three: To study the effects of consumer ethnocentrism over global brandsConsumer ethnocentrism is a psychological construct representing how consumersview products made in their own country markets as objects of pride and identityversus those from other country markets (Kinra, 2006). It is also stated by Reardon etal (2005) that ethnocentricity has substantial implications for consumer attitudeformation towards foreign products/brands, their purchase intentions and choicebetween domestic versus foreign-made products. Thus studying the effects ofconsumer ethnocentrism over global brands helped the researcher to better understandthe respondents’ beliefs and perceptions towards global and local car brands. Theeffects of consumer ethnocentrism over global brands can be well comprehended bysummarizing and discussing the responses from the interviewees. 62 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • A respondent who owned Maruti, a local brand said that “Maruti being an Indianbrand…makes me to trust my country owned brand. India manufactures and sellsquality cars and is also technically efficient. So I can easily relate car brands fromIndia to quality and technically efficient ones” (Arun, 32). He also said that “I feellocal brands in India can be trusted although there is a presence of numerous globalbrands on the roads. Local brands are equally good in quality. Local brands are to betrusted” (Arun, 32). This shows the respondents’ positive attitude and liking towardsthe local brand amongst the global car brands.Simultaneously, the same respondent perceives global brands as “Globalbrands….well I don’t fancy global brands much….but I have seen people fancy globalbrands due its ‘globalness’ itself…And being in India, I feel that local brands competeequally with global brands in all means…..I mean the quality and technicalaspects….I don’t mean that I neglect global brands…but just feel safe with localbrands…..”(Arun, 32). This shows his sense of feeling towards local brands in India.Likewise a respondent who owns a local car brand had a positive thought and feltcontent of possessing the brand as he said that “I am already using a Maruti 800 carfor the past five years. I am happy with the performance, low maintenance cost, adependable car and last but not the least, good resale value.” And also uttered that“Good and longest reputation in the Indian market.”- Chakravarthi Thavamani, 56.Alternatively a respondent who had a positive thought of local brands, also felt thatglobal brands are still better than the local car brands. This can be revealed when arespondent who owns a Tata, a local brand said that “It is a good brand and Tata is a 63 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • well known brand in the whole of India….I trust the brand…because it is efficient inquality…” (Napoleon, 51). Despite this, he also mentioned that “Global brands areactually better than local brands in quality….these brands are known for its luxuryand are posh on Indian roads...but most of these brands don’t have presence all overthe country….they are just present in the metropolitan cities…..they are alsoexpensive than local brands…” - Napoleon, 51.Similarly a respondent, who had a positive thought of local brands, chose a globalbrand when he was given a choice to decide between local and global car brands. Thiswas evidenced when a respondent uttered that “Local brands are fine in quality. Theyare less expensive and have good value for money….Indian brands are not bad….theyare good in all means…also operate technically well” - Sudharson, 42.But when the respondent was given a choice between local and global car brands, andwas also given a situation where the local brand was expensive than the global carbrand, he responded as “I would go for the global brand…as it is going to be lessexpensive than the local one…although I have said to you that quality is important forme in choosing a car brand, global brands would surely be good in quality as theyserve worldwide people…if the global brands are going to be less expensive, then theyare going to give good value too..…so would choose the global brand”- Sudharson,42.Although local car brands are well established in India owing to the rapid growth ofthe automobile sector, most of the respondents perceived global brands to be better off 64 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • than local brands. This can be exemplified when the respondents uttered in a uniquemanner.“Although local brands are good in both quality and trust, global brands are stillbetter than that…”- Arumugasamy, 60.Likewise a respondent perceived local brands as ‘They are good brands….” (In whatway is it good?) “Good in quality and less expensive than foreign brands….but I feelthat with the presence of large global brands, local brands seldom stand out of thecrowd…….” – Sathish, 35.Similarly another respondent utters that “Local brands are not bad in India….as Indiais getting well established in its automobile sector, the Indian brands are reachingbeyond boundaries…they provide good value for money….and good in quality too buttechnologically, they are not as advanced as the global brands do…”- Ashok, 49.Furthermore a respondent said that “Global car brands are the best to me…theirforeign make would speak its quality…And I feel that foreign brands are majestic onIndian roads…they stand out among the local brands….” - Lambodharan, 38Although all the respondents who were interviewed had a positive perception towardslocal brands in India, most of the respondents felt that global car brands were betterthan Indian brands. Even the respondents, who owned a local brand, had a positiveinsight towards global brands. The respondents who own a local brand had a feel ofcontentment, being safe with the home brand and also trust towards the brand. 65 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Furthermore, they also felt that global car brands were expensive than the localbrands.Vida and Fairhurst (1999) have asserted that ‘Consumer ethnocentric attitudes can berated on a continuum from highly ethnocentric to non-ethnocentric, whereby aconsumer at the high end of the spectrum believes that purchasing foreign-madeproducts is morally wrong. In contrast, highly non ethnocentric consumers may judgeforeign products based on their attributes and/or view them as better because they arenot produced in their own country. Consumers who are low on CET are morecosmopolitan in outlook and have a higher degree of cultural openness.’ This specificstudy resulted with the consumers who were non ethnocentric wherein they judgedforeign products based on their attributes and/or viewed them as better because theywere not produced in their own country. Furthermore, there were also consumers whowere low on CET and were found to be more cosmopolitan in outlook along with ahigh degree of cultural openness.5.4.4. Key Objective: To understand consumer perception of Global brands vs.local brandsConsumer perception of global brands vs. local brands can be better understood bysummarizing and discussing the pertinent responses from the interviewees. Apartfrom comprehending the responses, the findings of the secondary objectives that havealready been discussed backs up in accomplishing the primary objective of the study.A respondent who owns a local brand conferred about it as “Maruti cars are generallygood…good in quality…in fact provides good value for money. Gives full 66 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • satisfaction!! A satisfaction derived from making a right choice among other cars…Itis a friendly car for my family…Its size (small) also matters…..it is user friendly…Iusually don’t go for the big size vehicles like Ford, Opel, and others…Maruti isalways good!!” And also when given choice of global and local brand and was told asituation wherein the local brand was expensive than the global brand, the respondentresponded that “….if the local brands are slightly expensive than global brands, then Iwould definitely buy only the local brand….just because of trust…” (Arun, 32). Thisexhibits that local brands provide satisfaction and good value for money to therespondent. Furthermore, trust plays a significant role in his choice of local brand.Similarly, another respondent favors a local brand merely because of trust and quality.“I would choose the local brand….in my view; local brands are good in India’ ‘Themain reason for choosing it is because of its quality and the trust I have on Indianbrands…..today, India is performing well in automobile sector and the local brandshave country wide presence and this makes me easily trust the local brands inIndia…the cars are also technically good and lasts longer….very durable….they areworth buying and are reasonable in price.”(Napoleon, 51). He also emphasizes that“….I will not think of prestige or status in choosing a car brand….just to add onemore point to the answer, I would tell that local brands in India are alsoprestigious…..the new models being introduced by Indian companies itself showsthis…they are good in luxury and convey status and prestige…Although, prestige andstatus are not important to me…”- Napoleon, 51. This shows that the respondent feelsthat the local brands are equally good in prestige and also that prestige or status is notan important factor to him. 67 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Likewise, in the words of another respondent who owns a Maruti, a local brand, “Iwould always vote for quality and trust. Never will I be mislead by prestige .I thinkcars add only to false prestige. I think it is better to relay on ones good and longreputation than imaginary false prestige.”- Chakravarthi Thavamani, 56.On the other side, a respondent who owns a local brand perceives the global carbrands in a positive approach. As he utters that “Global brands are too good….Thequality is better than the local brands in terms of technical aspects and thedesign...they are seen as luxury vehicles by most of them in my family….and alsodream cars that are of foreign make….these brands are excellent in quality…mainlybecause they are global…”- Sudharson, 42.A respondent who owns a global brand, converses about the local brand that “Theyare good brands….Good in quality and less expensive than foreign brands….but I feelthat with the presence of large global brands, local brands seldom stand out of thecrowd…….”. But when the respondent was given a choice of a global and local brandsto buy a second car, in no moment he said that “I will choose the global brand.....as Ihave already said that I really admire and also they are appealing than localbrands….I wouldn’t mind to spend extra cost for buying a global brand….even if theyare going to be really higher than the local brands…because they would give me theextra benefits for which I am going to spend….the extra benefits are the quality,worthiness, attractive….”- Sathish, 35. 68 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Thus it can be derived that global car brands appeal more than local car brands to therespondent and also that global car brands could be consumed in order to gain extrabenefits such as quality, worthiness and attractiveness.A respondent who owns a global car brand confers that “Global brands convey itspresence everywhere in the world…people all over the world can recognize the brandname…foreign makes that have worldwide presence are best in quality but expensiveto afford it……it is luxurious to possess a global brand in a country like India…”“Although local brands are good in both, global brands are still better than that….” -Arumugasamy, 60. This serves as an anecdote to the words of Shocker et al., (1994)as it was said that ‘Research shows that perceived brand globalness for global brandscould create consumer perceptions of brand superiority’. The respondent alsoassociates best quality to his global car brand.Not only did the respondents associate global brands with best quality, but also theytend to associate it with trust. This was evidenced when a respondent said that“Global car brands are always better for me….not only they would be good inprestige, but also good in quality and trust…..although I don’t believe in prestige, Iperceive global brands to be well-off in quality and trust...” - Lambodharan, 38.This can be still substantiated wherein a respondent who owns a global brand utteredthat “I will not mind to pay the additional value in order to get the global brandunless I get financially weak… just for the simple reason because global car brandsare the best in quality and can be widely trusted… They are very muchtechnologically advanced in manufacturing cars…” (Ashok, 49). This shows that the 69 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • global brands are not only good in quality and trust but are technologically advancedtoo. These words also serve as an anecdote to Kapferer (1997) who said that ‘if abrand is viewable as globally available, consumers may attribute higher quality to thebrand because such quality is likely to be thought of as critical to global acceptance.’Although the global car brands are more expensive than the local brands, most of therespondents who were interviewed felt that it was worth buying global brands due itssuperior quality, technological advancements and reputation as being global.Furthermore, this can be again evidenced when a respondent uttered that “I feel thatforeign brands are majestic on Indian roads…they stand out among the localbrands….”; “Even an expensive global car brand is worth buying because of its valueand long lasting durability. They are reliable in quality and admirable in design andmake…Especially Honda gives me stress-free drives….and extremely well in itsquality make….”- Lambodharan, 38A respondent perceives global brands as “Global brands are fabulous…Skoda, BMW,Mercedes, etc…are excellent in their quality and are very much technicallyadvanced….foreign branded cars are inspiring in their models and designs…and veryvery sturdy on Indian roads….” . Furthermore, when the respondent was given achoice of a global and a local car brand to purchase a second car, the respondent saidthat “A ‘global brand’, because of its foreignness and worldwide reputation… I wouldchoose a local brand in India, but with the presence of a global brand, I will choosethe global brand for sure….as local brands are also good in India, but not as good asthe global ones in quality, technical expertise and designs” “I will 100% buy a global 70 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • brand…probably Toyota, which is a well reputed Japanese brand…” - Surendhran,33.Similarly, another respondent responded that “I would of course choose the globalbrand….and probably my dream car ‘Ferrari’, which is really expensive topossess….Driving a Ferrari, would make me feel in heaven….it is such a goodcar….” The respondent also substantiated this by describing that “global brands arealways better than local brands in India…Global brands are luxurious andprestigious too…Although they are expensive, they are worth buying….the globalbrands can be highly trusted due to its large presence…I just fancy brands likeMercedes, Opel, and Ferrari…due to its foreign make and popularity as a globalbrand…”- Rajendhran, 59.Therefore it could be elucidated that the respondents perceive local brands to be goodin India, but not as good as the global ones in quality, technical expertise and designs.They also found global car brands to be luxurious in nature.Local brands were found to provide satisfaction and good value for money. Therespondents, who possessed local brands, trusted the brands and felt safe with it. Thiscan also be understood from Schuiling et al (2004), who asserted that “value is linkedwith the fact that prices of local brands are usually lower than those of internationalbrands, providing consumers a sense of better value for the money”. Quality and trustwere the major influencers for possessing local brands. Prestige or status had only apassive role in the respondents’ perception, who owned a local car brand. As an 71 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • ethnocentric effect, it was revealed by a respondent that local car brands in India werealso equally good in prestige.Although it has been suggested by Kapferer (1997) that consumers may prefer foreignbrands because of associations of higher prestige, it was surprising to note that veryfew respondents believed in status or prestige as a factor that effected in theirperception towards local and global brands. It was only 3 out of 10 respondents whowere interviewed, believed in status or prestige of possessing a global car brand. Itwas also derived that global car brands appeal more than local car brands to therespondents and also that global car brands could be consumed in order to gain extrabenefits such as quality, worthiness and attractiveness. Although the global car brandsare more expensive than the local brands, most of the respondents who wereinterviewed felt that it was worth buying global brands due its superior quality,technological advancements and reputation as being global. Apart from these, Globalcar brands were often associated by the respondents to ‘luxury’, ‘comfortness’ and asa ‘foreign make’.Last but not the least, it was revealed that most of the respondents perceive localbrands to be good in India, but not as good as the global ones in quality, technicalexpertise and designs.5.5. Review of key Findings and ConclusionThis chapter assisted the researcher to critically analyse the findings of the qualitativedata by tentatively examining the interviewees’ responses and beliefs. The gatheredqualitative data were analysed accordingly to accomplish the objectives of the study. 72 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • This was done by meticulously comparing the most relevant distinct responses by theinterviewees. Among the 10 respondents interviewed, 4 individuals possessed a localbrand and 6 individuals possessed a global brand. Most of the respondents who wereinterviewed had a good knowledge about the cars in general. The secondaryobjectives of the study were first accomplished in order to achieve the key objectiveof the study.Highlighting the factors that effect consumer preference for global car brands assistedthe researcher to relate these factors to understand consumer perception of global vs.local car brands. By accomplishing this objective, it was found that the respondentswho possessed global brands preferred them due to its global presence, worldwidereputation, and quality of being a foreign make. The technological superiority of theglobal brand makes the respondents to admire the brand. It was also found during theinterview that the respondents mentioned the terms ‘foreign make’, ‘foreignness’,‘foreign car’, etc…and their liking towards it during the conversations. This indicatedtheir interest in possessing foreign made products. It was also inferred from therespondents’ conversations that they trusted foreign made cars that had worldwidepresence. Moreover, country-of-origin of the brand had a substantial influence in therespondents’ preference for global car brands, wherein they also tried associating thebrands to the country from where it took its origin from and also attaching values suchas technological expertise, superior quality, etc... Good quality and reputation of beinga global brand were the major influencers for their preferences of global brands.Prestige or status had a very little or no influence in their preference for global carbrands. 73 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Examining the effects of country-of-origin assisted to study its influence on consumerperceptions towards global brands and local brands. All the consumers who wereinterviewed were aware of their car’s brand origin. It was found that 7 out of 10consumers being interviewed were directly influenced by the country-of-origin oftheir brand to purchase. Country-of-origin of the brand has a substantial effect onconsumers’ perception of both global and local car brands. It was also found that therespondents made favorable perceptions of the country, wherein they tend to associatefactors such as superior quality, technical advancements, modernization, etc…to thecountry from which the brand had taken its origin. Despite this, there were also veryfew respondents who weren’t directly influenced by the country of brand origin.The respondents who owned a local car brand evaluated the local brand in a favorablemanner, wherein they tend to associate the brand to India’s strong automobile sectorthat makes quality and technically efficient cars. Moreover, these respondents alsohad a sense of nationality and trust towards the local brands and felt safe in possessingthem. Besides this, most of the respondents who owned a global car brand had apositive perception towards the country-of-origin, thereby appealing the brand byassociating with its origin. It was also found that these respondents had a fascinationtowards their brands as a ‘foreign make’.Studying the effects of consumer ethnocentrism over global brands assisted to betterunderstand the respondents’ beliefs and perceptions towards global and local carbrands. Although all the respondents who were interviewed had a positive perceptiontowards local brands in India, most of the respondents felt that global car brands werebetter than Indian brands. Even the respondents, who owned a local brand, had a 74 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • positive insight towards global brands. The respondents who own a local brand had afeel of contentment, being safe with the home brand and also trust towards the brand.Furthermore, they also felt that global car brands were expensive than the localbrands.It was found that there were consumers who were non-ethnocentric, wherein theyjudged foreign products based on their attributes and/or viewed them as better becausethey were not produced in their own country. Furthermore, there were also consumerswho were low on CET and were found to be more cosmopolitan in outlook along witha high degree of cultural openness.Local brands were found to provide satisfaction and good value for money. Therespondents, who possessed local brands, trusted the brands and felt safe with it.Quality and trust were the major influencers for possessing local brands. Prestige orstatus had only a passive role in the respondents’ perception, who owned a local carbrand.It was revealed that only 3 out of 10 respondents, who were interviewed, believed instatus or prestige of possessing a global car brand. It was also derived that global carbrands appeal more than local car brands to the respondents and also that global carbrands could be consumed in order to gain extra benefits such as quality, worthinessand attractiveness. Although the global car brands are more expensive than the localbrands, most of the respondents who were interviewed felt that it was worth buyingglobal brands due its superior quality, technological advancements and reputation asbeing global. Apart from these, Global car brands were often associated by the 75 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • respondents to ‘luxury’, ‘comfortness’ and as a ‘foreign make’. It was significant tonote that most of the respondents perceive local brands to be good in India, but not asgood as the global ones in quality, technical expertise and designs. 76 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Chapter Six6. Conclusions6.1 Conclusions of the studyThis chapter concludes the study by summarising the entire study and also byhighlighting the key findings of the study. The chapter then pursues to the limitationsof the study and presents the recommendations for future research.The aim of the study was to understand consumer perception of global brands vs.local brands in the Indian car industry. The car industry in India was undertaken forthe study due to the strong growth of the automobile sector in India. The secondaryobjectives of the study highlighted the factors that effect consumer preference forglobal brands; examined the effects of country of origin on consumer perceptions ofglobal brands and local brands; and studied the effects of consumer ethnocentrismtowards global brands. The study initially accomplished the secondary objectives inorder to accomplish the primary objective.The literature review provided a critical analysis of the views and insights of variousresearchers on the subject area and served as a source of secondary data, which werecollected through marketing journals and other existing reports that were based on thetopic. Furthermore, an overview of the Indian car industry was presented in the studyin order to facilitate the reader to comprehend the study in an enhanced way.Since the aim of the study was to understand consumers’ view of global brands vs.local brands, qualitative research was preferred to quantitative research. In order tocreate a deep understanding of consumers’ insights of global car brands against local 77 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • car brands, qualitative approach was adopted with an in-depth and semi- structuredinterview process. Interviews as a qualitative tool helped the researcher to uncoverindividual’s covert feelings and emotions towards perception of global brands vs.local brands. The study consisted of 10 adult Indian customers in the age group of 30-60 years old. Telephonic interviews were adopted to study all the 10 customers. Therespondents were already informed of the interviews and were scheduled throughemails according to their convenience. Furthermore, the respondents were explainedthe subject oriented terms such as ‘COO’, ‘COBO’, ‘globalness of the brand’, etc…The reason for explaining these terms were to make the respondents feel morecomfortable with the topic to be interviewed. Each interview lasted for about 30-40minutes. The main purpose of the interview was to understand consumer perceptionof global brands vs. local brands of cars in India. The questions were framed in such away that the objectives of the study were addressed accordingly. A pilot interviewwas conducted before interviewing the actual recruited respondents, the aim of itbeing to test the framed questions for flaws.The analysis and findings part of the study initiated with the background informationof the respondents who possess a car in India and was then pursued to analysis anddiscussion of the findings from the interviews made, wherein the responses wereanalysed and discussed with regard to the research objectives of the study. Thedistinct responses of the interviewees were critically analysed with the support of thepast literature and also the researchers’ own personal view and experience during theinterviews. Most of the respondents who were interviewed had a good knowledgeabout the cars in general, so it was expedient for the researcher thereby obtainingpragmatic and valuable answers in order to pursue the study. Among the 10 78 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • respondents interviewed, 4 individuals possessed a local brand and 6 individualspossessed a global brand. The secondary objectives of the study were firstaccomplished in order to achieve the key objective of the study.Highlighting the factors that effect consumer preference for global car brands assistedthe researcher to relate these factors to understand consumer perception of global vs.local car brands. By attaining this objective, it was found that the respondents, whopossessed global car brands, preferred their car brands due to factors such as globalpresence, worldwide reputation, and quality of being a foreign make. Prestige orstatus had a very little or no influence in their preference for global car brands. It wasalso inferred from the respondents’ conversations that they trusted foreign made carsthat had worldwide presence. Moreover, country-of-origin of the brand had asubstantial influence in the respondents’ preference for global car brands, whereinthey also tried associating the brands to the country from where it took its origin fromand also attaching values such as technological expertise, superior quality, etc... Thesecan be inferred from the study conducted by Kinra (2006) that COO credibility offoreign brands was a significant factor influencing consumer attitudes and preferencesas it was correlated highly with “quality” and “status and esteem”. Above and beyondall these factors, good quality and reputation of being a global brand were the majorinfluencers for their preferences of global brands. This could be supported by afinding from a study by Johansson and Ronkainen (2004), wherein it was told thatglobal brands enjoy higher levels of esteem and also that global brands were knownfor their perceived quality. This was substantiated by Kapferer (1997) that “if a brandis viewable as globally available, consumers may attribute higher quality to the brandbecause such quality is likely to be thought of as critical to global acceptance.” 79 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Examining the effects of country-of-origin assisted to study its influence on consumerperceptions towards global and local car brands. All the consumers who wereinterviewed were aware of their car’s brand origin. It was found that 7 out of 10consumers being interviewed were directly influenced by the country-of-origin oftheir brand to purchase. Furthermore the respondents made favourable perceptions ofthe country, wherein they tend to associate factors such as superior quality, technicaladvancements, modernization, etc…to the country from which the brand had taken itsorigin. There were very few respondents who weren’t directly influenced by thecountry of brand origin. The respondents who owned a local car brand evaluated thelocal brand in a favourable manner, wherein they tend to associate the brand to India’sstrong automobile sector that makes quality and technically efficient cars. Theserespondents also had a sense of nationality and trust towards the local brands and feltsafe in possessing them. This backs up the words of Holt et al (2003), who assertedthat “Local brands benefit not only from a good quality image but also from a bettervalue and trust perception than international brands do”.Studying the effects of consumer ethnocentrism over global brands assisted to betterunderstand the respondents’ beliefs and perceptions towards global and local carbrands. This can be justified from the words of Reardon et al (2005), who assertedthat ethnocentricity has substantial implications for consumer attitude formationtowards foreign products/brands, their purchase intentions and choice betweendomestic versus foreign-made products.Although all the respondents who were interviewed had a positive perception towardslocal brands in India, most of the respondents felt that global car brands were better 80 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • than Indian brands. Surprisingly, the respondents, who owned a local brand, also hada positive insight towards global brands. But the respondents felt that the global carbrands were expensive than the local brands. The study found to have both non-ethnocentric consumers and consumers who were low on CET. The non-ethnocentricconsumers judged foreign products based on their attributes and/or viewed them asbetter because they were not produced in their own country. Consumers, who werelow on CET, were found to be more cosmopolitan in outlook along with a high degreeof cultural openness. This could be inferred to Supphellen and Groundhog (2003) whostates that, in transitional economies, low ethnocentric consumers may have positivestereotypes of foreign brands.Local brands were found to provide satisfaction and good value for money. Therespondents, who possessed local brands, trusted the brands and felt safe with it.Quality and trust were the major influencers for possessing local brands. Moreover,Prestige or status had only a passive role in the respondents’ perception, who owned alocal car brand.It was revealed that only 3 out of 10 respondents, who were interviewed, believed instatus or prestige of possessing a global car brand. It was also derived that global carbrands appeal more than local car brands to the respondents. Global car brands wereconsumed by the respondents in order to gain extra benefits such as quality,worthiness and attractiveness. The respondents who possess global car brands felt thatit was worth buying global brands due its superior quality, technologicaladvancements and reputation as being global. Apart from these, Global car brands 81 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • were often associated by the respondents to ‘luxury’, ‘comfortness’ and as a ‘foreignmake’.Last but not the least, it was significant to note from the study that most of therespondents perceive local brands to be good in India, but not as good as the globalones in quality, technical expertise and designs of the cars.6.2. Limitations of the study and recommendations for future researchTime was a major constraint for the study. Time being a constraint, limited the studyin certain aspects, as the study was restricted to a period of mere three months.Additional time would have supported the study by increasing the sample size andthereby providing more conclusive results.The interviews limited the researcher to have face-to-face interviews, as the study wasconducted in an Indian Industry. Although telephone interviews helped the researcherto conduct the study, it wasn’t as effective as face-to-face interviews, as substantialinformation was difficult to obtain.As said by Malhotra (2005) “The research process of an exploratory research isflexible and unstructured and the sample size is small and non-representative. Theanalysis of the exploratory research is qualitative and the results are tentative innature”, the sample size undertaken for the study did not represent the wholepopulation of India. Although care was taken in cautiously interpreting the findings,the results obtained from the study were tentative in nature, and were generalized. 82 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • As recommendation for future research works, replications and extension of the samestudy could be made by comparing consumer perceptions between a developingcountry like India and a developed country. This would serve the study to be moreproductive. Furthermore, as this study studied consumers only in the age group of 30-60, future studies could be undertaken among different age groups as the degree oftheir thoughts varies accordingly. Apart from the conducting semi-structuredinterviews for understanding the consumers’ thoughts and beliefs, conduct of focusgroups could enhance the study by obtaining views of consumers from differentangles.Moreover, as time was a constraint, car industry was alone chosen for the study. As asuggestion for future research, the whole automobile industry could be taken for theresearch work. Thus, these recommendations would assist the marketers andresearchers in undertaking future research works.. 83 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • ReferencesAaker, L.J. (1997), “Dimensions of brand personality”, Journal of MarketingResearch, August, pp. 347- 356.Agarwal, J. and Kamakura, W.A. (1999), “Country of origin: a competitiveadvantage?”, International Journal of Research in Marketing, Vol. 16 (4), pp. 255-267.Alden, D.L., Steenkamp, J.E.M. and Batra, R. (1999), “Brand positioning throughadvertising in Asia, North America, and Europe: the role of global consumer culture”,Journal of Marketing, vol. 63, pp. 75- 87.Al-Sulaiti, K.I. and Baker, M.J. (1998), “Country of origin effects: a literaturereview”, Marketing Intelligence & Planning, Vol. 16(3), pp. 39-52.Bailey, W. and Pineres, S. (1997), “Country of origin attitudes in Mexico: theMalinchismo effect”, Journal of International Consumer Marketing, Vol. 9 (3), pp.25-41.Baker, M.J. (1991), Research for Marketing, Mcmillan education Ltd., London.Baker, M.J. and Michie, J. (1995), “Product country images: perceptions of Asiancars”, University of Strathclyde, Department of Marketing, Working Paper, SeriesNo. 95 (3).Balabanis, G. and Diamantopoulos, A. (2004), “Domestic country bias, country-oforigin effects, and consumer ethnocentrism: a multidimensional unfolding approach”,Journal of the Academy of Marketing Science, Vol. 32 (1), pp. 80-95.Bannister, J.P. and Saunders, J.A. (1978), “UK consumers’ attitudes towards imports:the measurement of national stereotype image”, European Journal of Marketing, Vol.12, pp. 562-70. 84 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Batra, R., Ramaswamy, V., Alden, D.L., Steenkamp, J.E.M. and Ramachandran, S.(2000), “Effects of brand local and non-local origin on consumer attitudes indeveloping countries”, Journal of Consumer Psychology, Vol. 9 (2), pp.83-95.Bate, S.P. (1997), “Whatever happened to organizational anthropology? A review ofthe field of organisational ethnography and anthropological studies”, HumanRelations, 50 (9), pp. 1147- 1175.Baughn, C.C. and Yapark, A. (1996) “Economic nationalism: conceptual andempirical development”, Political Psychology, Vol. 17(4), pp. 759- 778.Bearden, W.O. and Etzel, M.J. (1982), “Reference group influence on product andbrand purchase decisions”, Journal of Consumer Research, vol.9, pp.183-194.Bogdan, R. C., & Biklen, K. B. (1998). Qualitative Research for Education, Boston:Allyn and Bacon.Catherine Cassell and Gillian Symon (2004), Essential guide to Qualitative Methodsin Organizational Research, 1st edn, ThousandOaks,CA:SageCattin, P., Jolibert, A. and Lohnes, C. (1982), “A cross cultural study of ‘made-in’concepts”, Journal of International Business Studies, Vol. 13 (3), pp. 131-41.Chao, P. (1993), “Partitioning country of origin effects: Consumer evaluations of ahybrid product”, Journal of International Business Studies, Vol. 24(2), pp. 291-306.Chaudhuri, A. and Holbrook, M. (2001), “The chain of effects from brand trust andbrand affect to brand performance: the role of brand loyalty”, Journal of Marketing,Vol. 65 (2), pp. 81-94.Chisnall,P.M. (1997), Marketing research, Mc Graw-hill, Bershire. 85 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Cresswell, J.W. (1994). Research design: Qualitative and quantitative approaches.ThousandOaks,CA:Sage.Dawar, N. and Parker, P. (1994) “Marketing universals: consumers’ use of brandname, price, physical appearance, and retailer reputation as signals of productquality”, Journal of Marketing, Vol. 58, pp. 81- 95.De Mooij, Marieke (1998), Global Marketing and Advertising. Thousand Oaks, CA:Sage Publications.Denzin, N. and Lincolnc, Y.S. (1994), Handbook of qualitative research, Sage, CA.Domzal, T. and Unger, L.S. (1987), “Emerging positioning strategies in globalmarketing”, The Journal of Consumer Marketing, Vol. 4 (4), fall, pp. 23-40.Donald R. Cooper and Pamela S. Schindler (1999), Business Research Methods, 6thedn, Tata McGraw-Hill Publishing Company Limited, New Delhi, India.Doyle, P. (2002), Marketing Management and Strategy, 3rd edn, Pearson educationLtd.Drever, E. (1995), Using semi-structured interviews in small- scale research: ateachers guide, The Scottish council for research in education: Glasgow.Ellie Fossey, Carol Harvey, Fiona McDermott and Larry Davidson (2002),Understanding and Evaluating Qualitative Research, Australian and New ZealandJournal of Psychiatry, Vol. 36, pp. 717–732.Eroglu, S.A. and Machleit, K.A. (1989), “Effects of individual and product specificvariables on utilizing country-of-origin as a product cue”, International MarketingReview, Vol. 6 (6), pp. 27-41. 86 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Erickson, G.M., Johansson, J.K. and Chao, P. (1984), “Image variables inmultiattitude product evaluations: country-of-origin effects”, Journal of ConsumerResearch, Vol. 11, September, pp. 694-699.Fatt, J.P.T. (1997), “Communicating a winning image”, Industrial and CommercialTraining, Vol. 29 (5), pp.158-65.Friedman, J. (1990), “being in the world: globalization and localization”, Theory,culture, and society, Vol. 7, pp. 311- 328.Gaedeke, Ralph (1973), “Consumer attitudes towards products ‘made in’ developingcountries”, Journal of Retailing, 49 (Summer), pp.13-24.Gardner, M. and Houston, M. (1986), “The effects of verbal and visual components ofretail communications”, Journal of Retailing, Vol. 62 (1), pp. 64-78.Ghauri, P. and Cateora, P. (2006), International Marketing, 2nd edn, McGraw-HillCompanies, Berkshire.Ger, G., Belk, R. and Lascu, D. (1993), “The development of consumer desire inmarketing and developing economies: the cases of Romania and Turkey”, Advancesin Consumer Research, Vol. 20, pp. 102-7.Good, L.K. and Huddleston, P. (1995), “Ethnocentrism of Polish and Russianconsumers: are feelings and intentions related?”, International Marketing Review,Vol. 12 (5), pp. 35-48.Giana M. Eckhardt (2005), “Local Branding in a Foreign Product Category in anEmerging Market”s, Journal of International Marketing, Vol. 13 (4), pp. 57-79.Han, C. M. and Terpstra. V. (1988), “Country-of-Origin effects for uni-national andbi-national products” Journal of International Business Studies, (summer), Vol. 19(2), pp. 235–255. 87 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Han, C. M. (1989), “Country Image: Halo or Summary Construct?” Journal ofMarketing Research, 26 (May), 222–29.Han, C.M. (1990) ‘Testing the role of country image in consumer choice behavior’,European Journal of Marketing, vol. 26 (6), pg. 24-40.Harris, R.J., Garner-Earl, B., Sprick, S.J. and Carroll, C. (1994), “Effects of foreignproduct names and country-of-origin attributions on advertisement evaluations”,Psychology and Marketing, Vol. 11 (2), pp. 129-144.Hassan, S.S. and Katsanis, L.P. (1994), “Global market segmentation strategies andtrends’ in Steenkamp, Jan-Benedict E.M., Rajeev Batra, and Dana Alden (2003),“How Perceived Brand Globalness Creates Brand Value,” Journal of InternationalBusiness Studies, Vol. 34 (1),pp. 53–65.Holliday, A. (2002), Doing and writing qualitative research, Sage, London.Holt, Douglas, John Quelch, and Earl Taylor (2003), “Managing the TransnationalBrand: How Global Perceptions Drive Value,” working paper, Harvard BusinessSchool.Interbrand (1990), Brands, Interbrand Group plc, Mercury Business Books, London.Iyer, G.R. and Kalita, J.K. (1997), “The impact of country-of-origin and country ofmanufacture cues on consumer perceptions of quality and value”, Journal of GlobalMarketing, Vol. 11 (1), pp. 7-28.Jacoby, J., Szybillo, G.J. and Busato-Schach, J. (1977), “Information acquisitionbehavior in brand choice situations”, Journal of Consumer Research, Vol. 3 (3), pp.209-16. 88 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Johansson, J.K., Douglas, S.P. and Nonaka, I. (1985), “Asssessing the impact ofcountry of origin on product evaluations: a new methodological perspective”, Journalof Marketing Research, Vol. 22, pp. 388-396.Johansson, J.K., Ronkainnen, I.A. and Czinkota, M.R. (1994), “Negative country-oforigin effects: the case of Russia”, Journal of International Business Studies, Vol. 25,pp. 157-76.Johansson, J.K. and Ilkka A. Ronkainen (2004), “Consider Implications of LocalBrands in a Global Arena”, Marketing News, May 15, pp. 46- 48.Kapferer, J.N. (1997) Strategic Brand Management, 2nd edn, Kogan Page: Dover, NH.Kaplan, A. (1964), The conduct of enquiry, Chandler, Scranton.Kinra, N. (2006), “The effect of country-of-origin on foreign brand names in theIndian market”, Marketing Intelligence & Planning, Vol. 24 (1), pp.15-30.Kirmani, A. and Baumgartner, H. (2000), “Reference Points Used in Quality andValue Judgements”, Marketing Letters, Vol. 11 (4), pp. 299-310.Kotler, P. (2003), Marketing Management, 11th edn, Pearson education, India.Leclerc, F., Schmitt, B.H. and Dube, L. (1994), “Foreign branding and its effect onproduct perceptions and attitudes”, Journal of Marketing Research, Vol. 31 (2), pp.263-270.Lee, D. and Schaninger, C. (1996), “Country of production/ assembly as a newcountry image construct: a conceptual application to global transplant decision”,Advances in International Marketing, vol. 7, pp. 233-254.Levitt, Theodore (1983), “The Globalization of Markets,” Harvard Business Review,61 (May–June), 92–108. 89 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Lim K. and O’ Cass, A (2001), “Consumer brand classifications: an assessment ofculture-of-origin versus country-of-origin”, Journal of Product and BrandManagement, Vol. 10 (2), pp. 120-136.Lindstrom M (2005), Ensure country of origin is right for your brand, Media: HongKong, June 3, pp. 21.Malhotra, Naresh K. (2005), Marketing Research: An applied orientation, 4th edn,Pearson education, India.McCracken, G. (1986) “Culture and consumption: a theoretical account of thestructure and movement of the cultural meaning of consumer goods”, Journal ofConsumer Research, Vol. 13, pp. 71- 84.Miles, M. B. & Huberman, A. M. (1994). Qualitative Data Analysis. Thousand Oaks,CA: Sage.Mohamad, O., Ahmed, Z.U., Honeycutt,E.D. and Tyebkhan, T.H. (2000), “Does‘made in….’ matter to consumers? A Malaysian study of country of origin”,Multinational Business Review, Vol. 8(2), pp.69-73.Monroe, K. and Krishnan, R. (1985), “The effect of price on subjective productevaluations”, in Jacoby, J. and Olson, J. (Eds), Perceived Quality: How ConsumersView Stores and Merchandise, Lexington Books, Boston, MA, pp. 209-32.Papadopoulos, N. (1993), “What product and country images are and are not”, inPapadopoulos, N. and Heslop, L. (Eds.), Product and Country images, Haworth Press,New York, NY.Papadoupoulos, N., Heslop, L.A. and Baossy, G. (eds)., (1993), “Product CountryImages: Impact and Role in International Marketing”, International Business Press,Binghampton, NY. 90 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Paswan, A.K. and Sharma, D. (2004), “Brand-country of origin (COO) knowledgeand COO image: investigation in an emerging franchise market”, Journal of Product& Brand Management, Vol. 13 (3), pp.144-155.Patton,M.Q. (1990) Qualitative Evaluation and Research Methods Second Edition,Sage, 1990Peterson, R.A. and Jolibert, A.J.P. (1995), “A meta-analysis of country-of-origineffects”, Journal of International Business Studies, Vol. 26 (4), pp. 883-900.Pitcher, G. (1999) “Consumer brands cull makes room to grow”, Marketing Week,Vol. 22(40), pp. 23.Quelch, J. (1999), “Global brands: taking stock”, Business Strategy Review, Vol. 10(1), pp. 1- 14.Rao, A. and Monroe, K. (1989), “The effect of price, brand, name and store name onbuyers’ perceptions of product quality: an integrative review”, Journal of MarketingResearch, Vol. 26 (3), pp. 351-8.Rao, V. (1972), “Changes in explicit information and brand perceptions”, Journal ofMarketing Research, Vol. 9 (9), pp. 209-13.Ratliff, R. (1989), “Where’s the new car made? Many Americans don’t know” in LimK. and O’ Cass, A (2001), “Consumer brand classifications: an assessment of cultureof-origin versus country-of-origin”, Journal of Product and Brand Management, Vol.10 (2), pp. 120-136.Reardon, J., Miller, C., Vida, I., Kim, I. (2005), “The effects of ethnocentrism andeconomic development on the formation of brand and ad attitudes in transitionaleconomies”, European Journal of Marketing, Vol. 39 (7/8), pp. 737-754. 91 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Richard Pinder (2003), “BRANDING: Comment - How thinking global and actinglocal can help in trying times”, Media Asia, May, 16, Database: Business SourcePremier.Rossiter, J.R. and Percy, L. (1987) Advertising and Promotion Management, NewYork: McGraw-Hill Book Company.Samiee, S. (1994), “Customer evaluation of products in a global market”, Journal ofInternational Business Studies, Vol. 25 (3), pp. 579-604.Schuiling, Isabelle and Jean-Noel Kapferer (2004), “Real Differences between Localand International Brands: Strategic Implications for International Marketers,” Journalof International Marketing, Vol. 12 (4), 97–112.Seidman, I. (1998). Interviewing as qualitative research. New York: Teachers CollegePress.Sharma, S., Shimp, T. and Shin, J. (1995), “Consumer ethnocentrism: a test ofantecedents and moderators”, Journal of Academy of Marketing Science, Vol. 23(1),pp. 26-37.Shimp, T.A. and Sharma, S. (1987), “Consumer ethnocentrism: construction andvalidation of the CETSCALE”, Journal of Marketing Research, Vol. 24 (3), pp. 280-289.Shocker, A.D., Srivastava, R. and Ruekert, R.W. (1994), “Challenges andopportunities facing brand management: an introduction to the special issue”, Journalof Marketing Research, Vol. 31, pp. 149- 58.Shocker, Allan D., Rajendra K. Srivastava, and Robert W. Ruekert (1994),“Challenges and Opportunities Facing Brand Management: An Introduction to theSpecial Issue,” Journal of Marketing Research, 31 (May), 149–58. 92 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Silverman, D. (2001), Interpreting qualitative data, Sage, London.Steenkamp, J.E.M., Batra, R. and Alden, D.L. (2003), “How perceived brandglobalness creates brand value”, Journal of International Business Studies, Vol. 34(1), pp. 53- 65.Supphellen, M. and Gronhaug, K. (2003), “Building foreign brand personalities inRussia: the moderating effect of consumer ethnocentrism”, International Journal ofAdvertising, Vol. 22 (2), pp. 203-26.Susannah Hart, Interbrand (1998), Brands: The New Wealth Creators, MacmillanPress Ltd, London.Terpstra, Vern (1987), “The Evolution of International Marketing,” InternationalMarketing Review, Vol. 4 (summer), 47–59.Thakor, M.V. and Kohli, C.S. (1996), “Brand origin: conceptualisation and review”,Journal of Consumer Marketing, Vol. 13 (3), pp. 540-544.Thakor, M.V. and Lavack, A.M. (2003), “Effect of perceived brand originassociations on consumer perceptions of quality”, Journal of Product and BrandManagement, Vol. 12(6), pp.394-407.Thompson, C.J. and Tambyah, S.K. (1999), “Trying to be cosmopolitan”, Journal ofconsumer Research, Vol. 26, pp.214- 241.Van Mannen, J. (1991), “The smile factory: work at Disneyland” in P.J. Frost et al.,Reframing organizational culture, pp. 58-76.Veblen, T. B. (1899), The Theory of the Leisure Class, Boston: Houghton Mifflin. 93 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Vida, I. and Fairhurst, A. (1999), “Factors underlying the phenomenon of consumerethnocentricity: evidence from four central European countries”, International Reviewof Retail and Consumer Research, Vol. 9 (4), pp. 321-37.Vigneron, F. and Johnson, L. W. (1999), “A Review and a Conceptual Framework ofPrestige- Seeking Consumer Behaviour”, Academy of Marketing Science Review, Vol.1, pp. 1-17.Wall, M. and Heslop, L.A. (1986), “Consumer attitudes toward Canadian-madeversus imported products”, Journal of the Academy of Marketing Science, Vol. 14 (2),pp. 27-36.Walker, C. (1996) “Can TV save the planet?” American Demographics, vol. 18(May),pp. 42- 49.Wang, C.K. and Lamb, C. (1980), “Foreign environmental factors influencingAmerican consumers’ predisposition towards European products”, Journal of theAcademy of Marketing Science, Vol. 8 (4), pp. 345-67.Wolfe, Alan (1991), “The Single European Market: National of Euro-Brands,”International Journal of Advertising, 10 (1), 49– 58.Zambuni, R. (1993), ‘Developing brands across borders’, Journal of BrandManagement’, vol. (1), pp. 22- 29.WebsitesAutomotive, IBEF Davos, Jan 25-29 (2006) inhttp://ibef.org/download/Automotive_sectoral.pdf, accessed on 10th August 2006.IBEF (2006) in http://ibef.org/industry/automobiles.aspx, accessed on 10th August2006. 94 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • http://auto.indiamart.com/cars, accessed on 15th August 2006.www.iloveindia.com, accessed on 9th September 2006. 95 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 1 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.NameAge 1. What brand is your car? 2. What is the reason for buying this brand? 3. Do you know the brand origin of your car? (the country from which the brand took its origin from) Yes No a. If yes, what makes you attached to the country (of the brand origin)? 4. What comes to your mind immediately, the moment you think of your car brand? 5. What factors (such as quality, value, esteem, status, globalness itself) influenced you to buy this brand? 96 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • 6. What basic factors are significant to you, in generally choosing a car brand? 7. Do you think that Country of Origin of your brand has a direct influence in your purchase? (the country from which the brand came from) 8. How do you perceive local brands (such as Tata, Maruthi, etc...)? 9. How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota, etc...)? 10. If you were about to buy a second car, and were given a choice of a local band and a global brand, which would you choose? 11. What would be the main reason behind choosing it? 12. If in case the local brand was perceived to be good in terms of “quality” and “trust” and the global brand being perceived to be good in “prestige”, which brand would you choose? Why? 13. If in case the price of the local brand was cheaper than the global brand, which brand would you choose? Why? Thank you for your time!! 97Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.1 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: ArunAge: 32What brand is your car? Maruti ZenWhat is the reason for buying this brand? Well, Maruti cars are generally good…good in quality…in fact provides goodvalue for money. Gives full satisfaction!! A satisfaction derived from making a rightchoice among other cars…It is a friendly car for my family…Its size (small) alsomatters….it is user friendly…I usually don’t go for the big size vehicles like Ford,Opel, and others…Maruti is always good!!Do you know the brand origin of your car? Yes No a. If yes, what makes you attached to the country (of the brand origin)? Yes, TRUST!!!! I trust the brand, ‘Maruti’. I trust because it is made in India….It is from India!! Although it is purely because of trust….some times I get the feel of our own Nationality. And moreover, India is getting 98 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • rich and stronger in its automobile sector and I also trust the cars made in our country….What comes to your mind immediately, the moment you think of your carbrand?A renowned brand in India…..The largest selling brand in India…I can as well thinkof its reputation and quality that the brand offers. A good Indian brand above all andcant think of anything else…..What factors (such as quality, value, esteem, status, globalness per se) influencedyou to buy this brand?Hmmm…it is just quality and value. The quality in car as well its service. I normallydon’t look for esteem or status….but just go for quality and trust…and I am beingsatisfied with quality and trust by buying ‘Maruti’ brand. Indeed, it gives me goodvalue for money….. Thus I can’t think of any other factors apart from these.What basic factors are significant to you, in generally choosing a car brand?Not only in buying ‘Maruti’, but also in buying any other car brand, I just seek trust,quality and value for money and nothing else. And these are the factors that wouldhelp me in selecting a car brand… (Why not status?) I would not buy a car brand forprestige or status!! Just because, it is not going to add any extra value to me or to thecar.Do you think that Country of Origin of your brand has a direct influence in yourpurchase?Off course, ‘Maruti’ being an Indian brand…makes me to trust my country ownedbrand. India manufactures and sells quality cars and is also technically efficient. So Ican easily relate car brands from India to quality and technically efficient ones. 99 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • How do you perceive local brands (such as Tata, Maruti etc...)?I feel local brands in India can be trusted although there is a presence of numerousglobal brands on the roads. Local brands are equally good in quality. Local brands areto be trusted.How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)?Global brands….well I don’t fancy global brands much….but I have seen peoplefancy global brands due its ‘globalness’ itself…And being in India, I feel that localbrands compete equally with global brands in all means…..I mean the quality andtechnical aspects….I don’t mean that I neglect global brands…but just feel safe withlocal brands…..If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?Ha ha ha…a good question……but my answer is simple…I would just choose localbrand…..What would be the main reason behind choosing it?A local brand mainly because I feel safe and I trust them…I also have the feel that itis my own country brand, saying an ‘Indian car brand’.If in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why?Again my answer would be local brands….good in quality, trust and above all a senseof nationality. Even though prestige is needed in life…..global car brands wouldn’tmake any difference…possessing a good local car brand also signifies status to me.... 100 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • If in case the price of the global brand was cheaper than the local brand, whichbrand would you choose? Why?Seems a bit tricky to answer…I would first compare the prices….if the local brandsare slightly expensive than global brands, then I would definitely buy only the localbrand….just because of trust…But if the price of the local brand is going to be veryexpensive….then I would consider in buying global brand…..despite this, I alwaysfeel local brands are better due to the factors that I have already mentioned…..Thank you!! 101 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.2 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: SathishAge: 35What brand is your car? Ford IkonWhat is the reason for buying this brand?Simply because it’s Ford…a good brand with good reputation.Do you know the brand origin of your car? Yes No b. If yes, what makes you attached to the country (of the brand origin)? Ya….I do know the country from which the brand came into. But I don’t tend to relate it to the country…I just see it as a global brand. So, there is nothing that I feel attached to the country. 102 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • What comes to your mind immediately, the moment you think of your carbrand?Its reputation as a brand that has a world wide presence and its quality….I saidreputation because; many people all over the world fancy the brand….As a worldwidebrand, Ford stands for its quality.What factors (such as quality, value, esteem, status, globalness per se) influencedyou to buy this brand?I would first tell its word wide presence….ya its globalness as you said…then comesstatus and quality…Ford brand is really good. All these factors add value to the carand eventually made me to buy this brand.What basic factors are significant to you, in generally choosing a car brand?Quality and then reputation…..both are important to me when choosing a car brand.Well, I should also add foreign make….I like them a lot. Foreign brands give me fullsatisfaction……Do you think that Country of Origin of your brand has a direct influence in yourpurchase?No not at all….because, I don’t feel that it is American and I didn’t buy because itsorigin is America. But when I think of Ford…it is just the foreign make. So I think itis a kind of indirect influence that has made me buy the brand….How do you perceive local brands (such as Tata, Maruti, etc...)?They are good brands…. (In what way is it good?) Good in quality and less expensivethan foreign brands….but I feel that with the presence of large global brands, localbrands seldom stand out of the crowd…….How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)? They are excellent in quality, and the designs of these cars are too good…also 103 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • technically efficient. People always give a second look on foreign cars (global ones).Thus it is of great prestige in possessing global brands. I feel privileged when I travelin Ford…..feel good having Ford, a foreign brand.If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?I would choose global brand... I have a craze for global brands... and especiallycars…..local brands are also good but with the choice of global brands, I woulddefinitely select global brands…What would be the main reason behind choosing it?The reason for choosing global brands is because of its exhaustive quality and theprestige of having a global brand and nothing else. I feel that a foreign brand givesextra value in the purchase of a car brand…If in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why?I would definitely go for global brand…although quality and trust are important forchoosing a car brand, I perceive global brands to be equally good…and off course,prestige is also important for me…..I think a global brand that is perceived to be goodin prestige, would also be good in quality.If in case the price of the local brand was cheaper than the global brand, whichbrand would you choose? Why?I will choose the global brand.....as I have already said that I really admire and alsothey are appealing than local brands….I wouldn’t mind to spend extra cost for buyinga global brand….even if they are going to be really higher than the local 104 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • brands…because they would give me the extra benefits for which I am going tospend….the extra benefits are the quality, worthiness, attractive…. Thank you!! 105 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.3 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: NapoleonAge: 51What brand is your car?Tata SafariWhat is the reason for buying this brand?It is a good brand and Tata is a well known brand in the whole of India….I trust thebrand…because it is efficient in quality…Do you know the brand origin of your car? (the country from which the brandtook its origin from) Yes No c. If yes, what makes you attached to the country (of the brand origin)? Yes, it is an Indian make…but, there is nothing that makes me attached to the country. It is only the brand’s reputation in India. 106 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • What comes to your mind immediately, the moment you think of your carbrand?Trust and quality are the ones that come to my mind, when I think of my carbrand…Most of the people in India are aware that ‘Tata’ brand stands for trust…..andeven I can think of trust when I see my car brand…the trust that the company createsand the brand also…What factors (such as quality, value, esteem, status, globalness itself) influencedyou to buy this brand?I would first tell, quality…the quality lasts longer…it is also good value formoney…and not to forget the trust, that the brand creates. The ‘Tata’ branded cars areworth buying…..theses were the factors that led me to buy this brand.What basic factors are significant to you, in generally choosing a car brand?I would look into the brand name and the quality of the brand. The reputation of thebrand is also important to me…..i.e., the brand should be well established so that itcan be trusted. These are the basic factors that I would look in to.Do you think that Country of Origin of your brand has a direct influence in yourpurchase? (the country from which the brand came from)No, I don’t think that country from which the brand came from, has a direct influencein my purchase…because I only see the brand name as being ‘Tata’ and its reputationin India….Might have an indirect influence, being an Indian brand…How do you perceive local brands (such as Tata, Maruti, etc...)?The local brands in India are very good in terms of value and quality…they aretechnically good and also have good models of cars….lots of new models are alsobeing rapidly launched…local brands have cars that meets the low-end consumers andthe high end consumers in terms of income. Local brands are really good. 107 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)?Global brands are actually better than local brands in quality….these brands areknown for its luxury and are posh on Indian roads...but most of these brands don’thave presence all over the country….they are just present in the metropolitancities…..they are also expensive than local brands…If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?I would choose the local brand….in my view; local brands are good in IndiaWhat would be the main reason behind choosing it?The main reason for choosing it is because of its quality and the trust I have on Indianbrands…..today, India is performing well in automobile sector and the local brandshave country wide presence and this makes me easily trust the local brands inIndia…the cars are also technically good and lasts longer….very durable….they areworth buying and are reasonable in price.If in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why?I would again choose local brand…if the local brand is going to be perceived good inquality and in trust….I wouldn’t give me an alternative to choose from…prestige isnot important for me….I will not think of prestige or status in choosing a carbrand….just to add one more point to the answer, I would tell that local brands inIndia are also prestigious…..the new models being introduced by Indian companies 108 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • itself shows this…they are good in luxury and convey status and prestige…Although,prestige and status are not important to me…If in case the price of the global brand was cheaper than the local brand, whichbrand would you choose? Why?I will choose local brand…it is just the trust and quality. Thank you for your time!! 109 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.4 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: ArumugasamyAge: 60What brand is your car?Hyundai SantroWhat is the reason for buying this brand?The brand ‘Hyundai’ is a very well established brand….and especially HyundaiSantro…..the brand has good fame...it is also a foreign brand!! Above all, the brand iswell known….Do you know the brand origin of your car? (the country from which the brandtook its origin from) Yes No d. If yes, what makes you attached to the country (of the brand origin)? Yes, it is a Korean make…Generally, Korean makes are excellent…They are technically good and they are durable in best in quality… 110 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • What comes to your mind immediately, the moment you think of your carbrand?It is a Korean make….a brand from Korea that has world wide reputation and has gotgood fame….. The brand that is well known for its technical expertise…What factors (such as quality, value, esteem, status, globalness itself) influencedyou to buy this brand?Hmmm...Factors such as quality and good reputation have influenced me to buy thisbrand….It is also the brand name, ‘Hyundai’ that influenced my purchase…because itis a very good make….What basic factors are significant to you, in generally choosing a car brand?Quality would be the major factor…The brand name and its make would also besignificant to me….Brand name and the make are very important because this wouldhelp in judging the quality.Do you think that Country of Origin of your brand has a direct influence in yourpurchase? (the country from which the brand came from)Yes, the place from where the brand came into existence has a direct influence in mypurchase…. I feel that Korean products in general are good for it quality technicalexpertise…they are very tough and sturdy….Korea is always famous for its technicalproducts and equipments…..How do you perceive local brands (such as Tata, Maruti, etc...)?Local brands in India have good reputation and can always be trusted… as the brandsare well established for years, they can be trusted easily without giving a secondthought….and a brand such as ‘Tata’ can be trusted as the brand stands for itstrust….Local brands in India are good… and are also affordable than the foreignbrands… 111 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)?Global brands convey its presence everywhere in the world…people all over theworld can recognize the brand name…foreign makes that have worldwide presenceare best in quality but expensive to afford it……it is luxurious to possess a globalbrand in a country like India…If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?I would buy a global brand….such as Hyundai….or a Ford…..because of its fame asglobal brand and its presence all over the world…What would be the main reason behind choosing it?Global brands has good reputation all over the world…It makes me trust the brand,just because it is a Korean make or a American make….and the quality that comes tomy mind because of being a foreign make…I will have a feel of satisfaction that Ihave foreign brand….a ‘worldwide’ brand….If in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why? If the local brand is to be very good in quality and trust, then I would go for it…..Even if it is going to be the global brand, I would just seek quality, trust, and its reputation and not prestige…..even if I am about to select a global brand, I wouldn’t go for it due to its prestige….but due to its world wide presence and reputation….If in case the price of the local brand was cheaper than the global brand, whichbrand would you choose? Why? 112 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • I will choose the global bland even if the price is going to be significantly higher thanthe local brand….I wouldn’t mind spending extra costs in getting the globalbrand….as it is going to give me extra quality and the trust due to its worldwidepresence… Money doesn’t really matter, only quality and trust that matters inselecting a car brand. Although local brands are good in both, global brands are stillbetter than that…. Thank you for your time!! 113 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.5 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: SurendhranAge: 33What brand is your car? Skoda OctaviaWhat is the reason for buying this brand?Skoda was my dream car that I wished to buy from a very long time…the foreignmake is also one of the reasons for buying it….also because it is a luxury car in thecar industry.Do you know the brand origin of your car? (the country from which the brandtook its origin from) Yes No e. If yes, what makes you attached to the country (of the brand origin)? Yes, I just know that it is a European make….It is known for its well built cars with powerful engines….Europe is generally superior in manufacturing cars that are robust… 114 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • What comes to your mind immediately, the moment you think of your carbrand? Its elegance…..and comfortness are the initial ones that come to my mind immediately… Skoda cars also stand for their powerful engines and luxury interiors….What factors (such as quality, value, esteem, status, globalness itself) influencedyou to buy this brand?I would just tell esteem and globalness, which made me buy the brand... also becauseof the foreign make and international presence that would boost up the reason…Skodais good in quality as well….but ‘esteem’ in possessing the car and ‘foreignness’ of thebrand were the major influencers that backed up my purchase……What basic factors are significant to you, in generally choosing a car brand?Durability of cars of the brand and also the reputation it has among public areimportant for me in choosing a brand…If it is a global brand, my perception of qualitywould be higher…it is because most of the global brands like Ford, Mercedes in Indiahave very good reputation…..Do you think that Country of Origin of your brand has a direct influence in yourpurchase? (the country from which the brand came from)Yes I do feel that country of origin of the brand has a direct influence in my purchase,just because I felt that the European cars are best for their powerful engines, for itsruggedness and quality…I just relate European countries with its richness in makingcars…..How do you perceive local brands (such as Tata, Maruti, etc...)?Local brand are good too….especially in India…the Indian automobile brands are all-over the country….and they are also rapidly moving in to foreign countries…and this 115 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • increases the trust towards the brands among the people…..Although the brands aregood and can be trusted….I would still feel global brands are better …in terms ofquality and fame of the brands…How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)? Global brands are fabulous…Skoda, BMW, Mercedes, etc…are excellent in their quality and are very much technically advanced….foreign branded cars are inspiring in their models and designs…and very very sturdy on Indian roads….If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?I will 100% buy a global brand…probably Toyota, which is well reputed Japanesebrand…What would be the main reason behind choosing it? A ‘global brand’, because of its foreignness and worldwide reputation… I would choose a local brand in India, but with the presence of a global brand, I will choose the global brand for sure….as local brands are also good in India, but not as good as the global ones in quality, technical expertise and designsIf in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why? My answer would always be global, yeah…prestige is also significant for me apart from quality and trust…..I feel that it adds value to my personal life….and I am quite sure that if the global brand is to be perceived good in terms of ‘prestige’, then it should be good in its ‘quality’ and ‘trust’. 116 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • If in case the price of the local brand was cheaper than the global brand, whichbrand would you choose? Why? Despite the price of the global brand being higher than the local brand, I would still go for the global brand and will not bother to spend the higher cost in order to possess the foreign brand…the reasons would be due to the features that I have already said above.... Thank you for your time!! 117 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Appendix 2.6 InterviewThis interview is conducted as a part of my MA dissertation. The aim of the researchbeing to understand consumer perception of global brands vs. local brands. Theinterview will assist me to examine your perception towards global brands and localbrands in the Indian car industry. I would be really grateful if you assist me in myresearch by answering the following questions.Name: LambodharanAge: 38What brand is your car?Honda CityWhat is the reason for buying this brand?It is a reputed brand in the automobile industry…It is a Japanese brand…being always best in its quality….Do you know the brand origin of your car? (the country from which the brandtook its origin from) Yes No f. If yes, what makes you attached to the country (of the brand origin)? Ya, as I said, it is from Japan. Japan is known for its technological advancements and advanced engineering manufactures. Japan is especially best for making very very high quality cars… 118 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • What comes to your mind immediately, the moment you think of your carbrand?Its quality and sturdiness….By sturdiness, I mean its ruggedness on the roads due toits quality make… I can also think of the reputation of the brand ‘Honda’….andnothing else other than this…a very strong brand in India...What factors (such as quality, value, esteem, status, globalness itself) influencedyou to buy this brand?I was first influenced by its foreign make…..and then the brand being from Japan,made me to trust its quality…It is trusted and preferred by a large number of people in India itself….People who possessed the brand were satisfied withthe brand and this increased my trust….ya…globalness can also be one of the reasons….as it has presence and being trusted all over the world….What basic factors are significant to you, in generally choosing a car brand?Quality of the make and reputation of the brand among people are most important ones that I rely on before choosing a brand…the reputation of the brand wouldtell me if the brand is good or bad in making cars…Do you think that Country of Origin of your brand has a direct influence in yourpurchase? (the country from which the brand came from)Yes… Only because the brand was a Japanese make, I bought the brand…Japan’sadvanced engineering works and technological advancements in making cars had adirect influence in my purchase…How do you perceive local brands (such as Tata, Maruti, etc...)?According to me, local brands in India are good….they can be trusted. They can betrusted because of well-established brands like Maruti and Tata…They have strong 119 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • reputation in the Indian market…As the brands are made in India, most of the peopletrust the brands and they feel safe buying it…..How do you perceive global brands (such as Ford, BMW, Mercedes, Toyota,etc...)?Global car brands are the best to me…their foreign make would speak itsquality…And I feel that foreign brands are majestic on Indian roads…they stand outamong the local brands….although global car brands don’t suit the Indian roads thatare uneven and rough, they are very comfortable to drive and gives a stress-freedrive…If you were about to buy a second car, and were given a choice of a local bandand a global brand, which would you choose?My choice would definitely be a global car brand….I really fancy them a lot…What would be the main reason behind choosing it?I trust them for their quality and for the service they provide… As global brands, theirpresence across the globe makes me trust the brand even more… their quality of makeis better than the local brandsIf in case the local brand was perceived to be good in terms of “quality” and“trust” and the global brand being perceived to be good in “prestige”, whichbrand would you choose? Why?I would still prefer the global car brand….although prestige is not a necessity forme…I wouldn’t mind buying a global brand that would bring status to me. Because,global car brands are always better than local car brands to me…better in quality andare very comfortable….If in case the price of the local brand was cheaper than the global brand, whichbrand would you choose? Why? 120 Consumer Perception of Global vs. Local Brands: The Indian Car Industry
    • Even an expensive global car brand is worth buying because of its value and longlasting durability. They are reliable in quality and admirable in design andmake…Especially Honda gives me stress-free drives….and extremely well in itsquality make…. Thank you for your time!! 121 Consumer Perception of Global vs. Local Brands: The Indian Car Industry