Business History: Global brands


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Global brand: Summary of journals

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Business History: Global brands

  1. 1. Nur Suhaili Ramli University of York, UK Factors Influence Consumer Decision
  2. 2.  Seen as powerful institutions by different type of group.  Great products and services (goods).  Saving costs  Ensuring consistent customer communication.  Perception of consumers according to the following factors:  Culture  Sustainability  Quality Signal  Global Myth
  3. 3.  Brand divided by two characteristic:  Tangible  Intangible  The characteristic of a brand due to the following: (1) the critical elements constituting brands; (2) the importance ascribed to either the tangible or intangible elements of the brand; (3) the weights attributed to specific elements within each model; and (4) the extent to which the authors discuss the relationship between the elements. (De Chernatony & Riley, 1998)
  4. 4.  Culture is created and preserved mainly by communication.  The main point in that conversation is global brands.  Example: famous people promote products of global brands through campaign and advertising which make the brands been talking and spread worldwide – by consumers.  Many consumers are awed that companies have sales greater than the GDPs of small nations, which have a powerful impact on people’s lives like the welfare of communities, nations, and the world itself. Global brands use those attributes as criteria while making purchase decisions. (Holt, Quelch & Taylor, 2004)  Example: Coca-cola, Microsoft, Google, Apple, etc.
  5. 5.  Champions of free trade have encountered that people in other nation want to partake of the great American dream, and global brand like Coca-Cola, McDonald’s and Nike provide access to it.  Anti-American sentiment in many nations was rising because of the Iraq war. Some countries continue buying their product because they only hate the country but not the products.  In Muslim country, some of people may value global brands particularly highly because they represent a way of life that they cherish. However, some may find that the way of life may be under threat from religious fundamentalism.
  6. 6.  People perception about quality for value and technological prowess were tied to the nations from which products originated.  For example, consumers associate “Made in USA” is at certain class compared to the same product made from elsewhere like Nike vs XxX. Other examples such as Japanese and Germany quality of technology, French with well-known cosmetics, Swiss with finest chocolates, Italian with leather and design, etc.  Country of origin is important to customer for a product but in study shows that it is only one-third as strong as the perceptions driven by brand’s “globalness”. (Holt, Quelch & Taylor, 2004)  Example: BMW from Germany, Honda from Japan, L’Oreal from France, Coca-cola from USA, Prada from Italy, etc.
  7. 7.  Consumers look to global brands as symbols of cultural ideals.  Creating global identity that share with like-minded people.  Transnational companies therefore compete not only to offer the highest value products but also to deliver cultural myths with global appeal.  Example, in post-World War II era, companies like Heinz, Colgate, Disney, McDonald’s, and Levi Strauss spun American myths for the rest of the world.  Today’s myth has less to do with the American way of life. No longer are myths created only by lifestyle and luxury brands; myths are now spun by virtually all global brands, in industries as diverse as information technology and oil. (Holt, Quelch & Taylor, 2004)
  8. 8. Main Factors Culture Quality Signal Sustainabilit y Global Myth • While globalness has become a stronger quality signal than nation of origin, consumers still prefer brands that hail from countries that are considered to hav particular expertise • The factors are extended to brand trust, brand equity, brand image, brand loy particular brands or products. Further discussion next slide.
  9. 9.  How Global Brands Compete. Holt, D. B., Quelch, J. A. and Taylor, E. L. (2004). How global brands compete. Harvard business review, 82(9), 68-75.  Modelling the components of the brand(De Chernatony & Riley, 1998)