Recently, a lot of big corporations are pruning their portfolio just to be present with their big global brands. Even if it seems like managing global brands are easy, a lot of companies are facing with problems.
Many global brands are using different names, different logos or different positioning strategies around the globe. Especially in an increasingly global world, consumers’ likelihood of noticing these differences have been dramatically increased. Suprisingly, so far the effects of these differences were ignored by both scholars and practitioners. This study strikes the first match about this topic.
Consumers’ evaluation of the global brands’ attributes, the perception of these differences and likelihood of purchase are investigated in the case of three conditions; global brands with different names, with different logos and with different positioning strategies.
In all conditions, consumers’ evaluation about attributes of brands is changing. In line with previous literature, a high percentage of people perceive the differences as local adaptations. Lastly but most importantly, it is found that likelihood of purchase both in home country and in abroad is decreased in all the cases.
Table of Contents
Chapter 1. Introduction
Chapter 2. Literature Review
2.1. Global Brands and Local Brands
2.1.1. Brands and branding
2.1.2. Types of Brands
2.1.2.1. Global Brands Definition
2.1.2.2. Local Brands Definition
2.1.3. Reasons to choose
2.1.3.1. Reasons to choose global brands
2.1.3.1.1. Company related reasons
2.1.3.1.2. Consumer related reasons
2.1.3.1.2.a. Quality and Price
2.1.3.1.2.b. Prestige
2.1.3.1.2.c. Others
2.1.3.2. Reasons to choose local brands
2.1.3.1.1. Company related reasons
2.1.3.1.2. Consumer related reasons
2.1.3.1.2.a. Trust
2.1.3.1.2.b. Health Value
2.1.3.1.2.c. Others
2.2. Global Brands with Inconsistencies
2.2.1. Globalization
2.2.2. Global Expansion
2.2.3. Brand Inconsistencies
2.2.3.1. Global Brands with different names
2.2.3.2. Global Brands with different logos
2.2.3.3. Global Brands with different positioning strategies
2.3. Hypothesis
Chapter 3. Methodology
3.1. Survey Instrument
3.2. Questionnaire Design
Chapter 4. Data Analysis
4.1.Global Brands without inconsistencies
4.2.Global Brands with Different Brand Names
4.3.Global Brands with Different Brand Logos
4.4.Global Brands with Different Brand Positioning Strategies Regardless of the specifying the strategy
4.5. Global Brands with Different Brand Positioning Strategies Premium strategy in home country
4.6. Global Brands with Different Brand Positioning Strategies Value for money in home country
Chapter 5. Discussion
5.1. Change in consumer evaluation
5.2. Perception of the difference
5.3. Change in likelihood of purchase
Chapter 6. Conclusion
Chapter 7. Limitation and Future Directions
Research Objective and Core Themes
This research investigates how inconsistencies in global brands—specifically regarding brand names, logos, and positioning strategies—affect consumer perceptions and purchase likelihood in an increasingly interconnected world. The central research question explores whether these inconsistencies alter consumer evaluations of brand attributes and if they are interpreted as intentional local adaptations or perceived as distinct, potentially lower-quality products.
- Impact of brand name inconsistencies on perceived brand globalness and purchase intent.
- Influence of logo variations on consumer evaluation and brand trust.
- Effects of divergent positioning strategies (premium vs. value-for-money) across different markets.
- Consumer interpretation of brand inconsistencies as local adaptations versus distinct product offerings.
- The relationship between consumer mobility and sensitivity to global brand inconsistencies.
Excerpt from the Book
2.2.3. Brand Inconsistencies
As far as the branding literature concerns, brand management needs to have a standardized strategy and consistent execution which includes a consistent brand name, symbol and positioning strategies (Keller 2008). Brands needs to be consistent over time and across space (Keller, 2008 ; Aaker,1996).
Consistency is especially important when the consumers are more mobile or where media transfers images amongst different countries (Keller, 2008).
The advantages to have brand consistency are gathering the highest brand awareness and the strongest associations (Keller 2008). Moreover, consistency in brand execution decrease the time for processing and increase the brand credibility (Lee et al. 2007). On the other hand, researches also indicate that inconsistency in brand identity might create the discomfort and disturbance (Penitone, 1966).
Nevertheless, having a fully standardized consistent global brand is extremely hard and only a few companies are successful enough to have this full standardization such as Coca Cola and Marlboro. It might be said that many brands are not able to have standardization in their brand elements. (Nilson, 1998)
Summary of Chapters
Chapter 1. Introduction: Outlines the research background regarding brand competition, global strategy, and the motivation behind investigating the impact of inconsistencies in global brands on consumer perceptions.
Chapter 2. Literature Review: Synthesizes academic theories concerning branding, types of brands, reasons for choosing global versus local brands, and the challenges of maintaining brand consistency in global expansion.
Chapter 3. Methodology: Details the quantitative research approach, specifically the use of six online surveys conducted via Qualtrics to gather consumer data across various scenarios of brand inconsistency.
Chapter 4. Data Analysis: Presents the statistical findings from the surveys, including demographic data, participants' behaviors, and the impact of name, logo, and positioning variations on brand attributes and purchase intent.
Chapter 5. Discussion: Evaluates the hypotheses in light of the gathered data, analyzing how consumer evaluations change under different inconsistency conditions and how these differences are perceived as local adaptations.
Chapter 6. Conclusion: Summarizes the study's findings, highlighting that while some inconsistencies are tolerated as local adaptations, they generally negatively affect purchase likelihood and brand attribute perception, requiring managerial caution.
Chapter 7. Limitation and Future Directions: Discusses constraints such as sample size and profile homogeneity, suggesting future research should incorporate broader, more diverse populations and offline methodologies.
Keywords
Global Brands, Local Brands, Brand Inconsistencies, Brand Positioning, Consumer Perception, Brand Equity, Market Standardization, Purchase Likelihood, Brand Strategy, International Marketing, Brand Names, Brand Logos, Consumer Behavior, Global Expansion, Market Adaptations.
Frequently Asked Questions
What is the primary focus of this research?
This research focuses on how global brands manage inconsistencies across different international markets—specifically regarding their names, logos, and positioning strategies—and how these discrepancies influence consumer attitudes and purchasing behavior.
What are the key themes addressed in the study?
The core themes include the definition and evolution of global vs. local brands, the strategic motivations for global expansion, the necessity of brand consistency in a mobile world, and the psychological impact of brand inconsistencies on consumers.
What is the central research question?
The study examines how consumers react when they notice differences in a global brand across countries: specifically, does the brand's perceived value change, and do consumers view these inconsistencies as intentional local adaptations or as evidence of product variation?
Which methodology was employed?
The author utilized a quantitative methodology, conducting six distinct online surveys to test various hypotheses regarding brand name, logo, and positioning inconsistencies, with data analyzed using SPSS for descriptive statistics and correlation testing.
What is covered in the main body of the paper?
The main body covers the theoretical background of branding (Literature Review), the methodology, detailed data analysis of the surveys, and a discussion of how these findings confirm or challenge the study's initial hypotheses.
How would you characterize the primary keywords of this study?
The key concepts revolve around Global Brand Strategy, Consumer Perception, Brand Inconsistency, and Purchase Likelihood, reflecting the study's focus on the tension between global standardization and local market adaptation.
What does the study conclude regarding brand names?
The study finds that while name changes may be accepted as local adaptations, they still tend to decrease the likelihood of purchase compared to a fully standardized brand, although the impact is often less severe than other types of inconsistencies.
How do consumers perceive differences in positioning strategies?
Positioning differences—such as a brand being sold as a premium product in one country and a budget product in another—are perceived as the most disruptive, creating significant doubt about product quality and significantly hurting purchase intent.
- Citation du texte
- Tugba Deniz (Auteur), 2015, Inconsistencies in global brands and their affect on consumers' perceptions, Munich, GRIN Verlag, https://www.grin.com/document/304776
