Global Brand and Local Brand

June 7, 2018 Marketing

Consumers use brands as cues to make decisions to purchase or try products. During the recent years, there has been a great shift from local brands to global brands due to the display Of similar needs and preferences by the consumers. This study aims in analyzing the consumers perception of global brands vs.. Local brands. The research explores and comprehends consumers’ perceptions of global brand vs.. Local brand. Body According to Wolfe (1991 ) local brands are brands that exist in one country or in a limited geographical area. Local brands belong to a local, international, or global firm.

Local brands provide a link between the national economy and individual well-being. Levity (1983) said that global brands as brands that use the same marketing strategy and mix in all target markets. Global brands benefit from the scale and scope of having presence in multiple markets. The authors have defined well global brands and local brands. The researcher agrees with the authors definitions. A global brand is a brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing strategies.

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Kara, Maureen & Kara (2011 ) added that quality is the subjective judgment of consumers towards a reduce or brand superiority and distinction. Perceived quality is important in determining consumer preferences towards global and local brand. A global brand is defined from a consumers perspective as a brand which is believed to be marketed and recognized in multiple countries. In turn, a local brand is produced domestically for a specific national market and usually only obtainable in the particular region.

It is identified that a local brand may be preferred when consumers can identify with others in their communion¶y’ as the local brand is often positioned to understand local needs and culture. On the other hand, Bator et al. 2000) stated that global brands have been perceived to be of higher quality in developed and developing countries. This is due to the fact that global brands are accepted globally and charges a premium price. Consumers also regard global brands as having higher prestige and are preferred essentially because of brand globalizes, in regards to be internationally desirable and demanded.

Additionally, it was found that global brands even appeal to local consumers due to higher perceived quality, status and prestige. The above authors have the same perception of global brands. Global brands are of more quality than local brands. The researcher agrees with these authors. On the contrary, Keller (2003) stated that as far as global brand is concerned, perceived brand globalizes is normally associated to brand quality and prestige, higher esteem, having the ability of enhancing the consumers self-image as being cosmopolitan, sophisticated and modern.

Consumers consider global brands to be symbols of cultural ideas, using brands to participate in a perceived global identity that they share with other people worldwide. Some of these brands have attained the status of global icons, becoming cultural systems in their own right that speak a universal engage. Schilling et. AH. (2004) added that local brands benefit from strong brand equity and specifically, local brands benefit from higher consumer awareness than international brands do, and they enjoy a strong brand image.

Local brands benefit not only from a good quality image but also from a better value and trust perception that international brands do. Value is linked with the fact that prices of local brands are usually lower than those of international brands, providing consumers a sense of better value for the money. Furthermore, Holt et al. (2003) added that local brands are also received as more down to earth than international brands, meaning that local brands offer a more basic frills brand proposition.

Local brands are perceived as more traditional than international brands, because local brands are linked more to local traditions and local culture than international brands are. Trust is an important advantage for local brands because it provides a unique relationship with consumers that take years to develop. De Mooing (2005) avows that local brands are not more flexible than global brands in terms of their marketing activities when they compete in a foreign product étagère due to cultural categories being associated with the product category.

Just as global brands need to conform to international marketing dictums, local brands sometimes need to conform to deeply held preconceptions about the product category in which they operate. Moreover, Seafarer (2002) added that local brands still hold important advantages, such as long-standing emotional links that represent a critical proximity to consumers’ values, high awareness levels and extensive distribution networks developed through time. The authors have cited some advantages and disadvantages between local brands and global brands.

The power of a brand resides in consumer’s mind and occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable and unique brand associations in memory. The researcher agrees with the advantages and disadvantages cited by the authors. On the researchers point of view, consumers are attracted to international brands but in reality they prefer to purchase local brands. Johannes & Romaine (2004) stated themselves presence Of Global brands is fuelled by the increasing similarity that consumers display in their consumption habits and preferences.

It has also been argued that Global brands, are perceived to be more value-added for the consumer, either through better quality or by enhancing the consumers self perception as being cosmopolitan, sophisticated and modern. Consumers throughout the world are becoming increasingly sophisticated and international brands offer a measure of exclusivity or even eccentricity that are increasingly sought after and valued because such appeals are universal. As the world is shrinking in to a global marketplace, it is increasingly significant to understand the consumers’ perception of global rand’s to local brands.

There is also need to uncover the reasons for consumers’ preference for global brands over local brands. Conclusion With globalization as a presidential force for companies to succeed in the marketplace, it has become increasingly important to understand consumers’ perception and factors that influence their purchasing behavior. The concept of brand globosity and locality is an important source of strategic insight to marketers in the automobile industry. The difference between global and local brand is significant for both high and low status-seeking groups.

Consumers are also attracted to global brands as global brands are perceived to be of higher quality. Like many other developing nations, the perceived quality in global brands is common for developing countries. It is important for local companies to note that although globalization helps large companies they can obtain similar advantages as well through understanding and connecting with consumers. It is highly significant to highlight the studies on foreign brands by researchers as a symbolic acquisition communicative of social distinctions in negotiating status and prestige.


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