Onsumersa perceptions of global and local brands in developing countries within consumersa goods Industry
Recently, brand image become more and more dispersal due to the tremendous progress and remarkable development in the fields of telecommunications, internet, marketing communication, media, along with, the vital role of global marketing strategies that inroads global brands all-over the world and proved a huge globalization; which contributed in shaping consumersa values. Furthermore, the changes of the political scene played a vital role; some regions like Asia, have integrated quickly to the global economy and international trade, but others did not, like some regions in Africa and the Middle East, which are suffering from augmented political instability, poverty and environmental degradation.
There is still inadequate empirical work done on consumer goods global brands and its influence on the developing countries, moreover, the range and intricacy of branding techniques alongside the diversity of brands highlighting the essence of understanding the tastes and buying behaviour of developing countriesa local customers.
Many of the applied concepts are drawn from other disciplines such as finance, marketing, production, sociology. These notions would not be precisely applied similarly when shifted to another discipline. The construct of a?global branda as stated by different scholars and researchers is not related to consumer behaviour or purchasing decision. The earlier focus has been on the multinational company or organisation itself, without purposeful stress on what takes place inside and outside its environment. Thus this dissertation aims to determine the processes and implications involved in the building and management of consumer goods global brands and, more importantly, the interaction between consumer goods global brands and local brands in emerging markets which is absent in existing literatures.
Consumersa brand perception generally influenced by the marketing mix (e.g. pricing, distribution, communications, etc.) the appeal of the overall service, production line, and offers. Besides, a number of external influences affect consumersa perception and purchasing decisions; for instance, social environment directly affects the source of information consumersa use in decision making and product evaluation. Moreover, personal sources such as family and friends may be more credible and influential on consumers than any other source of information. However, the most important social influences are culture, subculture, social class, family, and interpersonal or reference group influence. (Bearden, P, 83, 2001). Accordingly, constancy of consumersa brand perception is needed but simultaneously the brand should be responsive to differences in cultural context (Best 2007). Nevertheless, there are claims criticising global brands for negative implications towards environment, local brands, and labour force in developing countries. Thus, it becomes increasingly important to understand the actual meaning, features, and effective management of a?global branda. One of the most important aspects about global brands that requires thorough examination is the interaction between global brands and local brands in developing countries or emerging markets, or, in particular, the perception of consumers in developing countries of consumer goods global brands versus local brands and how these perceptions influence their purchasing behaviour.
Hence, this study aims to answer the following questions,
1) How Global brands influence consumersa purchasing decisions (quality signal, global myth, or/and social responsibility)
2) Analysing how global brands reach consumers in developing countries and to what extent they trust it.
3) Determining how local customers are familiar with consumer goods global brands and what the first global brand comes to their mind
4) What alternative do customers choose if the desired global or consumer brand is not available in the market
5) How do consumers in developing countries perceive global brands against local brands
6) How consumersa perceptions influence their purchasing decisions, through;
a) Analysing the factors affecting consumersa preference for global brands, like Products & Service Quality, Country of Origin, Culture, and Materialism.
b) Identifying the key discrepancies exists between managerial and consumer expectations of delivering brand satisfaction which leads to the gap in foreign low cost retailer brands.
7) How local consumersa income affects their purchasing decision
After accruing more than 10 yearsa work experience in the marketing field, this research has a great personal interest, since it provides the opportunity to examine the theory in relation to practice of global brands attractiveness against domestic ones in developing countries, from an objective viewpoint. Moreover, the research findings would provide a better understanding of how global brands are perceived in developing countries in relation to domestic ones and will address what influencing consumersa purchasing decisions; which would be of interest to global companies to increase their investments in such a promising region.