organizational behavior
Writing Assignment in Lesson 4 of Organizational Behavior
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Introduction
In the face of rapid globalization, both global and local brands often thrive in the current marketplace. Current theories suggest that while globalization is a successful strategy for many big companies; at the same time local companies may also achieve competitive success based on a deeper understanding of the local consumers ([9] Ger, 1999, p. 70). Several key reasons support why companies pursue a global strategy in branding. Manufacturers often pursue global branding strategies for its inherent benefits like economies of scale and scope in R&D, manufacturing and marketing ([29] Yip, 1995). Further, global brands are strategically appealing to a growing segment of consumers around the world with similar tastes and preferences ([11] Hassan and Katsanis, 1994). From a consumer's perspective global brands can be preferred by consumers in order to indicate their membership with certain groups, e.g. global cosmopolitanism ([3] Alden et al. , 1999).
However, there are situations under which consumer may prefer a local brand over a global brand. For example, consumer ethnocentrism (CET) may moderate the role of enhanced appeal of global brands in the market place ([26] Steenkamp et al. , 2003). Further from a consumer's perspective a local brand may be preferred when consumers may identify with people in one's own community, for instance, local traditions and customs, uniqueness of local community, etc. ([33] Zhang and Khare, 2009). Current research evidence also points that consumers prefer brands with strong local connections ([31] Zambuni, 1993).
Current literature defines global brands as those that are found in multiple countries with generally similar and coordinated marketing strategies ([26] Steenkamp et al. , 2003). Local brands on the other hand, are
Full Text
Translate Full text
Turn on search term navigation
Introduction
In the face of rapid globalization, both global and local brands often thrive in the current marketplace. Current theories suggest that while globalization is a successful strategy for many big companies; at the same time local companies may also achieve competitive success based on a deeper understanding of the local consumers ([9] Ger, 1999, p. 70). Several key reasons support why companies pursue a global strategy in branding. Manufacturers often pursue global branding strategies for its inherent benefits like economies of scale and scope in R&D, manufacturing and marketing ([29] Yip, 1995). Further, global brands are strategically appealing to a growing segment of consumers around the world with similar tastes and preferences ([11] Hassan and Katsanis, 1994). From a consumer's perspective global brands can be preferred by consumers in order to indicate their membership with certain groups, e.g. global cosmopolitanism ([3] Alden et al. , 1999).
However, there are situations under which consumer may prefer a local brand over a global brand. For example, consumer ethnocentrism (CET) may moderate the role of enhanced appeal of global brands in the market place ([26] Steenkamp et al. , 2003). Further from a consumer's perspective a local brand may be preferred when consumers may identify with people in one's own community, for instance, local traditions and customs, uniqueness of local community, etc. ([33] Zhang and Khare, 2009). Current research evidence also points that consumers prefer brands with strong local connections ([31] Zambuni, 1993).
Current literature defines global brands as those that are found in multiple countries with generally similar and coordinated marketing strategies ([26] Steenkamp et al. , 2003). Local brands on the other hand, are