Global brand: Summary of journals

1. Nur Suhaili Ramli
University of York, UK
Factors Influence Consumer Decision

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.  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.  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.  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.  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.  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. 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.  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)