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that they had frequently purchased. “Strivers and achievers” were defined mainly by theirspending habits and materialistic values. “Strivers” were very materialistic, immersed in anaggressive pursuit of achievement and made up about 20% of the population. Most of themwanted to change their roles in lives but it is probable that the majority would not achievethis. “Strivers” were impulse buyers and insisted on instant gratification. “Achievers alsovalued achievement and materialism, but they have been more successful than ‘strivers’.They could be described as ‘yuppies’ and were found to be more keen on luxuries that theyconstituted a special sub group: “super-achievers”. They were the first to latch onto newtrends, products and premium brands. Adapters were generally older people who werecomfortable with their accomplishments in life but were still open to new experiences.China and India have over a billion consumers, presenting tempting prospects forinternational companies. The experience of international companies suggests that despitethe attractiveness of these emerging markets, their consumers remain an elusive target. Acommon fallacy lies in the thinking that there are huge margins to be gained fromskimming the 3-5% affluent consumers in emerging markets who have global preferencesfor ‘luxury goods’ and purchasing power. In India Coca – cola came in at the top and triedto trickle down. It launched pricey 350 ml bottles instead of offering cheaper smaller ones.Rather than concentrating on the main towns, it went for the whole of India with a singlesize and price, using expensive and flawed distribution and advertising. Ford and othermotor manufacturers also misjudged the Indian market. They started with medium-sizedcars in a market dominated by small ones, and expected to compete with nearly 70%overcapacity in medium sized car manufacturing. Kellogg’s offered premium priced cerealssupported by expensive marketing. They soon learnt that, although market research showedthat India was the largest cereal-consuming nation on earth, consumers were choosing tobuy Champion’s products costing a fifth price of Kellogg’s. Analysts argue that it isimportant to define the Indian market not by income alone, but by consumption. (Kotler etal, 2004)2.6SummaryConsumer perceptions of Global and Local Brands in the Indian retail Industry 28
The table below summarises the key findings of the authors that are directly related to ourresearch objectives. From this table it also becomes clear how the conceptual model hasbeen developed.Section Author/ Article Key FindingsConsumer Perceptions ofGlobal and Local Brands.Holt et al (2003)“Managing theTransnational Brand: HowGlobal Perceptions DriveValue,” working paper,Harvard Business School.Local brands have strongbrand equity and higherconsumer awareness butglobal brands do have ahigher brand imageDouglas et al (2004) “HowGlobal Brands Compete”,Harvard Business Review(Alden et al, 1999),““Brand Positioningthrough advertising inAsia, North America andEurope: the role of globalconsumer culture”, Journalof Marketing, Vol. 63,pp.75-87.Peterson, R.A. andJolibert, A.J.P (1995), “Ameta-analysis pf countryof-origineffects”, Journalof International BusinessStudies, Vol. 26 (4), pp.883-900Global brands are associatedwith Quality Signal, GlobalMyth and SocialResponsibilityConsumers prefer brandsthat they perceive asoriginating from a nonlocalcountry, especiallyfrom Western countries,more than they do localbrands and that preference islinked not only to perceivedquality but also to socialstatus.Consumers in developingcountries seek to emulatewestern consumptionpractices and lifestyles andpurchase foreign brandsConsumer perceptions of Global and Local Brands in the Indian retail Industry 29
Page 1: “Consumer Perceptions of Global a
Page 6: Chapter OneIntroduction1.1. Introdu
Page 9 and 10: which lead consumers towards global
Page 11 and 12: Antecedents Intermediaries Conseque
Page 16 and 17: etter product and service quality,
Page 18 and 19: design, technical engineering skill
Page 20 and 21: esearchers. They highlighted five d
Page 22 and 23: findings of this study by describin
Page 24 and 25: perceptions, cognitions, evaluation
Page 26 and 27: In today’s increasingly competiti
Page 30 and 31: (Culture)Product QualitySteenkamp e
Page 32 and 33: Javalgi, R., White. D.(2002), “ S
Page 34 and 35: Values Orientations forMaterialism
Page 36 and 37: Semi structured interviews of execu
Page 38 and 39: One the desire to acquire wealth an
Page 40 and 41: only the upper middle classes who r
Page 42 and 43: nature were then grouped together u
Page 44 and 45: 3.9SummaryThis chapter clearly outl
Page 46 and 47: globally...so why pay for local des
Page 48 and 49: consumers which were in relation to
Page 50 and 51: usually called the upper middle and
Page 52 and 53: social identity. Respondents tended
Page 54 and 55: Due to westernisation of consumptio
Page 56 and 57: categories, income strata, etc...Bu
Page 58 and 59: class visits hypermarkets and disco
Page 60 and 61: the US. The fact is it has an appro
Page 62 and 63: think the best opportunities are in
Page 64 and 65: ReferencesAaker, D. (1991), “Usin
Page 66 and 67: Kotler et al, (2004). Marketing Pri
Page 68 and 69: AppendixBackground of RespondentsCo
Page 70 and 71: 6. Do you think that localretailers
Page 72 and 73: A TRANSCRIBED INTERVIEW OF A INDIAN
Page 74 and 75: 7. What do you think is the main di
Page 76 and 77: whole lot of new investors. So even
Page 78:
8. Do the Indian Consumers suffer f
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