We live in a world of brand names and registered trademarks. Each day we are confronted with dozens, if not hundreds, of products that have become household names: Coca Cola, IBM, Nike, just to name a few.
Companies jealously guard their branded products, spending vast sums to create, promote, and differentiate them. And many consumers respond to brands through a variety of complex behaviors, even identifying with some in a personal way (“I’m a Mac person”).
The concept of branding originated in the U.S. in the 19th century, but it has become firmly rooted throughout the developed world and is also a growing presence in emerging international markets, particularly in the budding global youth culture of the former Soviet bloc. As in the West, young urban consumers in Eastern Europe and Russia drive brand growth and awareness.
But what core meanings are attached to branded products, and are these meanings cross-national? What qualities or values does the global youth segment associate with brands? Are branded products better or more trusted than unbranded products? And do young consumers in Eastern Europe and Russia relate to brands in the same ways as their Western counterparts?
To answer these questions, UConn marketing professor Robin Coulter, working with professors Yuliya Strizhakova of Rutgers University and Linda Price of the University of Arizona, developed a scale to measure four dimensions of branded products: quality, values, personal identity, and traditions.
The researchers focused on college-educated consumers, aged 18 to 29, from the U.S., Ukraine, Romania, and Russia. They chose this age group for its high degree of homogeneity, which previous research indicated spans national and cultural boundaries. In fact, members of this group, as a global market segment, appear to have more in common with each other, identifying with similar symbols and sharing aligned interests, than with their older countrymen.
Using a combination of in-depth interviews, extant data, and surveys, Coulter and her team explored the complex reactions that these young consumers had to branded products generally, and to a variety of durable (automobiles and electronics) and non-durable (soft drinks and personal care) products. The results revealed striking cross-national similarities.
For each national group, quality was the most important meaning associated with a branded product. This is perhaps not surprising, because many internationally branded products have stressed quality and dependability as key selling points (“Quality is Our Most Important Product” – GE; “Quality is Job 1” – Ford). Coulter’s research confirms that the global youth segment perceives quality as a key component of brand-name products.
In terms of how branded products help reinforce a sense of personal identity, the results revealed interesting differences between the U.S. and the other national groups. In particular, branding as a signal of self-identity, status, and group identity was more pronounced in the U.S. This is likely a consequence of more firms in the U.S. promoting the image of branded products, and a greater incidence of consumer groups – such as Mac users – affiliated with particular brands. As firms in the developing countries begin to implement marketing campaigns focusing on personal identity issues, we are likely to see consumers in these countries giving greater importance to this dimension of branded products.
The survey results related to “values” suggest different interpretations across countries. In the U.S., consumers related values to socially responsible actions, whereas in developing countries, value is linked to quality and price perceptions. Coulter and her colleagues suggest the need for additional research to more systematically examine the various values associated with branded products.
The researchers found that “tradition” was the least important meaning of branded products. Coulter and her associates speculate that the low level of importance assigned to this category could signal that the global youth market, rather than follow established traditions, may prefer to break with them. It also suggests that consumers in developing countries have not had the time to establish ongoing traditions associated with specific brands.
This study by Coulter and her team provides evidence that brand awareness spans cultural and national boundaries, and is a powerful determinant in consumer behavior among the global youth market. The results of the research can be invaluable for multinational firms seeking to design effective marketing campaigns aimed at young consumers in both developed and developing markets. The scale created for the study will be a useful tool for global marketing managers in developing successful international marketing efforts.