Writing Assignment in Lesson 4 of Organizational Behavior
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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 ( 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 ( Yip, 1995). Further, global brands are strategically appealing to a growing segment of consumers around the world with similar tastes and preferences ( 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 ( 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 ( 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. ( Zhang and Khare, 2009). Current research evidence also points that consumers prefer brands with strong local connections ( Zambuni, 1993).
Current literature defines global brands as those that are found in multiple countries with generally similar and coordinated marketing strategies ( Steenkamp et al. , 2003). Local brands on the other hand, are...
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