organizational behavior

Topics: Brand, Brand management, Branding Pages: 3 (622 words) Published: June 7, 2014
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...
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