Indian Car Industry

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Consumer Perception of Global vs. Local
Brands:
The Indian Car Industry

By

Shyamala Mathan Sankar

2006
A Dissertation presented in part consideration for the degree of MA Marketing.

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Consumer Perception of Global vs. Local Brands: The Indian Car Industry

Abstract

Key words: Consumer Perception, Global brands, Local brands, consumer preference, Country-of-origin, foreign brand, globalness, Consumer ethnocentrism.

This study examines consumer perception of global brands vs. local brands in the Indian car industry. Consumer brand perceptions have substantial implications in Marketing. The study explores and understands consumer perceptions of global and local car brands in India by accomplishing the secondary objectives. The secondary objectives were achieved by highlighting the factors that effect consumer preference for global brands; by examining the effects of country of origin on consumer perceptions of global brands and local brands; and by studying the effects of consumer ethnocentrism towards global brands.

For creating a deep understanding of consumers’ insights of global car brands against local car brands, qualitative approach was adopted with an in-depth and semistructured interview process. Interviews as a qualitative tool helped the researcher to uncover individual’s covert feelings and emotions towards perception of global brands vs. local brands.

The findings of the study advised that the consumers who possessed global car brands, preferred their car brands due to factors such as global presence, worldwide reputation, and quality of being a foreign make. Prestige or status had a very little or no influence in their preference for global car brands. Consumers made favorable

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Consumer Perception of Global vs. Local Brands: The Indian Car Industry

perceptions of the country, wherein they tend to associate factors such as superior quality, technical advancements, modernization, etc…to the country from which the brand had taken its origin. Consumers who owned a local car brand evaluated the local brand in a favorable manner, wherein they tend to associate the brand to India’s strong automobile sector that makes quality and technically efficient cars. The study found to have both non-ethnocentric consumers and consumers who were low on CET. Most of the respondents perceive local brands to be good in India, but not as good as the global ones in quality, technical expertise and designs of the cars.

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Consumer Perception of Global vs. Local Brands: The Indian Car Industry

Table of Contents

Abstract……………………………………………………………………………… I List of Figures……………..………………………………………………………..VI List of Tables………………………………………..………………………………VI Dedication………………………………………………………………………….VII Acknowledgement…………...……………………………………………………VIII Chapter One – Introduction………………………………………………………...1 1.1 Introduction……………………………………………………………....1 1.2 Objectives of the study…………………………………………………..2 1.3 Synopsis of Chapters…………………………………………………….2 Chapter Two - Literature Review…………………………………………………..5 2.1 Introduction………………………………………………………………5 2.2 Brands and Branding…………………………………………………......5 2.3 Local Brands and Global Brands…………………………………………8 2.4 Pros and Cons of Local brands and global brands……………………......9 2.5 Shifts from Local Brands to Global Brands……………………………..12 2.6 Basic factors that effect consumer preference for Global Brands….......13 2.7 Consumer Ethnocentrism and evaluation of global brands and local brands by consumers…………………………………………….....17 2.8 Consumer Brand Knowledge………………………………………….....20 2.9 Effects of Country-of-Origin (COO), Culture-of-Brand Origin (COBO) and consumer perception of global brands vs. local brands…...21 2.10 Conclusion………………………………………………………………28 III

Consumer Perception of Global vs. Local Brands: The Indian Car Industry

Chapter Three -Industry Overview……………..………………………………….30 3.1 Introduction…………………………………………………………….30 3.2 Indian automobile industry – an Overview……………………………..30...
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