Brand Perception Determined by People’s Cultural Background

The general public’s manner of life influences how buyers behave

The general public’s manner of life influences how buyers behave. Certain brands are viewed badly by some cultures while positively by others. Different product brands are impacted by these perceptions. The competitive advantage a specific item has in the market may increase or decrease in response to reviews of specific products. This essay seeks to determine how brand perceptions affect people’s cultural backgrounds. Companies seeking a new marketplace to examine the aesthetic brand perception of former competitors to get an idea of whether the product will sell on not. This promotion technique is vital for every company that needs to introduce a new product into a marketplace. Therefore, investigating the implications of the brand perception in different cultures is essential. A narrower research answer questions such as how a brand is perceived by different cultures and how do these opinions affect the position of the product in the competitive market. For further analysis of the subject of discussion, Volvo, a car production company is chosen. The investigation is carried out regarding three different states, the United States of America, Sweden and China. Having gained a side market share, Volvo is selected as the primary variable of the study. The variable is chosen because it has achieved stability in international trade. For this study, a well-known brand in the open consumer market is required. With a widely known item, the researcher will not struggle to get the information they need. It is easy to review a good that is known internationally than that which has a specific marketplace.

Literature Review

The literature review section discusses what other authors state about brand perception based on cultural background attached to people. It reflects on some ideas that have been presented by previous researchers. Literature review points out the vital information that is beneficial to the current study. For this study, seven academic sources are reviewed.

Sharma, 2017

Sharma, (2017) in his article describes that when a buyer continually buys a specific item over time, they become loyal to the good. Brand loyalty relies on the satisfactory levels of a product. When the adequate levels outshine the desires of the customer, the loyalty levels increases. If the desires of the client are more than the satisfying levels, then consumer loyalty will decrease. Sharma (2017) further explains that a user prefers buying the product of the brand to which they are loyal. The consumers have the notion that other items might not meet their needs. In the international trade, the trademark of an item is believed to be cofactor behind consumer’s loyalty. Client devotion could be perceived as the augmentation of consumer loyalty. Manufacturing and service industries use this strategy to ensure they create an unforgettable impression of their products in all the markets where they penetrate.

Jensen, 2007

Jensen (2007) presents that research could examine how easterners, Asian nation, combine reverences of independence into their day-to-day lives and utilization. Such joining would be particularly applicable to the luxury business that has sold the western lifestyle the eastern people. Understanding changes in quality, perhaps, converging to a type of eastern independence, could help adjust conventional showcasing devices or advise the rise of new eastern extravagance brands, for example, Shanghai Tang. Finally, Jensen (2007) highlights that research could lead inside culture concentrates to comprehend the change in collectivist societies and think about, for instance, present day westernized urban settings such as Shanghai with more conventional settings such as Chongqing.

Tong, Su & Yingjiao, 2017

Tong, Su & Yingjiao (2017) explain that culture could be reflected via dialect and communications because these are the primary factors that bring together the perpetual ethnic systems. The world is presented through interpretive schemes and ciphers that are offered by talks among people and the language they use. These two factors control the connotation of cryptograms and objectives for a person. Communication unites people of different cultures. Additionally, when people speak the same language in a region, they are more likely to influence each other on the type of item to purchase. Therefore, in studying the implications of brand perception based on cultural background attached to people, incorporating research on communication and dialect is essential. More so, these dual factors play a significant role in forming the consumers’ discernment, and choices as well as brand remembrance, identification, and encoding of information. However, despite proving that dialect is an essential unifying aspect of culture, it is not a convincing indicator that can explain the various consumer behaviors across cultures. To understand the perception of some cultures on different brands, a researcher needs to be versant with the language and mode of communication of those people (Tong, Su & Yingjiao 2017).

Kavaratzis, & Kalandides, 2015

Kavaratzis, & Kalandides (2015) illustrated that most customer inquiries seem to underscore the significance of family and the impact of gatherings. Numerous cultures have changed in ten years from convention to modernity. These progressions would be reflected in the changing ways of life and utilization, especially for the fashion industry. The items are considered open products where its consumers influence other buyers to protect the brand of the good. Kalandides & Kavaratzis (2015) also state that the traditional perspective of group-oriented impacts is becoming plainly deceptive or befuddling in the commercial centers. Subsequently, the inquiry that requires further research is whether customary esteems still significantly impact young shoppers. In the buyers’ conduct setting, two remarkable Confucian ideas are present, namely face-saving and group congruity that impacts purchasers’ dispositions and practices. The utilization needs to comply with person’s economic well-being. The picture of an item or brand shows economic welfare, and the procurement of a luxury item is viewed as a risky venture. Utilization in Confucianism is looking for results of conventional or representative esteem, for instance, gems and branded items.

Atilgan, Akinci, Aksoy, & Kaynak, 2009

Long-time business strategies venture into creating an impactful brand name and image to develop a long-term position to gain a competitive advantage in the market. Atilgan, Akinci, Aksoy, & Kaynak (2009) illustrate that the various backgrounds of trademarks in a specific culture depend on the people’s perceptions in that locality. An industry that meets its prospects is more likely to maintain and expand its marketplace share. On the other hand, a company that creates a false impression is less likely to remain in the market. A brand picture creates connections with consumer’s surrounding and culture. Publicizing managers must research and master these brand-cultural associations to make effective promotion policies. Atilgan, Akinci, Aksoy, & Kaynak (2009) further illustrate that consumer’s cultural behaviors are influential in determining consumers’ lifestyle and the product choices they make. Additionally, the authors mention that brand value inspires behavioral reaction to product characteristics. Consumer perspectives of trademarks are established on consumer needs. These needs are created by individual values whose importance vary from one nation to another. Atilgan, Akinci, Aksoy, & Kaynak (2009), agree that a single aim of achieving consumers’ functional needs does not assure a permanent competitive advantage on the international market.

Kitchen, Kim, & Scultz, 2008

Kitchen, Kim, & Scultz, (2008), argue that cultural diversities need to be examined and revealed to explore consumers’ attitude and perceptions. To identify the cultural group of some consumer, researchers use racial, ethnic and religious factors. Therefore, culture can also be related to psychosocial-social distance. Authors reveal that the diversity and cultural organizations influence the perception of a produce. Kitchen, Kim, & Scultz, (2008) show that a group of people speaking the same language influences each other in selecting items. For instance, some goods are more common in a particular region than others. Additionally, in supermarkets, some things are sold more than others. In the supermarkets, similar products are situated on the same shelves or near each other. However, if a specific trademark is preferred, the customers will opt for the familiar brand.

Jansson, 2013

Jansson (2013) also explains that multinational industries have to take a keen look at the differences between consumer behavior and diversities to create a stronger share in the market and maintain their competitive advantages in the current market. Jansson (2013) emphasizes that the companies have to invest in spreading their brand to the different nations for different cultures to taste and feel their goods to create a new marketplace in other countries. During the first trial they might make loses because the consumers would prefer the trademark they are loyal to. However, over time, consumer’s behavior changes. With the right approach, the consumers might start embracing the new things and end up being loyal to the brand.

Volvo

Volvo is a standout amongst the most distinct and well-known image of Swedish motor designing industry. After the current world monetary emergency, Geely Holding Group, a Chinese-based company took over the ownership of Volvo Cars. The inquiry is whether the obtaining has influenced the picture of the brand and if so what is the character of this impact. This paper gives an understanding of the circumstances and endeavors to respond to this inquiry. It distinguishes the inclinations and presents a case of what changes in the brand picture of Volvo have just happened and what can be normal (Jansson, 2013). To remain relevant in the modern marketplaces, producers need to be keen on the traditions, and people’s lifestyle.

Hypothesis and Research Questions

This research paper is built on the notion that culture influence the brand perception by different people. The paper seeks to understand if culture contributes to the widespread of a specific brand in a market. This research aims to identify the perception of Volvo by people in Sweden, U.S.A, and China have. The paper also points at determining the influence of culture on brand products.

Methods

Quantitative research is ordinarily used to investigate purchaser brands and item discernments. Jansson (2013) depicts personal research strategies as generally unstructured estimation approaches that allow a scope of conceivable purchaser reactions. The best approach to profile mark affiliations is to send out questionnaires to obtain the information suitable for the topic of discussion. By utilizing open affiliation undertakings advertisers have possessed the capacity to recognize the scope of fluctuating affiliations in the psyche of the buyers, and also they have owned the ability to reveal the quality, positivity, distinctiveness of brand affiliations. Trademarks that customers first interacted with leave vivid impressions on them compared to the other competitive brands that come into the market later. Also, the examination of relationship with focused brands can uncover a considerable measure of the brand’s uniqueness (Jansson 2013). Likewise, the positivity of labels can be evoked by relying on how clients express their affiliations through the questionnaires that are sent out. Understanding the feelings and perceptions of a customer is essential to marketing directors because with that information they can make knowledgeable decisions when setting marketing strategies.

The questionnaire guide is isolated into six unique questions. The initial inquiry begins with a permitted affiliation errand where the examinees are asked what initially ran through their minds while reviewing Volvo’s name (Jansson 2013). The second inquiry is centered around revealing respondents’ image cognizance. Subsequently, inquiries were made to get information about the history, place of origin, images related to the brand and supports. The third survey secures queries planned to reveal the answerers’ recognition of the trademark. The examinees are requested to portray their primary experience with the brand. The fourth fragment aims at exposing what the clients think of the Volvo trademark. Having points of view from different groups within the same locality gives a superior understanding of how the brand is utilized by the multiple subjects. The fifth sector aims at revealing the plausible feelings appended to Volvo. The respondents are in this manner solicited to portray the experiences they had after driving a Volvo car. The sixth portion is centered around trademark identity. The examinees are requested to contemplate of Volvo as an individual and credit the brand identity attributes (Jansson 2013). The questionnaire is short and precise. Each question has enough space for the answerers to elaborate their views. The inquiries were both close and open ended.

A total of three hundred questionnaires were sent out to find the necessary information. The poll was administered through different methods because the target nations were in various localities. It was expected that a total of one hundred Volvo car drivers would be reached in each country. Firstly, to the target group in Sweden, which was within reach, the questionnaire was administered in person to some of the identified Volvo drivers who accepted to take part in the study. Nonetheless, to obtain the required data, some Volvo motorists, were called and asked questions in person. The telephone call sessions were recorded and transcribed into written responses. Nevertheless, for respondents in China and U.S.A, the inquiries were sent to a few selected users of Volvo cars via their emails. The Volvo users taking part in the study were requested to reply to the email by truthfully answering the questions addressed. The people taking part in the study were asked to send in their responses after two weeks. The physically distributed papers were also collected at the same time. For timely responses, the study groups in China and the USA were sent a reminder email to ask them to take some time and respond to the email.

The use of questionnaires is the most preferred method to obtain the information required in this research because it is cheaper since the study groups are situated in different states. Therefore, it will be expensive to select methods such as interviews and observation that require the researcher to travel. On the contrary, using questionnaires also has some disadvantages. Firstly, not all reached people responded to the survey. Some of the responses were not timely. Since the questions were not administered through eye-to-eye interaction, the researcher was not able to identify genuine and false responses. After the two weeks, the results were combined, analyzed and presented for discussion.

Conclusion

The fundamental goal of this examination was to research how the picture of an international brand, specifically Volvo, is seen crosswise over three state societies. From the responses collected, the findings from examinees in Sweden and U.S.A portray definite similarities in their perception and understanding of Volvo. On the contrary, reports from China indicate that the Chinese who took part in the market research hold different opinions from the Swedish and American examinees. The responses towards Volvo vary across the different selected regions of study. Chinese examinees generalize their reactions to the entire cultural behavior thus it was difficult to single out their personal views. Respondents from Sweden, have interacted more with Volvo thus, showed more positive reviews than the other two regions. Therefore, from analyzing the findings, it is inferred and concluded that brand perception varies with different cultures. The Americans, the Swedish and the Chinese examinees held different views of Volvo. Hence, the research justifies that indeed brand perceptions are different in various cultures. The study gives more insight to multinational companies to look for more data and get a better understanding of what customers prefer before introducing their product in the marketplace. Once the brand promoters have enough information about what fits their target clienteles, they will have fewer challenges in establishing their items the market area. The research highlights that a specific brand with the same features and qualities can be perceived differently by diverse cultures in different regions. Brand perception is affected by a variety of factors such as trust and commitment. The product will constantly sell in the market area because people trust the trademark. The customers believe the product quality will never disappoint them. The trust is built on the reliability of the produce. When a good is forever in constant supply, the customers rely on it. For instance, Volvo has positive reviews in U.S.A and Sweden because the cars are reliable. The automobiles meet the purchaser needs and are trusted because they are an international brand. Therefore, despite Volvo having its disadvantages, the user of the vehicles will continue advocating for these cars because of the trust it has gained in the market.

More so, the quality and social class of a good are essential in shaping the perception of shoppers. The luxury good is known to be items of the elite in the society. For instance, diamond and gold artifacts are associated with billionaires. These objects are expensive because of the gems from which they are made. Therefore, a seller intending to open up a luxurious artifacts shop will most likely seek to rent a store near wealthy estates. If the merchant opens a shop in a region inhabited by people of a lower social class, he will probably make a loss. The less fortunate will prefer to buy cheaper artifacts that they can afford because they believe a person can only afford the expensive gold and diamond items when they have more money than they require.

References

Atilgan, E., Akinci, S., Aksoy, S., & Kaynak., E. (2009). Customer-based brand equity for global brands: a multinational approach. (Journal of Euro marketing).

Jansson, E. (2013). Cross-cultural differences in brand image perception. An exploration of the Volvo brand. Master of communication thesis. University of Gothenburg. Department of applied information technology. Report No. 2013:004. ISSN 165-4769.

Jensen, B. O. (2007). Culture stories: understanding urban branding. (Newspaper Research Journal).

Kavaratzis, M & Kalandides, A. (2015). Rethinking the place brand: the interactive formation of a place brand role of participatory place building. (Environment and Planning A, Journal)

Kitchen J. P., Kim, J., & Scultz, E. D. (2008). Integrated marketing communications practice leads theory. (Journal of Advertising Research). Dec 2008 48 (4) 531-546.

Sharma, R. (2017). Building customer-based brand equity of domestic brands: role of brand equity dimensions. Metamorphosis. (A Journal of Management Research).

Tong, X., Su, J. & Yingjiao, X. (2017). Brand personality and its impact on brand trust and brand commitment an empirical study of luxury fashion brands. (Journal of Broadcasting and Electronic Media).