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All of us use money to buy what we need in this world. We do our shopping in various places. Sometimes we are satisfied with what we buy. Occasionally we don’t get our money’s worth, which causes us to feel cheated. To avoid being cheated, some consumers prefer to buy brand names.
There are several reasons why consumers are more likely to buy brand names rather than their generic counterparts. Firstly, brand name companies have invested a lot of money and work in advertising, market research and making sure that their product meets the needs of the consumers. Sometimes brand names tend to create a new genre of product lines, for many different age groups especially youngsters.
Brand development is a dual function of market analysis and product research. Marketing firms, goes into a mode which enables the company to launch a new product, a “brand” which then goes through a thorough analysis of the consumer needs, then to the drawing boards to see if it can package all the attributes into the best possible and acceptable price range for the consumers. This is called “value engineering”.
A further basis of price setting is on the amount that the marketing firm would sell. This allows it to make an appropriate budget allocation, based on the fact it was already a successful firm in the past or on the basis that it can capitalize on the market and raise sufficient funds to get to the consumer’s moods and minds. There is no doubt that some of the firms fail to raise sufficient funds, which causes some good products or ideas to meet dust! In general terms this is like Charles Darwin’s theory of organic life’s evolution, which was “survival of the fittest”.
Media plays an influential role in the consumers’ selection of product. Television commercials, magazine advertisements and such vitalize the minds of the consumers. What is laid in front of the consumer’s eyes is easier to digest that what isn’t. An example of comparison can be taken between companies like Nike, Adidas and Fila to Reebok, Brooks and such – to be naming a few. Brand names are all around us. Malls are packed with stores selling brand name clothing. For example – we can take a brand name shoe has put in much effort in designing the footwear, besides having laid out a reasonable budget to promote the end result. The consumer is more aware of the product because of the effective advertising whereas the company creating the generic counterpart has put in a low budget for production and hardly any for advertising. The consumer is left uninformed and therefore goes for the brand name.
Consumers look towards brand names because brand name companies often give guarantees, warrantees, and good services to the consumers. The consumers have more trust on the brand names products because the company is standing behind their products. Therefore the consumer is brought to a peace of mind and will obviously go for the brand name, even if their prices are higher than that of a generic counterpart.
Consumers have a perception of expensive items being qualified to sustain longer and have better quality than generic items. In some cases this is true. Medicinal drugs can be bought from a company selling it at 3 times the value or a company selling it at the appropriate price. One is a brand name, the other a generic counterpart. Both have the same ingredients and are of the same quality. The only difference is the label.
Another most valid reason is peer pressure and influence. Most common in teens, the motivation of becoming “trendy”, “popular” and part of the “in-crowd” has spurred then to turn towards brand labels. We wear clothes to project an image of what we thing we are or represent. Some of us seem to think that it is easier to blend in with the rest of the population and be part of a group. Since everyone in the group dresses the same way, and wear labels, most of us would not have the guts to wear anything outside that assumed social standing.
In the end, you being the consumer get to choose from your options – the brand name or the generic counterpart. It is your decision; after all it is your money. The quality, guarantee, and degree of effectiveness of the product lies in the way you persuade it. When a consumer is faced with multiple numbers of choices, the only option is to find out product attributes of each of the choices. If he went through let us say, 20 alternatives, he might find that the 19th meets his needs – both in the present and possible when his adaptation to the same product grows. This – trying to go over each of these optional products would take a fair bit of analysis, which of course would entail time. None of us in our daily routine have that much of patience and definitely not the time. In this situation, a normal consumer turns to well-advertised products (“brands”), which have perceived benefits, and mostly a responsible company. Ultimately, who wins in the feverish competitive market? Customarily, it’s the brand names. Admit it…you’ve dreamt about those Nike shoes, Parasuco jeans and that sexy Buffalo top more than once, under the lights of the stars.
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