Why do consumers choose one brand over the other?
posted on 30th Nov 2018
A successful brand is a good indicator that the product or service delivers customer satisfaction. Consumers are generally risk averse and do not want to waste their money on a disappointing beer or lifeless flat screen. There is also an implicit understanding successful brands will not want to disappoint their customers and destroy their value.
Brand loyalty is positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor’s actions or changes in the environment. Car ownership is a great example of this. I know many people who have stayed loyal to one car brand for decades and never consider changing.
Many consumers just can’t see past the product or service most familiar to them. The Irish love affair with a particular brand of stout is a good example of this. My guess that this is more to do with having an automatic answer ready to the question “pint?” than a deep down desire for this particular tipple. Thankfully we have become adventurous with how we spend our hard earned money and no longer wish to shovel it blindly into the coffers of a large multinational.
Sometimes people choose a brand because they are of the opinion or hope that it will enhance their status. Nike Air Max was a high-status shoe for kids in the early 90s. There was always envy and buzz when somebody would turn up in the latest edition – it wasn’t just the air cushion that made the kids stand a little taller. The reverse also applies to brands with low prestige. I remember an unfortunate classmate being mocked mercilessly for been driven to school by his parents in a Lada. My guess is he had a strong say in what car was chosen next.
Rob Madigan FCA CTC BCOMM, Financial Controller
Rob, a chartered accountant, is the FC for Neworld, a creative branding agency with over 30 years’ experience developing brands to position them for future growth. He has worked with Neworld since September 2008 and guided the company through interesting waters. Rob admires greatly his colleagues’ creativity, energy, and enthusiasm for their work and is happy to be a little part of the show. He previously worked in accountancy with PWC and Madigan + Co and in hedge fund administration with Citco Fund Services Dublin.