The International Globalization Vs Local Brands Fashion Essay


Globalization is an inevitable phenomenon that is taking the full universe towards going one market, a planetary small town. With the universe going a individual market, globalisation has had a major part in enabling the organisations worldwide to step out of the restricted domestic markets and to put up their operations across the Earth with assurance. This has mostly led to a diminution in the importance in national boundary lines and a greater accent on what the consumers really demand ; be the consumers located in the really state in which the organisation exists or an wholly different portion of the universe.

Globalization has had a immense impact on the stigmatization schemes of international companies. Since the early 1990 ‘s many transnational companies, such as Unilever have moved from a multi domestic to a planetary selling attack including planetary stigmatization schemes ( Schuiling and Kapferer 2004 ) . Increased consumer cognition and consciousness have played an of import function towards this globalisation of markets and intensifying the power of planetary trade names such as Pepsi, Apple etc.

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As the competition in planetary sphere addition, organisations find it of import to function international consumers along with local 1s to accomplish competitory advantage. However for some merchandises and services “ the gustatory sensations and penchants of consumers in different states are get downing to meet on some planetary norm ” ( Holt 2002 ) . From a consumer position, nevertheless, reactions to the prevalence of planetary trade names seem to change among the different clients. On the one manus, consumers seem to value and admire planetary trade names and respect such trade names as a position symbol. On the other manus, planetary trade names are frequently criticized for endangering the local differences and taking to a loss of cultural individuality.

Since the tendency of ingestion by our people is altering, people are going more prone to purchasing the international trade names instead than the local 1s. Consumers feel proud in buying imported goods and this has increased the power of international trade names. Apart from merely concentrating on where the merchandise has really been produced, consumers consider assorted other factors when doing buying determinations. It has been noted that consumers are loath to purchase goods made in less developed states as they perceive them to be low in quality. Trade names have besides been perceived as being a position symbol and this thought is most common in immature people.

Literature reappraisal

There have been a figure of researches done on trade names. A definition of a trade name by The American Marketing Association ( AMA ) in the sixtiess ( Keller, 1998 ) is “a name, term, mark, symbol, or design, or a combination of them, intended to place the goods and services of one marketer or group of Sellerss and distinguish them from those of competitors.” Research has proven that consumers use trade names to assist them do determinations about the merchandise they choose ( Ger et al. , 1993 ) .

De Chernatony and McWilliam ( 1989 ) stated that successful trade names, be it domestic or international, will hold some alone proposition that is fulfilling consumer demands. Powerful stigmatization will besides hold a positive impact on consumer franchises. As Kolter et Al. ( 2002 ) suggests that powerful trade names command a strong trade name trueness from their consumers where these consumers perform in a perennial purchasing and disregard alternate trade names that may be at lower monetary values.

Recent researches suggests that influences on foreign merchandise ratings may be well complex, ensuing from an interaction of assorted different factors such as ethnocentrism, monetary value, perceived quality, state of beginning, position, manner consciousness, publicizing runs etc.


Research by Kinra ( 2006 ) states that ethnocentrism, which is a psychological concept which a makes a merchandise more favourable in the heads of the consumers merely because spot is made in their ain state. Ethnocentrism is when consumers think their civilization to be superior to other civilizations ( Summer, ( 1906:13 ) .

Highly ethnocentric persons tend to accept things culturally similar and reject things culturally dissimilar ( Crawford and Lamb, 1981 ; Heslop et al. , 1998 ; Wang and Lamb, 1983 ) . In a survey conducted by Lantz and Loeb ( 1996 ) which focused on the relationship between consumer ethnocentrism and imported/international merchandises, besides found out that consumers who are extremely ethnocentrism have more positive attitudes toward merchandises from states with similar civilizations. Highly Ethnocentric consumers believe that buying local trade names promotes nationalism and they accuse foreign trade names of being a possible menace to state ‘s economic system and employment degree. They besides prefer local trade names because of their better apprehension of local demands.


Quality is a trait which is really difficult to specify, because it is a really subjective term. Perceived quality is the perceptual experience of a consumer about a merchandise ‘s excellence. Research proves that most consumers perceive international trade names to be of higher quality and greater prestigiousness. ( e.g. , Nguyen, Barrett and Miller 2005 ; Steenkamp, Batra and Alden 2003 ) . If a trade name is perceived as globally available, consumers are likely to impute a superior quality to the trade name, since its international credence is seen as a mark of its high quality. ( Han 1989 )

Harmonizing to Iglesias and Guillen ( 2004 ) , consumers pass five stages of purchase procedure and the first stage is that the consumer perceives the merchandise with the consideration of its handiness, quality, monetary value and the selling activities. The consumers will do a comparing between trade names to other options and so do a determination. This will so either leads to the action of purchase or non to buy that certain merchandise from a certain trade name.

State of beginning

he state of beginning will besides hold a deep impact on the consumer penchants. The state of origin consequence has been defined as influences, be it positive or negative, that a merchandise ‘s state of industry may hold on consumers ‘ determination ( Elliott and Cameron, 1994 ) . It is related to different stereotypes which are attached to a state ‘s merchandise by consumers.

Majority of the surveies have supported a strong direct relationship between the “made -in” label and sensed quality of the product.. The findings indicate that consumers hold stereotypic images of certain states and that these images affect their perceptual experiences about the state. These stereotypes vary from state to state. Merchandises from developed and extremely industrialised states are evaluated more positively than merchandises from developing states.

Furthermore, attitudes and perceptual experiences of consumers toward trade names and merchandises will depend on classs, for case, electronic goods from Italy may be perceived as a hapless quality but Italian vesture would be perceive as stylish and high quality ( Bikey and Nes, 1982 ) . This would be otherwise perceived with Nipponese trade names as Nipponese electronic goods would be perceive with positive attitudes and Nipponese vesture will be negatively perceived.

Monetary value

Monetary value is considered one of the most of import factors impacting the consumer perceptual experiences of a trade name or merchandise ( Hansen, 2005 ) . Researchers found out that one time consumers perceive a monetary value difference between local-owned and foreign-owned trade names, monetary value unsimilarities begin to impact their penchant for local-owned trade names. Therefore it is imperative that we test the impact of monetary value against consumer ‘s ethnocentric inclinations to find at what point monetary value becomes more of import to consumers than all the other factors mentioned. Consumers need a mention monetary value as a cue for measuring the monetary value of an ascertained product/service. There are two signifiers of mention monetary value – an internal 1 that resides in consumers ‘ memory ( e.g. past purchase ) and an external 1 that is formed during the buying procedure ( e.g. monetary value comparing between trade names while shopping ) ( Mazumdar and Papatla, 2000 ) . If consumers perceive the local-owned trade name as more expensive than the foreign-owned trade name, but its quality is similar to the foreign-owned trade name, they should prefer the local-owned trade name less because they perceive a higher loss with the local-owned trade name. In other words, the monetary value difference between local-owned and foreign-owned trade names acts as a moderator between perceptual experience of trade name ownership and purchase purpose of local-owned trade names

Social position

Writers have stressed that consumers may prefer planetary trade names because of associations of higher prestigiousness or because the ‘elite ‘ category usage it ( Schuiling & A ; Kapferer, 2004 ; Steenkamp, et. al. , 2003 ) . Global trade names may hold a higher prestigiousness than local trade names due to their comparative scarceness and higher monetary value.

Critical reappraisal of the cardinal literature

In today ‘s universe, consumers are faced with an overpowering sum of trade names available for the same merchandise class. More than 100s trade names, both local and international, may be available for merchandises like apparels, cars etc. When consumers are doing their purchase determinations, they may measure trade names on different factors such as variables like monetary value, quality, and state of beginning, ethnocentrism, and societal position. Price and quality are sometimes perceived to be correlated. A costly merchandise may be perceived of being high in quality and this may be because of such image created by industries through advertisement. Similarly, a planetary trade name may comprehend to be of superior quality as quality is believed to be a requirement for international credence.

Consumers today are progressively cognizant of merchandises made in both developed and developing economic systems. Goods from 3rd universe states may comprehend to be of lower quality criterion. Consumer perceptual experiences and sentiments may besides depend on the merchandise class for e.g. Italian vesture is by and large perceived to be more stylish ( Bikey and Nes, 1982 ) , while cars produced in state like USA may be perceived as of better quality than an Indian manufactured car. However, sometimes consumers believe that local organisations have a competitory border over the foreign rivals as they have a better apprehension of what consumer wants which are shaped by their civilizations. While other loyal consumers believe that purchasing foreign trade names may impede the growing of their local organisations.

Trade names like Apple, Sony, Pepsi have empowered consumers and these trade names are capable of arousing associations and experiencing to an extent that they have now become an of import portion of our lives. Due to increasing equal force per unit area, these foreign trade names have now become a necessity for every immature individual. Wearing Nike places may be considered as stylish and voguish in universities. So the demand to be accepted by a peculiar societal group may oblige immature people to purchase international trade names even when local trade names are available at the same monetary value.

Research Question

Q ) Why do consumers prefer international trade names to local 1s?

Independent variable:

  • Monetary value
  • Quality
  • State of beginning
  • Consumer ethnocentrism
  • Social position

Dependent variable:

  • Consumer penchants

Research methodological analysis

This survey is a descriptive survey and more of a qualitative nature and was conducted to place and measure all the factors considered by consumers that make international trade names more favourable to them. The sample for this research included the 200 consumers whose ages ranged from 16-24 old ages. Convenience sampling was used for this survey.

Questionnaires were used to roll up primary informations. The questionnaire comprised of closed ended inquiries and Likert graduated table is used in most of them. We classified our population harmonizing to gender. Frequency distribution and saloon charts have been used to measure the consequences. In add-on to this, the agencies of different factors that influence consumers ‘ penchants of the local and planetary trade names were used to find which factors are considered the most by consumers when buying different trade names.


As the information was gathered through convenience sampling, the consequences can non be generalized. There is besides a possibility that the respondents might reply the inquiries venally or half-heartedly, taking to biased findings. Apart from these restrictions of our survey, the fact that the information was merely collected through questionnaires provided us with the frequences as to how many people would buy the planetary or the domestic trade name and what factors are rated as the most of import by these people, but the grounds behind their purchasing forms and penchants remain unknown because these people were non farther interviewed.

Findingss and Discussion

Question 1

Make you utilize international trade names merchandises?

Harmonizing to the informations collected, 72.5 % of the people used international trade names of which 60 were male and 85 were females. 18.5 % of the people questioned claimed to utilize international trade names on occasion, whereas, 9.1 % of the people claimed non to utilize planetary trade names at all. As indicated in the pie charts above, 18.5 % of the people who used the planetary trade names sometimes included 28 males and 9 females, and those who did non utilize the planetary trade names consisted of 12 males and 6 females.

Question 2

If the monetary value of a foreign trade name and local one is the same, which trade name would you prefer?

The intent of this inquiry was to measure and detect how of import a factor such as monetary value is in finding whether the consumers would travel for the domestic trade name or stick to the planetary 1 if both the merchandises were in the same monetary value scope. The consequences found out that 76 % of the consumers would travel for the international trade names whereas 24 % would still buy the domestic 1s.

Question 3

How of import is the state of beginning, of the merchandise, to you?

This inquiry was asked to detect how much importance the young person lay on the state of beginning as a factor when doing a purchase. The consequences revealed far different consequences compared to what had been stated by the reappraisal of old researches done. As indicated in the graph, the young person was found to be mailnly ignorant of the state in which the trade name was manufactured. Majority of the consumers ( 76 % males and 88 % females ) did non see it as important a factor as to impact his or her purchase determination.

Question 4

Make you see the quality of the merchandise when buying a good?

A good quality merchandise indicates lastingness, dependability every bit good as good visual aspect and featuresThe reappraisal of the bing literature suggested that quality of the merchandise and its monetary value were rated by consumers as the most important factor in buying determinations. This was supported by our empirical findings that showed that 87.5 % people on norm considered the quality of the trade name above all the factors. This included 83 males and 92 females. The remainder of the people, harmonizing to our research findings, did non put that much accent on the quality of the merchandise entirely.

Question 5

Do you believe that the buying forms depict the societal position of a individual?

Question 6

It is said that people buy international merchandises so that they can be accepted in a peculiar societal group. Do you hold?

The consequences to these two inquiries confirmed the general perceptual experience that exists in our society, that is, the planetary are purchased as a position symbol. The young person chiefly bought foreign branded merchandises to be able to suit in a peculiar societal group. This occurs mostly because equal force per unit area tends to be high at this age, and most of the people find themselves being victims of lower status composites. The consequences to the first of these inquiries indicated that on mean 75 % of the young person ( 71 males and 79 females ) purchased the international and local trade names as a position symbol. These consequences were farther enhanced by the consequences to the following inquiry, which showed that 72 % of the males and 68 % of the females did, infact, believe that the people purchased the international trade names to be able to suit in a peculiar societal group.

Question 7

Make you see current manners and tendencies while buying a good?

Owing to instruction and information disseminated through the media, consumers in our soceity are going progressively cognizant of the current manners and tendencies prevailing even in other parts of the universe. Following the current manners and tendencies have become a norm in our society. Consumers now make their purchases harmonizing to the on-going manners, and this premise has been supported by our findings, which shows that 92 % of the females and 85 % of the males considered manner and tendencies when doing a purchase. There was non a individual female in our sample who did non pay attending to the tendencies and manners when traveling for a purchase. Furthermore, these consequences besides indicate that females are more manner witting than their male opposite numbers.

Question 8

Do you believe purchasing international trade names affect unemployment in our state?

The intent of this inquiry was to take the point of position of consumers as to whether the being of foreign trade names affect unemployement rate in our state. The consequences revealed that on mean 80.5 % of the consumers believed that the concerns are affected by the international trade names and that unemployment increases as a consequence. This figure included 88 males and 73 females. However 10.5 % of the people, on norm, believed that this instance merely occurs sometimes, whereas 9 % of the people did non believe that unemployment is related to the being of foreign trade names.

Question 09

If an international trade name is non easy available, would you travel for the domestic trade name?

As the above graph indicates, the replies to this inquiry represent differences in the sentiments of the males and the females as to their willingness in replacing the domestic trade name with an international trade name in the instance of non- handiness of the international trade name. The consequences revealed that whereas 57 % of the male ‘s respondents claimed that they would travel for the domestic trade name if the planetary trade name is non accessible, 78 % of the females claimed non to compromise and make with the domestic trade name, even if the international trade name of their pick is non available. This may be declarative of the degree of trade name trueness that females possess. In add-on to this, merely 16 % of the respondents, on norm, claimed that they would sometimes choose for the domestic trade name in the instance that the international trade name is non accessible to them.

Average figure of people ( in per centums )




Monetary value of the merchandise

76 %

16.5 %

7.5 %

State of beginning

4.5 %

13.5 %

82 %

Quality of the merchandise

87.5 %

7.5 %

5 %

Status symbol

75 %

15.5 %

9.5 %

Current manner and tendencies

85 %

10 %

5 %


60 %

20.5 %

19.5 %

The tabular array above compares the agencies of the different factors considered by consumers when choosing planetary trade names over the local 1s.


After researching on the penchants of consumers for the planetary and foreign trade names, and happening out what factors are considered the most of import by consumers when doing their picks, it has been concluded that consumers do buy the planetary trade names and give penchant to them. Consumers gain increased cognition about international merchandises by telecasting. Our findings show that quality was the first factor that affected consumer ‘s determination about a merchandise, with manner and tendencies being 2nd and monetary value was rated the 3rd most of import factor in act uponing consumer pick. Furthermore, a foreign trade name is normally regarded as a symbol of prestigiousness and societal position and as a agency of being accepted in a peculiar group. Because of this utmost equal force per unit area at this age, the young person frequently views the usage of such a foreign trade name as a necessity instead than a privation. Because of this utmost equal force per unit area at this age, the young person frequently views the usage of such a foreign trade name as a necessity instead than a privation.

Consumers were besides barely cognizant of how planetary trade names affect the local economic system and state of beginning, as a factor in act uponing consumers ‘ pick of the trade name was barely a important factor.

However, in malice of the fact that for some merchandises the local trade names are now available in the relevant monetary value scope, and rather good run into the quality criterions excessively, however the consumers of our state happen some kind of interior satisfaction in passing money on the planetary trade names. For grounds termed trade name trueness, and even for the ground of societal position, our locals continue to see and look up to the foreign branded merchandises.


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