How Global are Global Brands? An Empirical Brand Equity Analysis

Abstract

The term has become widely used by the media and by consumers. Business week publishes annually its widely known ranking of the Best Global Brands (with Coca-Cola as number 1 in the past years) and consumers on summer vacations purchase such as Heineken or Marlboro they are familiar with from their home country. Although media and consumers call these and centralized marketing departments manage these globally – are these brands really global? Are they really perceived everywhere in the same way by the customers? Can we talk about truly global brand equity? And if there were brand image differences between countries, which factors causes them? The authors conducted an empirical research during May and June 2009 with similarly aged University students (bachelor students at business school) in Germany (n=426) and Mexico (n=296). The goal was to identify if brand awareness rates differ between Germans and Mexicans, if the brand image of Apple iPod is perceived in the same way in Germany and in Mexico and what influencing factors might have an impact on any brand image discrepancy between the countries. Results prove that brand recall rates differ between the two countries (with higher rates in Mexico) as well as brand image attributes vary significantly (28 out of 34 brand image attributes are significantly different between Germany and Mexico), with Mexico showing higher levels of favorable brand image attributes. Key influencing factors on the different brand image perceptions are perceived quality, satisfaction and the influence of reference groups (such as friends and family). The results suggest that so-called brands are not perceived the same way in Germany and Mexico. As a consequence, brand management using standardized marketing instruments for its presumable brands might be better off with a more differentiated approach that takes account a specific local brand image.