Perceptual positioning of international, national and private brands in a growing international market: An empirical study

Abstract

It is logical to expect that consumers would react differently to different categories of brands. This research evaluates a scenario in a foreign country where international, national and private brands are important players in the market. In such a situation, it is very important for marketers to understand consumers' perceptions of these international, national and private brands. It will allow them to understand consumer needs and thus to position these brands better against the backdrop of differences in perceived product quality, price, prestige etc. This whole issue becomes even more important when the market environment is characterised by a rapid exposure of consumers to international brands in the presence of substantial cultural differences among the population. There has been little empirical work in the literature that examines how consumers perceive the competitive positioning of international, national and private brands in foreign markets. This research focuses on doing this, using data from the Israeli market and studying consumers' perceptions of brands for a consumer non-durable product category. In addition to testing some research propositions, empirical analyses are performed at both aggregate and disaggregate levels of the market. Drawing from the postulated behaviour of consumers in this culturally diverse market, segmentation schemes are applied that allow greater insight into brand positioning issues. The results lead to interesting managerial implications for the Israeli market. To the extent that the Israeli market is representative of other countries in a similar market life-cycle stage, this study provides valuable insights for brand managers in those nations.