Brand signifies value and that's one reason why people spend more to buy a branded product. You can think of Sony, Nike, Benz, Ford, Xerox..... In some cases like Surf, Xerox, the brand has become the commodity.
You could still get a quality stuff from an unbranded product but it is not assured. With a brand you are assured of quality.
Brand loyalty differs from brand to brand-- I have seen some people buy only Levis as none others are perceived to provide a better product in Jeans. But their loyalty will switch to a better product once an innovative product is launched in the market.
Until recently, brand loyalty was strong in newspapers but that too due to force of habit rather than lack of better offerings in the market.
Why is Apple different
Binu Alex, Director of Commodity Online Group in an offtrack column on Apple had explained the reasons why his day begins with Apple and ends with Apple. My son Darshan Sreekumar, wrote in my blog taking exception to some of the statements made in the Commodity Online article.It drew violent protests from some readers using iPhone and several other Apple products.
What was objectionable was my son's observation that most buyers bought iPhone to 'show off' that they are in the big league in society. His comparison with some of the better features of Android was met with the response, Android is a copy or a clone while Apple's operating system is original.
I intended to write this a follow up only to high light a couple of things which have been firmly established in management and marketing theory. The other day one of our family friends, Shaji Sir asked me why are people spending so much money on brands. I tried to briefly tell him why this is happening. For one thing brand denotes quality but an unbranded product can still give you quality stuff at a lower price but there is no assurance or guarantee in this regard.
A simple lesson in Marketing theory now well accepted in management circles points out the motivation to purchase a product by the consumer. It is dependent on four factors: One the real image of the consumer as perceived by him, the image that he wants to project in society, thirdly society's real view of the consumer and the image the consumer thinks the society has of him when he purchases a particular product.
From this it is quite clear that our choice of a product or brand is not just dependent on its utility but on the perceived value it can bring to us in society and attendent benefits that may accrue.
A CEO owning Mercedes Benz and another owning Honda City are perceived differently by the society in terms of success, achievements, company profile, attitude, and several other factors.
Apple the brand consumers own
Now I come to postulate a theory that perhaps Apple may be the only product which is really loved and owned by the consumers. I think Apple has done a clever mix of psychology, superior design, technology features, innovations in such a way that a user ultimately becomes to much identified with the product. It is almost like two people falling in love-- lot of oxytoxins that create good feeling for the user is created even its logo, design and looks. In the case of most other brands, the ownership rests with the company and the company is owned by several share holders.
In the case of Apple, it is foremost owned by the consumers (although they may not own a share) who have really fell in love with it that even a criticism about the product can hurt its sentiments. It is just as when you are in love, you perceive your partner to be the paragon of ulitmate virtue and beauty, beyond compare. Apple brand owners are not all interested in a comparison with Android because for them Apple ios is beyond compare.
I still believe much of the marketing theory I outlined above with respect to a consumer's choice of a brand holds for Apple as well. No one can deny it.But the success of Apple is having created an intelligent, beautiful anbd innovative partner for its customers such that they have been hooked to it.
You could still get a quality stuff from an unbranded product but it is not assured. With a brand you are assured of quality.
Brand loyalty differs from brand to brand-- I have seen some people buy only Levis as none others are perceived to provide a better product in Jeans. But their loyalty will switch to a better product once an innovative product is launched in the market.
Until recently, brand loyalty was strong in newspapers but that too due to force of habit rather than lack of better offerings in the market.
Why is Apple different
Binu Alex, Director of Commodity Online Group in an offtrack column on Apple had explained the reasons why his day begins with Apple and ends with Apple. My son Darshan Sreekumar, wrote in my blog taking exception to some of the statements made in the Commodity Online article.It drew violent protests from some readers using iPhone and several other Apple products.
What was objectionable was my son's observation that most buyers bought iPhone to 'show off' that they are in the big league in society. His comparison with some of the better features of Android was met with the response, Android is a copy or a clone while Apple's operating system is original.
I intended to write this a follow up only to high light a couple of things which have been firmly established in management and marketing theory. The other day one of our family friends, Shaji Sir asked me why are people spending so much money on brands. I tried to briefly tell him why this is happening. For one thing brand denotes quality but an unbranded product can still give you quality stuff at a lower price but there is no assurance or guarantee in this regard.
A simple lesson in Marketing theory now well accepted in management circles points out the motivation to purchase a product by the consumer. It is dependent on four factors: One the real image of the consumer as perceived by him, the image that he wants to project in society, thirdly society's real view of the consumer and the image the consumer thinks the society has of him when he purchases a particular product.
From this it is quite clear that our choice of a product or brand is not just dependent on its utility but on the perceived value it can bring to us in society and attendent benefits that may accrue.
A CEO owning Mercedes Benz and another owning Honda City are perceived differently by the society in terms of success, achievements, company profile, attitude, and several other factors.
Apple the brand consumers own
Now I come to postulate a theory that perhaps Apple may be the only product which is really loved and owned by the consumers. I think Apple has done a clever mix of psychology, superior design, technology features, innovations in such a way that a user ultimately becomes to much identified with the product. It is almost like two people falling in love-- lot of oxytoxins that create good feeling for the user is created even its logo, design and looks. In the case of most other brands, the ownership rests with the company and the company is owned by several share holders.
In the case of Apple, it is foremost owned by the consumers (although they may not own a share) who have really fell in love with it that even a criticism about the product can hurt its sentiments. It is just as when you are in love, you perceive your partner to be the paragon of ulitmate virtue and beauty, beyond compare. Apple brand owners are not all interested in a comparison with Android because for them Apple ios is beyond compare.
I still believe much of the marketing theory I outlined above with respect to a consumer's choice of a brand holds for Apple as well. No one can deny it.But the success of Apple is having created an intelligent, beautiful anbd innovative partner for its customers such that they have been hooked to it.
Good one
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