MARKETING I RYNEK 92017Introduction [627520]

49
MARKETING I RYNEK 9/2017Introduction
Global brands are all around us. Almost all
consumers all over the world know about Mc –
Donald’s, Disney or Coca Cola, regardless in
which country they live. The process of globali-
zation has connected the most remote parts of the world and enabled the availability of global
brands. In other words, the whole world has be-come a market of global brands.
Consumer preferences towards brands have
been, for many years, an interesting area of re-
search. For consumers, global brand still provides
a higher perceived quality, higher prestige and
higher status, and becomes a sort of symbol. Due
to the great importance of brands, companies
need to adequately manage the brand and at the same time adapt to modern market conditions. For some customers the most important is the
price, for some quality, while to others, the essen –
tial characteristic is the country of origin, packag –
ing, design etc.
As the crucial issue of research, we set up the
research of consumer preferences in selected prod-
uct categories towards local or global brands and the influence of the country of origin and ethno –
centrism in the buying decision.
Slovakia, Poland and Croatia are countries of
unique cultural values (Slavic Countries), specific
history and geographical position. All these three
countries are similar according to the level of
market development and they are East European Countries.Jaroslav Ďaďo
Matej Bel University, Faculty of Economics
Monika Boguszewicz-Kreft
WSB University in Gdańsk, Department of Marketing
Igor Miškic
Matej Bel University, Faculty of Economics
Analysis of consumer preferences for
local and global brands in markets
of Croatia, Poland and Slovakia
Analiza preferencji konsumentów względem marek lokalnych
i globalnych na rynkach Chorwacji, Polski i Słowacji
The main aim of this article is to present results of research
if consumers prefer within a chosen category of products
global or local brand and to identify why consumers select –
ed preferred marks. The object of our research were sam-ples of Slovak, Polish and Croatian customers older than 18 years. Primary research was conducted through a ques-
tionnaire on a sample of the three countries’ consumers.
Keywords
consumer preference, country of origin, ethnocentrism,
globalization, global brandsCelem niniejszego artykułu jest zbadanie, czy konsumenci
w ramach wybranej kategorii produktów preferują marki
globalne czy lokalne oraz dlaczego wolą preferowane marki. Badania zrealizowano na próbie międzynarodowej konsu-
mentów w trzech krajach: Chorwacji, Polsce i Słowacji. Ba-
dania miały charakter badań ankietowych, w których udział
wzięli konsumenci w wieku powyżej 18 lat.
Słowa kluczowe
etnocentryzm, globalizacja, marka globalna, preferencje
konsumenta, państwo pochodzenia

50
MARKETING I RYNEK 9/2017Preference of local
and global brands
In today’s market conditions it is no longer
enough to have products of superior quality, with
the best price, the best distribution network and
excellent promotion. Nowadays, the company’s
success depends primarily on what the consumers know, think and feel about the company and its
products.
Basic dimension of brand
One of the most widely accepted definitions
of brand in the literature is the one made by
the American Association for Marketing (AMA): “A brand is a name, term, design, symbol, or any
other feature that identifies one seller’s good or service as distinct from those of other sellers.”
(Keller, 2003)
Kotler and Keller (2006) point out that the
concept of brand is complex and can include up
to six different dimensions of meaning. The brand is a symbol of certain attributes, characteristics
that consumers attribute to the product on the functional level. Brand symbolizes the benefits which product characteristics provide to the con-
sumer. Brands can also indicate different values,
represent a culture, a personality, as well as the
user. Keeping in mind that this is a complex con-
cept that incorporates a deep set of psychological
dimensions in itself, primarily thinking and con-sumers’ associations.
The brand is focused on identifying and distin –
guishing goods or services of one producer from
the product or service of competitors. Brand is
a strategic concept for managerial decisions. Pro-
ducers use brand in order to make their products and services recognizable and different from the
competitors. The brand is not only a symbol of
distinction, but it is set of all attributes in minds of consumers when consumer thinks of a certain
brand (Moilanen, Rainisto, 2009).
Brands significantly affect the final decision to
purchase a product which leads to the conclusion
that brands are a significant source of value for
consumers. In analysing the importance of brands
in today’s business management, in terms of the
impact on consumers, making purchasing deci-
sions is based on the analysis of brands’ dimen-
sions (Keller et al., 2008). Basic dimensions of brand are presented in Figure 1.
Figure 1. Basic dimensions of brand
3
also indicate different values, represent a culture, a personality, as well as the user. Keeping in
mind that this is a complex concept that incorporates a deep set of psychological dimension s
in itself , primarily thinking and consumers ’ associations .
The brand is focused on identifying and distinguishing goods or services of one
producer from the product or service of competitors. Brand is a strategic concept for
managerial decisions. P roducers use brand in order to mak e their products and services
recogni zable and different from the competitors. The brand is not only a symbol of
distinction, but it is set of all attributes in minds of consumer s when consumer thinks of a
certain brand (Moilanen, Rainisto, 2009 ).
Brands significantly affect the final decision to purcha se a product which leads
to the conclusion that brands are a significant source of value for consumers. In analysing
the importance of brands in today's business management, in terms of the impact on
consumers, making purchasing decision s is based on the analysis of brands’ dimensions
(Keller et al ., 2008). Basic dimensions of brand are presented in Figure 1.

Figure 1 Basic dimensions of brand
Baldauf, Cravens, Binder, 2003.
For managers and for customers t he three basic dimensions of the brand are important :
Brand Awareness , Perceived Quality and Brand Loyalty.
Brand a wareness is one of the key goals of the construction of brand. Brand awareness
enables consumer to understand to which category of product or service that brand is Brand
Awarness
Profitability
Performance
Perceived
Quality
Brand Loyalty Market
Performance

Customer Value
Purchase
Intention
S o u r c e : Baldauf, Cravens, Binder, 2003.

51
MARKETING I RYNEK 9/2017For managers and for customers the three basic
dimensions of the brand are important: Brand
Awareness, Perceived Quality and Brand Loyalty.
Brand awareness is one of the key goals of the
construction of brand. Brand awareness enables consumer to understand to which category of product or service that brand is connected and
which products or services are sold under brand name. Also, awareness ensures that consumers
know that their needs can be satisfied using some brand.
To find out what the consumer awareness of
a brand is, the question whether that brand ap –
pears in consumer’s mind when mentioning the
product categories where it belongs needs to be
answered. It is possible to talk about several cat –
egories of brand awareness that differ from one another in terms of intensity: no brand awareness
(consumers have never heard of the brand), rec-
ognition (consumers recognize the brand on the
list of specified brands), recollection of the brand
with a little help (remembering when the brand
is mentioned), recollection of the brand without help (it is not necessary to mention the brand),
the first brand that the consumer remembers at
the mention of some product and a dominant
brand, is the only brand that consumers remem –
ber when some product is mentioned (Filipović,
Stanković, 2009).
Perceived quality is the second dimension.
Brands represent a kind of guarantee that prod-
ucts and/or services meet the expectations of
consumers in terms of product performance. This
dimension of the brand has a significant impact
on satisfying the needs of the psychological na-
ture of consumers (Keller et. al, 2008) and refer to
the reduction of risks (financial and social) and satisfying the needs of a higher order.
Brand loyalty may be defined as a degree of
commitment which brand has achieved in its con-
sumer base or outside which consists of closeness, intimacy and loyalty of consumers towards the
brand. The basis of brand loyalty makes customer
wishes to repurchase branded product. However,
in addition to loyalty, there are other reasons for
re-purchase, such as the obligation or lack of al-
ternative, and when evaluating loyalty to a brand
it is necessary to take this into account (Filipov –
ić, Stanković, 2009). Brand loyalty is a dimension
which mainly depends on the previous two di-mensions.Globalization and global
vs. local brands
Globalization is the process of creating and dis-
tributing products and services of homogeneous/
standardized format and quality all over the world
(Rugman, Moore, 2001).
Globalization has an extremely strong impact
on the development of companies which start to exploit all changes that occur in the environment.
Gillespie, Hennessey (2011) emphasize that the key competitive advantage of global companies is
in the possibilities of implementing global mar-
keting strategies, in creating a unified strategy for
products in the entire world market, rather than adapting to the conditions in each individual mar-
ket. In this way, companies reduce their operat-
ing costs, meet the demand of global customers,
develop a sustainable competitive advantage and
generate increased sales revenues.
Global brands have significant advantages.
First, Kotabe and Helsen (2010) point out that
main advantages of global branding are visible in
achieving economies of scale and global brand
development reduces costs in production, distri –
bution and promotion of products on the global
market. Second, the global branding affects the
creation of better visibility and awareness of the
brand. Third, consumers across the world recog-nize the global brand and buy it no matter where
they are located. Finally, additional advantages are evident in the emotional connection between
consumers and the brand name.
Local brands are more related to tradition and
local culture, and this is an advantage, because
they develop special relations and trust with con-
sumers.
The global or ethnocentric consumers
A global consumer culture that includes a col-
lection of common characters, products and
brands which are known to a certain market
segment worldwide develops with the emergence
of global consumers. Thus, the global consumer segment can represent young people who follow
world trends and share similar fashion or musi-cal tastes of today. (Cleveland, Laroche, 2007).
This idea was the starting point for our research whether young people are more oriented to global
brands.

52
MARKETING I RYNEK 9/2017Holt, Quelch and Taylor (2004) conducted
a study in which they examined how consum-
ers with different characteristics around the world
perceive global brands. Based on the results, the
researchers demonstrated four segments of global consumers. First, the largest segment consists of global citizens who believe that the global suc –
cess of the company is reflected on the quali-
ty and innovation. Second, global dreamers are
characterized as consumers who identify global
brands with quality products and they are willing
to pay them. The third segment consists of an-
ti-globalization activists who are sceptical about
the quality of global brands. Finally, global agnos-
tics do not make their purchasing decisions based
on the brand globality and treat them in the same
manner as the local brands.
Shimp and Sharma (1987) defined the con-
sumer ethnocentrism as a concept that includes
individual beliefs about consumers’ correctness
and morality of buying local products. They con-
cluded that consumers who show a high level of
consumer ethnocentrism tends to evaluate the
purchase of foreign products in accordance with
their perception of the potential impact on the
development of the domestic economy.
Purchase of foreign products for ethnocentric
consumers is not only economic, but social and
moral problem. The attitude of such consumers is
selection of domestic products even under condi –
tions where the quality of such products is signif-icantly below the quality of foreign products.
Country of origin
The impact of the country of origin on custom –
er’s perception of products has been extensively studied ever since Ernest Dichter commented that
the term “made in …” can have a major impact
on acceptance of products. These studies explore how consumers perceive products originating from certain countries. (Karami et al., 2013). “Na-
gasihma (1970) defines country of origin images as the picture, the reputation, the stereotype that
businessmen and consumers attach to products of
a specific country. This image is created by such
variables as representative products, national char –
acteristics, economic and political background,
history and traditions”. When customers are not familiar with characteristics of a product, they use
the country of origin as a factor in the evaluation
of the product (Lawrence et al., 1992). In pur-
chasing behaviour country of origin is effecting as a catalyser. Problem in this area is as the latest
surveys show that customers often do not know
the right country of origin of many product and
brands. Products are not produced, manufactured,
designed and assembled in its country of origin.
The origin of the brand can be defined as a place,
a region or a country in which target consumers
rank the brand. For example, Nike is perceived as
an American brand and product regardless of the
fact that all products of this brand are produced
in other countries (Herz, Diamantopoulos, 2013).
Analysis of consumer preferences
towards local or global brands
The main aim of the presented research was
to identify if consumers prefer within a chosen
category of products global or local brand and to
identify why consumers selected preferred marks.
Research methodology
The object of our research were samples of
Slovak (SK 105), Polish (PL 120) and Croatian
(HR 125) respondents older than 18 years. We have conducted research by using questionnaire
method. Data were collected directly from the
respondents. The survey was conducted during
February – June 2016. The questionnaire con-
sists of seventeen (17) questions. For more detail
analysis the first five (5) questions were related
to the socio-demographic profile of respondents (gender, age, employment status, education level
and monthly income of the household). Follow –
ing eight (8) questions were open-ended questions
in which respondents were asked to specify three brands which are favoured and why in a particu –
lar category of products and to write for each of these brands one-two words of association.
The selected categories of products were: non-al-
coholic beverages, alcoholic beverages (except of
beer), milk products, coffee, cosmetics, clothes,
and home appliances.

53
MARKETING I RYNEK 9/2017Preferences and associations
about brands
In this part we present the results of our pri-
mary research. As already noted, the research was
conducted through online and face to face ques-tionnaire.
The analysis of answers to the open-ended ques-
tions about preferences towards brands in eight selected product categories is presented below. Ba-
sic perceptions about preferred brands according to categories and researched countries are:Non-alcoholic drinks:
• HR – Coca Cola is Christmas advertisement,
unique taste, habit, reliability and global brand; Jamnica is associated as summer, refreshment
and new tastes; Jana is linked with quality, health, easy accessibility and Croatian product.
• SK – Coca Cola good taste, a part of lunch;
Rajec is associated as natural and with more tastes; Kofola is perceived as Czecho-Slovak
brand and as “our brand”.
• PL – Żywiec is associated as fresh, healthy and
quality.
Table 1. Brand preference of non-alcoholic drinks
Non-
alcoholic
Drinks
(HR)Frequency
(Percentage)
Frequency
Average
placement Non-
alcoholic
Drinks
(SK)Frequency
(Percentage)
Frequency
Average
placement Non-
alcoholic
Drinks
(PL)Frequency
(Percentage)
Frequency
Average
placement
Coca Cola57
(45,60%)34
11 121,61 Rajec25
(24,04%)18
52 1,36 Żywiec40
(33,33%)20 10 10 1,75
Jamnica41
(32,80%)13
16
121,97 Coca Cola27
(25,71%)11
10
61,81 Coca Cola37
(30,83%)18 13
81,84
Jana45
(35,20%)20
12 13 1,84 Kofola26
(25,00%)16
37 1,65 Tymbark49
(40,83%)17 14 182,02
Notes to columns:Column No 1. Preferred brand (bold = global brand, italic = local brand)Column No 2. Sum frequency of position on the first, the second and the third place absolute together and in percentage of all respondents;
it is the sum of column No 3
Column No 3. The highest frequency of brand position on the first, on the second and on the third placeColumn No 4. Total average position of brand in three degree scale
S o u r c e : own research.
Alcoholic drinks (except for beer):
• HR – Jagermeister tasty, quality and good for
combine with other drinks; Jack Daniel’s is
prestige, quality and good packaging; Badel is
domestic product, quality and tradition.• SK – Captain Morgan is good price and quality
taste; St. Nicolaus – good price.
• PL – Jack Daniel’s is for young generation; Zubrówka is national brand, with tradition, for
more occasions.
Table 2. Brand preference of alcoholic drinks
Alcoholic
Drinks
(HR)Frequency
(Percentage)
Frequency
Average
placement Alcoholic
Drinks
(SK)Frequency
(Percentage)
Frequency
Average
placement Alcoholic
Drinks
(PL)Frequency
(Percentage)
Frequency
Average
placement
Jager-
meister56
(44,80%)33
15
81,97Captain
Morgan22
(20,95%)9
7
6 1,86Jack Daniel’s27
(22,5%)14
6 7 1,74

54
MARKETING I RYNEK 9/2017Alcoholic
Drinks
(HR)Frequency
(Percentage)
Frequency
Average
placement Alcoholic
Drinks
(SK)Frequency
(Percentage)
Frequency
Average
placement Alcoholic
Drinks
(PL)Frequency
(Percentage)
Frequency
Average
placement
Jack
Daniel’s32
(25,60%)18
9 51,59 Finlandia22
(20,95%)8
8
61,91 Żubrówka21
(17,05%)1
16
42,14
Badel45
(36,00%)26
8
11 1,67Nicolaus vodka20
(16,19%)6 7 72,05 Finalandia 26
(21,66%)7
11
82,04
S o u r c e : own research.
Milk products:
• HR – Dukat is healthy, high-quality, local, Buy
Croatian, affordable prices; Meggle is with
good price, availability and quality.
• SK – Rajo is tradition and quality milk; Zvolen-ský is traditional quality product, healthy and thick yogurts. Brand Liptov presents local qual-ity and good price.
• In Poland Zott is quality and good price sym-bol. Brand Danone is for children and with
good taste. Piatnica is local brand and high
quality symbol.
Table 3. Brand preference of milk products
Milk
Products
(HR)Frequency
(Percentage)
Frequency
Average
placement Milk
Products
(SK)Frequency
(Percentage)
Frequency
Average
placement Milk
Products
(PL)Frequency
(Percentage)
Frequency
Average
placement
Dukat98
(78,40%)44
32 221,77 Rajo42
(43,69%)20 14
81,71 Zott37
(30,83%)21
3
131,78
Dukat98
(78,40%)44
32
221,77 Zvolenský41
(38,09%)19
15
71,71 Piatnica44
(36,67%)11 21
122,02
Meggle34
(27,20%)11 13 10 1,97 Liptov14
(13,33%)0 5 92,64 Danone51
(42,5%)20 16 151,9
S o u r c e : own research.
Coffee:
• HR – Franck has special aroma, quality, vacu-
um packaging, tradition, red wrapper; Nescafe
is with quality, easy to make, distinctive pack –
aging café.• SK – Nescafé is symbol of “3 in 1” café, gold crema and classic; Popradská is local brand,
right price-quality ratio with traditional taste.
• PL – Jacobs has good taste and quality.
Table 4. Brand preference of coffee
Coffee
(HR)Frequency
(Percentage)
Frequency
Average
placement Coffee
(SK)Frequency
(Percentage)
Frequency
Average
placement Coffee
(PL)Frequency
(Percentage)
Frequency
Average
placement
Franck76
(60,08%)44
20 12 1,57 Nescafé41
(39,05%)23 13
51,56 Jacobs78
(65%)33 25 20 1,83
Franck76
(60,08%)44
20
12 1,57 Popradská32
(30,47%)12
14
61,81 Jacobs78
(65%)33 25
20 1,83

55
MARKETING I RYNEK 9/2017Coffee
(HR)Frequency
(Percentage)
Frequency
Average
placement Coffee
(SK)Frequency
(Percentage)
Frequency
Average
placement Coffee
(PL)Frequency
(Percentage)
Frequency
Average
placement
Nescafé55
(44,00%)22
16 171,91 Jacobs31
(29,52%)15
9 71,74 Jacobs78
(65%)33 25 20 1,83
S o u r c e : own research.
Cosmetic products:
• HR – Nivea – care, face cream, blue colour,
quality, and tradition; L’Oreal is makeup, good
price, beauty, uniqueness.• SK – Nivea is traditional brand, offering quality and respecting health.
• PL – Nivea is tradition, hand cream, good price and environmentally oriented.
Table 5. Brand preference of cosmetics
Cosmetics
(HR)Frequency
(Percentage)
Frequency
Average
placement Cosmetics
(SK)Frequency
(Percentage)
Frequency
Average
placement Cosmetics
(PL)Frequency
(Percentage)
Frequency
Average
placement
Nivea57
(45,60%)18
16 13 1,74 Nivea55
(52,38%)23 21 111,78 Nivea69
(57,5%)35 18 16 1,72
Nivea57
(45,60%)18
16
13 1,74 Nivea55
(52,38%)23
21
111,78 Ziaja40
(33,33%)15
19
61,77
L´Oreál35
(28,00%)11
10 14 2,08 Nivea55
(52,38%)23 21 111,78 Nivea69
(57,5%)35 18 16 1,72
S o u r c e : own research.
Clothes:
• HR – H&M is quality, comfortable, trendy and
affordable; Zara is associated with elegance,
style, expensive, modern and popular; Nike is
quality, shoes, comfortable.• SK – Nike is well-known logo, good design,
image, quality and prestige; Adidas is comfort-
able, sporty and quality.
• PL – H&M is good price and quality; Reserved is national brand with good price and quality;
Nike is sporty, image and quality;
Table 6. Brand preference of clothes
Clothes
(HR)Frequency
(Percentage)
Frequency
Average
placement Clothes
(SK)Frequency
(Percentage)
Frequency
Average
placement Clothes
(SK)Frequency
(Percentage)
Frequency
Average
placement
H & M41
(32,80%)21
14
61,63 Nike38
(36,19%)17 15
61,65 H & M36
(30%)16 10 101,83
Zara36
(28,80%)16
15
31,53 Nike38
(36,19%)17 15
61,65 Reserved35
(29,17%)15 11
91,83
Nike20
(16,00%)6
7 7 2,05 Adidas36
(34,28%)15 14
71,78 Nike25
(20,83%)8 6
11 2,12
S o u r c e : own research.

56
MARKETING I RYNEK 9/2017Home appliances:
• HR – Gorenje as symbol of durability, quality,
endurance, safety, reliability; Samsung is associ –
ated with modernity, TVs, a large selection of
products, innovation.
• SK – Samsung is symbol of innovations and quality of TV sets; Sony has good design, quali-ty and tradition; Whirlpool is symbol of Slovak
quality and good experiences.
• PL – Bosch is German quality and good servic –
es; Sony is quality and good image; Whirlpool is long time guarantee of quality.
Table 7. Brand preference of home appliances
Home
Applian-
ces (HR)Frequency
(Percentage)
Frequency
Average
placement Home
Applian-
ces (SK)Frequency
(Percentage)
Frequency
Average
placement Home
Applian-
ces (PL)Frequency
(Percentage)
Frequency
Average
placement
Gorenje64
(51,20%)36
15 13 1,69 Samsung38
(36,54%)22 11
51,56 Bosch53
(44,17%)33
7
131,62
Samsung38
(30,40%)11
15
122,03 Sony26
(24,76%)6
12
82,08 Sony30
(25%)8
16
61,93
Gorenje64
(51,20%)36 15 13 1,69 Whirlpool 23
(21,90%)8 6 92,22 Whirlpool 23
(19,17%)0 7
162,69
S o u r c e : own research.
Discussion
The results of this study say a lot about the
three East European countries and consumer
choices and preferences of products in selected product categories. Based on the results we ob-
tained during the research we can see that some
local brands are presented on the list of most
preferred brands, even though the global compe-
tition is very strong.
When it comes to non-alcoholic drinks, two
local brands in all three countries are fighting with global brand Coca Cola. In the category of
alcoholic drinks two global brands are competing
with one local brand in all three countries. When
we talk about brands of coffee, one global brand
have all three first places in Poland.
However, the situation is completely different
in the category of cosmetic products. Global
brands are represented in the amount of more
than 90%. Although the market is fragmented,
there is a space for better positioning of local
brands. In the category of clothing, household ap –
pliances and cars, the situation is similar, almost
all global brands have equal positions.
Large number of respondents presented pref-
erence of local products because of their higher quality than products of global brands. Most re-spondents stated that they would choose domes-
tic product between two products of the same
price. Analysing the answers in all three countries,
it can be concluded that the price is still very
important and often determining factor, although domestic products have the same or even better
quality than global, customers choose products
which are cheaper.
In the categories of clothing and footwear,
household appliances and cosmetics customers
are oriented towards global brands. Global brands
fully dominate over the local. Therefore, there is an opportunity for local brands to improve their
position and raise consumer awareness.
Local brands Franck and Popradská hold pri-
macy on the coffee market. If global brands want to be more favoured by consumers, they need to
focus more on traditional, „Turkish“ coffee that
the majority of consumers in Slovakia (more than
40%) and Croatia (more than 50%) consume.
Similarly, on the milk products there is
a chance of increasing the share of global brands
which can be achieved by reducing prices and maintaining the same level of quality. Products
of local brands are of better quality and cheaper than global brands. In this category respondents
are committed to domestic products because of
ethnocentric motives.

57
MARKETING I RYNEK 9/2017In the category of alcoholic drinks global brands
are at an advantage. If they want to improve their
position, local brands need to improve packaging
design and create the image of prestigious brands,
because these are the characteristics that respond-
ents mention for most preferred global brands.
More orientation to global brands is among
younger consumers (less than 45). Older gener-
ation is more ethnocentrically oriented. Some
respondents did not select a brand, and they se-
lected product subcategory (e. g. yogurt in milk
products). Questioners with such answer were not
accepted to research results.
Conclusion
Results of this study can be useful to manag –
ers of local and international companies and sci -entists. Foreign companies may use analysis of
the results of our research to create a successful
strategy for entering target market and business
development, or to adapt existing strategies, as
well as to help local enterprises in strengthening the market position and in the battle with global
competitors.
Differences between the level of brand prefer-
ences and between real market shares of the brand
on the market exist in all three investigated coun-
tries. There are disproportions between awareness
and behaviour. It could be an inspiration for managers for increasing the market saturation.
Materials collected by the research team have
sources of information for more detail analysis
according to demographic criteria and for histor-ical-comparative analysis with similar research in
Slovakia made in 1996.
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