Consumer Preferences for Brands in International Markets

In this study we explore how does the entrance of new international brands affect market dynamics where national, international and private brands are present. In such a situation, it is very important for managers to understand consumers’ preferences and perceptions of these brands as it allows them to better understand how to address consumers’ needs in the setting of differences in product quality, price, prestige, etc. It also allows marketers to better position these brands as well as to explore opportunities for introducing new products. This whole issue becomes even more important when the market is exposed to a reduction in international trade barriers and an increase in consumers’ spending power at the same time. It is not clear how the imported international brands should position themselves in such a complex situation. We relate consumer perceptions to choice, in the context of these different categories of brands using a choice model. The estimated model provides us with several diagnostic findings of managerial interest.