Local conventions determine consumers' perceptions of brands entering foreign markets. There are three types of conventions that influence perceptions: category conventions, needs conventions, and cultural conventions. Needs conventions relate to how personal needs are satisfied differently across societies, like fulfilling security needs through road safety features in some countries but not others. Cultural conventions involve shared beliefs, values, and symbols in a society, like perceptions of brands based on their country of origin. Understanding local conventions is important for international branding strategies, to decide whether to adapt a brand or challenge conventions by offering new experiences.
2. "the process of developing a firm's brand equity which leads
to overseas customers' positive attitudes about the brand
use. Can be measured by perceived product quality, brand
awareness, brand loyalty, etc., in overseas markets."
3. Local conventions determine consumers’ perception
When a brand enters a foreign market, it needs to pass through a number of
filters that determine how local consumers perceive comparable brands.
These perceptions often differ from consumer preferences in the brand’s
home market. The brand manager needs to understand these differences.
Otherwise they can cancel, distort or reduce important elements of your
brand.
There are hundreds of factors influencing consumers’ perceptions. This
framework divides factors influencing perceptions of brands in three types:
category conventions, needs conventions and cultural conventions. The word
‘conventions’ stands for unwritten rules that govern people’s perceptions of
and decisions about a brand. When a convention is considered to be solid,
consumers are unwilling to accept an alternative. This decreases chances to
successfully introduce a new brand on a local market. When a convention is
flexible, it is undergoing development or erosion in consumers’ minds. And
this offers opportunities for foreign brands to enter a local market.
4. Needs conventions
The second type of conventions is needs conventions: consumers obtain their brand
experience with an eye to their personal needs. The needs conventions determine how
needs are manifested. Although a particular need may be common to all people, it may
be satisfied in a different manner in different societies. For example, a basic need for
breakfast may be met by eating sandwiches with a cup of tee in Russia, eggs and toasts in
the UK, rice and fritters in China, a muffin and a cup of coffee in the United States. In this
article we will use examples of security needs and social needs to better understand how
needs conventions influence consumers’ perception of brands.
Security needs include our needs for safety, protection and certainty. Although basic
security needs involve protection from physical and mental harm, their definition can
differ between countries. A good example is the road safety. German drivers trust
properly functioning brakes to ensure their safety, while French drivers prefer a powerful
engine. There seems to be no or very little interest in road safety in Russia or Ukraine, as
local consumers tend to believe in destiny – “if you are destined to die in a car accident,
you will die in a car accident regardless of security measures”. So, if you work for Volvo
and your company introduces a new car brand on the Russian or Ukrainian market, you
will have to find other advantages than the highest security standards.
5. Cultural conventions
The next type of conventions is cultural ones. Culture is a system of shared
beliefs, values, customs and symbols that members of a society use to deal with
their world and with one another. Each society develops specific cultural
conventions, which influence the way its members are supposed to think and
behave. Branding strategies and activities are also viewed by consumers in the
context of local cultural conventions.
For instance, different societies have various beliefs about the world. The most
typical example is the so-called country of origin effect. Consumers often have a
set of beliefs or myths about a country that can have a positive or negative
influence on brands from this country. For example, Germany is often associated
with engineering excellence, France with romance, Italy with design flair, China
with low quality products and so on. According to the Nation Brands Index,
Russia is associated with reach culture, not to be trusted government (due to 30
years of the Cold War), very bad investment climate (due to the Yukos and other
affairs), and oil, weapons and metals as the main export products.
6. Using local conventions for international branding
Understanding local conventions is extremely important in developing brand strategy
for a new foreign market. When a local convention is solid, consumers are unwilling to
accept an alternative. So, you will probably have to adapt the particular aspect of your
brand to this convention. When a convention is flexible, it is undergoing development
or erosion in consumers’ minds. Thus, there is an opportunity to challenge such a
convention, in order to differentiate your brand from competitors and to offer new
values to consumers. You can judge the solidity of a convention by conducting
competitive analysis and consumer research.
The most important consideration is whether adhering to or challenging a convention
will provide sufficient additional value to consumers. Providing consumers with new
and worthwhile experiences is much more important than adapting your brand to new
markets. One of the best examples of a local brand that became global by offering new
experience is the Mexican beer brand Corona. Corona was discovered in the 80s by
European and American tourists visiting Mexico. Corona conquered western markets
because its taste was very different form the traditional western beer. And because a
long-neck bottle of Corona, served with a slice of lemon, reminded customers their
exotic holidays, Latin rhythms and beach parties.