In this new era, branded products have being so popular through these ages even the elderly likes to buy branded products. First of all, brand is “ the outcome of object-ives, it is produced in the test and trials of object-ivity, and it is, sometimes, a matter of object-ion” and or the foreword meaning of the brand is “ a set of relations between products or services” (Lury 2004, p. 1). Examples of branded goods are coca cola, Apple, Hermes, Mercedes and many others. This essay will tell you about the causes and consequences of producing branded goods. Each part of it is a general situation plus personal experience.
Usually, price of branded products are expensive because branded products are widely known and scattered in most of countries in the world but everyone still likes branded products because it looks luxurious and the quality of branded goods is guaranteed. Brands also give buyers a confidence feeling, stimulate their common senses and provide meaningful experiences in their lives (Roll 2006). There are many other reasons why the demand for branded products is high, it all depends on human behavior, attitude, personality, income and many others. People with high prestige will consume branded products because they don’t want to feel left behind. And some other people like to showing off their belongings so others now that they were fabulous or cool such as teenagers.
Income also affect the demand, when people is rich they will buy high class product which is branded products because they have lots of money so why do not use it on good quality products. Advertising also can make people interested in purchasing branded products. According to Schultz & Schultz (2004), basically an advertiser will encourage buyers to purchase the goods that advertised interestingly. The other reasons why people choosing a branded products because the services given by the employees to customers for example, “ The brand personality may be warm and welcoming [such as] Starbucks” (Schultz & Schultz 2004).
Besides branded goods, there are also non-branded goods which are cheaper than the branded. So, why people still willing to buy branded goods when there are cheaper goods? It probably caused by the quality of the
non-branded goods that is unknown. Branded products is already known by many people but non-branded is unknown, maybe only some people that knows this product. It is hard for non-branded product to compete with branded products unless they created some goods that looks unique and attractive that branded product haven’t produce which is rarely happens.
People who producing branded goods unfortunately will feel the profits and losses from the product. Not only the customers, but producers, marketers and the economy also get the pros and cons. At the first time, buyers perhaps will feel satisfied, happy and fabulous with the product. But they’re also some disadvantages when consumers choose branded products. The money they spent on branded product is way more expensive compared to non-branded product. For the high income person this should not be a big problem, but if their income is normal or below the average then those people will have to manage their expenses in order not to ran out of money. The famous and common brands are the one that most affecting the consumers because people feel more comfortable using the well-known branded goods because it trusted products (Khasawneh & Hasouneh 2010).
For marketing people, in the learning processes branding have a major effect because brands can established itself which means, once consumers begin to buy and use that particular product, others will automatically following the first customers and consuming the same goods (Moos 2005). There are some examples of the condition above according to Roll (2006) such as Michael Schumacher promoting Ferrari and Tiger Woods supporting Accenture. The branded products are promoted by some famous people who have lots of fans, therefore, some of their fans probably will buy the same products as the idol. First impression affect the future of the products, because when people love it at first moment, there is a chance for the company of branded goods to producing more attractive goods because people likes it.
A brand also affects the economies. It caused the non-branded product become hard to evolving and has low income. And it caused counterfeit goods, where people trying to copy the original one and sell it will lower price, such as china. China has been known for producing low quality products that have a same shape as branded products. Branded products are scattered everywhere, neither domestic nor overseas. But there is different currency in each countries causes different rates or prices but the same product, some people felt that this is unfair and they might looks for an illegal way to get this branded product through internet (Moos 2005). And society becomes a bit chaotic due to the differences between the rich and the poor where the rich use branded goods, while low-income people who use non-branded goods which is cheaper.
As a result, we can say that the branded goods is highly desired by lots of people, especially the upper class, because branded products does have a good quality and their own characteristics or logos which makes buyers become interested in consuming this particular item. Even though it has damaging the society life and also economies. It would better if you think wisely before making decisions about buying branded products whether is it worth it or not, useful or not, or you probably just buy it to show it to others for fun. Because some of non-branded products are also in a good quality and good shapes, people just not recognize it because they focused too much on branded products.
Lury, C 2004, Brands: The Logos of the Global Economy, Routledge, New York. Roll, M 2006, Asian Brand Strategy, Palgrave Macmillan, New York. Schultz, DE & Schultz, HF 2004, Brand Babble, Thomson South-Western, United States of America. Khasawneh, K & Hasouneh, ABI 2010, ‘ The Effect of Familiar Brand Names on Consumer Behaviour: A Jordanian Perspective’, EuroJournals Publishing, issue 43, pp. 35-39, viewed 7 October 2012 < http://www. eurojournals. com/finance. htm>
Moos, KV 2005, ‘ Branding: It’s Impact on the Consumer Purchasedecision-making Process’, European Business School London, viewed 8 October 2012, < http://id. scribd. com/doc/16355275/Thesis-Branding-Its-Impact-on-the-Consumer-Decision-Making-Process-iTunes-Case-Study-Dec-2005>