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View Poll Results: How much premium does a brand deserve?
5% 11 31.43%
5-10% 11 31.43%
10-15% 6 17.14%
15-20% 2 5.71%
>20% 5 14.29%
Voters: 35. You may not vote on this poll

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Old 11th August 2006, 17:35   #16
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Quote:
Originally Posted by devarshi84
where is the 0% option?
Exactly :-)

I wouldn't pay anything more for a brand name. I buy things I 'like' (not just cars) irrespective of how reputed the brand name is.
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Old 11th August 2006, 21:11   #17
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Everyone is claiming they dont care at all about brand name.........I think this is defenitely not entirely true.......come on, people, at least some of you have to admit.......

PS: Yes I do care about brand name to a certain extent, before anyone questions.
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Old 11th August 2006, 21:55   #18
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Its not the brand name that most people care for before buying a car. Its the car they like or have in mind.

If the buying experience is good and post purchase ownership experience is also good, there are chances the buyer may pay a little premium for the same brand the next time. But if the competitor gives a good deal, the weight of the brand doesnt help much.

Look at how ford raked in numbers for its fiesta. people still complain of ford's service.



But there are people (atleast 40% or more of the Indian car buying populace) that will pay a premium for a brand name.

Last edited by devarshi84 : 11th August 2006 at 21:58.
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Old 12th August 2006, 11:28   #19
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Why only for cars? In fact for all products, most Indian (and global) consumers would definitely like branded products and it is fact that they pay more - anywhere between 25%-2500% - for the brand. For all the problems that mercedes had with the C class, people still paying more for that brand. Look at clothing, shoes, watches, electronics, food items...

That day at the mall I saw a dirty splattered looking pair of jeans at a branded store. Sorry sir, not on sale - price of 8,900/-!!! and sir, that is intentional effect! For an item otherwise costing 2,000 at an equally prestigious branded store and 1,000 for normal brand? In front of me some woman picked up that pair and paid the cash!
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Old 12th August 2006, 18:06   #20
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[quote]
Quote:
Originally Posted by sandeep108
Why only for cars? In fact for all products, most Indian (and global) consumers would definitely like branded products and it is fact that they pay more - anywhere between 25%-2500% - for the brand. For all the problems that mercedes had with the C class, people still paying more for that brand. Look at clothing, shoes, watches, electronics, food items...
well said. i totally agree with it. because "Brand" is not something which comes overnight. all d strong brands in the world(may it be car r a simple FMCG product) dint emerge overnight and lots of effort lies inside developing the "brand equity". trust in the brand matters a lot. i agree that i wont pay entirely for the brand and product also matters to me a lot. brand doesn apply only for premium products. even d low cost products have their brand ( trust may b in value for money r anything). i'm not telling we dont use unbranded products. v do use sometimes. but when d product is really crucial and important to us(take an eg of buying a premium car), how many of you will be ready to try a damn new brand? (assumption - new product have superior features etc). right from FMCG products like toothpaste, soap, shampoos(how many of you not using brands like HLL, P&G...) to cars, brand is the DNA for a business and it states and stays for what product/service it produce. bcoz brands are associated with the perceptions

Last edited by Rekha : 12th August 2006 at 18:13.
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Old 12th August 2006, 21:25   #21
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Its can't really be put in %age terms.... how do you decide the fair value over which you are paying the premium.

A hyundai car is certainly not a fair value benchmark just b'coz its in the same segment.

Every car is unique... you pay for the car not for the brand. The car is probably worth that extra amount b'coz that brand built it.

A honda city seems to be a very overpriced car simply b'coz of the 77bhp engine, but in terms of practicality that car stands out.. the only reason its price has been accepted.
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Old 12th December 2011, 19:20   #22
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Default Re: How much premium would you pay for a brand?

Brand would be directly associated with two key characteristics - Image and Quality. Brands such as Toyota and Honda represent quality with vehicles such as the Innova and their premium sedans. While brands such as the Audi and BMW would be first associated with Image (Quality is perceived to be a given).

Both these type of brands would enjoy a premium however the difference would be that the premium would be based on a model basis for mass brands (read Toyota and Honda) and for the entire range in terms of high end brands (read Audi and BMW)
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Old 12th December 2011, 21:49   #23
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Default Re: How much premium would you pay for a brand?

How long is a piece of string?
How much premium one would pay for a brand is entirely relative and is directly proportional to the ' love quotient' that such a brand inspires in an individual.
Some brands transcend being mere brands and become 'love marks'. One cannot put a number on it that easily. It depends entirely on the current 'want' state which defies all logic!
For example some of us would certainly pay good bucks for brands like Serengeti Drivers Sunglasses, Patek Philippe, Panerai and other such brands of watches, Polo and Dockers Khaki trousers, Lacoste and Greg Norman T shirts, Levi's Jeans, Church's shoes, RM Williams boots, and Borsalino hats, Charvet Ties, Charles Tyrwhitt Shirts, Richard James suits and the list goes on and on and on!
One can easily get other equally great products which perform the function desired of them admirably and 'serve the purpose' very well indeed, but what's that extra pizzazz that the particular brands and objects of desire have, that makes one get all gooey inside and want to do a quick draw McGraw on one's wallet? It can only be blind, unreasoning, uncontrollable love!
I believe the same applies to cars and vehicles - like Jeremy Clarkson says, some machines just have 'soul' and others simply dont! That's why people would mostly prefer a Merc to a Lexus or an Aston to a Veyron because you buy these things with your heart and not your head! Love is blind they say and it certainly is the case with brands one loves because you can forgive them their foibles and still buy them, sometimes for seemingly exorbitantly high prices.
There's a great big grey area which no analyst can explain. That's why for no apparent reason Kolaveri Di is such a super hit when its lyrics are pretty silly overall! Heck! Even I catch myself humming it now and then!
This is only an opinion, not intended as a lecture so help me god! Cheers!
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Old 12th December 2011, 23:08   #24
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Default Re: How much premium would you pay for a brand?

My $.02
As someone mentioned that it is more about the product than the brand.

I am willing to pay up to 15% premium on good products (strictly talking about cars). For example, if I am getting a good sedan from say maruti for 8L, I do not mind paying 15% extra and buying a ANHC for 9.2 L instead (Bangalore OTR price). Honda tried charging heavy premium for Jazz and it was a market failure despite the car being fantastic.
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