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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, 07:30   #1
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Default How much premium would you pay for a brand?

Following up on another thread on the Civic, i want to start this poll. The question is given most things equal - performance, build quality, size, after sales support etc.

For example:

Hyundai has the elantra that is quite feature rich, has decent sized interiors, decent build quality and is priced sub 10L bracket.

Honda Civic is sort of got similar features, maybe a marginal increase in engine performance but got a price of 12.7L on road in bangalore.

For argument sake, lets put these cars as equally matched - feature and performance. So it boils down to this question:

Would you pay a premium of 2.7L+ (>25%) for a Honda brand?
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Old 11th August 2006, 07:32   #2
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My answer is not more than 10%..
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Old 11th August 2006, 09:16   #3
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I wont mind paying 25% but not just because its Honda. Itís also because only few of the Civics will be seen on roads initially. So that craze is what will help justify the premium.
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Old 11th August 2006, 10:54   #4
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The point is that mostly all is not equal. You cannot compare Hyundai to Honda/Toyota just yet. Maybe in a few more years... Driving experience of accent/city, elantra/civic-corolla, santro/zen simply not the same. So you cannot say that people are paying 25% premium for brand alone.
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Old 11th August 2006, 11:19   #5
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It depends on the brand. So, while I would gladly pay around 20% for Hondas and Toyotas over Hyundai, I would pay a lot more than 20% (if I can afford to) for Lexus, BMW and Mercs.
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Old 11th August 2006, 11:46   #6
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its all in the BRAND Name
,performance,features,comfort et al is one bracket ....things like Brand Loyalty,vanity value,the new Car feel go hand in hand with the above.

thing is when u have Santro at home ....and r out to buy another hatch ,u will drive home a Getz Kyunki why experiment with another brand , u think risk is less here .

same is the case with guy upgrading from Zen to Swift.....

and ya kyunki i have a Honda City(ohc) at home ......and iam more than happy with it.....thats it....all my Neurons would convince me to go buy a Civic .

As to what Premium -To quantize it ....its very sporadic & subjective ......u can't give no. here.

"its all what u pay is what u get" funda would convince me Civic is Better than ..elantra.....and iam happy chap driving home......that all that matters.

u have a lot of people buying Lemons like Safari's,esteem's....and what not .....but they r happy with it.....To each there own
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Old 11th August 2006, 11:56   #7
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where is the 0% option?
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Old 11th August 2006, 12:06   #8
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None actually. Its the Product that matters to me not the Brand.
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Old 11th August 2006, 12:48   #9
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Quote:
Originally Posted by normally_crazy
None actually. Its the Product that matters to me not the Brand.
Same for me .. I selected the lowest % available.
For example, it could well be that the product that appeals to me in the C segment is a Baleno, whereas in the D segment I choose an Accord over the Embera. Some people may think here I am going for a brand, but I would not be doing so.
Whichever product satisfies most of the criteria I have, at a given price point, will translate to VFM for me. For some, one of those criteria could be exclusivity and/or image .. for these buyers even a >20% premium would translate to VFM .. and that is fair enough.
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Old 11th August 2006, 12:54   #10
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I wouldn't pay a premium solely for a brand name.

But if a brand has evolved over time and promises certain virtues which are important to me, then i would pay a premium for the same.
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Old 11th August 2006, 12:58   #11
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No premium for a brand name. Of course if the car itself is better engineered, then a premium is justified. Thus, a marginal (say 5%) premium is justified for an octavia over an optra or elantra, but not more.

I certainly wouldnt pay nearly 3L more for a civic over an elantra (I actually quite like the elantra! )
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Old 11th August 2006, 13:26   #12
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Quote:
Originally Posted by devarshi84
where is the 0% option?
Forget the 0%, where is the negative option? Thats the premium FIAT is claiming and I honestly I am not complaining :-) since I couldnt have dreamt of an adventure for 6L otherwise
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Old 11th August 2006, 14:39   #13
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guys,
just a doubt - is there no difference beween evolving brand and established brand atleast as far as car manufacturers are concerned? while answering how much a brand deserves, shouldn that criteria be taken into account?

Last edited by Rekha : 11th August 2006 at 14:42.
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Old 11th August 2006, 15:04   #14
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I'm not ready to pay just for the brand. I shall pay premium based on the product not brand.
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Old 11th August 2006, 15:31   #15
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Quote:
Originally Posted by sbasak
I'm not ready to pay just for the brand. I shall pay premium based on the product not brand.
Hey...would you be willing to pay same price for Civic if it came from Maruti Udyog..or Tata?
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