The Effect of Knowledge of Asian Brands on the Purchase Decisions of Young American Consumers on Products from China, Japan, and South Korea

INTRODUCTION The U.S. market has been a constant target of many firms around the world for the last half century, in particular Asian firms. Today, few people deny that a growing number of Japanese firms have successfully penetrated the American market either by direct investment or export. Japanese brands such as Sony, Toyota and Mitsubishi have become household words to average American consumers. In the 1960s, Korean firms followed the Japanese approach, and the U.S. market has been a lucrative one for the last 30 years. Some firms have attempted to make their products or brand images appeal to American consumers. These include Hyundai automobiles (Excel and Sonata), Samsung electronics (TV sets and VCRs), and Daewoo computers. There are a limited number of Korean brands recognized in the U.S. market. Many Korean business firms in the past have opted for OEM entry into the American market by selling unbranded products--color TV sets, microwaves, and VCRs--to Sears, Amana, Emerson, Nike, and others. The strategy may have been profitable for a short time but the absence of brand equity and franchise with consumers can be seriously detrimental in the long run, particularly in the U.S. market where so many brands are available in almost every industry. The latest player from Asia is China, which entered the American market in the 1980s. In spite of their lack of outstanding brands, their entry is formidable. Everyone in the American market feels their presence. This study is to investigate the status of Asian brands in terms of brand recognition by young Americans. Young consumers in America are attractive targets for automobile and electronics sales. First, they establish family earlier than their Asian counterparts. American males marry at 22 while Asian males marry at 26 on average. Second, there are 72 million American children and teens aged 18 or younger, comprising 28% of the total population. Psychographically this huge generation more readily will accept mixed races, nontraditional families, and gender-bending sex roles. They are likely to accept foreign brands more readily than did generations in the past. Third, a young consumer is a key element in targeting to build a brand. The brands that make an impression on the young are often selected for them by adults and reach them through their parents. Habits and loyalties tend to be passed down. Targeting young consumers can result in a long-term relationship. BRAND NAME AND BRAND LOYALTY A brand name identifies the source of a product and differentiates the product from its competitors, and brand names do affect product demand (Sullivan, 1998). Brand awareness makes it easier for consumers to identify products. A brand's reputation for quality gives consumers important information about that product. A brand can possess an appealing image that many consumers cherish. Creating brand loyalty is the biggest asset marketers like to pursue. Think about the value of The Coca-Cola brand which has the highest brand equity in the world. Fortune magazine calculated the brand equity of Michel Jordan at age 35, and his name was valued at $10 billion (Fortune). In order to create brand loyalty, marketers have three goals: brand recognition, brand preference, and brand insistence (Boon & Kurtz, 1998). Brand recognition, making the products familiar to the public, is a company's first objective for newly introduced products. Advertising offers a good way to achieve consumer awareness. In 1997, some manufacturers spent $2 million for a 15-second commercial in the Superbowl. Brand preference is the second stage, where consumers rely on previous experience with the product purchased over competitors' products. Brand preference prevents buyers from shopping elsewhere. The ultimate stage in brand loyalty is brand insistence, in which consumers refuse to accept alternatives and search extensively for their favorite brands. …