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MacBytes
Nov 7, 2004, 12:18 AM
Category: News and Press Releases
Link: The Decline of Brands (http://www.macbytes.com/link.php?sid=20041107011829)
Posted on MacBytes.com (http://www.macbytes.com)

Approved by Mudbug

iMeowbot
Nov 7, 2004, 12:50 AM
Wow, so a brand is worthless if doesn't represent something real? Genius!

winmacguy
Nov 7, 2004, 01:11 AM
the only real inaccuracy in the article was the comment about Apple having to continune to bring out new versions of the iPod to continue to fend off the competition and also that it had to drop its prices due to competition. Other than that a very accurate article. I also liked
" (The iPod has made a lot more people interested in Apple than Apple made people interested in the iPod.)". Very true and hopefully this will continue long into the future along with a whole new appriciation of OSX from PC switchers.

palusami
Nov 7, 2004, 01:25 AM
"The aristocracy of brand is dead. Long live the meritocracy of product."

A brand should only be as good as the quality and performance of the product! In some sense, it shouldn't be a surprise that the power of the brand is starting to decline. A customer is likely not going to buy a product after you've screwed them over a few times. Not really my idea of building customer/brand loyalty. :(

hob
Nov 7, 2004, 02:42 AM
maybe it's just different in america - as that's the country the article's referring to, but personally I do have quite a high sense of brand loyalty:

I generally buy:
Apple computers (of course)
Canon cameras
Starbucks Coffee
Marks & Spencers socks
Food from sainsburys
Walkers crisps
Dell computers (if I have to buy a pc...!)

And many more examples, and it's been that way for the last 5 years - (being only 18 now - that's about as long as I've had to be able to sway my parents choices when buying for me!)

That being said, I will happily flip between McDonalds, Burger King and KFC - but never compromise with the coffee - if I'm in a station where there's a Costa, I'll actively seek a Starbucks or just go without - I don't know why, maybe there's something addictive in there...

Hob
(now addicted to starbucks)

MacDawg
Nov 7, 2004, 06:54 AM
Brand used to equal value and quality
Now brands are not giving value and quality in order to compete

When people were loyal to brands, it was because of the value and quality associated with that brand. However, if the brand becomes comfortable with its position and quality slips, then a lower cost or better value alternative becomes available. People switch because the value is better.

Cooknn
Nov 7, 2004, 08:56 AM
Because of the internet and message boards I was much more educated regarding my recent purchase of a new 6.1 Surround speaker system for my home theater. I was looking for the most bang for the buck and I went against my brand loyalty with the purchase. The speakers are from a company called HSU and they sound incredible :eek: Without the internet message boards and on-line reviews, I would have never considered putting speakers with an HSU logo on them in my living room. I would have been much more comfortable with Bose, Pioneer, or Yamaha. All I can say is, I'm glad I did ;)

Blue Velvet
Nov 7, 2004, 09:07 AM
Brand used to equal value and quality
Now brands are not giving value and quality in order to compete

When people were loyal to brands, it was because of the value and quality associated with that brand. However, if the brand becomes comfortable with its position and quality slips, then a lower cost or better value alternative becomes available. People switch because the value is better.

Furthermore, certain brands have become more common esp. in fashion as their willingness to lend their logo to virtually anything devalues their brand statement e.g. Chanel, Gucci...

Perception of formerly exclusive brands is further cheapened by the ubiquity of cheap knock-offs & copies purchased by consumers that wish to have some of that 'magic' and aura that the brand confers.

Burberry clothing or $50 Rolex Oyster, anyone?

Abstract
Nov 7, 2004, 10:40 AM
Exactly.

They need to offer exclusivity with their products, and yet some companies get to a point where they want to get bigger......sell more products, make more money, or at least get into the head of the common person that their brand is a big deal in higher-class social circles. Of course, that just makes them common, which isn't cool.

The popularity of brands is a cycle that rises and falls. Apparently, the brand is starting to fall, according to the article, but I'm not sure if that's actually true. And even if the article is accurate (again, not sure if it is), this is just a cycle, and the brand will be back in power in 5 years or so. People will stay loyal to a brand because of history. If recent history with a company pisses off a loyal customer, they'll look elsewhere, but you can't take the good history away, and you may be able to lure old customers back. Again, this may happen in 5-10 years, but it happens.

dsharits
Nov 7, 2004, 10:42 AM
At least Apple hasn't lowered their standards. :)

Daniel

mikeyredk
Nov 7, 2004, 02:47 PM
At least Apple hasn't lowered their standards. :)

Daniel

actually they have lower prices on powerbooks i remember the time when high end powerbooks were at 3200 for a 15" where the current powerbooks are at 2800 for a 17"

dsharits
Nov 7, 2004, 05:17 PM
True, but they have not given in to selling sub-par hardware. Other companies that hold a large part of their particular market (such as Dell) sell low-quality hardware to boost their profit. Apple has not done this. They continue to follow Steve Jobs' original goal of revolutionizing the computer industry. In other words, Think Different!

Daniel

MacDawg
Nov 7, 2004, 06:54 PM
True, but they have not given in to selling sub-par hardware. Other companies that hold a large part of their particular market (such as Dell) sell low-quality hardware to boost their profit. Apple has not done this. They continue to follow Steve Jobs' original goal of revolutionizing the computer industry. In other words, Think Different!

Daniel

Quite correct.
In other words, the Apple brand still has value.
It isn't always about price, but value.

macnulty
Nov 7, 2004, 07:08 PM
I for one am absolutely shocked that consumers shop for the most bang for the buck or for the best value. Shocked I tell you, shocked.

dsharits
Nov 7, 2004, 07:57 PM
I for one am absolutely shocked that consumers shop for the most bang for the buck or for the best value. Shocked I tell you, shocked.

Especially in the computer arena, where specs may look great, but can be very deceiving. A great example of this is the Celeron systems. They look like awesome packages, but they can never compare to the P4 systems (which can never compare to a G4 or G5 :D ). Mainly companies like Gateway try to resurrect the Celeron technology, and people go for them. They fail to realize that speed is more than MHz, because it is advertised to them that way.

Daniel

wdlove
Nov 8, 2004, 10:56 AM
I still recognize brands, for the most part they still represent quality. When shopping we look for certain brands, but also store brands because of the savings. Such as Costco has its own, have found their fruits, meats, fruits, and vegetables to be of high quality. It's all about getting the best value for the dollar. When it comes to Coke, they are the ones that always have specials.

Seanb23
Nov 10, 2004, 04:04 PM
Especially in the computer arena, where specs may look great, but can be very deceiving. A great example of this is the Celeron systems. They look like awesome packages, but they can never compare to the P4 systems (which can never compare to a G4 or G5 :D ). Mainly companies like Gateway try to resurrect the Celeron technology, and people go for them. They fail to realize that speed is more than MHz, because it is advertised to them that way.

Daniel

You have got to be kidding. While I appreciate my g4 powerbook for what it is, I have the opportunity on a regular basis to observe identical high-end audio software run on high-end PC notebooks alongside the powerbook, and, believe me, the current g4s are left in the dust. My estimate is that they can run about HALF as many gnarly cpu-intensive apps at once comfortably as compared to the Pentiums...and, yes, the code is well written for both platforms. If Linux ever catches up with OSX for what I do, I'll abandon Apple in an instant so I can use truly fast hardware with no viruses, that is, if Apple does not make some serious progress with it's mobile hardware suppliers, NOW.

Sorry, I too like Apple products for a number of reasons, but I'm not blind to reality.

SO, APPLE, what IS the roadmap for those G5 or Dual-Core G4 Powerbooks ?

tick,tick,tick...
:eek: