Correlation Between The Brand Concept And Its Effect

Literature Review Name Institution Abstract Nowadays, product recalls have become a common phenomenon in the manufacturing industry around the world. Corporate organizations such as Toyota and Volkswagen have made shocking revelations in the recent past concerning defects in their products. These organizations represent just a tip of the iceberg in the world economy as other industries have also been forced to or voluntarily recall their products from the market owing to safety or health concerns arising from their products. Branding concepts play a significant role in diffusing or intensifying the damage done to both the brand’s image and that of the manufacturing organization. It is determinant of the response the customers have to a product recall and subsequent sales volume. The paper highlights the correlation between the brand concept and its effect on the customer’s response towards a product recall Literature Review Introduction The manufacturing industry, especially the automotive sector, is on the global spot due to the numerous malfunctions exhibited in recent revelations by some of the major industry players on their failure to meet certain production specifications and standards. Billions of dollars used in the creation of brands within the automotive industry are put at risk in such an occurrence and it is often up to the customers’ association with the specific brand concept marketed by an organization that determines the extent of the damage. Brand concepts thus play a significant role in maintaining a product’s competitiveness in the market as it will guide an organization in calculating its moves as it seeks to contain or manage the damage done by its failure to meet customer’s expectations and the set standards. Customers’ association to the brand concepts advertised for a particular brand of a product determines their reactions or attitudes towards the manufacturer’s recall of the product from the market and consequently, its sales volume and revenue returns for the organization. A growing sensitivity among customers around the world towards the suitability of products to their needs and safety concerns arising from their continued utilization has become a major concern for manufacturers globally. Corporate organizations face a more sophisticated market that demands quality products that meet international standards and embrace the individual’s or the societies’, and global concerns for the consumer’s wellbeing during the consumption. Environmental issues arising from the use of certain products are also a cause for concern in the manufacturing industry as both the regulatory organs on pollution and the public at large seem bent on ensuring or rather demand adherence to the set standards seeking to avert the negative impacts of climate change. Branding Concepts In a world economy where competition for a maximum market share and its capitalization is at an all-time high, it is of utmost importance for an organization to invest heavily on creating attractive or lasting identities for their products. A unique identifier for a particular product gives it an edge over its competition as the customers can easily relate, familiarize, or form a connection with the product. Besides, the external appearance of the product, the customer forms a lasting positive impression of the products in their minds which is integral to their decision-making when making purchases or shopping for a certain line of products CITATION Ome18 \l 1033 (Omer Topaloglu, 2018). The impression formed about a given product creates some form of loyalty to the product and enhances customer satisfaction on the acquisition of the same from the manufacturing center or outlets. Establish such a connection between the intangible features of the product to the customer requires an investment in a business production feature referred to as branding. The naming of a product, for example, constitutes what is referred to as branding but the business phenomenon entails the attachment of a variety of features such as symbols, shape, or color with which customers can identify a product. Intricate details of a product such as properties making it more efficient in carrying out its intended function also serve as identity traits with which the customers establish a connection with the product. A brand can thus be referred to as a combination of both the internal and external properties through which customers identify with a particular product CITATION Ann13 \l 1033 (Eilert, 2013). There are several aspects of a brand created by the manufacturers for the purposes of luring the customers in what is commonly known as brand concepts. Among these concepts include name, as already outlined, brand personality, association, image, or attributes among many others. Brand personality and attributes are integral in the automotive industry as it is the functionalism and luxurious traits that play the decisive role in the purchase of a particular brand of vehicles CITATION Ann13 \l 1033 (Eilert, 2013). The brand concepts of function against luxury will also determine the customers’ reaction or attitude towards an organization’s move to recall a brand. Subsequent changes in the sales volumes, revenue returns, and customer base or clientele are also dependent on the brand concepts with which the customers identify a particular brand of vehicles. A direct correlation exists between the outcomes of product recall to the two key branding concepts in the car manufacturing industry CITATION Ome18 \l 1033 (Omer Topaloglu, 2018). Product Recall Defective, substandard, or damaged products can be or should be recovered from the customers using them and from the shelves awaiting sale once an organization identifies the issue of concern CITATION Cas12 \l 1033 (Cassia, 2012). The system or methodology used in the recovery of such products is commonly referred to as product recall. The phenomenon has found its way into the mainstream media as a result of the numerous recalls by various industries around the world. The defective products or their specific issues are usually recognized at different stages of the production line ranging from suppliers, retailers, or even the end users who would voice their dissatisfaction over the products. The manufacture of products that do not meet customers’ expectation of fall below the regulatory set standards could pose various risks or threats to both the business organization and the end users alike. Defective automobile applications in a car could pose life-threatening challenges to the customers as they would result in an increase in road carnage or even minor injuries CITATION Cas12 \l 1033 (Cassia, 2012). The occurrence of such incidences would lead to increased spending by the manufacturing organization in form of compensatory payments for the damages or injuries incurred to the customers. The cost of risks is thus increased and cuts into the expenditure of such organizations and reduces the return on revenues emanating from the increased cost of production. The Consumer Products Safety Commission puts the economic impact of defective products in all markets to be at a whopping $700 billion annually CITATION CPS18 \l 1033 (CPSC, 2018). It goes without saying that defective products are a cause for major concern for all the stakeholders involved in the production, usage, and standards regulation for the manufacturing industry. The defective aspects of a product can be detected during its use or when new information about its inefficiencies or inadequacies is discovered or revealed. The shortcomings often parallel the safety guidelines on usage and their conformity to the set standards against external parameters such as the environment. The use substandard materials, tampering with the product’s set functions, and flawed production designs are some of the common reasons for the production of damaged or defective products in the car manufacturing industry CITATION Dan15 \l 1033 (Saleem, 2015). The outlined causes lead to the production of unsafe or substandard goods which necessitate the product recall from the market. Such initiatives to recover defective products from the market are usually taken by the parent organization licensed to manufacturer them or by the instituted regulatory organs within the government. Agencies such as the National Highway Traffic Safety Administration (NHTSA) and the Consumer Products Safety Administration Commission (CPSC) have the mandate to call for or advocate for the recall of a product once security or safety concerns on...