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Home-Bias-in-Consumption Based on Different Brand Preferences in the East and the West of Germany

Listed author(s):
  • Michael Bahles
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    In international macroeconomics, there is a specific concept explaining deviations in international trade relations showing that countries have a bias and a strong preference for the consumption of their home-country goods. This article presents an application of the concept on brand preferences in West and East Germany, where a home-bias-inconsumption has been observed for the East of Germany. It is the first application of the concept on the territory of brand preference that explains the strong rootedness of the Eastern German consumers to their regionally known and familiar brands. The goal of the article is to elaborate more deeply the differences in attitudes towards brands between Eastern and Western German consumers. The main research method is secondary analysis of the data collected in two large research studies: (1) “West-East brand study”, and (2) “Consumer Analysis”. The results of the presented study have interesting managerial implications in brand management, showing that brands should utilize their local rootedness.

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    Article provided by University of Economics, Prague in its journal Central European Business Review.

    Volume (Year): 2014 (2014)
    Issue (Month): 1 ()
    Pages: 7-12

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    Handle: RePEc:prg:jnlcbr:v:2014:y:2014:i:1:id:69:p:7-12
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    1. Veenis, Milena, 2011. "Cola in the German Democratic Republic. East German Fantasies on Western Consumption," Enterprise & Society, Cambridge University Press, vol. 12(03), pages 489-524, September.
    2. Narcissa Balta & Juan Delgado, 2009. "Home Bias and Market Integration in the EU," CESifo Economic Studies, CESifo, vol. 55(1), pages 110-144, March.
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