A second view holds that brands are “a shorthand for choice”, in the words of Martin Glenn, chief executive of United Biscuits, producer of McVitie’s. They make it easier for shoppers to cut through the information bombardment that rains down upon them. On this analysis, awareness matters more than loyalty or passion.
Apple’s computers, for example, may have a strong brand; but they command only a little more loyalty from buyers than do customers of less-ballyhooed makes of computer, argues Byron Sharp, a marketing expert at the University of South Australia. Their slightly higher tendency to stick with Apple probably comes from the hassle of having to convert to a different operating system, rather than love of the brand, he reckons. Harley-Davidson, a motorcycle company, is well known to have a devoted fan base. But in fact such fanatics account for only a tenth of its customers and just 3.5% of its revenue.
More: Untouchable intangibles.