Abstract

Master thesis, School of Management and Economics, Växjö University FED 323;
International Marketing Strategy, spring 2006 Authors: Eva-Lena Andersson,
Evelina Arvidsson, and Cecilie Lindström Examiner: Anders Pehrsson Title: Coca-
Cola or Pepsi; that is the question – A study about different factors affecting
consumer preferences Background: Today, advertising is a multi-billion industry,
employing hundreds of thousands of people and affecting billions of people’s lives
worldwide. Yet, seeing as advertising clutter has increased tremendously and is
more intense than ever, it is vital that companies differentiate themselves from
competitors by creating even more powerful, entertaining and innovative
advertisement messages, as well as sponsoring different events. Examples of such
companies that spend billion of dollars on marketing strategies in order to stay
key players in their industry are The Coca-Cola Company and PepsiCo. Purpose:
The overall purpose of this paper is to gain a deeper understanding of different
international and local factors affecting consumer preferences on a local market.
Method: A quantitative method was applied, and thus a questionnaire with 150
respondents on the local market was conducted. The respondents were divided
into three different age groups: ≤ 18, 19-34, and ≥ 35, and represent a diverse set
of people who are at different stages in their lives. Conclusions: International
advertising and international sponsorship respectively influence the local target
group in different ways, but they also affect international brand in that they have
an impact on brand image and brand equity. Moreover, depending on a person’s
age, consumers view brands differently, and thus have an effect on international
brand alone, but also in combination with international advertisement and
international sponsorship. Together, these factors influence the way in which a
brand is perceived, and consequently influence consumer preferences.