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Should consumers stick to known brands?

Johannesburg, 25 Nov 2010

After many years of intensive reliance on IT infrastructure, the domestic technology market is still driven by brand-conscious consumers and this is a decision that costs local consumers millions per year.

So says Anton de Jager, a managing member at Core Networks, who argues that this, in itself, is not necessarily an issue; but when this consciousness blinds one to the potential value of an alternative product, it then becomes a major problem.

“The issue here is that when acquiring technology; consumers often seem to discard their discerning sense of judgment and simply go with a brand they recognise. This familiarity equates to a 'safe' choice for consumers,” notes de Jager.

He also argues that when it comes to the procurement, integration and application of technology, the time has now arrived for consumers to seriously consider whether or not there is genuine value in known brands.

“Try to remember what made the specific brand famous in the first place and ask the question - is that what is being purchased? Or, is it just another product that was either acquired or manufactured to capture another portion of the market? Is this not a desperate attempt to stay alive in a tough competitive market?”

A cowardly approach

De Jager points out that on a regular basis, vendors simply venture into a new market and actually pull it off, adding that they manage to break into new markets simply by flaunting their names or brands.

“Slap a brand on a networking switch and there is a long queue of South African consumers with large networks standing, ready to invest.”

decision makers allows them to make safe choices to cover their bases and ensure passage on the gravy train.

“These people should be fired on the spot; if only for having a lack of foresight and ultimately costing their company millions, on cost of ownership and performance loss over time.”

De Jager urges would-be investors to adopt a more vigilant approach to decision-making and determine whether that brand has a track record of reliability and known expertise in the area of technology in which they are trading.

“It is really time for the consumer or would-be investors in technology to take a step back and not be blinded by a brand name. Try to solicit as much information about a product or service and consider these facts before making a decision.

“Rely on testing forums, preferably that which is not sponsored or paid for by the vendor,” says de Jager.

Alternative emerging brands

In as much as it is true that established brands are often first choice among consumers, he adds, the fact is that there are instances where, by comparison, alternative emerging brands have an even more established track record and level of success.

He explains that this is because, in many instances, these alternative brands are developed and introduced by companies with the expertise required to operate in specific areas in which other established brands are simply 'trying their hand'.

“In addition, alternative emerging brands have the required connections with support services, suppliers and other key role players within the channel to ensure that they can provide the level of quality and quantity.

“This means that they have the resources to offer a more focused approach to service delivery and customer satisfaction. Other benefits include uncomplicated channels of communication and user-friendly warranty systems,” says de Jager.

He also explains that there are less known emerging brands that have introduced campaigns to highlight strengths and future offerings, and have the technology to back it up.

“This has taken place long before established brands copped on to this strategy and used the same tactic, claiming it as their own”.

Effectively, de Jager concludes, the nature of business in today's market and the need to keep up with technology means that would-be investors in products tend to adopt a 'sheep-like' approach and simply follow what others have done, or what they have done in the past.

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