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A Brand Lesson from Kia

Last year I ran across an interesting print ad for the new Kia SUV. The ad featured a face-on view of Kia. Importantly, the grill did not feature the Kia logo.

At the bottom of the ad were grills from different brands: Kia, Mercedes, Land Rover, BMW, Infinity, and Lexus. The ad implied that the only real difference between the Kia SUV and the other SUVs was the logo on the grill.

I couldn’t resist a little experiment. My trusty assistant, Sandra, scanned a different grill on six images of the SUV in the advertisement. The result was six different images, each with a different grill.

I then printed these images on separate sheets of paper and randomly distributed them to 18 people in the office. Each person received only one image. I asked each person a simple question: How much would you pay for the SUV in the picture?

My goal, of course, was to test relative brand value. Each person was looking at the exact same SUV as their officemate. The only difference was the logo on the grill.

Each SUV was tested three times (18 people divided by six SUVs). I then averaged the dollar amount that each would spend.

Here are the results. The average price people would pay for the Kia was $21,000. At the other end of the scale, the average price people would pay for the Land Rover was $58,333.

$21,000 Kia
$35,000 BMW
$40,000 Infinity
$41,667 Lexus
$45,000 Mercedes
$58,333 Land Rover

Same car. Different grills. Dramatically different price points.

Of course, this is a small sample, but I think there is an important takeaway. When looking at the exact same SUV, people were willing to pay three times the amount for the super-brand, Land Rover, and its brand nuances, than the lesser brand, Kia.

Is there a lesson there for colleges? I think so. Schools that have built their brand over the years will have a distinct advantage in today’s market.

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