Are trademarks good for consumers?
Most would feel that trademarks are only of value for businesses or organisations. However, it may be worth considering whether trademarks are good for consumers.
One of the reasons that countries adopt laws supporting trademarks is that appropriate trademark laws can have an important function for consumers. How is this?
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"... very capable ..."
T. McCullagh, Managing Director, Southside People
"... Can trademarks have functions apart from the name? ... "
Functions of trademarks for consumers
Can trademarks have several functions? Apart from the name itself?
When trademarks are used by business, the trademark can convey a certain style of business or a particular quality of delivery from the owner. Once a consumer buys goods under a trademark, the consumer can decide whether the goods under the trademark are of a suitable quality for them to buy the goods again. This can help consumers to repeat the experience and to obtain an experience of the reputation of the supplier.
Consumers can link associations in their minds with trademarks.
Trademarks help consumers in making purchasing decisions in several ways:
- trademarks can associate goods with quality, for example Ford v Mercedes,
- trademarks can be linked with price points in the minds of consumers, for example Selfridges v TESCO,
- trademarks can indicate a type of service offering that is different for consumers, for example RyanAir v British Airways,
- trademarks can function as a badge of origin, assuring a consumer the goods or services come from a particular supplier, for example Heinz v Batchelors beans,
- trademarks can give consumers confidence in delivery, for example DHL v Fed Ex,
- consumers can prefer goods or services from particular suppliers, for example Hilfigger v Levi, and
- trademarks laws seek to reduce the possibility of confusion as to the sources of goods or services for consumers.
So you can see trademarks can have many functions. So a consumer can get to know the "promise" behind a trademark, in the sense of how the consumer is regarded by the particular supplier.
"... In the minds of consumers, a trademark can convey a "promise" ... "
An example of a trademark "promise"
A consumer buying a service from say British Airways can have a certain expectation of service, or pricing, or in the delivery of that service. Likewise, a consumer buying a service from RyanAir also can have a certain expectation of service, or pricing, or delivery of that service.
The service can be similar, namely delivery of air travel services. However, the consumer can get to know what is being offered, or "promised" under each badge or trademark. The consumer's expectations can be different in each case. The quality of service can be different in each case. The price points can compete on different levels. The airports offered can also differ in each case.
On account of the availability of alternative competing services, the consumer can select one that meets their needs and expectations to a certain extent.
Another example of a trademark "promise"
In the field of retail services, consumers can experience differences between the "promise" underlying the trademark of say Marks & Spencer, and that of Sainsbury. The brand owner seeks to build and use its brand to differentiate itself in the minds of consumers.
"... If there were no trademarks ... "
What if trademarks were not supported in law?
If trademarks were not supported in law, the consumer would not be able to rely on brands as a source of origin. Counterfeit goods and services would be more abundant. When buying goods or services, the consumer would not be sure that they were getting the "value" or "quality" offering under any brand.
If a business could not develop its reputation under a trademark, what would be the point of advertising or marketing?
The consumer would be likely to lose out in terms of his or her capability of selecting goods from a supplier, and knowing they could rely on that supplier's reputation as being what was expected. If a consumer could buy a Mercedes car that was an imitation, what reliance could they place on how long it would last, on the availability of appropriate spare parts, on the financial standing of the supplier, on service, or on durability.
"... Consumers can associate trademarks with reputation ... "
So consumers need to be able to have trademarks that they can count on.
They need to have some assurance that the supplier is genuine, or that the goods are genuine. Otherwise, they would lose confidence in the goods or services. In the absence of trademark laws, it would be very difficult to ensure you could be buying goods with a "reputation", or from a "reputable" supplier. This may not matter in the case of some goods, but over time, and over a wider range of goods, the role of trademark laws becomes more material. Perhaps this is one of the reasons why investors also like to see trademarks registered - so the title to the badge of origin is established, and the organization can develop its "promise" and build custom around its reputation.
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