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7. Voytovych R.V. Vplyv hlobalizatsiyi na rozvytok suchasnoho svitu [on-line]: http://www.vidkryti-ochi.org.ua/2013/06/blog-post.html.
8. Hezalov A.A. Hlobalyzatsyya kak sotsyal'naya transformatsyya / Vek hlobalyzatsyy - 2012. - № 1: http://www.intelros.ru/readroom/vek-globalizacii/-1-9-2012/14394-globalizaciya-kak-socialnaya-transformaciya.html.
9. Hryhor'eva A.V. Konverhentsyya ekonomycheskoho razvytyya natsyonal'nykh ekonomyk v uslovyyakh hlobalyzatsyy [on-line]: http://econf.rae.ru/pdf/2011/12/813.pdf.
10. Palahnyuk Yu. V. Zasnuvannya ta etapy stanovlennya Yev-ropeys'koho Spivtovarystva / Yu. V. Palahnyuk // Svitova ta yevropeys'ka intehratsiya : [navch. posibnyk]. - Mykolai'v : Vyd-vo MDHU im. Petra Mohyly, 2008. - С. 94-120.
11. Prychyny ta naslidky yevropeys'koyi intehratsiyi [on-line]: http://stud24.ru/relations/prichini-ta-nasldki-vropejsko-ntegrac/252048-742340-page3.html.
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13. KOF Index of Globalization [on-line]: http://globalization.kof.ethz.ch/.
14. Dreher, Axel (2006). "Does Globalization Affect Growth? Evidence from a new Index of Globalization". Applied Economics 38 (10): 1091-1110.
15. Dreher, Axel, Noel Gaston and Pim Martens (2008), Measuring Globalisation - Gauging its Consequences (New York: Springer).
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Надійшла до редколегії 10.05.15
А. Харламова, канд. экон. наук, доц.
Киевский национальный университет имени Тараса Шевченко, Киев, Украина, А. Искра, экономист
ОЦЕНКА СТЕПЕНИ ГЛОБАЛИЗОВАНОСТИ СТРАНЫ В АСПЕКТЕ КОНВЕРГЕНЦИИ И ИНТЕГРАЦИИ В МИРЕ
Анализ подходов и оценок процессов интеграции и конвергенции, скорректировал цель исследования в направление попытки оценить степень глобализированности стран альтернативным (авторским) подходом с учетом текущих свойств и тенденций этого процесса. Основываясь на примерах оценки степени глобализации индексами "European Integration Index for Eastern Partnership Countries" и "KOF Index of Globalization", нами был расширены имеющиеся методики и разработан альтернативный индекс степени глобализированности страны, основанный на модели совершенно глобализированной и неглобализованой страны. Альтернативный индекс глобализации и KOF Index of Globalization были сравнены между собой с целью анализа практичности использования каждого из них.
Ключевые слова: глобализация, индекс, интеграция, конвергенция, European Integration Index for Eastern Partnership Countries, KOF Index of Globalization.
G. Kharlamova, PhD in Economics, Associate Professor National Taras Shevchenko University of Kyiv, Kyiv, Ukraine,
A. Iskra, economist
THE DEGREE OF STATE'S GLOBALIZATION ASSESSMENT IN ASPECTS OF CONVERGENCE
AND INTEGRATION IN THE WORLD
Analyses of approaches and methods to assess processes of integration and convergence adjusted the direction of the goal of the study - to assess the degree of globalization for a state by means of alternative (authors') approach, taking into account current characteristics and trends of this process. Based on the known techniques to assess the degree of globalization as "European Integration Index for Eastern Partnership Countries" and "KOF Index of Globalization", we have expanded the existing methodology and developed an alternative index of the degree of globalization of the country, based on the model of perfect globalized and fully not globalized countries. Alternative globalization index and KOF Index of Globalization were compared to analyze the practical efficiency of each. Comparative characteristics of the alternative globalization index of the country and KOF Index of Globalization confirmed the practical efficiency and simplicity in estimation for authors' index that is based on evidence and giving adequate evaluation. The development of new methods in this area is in demand as never before. We have taken the first steps toward an alternative approach analysis of the phenomenon of globalization.
Keywords: globalization, index, integration, convergence, European Integration Index for Eastern Partnership Countries, KOF Index of Globalization.
Bulletin of Taras Shevchenko National University of Kyiv. Economics, 2015; 6(171): 73-77 DOI: dx.doi.org/ 10.17721/1728-2667.2015/171-6/13 JEL H7, O1 УДК 339.5
L. Baltador, PhD in Economics, Assistant Professor Faculty of Economics Department of Management, Marketing, Business Administration "Lucian Blaga" University, Sibiu, Romania
SUSTAINABLE DEVELOPMENT:
THINK GLOBAL, ACT LOCAL - A CASE STUDY IN IGHIU, ROMANIA
Sustainable development refers to the fair usage of the resources, so that future generations can be able to satisfy their needs, as well. For this to happen, a new paradigm on how economic development is being carried out is imperative. Thus, international treaties on mitigating Climate Change, bio-diversity and fighting poverty and other such matters have been signed by most states. At local level, the problems appear more concrete, and thus, the practical solutions are (or appear to be) sometimes in opposition to what is needed for a sustainable way of handling things. This paper aims to present an instrument, which can be used by the local authorities to overcome this impediment. The Integrated Management System (I.M.S.) aims to contribute to a better communication between the local stakeholders, citizens and local authorities, which, in the end, can lead to a more sustainable future. For this, we will analyze first steps towards implementing the IMS in the village of Ighiu, Alba County, on the basis of the minimum requirements developed by the Champ project.
Keywords. Sustainable development, Integrated Management System.
Introduction. The new approach of economic development came about after the second half of the last century. It was visible then, that intensive or extensive economic development took its toll, in the long run, on the en-
vironmental system and on the social welfare. Biodiversity loss, the hole in the ozone layer, natural disaster, overpopulation, on the one hand and increase of social inequalities, hunger and illness, on the other, were linked to
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the kind of economic development that produced ever more goods. So, the international community came together and tried to find some solutions to these problems. Thus came about the concept of sustainable development, defined by the World Commission on Environment and Development as being "development that meets the needs of the present without compromising the ability of future generations to meet their own needs" (Our Common Future, 1987). As this report stated "it is not a prediction of ever increasing environmental decay, poverty, and hardship in an ever more polluted world among ever decreasing resources. We see instead the possibility for a new era of economic growth, one that must be based on policies that sustain and expand the environmental resource base. And we believe such growth to be absolutely essential to relieve the great poverty that is deepening in much of the developing world." Maurice Strong, former Secretary-General of the Rio Summit, remarked in 1998 that sustainable development "has been embraced by people throughout the world."
In The European Union, one of the most committed entities towards sustainability, developed documents and strategies that should help implementing sustainable growth and development in the member states (EU Strategy on Sustainable Development, Lisbon Strategy, Lisbon Treaty etc). In Romania, as well as in other countries, the political consensus was reached without many debates or a thorough analysis of what can be done. So, strategies and legal regulations have been established that insisted on sustainable development. But, the results were not meeting the expectations. There are probably many reasons for this (the targets were too high, the lack of incentives to change, political compromise and many more). Another explanation may be the lack of understanding of specific, local problems. The local level is the first one in which the principles of sustainable development are being put up to the test. So, there might be short term effects which overlap on the long term goals.
The local authorities and sustainable development. Although, in general, no one can argue against the need for sustainable development, from the local level, the perspective might be different. Not against it, but concerning the means, opportunity and costs. The action plan "Local Agenda 21" or the "Aalborg Commitments" are but a few of many initiatives aimed to assist local authorities in implementing sustainability. Local Agenda 21 consist in developing an action plan through dialog, consultations with citizens and stakeholders until reaching consensus (Bundes-ministerium, 2002). The Aalborg Commitments have been decided upon by the international community and consist in 10 main interests themes: Guvernance, Urban management, Natural common goods, Responsible consumption, Planning and design, Better mobility, Local action for health, Sustainable local economy, Social equity and justice, Local to global (Aalborg Charter, 1994).
Citizens come with their problems to the local authorities and expect to get results to individual or collective concerns. This concerns might need a reallocation of the (always) scarce resources from one, somehow abstract purpose, that of sustainable development, to another more stringent or short term goal. It is not an easy task to make citizens understand, for example, why they should accept to give up a job, because this activity is very polluting. The interests of different stakeholder might be and often are very contradictory, unless all understand that it is for the greater good. The Integrated Management System aims to be a tool for the local authority for exactly this situation.
The Integrated Management System (I.M.S.)
The Integrated Management System consists in several steps that one local authority should do in order to bring
together all local stakeholders and to promote productive communication. It will ensure that everyone participates knowing that there is reasoning behind all actions and that it is not by chance or by the will and power of someone. Further, by using the IMS, the internal information flow of the administration will improve and thus, the double-, sometimes triple work will be diminished, contributing to cost reduction. Also, the transparency of the administrations activities will further improve its image among citizens, investors and other stakeholders (Baltador et all., 2012, p.16). The model of an integrated management system was developed in the Managing Urban Europe-25 (MUE-25) project. It was initiated and co-financed by the European Commission (DG Environment) in relation to the Thematic Strategy on the Urban Environment (TSUE).
The main steps for the Integrated Management System are the following:
1. Baseline Review: its main scope is to establish the needs and measures necessary to ensure a continuous improvement of life in the community. For this, all interested parts should be involved, so that no one is left out. Through research, discussion groups or other means the opinion of most citizens should be obtain.
2. Target Setting: is crucial in order to prioritize the main concerns, as found out through the baseline review. Of course, the targets should be SMART (Specific, Measurable, Achievable, Realistic, Time-bound) and responsible for every task should be appointed.
3. Political Commitment: is meant to assure the engagement of the local authorities, giving, at the same time, more legitimacy to the actions that are being taken.
4. Implementation and Monitoring: should bring into life the targets set out by the community in order to improve the wellbeing of each citizen, on the long run.
5. Evaluation and Reporting: is another important step, which aims to show the progress that is being made towards implementing sustainability. Furthermore, there is a chance to make this process of the IMS more flexible, as it permits to adjust to new threats or opportunities.
This process is an ongoing one: it will be revised each 3-5 years, in order to cope with the new developments.
Additionally some crosscutting elements are required: an Organizational Set-up is needed, which should be involved in organizing the hole process of the IMS and also on following how all progresses. Also, Involvement and Communication is crucial, so a Plan for internal and external communication and the involvement of all stakeholders is required.
Minimum requirements for the Integrated Management System. In order to have a support and an overview of this process, during the Champ project (A Managing Urban Europe Initiative Local Response to Climate Change) some minimum requirements have been established. These refer to content, meaning documents/tools which should be developed in each step of the IMS and to the process, procedural steps needed for the implementation of the IMS. For each step and crosscutting elements these are the following:
(UPDATE OF) BASELINE REVIEW
Minimum content requirements:
• Includes set of key indicators
• Includes identification of relevant plans and programs with their targets and objectives currently in place and of importance to sustainability aspects
• Includes identification of relevant systems and procedures in place to realize municipalities legally required and voluntary plans and programs (system audit)
• Includes overview on relevant legislation and system /procedure on updating of legislation (legal compliance)
• Includes stakeholder analysis
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Minimum process requierments:
• Baseline review is done by cross departmental working group
• Recognition of Baseline Review by City Council
• In case of assignment of Aalborg Commitments (AC): Submission of Baseline Review latest 12 months after assignment of AC to the AC Secretariat (http://www.localmanagement.eu/index.php/cdp:auditors_b aseline_review)
TARGET SETTING
Minimum content requirements:
• Includes long term (10/15 years) and short term (3/5 years) SMART targets and measures
• Target setting is based on the results of the Baseline Review
• Target setting needs to focus on the aspects of local policies with significant impact regarding environment and sustainable development
• Includes set of key indicators, related to Targets
• Includes Action Plan(s) (work-plan for the implementation of Strategic Programme with particular reference to short term targets)
• Includes definition of follow up mechanism
• The Action Plan should include description of concrete measures and projects to be realised:
- What is to be done? (title, short description of measure)
- Who is responsible? (person, department or stakeholder, contact details)
- Who should support the implementation and how (person, department, contact details)
- By when should the measures be completed? (timetable, date of realisation)
- Which personnel and financial resources are assigned? (staff, budget)
- Identification of indicator(s) to evaluate success of measure
- Information to the public: To whom? Which instruments? Timetable?
Minimum process requierments:
• Involvement of stakeholders at least in Target Setting
• Strategic Programme approved by the city council
• In case of assignment of Aalborg Commitments (AC): Submission of Strategic Programme latest 24 months after assignment of AC to the AC Secretariat
(http://www.localmanagement.eu/index.php/cdp:auditor
s_target_setting)
POLITICAL COMMITMENT
Minimum content requirements:
• Council resolution for the approval of the decision to implement the IMS and of the organisational set-up
• Council resolution for the recognition of Baseline Review, Internal Audit, Monitoring Report
• Council resolution for the approval of the Strategic Program
• Council resolution for signing the Sustainability Report
Minimum process requirements:
• Approval of the decision to implement the IMS and of the organisational set-up by City Council - Mayor in representation of the City Council has the leading role and is the final responsible for the implementation of the IMS
• Recognition of Baseline Review, Internal Audit, Monitoring Report by City Council
• Approval of the Strategic Program by City Council
• Sustainability Report signed by City Council
(http://www.localmanagement.eu/index.php/cdp:auditors
_political_commitment)
IMPLEMENTATION AND MONITORING
Minimum content requirements:
• Includes the use of set of key indicators in Baseline Review, Strategic Program/Action Plan, Internal Audit, Monitoring Report and Sustainability Report to meas-ure/proof performance (= continuous improvement)
• Includes the definition of a Monitoring Program (what, when, how, ...), to monitor both process (fulfilment of action plan, system rules etc.) and performance (= improvement achieved against targets)
• Results of monitoring are included in Sustainability Report
Minimum process requirements:
• Annual Monitoring, by writing a Monitoring Report
• Relevant stakeholder have the possibility to give feedback on Monitoring Report
• Recognition of Monitoring Report plus result of stakeholder feedback by City Council
(http://www.localmanagement.eu/index.php/cdp:auditor
s_implementation_and_reporting)
EVALUATION AND REPORTING
Minimum content requirements:
• Definition of an yearly internal procedure for the evaluation of process and performance, including check-list/specific procedure for the Internal Audit and the drawing up of an Emergency Plan in case of no compliance with legislation
• Includes an annual Monitoring Report, which describes the results of the monitoring activity
• developed according to methods/procedures defined in the Monitoring Programme
• Includes at least one Sustainability Report within an election period, including:
- Council decision to implement IMS and allocate resources
- Organizational Set up with contact responsible for external communication
- Sustainability Policy of the Local Authority including targets of the Strategic Programme
- Main activities to fulfil targets of Strategic Programme
- Main results gained as enhanced in the Monitoring Report
- Level of performance gained
• Includes documentation of all relevant elements of the IMS (Organizational set-up, mechanisms for system review etc.)
Minimum process requirements:
• Internal Audit realized by IMS-coordinator and an auditor not involved directly in the IMS
• Includes mechanism for evaluation and feedback by stakeholders
• Internal Audit report plus result of stakeholder feedback recognized by City Council
• Monitoring Report plus result of stakeholder feedback recognized by City Council
• Sustainability Report signed by City Council
• Setting-up of one point of reference for the access to relevant documentation by stakeholders/staff involved
(http://www.localmanagement.eu/index.php/cdp:auditor
s_evaluation_and_reporting)
The Integrated Management System in Ighiu village. The Ighiu village is located in the center of Romania, in Alba County. It has 6283 inhabitants (2011 Census).
The initial steps taken by the local authorities in order to implement the iMs in Ighiu were concentrated on the development of an extensive Baseline Review. For this, several instruments and procedures have been used. Some questionnaires have been developed in order to include the
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main aspects relevant to three different target groups: citizens, entrepreneurs and representatives of the nongovernmental sector (NGOs). Also, during several meetings this results have been made known to the public and, in further gatherings and workshops, other aspects have been included. So, for instance, the initial steps in assigning to the Aalborg Commitments have been decided upon, including a stakeholder analysis. Also, these findings have been evaluated and harmonized with the county strategy and other regional, national and European strategic documents. So, a discussion on how the Law Nr.215 can support the implementation of sustainability in Ighiu was considered to be very useful. Due to the scarce resources that this authority can rely on for this process and the fact that there are just around 30 employees, the chosen indicators for monitoring the progress were those available for free on the Reference Framework for European Sustainable Cities, http://www.rfsc-community.eu/resources.
Additionally, relevant plans and programs with their targets and objectives currently in place and of importance to sustainability aspects have been identified, such as the Regional Operational Program, or the Development Plan of Alba County. Further, some mutual agreements with other local authorities have been reached, for example with Coli-basi village, in order to realize reciprocal system audit. The legal compliance is guaranteed by the Functioning Law.
With regard to the minimum process requirements the baseline review was done by cross departmental working group and this document was recognized by the Local Council.
The target setting was actually a task that relied very much on the results of the Baseline Review. The challenges and opportunities that came about during the Baseline review were prioritized, the necessary measures and means were put in place and the timescale was also used in order to group short- and midterm goals and long-term goals. All this goals were then classified in 5 major goals:
1. Programs of sustainable economic and social development, budget, finance, public and private management of community public services, eco -tourism, trade, free initiative.
2. Organization, urban development and planning, implementation of public works, environmental protection, historic preservation and architecture.
3. Administration Local Public legal defense of public order, the rights and freedoms of citizens, transparency in decision making, cults, public relations.
4. Education, health, culture, social, sports and recreational activities.
5. Activities in connection with domestic and international relations, promote the image and interests of the community (Baltador et al., 2013).
As such, the Target setting focused on the aspects of local policies with significant impact regarding environment and sustainable development and it included measures and a set of key indicators.
The Action Plan includes a description of the concrete measures and projects to be realized: What is to be done? Which personnel and financial resources are assigned? Identification of indicator(s) to evaluate success of measure.
With regard to the minimum process requirements, the stakeholders have been involved throughout these first steps and the Strategic Program has been approved by the local council.
In order to realize the third step of the IMS, the Political Commitment, these goals were concentrated in a strategy that the Local Council decided upon. Because most of the representatives of the Local Council have been involved throughout the process, there were no problems with
adopting the resolution with regard of the Local Strategy for Sustainable Development in Ighiu. Subsequent discussions and public meetings, resulting in prioritizing order has been confirmed and the Decision No. 53 of 26th of September 2013 Local Council validated the results of empirical sociological research. Of course the results have been previously analyzed in the specialized unit and approved by the specialized committees of council. Further, these measures will be implemented with the support of the organizational setup.
Next steps for implementing the IMS in the village of Ighiu will have to focus on Implementation and Monitoring. All targets and measures that were adopted by the Local Council of Ighiu will have to come to life and ensure the longterm, equitable and sustainable future of the community.
Conclusions & Discussion. Sustainable development is a concept that is meant to come alive by implementing the motto: "Think globally, act locally". For this, local authorities have to involve all stakeholders in the process of establishing the Integrated Management System in each community. Complementary to the top-down, the bottom-up approach can insist on local specifics and manage in a proper way the scarce resources. Sustainable development has much more sense when you think that some sacrifice today in this process is made for the good of your future generation. In Romania, some progress has been made: several cities are committed to the Aalborg principles, sustainable strategies exist at national and local level and more people are aware of the responsibility for the sustainable use of resources. As the case-study in the village of Ighiu indicates, some local communities are committed to implement sustainability by using scientific instruments. The Integrated Management System supports the idea that all processes can be optimized and, in doing so, the overall well-being of the community can be ensured. Or, as the Report Our Common Future indicates: "In essence, sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development; and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations."
References
1. Baltador M., Tabara V., Rusu T. et al., Studiu stiintific privind Strategia de dezvoltare sustenabila a comunei Ighiu in context European pentru perioada 2014-2020-2030, Lucian Blaga University Publishing House, Sibiu, 2013.
2. Bundesministerium fur Umwelt, Naturschutz und Reaktorsicherheit (ed.), Lokale Agenda 21 und nachhaltige Entwicklung in deutschen Kom-munen. 10 Jahre nach Rio: Bilanz und Perspektiven, Berlin 2002.
3. Carmin, J., Zhang, Y. (2009): Achieving Urban Climate Adaptation in Europe and Central Asia. The World Bank. Europe and Central Asia Region. Sustainable Development Department. Policy Research Working Paper 5088. Similar: Commission of the European Communities (EC), Adapting to climate change: Towards a European framework for action, White Paper, COM(2009) 147 final.
4. Charter of European Cities and Towns towards sustainability, Aalborg, 1994.
5. EEA - European Environment Agency (2008): Impacts of Europe's changing climate - 2008 indicator-based assessment. EEA Report No 4/2008.
6. EEA - European Environment Agency (2009): Cities of the future -how will European cities adapt to new climate conditions? Online-article.
7. Lia Alexandra Baltador, Camelia Budac, Open Government - A Long Way Ahead for Romania, Procedia Economics and Finance, Volume 16, 2014, Pages 557-562, ISSN 2212-5671, http://dx.doi.org/10.1016/ S2212-5671 (14)00839-9.
8. Jessica Lee, Mohamed Z. Elbashir, Habib Mahama, Steve G. Sutton, Enablers of top management team support for integrated management control systems innovations, International Journal of Accounting Information Systems, Volume 15, Issue 1, March 2014, Pages 1-25, ISSN 1467-0895, http://dx.doi.org/10.1016/j.accinf.2013.07.001.
9. Platform for the Managing Urban Europe Initiative, www.localmanagement.eu
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10. Robrecht, H., Morchain, D. (2010): Adaptation to the changing climate: time to intensify efforts. Background document for Workshop 4: Adaptation in cities & quality of life.
11. World Commission on Environment and Development, Our Common Future, Oxford University Press, Oxford 1987.
Acknowledgment:
This work was supported by the strategic grant POSDRU/159/1.5/S/133255, Project ID 133255 (2014), co-financed by the European Social Fund within the Sectorial Operational Program Human Resources Development 2007-2013.
Надійшла до редколегії 15.05.15
Л. Балтадор, канд.экон.наук, доц.
Университет имени Лучиана Блага, Сибиу, Румыния
УСТОЙЧИВОЕ РАЗВИТИЕ:
МЫСЛИТЬ ГЛОБАЛЬНО, ДЕЙСТВОВАТЬ ЛОКАЛЬНО - ПРИМЕР г. ИГХИУ, РУМЫНИЯ
Устойчивое развитие подразумевает добросовестное использование ресурсов, так, чтобы будущие поколения смогли б удовлетворить свои потребности. Новая парадигма как раз в том, как экономическое развитие необходимо осуществляете Международные договоры о смягчении последствий изменения климата, био-разнообразия и борьбы с бедностью и другие подобные вопросы были подписаны большинством государств. На местном уровне более конкретные проблемы появляются. Эта статья стремится представить формат документа, который может быть использован органами местного самоуправления, чтобы преодолеть препятствия. Интегрированная система менеджмента (ИСМ) стремится внести свой вклад в улучшение связи между местными заинтересованными сторонами, гражданами и местными органами власти, что, в конце концов, может привести к более устойчивому будущему. Для этого мы проанализировали первые шаги к реализации ИСМ в селе Игхиу округа Альба, на основе минимальных требований, разработанных в рамках проекта Champ.
Ключевые слова: Устойчивое развитие, интегрированная система управления.
Л. Балтадор, канд.екон.наук, доц.
Університет імені Лучіана Блага, Сібіу, Румунія
СТАЛИЙ РОЗВИТОК: МИСЛИТИ ГЛОБАЛЬНО, ДІЯТИ ЛОКАЛЬНО - ПРИКЛАД м. ІГХІУ, РУМУНІЯ
Сталий розвиток передбачає добросовісне використання ресурсів, так, щоб майбутні покоління змогли б задовольнити свої потреби. Нова парадигма якраз в тому, як економічний розвиток необхідно здійснити. Міжнародні договори про пом'якшення наслідків зміни клімату, біо-розмаїття і боротьби з бідністю та інші подібні питання були підписані більшістю держав. На місцевому рівні більш конкретні проблеми з'являються. Ця стаття прагне представити формат документа, який може бути використаний органами місцевого самоврядування, щоб подолати перешкоди. Інтегрована система менеджменту (ІСМ) прагне внести свій внесок у поліпшення зв'язку між місцевими зацікавленими сторонами, громадянами та місцевими органами влади, що, врешті-решт, може призвести до більш сталого майбутнього. Для цього ми проаналізували перші кроки до реалізації ІСМ в селі Ігхіу округу Альба, на основі мінімальних вимог, розроблених в рамках проекту Champ.
Ключові слова: Сталий розвиток, інтегрована система управління.
Bulletin of Taras Shevchenko National University of Kyiv. Economics, 2015; 6(171): 77-81 DOI: dx.doi.org/ 10.17721/1728-2667.2015/171-6/14 JEL M31 УДК 339.5
M. Tichindelean, Teaching Assitant, PhD, M.-T. Beca, Economist Lucian Blaga University of Sibiu, Sibiu, Romania
HOW BRAND PERSONALITY INFLUENCES CONSUMER'S BRAND PREFERENCE
The purpose of the present paper is to identify if the congruence of the consumers personality with the perceived brand personality increases their brand preferences. To achieve this purpose, the paper was structured in two parts; the first part contains a general literature review of the consumer behaviour theory and its influence factors and a more specific one regarding the consumer's and brand personality concepts. The second part describes the used research methodology for achieving the paper's purpose. The results of the underlying exploratory research confirmed the hypothesis that an overlapping of the consumers' personality and the brand personality they perceive is positively correlated with their brand preferences.
Keywords: Brand Personality, Consumer Behavior, Trait Theory, Consumer Personality.
Introduction. The field of marketing can be perceived in various ways and direction. For the period when the marketing concept had its early beginnings, the idea that marketing represents all the activities that generate the flow of goods and services from the producer to the consumer (AMA, 1969) was considered a correct and complete definition. Once the commerce structure shifted to a more societal concept, marketing became known as "a societal process by which individuals and target groups obtain what they need and what they want through creating, offering and freely exchanging value caring products and services." (Kotler, Keller, 2008). Over the years, the marketing concept evolved through three forms, recognized by literature as marketing 1.0, 2.0 and 3.0. In other words, marketing has gradually changed its activities' focus from product / service to the consumer, in present being totally focused on the human spirit (Kotler, Kartajaya, Setiawan, 2010).
Literature Review.
Consumer Behaviour - the Benchmark of Modern Marketing. The motivations and aspirations of the consumers became more and more diverse, complex, with
a personal character, therefore making it hard for marketers to integrate these needs in certain categories without knowing the target group in detail.
Studying the consumer behaviour requires a multidisciplinary approach of the economic, sociology, medicine, psychology, and statistics points of view. In this respect, consumer behaviour can be considered an evergreen element of human existence as consumer. The behaviour of the consumer coexists with other human behaviours which, due to its complexity, regularly generates new behaviours, like a root that gives rise to new offspring that are never the same. Consumer behaviour can be defined, in a comprehensive approach, as the totality of decisions made by the individual or group, directly related to the obtaining and use of goods and services in order to meet current and future needs, including decision-making processes that precede and determine these acts. (Catoiu, Teodorescu, 2004).
A pleased customer is one for which, beyond the rational preferences, exists an emotional affinity for a product or service, for a brand and not another, this
© Tichindelean M., Beca M.-T., 2015
