Perception of Car Brands by Russian Consumers during the Period of Divestments

This paper investigates the changes in how consumers perceive car brands in Russia after foreign automakers divestments due to sanctions. The focus is on the emerging of Solaris and Jetta brands as replacements for Hyundai and Volkswagen respectively. The main goal is to understand consumer perceptions of these brands and how companies’ intentions to keep brand loyalty and recognition are working. To achieve this the research uses an embedded case study approach blending interviews with brand managers and new brand consumers and quantitative surveys with potential customers. This approach provides a view of both company intentions and consumer perceptions. The theoretical basis draws from the associative network memory model and consumer-based brand equity (CBBE) investigating how brand awareness, associations, perceived quality and loyalty transferred from predecessor brands to the emerging ones. The key findings reveal that both Solaris and Jetta for the most part have capitalized the perceptions linked to Hyundai and Volkswagen. Consumers generally see Solaris as a successor maintaining similar levels of brand loyalty and perceived quality. However, variations in Jetta consumer attitudes were observed, influenced by company marketing tactics and brand positioning. This study adds to the existing body of knowledge, on how consumers perceive brands in situations involving divestments and brand replacements. It gives advice to managers and marketers on preserving brand value during market upheavals. Additionally, it provides practical implications for developing effective marketing campaigns in the Russian automotive market under current geopolitical constraints. The study highlights the importance of strategic continuity and consumer trust in managing brand transitions.