| Arguments in the research community suggest that sales of brands and products relate differently to economic changes. Research supports that sales of durable products or durable brands are mostly associated with recessions while sales of necessity products tend to remain mostly unchanged in both expansionary and recessionary periods, making them recession proof.;This quantitative study investigated the correlation of business cycle changes (GDP changes) with sales of durable brands, non-durable brands, and brand services. The research study selected a sample of 69 brands which included; 20 durable brands, 26 nondurable brands, and 23 brand services. Durable brands category included automobiles, technology, equipment and materials; non-durable brands included beverages, food, personal care (cosmetics, beauty, cleansing, skin care, hair care products), and apparel and shoes. Branded services category incorporated financial services, transportation, and telecommunication services. The sample was selected from MillwardBrown top 100 brands lists for five years from 2006 to 2010 and based on data availability. The study used secondary data collected from publicly available sources. Regression research method was used to test the hypotheses. Although the period investigated, 2006 to 2010, seems relatively short, it included one of the worst recessions since the Great Depression. Research results suggest a significant relationship between changes in business cycles (GDP changes)---expansions and recessions, and sales of durable brands, and brand services. Durable brands and brand services tend to correlate negatively with the recessions. Furthermore, the study found insignificant relationship between changes in business cycles (GDP changes), and sales of non-durable goods. |
