Wise consumers, or even just mere consumers, are not a stranger when it comes to trades in matters of the branded versus the generic. The very labels attributed to themselves speak for itself. In fact, the same logic can be seen on most things merchandise in general. While medications have such a thing as the “branded” and the “generic”; computers have the original / source and the reverse-engineered; so too hardware parts, specifically car parts as is the aftermarket, or the “spare parts,” and the original equipment manufacturer, or the OEM, for short. The idea lies not just on the word itself for the sake of naming but rather who makes which and for which reason, hence the terms and ...view middle of the document...
Apple’s iPhone, while an American brand, uses parts made by companies outside of America as an example. The same can be said with cars. At least, in practice. These are called the genuine car parts and a matter not of this topic however is good to know.
Names such as ExxonMobil, DENSO, 3M, Valeo SA, Exide Technologies, among others, although relatively big companies themselves are unknown to some or even to many who is a layman to cars in general and will likely raise an eyebrow or scratch a head due to obscurity or plain anonymity if asked about them. These are the company names that make the aftermarket car parts. But, given their position in the market, aftermarket hardware car parts is a big business as do the manufacturing and selling of the cars themselves by its manufacturers but not equally.
Given the idea between an aftermarket and an original equipment manufacturer car part, which is which and for which reason?
The more known and valued a particular brand is, it is safe to assume it to be of more “value” to the consumers it serves and provides for as is seen in its logo. But not just the mere “logo” per se, but how consumers perceived and react to its logo’s value for their needs. Brands such as Starbucks and Apple, while companies not attributed to cars themselves, are some good examples of “good” companies perceived from its logo. Coffees, while should be relatively cheap, costs more in Starbucks (for a reason) and is thus deemed more classy thanks to the name of its brand -- although it’s just coffee. (It may be just me, but I haven’t in my life seen a coffee more costly than its commercial price however brewed.) Apple products, on the other hand, while may be known to be durable, cost quite a fortune but people buy them nonetheless, not solely for the mentioned quality of the products themselves but by its name as is seen on its logo. (Some people feels classy with an Apple brand in hand.) This is one way of giving value to a product with regards to its brand.
The same thing can be applied with cars and their manufacturers. As was mentioned, car manufacturers make some of their car’s parts hence bearing their corresponding company names on it (in essence and packaging). Given that is the case, it is not surprising to see that such a car part’s price be affected by its logo that it carries, that is, its company name. The more “valued” and known a particular company name is, expect its product to carry its weight for its consumers -- price. Original equipment manufacturer car parts are more costly than its alternative aftermarket car parts due to this reason.
Aftermarket car parts manufacturers, while may be relatively unknown for some, are an alternative or secondary market for consumers who prefer a more affordable hardware parts for their cars. Partly, in reason...