The importance of perception: Passing the blind test and the brand test
By: Kristen Stephenson, Senior Vice President of Research & Analytics, Greater Phoenix Economic Council
At Super Bowl LX last January, Pepsi renewed its fight against its toughest branding challenge, one that has plagued the company for decades: the paradox that people tend to prefer Coca-Cola when they know what they’re drinking, yet tend to choose Pepsi in blind taste tests.
In this marketing campaign, the brand revealed its 2025 survey results showing that 66% of participants liked Pepsi Zero Sugar more than Coca-Cola Zero Sugar. This paralleled results from the 1975 Pepsi Challenge and from a 2004 study by the Baylor College of Medicine that showed how brain activity changed when being aware of which soda was being consumed — with fMRI scans showing that memories or impressions change how the participants thought about their beverage.
That’s 50 years of data showing that people may actually prefer Pepsi. But Coke holds a market share of nearly 20% of the carbonated beverage market, while Pepsi’s 8.3% is not only far less than Coke’s, but a steep decline from its 15% share in 19951.
Coke vs. Pepsi. Nike vs. Adidas. McDonald’s vs. Burger King. Louis Vuitton vs. Gucci. Ford vs. General Motors. You likely have an opinion of each. Perhaps it’s based on real-life experience. More likely than not, it’s been influenced by marketing.
Why would that be any different in our sphere of work?
States, regions and communities have spent countless hours developing brands to ensure their name is synonymous with something that will attract their target audience.
The most famous of these may be I Heart NY, commissioned by the New York Department of Commerce. In the 1970s, New York was in the middle of a financial crisis, with factory closures, budget cuts, spiking crime and massive reduction in tourism amidst fears of the city 2. New York wanted to spark civic pride and hope in a new image. Thus, I Heart NY was born.
Tourism increased, and hotel occupancy started rising. Broadway attendance jumped from 20% capacity to 90% within months3. By 2011, the logo, trademarked by the NY Department of Economic Development, brought in $30 million annually in revenue. It is globally recognized; I didn’t even mention a red heart, yet you inherently knew what the word I “Heart” NY referred to.
Amsterdam took a similarly simple concept to shift its reputation away from vices and canals to one centered on the Netherlands capital’s core values of creativity, innovation and spirit of commerce4. Behind I amsterdam, the visibility of museums, landmarks and regional diversity blossomed, and Amsterdam became one of Europe’s most popular travel destinations.
The Greater Phoenix Economic Council (GPEC) is aiming to do similar with A New Way To City, launched during the Forbes 30 Under 30 Summit at the Phoenix Convention Center in April. A survey we conducted in 2025 showed misperception of Greater Phoenix, with a lack of understanding of the region’s emergence as a top market. Respondents were more likely to associate the region with heat and desert rather than innovation, lifestyle and industry. About 45% of respondents did not consider themselves familiar with the region.
This affects our ability to attract businesses and increase the competitiveness of the region. In this increasingly complex economic development environment, considerations including workforce and talent pipeline, employment retention factors, and access to utilities are more important than ever for companies seeking expansion.
If the perception is that Greater Phoenix is a hot desert and nothing more, no amount of blind testing that shows the efficacy of our water stewardship, the development of cultural amenities suitable for all lifestyles, and the evolution of our innovation ecosystem will change that.
But if the perception shifts — Arizona is a balance of tradition and modernity, a place where you can enjoy a rural, suburban or city lifestyle, a place where business thrives — then we pass the blind test and the brand test. That’s at the core of A New Way To City through feature stories, Instagram, LinkedIn, billboards and national television ads.
So next time you Share a Coke, split a Pepsi, too. See if you and a friend can tell the difference. See how much your taste buds and taste in branding conflict. And then think about how to best combat your community’s version of this paradox.
Sources:
1https://www.visualcapitalist.com/visualizing-the-market-share-of-u-s-soft-drinks/
2 https://www.nationalgeographic.com/history/article/new-york-1977-blackout-i-love-ny-logo
4 https://www.smithsonianmag.com/arts-culture/rebranding-amsterdam-and-what-it-means-to-rebrand-a-city-19539392/#OO6JuFKl834XPVpj.99