Predisposition towards foreign brands and materialism: a quantitative assessment

Abstract

Purpose

The purpose of this paper is to identify the dimensions of predisposition towards foreign brands (PTFB) for Indian consumers and examine their impact on materialism/materialist value (MAT). The study further conducts an in-depth analysis of these constructs for possible variations across consumer demographics.

Design/methodology/approach

Using a structured questionnaire, primary data were collected from 487 respondents in the city of Delhi and National Capital Region (NCR). While a modified scale was developed to operationalize PTFB, the measurement instrument for MAT was adapted on the basis of an extensive literature review. Statistical techniques such as Exploratory factor analysis, Confirmatory factor analysis, t-test, analysis of variance (ANOVA) and regression analysis were used to test various hypotheses of the study.

Findings

The study identified five dimensions of PTFB, namely, “Reputation”, “Preference”, “Country of Origin”, “Accessibility” and “Quality”, through confirmatory factor analysis in structural equation modelling. Except for “Preference” and “Accessibility”, all remaining dimensions were found to be exerting a significant impact on MAT. The results further indicate that consumers’ PTFB as well as their MAT differs across demographics such as age, income, gender, occupation and qualification.

Practical implications

The paper brings to the fore useful insights for marketers of foreign brands. The findings can be effectively used for developing a more focused marketing strategy for Indian consumers by helping in identifying demographic segments that are more responsive and susceptible to the entry of foreign brands in Indian markets.

Originality/value

The paper attempts to develop a more robust instrument for measurement of consumers’ PTFB and provides dimensions constituting the construct for consumers of emerging markets such as India. The current research also indicates that there exists a significant variation in PTFB and MAT for different demographic segments of consumers.

Citation

Vohra, A.V. and Gupta, G. (2017), "Predisposition towards foreign brands and materialism: a quantitative assessment", Journal of Asia Business Studies, Vol. 11 No. 1, pp. 41-59. https://doi.org/10.1108/JABS-08-2015-0144