Importance of corporate image for domestic brands moderated by consumer ethnocentrism

Abstract

Purpose

Although consumers’ tendency to support domestic companies by buying local products is growing, few studies discuss the corporate branding for domestic brands. This study aims to help domestic brands develop corporate branding strategies by examining the effects of corporate image of domestic brands on customers’ purchase intentions.

Design/methodology/approach

This study investigates various aspects of corporate image, including product quality, corporate ability, corporate social responsibility (CSR) and local-customer-first (a measure that is identified in this study). It conducts a survey (N = 283) and tests eight hypotheses with bivariate regression analyses with SPSS, Hayes’ PROCESS macro and structural equation modelling with AMOS to identify significant relationships.

Findings

The results show that all aspects of corporate image have significant positive effects on customers’ purchase intentions towards domestic brands. However, the effect of CSR image on purchase intention is fully mediated by the corporate ability and product quality images, whereas consumer ethnocentrism moderates the corporate ability and local-customer-first images.

Originality/value

This study contributes to the literature by examining the effect of corporate image on customers’ domestic brand purchase intentions in emerging economies when the product quality image in the country is low. This study also identifies a new factor, local-customer-first, and its positive effect on purchase intention. It is recommended that domestic brands strengthen their CSR, corporate ability and local-customer-first images to gain local customers’ support. Furthermore, it is found that corporate ability and local-customer-first are more highly valued by ethnocentric consumers. These findings can help domestic brands develop corporate branding strategies.

Citation

Teng, W. (2020), "Importance of corporate image for domestic brands moderated by consumer ethnocentrism", Journal of Product & Brand Management, Vol. 29 No. 3, pp. 257-272. https://doi.org/10.1108/JPBM-09-2018-2020