Effects of perceived brand localness and perceived brand globalness on consumer behavioral intentions in emerging markets

Abstract

Purpose

This study examined the effects of perceived brand localness (PBL) and perceived brand globalness (PBG) on consumer behavioral intentions (CBIs) (PI – purchase intentions, PP – price premium and WOM – word of mouth) via brand authenticity (BA). Additionally, this study considered the moderating impact of uncertainty avoidance (UA) and the control variable brand familiarity (BF) in emerging markets (EMs), specifically from China and Pakistan contexts.

Design/methodology/approach

This study scrutinized 1,638 responses (China, n = 804 and Pakistan, n = 834) from consumers who used discussed local and global brands. The proposed hypotheses were evaluated using the PLS-SEM technique.

Findings

The findings indicated that the PBL and PBG favorably impacted BA, which significantly affected CBIs in both EMs. Specifically, PBL strongly influenced BA in China, whereas PBG strongly affected BA in Pakistan. The direct effects of PBL and PBG supported CBIs (PI, PP and WOM) in Pakistan. Likewise, PBL was significant on PP and WOM, whereas PBG was significant on PP in China. In Pakistan, UA had a significant moderating impact on PBL and BA. Similarly, UA acted as a positive moderator between BA and CBIs (PI and WOM) in Pakistan but was not supported in China.

Research limitations/implications

This study examined only two EMs. Future studies may examine emerging vs developed markets. Theoretically, PBL and PBG are important brand signals associated with brand authenticity that communicate to mitigate information asymmetry in EMs. Likewise, brand authenticity was recognized as a positive signal that effectively corresponds to CBIs (in terms of their PI, PP, WOM) by fulfilling brand promises in both EMs. Additionally, UA was proved an effective moderator, improving consumer perceptions of brand authenticity about local brands and increasing PI and WOM toward perceived authentic brands in Pakistan.

Practical implications

This research revealed important recommendations to help local and global managers in developing and executing several branding strategies in EMs (China and Pakistan). Practically, by improving the brand's localness and globalness, local and global managers may successfully position their brands to influence consumers' perceptions in EMs. Similarly, brand authenticity is a vital positioning tool for managers that favorably influence consumer behavior. Additionally, managers can segment and target their markets by classifying high and low UA consumers, particularly in Pakistan.

Originality/value

Following signaling theory, this is the first study that contributes toward CBIs in EMs via brand authenticity and considering cultural factors (uncertainty avoidance) from the domestic and international branding perspectives.

Citation

Safeer, A.A., Abrar, M., Liu, H. and Yuanqiong, H. (2022), "Effects of perceived brand localness and perceived brand globalness on consumer behavioral intentions in emerging markets", Management Decision, Vol. 60 No. 9, pp. 2482-2502. https://doi.org/10.1108/MD-10-2021-1296