International brand promotion standardization and performance

Abstract

Purpose

This study aims to examine the impact of branding aspects on firm performance in several markets of Central and Eastern Europe (CEE). Specifically, the question of brand promotion standardization is the focus of attention.

Design/methodology/approach

After literature review, a conceptual model suggests that the standardization of brand promotion, as well as a long-term brand vision provided by management, positively influences firm performance in the target market. Furthermore, the model considers the external environmental factors of media infrastructure and customer homogeneity. Data gathered from a survey with managers allow testing the hypotheses through structural equation modeling.

Findings

The results of the quantitative study largely support the hypotheses. A positive relationship between media infrastructure and promotion standardization was found. Promotion standardization and brand vision both have a significant impact on firm performance in the target market. The relationship between customer homogeneity and promotion standardization could not be supported.

Research limitations/implications

The conceptual model depicts a highly specific area of investigation. Future research may include other variables and/or focus on different markets or regions to further add to the generalizability of the results.

Practical implications

The existing media infrastructure in the foreign target markets of Central and Eastern Europe should be thoroughly considered. A standardized approach toward brand promotion is recommended for Central and Eastern European markets to enhance firm performance.

Originality/value

This study contributes to the literature by considering branding in an international context which is still underrepresented in international management and marketing research.

Citation

Hofer, K.M. (2015), "International brand promotion standardization and performance", Management Research Review, Vol. 38 No. 7, pp. 685-702. https://doi.org/10.1108/MRR-06-2013-0136