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Article
Publication date: 1 July 2006

Simon Kwok, Mark Uncles and Yimin Huang

Aims to review, update, and extend the understanding of country‐of‐origin (COO) effects in China. This involves examining the nature and extent of the COO effect amongst…

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7494

Abstract

Purpose

Aims to review, update, and extend the understanding of country‐of‐origin (COO) effects in China. This involves examining the nature and extent of the COO effect amongst urban Chinese consumers and the impact of COO on actual purchase behaviour.

Design/methodology/approach

A questionnaire is used to collect COO information from a sample of 432 Shanghai consumers and a consumer panel is used to track the purchase behaviour of the same consumers over 6 months.

Findings

First, Chinese consumers generally say they prefer to buy local Chinese grocery brands. Second, Chinese consumers believe it is important to buy local brands for a range of Chinese‐style and Western‐style product categories. Third, however, the stated preference for Chinese brands was generally not reflected in actual purchase behaviour.

Research limitations/implications

The results support the growing view that Chinese consumers are not necessarily attracted to foreign brands. However, the disparity between stated preferences and behaviour suggests that there are other factors that may moderate the COO effect, such as imperfect knowledge of which brands are local or foreign.

Practical implications

To capitalize on the stated preference for local brands, and to address consumers’ imperfect knowledge of which brands are local or foreign, managers may benefit by promoting the Chinese origin of their brands and by positioning their brands as being local.

Originality/value

In contrast to the experimental designs used in previous studies, actual purchase data is measured here in a real‐life setting. The study provides a strong empirical update on the COO effect in China.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 18 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 9 August 2021

Maryam Vaziri, Joan Llonch-Andreu and Pilar López-Belbeze

This paper aims to analyze different brand clarity levels (BCLs) of local, global and glocal types of brands in fast-moving consumer goods from the consumer's perspective…

Abstract

Purpose

This paper aims to analyze different brand clarity levels (BCLs) of local, global and glocal types of brands in fast-moving consumer goods from the consumer's perspective. The study also intends to identify whether the consumer's previous experience with such brands may impact BCL.

Design/methodology/approach

Twenty-eight global and local brands were used to test the hypotheses by conducting a survey with 400 consumers in the emerging economy of Iran. The authors applied a quantitative technique of brand classification, previously proposed in the literature. After categorizing the brands as local, global or glocal, one-way ANOVA, Tukey post hoc and t-test analyses were performed to identify whether the different types of brands had different BCLs.

Findings

The results showed that brand clarity was significantly higher for local bands than for global or glocal brands and that it was higher for glocal bands than for global brands. Furthermore, the consumer's prior experience with a brand had no impact on BCL for different types of brands.

Social implications

For global brand managers, it is essential to know that local brands in Middle Eastern emerging markets may have more brand clarity than global brands. Therefore, if global brands intend to enter these markets, adopting a glocal positioning appears to be a helpful strategy. Besides, the results suggest that managers should analyze brand categorization from the consumer's perspective, i.e. from a subjective instead of an objective perspective.

Originality/value

This was the first study analyzing the BCL of local, global and glocal brands and identifying significant differences in their BCL.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 18 September 2020

Jake Hoskins, J. Cameron Verhaal and Abbie Griffin

This paper aims to move beyond previous investigations juxtaposing the performance of global versus domestic brands, where domestic is referred to as “localness” in the…

Abstract

Purpose

This paper aims to move beyond previous investigations juxtaposing the performance of global versus domestic brands, where domestic is referred to as “localness” in the literature, conceptualizing and developing two measures of “within-country brand or product localness.” In doing so, it uses objective localness measures, rather than consumer perceptions of brand localness, as have been primarily used previously. Then, by leveraging established theory on brand authenticity and corollary literatures on brand identity and country-of-origin effects, this research develops and empirically tests key hypotheses about how these within-country, more geographically local products or brands (referred to as simply “localness” hereafter, for brevity), influence sales outcomes through increasing perceptions of brand and product authenticity.

Design/methodology/approach

Two empirical studies using different archival data sets are conducted to test the hypotheses. Study 1 focuses on new product sales from 2002 to 2011 for 31 categories of consumer packaged goods US product launches initiated in 2002–2005, whereas Study 2 investigates online consumer review and retail sales data in the US craft beer industry from 2001 to 2011. Localness is operationalized as two different objective measures: in Study 1, local distribution is measured, and in Study 2, firm headquarters denotes the geographic bounds of localness. These two measures are motivated by prior consumer perceptual studies of Locavores (consumers who strongly prefer local products), which identify that local systems of production and/or distribution are the key signals of localness. Using two measures allows the localness construct to be tested for the potential firm-side boundaries of its scope and provides two empirical measures that future researchers can leverage.

Findings

Brand (or product) localness gives performance advantages over national brands in the form of increased sales across both studies. The second study, focused on craft beer, dives more deeply into the theoretical mechanism (localness operates through increased perceptions of brand authenticity) and shows that while brand authenticity directly translates into higher sales, as anticipated, localness fully mediates this relationship. When coupled with supporting marketing tactics (high price and/or product variety), the link between localness and brand authenticity grows stronger. Local brands with low prices and/or limited product variety are deemed inauthentic by consumers, so it is important for brand managers to use marketing tactics that reinforce brand authenticity to support localness as a strategy.

Research limitations/implications

Future research could extend this inquiry in a number of ways. These include combining both empirical measures of localness into a single empirical inquiry, investigating additional product categories and further integrating aspects of strategy such as market positioning and innovation strategy. Newer data could also reveal how these phenomena are continuing to evolve.

Practical implications

Based on this study, managers can benefit by leveraging localness as a key brand or product attribute to achieve a sales advantage, but they must do so by using marketing tactics consistent with an authentic brand positioning. Efforts to expand a brand’s geographic reach over time should likely be conducted very locally at first, before extending to regional markets and then to a global footprint. It is also posited that retail store managers can benefit from allocating some shelf space to local brand and product offerings.

Originality/value

This paper conceptualizes and measures localness in new ways compared to the previous literatures. It develops objective measures of within-country localness instead of using consumer perceptions of localness and/or considering domestic brands as being “local” compared to global brands; builds key linkages between concepts of localness, authenticity and sales performance; and uncovers when and how within-country localness is a key brand or product attribute associated with increased sales success.

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Article
Publication date: 28 April 2020

Lia Zarantonello, Silvia Grappi, Marcello Formisano and Josko Brakus

The purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived…

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1070

Abstract

Purpose

The purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived quality, brand associations, perceived value and brand loyalty – and market share for different brand types (global versus local) in different country groups (developed versus emerging).

Design/methodology/approach

This paper combines consumer–survey-based data, experts' coding and retail panel data of fast-moving consumer goods (FMCG) brands in 29 countries.

Findings

In developed countries, the relationship between each CBBE component (except for brand associations) with market share is stronger for local than global brands. In emerging countries, the relationship between each CBBE component with market share is stronger for global than local brands.

Research limitations/implications

This paper contributes to better understanding the relationships between CBBE and market share by showing how CBBE components relate to market share for different brand types (global and local) in different country groups (developed and emerging). Limitations arise from constraints related to existing datasets (e.g. limited number of variables and type of product categories considered).

Practical implications

This paper offers insights to managers working in multinational FMCG companies, as it suggests which CBBE components relate more strongly to the global or local brands' market shares in different countries.

Originality/value

This paper analyzes the relationship between CBBE and market share by focusing on different brand types (global versus local) in different country groups (developed versus emerging). It does so by using a company dataset and showing correspondence with conceptualizations and measures of brand equity from the academic literature. It also considers a large set of 29 countries, extending research beyond national boundaries.

Details

International Marketing Review, vol. 37 no. 2
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 14 June 2011

Rajat Roy and Ryan Chau

The purpose of this research is to explore how a successful global and a local brand may compete side by side in an existing market place based on consumer‐based brand

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7762

Abstract

Purpose

The purpose of this research is to explore how a successful global and a local brand may compete side by side in an existing market place based on consumer‐based brand equity and consumers' status‐seeking motivation for purchasing a global versus local brand.

Design/methodology/approach

The data for this research were collected through a self‐administered survey from students in a large Western Australian university.

Findings

The results show that a global brand is generally preferred in terms of all the dimensions of consumer‐based brand equity over a local brand. However, a significant interaction emerged between the type of brand and high versus low status‐seeking motivation consumers. A global brand is strongly favoured in terms of awareness, perceived quality and overall brand equity by high status seekers while a local brand seems to enjoy loyalty and overall brand equity among low status seekers. A global brand is also clearly preferred over a local brand along all dimensions of consumer‐based brand equity amongst high status‐seeking consumers. Further, a local brand is clearly preferred in terms of consumer‐based brand equity over the global brand by Australians whereas the global brand remains a clear favourite with non‐Australians.

Research limitations/implications

Findings may not generalize beyond Australian sample and the product category.

Originality/value

This empirical research explores how global and local brands may compete with each other based on their strengths. This research also addresses a theoretical gap identified by Yoo and Donthu.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 23 no. 3
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 13 June 2016

Bing Shi, Dan Zhang, Hongling Xie and Yinghui Zhou

This study aims to examine factors affecting Chinese adolescents’ purchase intention for local brands; this study focuses on the effects of perceived social status value…

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1549

Abstract

Purpose

This study aims to examine factors affecting Chinese adolescents’ purchase intention for local brands; this study focuses on the effects of perceived social status value and materialistic values.

Design/methodology/approach

A theoretical model relating perceived social status value of brands to purchase intention, including materialistic values as a moderator, was developed and tested, using a sample of 587 Chinese adolescent respondents. Another experimental study examined the variability of the moderation of materialistic values across different levels of peer pressure in a product usage occasion.

Findings

Perceived social status value associated with local and foreign brands significantly influences purchase intention for local brands. Moreover, influence of perceived social status value of local versus foreign brands on local brand purchase intention is greater for materialistic adolescents. Additionally, the moderation of materialistic values is found in a product usage occasion with high peer pressure, but not in an occasion with low peer pressure.

Research limitations/implications

The findings show that perceived social status value associated with brands shapes purchase intention for local brands. The moderating effect of materialistic values is complex and suggests further research. The study’s scope is limited to Chinese adolescents.

Practical implications

The findings provide understanding of the drivers of purchase intention, and thus serve as a guideline for Chinese firms and foreign marketers seeking to enter the growing Chinese market, as well as consumer educators in China.

Originality/value

This study contributes to the limited empirical research into the factors shaping country-of-origin effects. Moreover, the findings suggest the need to consider the moderating role of materialistic values on purchase intention for local brands.

Details

Journal of Consumer Marketing, vol. 33 no. 4
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 13 July 2010

Hyun‐Joo Lee, Archana Kumar and Youn‐Kyung Kim

The purpose of this study is to examine effects of gender, need for uniqueness, and attitudes toward American products on dimensions of brand equity for a US and local

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4193

Abstract

Purpose

The purpose of this study is to examine effects of gender, need for uniqueness, and attitudes toward American products on dimensions of brand equity for a US and local apparel brand in the Indian market.

Design/methodology/approach

Three dimensions of brand equity are evaluated based on the respondents' shopping experience related to the selected US and local apparel brands. Data are collected from a convenience sample of college students in India.

Findings

The empirical tests show that, for a US apparel brand, there are direct and indirect effects of Indian consumers' gender, need for uniqueness (NFU), and attitudes toward American products on three dimensions of brand equity: perceived quality, brand loyalty, and brand associations with brand awareness. For local apparel brands, these effects are found for only one brand equity dimension: perceived quality.

Research limitations/implications

The study uses only one US apparel brand, which may limit the generalization of the findings to all product categories and countries.

Practical implications

US marketers need to improve Indian consumers' attitudes toward American products through marketing and promotional campaigns. On the other hand, Indian marketers should overcome the negative relationship between Indian consumers' attitudes toward American products and their quality perception toward a local apparel brand.

Originality/value

Little attention has been given to individual differences in evaluating the three dimensions of brand equity. By assessing brand equity based on the individual characteristics of gender, need for uniqueness, and attitudes toward American products, results of the study can help marketers to obtain more specific knowledge of brand equity about a target consumer group and thus enable them to plan and implement well‐suited strategies for improving their brand equity.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 14 no. 3
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 27 August 2019

Eline L.E. De Vries and Bob M. Fennis

Using food brands as a case in point, the purpose of this paper is to examine the relationship between a local vs global brand positioning strategy and buying impulsivity…

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1587

Abstract

Purpose

Using food brands as a case in point, the purpose of this paper is to examine the relationship between a local vs global brand positioning strategy and buying impulsivity, as well as the mediating role of construal level. The findings add a psychological argument to the array of reasons for firms to opt for a local instead of a global brand positioning strategy: local food brands promote higher levels of buying impulsivity than global brands by lowering consumers’ level of construal.

Design/methodology/approach

Five experiments use student and nonstudent samples, different construal level indices and generic and brand-specific buying impulsivity measures to test the hypotheses.

Findings

Local food brands promote higher levels of buying impulsivity than global brands by lowering consumers’ level of construal. Because local brands are proximal to consumers’ lifestyles, values, preferences and behaviors, they decrease the psychological distance between the brand and the consumer, compared with global brands. The smaller psychological distance lowers consumers’ construal level and renders the immediate, concrete, appetitive attributes of the product more salient, thus making consumers more prone to impulsively buy a local brand than a global one.

Practical implications

For the choice between a global or local brand positioning strategy, this paper argues in favor of the latter. Local (food) branding is a concrete brand positioning mechanism that can influence and benefit from consumers’ buying impulsivity.

Originality/value

The research reveals heretofore unknown but important implications of local vs global brand positioning strategies for consumers’ construal level and buying impulsivity.

Details

International Marketing Review, vol. 37 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 11 December 2019

Chunyan Nie and Tao Wang

The purpose of this paper is to examine the effect of the interpretation strategy of cultural mixing on consumers’ evaluations of global brands that incorporate local

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1095

Abstract

Purpose

The purpose of this paper is to examine the effect of the interpretation strategy of cultural mixing on consumers’ evaluations of global brands that incorporate local cultural elements. Specifically, this paper examines whether a property interpretation and a relational interpretation have different influences on consumers’ evaluations of global brands that incorporate local cultural elements.

Design/methodology/approach

Two experiments were conducted as part of this research. Experiment 1 adopted a two (interpretation strategy: property interpretation vs relational interpretation) single-factor between-subjects design. Experiment 2 adopted a 2 (interpretation strategy: property interpretation vs relational interpretation) × 2 (polyculturalist beliefs: high vs low) between-subjects design. The data were analyzed using ANOVA and PROCESS 213.

Findings

A property interpretation (emphasizing that some features of a global brand transfer to local cultural elements) leads to a less favorable evaluation of global brands that incorporate local cultural elements than a relational interpretation (emphasizing a relation between global brands and local cultural elements). This effect is fully mediated by perceived cultural intrusion, and it exists only when consumers have a low level of polyculturalist beliefs.

Originality/value

This paper reveals that the phenomenon of cultural mixing occurs when global brands incorporate local cultural elements. In addition, the way that consumers perceive the relationship between global brands and local cultural elements will determine their reactions to global brands that incorporate local cultural elements.

Details

International Marketing Review, vol. 38 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 9 January 2019

Fatma Abdellah-Kilani and Rihab Zorai

The purpose of this paper is to conceptualize and test a new concept named “Brand Origin RECall Accuracy” (BORECA) that assesses consumers’ ability to recall accurately…

Abstract

Purpose

The purpose of this paper is to conceptualize and test a new concept named “Brand Origin RECall Accuracy” (BORECA) that assesses consumers’ ability to recall accurately the origins of brands they are aware of. It measures consumers’ brand awareness and brand origin (BO) awareness for a given product category.

Design/methodology/approach

Based on the accessibility–diagnosticity model and the limitations of the brand origin recognition accuracy concept, the authors propose and test the BORECA concept focusing on one product category (apparel) in an emerging country context, i.e. Tunisia (Mena). A sample of 374 respondents were surveyed on country-of-origin (COO)-category awareness, brand awareness, BO awareness and foreign vs local brand quality evaluation. Descriptive statistics, correlation indices, MANOVA and linear regression analysis were used in data analysis.

Findings

Results show a substantial BORECA score, i.e. highly accurate awareness of the origins of the recalled brands, affected by respondents’ age, gender and education level. The average BORECA score for local brands is higher than for foreign brands. The local BORECA score seems to positively correlate to respondents’ evaluation of local brand quality and negatively to foreign (dominant COO category) brands.

Research limitations/implications

Based on an aided recall task rather than simple recognition, BORECA provides a deeper assessment of brand awareness and BO awareness. The pressure induced by the task (knowledge test + retrieval effort) may cause anxiety bias that inhibits the recall of other brands and BOs.

Practical implications

Nationalistic and ethnocentric tendencies emerging in the findings point to some branding strategies for both local and foreign companies.

Originality/value

The paper provides a good indication of BO salience in an emerging economy. It seeks to explain the impact of the BORECA score for local brands on the perceived quality of both local and foreign brands.

Details

International Marketing Review, vol. 36 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

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