[A summary of a Master of Business Administration dissertation] Firms intentionally create foreign brand names to invite beneficial associations of some foreign countries through languages implied by the brand names. However, the consumers’ ability to comprehend the meaning of foreign brand names may partly depend on their familiarity and attitude toward the associated foreign language, which is out of the firms’ control. This research compares consumers’ perceptions about a local language (LL), close foreign languages (CFL) and distant foreign languages (DFL), and their associated brand names in order to gain a better understanding of brand-naming in different language contexts. Data were analysed using multiple regression and paired- samples t-tests. In a survey participated in by 350 Indonesian consumers, (1) there was a clear distinction between perceived meaningfulness and likeability of brand names in LL-CFL-DFL, and (2) selecting brand names in LL or CFL was more beneficial than DFL. However, language familiarity and attitude were not enough to predict brand name meaningfulness and likeability for LL-CFL-DFL. The applicability of this research is limited by sample size, cultural context, and product category, particularly since the demography of survey participants is skewed toward urban, middle-class consumers.

1. BRAND-NAMING LESSONS FOR
DOMESTIC BUSINESSES IN
INDONESIA
Choosing Between Local- and Foreign-based
Brand Names by: S. Yanirma (2016)
FINDINGS
Hypotheses Result
H1a The more familiar the close foreign language is, the
more meaningful the brand names in the close
foreign language will be perceived.
Reject H1a
H1b The more familiar the distant foreign language is, the
more meaningful the brand names in the distant
foreign language will be perceived.
Reject H1b
H2a The more familiar the close language is, the more
likeable the brand names in the close foreign
language will be perceived.
Reject H2a
H2b The more familiar the distant language is, the more
likeable the brand names in the distant foreign
language will be perceived.
Reject H2b
H3a Brand names in a local language are perceived as
more meaningful than brand names in a close foreign
language.
Accept H3a
H3b Brand names in a local language are perceived as
more likeable than brand names in a close foreign
language.
Reject H3b
H4a Brand names in a close foreign language are
perceived as more meaningful than brand names in a
distant foreign language.
Accept H4a
H4b Brand names in a close foreign language are
perceived as more likeable than brand names in a
distant foreign language.
Accept H4b
H5a Brand names in a local language are perceived as
more meaningful than brand names in a distant
foreign language.
Accept H5a
H5b Brand names in a local language are perceived as
more likeable than brand names in a distant foreign
language.
Accept H5b
H6a The better the attitude toward a close foreign
language is, the more meaningful the brand names in
the close foreign language will be perceived.
Reject H6a
H6b The better the attitude toward a close foreign
language is, the more likeable the brand names in the
close foreign language will be perceived.
Accept H6b
H6c The better the attitude toward a distant foreign
language is, the more meaningful the brand names in
the distant foreign language will be perceived.
Accept H6c
H6d The better the attitude toward a distant foreign
language is, the more likeable the brand names in the
distant foreign language will be perceived.
Accept H6d
SHINTAYANIRMA Awardee of LPDP Scholarship (Indonesia Endowment Fund for Education) Unpublished M.B.A. Dissertation, University of Glasgow
MIND MAP
Meaningfulness Likeability
Familiarity Attitude
PROPOSED HYPOTHESES
Context: Which foreign languages are CFL and DFL for Indonesians?
(Taxonomy from Ruhlen, 1987)
QUESTIONNAIRE DESIGN
Meaningfulness Likeability
Local language
Close-foreign
languages
Distant-foreign
languages
Brandnames
Acceptance of brand names
Context
Product categories
Participants' response
Perceived
familiarity
toward
languages
The stimuli resemble
real-life
advertisements to
stimulate participants’
decision-making
processes.
CONCLUSION
1. Foreign branding does not always have to adopt Western symbols to
obtain more preferable brand names.
2. There is a possibility that consumers from different countries, with
different native languages, appreciate similar brand name
characteristics.
3. Participants could still find the brand names likeable, even without
understanding their meaning.
4. Familiarity with language of the brand name does not equal brand
name likeability.
5. Participants’ preconceived ideas about a foreign language influence
their evaluation of brand names associated with that language.
6. Firms should pay attention to associated languages when devising a
new brand name.
7. However, foreign brand names only accounts for around 5% of
changes in perceived likeability of brand names.
Means of
Variable