1. Review of literature
By studying consumer samples in an emerging market, Turkey, and two
mature markets, Singapore and Denmark, the author tests the chain of
relationships that drive consumers’ likelihood of purchasing the global
brand in the presence of a local brand in a linear structural relations
framework. The results indicate that perceived brand globalness is
positively related to local iconness in an emerging market, but the
relationship is negative in advanced markets. Developing local iconness
helps build the perception of prestige in all three markets. Furthermore,
local iconness is positively related to local brand quality perceptions in
the culturally grounded categories of food in an emerging market,
whereas in nonfood categories, local iconness has no connection to
quality. In terms of cross-effects, as expected, the perceived quality of the
local brand is negatively associated with global brand purchase
likelihood in all markets and categories studied. In contrast, local brand
prestige dampens global brand purchase likelihood for older consumers
in an emerging market. The article concludes with implications for global
and local brand managers.
In this article, the authors introduce attitude toward global
products(AGP)and attitude toward local products(ALP) as generalized
attitudinal constructs and address thefour issues
theseconstructsraise:(1)HowareAGPandALP relatedtoeachother?(2)What
is the motivational structure underlying AGPandALP ?(3)Is the
proposedtheory culturally circumscribed, or does it generalizeacross
countries? And (4)Whatare the managerially relevant implications of
these consumer attitudes? To answer these questions, the author propose
and empirically test an integrated structure for AG P and ALP and
theirantecedents, organized around thepowerful motivational concept of
values. They test their theory using a unique dataset
involving13,000respondentsfrom28countriesintheAmericas, Asia, and
Europe, thusallowing for a global investigation of a global issue. The
2. study findings provide Managers with strategicdirection on how to
market their products in a globalized world.
Previous cross-cultural research has demonstrated a consistently positive
effect of brand globality on consumer perceptions, attitudes, and
purchase intentions. The authors evaluate these effects on three ethnic
segments of U.S. consumers.Drawing on survey data analysis and the
estimates of a structural equation model, the research shows that
associationswith global brands as a general category vary across ethnic
groups. Caucasian consumers show less of an appreciation of global
brands, whereas African Americans and Hispanics show patterns similar
to those in prior research. Althoughthe average consumer views brand
globality as an attribute of little importance, the structural equation
findings show adirect effect of globality on attitudes and purchases.
Overall, mainstream consumers in the United States are less favor-able
toward global brands than minority groups but patronize them at the
same overall rate.
This phenomenological qualitative study explored Chinese consumer
consumption values on global brand fashion luxuries from 61
respondents who lived inBeijing, Shanghai, and Tianjin. Semi-structured
consumption behavior questionnaires, in-depth one-on-one and focus
group interviews using Moustakas (1994) approach served as the primary
source of data collection. The research findings were focused on Chinese
consumer consumption values and attitudes between global brands and
Chinese local brands. The findings revealed that Chinese consumers
perceived global brands (a) high quality products, (b) durable and
prestigious, (c) innovative and customer-oriented product design, (d)
trustworthy, and (e) good and responsible customer services. Whereas,
Chinese consumers perceived Chinese local brand luxuries as (1) low
quality products, (2) low trustworthiness issue, (3) poor product design,
and (4) mismanagement.
In the current context of globalization, firms have concentratedtheir
efforts on the development of international brands. As aresult,
3. international brand portfolios have been restructured,and many successful
local brands have been eliminated. Thisarticle’s objective is to improve
the understanding of localbrand differences and competitive advantages
relative to inter-national brands. To achieve this, the authors reanalyzed
theYoung & Rubicamdatabase Brand Asset Valuator and examined more
than 744 brands across the four largest countries inEurope: the United
Kingdom, Germany, France, and Italy. The authors discuss the
managerial implications of the findings forinternational marketers as they
develop their ideal international brand portfolios.
This article is resulting from; literature reviewwith in mind after taking
into consideration all previous studies in regard to branding issue. All
views and advice from academicians and practitioners are modified to fit
with local issue. Domestic entrepreneurs are expected to be confronted
by fierce competitions in the local markets after the arrival of regional
free trade agreement in SEA countries also known as AFTA (ASEAN
Free Trade Area). This situation further worsens by impact of
globalization which indirectly influences their business performance. As
entrepreneurs fromdeveloping country it is challenging to compete with
global players that are well-established. Therefore, the discussion of this
working paper concentrates on the issue of branding which guides local
entrepreneurs to manage brand more effectively. Finally, the framework
on strategic branding for local players will be discussed in more details.
Thirty years after the beginning of reforms, China continues to be a
magnet for multinational corporations that view the country as a must-
win market. However, competition has intensified inthe country as more
domestic brands gain market share. The fear of a backlash of foreign
brands amongmultinationals has led them to search for new strategies for
continuous growth. Based on a large-scaleconsumer survey in China, this
study examines the purchase patterns of foreign and domestic
brandsacross a number of product categories. The results suggest that
purchase and ownership of foreignbrands in both consumable and
durable goods vary greatly across geographic markets and product
categories. While foreign brands continue to lead in a number of product
4. categories, domestic brands aregaining ground in some markets including
the first-tier cities, highlighting the intense competition forthe mind share
of consumers. The evolving competitive scenario in China has significant
implicationsfor both foreign and domestic firms in brand management
and marketing strategies.
This article addresses a growing dilemma sur-rounding the strategic
value of perceived brand foreignnessPBF) among consumers in emerging
economies. Buildingon recent research evidence from the brand origin
literature,we introduce the concept of confidence in brand
originidentification (CBO) and theorize its moderating impact onthe
value of PBF in explaining and predicting brand evaluation. Using a
multi-level modeling technique, thisstudy provides evidence showing that
CBO moderates theeffect of PBF on consumer evaluations of brand
value.Moreover, the moderating influence of CBO is found to bemore
profound for local than for foreign brands. Managerialimplications for
building both global and local brands inemerging markets are discussed.
The study aims to determine the factors that influence consumers’
attitude towards the global brands in information technology products.
For this purpose survey questionnaire applied to 400 students of which
377 valid were analyzed. Factor analysis was used to determine the
factors affecting consumers’ attitude towards the global brands and at the
result of analysis realized that such factors as – demographic
factors(=0.70), the use of global bra related to information
nd
technology products(=0.67) and brand personality perception level
related to global brands (=0.66), are effective on the attitudes.
Hypothesis developed appropriate to the model of the study was tested by
Chi-square analysis and the hypotheses were accepted.
The purpose of this empirical study is to investigate the effects of
consumer cosmopolitanism on foreign product purchase behavior in
threemajor categories of consumer products (alcohol products, clothes,
furniture). Based on the existing theoretical and empirical knowledge,
wedevelop a conceptual model and identify two additional constructs as
5. antecedents of foreign purchase behavior, i. e., consumer ethnocentrism
and consumer knowledge of brand origins. The measurementmodel is
examined using a data set of261adult consumers and testedvia structural
equationmodeling. The study results confirm the strongtotal effect of
consumer cosmopolitanism in purchase behavior andindicate a strong
direct effect of this phenomenon on the behavioraloutcome. The more
cosmopolitan consumers have a stronger tendencyto buy foreign rather
than local products. On the other hand, the direct relationship between
cosmopolitanism and consumer knowledgeof brand origin was not
supported in the study.
References
Aysegul Ozsomer, (2012) “ The Interplay Between Global and
Local Brands: A Closer Look at Perceived Brand Globalness and
Local Iconness” J. of international marketing, Vol.20,No.2, 2012
,pp. 72-95
Jan-Benedict E.M. Steenkamp, and Martijn G. dejong, (2010), “A
Global Investigation into the Constellation of Consumer Attitudes
Toward Global and Local Products” j. of Marketing, Vol.74,
pp.18-40
Claudiu V. Dimofte, Johny K. Johansson, and Richard P. Bagozzi,
(2010) “ Global Brands in the United States : How Consumer
Ethnicity Mediates the Global Brand Effect” J. of International
Marketing, Vol. 18, pp.81-106
Warveni Jap, (2010) “Global Brands VS Local Brands in Chinese
Consumer Mind” J. of International Business and Economics, Vol.
10
Isabelle Schuiling and Jean – Noel Kapferer, (2004) “ Executive
Insights: Real Differences Between Local and International
6. Brands: Strategic Implications for International Marketers” J. of
International Marketing, Vol. 12, No. 4,pp. 97-112
Amran Harun, Abdul Wahid Bin Mohd. Kassim Oswald Aisat
Igau, Sulaiman Tahajuddin, Abdullah Kaid Al- Swidi, (2010)
“Managing Local Brands in Facing Challenges of Globalization :
Be a Local or Global Leader?” , European Journal of Social
Science, Vol. 17, (2010)
Tsang-Sing Chan, Geng Cui, Nan Zhou, (2009) “ Competiton
Between Foreign and Domestic Brands : A study of Consumer
Purchases in China” J. of Global Marketing.
Lianxi Zhou. Zhiyong Yang. Michael K. Hui, (2009) “Non- Local
or Local Brands? A Multi-Level Investigation into Confidence in
Brands Origin Identification and its Strategic Implications”
Academy of Marketing Science.
Sabiha Kilic and Hulya Cagiran Kendirli, (2011) “Consumers’
“Brands Personality’ Perception of Global Brands in Informational
Technology : An Ampirical Research on Hitit University Students”
International Journal of Business and Social Science, Vol.22.
Oliver and Irena Vida, (2011), “The Effects of Consumer
Cosmopolitanism on Purchase Behavior of Foreign vs Domestic
Products” Managing Global Transitions, Vol.9