PI Towards Global Brands
PI Towards Global Brands
Abstract
Purpose – This study aims to investigate how consumers respond to global brands adapting to local elements. Specifically, this study identified
three factors (i.e., cultural compatibility, cultural elements authenticity and cultural pride) affecting the purchase intentions (PIs) toward global
brands using Chinese elements among Chinese consumers in China and Chinese immigrants in North America. Another aim is to examine the
moderating role of acculturation in the relationship between cultural pride and PIs among Chinese immigrants.
Design/methodology/approach – Three studies were conducted to test the hypotheses in China and North America. Confirmatory factor analysis
was used to confirm the factor structure. Hierarchical regression was used to test the main effects and moderated regression analysis was used to
test the moderation effect.
Findings – Results show that cultural compatibility, cultural elements authenticity (CEA) and cultural pride positively affect the PIs toward global
brands with Chinese elements for both Chinese consumers and Chinese immigrants. Further, among Chinese immigrants, acculturation moderates
the relationship between cultural pride and PIs.
Originality/value – This study explored the factors influencing the PIs toward global brands using Chinese elements, filling a research gap. To the
best of the authors’ knowledge, this study is the first to examine how perceived CEA affects consumers’ PIs toward global brands with Chinese
elements. Further, the findings have implications for global brands that want to target Chinese consumers and Chinese immigrants in overseas
markets.
Keywords Global brands, Chinese elements, Cultural compatibility, Acculturation, Cultural elements authenticity, Cultural pride
Paper type Research paper
Introduction strategy (He and Wang, 2017; Wang and Lin, 2009). For
example, luxury brands released the 2019 Chinese New Year
The value of luxury consumption in China has increased by collections featuring a “pig,” which symbolizes the Chinese
USD $6bn every year, and the global sales share of luxury New Year of the Pig: Louis Vuitton pig-shaped keychains,
goods increased by 12% in China in 2009 in spite of a decrease Vacheron Constantin pig watch in platinum and Gucci pig T-
of 16% in the USA and a decrease of 8% in Europe (Li et al., shirts and bags (Bertram, 2019). Such an adaptation to the
2012). In 2016, China became the world’s second largest Chinese culture satisfies the needs of the wealthy Chinese
luxury market with an overall sales volume of USD $71bn consumers (Liu and Xing, 2017), and the infusion of art
(Deloitte, 2017). These statistics indicate that China has elements into branded products (i.e. artification strategy)
become a very important market for luxury fashion brands. makes the products look more luxurious (Joy et al., 2014;
Although China plays a crucial role in the global luxury market, Kapferer, 2014). Again, there is a lack of empirical studies on
there is scarce research on this topic with the exception of a few adaptation strategies in the Chinese luxury market.
studies (Gao et al., 2009; Li et al., 2012; Little, 2011; Zhan and However, some researchers argue that incorporating local
He, 2012). Moreover, an increasing number of global brands cultural elements moves beyond simple adaptation to the local
have been using Chinese cultural elements, such as symbols of market to a new phenomenon, which is cultural mixing (Hao
Chinese artifacts, in their product design as a marketing et al., 2016). Further, Guo et al. (2019) defined products with
The current issue and full text archive of this journal is available on Emerald The authors gratefully acknowledge the financial support of the Fonds
Insight at: [Link] Québécois sur la Société et la Culture (Canada).
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culturally ingrained local elements as cultural mixing symbolic consumers’ PIGBCE. Moreover, prior research suggests that
products (CMSPs) specifically designed for a local market, an individual’s pride in the original culture affects the person’s
excluding the products simply adapted to local tastes or local attitude toward products and PIs (Jorae, 2010; Kim and
markets without symbolic elements. The literature on Arthur, 2003; Liu and Xing, 2017). Similarly, we believe that
standardization/adaptation and globalization/localization has cultural pride may affect Chinese consumers’ and Chinese
not sufficiently addressed such hybridization of cultural immigrants’ PIGBCE. With globalization, immigrants have to
products (Guo et al., 2019; Gürhan-Canli et al., 2018). The deal with the issue of acculturation, which refers to the cultural
objective of this research is thus to provide some insights into adaptation after contacts with a new culture (Berry, 1997).
the phenomenon of cultural mixing for global branded Prior research suggests that immigrant consumers negotiate
products. cultural differences through product and consumption choices
Cultural elements are very important and would lend brands (Oswald, 1999; Thompson and Tambyah, 1999). Thus, we
advantages in branding position, as evidenced by the finding expect that acculturation will moderate the relationship between
that culture-of-brand-origin rather than country-of-origin cultural pride and PIGBCE among Chinese immigrants.
(COO) of a brand is the most important origin factor regarded To sum up, this research investigates the relationship
by consumers when they evaluate brands (Laroche et al., 2018; between three key factors (i.e. cultural compatibility, CEA and
Lim and O’Cass, 2001). Therefore, Cui et al. (2015) suggest cultural pride) and PIGBCE among Chinese consumers and
that luxury brands should balance the “standardization– Chinese immigrants. We also examine the moderating role of
adaptation dilemma” to satisfy Chinese consumers’ desire for acculturation among Chinese immigrants in North America.
self-expression and social signaling and needs for products with
local cultural elements. According to Cui et al. (2015), luxury Theoretical background and hypotheses
brands using local aesthetic elements may appeal to Chinese development
consumers’ national pride, and thus lead to their positive
attitude toward brands; however, excessive adaptation may Standardization/adaptation and cultural mixing
have a negative impact on the distinctiveness of global brand Whether a firm should standardize or adapt its strategy when
images. Although they propose a curvilinear relationship entering a foreign market has long been debated (Douglas and
between luxury brands’ adaptation strategies and consumers’ Wind, 1987; Jain, 1989; Levitt, 1983; Ryans et al., 2003).
PIs toward the brands, few empirical studies have tested this Proponents of standardization argue that a firm should focus on
proposition. To fill this void and contribute to the literature, the similarities of consumers in the global market (Fatt, 1967;
our research examines how Chinese consumers and Chinese Levitt, 1983), and such a standardization strategy assures cost
immigrants respond to global brands incorporating Chinese reductions and consistent image of the brand or the firm (Jain,
elements. Specifically, this research tests the relationship 1989; Killough, 1978). On the contrary, proponents of
between consumers’ perceptions of global brands’ adaptation adaptation contend that a firm should consider differences in
to cultural elements and their PIs. cultures, economies, legal restrictions and so forth among
Prior research has examined the new trend in China named countries (Britt, 1974; Nielsen, 1964), as the adaptation
cultural renaissance, emphasizing Chinese consumers’ strategy can better satisfy local consumer needs and wants
increasing focus on traditional Chinese elements, and the trend (Harvey, 1993; Kotler, 1986). Thus, for most product
is influencing their product choices (Wang and Lin, 2009). categories, cost efficiency is the main reason for
However, there are very few empirical studies exploring what standardization/adaptation decisions (Cleveland et al., 2011).
affects purchase intentions toward global brands with Chinese However, this is not the main consideration for luxury brands
elements (PIGBCE).. For example, He and Wang (2017) have because standardization or global positioning strategies of
only examined the positive effect of cultural compatibility luxury brands endow brands with brand image consistency,
between global brands and Chinese elements on PIGBCE in power, credibility and brand values (Kapferer, 1992; Liu et al.,
the Chinese market. However, we argue that Chinese 2016). Emerging markets with distinct characteristics have an
immigrants should not be overlooked, because global brands increasing demand for luxury fashion brands, and therefore it is
launch new products with Chinese elements in the global essential for luxury retailers to adapt to local consumer needs
marketplace. Thus, extending He and Wang’s (2017) findings (Chevalier and Lu, 2010) without compromising luxury brand
to the context of Chinese immigrants living in North America, status and exclusivity (Dubois and Paternault, 1995; Kapferer,
this study examines the effect of cultural compatibility on 2014). Consequently, “brand communications could
PIGBCE among Chinese immigrant consumers. emphasize cultural congruity by incorporating local cultural
Further, we argue that some other factors may affect values, nationalistic appeals, colors, symbols, artifacts, and
PIGBCE. When global brands incorporate local cultural myths” (Westjohn et al., 2012, p. 70).
elements in their products, consumers as observers tend to In the world’s second largest luxury market, Chinese
use authenticity to evaluate the product involving cultural consumers not only demand their traditional cultural elements
elements (Cohen, 1988). It should be noted that we focus on to be included in their consumption experiences (Wang and
the authenticity of “Chinese cultural elements” rather than the Lin, 2009), but they also want to be part of a global elite (Liu
authenticity of the “brand,” which includes ingredient et al., 2016). Thus, global luxury retailers should balance the
authenticity, craftsmanship and country of the origin, because “global–local dilemma” in the Chinese luxury market (Liu
such factors are deemphasized when brands infuse art into the et al., 2016). However, some researchers argue that combining
product design (Kapferer, 2012). Therefore, this study also two cultures in a global brand’s product design is not a simple
examines the effect of cultural elements authenticity (CEA) on adaptation to the local market but a phenomenon of cultural
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mixing, which refers to “the coexistence of representative Chinese New Year boots, which featured gold window flower
symbols of different cultures in the same space at the same patterns with red laces, symbolizing the Chinese paper-cutting
time” (Hao et al., 2016, p. 1257). The product that mixes local art (Sharp, 2018). However, Cui et al.’s (2015) conceptual
cultural elements and the global brand’s symbols is defined by study proposes that excessive adaption to the local culture may
Guo et al. (2019, p. 80) as CMSP. Thus, the products simply hurt a luxury brand image of distinctiveness and exclusivity.
adapted to local tastes or with localizations for different markets Therefore, relying on the artification literature, this research
are not CMSPs (Guo et al., 2019). For example, KFC’s egg empirically tests what will affect consumers’ PIs toward global
tart, congee (rice porridge) and the Dragon Twister simply brands that infuse Chinese art into their product design.
adapted to local tastes are not CMSPs, nor are Starbucks mugs
with images of a certain country. In this research, we examine Cultural compatibility
the phenomenon of cultural mixing and investigate how When global brands incorporate local cultural elements in their
Chinese consumers and Chinese immigrants respond to global product design, two different cultures are highlighted (Chiu
brands with Chinese elements in the Chinese and North et al., 2011). Therefore, cultural compatibility issue arises.
American markets. Melnyk et al. (2012) found that the incompatibility of brand
names between the actual country of origin and the implied
Luxury fashion brands, artification and Chinese country of origin decreased PIs in hedonic categories rather
elements than in utilitarian categories. Their finding suggests that
Prior research shows that applying art to advertising, packaging cultural compatibility is a determining factor for global brands
or product design (e.g. ads for bathroom fittings and restaurant introduced into another culture. He and Wang (2017, p. 465)
silverware boxes) positively affects product evaluations via defined cultural compatibility of global brands as:
luxury perceptions (Hagtvedt and Patrick, 2008a), and that the
the degree of consistency between the connotations evoked by the elements
infusion of art into products positively affects brand of the host country’s culture and the symbolic meanings of foreign cultures
extendibility via brand image and perceived fit (Hagtvedt and sourced from global brand perceived by consumers in the same branded
Patrick, 2008b). Further, Estes et al. (2018) found that art product.
infusion positively affects the evaluations of both utilitarian and They found that cultural compatibility between the global
hedonic products via brand affect. Kim et al. (2018) found that brand and local cultural elements increased PIs via perceived
the collaboration between a brand (e.g. Rolex and H&M) and brand local iconness. These findings are consistent with Moon
an artist leads to higher perceptions of the brand and PIs when et al.’s (2016) argument that cultural compatibility will increase
consumers’ personality fits the artist’s own. However, there are PIs because consumers can find the cultural elements in the
few studies on art infusion into luxury fashion brands (Jelinek, global products with which they are familiar. This familiarity
2018). In the business world, luxury brands have increasingly will evoke their intentions to diffuse the product information
adopted artification strategies, which involve efforts to online, hence increasing the purchase likelihood. In the current
transform a brand into an icon of art while deemphasizing research, we replicate and extend He and Wang’s (2017)
quality, country of origin and craftsmanship (Kapferer, 2012).
findings to the context of Chinese immigrants living in North
For example, luxury brands transform museums or art galleries
America. As such, our examination of cultural compatibility
into luxury boutiques, host cultural or artistic exhibitions,
affecting Chinese immigrants’ PIs is novel. Formally, we
infuse art into flagship stores or collaborate with artists for
formulate the following hypotheses:
limited collections (Kapferer, 2012, 2014).
It is relatively new that the fusion of Eastern and Western H1a. Chinese consumers’ perceptions of cultural compatibility
cultural motifs is applied to Western luxury brands (Joy et al., are positively related to PIGBCE.
2014). For example, Louis Vuitton deployed Chinese elements
of “old Shanghai” to attract Chinese consumers in its 2011 H1b. Chinese immigrants’ perceptions of cultural compatibility
spring show (Odell, 2010). The same brand launched its dot- are positively related to PIGBCE.
covered collections (e.g. pajamas, dresses, jewelry, shoes and
bags) by collaborating with a Japanese artist named Yayoi
Kusama in 2012 (Swanson, 2012). Thus, Louis Vuitton Cultural elements authenticity
artistically and aesthetically bridged the gap between Eastern Authenticity is often used to attract consumers in the tourism,
and Western cultures (Joy et al., 2014). Furthermore, the food and beverage advertisements (Cohen, 1988; Jang et al.,
infusion of visual art into luxury brands leads to higher 2011; Salamone, 1997), because consumers as observers tend
perceptions of prestige (Lee et al., 2015), and makes the to use authenticity as a criterion to evaluate cultural products
branded products look more luxurious (Joy et al., 2014). (Cohen, 1988). Applying this argument to our study, we
Similarly, Jelinek’s (2018) exploratory qualitative study shows believe that consumers use authenticity to evaluate global
that artification strategies give a luxury fashion brand an edge brands incorporating local cultural elements in their product
over its competitors, thus leading to a higher brand equity when design. There are mainly three approaches to understanding
art authentically fits the brand. Global brands have increasingly the concept of authenticity: “objectivism, constructivism and
incorporated Chinese elements in their products to satisfy the postmodernist approaches” (Jang et al., 2011, p. 665).
needs of wealthy Chinese consumers (Liu and Xing, 2017). Objective authenticity involves originality of an object, and it
Chinese elements are defined as symbols of objects or artifacts can be measured by standard criteria or determined by
reflecting unique features of the traditional Chinese culture (He “experts,” who are knowledgeable about local traditions
and Wang, 2017). For example, Timberland launched its 2018 (Appadurai, 1986). Objective authenticity is often used in
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tourism, especially for craft souvenirs (Chang et al., 2008; sentiments, whereas nationalism comprises individual and
Littrell et al., 1993; Revilla and Dodd, 2003). societal sentiments (Hjerm, 1998). Moreover, consumers
Littrell et al. (1993, p. 203) categorized authenticity as always relate COO to national pride (Botschen and
“uniqueness and originality, workmanship, cultural and Hemettsberger, 1998). When consumers have strong
historical integrity, aesthetics, function and use, craftsperson emotional attachment to COO, their ethnic identity motivates
and materials, as well as shopping experience and geniuses.” them to purchase certain products and brands (Fournier,
Building on these categories and the concept of authenticity, 1998). In line with prior research, we predict that global brands
Lee et al. (2017) identified four main categories of traditional with Chinese elements may fulfil Chinese consumers’ and
cultural products (TCPs) attitudes, which are “cultural/ immigrants’ desire to express their cultural pride. Formally, we
historical integrity, uniqueness, manufacturing properties and hypothesize the following:
aesthetic properties” (p. 95). However, they found that only
cultural/historical integrity and aesthetic properties had positive H3a. The cultural pride of Chinese consumers is positively
effects on PIs. According to Lee et al. (2017), cultural/historical related to PIGBCE.
integrity is the extent of authentic historical value, worth,
H3b. The cultural pride of Chinese immigrants is positively
meaning and history that TCPs hold, indicating that the
related to PIGBCE.
products are derived from the original culture. Aesthetic
properties indicate the materialistic features of color, design and
motif that meet the traditional aesthetic satisfaction of the Acculturation and consumption
original culture (Lee et al., 2017). Culture plays a significant role in people’s life. With
Although there are several studies on authenticity of souvenir globalization, an increasing number of people face two or more
and cultural products, the authenticity of local cultural cultures in their life. Immigrants are facing the inevitable
elements used by global brands has been overlooked. In this problem of how to manage their identities in a new culture.
study, we borrow Lee et al.’s (2017) construct of TCPs Consequently, some researchers such as Gordon (1964) and
attitudes to define cultural elements authenticity (CEA) as Berry (1997) focus on how people manage their identities when
cultural uniqueness, which is derived from the original culture they attempt to live in the dominant culture. Redfield et al.
and comprised of integrity and aesthetic properties. The global (1936, p. 149) defined acculturation as “[. . .] those phenomena
branded products with Chinese elements should satisfy the which result when groups of individuals having different
aesthetic requirements of local Chinese consumers and cultures come into continuous first-hand contact, with
conform to the existing cultural and historical values held by subsequent changes in the original culture patterns of either or
Chinese consumers. Therefore, cultural/historical integrity and both groups.” Berry (1997) defined acculturation as the
aesthetic properties have crucial reference values in Chinese cultural adaptation after contacts with a new culture, and
consumers’ and Chinese immigrants’ perceptions of global proposed four types of acculturation strategies, which are
brands. Specifically, the following hypotheses are formulated: assimilation, integration, separation and marginalization.
Assimilation refers to engaging into the host society but
H2a. Chinese consumers’ perceptions of CEA are positively
gradually losing the identity of the original culture; integration
related to PIGBCE.
refers to maintaining the behaviors and cultural identities of the
H2b. Chinese immigrants’ perceptions of CEA are positively home culture and also engaging in the host culture; separation
related to PIGBCE. refers to cultural and psychological maintenance of the home
culture but withdrawing from the host culture; marginalization
means cultural and psychological losses in the host and home
Cultural pride cultures (Berry, 1997, 2008).
Cultural pride is defined as “individuals’ positive attitudes Some empirical studies on consumption and ethnicity have
toward their cultural heritage and resources and feeling proud shifted from the previously dominated assimilation model to
to have an ethnic identity associated with a specific culture” the postassimilation model, challenging the previous linear
(Liu and Xing, 2017, p. 5). Prior research suggests that an acculturation model (Askegaard et al., 2005). For example,
individual’s pride in the original culture affects the person’s Mehta and Belk (1991) found that Indian immigrants in the
attitude toward products and PIs. For example, Deshpande USA displayed Indian artifacts in their homes to maintain their
et al. (1986) found that the cultural pride of Hispanics and Indian identity, whereas they adapted to American culture
Anglo-Americans positively affected their PIs toward the through consumption externally to assure the acceptance by
products directly advertised to them. When people feel more career and community. Peñaloza’s (1994) study of Mexican
pride in their original culture, they may have more positive immigrants in the USA suggests that consumer acculturation
attitudes toward culture-laden apparels (Jorae, 2010; Kim and leads to a postassimilationist acculturation model consisting of
Arthur, 2003), and they are more likely to buy traditional assimilation, maintenance, resistance and segregation. Further,
fashion clothes (Liu and Xing, 2017). For example, Qipao is a Oswald’s (1999) ethnographic study of Haitian immigrants in
traditional dress for Chinese women. Chinese women like to the USA suggests that “immigrants negotiate differences
wear Qipao on important occasions to express their ethnic between home and here by choosing when and where to wear
pride, and to show the beauty of the traditional Chinese their ethnicity” (p. 315). Similarly, Thompson and Tambyah
culture. (1999) found that immigrant consumers negotiated cultural
Cultural pride is derived from national pride and nationalism differences through products and consumption experiences.
(Liu and Xing, 2017). National pride comprises individual These studies indicate that acculturation does not necessarily
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lead to assimilation. Extending the postassimilation model to brands. Moreover, the colors, specific motifs and patterns of
non-American cultural settings, Askegaard et al.’s (2005) the Chinese culture are easily identified in fashion products. In
qualitative study shows that the ethnic identity of Greenlandic the pretest, we recruited 77 participants (30 students from a
immigrants in Denmark is strengthened by consuming North American University and 47 students from a Chinese
commodified Greenlandic goods (e.g. food and national university) through WeChat, a Chinese social media platform,
costumes), supporting the postassimilationist model. Further, the equivalent to Facebook. They were shown 12 products and
Guan and Dodder (2001) found that Chinese students staying asked to select the products, in which Chinese elements could
longer in the USA scored higher on all Chinese values (i.e. not be identified. Out of these products, 32.5% of the
group integration, self-protection and social order) than those participants believed that they could not identify any Chinese
living in China, and those spending less time in the USA, elements in the Louis Vuitton Lovely Birds Wallet designed for
except for cultural conservation. Building on previous the Chinese New Year of the Rooster. Moreover, the Dior
qualitative findings, we expect that acculturation will moderate brooch, Longchamp bag and FIYTA watch were also identified
the effect of cultural pride on Chinese immigrants’ PIGBCE, as the products without Chinese elements.
because cultural pride is closely related to an individual’s ethnic The final stimuli identified with Chinese elements were the
identity and cultural heritage (Liu and Xing, 2017). More 2011 Chinese wealth charm of Tiffany & Co. necklace, the 2018
specifically, we expect that with a high level of acculturation, Chinese New Year collection of Timberland boots, the 2015
Chinese immigrants identify more strongly with the Chinese Chinese New Year collection of Nike Air Foamposite One
culture, thus leading to the stronger effect of cultural pride on Tianjin sneakers and the 2017 Chinese New Year collection of
PIGBCE. Formally, we formulate the following hypotheses: Gucci shoulder bag (Appendix 1). The Chinese wealth charm of
Tiffany & Co. necklace has two pendants featuring red envelopes
H4a. The effect of cultural pride on PIGBCE is stronger with the characters “Fu” and “Ji,” which contain luck money
when the level of acculturation is high. during the Chinese New Year (Luxury Insider, 2011). Moreover,
H4b. The effect of cultural pride on PIGBCE is not “Fu” and “Ji” symbolize good luck and fortune in the traditional
influenced when the level of acculturation is low. Chinese culture. The Timberland boots feature gold window
flower patterns with red laces, symbolizing the Chinese paper-
cutting art (Sharp, 2018). The Nike Air Foamposite One Tianjin
Research design and findings sneakers feature lotus flowers and “fish” (i.e. symbol of wealth),
celebrating the Year of the Goat 2015 and basketball culture of
Pretest of stimulus material Tianjin City (Briguglio, 2015). The Gucci shoulder bag features
We conducted three studies to test our research model an engraved gold “Ramage” decoration on hibiscus red calf
(Figure 1). First, a pretest was conducted to select stimulus leather (Chan, 2017) and hibiscus symbolizes happiness and
brands using Chinese elements in their products. They were honor in the traditional Chinese culture (Welch, 2013).
selected from brand ranking sources, such as the Interbrand
Top 100 Best Global Brands (He and Wang, 2015). A total of
12 stimulus brands were selected from the fashion accessories,
Study 1
such as shoulder bags, jewelry and shoes because Chinese The goal of Study 1 was to test H1a, H1b, H2a and H2b.
elements are frequently used by fashion brands or luxury Specifically, this study tested the effect of perceived cultural
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compatibility and CEA on PIGBCE among Chinese Chinese version of the scales corresponds to the English
consumers and Chinese immigrants living in North America, version.
respectively.
Exploratory factor analysis
Method CEA was a construct first used to study global brands with
A survey questionnaire was developed in Chinese and Chinese elements, and the items were developed from different
administered to a panel of Chinese participants through studies. Therefore, exploratory factor analysis was required.
Wenjuanxing (i.e. the equivalent to Amazon MTurk), and a Lee et al. (2017) found that only two factors of TCPs (i.e.
panel of Chinese immigrants through Amazon MTurk. Thus, cultural/historical integrity and aesthetic properties) have
there is no translation issue between these two groups. We significant effects on PIs, and thus we adopted these two factors
collected 56 valid responses from Chinese participants consisting of eight items. We combined the data (N = 105)
(Female = 51.8%) and 98 responses from Chinese immigrants collected from China and North America, and only focused on
living in North America. We used filter questions regarding the construct of CEA. The eight items of CEA (Table 1) were
immigration status and Chinese language fluency (e.g. “Are entered into an exploratory factor analysis. According to the
you a permanent residency holder or do you have citizenship in Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test, the KMO
Canada or the USA?”). The filter questions screened out the (0.77) and the Bartlett’s Test ( x 228 = 351.4, p = 0.000) provide
participants who are neither Chinese immigrants nor the evidence that the data were suitable for factor analyses
Chinese immigrants living in North America, leaving 49 (Malhotra, 2004). Two factors with eigenvalues higher than 1
were extracted from the eight items by using Principal
responses usable (Female = 46.9%).
Component Analysis. The two factors accounted for 63.4% of
All participants were given the stimuli of two pairs of
the total variance. Varimax with Kaiser Normalization method
products: Nike sneakers and Gucci shoulder bag to evaluate
was used to rotate the factors. Table 1 shows that items “The
cultural compatibility; Timberland boots and Tiffany necklace
product has a nice color” and “The product looks nice” loaded
to evaluate CEA. After browsing each product, they answered
on the aesthetic factor very high (> 0.8) and the other six items
questions regarding their perceived cultural compatibility and
loaded on the cultural/historical integrity (> 0.4). The overall
CEA. The corresponding PIs and brand familiarity (BF) for
internal reliability was satisfactory (a = 0.91), and this result
each product were measured four times. Finally, participants
supports the appropriateness of adapting the scales developed
answered demographic information such as gender, age, by Littrell et al. (1993), Revilla and Dodd (2003) and Chang
occupations and education (Appendix 2). et al. (2008).
The measure of cultural compatibility (CC) was adapted
from the scale of He and Wang (2017), whose research was Confirmatory factor analysis
conducted in the Chinese cultural setting (e.g. “Not congruent/ We combined data from China and North America with two
completely congruent.” 1= strongly disagree, 7 = strongly stimuli data collapsed for the purpose of confirmatory factor
agree). The third reverse item (i.e. “Not conflicting/completely analysis (N = 210), as Nunnally (1967) suggests 10 cases per
conflicting) was reversed when translated into Chinese. We variables for the sample size. CFA was performed using AMOS
adopted Hung et al.’s (2011) scale to assess PIs (e.g. “I am 25.0 to confirm the factor structure. One item of cultural
likely to purchase this product.” 1= strongly disagree, 7 = compatibility scale was dropped, as it loaded weakly (l < 0.40)
strongly agree). We adopted Kent and Allen’s (1994) scale to on its target factor. Considering fairly large modification
measure BF as a control variable (i.e. “Familiar/Unfamiliar,” indices, we modified the initially hypothesized model by
“Experienced/Inexperienced” and “Knowledgeable/not correlating two error terms (i.e. “The product has a nice color”;
knowledgeable”). We adapted the scales developed by Littrell “The product looks nice”) because of content overlap (Byrne,
et al. (1993), Revilla and Dodd (2003), and Chang et al. (2008) 2016). Similarly, another two error terms (i.e. “The product
to measure CEA (e.g. “The product uses the traditional has traditional elements”; “The product has traditional motifs
Chinese color.” 1= strongly disagree, 7 = strongly agree). For or patterns”) were correlated because of content overlap. The
all the measures, we used back-translation to make sure the CFA with the remaining items led to an acceptable model fit
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( x 2 = 232.3, df = 96, x 2 /df = 2.42, CFI = 0.944, IFI = 0.945, Table 3 Convergent and discriminant validity
RMSEA = 0.082, Standardized RMR = 0.054; p = 0.000). All
Constructs AVE CEA CC BF PI
other factor loadings (Table 2) were statistically significant (p <
0.001) and acceptable (l > 0.50), suggesting convergent CEA 0.522 0.722
validity (Kline, 2011). The average variances extracted (AVE) CC 0.648 0.416 0.805
for each construct was above the 0.50 cut-off point, supporting BF 0.873 0.250 0.172 0.934
convergent validity (Hair et al., 2010). We then assessed PI 0.795 0.679 0.215 0.499 0.892
discriminant validity using Fornell and Larcker’s (1981) Notes: AVE = Average variance extracted. The square roots of the AVEs
criteria. The square roots of the AVEs for all constructs (i.e. are reported on the diagonal in italics; values below the diagonal are
CEA, CC, BF and PI) were greater than the correlations construct correlations
between the constructs, supporting discriminant validity
(Table 3).
Study 2 A
Results Study 2 A aimed to test H3a, H3b, H4a and H4b. Specifically,
Data collected from China and North America were analyzed we examined the relationship between cultural pride (CP) and
separately. We collapsed data from two stimuli, as this method PIGBCE among Chinese consumers and among Chinese
was used by many researchers (He and Wang, 2015; Lunardo immigrants, respectively. Furthermore, we examined the
and Guerinet, 2007). All reliability values for China and North moderating role of cultural pride among Chinese immigrants.
America are summarized in Table 4. Hierarchical regression
was used to test H1a, H1b, H2a and H2b. First, BF and PIs Method
were put into the model, and then we regressed PIs on Two questionnaires were designed in Chinese and
perceived cultural compatibility after controlling for brand administered to a panel of Chinese participants through
familiarity. The results showed that perceived cultural Wenjuanxing and a panel of Chinese immigrants through
compatibility had a positive main effect on PIs among Chinese Amazon MTurk. These two questionnaires were the same
participants ( b = 0.36, t = 4.51, p < 0.001). These findings except that acculturation was measured in North America. We
were replicated among Chinese immigrants ( b = 0.32, t = 3.20, collected 105 valid responses from Chinese participants
p < 0.01). Therefore, H1a and H1b are supported. Further, we (Female = 53.8%). We recruited 159 Chinese immigrants, but
regressed PIs on CEA, and the results showed that CEA the filter questions regarding immigration status and Chinese
positively affected PIs ( b = 0.45, t = 6.61, p < 0.001) among language fluency screened out the participants who are neither
Chinese participants. These findings were also replicated Chinese immigrants nor Chinese immigrants living in North
among Chinese immigrants ( b = 0.60, t = 7.88, p < 0.001). America, leaving 83 valid responses (Female = 47%). The
Thus, H2a and H2b are supported. participants first answered questions about their self-
assessment their pride in of the Chinese culture. Then, they
Table 2 Factor loadings in Study 1 were shown the stimulus of the Chinese wealth charm of
Standardized Tiffany & Co. necklace. After that, the participants indicated
Construct items loadings their PIs toward the product and their familiarity with the
brand. Participants in North America answered questions
Chinese elements authenticity (CEA) (a = 0.901) regarding acculturation. Finally, participants provided
The product uses the traditional Chinese color 0.582 demographic information.
The product has the traditional Chinese designs 0.763 We adopted Liu and Xing (2017)’s four-item cultural pride
The product has a nice color 0.639 scale developed in the context of Chinese culture (e.g. “I feel
The product looks nice 0.614 very much attached to all aspects of my native/ethnic culture.”
The product has traditional elements 0.748 1= strongly disagree, 7= strongly agree). This scale consists of
The product has traditional motifs or patterns 0.735 three items from Laroche et al.’s (2007) scale of ethnic
The product conforms to my cultural knowledge 0.838 identification related to cultural/ethnic pride, and one item
The product conforms to my historical value 0.815 from the scale of national dis-identification developed by
Cultural compatibility (CC) (a = 0.785) Verkuyten and Yildiz (2007) for better construct validity. We
Not congruent/completely congruent 0.830 adopted Kim et al.’s (2004) acculturation measure consisting of
Not compatible/completely compatible 0.779 three dimensions such as English/French language use, English
mass media exposure and English–Canadian social interaction
Brand familiarity (BF) (a = 0.952) (e.g. “I speak English when I am angry.” “The newspapers/
Familiar/unfamiliar 0.892 magazines I read are mostly in the English language.” 1=
Experienced/Inexperienced 0.960 strongly disagree, 7 = strongly agree). The other measures were
Knowledgeable/not knowledgeable 0.950 the same ones used in Study 1, such as BF and PIs.
Purchase intentions (PIs) (a = 0.921)
I have strong possibility to purchase Brand X’s product 0.903 Confirmatory factor analysis
I am likely to purchase Brand X’s product 0.865 We combined data from China and North America for the
I have high intention to purchase Brand X’s product 0.907 purpose of confirmatory factor analysis (N = 188). CFA was
performed using AMOS 25.0 to confirm the factor structure.
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The CFA with all the items led to an acceptable model fit ( x 2 = was above the 0.50 cut-off point, supporting convergent
68.701, df = 32, x 2 /df = 2.15, CFI = 0.971, IFI = 0.970, validity. The square roots of the AVEs for all constructs (CP,
RMSEA = 0.078, Standardized RMR = 0.049; p = 0.000). BF and PI) were greater than the correlations between the
Table 5 shows that all factor loadings were statistically constructs, supporting discriminant validity (Table 6).
significant (p < 0.001) and most of them were strong (l >
0.70) except that one item (l = 0.484) of CP was near the Results
recommended threshold of 0.5 (Hair et al., 2010), suggesting Data collected from China and North America were analyzed
convergent validity (Kline, 2011). The AVE for each construct separately. Hierarchical regression was used to test H3a and
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Table 5 Factor loadings in Study 2A H3b. After controlling for brand familiarity, we regressed PIs on
cultural pride. The results showed that cultural pride had a
Standardized
positive main effect on PIs among Chinese consumers ( b =
Constructs items loadings
0.25, t = 2.73, p < 0.01). These findings were replicated among
Cultural pride (CP) (a = 0.797) Chinese immigrants ( b = 0.32, t = 3.01, p < 0.001). Thus,
My cultural/ethnic background has the most H3a and H3b were supported.
positive impact on my life 0.812 For the moderation effect test in the context of Chinese
I feel very much attached to all aspects of my immigrants, we followed the methods and procedures of
native/ethnic culture 0.706 Sharma et al. (1981). First, the moderator was tested to see
I feel very proud of my cultural ethnic background 0.910 whether it interacted with the independent variable by using the
I always have the tendency to distance myself from Moderated Regression Analysis (MRA) method. There was no
my background culture or ethnic identity 0.484 statistically significant interaction between cultural pride and
acculturation on PIs (p = 0.27). Then, we tested the
Brand familiarity (BF) (a = 0.932)
moderation effect through subgroup analyses. First, the
Familiar/unfamiliar 0.912
Experienced/Inexperienced 0.890
acculturation score was sorted according to an ascending order,
Knowledgeable/not knowledgeable 0.924 and were trichotomously divided into “high,” “moderate” and
“low” subgroups. We then run regressions separately. As
Purchase intentions (PIs) (a = 0.915) expected, there was an interaction for the “high” group
I have strong possibility to purchase Brand X’s ( b high = 0.52, t = 3.13, p < 0.01), and for the “moderate”
product 0.922 group ( b moderate = 0.57, t = 3.56, p < 0.01), supporting H4a.
I am likely to purchase Brand X’s product 0.842 However, the results showed that there was no interaction of
I have high intention to purchase Brand X’s product 0.891 cultural pride and acculturation for the “low” group (p = 0.93),
supporting H4b. According to the results, the moderation effect
of acculturation on the relationship of cultural pride and PIs is
non-linear. Table 7 summarize all results of hierarchical
regressions.
Table 6 Convergent and discriminant validity
Constructs AVE CP BF PI Study 2B
CP 0.555 0.745 Study 2B aimed to replicate the findings of Study 2 A by using
BF 0.826 0.227 0.908 two stimuli.
PI 0.787 0.389 0.350 0.887
Notes: AVE = Average variance extracted. The square roots of the AVEs Method
are reported on the diagonal in italics; values below the diagonal are We recruited 76 Chinese participants from Wenjuanxing, and
construct correlations 72 responses were valid (Female = 59.7%). The procedure was
similar to Study 2 A. Participants first answered the questions
Step 2
Cultural pride 0.25* (0.30**) 0.32**
Cultural elements 0.45** 0.60**
authenticity
Cultural compatibility 0.36** 0.32*
Brand familiarity 0.38** 0.12(p = 0.24) 0.45** 0.28** 0.28* (0.49**) 0.23*
R2 0.33 0.13 0.59 0.44 0.15 (0.36) 0.20
Adjusted R2 0.32 0.11 0.58 0.43 0.13 (0.34) 0.18
Notes: CCO = Chinese Consumers, CI = Chinese Immigrants, **p < 0.001, *p < 0.01; two studies (Study 2 A and Study 2B) tested the main effect of
cultural pride on PIs in China, and the figures in brackets in the column “Cultural pride – CCO” indicate the results of Study 2B
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about their self-assessment of cultural pride. Then, they were toward global brands incorporating Chinese elements. While
shown the stimulus of the Chinese wealth charm of Tiffany & prior research suggests that a standardization strategy allows
Co. necklace, and we measured their PIs and brand familiarity. luxury brands to maintain distinctive brand images and
Afterwards, they were shown the stimulus of Gucci shoulder strengthen brand values (Kapferer and Bastien, 2009), our
bag, and then we measured their PIs and brand familiarity. findings show that incorporating Chinese elements
Finally, participants provided demographic information. All aesthetically is essential in the Chinese market and North
the measures were the same as the ones we used in Study 2 A. American market, where Chinese immigrants are target
consumers. However, for a global brand incorporating Chinese
Results elements, whether such cultural mixing strategy is successful
Hierarchical regression was used to analyze the collapsed data depends on the perceived cultural compatibility between the
from the two stimuli and test the main effect of cultural pride on brand and local elements, the perceived CEA, and the cultural
PIs among Chinese consumers. After controlling for brand pride rooted in an individual’s ethnic identity and cultural
familiarity, we regressed PIs on cultural pride. The results heritage.
showed that cultural pride had a positive main effect on PIs Second, our research not only confirms the previous findings
among Chinese consumers ( b = 0.30, t = 4.40, p < 0.001), that cultural compatibility between a global brand and Chinese
supporting H3a and confirming the findings in the previous elements positively affects PIs (He and Wang, 2017), but it also
study. extends the findings to the context of Chinese immigrants in
North America. Further, this research contributes to the
General discussion artification literature by empirically testing how Chinese
consumers and Chinese immigrants respond to global brands’
Overall, this research examined how consumers responded to
fusion of Eastern and Western cultures. More specifically, the
cultural mixing in global branded products in Chinese and
higher fit between these two cultures leads to the stronger PIs.
North American markets. More specifically, our research
Third, while prior research on artification and luxury brands
investigated the effects of perceived cultural compatibility,
focuses on brand image, value, brand extendibility and brand
perceived CEA and cultural pride on PIGBCE among Chinese
equity, our study focuses on CEA overlooked by the literature.
consumers in China and Chinese immigrants in North
Moreover, this research is, to the best of our knowledge, the
America. Furthermore, we examined the moderating role of
first to study the construct of CEA rather than brand
acculturation in the relationship between cultural pride and
authenticity, which is defined as a brand’s originality,
PIGBCE among Chinese immigrants. We tested all our
uniqueness, ability to keep its promises and unaffectedness
hypotheses with three studies, and our findings show that
(Jian et al., 2019). Therefore, this research contributes to the
perceived cultural compatibility and CEA positively affect
literature on artification and adaptation by examining how
PIGBCE among Chinese consumers and Chinese immigrants
CEA affects consumers’ PIs toward global brands infusing
(Study 1). The findings also show that cultural pride of both
Chinese elements into their products.
Chinese consumers and Chinese immigrants positively affect
Finally, we include Chinese immigrants targeted by global
PIGBCE (Study 2 A and 2B). Further, we found that among
brands with Chinese elements and examine the moderating
Chinese immigrants, acculturation moderated the relationship
role of acculturation, contributing to the acculturation
between cultural pride and PIGBCE (Study 2 A). In other
literature in the context of consumption. Prior qualitative
words, when the level of acculturation is high, there is a
research on the postassimilationist acculturation model shows
stronger relationship between cultural pride and PIGBCE.
that immigrants use their original cultural artifacts to maintain
Table 8 provides a summary of all direct effects results.
their home cultural identity, while adapting to local patterns of
consumption (Mehta and Belk, 1991), or they consume
Theoretical contributions commodified home country’s food and national costumes to
This research provides several contributions to different steams enhance their ethnic identity (Askegaard et al., 2005). Moving
of literature. First, it has advanced our understanding of beyond these findings, our study suggests that immigrants may
cultural mixing and hybridization of cultural products, which maintain their cultural identity through consumption of global
have not been addressed by the standardization/adaptation brands incorporating their original cultural elements. Further,
literature. Our research identifies the drivers of consumers’ PIs our findings show that the moderation effect of acculturation is
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non-linear. Specifically, when the level of acculturation is high, “Mickey Mouse” in their product design. However, the rat has
Chinese immigrants with a higher level of cultural pride are a symbolic meaning of theft and spreading disease, and thus it is
more willing to purchase global brands with Chinese elements. not as likeable as other zodiac animals in China. To avoid the
However, when the level of acculturation is low, the bad reputation of the rat, Gucci used the image of Disney
relationship between cultural pride and PIs is not significant. Mickey Mouse to make the rat cute in the hope that the cute
Mickey Mouse would appeal to the younger consumers who
Managerial implications are familiar with the Disney culture (Chitrakorn, 2020).
However, some Chinese consumers complained that Mickey
In the business world, more and more global brands have been Mouse is a character in the Western culture, which cannot
using Chinese cultural elements in their product design, symbolize the Chinese Rat. Moreover, other consumers on the
packaging, advertising and even location. However, if such an Chinese social media platform “Wechat” complained that this
adaptation strategy is implemented inappropriately by global luxury brand did not fully comprehend Chinese connotations,
brands, it will lead to negative outcomes. For example, a and the cheap design negatively impacted the distinctiveness of
Starbucks coffeehouse at the heart of China’s Forbidden City, this luxury brand image (LadyLook, 2020). Furthermore,
an important historical site, was forced to close in 2007, critics argue that numerous mice patterns on Gucci products
because there was a perceived cultural conflict between a strong such as skirts, silk pajamas, handbags and scarfs would freak
symbolic meaning of Chinese culture and Western culture (He trypophobia people out (Tan, 2020). Similarly, Givenchy’s
and Wang, 2017). In 2019, the luxury brands Coach, Givenchy design of four rats with graphic lines to create a labyrinthine
and Versace inappropriately designed their T-shirts that listed effect looks like two bats, which are now regarded as a natural
Hong Kong, Macao and Taipei as independent countries source of the novel coronavirus (Tan, 2020). As our findings
rather than cities, undermining the “One China” policy suggest, connotations evoked by the Chinese elements in the
(Robinson, 2019). This controversial product design led to product design should be compatible with consumers’
Chinese consumer’s boycotts of the brands and the termination perceptions of the Chinese culture and tradition. We strongly
of Chinese celebrities’ endorsement contract with these brands. suggest that global brands should fully comprehend the
Therefore, adopting local elements such as artifacts, symbols, symbolic meanings and cultural values of Chinese elements to
patterns and colors in an appropriate way is critical for global ensure that two cultures are appropriately and aesthetically
brands that want to appeal to local consumers. fused into the product design.
Given the significant role of Chinese consumers who Finally, this research demonstrates that cultural pride also
accounted for 90% of the constant growth of personal luxury plays an important role in the PIs of both Chinese consumers
goods market (Bain and Company, 2019), our findings provide and Chinese immigrants. Global brands can appeal to both
implications for global brands that want to target the Chinese target segments by incorporating Chinese elements that can
market and the Chinese immigrants in overseas markets. First, evoke these consumers’ cultural pride. Finally, the observed
while prior research has only examined brand authenticity such moderation effect of acculturation in this research can help
as originality and uniqueness, and the authenticity of personal marketers better understand the differences between Chinese
brands (Kucharska et al., 2020), our research has examined consumers and Chinese immigrants. Should global brands
CEA, which positively affects consumers’ PIs. There is a trend launch the Chinese New Year collections in the global market
that global brands are incorporating Chinese elements in their or in the Chinese market alone? Different marketing strategies
product design, because Chinese elements have inspired many should apply to different consumer needs (Ogden et al., 2004).
of the Western designers (He and Wang, 2017; Wang and Lin, As our findings show, if the companies know that the
2009). For example, in our study, we used the stimulus of acculturation level of Chinese immigrants in a specific market is
Timberland boots featuring gold window flower patterns with high, they may launch their products with Chinese elements to
red laces, whose designer was inspired by the essence of the target these Chinese immigrants.
traditional Chinese paper-cutting art (Sharp, 2018). Therefore,
Chinese elements used by global brands must be authentic (e.g.
color, design, traditional patterns and historical value) to make
Limitations and future research
sure the products are accepted by Chinese consumers, thus This research is not without limitations. First, we only
increasing their purchase likelihood. Another example is that examined the PIs toward global fashion brands including
the luxury brand Burberry’s Chinese-styled scarf embroidered luxury products, such as Gucci shoulder bags and Tiffany &
with the Chinese character “Fu” received negative comments Co. necklaces. However, other categories of products should be
from Chinese netizens when the image was posted on Sina studied in future research to test the generalizability of our
Weibo, a leading microblogging website in China (Zhang, findings. Second, our research did not explore how Chinese
2015). Critics argued that “Fu” should be displayed upside consumers and Chinese immigrants respond to global brands’
down to conform to the symbolic meaning of “good fortune packaging with Chinese elements. Some global brands
arrives.” As our research suggests, local consumers use CEA as incorporate Chinese elements in their product packaging
a criterion to evaluate global brands with Chinese elements. during the Chinese New Year, such as beverage companies (i.e.
Second, while global brands have adopted Chinese cultural Coke Cola and Pepsi) and cosmetic companies (i.e. Givenchy
elements, such as traditional Chinese colors, symbols and and Giorgio Armani). Future research can explore how the
motifs in their product designs, not all of these designs are perceived cultural compatibility and CEA of the packaging
effective. For example, some luxury brands launched a 2020 affect Chinese consumers’ and immigrants’ PIs. Third, global
Chinese Rat collection of products incorporating “rat” or brands not only use Chinese elements in their product design
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and packaging, but also in their advertising. Every year, Coca- pursuing these questions could provide further insights into the
Cola launches special TV advertising for the Chinese New Year phenomenon of cultural mixing in global branded products.
on Chinese mainstream media channels. The music, elements,
and colors of the advertising conform to the Chinese culture
and traditions. On the contrary, Toyota launched a print ad for References
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Appendix 1. Stimuli Figure A3 2015 Chinese New Year collection of Nike Air Foamposite
One Tianjin sneakers
Figure A1 2011 Chinese wealth charm of Tiffany & Co necklace
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Appendix 2. Demographics
Corresponding author
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