Akram
Akram
www.emeraldinsight.com/1746-8809.htm
Brand globalness
Perceived brand globalness in emerging
in emerging markets and markets
the moderating role of
291
consumer ethnocentrism
Received March 2010
Aneela Akram Revised March 2010
IAE (CERGAM), University Paul Cézanne Aix-Marseille, Accepted July 2010
Aix-en-Provence and Marseille, France
Dwight Merunka
IAE (CERGAM), University Paul Cézanne Aix-Marseille,
Aix-en-Provence and Marseille, France and
EUROMED Management, Marseille, France, and
Muhammad Shakaib Akram
IAE (CERGAM), University Paul Cézanne Aix-Marseille,
Aix-en-Provence and Marseille, France
Abstract
Purpose – The purpose of the paper is to study the impact of perceived brand globalness (PBG) on
consumers’ purchase intention (PI) and the mediating role of perceived brand quality (PBQ) and
perceived brand prestige (PBP) in this relation, among consumers in emergent markets. The paper also
investigate the moderating role of consumer ethnocentrism (CE) on the relation between PBG and both
PBQ and PBP.
Design/methodology/approach – A web-based survey was conducted in an emerging market
(Pakistan) using both global and local brands. The model was tested using structural equation
modeling.
Findings – PBG positively impacts both PBQ and PBP while PBQ appears to be a stronger mediator
than PBP. The moderating role of CE between PBG and PBQ and between PBG and PBP has been
demonstrated; the weaker the CE the stronger the relationships.
Research limitations/implications – A convenience sample was used and caution must be taken
when generalizing findings from this study. Managers of global brands must meet consumers’
expectations in terms of the quality of their brands and may highlight the prestige associated to them.
Low ethnocentric consumers favor global brands, rendering this segment attractive for the managers
of global brands.
Originality/value – The paper extends previous work on the role of brand globalness by focusing
on an emergent market where the choice problem between local and global brands is acute and by
demonstrating the moderating role of CE.
Keywords Pakistan, Emerging markets, Consumer behaviour, Ethnocentrism, Global brands
Paper type Research paper
International Journal of Emerging
1. Introduction Markets
Vol. 6 No. 4, 2011
A global brand is the one that standardizes aspects of its brand communication pp. 291-303
q Emerald Group Publishing Limited
program like name, logo, image, packaging, positioning and consumers in multiple 1746-8809
countries consider it to be global (Akaka and Alden, 2010). The economic and political DOI 10.1108/17468801111170329
IJOEM dominance of Western nations, however, gives certain meaning to the term “global”
6,4 which means “Western/foreign” in people’s minds, either consciously or unconsciously
(Özsomer and Altaras, 2008). Local brands, in turn, are those which are produced
locally and are available in a specific region. These brands may play on the potential
identification between the brand and consumers by positioning themselves as sons of
the soil who understand local consumers (Cayla and Eckhardt, 2007).
292 In emerging markets, the consumers are increasingly faced with a choice between
local and nonlocal (or foreign) brands and their choice making is worth researching
(Batra et al., 2000). A majority of these foreign brands available to consumers in
emergent markets are global brands present in many countries around the globe,
emergent or developed. However, consumers are not necessarily brand experts and
may well ignore if a foreign brand is global or not. Therefore, what may influence
consumer judgments about brand is perceived brand globalness (PBG) which we
define as the perception that consumers hold of the brand being global, i.e. being
available everywhere on the globe with standardized products and communications.
The current research focuses on the psychological mechanisms that explain how PBG
affects consumer judgments and consumer behavior. The study investigates the
mechanisms through which brand globalness might impact consumers’ purchase
intention (PI) for the brand and explores the role of consumer ethnocentrism (CE) in the
process. CE describes the tendency of people to reject the purchase of foreign products
as they may consider it to be unpatriotic. It has been studied both in developed
and developing countries (Batra et al., 2000; Douglas and Nijssen, 2003;
Luque-Martinez et al., 2000; Netemeyer et al., 1991; Papadopoulos et al., 1990). Shimp
and Sharma (1987) advocate that the concept of CE can improve our understanding of
how consumers and corporate buyers compare domestic and foreign-made products,
how and why their judgments can be subject to various forms of bias and error. It is,
therefore, a relevant concept when studying the impact of PBG on consumer behavior.
The success of global brands has been described and analyzed over the past decades
(Aaker and Joachimsthale, 1999; Kapferer, 1992; Keller, 1997). The commendable
success of some global brands such as, Coca-Cola, Sony, McDonalds, Mercedes,
Microsoft, Chanel or Levi’s has encouraged many firms to develop their own global
brands (Craig and Douglas, 2000). In the last few years, a number of companies have
even engaged in reducing brand portfolios with preference given to global brands
( Johansson and Ronkainen, 2004). Unilever reduced the number of brands from 1,600 to
400 leading brands enabling it to concentrate resources on leading global brands.
Colgate-Palmolive has invested much to make Colgate Total a global brand name and
Frito-Lay followed the same strategy with its Lay’s brand (Özsomer and Altaras, 2008).
It appears that global brands (such as Mercedes, Sony or Apple) are generally associated
with prestige and quality.
Global brands have been studied from the consumers’ perspective (Batra and Alden,
2002; Batra et al., 2000; Holt et al., 2004; Özsomer and Altaras, 2008). This not only
helps resolve the globalization vs localization conundrum (Kreutzer, 1988; Onkvisit
and Shaw, 1989; Samiee and Roth, 1992) but also helps with formulating appropriate
strategies to overcome resistance to foreign goods, if any (Singh and Upadhyay, 2006).
The early study of Batra et al. (2000) demonstrates the impact of brand non-localness
on attitude toward the brand within a developing country (India). They introduced the
potential moderating effect of CE arguing that brand non-localness should favor
attitude toward the brand especially when consumers are not very attached to local Brand globalness
values and are not very ethnocentric. On the contrary, the ethnocentric consumer in emerging
should not form a positive attitude toward the brand due to the fact that it is foreign.
They found a direct impact of brand nonlocal origin of brand attitudes but failed to markets
demonstrate the moderating role of CE in that relation. Steenkamp et al. (2003)
proposed a more complex model in which brand globalness affects PI for the brand
through three separate paths: brand globalness directly impacts PI (as in Batra et al., 293
2000) and indirectly through two separate mediators, perceived brand quality (PBQ)
and perceived brand prestige (PBP). They found that the effect of PBG on PI is
mediated by PBQ and PBP but found no direct effect of BPG on PI. They also tested a
moderating effect of CE but they limited this moderating effect to the direct
relationship between BPG and PI. They found some evidence of this moderating effect
although the global effect of PBG on PI was insignificant in both countries investigated
(the USA and Korea). Our goal is to replicate and extend these findings within an
emerging country where brand globalness might be important for prestige and
self-image. We posit that the relationship between BPG and PI is fully mediated by
PBQ and PBP and, therefore, do not hypothesize any direct relationship between BPG
and PI already found to be insignificant in Steenkamp et al. (2003). Also, we posit that
the moderating role of CE will be exercised both on the relation from PBG to quality
and on the relation from PBG to prestige. This moderating role has not been tested
before and seems logical since the perceptions of quality and prestige finally determine
the PI of the brand. Retesting this potential role of CE is also essential since
contradictory results appear in the literature with no moderating effect in Batra et al.
(2000) and a slight moderation in Steenkamp et al. (2003).
The paper is structured as follows: we define the key constructs used here (global
and local brands, PBG and CE). We then develop a series of hypotheses followed by the
theoretical model. Afterwards, we test the hypotheses empirically using structural
equation modeling. We finally conclude with implications, limitations and future
research avenues.
2. Key constructs
Global brands are available to consumers under the same name in multiple countries
and these generally have similar and centrally coordinated marketing strategies. They
have an extensive geographic reach, are perceived by consumers as global and have a
uniform positioning and image worldwide (Craig and Douglas, 2000; Yip, 1994). Such
brands are built on powerful narratives with universal appeal, e.g. for Levi’s, the myth
of independence; for Nokia, of connection (Cayla and Eckhardt, 2007). Like
entertainment stars, sports celebrities and politicians, global brands have become a
lingua franca for consumers all over the world (Holt et al., 2004). Consumers tend to
prefer global brands because of high perceived quality and higher prestige and
fundamentally because of brand globalness which is defined as the degree to which the
brand is perceived as having multimarket reach and thus is believed to be globally
available, desirable and demanded (Steenkamp et al., 2003). In turn, local brands are
developed for a specific national market and these are almost without exception sold
only domestically or within a limited geographical area (such as West Africa)
(Batra et al., 2000; Craig and Douglas, 2000). Local brands enjoy a high awareness level
IJOEM as well as trust and consumers relate them to their lives because these are deeply
6,4 culturally embedded in the domestic market.
CE refers to the beliefs regarding the appropriateness of purchasing foreign-made
products and implies that buying imports is wrong because it is unpatriotic and
detrimental to the domestic economy and employment (Supphellen and Gronhaug,
2003). The credit for inspiring research into the phenomenon of CE goes to Shimp and
294 Sharma (1987) who developed and psychometrically validated a scale named the
consumer ethnocentric tendencies scale (CETSCALE). They found that highly
ethnocentric consumers are inclined toward biased judgments because these
consumers stress the positive aspects of domestic products ignoring the virtues of
foreign-made products.
From a managerial perspective, ethnocentrism refers to consumers’ preference for
domestic products and prejudice against imports (Yelkur et al., 2006). Across cultures,
researchers have shown that ethnocentrism is a global phenomenon, but there are
differences in the degree of ethnocentrism expressed by consumers, depending on the
country under study. People from developed and more modern nations tend to be less
ethnocentric than their counterparts in developing and emerging nations
(Lindquist et al., 2001; Sharma et al., 1994). In developing countries, however, low
ethnocentric consumers have strong positive stereotypes of foreign products from
developed countries (Supphellen and Gronhaug, 2003); for example, Hungarians and
Russian consumers generally evaluate Western products more positively than national
products (Ettenson, 1993; Papadopoulos et al., 1990). We study the role of ethnocentrism
within an emerging country (Pakistan) and its potential moderating effect on the
relationships between brand globalness and both quality and prestige judgments.
4. Research methodology
4.1 Sample
As the purpose of the study was to replicate and extend previous findings in an
emergent country, we selected Pakistan which has been categorized as belonging to the
“Next Eleven”, the 11 countries with high economic potential for the 21st century
(Wilson and Stupnytska, 2007). A web-based survey, using a convenience sample
drawn from a population of Pakistani consumers of global and local brands, was
conducted in May 2008. An Internet snowball procedure was used. The respondents
IJOEM Consumer
6,4 Ethnocentrism
H4a H4b
Perceived Brand
H1, H3 Quality
296
Perceived Brand Consumers’
Globalness Purchase Intention
H2
Figure 1. Perceived Brand
Theoretical Model Prestige
were sent a link to the survey questionnaire and were asked to answer the survey and
send the questionnaire to their contacts as well. This elicited 130 participants (each
participant responded for four brands, generating 130 £ 4 ¼ 520 observations). About
17 respondents (with 68 invalid questionnaires) containing atypical cases, repeated or
incomplete responses were eliminated, finally obtaining 113 valid questionnaires and
452 usable observations. Among study participants, 58 percent were male; 59 percent
were 29 years old or less and 41 percent were 30-39 years old.
4.3 Instruments
All the scales used in this study have been derived from scales previously used in the
literature and are presented in the Appendix. All items used for this study were
measured on a seven-point Likert scale from strongly disagree (1) to strongly agree (7).
PBG was measured using an adopted version of Batra et al. (2000); PBP through the
scale of Han and Terpstra (1988); PBQ through the scale of Keller and Aaker (1992);
consumers’ PI by the scale of Dodds et al. (1991). CE was measured using the four-items
from CETSCALE of Shimp and Sharma (1987) having the highest loadings.
5. Data analysis
The data obtained were subjected to a confirmatory factor analysis (Anderson and
Gerbing, 1988) to evaluate internal consistency and validity of the underlying
constructs. A confirmatory factor analysis, using AMOS with maximum likelihood (ML)
estimation method, was conducted to ensure the validity and unidimensionality of the Brand globalness
underlying constructs. All items loaded on the appropriate factors and all loadings were in emerging
significant at p , 0.01. Results for the proposed model revealed an adequate fit
(x 2 ¼ 322.508, df ¼ 98, GFI ¼ 0.913, AGFI ¼ 0.879, TLI ¼ 0.959, CFI ¼ 0.965 and markets
RMSEA ¼ 0.071). Jöreskog’s rho was selected to test the reliability of internal
consistency of the scale as it is less sensitive to the number of items. Jöreskog’s rho for
PBG was 0.939, 0.898 for PBQ, 0.967 for PBP and 0.936 for consumers’ PI. All these 297
values signify high level of reliability of the scale. The average variance extracted (AVE)
was greater than 0.5 for each construct, thus assessing convergent validity. Moreover,
the AVE for each dimension was greater than the shared variance (Fornell and Larcker,
1981) which shows the discriminant validity of the scale.
A confirmatory factor analysis was also carried out for CE. The fit indexes of
one-dimensional CFA model for CE indicated overall adequate fit to the data, as
evident by x 2 ¼ 5.611, df ¼ 2, GFI ¼ 0.994, AGFI ¼ 0.970, TLI ¼ 0.982, CFI ¼ 0.994,
and RMSEA ¼ 0.063. All the factors’ loadings were above 0.56 and significant
( p , 0.01). Jöreskog’s rho (0.806) indicated reliability of the construct and the AVE was
0.51 indicating convergent validity.
Construct Mean SD
Direct effects
PBG PBQ 0.418 0.038 11 , 0.001
PBG PBP 0.303 0.043 7.047 , 0.001
PBG PI 0.055 0.042 1.31 Not Sig
PBQ PI 0.406 0.050 8.12 , 0.001
PBP PI 0.060 0.050 1.2 Not Sig
Indirect effects
Table II. PBG PI 0.186 0.024 7.750 , 0.001
Standardized estimates Total effects
for the overall model PBG PI 0.246 0.038 6.474 , 0.001
consumers believe in the low quality of foreign products (Netemeyer et al., 1991) and Brand globalness
would not like to know about foreign brands on the attribute level (Supphellen and in emerging
Gronhaug, 2003). The results of the current study demonstrate that contrary to the
high ethnocentric consumers, low ethnocentric consumers associate high quality and markets
prestige with the global brands which determines their PI.
Estimate SE p-value
Low ethnocentric
PBG ! PBQ 0.306 0.035 , 0.001
PBG ! PBP 0.226 0.036 , 0.001 Table III.
High ethnocentric Unstandardized
PBG ! PBQ 0.180 0.038 , 0.001 structural estimates
PBG ! PBP 0.120 0.039 , 0.01 for CE
IJOEM acknowledged in creating and maintaining positive brand image and reputation of the
6,4 local brands to compete with global brands.
The study has considered a limited number of brands all belonging to fast moving
consumer goods (FMCG) categories. Future studies should test the proposed model with
other local and global brands in other categories in order to generalize the findings. The
data were collected through the internet and this may have introduced a self selection
300 bias, especially within an emerging market. However, this could also have favored the
fact that study participants were exposed to both global and local brands, which is a
condition for having both in their evoked set. In any case, sampling is an issue that
should be addressed in future research. Another future avenue can be exploring other
moderating factors than CE such as culture, animosity or consumers’ demographics,
which may well have a significant effect on consumers’ perceptions of global brands.
Consumers from different cultures exhibit different levels of ethnocentric tendencies
which call for cross-cultural studies involving other emerging and developing countries.
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Corresponding author
Aneela Akram can be contacted at: aneela.akram@live.com