When foreign brands appear local, and local brands appear foreign

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.

2016 ◽  
Vol 28 (5) ◽  
pp. 878-897 ◽  
Author(s):  
Fandy Tjiptono ◽  
Haja Tiana Rakotondrainibe Andrianombonana

Purpose Brand origin (BO) has been suggested as an important determinant of brand evaluation and purchase intention. However, previous studies have indicated that consumers have limited knowledge and ability to recognize national origin of brands. The purpose of this paper is to assess brand origin recognition accuracy (BORA) and its relationships with brand evaluation and purchase intention in the Indonesian laptop market. Design/methodology/approach A convenient sample of 195 people in Daerah Istimewa Yogyakarta participated in the survey. They were given a list of 18 laptop brands (four local and 14 foreign brands) and were asked to identify their actual national origins. Findings The study found that consumers are more likely to misidentify than correctly recognize a true BO. This limited ability also has contributed to the low BORA scores for both local and foreign brands. Brand evaluation was found to be positively correlated with purchase intention. However, the current study could only find partial supports for the relationship between BORA scores and brand evaluation as well as purchase intention. Practical implications Many Indonesian consumers are unaware of the laptops’ BO, whether it is foreign or local. Companies need to inform, educate, and/or remind consumers of their brand’s true origin and avoid being associated with a weaker country image. Furthermore, despite all four Indonesian laptop brand names seem to use non-Indonesian names, only one brand gains a slightly better brand evaluation from favorable misclassification. It may suggest that the effectiveness of foreign branding strategy in the Indonesian laptop market is debatable. Originality/value This is one of the few studies examining BORA in Indonesia, the world’s fourth most populous country and the largest laptop market in Southeast Asia.


2016 ◽  
Vol 6 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Khaled Samaha ◽  
Hichem Khlif

Purpose – The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to provide directions for future research. Design/methodology/approach – The review focusses on four main streams including: first, the motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS; third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies specifically devoted to developing countries. Findings – Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting IFRS in developing countries can be justified by two main theories which are: the economic theory of network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical evidence in developing countries to confirm these theories is limited. Regarding the second stream relating to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research is very limited. It was evidenced in the very few research studies conducted, that global disclosure standards are optimal only if compliance is monitored and enforced by efficient institutions. Practical implications – The author’s study attempts to provide a foundational knowledge resource that will inform practitioners, researchers and regulators in developing countries about the relevance of the different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS. Originality/value – Compared to developed countries, the four streams outlined remain under-researched in developing countries. Therefore, researchers should examine these topics in developing countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS and their relevance to developing countries. In addition, researchers should embark on identifying new theories to explain the adoption of and compliance with IFRS in developing countries that take into consideration the socioeconomic culture of these settings.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sherry Xueer Yu ◽  
Guang Zhou ◽  
Jing Huang

PurposeThis article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and product quality.Design/methodology/approachThe authors conducted two studies to test our hypotheses. In Study 1, the authors explored consumers' general preferences for domestic and foreign brands. Based on the evidence, Study 2 further explored the moderating roles of decision focus and product quality.FindingsIn general, consumers in developing countries prefer foreign brands. The effect can be moderated by the decision focus that this preference will be more obvious when consumers buy for others than when they buy for themselves. Product quality can also moderate the role of decision focus; in other words, consumers' preference for foreign brand when buying for others will be stronger when the product quality is low than when the product quality is high.Practical implicationsForeign brands have a natural appeal to local consumers in developing countries. Moreover, foreign brands can also invoke consumers' awareness of buying for others (such as giving gifts) to boost sales. Domestic brands are at a disadvantage comparing to foreign brands, but they can increase their attractiveness by invoking consumers' awareness of rewarding themselves. In addition, domestic brands need to improve product quality to fundamentally improve their competitiveness.Originality/valueThe research contributed to literature by combining decision focus and product quality in studying consumer preference for domestic and foreign brands from the perspective of construal level theory, which provides valuable insights in the field of international marketing and consumer behavior.


2017 ◽  
Vol 34 (2) ◽  
pp. 224-238 ◽  
Author(s):  
Byeong-Joon Moon ◽  
Han-Mo Oh

Purpose The purpose of this paper is to provide an understanding of the country-of-origin (COO) effect on overseas distributors’ behaviour in international marketing channels. Integrating the theory of planned behaviour (TPB) and the concepts of country-induced biases, the current study develops an empirically testable model that explains and predicts overseas distributors’ behaviour in international marketing channels. Design/methodology/approach Hypotheses were tested using primary data stemmed from a survey of channel relationships between exporters and their overseas distributors. Data were collected from 103 distributors in the USA. Findings Empirical evidence shows that attitude towards foreign brands, social valuation of the origin of brands, and perceived behavioural control affect overseas distributors’ intention to place foreign brands. In addition, country-induced bias factors – buyer animosity and country-related affect to the origin of manufacture – are considered to be the antecedents of attitude towards foreign brands. Research limitations/implications Because this study adopted a cross-sectional design, the limitations of this method can be applied to the study. In addition, because of the research context, the results of the present research may lack generalizability. This manuscript, however, integrated the TPB and the concepts of country-induced biases and addressed the calls for research on the COO effects on overseas distributors’ decision in international marketing channels. Practical implications The manuscript suggests that to build positive attitudes towards foreign brands, a firm should focus on promotions through various media in international markets to lower animosity and the perceived risk to the origin of manufacture. In addition, firms with foreign brands need to identify and target a segment that feels comfortable about spending their resources on those brands. Finally, international marketers should focus on creating positive attitudes towards foreign brand goods and proper pricing strategies. Originality/value This manuscript fills the knowledge gap of the COO effect on organizational buyer behaviour in international marketing channels.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Talha Salam ◽  
Katherine Taken Smith ◽  
Faria Mehboob

Purpose The purpose of this study is to answer the following questions: What factors influence attitude toward green brands among Pakistani millennials? Does attitude toward green brands affect purchase intention? Does gender moderate the effect? Design/methodology/approach Data was collected through an online questionnaire distributed through multiple academic and professional networks. The questionnaire was answered by 242 Pakistani millennials. SmartPLS was used to conduct partial least square-structural equation modeling analysis. The analysis was conducted using a two-stage protocol typically followed in SEM analysis. First, an outer model assessment was done to measure construct reliability and validity. This was followed by hypotheses testing in the inner model assessment. Moderating effects were tested using the multigroup analysis feature of SmartPLS. Findings The antecedent factors tested in this study are green brand skepticism, environmental consciousness and attitude toward green campaigns. Results show that these factors do influence a person’s attitude toward a green brand, which, in turn, influences his/her purchase intention regarding that brand. Marketers of green brands can use the factors outlined in this study to improve consumer attitudes toward their company and products. This study showed that women are more positively affected by green campaigns. Green campaigns in Pakistan may be more successful if directed at female millennials. Practical implications This study conveys helpful implications for marketing managers, as specific antecedents are found to be significant predictors of purchase intention for green brands. Companies should not let the fear of consumer skepticism stop them from advocating their green products and initiatives. Green marketing campaigns can inspire millennials to encourage their social groups to be environmentally conscious. By actively helping the environment, these consumers may feel a sense of pride for their cohort and their country. As a result, Pakistan might undergo a transition to buying green brands, adopting green lifestyles and demanding green products from non-green brands. Originality/value Most of the research on green marketing and branding for millennials pertains to developed countries. However, as roughly 90% of the global millennial population live in developing countries, it is important to conduct research in developing countries. This paper specifically focuses on Pakistan, a developing country in South Asia. A propensity toward environmental issues among millennials makes this study an important one, both for the Pakistani market and for generalizations in populated developing countries having a similar profile.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tanzeela Aqif ◽  
Abdul Wahab

Purpose The increased awareness among consumers and strong competition have forced companies to put extra efforts and fulfill their social responsibility along with earning profits. The research aims to review corporate social responsibility (CSR)-related literature specifically determinants, outcomes and disclosure of CSR while adapting a comparative approach for developing and developed countries. Design/methodology/approach Based on theoretical frameworks of CSR, the authors have reviewed past studies conducted in past 10 years. While using keywords and synonyms, the databases such as JSTOR, Emerald, SpringerLink and ScienceDirect were used for searching impact factor and Scopus journals. Thematic analysis has been used as a method in the paper while identifying the key themes in study and presented them separately. Only those articles have been included which have key words in abstract. The review has been done while using logical process to improve inter-rater reliability. The key databased have been used to cover articles from multiple and diverse domains. The authors studied the key themes of literature found and identified the gaps. The paper has also incorporated the comments of authors who conducted credible studies. Findings It has been found that there are different determinants which lead the companies to involve in CSR practices in developing and developed countries. It has also been found that consumers are more aware about CSR in developed countries which effects the CSR decisions by firms. There is lack of literature available in developing states and researchers have been focused to conduct studies mainly developed countries such as in Europe and USA. Mostly the CSR behavior of companies has been linked with their financial and reputational benefits in empirical studies. There is large gap in literature on CSR involvement in small companies. The authors have developed and presented model which provides comparison of determinants leading toward CSR involvement by companies in developed and developing countries. Another framework has been developed which summarized all the factors which force the company to take part in CSR activities. Practical implications The study has made significant contribution toward research field and summarized the determinants based on social and economic factors of countries. The study also presented the comparison between CSR in developing and developed country which is valuable contribution by the authors. The study has also found lack of progress in theory development in this area which needs further attention by researchers. The authors have developed a model and framework which will contribute in field of CSR. Originality/value This is the review paper which provides integrated view of literature regarding determinants, outcomes and disclosure of CSR in developing countries while using a comparative approach.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rim Jemli

Purpose Natural disasters can undermine decades of development and threaten hundreds of lives. Previous research studies highlighted that natural disasters can cripple economic growth of one or many countries. The purpose of this paper is to ask the usefulness of natural disasters governance for macroeconomic performance and countries’ resilience. For that, this research emphasizes on the effects of natural disasters economic damages on the macroeconomic performance. Design/methodology/approach The used technique is the unbalanced panel data model which allows testing a big cross-section of population despite when one temporal observation for an individual is unavailable. The methodology focuses on testing the effect of natural disasters’ economic damages upon the main macroeconomic aggregates. For the study relevance, various tests were carried out by taking into account the different levels of development. So, two groups have been studied: developing countries (LDCs group) and developed countries (DCs group). Findings Findings point up that the effects of natural disasters’ economic damages differ from aggregate to another. In spite of the differences according to the development levels, effects are more serious for developing countries. Originality/value The originality of paper is justified by the lack of empirical studies that have questioned the links between natural disasters, macroeconomic performance and countries’ resilience. Furthermore, this study can be distinguished by the analysis of the effects for various aggregates at once and, in the same time, by allowing the comparison of these impacts by level of development.


2019 ◽  
Vol 31 (5) ◽  
pp. 740-757 ◽  
Author(s):  
Syed Ali Raza Shah ◽  
Khairur Rijal Jamaludin ◽  
Hayati Habibah Abdul Talib ◽  
Sha’ri Mohd Yusof

Purpose The purpose of this paper is to identify the critical success factors (CSFs) of integrated quality environmental management (IQEM) and analyze their impact on operational performance (OP) and environmental performance (EP) in food processing Small and medium-sized enterprises (SMEs) in Pakistan. Design/methodology/approach The study is based on collecting data using a survey questionnaire through snowball sampling technique. A total of 302 food processing SMEs operating in Punjab, Pakistan, responded to the survey. SPSS version-23 and SmartPLS-3 were used for data analysis. Findings The literature review identified leadership (LS), employee management (EM), strategic planning (SP), information management (IM), process management (PM), supplier management (SM) and customer focus (CF) as CSFs of IQEM. The results of this study found a significant relationship of all identified CSFs with operational performance in food processing SMEs whereas EM, IM, PM and SM were insignificant with the EP in the food processing SMEs. Research limitations/implications Although this study has collected data from one province, the Punjab province, it still relevant in identifying the CSFs for IQEM implementation within food processing SMEs to improve performance. Originality/value Despite the wide spread of integrated systems practices in the developed countries, little attention has been placed to implement and assess the IQEM initiatives by organizations in the developing countries. Thus, this study identified CSFs of IQEM based on empirical studies and analyzed their impact on OP and EP of food processing SMEs.


2016 ◽  
Vol 7 (4) ◽  
pp. 441-460 ◽  
Author(s):  
Afshan Azam

Purpose This study aims to investigate the determinant factors that consumers may consider in buying halal packaged food produced by non-Muslim manufacturers. Design/methodology/approach This paper develops a seven-constructs-based model. Halal awareness, Islamic brand and product ingredients are used as the pre-determined factors for measuring consumer’s purchase intention. Findings The hypotheses which were tested using partial least squares have revealed that halal awareness and product ingredients have significantly influenced Muslims’ intention to buy halal packaged food that are produced by non-Muslim manufacturers. The findings show that the religious belief, exposure and certification/logo are potential sources of Muslim awareness about halal packaged food from non-Muslim manufacturers. Research limitations/implications This research is also not exempted from its limitations. The data collected for the current study investigate general purchase toward halal products. It would be interesting if future researchers examine consumers’ purchase intention toward specific halal products for specific product categories. A comparative study is also worthy of being steered, as such a study is beneficial for producers and marketers of the halal industry. Practical implications As an overall implication, this study will provide a valuable and important information for non-Muslim halal packaged food manufacturers in identifying the appropriate strategy to fulfill the needs and wants of Muslim consumers at best. It is sufficed to suggest that the Muslim community has adopted halal food from non-Islamic brands as part of their lifestyle choice. Clearly, this gives implications to non-Muslim halal food producers. Thus, it is critical for food manufacturers to increase the level of awareness toward halal products by providing sufficient and interesting information, especially on halal certification. Hence, the manufacturer must take the opportunity to do intensive promotion to encourage more consumers to purchase their products. Originality/value This paper examines consumer purchase intention toward non-Muslim packed food manufactures in Saudi Arabia. It is critical for non-Muslim packed halal food manufacturers to increase the level of awareness toward halal products by providing sufficient and interesting information, especially on halal certification.


SAGE Open ◽  
2017 ◽  
Vol 7 (1) ◽  
pp. 215824401769715 ◽  
Author(s):  
Sara Foghani ◽  
Batiah Mahadi ◽  
Rosmini Omar

This research attempts to explore the importance of cluster-based systems in preparation for small and medium enterprises (SMEs) to go global, and it is an ongoing research. The findings of this research are aimed at providing insights to policy makers, academicians, and practitioners with the objective of creating initiatives, strategies, and policies, which reflect the primary aim of supporting SMEs in managing global challenges. SMEs that are cluster-based have the potential to facilitate the successful inclusion of SMEs in the growth of productivity and networks of global distribution. Most Asian developing countries are in the dark when it comes to this matter. The main purpose of this study is to investigate the relations between the capabilities of the networks and clusters in developing SMEs’ preparedness in facing business players in the global arena. This study’s scope includes specific Asian developing countries. Even though the issue of clusters in SMEs has been well researched in developed countries, such empirical studies are still lacking in the Asian region despite its prevalent collectivism practice. In the concluding analysis, the study intends to develop a model emphasizing the cluster-based industrial SMEs toward globalization.


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