The role of brand equity and face saving in Chinese luxury consumption

2016 ◽  
Vol 33 (4) ◽  
pp. 245-256 ◽  
Author(s):  
Noel Yee-Man Siu ◽  
Ho Yan Kwan ◽  
Celeste Yunru Zeng
Keyword(s):  
Brand Equity ◽  
Cultural Context ◽  
Purchase Intention ◽  
Chinese Consumers ◽  
Luxury Consumption ◽  
Content Type ◽  
Affective Attitudes ◽  
Premium Price ◽  
Face Saving ◽  
The Impact

Purpose This paper aims to investigate the impact of brand equity on Chinese consumers’ affective attitudes toward luxury brands and their behavioral intentions by applying the cognitive-affective model. The interaction effect between face saving and consumer’s affective attitude on luxury consumption is also examined. Design/methodology/approach A field survey was conducted using a sample of 248 luxury consumers in three Chinese cities. Findings Brand equity was found positively to predict Chinese consumers’ affective attitudes and their willingness to pay a premium price for a luxury brand. Moreover, consumers who highly value face saving were found to be more willing to pay a premium price, even though they hold a less positive attitude toward the brand. Research limitations/implications The use of cross-sectional survey data with young Chinese consumers in first-tier cities may limit the generalizability of the findings as well as precluding the making of causal inferences. Practical implications Global luxury marketers who plan to enter the China market can utilize marketing strategies to create prestigious value and appeal to consumers who seek for social approval and status. Originality/value Previous published studies of brand equity and luxury consumption have primarily emphasized Western markets. These findings advance our understanding of luxury purchase intention among young Chinese consumers, for whom the need for social acceptance acts as a crucial motivator in luxury consumption. The results contribute to amplifying the brand equity concept by taking cultural context into consideration.

The influence of negative publicity on brand equity: attribution, image, attitude and purchase intention

2018 ◽  
Vol 27 (4) ◽  
pp. 440-451 ◽  
Author(s):  
Mingzhou Yu ◽  
Fang Liu ◽  
Julie Lee ◽  
Geoff Soutar
Keyword(s):  
Brand Equity ◽  
Purchase Intention ◽  
Brand Image ◽  
Future Research ◽  
Brand Attitudes ◽  
Chinese Consumers ◽  
Content Type ◽  
High Severity ◽  
Negative Publicity ◽  
The Impact

Purpose This study aims to understand the influence of negative publicity on brand image, brand attitude and brand purchase intention. Specifically, the study examines the role of attribution (or brand blame) and information characteristics in Chinese consumers’ responses to negative publicity. Design/methodology/approach The study used a quasi-experimental approach involving two negative publicity scenarios (mild and high severity) and a sample of 203 young and educated Chinese consumers. Partial least squares was used to test the hypotheses. Findings A common assumption is that negative brand information has a negative influence on all aspects of a brand. However, this study finds that brand blame and information severity have differential effects on consumer evaluations of the affected brand. Specifically, brand blame negatively impacted attitudes and purchase intentions, but not brand image. In contrast, information severity negatively impacted brand image, but not attitudes or intentions. Further, the relations between brand image and brand attitudes and intentions depended on the level of information severity. In the mild-severity condition, brand image positively influenced attitudes and intentions, but not in the high-severity condition. Research limitations/implications Future research should examine consumer responses to negative publicity across different media and product categories. Cross-cultural studies should also be explored in the future. Practical implications When a brand encounters negative publicity, its marketer or brand manager should assess to what extent various brand equity components are influenced by negative publicity before adopting any cognitive-based or imagery-based communication strategies. Originality/value This paper contributes to the limited and fragmented literature on consumer response to negative publicity by examining the impact of consumer’s attributions of blame to the brand under conditions of mild and severe negative information on a range of important brand-related outcomes. Specifically, the authors find that negative publicity has a different impact on brand image, brand attitudes and intentions to purchase. The authors suggest that brand managers use this information to guide their marketing communications.

“Income vs. education” revisited – the roles of “family face” and gender in Chinese consumers' luxury consumption

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tingting Mo
Keyword(s):  
Cultural Capital ◽  
Regression Analyses ◽  
Chinese Consumers ◽  
Luxury Consumption ◽  
Educational Levels ◽  
Content Type ◽  
Face Concern ◽  
And Gender ◽  
Luxury Market ◽  
The Impact

PurposeThe transgenerational influence of inherited family capital on consumers' luxury consumption has been studied recently in the mature luxury market. However, little research explores this topic in the emerging luxury market. In China's Confucian culture, “family face” as part of “family inheritance” has been conceptualized as a factor driving luxury consumption. However, this hypothesis has not been empirically tested. The current research, therefore, seeks to examine the impact of economic and cultural capital on Chinese consumers' luxury consumption within the family inheritance context and the roles that face concern and gender play to reveal the particularities of a specific emerging luxury market.Design/methodology/approachA sample of 324 Chinese consumers was recruited in Shanghai. With the full sample, the author first assessed the effects of economic and educational capital (both personal and family sources) and face concern on luxury consumption using regression analyses. Next, the author conducted the regression analyses again by gender.FindingsUnlike trends in the mature luxury market, Chinese consumers' educational levels do not drive their luxury consumption, and the transgenerational influence of economic and cultural capital functions as a negative factor. Influenced by the patrilineal tradition, higher levels of luxury consumption to compensate for parents' lower income and educational levels and to enhance family face are found only in the male consumer group, but not in the female group.Originality/valueThis research contributes to expanding the current understanding of emerging luxury markets and how the Confucian tradition influences Chinese consumers' luxury consumption through gender role norms.

Brand equity of commoditized products of famous brands

2019 ◽  
Vol 38 (3) ◽  
pp. 296-309
Author(s):  
Emerson Wagner Mainardes ◽  
Atílio Peixoto Soares Júnior ◽  
Daniel Modenesi Andrade
Keyword(s):  
Theoretical Model ◽  
Brand Equity ◽  
Purchase Intention ◽  
Emerging Market ◽  
Perceived Value ◽  
Subjective Norms ◽  
Added Value ◽  
Equation Modeling ◽  
Content Type ◽  
Premium Price

Purpose The purpose of this paper is threefold: first, to identify the influence of brand equity (BE) of commoditized products of famous brand on purchase intention and willingness to pay a premium price in an emerging market; second, to identify the relationship between the BE of these products and their antecedents; and third, to identify the influence of subjective norms on purchase intention and BE. Commoditized products are bought due to necessity and not desire, are homogeneous, produced on a large scale, and have low added value. Design/methodology/approach A theoretical model is proposed contemplating the constructs: BE, purchase intention, premium price, perceived quality, brand recall, perceived value and subjective norms. We performed a quantitative study with 432 respondents. We used questionnaires, and we analyzed the data using the structural equation modeling with partial least squares. Findings The results indicate a positive relationship between BE and purchase intention, BE and premium price, perceived value and BE, subjective norms and purchase intention and subjective norms and BE. It should be noted that an emerging market has characteristics distinct to that of a mature market, justifying specific research in this context. Originality/value The study brought a theoretical model relating antecedents and consequents of BE in the segment of commoditized products. Furthermore, it indicated the strength of the brand of the commoditized products in an emerging market scenario.

The impact of altruistic attribution and brand equity in food label campaigns

2018 ◽  
Vol 27 (6) ◽  
pp. 634-646 ◽  
Author(s):  
Stéphane Legendre ◽  
François Coderre
Keyword(s):  
Brand Equity ◽  
Attribution Theory ◽  
Purchase Intention ◽  
Structural Equation ◽  
Internal Validity ◽  
Food Label ◽  
Content Type ◽  
Consumer Panel ◽  
The Impact ◽  
Practical Implications

PurposeThe purpose of this study is to analyse the impact of two determinants of purchase intention in food label campaigns: altruistic attribution and brand equity.Design/methodology/approachA 2 × 2 between-group factorial experimental design was used, with 2 levels of altruistic attribution (high/low) and 2 levels of brand equity (high/low). The product used for the study was pork chops. A survey was conducted on 602 respondents representing the population of Quebec, Canada.FindingsStructural equation modelling was used to evaluate the fit of the data with the proposed mod el. The results demonstrate that altruistic attribution and brand equity have an indirect impact on purchase intention via perceptions of taste and food safety. Altruistic attribution, but not brand equity, also has a direct impact on purchase intention.Research limitations/implicationsThe experiment in this study was conducted via an online consumer panel to increase internal validity. As a result, one of the limitations of the study concerns its external validity.Practical implicationsThis research provides strategic guidelines for businesses or organisations that wish to develop food label campaigns. They must simultaneously consider both altruistic attribution and pre-existing brand equity.Originality/valueThis study contributes to the literature by demonstrating the impact of altruistic attribution and brand equity on purchase intention in the context of food label campaigns. The study mobilises attribution theory and the multidimensional consumer-based brand equity scale.

The impact of self-congruity and virtual interactivity on online celebrity brand equity and fans’ purchase intention

2020 ◽  
Vol 29 (6) ◽  
pp. 783-801
Author(s):  
Chengchen Liu ◽  
Ya Zhang ◽  
Jing Zhang
Keyword(s):  
Brand Equity ◽  
Purchase Intention ◽  
Perceived Quality ◽  
Purchase Intentions ◽  
Purchase Behavior ◽  
Content Type ◽  
Managerial Implications ◽  
Social Media Platforms ◽  
Quality Of Products ◽  
The Impact

Purpose There is growing interest among marketers in advertising and promoting their brands by adopting an online celebrity endorsement strategy. However, how online celebrities build their own brand equity and how online celebrity brand equity impacts fans’ purchase behavior have not been extensively researched in the extant literature. This paper aims to explore the factors that contribute to online celebrity branding and improving fans’ purchase intentions. Design/methodology/approach A survey and an experiment were conducted among consumers from the mainland of China. A total of 12 hypotheses were proposed to exam how self-congruity and virtual interactivity impact online celebrity branding and to explore the moderating role of perceived quality and product type. Findings This paper reveals that customers’ perceived self-congruity with online celebrities’ image and virtual interactivity positively impact the brand equity of online celebrities. Additionally, compared with virtual interactivity, the effect of customer perceived self-congruity on a brand is more significant. The brand equity of online celebrities thereby drives followers’ purchase intentions and the perceived quality of products positively moderates this relationship. Originality/value The research conclusions provide managerial implications for marketing practitioners for how to use human brands on social media platforms in the web 2.0 era and ultimately enhance consumer purchase intentions.

Consequences of customer experience quality on franchises and non-franchises models

2019 ◽  
Vol 47 (3) ◽  
pp. 311-330
Author(s):  
Emerson Wagner Mainardes ◽  
Vinicius Costa Amorim Gomes ◽  
Danilo Marchiori ◽  
Luis Eugenio Correa ◽  
Vinicius Guss
Keyword(s):  
Brand Equity ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Group Analysis ◽  
Customer Experience ◽  
Perceived Quality ◽  
Content Type ◽  
Confirmatory Factor ◽  
The Impact

Purpose The purpose of this paper is to verify the differences of the influence of customer experience quality on brand equity, brand trustworthiness, perceived quality, perceived risk and purchase intention of franchise customers and non-franchise customers. Design/methodology/approach After developing two questionnaires, the authors collected 523 responses from Brazilian franchise users (Questionnaire 1) and 574 of non-franchise users (Questionnaire 2). The authors proceed to a confirmatory factor analysis, based on covariance (CB-SEM). In order to compare the results between franchises and non-franchises, the authors have performed a multi-group analysis with support of AMOS. Findings The results show that customer experience quality of the franchise customers tends to result in a better purchase intention, giving indications of better quality and brand trustworthiness when compared to non-franchises. This comparison shows indications of the competitive advantage of franchises over non-franchises, justifying the investments that market companies have been making in the development of the customer experience quality. Originality/value The research contributes to the understanding of the impact of the customer experience quality on brand equity, brand trustworthiness, perceived quality, perceived risk and purchase intention that directly affects the performance of the franchises, empirically investigating the customer experience quality in the context of franchises using the adapted EXQ scale. Complementarily, it is compared with non-franchises to observe the differences between them.

The impact of source credible online reviews on purchase intention

2019 ◽  
Vol 13 (2) ◽  
pp. 142-161 ◽  
Author(s):  
Uttam Chakraborty
Keyword(s):  
Brand Equity ◽  
Purchase Intention ◽  
Structural Equation ◽  
Source Credibility ◽  
Online Reviews ◽  
Credibility Theory ◽  
Equation Modeling ◽  
Mediating Effects ◽  
Content Type ◽  
The Impact

Purpose This study aims to highlight the importance of brand equity dimensions which act as a mediator between online reviews and consumer’s purchase intention. In particular, the present study tries to determine which the Aaker’s (1991) brand equity dimensions have the mediating roles between source credible online reviews and purchase intention. Design/methodology/approach Data were collected from select e-commerce site’s brand community on Facebook social media platform through Google form application. The present study first determines the reliability of the variables. To check the unidimensionality of the variables, exploratory factor analysis has been performed. This study makes use of structural equation modeling bootstrapping method to examine the mediating effects of brand equity dimensions between source credible online reviews and purchase intention. Findings Data analysis reveals that marketers should concentrate more on brand awareness and perceived value, which ultimately influence the purchase intention of the consumers. Originality/value This paper is one of the first that examines the mediating effects of consumer-based brand equity dimensions between source credible online reviews and consumer’s purchase intention. Further, the present study integrates source credibility theory and attribution theory to develop the research model.

How does corporate learning orientation enhance industrial brand equity? The roles of firm capabilities and size

2019 ◽  
Vol 35 (2) ◽  
pp. 231-243 ◽  
Author(s):  
Yi Xie ◽  
Xiaoying Zheng
Keyword(s):  
Brand Equity ◽  
Firm Size ◽  
Small Firms ◽  
Learning Orientation ◽  
Innovation Capability ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Corporate Learning ◽  
The Impact

Purpose This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated. Design/methodology/approach The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China. Findings Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms. Research limitations/implications Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation. Practical implications To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms. Originality/value While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size.

Should I suggest this YouTube clip? The impact of UGC source credibility on eWOM and purchase intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mazzini Muda ◽  
Muhammad Iskandar Hamzah
Keyword(s):  
Social Media ◽  
Structural Equation Modeling ◽  
Purchase Intention ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Source Credibility ◽  
Equation Modeling ◽  
Content Type ◽  
The Social ◽  
The Impact

PurposeIn spite of the increasing organic and interactive marketing activities over social media, a general understanding of the source credibility of voluntary user-generated content (UGC) is still limited. In line with the social identity theory, this paper examines the effects of consumers' perceived source credibility of UGC in YouTube videos on their attitudes and behavioral intentions. Additionally, source homophily theory is included to predict the antecedent of source credibility.Design/methodology/approachThree hundred and seventy two Generation Y respondents were interviewed using snowball sampling. Data were analyzed with component-based structural equation modeling technique of partial least squares-structural equation modeling (PLS-SEM).FindingsFindings confirmed that perceived source credibility indirectly affects purchase intention (PI) and electronic word-of-mouth via attitude toward UGC. Besides, perceived source credibility mediates the effect of perceived source homophily on attitude toward UGC.Practical implicationsSince today's consumers have begun to trust and rely more on UGC than company-generated content on social media when making purchase decisions, companies may reconsider democratizing certain aspects of their branding strategies. Firms may fine-tune their marketing communication budgets – not only just by sponsoring public figures and celebrities but also by nurturing coproductive engagements with independent content creators who are ordinary consumers. Endowed with their imposing credibility, these micro-influencers and prosumers have high potentials to be uplifted to brand ambassadors.Originality/valueWhile consumers' purchase outcome can be measured easily using metrics and analytics, the roles of source homophily in stages leading up to the purchase is still elusive. Drawing on the rich theoretical basis of source homophily may help researchers to understand not only how credibility and attitude are related to PI but also how this nexus generates positive word of mouth among UGC followers within the social media circles.

Do brand rumors matter? The role of brand equity and response strategy to brand rumor

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihee Choi ◽  
Soobin Seo
Keyword(s):  
Brand Equity ◽  
Restaurant Industry ◽  
Response Strategy ◽  
Effective Response ◽  
Content Type ◽  
Consumer Responses ◽  
Response Strategies ◽  
Brand Crisis ◽  
Negative Impacts ◽  
The Impact

Purpose This paper aims to investigate consumer responses to brand rumors and corporate rumor response strategies in the restaurant industry. Design/methodology/approach A scenario-based experimental design was used to examine changes in consumers’ brand evaluation depending on level of brand equity and corporate choice of response strategy. Findings It was found that the impact of brand rumors on consumer responses is more negative when the restaurant’s brand equity is low compared to when it is high. It was also found that a company's use of active response strategies is more effective in combating brand rumor than a strategy of simple denial. Practical implications The findings have significant implications for both academics and practitioners in terms of developing effective response strategies for counteracting brand rumors. Originality/value Given the frequency of brand rumors in the restaurant industry and their serious negative impacts, this study extends the existing brand crisis communication literature by demonstrating how consumers respond to a rumor and the effectiveness of different corporate rumor response strategies.

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