Exploring antecedents and consequences of young consumers’ perceived global brand equity

2016 ◽  
Vol 25 (2) ◽  
pp. 160-170 ◽  
Author(s):  
Phillip Frank ◽  
Kittichai (Tu) Watchravesringkan

Purpose With the expansion of globalization, the increased competitive environment has led to the diffusion of brands across borders and cultures. Furthermore, young consumers represent an optimal segment for the proliferation of global consumer culture (GCC). This paper aims to examine the relationship between acculturation to global consumer culture (AGCC), perceived brand equity, attitudes toward the brand and brand resonance in the global sportswear brands context among young consumers in the USA. Design/methodology/approach A total of 394 undergraduate student participants ranging in age from 18 years to 24 years completed a multisectional structured survey. Model construct validity was tested using a confirmatory factor analysis. A structure equation model was used to test hypotheses and relationships. Findings Results showed that while cosmopolitan and self-identification with GCC dimensions of ACGG had a positive association with perceived brand equity, exposure to marketing activities of MNCs and global mass media exposure dimensions of AGCC had a negative association with perceived brand equity. Perceived brand equity also revealed a positive association with attitudes toward the brand, which in turn, affected brand resonance. Research limitations/implications The research used a sample of 18-24-year-old youth consumers. Future research could be extended to include younger (15-17-year old) sample to provide a broader sample of the youth market. In addition, future replication of findings should seek through cross-cultural investigation of multiple youth segments. Practical implications Findings suggest support multiple dimensions of the AGCC scale as holding significant influence on young consumers’ brand equity consisting of brand image and brand awareness. Managerially, the findings provide support on the youth consumer’s affinity toward self-identification with a GCC and cosmopolitan openness to foreign cultures as being positively related to the adoptions and retention of apparel brands. Social implications Theoretically, the results provide empirical evidence for the debate on the interrelationship between brand equity and attitudes toward brands. The theoretical model guiding the current study reflects the notion of an emerging acculturation process among a segment of the world’s population to a set of global consumer preferences and ideals that are increasingly being embodied in global brands. Originality/value This is among one of the first studies attempting to explore the applicability of Cleveland and Laroche’s (2007) AGCC concepts in predicting young consumers’ attitudes and behavioral responses toward global brands.

2019 ◽  
Vol 36 (4) ◽  
pp. 593-597
Author(s):  
Peter Magnusson ◽  
Stanford A. Westjohn

Purpose This paper provides a perspective to the article by Cleveland and Bartsch in this issue. The purpose of this paper is to focus on examining objective global brand performance data in four industries and discuss the practicality of global vs country-level marketing strategy. Design/methodology/approach Drawing on data from Euromonitor, the analysis evaluates global brand performance in four industries over the last decade. Findings In most industries, global brands are less dominant than what is often assumed. Originality/value This commentary aims to bring a new perspective to the global consumer culture discussion and may spur valuable future research on the topic.


2019 ◽  
Vol 36 (5) ◽  
pp. 726-747 ◽  
Author(s):  
Shintaro Okazaki ◽  
Charles R. Taylor ◽  
Patrick Vargas ◽  
Jörg Henseler

Purpose An unconscious concern regarding one’s inevitable death, known as mortality salience, may affect consumers’ brand choices in the aftermath of disastrous events, such as earthquakes. The purpose of this paper is to examine the role of self-identification with global consumer culture (IDGCC) in global brand purchase intention in response to disasters that heighten mortality salience. The roles of materialism, consumer ethnocentrism, cosmopolitanism and hope in this this process are also explored. Design/methodology/approach An online experiment was conducted with a large sample of Japanese consumers. Japan was selected because it had recently suffered from a series of devastating earthquakes. Participants’ mortality salience was primed with an earthquake scenario. All measures were adapted from prior research. The authors used structural equation modeling to test the hypotheses and validate the model. Findings The results reveal that IDGCC is a direct predictor of global brand purchase intention when mortality salience is high. It appears that identifying with global consumer culture and buying global brands enhances self-esteem and reduces anxiety for those with high IDGCC. As predicted, materialism and cosmopolitanism positively influence IDGCC, whereas consumer ethnocentrism does not impede IDGCC. Hope directly and positively affects global brand purchase intention. Research limitations/implications Some consumers who experience traumatic events may resist mortality salience and experience a heightened sense of global citizenship. Meanwhile, those with lower IDGCC may revert to in-group favoritism, whereas those with higher IDGCC tend to purchase global brands. Using a scenario to simulate the mental state evoked by a disaster limits generalizability. Practical implications The findings illuminate how firms should modify their international marketing strategies in the face of traumatic global events when targeting consumers with high vs low IDGCC in terms of framing messages about global brands. Additionally, using global brands that emphasize an optimistic outlook may help global marketers capture attention from consumers high in IDGCC. Originality/value This study is one of the first to address traumatic events and hope, relating these concepts to IDGCC and global brand purchase intention in an international marketing context.


2015 ◽  
Vol 117 (2) ◽  
pp. 565-587 ◽  
Author(s):  
Cristina Calvo Porral ◽  
Jean-Pierre Levy-Mangin

Purpose – The purpose of this paper is to investigate how consumers perceive and evaluate local and global brands – in a developed mature European market. Design/methodology/approach – For this purpose, four dimensions and two consequences of brand equity are evaluated, based on consumers’ standpoint. Structural equation modeling is carried out in order to analyze results obtained. Findings – The findings suggest that brand loyalty, brand image and perceived quality exert the higher influence on consumers’ brand value; while there are relevant differences in consumer’s assessment toward local and global brands. Originality/value – This study provides local and global brand marketers with further specific knowledge on how to market and enhance their brands’ value in a globalized increasingly competitive world.


2019 ◽  
Vol 36 (4) ◽  
pp. 524-535 ◽  
Author(s):  
Jan-Benedict Steenkamp

Purpose The purpose of this paper is to offer a different perspective on the global consumer culture (GCC) phenomenon and identify new avenues for future research. Design/methodology/approach The paper is a thought piece. Findings The unprecedented globalization of the marketplace in the last 50 years has given rise to the emergence of GCC, and the rise of global companies and global brands, among others. Yet, as one surveys the globalscape, there are developments on the horizon that might threaten continued globalization. In this paper, the author discusses these developments and their implications around three interrelated, yet distinct, components of globalization: global integration of world economies, GCC and global brands. Originality/value The paper identifies unique research opportunities to study GCC in an emerging business context in which continued global integration is not guaranteed, and where globalization headwinds could reduce the contribution of perceived brand globalness to brand value.


2019 ◽  
Vol 36 (4) ◽  
pp. 536-544 ◽  
Author(s):  
Saeed Samiee

Purpose The purpose of this paper is to explore global brands, global consumer culture (GCC) and globalization, and offers a thesis in line with Steenkamp (2019) regarding the world’s continued move toward greater integration. Design/methodology/approach The study examines the three concepts articulated by Steenkamp (2019): global brands, GCC and globalization. Findings Globalization is often thought of as a necessary condition for the existence of global brands and GCC. However, global brands existed long before the transition toward an increasingly integrated world. Further, global branding is related to the development of GCC as an intermarket segment. The paper also highlights the absence of an operational definition for global brands and the overemphasis on consumer brands as the drivers of much of the research in global branding and GCC. Originality/value The paper offers a different perspective on the GCC phenomenon, and identifies new avenues for future research.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Hernani-Merino ◽  
Juan G. Lazo Lazo ◽  
Alvaro Talavera López ◽  
José Afonso Mazzon ◽  
Gisella López-Tafur

PurposeCompanies that wish to market a global brand need to develop a greater understanding of consumers' and potential consumers' susceptibility to global consumer culture (SGCC) with a view to standardizing/adapting their brand according to the desires and preferences of the consumers who belong to specific segments of global consumers. Thus, the aim of the study is to fill a joint segmentation research gap within and between countries based on seven dimensions of SGCC while classifying consumers according to the degree of belonging to specific and hybrid (global citizenship) segments.Design/methodology/approachA questionnaire was applied online in English in five countries across the Americas and Europe resulting in a sample of 412 consumers. Based on the fuzzy C-means cluster analysis, the study segments the sample of consumers according to the degree of belonging to specific and global citizenship segments.FindingsAnalysis of survey results show three groups; two distinct groups and a third with features of both, a distinct intersection group. These findings suggest that consumers in different countries develop beliefs and attitudes about global citizenship, and this perspective coincides with the characteristics of the intersection group. Consequently, the study shows that fragmentation of the needs of consumers exists within and between countries.Originality/valueThis study contributes to the concept of global citizenship, helping managers of global brands improve their marketing strategy decisions by implementing strategies that are standardized or adapted to specific hybrid segments of consumers that transcend national borders. This study used a statistical method to measure the degree of belonging to each segment.


2016 ◽  
Vol 33 (2) ◽  
pp. 298-318 ◽  
Author(s):  
Vicki R. Lane ◽  
Fernando Fastoso

Purpose – Previous research warns against low-fit extensions as prone to causing negative spillover and, through it, harming the parent brand equity. Using the theory of schema-triggered affect and the link formation hypothesis, the purpose of this paper is to develop and tests predictions as to how negative spillover from low-fit extensions can be actively managed through repeated ad exposure. Design/methodology/approach – A controlled experiment assesses the response of US consumers to the Dutch Heineken brand, a top 100 global brand, following sequential and repeated exposure to print ads depicting extensions for either Heineken wheat beer (i.e. a high-fit extension) or Heineken pretzels (i.e. a low-fit extension). Analytical methods include multiple regression, ANOVA, and t-tests. Findings – The findings show that repeated ad exposure has a positive moderating effect on the magnitude of spillover from extension to brand. Second, the findings also show that repeated ad exposure changes the valence of spillover from low-fit extension to brand from negative to positive. In combination, the findings suggest that low-fit brand extensions can, when carefully managed, be a viable strategic option for market growth that is especially relevant for global brands. Research limitations/implications – This research shows that repeated ad exposure can change the valence of spillover from low-fit extensions to the parent brand from negative to positive. Future research should extend the work by considering other brands and alternative tools that managers can use to make low-fit extensions a viable strategic choice. Practical implications – This study finds, in contrast to previous research, that managers should indeed consider low-fit brand extensions as a viable strategic option for brand growth. This is possible because the findings show that repeated ad exposure can be used to control potential negative spillover from a low-fit extension to parent brand. This conclusion is particularly relevant for global brands, i.e. brands for which the opportunity costs of limiting global expansion and the financial investment necessary to establish a new brand with global appeal are substantial. Originality/value – This paper differs from other spillover studies by manipulating repeated ad exposure, a mechanism which the authors theoretically link to spillover and which managers can also directly influence. In doing so, this paper offers a theoretical explanation and an empirical test of how negative spillover from low-fit extensions can be managed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sascha Raithel ◽  
Alexander Mafael ◽  
Stefan J. Hock

Purpose There is limited insight concerning a firm’s remedy choice after a product recall. This study aims to propose that failure severity and brand equity are key antecedents of remedy choice and provides empirical evidence for a non-linear relationship between pre-recall brand equity and the firm’s remedy offer that is moderated by severity. Design/methodology/approach This study uses field data for 159 product recalls from 60 brands between January 2008 to February 2020 to estimate a probit model of the effects of failure severity, pre-recall brand equity and remedy choice. Findings Firms with higher and lower pre-recall brand equity are less likely to offer full (vs partial) remedy compared to medium level pre-recall brand equity firms. Failure severity moderates this relationship positively, i.e. firms with low and high brand equity are more sensitive to failure severity and then select full instead of partial remedy. Research limitations/implications This research reconciles contradictory arguments and research results about failure severity as an antecedent of remedy choice by introducing brand equity as another key variable. Future research could examine the psychological process of managerial decision-making through experiments. Practical implications This study increases the awareness of the importance of remedy choice during product-harm crises and can help firms and regulators to better understand managerial decision-making mechanisms (and fallacies) during a product-harm crisis. Originality/value This study theoretically and empirically advances the limited literature on managerial decision-making in response to product recalls.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yucheng Zhang ◽  
Jing Li ◽  
Chih-Hsing Liu ◽  
Yimo Shen ◽  
Guiquan Li

PurposeResearch on the relationship between novelty and travel intention is lacking. This study attempts to fill this gap by developing a theoretical model to explain how novelty influences travel intention through two mediating paths: brand equity and tourist motivation.Design/methodology/approachIn this study, data were collected from 466 foreign visitors to Taiwanese night markets. To test the model, the authors applied structural equation modeling (SEM) to identify the critical attributes that predicted foreign tourists' travel intentions.FindingsThe SEM analysis indicated that novelty in tourism management was related to brand equity and intrinsic motivation, which increased foreign tourists' travel intentions and offered advantages for highly competitive, high-density night markets in Taiwan. In addition, brand equity was an important mediator that connected novelty and tourists' travel intentions. Finally, novelty indirectly affected travel intention and intrinsic motivation through brand equity.Research limitations/implicationsThere may exist potential moderators in the relationships among the brand equity and travel intention categories. Future research studies could explore whether any moderators influence the relationship mechanisms examined in this study.Originality/valueThis research expands on previous research studies that have focused on the value of travel intention. Furthermore, the study uses brand equity theory (BET) and the theory of planned behavior (TPB) to examine the mediating effect of intrinsic motivation on the relationship between novelty and travel intention.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chunyan Nie ◽  
Tao Wang

Purpose The purpose of this paper is to examine the effect of the interpretation strategy of cultural mixing on consumers’ evaluations of global brands that incorporate local cultural elements. Specifically, this paper examines whether a property interpretation and a relational interpretation have different influences on consumers’ evaluations of global brands that incorporate local cultural elements. Design/methodology/approach Two experiments were conducted as part of this research. Experiment 1 adopted a two (interpretation strategy: property interpretation vs relational interpretation) single-factor between-subjects design. Experiment 2 adopted a 2 (interpretation strategy: property interpretation vs relational interpretation) × 2 (polyculturalist beliefs: high vs low) between-subjects design. The data were analyzed using ANOVA and PROCESS 213. Findings A property interpretation (emphasizing that some features of a global brand transfer to local cultural elements) leads to a less favorable evaluation of global brands that incorporate local cultural elements than a relational interpretation (emphasizing a relation between global brands and local cultural elements). This effect is fully mediated by perceived cultural intrusion, and it exists only when consumers have a low level of polyculturalist beliefs. Originality/value This paper reveals that the phenomenon of cultural mixing occurs when global brands incorporate local cultural elements. In addition, the way that consumers perceive the relationship between global brands and local cultural elements will determine their reactions to global brands that incorporate local cultural elements.


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