Global vs local brands: How home country bias and price differences impact brand evaluations

Purpose: The purpose of this paper is to re-conceptualize the distinction between global and local brands, providing a more comprehensive framework, which considers both geographical distribution and ownership. It examines main and interactive effects of consumers' perceptions of these factors,...

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Main Authors: Warat Winit, Gary Gregory, Mark Cleveland, Peeter Verlegh
Format: Journal
Published: 2018
Online Access:https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84897952463&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/45672
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-456722018-01-24T06:14:53Z Global vs local brands: How home country bias and price differences impact brand evaluations Warat Winit Gary Gregory Mark Cleveland Peeter Verlegh Purpose: The purpose of this paper is to re-conceptualize the distinction between global and local brands, providing a more comprehensive framework, which considers both geographical distribution and ownership. It examines main and interactive effects of consumers' perceptions of these factors, and studies how ethnocentrism (CET) and price affect brand evaluations, considering a range of price difference thresholds. Design/methodology/approach: A preliminary study (n=243) examined main and interaction effects of brand globalness and ownership on consumers' brand quality attitudes and purchase intentions in four different product categories. The main study (n=558) further explored brand ownership effects by examining the interaction of CET and price differences. Findings: The preliminary study confirmed the distinctiveness of brand globalness and ownership. Consumers evaluated global (vs non-global) brands more positively, regardless of brand ownership (local vs foreign). The main study found that effects of price and CET varied considerably across product categories. Research limitations/implications: Limitations include the use of student samples from a single country (Thailand), and of scenarios instead of real life purchase decisions. Practical implications: The findings suggest that perceived brand globalness positively impacts brand evaluations. Companies may cultivate a global brand image by emphasizing global cues. Local origin allows (global) brands to command a price premium, although this varies across product categories. An emphasis on globalness seems valuable, especially for local brands. Originality/value: This research offers a refined conceptualization of brand globalness, a key construct in international marketing. Additional value is provided by studying price effects, which have received limited attention in international marketing, and substantial data collection (total N > 800) in an understudied yet important economy (Thailand). © Emerald Group Publishing Limited. 2018-01-24T06:14:53Z 2018-01-24T06:14:53Z 2014-01-01 Journal 02651335 2-s2.0-84897952463 10.1108/IMR-01-2012-0001 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84897952463&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/45672
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
description Purpose: The purpose of this paper is to re-conceptualize the distinction between global and local brands, providing a more comprehensive framework, which considers both geographical distribution and ownership. It examines main and interactive effects of consumers' perceptions of these factors, and studies how ethnocentrism (CET) and price affect brand evaluations, considering a range of price difference thresholds. Design/methodology/approach: A preliminary study (n=243) examined main and interaction effects of brand globalness and ownership on consumers' brand quality attitudes and purchase intentions in four different product categories. The main study (n=558) further explored brand ownership effects by examining the interaction of CET and price differences. Findings: The preliminary study confirmed the distinctiveness of brand globalness and ownership. Consumers evaluated global (vs non-global) brands more positively, regardless of brand ownership (local vs foreign). The main study found that effects of price and CET varied considerably across product categories. Research limitations/implications: Limitations include the use of student samples from a single country (Thailand), and of scenarios instead of real life purchase decisions. Practical implications: The findings suggest that perceived brand globalness positively impacts brand evaluations. Companies may cultivate a global brand image by emphasizing global cues. Local origin allows (global) brands to command a price premium, although this varies across product categories. An emphasis on globalness seems valuable, especially for local brands. Originality/value: This research offers a refined conceptualization of brand globalness, a key construct in international marketing. Additional value is provided by studying price effects, which have received limited attention in international marketing, and substantial data collection (total N > 800) in an understudied yet important economy (Thailand). © Emerald Group Publishing Limited.
format Journal
author Warat Winit
Gary Gregory
Mark Cleveland
Peeter Verlegh
spellingShingle Warat Winit
Gary Gregory
Mark Cleveland
Peeter Verlegh
Global vs local brands: How home country bias and price differences impact brand evaluations
author_facet Warat Winit
Gary Gregory
Mark Cleveland
Peeter Verlegh
author_sort Warat Winit
title Global vs local brands: How home country bias and price differences impact brand evaluations
title_short Global vs local brands: How home country bias and price differences impact brand evaluations
title_full Global vs local brands: How home country bias and price differences impact brand evaluations
title_fullStr Global vs local brands: How home country bias and price differences impact brand evaluations
title_full_unstemmed Global vs local brands: How home country bias and price differences impact brand evaluations
title_sort global vs local brands: how home country bias and price differences impact brand evaluations
publishDate 2018
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84897952463&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/45672
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