An Extended Model of Preference Formation between Global and Local Brands: The Roles of Identity Expressiveness, Trust, and Affect

Abstract

The authors propose an augmented conceptual model explaining consumer preferences for global brands versus local brands in emerging markets and test the model using data from a Chinese consumer sample. The model adds high brand-identity expressiveness as well as high trust and positive affect toward these brands. The results support these additions and replicate previous findings that brand quality and prestige are important links between perceived brand globalness (PBG) and perceived brand localness (PBL) and favorable behavioral intentions. The most novel finding is that both PBG and PBL can enhance a brand's identity expressiveness. The results establish the mediating roles of these additional variables between PBG/PBL and behavioral intentions and also identify the incremental explanatory value of these additional mediators, which have been neglected in previous global branding research. Furthermore, PBG—which affects behavioral intentions through pathways of brand prestige, trust, and affect—is more influential than PBL, which operates mainly through brand identity expressiveness.

Brand perception across cultures: A comparative study of Skoda’s brand characteristics in Poland and the United Kingdom

“…Furthermore, the notion of identity trust, as reported by Xie et al (2015), is corroborated in this study. Identity trust is based on consistency of shared values or interest.…”

“…Thus, a trustworthy brand is one that consistently fulfils its promise to consumers through the way the product is developed, produced, sold, marketed and serviced. Xie et al (2015) introduced brand trust created via identity expressiveness, i.e. identity based trust.…”

The influence of global and local iconic brand positioning on advertising persuasion in an emerging market setting

“…Brand positioning as either global or local iconic may raise the attractiveness of the brand as the source of an ad, which in turn facilitates the affective route from AF on brand image. Also, and in accordance with the extant literature (e.g., Özsomer, 2012;Steenkamp et al, 2003, Xie et al, 2015, brand positioning as either global or local iconic can enhance source credibility. However, this effect does not stretch to facilitate the AFbrand quality relationship.…”

“…First, brand positioning could be less effective to create credibility than expected by the mainstream literature (e.g., Xie et al, 2015). A number of studies have discussed possible causes: for global brands, Dimofte et al (2008) argued that the association of a global brand positioning with quality might originate from the fact that many global brands used in existing analyses are strong brands.…”

“…Since global and local iconic brands address acute tensions and opportunities of consumers in a globalizing society, they may be desirable and thus attractive sources when viewed as sources of an ad. Global and local iconic positioned brands possess the ability to communicate a consumer's self-identity (Xie, Batra, & Peng, 2015).…”