Consumer Perceptions of Brand Localness and Globalness in Emerging Markets: A Cross-Cultural Context

Abstract

The globalization of markets and consumer behavior has changed dramatically in recent years. Similarly, global and local brands are facing many challenges in emerging markets. Thus, in this backdrop, this research is intended to examine the impact of consumer perceptions of brand localness and globalness on brand attitude in order to predict consumer behavioral intentions (purchase intention, price premium, and word of mouth) in cross-cultural emerging markets (China and Pakistan). Additionally, this research considered the moderating effects of consumer ethnocentrism and brand familiarity as a control variable. This study used an online survey to examine 1,562 responses from Chinese (n = 768) and Pakistani (n = 794) consumers regarding local and global brands. The proposed hypotheses were analyzed by using the partial least square-structural equation modeling method. The findings indicated that the consumer perceptions of brand localness and brand globalness had a substantial impact on brand attitude, which in turn favorably influenced consumer behavioral intentions in China and Pakistan. The brand attitude was a crucial mediator in both markets but was more critical in China than Pakistan. The interaction moderating effects of consumer ethnocentrism and consumer perceptions of brand localness positively influenced brand attitude in China, whereas consumer ethnocentrism and consumer perceptions of brand globalness negatively influenced brand attitude in Pakistan. Interestingly, brand familiarity was discovered a substantial control variable in both markets, except for purchase intention in Pakistan. This research contributed to Fishbein’s attitude theory and social identity theory. This research offers important recommendations to local and global marketers and brand managers in formulating and employing several positioning, market segmentation, and targeting strategies that may assist them in competing effectively in emerging markets.

Exploring the Dynamic Influence of Perceived Brand Globalness and Localness: A Case Study on High-Involvement Goods

“…That, in turn, enhances the perceived uniqueness and value of the brand's offerings, reducing price sensitivity. Consequently, consumers exhibit a heightened readiness to invest in products associated with such brands, reflecting an increased willingness to pay a premium price (Safeer et al, 2022). It highlights the pivotal role of cultural resonance in shaping consumer behavior and pricing strategies within marketing.…”

“…This study aims to investigate the impact of the PBG and PBL variables on Consumer Behavioral Intentions (CBI), namely brand loyalty (BL), positive word of mouth (PWOM), and willingness to pay a premium price (WPPP), as highlighted by Safeer et al (2022). Within the research context, examining these variables' influence on CBI is paramount.…”

“…Within the research context, examining these variables' influence on CBI is paramount. It is underscored by the theoretical perspectives put forth by Warshaw (1980), Westerbeek andShilbury (2003), andSafeer et al (2022), which emphasize the significance of CBI as an indicator of the realization of choices into attitudes. Investigating CBI provides valuable insights into consumers' trust, principles, and future behaviors, contributing to a deeper understanding of consumer decision-making processes.…”

“…Prior research emphasizes the significant contribution of BT to business success (Ngoma and Ntale, 2019). According to Safeer et al (2022), business success can be assessed through various indicators, including the brand loyalty, willingness to pay a premium price, and positive word of mouth. Thus, to achieve the objectives of this study, it is imperative to comprehend the mediating role of BT and its influence on the indicators, as mentioned earlier.…”

Consumer Perception Variations Brand Loyalty in Diverse Cultural Contexts

“…The interplay between these factors is crucial for seafood businesses seeking to attract and retain customers. In emerging markets, consumers' perceptions of a brand's localness and globalness significantly impact their overall brand sentiment, ultimately affecting their purchase decisions (Asif et al, 2022). Additionally, an expatriate's sense of feeling "local" indirectly influences their preference for local food brands through social connections with the local community, moderated by their existing preference for global brands (Miocevic et al, 2021).…”