How Nationalistic Appeals Affect Foreign Luxury Brand Reputation: A Study of Ambivalent Effects

Abstract

Drawing from cognitive learning theories we hypothesize that exposure to nationalistic appeals that suggest consumers should shun foreign brands for moral reasons increases the general belief in consumers that buying foreign brands is morally wrong. In parallel, drawing from the theory of psychological reactance we posit that such appeals may, against their communication goal, increase the reputation of foreign luxury brands. We term the juxtaposition of these apparently contradictory effects the "Ambivalence Hypothesis." Further, drawing from prior research on source-similarity effects we posit that foreign luxury brands that communicate cultural proximity to target consumers (i.e., a local brand positioning) reinforce psychological reactance ("Clean Conscience Hypothesis"). We test these hypotheses experimentally in the context of luxury car brand advertising in China, a market that is heavily dominated by foreign brands, and therefore provides a breeding ground for ambivalent consumer reactions. Results show that exposure to nationalistic appeals enhances consumers' national identity dispositions (patriotism, local identity), which results in higher levels of consumer ethnocentrism. Further, nationalistic appeals enhance the social responsibility associations that consumers hold for foreign luxury brands and their countries of origin, which results in a higher brand reputation. Finally, effects of nationalistic appeals on foreign luxury brand reputation are positively stronger for brands using a local vs. a foreign or a global positioning. These findings suggest that nationalistic appeals are a double-edged sword with important implications for ethics in political communication and luxury brand marketing.

Breaking the barriers of animosity: innovation in business models as a positioning strategy

“…Previous studies by Bartikowski et al (2020), show that patriotic sentiments do not necessarily generate negative feelings towards foreign brands that represent luxury, social status and even cultural proximity. Even for authors like Chang et al (2020), when foreign brands promote local brands at major events, they receive greater acceptance by the local consumer, in this way, it is evident that patriotism can generate positive feelings for both domestic and foreign brands.…”

“…Previous studies by Bartikowski et al. (2020) , show that patriotic sentiments do not necessarily generate negative feelings towards foreign brands that represent luxury, social status and even cultural proximity.…”

“…This can be explained, due to several factors: As indicated above, patriotic values highlight the love for your own country, but do not necessarily generate negative feelings, towards foreign brands that represent luxury, social status, cultural proximity, Bartikowski et al (2020); Chang et al (2020); on the other hand, previous studies by Chaudhry et al (2020) have shown that a person can be ethnocentric, and have a loyalty and positive image towards foreign brands, which are very strong brands because they are global brands or because their consumption generates social status, or because their consumption is already daily.…”

“…This can be explained, due to several factors: As indicated above, patriotic values highlight the love for your own country, but do not necessarily generate negative feelings, towards foreign brands that represent luxury, social status, cultural proximity, Bartikowski et al. (2020) ; Chang et al.…”

CSR as a Driver of Corporate Reputation: Family Firms in the Italian Luxury Industry

“…It is a complex task which requires a consistent and coherent approach, frequently counter-intuitive (Tynan, McKechnie, & Chhuon, 2010). Although brand reputation represents a topic highly investigated in the management and marketing literature (Bartikowski, Fastoso & Gierl, 2020), there are still few contributions (both theoretical and empirical) about the effects of CSR and sustainability on reputation of luxury brands. This lack in the analysis reflects the evidence that in the luxury industry the integration of CRS and sustainability into the firm's core values and strategy is becoming a critical factor only in very recent years and yet today only a small number of luxury companies consider sustainability as a strategic value creator means, both for customers and other stakeholders.…”