Impact of perceived brand localness and globalness on brand trust to predict customer responses towards retail banks: the case of Trinidad and Tobago

Abstract

PurposeThis paper compares the relative influence of perceived brand localness (PBL) and perceived brand globalness (PBG) on customer behavioral responses of brand loyalty (BL), willingness to pay price premiums (WTPP) and positive word of mouth (PWOM) towards retail banks. It further examines the mediating effects of brand trust (BT) on these relationships.Design/methodology/approachData were collected from 320 retail banking customers in Trinidad and Tobago and analyzed with exploratory factor analysis and multiple regression analysis (MRA).FindingsThe findings show that PBL has a more substantial impact on BL, willingness to pay a price premium and PWOM compared to PBG. The results also show that BT mediates the relationships between PBL and PBG on customer brand-related responses. The effect is more substantial for brands perceived as local.Practical implicationsThe findings have important implications for banks in developing countries and suggest that localized positioning and branding strategies will trigger preferential brand-related responses in retail banking services. The paper ends with a discussion on the practical implications of these findings and present future research opportunities.Originality/valueThe paper responds to the rising skepticism and discomfort with globalization. It offers bank managers valuable insights on how global and local branding strategies affect brand-related outcomes. The study contributes to the literature by empirically comparing the effects of PBL and PBG in retail banking and demonstrating the unique contribution of BT in explaining why customers respond differently to global and local brands. It also simultaneously considers multiple customer responses.

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

“…Conversely, Perceived Brand Localness (PBL) captures consumers' perceptions of the brand's commitment to meeting local needs and embodying the aspirations of the local population (Ozsomer, 2003). Alternatively, PBL can be defined as the degree to which a brand is perceived as connected to the local context and embedded within its consumer culture (Rambocas and Narsingh, 2022).…”

“…This sense of cultural identification, in turn, stimulates a desire to share experiences and endorse the brand within their social networks. Individuals extend their personal narratives by participating in positive word-of-mouth communication, reinforcing their affiliation with the brand and positioning themselves as the brand advocates (Rambocas and Narsingh, 2022). Hence, the correlation between perceived brand localness and positive word of mouth emerges as a crucial facet of consumer behavior, underscoring the brand's capacity to capitalize on cultural ties in fostering organic and influential forms of consumer advocacy.…”

“…Notwithstanding the extensive body of research on this theory, there remains a notable research gap in the context of Indonesia and its application to highinvolvement products (Kotler et al, 2018). Consequently, this study is designed to fill this research void and aims to mitigate the generalizability limitations of the theoretical framework (Rambocas and Narsingh, 2022). The novelty of this study is to fill the research gap pertaining to the theory of perceived brand globalness and perceived brand localness regarding the type of goods and geographical considerations.…”

Internationalization Issues in Chinese Firms: One Belt, One Road-Based Perspective

“…A brand, according to the American Marketing Association, is “a name, word, design, image, or any other element that distinguishes one seller’s item or service from most of the other sellers ( Ngoc and Tien, 2021 ).” Managers may use brands to create points of difference and long-term competitive advantages by reflecting a product’s economic and functional attributes, as well as important intangible associations such as competence and reliability ( Rambocas and Narsingh, 2022 ). Three significant factors for establishing a meaningful brand are integrated into the brand strategic framework ( Thomson et al, 2022 ).…”

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

“…The current body of knowledge is available on a limited scale in a single country and a cross-cultural context. For instance, CPBL and CPBG have been examined on retail patronage in China ( Swoboda et al, 2012 ), behavioral intentions (single construct) in China ( Xie et al, 2015 ), purchase intention in Austria ( Halkias et al, 2016 ), and India ( Srivastava et al, 2020 ) and brand loyalty in Trinidad and Tobago ( Rambocas and Narsingh, 2022 ) by using various mediating concepts in a single country context. Similarly, prior research has examined the impact of CPBL and CPBG on purchase likelihood/intentions in the United States and South Korea ( Steenkamp et al, 2003 ), Denmark, Turkey, and Singapore ( Özsomer, 2012 ), Austria and Bulgaria ( Sichtmann et al, 2019 ), Bosnia and Herzegovina and Slovenia ( Kolbl et al, 2020 ), and price premium (PP) in South Korea and Germany ( Mandler et al, 2021 ) through various mediating concepts in a cross-cultural context.…”