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Non-local or local brands? A multi-level investigation into confidence in brand origin identification and its strategic implications

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Abstract

This article addresses a growing dilemma surrounding the strategic value of perceived brand foreignness (PBF) among consumers in emerging economies. Building on recent research evidence from the brand origin literature, we introduce the concept of confidence in brand origin identification (CBO) and theorize its moderating impact on the value of PBF in explaining and predicting brand evaluation. Using a multi-level modeling technique, this study provides evidence showing that CBO moderates the effect of PBF on consumer evaluations of brand value. Moreover, the moderating influence of CBO is found to be more profound for local than for foreign brands. Managerial implications for building both global and local brands in emerging markets are discussed.

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Acknowledgements

The authors would like to express their gratitude to the JAMS Editor and the four anonymous reviewers for their helpful and constructive comments. They are also grateful to the financial support provided by Lingnan University, Hong Kong.

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Authors and Affiliations

  1. Department of Marketing, International Business, and Strategy, Brock University, St. Catharines, Ontario, Canada, L2S 3A1

    Lianxi Zhou

  2. Department of Marketing, University of Texas at Arlington, Arlington, TX, 76019, USA

    Zhiyong Yang

  3. Department of Marketing, The Chinese University of Hong Kong, Hong Kong, China

    Michael K. Hui

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Correspondence to Lianxi Zhou.

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Zhou, L., Yang, Z. & Hui, M.K. Non-local or local brands? A multi-level investigation into confidence in brand origin identification and its strategic implications. J. of the Acad. Mark. Sci. 38, 202–218 (2010). https://doi.org/10.1007/s11747-009-0153-1

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