The author examines the role of country image in consumer evaluations of television sets and automobiles. Specifically, two alternative causal models are developed and tested: (1) the halo model hypothesizing that country image serves as a halo in product evaluation and (2) the summary construct model hypothesizing that country image functions as a summary construct. The test results indicate that when consumers are not familiar with a country's products, country image may serve as a halo from which consumers infer a brand's product attributes and which affects their attitude toward the brand indirectly through product attribute rating. In contrast, as consumers become familiar with a country's products, country image may become a construct that summarizes consumers’ beliefs about product attributes and directly affects their attitude toward the brand.
Consumers in Western markets are increasingly critical towards globalization and re-embrace local values. Companies thus must decide whether to continue to pursue global branding strategies and/or rejuvenate local branding strategies. To explore the implications of market globalization for consumer preferences, we use signaling theory to investigate the role of perceived brand globalness (PBG) and brand localness (PBL) as signals of brand credibility, related downstream effects and boundary conditions, across two countries with differing levels of globalization. In globalized markets, PBG is a weaker signal of brand credibility than PBL, whereas in globalizing markets, the two signals are of equal importance.
Purpose
The purpose of this paper is to investigate how consumer cosmopolitanism (COS) and consumer ethnocentrism (CET) may affect young populations in China (an emerging country) and Korea (an advanced emerging country) on their evaluations of Japanese brands.
Design/methodology/approach
The author hypothesize that the levels and the effects of COS and CET will differ between China and Korea because of their differing levels of economic development and globalization. Surveys were conducted with 311 Chinese and Korean young individuals with comparable sample characteristics.
Findings
The research reveals a few interesting findings. First, the findings show that Chinese young consumers may be more ethnocentric and moderately less cosmopolitan than their Korean counterparts. Additionally, COS was found to have greater effects on evaluations of Japanese brands in China than in Korea. On the other hand, CET played a subdued role in brand evaluations for both countries.
Research limitations/implications
The findings suggest that COS and CET may have reduced influences on future consumers in emerging Asia and other emerging countries as they experience increasing globalization.
Originality/value
This study addresses an under-researched issue of how consumer values may change in emerging Asia experiencing rapid economic development and globalization.
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