This is a repository copy of Do corporate image and reputation drive brand equity in India and China?-Similarities and differences.

Extant research has established the effects of nostalgic brand positioning on brand equity, but studies have only examined individual nostalgic brand relationship dimensions separately. Combining these strands, we offer a holistic perspective of the mediating processes and identify contextual and firm-related moderators that affect the individual linkages. We draw on construal level theory and develop a multilevel model in which emotional attachment, brand local iconness, and brand authenticity explain how nostalgic brand positioning creates brand equity. We posit that country differences between emerging and developed markets and brand innovativeness moderate these mediating effects. The results from large consumer samples suggest that emotional attachment and brand local iconness play a weaker role in mediating the connection of nostalgic brand positioning and brand equity in emerging markets. However, this disadvantage in creating brand equity through nostalgic brand positioning in emerging markets can be attenuated with increasing levels of brand innovativeness.

The extant literature has not examined the conditions that govern integrative and exclusionary reactions to cultural hybrid products with sufficient detail. Within an emerging-market setting, this study explores how culturally mixed symbolic products (CMSPs) from foreign global brands can avoid antagonistic consumer attitudes. Building on social categorization theory, the authors argue that foreign global brands are viewed as belonging to an out-group and may thus encounter difficulties in tapping local cultural capital, resulting in a negative relationship between brand globalness and consumer attitude toward CMSPs. However, they contend that product category moderates this relationship such that there is a stronger negative effect for nonfood products than for food products. Moreover, the authors theorize that (1) cultural respect by foreign global companies directly enhances consumer attitudes toward CMSPs and (2) cultural respect attenuates the negative brand globalness–CMSP attitude link. These hypotheses are tested using a representative consumer sample from eight provinces/municipalities in China (n = 646). Results provide important implications for global companies on how to benefit from local cultural resources in their localization processes.

The literature that focuses on acquisitions from the consumer perspective has generally neglected the brand strategy of cross-border acquisitions in an emerging market by a developed country brand. However, research in this field appears necessary, considering the high failure rate of M&As, the common practice of Western/global companies of augmenting their brand portfolio through local acquisitions, and the sensitivity of emerging market consumers to foreign brands. The present study is an initial attempt to understand the loyalty of consumers toward the acquired brands. Moreover, we investigate how such an acquisition affects the relationship between quality and loyalty, as well as between price and loyalty. For fast-moving consumer goods brands in China, the findings indicate that from a customer's perspective acquiring a local brand is not an advisable strategy for foreign brand conglomerates, because such an international takeover may decrease consumer loyalty. Additionally, consumers tend to expect higher quality after the takeover but may not want to pay more for the quality increase.

Purpose Local brands in emerging markets suffer from fierce competition and chronic disadvantages. The purpose of this paper is to investigate if outbreaks of animosity against the West (AAW) might benefit local brands by raising consumers’ willingness to pay (WTP) and willingness to buy (WTB). Design/methodology/approach The study employed 2 methods: structural equation modeling (n=244 Chinese students); and experiment, multiple regression (n=676 Chinese students, different sample than those included in study 1). Findings AAW is different from ethnocentrism and the measurement has good validity and reliability. After an outbreak of animosity, AAW increases Chinese consumers’ WTB local products. The WTP is also enhanced by AAW in such a situation. Under “normal” circumstances, there is no effect of AAW on the WTP. This might be due to the cost of substituting western goods for local ones (e.g. inferior perceived quality and other-signaling value). An outbreak of animosity presents a risk to consumers and thus lowers their overall WTP. Originality/value The study introduces the construct “AAW,” which stretches the animosity construct to an inter-regional level. On such a level, it is possible to find consequences of animosity on local brand consumption, which have not been the focus of previous studies. Additionally, this research introduces the concept of WTP to animosity research. The measurement is built on a real economic exchange and better represents the cost aspects of substituting one brand for another.

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Numerous studies argue that corporate social responsibility (CSR) helps companies build strong and positive relationships with consumers. However, it is not well understood why certain companies are more effective in their CSR activities than others. Some studies have attributed this difference to the country setting, but results are inconclusive. Building on signaling theory, this study explores corporate transparency as a boundary condition of the effects of CSR activities on the consumer–brand relationship. Three experiments and one large survey across three countries examine how a lack of corporate transparency undermines firms’ CSR efforts. Importantly, the authors theorize that the environment of countries differs in terms of transparency, which is then reflected in different levels of corporate transparency. Different country levels of transparency help explain the discrepancies of CSR effectiveness for increasing brand attachment and building consumer behavior. Finally, the authors tie the diminishing effect of CSR in the case of low corporate transparency to an increase in consumer skepticism.

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