Exploring antecedents and consequences of young consumers’ perceived global brand equity

Abstract

Purpose With the expansion of globalization, the increased competitive environment has led to the diffusion of brands across borders and cultures. Furthermore, young consumers represent an optimal segment for the proliferation of global consumer culture (GCC). This paper aims to examine the relationship between acculturation to global consumer culture (AGCC), perceived brand equity, attitudes toward the brand and brand resonance in the global sportswear brands context among young consumers in the USA. Design/methodology/approach A total of 394 undergraduate student participants ranging in age from 18 years to 24 years completed a multisectional structured survey. Model construct validity was tested using a confirmatory factor analysis. A structure equation model was used to test hypotheses and relationships. Findings Results showed that while cosmopolitan and self-identification with GCC dimensions of ACGG had a positive association with perceived brand equity, exposure to marketing activities of MNCs and global mass media exposure dimensions of AGCC had a negative association with perceived brand equity. Perceived brand equity also revealed a positive association with attitudes toward the brand, which in turn, affected brand resonance. Research limitations/implications The research used a sample of 18-24-year-old youth consumers. Future research could be extended to include younger (15-17-year old) sample to provide a broader sample of the youth market. In addition, future replication of findings should seek through cross-cultural investigation of multiple youth segments. Practical implications Findings suggest support multiple dimensions of the AGCC scale as holding significant influence on young consumers’ brand equity consisting of brand image and brand awareness. Managerially, the findings provide support on the youth consumer’s affinity toward self-identification with a GCC and cosmopolitan openness to foreign cultures as being positively related to the adoptions and retention of apparel brands. Social implications Theoretically, the results provide empirical evidence for the debate on the interrelationship between brand equity and attitudes toward brands. The theoretical model guiding the current study reflects the notion of an emerging acculturation process among a segment of the world’s population to a set of global consumer preferences and ideals that are increasingly being embodied in global brands. Originality/value This is among one of the first studies attempting to explore the applicability of Cleveland and Laroche’s (2007) AGCC concepts in predicting young consumers’ attitudes and behavioral responses toward global brands.

New challenges in brand management

“…The brand support team from the company side seems to not be able to cope with the speed of change. Markets have become more global, brands have become diffused across borders and cultures (Frank and Watchravesringkan, 2016) and the technological advances have enhanced the cultural borrowing and the interaction of interested parties across the globe. The wide use of the internet and social networks such as Facebook, Twitter, Instagram and Pinterest facilitates the process of consumers finding likeminded individuals that support the brands they like without any constrain of geographic boundaries (Dessart et al, 2015;Simon et al, 2016;Tafesse, 2016).…”

Local, global and glocal consumer brand relationships

“…Batra et al (2000) have identified a strong relationship between brand image and brand attitude in India for local, nonlocal and even for blended or hybrid brands. Frank and Watchravesringkan (2016) have also identified a close relationship between brand image and brand attitude among global brands. However, from Keller's (1993) point of view, if brand attitude is a part of brand image, brand attitude should be a driver of brand image (Kirmani and Zeithaml, 1993).…”

Brand Equity through Customer Engagement in Social Media: A Critical Review

“…As customer emotions move from negative to positive, customer loyalty is expected to ascend. Recent empirical study (Frank, 2016) also revealed a positive relationship between perceived brand equity and brand resonance. Hence, pre-purchase perceived brand equity would further develop brand loyalty on the basis of post-purchase experience.…”