How consumer-based brand equity relates to market share of global and local brands in developed and emerging countries

Abstract

PurposeThe purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived quality, brand associations, perceived value and brand loyalty – and market share for different brand types (global versus local) in different country groups (developed versus emerging).Design/methodology/approachThis paper combines consumer–survey-based data, experts' coding and retail panel data of fast-moving consumer goods (FMCG) brands in 29 countries.FindingsIn developed countries, the relationship between each CBBE component (except for brand associations) with market share is stronger for local than global brands. In emerging countries, the relationship between each CBBE component with market share is stronger for global than local brands.Research limitations/implicationsThis paper contributes to better understanding the relationships between CBBE and market share by showing how CBBE components relate to market share for different brand types (global and local) in different country groups (developed and emerging). Limitations arise from constraints related to existing datasets (e.g. limited number of variables and type of product categories considered).Practical implicationsThis paper offers insights to managers working in multinational FMCG companies, as it suggests which CBBE components relate more strongly to the global or local brands' market shares in different countries.Originality/valueThis paper analyzes the relationship between CBBE and market share by focusing on different brand types (global versus local) in different country groups (developed versus emerging). It does so by using a company dataset and showing correspondence with conceptualizations and measures of brand equity from the academic literature. It also considers a large set of 29 countries, extending research beyond national boundaries.

The influence of brand experience on brand equity: the mediating role of brand love in a retail fashion brand

“…For example, strong brand equity can enhance several consumer-related behaviors such as consumer brand attitude (Liu et al, 2017), purchase intention (Slaton et al, 2020), and the willingness to pay premium prices (Augusto and Torres, 2018). Additionally, brand equity can also have positive outcomes for businesses such as increased market share (Zarantonello, 2020). Although relatively scarce in umber, the literature is consensual on the importance of brand equity for business success.…”

Opportunities and Challenges of Companies from the Romanian E-Commerce Market for Sustainable Competitiveness

“…The study results showed that the relationship between RB and market share was statistically significant, according to the study of Zarantonello et al [33] that show that in emerging countries, like Romania, the relationship between each CBBE component and market share was stronger for global brands than local ones.…”

“…The relationship between CBBE and market share by different brand types (global versus local) across different groups of countries (developed versus emerging) was examined by Zarantonello et al [33], based on a survey of consumer goods from 29 countries. The study results showed that the relationship between CBBE components and market share was stronger for local brands than global ones, and in emerging countries, the relationship between each CBBE component and market share was stronger for global brands than local ones.…”

Customer engagement on social media, brand equity and financial performance: a comparison of the US and Korea

“…Therefore, brand equity can be understood as having a positive impact on business performance regardless of the cultural dimension. As such, brand equity is consistently recognized in the brand literature as having a positive effect on both customer and business performance, regardless of national and international environments (Zarantonello et al , 2020).…”

“…Keller and Lehmann (2006) consider three distinct perspectives for studying brand equity: a (1) customer-based, (2) company- based and (3) financial-based. Prior research has explored brand equity's positive impact on various corporate performances, including purchase intentions, market share, perceived quality and shareholder value (for a review, see Zarantonello et al , 2020).…”