How nostalgic brand positioning shapes brand equity: differences between emerging and developed markets

Abstract

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.

A Bad Job of Doing Good: Does Corporate Transparency on a Country and Company Level Moderate Corporate Social Responsibility Effectiveness?

“…This brand–self linkage can involve myriad emotional feelings such as happiness and pride from brand–self display (Park et al 2013), which fits with the idea that consumers examine signals of benevolence and morality about a firm’s character. It has also been suggested as an important driver of consumers’ brand loyalty (Khamitov, Wang, and Thomson 2019), brand equity (Heinberg et al 2020), advocacy, purchase intention, and actual purchase behavior (Park et al 2013). Other variables, such as attitude strength, are a less important predictor of key behavioral outcome variables (Park et al 2010).…”

Value distribution and markets for social justice in global value chains: Interdependence relationships and government policy

“…More typically, fashion firms have relinquished their power to bring about social change and have opted for congruity with local value systems in low-interdependence countries. The endorsement of women’s traditional status in low-interdependence societies via fashion branding, in conflict to gender equality views typical of high-interdependence countries, illustrates this approach (Heinberg et al, 2020 ; Hung, Li, & Belk, 2007 ). Benetton itself has abandoned the social contents of its branding in favor of conciliatory positioning as its commitment to social causes came to be seen as a major reason for its decline (Wells & Danskin, 2014 ).…”

New perspectives on business model innovations in emerging markets

“…Here, the authors identify the need to uncover the underlying effect which drives the positive impact of nostalgic brand positioning on brand equity and related concepts, and that a comprehensive framework of this mechanism must account for differences in developed and emerging markets. Heinberg et al's (2019) approach has been to uncover the relevant mediating factors-e.g., brand local iconness, emotional attachment, etc.-and then compare the salience of effect of these moderators between different market settings, such that country setting moderates the mediating effects. The authors have aptly described their work as a "holistic perspective on the different channels through which nostalgic brand positioning leads to brand equity (or related constructs)."…”

“…For example, Borah et al (2019) point to industry-specific heterogeneity as a reason for the inconclusive role of TAT (turnaround time, or response speed) in mitigating both outcome and process failure, while also pointing to the possibility of recovery mechanisms that might be "idiosyncratic to emerging markets." While Heinberg et al (2019) point to the very real possibility that cultural factors specific to emerging markets might influence the effect of nostalgic brand positioning on brand equity, Arunachalam et al (2019) emphasize the recent widespread growth of online distribution channels in penetrating the BoP. As these new frameworks become subject to further testing and validation by future researchers, additional research to uncover additional factors can be undertaken.…”

“…Another thing to keep in mind when considering the emerging/developed market dichotomy is not to lose focus of larger trends and issues in international affairs. The research of Heinberg et al (2019), for example, acknowledges the importance of additional country-level factors-"For example, what role does animosity between two countries play … and how does it differ between foreign and local brands with nostalgic brand positioning? How can changes in politicoeconomic conditions affect the strength of individual mediators?"…”