Role of perceived brand globalness and localness in developing consumer word-of-mouth in the hospitality industry

Abstract

PurposeThe purpose of this study is to examine the role of perceived brand globalness (PBG) and perceived brand localness (PBL) in developing consumer word-of-mouth (CWOM) via brand attitude (BATT) by incorporating the moderating role of consumer ethnocentrism (CET) and perceived brand origin (PBO) as well as considering brand familiarity (BF) as a covariate in the context of global and local quick-service restaurant (QSR) brands in emerging markets.Design/methodology/approachThis study obtained 764 responses from Chinese consumers through an online survey and analyzed the data using the maximum-likelihood estimation technique with structural equation modeling.FindingsAfter controlling brand familiarity, this study revealed that PBG and PBL are critical components that drive brand attitude, which positively improves CWOM toward global and local QSR brands. Similarly, PBG and PBL are important brand attributes that directly influence CWOM. Importantly, this research found the significant role of PBO on brand attitude toward perceived local brands compared to global QSR brands. Although this study did not discover the influence of CET as expected. However, these insights may assist global and local managers to rethink their strategies in emerging markets.Research limitations/implicationsThis study was conducted exclusively in China. However, additional studies may be considered in other countries, such as comparing Asian vs European consumers.Practical implicationsThis study provides recommendations to global and local managers to support them in designing and executing several brand positioning strategies in the QSR industry.Originality/valueThis novel study contributes to the accessibility–diagnosticity theory and signaling theory by examining consumers' perceptions of global and local QSR brands.