The Double-Edged Sword of Foreign Brand Names for Companies from Emerging Countries

Melnyk, Valentyna; Klein, Kristina; Völckner, Franziska

doi:10.1509/jm.11.0349

Cited by 137 publications

(128 citation statements)

References 72 publications

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“…Consumers process hedonic categories more holistically and therefore may rely on cues such as the brand (Melnyk, Klein, and Völckner 2012). Accordingly, we expect the association of CBBE with SBBE to be stronger in hedonic categories (P1.4 and P2.4).…”

Section: Category Moderators Of the Association Between Cbbe And Sbbementioning

confidence: 93%

How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?

Datta

Ailawadi

Heerde

2017

Journal of Marketing

217

190

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Brand equity is the differential preference and response to marketing effort that a product obtains because of its brand identification. Brand equity can be measured using either consumer perceptions or sales. Consumer-based brand equity (CBBE) measures what consumers think and feel about the brand, whereas sales-based brand equity (SBBE) is the brand intercept in a choice or market share model. This article studies the extent to which CBBE manifests itself in SBBE and marketing-mix response using ten years of IRI scanner and Brand Asset Valuator data for 290 brands spanning 25 packaged good categories. The authors uncover a fairly strong positive association of SBBE with three dimensions of CBBE—relevance, esteem, and knowledge—but a slight negative correspondence with the fourth dimension, energized differentiation. They also reveal new insights on the category characteristics that moderate the CBBE–SBBE relationship and document a more nuanced association of the CBBE dimensions with response to the major marketing-mix variables than heretofore assumed. The authors discuss implications for academic researchers who predict and test the impact of brand equity, for market researchers who measure it, and for marketers who want to translate their brand equity into marketplace success.

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Section: Category Moderators Of the Association Between Cbbe And Sbbementioning

confidence: 93%

How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?

Datta

Ailawadi

Heerde

2017

Journal of Marketing

217

190

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“…An increasing number of companies worldwide have adopted the strategy of using foreign brand names in their various markets. (Melnyk, Klein, & Völckner, 2012). Foreign branding defined as, the strategy of spelling or pronouncing a brand name in a foreign language which is targeted primarily toward influencing the brand image dimension of brand equity (LeClerc, Schmitt & Dube, 1994).…”

Section: Foreign Brandingmentioning

confidence: 99%

“…The idea of foreign brand names is to utilize an appropriate, usually category-favorable, country image to influence consumers' evaluations of a product (Melnyk, Klein, & Völckner, 2012). Prior empirical studies have shown that pronunciation in terms of phonetic structure (Yorkston & Menon, 2004), the 'hardness' of consonants (Heath, Chatterjee, & France, 1990), and different vowel sounds (Lowrey & Shrum, 2007) effect consumer impressions of a brand name.…”

Section: Foreign Brandingmentioning

confidence: 99%

Insights into Consumer Preference of Foreign Brand Names: Reality or Myth?

Ergin¹,

Akbay²,

Ozsacmaci³

2014

IJMS

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This study builds from LeClerc et al.'s (1989LeClerc et al.'s ( , 1994 work on foreign branding effects, but it does so in the context of a developing East European country; as in the case of Turkey. The purpose of this exploratory research is to examine consumers' attitudes towards products with foreign brand names and also to assess the impact of foreign brand names on the purchasing decision making. In the data collection phase of the study an in-depth interviews were conducted with 23 participants in the city of Ankara, Turkey. The results show that products with foreign brand names elicit more positive consumer attitude than products with national brands. Overall, the findings suggest that consumers prefer to purchase products with foreign brand names for a variety of reasons which including quality, reliability, functionality and prestige. The results have important implications for domestic and foreign manufacturers with regards to the consumer-side effects of their decisions on branding strategies and on their competitive foreign branding decisions.

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“…In emerging markets, most consumers prefer foreign brands because of their favorable country associations (Melnyk, Klein, and Völckner 2012). When a country is considered to have a favorable country image or to possess particular expertise in a product category, brands from that country benefit from the association and have a more favorable brand image (Lee, Lockshin, and Greenacre 2016;Sichtmann and Diamantopoulos 2013).…”

Section: Ibd Of Foreign Versus Domestic Brands In Emerging Marketsmentioning

confidence: 99%

Intention–Behavior Discrepancy of Foreign versus Domestic Brands in Emerging Markets: The Relevance of Consumer Prior Knowledge

Sun

Zheng

et al. 2017

Journal of International Marketing

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Most research on the performance of foreign versus domestic brands in emerging markets examines dependent measures of product evaluation or purchase intention. However, consumers intending to buy a product may switch to competing brands, displaying an intention-behavior discrepancy (IBD). Drawing upon literature on country associations and dual process theory, we examine the performance of foreign versus domestic brands on IBD in emerging markets and the moderating role of prior knowledge. We conducted an intention survey followed by a post-purchase survey in the Chinese automobile and smartphone industries. We found that foreign brands have an advantage on IBD relative to domestic brands, indicating that they have the dual advantage of higher evaluations and lower IBDs.Furthermore, foreign brands' advantage on IBD is smaller for consumers with inaccurate prior knowledge, as they are more likely to systematically reprocess information and discount foreign brands' favorable country associations. For these consumers, overestimating the product reduces foreign brands' advantage to a smaller degree than underestimating it due to confirmation bias. These findings provide implications for brands in emerging markets.Keywords: foreign brands, domestic brands, intention-behavior discrepancy, prior knowledge, emerging market 3 The globalization of the marketplace has intensified competition between foreign and domestic brands. Some prior research suggests that consumers prefer foreign to domestic brands because they experience favorable feelings or affinity toward some foreign countries (Oberecker and Diamantopoulos 2011). Other research, however, finds that consumers show a home country bias that favors domestic brands, due to economic and socio-psychological motives (Feurer, Baumbach, and Woodside 2016;Verlegh 2007;Zeugner-Roth, Zabkar, and Diamantopoulos 2015). Despite the mixed findings, there is a consensus that consumers in emerging markets such as China, India, and Tunisia generally prefer foreign brands (especially those from more developed countries) over domestic brands (Batra et al. 2000;Essoussi and Merunka 2007). In these markets, foreign brands from developed countries are perceived to have higher quality and higher symbolic value, and signal a western lifestyle that consumers prefer (Guo 2013;Zhou, Yang, and Hui 2010). This may explain why some Chinese brands use foreign-sounding names to attract local consumers (Melnyk, Klein, and Völckner 2012). For example, the leading Chinese appliance brand Galanz uses a Germanic name to be associated with the high durability and quality of German appliances.There is, however, still a research gap when it comes to the performance of foreign versus domestic brands in emerging markets. In this body of literature, most research examines product evaluation or purchase intention (i.e., what consumers say) and ignores the subsequent purchase behavior (i.e., what consumers do) and the possible discrepancy between intention and behavior. Allman et al. (2016) reviewe...

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The Double-Edged Sword of Foreign Brand Names for Companies from Emerging Countries

Cited by 137 publications

References 72 publications

How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?

How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?

Insights into Consumer Preference of Foreign Brand Names: Reality or Myth?

Intention–Behavior Discrepancy of Foreign versus Domestic Brands in Emerging Markets: The Relevance of Consumer Prior Knowledge

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