The Mediating Effect of Quality and Prestige on the Relationship between Brand Globalness and Purchase Likelihood of HTC Mobile Phone

Abstract

Perceived brand quality (PBQ) and perceived brand prestige (PBP) have been considered very important mechanisms to predict the direct as well as indirect relationship between perceived brand globalness (PBG) and consumer purchase likelihood (CPL) in many studies. However, almost all studies focused on direct influence of PBQ and PBP on CPL, neglecting the mediating role of them. This study, therefore, aims at filling this research gap by investigating the mediating effects of PBQ and PBP on the relationship between the PBG and CPL in the mobile industry applied to the HTC Company. In doing so, this study used the structural equation modeling (SEM) approach to analyze a total sample of 439 college student consumers in central Taiwan. Results indicated that PBG and BPQ have positive effects on CPL while PBP did not. These findings are different from the literature that both PBQ and BBP showed significant influences on CPL. In other words, when it comes to HTC mobile phone, only PBQ could be considered as a mediating variable through which PBG indirectly affects CPL. Generally, this study opens the doors to new empirical studies in the mobile phone industry whereby readers and practitioners would understand the importance of mediator role in consumer purchase intention.

What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries

“…Neither Taiwanese nor Indonesian consumers perceive HTC as a prestigious brand. For the Taiwanese population, this finding is consistent with a similar previous study of HTC in Taiwan [117]. The results, however, are different for Apple smartphones.…”

Perceived Brand Globalness/Localness: A Systematic Review of the Literature and Directions for Further Research

“…For example, Randrianasolo (2017) investigates correlations between PBG and its outcomes (i.e., quality and prestige) across three markets that vary by country economic development level: a least developed country (Madagascar), an emerging country (India), and a developed country (United States); he finds that the correlation between outcomes (quality and prestige) and PBG is significant in Madagascar, marginally significant in India, and not significant in the United States. However, other studies (e.g., Moslehpour, Pham, and Yumnu 2014; Sichtmann and Diamantopoulos 2013) challenge the dominant finding by suggesting that PBG is not as powerful as previous research suggests in developing markets. For example, Sichtmann and Diamantopoulos (2013) examine the brand extension success of global parent brands in both developed- and developing-country markets and show that globalness perceptions of the parent brands elicit brand extension success (i.e., quality perception) only in the developed market (Austria); they report no correlation between PBG and quality perception in the developing market (Bulgaria).…”

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