Marketing in Emerging Economies | Articles
Zhou et al. (2010): Non-local or local brands?
- Perceived brand foreignness (PBF) refers to a consumer’s perception that a brand is of
foreign or non-local origin.
- Today, more and more firms from emerging economies are using foreign image association
strategies as important components of their branding and marketing communication
strategies. These firms believe that foreign appeals bring about a higher quality perception
and increase social status for their brands.
- This paper addresses the following questions:
1. To what extent is perceived foreignness of a brand relevant and diagnostic to consumer
evaluations of the brand?
2. Would foreign or local brands benefit more from perceived brand foreignness?
3. How could we enhance the value of the perceived foreignness of a brand?
To address these questions, the authors introduce a construct referred to as confidence in
brand origin identification (CBO) and conceptualize it as a moderator that affects the
effects of PBF on consumer evaluation of brand value.
- Confidence in brand origin identification (CBO) is defined as a consumer’s belief in his/
her judgment or attribution of a brand’s country of origin. In a marketplace filled with
uncertainty about actual brand origins due to the imitation strategies of local rivals and/or
the localization movement of international players, consumers’ subjective attribution of
brand origin is expected to enhance the value of PBF on brand evaluation. This could
explain how consumers interpret things related to perceived country association when the
rise of global branding and various misleading signifiers of brand origin information are
prevalent in the global marketplace.
- PBF pointed out that foreign culture brand positioning is a viable marketing
communication strategy to enhance brand value across different countries of cultures.
Marketers and advertisers have put tremendous effort into associating their brands with
desirable international images, such as using a foreign or global brand positioning strategy
through advertising.
- Hypotheses:
H1: A higher level of perceived brand foreignness (PBF) leads to a higher level of
consumer brand value perception.
H2: A higher level of confidence in brand origin identification (CBO) leads to a higher level
of consumer brand value perception.
H3: The effects of perceived brand foreignness (PBF) on consumer perceptions of brand
value are greater when consumer confidence in brand origin identification (CBO) is high
1
, than low.
H4: Foreign brands are generally perceived as having a higher level of brand value than
local brands.
H5: The enhancing function of CBO in the effects of PBF on consumer perceptions of brand
value will be less profound for foreign than for local brands.
- To illustrate the hypotheses:
- While multinational companies are strategically positioned to move toward building global
brands (i.e., those without any country associations), local firms are increasingly keen on
imitating foreign (mostly Western) appeals or symbols for their home-grown brands in
emerging markets. These market changes lead to consumer confusion over local vs. non-
local brands. Such a market phenomenon reflects a recent concern about the diminishing
value of perceived brand foreignness (PBF).
- CBO serves as a signal of trust to enhance the positive effects of brand foreignness on
consumer perceptions of brand value. The enhancement function of confidence in origin
identification is more profound for local than for foreign brands.
- In fast-changing emerging market environments, brand origin association may be
considered an integral part of brand equity because it is likely to build trust in the minds of
2
, confused consumers. While the general influence of traditional country-of-origin cues (such
as, made-in affiliations) may be dissipating in today’s global production environment,
brands that are associated with a “protected designation of origin” tend to be in a better
position to insure a product’s credibility and authenticity.
Westjohn & Magnusson (2017): Export Performance - A Focus on Discretionary
Adaptation
- Marketing adaptation strategy has been characterized as a strategic imperative in markets
with protectionist and nationalist sentiments, which underscores the need to better
understand the effects of adaptation strategy. However, empirical investigations of
international marketing strategy have considered mandatory and discretionary adaptations
as equivalent. Discretionary adaptations, unlike mandatory adaptations, involve choice;
thus, they are more relevant to the selection of an international marketing strategy.
- This article focuses on the direct and conditional effects of discretionary adaptation on
export performance. The authors find a positive effect of discretionary adaptation on
export performance as well as moderating effects of:
1. A market characteristic (psychic distance)
2. A firm characteristic (international experience)
3. A product characteristic (product positional advantage)
The implications suggest that adaptation strategy may be more advantageous than
previously thought, and that researchers should focus on discretionary adaptations when
investigating the choice of a relatively standardized versus adapted international marketing
strategy.
- Mandatory adaptations include compliance with local laws and regulations (e.g., package
labeling, advertising restrictions, safety features), whereas discretionary adaptations are
modifications to the firm’ s marketing mix to better appeal to customer tastes and
preferences of the local market (e.g., product features, positioning, distribution outlets).
- Discretionary adaptations are important because international marketers can control their
implementation and because their optional nature enables marketers to create an
advantage through localization.
- Discretionary adaptations are adaptations that are not required by law or regulation but,
rather, are voluntary adaptations made to appeal to customers.
- The goal of mandatory adaptations is the same for all firms (i.e., regulatory compliance to
operate in a market), and the strategies by different firms for achieving compliance should
be relatively similar.
- The goal of discretionary adaptations is a strategic fit with the local environment to
improve the firm’s competitiveness and performance in the market.
3
Zhou et al. (2010): Non-local or local brands?
- Perceived brand foreignness (PBF) refers to a consumer’s perception that a brand is of
foreign or non-local origin.
- Today, more and more firms from emerging economies are using foreign image association
strategies as important components of their branding and marketing communication
strategies. These firms believe that foreign appeals bring about a higher quality perception
and increase social status for their brands.
- This paper addresses the following questions:
1. To what extent is perceived foreignness of a brand relevant and diagnostic to consumer
evaluations of the brand?
2. Would foreign or local brands benefit more from perceived brand foreignness?
3. How could we enhance the value of the perceived foreignness of a brand?
To address these questions, the authors introduce a construct referred to as confidence in
brand origin identification (CBO) and conceptualize it as a moderator that affects the
effects of PBF on consumer evaluation of brand value.
- Confidence in brand origin identification (CBO) is defined as a consumer’s belief in his/
her judgment or attribution of a brand’s country of origin. In a marketplace filled with
uncertainty about actual brand origins due to the imitation strategies of local rivals and/or
the localization movement of international players, consumers’ subjective attribution of
brand origin is expected to enhance the value of PBF on brand evaluation. This could
explain how consumers interpret things related to perceived country association when the
rise of global branding and various misleading signifiers of brand origin information are
prevalent in the global marketplace.
- PBF pointed out that foreign culture brand positioning is a viable marketing
communication strategy to enhance brand value across different countries of cultures.
Marketers and advertisers have put tremendous effort into associating their brands with
desirable international images, such as using a foreign or global brand positioning strategy
through advertising.
- Hypotheses:
H1: A higher level of perceived brand foreignness (PBF) leads to a higher level of
consumer brand value perception.
H2: A higher level of confidence in brand origin identification (CBO) leads to a higher level
of consumer brand value perception.
H3: The effects of perceived brand foreignness (PBF) on consumer perceptions of brand
value are greater when consumer confidence in brand origin identification (CBO) is high
1
, than low.
H4: Foreign brands are generally perceived as having a higher level of brand value than
local brands.
H5: The enhancing function of CBO in the effects of PBF on consumer perceptions of brand
value will be less profound for foreign than for local brands.
- To illustrate the hypotheses:
- While multinational companies are strategically positioned to move toward building global
brands (i.e., those without any country associations), local firms are increasingly keen on
imitating foreign (mostly Western) appeals or symbols for their home-grown brands in
emerging markets. These market changes lead to consumer confusion over local vs. non-
local brands. Such a market phenomenon reflects a recent concern about the diminishing
value of perceived brand foreignness (PBF).
- CBO serves as a signal of trust to enhance the positive effects of brand foreignness on
consumer perceptions of brand value. The enhancement function of confidence in origin
identification is more profound for local than for foreign brands.
- In fast-changing emerging market environments, brand origin association may be
considered an integral part of brand equity because it is likely to build trust in the minds of
2
, confused consumers. While the general influence of traditional country-of-origin cues (such
as, made-in affiliations) may be dissipating in today’s global production environment,
brands that are associated with a “protected designation of origin” tend to be in a better
position to insure a product’s credibility and authenticity.
Westjohn & Magnusson (2017): Export Performance - A Focus on Discretionary
Adaptation
- Marketing adaptation strategy has been characterized as a strategic imperative in markets
with protectionist and nationalist sentiments, which underscores the need to better
understand the effects of adaptation strategy. However, empirical investigations of
international marketing strategy have considered mandatory and discretionary adaptations
as equivalent. Discretionary adaptations, unlike mandatory adaptations, involve choice;
thus, they are more relevant to the selection of an international marketing strategy.
- This article focuses on the direct and conditional effects of discretionary adaptation on
export performance. The authors find a positive effect of discretionary adaptation on
export performance as well as moderating effects of:
1. A market characteristic (psychic distance)
2. A firm characteristic (international experience)
3. A product characteristic (product positional advantage)
The implications suggest that adaptation strategy may be more advantageous than
previously thought, and that researchers should focus on discretionary adaptations when
investigating the choice of a relatively standardized versus adapted international marketing
strategy.
- Mandatory adaptations include compliance with local laws and regulations (e.g., package
labeling, advertising restrictions, safety features), whereas discretionary adaptations are
modifications to the firm’ s marketing mix to better appeal to customer tastes and
preferences of the local market (e.g., product features, positioning, distribution outlets).
- Discretionary adaptations are important because international marketers can control their
implementation and because their optional nature enables marketers to create an
advantage through localization.
- Discretionary adaptations are adaptations that are not required by law or regulation but,
rather, are voluntary adaptations made to appeal to customers.
- The goal of mandatory adaptations is the same for all firms (i.e., regulatory compliance to
operate in a market), and the strategies by different firms for achieving compliance should
be relatively similar.
- The goal of discretionary adaptations is a strategic fit with the local environment to
improve the firm’s competitiveness and performance in the market.
3
