IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v52y2021i8d10.1057_s41267-020-00312-2.html
   My bibliography  Save this article

Brand credibility and marketplace globalization: The role of perceived brand globalness and localness

Author

Listed:
  • Timo Mandler

    (Toulouse Business School)

  • Fabian Bartsch

    (IESEG School of Management
    LEM-CNRS 9221)

  • C. Min Han

    (Hanyang University)

Abstract

Consumers in Western markets are increasingly critical towards globalization and re-embrace local values. Companies thus must decide whether to continue to pursue global branding strategies and/or rejuvenate local branding strategies. To explore the implications of market globalization for consumer preferences, we use signaling theory to investigate the role of perceived brand globalness (PBG) and brand localness (PBL) as signals of brand credibility, related downstream effects and boundary conditions, across two countries with differing levels of globalization. In globalized markets, PBG is a weaker signal of brand credibility than PBL, whereas in globalizing markets, the two signals are of equal importance.

Suggested Citation

  • Timo Mandler & Fabian Bartsch & C. Min Han, 2021. "Brand credibility and marketplace globalization: The role of perceived brand globalness and localness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1559-1590, October.
    • Handle: RePEc:pal:jintbs:v:52:y:2021:i:8:d:10.1057_s41267-020-00312-2
    DOI: 10.1057/s41267-020-00312-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-020-00312-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41267-020-00312-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Saeed Samiee & Terence A Shimp & Subhash Sharma, 2005. "Brand origin recognition accuracy: its antecedents and consumers’ cognitive limitations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(4), pages 379-397, July.
    2. Sichtmann, Christina & Davvetas, Vasileios & Diamantopoulos, Adamantios, 2019. "The relational value of perceived brand globalness and localness," Journal of Business Research, Elsevier, vol. 104(C), pages 597-613.
    3. Belk, Russell W, 1988. "Possessions and the Extended Self," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 139-168, September.
    4. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    5. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    6. Strizhakova, Yuliya & Coulter, Robin A., 2013. "The “green” side of materialism in emerging BRIC and developed markets: The moderating role of global cultural identity," International Journal of Research in Marketing, Elsevier, vol. 30(1), pages 69-82.
    7. Tsiros, Michael & Mittal, Vikas, 2000. "Regret: A Model of Its Antecedents and Consequences in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(4), pages 401-417, March.
    8. Bergh, Andreas & Nilsson, Therese, 2014. "Is Globalization Reducing Absolute Poverty?," World Development, Elsevier, vol. 62(C), pages 42-61.
    9. Mark Cleveland & Fabian Bartsch, 2019. "Global consumer culture: epistemology and ontology," Post-Print hal-02110808, HAL.
    10. Daniel Bello & Kwok Leung & Lee Radebaugh & Rosalie L Tung & Arjen van Witteloostuijn, 2009. "From the Editors: Student samples in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(3), pages 361-364, April.
    11. Paul J. J. Welfens, 2019. "The Global Trump," Springer Books, Springer, number 978-3-030-21784-6, September.
    12. Calder, Bobby J & Phillips, Lynn W & Tybout, Alice M, 1981. "Designing Research for Application," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(2), pages 197-207, September.
    13. Niklas Potrafke, 2015. "The Evidence on Globalisation," The World Economy, Wiley Blackwell, vol. 38(3), pages 509-552, March.
    14. Michael A. Witt, 2019. "De-globalization: Theories, predictions, and opportunities for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1053-1077, September.
    15. Michael B. Beverland & Francis J. Farrelly, 2010. "The Quest for Authenticity in Consumption: Consumers' Purposive Choice of Authentic Cues to Shape Experienced Outcomes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(5), pages 838-856, February.
    16. Jean-Noël Kapferer & Gilles Laurent, 1985. "Measuring consumer involvement profiles," Post-Print hal-00786781, HAL.
    17. Halkias, Georgios & Davvetas, Vasileios & Diamantopoulos, Adamantios, 2016. "The interplay between country stereotypes and perceived brand globalness/localness as drivers of brand preference," Journal of Business Research, Elsevier, vol. 69(9), pages 3621-3628.
    18. Bernhard Swoboda & Cathrin Puchert & Dirk Morschett, 2016. "Explaining the differing effects of corporate reputation across nations: a multilevel analysis," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 454-473, July.
    19. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    20. Kihlstrom, Richard E & Riordan, Michael H, 1984. "Advertising as a Signal," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 427-450, June.
    21. Beatty, Sharon E & Talpade, Salil, 1994. "Adolescent Influence in Family Decision Making: A Replication with Extension," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 332-341, September.
    22. Dannie Kjeldgaard & Sren Askegaard, 2006. "The Glocalization of Youth Culture: The Global Youth Segment as Structures of Common Difference," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 231-247, July.
    23. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    24. Riefler, Petra, 2012. "Why consumers do (not) like global brands: The role of globalization attitude, GCO and global brand origin," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 25-34.
    25. Strizhakova, Yuliya & Coulter, Robin A. & Price, Linda L., 2012. "The young adult cohort in emerging markets: Assessing their glocal cultural identity in a global marketplace," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 43-54.
    26. Verlegh, Peeter W. J. & Steenkamp, Jan-Benedict E. M., 1999. "A review and meta-analysis of country-of-origin research," Journal of Economic Psychology, Elsevier, vol. 20(5), pages 521-546, October.
    27. Strizhakova, Yuliya & Coulter, Robin A. & Price, Linda L., 2011. "Branding in a global marketplace: The mediating effects of quality and self-identity brand signals," International Journal of Research in Marketing, Elsevier, vol. 28(4), pages 342-351.
    28. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    29. Sirgy, M Joseph, 1982. "Self-Concept in Consumer Behavior: A Critical Review," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(3), pages 287-300, December.
    30. Peeter W J Verlegh, 2007. "Home country bias in product evaluation: the complementary roles of economic and socio-psychological motives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 361-373, May.
    31. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    32. Özsomer, Aysegül & Batra, Rajeev & Chattopadhyay, Amitava & ter Hofstede, Frenkel, 2012. "A global brand management roadmap," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 1-4.
    33. Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
    34. Jean-Noël Kapferer & Isabelle Schuiling, 2004. "Executive Insights: Real Differences Between Local and International Brands: Strategic Implications for International Marketers," Post-Print hal-00781539, HAL.
    35. N L Reynolds & A C Simintiras & A Diamantopoulos, 2003. "Theoretical justification of sampling choices in international marketing research: key issues and guidelines for researchers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 80-89, January.
    36. Mandler, Timo & Won, Sungbin & Kim, Kyungae, 2017. "Consumers' cognitive and affective responses to brand origin misclassifications: Does confidence in brand origin identification matter?," Journal of Business Research, Elsevier, vol. 80(C), pages 197-209.
    37. Eric J. Arnould & Craig J. Thompson, 2005. "Consumer Culture Theory (CCT): Twenty Years of Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 868-882, March.
    38. Carlos J. Torelli & Rohini Ahluwalia, 2012. "Extending Culturally Symbolic Brands: A Blessing or a Curse?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(5), pages 933-947.
    39. Arvind Subramanian & Martin Kessler, 2013. "The Hyperglobalization of Trade and Its Future," Working Paper Series WP13-6, Peterson Institute for International Economics.
    40. Boulding, William & Kirmani, Amna, 1993. "A Consumer-Side Experimental Examination of Signaling Theory: Do Consumers Perceive Warranties as Signals of Quality?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 111-123, June.
    41. Brian R Chabowski & Saeed Samiee & G Tomas M Hult, 2013. "A bibliometric analysis of the global branding literature and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(6), pages 622-634, August.
    42. Alain Verbeke & Régis Coeurderoy & Tanja Matt, 2018. "The future of international business research on corporate globalization that never was…," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1101-1112, December.
    43. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
    44. Mark Cleveland & Fabian Bartsch, 2019. "Epilogue on global consumer culture: epistemology and ontology," Post-Print hal-02988179, HAL.
    45. Davvetas, Vasileios & Sichtmann, Christina & Diamantopoulos, Adamantios, 2015. "The impact of perceived brand globalness on consumers' willingness to pay," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 431-434.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angelo M. Solarino & Peter J. Buckley, 2023. "Equivalence in international business research: A three-step approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 550-567, April.
    2. Peter Mathias Fischer & Katharina Petra Zeugner-Roth & Constantine S. Katsikeas & Mario Pandelaere, 2022. "Pride and prejudice: Unraveling and mitigating domestic country bias," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 405-433, April.
    3. Bruno F. Abrantes & Rana Basit Ali, 2023. "Perception of brand globalness and localness: the role of brand competence in stereotype-building and value consciousness," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 722-737, December.
    4. Jacobs, Nele & Swoboda, Bernhard, 2023. "The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness," International Business Review, Elsevier, vol. 32(5).
    5. Maroufkhani, Parisa & Asadi, Shahla & Ghobakhloo, Morteza & Jannesari, Milad T. & Ismail, Wan Khairuzaman Wan, 2022. "How do interactive voice assistants build brands' loyalty?," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timo Mandler & Fabian Bartsch & C. Min Han, 0. "Brand credibility and marketplace globalization: The role of perceived brand globalness and localness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-32.
    2. Sichtmann, Christina & Davvetas, Vasileios & Diamantopoulos, Adamantios, 2019. "The relational value of perceived brand globalness and localness," Journal of Business Research, Elsevier, vol. 104(C), pages 597-613.
    3. Bourdin, David & Halkias, Georgios & Makri, Katerina, 2021. "The compensatory influences of country stereotypes and the global/local nature of brands: An extended framework," Journal of Business Research, Elsevier, vol. 137(C), pages 28-38.
    4. Peter Mathias Fischer & Katharina Petra Zeugner-Roth & Constantine S. Katsikeas & Mario Pandelaere, 2022. "Pride and prejudice: Unraveling and mitigating domestic country bias," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 405-433, April.
    5. Bernhard Swoboda & Carolina Sinning, 2021. "Endorsement of Global Product Brands by Global Corporate Brands – A Consumer Perspective Across Nations," Management International Review, Springer, vol. 61(4), pages 563-598, August.
    6. Kolbl, Živa & Diamantopoulos, Adamantios & Arslanagic-Kalajdzic, Maja & Zabkar, Vesna, 2020. "Do brand warmth and brand competence add value to consumers? A stereotyping perspective," Journal of Business Research, Elsevier, vol. 118(C), pages 346-362.
    7. Makri, Katerina & Papadas, Karolos & Schlegelmilch, Bodo B., 2021. "Global social networking sites and global identity: A three-country study," Journal of Business Research, Elsevier, vol. 130(C), pages 482-492.
    8. Martin Heinberg & H. Erkan Ozkaya & Markus Taube, 2016. "A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?," Journal of the Academy of Marketing Science, Springer, vol. 44(5), pages 586-607, September.
    9. Bartsch, Fabian & Diamantopoulos, Adamantios & Paparoidamis, Nicholas G. & Chumpitaz, Ruben, 2016. "Global brand ownership: The mediating roles of consumer attitudes and brand identification," Journal of Business Research, Elsevier, vol. 69(9), pages 3629-3635.
    10. Akram, Muhammad S. & Malhotra, Neeru & Goraya, M. Awais Shakir & Shareef, Mahmud A. & Malik, Aneela & Lal, Banita, 2022. "User engagement on global social networks: Examining the roles of perceived brand globalness, identification and global identity," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    11. Saeed Samiee & Brian R. Chabowski, 2021. "Knowledge structure in product- and brand origin–related research," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 947-968, September.
    12. Kolbl, Živa & Arslanagic-Kalajdzic, Maja & Diamantopoulos, Adamantios, 2019. "Stereotyping global brands: Is warmth more important than competence?," Journal of Business Research, Elsevier, vol. 104(C), pages 614-621.
    13. Jin, Zhongqi & Lynch, Richard & Attia, Samaa & Chansarkar, Bal & Gülsoy, Tanses & Lapoule, Paul & Liu, Xueyuan & Newburry, William & Nooraini, Mohamad Sheriff & Parente, Ronaldo & Purani, Keyoor & Ung, 2015. "The relationship between consumer ethnocentrism, cosmopolitanism and product country image among younger generation consumers: The moderating role of country development status," International Business Review, Elsevier, vol. 24(3), pages 380-393.
    14. Leonidas Hatzithomas & Christina Boutsouki & Fotini Theodorakioglou & Evanthia Papadopoulou, 2021. "The Link between Sustainable Destination Image, Brand Globalness and Consumers’ Purchase Intention: A Moderated Mediation Model," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    15. Cleveland, Mark & Bartikowski, Boris, 2023. "Cross-national consistency of place-related identity dispositions as antecedents of global brand advocacy among ethnic Chinese at home and abroad," Journal of Business Research, Elsevier, vol. 155(PB).
    16. Baldauf, Artur & Cravens, Karen S. & Diamantopoulos, Adamantios & Zeugner-Roth, Katharina Petra, 2009. "The Impact of Product-Country Image and Marketing Efforts on Retailer-Perceived Brand Equity: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 85(4), pages 437-452.
    17. Strizhakova, Yuliya & Coulter, Robin A., 2013. "The “green” side of materialism in emerging BRIC and developed markets: The moderating role of global cultural identity," International Journal of Research in Marketing, Elsevier, vol. 30(1), pages 69-82.
    18. Mandler, Timo & Won, Sungbin & Kim, Kyungae, 2017. "Consumers' cognitive and affective responses to brand origin misclassifications: Does confidence in brand origin identification matter?," Journal of Business Research, Elsevier, vol. 80(C), pages 197-209.
    19. Subhadip Roy & Abhijit Guha & Abhijit Biswas & Dhruv Grewal, 2019. "Celebrity endorsements in emerging markets: Align endorsers with brands or with consumers?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(3), pages 295-317, April.
    20. Fazli-Salehi, Reza & Torres, Ivonne M. & Madadi, Rozbeh & Zúñiga, Miguel Ángel, 2021. "Multicultural advertising: The impact of consumers’ self-concept clarity and materialism on self-brand connection and communal-brand connection," Journal of Business Research, Elsevier, vol. 137(C), pages 46-57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:52:y:2021:i:8:d:10.1057_s41267-020-00312-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.