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The halo effect of foreign brands on the misclassification of local brands

Author

Listed:
  • Sulhaini Sulhaini

    (Department of Management, The University of Mataram, Lombok-Indonesia)

  • Rinuastuti Baiq Handayani

    (Department of Management, The University of Mataram, Lombok-Indonesia)

  • Sakti Dwi Putra Buana

    (Department of Management, The University of Mataram, Lombok-Indonesia)

Abstract

Consumers generally lack the ability to identify brands’ true origins, with their attribution of the wrong origins to well-known brands showing their underlying attitudes. This study suggests that the misclassification of local brands in Indonesia is driven by the halo effect of foreign brands (i.e., brands from Japan, South Korea and China) and the inferior image of locally made products. These constructs, however, differently affect Indonesian consumers’ attitudes towards local brands. This study strongly suggests that, when consumers misperceive local brands as being from more developed countries, they tend to show negative attitudes towards local brands. This study provides useful recommendations for both local and foreign brand owners seeking strategies to enhance competitiveness in the Indonesian market.

Suggested Citation

  • Sulhaini Sulhaini & Rinuastuti Baiq Handayani & Sakti Dwi Putra Buana, 2019. "The halo effect of foreign brands on the misclassification of local brands," Management & Marketing, Sciendo, vol. 14(4), pages 357-371, December.
    • Handle: RePEc:vrs:manmar:v:14:y:2019:i:4:p:357-371:n:1
    DOI: 10.2478/mmcks-2019-0025
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    References listed on IDEAS

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    1. Sääksjärvi, Maria & Samiee, Saeed, 2011. "Relationships among Brand Identity, Brand Image and Brand Preference: Differences between Cyber and Extension Retail Brands over Time," Journal of Interactive Marketing, Elsevier, vol. 25(3), pages 169-177.
    2. Sulhaini & Rusdan & Rahman Dayani & Sulaimiah & Baiq Ismiwati, 2019. "Local brand origin knowledge of young consumers in a developing country," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 11(1), pages 72-90.
    3. 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.
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