Asymmetric effects of brand origin confusion : evidence from the emerging market of China

Guijun ZHUANG, Xuehua WANG, Lianxi ZHOU, Nan ZHOU

Research output: Journal PublicationsJournal Article (refereed)

56 Citations (Scopus)

Abstract

Purpose - The purpose of this study investigates the asymmetric effects of brand origin confusion (BOC) on consumer preference and the purchase of local versus foreign brands in China. Drawing on the general country-of-origin (COO) literature and recent developments in brand-origin studies and the emerging market phenomenon globally, it proposes and test a model of the asymmetric effects of BOC on consumer preference and the purchase of local versus foreign brands in China. This study intends to help to explain from a new angle the decreasing competitiveness of foreign brands in emerging markets, such as China. Design/methodology/approach - The study pretest on nationally distributed brands across seven product categories resulted in a final set of 67 brands: 35 foreign and 32 local. Four hundred respondents evaluated measures related to brand origin, brand awareness, brand value, brand preference, and brand purchases in the previous six months. Hierarchical regression analysis was used in data analysis. Findings - The hypotheses on the asymmetric effects of BOC between local and foreign brands in China were mostly supported. Specifically, the results showed that local brands are likely to be in an advantageous position when there is a high level of BOC. However, as the brand knowledge of consumers increases, the effects of BOC decrease. Originality/value - This study provides evidence of the asymmetric effects of BOC between local and foreign brands and the moderating role of brand knowledge for local brands in China. It fills a gap in the international branding and marketing communication literature, and offers meaningful managerial insights for both local and international companies to formulate effective branding and marketing communication strategies in China and possibly in other emerging markets.
Original languageEnglish
Pages (from-to)441-457
Number of pages17
JournalInternational Marketing Review
Volume25
Issue number4
DOIs
Publication statusPublished - 1 Jan 2008

Keywords

  • Brand awareness
  • Brand identity
  • Brand loyalty
  • China
  • Country of origin

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