Global and Local Brands: Distinguishing Perceptions From Origin

Purpose: This study aims to (1) disentangle the relationship between brand origin (global vs. local) and brand perceptions (perceived brand globalness, PBG vs. local iconness, LI), and (2) investigate how consumer ethnocentrism moderates these model pathways.
Design/methodology/approach: We utilize a multi-method approach in two complementary studies, a survey (N=253) and an experiment (N=148).
Findings: We find that brand origin (global vs. local) and perceptions (PBG vs. LI) are distinct constructs that need to be accounted for separately in brand evaluation models. We show that the routes to purchase intentions (PIs) differ across global and local origin brands. PBG has a positive relationship with perceived brand quality and prestige but only for global origin brands. In contrast, for local origin brands, LI plays a crucial role via positive relationships to perceived brand quality and prestige. Consumers prefer brands to stay true to their brand origin. Ethnocentrism dampens both the PBG-PI and LI-PI relations only for global origin brands. Neither PBG nor LI seems to trigger PIs for ethnocentric consumers for global origin brands.
Originality/value: We show that the routes to PIs differ across global and local origin brands. Brand managers should stay true to the origins of their brands (global/local) in building their brands’ globalness/localness perceptions since consumers prefer a fit between origin and perceptions.