The Effectiveness of Global and Local Brand Positioning Amongst Glocal Brands

Abstract

The purpose of this study is to explore the effectiveness of brand communication for brands that embody both global and local dimensions in the minds of local consumers. Against the backdrop of international branding literature, the phenomena of globalisation, and a rising inclination towards localism, glocal brands face a complex decision-making landscape regarding strategic communication and positioning to its local consumers. This research a) assesses the effectiveness of brand communication for glocal brands by contrasting advertising strategies rooted in local and global consumer culture positioning and b) delves into the mechanisms through which consumers’ responses to these positioning strategies are moderated and mediated by the factors brand heritage and ethnocentrism. Applying a 3 (glocal brands) X 2 (global vs. local ad type) full-factorial, between-subjects experiment with a sample of 176 respondents, the study reveals that neither the local or global consumer culture ads initially lead to more favourable brand attitudes or an increased willingness to reward the brands.
However, the findings suggest that the optimal consumer culture positioning strategy is more nuanced than previously anticipated, dependent on both the statistical methods applied and the specific consumer demographics targeted. Additionally, moderated-mediation analysis indicates that brand heritage and ethnocentrism do not enhance the relationship between pre-ad and post-ad brand attitudes or willingness to reward. Instead, these factors appear to dampen consumer attitudes towards the brand when exposed to local consumer culture positioning ads. Notably, significant effects emerge when focusing solely on participants who perceive the ads as highly credible: both brand heritage and ethnocentrism positively mediate post-ad brand attitudes for both types of ads and enhance participants’ willingness to reward the brand, particularly in response to the local ad. Moreover, the study suggests that instead of adhering strictly to either a global or local consumer culture positioning strategy, glocal brands may benefit from integrating both approaches to optimally engage their audience. This research enriches the international branding literature by providing insights that are particularly relevant for global brands aiming to resonate with local consumers from their country of origin. Theoretical and managerial implications of the findings are discussed, and future research directions identified.