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Originality/value The present research contributes to the knowledge of consumer behavior in front of global and local brands in emerging markets. It takes into consideration both typologies of products, as well as four different brands in two distinct product categories. Our results suggest that the brand as a signaling value has an important effect on the purchase likelihood of global but also on local brands. Our research is focused on a market that has particularities of the European and Asian cultures, Turkey, so the results obtained are interesting for analyzing consumer behavior of local and global brands in such a hybrid cultural context.
Key wordsLocal brand, global brand, brand purchase likelihood, emerging markets
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Ural, T., Küçükaslan, A. (2011). The examination of the antecedents of consumer attitude toward global brands from perspective of Turkish culture. Innovative Marketing, Volume 7, Issue 1 Zhou, L., Yang, Z., Hui, M.K. (2007) Non-local or local brands? A multi-level investigation into confidence in brand origin identification and its strategic implications. Journal of Academic Marketing, 38, p202-218 Factors for success for domestic clothing brands in emerging markets Llonch, John López Lomelí, Miguel Angel Gómez Villanueva, Jorge Eduardo Motyka, Scott Purpose of the paper Emerging markets (EMs) represent an important business opportunity as they contain about 85% of the world’s population, and account for almost 75% of global GDP growth, Fidelity (2013). Emerging markets also skew to younger aged groups Emerging markets also skew to younger aged groups 53.1% of people are under 30 years of age in emerging markets whereas this segment represents only 35.6% of the population in developed economies, Euromonitor (February, 2012). Global brands have recognized these markets as important opportunities and are aggressively expanding into these regions, Kim and Heere (2012) which means emerging brands in these markets face increasingly strong competition, Holt et al. (2004).
Some local brands have successfully faced the challenge of increased competition from international brands, whereas others have not (Batra et al., 2000, Özsomer, 2012). Further complicating matters for emerging brands, international firms bring to bear competitive advantages of high-quality, standardized products at lower prices and international recognition (Elinder, 1961, Elinder, 1965, Sorenson and Wiechmann, 1975, Quelch and Hoff, 1986, Levitt, 1983, Alden et al., 1999).
Emerging brands need to successfully be competitive against the global brands strategies in Emerging Markets, this study aims to extend previous research by identifying specific factors that emerging brands can use to succeed against international brands competition. The literature evidences that local brands have not been given much attention by academics and practitioners, Schuiling and Kapferer (2004). First, this research contributes to the local branding literature stream by proposing and finding support for factors that positively influence the domestic brands purchase likelihood in emerging markets. Second, our findings provide basis that might be used by managers to develop effective domestic brand marketing strategies.
The reported study analyzes several key factors that may influence the success of domestic brands among consumers in emerging markets. Therefore the objectives of this research are
1. -To identify some relevant factors that are related with domestic clothing brands purchase likelihood.
2. –To provide local managers of domestic clothing brands, by suggesting factors that might be used by to develop effective marketing strategies for domestic brands in emerging markets.
Domestic Brands’ Marketing Strategies The central objective of the domestic brands marketing strategy (DMS), it is to succeed against their competition. This is not a simple task as domestic brands must compete in a complex competitive landscape of both local and global competitors, Özsomer (2012). Global and local brands have advantages, Kapferer (2002), the complexity of this competitive scenario for local domestic brands comes from the fact that they compete against global brands, other local brands and with local brands of international firms.
As a result one of the most relevant questions for local brand managers is to identify the key factors that enable local brands marketing strategies to succeed in this complex competitive scenario.
Drawing relevant literature on brand management, signaling theory and country of origin, the Hypotheses of this research argue that the brand attitude (H1), the brand image (H2), the brand as social signaling value (H3), the susceptibility to normative influence (H4) and the bias in favor of local brands (H5) are positively related with the brand purchase likelihood.
Methodology Leading Mexican domestic clothing local brands were selected: Andrea, Zapatos Flexi, Atletica, and Squalo.
Measures: Measures for this study were drawn from previous items / measures used in the literature. The dependent variable is “brand purchase likelihood”, five independent variables were analyzed: “brand attitude”, “brand Image”, “brand as social signaling value”, “susceptibility to normative influence” and “bias in favor of local brands” (or consumer ethnocentrism). Multiple items were used to measure each of the factors with a 7-point Likert scale (from 1 = ‘strongly disagree’ to 7 = ‘strongly agree’) aligned with previous research on this field, Steenkamp et al. (2003).
Two statistical techniques were used, factor analysis and structural equation modeling (SEM). A factor analysis (FA) for the multiple items variables was conducted along with key statistical Cronbach's alpha tests to test the validity of the factors.
Findings The results from the factor analysis and the Cronbach's alpha tests, shown in Table 1, comply with the established parameters for the reliability of the model.
To test the hypotheses, a SEM analysis using the AMOS 21 software was conducted to validate the relationship among brand purchase likelihood and brand attitude, brand image, brand as a social signaling value, the susceptibility to normative influence and the bias in favor of local brands.
Test of hypotheses Results of the SEM analysis, shown in table 3, suggest that all five factors Brand Attitude (BA), Brand Image (BI), Bias in favor of local Brands (BFLB), Susceptibility to Normative Influence (NIS) and Brand as Social Signaling Value (BSSV), are positively related with the Local Brand Purchase Likelihood (LBPL) given that all factors were statistically significant.
Suggesting that, for H1: a positive Brand Attitude, Aaker (1990) will positively influence consumers LBPL given its strong cultural connections with domestic brands (Zambuni, 1993, Samli, 1995); for H2: a positive Brand Image will positively impact LBPL (Dodds et al., 1991, Batra et al., 2000, Eze et al., 2012, Wang and Tsai, 2014); for H3: that consumers who find the significance of the domestic brands, might purchase them to enhance their social classification or affiliation in desired social circles, Wallin (2006); for H4: that consumers of domestic brands also might buy them when looking for approval or status in front of others (Burnkrant and Cousineau, 1975, Batra et al., 2000) and for H5: developing markets consumers might purchase them attracted by the distinctiveness of the brands from their own country (Ger, 1999, Steenkamp et al., 2003, Zhou et al., 2010).
Table 4 shows the Goodness of fit Indicators for the Tested Model which indicate a wellfitting model, Hooper et al. (2008), the resulting model is presented in Figure 1
Figure 1 Proposed model from Structural Equation Modeling.
Theoretical implications This study contributes to the knowledge of consumer preference for domestic brands in Developing Markets (DMs); this work contributes to the literature providing with additional profound research of the specific factors that increase the purchase likelihood of local / domestic brands: brand attitude, brand image, brand as social signaling value, susceptibility to normative influence and bias in favor of local brands. This contributes also to understand how domestic brands may use these factors to build strategies to succeed in a complex competition in these markets.
Practical implications Local brand managers can build marketing strategies based on these factors that enhance the local brand purchase likelihood with local consumers in emerging markets. They can use these factors in their marketing strategies: to counteract the customization-adaptation efforts of foreign brands into local markets, Schmid and Kotulla (2011); to better target local consumers using their distinctiveness of being local aiming to build a stronger brand attitude effect (Ger, 1999, Zambuni, 1993, Steenkamp et al., 2003, Swoboda et al., 2012) and a perception of higher value equation through unique sources of equity (Aaker and Keller, 1990, Lane and Jacobson, 1995, Kapferer, 2002); to build a stronger brand Image effect (Park et al., 1986, Dodds et al., 1991) and a stronger diferentiation via strong signals to local consumers (Dawar, 1998, Karasek III and Bryant, 2012) and through position domestic brands enhacing the benefits of the status provided to local consumers on self-image and approval from their reference groups, Bearden and Etzel (1982). For domestic brands going global, a communication effort to local consumers of being in foreign countries is suggested Özsomer (2012), and to enhance the brand personality and its ties to the brand´s cultural background in the foreign markets by positioning these brands as “cultural brands” Guzmán and Paswan (2009).
Limitations One of the limitations of this work is that it was only conducted in Mexico; a wider study among other emerging markets in Latin America or worldwide is suggested to validate generalization of the results, Steenkamp et al. (2003). This study only included four brands in different consumer product categories, a wider study including a larger number of brands and product categories is also suggested, Özsomer (2012).
Originality/value This works contributes to the Local Brand understanding, in this paper we demonstrate that brands that successfully meet the challenge of increased international competition can attribute their success to five factors: brand attitude, brand image, the social signaling value of the brand, bias in favor of local brands and normative influences.
Confirming the strategic role of the Local Brands for both local and International firms in developing markets, Schuiling and Kapferer (2004).
Keywords Local/Domestic Brands, Purchase Likelihood, Developing Markets, Consumers’ purchase, Brand competitiveness.
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