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How perceived brand globalness creates brand value

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Abstract

In today's multinational marketplace, it is increasingly important to understand why some consumers prefer global brands to local brands. We delineate three pathways through which perceived brand globalness (PBG) influences the likelihood of brand purchase. Using consumer data from the U.S.A. and Korea, we find that PBG is positively related to both perceived brand quality and prestige and, through them, to purchase likelihood. The effect through perceived quality is strongest. PBG effects are weaker for more ethnocentric consumers.

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Acknowledgements

The authors gratefully acknowledge data collection assistance from Chol Lee, and the insightful comments made by the editor, the reviewers, Wayne Hoyer, the MSI Conference on Global Branding, and the Georgetown University Workshop on Global Brands.

Author information

Authors and Affiliations

  1. Tilburg University, The Netherlands

    Jan-Benedict E M Steenkamp

  2. University of Michigan Business School, Ann Arbor, USA

    Rajeev Batra

  3. University of Hawaii at Honolulu,

    Dana L Alden

Authors
  1. Jan-Benedict E M Steenkamp
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  2. Rajeev Batra
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  3. Dana L Alden
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Corresponding author

Correspondence to Jan-Benedict E M Steenkamp.

Additional information

Accepted by Tom Brewer, outgoing Editor, 3 March 2002. This paper has been with the author for one revision.

Appendix

Appendix

Perceived brand globalness

α U.S.A.=0.799, α Korea=0.785 (new scale, building on Batra et al., 2000)

  • To me, this is a global brand/To me, this is a local brand

  • I don't think consumers overseas buy this brand/I do think consumers overseas buy this brand

  • This brand is sold only in (America/Korea)/This brand is sold all over the world

Perceived brand quality

α U.S.A.=0.831, α Korea=0.779 (Keller and Aaker, 1992)

  • This brand is very low on overall quality/This brand is very high on overall quality

  • This is a brand of inferior quality/This is a brand of superior quality

Perceived brand prestige

(Han and Terpstra, 1988)

  • This is a very prestigious brand/This is not a very prestigious brand

Brand as icon of local culture

α U.S.A.=0.797, α Korea=0.856 (new scale)

  • I associate this brand with things that are (American/Korean)/I do not associate this brand with things that are (American/Korean)

  • To me, this brand represents what (America/Korea) is all about/To me, this brand does not represent what (America/Korea) is all about

  • To me, this brand is a very good symbol of America/To me, this brand is not a very good symbol of America

Brand familiarity

α U.S.A.=0.706, α Korea=0.815 (new scale, building on Oliver and Bearden, 1985)

  • This brand is very familiar to me/This brand is very unfamiliar to me

  • Everybody here has heard of this brand/Almost nobody here has heard of this brand

  • I'm not at all knowledgeable about this brand/I'm very knowledgeable about this brand

  • I have never seen advertisements for it in (American/Korean) magazines, radio, or TV/I have seen many advertisements for it in (American/Korean) magazines, radio, or TV

Country-of origin perceptions

(In the U.S.A., these items were asked for American, Japanese, and German companies; in Korea for American, Japanese, and Korean companies.)

α U.S.A.=0.873, α Korea=0.843 (Hunter and Nebenzahl, 1984) Products made by (country of origin) companies are in general:

  • Poor in overall quality/Excellent in overall quality

  • Poor in design/styling/Excellent in design/styling

  • Poor in level of technology/Excellent in level of technology

  • Poor in value-for-money/Excellent in value-for-money

Consumer ethnocentrism

α U.S.A.=0.871, α Korea=0.871 (Shimp and Sharma, 1987)

  • Purchasing foreign-made products is un-(American/Korean)

  • (Americans/Koreans) should not buy foreign products because this hurts (American/Korean) business and causes unemployment.

  • A real (American/Korean) should always buy (American/Korean)-made products.

  • It is not right to purchase foreign products.

Likelihood of purchasing the brand

α U.S.A.=0.878, α Korea=0.798 (Dodds et al., 1991).

  • I would not buy it (assuming it was available)/I would certainly buy it (assuming it was available)

  • I'm not at all likely to buy it (if available)/I'm very likely to buy it (if available)

Brand-related and country-of-origin image items were scored on seven-point bipolar scales with the endpoles given above. The CET items were scored on seven-point scales with strongly disagree (=1) and strongly agree (=7) as anchors.

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E M Steenkamp, JB., Batra, R. & Alden, D. How perceived brand globalness creates brand value. J Int Bus Stud 34, 53–65 (2003). https://doi.org/10.1057/palgrave.jibs.8400002

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