Brand name and ethnicity of endorser in luxury goods: does a glocalization strategy work in China?

Abstract

This study focuses on the effectiveness of a glocalization strategy in China to investigate the ways in which language and ethnicity affect the consumer’s perceptions of a brand’s luxuriousness and consequently their intention to purchase. The findings of the study suggest that although a foreign brand name (i.e., one that is written in the Roman alphabet) is more effective than a Chinese brand name, the effects of bilingual brand naming (both foreign and Chinese brand names) are somewhat complicated. The findings show that in terms of the perception of a brand’s luxuriousness, bilingual brand naming is as ineffective as a Chinese brand name is. Regarding purchase intention, however, the effect of bilingual brand naming is as effective as a foreign brand name is. The findings further demonstrate the interaction effect of brand naming strategy and the ethnicity of the endorser. The results reveal that bilingual brand naming generates a weaker perception of a brand’s luxuriousness than a foreign brand name does when the endorser is a Western celebrity rather than a Chinese celebrity. Finally, the findings also indicate the moderated mediation of the perceptions of a brand’s luxuriousness.