Consumer‐based brand equity and status‐seeking motivation for a global versus local brand

Abstract

PurposeThe purpose of this research is to explore how a successful global and a local brand may compete side by side in an existing market place based on consumer‐based brand equity and consumers' status‐seeking motivation for purchasing a global versus local brand.Design/methodology/approachThe data for this research were collected through a self‐administered survey from students in a large Western Australian university.FindingsThe results show that a global brand is generally preferred in terms of all the dimensions of consumer‐based brand equity over a local brand. However, a significant interaction emerged between the type of brand and high versus low status‐seeking motivation consumers. A global brand is strongly favoured in terms of awareness, perceived quality and overall brand equity by high status seekers while a local brand seems to enjoy loyalty and overall brand equity among low status seekers. A global brand is also clearly preferred over a local brand along all dimensions of consumer‐based brand equity amongst high status‐seeking consumers. Further, a local brand is clearly preferred in terms of consumer‐based brand equity over the global brand by Australians whereas the global brand remains a clear favourite with non‐Australians.Research limitations/implicationsFindings may not generalize beyond Australian sample and the product category.Originality/valueThis empirical research explores how global and local brands may compete with each other based on their strengths. This research also addresses a theoretical gap identified by Yoo and Donthu.