Consumers’ Response to an Advertisement Using Brand Popularity in a Foreign Market

Abstract

Abstract: This research examined how domestic consumers respond to an advertisement using brand popularity in a foreign market. By using structural equation modeling, it shows that the consumers’ response can change as a function of three characteristics of brand popularity in a foreign market: (a) expertise of foreign consumers, (b) similarity between domestic consumers and foreign consumers, and (c) animosity to a foreign country. Meanwhile, the similarity effect is found to be stronger for high-preference heterogeneity than low-preference heterogeneity. This research documents the importance of understanding the underlying mechanism to determine the effects of brand popularity in a foreign market on brand attitude and purchase intention.