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.
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