Determinants of choosing a foreign brand in emerging economy: lessons and implication for the local entrepreneurs

Md Abdul Momen,Farhana Ferdousi,Seyama Sultana,Shamsul Huq Bin Shahriar

doi:10.1108/xjm-01-2021-0027

Md Abdul Momen, Farhana Ferdousi + Show 2 more

Open Access

https://doi.org/10.1108/xjm-01-2021-0027

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Abstract

Purpose It is evident that the local small and medium enterprises of Bangladesh suffered in the competition because of the strong presence of foreign brands in the market. The purpose of this study is to figure out the factors influencing consumers to purchase a foreign brand predominantly among young consumers. Design/methodology/approach It is a quantitative study considering 257 young demographics as respondents. They are drawn randomly. Confirmatory factor analysis, regression analysis and a path model of structural equation model using AMOS graphics software are used in this study to analyze the data. Findings This study finds two out of three identified variables are influencing the foreign product purchase for the young Bangladeshi consumers. Brand value and product features of the given foreign product are the most dominant factors behind this adoption. However, a significant relationship between product quality and brand choice is not evident in this study. Research limitations/implications It will give a clue to the small or medium startup of the country that normally target the young customer but face challenges to understand their mind and sometimes lagging because of the strong presence of the international brands. Originality/value A comprehensive review of the literature suggests that not so many studies took place that determines the respective factors behind the purchase of foreign brands particularly among young demographics of a lower middle income developing nation.

Highlights

In this competitive global marketplace, brands play a critical role in consumers’ decisionmaking process and provide a differential advantage to marketers
Objective of the study This study aims to identify the key determinants of choosing foreign consumer brands from the perspective of Bangladeshi consumers
In a study Kashi (2013) surveyed 850 customers to explore the consumer purchase behavior of buying foreign brands in comparison to local brands; the findings showed that consumers’ need for uniqueness, perceived quality and emotional value directly influence the customers’ purchasing intention

Summary

Introduction

In this competitive global marketplace, brands play a critical role in consumers’ decisionmaking process and provide a differential advantage to marketers. As consumers’ brand awareness facilitates their decision-making (Macdonald and Sharp, 2000). Foreign brands are trying to be more customer-focused and responsive and, in this process, the internet has become their major tool in the global market place. Even in a lower middle income- developing country (will officially graduate by 2026) such as Bangladesh, consumers are virtually connected with the local and foreign brands and know literally everything about the products and offers through the internet, websites and Social Networking Sites (Momen et al, 2020). Because of the high availability of international brands and products, consumers’ ability to select foreign has increased in the developing countries (Kashi, 2013).

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Conclusion