Does Brand Name Matter in Alleviating Ethnocentrism? The Interplay of Brand Origin and Brand Name in Radically New Product Evaluation

Abstract

Using categorization theory, this study develops four research questions: (1) does brand name affect new product evaluation? (2) does brand origin interact with the brand name in radically new product evaluation in four different country examples (U.S., Mexico, Germany, and Bulgaria)? (3) what is the underlying mechanism of the brand origin effect on new product evaluation? and (4) does individual difference matter in the perceived value of the products? The results demonstrate that when the brand origin is U.S., the U.S. brand name leads to a higher perceived value of the brand than the Mexican brand. If the brand origin is Mexico, the brand name effect is attenuated. In Germany and Bulgaria condition, when the brand origin is Bulgaria, a German brand name is better evaluated than a Bulgarian brand name. But the brand name effect is mitigated in Germany condition.