Effect of perceived brand foreignness on branding strategy evaluation for high and low involvement products

Abstract

The research addresses the growing dilemma surrounding the role of perceived brand foreignness (PBF) in consumer evaluation of branding strategies in India. Building on recent research evidence, the research investigates the impact of global and local brands on Indian consumers’ evaluation of new versus extended brand name strategy for high and low involvement products. Using multivariate analysis of variance, the research provides evidence showing that product involvement moderates the effect of PBF in predicting consumer branding strategy evaluation. The moderating effect is seen to be more evident in case of local brands in India. Global brands introducing new products are preferred with brand extensions. Whereas, local brands are favoured with new brand names and brand extensions for low and high involvement products respectively. Managerial implications for choice of right branding strategy in the emerging markets are discussed.