Abstract
Most consumer-based brand equity (CBBE) models are linear and fail to capture the complexity of the brand equity construct and its benefits in terms of key consumer behavioral outcomes. More complex and dynamic models focusing on CBBE as a process often lack empirical support particularly from more than one country. This study builds on and extends previous research by empirically examining the configural nature of the CBBE building process cross-nationally, and by investigating differences vis-a-vis key consumer behavioral outcomes (namely, willingness to pay a price premium, brand recommendation and repurchase intention). These differences are postulated and explained through culture theory particularly the cultural dimension of individualism/collectivism. Using fuzzy-set/Qualitative Comparative Analysis (fs/QCA), survey data from Greece and Germany support the robustness of the extended CBBE model. The model shows that overall brand equity and consumer behavioral outcomes are created through the brand building, brand understanding, and brand relationship blocks, and identifies core causes and common patterns across countries providing a useful diagnostic tool for international brand management.
Highlights
Building strong brands and understanding their effect on consumer behavior is one of the most challenging tasks facing firms in today’s dynamic international environment (Talay, Townsend, & Yeniyurt, 2015)
The lack of consensus regarding the conceptualization and operationalization of consumer-based brand equity (CBBE) and its effect on consumer behavioral outcomes has left many questions unanswered as to how strong brands can be built and managed, especially in different national contexts (Hsieh, 2004). This issue highlights the need to move beyond the examination of CBBE measures or different aspects of it to a more holistic, advanced, and actionable CBBE model that (a) can be successfully operationalized in different countries and (b) is versatile enough in design to enable the examination of the idiosyncrasies of brands and industries in different national contexts (Keller, 2001)
Several researchers highlight that consumers in individualistic cultures need a consistency among their brand perceptions, feelings and behaviors (De Mooij & Hofstede, 2011), which is in line with their more analytic way of thinking (Nisbett et al, 2001)
Summary
Building strong brands and understanding their effect on consumer behavior is one of the most challenging tasks facing firms in today’s dynamic international environment (Talay, Townsend, & Yeniyurt, 2015). The study aims to make four theoretical and managerial contributions to the international branding literature It responds to calls for research on the development and testing of holistic, advanced tools to successfully build and manage brands globally (e.g., Ford et al, 2011) by providing a fine-grained assessment of the CBBE formation process and some of its key outcomes across countries (Broyles et al, 2010; Zhang et al, 2014). The study delineates the diagnostic capabilities to monitor and manage international brands by helping businesses identify core causes and common patterns among different countries while unfolding the idiosyncrasies in each country It demonstrates the potential applicability of the model in explaining, in branding terms, key consumer behavioral outcomes. It discusses the findings together with the theoretical and managerial implications of the research
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