Perceived brand globalness in emerging markets and the moderating role of consumer ethnocentrism

Abstract

PurposeThe purpose of the paper is to study the impact of perceived brand globalness (PBG) on consumers' purchase intention (PI) and the mediating role of perceived brand quality (PBQ) and perceived brand prestige (PBP) in this relation, among consumers in emergent markets. The paper also investigate the moderating role of consumer ethnocentrism (CE) on the relation between PBG and both PBQ and PBP.Design/methodology/approachA web‐based survey was conducted in an emerging market (Pakistan) using both global and local brands. The model was tested using structural equation modeling.FindingsPBG positively impacts both PBQ and PBP while PBQ appears to be a stronger mediator than PBP. The moderating role of CE between PBG and PBQ and between PBG and PBP has been demonstrated; the weaker the CE the stronger the relationships.Research limitations/implicationsA convenience sample was used and caution must be taken when generalizing findings from this study. Managers of global brands must meet consumers' expectations in terms of the quality of their brands and may highlight the prestige associated to them. Low ethnocentric consumers favor global brands, rendering this segment attractive for the managers of global brands.Originality/valueThe paper extends previous work on the role of brand globalness by focusing on an emergent market where the choice problem between local and global brands is acute and by demonstrating the moderating role of CE.