Role of brand globalness in consumer evaluation of new product branding strategy

Abstract

Despite the rising importance of globalisation in the marketing field, researchers have given little attention to how it might affect brand name preference for a new product. This article examines the impact of brand globalness (global versus local brand) on consumer evaluation of new product branding strategies (new brand versus extended brand). Using an experimental approach, two analyses are performed for both functional and prestige products in the Indian context. The results show that consumers have a favourable attitude and purchase intention for global brands with extended brand name. For local brands, new brand names and extended brand names are preferred if the product categories are functional and prestige, respectively. The research further reveals that product category does not have a significant effect on consumer evaluation of branding strategy for global brand. The research not only contributes to the extant literature, but also provides managerial implications by emphasising that marketers must consider brand globalness and product category before selecting brand name for the new product.