The Effects of Perceived Brand Globalness and Perceived Brand Localness in China: Empirical Evidence on Western, Asian, and Domestic Retailers

Abstract

Internationalizing retailers have shifted their attention to developing countries in which they pursue different forms of adapted-format transfer strategies to succeed locally. However, little is known about whether such retailers can use their core advantage of a global retail brand and how consumer perceptions of such global retail brands drive retail patronage. To expand knowledge on this issue, the authors use data from 1188 Chinese consumer surveys on 36 Western, Asian, and mainland Chinese retailers. They find that retailers’ perceived brand globalness and perceived brand localness enhance retail patronage only by affecting consumers’ functional and psychological values. These value creation routes to success change according to retailers’ origins. Although Western and Asian retailers draw equally strong benefits from their global perceptions, Asian retailers convince consumers predominantly through functional values, whereas Western retailers also influence consumers emotionally. Chinese retailers gain consumers by being perceived as “glocal” brands. Furthermore, perceived brand globalness enhances retail patronage most strongly for global identity consumers. Thus, retailers in emerging countries benefit from perceived brand globalness depending on retailer- and consumer-specific boundary conditions.