The role of localization strategy in development of brand equity: A case study of Samsumg firm

Marzieh Babayi,Zeinolabedin Rahmani

doi:10.5267/j.msl.2015.3.010

Abstract

Article history: Received January 20, 2015 Received in revised format 6 February 2015 Accepted 15 March 2015 Available online March 15 2015 In this paper an attempt is made to analyze the components of localization strategy including attribute policy, benefits policy, application/implementation policy, consumer policy, competition policy, quality/price policy and product category policy on development of brand equity. The study uses two questionnaires, one for measuring bran equity, which is adopted from Buil et al. (2013) [Buil, I., de Chernatony, L., & Martinez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation. Journal of Business Research, 66(1), 115-122.], and the other for measuring localization strategy designed by researchers. Cronbach alphas for brand equity and localization strategy are 0.82 and 0.78, respectively. The study is applied among consumers of products with a name of Samsung in city of Tehran, Iran. Using Pearson correlation as well as multiple regression technique, the study has determined that attribute, consumer and application/implementation policies influenced positively on brand equity. Growing Science Ltd. All rights reserved. 5 © 201

Highlights

The financial risk of entering new markets has become a serious concern for several consumer product manufacturers and the cost of building a new brand may go up to hundreds of millions of dollars (Aaker & Keller, 1990; Kim et al, 2001)
Brand loyalty was higher among users of high collectivism than those of low collectivism across brands in two countries
The study uses two questionnaires, one for measuring bran equity, which is adopted from Buil et al (2008, 2013) and the other for measuring localization strategy designed by researchers

Summary

Introduction

The financial risk of entering new markets has become a serious concern for several consumer product manufacturers and the cost of building a new brand may go up to hundreds of millions of dollars (Aaker & Keller, 1990; Kim et al, 2001). Yoo (2009) tried to understand whether or not the effect of personal cultural orientation on brand‐related consumer behaviors operates invariably at the individual level in two culturally opposite countries. They reported that personal collectivistic orientation maintained a substantial effect

The proposed study

Result

Findings

Conclusion