How global brands incorporating local cultural elements increase consumer purchase likelihood An empirical study in China

• Published in: International marketing review Vol. 34; no. 4; pp. 463 - 479
• Main Authors: He, Jiaxun, Wang, Cheng Lu
• Format: Journal Article
• Language: English
• Published: London Emerald Group Publishing Limited 01.01.2017
• Subjects: Brand equity; Cognitive dissonance; Consumer attitudes; Consumer behavior; Consumers; Cultural differences; Cultural heritage; Culture; Emerging markets; Ethnocentrism; Globalization; Hypotheses; Localization; Market strategy; Marketing; R&D; Research & development; Social responsibility; China
• ISSN: 0265-1335; 1758-6763
• DOI: 10.1108/IMR-08-2014-0272

Purpose The purpose of this paper is to investigate the influence of incorporating Chinese elements in global brands on consumer purchase likelihood. Design/methodology/approach Six global brand products from three categories that utilized Chinese elements are used to test hypotheses. The Total Effect Moderation Model is used to analyze by combining moderation and mediation under a general analytical framework. Findings The results show that cultural compatibility has direct positive effect, in addition to an indirect effect (through local iconness) on purchase likelihood. Meanwhile, consumer cultural identity is found to moderate the impact of brand local iconness on purchase likelihood. Practical implications Evaluation and improvement of cultural compatibility in a global brand that incorporates Chinese elements is recommended for multinational marketers entering Chinese consumer markets. Meanwhile, marketers should pay attention to consumer cultural identity in the market segmentation process. Originality/value This paper takes a unique perspective to investigate whether and how global brands can succeed when adding local cultural elements to the product design, packaging and promotion in emerging markets like China.