Does the Value of Global Brands Apply to Both Foreign and Domestic-Based Global Brands?

Abstract

The purpose of this study is to explore how the value of being global brands is experienced differently based upon foreign versus domestic origin of a brand. The conceptual framework is tested on samples from three countries – United States, India, and China. The data are analyzed using partial least squares structural equation modeling. The belief that global brands are of higher quality, more socially responsible, and deliver a sense of belongingness to a global community led to an orientation toward globally available consumption alternatives, or global consumption orientation (GCO). High GCO has been associated with preferences for global brands; however, we find that while this preference indeed extends to global brands based in foreign countries, it does not extend to global brands based in the home country. The study of global brands seldom distinguishes among types of global brands. This research examines global brands based on their foreign versus domestic origin; thus it offers a more nuanced understanding of the boundaries for the value of global brands.

Citation

Westjohn, S.A., Magnusson, P. and Zhou, J.X. (2015), "Does the Value of Global Brands Apply to Both Foreign and Domestic-Based Global Brands?", Entrepreneurship in International Marketing (Advances in International Marketing, Vol. 25), Emerald Group Publishing Limited, Leeds, pp. 267-286. https://doi.org/10.1108/S1474-797920140000025012