Part E Global and Cross-Cultural...

2015 AMA Winter Educators’ Proceedings E-1

Part EGlobal and Cross-Cultural Marketing

Track ChairsDurairaj Maheswaran, New York University

Cathy Chen, Singapore Management University

Country-of-Origin-Based StrategiesThe Huge Gap: The Price Differences of Branding Clothes Between the United States and China E-2

Zijing ZhouCountry Image Research Review E-4

Irene R.R. Lu, Louise A. Heslop, D. Roland Thomas, Ernest KwanExplaining the Differing Effects of Corporate Reputation Across Nations E-5

Bernhard Swoboda, Cathrin PuchertOnline Piracy and Country-Level Influencers E-7

Maria Petrescu, John Gironda, Pradeep K. Korgaonkar

Cross-Cultural Marketing Meaning in Life, Life Reminiscence, and Brand Relationship E-8

Yupin Patarapongsant, Nicha TanskulCross-Cultural Success of Low-Fit Brand Extensions: The Impact of Information Type E-14

Pragya MathurCustomer Responses to Switching Costs: The Moderating Influence of Culture E-16

Martin Eisend, Doreén PickLove Yourself and Like the Others: Why Domestic Favoritism Is Different from Consumer Ethnocentrism E-18

Justina Gineikienė, Bodo B. Schlegelmilch, Viltė Auruškevičienė

Cross-National Comparative StrategiesNational Culture Versus Organizational Culture: An Empirical Assessment of the Implementation of Market

Orientation Across Nations E-20Ahmet H. Kirca

Does Listening to the Customer Pay Off? Customer Orientation-Performance Links in Developed Versus Emerging Markets E-21Johanna Frösén, Maria M. Smirnova, Alexander Rozhkov, Henrikki Tikkanen, Vera Rebiazina

(Un)Truth in Bilingual Consumer Recall of Brands in Advergames: A Three-Country Comparison E-23Monica D. Hernandez, Michael S. Minor

Marketing Luxury Brands Across Asian Markets: An Investigation of Consumer Luxury Value Perceptions in China, India, and Indonesia E-24Paurav Shukla, Jaywant Singh, Madhumita Banerjee

Research QuestionMid- to high-end branding clothes, whose trademarks origi-nated in the United States of America, are often subsequentlymanufactured in China. This research intends to discoverwhy the retail price in China is much higher than that in theUnited States. Previous studies discussed the price policy inchain retail store (Zhang, Guo, 2012), the relationshipbetween distribution channels and retail price (Coughlan,1992), and consumer behavior in China (Schutte, 1996;Giele, 2009). However, Chinese clothing market, as one ofthe most notable and profitable market that sells High Endforeign brands, seldom has been discussed in academic stud-ies. American brands that are made in China have muchhigher price in China than in United States—this phenome-non has aroused a heated discussion among Chinese people,mass media and academia in China in the past few years, butno creditable explanations with sufficient evidence or withrigorous reasoning has been provided. In this study, it startswith discussing the problems in distribution channels throughanalyzing the first-handed information collected from bandsupplier and retailing stores. Then, it explains the causationof the significant price difference from three perspectives:brand supplier’s strategy in oversea market, consumer cultureand behavior, and Chinese government behavior.

Method and DataThis study first presents the first-handed data of selectedwell-known US brands including Tommy Hilfiger, PoloRalph Lauren, Hugo Boss, etc. The data includes the retailprices and the value-added process of these brands in bothUnited States and in China. The price gap between Chinaand the United States was easily found. Next, through a

comparative study, the paper explains the distribution chan-nels of the two countries, and the nature of Chinese clothingmarket (collected from in-person interviews). Finally, toclarify the relationship and find the equilibrium amongbrand supplier, consumer and government, the “3-parties”theoretical model (Supplier, Consumer, Government, socalled SCG Model) has been constructed.

Summary of FindingsThe key findings of the paper partially refute the generalopinions and previous relevant studies in China. Severalconcerns in Chinese mass media have been clarified: first,tax is one but not the exclusive reason that establish thehigher retail price in China; secondly, instead of consideringthe intellectual property issue, the transferal of profit modeis the main reason for both shipping the clothes back to theUnited States and mark-up in the United States. Further-more, Chinese consumers tend to consider the practicalvalue (quality, style, etc.) and symbolic value (brand of ori-gin). “Origin of Brand” is defined as the positive influenceor association the clothes country of manufacture may haveon consumers’ decision processes (Sivakumar, 2005).Finally, the SCG Model has been built to simulate theoreti-cal equilibrium and to explain why in this case, the Mid-High price would be suitable to explain the current condi-tion: From the Chinese consumers’ perspective, they aredifferent purposes at play among the Chinese government,the retailer and the consumer. To the Chinese governmentprotection of the domestic clothing industry, a higher pricepoint is acceptable; to the retailer, the price is simultane-ously, lower than European luxury brands and higher thandomestic brands, and similar to Japanese brands, but pres-

The Huge Gap: The Price Differences ofBranding Clothes Between the UnitedStates and China Zijing Zhou, HEC Paris

Keywords: high-end brands, price discrimination, three parties’ model (SCG model), distribution channel, consumer behavior of China

EXTENDED ABSTRACT

For further information contact: Zijing Zhou, Department of Strategy and Business Policy, HEC Paris (e-mail: [email protected]).

E-2 2015 AMA Winter Educators’ Proceedings


ents a completely different style, so there is no direct com-petitor to the US brand. Furthermore, from the consumers’perspective, the retail price is easy accepted for two reasons:one is the brand effect and culture difference, the other isclothing being treated as an emotional and non-durablegood. Thus, if the price is affordable, consumers generallybase their purchasing decision on style preference and theiremotion drive to buy clothes. On the other hand, from thebrander’s perspective, it is clear that if the price is not aproblem to Chinese market, then they will absolutely capturetheir profits in the mark-up process.

Key ContributionsIn the article, the “SCG Model” has been built to simulateand summarize the causation of price difference from 3aspects: the brand supplier’s strategy, the Chinese con-

sumer’s culture and behavior, and the government interven-tion on international trade. The Model is able to answer thequestions that why the high markup is acceptable in Chi-nese market and has discovered the causation of price dif-ference. SCG Model could be used for analyzing price posi-tion under collective environment and could also be helpfulto find the general equilibrium under government interven-tion as well.

AcknowledgmentThe author sincerely acknowledged the support from Profes-sor Bai Gao at Duke University, Professor Bertrand Quelinat HEC Paris, Dr.Xiuyuan Cheng, Qing Xia, Neo Yu, andXianying Zhou.

References are available on request.

Research Question The main research question is how country image researchhas progressed and been conducted in the last 35 years.Specifically, we pose the following three research questions.

1. What are the publication trends, in terms of number ofarticles, type of journals, and citation?

2. What are the authorship trends, in terms of globalization,collaboration, and productivity?

3. What are the procedure trends, in terms of researchthemes, study design, and methodology?

Method and DataThis review content analyzed 649 academic journal articlespublished from 1978 to 2013.

Summary of Findings We observed an increasing globalization of authorship, andsubstantial expansion or great diversity of research themes.On the other hand, we found a slight downturn of CI publi-cations in the past three years. We encourage CI researchersto produce more conceptual papers, and to adopt longitudi-nal research designs. Replications of important CI studiesare also needed. Furthermore, future CI research wouldespecially benefit from a shift in geographic focus towardsunder-researched countries and regions.

Key Contributions The study sheds light on the evolution and status of countryimage research by examining publication, authorship, andprocedure trends over the past 35 years.


Country Image Research ReviewIrene R.R. Lu, Carleton UniversityLouise A. Heslop, Carleton UniversityD. Roland Thomas, Carleton UniversityErnest Kwan, Carleton University

Keywords: country image, country of origin, COO, destination image, brand image

EXTENDED ABSTRACT

For further information contact: Irene R.R. Lu, Associate Professor, Carleton University (e-mail: [email protected]).


Research QuestionThis study analyzes whether the corporate reputation (CR)of multinational corporations influences consumer loyaltyacross nations. In particular, this study highlights theboundary conditions of this relationship by investigatinginstitutional country differences that may determine CReffects. Knowledge of the moderators that reinforce ordiminish the reputation effects is of paramount importancefor international reputation management. Scholars haveintensively analyzed CR, balancing the benefits of a strongreputation for firm performance and its effects on customerbehavior. However, the effects of CR in an internationalcontext have been rarely analyzed. Here, studies indicatevarying effects of CR and link these effects to cultural dif-ferences. Thus, research is inconclusive regarding thecross-national effects of CR on loyalty and does not pro-vide insights into further moderators, which may be moreimportant than cultural differences. This study offers twocontributions to the extant literature. First, we extendknowledge on the CR effects across nations, which isimportant because international reputation management isadvantageous for an MNC but has rarely been examined.Second, we contextualize the reputation-loyalty relation-ship by investigating the moderating effects of a set ofinstitutional variables. Further, we used a multilevelapproach that disentangles the effects into individual- andcountry-level effects.

Method and DataTo develop the sample, we cooperated with an MNC in thechemical and pharmaceutical industry. The final sample con-sists of 13,665 consumers, nested in 40 countries, evaluatingone multinational company.

Regarding the measurements on the consumer level, weconsidered general aspects (such as the hierarchy ofeffects) and we relied on scales from previous studies. Themeasurements of the country-level variables were based onBerry, Guillén and Zhou (2010, JIBS). A set of 24 institu-tional variables which can be assigned to seven dimensions(culture, demographic, economic, financial, global con-nectedness, knowledge and political dimensions) havebeen inspected. Tests for uni- and multivariate normalityshowed no violation of the assumption of normal distribu-tion. All scales were tested for reliability and validity. Fur-ther, we succesfully tested for full scalar measurementinvariance.

Our methodological approach involved two steps. First,fixed-effect models, i.e., multi-group models, were esti-mated using the country data as grouping variables followedby multilevel models with random intercept and slopes.Before we conduct our analysis, we examined the distribu-tion of variance between consumer- and country-level. Wefound that 18.3% [0.210/(0.210+0.937)] of the differences inloyalty could be attributed to country differences.

Summary of FindingsFirst, the multi-group models as well as the multilevel mod-els show a positive and highly significant relationshipbetween perceived CR and customer loyalty across allnations.

Second, eleven of the 24 institutional variables show signifi-cant moderating effects: Four cultural variables (uncertaintyavoidance, power distance, individualism and masculinity)show the expected effects in the multi-group as well as in the

Explaining the Differing Effects of Corporate Reputation Across NationsBernhard Swoboda, University of TrierCathrin Puchert, University of Trier

Keywords: corporate reputation, country differences, institutional theory, hierarchical analysis

EXTENDED ABSTRACT

For further information contact: Bernhard Swoboda, Professor of Marketing and Retailing, University of Trier (e-mail: [email protected]).



multilevel models. Only the age distribution in society has amoderating effect in both models for the demographicdimension. Both international trade variables (economicdimension) as well as the number of listed companies (finan-cial dimension) show moderating effects. The tourismactivities in a country also show the expected effects in themulti-group and in the multilevel models. In the knowledgedimension only the number of scientific articles supports themoderating effects in both models. Finally, none of thepolitical variables show a significant effect in the multilevelmodels.

Key ContributionThis study yields two major theoretical conclusions. Weconclude that MNC reputation pays off by directly influenc-ing consumers’ intention and readiness to purchase the prod-ucts or offers of a firm. A strong reputation is an importantsignal in international markets and anchors the associationsof an MNC in the memories of local consumers, whichdetermines their purchase behavior. This result advancesmost extant studies and indicates that MNC reputation is an

internationally important differentiation criterion from theconsumer’s perspective.

Our analysis of the reinforcing or diminishing role of coun-try differences responds to calls for more hierarchical stud-ies. We discuss two conclusions in greater detail. First, notonly culture but further country differences moderate therelationship between reputation and customers’ loyalty.These observations are notable in light of the almost exclu-sively culturally centered reputation research. MNCs need toidentify the most important moderators as these moderatorsrepresent important foundations for adequate reputationmanagement. Second, we believe that the proposed institu-tional framework of cross-national differences significantlycontributes to the consumer-centered reputation research.Institutions are not systematically observed in reputationresearch. In turn, focusing on customer behavior may be ofincreasing importance for international business researchbecause customers determine firms’ success.


Research Question We analyze whether individuals’ propensity to participate inillegal sharing of copyrighted content is influenced by avariety of country level variables.

Method and Data In order to test our model, we collected country level datafrom different sources for 135 countries around the world.As a dependent variable, we used the piracy rates for 2011as computed by BSA/The Software Alliance and INSEAD.For the independent variables, we used the country scoresfor the two dimensions of indulgence and individualism andinformation regarding research and development expendi-tures. We included the rate of theft at a national level anddata from the Intellectual Property Rights Index for 2013. Inorder to test our model, we performed a multiple regressionanalysis, with online piracy rates as the dependent variableand six independent variables. After eliminating listwise themissing data, the sample size included 55 countries.

Summary of Findings The positive relationship between the regular theft rate andthe software piracy rate shows that countries with highercrime rates, and lower levels of ethical principles, are morelikely to be breading grounds for intellectual propertycrimes. The results also show that stricter national regula-tions regarding intellectual property show a direct positiverelationship with lower software piracy rates. In the samecontext, legal systems that are stricter and stress the rule oflaw also lead to lower involvement in copyrighted softwarestealing. Besides governmental and political interventionwithin the legal system, the country’s institutions can alsocontribute to lower piracy by supporting research and devel-opment. The results of our analysis indicate that both cul-

tural values and a country’s institutions have a significantimpact on individuals’ propensity to engage in illegal soft-ware download and sharing. Hofstede’s individualistic valuehas a negative relationship with online piracy, underliningthe fact that cultures with collectivistic values and lifestylesare more likely to share copyrighted content, even if suchaction is illegal or unethical. The relationship between regu-lar theft rates and software piracy demonstrates that ethicaland legal issues related to traditional low level crimes extendto modern cybercrime.

Key Contributions Overall, the significance of our model underlines the factthat numerous factors that are related to a country’s culturalvalues, ethical system and legal system can contribute ordeter its individuals’ implication in illegally sharing anddownloading copyrighted electronic content and informa-tion. From this point of view, the results underline not onlywhat factors are related to the intellectual property theft, butalso the players that can act for the reduction of this type ofcrime. For example, marketers can develop communicationand PR strategies that focus on the ethical aspects of onlinepiracy and take advantage of the propagation potential of themarketing message within collectivistic societies. A bettermarketing communication strategy regarding the ethical,social and legal implications of online piracy has the poten-tial to lead to decreased crime rates. Nevertheless, as shownby the negative relationships between online piracy andstricter intellectual property rights and legal systems, otherfactors, including governments, can intervene in improvinglegal systems and regulations related to this type of crime inorder to further reduce instances of piracy.


Online Piracy and Country-Level InfluencersMaria Petrescu, Nova Southeastern UniversityJohn Gironda, Nova Southeastern UniversityPradeep K. Korgaonkar, Florida Atlantic University

Keywords: online piracy, copyrighted information, cultural variables, consumer ethics

EXTENDED ABSTRACT

For further information contact: Maria Petrescu, Assistant Professor of Marketing, Nova Southeastern University (e-mail: [email protected]).


Introduction Brands have significant roles in our life. Our relationshipswith brands can help in resolving the life themes and pro-found existential concerns or tensions that individuals facein daily life (Csikszentmihalyi and Beattie, 1979). The con-sumers’ relationships with brands help in constructing,maintaining, and dissolving important life roles that signifi-cantly alter one’s concept of self (Cantor et al., 1987; Caspi,1987; Erikson, 1950). Fournier (1998) has asserted that“what matter in the construction of brand relationships is notsimply what managers intend for them or what brand images‘contain’ in the culture, but what consumers do with brandsto add meaning in their lives.” Recent research has demon-strated that some consumers have substituted their brandsfor their religion (Shachar et al., 2010; Cutright et al., 2011).

This research provides an understanding on the relationshipthat consumers have with their brands. Our relationship withbrands can fulfill our meaning in life. As brands help provideour sense of self and are parts of our extended self (Belk,1988; Park et al., 2010, 2013), when meaning in life is lack-ing, a sense of meaning can be obtained externally by con-suming symbolic brands. Consumers’ relationships withbrands will be strengthened as a result, and this is reflectedin our stronger love toward a particular brand and lowerbrand-self distance. Despite this fact, the consumers’ rela-tionships with brands can become diluted when consumersachieve their meaning in life through psychological mecha-

nisms, particularly, through life reminiscence. This isreflected in our weaker love toward a particular brand andhigher brand-self distance.

Conceptual Model and Research HypothesesMeaning in Life

Meaning in life is related to the concept of human beings’desire to understand themselves and the world around them(Steger et al., 2008). Meaning in life has been defined as“sense made of, and significant feeling regarding, the natureof one’s being and existence” (Steger et al., 2006). Frankl(1963) commented that “humans are characterized by a willto meaning,” and a failure to find this meaning will result inpsychological distress. Those who have found meaning inlife reported higher levels of life satisfaction (Chamberlain& Zika, 1988), happiness (Debats et al., 1993), work enjoy-ment (Bonebright et al., 2000), and exhibited higher levelsof adaptive psychosocial functioning (Dezutter et al., 2013).Various research studies have examined the factors whichenhance experiences of meaning in life. For example, prim-ing a positive mood without a cue can lead to higher reportedmeaning in life (King et al., 2006). Increased accessibility oftrue self-concept also leads to an increase in meaning in life(Schlegel et al., 2008). Priming mortality salience amongthose who are high in personal need for structure (PNS) alsobolsters a sense of meaning in life. Furthermore, primingmortality salience among those who are low in PNS togetherwith exploring the alternative course of one’s life also

Meaning in Life, Life Reminiscence, andBrand RelationshipYupin Patarapongsant, Chulalongkorn UniversityNicha Tanskul, Chulalongkorn University

ABSTRACTMeaning in life promises to give us life satisfaction and happiness. Previous research has shown that our relationships withbrands can extrinsically provide us with meaning in life. This research aims to demonstrate that life reminiscence can providemeaning in life which dilutes brand love and increases brand-self distance.

Keywords: brand love, brand relationship, brand-self distance, symbolic brand, life reminiscence, meaning inlife, values

For further information contact: Yupin Patarapongsant, Faculty, Sasin Institute of Business Administration, Chulalongkorn University (e-mail:[email protected]).



helped affirm the meaningfulness of the study participants’lives (Vess et al., 2009). Practice of reminiscence and lifereview can enhance meaning in life (MacKinlay et al., 2009;Butler 1995; 1968; 1964) Counterfactual thinking enrichesmeaning in life through fate perception (for example, “It wasmeant to be”) and a benefit-finding mechanism, i.e., therecognition of positive consequences (Kray et al., 2010).Priming the sense of belongingness or increasing the senseof belongingness causes people to perceive their life asmeaningful (Lambert et al., 2013).

Life Reminiscence

Life reminiscence generally refers to a recall of memorieswhich may be in the form of simple daydreaming, story-telling, or nostalgia, which is more descriptive in nature.Life reminiscence can occur among those who are at least 10years old (King, 1982). Life reminiscence has been viewedas part of the normal life review process that occurs at allages; however, it is accentuated later in life as older adultsbecome more aware of their approaching mortality (Butler,1964; 1968; 1995). The life reminiscence process has beensuggested to help/result in identity maintenance, the reinte-gration of the self that enables openness to change anddevelopment in later life, and re-engagement in societies(Coleman & O’Hanlon, 2004). It has been shown that thisprocess gives us an opportunity to retell our stories whichenhance our sense of possibility, thereby making us feel thatwe are a “work in progress.” We can find our own uniqueworth and identity through effective engagement with thestory (Kenyon et al., 2001; Kenyon 2003). In this research,our focus is on spiritual life reminiscence, a type of narrativethat involves telling a life story with an emphasis on whatgives meaning to life as well as what has given joy orbrought sadness. It has been proven that this method is effec-tive in helping older people to find meaning in life.

Brands and Meaning in Life

There are various aspects involved in defining, viewing, andmeasuring consumers’ relationships with brands, includingbrand relationship (Fournier, 1998), brand attachment (Parket al., 2010; Thompson et al., 2005), brand love (Batra et al.,2012), and attachment-aversion (AA model) of the cus-tomer-brand relationship (Park et al., 2013). When brandsprovide consumers with their life meaning, consumersbecome attached to the brand and love the brand (Ahuvia etal., 2012; Park et al., 2010; Park et al., 2013; Carroll andAhuvia, 2006; Fournier, 1998). According to Fournier(1998), a brand has the ability to give meaning to con-sumers’ lives. When consumers decide how they would liketo live their lives, they obtain brands that enrich the lives thatthey have chosen. From the brand attachment perspective(Park et al., 2010; Thomson et al., 2005), brand-self connec-tion is the key element which enables consumers to create a

sense of oneness with the brand. A brand becomes signifi-cant in their life because it expresses the actual-self and thedesired-self. Brands enable consumers to pursue and achievetheir life goals. From the brand love perspective (Batra,Ahuvia, and Bagozzi, 2012), the self-brand integration com-ponent which is composed of the concepts of current self-identity, desired self-identity, life meaning, and intrinsicrewards enables consumers to connect with a brand at adeeper level, i.e., they are able to experience self-actualiza-tion or personal growth (Richins, 1994), existential mean-ing, self-identity, or religious and cultural identity (Escalas& Bettman, 2005, 2003; Belk 1988). According to theAttachment-Aversion model of customer-brand relation-ships, brand-self distance enables us to measure whetherconsumers have high or low cognitive and affective (person-ally meaningful) memories of the brand. Hence, the lowerthe brand-self distance, the more positive the relationshipbetween the consumer and the brand.

As brands can be one outlet for self-expression. However,when the need for self-expression has been fulfilled by othermeans, such as self-expressive activity, the importance ofbrand as a self-identity generator tends to decrease (Chernevet al., 2011). Brands can provide life meaning; however,when life meaning has been provided by internal means,such as life reminiscences, the strength of consumers’ rela-tionship with brands will decrease. Thus, the second hypoth-esis of this study is as follows:

H1: When meaning in life has been internally acquiredthrough life reminiscence, it may dilute consumers’relationship with brands such that the magnitude ofbrand love will be weaker while the brand-self distancewill be higher.

Carroll and Ahuvia (2006) found that satisfied consumer loveis greater for brands in product categories perceived as offer-ing more symbolic benefits (as compared to utilitarian bene-fits). Symbolic brands may gratify, enable, and assure theconsumer’s sense of self (Escalas and Bettman 2003, 2005;Park et al., 2006) which is related to life meaning. Hence, theimpact of life reminiscence as a source of meaning in life inweakening brand relationship should be stronger with respectto symbolic brands than to utilitarian brands. Therefore, thethird hypothesis of this study is as follows:

H2: When meaning in life has (not) been internally acquiredthrough life reminiscence, the perceived symbolic bene-fits of the brand especially symbolic brand will be lower(higher) results in weaker (stronger) consumers’ rela-tionship with brands. Such that the magnitude of brandlove will be lower (higher) while the brand-self distancewill be higher (lower).


MethodExperiment 1

Previous research has shown that consumers’ relationshipswith brands exist because brands have the ability to provideconsumers with a sense of meaning in life (Fournier, 1998;Thompson et al., 2005; Park et al., 2010, 2013; Batra, Ahu-via and Bagozzi, 2012). This experiment looks at con-sumers’ relationships with brands from a different perspec-tive. We examine whether life reminiscence can be analternative source of meaning in life instead of acquiring itexternally from brands. Our hypothesis is that when a con-sumer internally perceives their meaning in life as the resultof a life reminiscence process, the consumer’s relationshipwith brands can be diluted (lower brand love and higherbrand-self distance) (H1).

Participants and Design

The 2 Meaning in Life (Life Reminiscence vs. Control) x 1between subject experimental design was conducted utiliz-ing a Mechanical Turk sample (n = 50). Participants wererandomly assigned to each of the experimental condition.

Stimuli and Procedure

The experiment was conducted online via Qualtrics. Theparticipants were informed that they would receive incen-tives to participate in the experiment. The participants wererandomly assigned into each condition. In the life reminis-cence condition, participants were requested to take theirtime to think about what provided their greatest meaning inlife and were asked to elaborate more on whatever it was. Inthe control condition, participants did not experience the lifereminiscence manipulation. Next, the participants wereasked to think about a brand they like and wrote down thebrand name. Then, they evaluated their relationship withbrands through the brand love (Betra et al., 2012) measureusing two 11-point scale items (1 = Not at all, 10 = Verymuch) in response to the questions “Overall, how much doyou love this brand?” and “Describe the extent to which youfeel love toward this brand.”

Manipulation Checks: Meaning in life manipulation wastested by assessing the participants’ responses to the Mean-ing in Life Questionnaire (MLQ) with a focus on the Mean-ing in Life Presence (MLP) sub-scale (Adopted from Stegeret al., 2006). These items are as follows: “I understand mylife’s meaning”; “My life has a clear sense of purpose”; “Ihave a good sense of what makes my life meaningful”; “Ihave discovered a satisfying life purpose”; and “My life hasno clear purpose”; the score for the last item was reversed.The meaning in life presence (MLP) subscale was signifi-cantly higher among the participants in the life reminiscencegroup than it was for the participants in the control group

(M reminiscence = 29.92 vs. M control = 22.52, F (1, 48) = 23.55,p < 0.01.)

ResultsThere is a significant difference in terms of level of lovetoward brands. In response to the questions “Overall, howmuch do you love this BRAND?” and “Describe the extentto which you feel love toward this brand,” these items wereaverage to create an outcome brand love measure (a = .76).The result shows the effect of life reminiscence on brandlove (M reminiscence = 7.31 and M control = 8.26, (F (1, 48) =5.23, p < 0.05).

Experiment 2In experiment 2, this study aims to understand how lack oflife meaning (negative life reminiscence) will influence themagnitude of consumers’ relationships with brands. Theconsumers’ relationships with brands will be enhanced whenthe meaning in life is in doubt (negative life reminiscence).Therefore, it leads to greater brand love and lower brand-selfdistance. The effect is higher with respect to symbolicbrands than utilitarian brands (H2).

We conducted pretesting (n = 59) to identify two levels ofbrands (Symbolic, Utilitarian). The pretesting was done withan undergraduate student sample in the Mid-Western school.Participants gave their rating on a scale from 0 to 100 (where0 refers to a highly utilitarian brand and 100 refers to ahighly symbolic brand) to the following 10 brands: Apple,Burberry, Coca-Cola, Gap, Google, Kellogg’s, Nike, Nin-tendo, Samsung, and Tide. The results show that the Applebrand represented a symbolic brand and the Samsung brandrepresented a utilitarian brand (M Apple = 63.42, M Samsung =39.19, p < .01).

Participants and Design

The 3 Meaning in Life (Positive Life Reminiscence vs.Negative Life Reminiscence vs. Control) x 2 Brand Types(Utilitarian vs. Symbolic) was conducted by utilizing theMechanical Turk sample (n = 115). Participants were ran-domly assigned to the experimental conditions. Next, par-ticipants evaluated both the Utilitarian and Symbolic brands;the order of brands was randomized to eliminate the ordereffect.

Stimuli and Procedure

The experiment was conducted online via Qualtrics. Partici-pants were informed that they would receive an incentive toparticipate in the experiment. Participants were randomlyassigned to the experimental conditions. In the positive lifereminiscence condition, participants were requested to taketheir time to think about what provided their greatest mean-


ing in life and were asked to elaborate more on whatever itwas. In the negative life reminiscence condition, participantswere asked to take time to think about when the meaning oftheir life is in question or when they experienced a lack ofmeaning in life; they were also asked to elaborate theirresponse to this question. In the control condition, however,participants did not experience any of these manipulations.The participants were then asked to evaluate on the follow-ing dependent measures toward two levels of brands as follows:

Brand Love: Brand love (Betra et al., 2012) was measuredusing two 11-point scale items (0 = Not at all, 10 = Verymuch) in response to the following questions: “Overall,how much do you love this brand?” and “Describe theextent to which you feel love toward this brand.” Theseitems were averaged to create an outcome brand love meas-ure (a = .98).

Brand Self-Distance: Brand self-distance (Park et al., 2013)was measured using bipolar 11-point scale items in responseto the following questions: “I am personally disconnectedfrom (brand name)” and “I am personally connected to (brandname).” The lower score reflect higher brand-self distance.

Participants were given the definitions of both utilitarian andsymbolic brands (Strahilevitz and Myers 1998; Chernev etal., 2011). A utilitarian brand is a brand that provides valuethrough its functional benefits, including its features, per-formance, and reliability. A symbolic brand is a brand thatprovides additional values beyond its functional benefits andperformance. Participants were then asked to rate the degreeof perceived utilitarian and symbolic value of each brand (0 = Utilitarian, 100 = Symbolic).

Results and Manipulation Checks Meaning in life manipulation was checked by assessing eachparticipant’s response to the Meaning in Life Questionnaire(MLQ) with a focus on the Meaning in Life Presence (MLP)sub-scale (Steger et al., 2006). These items included the fol-lowing: “I understand my life’s meaning”; “My life has a clearsense of purpose”; “I have a good sense of what makes my lifemeaningful”; “I have discovered a satisfying life purpose”;and “My life has no clear purpose”; the score for the last itemwas reversed. There is a mildly significant difference in termsof meaning in life among different conditions (F (2, 112) =2.58, p < .10). When investigated further, the meaning in lifepresence (MLP) in doubt condition is significantly differentfrom the reminiscence condition (M reminiscence = 29.21 vs. M doubt = 26.21, t (74) = 2.02, p < .05). However, meaningin life presence (MLP) was not significantly differentbetween the doubt condition and the control condition (M doubt = 26.21 vs. M control = 26.70, t (80) = .35, p = .35)

Brand Type manipulation was checked by assessing eachparticipant’s evaluation of the perceived brand type of Appleand Samsung. The manipulation check result is consistentwith the pre-test result, i.e., the Apple brand was perceivedas more of a symbolic brand compared to the Samsungbrand. (M Apple = 62.99, M Samsung = 44.01, p < .01).

Brand Love: There is a significant main effect of meaning inlife condition. The magnitude of brand love will be loweronce consumers internally find meaning in life via life remi-niscence. In addition, brand types (Symbolic brand vs. Utili-tarian brand) moderate the effect. Hence, in the symbolicbrand (Apple brand) condition, there is a significant differ-ence in brand love across conditions (F (2,112) = 3.34, p <.05). Brand love is higher in the doubtful (negative life rem-iniscence) condition than in the positive life reminiscence (M positive reminiscence = 6.09 vs. M doubt = 7.68, F (1, 74) =4.94, p < .05). However, in the utilitarian brand (Samsung)condition, the level of brand love across the conditions hasno effect (M positive reminiscence = 6.00 vs. M doubt = 6.05 vs. M control = 6.44, F (2,112) < 1), as illustrated in Figure 1a.

Brand-Self Distance: There is a significant main effect ofmeaning in life condition. The brand-self distance will begreater once consumers find their meaning in life internallyvia life reminiscence. In addition, brand types (Symbolicbrand vs. Utilitarian brand) moderate the effect. Hence, withthe Symbolic brand (Apple), there is a significant differencein brand-self distance across conditions (F (2,112) = 3.34, p <.05). Brand-self distance is lower in the doubtful (negativelife reminiscence) condition than in the positive life reminis-cence condition (M doubt = 5.35 vs. M positive reminiscence = 7.12,F (1, 74) = 4.89, p <.05) However, with the utilitarian brand(Samsung), the brand-self distance across the conditions hasno effect (M positive reminiscence = 5.51 vs. M doubt = 5.30 vs. M control = 6.10, F (2,112) < 1), as illustrated in Figure 1b.

General DiscussionPrevious research has shown that consumers’ relationshipswith brands exist because brands have the ability to provideconsumers with a sense of meaning in life (Fournier, 1998;Thompson et al., 2005; Park et al., 2010, 2013; Batra, Ahu-via and Bagozzi, 2012). This research shows that once con-sumer internally perceives their meaning in life as the resultof a life reminiscence process, the consumer’s relationshipwith brands can be diluted (H1). The result from both exper-iments supports this claim. Furthermore, participants in thelife reminiscence condition demonstrated lower brand love(Experiment 1 and 2) and greater brand self-distance(Experiment 2).

Previous research also demonstrated that symbolic brandshave the ability to provide consumers with symbolic benefits


beyond the brand’s features and functional benefits. A sym-bolic brand communicates something about the brand to theusers. In addition, a symbolic brand can gratify, enable, andassure the consumer’s sense of self (Escalas and Bettman2003; 2005; Park et al., 2006). As meaning in life has beendefined as “a sense made of, and significant feeling regard-ing, the nature of one’s being and existence” (Steger et al.,2008), the sense of self is part of our life meaning. Theexperiment results show that when meaning in life is lack-ing, symbolic brands play a significant role representingself-concept. A consumer’s relationship with brands becomestronger in the symbolic brand condition than in the utili-tarian brand condition when brand love is higher and brand-self distance is lower (H2) (Experiment 1).

According to Park et al., 2013, when consumers do not havehighly self-relevant cognitive and affective (personallymeaningful) memories about a brand, consumers will notperceive a close brand-self relationship, but instead will beindifferent to the brand. Hence, as a result, this research alsodemonstrates that when the consumers feel meaningfulabout their life, their memory about the brand become lessrelevant and their relationship with brands becomes weakerand brand self-distance is higher (H2) (Experiment 2).

These findings also provide managerial insight into market-ing strategies. Brands that provide life meaning will be ableto build strong relationships with consumers. When con-sumers feel a lack of meaning in life, this relationship or theirbonding with brand will become even stronger as consumersneed to rely on brand as their reliable source to provide lifemeaning. This effect occurred especially in the symbolicbrand. It seems that the type of relationship that consumers

have with symbolic brand is unique from the type of relation-ship that consumers have with utilitarian brand. While rela-tionship with symbolic brand is quite fragile, consumer rela-tionship with utilitarian brand are less easy to falter.

Further research can investigate in details on the type of rela-tionship that consumers have with symbolic brand and utili-tarian brand. How long the lack of meaning in life effectlasts when life meaning is substituted externally by a sym-bolic brand. What is the linkage between a consumer’sattachment to a brand and their willingness to buy? What isthe relationship between consumers’ materialistic value andtheir meaning in life? We expect that consumers who havehigh materialistic values would be more prone to consumesymbolic brands when they feel a lack of life meaning.

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Figure 1a. Study 2a: Impact of Life Reminiscence onBrand Love

Brand love was measured using two 11-point scale items (0 = Not at all,10 = Very much) in response to the following questions: “Overall, howmuch do you love this brand?” and “Describe the extent to which youfeel love toward this brand”

!

6.00 6.09 6.05

7.68

Utilitarian Symbolic

Life reminiscence + Life reminiscence -

Figure 1b. Study 2b: Impact of Life Reminiscence onBrand-Self Distance

Brand self-distance (Park et al., 2013) was measured using a bipolar 11-point scale item in response to the following questions: “I am personallydisconnected from (brand name)” and “I am personally connected to(brand name)”

!

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7.12

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Life reminiscence + Life Reminiscence -


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AcknowledgmentThis research has been supported by the National ResearchUniversity Project, Office of Higher Education Commission,Thailand and the Ratchadaphiseksomphot EndowmentFund, Chulalongkorn University, Bangkok, Thailand (WCU-066-HS-57).

Research QuestionBrand extension, the pervasive marketing activity in which abrand launches a product in a new category, has been widelyrecognized as an effective strategy to leverage the extantequity of the parent-brand. Most findings indicate that high(vs. low) fit extensions are more successful and more favor-ably impact the parent-brand. In real settings, however, thereexist many successful low-fit extensions, especially in East-ern cultures, suggesting that while the findings for high-fitextensions are consistent with observations in the marketplace, the unfavorable evaluations of low-fit extensions areless defensible. In this research, in two studies, we identifyfactors that result in successful low-fit extensions in Easternand Western cultures. We implicate the type of extensioninformation (attribute vs. benefit) as a determinant factor ofthe success of low-fit extensions and suggest that the differ-ences in context dependence (the degree to which the con-text is incorporated into judgments) of Eastern and Westernconsumers impact low-fit extension success. Our researchextends the current understanding of low-fit extension suc-cess and provides guidance to global marketers on how tocommunicate their extensions in different cultures.

Method and DataIn study 1, we investigate the hitherto unexplored relationshipbetween context-dependence and the systematic focus onattributes versus benefits. We primed context-dependence orindependence, exposed respondents to attribute or benefitinformation about a product, and measured recall. Context-dependence resulted in reliance on information-type as thecontext, such that exposure to benefit-information led togreater recall of benefits, and exposure to attribute-informa-tion led to greater recall of attributes. In contrast, context-

independence led to a focus on attributes regardless of infor-mation-type provided. In study 2, using participant samplesfrom two countries (India and the United States), we exam-ined the implications of context-dependence and information-type on extension effectiveness and the consequent impact onthe parent brand. Results showed that for Westerners, who arecontext-independent, only extension-fit mattered, such thatthey evaluated the high- (vs. low-) fit extension more favor-ably regardless of the extension information provided. ForEasterners, who are context-dependent, information-type andextension-fit both mattered. When Easterners saw attribute-information, high (vs. low) fit extensions led to favorable (vs.unfavorable) evaluations of the extension and the parentbrand. When they saw benefit-information, high (vs. low) fitextensions led to favorable (vs. unfavorable) evaluations ofthe extension and the parent brand regardless of extension-fit.

Summary of FindingsWe implicate the type of brand extension information (basedon attributes vs. benefits) as an important factor that impactsbrand extension effectiveness in different cultures and sug-gest that the differences in the extent of context dependence(the degree to which the context is incorporated into judg-ments) of Eastern and Western consumers impacts the effec-tiveness of low-fit extensions. Our research aims to extendthe current understanding of factors that impact low-fit exten-sion success and provide guidance to global marketers onhow to communicate their extensions in different cultures.

Key ContributionsThis research aims to make significant contributions to theliterature on cross-culture differences, brand extension andfeedback effects, and provides a template to global mar-

Cross-Cultural Success of Low-Fit BrandExtensions: The Impact of InformationTypePragya Mathur, Baruch College, City University of New York

Keywords: cross-cultural psychology, brand, brand extension, information

EXTENDED ABSTRACT

For further information contact: Pragya Mathur, Assistant Professor, Baruch College, City University of New York (e-mail: [email protected]).



keters on how to enhance the effectiveness of their low fitextensions in different cultures. We develop a frameworkbased on context-dependence to understand the conditionsunder which low-fit extensions can be effective. In addition,we also contribute to research on the persuasive effects ofthe type of information by examining the effects of attributeversus benefit information in the context of the cross-cul-tural and brand extension literature. Our research also pro-vides additional insights on when and how parent brandevaluations decline in the face of brand extension activity.

Our findings are unique in that we identify a condition wheneven positively valenced information about an extensioncould lead to dilution effects. As our findings show, provid-ing benefit information may help low-fit extensions in East-ern cultures, while a planned third study aims to show thatWestern consumers can be primed to be context dependentthrough communication strategies, and thus, may respondfavorably to low-fit extensions.


Research QuestionResearchers and practitioners alike are interested in the con-sequences of switching costs because they provide insightsinto how customers respond towards relationship marketingactivities. A condition that largely has been neglected in pre-vious research is the role of the cultural context switchingcosts are generated in and exert their influence on customers,although researchers have long suggested that customers’behavior and reactions strongly depend on the cultural con-text this behavior is embedded in. Findings about the differ-ential influence of switching costs on customers’ reactionshave important implications for firms operating in inter-national markets, because they indicate whether and to whatextent they should build up switching costs in a particularmarket and what kind of switching costs should be appliedin different countries. A primary reason for the fact that pre-vious studies have not investigated the moderating effect ofthe cultural context on switching costs effects is the difficul-ties involved with a study design that requires varianceacross cultures, which cannot be assessed in studies in asingle country. Therefore, we perform a meta-analysis thataccumulates findings from 184 independent samples col-lected in 25 countries, providing a unique opportunity toexamine the moderating role of culture on the consequencesof switching costs.

Method and DataThis meta-analysis includes all empirical studies that meas-ure buyers’ perceived switching costs and provide estimateson these consequences: positive word-of-mouth (WOM),negative word-of-mouth, affective loyalty, cognitive loyalty,behavioral loyalty, and switching. We identified 184 inde-pendent samples that reported on one or more consequencesof perceived switching costs. We use a hierarchical linear

model estimation procedure (HLM) to test for the moderat-ing effects of cultural dimensions as suggested by Hofstedeon the influence of switching costs on their consequences.

Summary of FindingsWhile the effect of switching costs on positive word-of-mouth is neither moderated by individualism nor uncer-tainty avoidance, these cultural dimensions moderate theeffect of switching costs on negative WOM: negativeWOM decreases with increasing individualism and uncer-tainty avoidance. As for behavioral loyalty, we find thatindividualism decreases the influence of switching costs onbehavioral loyalty, but uncertainty avoidance does not haveany effect. Increased power distance moderates the effectof switching costs on cognitive loyalty: with increasingpower distance, the influence of switching costs on cogni-tive loyalty increases. We find that masculinity moderatesthe effect of switching costs on affective loyalty; while theeffect on affective loyalty does barely change, the influ-ence on other non-affective variables increases. As for theinfluence of switching cost types, we found that the influ-ence of switching costs on consequences decreases forother switching costs types that are not merely monetary.We were suggesting an increase for monetary switchingcosts types, but this effect remains rather stable. Masculin-ity increases the influence of non-monetary switching costson their consequences.

Key ContributionsThe key contributions of this study provide implications forresearch and practice:

1. Switching costs have differential influence on customersin distinct countries.

Customer Responses to Switching Costs:The Moderating Influence of CultureMartin Eisend, European University ViadrinaDoreén Pick, Freie Universitaet

Keywords: switching costs, culture, relationship marketing, meta-analysis

EXTENDED ABSTRACT

For further information contact: Martin Eisend, Professor, European University Viadrina (e-mail: [email protected]).



2. The effect of switching costs on behavioral loyalty isweakened in individualistic countries such as the US orUK. Thus, for firms in such countries it is more difficultto motivate customers to stay in the current relationship.

3. Switching costs effects on positive WOM are not culture-bound. Hence, programs motivating positive customerWOM can be adapted from countries where the firm wassuccessful in the past.

4. Effects on negative WOM are stronger in low uncertaintyavoidance countries. Thus, switching costs lead to morenegative WOM in countries such as China.

5. Non-monetary switching costs are more effective in mascu-line countries, while monetary switching costs outweighother switching costs types in individualistic countries.

These findings extend previous work on the consequences ofswitching costs and contribute to the research stream on theinfluence of culture on customer behavior. The insights pro-vide important implications for practitioners, because theyindicate how marketing measures such as loyalty programsthat intend to increase switching costs have differentialinfluence in different markets.


Research QuestionWe seek to provide a more comprehensive understanding ofpreferences for domestic products and shed additional lighton prior academic studies that mostly concentrated onexploring moral beliefs concerning purchasing goods fromabroad. Based on a distinction among ingroup favoritismand outgroup denigration, we develop a concept of domesticfavoritism, namely, a preferential treatment of domesticproducts manifested by perceived closeness and the suitabil-ity of these products. We investigate the relative explanatorypower of this new, ingroup based construct comparing it toconsumer ethnocentrism and national identification con-structs.

Method and DataIn Study 1, in line with established scale development pro-cedures (e.g., Churchill 1979; DeVellis 2003; Netemeyer,Bearden, and Sharma 2003), we construct the domesticfavoritism scale, which is then validated by experts as wellas a first convenience consumer sample (233 adult con-sumers in Lithuania), and establish scale convergent validityusing confirmatory factor analysis and a stepwise procedurewith LISREL 9.1.

In Study 2, we assess the stability of the domestic favoritismscale on an independent sample (representative 267 adultconsumers sample in the United Kingdom). We examine theempirical relationships between the new scale and existingscales in the proposed research model and test our hypothe-

ses by estimating a structural equation model with LISREL9.1 (Jöreskog and Sörbom 2007).

In Study 3 we replicate the findings from Study 2 and extendthe impact of domestic favoritism into additional outcomevariables using representative consumer panel data from 283adult consumers in Lithuania and structural equation model-ing (LISREL 9.1).

Summary of FindingsBased on social identity and construal level theories, theauthors propose and validate a new psychometric domesticfavoritism measure. Three studies demonstrate that domesticfavoritism is distinct from consumer ethnocentrism andnational identification. Empirical evidence is provided thatshows that domestic favoritism has an independent andimportant influence on domestic product quality judgments,willingness to buy as well as pay more for domestic products.Research indicates that individuals scoring high on ingroupfavoritism cannot be automatically assumed to also scorehigh on outgroup denigration. Consumers’ positive attitudestowards domestic products can coexist with positive attitudestowards foreign products. Domestic favoritism has greaterexplanatory power in predicting domestic product purchasesand evaluations than either consumer ethnocentrism ornational identification. From a managerial point of view, anexamination of domestic favoritism can provide at least apartial explanation as to why international and foreign brandsfail to establish stronger positions in domestic markets.

Love Yourself and Like the Others: WhyDomestic Favoritism Is Different fromConsumer EthnocentrismJustina Gineikienė, ISM University of Management and EconomicsBodo B. Schlegelmilch, WU Executive Academy, Vienna University of Economics and

BusinessViltė Auruškevičienė, ISM University of Management and Economics

Keywords: domestic favoritism, psychological closeness, consumer ethnocentrism

EXTENDED ABSTRACT

For further information contact: Justina Gineikienė, ISM University of Management and Economics (e-mail: [email protected]).



Key ContributionsThe intended contribution is threefold. From the theoreticalside, we provide insights showing that additional con-structs might be important for domestic product prefer-ences. In terms of a methodological contribution, we offera new psychometric measure of domestic favoritism thatmight assist researchers interested in ingroup bias indomestic and international markets. Finally, from a mana-gerial point of view, an examination of domestic favoritismcan provide at least a partial explanation as to why global

and foreign brands fail to establish stronger positions indomestic markets and what additional forces drive con-sumer behavior.

AcknowledgmentsThis research was funded by the European Union StructuralFunds project ”Postdoctoral Fellowship Implementation inLithuania.”


Research QuestionIn recent years, a growing body of research has focused onthe relationships involving market orientation and its driversin various country contexts (e.g., Bhuian, 1998; Burgess andNyajeka, 2006; Cadogan et al., 2001). However, these find-ings have often been mixed. In this study, we suggest that theconflicting findings pertaining to the drivers of market ori-entation can be explained by the national cultural values.Considerable research shows that national culture is consid-ered a major driver of organizational culture and the result-ing perceptions and behaviors of employees in organizations(Hofstede 2001; Schwartz 1994). In efforts to address thisimportant issue that has attracted limited attention in theextant market orientation literature, we first develop a con-ceptual framework based on Kirca and Hult (2009) to pro-pose a set of hypotheses pertaining to the contingent natureof relationships involving market orientation and itsantecedents.

Method and DataWe test our predictions using meta-analytic research techniques.

Summary and FindingsOur meta-analytic approach helps resolve some of the pre-vious conflicting findings pertaining to the relationshipsinvolving market orientation and its antecedents. The find-ings indicate that the often-cited effects of senior manage-ment factors (e.g., top management emphasis), interde-partmental dynamics (e.g., interdepartmental conflict),and organizational systems (e.g., centralization, formal-ization, reward systems) on market orientation are contextdependent.

Key ContributionsOrganizations and employees derive their values and behav-iors at least partially from their national culture. Therefore,we provide evidence that the implementation of market ori-entation across nations is a function of the national culturalenvironment in which firms operate. As such, the presentstudy provides specific guidelines for researchers and man-agers in implementing market orientation in diverse countrymarkets.


National Culture Versus OrganizationalCulture: An Empirical Assessment of theImplementation of Market OrientationAcross NationsAhmet H. Kirca, Michigan State University

Keywords: market orientation, global marketing strategy, meta-analysis

EXTENDED ABSTRACT

For further information contact: Ahmet H. Kirca, Marketing Department, Michigan State University (e-mail: [email protected]).


Research QuestionOur aim is to investigate potential multidimensionality ofcustomer orientation (CO) construct and reveal the specificperformance implications of its distinctive dimensions onthe firm performance in the context of developed and emerg-ing markets. We focus on the following research question:Does adopting a multidimensional approach help understandthe contradictory findings on CO-performance link in extantliterature? Can it help to explain the differences between thedeveloped and emerging economies?

Method and DataTwo data sets were collected by a web-based survey targetedat the top management of Finnish/Russian firms. TheFinnish data was collected in Fall 2012, yielding an n of 953;the Russian data was collected in the following year with ann of 313. The CO scale was adapted from a number of well-established studies (Narver & Slater, 1990; Narver, Slater &MacLachlan, 2004; Deshpande et al., 1993) that allowed toinclude both reactive and proactive elements of customerorientation.

We use a sequence of multivariate methods to test for relia-bility, validity and invariance of our data. EFA and LISRELwere applied to analyze the data and test it for validity. Afterrefining the measurement model, regression analysis basedon summated scales was conducted to evaluate the perform-

ance implications as well as the relative role of each dimen-sion in defining business performance.

Summary of FindingsThree dimensions of CO were revealed based on the resultsof EFA, including strategy and values dimension, proactiveactivities and monitoring processes. Later confirmation wasprovided by testing the factorial structure using LISREL. Ina subsequent regression analysis the distinct dimensions ofCO were found to explain 8% and 13% of the performancevariation in the Finnish and Russian data, respectively (FIN:R2 = 0.08, RUS: R2 = 0.13). This result is in line with pre-vious research that has shown that MO accounts for about12% of the business performance explained variance (Cano,Carrilat & Jaramillo, 2004).

The impact of the three CO dimensions across the countrieshas been different. In the Finnish data, all dimensions showa significant relationship with business performance, thisrelationship being strongest for customer-oriented strategy.On the contrary, in the Russian data, only customer-orientedactivities have a significant impact on performance.

Key ContributionsOur results confirm a multidimensional nature of CO,including dimensions of strategy and values, proactiveactivities, and monitoring processes. Our results demon-

Does Listening to the Customer Pay Off?Customer Orientation–Performance Linksin Developed Versus Emerging MarketsJohanna Frösén, St. Petersburg State UniversityMaria M. Smirnova, St. Petersburg State UniversityAlexander Rozhkov, National Research UniversityHenrikki Tikkanen, Aalto University School of BusinessVera Rebiazina, National Research University

Keywords: customer orientation, multdimensionality, firm performance, developed vs. emerging markets

EXTENDED ABSTRACT

For further information contact: Maria M. Smirnova, Associate Professor, Graduate School of Management, St. Petersburg State University (e-mail:[email protected]).



strate that distinct dimensions operate differently in distinctmarkets. More specifically, only proactive activities showsignificant impact on performance in emerging markets,while all dimensions and especially strategy do so in devel-oped markets. Thus, our results support the assumption on aneed for proactive CO in the context of emerging economy(Sheth, 2011; Burgess and Steenkamp, 2006)—indeed, inour sample of Russian firms this dimension is the only onesignificantly influencing firm performance. Farley andDeshpande (2006) predicted that CO will become a centralforce in the Russian markets, replacing previously dominat-

ing producer orientation. Still, after more than 20 years oftransition not all the dimensions of CO have equally devel-oped to reach comparable level and impact on performancewith a developed economy, here exemplified by Finland.However, overall, CO is indeed found to stronger impact onbusiness performance in emerging markets. In developedmarkets CO may have become a cost of competing (Kumar,Jones, Venkatesan & Leone, 2011), while in emerging mar-kets this is a source of potential growth.


Research QuestionWe attempt to answer whether (1) there is a differencebetween retrieving memory by using recall or false recall ofbrands in an interactive and imagery-rich environment suchas advergaming, and (2) there are differences in memory inthe same context if the languages of proficiency are based onthe same script (e.g. alphabetic/alphabetic such as Spanish/English) vs. cross-script (e.g. logographic/alphabetic such asChinese/English).

Method and DataA series of international experiments addressed memory ofbrand placements in advergames—via correct and falserecall—across groups of bilinguals from three countries.Three sports games with different characteristics and pacewere selected for the study. Convenience samples of mixedgender were used. The entire sample for the experimentincluded 300 bilingual participants from China, Mexico andSouth Korea.

Summary of FindingsOur study contributes by demonstrating that due to theadvergames’ innate characteristics such as interactivity and

an imagery rich environment, advergames may also increasefalse memories. Moreover, we found that not all advergameplayers develop false memories in similar manner. Specifi-cally, our findings supported the notion that advergamememory from second language proficient and non-proficientgroups differs. We found that the second language proficientgroups were more likely to create false memories in theinteractive environment of advergaming.

Key ContributionOur most salient finding revealed advergame interactivityincreased false memory more pronouncedly in the proficientgroups (“experts”), supporting the notion of increased falserecall as a result of feelings of accountability that expertsnaturally experience. This finding stresses the significanceof assessing not only correct recall but also false recall infuture work assessing brand memory.


(Un)Truth in Bilingual Consumer Recall ofBrands in Advergames: A Three-CountryComparisonMonica D. Hernandez, Texas A&M University–Corpus ChristiMichael S. Minor, University of Texas–Pan American

Keywords: false recall, bilingual consumer, advergames, cross-country comparison

EXTENDED ABSTRACT

For further information contact: Monica D. Hernandez, Associate Professor of Marketing, Texas A&M University–Corpus Christi (e-mail: [email protected]).


Research QuestionOver the past decade, Asian economies have become a majorgrowth sector for the luxury goods industry. Many luxurybrands including LVMH, Gucci and Hermes have beenhighly successful in penetrating Asian markets. However,brands such as Prada and Mulberry have struggled to estab-lish themselves in Asia (Butt and Roberts 2014; Osborn2012). Analysts have ascribed the underperformance of lux-ury brands mainly to factors originating from the organiza-tion side such as over-expectations, and treating many Asianmarkets as homogenous (Financial Times 2014). How a lux-ury brand can profit from these rapidly growing and highlycompetitive markets represents an important question(Shukla 2012; Hennigs et al. 2013). Researchers have estab-lished that the attempts to explain the social behavior of con-sumers in one culture based on another culture would beinadequate due to differences in the psychology of consump-tion and value associations (Belk 1999; Sheth et al. 1991;Sharma 2010). With regards to Asian consumers and statusconsumption, the evidence on the underlying value percep-tion that drives luxury consumption is largely anecdotal(Chadha and Husband 2005). As a consequence, the insightson the changing effects of value perceptions on consumers indifferent Asian markets are inconclusive, and are highlightedas a substantial research gap by several authors (e.g.,Berthon et al. 2009; Hennigs et al. 2012; Shukla 2012; Wied-mann et al. 2009).

This study, therefore, examines the constituent value percep-tions that drive luxury purchase intentions among the largestand prominently growing Asian markets, namely, China,India and Indonesia. Researchers have attempted to concep-tualize constituent luxury value perceptions through variouslenses, including, brand luxury index (Vigneron & Johnson2004), consumption values (Hennigs et al. 2012; Wiedmannet al. 2009), co-creation (Shukla & Purani 2012; Tynan et al.2010) and impression management (Shukla 2012). Berthonet al. (2009) suggest that in order to understand luxury val-ues, it is essential to capture the full dimensionality of therelationships among people, products, and brands. Follow-ing Karl Popper’s “three worlds” hypothesis, Berthon et al.(2009) conceptualize luxury brands with three distinctvalue-based dimensions: functional, experiential and sym-bolic. The functional dimension relates to the materialembodiment which reflects in physical manifestations suchas quality of material and craftsmanship. The experientialdimension is associated with subjectivity, and is idiosyn-cratic as it differs from person to person. It gets reflectedthrough sensations, feelings, cognitions and behavioralintentions aroused by brand-related stimuli such as logo,packaging, advertisements and environment. The symbolicdimension gets reflected in the social signals which are con-structed through the narrative associated with the brand’smeaning, myth, stories and consumer’s own wealth, prestigeand social status.

Marketing Luxury Brands Across AsianMarkets: An Investigation of ConsumerLuxury Value Perceptions in China, India,and Indonesia Paurav Shukla, Glasgow Caledonian UniversityJaywant Singh, Kingston UniversityMadhumita Banerjee, American University of Sharjah

Keywords: luxury, value perceptions, Asian consumers, cross-national comparison, structural equation modelling

EXTENDED ABSTRACT

For further information contact: Paurav Shukla, Professor of Luxury Brand Marketing, Glasgow Caledonian University (e-mail: [email protected]).



In this study, we extend the three-component model pro-posed by Berthon et al. (2009) by including two specificsub-dimensions for symbolic value. Based on the work byTynan et al. (2010) and Shukla and Purani (2012), we positthat symbolic value is driven by self-directed and other-directed symbolisms. This is because luxury goods are usedby many people to feel good about themselves (Shukla andPurani 2012; Wiedmann et al. 2009) and at the same timethey possess a desirability that provides the owner with aperceived status through its signals (Hennigs et al. 2012).

Method and DataA survey of actual luxury consumers was used to test thehypotheses. First, we developed a questionnaire based onexisting scales. The conceptual and functional equivalencefor all constructs was assessed subjectively by the multi-cultural, multi-national and multi-institutional research teammembers followed by expert evaluation of the questionnaireby two executives and two academics working in the field ofluxury marketing in China and India. A pilot test was carriedout (n = 20 for each market) to identify any unclear or diffi-cult to understand questions. The questionnaire was distrib-uted in Shanghai and Beijing in China; Mumbai and Banga-lore in India and Jakarta in Indonesia, as each of these citiesare major hubs of luxury stores in the respective countries.In order to avoid response bias, the questionnaire was trans-lated in Mandarin and Bahasa Indonesia by native speakersof the language. The questionnaire was then back translatedby another native speaker in order to adhere to equivalenceof meaning. To minimize and estimate the effect of commonmethod variance, several recommended procedural and sta-tistical remedies were used as suggested by Podsakoff et al.(2003). In order to capture the views of real luxury con-sumers, the procedure for filtering the consumers was fol-lowed as suggested in extant literature by Han et al. (2010)and Shukla (2012). In total, 626 fully completed question-naires were used for the analysis. The composition of therespondents for each nationality is: China (n = 231; responserate: 41.03%; Mage = 27.3 years; female = 51.5%), India (n = 190; response rate: 41.44%; Mage = 24.37 years; female = 62.1%) and Indonesia (n = 205; response rate:43.94%; Mage = 32.8 years; female = 65.1%).

Summary of FindingsThe analysis was carried out using LISREL 8.8. Invariancewas measured following the procedure developed bySteenkamp and Baumgartner (1998). Full configural andmetric invariance, and partial scalar invariance, were

achieved. The results show that the constituent value percep-tions driving these consumers to purchase luxury goods dif-fer significantly across the three countries studied in ourresearch. In India, the construct of other directed symbolismis significantly related to luxury value perceptions, indicat-ing a demonstration effect on luxury brand consumption.Luxury value perception of the Indonesian customers, on theother hand, is influenced by the self-directed symbolism ofluxury brands. Functional value perception has a significantimpact on luxury value perceptions across all three countriesin the study.

Key ContributionsThis study makes the following theoretical and managerialcontributions. First, this study empirically tests and extendsBerthon et al. (2009)’s three component model of luxury valueperceptions, and thereby enhances our understanding of theconstituent luxury value perceptions. A novel approach here isthe development of symbolic value as a bi-dimensional con-cept consisting of other-directed and self-directed symbol-ism. The benefit of this distinction of symbolic value percep-tion is proven important as other-directed symbolism is asignificant influencer for Indian consumers, while self-directed symbolism is highly influential for the Indonesianconsumers. This findingoffers insights to managers as to howa luxury firm can profit from customizing the constituentvalue perceptions as a differentiator in their marketingstrategy. Moreover, the results also offer an opportunity tostandardize luxury marketing campaigns, as functional valueis observed to be significant across all markets.

The study examined the constituent luxury value perceptionsin the Asian consumer context. Overall, the theoretical andpractical contributions make this study important to bothresearchers and managers. Previous studies have largelytreated Asian consumers as a homogenous entity, and thismisconception has often spilled over to marketing practiceresulting in costly mistakes by several luxury brands. Thefindings of this study demonstrate that Asian consumersvary in their value perceptions of luxury goods. Asia is a vastcontinent, consisting of several cultures and subcultures, andconsequently poses significant challenges to the marketersof luxury products. Thus, the study provides insights into theconstituent luxury value perceptions of Asian consumers,and by doing so, enriches knowledge in the domains of valueperceptions and behavior of Asian consumers.


Part E Global and Cross-Cultural...

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