Brands as Signals: A Cross-Country Validation Study
Abstract
This article tests how well the information economics view of brand equity explains consumer brand choice in countries that represent different cultural dimensions. In this empirical analysis, the authors use survey and experimental data on orange juice and personal computers collected from respondents in Brazil, Germany, India, Japan, Spain, Turkey, and the United States. The results provide strong empirical evidence across countries for the role of brands as signals of product positions. In addition, the positive effect of brand credibility on choice is greater for consumers who rate high on either collectivism or uncertainty avoidance. Credible brands provide more value to collectivist consumers because such consumers perceive these brands as being of higher quality (i.e., reinforcing group identity). Credible brands provide more value to high-uncertainty-avoidance consumers because such brands have lower perceived risk and information costs.
Get full access to this article
View all access and purchase options for this article.
References
Aaker David A. (1991), Managing Brand Equity. New York: The Free Press.
Aaker Jennifer L., and Maheswaran Durairaj (1997), “The Effect of Cultural Orientation on Persuasion,” Journal of Consumer Research, 24 (4), 315–28.
Adler N. J. (1983), “Cross-Cultural Management Research: The Ostrich and the Trend,” Academy of Management Review, 8 (2), 226–32.
Alden Dana L., Steenkamp Jan-Benedict E.M., and Batra Rajeev (1999), “Brand Positioning Through Advertising in Asia, North America, and Europe: The Role of Global Consumer Culture,” Journal of Marketing, 63 (January), 75–87.
Anderson J., and Gerbing D. (1988), “Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach,” Psychological Bulletin, 103 (3), 411–23.
Bristow Dennis N., and Asquith Jo Ann L. (1999), “What's in a Name? An Intra-Cultural Investigation of Hispanic and Anglo Consumer Preferences and the Importance of Brand Name,” Journal of Product and Brand Management, 8 (3), 185–97.
Byrne Barbara M. (2001), Structural Equation Modeling with Amos: Basic Concepts, Applications, and Programming, 2d ed. Mahwah, NJ: Lawrence Erlbaum Associates.
Cray David, and Mallory Geoffrey R. (1998), Making Sense of Managing Culture. London: International Thomson Business Press.
Dawar Niraj, and Parker Philip (1994), “Marketing Universals: Consumers' Use of Brand Name, Price, Physical Appearance, and Retailer Reputation as Signals of Product Quality,” Journal of Marketing, 58 (April), 81–96.
Dawar Niraj, and Parker Philip, and Price Lydia M., (1996), “A Cross-Cultural Study of Interpersonal Information Exchange,” Journal of International Business Studies, 27 (3), 497–517.
Douglas S.P., and Craig C.S. (1997), “The Changing Dynamic of Consumer Behavior: Implications for Cross-Cultural Research,” International Journal of Research in Marketing, 14 (4), 379–95.
Erdem Tülin, and Swait Joffre (1998), “Brand Equity as a Signaling Phenomenon,” Journal of Consumer Psychology, 7 (April), 131–57.
Erdem Tülin, and Swait Joffre (2004), “Brand Credibility and Its Role in Brand Choice and Consideration,” Journal of Consumer Research, 31 (1), 191–99.
Erdem Tülin, and Swait Joffre, and Louviere Jordan (2002), “The Impact of Brand Credibility on Consumer Price Sensitivity,” International Journal of Research in Marketing, 19 (1), 1–19.
Gregory Gary D., Munch James M., and Peterson Mark (2002), “Attitude Functions in Consumer Research: Comparing Value-Attitude Relations in Individualist and Collectivist Cultures,” Journal of Business Research, 55 (11), 933–45.
Gurhan-Canli Zeynep, and Maheswaran Durairaj (2000), “Cultural Variations in Country of Origin Effects,” Journal of Marketing Research, 37 (August), 309–317.
Herbig Paul, and Milewicz John (1995), “The Relationship of Reputation and Credibility to Brand Success,” Journal of Consumer Marketing, 14 (4), 5–10.
Hofstede Geert (1980), Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage Publications.
Hofstede Geert (1984), “The Cultural Relativity of the Quality of Life Concept,” The Academy of Management Review, 9 (3), 389–99.
Hofstede Geert (2003), Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, 2d ed. Thousand Oaks, CA: Sage Publications.
Hofstede Geert, and Bond Michael Harris (1984), “Hofstede's Cultural Dimensions: An Independent Validation Using Rokeach's Value Survey,” Journal of Cross Cultural Psychology, 15 (4), 417–33.
Inkeles Alex (1960), “Industrial Man: The Relation of Status to Experience, Perception, and Value,” American Journal of Sociology, 66, 1–31.
Johansson J.K., Ronkainen I.A., and Czinkota M.R. (1994), “Negative Country-of-Origin Effects: The Case of the New Russia,” Journal of International Business Studies, 25 (10), 157–76.
Keller K. L. (2002), Strategic Brand Management: Building, Measuring and Managing Brand Equity, 2d ed. Upper Saddle River, NJ: Prentice Hall.
Klein Benjamin, and Leffler Keith B. (1981), “The Role of Market Forces in Assuring Contractual Performance,” Journal of Political Economy, 89 (3), 615–39.
Kotler Philip (1997), Marketing Management, 7th ed. Englewood Cliffs, NJ: Prentice Hall.
Lee C., and Green R.T. (1991), “Cross-Cultural Examination of the Fishbein Behavioral Intentions Model,” Journal of International Business Studies, 22 (2), 293–305.
Lynn Michael, Zinkhan George M., and Harris Judy (1993), “Consumer Tipping: A Cross-Country Study,” Journal of Consumer Research, 20 (3), 478–89.
Maxwell Sarah (2001), “An Expanded Price/Brand Effect Model: A Demonstration of Heterogeneity in Global Consumption,” International Marketing Review, 18 (3), 325–44.
McFadden D., and Train K. (2000), “Mixed MNL Models for Discrete Response,” Journal of Applied Econometrics, 15 (5), 447–70.
McGowan Karen M., and Sternquist Brenda J. (1998), “Dimensions of Price as a Marketing Universal: A Comparison of Japanese and U.S. Consumers,” Journal of International Marketing, 6 (4), 49–66.
Money Bruce R., Gilly Mary C., and Graham John L. (1998), “Explorations of National Culture and Word-of-Mouth Referral Behavior in the Purchase of Industrial Services in the United States and Japan,” Journal of Marketing, 62 (October), 76–78.
Montgomery Cynthia A., and Wernerfelt Birger (1992), “Risk Reduction and Umbrella Branding,” Journal of Business, 65 (1), 31–51.
Nicholls J.A.F., Roslow S., and Dublish S. (1997), “Time and Companionship: Key Factors in Hispanic Shopping Behavior,” Journal of Consumer Marketing, 14 (2-3), 194–205.
Rao Akshay, and Bergen Mark (1992), “Price Premium Variations as a Consequence of Buyers' Lack of Information,” Journal of Consumer Research, 19 (3), 412–24.
Rao Akshay, and Ruekkert Robert W. (1994), “Brand Alliances as Signals of Product Quality,” Sloan Management Review, 36 (1), 87–97.
Robinson Chris (1996), “Asian Culture: The Marketing Consequences,” Journal of the Market Research Society, 38 (1), 55–63.
Roth A.E., Prasnikar V., Okuno-Fujiwara M., and Zamir S. (1991), “Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh and Tokyo: An Experimental Study,” The American Economic Review, 81 (5), 1068–1095.
Roth Martin S. (1995), “The Effects of Culture and Socioeconomics on the Performance of Global Image Strategies,” Journal of Marketing Research, 32 (May), 163–76.
Sekaran U. (1983), “Methodological and Theoretical Issues and Advancements in Cross-Cultural Research,” Journal of International Business Studies, 14 (2), 61–73.
Shimp Terence A., and Bearden William O. (1982), “The Use of Extrinsic Cues to Facilitate Product Adoption,” Journal of Marketing Research, 19 (May), 229–40.
Spence Michael (1974), Market Signaling: Informational Transfer in Hiring and Related Screening Processes. Cambridge, MA: Harvard University Press.
Steenkamp Jan-Benedict E.M., Batra Rajeev, and Alden Dana L. (2003), “How Perceived Brand Globalness Creates Brand Value,” Journal of International Business Studies, 34 (1), 53–65.
Steenkamp Jan-Benedict E.M., and Baumgartner Hans (1998), “Assessing Measurement Invariance in Cross-National, Consumer Research,” Journal of Consumer Research, 25 (3), 78–90.
Steenkamp Jan-Benedict E.M., ter Hofstede Frenkel, and Wedel Michel (1999), “A Cross-National Investigation into the Individual and National Cultural Antecedents of Consumer Innovativeness,” Journal of Marketing, 63 (April), 55–69.
Swait Joffre, and Louviere Jordan (1993), “The Role of the Scale Parameter in the Estimation and Comparison of Multinomial Logit Models,” Journal of Marketing Research, 30 (August), 305–314.
Triandis Harry C. (1995), Individualism and Collectivism. Boulder, CO: Westview Press.
Triandis Harry C., and Gelfand Michele J. (1998), “Converging Measurement of Horizontal and Vertical Individualism and Collectivism,” Journal of Personality and Social Psychology, 74 (1), 118–29.
Trompenaars A., and Hampden-Turner C. (1997), Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: N. Brealey Publishers.
Verhage B.J., Yavas U., and Green R.T. (1991), “Perceived Risk: A Cross-Cultural Phenomenon,” International Journal of Research in Marketing, 7 (4), 297–303.
Voich Dan (1995), Comparative Empirical Analysis of Cultural Values and Perceptions of Political Economy Issues. Westport, CT: Praeger.
Wernerfelt Birger (1988), “Umbrella Branding as a Signal of New Product Quality: An Example of Signaling by Posting a Bond,” Rand Journal of Economics, 19 (Autumn), 458–66.
Zeithaml Valarie (1988), “A Consumer's Perceptions of Price, Quality, and Value: A Means–End Model and Synthesis of Evidence,” Journal of Marketing, 52 (July), 2–22.
Zhou Kevin Z., Su Chenting, and Bao Yeqing (2002), “A Paradox of Price-Quality and Market Efficiency: A Comparative Study of the U.S. and China Markets,” International Journal of Research in Marketing, 19 (4), 349–64.
Cite article
Cite article
Cite article
OR
Download to reference manager
If you have citation software installed, you can download article citation data to the citation manager of your choice
Information, rights and permissions
Information
Published In
Article first published: January 2006
Issue published: January 2006
Authors
Metrics and citations
Metrics
Article usage*
Total views and downloads: 3725
*Article usage tracking started in December 2016
Altmetric
See the impact this article is making through the number of times it’s been read, and the Altmetric Score.
Learn more about the Altmetric Scores
Articles citing this one
Receive email alerts when this article is cited
Web of Science: 289 view articles Opens in new tab
Crossref: 174
-
NPS spillover in brand extensions: An empirical study
-
Live Streaming Use and International Seller Sales Performance: An Info...
-
Factors affecting brand choice behavior of laptop purchases of univers...
-
Checkout button and online consumer impulse-buying behavior in social ...
-
How Can Companies Recover from Liability-Invoking Failures? Exploring ...
-
Firm positionality and strategic communication: Analyzing the value of...
-
Brand Origin Effects During Economic Declines: Evidence from an Emergi...
-
Perceived corporate social responsibility effects across nations – The...
-
Slogans With Negations’ Effect on Sustainable Luxury Brand
-
A meta-analysis of trust in mobile banking: the moderating role of cul...
-
Predicting MMA leagues’ fan involvement through its brand credibility ...
-
Cultural Drivers of Health Engagement
-
The Coalescence Effect: How a Combination of Foreign and Local Appeals...
-
A survey of online video advertising
-
Evaluating the role of technology and non-technology factors influenci...
-
Effects of in-store information quality and store credibility on consu...
-
Sustainability advertising: literature review and framework for future...
-
Can salespeople use social media to enhance brand awareness and sales ...
-
Brand clarity of local and global brands in fast-moving consumer goods...
-
A Comparative Study of High-Quality Broiler Purchase Behavior between ...
-
Perceived Omnichannel Customer Experience (OCX): Concept, measurement,...
-
New corporate social responsibility brand evaluation in a developing c...
-
The Effects of Chinese Consumers’ Brand Green Stereotypes on Purchasin...
-
Family business branding from a signaling theory perspective: an integ...
-
The role of product cues and regulatory focus in the consumers’ respon...
-
Brand Pride in Consumer–Brand Relationships: Towards a Conceptual Fram...
-
Charity Social Media Marketing and Its Influence on Charity Brand Imag...
-
Salicylic Acid as a Tolerance Inducer of Drought Stress on Sunflower G...
-
The Impact of Power Distance Belief on Consumers' Brand Preferences
-
Effects of perceived brand localness and perceived brand globalness on...
-
Exploring the impact of brand placement repetition on the effectivenes...
-
The chain coffee shop brand equity and the differences of the consumer...
-
Eliciting brand association networks: A new method using online commun...
-
Impact of perceived brand localness and globalness on brand authentici...
-
In the consumers’ eye: A mixed-method approach to understanding how VR...
-
Brand familiarity vs profit-sharing rate: which has a stronger impact ...
-
User design as a double-edged sword: exploring perceived self-improvem...
-
Consumer Stockpiling Across Cultures During the COVID-19 Pandemic
-
Brand response to environmental turbulence: A framework and propositio...
-
Battling for consumer memory: Assessing brand exclusiveness and brand ...
-
Managing a Global Retail Brand in Different Markets: Meta-Analyses of ...
-
What Grounds Our Loyalty towards “Authentic Brand Activism” of a Susta...
-
In the short-term, it is never the wrong time to certify: the mitigati...
-
The Acceptance of Halal Food Products Among Non-Muslim Consumers in In...
-
Study of water deficiency levels on ecophysiological characteristics o...
-
The impact of luxury brand status signaling, extension authenticity an...
-
Perceived ESG (Environmental, Social, Governance) and Consumers’ Respo...
-
The role of viral marketing strategies in predicting purchasing intent...
-
How online reviews and coupons affect sales and pricing: An empirical ...
-
Exploring the role of issue involvement and brand attachment in shapin...
-
Does brand credibility matter? The case of organic food products
-
A review of three decades of academic research on brand equity: A bibl...
-
Why and when is older better? The role of brand heritage and of the pr...
-
References
-
Brand identity and culture interaction in the Indian context: a ground...
-
Need for touch and online consumer decision making: the moderating rol...
-
Customer-based pop-up store equity and consumer shopping behavior
-
Augmented Reality in Retail and Its Impact on Sales
-
A Configurational Perspective on Brand Relevance in Commodity Markets
-
A Review of Culture-Bound Approaches to International Marketing and Tr...
-
Signaling green! firm ESG signals in an interconnected environment tha...
-
Brand Equity and Usage Intention Powered by Value Co-Creation: A Case ...
-
The Role of Animosity, Religiosity, and Allocentrism in Shaping Purcha...
-
“Scapegoat” for Offline Consumption: Online Review Response to Social ...
-
Digital Consumer Engagement: National Cultural Differences and Cultura...
-
Supermarket competence in emergent markets: Conceptualization, measure...
-
A SEM-NCA Approach towards Social Networks Marketing: Evaluating Consu...
-
How and when frontline employees’ resilience drives service-sales ambi...
-
Linkages Between Advertising Value Perception, Context Awareness Value...
-
The effect of online search volume on financial performance: Marketing...
-
Brand credibility and marketplace globalization: The role of perceived...
-
After-sales services, brand equity and purchasing intention to buy sec...
-
Seller marketing capability, brand reputation, and consumer journeys o...
-
Conceptualizing country-of-origin image as a country-specific advantag...
-
Hofstede's individual-level indulgence dimension: Scale development an...
-
Analyzing the effects of private-label supplier disclosure on retailer...
-
Higher education institution choice intention model: mediation effect ...
-
Endorsement of Global Product Brands by Global Corporate Brands – A Co...
-
Personality Traits Affecting Opinion Leadership Propensity in Social M...
-
Influence of consumer cosmopolitanism on purchase intention of foreign...
-
Green information quality and green brand evaluation: the moderating e...
-
Blinded by the brand: inauthentic salesperson brand attachment and its...
-
The Hidden Chain of Branded Telecommunication Services Delivery: Value...
-
How customer experience management reconciles strategy differences bet...
-
Determinants and consequences of brand credibility: a case study in th...
-
Research on the impact of Credit, Brand and Service Recovery on Online...
-
Facebook advertising, eWOM and consumer purchase intention-Evidence fr...
-
The effects of cultural distance on online brand popularity
-
It’s all about the brand: place brand credibility, place attachment, a...
-
The Interaction Effects of Online Reviews, Brand, and Price on Consume...
-
Global or local brand? Hotel selection in global travel context
-
Turning a private label of an eco-product seller into a sustainability...
-
The GNG neural network in analyzing consumer behaviour patterns: empir...
-
Price No Object!: The Impact of Power Distance Belief on Consumers’ Pr...
-
Eco-Innovations in Global Markets: The Effect of Ecological (In)Congru...
-
How CSR reputation, sustainability signals, and country-of-origin sust...
-
Do brand warmth and brand competence add value to consumers? A stereot...
-
Cause-related marketing for successful cross-border post-acquisition p...
-
A creative-mix or variety-mix fusion experience? Examining marketing s...
-
An evaluation of social media advertising for Muslim millennial parent...
-
Communicative and globalizing impacts of food labels: an Australian st...
-
Features of segmentation and positioning processes when creating an ed...
-
Digital Environment in Global Markets: Cross-Cultural Implications for...
-
Leveraging employees as spokespeople in your HR strategy: How company-...
-
The interactive effect of power distance belief and consumers’ status ...
-
Is an Airport Like any Other Mall? Identification of Passengers’ Activ...
-
Impact of celebrity endorsement on consumer buying behavior of “Elepha...
-
In Brands We Trust? A Multicategory, Multicountry Investigation of Sen...
-
Microcelebrity: The Impact of Information Source, Hotel Type, and Misl...
-
Effect of Consumers’ Personality on Store Brand Choice in Grocery Stor...
-
Family Firm Brands, Perceptions of Doing Good, and Consumer Happiness
-
Consumer Motivation for Reward Pursuit: A Culture-Based and Progress-B...
-
Impact of smartphone brand experience on brand equity
-
Gear Manufacturers as Contestants in Sports Competitions: Breeding and...
-
Managing the consumer-based brand equity process: A cross-cultural per...
-
Am I Ibiza? Measuring brand identification in the tourism context
-
Impact of vertical line extensions on brand attitudes and new extensio...
-
Brand Equity and Firm Sustainable Performance: The Mediating Role of A...
-
Company brand and customer loyalty under stakeholder management: A stu...
-
Do corporate image and reputation drive brand equity in India and Chin...
-
Online brand community practices and the construction of brand legitim...
-
A strategic approach to self-branding
-
Country-of-operation and brand images: evidence from the Chinese hotel...
-
Ritualization: A Strategic Tool to Position Brands in International Ma...
-
How Product Category Shapes Preferences toward Global and Local Brands...
-
Customer Responses to Switching Costs: A Meta-Analytic Investigation o...
-
Endorsed Sustainable Products...
-
The future of hotel chains...
-
Let Your Banner Wave? Antecedents and Performance Implications of Reta...
-
The impact of service failure on brand credibility
-
An Investigation into Consumer Search and Evaluation Behaviour: Effect...
-
The influence of social media interactions on consumer–brand relations...
-
Brand equity estimation model
-
Loyalty Programs in Emerging and Developed Markets: The Impact of Cult...
-
Culture Change and Globalization: The Unresolved Debate between Cross-...
-
Global Brand Architecture Position and Market-Based Performance: The M...
-
New Product Design: Concept, Measurement, and Consequences
-
An Extended Model of Preference Formation between Global and Local Bra...
-
The Growth of Private Label Brands: A Worldwide Phenomenon?
-
Drivers of Local Relative to Global Brand Purchases: A Contingency App...
-
How global brands create firm value: the 4V model
-
Brands as a Mean of Consumer Self-expression and Desired Personal Life...
-
An Examination of the Relationship between Services Marketing Mix and ...
-
Asymmetric Roles of Advertising and Marketing Capability in Financial ...
-
The Effects of Positive and Negative Online Customer Reviews: Do Brand...
-
The impact of destination source credibility on destination satisfacti...
-
The Long-Term Influence of Service Employee Attrition on Customer ...
-
The Interplay between Global and Local Brands: A Closer Look at Percei...
-
Assessing the Validity of Brand Equity Constructs
-
Linking CSR strategy and brand image...
-
How Top Management's Social Capital Fosters the Development of Special...
-
The Impact of Brand Quality on Shareholder Wealth
-
The Influence of Friends on Consumer Spending: The Role of Agency–Comm...
-
Costless Creation of Strong Brands by User Communities: A Potential Ch...
-
What Makes Consumers Willing to Pay a Price Premium for National Brand...
-
Measuring personal cultural orientations: scale development and valida...
-
Resistance to Brand Switching when a Radically New Brand is Introduced...
-
How Important Are Brands? A Cross-Category, Cross-Country Study
-
Alliances Between Brands and Social Causes: The Influence of Company C...
-
Cross-Cultural Differences in the Effect of Received Word-of-Mouth Ref...
-
The differential roles of brand credibility and brand prestige in cons...
-
A Conceptual Exploration of the Strategic Factors Driving New Brand En...
-
Non-local or local brands? A multi-level investigation into confidence...
-
Consumer-Based Brand Equity Conceptualisation and Measurement...
-
Signalling reputation in international online markets
-
Convergence in global markets and consumer behaviour
-
Package Design as a Communications Vehicle in Cross-Cultural Values Sh...
-
Global Brand Purchase Likelihood: A Critical Synthesis and an Integrat...
-
Flow Signals: How Patterns over Time Affect the Acceptance of Start-Up...
-
The perceived credibility of quality labels: a scale validation with r...
-
Cross-Sectional versus Longitudinal Survey Research: Concepts, Finding...
-
Comparing Structural Equation Models with Discrete Choice Experiments ...
-
Compromising the compromise effect: Brands matter
-
What Matters to Korean Products in Australia: Focus on the Country Ima...
Figures and tables
Figures & Media
Tables
View Options
Get access
Access options
If you have access to journal content via a personal subscription, university, library, employer or society, select from the options below:
loading institutional access options
AMA members can access this journal content using society membership credentials.
AMA members can access this journal content using society membership credentials.
Alternatively, view purchase options below:
Purchase 24 hour online access to view and download content.
Access journal content via a DeepDyve subscription or find out more about this option.
