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International Marketing Strategy 4FE126
PAPER 3
Instructor: Anders Pehrsson
Creating Perceived Brand Globalness Through
Advertising Cues
Adam Åstrand [email protected]
Cristina Fernández Hidalgo [email protected]
Md Abbas Ali [email protected]
Naimul Abd [email protected]
Xiaofang Zhang xiaofang199314 @gmail.com
Abstract
This paper examines changes in the perception of brand globalness when the advertising cues
are modified in order to find which advertising cues are more important in creating a
perception of a global brand. It also aims to find differences between the economic
development, product involvement, personal identification as a global or a local consumer,
and gender for these advertising cues. To achieve this, researchers first conducted an
exploratory study to construct advertising stimulus followed by a conclusive research through
conjoint analysis (CA) to find the relative importance of advertising cues. The results show
that brand slogan and brand spokesperson are the most important cues. In addition, whereas
differences are found between the consumer culture and the economic development, there are
no statistical differences in the relative importance of the cues between gender and product
involvement.
2
Table of Contents
1 Introduction 5
1.1 Delimitations 7
1.2 Report Structure 7
2 Literature review 8
2.1 Economic Development 8
2.2 Consumer Culture 8
2.3 Product Involvement 9
2.4 Gender 10
3 Framework and Hypotheses 11
3.1 Research framework 11
3.2 Hypotheses 11
4 Method 14
4.1 Exploratory Research Design 14
4.2 Conclusive Research Design 15
4.2.1 CA Model & Methodology 15
4.2.2 CA Factors and Levels 15
4.2.3 CA Presentation Method 17
4.2.4 CA Preference Measure 17
4.2.5 Sample Size and Data Collection 18
3
4.2.6 Reliability and Validity 18
4.2.7 Data Analysis 18
5 Results and Discussion 19
5.1 Focus Group Discussions 19
5.2 Conjoint Analysis Experiment 20
5.2.1 Qualification Criteria 20
5.2.2 Demographics 20
5.2.3 Consumer Culture 21
5.2.4 Reliability 21
5.2.5 Relative Importance Scores (CA Experiment) 21
5.2.6 Country Effect Hypothesis 1 22
5.2.7 Consumer Culture Effect Hypothesis 2 22
5.2.8 Product Involvement Effect Hypothesis 3 23
5.2.9 Gender Effect Hypothesis 4 23
6 Conclusions and Contributions 24
7 Limitations, Implications, and Further Research 26
7.1 Research Implications 26
7.2 Limitations and Further Research 26
8 References 27
4
1 Introduction Globalization is an important topic in international marketing context (Calvo Porral &
LevyMangin, 2015). More and more consumers worldwide are choosing between different
global brands (Schuiling & Kapferer , 2004). Globalization theory in marketing supports that
consumer needs, attitudes, symbols and behaviors are increasingly becoming similar around
the world (Taylor & Okazaki, 2015; Xie et al ., 2015; Swoboda et al ., 2012) and, therefore,
the offer is also getting standardized (Calvo Porral & LevyMangin, 2015). The effects from
globalization have led international companies to develop different branding strategies
concerning local and global markets (Talay et al., 2015). Corporations and managers view
global brands as attractive assets (Strizhakova, 2008), and globalness of a brand is not only
seen as a source of manufacturing, marketing, and R&D advantages (Kapferer, 2001; Roth,
1992; Yip, 1995) but also as a basis of high brand equity (Kapferer, 1997; Shocker et al.,
1994).
There are two ways of determining a brand’s globalness: brand’s geographic reach and
consumer perception of brand’s globalness (Taylor & Okazaki, 2015). Global brands are not
the same as multinational brands (Calvo Porral & LevyMangin, 2015; Xie et al ., 2015;
Özsomer et al ., 2012; Dimofte et al ., 2010; Sichtmann & Diamantopoulos, 2013). Talay et al .
(2015) define global brands as the ones that are available in all key markets and use
standardization approach with an integrated perspective.
Researchers consider that global brands have more advantages over the local brands (Calvo
Porral & LevyMangin, 2015; Xie et al , 2015; Swoboda et al ., 2012; Steenkamp, 2013). In
fact, better perceptions, attitudes and, even, purchase intentions have been found in cross
cultural studies regarding global brands (Dimofte et al. , 2010; Swoboda et al ., 2012;
Steenkamp, 2013). According to Davvetas et al . (2015), customers are willing to pay more
for global brands rather than local ones, which is an indicator of global brand strength.
Therefore, it is desirable for brands to be perceived as global.
While brands that operate internationally with standardized approach may be termed as
global brands, they may not necessarily be perceived by consumers as being global (Swoboda
et al. , 2012). Steenkamp et al. (2003) refers to this as Perceived Brand Globalness (PBG). It
5
implies that for a multinational brand to have the advantages of the global brands, it needs to
be perceived as a global brand by the consumers (Swoboda et al. , 2012).
To achieve PBG, Alden et al. (1999) argue that managers should use global symbols in the
name, logo, spokesperson or in the advertisement of the brand. This is because brand
attitudes are affected by a customer’s beliefs and opinions over certain subjects related to the
brand and they can be manipulated by the commercial communication. Two of these cues are
visual stimulus and two of them are verbal stimulus which means that they will deliver the
information in different ways and levels of attention (Myers & Sar, 2013). Swoboda et al .,
(2012) extend the literature by pointing out which cues affect PBG the most.
In a more recent study, De Meulenaer et al. (2015) undertook the challenge of measuring
relative importance of advertising cues in determining PBG in a High Income Market (HIM).
The results showed that advertising slogan was the most important cue. However, the
weakness of De Meulenaer et al. (2015) study is that conclusions have been drawn based on
only one market (HIM, ie., Netherlands) something which is duly pointed out in their
limitations as well. For a more robust understanding, such findings must be derived from an
aggregation of HIM and emerging markets (EM) as both present unique challenges for
brands. For instance, according to Dawar & Chattopadhyay (2002), consumers in EM have
lower familiarity with global brands due to the lack of infrastructure and resources. Therefore
consumers in EM are more likely to choose a local brand compared to a global.
We aim to address this limitation and provide a more robust perspective to this marketing
issue. In this, the paper aims to fill the gap by focusing on both an HIM (Sweden) and an
Emerging Market (EM), i.e., Pakistan, and providing an aggregate estimate of relative
importance of advertising cues in building PBG.
The purpose of this research is to find out the relative importance of advertising cues in
building PBG. In addition, this paper aims to find out how relative importance of advertising
cues varies by economic development, global consumer culture, product involvement, and
gender. Consequently, the research question that this study aims to address is:
RQ: What is the relative importance of advertising cues in achieving the perception of
globalness for a brand?
6
1.1 Delimitations
The research focuses on two markets (Sweden and Pakistan) a broader coverage of
countries could increase the generalizability. Secondly, the research covers only two products
(one each for high involvement and low involvement) a broader coverage of products could
yield more representative results as well. Finally, it focuses only on native population of each
country, as knowledge of local language is important to read the local language stimulus.
1.2 Report Structure
Introduction (Chapter 1) presents the topic, background discussion on this, the research
problem, and purpose. Literature review (Chapter 2) summarizes key theoretical
underpinnings on consumer culture, gender, economic development, and product
involvement. Conceptual framework (Chapter 3) provides a view of relationships between
various constructs and a description of hypotheses. Method (Chapter 4) then provides an
overview of research design. Results and discussion section (Chapter 5) presents qualitative
and quantitative analyses. Chapter 6 presents conclusions and contributions and Chapter 7
explains limitations, implications, and advice for further research.
7
2 Literature review
2.1 Economic Development
An Emerging Market (EM) as per Sheth (2011) is a country with high level of growth but
with low level of resources and infrastructure. Moreover, consumers in an EM differ from
those in High Income Market (HIM) in terms of heterogeneity. According to Dawar &
Chattopadhyay (2002) consumers in EM have different shopping behaviour due to their
different perspective in brand preferences and they also differentiate between local and
international brands. The source of this distinction originates from the difficulties for
international brands to enter EM due to the lack of infrastructure. Therefore, consumers have
a low familiarity of international brands compared to local brands (Sheth, 2011). According
to Burgess & Steenkamp (2006), consumers in this type of market have lower purchase
intention and are less receivable of brand message. Cui & Liu (2001) argue that there is a
difference in consumers psychographic and demographic profiles even within the EM
countries. Tanusondjaja et al. (2015) argue that infrastructure is the biggest problem of an
EM.
2.2 Consumer Culture
Culture is expanding over its traditional limits of language or countries to establish a new
global meaning (Taylor & Okazaki, 2015). The Global Consumer Culture (GCC) is
composed of these signs, symbols and values that are understood by broad numbers of
customers in the world (Akaka & Alden, 2010; Swoboda et al., 2012; Taylor & Okazaki,
2015). This cultural standardization is mainly a product of the advertising industry in which
the customers can identify themselves as global customers (Akaka & Alden, 2010; Taylor &
Okazaki, 2015). Therefore, there are two main positions when it comes to consumer culture:
global consumer culture and local consumer culture (De Meulenear et al. , 2015). For a brand
to adapt to any of them, it has to identify itself with those signs, symbols and values of the
global culture or those that belong to the local culture (Taylor & Okazaki, 2015). Moreover,
in order to understand the consumer’s orientation visavis global and local, it is important to
understand the perception that those customers have of global brands. Customers who have a
good perception of global will be more likely to accept the global culture and, therefore,
8
global products (Özsomer et al. , 2012). Also, some authors propose that the perceptions over
local and global are not so related to one particular product but to product categories
(Özsomer et al. , 2012; Calvo Porral & LevyMangin, 2015). With the exchanges between
different countries, cultures, and individuals increasing, there is a rise of an emerging global
culture (Tadmor & Tetlock, 2006; Arnett, 2002) and in turn this is giving rise to transnational
identity (Craig & Douglas, 2006) or worldminded consumers who are open to engage in
diverse cultural and international experiences (Yegˆenogˆ lu, 2005). Cleveland et al. (2011)
refer to these consumers as cosmopolitans. Strizhakova et al. (2008) have examined this in
detail by studying branded products as a passport to global citizenship and used a three point
scale to measure consumers’ Belief In Global Citizenship (BIGC) which can help identify
consumers who use global brands as a means to identify themselves as global.
2.3 Product Involvement
Consumer product involvement is defined as “perceived relevance of a product class, based
on the consumer’s inherent needs, interests, and values” (Zaichkowsky, 1985, p.345).
Vaughn (1980) classifies products into high involvement and low involvement categories
based on a variety of factors including cost, social value, consumer interest, informational
handling. High involvement products lead consumers to search more information and use a
systematic information processing strategy for making their purchase decision. In high
involvement situations, customers are drawn to verbal claims and product attributes are
relatively more important (Chaiken et al. , 1989; Johar & Sirgy, 1991 ; Garretson & Burton,
2005). This indicates that in advertising, slogan and brand name will more strongly influence
the PBG in case of high involvement products. On the other hand, the low involvement
products are more routine goods which lead consumers to use simpler decision rules
(Chaiken et al. , 1989). Lowinvolvement customers normally think less about the message
content. They give an evaluation which is based more on peripheral cues such as brand logo
and spokesperson (MeyersLevy & Malavia, 1999, Dens & De Pelsmacker, 2010). Also,
because the characteristics of the high involvement products are closely compared and
analysed, the origin of the product plays a fundamental role in consumer decision making (de
Tavares Canto Guina & de Moura Engracia Giraldi, 2014). Therefore, product involvement
categories can influence consumer PBG.
9
2.4 Gender
The perception of the brand comes from responses related to the psychology and from
functional or cognitive responses (Swoboda et al. , 2012). Some authors relate the brand
perceptions to sociodemographic variables such as gender, age, education, income and
family size (Shukla et al. , 2013). In addition, Nair & Mohandas (2012) show in their study in
India (an emerging market) that strong gender differences can be found in purchasing and
perceiving global and local brands. Shukla et al . (2013) defend that women are more
involved in purchase activities and have a higher tendency to explore brands. Yoon & Kim
(2014) add to the issue the social interactions establishing different roles for males and
females from a very young age that are later on related to different purchase behaviors.
10
3 Framework and Hypotheses
3.1 Research framework
This research studies perceived brand globalness (PBG) as a dependent variable with
advertising cues (brand name, brand logo, brand slogan, brand spokesperson, and brand
website) as independent variables. This relationship has been studied across four moderators,
i.e., economic development (HIM / Sweden and EM / Pakistan), consumer culture (Local and
Global), product involvement (Low and High), and gender (Male and Female).
Fig. 1: Research Framework
3.2 Hypotheses
Taking over the previous theory and considering the moderators of this study that can be
observed in the research framework, hypotheses are discussed hereunder.
Table 1: Hypotheses
Moderator Background Hypotheses over the advertising cues
Economic development
The perceptions and purchase intentions of global brands in EM are different from the HIM
H1a: Brand Name has different relative importance in HIM and EM
11
(Tanusondjaja et al., 2015). In EMs, consumers are more familiar with local brands than global brands due to the lack of infrastructure (Sheth, 2011)
Therefore,
H1: As a determinant of PBG,
H1b: Brand Logo has different relative importance in HIM and EM
H1c: Brand Slogan has different relative importance in HIM and EM
H1d: Brand Spokesperson has different relative importance in HIM and EM
H1e: Brand Website has different relative importance in HIM and EM
Consumer culture
Consumer culture can be related to local and global cultures and affects the perceptions and the purchase behavior. Those brands which adapt their image to their target customer culture will be more efficient (Özsomer et al. , 2012). Consumers can view branded products as a passport to global citizenship (Strizhakova et al. 2008) which leads to global thinking consumers versus local thinking consumer groups. Therefore,
H2: As a determinant of PBG,
H2a: Brand Name has different relative importance in Local and Global thinking consumers
H2b: Brand Logo has different relative importance in Local and Global
thinking consumers
H2c: Brand Slogan has different relative importance in Local and Global thinking consumers
H2d: Brand Spokesperson has different relative importance in Local and Global thinking consumers
H2e: Brand Website has different relative importance in Local and Global thinking consumers
Product involvement
Product involvement divides the products in two categories depending on the effort that the consumers put on the decisionmaking process
H3a: Brand Name has different relative importance in High
Involvement and Low Involvement product categories
12
(Chaiken et al. , 1989). High and low involvement products will determine the attentional focus of the customer when evaluating advertisements and purchasing these products (Garretson & Burton, 2005; Dens & De Pelsmacker, 2010). Therefore,
H3: As a determinant of PBG,
H3b: Brand Logo has different relative importance in High Involvement and Low Involvement product categories
H3c: Brand Slogan has different relative importance in High
Involvement and Low Involvement product categories
H3d: Brand Spokesperson has different relative importance in High
Involvement and Low Involvement product categories
H3e: Brand Website has different relative importance in High
Involvement and Low Involvement product categories
Gender Sociodemographic variables affect in different levels the PBG (Shukla et al., 2013). Gender and the social roles influence the involvement over the purchase and the products (Shukla et al., 2013; Yoon and Kim, 2014).
Therefore,
H1: As a determinant of PBG,
H4a: Brand Name has different relative importance among Males and
Females
H4b: Brand Logo has different relative importance among Males and Females
H4c: Brand Slogan has different relative importance among Males and
Females
H4d: Brand Spokesperson has different relative importance among Males and
Females
H4e: Brand Website has different relative importance among Males and
Females
13
4 Method
Research design charts out the direction of a research project in line with the purpose of the
research (Aaker et al. , 2011). Depending on the purpose, researcher may employ exploratory
or conclusive research design with latter being further divided into descriptive and causal
research designs (Malhotra, 2010). This study employs elements from both research designs.
4.1 Exploratory Research Design
Exploratory research design is aimed at gaining deep understanding into marketing issues and
opportunities (Halman, 2002). It is a good starting point in research projects where the
researcher lacks clear understanding of the situation (Malhotra, 2010). In this project,
exploratory research was used to develop clear understanding on choice of celebrities and
products for high and low involvement scenarios and balancing these choices with the
countries to be studied in later phase of the research.
The authors employed qualitative research in this phase because, according to Strauss &
Corbin (1998), it is the best means to capture consumer attitudes, motives, and behaviors in
detail. While Malhotra (2010) outlines a range of qualitative methods that can be used by a
researcher, we used focus groups, which according to Bloor et al. (2001), are the most
popular qualitative research technique. In a focus group, respondents are encouraged and
controlled to focus on a particular issue (Saunders et al., 2009). We conducted two focus
groups one with Swedish nationals and another with Pakistani nationals, each with five
participants and a focus group moderator. Two pairs of famous celebrities (one local and one
global in each pair) were presented:
1. Swedish focus group: Mikael Persbrandt and Tom Cruise (Pair 1) Andreas Wilson
and Leonardo DiCaprio (Pair 2)
2. Pakistani focus group: Hamayun Saeed and Tom Cruise (Pair 1) Shaan Shahid and
Leonardo DiCaprio (Pair 2)
Two pairs of products, based on their involvement levels, were presented:
14
1. Cookies (low involvement) and watches (high involvement) Pair 1 for both Swedish
and Pakistani focus groups
2. Soft drinks (low involvement) and mobile phones (high involvement) Pair 2 for both
Swedish and Pakistani focus groups
To aid the discussion, a presentation with pictures was shown to the participants.
Spokespersons were checked for recognition and neutrality and products were checked for
appropriateness in high or low involvement purchase situations.
4.2 Conclusive Research Design
This study employs Conjoint Analysis (CA) as the method to measure the relative importance
of advertising cues in determining PBG. CA derives importance that consumers place on
various attributes and their levels by presenting them various profiles of these attributes and
their levels (Malhotra, 2010). The assumption behind CA is that consumers evaluate various
stimuli as a bundle of attributes (Srinivasan & Park, 1997; Naude & Buttle, 2000, Carroll &
Green, 1995; Green & Krieger, 1995).
4.2.1 CA Model & Methodology
The most important consideration is to have all key attributes reflected in a study (Alpert,
1971). In this research, the advertising cues were derived from prior research. Of the three
approaches of conducting CA as per Hair (2010), traditional approach was selected because
adaptive approach is appropriate in case of large number of attributes and CBC is a
complicated approach suited for incorporating interactioneffects.
4.2.2 CA Factors and Levels
Hair (2010) stresses that measures for a CA experiment should both be communicable and
actionable. Following is a broad structure of factors and levels (Table 2).
Table 2: CA Factors and Levels
CA Factors / Attributes
Number of Levels
(NOL)
Swedish Study Pakistani Study
15
Brand Name 2 Word “Global”
Word “ SW ”
prefixed to product category name
Word “Global”
Word “ PK ”
prefixed to product category name
Brand Logo 2 Globe Symbol
Swedish Flag
Globe Symbol
Pakistani Flag
Brand Slogan 2 Mobile Phones
Sveriges bästa mobil
Best mobile phone for the whole planet
Soft Drinks
Den svenska smaken
A whole new world of taste for you
Mobile Phones
Best mobile phone for the whole planet
Soft Drinks
A whole new world of taste for you
Brand Spokesperson 2 Andreas Wilson
Leonardo DiCaprio
Shaan Shahid
Leonardo DiCaprio
Brand Website 2 Ending with .se
Ending with .com
Ending with .com
Ending with .com.pk
All factors had same number of levels (NOL) as increasing levels of one factor may
artificially increase its importance in a CA experiment ( Verlegh et al. , 2002; Krieger et al.,
1998; Orme, 1998). The minimum number of CA profiles to be tested can be derived by
subtracting number of factors (NOF) from total NOL and adding 1 (Hair, 2010). Our
minimum profile requirement was 105+1 = 6. SPSS Orthogonal Design utility (SPSS, 2015)
was used to generate a fractional factorial design (aka orthogonal array representing the main
effects). Four separate orthogonal arrays were generated: 2 countries x 2 product involvement
levels (Table 3).
16
Table 3: CA profiles for HIM (Sweden) and EM (Pakistan)
4.2.3 CA Presentation Method
The study uses fullprofile presentation method in line with Hair (2010) who points out that it
is appropriate in case of 6 or fewer factors over tradeoff or pairwise methods. Advertising
cues combinations from orthogonal array were developed into CA profiles (32 draft ads) and
presented to respondents one by one. For instance, Profile 5 from Sweden for high
involvement product category, showed a global spokesperson (Leonardo DiCaprio) with a
global logo (world symbol), local name (SE mobiles), local website address (ending in .se),
and with local slogan (Sveriges bästa mobil). Four sets of profiles were used: respondents in
each country rated 8 high involvement and 8 low involvement profiles / ads.
4.2.4 CA Preference Measure
Input data for CA can be nonmetric (rank order) or metric (rating) with latter being more
17
popular (Malhotra, 2010). This study measures CA input for PBG on 5point rating scale
adapted from Steenkamp et al . (2003).
4.2.5 Sample Size and Data Collection
CA can estimate utilities even with a single respondent (Green & Wind, 1975). Hair (2010)
mentions 50 as absolute minimum sample for a CA study. Our final sample size is 151 76
from Pakistan and 75 from Sweden. Survey is a leading method for primary data collection
(ESOMAR, 2004). Malhotra (2010) classifies surveys into: telephone, personal interviewing,
mall interviewing, and electronic interviewing through selfadministration. This study uses
selfadministered questionnaires which are an appropriate method where sample is not
located close to the researchers or is very dispersed (Saunders et al. , 2009). Webbased
sample was collected as it is fast replacing traditional methods (Pineau & Slotwiner, 2003)
and can suitable for administering fullprofile CA experiment (Orme et al ., 1998).
4.2.6 Reliability and Validity
Researchers use various approaches to assess the validity of their research instruments (Aaker
et al ., 2011). Measures for this study were derived through established theoretical
frameworks to ensure validity. Moreover, exploratory research was conducted to ensure
stimulus items were appropriate for the survey. Finally, to ensure face validity in line with
Aaker et al ., (2011), questionnaire was pretested. Based on four pretests, questionnaire flow,
content, and stimulus were revised. Moreover, the 3 point PBG scale was reduced to 1 point
scale to reduce respondent fatigue and improve completion rate. In line with Hair (2010)
recommendation of using goodnessoffit measures like Spearman’s rho or Kendall’s tau
(nonmetric) and simple Pearson (metric), we used Pearson r as a measure of reliability.
4.2.7 Data Analysis
In the qualitative phase, interviews were first transcribed and later content analyzed. In the
survey phase, data was analyzed using IBM SPSS software. SPSS is a widely used program
to analyse statistical data by university researchers specially in social sciences (Brace et al. ,
2009). For CA, SPSS Conjoint Analysis procedure was used.
18
5 Results and Discussion
5.1 Focus Group Discussions
Herein, we discuss the key results from the two focus groups conducted among Pakistani and
Swedish nationals. The Pakistani group was certain of which products were more appropriate
for the questionnaire. They quickly dismissed the pair composed of cookies and watches
because they considered cookies a socially important product related to the tea consumption
and the watches as not being so popular or necessary product in their home country where
they said cheap replicas could be bought easily. Instead they regarded the product pair of
soft drinks and mobile phones as very appropriate because there are several local and global
brands of these products operating in Pakistan.
There was less differences in the Swedish focus group in terms of products. Participants
agreed that soft drinks and cookies were low involvement products and indicated that they
cared less about the cookies than about soft drinks. For the high involvement products they
recognized both watches and mobile phone as high involvement products. Nevertheless, they
indicated that there was slightly more involvement with the watches. However, the
differences in both high involvement and low involvement products were not as pronounced
as were noticed in the Pakistani focus group.
We had the choice to pick different product pairs for Pakistan and Sweden, but this could
confound the results of the study. Hence, to keep the products consistent between the two
groups in the survey, we picked soft drinks (low involvement) and mobile phones (high
involvement). From our perspective, we also see that celebrities are more commonly used as
spokespersons in soft drink advertisement compared to cookie advertisement otherwise our
result might be affected by the irrelevance of the celebrity endorsement.
The second key aspect explored in the focus group was the awareness, neutrality, and
relevance of the celebrities. Before the focus groups, we narrowed down the celebrity choices
as under,
Global celebrities: Tom Cruise (option 1), Leonardo DiCaprio (option 2)
19
Local celebrities Sweden: Mikael Persbrandt (option 1) and Andreas Wilson (option
2)
Local celebrities Pakistan: Hamayun Saeed (option 1) and Shaan Shahid (option 2)
Option 1 and option 2 were formed as pairs and discussed with the focus group participants.
In Pakistani sample, participants could not relate clearly to Hamayun Saeed and he was
mixed with some celebrities from India hence, Shaan was a better option. Moreover,
Leonardo DiCaprio had high recognition. So the Shaan and Leonardo DiCaprio pair was the
choice based on the group. In Swedish sample, Mikael Persbrandt was not considered
suitable for the low involvement product category, especially cookies. Moreover, Tom Cruise
was seen as a somewhat controversial celebrity based on his Scientology association. Hence,
Andreas Wilson and Leonardo DiCaprio pair emerged as the one to be used in subsequent
research.
5.2 Conjoint Analysis Experiment
5.2.1 Qualification Criteria
Primary qualification criterion for this research is whether a person is a citizen of the country
in which the study has been conducted. Of the total 151 interviews, 76 were conducted in
Pakistan and 75 in Sweden, and all participants were natives of respective countries. The
decision of targeting natives was deliberate as language in brand slogan was local (Swedish
in Sweden and Urdu in Pakistan) and rather than assessing the language knowledge as a
condition, it was deemed expedient to focus on natives.
5.2.2 Demographics
The sample has a fairly even coverage of gender (54% male, 46% female) and this is
maintained in the subsamples for both countries. In terms of age, majority of respondents
belong to 1829 years age group with 3039 age group being the second most represented.
There are some differences between samples from two countries, for instance, in Pakistan
there are 6 interviews in under 18 years age group while none in this age group in Sweden;
moreover, we find a more even coverage of age groups other than 1829 years in Pakistan.
20
Threefourths of the sample has university education and there are some differences by
country as well. The basic education level is reported only in Pakistan.
5.2.3 Consumer Culture
This was measured through a three item threepoint belief in global citizenship (BIGC) scale.
The summated score of the scale was used to create a dichotomous variable wherein
respondents with mean score equal to or higher than the summated scale mean were
classified in global group (see themselves as global citizens) and others in local group (see
themselves as local citizens). In the final sample, 40% belong to the local group and 60% to
the global subgroup.
5.2.4 Reliability
The derived goodnessoffit (Person ‘r’) for four profiles used in CA is robust: Pakistan
HiInvolvement (0.999, p<0.01), Pakistan LowInvolvement (0.980, p<0.01), Sweden
HiInvolvement (0.999, p<0.01), and Sweden LowInvolvement (0.994, p<0.01).
Malhotra (2010) also mentions a method of splithalf reliability testing wherein sample is
randomly split into two halves and resulting loadings are compared to assess consistency
across sample. The sum of differences between the two subsample CA profiles is found to
be between 0.25% (slogan) and 2.2% (brand logo) which indicates high consistency. Finally,
the multiitem BIGC scale has a reported cronbach’s alpha statistic of 0.731 which is within
acceptable limit as proposed by Hair (2010).
5.2.5 Relative Importance Scores (CA Experiment)
The research question of this paper aimed at finding the most important advertising cues
regarding a sample of two different countries with different kinds of products according to
their involvement. Therefore, CA has been aggregated at the overall sample level to find out
the answer. The results show that brand slogan has emerged as the most important
advertising cue in determining PBG (37.5% relative importance level), followed by brand
spokesperson (28.4%). Brand name (14.2%), brand logo (11.5%), and brand website (9.7%)
are relatively less important together these three add up to a third of relative importance of
cues. This is only partially in line with the theory which indicates that visual cues are more
effective in commercials (Myers & Sar, 2013; Garretson & Burton, 2005). Moreover, one
21
reason for brand slogan to emerge on top could be that it’s the only variable where language
has been varied and language could have a significant role in globalness perception (De
Meulenear et al. , 2015).
5.2.6 Country Effect Hypothesis 1
Hypothesis one was related to the influence that the country can have in the perceptions of
brand globalness through advertising cues. The results of this hypotheses show that some
significant differences can be found across countries (Table 4 ) . Brand spokesperson and
brand website show significant differences when compared across Pakistan and Sweden
(statistically significant at p<0.05). Rest of the differences are not statistically significant.
Brand spokesperson is more than twice as important in Pakistan as in Sweden in fact, this is
the most important advertising cue in determining PBG in Pakistan. Moreover, the theory
established that in EM the perceived differences between local and global are greater than in
HIM, therefore the comparison between local and global celebrities was likely to be more
noticed in Pakistan (Dawar & Chattopadhyay, 2002) . On the other hand, brand website is
more than three times as important in determining PBG of a brand in Sweden than in
Pakistan however, website, on an overall basis, is not a very important factor.
Table 4: Advertising cues relative importance according to Country
5.2.7 Consumer Culture Effect Hypothesis 2
The second hypothesis of this study was focused on the differences between the local and
global consumer culture (Table 4 ) . For this study, sample of both countries and both types of
products was aggregated, leaving a sample of 122 local and 180 global profiles. Significant
CA importance differences are noticed across two advertising cues, namely, brand slogan and
brand name (p<0.05) across consumer culture. Brand name is more important among global
22
respondents whereas brand slogan is more important among local. Studying global
consumers, it can be seen that both brand slogan and brand spokesperson are important to
almost similar extent. Their identification with certain symbols and values might have lead
those who identify themselves as global or local to choose global or local languages in the
brand name and the brand slogan, as it is an important piece of their culture (Taylor &
Okazaki, 2015; Strizhakova et al. , 2008).
Table 5: Advertising cues relative importance according to Consumer Culture
5.2.8 Product Involvement Effect Hypothesis 3
Although the theory showed the possibility of finding differences in the perception of the
advertising cues across product involvement levels (high and low), the results of the CA
show no significant differences across product involvement levels for any of the advertising
cues tested at p<0.05 and all the hypotheses are rejected.
5.2.9 Gender Effect Hypothesis 4
Whereas, theory reveals that different perceptions and behaviours were to be expected from
each gender (Shukla et al. , 2013; Yoon & Kim, 2014), no statistically significant differences
were found across gender of the study participants for any of the advertising cues tested at
p<0.05, rejecting all the hypotheses.
23
6 Conclusions and Contributions
This paper’s aim is to answer what is the relative importance of advertising cues in achieving
the perception of globalness for a brand. We conducted a twophased research that included a
preliminary qualitative research to get insights into the topic and stimulus and a confirmatory
CA experiment to rank the advertising cues in terms of relative importance.
As can be seen in the results, the two most important cues that determine the PBG are brand
slogan with 37.5% of overall relative importance and brand spokesperson with 29.4%. The
rest of the cues show similar importance in the aggregate sample, much lower than the first
two. These results are consistent across gender and product involvement levels.
Relative importance of brand slogan varies with the consumer culture. It has higher relative
importance among consumers with local mindset which may be due to the use of local
language in which this advertising cue is written. Moreover, brand spokesperson derives its
high aggregate importance rating from it being the most important advertising cue in EM
(Pakistan) its importance rating is less than half in HIM (Sweden).
Among the relatively less important advertising cues, brand website has received almost 3
times higher relative importance score in HIM (Sweden). Finally, brand name is seen to be
more important among consumers with global mindset. Importance of brand logo is
consistent across all contexts.
The aggregate findings from our research have been found to be similar to the previous
research by De Meulenaer et al. (2015) where the advertising copy partially composed of
the brand slogan and the brand spokesperson are the most important factors in this order. In
addition, their study over the consumer culture also showed differences on the brand name
which are found in our study as well. Finally, their study over product involvement showed
differences across brand name and brand spokesperson while our study found no differences.
The extension of research to EM (Pakistan) has brought in new insights: brand spokesperson
is more than twice as important in EM than in HIM and brand website (a relatively less
important cue) is more than 3 times more important in HIM than in EM.
24
Our research also had the purpose of finding new insights regarding whether there could be
differences in terms of gender in the importance of the advertising cues to determine the
perception of globalness for a brand. In this case, no differences were found, establishing that
the gender has no effect on the perception of the cues as more local or global.
25
7 Limitations, Implications, and Further Research
7.1 Research Implications
Our research finds important differences between HIMs and EMs something which is
missing in prior theory. Brand spokesperson is much more important in achieving PBG in an
EM this means, managers in EM should focus on having the right spokespeople for their
brand to achieve a perception of globalness. In contrast, while website has almost a
nonexistent importance in EMs, in HIMs it is relatively more important and managers in
HIMs can use it as a tool to influence PBG of their brands. Finally, our research establishes
that gender and product involvement have no influence in determining PBG.
7.2 Limitations and Further Research
This research relies on using CA by creating hypothetical products as stimulus, another way
of doing this could be selecting actual brands operating in various categories and countries
and following a different research design altogether while still staying close to the topic of
how to create PBG. In addition, to increase realism, other types of stimulus (audio or video
ads) may also be employed though the creation of such stimulus may need much more time
and effort and require professional expertise in making ads.
The research has employed a convenience sampling technique. It is recommended that
probability sample be collected for more accurate findings. Moreover, it is recommended to
have at least 200 sample coverage per market of interest. With a 200 sample base, a deeper
exploration can also be made across the various subgroups of the sample (e.g. differences
between female consumers only in Pakistan). This research could help find more specific
insights about the most effective way to achieve PBG.
To provide a more robust picture, it is recommended that at least 2 HIMs and 2 EMs be
selected and analyzed over the same variables to have a more reliable base / spread in
sample.
26
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