Non-Local or Local Brands? A Multi-Level Investigation into Confidence in Brand Origin Identification and Its Strategic Implications

Abstract

This article addresses a growing dilemma surrounding the strategic value of perceived brand foreignness (PBF) among consumers in emerging economies. Building on recent research evidence from the brand origin literature, we introduce the concept of confidence in brand origin identification (CBO) and theorize its moderating impact on the value of PBF in explaining and predicting brand evaluation. Using a multi-level modeling technique, this study provides evidence showing that CBO moderates the effect of PBF on consumer evaluations of brand value. Moreover, the moderating influence of CBO is found to be more profound for local than for foreign brands. Managerial implications for building both global and local brands in emerging markets are discussed.

Keywords: Perceived brand foreignness, Confidence in brand origin identification, Brand value, Emerging market