Companies expend vast resources to create product and brand portfolios in the global marketplace. Yet knowledge of the market-based performance implications of various positions in a firm's portfolio architecture is lacking in the literature. To further the understanding of managing brands in the global marketplace, the authors develop a conceptual framework based on the tenets of signaling theory, explore the relationship between global brand architecture and market-based performance, and consider how culture moderates this relationship. The results of the analyses, from a panel data set of 165 automotive brands operating in 65 countries from 2002 to 2008, reveal that global brands perform better in the marketplace than their nonglobal counterparts. Cultural values indeed provide boundary conditions for this relationship, suggesting that alternative strategies for some markets may be advisable.
AkdenizM. Billur, and Berk TalayM., (2013), “Cultural Variations in the Use of Marketing Signals: A Multilevel Analysis of the Motion Picture Industry,”Journal of the Academy of Marketing Science, 41(5), 601–624.
2.
AldenDana L., KelleyJames B., RieflerPetra, LeeJulie A., and SoutarGeoffrey N., (2013), “The Effect of Global Company Animosity on Global Brand Attitudes in Emerging and Developed Markets: Does Perceived Value Matter?”Journal of International Marketing, 21(2), 17–38.
3.
AldenDana L., SteenkampJan-Benedict E.M., and BatraRajeev, (2006), “Consumer Attitudes Toward Marketplace Globalization: Structure, Antecedents, and Consequences,”International Journal of Research in Marketing, 23(3), 227–39.
4.
BalabanisGeorge, DiamantopoulosAdamantios, MuellerRene Dentiste, and MelewarT.C., (2001), “The Impact of Nationalism, Patriotism and Internationalism on Consumer Ethnocentric Tendencies,”Journal of International Business Studies, 32(1), 15–75.
5.
BatraRajeev, RamaswamyVenkatram, AldenDana L., SteenkampJan-Benedict E.M., and RamachanderS., (2000), “Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries,”Journal of Consumer Psychology, 9(2), 83–95.
6.
ChabowskiBrian R., SamieeSaeed, and TomasG., HultM., (2013), “A Bibliometric Analysis of the Global Branding Literature and a Research Agenda,”Journal of International Business Studies, 44(6), 622–34.
7.
ChryssochoidisGeorge, KrystallisAthanassios, and PerreasPanagiotis, (2007), “Ethnocentric Beliefs and Country-of-Origin (COO) Effect: Impact of Country, Product and Product Attributes on Greek Consumers’ Evaluation of Food Products,”European Journal of Marketing, 41(11/12), 1518–44.
8.
DawarNiraj, and ParkerPhilip, (1994), “Marketing Universals: Consumers’ Use of Brand Name, Price, Physical Appearance, and Retailer Reputation as Signals of Product Quality,”Journal of Marketing, 58(April), 81–95.
9.
De MooijMarieke, and HofstedeGeert, (2011), “Cross-Cultural Consumer Behavior: A Review of Research Findings,”Journal of International Consumer Marketing, 23, 181–92.
10.
DimofteClaudiu V., JohanssonJohny K., and BagozziRichard P., (2010), “Global Brands in the United States: How Consumer Ethnicity Mediates the Global Brand Effect,”Journal of International Marketing, 18(3), 81–106.
11.
DouglasSusan P., and Samuel CraigC., (2011), “Convergence and Divergence: Developing a Semiglobal Marketing Strategy,”Journal of International Marketing, 19(1), 82–101.
12.
DouglasSusan P., and Samuel CraigC., and NijssenEdwin J., (2001), “Integrating Branding Strategy Across Markets: Building International Brand Architecture,”Journal of International Marketing, 9(2), 97–114.
13.
DuboisBernard, CzellarSandor, and LaurentGilles, (2005), “Consumer Segments Based on Attitudes Toward Luxury: Empirical Evidence from Twenty Countries,”Marketing Letters, 16(2), 115–28.
14.
ErdemTülin, SwaitJoffre, and ValenzuelaAna, (2006), “Brands as Signals: A Cross-Country Validation Study,”Journal of Marketing, 70(January), 34–49.
15.
FarrisPaul W., BendleNeil T., PfeiferPhillip E., and ReibsteinDavid J., (2006), Marketing Metrics: 50+ Metrics Every Executive Should Master.Philadelphia: Wharton Publishing.
16.
GielensKatrijn, and SteenkampJan-Benedict E.M., (2007), “Drivers of Consumer Acceptance of New Packaged Goods: An Investigation Across Products and Countries,”International Journal of Research in Marketing, 24(2), 97–111.
17.
GuoXiaoling, (2013), “Living in a Global World: Influence of Consumer Global Orientation on Attitudes Toward Global Brands from Developed Versus Emerging Countries,”Journal of International Marketing, 21(1), 1–22.
18.
HausmanJerry, A., (1978), “Specification Tests in Econometrics,”Econometrica, 46(6), 1251–71.
Ter HofstedeFrenkel, WedelMichel, and SteenkampJan-Benedict E.M., (2002), “Identifying Spatial Segments in International Markets,”Marketing Science, 21(2), 160–78.
21.
HofstedeGeert, (1983), “The Cultural Relativity of Organizational Practices and Theories,”Journal of International Business Studies, 14(2), 75–89.
22.
HofstedeGeert, HofstedeGert Jan, and MinkovMichael, (2010), Cultures and Organizations: Software for the Mind.New York: McGraw-Hill.
23.
IversenNina M., and HemLeif E., (2011), “Reciprocal Transfer Effects for Brand Extensions of Global or Local Origin: Evidence from Norway,”International Marketing Review, 28(4), 365–411.
24.
KapfererJean-Noel, (2002), “Is There Really No Hope for Local Brands?”Brand Management, 9(3), 163–70.
25.
KennedyPeter, (2003), A Guide to Econometrics.Cambridge, MA: MIT Press.
26.
KleinJill Gabrielle, (2002), “Us Versus Them, or Us Versus Everyone? Delineating Consumer Aversion to Foreign Goods,”Journal of International Business Studies, 33(2), 345–64.
27.
KoutsoyiannisAnna, (1977), Theory of Econometrics.London: Macmillan.
28.
MorrisonAllen J., RicksDavid A., and RothKendall, (1991), “Globalization Versus Regionalization: Which Way for the Multinational?”Organizational Dynamics, 19(3), 17–29.
29.
ÖzsomerAyşegül, (2012), “The Interplay Between Global and Local Brands: A Closer Look at Perceived Brand Globalness and Local Iconness,”Journal of International Marketing, 20(2), 72–95.
30.
ÖzsomerAyşegül, and AltarasSelin, (2008), “Global Brand Purchase Likelihood: A Critical Synthesis and an Integrated Conceptual Framework,”Journal of International Marketing, 16(4), 1–28.
31.
PetersenJ. Andrew, KushwahaTarun, and KumarV., (2015), “Marketing Communications Strategies and Consumer Financial Decision Making: Role of National Culture,”Journal of Marketing, 79(January), 44–63.
32.
RichardsonPaul S., DickAlan S., and JainArun K., (1994), “Extrinsic and Intrinsic Cue Effects on Perception of Store Brand Quality,”Journal of Marketing, 58(October), 28–36.
33.
RugmanAlan M., and CollinsonSimon, (2004), “The Regional Nature of the World's Automotive Sector,”European Management Journal, 22(5), 471–82.
34.
SchlieErik, and YipGeorge, (2000), “Regional Follows Global: Strategy Mixes in the World Automotive Industry,”European Management Journal, 18(4), 343–54.
35.
ShimpTerence A., and SharmaSubhash, (1987), “Consumer Ethnocentrism: Construction and Validation of the CETSCALE,”Journal of Marketing Research, 24(August), 280–89.
36.
SpillerStephen A., FitzsimonsGavan J., LynchJohn G.Jr., and McClellandGary H., (2013), “Spotlights, Floodlights, and the Magic Number Zero: Simple Effects Tests in Moderated Regression,”Journal of Marketing Research, 50(April), 277–88.
37.
SteenkampJan-Benedict E.M., (2014), “How Global Brands Create Firm Value: The 4V Model,”International Marketing Review, 31(1), 5–29.
38.
SteenkampJan-Benedict E.M., BatraRajeev, and AldenDana L., (2003), “How Perceived Brand Globalness Creates Brand Value,”Journal of International Business Studies, 34(1), 53–65.
39.
SteenkampJan-Benedict E.M., and de JongMartijn G., (2010), “A Global Investigation into the Constellation of Consumer Attitudes Toward Global and Local Products,”Journal of Marketing, 74(November), 18–40.
40.
StrizhakovaYuliya, CoulterRobin A., and PriceLinda L., (2008), “Branded Products as a Passport to Global Citizenship: Perspectives from Developed and Developing Countries,”Journal of International Marketing, 16(4), 57–85.
41.
SwobodaBernhard, PennemannKarin, and TaubeMarkus, (2012), “The Effects of Perceived Brand Globalness and Perceived Brand Localness in China: Empirical Evidence on Western, Asian, and Domestic Retailers,”Journal of International Marketing, 20(4), 72–95.
42.
TalayM. Berk, CalantoneRoger J., and VoorheesClay M., (2014), “Coevolutionary Dynamics of Automotive Competition: Product Innovation, Change, and Marketplace Survival,”Journal of Product Innovation Management, 31(1), 61–78.
43.
TalayM. Berk, DalgicOrkunt, and DalgicTevfik, (2010), “Shareholder Value Creation in International Joint Ventures: The Case of the U.S. Automotive Industry,”Strategic Management Review, 4(1), 1–17.
44.
TownsendJanell D., YeniyurtSengun, and Berk TalayM., (2009), “Getting to Global: An Evolutionary Perspective of Brand Expansion in International Markets,”Journal of International Business Studies, 40(2), 301–320.
45.
ÜstünerTuba, and HoltDouglas B., (2007), “Dominated Consumer Acculturation: The Social Construction of Poor Migrant Women's Consumer Identity Projects in a Turkish Squatter,”Journal of Consumer Research, 34(1), 41–56.
46.
WooldridgeJeffrey, M., (2000), Introductory Econometrics: A Modern Approach.Independence, KY: South-Western College Publishing.
47.
WooldridgeJeffrey, M., (2002), Econometric Analysis for Cross Section and Panel Data.Cambridge, MA: MIT Press.
48.
YeniyurtSengun, TownsendJanell D., and Berk TalayM., (2007), “Factors Influencing Brand Launch in a Global Marketplace,”Journal of Product Innovation Management, 24(5), 471–85.
49.
ZhouLiang, YangZhiyong, and HuiMichael K., (2010), “Non-Local or Local Brands? A Multi-Level Investigation into Confidence in Brand Origin Identification and Its Strategic Implications,”Journal of the Academy of Marketing Science, 38(2), 202–218.
