Consumer preference for global relative to local brands: the role of ethnocentrism, xenocentrism, and materialism

Abstract

With globalization on the rise, we have witnessed new cultural identities, a growth in nationalistic tendencies, geopolitical tensions, and an upsurge in worldwide investment by multinational companies in the historically overlooked emerging markets. Despite this, limited research explains the influence of these new cultural identities on global (local) brand preference, particularly in emerging markets. This study establishes the relationship between global (local) cultural identities and global (local) brand preferences in an emerging market, moderating consumer ethnocentrism, xenocentrism, and materialism. The partial least squares structural equation modeling (PLS-SEM) method was applied using the Smart PLS version 3 statistical package. A cross-sectional survey with structured closeended questions was administered online through Qualtrics to 223 participants. Findings reveal that: (a) global cultural identity positively relates to global brand preference, (b) local cultural identity does not relate to local brand preference, and (c) the moderating effects of consumer ethnocentrism, consumer xenocentrism, and materialism have no significant impact on global (local) brand preference. This study contributes extensively to the existing international marketing literature, especially emerging market consumers' consumption patterns and brand choices. Practically, the findings are valuable to marketers in formulating global (local) brand positioning strategies, market entry strategies, and marketing mix elements.