How Perceptions of Foreignness Can Impact Brand Preference

The geographical location or country from which the product is perceived to be originating can become linked with the brand to generate secondary associations. Consumers may choose brands based on their belief of quality of products deriving from particular countries. Selecting a brand with strong national associates can reflect the consumers’ judgement of the perceived country or location of origin, maximise product utility and convey self-image.

Much of the data on CO effects reflects the West where the studies were conducted, and thus, is not applicable to emerging markets. Initial CO research sought to understand Western consumers risk reducing biases when evaluating products from less economically develop countries, leading to the identification of a concept of CO by way of a halo construct whereby CO influences beliefs about product quality (Han, 1989). Literature has documented the use of CO as an extrinsic cue for inferring quality. More recent empirical research suggests that perception of foreignness is a more complex multidimensional concept, and earlier findings are not wholly consistent with today’s global marketplace, owing to fast developing economies and the emergence of new consumer segments. Parameswaran, & Pisharodi, (1994) suggest that CO effects not only relate to consumers cognitions about the political climate and economic development of CO, but perception of the specific product. Decisions relating to the product reflect the idiosyncratic nature of individuals’ concept of value, Batra et al. (2000) states that judgements of non-localness are not homogenous; they incorporate positive and negative associations in respect of differing consumer attitudes. Perceived brand foreignness represents a more generalised view of non-local or foreign origin that differs from traditional perspectives. PBF is the consumer’s perception that the brand has non-local origin, in the absence of complete brand knowledge regarding origin. Therefore local brands can leverage brand equity through secondary associations, for example, foreign languages or foreign sounding names on products. Batra et al., (2000) concluded that brands perceived as non-local are preferred to brands perceived as local. An example is Chinese consumers regard Western products as more stylish; brand foreignness not only has connotations surrounding quality but contains associations of symbolic value i.e. expression of wealth, social recognition and growing influence of Western values, amongst some consumer groups in certain product categories.

In frequently purchased, inconspicuous and inexpensive products categories, foreignness is less of a diagnostic; as CO superiority is less likely to be associated with these product categories. Moreover, literature identifies that in low involvement decisions consumers rationalise choice on brand familiarity, which can raise the purchase likelihood of local brands over brands perceived as foreign. Betra et al. (2000) found that CO effects are greater in categories that serve a greater social signalling function, such as expensive and conspicuous products; owing to consumers with high SNI. On the contrary, consumers from developed economies are more suspicious of products from developing nations when financial risk is high when seeking products with superior tangible features. Although research has produced evidence supporting salience of symbolic value of foreignness may extend from conspicuous to inconspicuous product categories, however this depends upon the strength of symbolic value the brand represents to the consumer.

Ethnocentric consumers feel a sense of moral obligation to support domestic goods, owing to the belief of protecting the national economy, and therefore reject purchase of foreign goods. However, despite this orientation, ethnocentricity is found not to have a significant impact. Consumers of low ethnocentricity in developing countries are more inclined to purchase foreign products; aspiring to emulate Western lifestyle.

Local products trying to give the impression of foreignness are expected to obligate lower performance, detrimental to consumers’ trust in the perception of foreignness. Moreover some consumers can no longer distinguish between foreign and local imitations, and thus foreign brand images are no longer a diagnostic in product valuations.

CBO serves as a signal of credibility which enhances positive effects of PBF. This infers that marketers should emphasise PBF, but likewise have consideration for consumer associations with brand origin identification; to create meaningful associations with the geographical origin, to foster the consumers’ sense of confidence in their own beliefs about the brand’s origin associations. Perceptions of brand foreignness are unique to the consumer and can be heightened through the strength of brand origin associations stored in the mind of the consumer. CBO authenticates consumers’ perceptions that the brand has the credibility to deliver what is pledged; thus the product demands a credible basis of leveraging associations for the diagnostic assessment of PBF.