A cross‐country study of signals of brand quality
| DOI | https://doi.org/10.1108/10610421111157865 |
| Published date | 23 August 2011 |
| Pages | 333-342 |
| Date | 23 August 2011 |
| Author | Jagdish Agrawal,Pamela Grimm,Shyam Kamath,Thomas Foscht |
| Subject Matter | Marketing |
A cross-country study of signals of brand
quality
Jagdish Agrawal
California State University, East Bay, Hayward, California, USA
Pamela Grimm
Kent State University, Kent, Ohio, USA
Shyam Kamath
Saint Mary’s College of California, Moraga, California, USA, and
Thomas Foscht
Karl Franzens University of Graz, Graz, Austria
Abstract
Purpose – This study seeks to examine differences in the signals of brand quality that consumers utilize in and across different countries. The approach
is driven by the practical goal of helping international firms understand how they could tailor their marketing mix to target consumers based on the
particular signals of brand quality that they use in different countries.
Design/methodology/approach – Survey data are collected from Austria, Belgium, Hong Kong, Indonesia, Russia, Singapore, Thailand and the USA
and analyzed using factor analysis to identify the signals that are used as extrinsic and intrinsic cues of brand quality in different clusters of countries.
Two major dimensions of signals of quality are identified and used to generate four clusters of countries representing different beliefs in signals of
brand quality.
Findings – Two major dimensions of signals of quality are identified and used to generate four clusters of countries representing different beliefs in
signals of brand quality. These dimensions broadly fall in to those that can be characterized as external signals (brand popularity, retailer’s name and
volume of advertising) and internal signals (brand name, price and country of origin) with the eight countries clustering in terms of these signals. Thus,
Austria, Belgium, Hong Kong and the USA form one cluster with Thailand and Russia forming another cluster while Indonesia and Singapore show
differences in their signal preferences.
Practical implications – Practical implications in terms of standardization versus differentiation of marketing mix strategies are discussed. The most
important implication is that differentiation of marketing strategies would seem to be advantageous contrary to the commonly held view that
international firms need to standardize their marketing strategies in the face of increasing globalization and alleged consumer convergence.
Originality/value – This study seeks to examine differences in the signals of brand quality that consumers utilize in and across different countries.
Keywords Quality, Quality signals, Extrinsic brand cues, Brands, Segments of countries, Standardization versus differentiation
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
The globalization of the international market place has
emerged as one of the major challenges facing managers
(Steenkamp et al., 1999). More firms are going global than
ever before, looking for cheaper resources as well as better
market opportunities. A major challenge facing multinational
corporations today is how to effectively convey information
about the quality of their products to consumers in different
countries. This challenge is very relevant, especially for
producers of superior quality products who must differentiate
themselves from the growing numbers of international brands
of varying quality levels offered by competitors. Should a
multinational corporation use standardized means for
signaling the superior quality of its products across countries
or customize them for each country? Is the brand name of a
product a universally used signal of quality across countries or
do consumers in different countries rely upon different signals
such as higher prices, or heavy advertising to make inferences
about the quality of brands?
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
20/5 (2011) 333–342
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610421111157865]
The authors would like to thank Cesar Maloles, Eric Soares and Gregor y
Theyel for their comments on this paper. The authors would also like to
thank Claudia Kraft at IMADEC University in Austria; Guido Krickx for
the Solway Business at the Free University in Brussels, Belgium; Edward
Wong of the United Institute of International Education in Hong Kong;
Albert Wibisono at Universitas Surabaya in Surabaya, Indonesia; Buarat
Srinil and Pannapa chr Ithiopassagu l of Thammasat Univer sity in
Thailand; Edward Goizman of the Academy of National Economy in
Moscow, Russia; and Gregory Christainsen of CSUEB’s Silicon Valley
EMBA Program at Hartford University in Singapore for their help in data
collection.
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