Predisposition towards foreign brands and materialism: a quantitative assessment

DOIhttps://doi.org/10.1108/JABS-08-2015-0144
Published date03 January 2017
Date03 January 2017
Pages41-59
AuthorAastha Verma Vohra,Garima Gupta
Subject MatterStrategy,International business
Predisposition towards foreign brands
and materialism: a quantitative
assessment
Aastha Verma Vorha and Garima Gupta
Aastha Verma Vohra and
Garima Gupta are both
based at the Faculty of
Management Studies,
University of Delhi,
New Delhi, India.
Abstract
Purpose The purpose of this paper is to identify the dimensions of predisposition towards foreign
brands (PTFB) for Indian consumers and examine their impact on materialism/materialist value (MAT).
The study further conducts an in-depth analysis of these constructs for possible variations across
consumer demographics.
Design/methodology/approach Using a structured questionnaire, primary data were collected from
487 respondents in the city of Delhi and National Capital Region (NCR). While a modified scale was
developed to operationalize PTFB, the measurement instrument for MAT was adapted on the basis of an
extensive literature review. Statistical techniques such as Exploratory factor analysis, Confirmatory
factor analysis, t-test, analysis of variance (ANOVA) and regression analysis were used to test various
hypotheses of the study.
Findings The study identified five dimensions of PTFB, namely, “Reputation”, “Preference”, “Country
of Origin”, “Accessibility” and “Quality”, through confirmatory factor analysis in structural equation
modelling. Except for “Preference” and “Accessibility”, all remaining dimensions were found to be
exerting a significant impact on MAT. The results further indicate that consumers’ PTFB as well as their
MAT differs across demographics such as age, income, gender, occupation and qualification.
Practical implications The paper brings to the fore useful insights for marketers of foreign brands.
The findings can be effectively used for developing a more focused marketing strategy for Indian
consumers by helping in identifying demographic segments that are more responsive and susceptible
to the entry of foreign brands in Indian markets.
Originality/value The paper attempts to develop a more robust instrument for measurement of
consumers’ PTFB and provides dimensions constituting the construct for consumers of emerging
markets such as India. The current research also indicates that there exists a significant variation in
PTFB and MAT for different demographic segments of consumers.
Keywords Emerging markets, Globalization, Consumer behaviour, Materialism, Foreign brands
Paper type Research paper
1. Introduction
The growth of Indian economy spurred when the government implemented liberalization,
privatization and globalization policies and removed the stringent restriction towards the
entry of foreign brands in the country. The reforms in economic policy allowed direct foreign
investments in the country and paved a way for the entry of foreign companies in Indian
market. Over the years, these changes have led to a shift in consumers’ attitude and
preferences from “domestic” to “foreign” brands. The literature too suggests that
consumers in India are showing an increased “predisposition towards foreign brands”
(PTFB) due to globalization (Gupta, 2011;Bandyopadhyay, 2001;Batra et al., 2000;Kinra,
2006). In other words, the studies examining consumers’ inclination for foreign brands have
considered these brands as an element of globalization force. It is further proposed that the
availability of foreign brands has brought a noticeable change in consumer culture,
Received 3 September 2015
Revised 29 October 2015
10 February 2016
Accepted 16 April 2016
DOI 10.1108/JABS-08-2015-0144 VOL. 11 NO. 1 2017, pp. 41-59, © Emerald Publishing Limited, ISSN 1558-7894 JOURNAL OF ASIA BUSINESS STUDIES PAGE 41
creating a need for research to analyse the impact of these brands on local cultures (Cayla
and Arnould, 2008).
Another important construct that has gained considerable attention in this regard is
consumers’ materialistic value/materialism (MAT). MAT has been viewed as a corner stone
of consumer culture, and researchers over time have shown interest in examining its impact
on consumers’ consumption of products/brands (Roberts, 2000;O’Cass and Julian, 2001).
It is in this context that the present study aims at establishing a relationship between
consumers’ PTFB and their MAT. The study further conducts an in-depth analysis of these
constructs and their association across consumer demographics. More specifically, the
study has threefold objectives:
1. to identify and examine the dimensions of PTFB;
2. to examine the relationship between PTFB and MAT for Indian consumers; and
3. to investigate if PTFB and MAT differ across consumer demographics.
2. Key constructs of the study
2.1 Predisposition towards foreign brands: concept and dimensionality
Though a number of studies have defined and examined the construct of PTFB (see
Table I), one of the substantial contributions in this area was made by Gupta (2011), who
defined it as “the positive perception and purchase preference of people towards brands
Table I Studies on predisposition towards foreign brands
Author/Year Contribution
Gupta (2012) “Predisposition towards foreign brands is described as the positive
perception and purchase preference of people towards brands
that they perceive as having originated from economically
developed countries, where citizens have relatively better lifestyles;
because these brands are technologically superior, quality wise
better, provide value for money and enhances a person’s status in
the society”
Durvasula and Lysonski
(2008)
“Globalization and exposure to global media has resulted into the
spread of global consumer culture which impacts on the choice of
goods purchased in developing countries like India and China.
People in these countries prefer mostly foreign brands to match up
to the rising living standards”
Kinra (2006) “Indian consumers are predisposed towards foreign brands
because they have evaluated these brands high on technology,
quality, status and esteem than Indian brands. This preference has
also been attributed to the higher credibility given to the country of
origin of these brands”
Kaynak et al. (2000) “Consumers have an inclination to buy a foreign brand because a
product from developed country of origin is seen as insurance on
products quality and performance”
Batra et al. (2000) “In developing countries people prefer foreign brands especially
the brands coming from west because these brands have a non-
local country of origin and perceived to have better quality and
status. This inclination is greater in consumers who have a greater
admiration of lifestyle of people living in economically developed
countries”
Agbonifoh and Elimimian
(1999)
“People living in developing countries prefer to buy a foreign brand
because a product originated from a developed country”
Roth and Romeo (1992) “Described PTFB in terms of the products country of origin (COO)
and found that the information on the products COO has a direct
impact over the purchase preference”
Source: Compiled by Authors
PAGE 42 JOURNAL OF ASIA BUSINESS STUDIES VOL. 11 NO. 1 2017

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