Title: Effect of perceived brand foreignness on branding strategy evaluation for high and low involvement products

Authors: Plavini Punyatoya

Addresses: International Management Institute, Gothapatana, Po-Malipada, PS-Chandaka, Dist-Khurdha, Bhubaneswar-751003, Odisha, India

Abstract: The research addresses the growing dilemma surrounding the role of perceived brand foreignness (PBF) in consumer evaluation of branding strategies in India. Building on recent research evidence, the research investigates the impact of global and local brands on Indian consumers' evaluation of new versus extended brand name strategy for high and low involvement products. Using multivariate analysis of variance, the research provides evidence showing that product involvement moderates the effect of PBF in predicting consumer branding strategy evaluation. The moderating effect is seen to be more evident in case of local brands in India. Global brands introducing new products are preferred with brand extensions. Whereas, local brands are favoured with new brand names and brand extensions for low and high involvement products respectively. Managerial implications for choice of right branding strategy in the emerging markets are discussed.

Keywords: brand extensions; new brand names; perceived brand foreignness; global brands; local brands; product involvement; branding strategies; India; strategy evaluation; high involvement products; low involvement products; consumer evaluations; extended brand names; MANOVA; multivariate analysis of variance; new products; managerial implications; business; emerging markets.

DOI: 10.1504/IJBEM.2013.050748

International Journal of Business and Emerging Markets, 2013 Vol.5 No.1, pp.28 - 45

Received: 10 May 2012
Accepted: 04 Jul 2012
Published online: 13 Nov 2013 *

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