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ABSTRACT
Previous cross-cultural research has demonstrated a consistently positive effect of brand globality on consumer percep-
tions, attitudes, and purchase intentions. The authors evaluate these effects on three ethnic segments of U.S. consumers.
Drawing on survey data analysis and the estimates of a structural equation model, the research shows that associations
with global brands as a general category vary across ethnic groups. Caucasian consumers show less of an appreciation
of global brands, whereas African Americans and Hispanics show patterns similar to those in prior research. Although
the average consumer views brand globality as an attribute of little importance, the structural equation findings show a
direct effect of globality on attitudes and purchases. Overall, mainstream consumers in the United States are less favor-
able toward global brands than minority groups but patronize them at the same overall rate.
Keywords: global brands, consumer ethnicity, market segmentation, attitudes, purchase behavior
n general, brands that are widely available across evoke appealing global myths (Holt, Quelch, and Taylor
on global brands ranging from adidas to Zara has con- Findings also suggest that consumers in less developed
sistently demonstrated their advantages over other countries associate global brands with an aspiration
brands. Global brands are believed to engender more toward the lifestyles of more advanced economies
positive affect (Alden, Steenkamp, and Batra 1999), sug- (Alden, Steenkamp, and Batra 1999), and consumers
gest higher quality (Steenkamp, Batra, and Alden 2003), across the world associate global brands with high
enjoy greater esteem (Johansson and Ronkainen 2005), quality, a certain global myth, and social responsibility
(Holt, Quelch, and Taylor 2004). Other studies directly
measure brand globality and quantify its effect.
Claudiu V. Dimofte is Assistant Professor of Marketing
Steenkamp, Batra, and Alden (2003) elicit perceived
(e-mail: dimofte@msb.edu), and Johny K. Johansson is
McCrane/Shaker Professor of International Business and
brand globality measures from consumers in the United
Marketing (e-mail: johanssj@georgetown.edu), McDonough States and Korea and trace their effect on quality per-
School of Business, Georgetown University.
Richard P. Bagozzi is Dwight F. Benton Professor of Behav-
Journal of International Marketing
ioral Science in Management, Ross School of Business, and
Professor of Clinical, Social, and Administrative Science, ©2010, American Marketing Association
College of Pharmacy, University of Michigan (e-mail: Vol. 18, No. 3, 2010, pp. 81–106
bagozzi@umich.edu). ISSN 1069-0031X (print) 1547-7215 (electronic)
Research in academic and practitioner marketing jour- The Hispanic market is a fast-growing segment, with
nals addressing differences among American ethnic young consumers and high levels of discount store
groups is not new (e.g., Bergier 1986; Deshpandé, patronage (Gardyn and Fetto 2003). However, their
Hoyer, and Donthu 1986). A reason is that minority income is increasing rapidly, and coupled with the fact
groups constitute the main drivers of population growth that this minority has now surpassed the African Ameri-
in the United States. For example, in 2004, the U.S. can segment in size, it is fast becoming a highly attractive
Census Bureau estimated that Hispanics accounted for market segment. For our purposes, it is important to
almost half the total U.S. population’s annual growth note that the Hispanic segment exhibits a strong attach-
(Bernstein 2004). Minority groups are younger on aver- ment to its traditional culture and the native language.
age than the rest of the U.S. population and thus are Thus, Valencia (1989) argues that Hispanic and white
attractive to marketers. consumer groups have different value orientations, the
former closely reflecting the joint Latin cultural heritage.
The U.S. Census Bureau currently employs a five-group Although their home countries are racially heterogeneous
ethnic classification of the U.S. population: Hispanic, with varying proportions of black, native Indians, and
non-Hispanic white, black, American Indian/Alaska other groups, Hispanics share linguistic and cultural
Native, and Asian/Pacific Islander. For marketing pur- characteristics that are clearly distinct from those
poses, it is common to distinguish three minority ethnic describing the Caucasian majority.
groups: African American, Hispanic, and Asian (e.g.,
Solomon 2008, pp. 526–31). In this research, we limit Deshpandé, Hoyer, and Donthu (1986) similarly show
ourselves to the African American and Hispanic seg- that though differences in ethnic identification exist
ments. They are substantial minority markets in the within the Hispanic segment, overall, the group displays
United States, with roughly 13% and 15% of the total systematic consumption-related differences from Cau-
population of 305 million in 2008, respectively, accord- casians. For example, Hispanics place more reliance on
ing to the U.S. Census Bureau (2010). The Asian group commercial sources of advertising and tend to be more
is significantly smaller at about 4.5%, with a more brand loyal (Deshpandé, Hoyer, and Donthu 1986). This
diverse cultural background (e.g., including immigrants has affected their acceptance of well-known brands in
from India, South Korea, Iran, and the Philippines) and the marketplace positively, as Donthu and Cherian
higher family income. Whereas the median household (1994) find. Hispanic consumers also resemble African
Items
Definitional Items
Global brands are basically the same everywhere. Same everywhere
Global brands are more powerful than other brands. More powerful
Global brands dominate other brands. Dominant
Functional Benefits
Global brands have higher quality than other brands. Higher quality
Global brands do not have high quality Not high quality
Global brands are a safer choice than other brands. Safer choice
Choosing a global brand saves time compared to choosing another brand. Saves time
Global brands are more predictable than other brands Predictable
Global brands offer better value than other brands. Better value
Global brands are more expensive than other brands. More expensive
Experiential Benefits
Global brands are more exciting than other brands. More exciting
Global brands are more stylish than other brands. More stylish
A global brand is more prestigious than other brands. More prestige
Global brands have more status than other brands. More status
Global brands are less intimate than other brands. Less intimate
Global brands are less personal than other brands. Less personal
Symbolic Benefits
Global brands are more ethical than other brands. More ethical
Global brands are particularly concerned about the environment. More environmental
Global brands are more up-to-date than other brands. Up-to-date
There is a unique aura about a global brand. Unique aura
African
Total Sample Caucasians Americans Hispanics
Characteristic (N = 1248) (N = 792) (N = 279) (N = 177)
Gender
Male 50.00% 50.80% 44.40% 55.40%
Female 50.00% 49.20% 55.60% 44.60%
Age
18–22 12.50% 10.70% 12.50% 19.80%
23–34 39.40% 37.20% 42.70% 44.10%
34–54 48.10% 52.00% 44.40% 36.20%
Education
High school 31.20% 31.60% 28.30% 34.50%
College 56.70% 55.70% 62.00% 52.50%
Graduate school 12.10% 12.80% 9.70% 13.00%
Marital Status
Single 52.90% 47.60% 64.20% 58.80%
Married 47.10% 52.40% 35.80% 41.20%
Children
Yes 58.60% 58.00% 63.40% 53.70%
No 41.40% 42.00% 36.80% 46.30%
African
Total Sample Caucasians Americans Hispanics
Item (N = 1248) (N = 792) (N = 279) (N = 177)
I think people in general care about brands. 4.72* 4.67a 4.87a 4.73
African
Total Sample Caucasians Americans Hispanics
Brand Attribute (N = 1248) (N = 792) (N = 279) (N = 177)
brands, whereas the African Americans and especially experiential benefits, the differences are even more pro-
the Hispanics did. The latter groups were more in agree- nounced. African Americans and Hispanics derived
ment with previous findings of higher-quality percep- much more satisfaction from global brands on all items
tions for global brands in developing countries. For than Caucasians. They seemed to have no loss of affin-
African
Total Sample Caucasians Americans Hispanics
Variable (N = 1248) (N = 792) (N = 279) (N = 177)
Definitional Items
Same everywhere 3.82** 3.84 3.75 3.85
More powerful 3.85** 3.92a 3.55a,b 4.01b
Dominate locals 4.06** 4.06 4.01 4.11
Functional Benefits
Higher quality 3.58* 3.48a,b 3.69a 3.81b
Not high quality 2.58** 2.59 2.53 2.62
Safer choice 3.30** 3.25a 3.33 3.47a
Saves time 3.47 3.40a 3.54 3.65a
Predictable 3.79** 3.80 3.80 3.76
Better value 3.46** 3.33a 3.46 3.64a
More expensive 3.78** 3.67a,b 3.96a 3.96b
Experiential Benefits
More exciting 3.24** 3.10a,b 3.46a 3.51b
More stylish 3.47 3.40a,b 3.54a 3.67b
More prestigious 3.55 3.44a,b 3.74a 3.73b
More status 4.01** 3.96a 4.15a 4.02
Less intimate 3.35** 3.42a 3.20a 3.27
Less personal 3.52 3.61a,b 3.35a 3.37b
Symbolic Benefits
More ethical 2.97** 2.90a,b 3.09a 3.12b
More environmental 3.10** 3.02a,b 3.23a 3.24b
Unique aura 3.44 3.32a,b 3.68a 3.62b
More up-to-date 3.55 3.49a 3.59 3.73a
ity with global brands, whereas Caucasians were much largely the same beliefs about global brands. The mean
less favorable. Finally, the symbolic benefits showed scores are significantly different in only two instances:
greater agreement on the question of ethics and environ- “more powerful” and (marginally) “better value.” It is
mental concern, for which global brands did not score possible to attribute the difference in the “more power-
very well. In terms of a unique aura and being up-to- ful” score to the different historical experiences of the
date, the differences again arose between the more two ethnic groups (Phinney 1996), and in the subse-
doubtful Caucasians and the positively inclined African quent analysis, we omitted both items.
Americans and Hispanics. Unlike the latter, Caucasian
consumers perceived global brands as having a more Overall, these results support our hypothesis about
consistent quality though not necessarily higher quality global brand beliefs (H3). In general, the two ethnic sub-
than other brands. groups are more positive about global brands than the
Caucasian consumers. However (and this is significant
Focusing on the differences between African American for behavior), they perceive the prices for global brands
and Hispanics, Table 5 shows that both groups have as higher than the Caucasians do.
African
Global Brand Total Sample Caucasians Americans Hispanics
Variable (N = 1248) (N = 792) (N = 279) (N = 177)
Attitude
Favorableness 3.96* 3.87a,b 4.13a 4.08b
Is globality a positive? 4.35* 4.29a 4.38 4.54a
Purchase Behavior
How often chosen global? 3.31* 3.32 3.30 3.28
What percentage bought? 3.38* 3.39 3.32 3.40
The initial step involved narrowing down the association Thus, in the more complete structural model, we found
items in Table 5 to a more manageable set of constructs. a direct link between globality and behavior. With brand
Using intercorrelations, Cronbach’s alphas, and modifi- globality specified as an antecedent second-order factor
cation indexes, an exploratory factor analysis identified (capturing common variance in brand beliefs and affect-
five distinctive constructs that captured most of the var- ing attitudes and behavior), the globality of a brand
iation in the associations. Two constructs involved func- influences attitude and behavior directly.
tional benefits. They were labeled “quality” (with indica-
tors “higher quality” and “safer choice”) and Estimation Results
“convenience” (with indicators “saves time” and “more
predictable”). Experiential benefits also showed two Table 9 presents the specific structural model estimates
constructs, labeled “expressive” (with indicators “more and also shows the measurement parameter estimates
Caucasians Non-Caucasians
Item (N = 792) (N = 456)
Notes: Means in the same row sharing a superscript are significantly different at the p < .05 level or better.
and goodness-of-fit indexes. The fit is consistently good cant. As expected, the attitude-to-purchase link is
across the three segments. The measurement loadings weaker for the Caucasians (in which the price-omitted
are consistently strong across all seven constructs and variable likely has a role), and there is some heterogene-
similar across the three ethnic groups. The structural ity between groups in the globality-to-purchase links.
coefficient estimates are high and also similar across the The larger coefficient for Caucasians in the globality-to-
groups for the beliefs’ links to globality. attitude link suggests that the global brand associations
among the Caucasians are more congruent with their
The structural estimates for attitude and purchase are attitudes than with those of the other two ethnic
slightly lower, especially for purchases, but still signifi- groups. The variance explained in attitudes and
Factor Correlations
Factor Correlations
African Americans (N = 279) Ethics Convenience Quality Social Expressive Attitude Purchase
Factor Correlations
Notes: RMSEA = root mean square error of approximation, NNFI = nonnormed fit index, CFI = comparative fit index, and SRMR = standardized root mean square
residual; see Table 9 for factor loading estimates.
purchases by the model ranges from roughly 40% to Next, we tested the significance of the differences in
60%, which is high for cross-sectional analyses with real model and coefficient estimates among the three groups
consumers. These outcomes are well explained by the using pairwise multiple sample analyses. (The Appendix
model constructs. presents the detailed results.) Overall, the test results
ε11 ε12
y11 y12
1 λ12 ζ7
Attitude
ζ2
η7
β87
ε1 y1 1
Ethics ζ8
β21 β71
η2
ε2 y2 Purchase
λ2 η8
Antecedents
ζ3 β31 (second-order factor) β81 1 λ14
ε3 y3 1 η1
Convenience β61 y13 y14
η3
ε4 y4 β51
λ2 β41 ζ6
ζ4 ε13 ε14
ζ5
y5 y6 y7 y8 y9 y10
ε5 ε6 ε7 ε8 ε9 ε10
show that the baseline model in Figure 1 is invariant in between attitude and behavior than the Caucasians. The
factor patterns and first-order factor loadings among differences in the second-order factor loadings for the
the ethnicities, in support of H5. Furthermore, none of two segments show that for African Americans, expres-
the differences between African Americans and Hispan- siveness is more salient (Chattaraman, Rudd, and
ics are significant: The groups show strong similarities Lennon 2009), whereas Caucasians are more influenced
(Table A1). The significant differences between Cau- by their (relatively low) assessment of quality. Apart
casians and Hispanics occur mainly in the stronger from the similarity between African Americans and His-
attitude-to-purchase link for Hispanics and the lower panics, and the similarity of the measurement model, H5
unexplained variance in attitude for the Caucasians is rejected.
(Table A2). Although Hispanics and Caucasians are
similar in the measurement portion of the model, the
Hispanics show significantly higher consistency between Model Implications
attitude and behavior than the Caucasians (against H5).
The overall good fit of the structural equations suggests
The distinctions between Caucasians and African that the evoked brand associations can explain U.S. con-
Americans are even stronger (see Table A3). Again, sumers’ relationships with global brands regardless of
there are no significant differences in the measurement ethnicity. That is, the observed differences among ethnic
part of the model. As in the case of the Hispanics, how- groups can be related to differences in perceptions and
ever, African Americans show greater consistency attitudes. The respondents are familiar with global
African
Caucasians Americans Hispanics
(N = 792) (N = 279) (N = 177)
Measurement Model
Ethical λ1 (more ethical) .67 .65 .71
λ2 (more environmental) .74 .66 .77
Convenience λ3 (saves time) .59 .62 .72
λ4 (more predictable) .75 .72 .79
Quality λ5 (higher quality) .78 .81 .75
λ6 (safer choice) .78 .84 .81
Social λ7 (more prestigious) .63 .66 .78
λ8 (more status) .85 .80 .85
Expressive λ9 (more exciting) .77 .74 .76
λ10 (more stylish) .78 .79 .77
Attitude λ11 (favorableness) .72 .72 .83
λ12 (global positive?) .82 .77 .81
Purchase λ13 (how often?) .88 .87 .92
λ14 (% bought) .82 .85 .80
Structural Model
Global → ethical .78 .80 .79
Global → convenience .79 .93 .82
Global → quality .86 .78 .76
Global → social .86 .85 .88
Global → expressive .93 .91 .91
Global → attitude .71 .67 .59
Attitude → purchase .55 .67 .60
Global → purchase .19 .11 .31
Explained Variance
R2 attitude .51 .44 .35
R2 purchase .48 .55 .68
Goodness-of-Fit
χ2 (d.f.) 335.62 (69) 160.63 (69) 95.84 (69)
RMSEA .07 .07 .05
NNFI .97 .97 .99
CFI .98 .97 .99
SRMR .05 .05 .05
Notes: All factor loadings and paths are significant at the p < .001 level or better except the global → purchase path, which was significant at p < .05, nonsignificant,
and significant at p < .01 for Caucasians, African Americans, and Hispanics, respectively. Global = second-order antecedent (see Figure 1). RMSEA = root mean square
error of approximation, NNFI = nonnormed fit index, CFI = confirmatory factor analysis, and SRMR = standardized root mean square residual.
It is also clear that further research is needed to learn Tables A1–A3 present the findings for each pairwise
how consumer reactions to global brands might be comparison by ethnicity. African Americans and His-
shaped by marketing stimuli that are standardized panics are compared in Table A1, in which the well-
across ethnic groups, compared with efforts adapted to fitting baseline model establishes the equality in factor
a specific ethnic segment. Such efforts would speak patterns between the two ethnicities.
directly to the apparent social identity conflict affecting
members of these ethnic groups, between their aspira- The second row in Table A1 shows that the first-order
tion toward the mainstream and their desire to stay factor loadings are also invariant for African Americans
close to their own heritage. and Hispanics, and the third row further demonstrates
3. Equality of second-order factor loadings χ2(149) = 263.14 β31, β41, β51, and β61 invariant for
(see Figure 1) χ2d(4) = 5.00, p > .28 African and Hispanic Americans.
Notes: RMSEA = root mean square error of approximation, NNFI = nonnormed fit index, CFI = confirmatory factor analysis, and SRMR = standardized root mean
square residual.
that the second-order factor loadings are invariant as chase is statistically lower for Caucasians than for His-
well. Next, we tested for the invariance of the three panics. Likewise, the error variance for attitude is statis-
paths (β71, β81, and β87) and found that all three are tically lower for Caucasians than for Hispanics (row 7 in
equal across African Americans and Hispanics (see rows Table A2). Finally, the error variances in purchase are
4–6 in Table A1). The last two rows in Table A1 pres- invariant for Caucasians and Hispanics (row 8).
ent the findings for the test of equality of error variances
in the attitude and purchase factors; note that we can- Table A3 presents the findings for the comparison of
not reject the invariance of these error variances. Caucasians and African Americans. The first two rows
show that the factor patterns and factor loadings are
Table A2 summarizes the tests of invariance of parame- invariant for Caucasians and African Americans. In con-
ters for Caucasians and Hispanics. The results in rows trast, the third row in Table A3 indicates that the second-
1–5 show that we cannot reject the hypotheses that the order factor loadings for Caucasians on convenience and
factor patterns, first- and second-order factor loadings, expressive are statistically lower than for African Ameri-
and paths from antecedents to attitude and from cans, whereas the second-order factor loadings for Cau-
antecedents to purchase, respectively, are invariant. Row casians on quality and social are statistically greater than
6 in Table A2 shows that the path from attitude to pur- for African Americans. Rows 4–6 reveal that the paths
2. Equality of factor loadings χ2(145) = 444.50 Factor loadings invariant for Cau-
χ2d(7) = 13.03, p > .05 casian and Hispanic Americans.
3. Equality of second-order factor loadings χ2(149) = 448.62 β31, β41, β51, and β61 invariant for for
(see Figure 1) χ2d(4) = 4.12, p > .40 Caucasian and Hispanic Americans.
4. Equality of β71 χ2(150) = 449.57 β71 invariant for for Caucasian and
χ2d(1) = .95, p > .30 Hispanic Americans.
5. Equality of β81 χ2(151) = 451.40 β81 invariant for for Caucasian and
χ2d(1) = 1.83, p > .15 Hispanic Americans.
Notes: RMSEA = root mean square error of approximation, NNFI = nonnormed fit index, CFI = confirmatory factor analysis, and SRMR = standardized root mean
square residual.
from antecedents to attitude and purchase are statisti- should reflect the mean scores reported in Tables 5
cally greater for Caucasians than for African Americans. and 6 closely. The results (Table A4) are in agreement
Finally, the last two rows in Table A3 indicate that the with the raw item means. There were no significant dif-
error variances in attitudes and purchase are greater for ferences between Hispanics and African Americans for
African Americans and greater for Caucasians, respec- any of the seven factors (right-hand column in the
tively. To put the findings in Table A3 in perspective, we table). However, the contrast was significant for the
note that though the pointed-out parameters (which pairings involving Caucasians for five of the seven fac-
were not invariant) suggest statistical differences, the tors. With Caucasian factor means fixed at zero for
actual magnitude of differences is relatively small. It comparison, the significant positives in the table indi-
appears that the large sample sizes for both Caucasians cate higher factor means for the two non-Caucasian
and African Americans may account for the statistical groups. Both African Americans and Hispanics show
differences. Small differences for large sample sizes tend significantly higher factor means for the ethics, quality,
to be magnified. The invariance analyses presented in social, expressive, and attitude constructs, whereas no
Tables A1 and A2 seem to support this conjecture. significant differences emerged for convenience and
purchase. As previously, non-Caucasians are more
Finally, we tested whether differences in factor means positive on most associations, though Caucasians also
among the groups were significant. The factor means appreciate the convenience of global brands. Again,
2. Equality of factor loadings χ2(145) = 503.62 Factor loadings invariant for Caucasian
χ2d(7) = 7.37, p > .40 and African Americans.
3. Equality of second-order factor loadings β31: χ2(146) = 612.07 βC31 < βAM
31
(see Figure 1) χ2d(1) = 108.45, p > .001
Notes: RMSEA = root mean square error of approximation, NNFI = nonnormed fit index, CFI = confirmatory factor analysis, and SRMR = standardized root mean
square residual.
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ACKNOWLEDGMENTS
Zhang, Yinlong and Adwait Khare (2009), “The Impact of The authors thank Chris Janiszewski, Robert Thomas,
Accessible Identities on the Evaluation of Global Versus Local and participants in the 2007 MSB Marketing Camp for
Products,” Journal of Consumer Research, 36 (3), 524–37. helpful comments on previous drafts of this article.