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Global Brands in the United States:

How Consumer Ethnicity Mediates


the Global Brand Effect
Claudiu V. Dimofte, Johny K. Johansson, and Richard P. Bagozzi

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

I international markets and enjoy high levels of recogni-


tion across the world are described as global brands
(Dimofte, Johansson, and Ronkainen 2008). Research
2004), and generally have an advantage over local
brands (Holt, Quelch, and Taylor 2004).

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)

Global Brands in the United States 81


ceptions and attitudes. Using a large cross-country data- cognitive structures underlying consumer response to
base from Young & Rubicam, Johansson and global brands across all ethnic groups.
Ronkainen (2005) identify the number of countries in
which the brand appears among the top 150 as a meas- We structure the next sections as follows: First, we dis-
ure of globality and show its positive effect on brand cuss prior research in more depth, covering both global
esteem. In summary, there seems to be a global brand brand and consumer ethnicity research. Then, we
effect that is both affective and cognitive and influences develop the conceptual framework and hypotheses.
attitudes and behavior (see Chaudhuri and Holbrook Next, we describe the survey data collection stage and
2001). present sample characteristics. This is followed by an
analysis of U.S. consumers’ associations with the global
Most global brand findings are based on cross-national brand construct and an assessment of the degree to
samples and suggest that the global brand effect is par- which previous literature findings employing cross-
ticularly strong in less developed countries (Alden, national samples are replicated. This leads to the devel-
Steenkamp, and Batra 1999; Batra et al. 2000). The cur- opment and estimation of a structural equation model
rent research is the first attempt to identify whether the designed to test the cognitive consistency among the
affective and cognitive associations with global brands uncovered global brand beliefs, attitudes, and brand
are the same across different ethnic consumer groups in choices. The final section summarizes and discusses the
the United States. Researching global brands in an results and concludes with an outline of managerial
American context is a challenge because a majority of implications and suggested avenues for further research.
the best-known global brands are American (e.g.,
approximately two-thirds of Interbrand’s annual list of
the 100 Best Global Brands are usually U.S. brands) and LITERATURE REVIEW
it is uncertain whether U.S. consumers would exhibit Global Branding Research
any global brand effects. They might like Coca-Cola,
Nike, and Levi’s, but these brands might be viewed as Although the practitioner press on global brands is sig-
local. Furthermore, U.S. consumers tend to be more nificant—and branding in general has attracted a vast
diverse than those in most other mature market amount of attention in recent years (see Keller 2007)—
economies, with large ethnic-based market segments. academic research on global brands is more limited.
This enables us to identify potential differences between Roberts and Cayla’s (2009) review of the global brand
Caucasian Americans and ethnic minority markets. literature suggests that a reason for this is the problem
Because of their heritage, ethnic segments such as His- of operationalization. Defining the “global brand”
panics and African Americans display similarities with poses conceptual and measurement problems. Although
consumers in less developed markets (O’Hare 1987; most agree that recognition and availability are the key
Schwartz 1987). The goal of this study is to assess factors, academic work tends to define “global” in
empirically whether their responses to global brands terms of consumer perceptions, whereas practitioners
diverge from those of majority Caucasian consumers typically define it as a matter of actual reach and avail-
and replicate those of consumers in less developed ability (e.g., ACNielsen 2001). As a result, published
countries. articles on the topic have shown results that are not
always consistent.
This study represents a market segmentation analysis of
U.S. consumer perceptions of global brands and their In a cross-national effort to uncover consumers’ associa-
impact on actual purchase behavior. We develop a theo- tions with global brands, Holt, Quelch, and Taylor
retical framework from acculturation theory to provide (2004) identify four main features of the global brand
the conceptual account underlying the differences construct: quality signal, global myth, social responsibil-
among the three largest U.S. ethnic market segments in ity, and American values. They then employ these dimen-
terms of global brand perceptions and attitudes. Over- sions, developed from focus group findings in different
all, we observe more favorable attitudinal responses to nations, in a survey administered in 12 widely different
global brands from African American and Hispanic con- countries, including the United States, the United King-
sumers than from Caucasian consumers but comparably dom, Brazil, Japan, Indonesia, and Turkey. The survey
high purchase levels across all three segments. A struc- covers several product categories and elicits responses to
tural model confirms the stability and coherence of the 16 global brands, including Nike, Mercedes-Benz,

82 Journal of International Marketing


Nokia, Nestlé, and BP. Averaging across brands and toward the advanced economies. For example, Kwak,
countries, the study finds that quality is the main reason Jaju, and Larsen (2006) show that ethnocentric and
for preferring a global brand (44%), followed by global antiforeign/antiglobal attitudes exist in some segments
myth (12%) and social responsibility (8%), with even in these countries.
approximately one-third of the preference variance left
unexplained. American values were not a significant fac- Batra and colleagues (2000) find similar evidence that
tor in choice. developing countries’ consumers view nonlocal (i.e., for-
eign) brands as preferable to local brands. They show
What consumers associate cognitively with global how these consumers aspire to a greater global commu-
brands as a general concept has also been researched by nity and, in the process, downgrade their own brands
Dimofte, Johansson, and Ronkainen (2008). Using a relative to global brands. As Holt, Quelch, and Taylor
U.S.-based sample, they show that global brands are (2004) also document, the aspirational factor seems to
viewed as widely available, well recognized, standard- be salient in these countries.
ized, more powerful, more cosmopolitan, and subject to
more stringent social responsibility standards than other Steenkamp, Batra, and Alden (2003) find that perceived
brands. Other characteristics, including higher quality, globality (using the equivalent term “globalness”) posi-
were not uniformly associated with global brands but tively affects both perceived brand quality and prestige.
varied contingent on consumers’ reported attitudes. For Drawing on U.S. and Korean samples, the study con-
example, Dimofte, Johansson, and Ronkainen did not trols directly for the possible impact of a strong local
find the higher-quality signal from global brands that brand, to help assess the differential effect from global-
Holt, Quelch, and Taylor (2004) previously uncovered ness. The results suggest that brand globality has a
among U.S. consumers. stronger total effect than the local brand value, even
when the local brand is comparably strong.
Given the relative paucity of research on the topic, it is
not yet clear whether consumers actually look for global Using the Young & Rubicam BrandAsset Valuator data,
brands or local brands. Despite the preoccupation with Johansson and Ronkainen (2004) demonstrate that
these brands in the academic and managerial literature, brands deemed as more global (measured as the number
none of the current customer-based brand equity data- of countries in which it is listed among the top 150
bases (e.g., Young & Rubicam’s BrandAsset Valuator, brands) have higher levels of esteem. Coupled with
Interbrand’s 100 Best, EquiTrend, Millward-Brown’s Steenkamp, Batra, and Alden’s (2003) findings on the
BrandZ) measure the degree to which a brand is per- prestige of global brands and Dimofte, Johansson, and
ceived as global or local. As Roberts and Cayla (2009, Ronkainen’s (2008) findings on status, the evidence sug-
p. 352) summarize in their review of the global brand- gests that, in general, global brands are perceived as
ing literature, “there is still little research investigating having more of an affective cachet than other brands.
how consumers come to think of certain brands as
global.” However, a few articles do suggest that local brands can
command stronger consumer allegiance than global
The research on the effects of global brands on attitude brands. For example, Schuiling and Kapferer (2004) use
and behavior tends to measure the perceived globalness Young & Rubicam data on brands in the European mar-
of a brand directly, focusing mainly on wide reach and kets to show that in mature markets, local brands are
recognition. Alden, Steenkamp, and Batra (1999) were often rated higher in terms of affinity and quality than
the first to indicate that globally positioned brands global brands. Kapferer (e.g., 1997, 2005) has several
might be more attractive than local brands. Their study publications that emphasize the strengths of local
documents how global brands may be especially suc- brands. Although these writings rely mostly on anec-
cessful in less developed countries. The explanation is dotal evidence, it is possible that in more mature mar-
that “consumers in these markets may admire the ‘eco- kets, the aspirational characteristics of the global brand
nomic center’ and believe that production technologies are less salient.
in their own countries are less advanced; ownership of
brands from the West increases the owner’s status in Ethnic Groups in the United States
many developing countries” (Alden, Steenkamp, and
Batra 1999, p. 84). This does not necessarily mean that The term “ethnic groups” refers to “broad groupings of
consumers in these countries are universally aspiring individuals on the basis of both race and culture of ori-

Global Brands in the United States 83


gin” (Phinney 1996, p. 919). In the social psychology income in the United States was $48,201 in 2006, the
literature, it is common to distinguish three aspects of African American average stood at $31,969 and the
ethnicity: (1) cultural values, attitudes, and behaviors of Hispanic at $37,781 (U.S. Census Bureau 2009). In con-
groups; (2) the strength of ethnic identity claimed by trast, the smaller Asian ethnic group recorded a much
group members; and (3) the experiences associated with higher median income of $64,238.
minority status, such as prejudice and powerlessness
(Phinney 1996). Our main concern here is the first of The African American segment has long been of special
these aspects. interest to marketers, with products adapted for their
special needs, especially in cosmetics, personal care prod-
The majority Caucasian population in the United States ucts, food, and print media (e.g., O’Hare 1987; Pitts et
is typically regarded as differing from minority groups al. 1989). Advertising and promotional efforts are also
(e.g., Berkson 1969; Huntington 2004). For example, in routinely designed for the black market by automobile
terms of culture, Caucasians emphasize social independ- companies and other manufacturers (Halliday 2000).
ence, whereas African American, Hispanic, and Asian Green (1995) finds that African American and Anglo
minorities all emphasize interdependence and an orienta- American consumers react differently to various sales
tion toward the group (Huntington 2004). Pollit’s (1994) promotions (e.g., coupon offers, product displays), sug-
research suggests similarities between African American gesting that the two segments have distinct response pat-
and Hispanic children and those in developing countries, terns to marketing stimuli. More important for our pur-
a parallel that does not apply to Caucasian children. poses, a comparative study of African American and
Other research finds that American identity, or the sense Caucasian consumers shows that in terms of their mar-
of being American, strongly correlates with self-esteem ketplace socialization, the former group has more posi-
for white adolescents but not for African American and tive attitudes toward advertising and reports greater tele-
Latino groups (Phinney, Cantu, and Kurtz 1997). vision exposure (Bush, Smith, and Martin 1999).

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

84 Journal of International Marketing


Americans in terms of looking for bigger, national associated with the respective ethnic subgroups. There-
brands relative to smaller, local ones “because of a desire fore, our basic conceptual proposition is that previous
to impress others” (Wilkes and Valencia 1986, p. 252). findings regarding global brands in less developed coun-
tries carry over into similar attitudes and behaviors
Some research involves direct comparisons of minority among minority groups toward global brands in the
segments in advanced countries with consumers in United States.
the home country. Gentry, Jun, and Tansuhaj (1995) find
that conceptual models describing the consumer behav- CONCEPTUAL FRAMEWORK AND
ior of ethnic groups in the United States apply to the
HYPOTHESES
consumers in countries from where the immigrants came.
For example, Mexican American consumers are “more Defining a Global Brand
akin to consumers in Mexico than to the typical
Caucasian American” (Gentry, Jun, and Tansuhaj 1995, Following Dimofte, Johansson, and Ronkainen (2008),
p. 137). Similarly, Darley and Johnson (1993) show we define a global brand as a brand that is widely avail-
how the African American marketplace behavior and able and universally recognized. It is a perceptual con-
attitudes toward advertising reflect those observed in less struct and therefore is likely to differ across individuals.
developed countries in Africa and Asia, including more What the construct means to the individual consumer
positive attitude toward the globalization process. depends on his or her knowledge of and experience with
actual brands. From the knowledge and experience with
Thorelli (1981) describes a consumerism life-cycle pat- specific brands, the consumer infers what characterizes
tern theory according to which responses to marketing- a global brand, indicating that the image of a global
related variables are inversely related to the level of eco- brand is a more abstract concept than the image of a
nomic development. At an early stage, consumer specific brand. This is the conceptualization implicit in
responses are basically positive, but as economic matu- Holt, Quelch, and Taylor’s (2004) study, which captures
rity is reached, the responses tend to become more skep- the meaning of a global brand by averaging consumer
tical and averse to what is perceived as manipulation. responses across a selection of 16 global brands.
According to the theory, the minority ethnic segments
addressed here are likely finding themselves at an earlier In principle, the global brand construct can vary in
stage of the consumerism life cycle and have yet to degree, so a brand can be more or less global (see
develop the more radical, negative attitudes toward mar- Steenkamp, Batra, and Alden 2003). However, in this
keting that Caucasian consumers in developed countries study, we follow the common use of the construct—that
evidence (see Thompson and Arsel 2004). is, simply to characterize (or label) a brand that is per-
ceived to be widely available and recognized as global.
The French and English consumer subcultures in Canada The study traces the affective and cognitive associations
have also been studied extensively. This literature sup- that consumers from different ethnic backgrounds have
ports the argument that even within advanced economies, with the construct and how they respond to these
ethnic differences can highlight distinct patterns of con- associations.
sumer response to marketing variables. For example,
Schaninger, Bourgeois, and Buss (1985) find that the
French- and English-speaking Canadians differ in terms Global Brands and Ethnicity
of a variety of consumption behaviors traced directly to
the French and English heritage of these cultural sub- The theoretical framework linking the global brand
groups. Bergier (1986) shows how Canadian consumers associations to consumer attitudes and behavior draws
can reliably be grouped into distinct segments by statisti- on the existing literature in social-psychological accul-
cal clustering algorithms. Presaging our study, Schaninger, turation theory (e.g., Berkson 1969; LaFromboise, Cole-
Bourgeois, and Buss (1985) suggest that a similar ethnic man, and Gerton 1993; Padilla and Perez 2003). We
segmentation applies in the United States between Cau- propose that the two ethnic minorities considered—
casian consumers on the one hand and African American African Americans and Hispanics—face a fundamental
and Hispanic consumers on the other hand. value conflict. On the one hand, they take pride in their
historical roots and therefore draw on their heritage for
It seems clear that ethnic differences in the United States guidance in their current lives, including their consumer
reflect the cultural heritage from the home countries social identities. On the other hand, they naturally

Global Brands in the United States 85


aspire to belong to the mainstream of the society in is arguable that compared with Caucasian consumers,
which they live. The conflict arises because their roots the aspirational aspect will be greater for minority con-
are set in a different culture from where they live. This sumers. The latter consumers will have less need for the
conflict afflicts any immigrant to the United States to a aspirational aspects of global brands and instead may
greater or lesser degree (e.g., LaFromboise, Coleman, find local brands to be equally or even more attractive.
and Gerton 1993). Over time, as the United States has
developed a Caucasian mainstream culture, the conflict To connect these global brand associations to attitude
for Caucasians has become less severe than for other and behavior, we draw on cognitive consistency theory
groups. However, more recent immigrants and other (Festinger 1957). The basic proposition is that con-
ethnic groups that have stayed close to their roots tend sumers’ attitudes and purchase behavior toward global
to have a stronger sense of such a conflict (e.g., Padilla brands will be positively related to their global brand
and Perez 2003). As Phinney (1996, p. 924) describes, associations (Fishbein and Ajzen 1975). In general, con-
differences across groups are partly due to “varying his- sumers will form attitudes toward brands based on their
torical experiences … including slavery, internment, beliefs about the branded products, and they will exhibit
relocation, and immigrant or refugee status.” It is a purchasing behavior (as moderated by market factors)
question of individual identity, of “who you are,” as in accordance with their attitudes. Actual purchase
some writers have emphasized (e.g., Huntington 2004). behavior and choices of brands depend on basic market
factors, such as prices, product features, and availability.
It is generally accepted that consumption behavior, espe- Consumer demographics—including income, household
cially a conspicuous brand choice, is to some extent size, and age—are also likely determinants of individual
reflective of individual identity and social aspirations. choices. In this sense, ethnicity is not a directly causal
The original Veblen (1899) treatment of conspicuous variable. The proposition of cognitive consistency is
consumption as expression of social standing was the simply that consumers will act in ways that appear
first to bring this out, and current branding literature rational given their stated beliefs and attitudes about
explicitly connects brands to consumer identity and need global brands. Moreover, these individual beliefs, atti-
for self-expression (e.g., Holt 2004). Similarly, tudes, and behaviors are not formed independently but
Askegaard, Arnould, and Kjeldgaard (2005, p. 168) find are mediated by ethnic background.
that “immigrant consumers use products and consump-
tion practices to negotiate differences between cultures
while forging contingent identities derived from the dif- Hypotheses
ferences.” Thus, choice of brand, especially for product
categories with social visibility, constitutes an expression We first introduce a general hypothesis about the
of identity and achievement. We suggest that the global strength of globality as a brand choice criterion. Judging
brand aspirational effect uncovered by researchers such from the literature, the globality of a brand is not neces-
as Alden, Steenkamp, and Batra (1999) represents this sarily an important attribute. However, because global
kind of expression, and we propose that the same brands are more widely known and recognized than
expression of aspiration might be at work among the other brands, they are more effective signals for social
two minority ethnic groups studied herein. identification purposes. This is particularly important
for ethnic minorities. Thus, we propose the following
Given the demonstrations of perceived social cachet for hypothesis:
global brands in the literature, it is likely that global
brands will be particularly attractive as self-expressive H1: African American and Hispanic consumers
markers and identity forgers. They are well known and will find the globality of a brand to be more
widely recognized and, thus, more adept and effective at important than will Caucasian consumers.
serving a social function. They should be particularly
useful among minority consumers who aspire to greater As the literature review suggests, the attitudes toward
recognition and a crystallization of their particular advertising, brands, and marketing in general in less
social identity. They may not be as representative as a developed countries are more favorable than in
more local brand of the consumers’ ethnic heritage and advanced markets. The general attitude toward globali-
therefore will possibly create a conflict in the con- zation in these countries is generally more positive as
sumers’ minds that needs to be negotiated (see well. This represents the aspirational aspect of globali-
Askegaard, Arnould, and Kjeldgaard 2005). However, it zation and suggests a more positive attitude toward

86 Journal of International Marketing


global brands. These findings should similarly hold for Our final hypothesis is that these two ethnic groups as
African Americans and Hispanics in the United States, well as the Caucasian majority exhibit cognitively con-
suggesting that they are more positive toward global sistent links among beliefs, attitudes, and purchase
brands than Caucasian consumers. Thus, we formally behavior. In terms of the structural relationships, the
hypothesize the following: proposition is that differences in attitudes and behavior
derive from differences in the salient beliefs. Formally,
H2: African American and Hispanic consumers we hypothesize the following:
will have more favorable attitudes toward
global brands than Caucasian consumers. H5: The estimated coefficients linking global
brand beliefs, attitudes, and purchase behav-
In line with the cognitive consistency model, this posi- ior will be the same for the African American,
tive attitude reflects certain beliefs about global brands. Hispanic, and Caucasian ethnic groups.
As reviewed previously, prior research suggests that
there are certain perceived benefits from global brands.
They might offer more status or prestige, be perceived as DATA COLLECTION
offering high quality, be more socially responsible, or
offer a cosmopolitan aura. Not enough evidence or We drew a survey sample from an online panel of more
theory exists to suggest more precise hypotheses regard- than three million consumers across the United States in
ing these beliefs; therefore, we simply propose that the early 2008. The respondents were solicited from the
two ethnic groups under investigation will have more panel through an e-mail message from the panel opera-
positive beliefs than Caucasian consumers about global tor providing the URL address to the survey. The mes-
brands. Thus, we hypothesize the following: sage specified how long the questionnaire would take to
complete but not the particular topic involved. As is
H3: Compared with Caucasian consumers, typical for these kinds of panels, members were paid by
African American and Hispanic consumers accumulating points through advertising exposure and
will perceive global brands as providing more survey participation. The panel operator monitored the
positive benefits. time spent answering a questionnaire and screened out
potential “cheaters,” who may simply be browsing the
The consistency model should apply to all three sub- survey indiscriminately, without paying attention to the
groups, such that the consumption behavior evidenced items.
in the marketplace will correspond to the beliefs and
attitudes reported. That is, the rate of purchases of
Item Development
global brands for the Caucasian group should be lower
than that of either the African American or the Hispanic
consumers. Given the expected lower beliefs and attitu- To derive measures of global brand beliefs that drive
dinal favorability ratings, Caucasian consumers should attitudes and behavior, we drew on Holt, Quelch, and
show lower purchase levels of global brands (when dif- Taylor’s (2004) survey research, the Young & Rubicam
ferences in market availability and prices are controlled data that Johansson and Ronkainen (2005) analyze, and
for). Thus, we hypothesize the following: Dimofte, Johansson, and Ronkainen’s (2008) recent
work. We used the resulting items to augment a set of
H4: Caucasian consumers buy global brands at a items used in general brand research. The aim was
lower rate than either African American or to identify the associations that represent specific
Hispanic consumers, all else being equal. benefits pertaining to global brands. Following Keller
(1993) and Hsieh (2002), we distinguished three types
We do not propose any specific hypotheses pertaining to of benefit associations: functional, symbolic, and
differences between African American and Hispanic experiential. Functional benefits refer to a brand’s
consumers. There are undoubtedly numerous differ- ability to solve basic consumer problems (e.g., quality,
ences between the segments, but none with obvious rele- value). Experiential benefits refer to the sensory
vance to global brands. Furthermore, previous research pleasure that consumers extract from the brand
has found similarities between the two segments in over- (e.g., excitement, style). Finally, symbolic benefits refer
all measures (e.g., Gardyn and Fetto 2003; Solomon to the less tangible aspects of a brand’s equity (e.g., more
2008). ethical, environmentally friendly).

Global Brands in the United States 87


We then formulated the items as comparative, posing dimensions of brands, not merely global brands (see
global brands as having more or fewer benefits than Table 1).
other brands. Thus, for example, a functional benefit
such as quality would be stated as “Global brands have The items in Table 1 are clearly not exhaustive. Other
higher quality than other brands.” Similarly, a symbolic affective and cognitive items have been suggested (e.g.,
benefit such as environmental concern would be Dimofte, Johansson, and Ronkainen [2008] use 56
phrased as a “particular concern” for global brands. We items). The responses are also likely to be highly related
phrased an experiential item such as exciting as “Global across constructs, and items are likely to be highly cor-
brands are more exciting than other brands.” From related, reflecting natural associations in memory. What
these sources (Dimofte, Johansson, and Ronkainen is important is to select items that represent the key con-
2008; Hsieh 2002; Keller 1993), we developed a list of structs. As Keller (1993) suggests, brand perceptions are
20 Likert-type items, tapping into a range of perceptual typically linked together in a kind of knowledge net-

Table 1. The 20 Global Brand Association Items

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

Notes: Likert scale: 1 = “strongly disagree,” and 6 = “strongly agree.”

88 Journal of International Marketing


work that produces more or fewer congruent associa- ing a list of 25 brands served to illustrate the concept
tions. The structural model is intended to capture this while avoiding a focus on a specific brand.
congruent network.
Next, the questionnaire asked respondents to indicate
Questionnaire their general familiarity with global brands and their
perceptions of global brands on the affective and cogni-
The online questionnaire introduced the topic as being tive belief items. The questionnaire then elicited the
“about brands” and started by asking about brands in respondents’ attitudes and purchase behavior regarding
general. The first seven items queried about the respon- global brands. The next section asked about the per-
dent’s familiarity with brands in general, the importance ceived characteristics of the typical global brand buyer
of brands when making buying decisions, and the atti- before covering the basic demographics of the
tude toward brands in general. The questionnaire then respondent.
asked respondents to indicate the importance of various
attributes when shopping and choosing a brand (ten Throughout the questionnaire, we formulated the Likert
items). scales (1 = “strongly disagree,” and 6 = “strongly
agree”) as six-point items to induce commitment and
We did not introduce the global brand construct until avoid neutral answers. We made no attempt to differen-
the third section, to ensure that the brand concept itself tiate among countries of origin, and we avoided specify-
had been well established and that the shift to the global ing any country in the questionnaire. We also avoided
brand would be more salient and discriminable. The the words “international” and “foreign,” maintaining
section first explicitly defined a global brand as one with the “global” context throughout the questionnaire.
“wide availability and recognition,” in contrast to
“other, more local” brands. At that point, we listed 25 Sample Characteristics
brands as examples of global brands. We chose the set
of brands to span a relatively wide distribution of prod- We attempted to achieve equal representation of males
uct categories, price points, countries of origin, and and females and limited the age groups to between 18
brand strength. In the order listed, the brands were and 55 years of age. Education categories ranged from
adidas, BMW, Canon, Coca-Cola, Colgate, Dell, Disney, high school to postgraduate. For ethnicity, we specified
Ford, Gillette, Google, Heinz, Heineken, Hertz, IKEA, 10%–15% African Americans and a similar amount for
Kellogg’s, Lenovo, L’Oreal, Marlboro, McDonald’s, Hispanics. Sampling was sequential, stopping when
Mercedes-Benz, Nike, Nokia, Samsung, Starbucks, 1300 responses had been collected. The final sample
and Xerox. The intent was to establish the global brand size, after we eliminated 52 incomplete answers (in
construct firmly in the respondents’ minds and make which respondents had logged off before finishing), was
sure they were considering the same global brand 1248. In general, the demographic results were in the
stimulus. specified range, and the sample represents today’s U.S.
consumer well (see Table 2). Gender was evenly split,
It should be emphasized that the questionnaire did not the sample age groups were well distributed, and the
ask respondents to evaluate these specific brands educational level was reasonably high. At 22.4%, the
directly. The reason was methodological. We were inter- African Americans made up a higher percentage than in
ested in the respondents’ associations with and the overall population (approximately 13% in 2008),
responses to the higher-level global brand construct. As and the Hispanics, at 14.2%, were closer to the target
research in categorization shows, averaging responses (approximately 15% in 2008).
across exemplars—in our case, actual brand names—
can yield results that are not valid for the higher-level The Hispanics were younger and had relatively more
category as a whole (see Archambault, O’Donnell, and men in the sample, and the African Americans included
Schyns 1999). Answers differ systematically with the a greater percentage of women. However, we decided
specific brands chosen. However, pretesting the ques- not to try to match the samples precisely but instead to
tionnaire without mentioning any brands at all showed do spot checks by selecting some of the African Ameri-
that people interpreted “global brand” differently. For can women and the young Hispanic men randomly to
example, in open-ended queries, several respondents test the mean scores. The results were robust. Overall,
equated “global brand” to a “foreign brand.” It was the characteristics of the employed sample mirror the
clear that respondents needed more clarification. Offer- U.S. consumer base well.

Global Brands in the United States 89


Table 2. Sample Demographics

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%

DATA ANALYSIS Overall, no ethnic group considered the globality of the


brand an important brand attribute. Still, the observed
We performed the data analysis by first calculating differences between Caucasian consumers on the one
mean responses for the three ethnic groups and then hand and African Americans and Hispanics on the other
using a t-test for assessing the significance of the statis- hand are significant and support H1. As expected, the
tical contrasts between the means to test H1–H4. Next, minority groups found globality to be more important
we tested H5 by means of a structural equation model. than the Caucasian consumers.

Importance of Globality Global Brand Beliefs


The results show the importance of brands in general Table 5 presents the mean responses to the 20 defini-
and what respondents think about globalization and tional, functional, experiential, and symbolic benefit
global brands generally (see Tables 3 and 4). As Table 3 items. The definitional items show that, as expected, the
shows, respondents paid attention to brands and respondents in all three groups agreed that global
thought that others did as well. They were generally in brands are largely the same everywhere, are more pow-
favor of globalization, especially African Americans and erful than other brands (though African Americans were
Hispanics. Table 4 shows that when choosing a brand, less certain here), and tend to dominate local brands.
good value, reliability, high quality, and low price are
important criteria across all three subgroups. For Cau- In terms of functional benefits, responses showed some
casians, globality was not important, whereas African variance across the three groups. Caucasians did not
Americans and Hispanics were somewhat more neutral. think that global brands have higher quality than other

90 Journal of International Marketing


Table 3. Mean Scores for Selected Brand and Globalization Items

African
Total Sample Caucasians Americans Hispanics
Item (N = 1248) (N = 792) (N = 279) (N = 177)

I don’t pay any attention to brands. 2.56* 2.63a 2.36a 2.55

I think people in general care about brands. 4.72* 4.67a 4.87a 4.73

One knows which country a global


brand comes from. 3.07* 2.97a,b 3.19a 3.36b

If I had the choice I would rather


buy an American brand. 4.52* 4.67a,b 4.30a 4.10b

On the whole, I think globalization


is a good thing. 3.93* 3.78a,b 4.18a 4.19b

*Significantly different from the 3.5 scale midpoint at p < .001.


Notes: Ethnic group means in the same row sharing a superscript are significantly different at the p < .05 level or better. Scale: 1 = “strongly disagree,” and
6 = “strongly agree”; midpoint = 3.5.

Table 4. Mean Importance of Selected Brand Attributes

African
Total Sample Caucasians Americans Hispanics
Brand Attribute (N = 1248) (N = 792) (N = 279) (N = 177)

Widely recognized 3.94* 3.90 3.97 4.06


Widely available 4.27* 4.22a 4.41a 4.25
High quality 4.60* 4.58 4.65 4.62
Reliable 5.23* 5.23a 5.35a 5.03a
Good value 5.16* 5.16a 5.24b 4.98a,b
Inexpensive 4.15* 4.19 4.16 4.01
Prestigious 3.49 3.36a,b 3.67a 3.80b
Highly ethical 4.12* 4.06a 4.30a 4.14
A domestic brand 3.75* 3.81a 3.62a 3.75
Country-of-origin image 3.98* 4.02 3.95 3.84
Globality 3.28* 3.16a,b 3.48a 3.48b

*Significantly different from the 3.5 scale midpoint at p < .001.


Notes: Ethnic group means in the same row sharing a superscript are significantly different at the p < .05 level or better. Scale: 1 = “not at all important,” and
6 = “extremely important”; midpoint = 3.5.

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-

Global Brands in the United States 91


Table 5. Mean Scores for Global Brand Associations

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

*Significantly different from the 3.5 scale midpoint at p < .01.


*Significantly different from the 3.5 scale midpoint at p < .001.
Notes: Ethnic group means in the same row sharing a superscript are significantly different at the p < .05 level or better. Scale: 1 = “strongly disagree,” and
6 =“strongly agree”; midpoint = 3.5.

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.

92 Journal of International Marketing


Attitude and Behavior brands in the stores, and it is possible that at least some
global brands are not readily available in less affluent
Table 6 presents the mean scores on the attitude and neighborhoods (Moore and Diez-Roux 2006). How-
behavioral items. Note first that familiarity with global ever, this should be reflected in differences in familiarity,
brands was similarly high and strong across all three which was not the case.
groups. Attitude scores were also relatively high, even
among Caucasians, and all three groups considered glo- Another possible explanation is price differences. Table
bality a positive (albeit relatively unimportant, as Table 5 shows that Hispanics and African Americans perceive
4 indicates) factor. On average, U.S. consumers, like global brands as more expensive, but they also perceive
those elsewhere, are generally positive toward global them as offering better noneconomic value. To test
brands. Three attitudinal items showed a positive asso- whether price was an issue, we ran a linear regression on
ciation with global brands as a category, though the one purchase item (“How often chosen global?” in
Caucasians showed consistently lower scores than either Table 6) against three independent variables: The first
African Americans or Hispanics, as H2 predicted. was an attitude measure (“favorableness” in Table 6),
the second was a perceived price item (“more expen-
However, the reported purchasing behavior reveals a sive” in Table 1), and the third was a perceived value
general similarity among the three groups. Despite their item (“better value” in Table 1). If price was a factor, we
generally lower attitudes toward global brands, Cau- would expect a significant, negative effect from the per-
casians bought the same proportion of global brands as ceived price variable, possibly countered by a perception
the other two groups. Both purchase behavior items of better noneconomic value.
showed the same pattern. The relatively stronger prefer-
ence for local brands did not seem to have much of a For Caucasian respondents (N = 792), the regression
role for the Caucasians. Therefore, H4 is not supported. produced the following estimates: βfavorable = .35
(p < .001), βexpensive = .09 (p < .001), βvalue = .12
One explanation for the difference could simply be less (p < .001), adjusted R2 = .30. The same equation for
access to global brands for African American and His- African Americans (N = 279) shows some differences:
panic consumers. However, the familiarity scores in βfavorable = .40 (p < .001), βexpensive = .04 (not signifi-
Table 6 are similar, suggesting that access is not an issue. cant), βvalue = .12 (p < .001), adjusted R2 = .30. Finally,
We do not have specific data on the availability of global differences are even more striking for Hispanics

Table 6. Attitude and Behavior Toward Global Brands

African
Global Brand Total Sample Caucasians Americans Hispanics
Variable (N = 1248) (N = 792) (N = 279) (N = 177)

Familiarity 4.61* 4.63 4.63 4.47

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

*Significantly different from the 3.5 scale midpoint at p < .001.


Notes: Ethnic group means in the same row sharing a superscript are significantly different at the p < .05 level or better. “How often chosen global” is anchored at
“never” and “every time”; “What percentage bought?” is measured in six percentage categories: 0, 1–10, 11–24, 25–49, 50–75, and 76–100. Scale: 1 = “low proglobal
scores,” and 6 = “high proglobal scores.”

Global Brands in the United States 93


(N = 177): βfavorable = .48 (p < .001), βexpensive = .03 (not exciting” and “more stylish”) and “social” (with indica-
significant), βvalue = .13 (p < .001), adjusted R2 = .36. tors “more status” and “more prestigious”). Symbolic
We then ran a Chow test of these regressions to evaluate benefits included one construct, “ethics,” with “more
the extent to which they were equal. As hypothesized, ethical” and “more environmental concern” as indica-
the pairwise tests indicated a significant difference tors. The indicators for the attitude and purchase con-
between Caucasians and the minority ethnic groups but structs comprised the items listed in Table 6. These indi-
not between Hispanics and African Americans. The cators show reasonably high Cronbach’s alphas, ranging
associated Chow test using the pooled minority groups from .77 to .64. Two of the constructs did not reach the
was significant: F = 8.79, p < .03. customary cutoff of .70 (convenience at .64 and ethics at
.66), but with two indicators, the alpha is not very con-
These results show greater price sensitivity on the Cau- clusive (see Hulin, Netemeyer, and Cudek 2001; Schmitt
casians’ part than among the Hispanics and the African 1996). The critical point here is the overall fit of the
Americans. This finding, coupled with the notion that model, which is good.
Caucasians do not believe very strongly that global
brands are more expensive (see Table 5), helps explain Next, we performed confirmatory factor analyses sepa-
what drove the surprisingly high level of global brand rately for each ethnicity on the measures of seven fac-
purchases among the Caucasians, in contradiction to tors: quality, convenience, expressive, social, ethics, atti-
H4. They responded positively to the perceived afford- tudes, and purchase behavior. Table 8 presents the
able prices of global brands, whereas both African overall findings, which show that the seven-factor con-
Americans and especially Hispanics found that the bet- firmatory factor analyses fit the data well in all three
ter noneconomic value in global brands outweighed ethnic groups, with all the fit measures meeting or sur-
their perceived higher prices. They bought them for passing standard cutoffs.
overall value (noneconomic in particular), whereas Cau-
casians were more concerned about low prices (eco- The initial specification placed the global brand con-
nomic value). The overall differences between Cau- struct represented by the belief constructs as antecedent
casians on the one hand and Hispanic and African to the attitude and purchase outcomes. We estimated
Americans on the other hand provide significant sup- this model using LISREL. The intent was to infer from
port for our conceptual account (see Table 7). the data how the global brand beliefs link up with the
attitudinal and behavioral responses in a plausible struc-
ture. We used the full sample for the specification analy-
THE COMPLETE MODEL sis, testing whether the model could be applied for all
three ethnic subgroups.
To estimate the cognitive structure linking brand beliefs
to attitudes and behavior for the three ethnic groups and In the final specification, the global brand stimulus also
test H5, we employed structural equation modeling. We links directly to the outcomes (attitude and purchase).
used the LISREL program (Jöreskog and Sörbom 1999) That is, not only does brand globality capture the asso-
for all the estimations. ciations reflected in the five constructs (which can be
considered components of globality), but as Figure 1
shows, globality also affects attitude and purchases
Model Specification directly.

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

94 Journal of International Marketing


Table 7. Overall Contrasts Between Caucasian and Non-Caucasian (African American and Hispanic) Consumers

Caucasians Non-Caucasians
Item (N = 792) (N = 456)

I don’t pay any attention to brands. 2.63a 2.43b


I think people in general care about brands. 4.67a 4.82b
One knows which country a global brand comes from. 2.97a 3.26b
If I had the choice I would rather buy an American brand. 4.67a 4.25b
On the whole, I think globalization is a good thing. 3.78a 4.18b

Same everywhere 3.84 3.79


More powerful 3.92 3.73
Dominate locals 4.06 4.05
Higher quality 3.48a 3.74a
Not high quality 2.59 2.56
Safer choice 3.25a 3.38a
Saves time 3.40a 3.58a
Predictable 3.80 3.78
Better value 3.33a 3.53a
More expensive 3.67a 3.96a
More exciting 3.10a 3.46a
More stylish 3.40a 3.59a
More prestigious 3.44a 3.74a
More status 3.96 4.10
Less intimate 3.42a 3.23a
Less personal 3.61a 3.35a
More ethical 2.90a 3.10a
More environmental 3.02a 3.23a
Unique aura 3.32a 3.66a
More up-to-date 3.49a 3.64a

Familiarity 4.63 4.57


Attitude favorableness 3.87a 4.11a
Is globality a positive? 4.29a 4.44a
How often chosen global? 3.32 3.29
What percentage bought? 3.39 3.35

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

Global Brands in the United States 95


Table 8. Parameter Estimates and Goodness-of-Fit Indexes for Seven-Factor Confirmatory Factor Analysis for Each
Ethnic Group

Factor Correlations

Caucasians (N = 792) Ethics Convenience Quality Social Expressive Attitude Purchase

Goodness-of-Fit Indexes 1.00

χ2(56) = 204.33 .62 1.00

RMSEA = .06 .70 .72 1.00

NNFI = .98 .64 .69 .68 1.00

CFI = .99 .76 .68 .78 .87 1.00

SRMR = .03 .55 .54 .72 .57 .63 1.00

.37 .67 .52 .51 .47 .68 1.00

Factor Correlations

African Americans (N = 279) Ethics Convenience Quality Social Expressive Attitude Purchase

Goodness-of-Fit Indexes 1.00

χ2(56) = 127.04 .66 1.00

RMSEA = .07 .64 .74 1.00

NNFI = .97 .65 .84 .62 1.00

CFI = .98 .83 .81 .68 .77 1.00

SRMR = .05 .48 .58 .60 .58 .59 1.00

.26 .61 .43 .52 .47 .74 1.00

Factor Correlations

Hispanics (N = 177) Ethics Convenience Quality Social Expressive Attitude Purchase

Goodness-of-Fit Indexes 1.00

χ2(56)= 62.06 .67 1.00

RMSEA = .03 .63 .69 1.00

NNFI = 1.00 .65 .74 .59 1.00

CFI = 1.00 .78 .69 .71 .79 1.00

SRMR = .04 .50 .35 .50 .57 .53 1.00

.39 .55 .50 .70 .58 .79 1.00

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

96 Journal of International Marketing


Figure 1. Structural Equation Model Capturing U.S. Consumers’ Cognitive Structure Related to Global Brands

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

Quality Social Expressive


η4 η5 η6
1 λ6 1 λ8 1 λ10

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

Global Brands in the United States 97


Table 9. Parameter Estimates, Explained Variance, and Goodness-of-Fit Indexes for Each Group

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.

98 Journal of International Marketing


brands, have specific beliefs about these brands, but, rates of global brands (H4). The Caucasian respondents’
among ethnic segments, do not agree on how well attitudes are more closely related to their assessment of
the global brands should be rated on quality, status, and the quality of global brands, whereas both African
other traits. In addition, although most of the consumers Americans and Hispanics pay more attention to hedonic
show positive attitudes toward both globalization and aspects of the brands, including prestige and stylishness.
global brands, Caucasians tend to rate global brands Because Caucasians do not find any higher quality in
lower than either African Americans or Hispanics. global brands, their attitudes are not particularly posi-
tive. In contrast, the more positive associations conjured
The rejection of H5 also shows differences in the struc- by global brands among African American and Hispan-
tural linkages among beliefs, attitudes, and behavior. ics (including perceptions of higher quality) translate
The main reason refers to the direct linkage between into significantly more positive attitudes (H2).
globality and behavior, which plays a much more signifi-
cant role for Caucasians than for the other two seg- However, although Caucasians’ perceptions and atti-
ments. The model estimates suggest that mostly generic tudes tend to be less favorable than those of African
issues, such as quality and convenience, drive Cau- American and Hispanic consumers, they nonetheless
casians’ behavior toward global brands. In contrast, buy global brands at the same rate as non-Caucasians
African American and Hispanics find much more hedo- (against the expectations in H4). Thus, the link between
nic pleasures in global brands. They care about global attitude and purchase is weaker for Caucasian con-
brands, whereas Caucasians demonstrate indifference, sumers, an inconsistency not explained by differences in
though they still buy them at the same rate, a finding access or familiarity but possibly originating in differ-
reflected in the direct path from globality to behavior. ences in price perceptions. Caucasians are price sensi-
tive, but because they do not perceive global brands to
be any more expensive than other brands, they buy
GENERAL DISCUSSION them. African Americans and Hispanics are not as price
sensitive, and though they perceive global brands as
This research demonstrates how global brand beliefs more expensive, they also find greater value in them, so
link up with attitudes and behaviors among three ethnic they purchase them. This finding is also consistent with
groups of U.S. consumers. The results suggest that there the notion that Caucasian consumers in the United
is cognitive consistency for all three groups among States are relatively more affluent than either African
beliefs, attitudes, and behavior and that globality, Americans or Hispanics. This pattern of behavioral
despite not being considered very important (especially responses is reflected in significantly different estimates
by Caucasian consumers), is a relevant attribute. Global of the path coefficients between attitude and behavior in
brands are significantly more salient and viewed more the structural model.
favorably by African American and Hispanic con-
sumers, in support of H1. This research shows that when it comes to global
brands, the U.S. marketplace exhibits similar character-
The results also show that these consumers perceive istics to other advanced markets but also to other devel-
global brands differently across ethnic groups. African oping markets. The results bolster Tung’s (2008) asser-
American and Hispanic market segments associate tion that cultural diversity can be analyzed within a
global brands with higher product quality, higher social multicultural nation. As in Western Europe, there is no
status and prestige, and superior style, reflecting similar explicit preference for global brands among Caucasians,
findings about global brands in prior research with con- but as in developing countries, there are minority groups
sumers in developing countries (in support of H3). In that prefer global brands. Similar to consumers in devel-
contrast, Caucasian consumers are less positive. They oping markets, consumers from minority ethnic groups
do not find global brands to be any more exciting than in the United States seem to find global brands more
other brands, and though they perceive them as imply- appealing than consumers in more advanced stages of
ing higher social status, they do not think their product the consumerism life cycle (Thorelli 1981).
quality is necessarily higher.
Limitations and Further Research
Across ethnic groups, consumers with more positive
perceptions of global brands also have more positive One limitation of the study is the question of possibly
attitudes overall and, as expected, show higher purchase omitted global brand beliefs and associations and

Global Brands in the United States 99


whether the African American and Hispanic homoge- Managerial Implications
neity is as strong as the results suggest. For example, the
significant difference in the “more powerful” item Under these conditions, is the globality of a global
between African American and Hispanic groups (see brand a strategic asset? The results suggest that the
Table 5) points to likely differences if we had included answer is affirmative. Similar to Kim and Chung’s
more items related to experiences of prejudice and pow- (1997) argument for international brand popularity as
erlessness (the third category of Phinney’s [1996] frame- an intangible asset, there is customer equity in a global
work of ethnicity dimensions). This is a fruitful area for brand that does not accrue to other brands (see Shimp,
further research. Samiee, and Madden 1993). However, the amount of
equity is likely to differ significantly across consumer
There are also limitations in the data collection. The segments (see Zarantonello and Schmitt 2010). In an
online sampling method does not allow for a truly rep- advanced economy such as the United States, the typical
resentative sample; especially among the minority Caucasian consumer is less concerned about globality.
groups, online access can vary considerably. Another In less developed countries, as in segments with disad-
potential weakness is that income data were not col- vantaged consumers, globality is a more salient and
lected in our survey; however, the demographics of the positively evaluated factor. Minority consumers are
three samples are well matched to the overall popula- more likely to explicitly consider global brands superior,
tion, and the results are in line with the presumption suggesting that they will more readily respond to overt
that Caucasians are relatively more affluent. Caucasians references in marketing communications to evidence of
perceive global brands as less expensive than minority globality.
groups do (see Roth 1995), and the Chow test shows
that they are less price sensitive. These results might seem to suggest that globality should
be a significant ingredient in any brand communications
In terms of additional research, it would be worthwhile targeting African Americans and Hispanic consumers;
to develop a more complete global brand attitudinal however, this might be too obvious a tactic. Given their
model by including social norms and motivation to emphasis on quality, these segments might respond more
comply. Consumption behavior of African American favorably to a direct appeal in terms of higher quality,
and Hispanic market segments is likely to involve spe- with the aspiration factor implied rather than empha-
cific social norms that affect attitudes and behavior sized. These goals can be achieved by establishing the
toward global brands, and assessing the role of these brand as a global player. Such a global connotation cre-
social factors would help in understanding differences in ates desirable associations among minority consumers.
behavior. In addition, recent research has indicated that the mere
accessibility of these consumers’ group identities may
Further research should also include the increasingly prime more positive evaluations of global brands (Zhang
important Asian American market segment, which is and Khare 2009). Moreover, the evidence is that glo-
relevant to the topic in terms of both its relatively bality does matter in a positive way for consumers in the
more cosmopolitan nature and its cultural roots. majority Caucasian segment as well. Thus, across the
As the one ethnic group that is more affluent than the board, being perceived as global puts a positive accent on
Caucasian ethnic majority, Asian Americans’ response the brand promise, even in the United States.
to global brands presents an interesting case, and further
work is required to assess the global brand effect among
them. APPENDIX: PAIRWISE TEST RESULTS

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

100 Journal of International Marketing


Table A1. Test of Hypotheses Comparing African Americans and Hispanics

Model Result Conclusion

1. Baseline (Figure 1) χ2(138) = 256.47 Factor pattern same for African


RMSEA = .06 and Hispanic Americans.
NNFI = .97
CFI = .98
SRMR = .05

2. Equality of factor loadings χ2(145) = 258.14 Factor loadings invariant for


χ2d(7) = 1.67, p > .97 African and Hispanic Americans.

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.

4. Equality of β71 χ2(150) = 263.14 β71 invariant for African and


χ2d(1) = .00, p = 1.00 Hispanic Americans.

5. Equality of β81 χ2(151) = 266.30 β81 invariant for African and


χ2d(1) = 3.16, p > .05 Hispanic Americans.

6. Equality of β87 χ2(152) = 267.98 β87 invariant for African and


χ2d(1) = 1.68, p > .19 Hispanic Americans.

7. Equality of ψ77 χ2(153) = 271.22 ψ77 invariant for African and


χ2d(1) = 3.24, p > .05 Hispanic Americans.

8. Equality of ψ88 χ2(154) = 271.31 ψ88 invariant for African and


χ2d(1) = .09, p > .75 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

Global Brands in the United States 101


Table A2. Test of Hypotheses Comparing Caucasians and Hispanics

Model Result Conclusion

1. Baseline (Figure 1) χ2(138) = 431.47 Factor pattern same for Caucasian


RMSEA = .07 and Hispanic Americans.
NNFI = .97
CFI = .98
SRMR = .05

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.

6. Equality of β87 χ2(152) = 457.81 βC87 < βH87


χ2d(1) = 6.41, p < .02

7. Equality of ψ77 χ2(152) = 455.83 ψC77 < ψH77


χ2d(1) = 4.43, p < .05

8. Equality of ψ88 χ2(152) = 451.64 ψC88 = ψH88


χ2d(1) = .24, p > .60

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,

102 Journal of International Marketing


Table A3. Test of Hypotheses Comparing Caucasians and African Americans

Model Result Conclusion

1. Baseline (Figure 1) χ2(138) = 496.47 Factor pattern same for Caucasians


RMSEA = .07 and African Americans.
NNFI = .97
CFI = .98
SRMR = .05

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

β41: χ2(146) = 605.70 βC41 > βAM


41
χ2d(1) = 102.08, p > .001

β51: χ2(146) = 607.83 βC51 > βAM


51
χ2d(1) = 104.21, p > .001

β61: χ2(146) = 611.20 βC61 < βAM


61
χ2d(1) = 107.58, p > .001

4. Equality of β71 χ2(146) = 611.20 βC71 > βAM


71
χ2d(1) = 107.58, p > .001

5. Equality of β81 χ2(146) = 603.03 βC81 > βAM


81
χ2d(1) = 99.41, p > .001

6. Equality of β87 χ2(146) = 607.58 βC87 < βAM


87
χ2d(1) = 103.96, p > .001

7. Equality of ψ77 χ2(146) = 605.99 ψC77 < ψAM


77
χ2d(1) = 102.37, p > .001

8. Equality of ψ88 χ2(146) = 609.05 ψC88 > ψAM


88
χ2d(1) = 105.43, 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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attitudes toward global brands but show the same pur- sumer Culture,” Journal of Marketing, 63 (January), 75–87.
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Schyns (1999), “Blind to Object Changes: When Learning the
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Global Brands in the United States 105


Steenkamp, Jan-Benedict E.M., Rajeev Batra, and Dana L. THE AUTHORS
Alden (2003), “How Perceived Brand Globalness Creates
Brand Value,” Journal of International Business Studies, 34 Claudiu V. Dimofte is Assistant Professor of Marketing
(1), 53–65.
at the McDonough School of Business, Georgetown
Thompson, Craig J. and Zeynep Arsel (2004), “The Starbucks University, where he specializes in consumer informa-
Brandscape and Consumers’ (Anticorporate) Experiences of tion processing and attitude formation. A native of
Glocalization,” Journal of Consumer Research, 31 (1), Romania, he holds a doctorate in Marketing from the
631–42. University of Washington in Seattle. His current
research focuses on implicit consumer cognition, includ-
Thorelli, Hans B. (1981), “Consumer Policy for the Third
World,” Journal of Consumer Policy, 5 (3), 197–211.
ing unconscious processing of brand and marketing
communications information.
Tung, Rosalie L. (2008), “The Cross-Cultural Research Imper-
ative: The Need to Balance Cross-National and Intra-National Johny K. Johansson is McCrane/Shaker Professor of
Diversity,” Journal of International Business Studies, 39 (1), International Business and Marketing at the McDo-
41–46.
nough School of Business, Georgetown University,
U.S. Census Bureau (2009), Statistical Abstract of the United where he specializes in international marketing strategy
States: 2009, 128th ed. Washington, DC: Government Print- and consumer decision making. A native of Sweden, he
ing Office. holds a doctorate in Marketing from the University of
California at Berkeley. His current research focuses on
——— (2010), State and County QuickFacts, (accessed May global branding issues in multinational corporations
26, 2010), [available at http://quickfacts.census.gov/
and their stock market performance.
qfd/states/00000.html].

Valencia, Humberto (1989), “Hispanic Values and Subcultural Richard P. Bagozzi is Dwight F. Benton Professor of
Research,” Journal of the Academy of Marketing Science, Behavioral Science in Management at the Ross School of
17 (1), 23–28. Business, University of Michigan, and Professor of Clinical,
Social, and Administrative Science at the College of
Veblen, Thorstein (1899), The Theory of the Leisure Class. New
York: Macmillan. Pharmacy, University of Michigan, where he does basic
research into human emotions, decision making, social
Wilkes, Robert E. and Humberto Valencia (1986), “Shopping identity, and action. He holds a doctorate in Marketing
Related Characteristics of Mexican-Americans and Blacks,” from Northwestern University. His work has been
Psychology and Marketing, 3 (4), 247–59. applied to the study of consumers, patients, doctors,
Zarantonello, Lia and Bernd H. Schmitt (2010), “Using the
salespeople, managers, and organizations.
Brand Experience Scale to Profile Consumers and Predict
Consumer Behavior,” Journal of Brand Management,
forthcoming.
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.

106 Journal of International Marketing


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