ASSOCIATION FOR CONSUMER RESEARCH
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Desirable Brand Images in East Asia and Their Determinants: Analyses From a Large-Scale Consumer Survey
Bernd Schmitt, Columbia University, USA
Kamel Jedidi, Columbia University, USA
Data analyses from the 2013 “ACI Pan-Asian Wave Study” indicate that brand images in developed markets are uniform across
markets, and largely driven by experiential needs. However, the images are different for emerging markets, where both experiential
and functional needs are important for local and global brands.
[to cite]:
Bernd Schmitt and Kamel Jedidi (2015) ,"Desirable Brand Images in East Asia and Their Determinants: Analyses From a LargeScale Consumer Survey", in AP - Asia-Pacific Advances in Consumer Research Volume 11, eds. Echo Wen Wan and Meng
Zhang, Duluth, MN : Association for Consumer Research, Pages: 233-233.
[url]:
http://www.acrwebsite.org/volumes/1018897/volumes/ap11/AP-11
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This work is copyrighted by The Association for Consumer Research. For permission to copy or use this work in whole or in
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Desirable Brand Images in East Asia and their Determinants: Analyses
from a Large-Scale Consumer Survey
Bernd Schmitt, Columbia Business School, USA
Kamel Jedidi, Columbia Business School, USA
EXTENDED ABSTRACT
What type of images do consumers desire for brands, and what
motivates them to prefer such images? Exploring this issue with
Asian consumers, we investigate whether all consumers in Asia
share similar brand images or whether a differentiated model (e.g.,
contrasting developed vs. emerging markets, or a country-based
model, or a city/region-within-country model) is needed. Moreover,
we trace back these similarities and differences to personal values
and socio-demographic factors. The research consists of a conceptual
framework, analyses of a large-scale consumer survey conducted in
ten countries in Asia, and practical recommendations for brand positioning in Asia.
While some scholars argue for uniformity (due to shared cultural background or the emergence of a consumer culture), others
have documented cross-national difference (Alden, Steenkamp, and
Batra 1999; Hofstede and Bond 1988; Hofstede and Hofstede 2005;
Steenkamp and DeJong 2010). Similarly, some practitioners argue
for a global positioning approach and others for localization. To find
out which view is more valid, we analyze data from the “Pan-Asian
Wave Study” of the Institute on Asian Consumer Insight (ACI), collected in 2013 on 6873 consumers in four “developed countries”
(Japan, The Republic of Korea, Singapore and Hong Kong) and
six “emerging countries” (China, India, Indonesia, the Philippines,
Malaysia, and Thailand), including Tier 1 and Tier 2 cities in most
markets.
Specifically, we analyzed brands positioned as local or foreign
and as functional (also referred to as “utilitarian”) and experiential
(or “emotional”). We developeded a conceptual model that traces
back brand perceptions to consumer needs and personal values.
Based on prior research (Zarantonello, Jedidi and Schmitt 2012), we
hypothesized a strong and positive relationship between functional
consumer values and local brands, and experiential consumer values and global brands. Overall, we also proposed a positive relation
between functionality and global brands, and experience and local
brands.
At the aggregate model (“all of Asia”), all four structural parameter estimates were significant (p < .05). The strongest relation was
between experiential needs and foreign brands (.61). A two-group
analysis contrasting consumers from developed vs. emerging markets improved the fit statistics: In developed markets, experiential
needs had positive relationships (from .33 and .75) with both foreign
and local brands; the other two relationships were not significant. In
emerging markets all four relationships were significant. Subsequent
analyses within developed and within emerging markets resulted in
a further improvement for emerging consumer markets but not developed markets.
Next we traced Asian brand perceptions back to psychological values. The study focused on two self-enhancement related and
consumer-relevant values from Schwartz’s (1994) “universal values”
framework: achievement and hedonism. A two group analysis, contrasting “developed markets” vs. emerging markets, again showed
a significant improvement compared to an aggregate “all-of-Asia”
model. The key prior findings regarding the relationships between
consumer needs and brand preferences were replicated. In addition,
in developed markets hedonism was not a major driver for consumer
needs and brand preference. There was, however, a strong positive
relationship between achievement and experiential consumer needs.
The relation between achievement and functionality was weaker and
functionality did not affect brand preference. In contrast, in emerging markets, achievement was more strongly related to functionality, which in turn positively related to local brands and negatively to
global brands. Achievement (as well as hedonism) were related to
experiential needs and then to global brands.
In a final analysis, we identified socio-demographic determinants (related to needs and brand preferences) that either directly or
indirectly affected psychological values. Both the direct and indirect routes were significant. Replicating the previous analysis, both
achievement and hedonism were closely related to functional and
experiential consumer needs. Moreover, in terms of significance, the
key determinants on values were age, marital status and education. In
Sum, socio-demographic factors affected personal values, which in
turn influenced the relationship between consumer needs and brand
preferences.
In sum, our overall conceptual model was empirically confirmed. Methodologically, our differential results call into question
cultural research that compares consumers in the “east” with consumers in the “west” by arbitrarily selecting consumers in the “east.”
Practically, we recommend that marketers treat developed Asian
countries as one market, and position local and global brands experientially there. In addition, they should treat China, India, Thailand,
Philippines, Malaysia, and Indonesia as rather distinct markets with
unique positioning. Moreover, appeals to “being successful” seem
to be critical in developed market, whereas in emerging markets, for
global brands, messages should be about fun and indulgence, but
achievement-oriented for local brands.
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Alden, A., Steenkamp, J.B. and Batra, R. (1999). Brand Positioning
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Schwartz, S. (1994). Are there universal aspects in the structure and
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