THE EFFECT OF BRAND GLOBALNESS ON BRAND TRUST: THE MEDIATING ROLE OF BRAND AFFECT AND BRAND INNOVATIVENESS Richard Huaman-Ramirez* Kedge Business School
[email protected] Noël Albert Kedge Business School
[email protected] * : 29 rue Béranger, 21000, Dijon. 06 17 59 17 17 Abstract: Past research has demonstrated that the relationship between brand globalness and brand trust is explained by the perceived quality of products, brand prestige and the identity expressiveness of consumers. The purpose of this research is to provide a model with two alternative explanations. Through a cross-sectional study conducted in France with 250 participants, we demonstrate that the link between brand globalness and brand trust is mediated by brand affect and brand innovativeness. This study provides empirical evidence in support of the notion that brands perceived as global could elicit positive emotional responses and could be appreciated for their ability to provide new and useful products, which in turn influence brand trust. In addition, we demonstrate the moderating role of consumer ethnocentrism on the relationship between brand globalness and both brand affect and brand innovativeness. Theoretical and managerial implications of the findings are discussed. Furthermore, we identify issues and future research for a more extensive exploration. Keywords: brand trust; brand globalness; brand affect; brand innovativeness L’EFFET DU BRAND GLOBALNESS SUR LA CONFIANCE DANS LA MARQUE : LE ROLE MEDIATEUR DE L’AFFECT A LA MARQUE ET LE CARACTERE INNOVANT DE LA MARQUE Résumé : Des recherches précédentes ont démontré que la relation entre le brand globalness et la confiance dans la marque est expliquée par la qualité perçue des produits, le prestige de la marque et l’expressivité d’identité des consommateurs. L’objectif de cette recherche est de proposer un modèle avec deux explications alternatives. À travers une étude transversale menée en France avec 250 participants, nous démontrons que l’affect à la marque et le caractère innovant de la marque interviennent comme variables médiatrices de la relation entre le brand globalness et la confiance dans la marque. Cette étude fournit des évidences empiriques qui prouvent que les marques perçues comme globales peuvent susciter des réponses émotionnelles positives ainsi qu’être appréciées par leur capacité à fournir des produits innovants et utiles, qui à leur tour influencent la confiance dans la marque. De plus, nous démontrons le rôle modérateur de l’ethnocentrisme du consommateur sur la relation entre le brand globalness et le caractère innovant de la marque. Enfin, nous identifions des limites et des pistes de recherche pour une exploration future. Mots clés : la confiance dans la marque ; le brand globalness ; l’affect à la marque
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Introduction Brand trust has been one of the main concerns for managers and researchers in the last decade. According to the Edelman Trust Barometer, there was a major decline in consumers’ trust in 2015 with 16 of 27 countries dropping below their acceptable 50% level into the “distruster” category. For instance, Germany went from a 57% trust level in 2014 to 45% in 2015. From a theoretical standpoint, studying brand trust is relevant because of its effects on the consumer-brand relationship (Chaudhuri and Holbrook, 2001, 2002; Delgado-Ballester and Munuera-Aleman, 2001; Ha, 2004; Morgan et al, 1994; Sichtmann, 2007; Sung and Kim, 2010). The consequences of brand trust are well established in the marketing literature. However, antecedents are still unclear. This research will specifically focus on the relationship between brand globalness and brand trust (Rosembloom and Hafner, 2009; Xie et al, 2015). Brand trust refers to the expectation of consumers that the brand will perform them beneficial products. Past research has demonstrated the influence of brand globalness on brand trust. For instance, consumers from many different countries such as India and Bulgaria have more trust in American and Japanese computers than other countries because they are more global (Rosembloom and Hafner, 2009). Similarly, Chinese consumers have more trust in global brands (electronic products) such as Nokia and Samsung (Xie et al, 2015). This effect is explained by the fact that global brands are perceived as the recipient of quality and prestige (Rosembloom and Hafner, 2009; Xie et al, 2015). Uncertainty and risk associated with products are reduced when brands are global. A different explanation of the influence of brand globalness on brand trust is through the psychological connections of consumers with brands that have shared characteristics, values and common goals (Xie et al, 2015). Brand globalness refers to the characteristic of a brand of being present in multiple countries with generally the same name, symbols and offers (Steenkamp et al, 2003). However, because global brands are also perceived as more exciting and up-to-date than other brands (Dimofte et al, 2008; Dimofte et al, 2010), and both characteristics could influence brand trust (Singh et al, 2012; Srivastava et al, 2015; 2016), the relationship between brand globalness and brand trust could probably be explained by more than two variables. Specifically, this research is interested in two mediating variables of that relationship: brand affect and brand innovativeness. First, brand affect that involves positive emotional responses of consumers towards brands (Chaudhuri and Holbrook, 2001; 2002) could canalize the emotional aspect of global brands. Second, brand innovativeness refers to the perceived ability of a brand to provide new and useful products (Eisingerich and Rubera, 2010). Since consumers perceive global brands as being able to provide new and performing products, brand innovativeness should generate an influence on brand trust. In addition, given that ethnocentrism is considered as an attitudinal bias that makes certain consumers perceive less favorably global brands (Steenkamp et al, 2003), the influence of brand globalness on the consumer-brand relationship might be different for this kind of consumers. In the current research, we aim at demonstrating that brand globalness might be related to brand trust through the mediating role of brand affect and brand innovativeness. In addition, we wish to establish the moderating role of the consumer ethnocentrism in the relationship between brand globalness and both brand affect and brand innovativeness. Theoretical framework and hypotheses Brand Affect. More recent literature shows a well-established definition of brand affect that refers to “a brand’s potential to elicit a positive emotional response in the average consumer as a result of its use” (Chaudhuri and Holbrook, 2001; 2002). In this sense, consumers with a high brand affect perceive that brands make them happy, joyful, and affectionate (Matzler et al, 2006). Brands that are perceived as global should elicit positive emotional responses in consumers. Since consumers generally like to be a part of an aspiring 2
global consumer culture (Alden et al, 1999; Holt et al, 2004), they might perceive that consuming a global brand makes them joyful. In addition, consumers might feel a global brand to be pleasurable because they like the lifestyle of people associated with the global brand country-of-origin (Batra et al, 2000). Since global brand generally comes from the most developed countries in the world, the way in which people live in these countries is appreciated by people from other countries. Consumers generally esteem global brands (Johanson and Ronkainen, 2005). Likewise, consumers consider global brands as more exciting and stylish, which in turn influence both their attitude and purchase intention (Dimofte et al, 2008; Dimofte et al, 2010). Therefore, consuming these global brands might provide emotional responses in consumers. Because “affective attachments form the basis for caring and benevolent actions that build trust” (Williams, 2001, p. 379), brand affect might influence brand trust. The trustor that perceives an emotional investment of caring and benevolence of the trustee feels the deepest level of trust (Rempel et al, 1985). In this sense, brands that make consumers joyful should be perceived as trustable. For instance, consumers trust more brands from the fast-moving consumer goods when they perceive that these brands provide them with more feelings and emotions (Singh et al, 2012). In addition, affective reactions positively influence the judgment of trust (Dunn and Schweitzer, 2005; Williams, 2001). This effect is based on the theory that stipulates that individuals who are in a positive affective state evaluate other individuals and past events more favorably (Schwarz, 1990; Schwarz et al, 1991; Schwarz and Clore, 1988). Therefore, consumers who have positive affective reactions because brands make them happy might evaluate more favorably the trustworthiness of brands. H1: The link between brand globalness and brand trust is mediated by brand affect. Brand Innovativeness. Recent literature relates innovativeness to the useful property of new elements (Eisingerich and Rubera, 2010) and to its ability to generate a discontinuity in the marketing process (Garcia and Calantone, 2002). In our research, having a consumer perspective at the brand’s level of abstraction (Pappu and Quester, 2016), we define brand innovativeness as the perceived ability of a brand to provide new and useful products to the consumer needs (Eisingerich and Rubera, 2010). Global brands might be perceived as innovative. Given that brands must obtain sustainable competitive advantages in order to become global (Van Gelder, 2004), innovation is centrally prioritized in the brand strategy (Weeraguardena et al, 2007, p. 296). In this regard, consumers might perceive that if a brand is successful on a global reach, this brand must also deliver innovative products (Aaker, 2004). Indeed, consumers associate characteristics such as being more innovative (Dimofte et al, 2008) and up-to-date (Dimofte et al, 2010) to global brands such as Adidas, BMW, and Coca-Cola. In addition, when deciding if a global brand should create a new brand or extend the brand into the a new market, literature advises that global brand extension reinforces the perception of the brand innovativeness (Van Gelder, 2004) and that the relationship between brand globalness and brand innovativeness should be empirically examined (Punyatoya et al, 2014). The perceived ability of brands to generate new and useful products might influence the consumer trust in those brands. Since brand innovation is commonly characterized by performing better products and adding valuable features (Aaker, 2007), a perception of innovativeness by consumers might influence trust in brands. Indeed, a reputation of the brand to be innovative enhances its credibility (Aaker, 2004). For instance, past research has demonstrated that mothers who perceived innovativeness in baby care product brands trust more those brands more (Srivastava et al, 2015; 2016). These authors affirm that mothers trust baby care product brands because these brands provide functional solutions to their unaddressed needs. Therefore, brands that are perceived as having the competence to provide new and useful products might be expected to offer performing products and to be trustable. 3
In addition, we argue that brand innovativeness can also be perceived as an action of the brand to want to satisfy the needs of the consumer. Providing new solutions can be taken by consumers as a way of caring about them. In this sense, brand innovativeness might also influence brand trust as an action of goodwill about the needs of the consumer. H2: The link between brand globalness and brand trust is mediated by brand innovativeness. The moderating role of consumer ethnocentrism. Consumer ethnocentrism refers to "the beliefs held by consumers about the appropriateness, indeed morality, of purchasing foreign-made products" (Shimp and Sharma, 1987, p. 280). Thus, ethnocentric consumers prefer domestic products rather than foreign products because they believe that products from their own country are the best (Klein et al, 1998) and because these domestic products represent intra-cultural objects that become recipients of pride and attachment (Hershe, 1994). Given that ethnocentric individuals tend to reject symbols and values that are different from their own values (Hershe 1994), they are less cosmopolitan and less open to foreign cultures. In our context, global brands may be viewed as a threat for them. The effect of brand globalness on brand affect and brand innovativeness for ethnocentric consumer should be different from non-ethnocentric consumers. On the one hand, since ethnocentric consumers perceive products and symbols from their own country as the best (Klein et al, 1998), innovativeness of global brands might not be appreciated. Brands are commonly associated with cultural symbols, thus making non-cosmopolitan consumers develop negative evaluation towards global brands. An effect of this judgment is the underestimation of the brand’s ability to satisfy actual consumer needs. This might make consumers perceive the brand’s incapability of providing new and useful products. Therefore, ethnocentric consumers might value innovativeness of global brands less. By contrast, non-ethnocentric consumers who have a tendency to appreciate global brands might be influenced by the perception of innovativeness of this type of brand. Non-ethnocentric consumers who judge in favor of the fact that brands have a worldwide reach might perceive competitive advantages of those brands. On the other hand, ethnocentric consumers might not feel affect for global brands because they rather have preferences for domestic products (Shimp and Sharma, 1987). Fewer cosmopolitan consumers might evoke less positive emotional responses for global brands. The presence of those brands in many countries and the cultural symbols that they represent might make ethnocentric consumers less joyful and happy. Since this kind of consumer does not have an interest in integrating in a global consumer culture, the fact that a brand is global might not influence the consumer perception of the extent of pleasure of the brand. In this sense, global brands might elicit less positive emotional responses when consumers are ethnocentric. On the other hand, nonethnocentric consumers might be more affectively influenced by global brands. More openness to global brands might make consumers perceive more affect and having more emotional moments with those brands. Based on these arguments, we propose: H3a(b): Consumer ethnocentrism moderates the effect of brand globalness on brand affect(innovativeness) Method Data collection and sample. Two hundred fifty participants were asked to complete an online questionnaire at a business school in the south of France. Firstly, we asked them to choose a brand from a list of most popular fast food restaurant brands in France, including McDonald’s, Subway, and KFC. We selected this product category in our study because it is principally represented by global brands. However, we added the brand Quick as a more local European brand in order to obtain a better variation on the perception of globalness. Then, participants were asked to answer questions on brand globalness, brand affect, brand innovativeness, and brand trust. We added service quality as a control variable because of the
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nature of restaurants and their possible effect on the independent variable brand trust. Finally, we asked participants to answer socio-demographic questions. Two hundred forty-three responses were considered as final sample -after deleting those doubly completed. Most of the respondents in the sample are women (61 percent) and younger than 35 years old (96 percent). Consumers with monthly household incomes of more than 2000€ represent 56 percent of the respondents. The majority of respondents are undergraduate and graduate students (39.2 percent and 35.6 percent, respectively). Measure. Brand globalness was measured with the scale based on Steenkamp et al (2003). The dependent variable, brand trust, was measured through the three dimensions French scale (Credibility, Integrity, and Benevolence) from Gurviez and Korchia (2002). Since the credibility dimension is the assessment of the brand’s ability, this scale represents our conception of brand trust well. Three items developed by Chaudhuri and Holbrook (2001) were employed to measure brand affect. Brand innovativeness had three items taken from Eisingerich and Rubera (2010). Consumer ethnocentrism was measured using five items adapted from Shimp and Sharma (1987). Finally, the service quality measure consisted of four items adapted from Ekinci (2001). All items were rated on a seven-point Likert scale with 1 representing “strongly disagree” and 7 representing, “strongly agree.” Results Confirmatory factor analysis (CFA) was performed in AMOS 18.0 to examine the reliability and validity of the constructs. To evaluate measurement models fit, three types of fit indices (absolute, incremental and parsimonious) were used, following the suggestions of 2 Jackson et al. (2009). The measurement model exhibited adequate fit, with a chi-square (χ )/df statistic of 1.955 (p< 0.01); CFI = 0.96; GFI = 0.86; IFI = 0.95; RMSEA = 0.067. To test for convergent validity, factor loadings, along with the average variance extracted (AVE), were calculated for each latent variable (see Table I). The value of composite reliability and the coefficient of alpha values for all eight constructs were higher than the recommended limit of 0.7 and the AVE equaled or exceeded the value of 0.50 (Fornell and Larcker, 1981), which suggests that the measures used are internally consistent. Standardized factor loadings exceeded 0.5 thresholds as recommended by Anderson and Gerbing (1988). The discriminant validity of the constructs is supported because the constructs’ AVE values are greater than their squared correlations (Fornell and Larcker, 1981). Table 2 shows the coefficients to validate our model. We conducted the analysis using ordinary least squares path analysis (Hayes, 2013) because of the complexity of our model, which includes mediating and moderating effects. First, we analyzed the direct effects of variables. Brand globalness was positively related to brand affect (t=3.75, p < .001), and to brand innovativeness (t=2.34, p < .05), validating the direct effects of these variables. Consumers who perceive brands as more global feel more affect toward brands, and perceive a greater innovativeness of brands. The direct effects of brand affect on brand trust-integrity (t=3.05, p < .01), brand trust-benevolence (t=2.19, p < .05), and brand trust-ability (t=6.73, p < .001), were also validated. Similarly, our results validate the direct effects of brand innovativeness on brand trust-integrity (t=3.46, p < .001), brand trust-benevolence (t=5.75, p < .001), and brand trust-ability (t=4.1, p < .001). Consumers who feel more affect toward brands and perceive them as more innovative trust more these brands more. Second, from a parallel mediation analysis (Hayes, 2013; Model 4), the bias-corrected bootstrap confidence intervals (BootLLCI to BootULCI]) based on 5,000 bootstrap samples were entirely above zero thus validating the indirect effects of brand globalness on brand trust-integrity (0.0099 to 0.0756), brand trust-benevolence (0.0037 to 0.0641), and brand trust-ability (0.0321 to 0.1301) through brand affect, in support of our hypothesis 1. In the same way, the indirect effects of brand globalness on brand trust-integrity (0.0029 to 0.067), brand trust-benevolence
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(0.0044 to 0.0961), and brand trust-ability (0.0025 to 0.0668) through brand innovativeness were validated, in support of our hypothesis 2. The results show the mediating role of brand affect and brand innovativeness into the consumers’ trust in global brands. Third, from a moderation analysis (Hayes, 2013; Model 8), the relationship between brand globalness and brand innovativeness was negatively moderated by ethnocentrism (t=-3.68, p < .001), supporting hypothesis 3a. Brand globalness is significantly related to brand innovativeness when consumer ethnocentrism is low (one SD below the mean) (b=0.2956, t=3.99, p < .001) and medium (the mean) (b=0.1251, t=2.06, p < .05) but not when consumer ethnocentrism is high (one SD above the mean) (b=-0.0455, t=-0.54, p > .05) (see Figure 2). Then, contrary to hypothesis 3b, ethnocentrism does not moderate the relationship between brand globalness and brand affect (t=1.49, p > .05). However, we conducted a floodlight analysis (Johnson-Neyman, 1936; Spiller et al., 2013) to identify regions of consumer ethnocentrism in which brand globalness is not related to brand affect. The analysis revealed that the relationship between brand globalness and brand affect was not significant (p > .05) among consumers whose ethnocentrism level was higher than 5.94 (0.7SD above the mean) (bJN = 0.1687, t=1.97, p = 0.05, see Figure 3). Therefore, consumers with high levels of ethnocentrism (above 5.94) do not feel affect toward global brands, supporting our hypothesis 3b. Discussion and contribution This study proposes and tests alternative pathways through which global brands can build brand trust. Our results indicate that, unlike the previously studied pathways of perceived quality, prestige (Rosembloom and Hafner, 2009), and brand identity expressiveness (Xie et al, 2015), attention must also be paid to brand affect and brand innovativeness as important intervening factors explaining favorable trust in brands perceived as global. In addition, our results regarding the consumer ethnocentrism are in line with some past studies, which also showed its moderating role (Akram et al, 2010; Steenkamp et al, 2003). This study contributes to the understanding of the relationship between brand globalness and brand trust through the mediating role of brand affect and brand innovativeness, and moderating role of consumer ethnocentrism. Limitations and future research This study has analyzed a limited number of brands all being specific to the category of fast food chains. Future studies should test our hypotheses with other global brands in other categories in order to generalize the findings. Participants were principally young consumers aged between 18 and 35 years old who are more cosmopolitan in their preferences (Bannister and Saunders, 1978). Future research should analyze the age of consumers as a moderating variable in order to find differences in attitudes toward global brands. Elderly people may be less susceptible to global brands given that attitudes toward domestic products generally become more favorable with increasing age (Bannister and Saunders, 1978). Another future avenue is the influence of brand globalness on brand trust through an ethical judgment. Consumers represent characteristics of global brands related to the ethic (Dimofte et al, 2008). They indicate that they perceive ethical behaviors and social responsibilities of global brands. In addition, consumers who perceive brands as ethical (e.g. being honest and responsible) confide more trust to those brands (Singh et al, 2012). In this sense, brands that are perceived as global may have an effect on brand trust via the role of the ethic. Empirical studies should be conducted in order to support our proposition. References:
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Figure 1
Consumer Ethnocentrism
H3b H3a
Brand Affect
H1 Brand Globalness
Brand Trust
H2
Brand Innovativeness
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Figure 2
11
Figure 3
Table 1 12
Variable
Stand. loading
Brand Globalness To me, this is a global brand. I do think consumers overseas buy this brand. This brand is sold all over the world. Brand Affect I feel good when I dine in this restaurant brand. This brand makes me happy. This brand gives me pleasure. Brand Innovatiness I can rely on this brand to offer novel products to my needs. This brand always sells the same product offerings regardless of current consumer needs * This brand provides new products adapted to my needs. Brand Trust - Integrity This brand is sincere with consumers. This brand is honest with its customers. This brand expresses an interest in its customers. Brand Trust - Benevolence I think this brand renews its products to take into account advances in research. I think that this brand is always looking to improve its response to consumer needs. Benevolence is a value in itself for this brand. Brand Trust - Credibility This brand’s products make me feel safe. I trust the quality of this brand’s products. Buying this brand’s products is a guarantee. Ethnocentrism French people should only buy French-made products. It is always best to purchase French products. Only those products that are unavailable in France should be imported. It is not right to purchase foreign products.
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Composite Reliability 0.94
AVE
r2
0.85
0.09
0.89
0.74
0.56
0.83
0.62
0.56
0.87
0.7
0.47
0.83
0.63
0.25
0.87
0.7
0.55
0.81
0.52
0.01
0.95 0.99 0.65 0.82 0.88 0.88 0.82 0,79 0.75
0.93 0.96 0.57
0.84 0.94 0.54 0.79 0.95 0.75 0.84 0.7 0.71 0.62
Table 2
Antecedent Brand Globalness Brand Affect Brand Innovatiness Service Quality Constant R2 F Mediating Effect (Model 4) Brand Globalness (Indirect Effect)
Coeff 0.2342 — — — 2.8732 6,3 % 14.0598 Mediator
Bran Affect SE 0,0625 — — — 0.3572
t-Value 3.7496*** — — — 8.0439***
Coeff 0,1251 — — — 3.5503 2,55 % 5,4771
Mediator
Mediator
—
Brand Innovatiness SE t-Value 2,3403* 0,0534 — — — — — — 0,3056 11,6162***
—
—
Brand Trust – Integrity Coeff SE -0,0167 0,0387 0,1499 0,0491 0,2023 0,0584 0,3199 0,0602 1,0607 0,3316 34,54 % 27,1695 Coeff Boot SE 0,0351 0,0162
t-Value -0,4308 3,0524** 3,4647*** 5,3118*** 3,1990**
Boot [LLCI; ULCI] [0,0099; 0.0756]
Brand Globalness (Indirect Effect)
—
—
—
Mediator
Mediator
Mediator
0,0253
0,0155
Brand Trust - Benevolence Coeff SE t-Value 0,0302 0,0387 0,7820 2,1939* 0,1077 0,0491 5,7483*** 0,3356 0,0584 0,1337 0,0602 2,2221* 1,4398 0,3314 4,3445*** 33 % 25,3669 Coeff Boot SE Boot [LLCI; ULCI] 0,0252 0,0145 [0,0037; 0.0641] 0,0420
0,0232
[0,0029; 0.067] Moderating Effect (Model 8) Brand Globalness
0,4983
0,1743
2.8591**
0.6281
0.1449
4.3361***
Coeff -0.1451
SE 0.1095
t-Value -1.325
Coeff 0,0065 0,3234 0,2345 0,2845 0,1355 50,26 % 52,0467 Coeff 0,0757
Brand Trust - Ability SE t-Value 0,0378 0,1710 6,7331*** 0,0480 4,1042*** 0,0571 0,0589 4,8305*** 0,3243 0,4179
Boot SE 0,025
[0,0321; 0.1301] 0,0293
0,0162
[0,0044; 0.0961] Coeff -0.2132
SE 0.1086
t-Value
[0,0025; 0.0668] Coeff 0.0315
SE 0.1078
-1.9632 Brand Affect
—
—
—
—
—
—
0.1504
0.049
3.0671**
0.1068
0.0486
—
—
—
—
—
—
0.2126
0.0605
3.5149***
0.3656
0.3233
0.06
0.0483 6.6979***
0.2322
0.0595
6.0962***
Ethnocentrism
-0.3425
0.2296
-1.4915
-0.5724
0.1909
-2.9991**
-0.2204
0.1405
-1.5684
-0.3394
0.1394
Brand Globalness x Ethnocentrism
-0.0667
0.0411
-1.6209
-0.1257
0.0342
-3.6772***
0.0329
0.0255
1.291
0.0611
0.0253
-2.4357*
3.8997***
0.0411
0.1394
-0.0064
0.0251
2.4147* Service Quality
—
—
—
—
—
—
0.3239
0.061
0.1259
0.0605
5.3104*** Constant
1.5315
0.9594
1.5963
1.2863
0.7974
1.6132
1.8545
0.6097
2.6821
R2 F
7,48 % 5.5788
9,21 % 7.0026
35,4% 18.6325
14
0.284
0.6046
0.06 4.7305***
-0.013 4.4365***
34,94% 18.2578
0.2971
-0.2545
2.1143*
3.0417**
t-Value 0.2924
2.1972* Brand Innovatiness
Boot [LLCI; ULCI]
0.6002 -0.0217
50,29% 34.3921
15
