Brand Reputation and Brand Preference: A Moderated Mediation Model of Brand Resonance and Consumer Ethnocentrism
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Due to strong economic globalization, domestic brands face intense competition from imported brands in global and local markets. In this competitive landscape between domestic and imported brands, it is important to understand how to improve consumer preferences for domestic over imported brands (or vice versa), as this can help us devise better marketing strategies. Building a strong brand reputation contributes to a sustainable competitive advantage source. However, little is known about the psychological mechanism underlying the relationship between brand reputation and brand preference in the Chinese market, which faces tough competition between domestic and foreign brands. Thus, the purpose of this study was to examine the mediating role of brand resonance and the moderating role of consumer ethnocentrism in the association between brand reputation and brand preference for domestic and imported brands. We conducted a self-administered online survey using online platforms in China. A valid sample of 412 questionnaires was obtained. This study employed PROCESS macro in SPSS to test an integrated model of mediation and moderation (so-called “moderated mediation analysis”). The results showed that for domestic brands, brand resonance plays a mediating role in the effect of brand reputation on brand preference. However, for foreign brands, consumer ethnocentrism moderated the indirect effect of brand reputation on brand preference via brand resonance. The mediating effect was weaker in consumers who reported higher levels of ethnocentrism. We offer theoretical and managerial implications to improve marketing strategies for domestic and imported brands within the Chinese market.
Abstract
Due to strong economic globalization, domestic brands face intense competition from imported brands in global and local markets. In this competitive landscape between domestic and imported brands, it is important to understand how to improve consumer preferences for domestic over imported brands (or vice versa), as this can help us devise better marketing strategies. Building a strong brand reputation contributes to a sustainable competitive advantage source. However, little is known about the psychological mechanism underlying the relationship between brand reputation and brand preference in the Chinese market, which faces tough competition between domestic and foreign brands. Thus, the purpose of this study was to examine the mediating role of brand resonance and the moderating role of consumer ethnocentrism in the association between brand reputation and brand preference for domestic and imported brands. We conducted a self-administered online survey using online platforms in China. A valid sample of 412 questionnaires was obtained. This study employed PROCESS macro in SPSS to test an integrated model of mediation and moderation (so-called “moderated mediation analysis”). The results showed that for domestic brands, brand resonance plays a mediating role in the effect of brand reputation on brand preference. However, for foreign brands, consumer ethnocentrism moderated the indirect effect of brand reputation on brand preference via brand resonance. The mediating effect was weaker in consumers who reported higher levels of ethnocentrism. We offer theoretical and managerial implications to improve marketing strategies for domestic and imported brands within the Chinese market.
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