Empirical study of space localization approach on brand attitude: The case of starbucks in South Korea

Abstract

Background The competitive landscape of global companies seeking to build a favorable and relatable brand image in countries not native to their origin is becoming ever more dynamic. One notable trend has been the use of space localization approaches to address the cultural and emotional needs of local consumers. Considering the expanding role of coffee shops, a localized space identity may act as a powerful advantage to directly connect with local consumers. This study explores the effect of localization efforts in space identity and its relation to actual consumer attitude toward the space and the brand itself, focusing on the case of Starbucks in South Korea. Methods This study includes field and survey research. Field research was conducted at five Starbucks locations in the metropolitan area, selected for their clear usage of localized space design. Survey research subjects were the customers visiting those five research sites. Factor analysis, regression analyses, and frequency analysis were used to validate research hypotheses. Results Three common factors were extracted from the space images shaped by consumers experiencing localized space identity-namely, stylishness, comfort, and uniqueness. These images were found to positively affect consumer attitude toward the space and ultimately the brand itself. Conclusions This study verified that localized space identity is evidently and effectively being delivered to consumer perception to induce positive brand attitude. Such finding provides the grounds for global companies seeking to differentiate their strategy by tailoring their approach to better suit the needs of local consumers.