Local vs. Global Brands: Country-of-Origin’s Effect on Consumer-based Brand Equity among Status-Seekers

Abstract

This paper examines the local and global automotive brands in conjunction with country-oforigin effect on consumer-based brand equity. Consumer’s level of status-seeking motivation is considered when analysing the effect of brand’s country-of-origin on consumer-based brand equity. Study conducted on 181 respondents showed that consumers generally prefer Asian than European automotive brands. Asian brands also ranked highest in perceived quality and brand loyalty, followed by European brands and local brands. The main difference of high and low status-seeking consumers is found in brand association, perceived quality, and brand loyalty of local brands. Low status-seeking consumers tend to rate brand association, perceived quality, and brand loyalty of local brands higher than high statusseeking consumers. This paper exhibits that the theory of consumer ethnocentrism and global branding strategies are not mutually exclusive.