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The impact of perceived brand globalness on consumers' willingness to pay

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  • Davvetas, Vasileios
  • Sichtmann, Christina
  • Diamantopoulos, Adamantios

Abstract

This research replicates the study of Steenkamp, Batra, and Alden (2003) on perceived brand globalness (PBG) and provides a stringent test of their documented effects through (a) considering the impact of PBG on consumers' willingness to pay (WTP), and (b) experimentally manipulating brand globalness. Across four studies, the results suggest that consumers are willing to pay more for global brands as long as their globalness leads to a more favorable brand attitude. Testing a comprehensive set of consumer characteristics as moderators, we find that the increased tolerance towards global brand price premiums is robust across consumer segments.

Suggested Citation

  • Davvetas, Vasileios & Sichtmann, Christina & Diamantopoulos, Adamantios, 2015. "The impact of perceived brand globalness on consumers' willingness to pay," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 431-434.
    • Handle: RePEc:eee:ijrema:v:32:y:2015:i:4:p:431-434
    DOI: 10.1016/j.ijresmar.2015.05.004
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    1. Riefler, Petra, 2012. "Why consumers do (not) like global brands: The role of globalization attitude, GCO and global brand origin," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 25-34.
    2. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
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