IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v86y2018icp259-268.html
   My bibliography  Save this article

Do corporate image and reputation drive brand equity in India and China? - Similarities and differences

Author

Listed:
  • Heinberg, Martin
  • Ozkaya, H. Erkan
  • Taube, Markus

Abstract

Corporate signals, such as corporate image and corporate reputation, are potentially effective tools to alleviate consumer uncertainty about brands in emerging markets and may therefore enhance product brand equity. However, most studies targeting the effects of corporate signals are set in developed countries and also fail to compare different emerging markets to explore possible moderators to these relationships. We argue that the perceived uncertainty towards brands differs between emerging markets and that this difference is shaped by the institutional background in the country. This, in turn, influences the effectiveness of corporate signals. Using structural equation modelling, the study analyses large consumer samples from China and India. We discover that corporate image is a more effective signal in China than in India. Moreover, we find that corporate reputation mediates the corporate image – product brand equity relationship in emerging markets. Notably, the importance of the mediation depends on the country setting.

Suggested Citation

  • Heinberg, Martin & Ozkaya, H. Erkan & Taube, Markus, 2018. "Do corporate image and reputation drive brand equity in India and China? - Similarities and differences," Journal of Business Research, Elsevier, vol. 86(C), pages 259-268.
    • Handle: RePEc:eee:jbrese:v:86:y:2018:i:c:p:259-268
    DOI: 10.1016/j.jbusres.2017.09.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296317303363
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2017.09.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Estrin, Saul & Prevezer, Martha, 2011. "The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared," LSE Research Online Documents on Economics 33552, London School of Economics and Political Science, LSE Library.
    2. Jiandong Chen & Rong Ding & Wenxuan Hou & Sofia Johan, 2016. "Do Financial Analysts Perform a Monitoring Role in China? Evidence from Modified Audit Opinions," Abacus, Accounting Foundation, University of Sydney, vol. 52(3), pages 473-500, September.
    3. Yang, Jun & Mai, Enping (Shirley), 2010. "Experiential goods with network externalities effects: An empirical study of online rating system," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1050-1057, September.
    4. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    5. Yinlong Zhang & Adwait Khare, 2009. "The Impact of Accessible Identities on the Evaluation of Global versus Local Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 524-537.
    6. Patricia Martínez García de Leaniz & Ignacio Rodríguez del Bosque Rodríguez, 2016. "Corporate Image and Reputation as Drivers of Customer Loyalty," Corporate Reputation Review, Palgrave Macmillan, vol. 19(2), pages 166-178, April.
    7. Erevelles, Sunil & Roy, Abhik & Yip, Leslie S. C., 2001. "The universality of the signal theory for products and services," Journal of Business Research, Elsevier, vol. 52(2), pages 175-187, May.
    8. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    9. Walsh, Gianfranco & Bartikowski, Boris, 2013. "Exploring corporate ability and social responsibility associations as antecedents of customer satisfaction cross-culturally," Journal of Business Research, Elsevier, vol. 66(8), pages 989-995.
    10. Erkan Ozkaya, H. & Dabas, Chitra & Kolev, Kalin & Hult, G. Tomas M. & Dahlquist, Steven H. & Manjeshwar, Sonia Arun, 2013. "An assessment of hierarchical linear modeling in international business, management, and marketing," International Business Review, Elsevier, vol. 22(4), pages 663-677.
    11. Piyush Sharma, 2011. "Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 285-306, February.
    12. Shah, Rajiv & Gao, Zhijie & Mittal, Harini, 2014. "Innovation, Entrepreneurship, and the Economy in the US, China, and India," Elsevier Monographs, Elsevier, edition 1, number 9780128018903.
    13. Wiener, Joshua Lyle, 1985. "Are Warranties Accurate Signals of Product Reliability?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(2), pages 245-250, September.
    14. Çifci, Sertaç & Ekinci, Yuksel & Whyatt, Georgina & Japutra, Arnold & Molinillo, Sebastian & Siala, Haytham, 2016. "A cross validation of Consumer-Based Brand Equity models: Driving customer equity in retail brands," Journal of Business Research, Elsevier, vol. 69(9), pages 3740-3747.
    15. Bartikowski, Boris & Walsh, Gianfranco, 2011. "Investigating mediators between corporate reputation and customer citizenship behaviors," Journal of Business Research, Elsevier, vol. 64(1), pages 39-44, January.
    16. Fong, Cher-Min & Lee, Chun-Ling & Du, Yunzhou, 2013. "Target reputation transferability, consumer animosity, and cross-border acquisition success: A comparison between China and Taiwan," International Business Review, Elsevier, vol. 22(1), pages 174-186.
    17. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    18. Lee, Nick & Cadogan, John W., 2013. "Problems with formative and higher-order reflective variables," Journal of Business Research, Elsevier, vol. 66(2), pages 242-247.
    19. Bartikowski, Boris & Walsh, Gianfranco & Beatty, Sharon E., 2011. "Culture and age as moderators in the corporate reputation and loyalty relationship," Journal of Business Research, Elsevier, vol. 64(9), pages 966-972, September.
    20. Steenkamp, Jan-Benedict E M & Baumgartner, Hans, 1998. "Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(1), pages 78-90, June.
    21. Walsh, Gianfranco & Beatty, Sharon E. & Shiu, Edward M.K., 2009. "The customer-based corporate reputation scale: Replication and short form," Journal of Business Research, Elsevier, vol. 62(10), pages 924-930, October.
    22. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    23. Ali, Raza & Lynch, Richard & Melewar, T.C. & Jin, Zhongqi, 2015. "The moderating influences on the relationship of corporate reputation with its antecedents and consequences: A meta-analytic review," Journal of Business Research, Elsevier, vol. 68(5), pages 1105-1117.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Heinberg & H. Erkan Ozkaya & Markus Taube, 2016. "A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?," Journal of the Academy of Marketing Science, Springer, vol. 44(5), pages 586-607, September.
    2. Bernhard Swoboda & Cathrin Puchert & Dirk Morschett, 2016. "Explaining the differing effects of corporate reputation across nations: a multilevel analysis," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 454-473, July.
    3. Bernhard Swoboda & Cathrin Huber & Tassilo Schuster & Johannes Hirschmann, 2017. "Corporate Reputation Effects Across Nations: The Impact of Country Distances and Firm-Specific Resources," Management International Review, Springer, vol. 57(5), pages 717-748, October.
    4. Strizhakova, Yuliya & Coulter, Robin A., 2013. "The “green” side of materialism in emerging BRIC and developed markets: The moderating role of global cultural identity," International Journal of Research in Marketing, Elsevier, vol. 30(1), pages 69-82.
    5. Gatzert, Nadine, 2015. "The impact of corporate reputation and reputation damaging events on financial performance: Empirical evidence from the literature," European Management Journal, Elsevier, vol. 33(6), pages 485-499.
    6. Cowan, Kirsten & Guzman, Francisco, 2020. "How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study," Journal of Business Research, Elsevier, vol. 117(C), pages 683-693.
    7. Abdelmoety, Ziad Hassan & Aboul-Dahab, Sameh & Agag, Gomaa, 2022. "A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Osakwe, Christian Nedu & Ruiz, Belén & Amegbe, Hayford & Chinje, Nathalie B. & Cheah, Jun-Hwa & Ramayah, T., 2020. "A multi-country study of bank reputation among customers in Africa: Key antecedents and consequences," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    9. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    10. Alden, Dana L. & Kelley, James B. & Youn, James B. & Chen, Qimei, 2016. "Understanding consumer motivations to interact on brand websites in the international marketplace: Evidence from the U.S., China, and South Korea," Journal of Business Research, Elsevier, vol. 69(12), pages 5909-5916.
    11. Jacobs, Nele & Swoboda, Bernhard, 2023. "The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness," International Business Review, Elsevier, vol. 32(5).
    12. James Agarwal & Madelynn Stackhouse & Oleksiy Osiyevskyy, 2018. "I Love That Company: Look How Ethical, Prominent, and Efficacious It Is—A Triadic Organizational Reputation (TOR) Scale," Journal of Business Ethics, Springer, vol. 153(3), pages 889-910, December.
    13. Kevin Money & Anastasiya Saraeva & Irene Garnelo-Gomez & Stephen Pain & Carola Hillenbrand, 2017. "Corporate Reputation Past and Future: A Review and Integration of Existing Literature and a Framework for Future Research," Corporate Reputation Review, Palgrave Macmillan, vol. 20(3), pages 193-211, November.
    14. Elbedweihy, Alaa M. & Jayawardhena, Chanaka & Elsharnouby, Mohamed H. & Elsharnouby, Tamer H., 2016. "Customer relationship building: The role of brand attractiveness and consumer–brand identification," Journal of Business Research, Elsevier, vol. 69(8), pages 2901-2910.
    15. Walsh, Gianfranco & Shiu, Edward & Hassan, Louise M., 2014. "Replicating, validating, and reducing the length of the consumer perceived value scale," Journal of Business Research, Elsevier, vol. 67(3), pages 260-267.
    16. María Eugenia López-Pérez & Iguácel Melero-Polo & Rosario Vázquez-Carrasco & Jesús Cambra-Fierro, 2018. "Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    17. Pillai, Kishore Gopalakrishna & Nair, Smitha R., 2021. "The effect of social comparison orientation on luxury purchase intentions," Journal of Business Research, Elsevier, vol. 134(C), pages 89-100.
    18. Wolter, Jeremy S. & Donavan, D. Todd & Giebelhausen, Michael, 2021. "The corporate reputation and consumer-company identification link as a sensemaking process: A cross-level interaction analysis," Journal of Business Research, Elsevier, vol. 132(C), pages 289-300.
    19. Izlem Gozukara & Osman Yildirim, 2015. "The Effect of Perceived Corporate Reputation of a Turkish University on Affective Commitment of Students," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(11), pages 78-93, November.
    20. Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:86:y:2018:i:c:p:259-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.