The moderating role of Hofstede’s cultural dimensions in the customer-brand relationship in China and India

Purpose – The purpose of this paper is to enhance the understanding of customer-brand relationships in the international marketplace, and empirically investigates and compares the customer-brand relationship development process between Indian and Chinese markets. In detail, four out of Hofstede’s original five national culture dimensions were adopted as moderators in the process of customer-brand relationship development between two markets. Design/methodology/approach – To test hypotheses, responses from 539 Indian and 400 Chinese mobile phone consumer samples were achieved, and the proposed model was estimated by using structural equations based on the partial least squares algorithm. Findings – The results demonstrate that utilitarian value and brand affect play a significant role in building brand loyalty for Chinese consumers, while hedonic value and perceived risk contribute more in building brand loyalty for Indian consumers. Research limitations/implications – This study indicated that the cultura...

[1]  Yolanda Polo,et al.  How to Make Switching Costly , 2009 .

[2]  Hani I. Mesak,et al.  An Exploratory Examination of the Influence of National Culture on Cross-National Product Diffusion , 2005 .

[3]  David F. Midgley,et al.  Formative versus reflective measurement models: two applications of formative measurement | NOVA. The University of Newcastle's Digital Repository , 2008 .

[4]  J. Bettman An information processing theory of consumer choice , 1979 .

[5]  J. Munuera-Aleman,et al.  Brand trust in the context of consumer loyalty , 2001 .

[6]  Joseph P. Cannon,et al.  Understanding the Influence of National Culture on the Development of Trust , 1998 .

[7]  Kurt Matzler,et al.  Risk aversion and brand loyalty: the mediating role of brand trust and brand affect , 2008 .

[8]  R. Oliver Satisfaction: A Behavioral Perspective On The Consumer , 1996 .

[9]  Gérard Cliquet,et al.  A Cross‐Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil** , 2008 .

[10]  Edward Tse,et al.  Is It Too Late to Enter China , 2010 .

[11]  J. Swait,et al.  Brands as Signals: A Cross-Country Validation Study: , 2006 .

[12]  Won-Moo Hur,et al.  The moderating role of socio-demographics on smartphone adoption , 2014, Int. J. Mob. Commun..

[13]  Gordon W. Cheung,et al.  Evaluating Goodness-of-Fit Indexes for Testing Measurement Invariance , 2002 .

[14]  Joseph P. Cannon,et al.  Building long-term orientation in buyer–supplier relationships: The moderating role of culture , 2010 .

[15]  P. Dorfman,et al.  Leadership and Organizations: The GLOBE Study of 62 Societies , 2004 .

[16]  C. Bhattacharya,et al.  Consumer–Company Identification: A Framework for Understanding Consumers’ Relationships with Companies , 2003 .

[17]  Matt Haig,et al.  Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time , 2003 .

[18]  Cleopatra Veloutsou,et al.  A Cross-National Examination of Consumer Perceived Risk in the Context of Non-Deceptive Counterfeit Brands , 2008 .

[19]  Celina González Mieres,et al.  Antecedents of the difference in perceived risk between store brands and national brands , 2006 .

[20]  J. Bloemer,et al.  The complex relationship between consumer satisfaction and brand loyalty , 1995 .

[21]  W. Ismail,et al.  Comparability of leadership constructs from the Malaysian and Pakistani perspectives , 2017 .

[22]  M. Lindell,et al.  Accounting for common method variance in cross-sectional research designs. , 2001, The Journal of applied psychology.

[23]  Gordon W. Cheung,et al.  Methodology in Cross-Cultural Consumer Research , 1999 .

[24]  Bernard C. Y. Tan,et al.  A Cross-Cultural Study on Escalation of Commitment Behavior in Software Projects , 2000, MIS Q..

[25]  David C. Yen,et al.  E-commerce web site loyalty: A cross cultural comparison , 2014, Information Systems Frontiers.

[26]  Ravi Dhar,et al.  A behavioral decision theory perspective on hedonic and utilitarian choice , 2005 .

[27]  J. Kennedy,et al.  Culture , Leadership , and Organizations : The GLOBE Study of 62 Societies , 2022 .

[28]  Naveen Donthu,et al.  Developing and validating a multidimensional consumer-based brand equity scale , 2001 .

[29]  Yeqing Bao,et al.  Exploring the Concept and Measurement of General Risk Aversion , 2005 .

[30]  Wynne W. Chin,et al.  A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic - Mail Emotion/Adoption Study , 2003, Inf. Syst. Res..

[31]  Jeremy J. Sierra,et al.  A brand foci model to explain achievement needs: a contradictory explanation , 2017 .

[32]  A. Herrmann,et al.  Direct and indirect effects of self-image congruence on brand loyalty , 2006 .

[33]  A. Aron,et al.  Inclusion of Other in the Self Scale and the structure of interpersonal closeness , 1992 .

[34]  J. Steenkamp,et al.  Assessing Measurement Invariance in Cross-National Consumer Research , 1998 .

[35]  Eric J. Arnould,et al.  A Cultural Approach to Branding in the Global Marketplace , 2008 .

[36]  G. Hofstede The Cultural Relativity of the Quality of Life Concept , 1984 .

[37]  Cheryl Burke Jarvis,et al.  A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research , 2003 .

[38]  W. Zikmund,et al.  A Multivariate Analysis of Perceived Risk Self-Confidence and Information Sources , 1974 .

[39]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[40]  Wynne W. Chin How to Write Up and Report PLS Analyses , 2010 .

[41]  M. Bond,et al.  Hofstede's Culture Dimensions , 1984 .

[42]  Daejoong Kim,et al.  The Integrated Model of Smartphone Adoption: Hedonic and Utilitarian Value Perceptions of Smartphones Among Korean College Students , 2012, Cyberpsychology Behav. Soc. Netw..

[43]  J. Story,et al.  Trust‐based commitment: multidimensional consumer‐brand relationships , 2005 .

[44]  Chris Robinson,et al.  Asian Culture - the Marketing Consequences , 1996 .

[45]  J. H. Davis,et al.  An integrative model of organizational trust, Academy of Management Review, : . , 1995 .

[46]  Ankit Kesharwani,et al.  The impact of trust and perceived risk on internet banking adoption in India : An extension of technology acceptance model , 2022 .

[47]  Geert Hofstede,et al.  Convergence and divergence in consumer behavior: implications for international retailing , 2002 .

[48]  Judy K. Frels,et al.  Consumer switching costs: A typology, antecedents, and consequences , 2003 .

[49]  R. Vandenberg,et al.  A Review and Synthesis of the Measurement Invariance Literature: Suggestions, Practices, and Recommendations for Organizational Research , 2000 .

[50]  Deborah Roedder John,et al.  Cultural Differences in Brand Extension Evaluation: The Influence of Analytic versus Holistic Thinking , 2007 .

[51]  Gaia Rubera,et al.  Drivers of Brand Commitment: A Cross-National Investigation , 2010 .

[52]  Thaweephan Leingpibul,et al.  Alternative measures of satisfaction in cross‐cultural settings , 2008 .

[53]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[54]  R. Lusch,et al.  Getting Marketers to Invest in Firm-Specific Capital , 2007 .

[55]  Nadia H. Jiménez,et al.  The mediation of trust in country-of-origin effects across countries , 2014 .

[56]  E. Okada Justification Effects on Consumer Choice of Hedonic and Utilitarian Goods , 2005 .

[57]  Patrick De Pelsmacker,et al.  Clothing consumption in two recent EU Member States: A cross-cultural study , 2013 .

[58]  Hyun-Joo Lee,et al.  Indian consumers' purchase intention toward a United States versus local brand , 2009 .

[59]  Srinivas K. Reddy,et al.  The impact of parent brand attribute associations and affect on brand extension evaluation , 2001 .

[60]  M. Holbrook,et al.  The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty , 2001 .

[61]  Venkatesh Shankar,et al.  Asymmetries in the Effects of Drivers of Brand Loyalty Between Early and Late Adopters and Across Technology Generations , 2014 .

[62]  Rui Chen,et al.  Why do users continue using social networking sites? An exploratory study of members in the United States and Taiwan , 2013, Inf. Manag..

[63]  J. Munuera-Aleman,et al.  Does brand trust matter to brand equity , 2005 .

[64]  Michelle L. Roehm,et al.  Strategies to offset performance failures: The role of brand equity , 2008 .

[65]  Jessika Schulze,et al.  Handbook Of Affect And Social Cognition , 2016 .

[66]  Pramila Rao,et al.  International survey research , 2009 .

[67]  C. Liao,et al.  Determinants of Consumer’s Willingness to Purchase Gray-Market Smartphones , 2012, Journal of Business Ethics.

[68]  R. Sitgreaves Psychometric theory (2nd ed.). , 1979 .

[69]  Christopher Bond,et al.  Challenges and conceptions of globalization: An investigation into models of global change and their relationship with business practice , 2014 .

[70]  Robin A. Coulter,et al.  The meanings of branded products: A cross-national scale development and meaning assessment , 2008 .

[71]  K. G. J8reskoC,et al.  Simultaneous Factor Analysis in Several Populations , 2007 .

[72]  Thaweephan Leingpibul,et al.  Brand equity's antecedent/consequence relationships in cross‐cultural settings , 2010 .

[73]  J. Quelch,et al.  How global brands compete. , 2004, Harvard business review.

[74]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[75]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[76]  W. Grassl Strategic Brand Management: Building, Measuring, and Managing Brand Equity. , 2000 .

[77]  Xin Luo,et al.  Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services , 2010, Decis. Support Syst..

[78]  R. Brislin Back-Translation for Cross-Cultural Research , 1970 .

[79]  Jennifer Edson Escalas,et al.  Self‐Construal, Reference Groups, and Brand Meaning , 2005 .

[80]  Gordon H. Bower,et al.  Mood and Social Memory , 2000 .

[81]  Michael Y. Hu,et al.  Process Standardization across Intra- and Inter-Cultural Relationships , 2000 .

[82]  G. Walsh,et al.  Consumer Vulnerability to Perceived Product Similarity Problems: Scale Development and Identification , 2005 .

[83]  A. Muñiz,et al.  How Brand Community Practices Create Value , 2009 .

[84]  Millissa F. Y. Cheung,et al.  The influence of the propensity to trust on mobile users' attitudes toward in-app advertisements: An extension of the theory of planned behavior , 2017, Comput. Hum. Behav..

[85]  H. Winklhofer,et al.  Index Construction with Formative Indicators: An Alternative to Scale Development , 2001 .

[86]  Chieh-Peng Lin,et al.  Enhancing knowledge sharing in high-tech firms: The moderating role of collectivism and power distance , 2017 .

[87]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[88]  E. Hirschman,et al.  The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun , 1982 .

[89]  Ming H. Hsieh,et al.  Identifying Brand Image Dimensionality and Measuring the Degree of Brand Globalization: A Cross-National Study , 2002 .

[90]  G. Tellis,et al.  Drivers of Success for Market Entry into China and India , 2007 .

[91]  Nukhet Harmancioglu,et al.  Data equivalence in cross-cultural international business research: assessment and guidelines , 2008 .

[92]  Anat Hovav,et al.  Applying an extended model of deterrence across cultures: An investigation of information systems misuse in the U.S. and South Korea , 2012, Inf. Manag..

[93]  Giana M. Eckhardt Local Branding in a Foreign Product Category in an Emerging Market , 2005 .

[94]  R. Zajonc Feeling and thinking : Preferences need no inferences , 1980 .

[95]  Markus Eberl,et al.  An Application of PLS in Multi-Group Analysis: The Need for Differentiated Corporate-Level Marketing in the Mobile Communications Industry , 2010 .