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The debate of globalization versus localization leads to examining application of the axiom- “think global, act local” in different markets across the world. Failures of global brand in standardizing its name, brand image perception, causes the suspicion of existence of global brand. The alma of this study Is to examine two dimensions of brand Image perception of customer: country of roller effect and brand name. Afterward, my personal opinion of existence of global brand will be proved in discussion part through previous researches and remarkable successes of some global brands In reality.
II. Body 1. Literature review 1. 1 Global brands “A global brand is one that available in most countries in the world” ( De Moot], 2005, p 14) Global brands are defied as brands whose dimensions: personality, position, emotion, and advertising are represented almost the same cross the world but it is never identical from one country to another (Asker; Schematically, 1999). That means global brands do not need to be identical in all markets, the adaptation might be involve partly In global marketing strategy.
According to Wright et al (2007), brand name, advertised benefit and perceived reputation are three components creating awareness is not enough for multinational corporations to develop global brands Tailgating et al, 2009) because cultural and psychological elements can prevent customers from consuming global brands like “anti- globalization” trend (Simmons, 2005), low status seeking (Roy & Chaw, 2011), ethnocentrism (Shook et al, 2011), COO effect (Servants &Dwan, 2011). Hence, global brand equity consist of four dimensions: brand trust (replace brand awareness), brand loyalty, brand associations and perceived quality (Tailgating et al, 2009).
Among them, brand trust is the prevailing topic in the recent academic researches on global branding, global consumption orientation, and corporate reputation (Wang X. Yang Z. , 2010). 1. 2 Perception of global brands by consumers Customers’ memory, which shape identification and meanings of brand (Demoded, 2005), are developed by cultural, historical values. Cultural factor is considered as a powerful influencer for consumers on the way they perceive service/product quality and brand name(Malaria & Speeches, 2005). Cultural value influence directly consumption value and local environment influence strongly on customer’s choice.
The differences between cultures cause the differences of brand image perception of customer across countries (Park; Arroba, 2009). Local environment can be a barrier for expanding of international firms. Recently with the call for consuming local brands in developing countries, one per ten consumers worldwide avoids global brands (Riffle P. , 2012). Therefore, in some markets, global brands need be perceived as local (De Mooing, 2005). Therefore the concept of adaptations attract more attentions of both academic researchers and practices when customers becomes more sophisticated and more aware of global brand.
Nonetheless, corporate image, firm’s status is outside the circle of cultural effect, is strong foundation for multinational reparations generating brand globalization, centralization (Amanda et al, 2012). Beside the culture, economy is an considerable element in launching brand in new market, Wintrier et al. (2007) suggest that opportunities of entering new market decline following the increase of cultural & economic distances between two countries. However, in this paper, I am going to analyze power of cultural effects through examining two factors of customer’s brand perception: country of origin effect and brand name. . 3 Brand Images & Country of origin (COO) effects Brand image is metal image, which is reflect thought, feelings of customer toward rand. It plays a crucial role in building brand association, which create the differences one brand from another. Therefore, brand image considered as the key factors leadings to the purchase decision of customers; its effect is as strong as brand reliability (Cathy et al, 2012). For global brands, brand image is the “core asset- based ownership advantages of a global company’, that create positive attitudes.
However, brand images of one brand vary among countries due to the differences in cultural value and consumption value (Park & Arroba, 2009). The adaptations of brand mage is emphasized in distributing the brand image in foreign markets because. Multinational firms use brand names as a hint for identify origin, country-of-origin image influence directly on perceiving quality of customers. Out-sourcing process; thus, COO is perceived in different styles: country of design, country of manufacture/assembly (Gooney, 2011). Therefore, stereotype country images now are communicated by many labels namely “made in”, “designed in”.
COO effect is usually studied in terms of perception of country image associated with product, in pact, the concept of COO is diversity. According to Anarchism et al (2004), COO effect is observed under two dimensions: manufacturing country and branding country. In that concept, COO effect is known as the highest impact in the introduction stage of global brand in international markets (Maharanis et al. 2004). Image of COO give cognitive cue to customers, COO is used for evaluating the quality of product (Shook, el al. 2011); hence; its image has a remarkable impact on brand equity dimensions and brand equity (Norway et al, 2007). Shook et al. (2011) suggest the model for multinational firms to enhance brand equity basing in COO image Figure 1) Regarding to negative effect of country of origin is the ominous threat for global brands even strong brands in international markets (Chug et al. , 2010). Unfavorable COO image causes low quality impression for product and uncharitable brands. Globalization is refers to westernizes process (Levity, 1987), brands from developing countries like China are usually ignored in international markets.
Therefore, long distance for Asian brands to become truly global brand (Chug et al. , 2010). “Anti-globalization” phenomenon around the world lessens the positive effect of COO (Riffle P. 2012). Figure 1: Model for developing strong brands based in Country of Origin image Source: Shook (2011) However, the importance COO effect varies by the level of customers’ brand involvement. For customers who have high level of brand knowledge, brand consciousness, brand name and country of origin are deciding factors in product evaluation.
Nonetheless, customers who less familiar with brand, the effects of brand image and country of origin are not considerable in evaluation process (Ninja, 1997 & Madam, 2001). Furthermore, the affirmation that COO is crucial component in aging purchase decision become controversial when globalization dominates in many aspects of society. Among COO effects, COO of manufacture is criticized that it no longer play considerable role in buying behavior (Floyd et al. , 2011). According to Goaded et al (2011) COO effect is weak in luxury market and global brand value is main reason for buying behavior.
However, in Flood’s research COO effect is distinguished with brand, hence, that result might be correct for effect of country of design, country of assembly, country of supply of components. Therefore, effect entry of brand (country of brand origin, country of brand ownership) might be significant for customer behavior in luxury market. 1. 4 Brand Names Regarding to symbolic dimensions of branding practice, brands are defined as “representational texts and are socially, not merely, constructed” (Drag, 2005). Due country to another (De Mooing, 2005).
The messages of one brand can be crooked by improper translation; renaming brands in local context requires marketers to consider carefully the meaning of brand as well as the pronunciation of brand name (Lifeline, 1993). Therefore, the opportunity for the success from recasting the unique global, local image” is rare (Fan, 2002). For large market like China, there is an important cue for multinational firms is localizing the brands at least within cultural context (Chain, 1997) because localization in international brands create more positive brand perceptions among local consumers (Khan & Murray, 2002).
Specially, changing brand name/logo from market to market strengthens brand recognition in international markets (Lifeline, 1993). Thus, it can be concluded that renaming is a process of creation and added value when culture and brand positioning are integrating with language (Fan, 2002). Nevertheless, there is the concern of “brand equity transfer” when the brand name is changed (Vreunion. ; Railcar, 2012). Consequence of changes is loss the association networks in customers’ mind (De Mooing, 2005). 2. Discussion 2. Existence of global brands In international marketing researches, existence of global brand is rarely denied and in practice, there are numerous evidence of the existence of global brand. McDonald’s arrive over 120 countries and serving 47 millions customers each days, its successes is based on its strong brand image and consistent service standard all ever the world (De Mooing, 2005). Globalization process is intruding into many factors in society, among them economy is the domain in which global process has been occurring vibrantly because of benefits from globalization namely transaction costs.
Integration of financial institutions strengthen capability of labor, capital, technology; and the international competition in global marketplace impulse the development in production and also reduce the differences in prices of good across space (Lee & Carter, 2009). Emergence of free market is consequence of association of oral trade organizations, groups across five continents. Simultaneously, the convergence generates in technology, politics field that give corporations lucrative chances to expand their market.
However, the globalization in culture is not significant, thus, the standardization hardly generates fully in global brand strategy. On the one hand, cultural exchanges conduct similarity of customer’s tastes. Global brands can have a similar positioning in all markets basing on “cultural heritage brand” (Menus; Lee, 2011) like sushi is known as healthy food all over the world. On the other hand, the homogeneity of customer behaviors cross cultures are impossible; time by time with the convergence of economy, diversity of culture increases rapidly insight one country (De Mooing, 2003).
On balance, with cultural exchanges, strong brands can gain successes in international markets. However, multinational corporations should keep creating competitive advantages to be sure that new lifestyles trend cannot defeat their position. Expand their brand image world wide. Although customer brand perception varies by culture that makes global brands hardly gain successes in all markets in five monotints, strong brands still can be available in many countries in the world. Thus, according to De Moss’s definition (2005), global brands can exist.
However, customer behavior is going to diverge rather than converge (De Moos, 2003), thus, there is the doubt of disappearance of global brand in the future. Therefore, I am going to analyze the role of COO image and Brand naming in brand launching process, to examine the chance of long-term existence of global brands. 2. 2 Cultural sensitivity & COO image perception Culture influenced directly to brand perception; one specific brand is perceived fervently in different countries. However, cultural impact on brand perception vary by degree of cultural sensitivity of products.
Products are divided into two types: “culture-free” and “culture-bound products” (Herring, 2005). While culture bound products namely fashion, food are decided mainly basing on buyer’s flavors, national rites and customs, culture – free products are chosen by intercultural homogeneous criteria. Therefore, marketers can keep strategic principles, positioning and marketing the same in every market for culture-free products. For instance innovative rodents, its product cycles are too short at market, hence, cultural value and brand association does not exist in its brand perception.
The overwhelming success of I phone prove for this idea; the negative image of country of manufacturing (made in China) has not harm its reputation. Luxury products, furthermore, is considered as an exception of cultural sensitivity, thus, COO effect is truly weak in all catalogues in luxury. In luxury market, firms’ status is seem to be the most important factors in customer’s brand perception. 2. 3 Brand name & national alphabet As I mentioned above, luxury goods is an exception of cultural sensitivity and it get rid of the COO effects.
However, in term of brand name, some brands with strong brand image in luxury market, still struggle with brand naming in foreign markets. Observing adapting process of luxury brands in Chinese and Vietnamese markets give us a new view about brand naming of global brands in practice. As the second biggest luxury market in the world, China is a attractive destination for luxury brands. However, to enter this market, multinational firms should attempt to initially generate n-depth analysis on Chinese brand name and content analysis (Chain, 1997).
In reality, strong brands like BMW, Channel, Louis Button changes its brand name in Chinese; those brands name bring new massages to Chinese customer (Figure 2) Figure 2: Chinese naming analysis Source: Lapboard (2009) their original brands, or change it into like Gucci, Channel, L’Oreal. For domestic companies, using English names is the effective way to make their names shorter and more simple. Even in some fields like banking, telecommunication and food processing, Vietnamese brands are more well known than foreign ones (Tu Aging, 012), English brands are more popular than Vietnamese name(Figure 3).
However, this phenomenon is limited in some small cities where English is not educated widely. Looking deeply in language analysis, we can clarify the reason making the difference between Vietnamese customers brand name perception and Chinese brand name perception. Vietnamese alphabet is Latin alphabet, thus, Vietnamese people are familiar with Roman character than Chinese customers who uses “ideogram” as daily literacy (Fan, 2002). Therefore, when Chinese companies run business in Vietnam, they need to change their brands into Vietnamese and English.
From this example, we can make a conclusion that changing brand name in international markets depends on the degree of differences of alphabet between home country and foreign market. Figure 3: Domestic brand names in Vietnamese market Industry Bank Telecommunication Food processing English name Maritime Bank Binomial Meaning Financing and Promoting Technology Vietnamese milk Logos Ill. Conclusion one country to another. Global brands, whose names, perceived reputations are recognized worldwide, still have to pay attention on analyzing deeply vulnerable points of brand image in international markets.
However cultural sensitivity of products influence directly the degree of cultural effect in brand perception of customers. For culture free products, standardization can apply for global branding strategy, whereas, localizing brands is used for culture bound products. Thus, COO effects vary not only by culture but also by nature of products. In era of out souring , effect of country of manufacturing is weak specially in luxury market. On the other hand, the role of brand name are significant in launching one brand in the markets where has a huge distance in language with home market.