This study aims to examine the signaling effect of green country image (GCI) on premium marketing strategies for Korean cosmetic brands in China and Vietnam. It investigates how GCI, alongside brand globalness, influences consumer perceptions of premium value and willingness to pay a premium price. The study offers strategic insights for Korean brands to enhance their competitive advantage in these dynamic markets.
This quantitative study assessed perceptions of leading Korean cosmetic brands across two distinct market contexts. Chinese (N = 296) and Vietnamese (N = 279) consumers evaluated distinct sets of five Korean cosmetic brands – selected for top market-specific performance in China and Vietnam, respectively – all of which spanned skincare and makeup categories. Data from both consumer groups were then analyzed using moderated regression to examine relationships between GCI, brand globalness, perceived premium value and willingness to pay a premium price.
GCI dimensions decisively shape perceived premium value and willingness to pay a premium price. Brand globalness critically moderates these effects, with notable market differences: for Chinese consumers, it strongly amplifies how a country’s “social” and “people” green image aspects boost perceived premium value and willingness to pay a premium price, respectively. Conversely, for Vietnamese consumers, it uniquely strengthens the “environmental” aspect of GCI’s positive influence on perceived premium value.
This study delivers a groundbreaking empirical analysis rooted in newly developed GCI variables and measurement items. It stands as the first empirical research to translate these novel GCI insights into actionable international marketing strategies for achieving premium success for Korean cosmetics in the pivotal Chinese and Vietnamese markets. The study’s primary contribution lies in its novel examination of the interactive signaling effects of a multi-dimensional GCI and brand globalness.
