The purpose of this paper is to investigate the influence of incorporating Chinese elements in global brands on consumer purchase likelihood.
Six global brand products from three categories that utilized Chinese elements are used to test hypotheses. The Total Effect Moderation Model is used to analyze by combining moderation and mediation under a general analytical framework.
The results show that cultural compatibility has direct positive effect, in addition to an indirect effect (through local iconness) on purchase likelihood. Meanwhile, consumer cultural identity is found to moderate the impact of brand local iconness on purchase likelihood.
Evaluation and improvement of cultural compatibility in a global brand that incorporates Chinese elements is recommended for multinational marketers entering Chinese consumer markets. Meanwhile, marketers should pay attention to consumer cultural identity in the market segmentation process.
This paper takes a unique perspective to investigate whether and how global brands can succeed when adding local cultural elements to the product design, packaging and promotion in emerging markets like China.
