Previous research is mixed regarding consumer reactions and concerns regarding product brands with foreign‐sounding names. This paper aims to study the perception and purchase intent of foreign‐name brands in a sample of adult US and Chinese consumers.
US and Chinese consumers completed a 23‐item bilingual questionnaire to assess perceptions of foreign names on brand attitude and purchase intent for low‐involvement products, using two fictitious soft drink products.
The paper finds that there were no differences between US and Chinese consumers in attitudes towards foreign products or foreign brand names, except in the case of perceived deception. There were differences in perceptions that the product name was not authentic to the country of origin. Differences in purchase intent were driven by product type and price rather than country of origin or brand name.
When there is incongruence between product type and perceived country of origin, favorability for the product diminishes. Price, taste and packaging design may be more important in determining purchase intent.
While previous research looked at foreign brand names for high‐involvement products, this study addresses a low‐involvement product with mass‐market potential. China's and the USA's role as major consumers for global brands makes this study all the more relevant.
