Effects of Culture &Socioeconomics on the performance of global brand image strategies

Effects of Culture &Socioeconomics on the performance of global brand image strategiesPresenters:Yameen ZehraKainat YousafKomal ShaikhUsman Saleem ShaikhGohar IqbalOverviewDeveloping and managing brand image is an important part of firms marketing program.Communicating a clearly defined brand image enables consumer to identify the need satisfied by the brand.Brand Image is an integral component of brand equity.Developing needs based strategy enables a brand to create a distinct position within its category.A little attention has been given to relationship between brand image strategies and performance

Areas to be addressedTwo important areas to be covered are:

The effect of brand image strategies on product performance.

The management of brand image across global markets.Conceptual frameworkBefore Marketing mix decisions, brand image strategies for international markets must be developed.

Managers have many image and positioning alternatives but still:International marketers must research on how cultures an socio-economics effect the brand image strategiesConceptual framework (types of Brand image strategies)Researcher have found 3 types:Functional Image: fulfillment of basic customer need, problem solving and prevention.Social Image: Group member and affiliation.Sensory Image: Novelty, variety and sensory gratification.Example:Crests toothpaste functional image is based on cavity, tartar and decay prevention.Ultra brite targets the social needs of whiter teeth and social acceptabilityAIMs image is based on taste and sensory gratification.Conceptual framework (multiple needs)Researchers have shown that:Firms tends not to emphasize on only one needStrategies emphasizes one need does not come up with better financial performance than those on with multiple needs.

It is necessary or advantageous to have multiple needs developed for a particular product during brand image decision.Cultural and socio-economic characteristics of international marketsEnvironmental characteristics are likely to moderate the image performance relationship

Two characteristics have been identifiedNational CultureRegional Socio-economic conditionsNational cultureInfluences consumer behavior.Influences many aspects of culture affect differently the needs consumers satisfy through acquisition and use of goods and services.National Culture includes:Power distanceUncertainty avoidanceIndividualismNational culture (power distance)Describes the extent to which culture adopts social inequality.High power distance culture emphasizes more on prestige and wealth in shaping boundaries between social and economic classes such as Rich and Poor.People seek to maintain and increase their power as their satisfaction source.Low power distance culturePeople are much less focused on class differentiation and social aspirations.

Hypothesis 1:The effects of social brand image on market share will be greater (lower) when cultural power distance will be high (low) then when power distance is low (high)National culture (uncertainty avoidance)Captures the cultural pattern of seeking stability, predictability and low stress rater than change and new experiences.High Uncertainty avoidance:People with high UA are risk averse, change resistant, variety seeking and have low tolerance for ambiguityFunctional brand image are positioned to prevent or solve problems and reduce risk.Low Uncertainty avoidance:People with low UA diminishes the risk aversion and are more open to variety and novelty behaviors.Sensory brand image focuses on variety, novelty and sensory gratification part.National culture (uncertainty avoidance)Hypothesis 2a and 2bThe effects of functional brand image on market share will be greater (lower) where cultural uncertainty avoidance is high (low) than when uncertainty avoidance in low (high).

The effects of sensory brand image on market share will be greater (lower) where cultural uncertainty avoidance is low (high) than when uncertainty avoidance in high (low).

National culture (individualism)Aspect of culture that pertains to peoples tendency to value personal and individual time, freedom and experiences.High Individualism:People with high individualism do not follow social norms, but rather form relationships , make decision and initiate behavior independent of others.Sensory image are well suited for High Individualism.Low Individualism:People with low individualism follow norms, relationships decisions and behaviors of particular cultural group.National culture (individualism)Hypothesis 3a and 3b:The effects of sensory brand image on market share will be greater (lower) when cultural individualism is high (low) than when cultural individualism is low (high).

The effects of social brand image on market share will be greater (lower) when cultural individualism is low (high) than when cultural individualism is high (lowfi).

Regional socio-economicsApart from National culture, Micro geographic units i.e. Regions are also important.Greater homogeneity will be found within more localized regions than in countries.As trading nation reduce and eliminate structural, political and economic barriers, the search for similar consumers within trading blocks will become more important than national differences.Within most countries, regions exist that differ markedly from one another with regards to income, mobility, media access, employment and other socioeconomics characteristics.Regional socio-economics (modernity)ModernityA level of institution and organization to provide life experinces for the members of society.

Disposable Income: (an Aspect of Modernity)Disposable income indicates the amount of resources consumer allocates for goods and services.When resources are limited, consumer go for fulfilling their basic functional need.When resources increases, then consumer is willing to pay for sensory need fulfillment.Regional socio-economics (modernity)Exposer to Consumption: (2nd aspect of modernity)The extent to which consumer are exposed to Western, material oriented consumption culture, will influence their attraction to specified products.

Demonstration Affect:A phenomenon in which poorer consumers buy symbolic and sensory products (with little functional image), to stand with consumption societies to which they have been exposed.Regional socio-economicsHypothesis:The effect of functional brand image will be greater (lower) when regional socio economics is low (high) then when regional socio economics is high (low).

The effect of social brand image will be greater (lower) when regional socio economics is low (high) then when regional socio economics is high (low).

The effect of sensory brand image will be greater (lower) when regional socio economics is low (high) then when regional socio economics is high (low).

methodData collection: Step 1: Socio-economic Database:Compiled DB for 60 cities and towns within 10 countries. (Argentina, Belgium, China, France, Germany, Japan, Italy, Netherland, Per and Yugoslavia)Socio-economic data for the regions within each country were drawn from different available statistical data sources. The region per country range from 4 to 9.Step 2: Survey Development:Measured all items at regional level and include questions about brand image strategy used, market experience, problems encountered and market share of brand.Step 3: Sample Development:Blue jean and athletic shoe categories were identified of US firms, because of diverse brand image strategies used to market them.MethodStep 4: manager Identification: Contacted marketing manager of each company and asked them to identify the countries in which the marketed their products.Step 5: Survey administration:Mailed surveys customized for each countries, a cover letter and $1 as token of gratitude to the managers.

38 managers from 11 firms returned usable questionnaires, yielding a response rate of 33% (115 managers were mailed surveys)MethodMeasures:Brand Images:The survey asked managers to characterize their brands image in each regional market by locating 100 points across three types of strategies. With more points been allocated to more emphasized strategy.Culture Socio-economics:Cultural measures of national power distance, uncertainty avoidance and individualism were taken from Hofstede, on the basis from 10,000 respondents from 66 countries.Product Performance:Market share was chosen because of its wide use as an indicator of performance among consumer product marketers, association with a business relative size in its served market, and consisten use of other international market studies of business performance.MethodCovariates: The survey included 3 covariates Market experienceExtent of competitionMarketing Mix problems.Multiple regression:Examined the hypothesis predicting the effects of environmental factors of brand image strategy market share.Moderate Regression:Examined the moderating effects of culture and socio-economics on the market share of brand image startegies.Hypothesis:193 cases were taken as hypothesis testing as a sampleResultsAfter statistical testing following results had been taken out:

H1: Social brand image enhance performance when power distance are high and lesser extent when it is medium, where as social image hurt share when power distance is low, supporting hypothesis H1.H2a and H2b: The uncertainty avoidance X brand image interactions were not satisfied, H2a and H2b is not supported.H3a: Medium individualism has no effect on sensory image share, and low individualism has a negative effect on sensory image share. H3a have strong support.resultsH3b: For Social Market Images, market share was affected negatively when individualism was high, enhanced when individualism was medium, and greatly enhanced when individualism was low. H3b also have strong support.H4a: low levels of regional socio economics enhances functional brand image performance but does not affect performance at high level. H4a receives partial support.H4b: For social image, market share is enhanced when regional socio economics is high, not effected when socio economics is medium and negatively affected when socio economics is low. Strong support for H4bH4c: For Sensory image, market share is enhanced when regional socio economics is high, not affected when socio economics is medium and adversely affected when socio economics is low. Strong support to H4c.Thank you!