Evidence published in a paper in the last number of Journal of Marketing suggests that the distinction between hedonic and utilitarian products may be relevant to foreign branding stratey.
Valentyna Melnyk, Kristina Klein, Franziska Völckner
(2012). The Double-Edged Sword of Foreign Brand
Names for Companies from Emerging Countries. Journal of Marketing: Vol.
76, No. 6, pp. 21-37.
doi: 10.1509/jm.11.0349
Abstract
Foreign
branding—or using brand names that evoke foreign associations through,
for example, spelling a brand name in a foreign language—is a popular
means in both developed and emerging countries of suggesting a specific
country of origin (COO) in the hope that it will evoke certain product
qualities. As a result, consumers increasingly encounter products with
brand names that imply a COO that differs from the actual COO (where the
product is manufactured). In four experiments, the authors find support
for the hypothesis that incongruence between the actual COO and implied
COO decreases purchase likelihood asymmetrically. Incongruence
backfires in hedonic categories but has hardly any effect in utilitarian
categories. Furthermore, incongruence decreases purchase likelihood
more if the actual COO is an emerging rather than developed country. The
authors address the psychological process underlying the asymmetric
effect of incongruence by showing that consumers apply different
information-processing strategies to hedonic versus utilitarian
products. These results have important implications for (foreign)
branding decisions.
(American Marketing Association Journals, available online in http://www.journals.marketingpower.com/doi/abs/10.1509/jm.11.0349, accessed 7 Nov 2012)
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