Local-global cobrand positioning and consumer evaluations in emerging markets

Abstract

Cobranding initiatives between a local and a global brand have become a prominent practice. This research contributes to the cobranding and global branding literatures by investigating the effects of positioning strategy of the cobranded product (global consumer culture positioning vs. local consumer culture positioning) on consumer evaluations in emerging markets. In five experiments, the authors show that using global consumer culture positioning for the cobranded product leads to heightened word-of-mouth intentions and more favorable product valuations. This effect holds for both local and global product categories. Building on signaling theory, the authors show that brand credibility mediates the effect of positioning strategy on word-of-mouth intentions. Further, when the local (vs. global) brand is the announcement source, using a global rather than a local consumer culture positioning leads to enhanced word-of-mouth intentions. Yet, for consumers with stronger ethnocentrism, when the global brand makes the announcement of a cobranded product positioned on local consumer culture, word-of-mouth intentions are higher. Altogether, the findings have nuanced implications for local branding, global branding, and young consumers in emerging markets.