KOREASCHOLAR

Following the 2008 financial crisis, globalized markets in North America and Europe experience a shift in public opinion toward a renunciation of globalization and a reorientation toward traditional (domestic) values. Responding to this paradigm change, multi-national corporations (MNCs) face the decision of whether (a) to continue to pursue global branding strategies or (b) to align their global brands with local consumer cultures. This decision requires an understanding of how the degree of market globalization relates to consumer preferences. The present study draws on signaling theory to empirically investigate (a) the relative impact of a brand’s globalness (i.e., perceived brand globalness) and its cultural market alignment (i.e., perceived cultural symbolism) in eliciting perceptions of brand credibility and brand quality (b) across two countries that differ regarding their degree of market globalization (Germany and South Korea). Findings indicate that the signaling value of global brands, as a function of their market reach, is greater in globalizing markets than in globalized markets, whereas the signaling value associated with cultural market alignment is greater in globalized markets than in globalizing markets. Implications of the findings for theory and practice are considered.

• Timo Mandler(University of Hamburg, Germany)
• Fabian Bartsch(IESEG School of Management, France)
• C. Min Han(Hanyang University Business School, Korea)