American Marketing Association
American Marketing Association
Strategies
Author(s): Martin S. Roth
Source: Journal of Marketing Research, Vol. 32, No. 2 (May, 1995), pp. 163-175
Published by: American Marketing Association
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MARTINS. ROTH*
   Brandimage managementis a criticalpartof a company's                              First, research should link brand image strategies and
marketingprogram.Communicatinga clearly defined brand                             productperformance.Althoughresearchon brandextensions
image enables consumers to identify the needs satisfied by                        has begun to examine the effects of using establishedversus
the brand (Park, Jaworski,and Maclnnis 1986) and differ-                          new brands on market share (Simon and Sullivan 1993;
entiate the brand from its competitors (DiMingo 1988;                             Smith and Park 1992), the relationshipbetween brandimage
Reynolds and Gutman 1984), and has been prescribedby                              strategiesand performancehas received little attention.Yet
both marketingpractitioners(Ogilvy 1963) and researchers                          brandimage strategiescan affect measuresof relativeperfor-
(Gardnerand Levy 1955) as a key to product success. In                            mance (e.g., marketshare)as well. Specifically,a need-based
fact, brandimage is an integralcomponentof a brand'seq-                           image strategy establishes a brand's position (relative to
uity, that is, the value of a brandin the minds' of consumers                     competition) within a product category, defining its niche
(Keller 1993). Developing a needs-based image strategy                            and establishing its market potential. Research has shown
providesthe foundationfor marketingprogramdevelopment                             that serving largerniches typically leads to betterlong-term
and enables the brandto create a clear and distinct position                      productperformancethan serving smallerniches within the
within its category. Although much conceptual work has                            same category(Lambkinand Day 1989; Montgomery1982;
been writtenon defining and managingbrandimage (Keller                            Romanelli 1987). Thus brand image strategy should affect
1993; Park, Jaworski, and Maclnnis 1986), very little em-                         product performance,because images appealing to large
pirical research exists to guide managers' image manage-                          niches should capturea larger share of a productcategory
ment efforts. Two important areas must be addressed by                            thanbrandswhose images are targetedto smallerniches.
studies examining and prescribingbrand image strategies:                             Second, research should address internationalas well as
(1) the effect of brand image strategies on productperfor-                        domestic brand image management. Given that effective
mance and (2) the management of brand images across                               brand image management centers on satisfying customer
global markets.                                                                   needs (Park,Jaworski,and Maclnnis 1986), and that cultur-
                                                                                  al, social, and economic dimensionsof internationalmarkets
  *MartinS. Roth is Associate Professor of Marketing,CarrollSchool of             shape consumer needs (Dannhaeuser 1987; Daun 1983;
Management,Boston College. The authorthanks Russ Belk, LarryFeick,                Hondrich1983; Reilly andWallendorf1987; Tanand Farley
Tim Heath, Rajiv Grover, Bernie Jaworski, Sandra Milberg, and Gerald              1987; Tse, Wong, and Tan 1988), global aspects of image
Zaltmanfor their many helpful comments. Insights providedby BartWeitz
and three anonymousJMRreviewers are also gratefullyacknowledged.                  managementmust be understood.Although there are strate-
                                                                                  gic advantagesto targetingthe same customersand satisfy-
                                                                                                            Journal of MarketingResearch
                                                                        163                                 Vol. XXXII(May 1995), 163-175
ing the same types of needs cross-nationally(Levitt 1983),             Using the normativemodel proposed by Park,Jaworski,
in many cases, the niche or positioning opportunitiesdiffer         and Maclnnis (1986), I investigatethree types of brandim-
across markets(Douglas andWind 1987; Jain 1989). For ex-            ages-functional, social, and sensory images. These images
ample, Levi's blue jeans creates differentbrandimages for           arebased on the fulfillmentof basic consumerneeds-prob-
customers in different parts of the world. A very social,           lem solving and problem prevention (functional), group
group-orientedimage is used in the United States, whereas           membership and affiliation (social), and novelty, variety
a much more individualist, sexual image is maintainedin             seeking, and sensory gratification(sensory)-and are con-
Europe. Similarly, Reebok varies the image of its athletic          sistent with other descriptions of relationships involving
shoes on the basis of nationaland regionaldifferencesit per-        persons, environment, and sociocultural systems (Mali-
ceives in consumer tastes and preferences. In the United            nowski 1944), Maslow's (1954) need hierarchy,frameworks
States, Reebok tries to balanceboth lifestyle and athleticim-       of motivating forces driving consumer behavior (Rossiter
ages, whereas in WesternEurope, the brandimage focus is             and Percy 1987), and a typology of consumer needs devel-
more narrowlyon athletics and performance.Some brands               oped from a review of behavioralscience researchon needs
have successfully targeted the same types of customers              and values (Hanna 1980). It is not uncommon for brands
using the same brandimage strategiescross nationally(e.g.,          within a category to be uniquely positioned along these
Coca Cola, Nike), but many firms have failed international-         types of needs. For example in the United States toothpaste
ly by not adaptingtheir strategiesto cultural,economic, and         category,Crest's functionalimage is based on cavity, tartar,
otherdifferencesamong markets(Hill and Still 1984; Ricks            and decay prevention,UltraBrite is positionedtowardsocial
 1983). Therefore,it is imperativethatmanagersidentify,as-          needs to provide whiter teeth and social acceptability,and
sess, and respondto global marketconditionsthatcan affect           Aim's image is based on taste and sensory gratification.Al-
the size of niches for particularbrandimage strategies.             though the normative model suggests firms should select
   My purposeis to provide managerswith a frameworkfor              only one type of need when developingbrandimages (Park,
selecting brand image strategies for internationalmarkets.          Jaworski,and Maclnnis 1986), researchhas shown that (1)
Specifically, I examine the linkage among brand image               firmstend not to emphasizeonly one need, and (2) strategies
strategies, cultural and socioeconomic factors, and market          emphasizing one need do not necessarily lead to better fi-
share in international markets. The international brand             nancial performancethan those based on multiple needs
image strategies used by consumer goods firms in two in-            (Roth 1992). The findings indicate that managersfeel it is
dustries were identified, indicating the type of needs the          either necessary and/or advantageous to diversify their
brandsseek to satisfy and their positioning strategyin each         brandimage strategies across two or more needs. The fre-
market.Because the relative performanceof a brandposi-
                                                                    quency with which firms try to be "many things to many
tion dependson the size of the niche targeted,I also investi-
                                                                    people" indicates a need to better understandthe linkages
gated cultural and socioeconomic factors hypothesized to            between marketenvironmentsand consumerneeds. Identi-
affect the size of the targetedniche and, therefore,the mar-
ket potentialof the image strategy.Because marketershave            fying environmentalfactorsthatfavor one type of consumer
                                                                    need over anotherwill help managersselect the brandimage
long noted that countries are heterogeneousand comprised
of uniqueculturaland socioeconomic regionalmarkets(e.g.,            strategieswith the greatestmarketpotential.
the FlandersandWalloniaregions in Belgium, and the Que-              Culturaland Socioeconomic Characteristicsof
bec province in Canada;cf. Douglas and Wind 1987; Hill               InternationalMarkets
 and Still 1984; Jain 1989), the study includedboth a nation-
al and a more micro regional focus.                                     Social science and managementresearch offer insights
   The article is organizedas follows. The next section pre-         into the effects culturaland socioeconomic characteristicsof
 sents a conceptualframeworkthat links brandimage strate-            foreign marketsmay have on consumer needs and the sub-
gies, culturaland socioeconomic marketcharacteristics,and            sequentsuccess of brandimage strategies.Figure 1 presents
 product performance.Next, I discuss the research design,            a conceptual model of the potential moderatingeffects of
 which involved secondarydata and surveys given to product           culture and socioeconomics on the performanceof brand
 managers.I then presentresults, followed by discussions of          image strategies. In internationalmarkets, environmental
 the managerialand theoreticalimplicationsof the findings.           characteristics are likely to moderate the image-perfor-
 Finally, I presentdirectionsfor furtherresearch.                    mance relationship.As shown, two characteristics,(1) na-
                                                                     tional cultureand (2) regional socioeconomic conditions af-
              CONCEPTUALFRAMEWORK                                    fect the performanceof functional,social, and sensorybrand
  Much of internationalmarketingresearchhas focused on               images. In addition, because market and firm conditions
marketingmix customizationversus standardization(for a               may also impact performance,the model shows likely co-
recentreview, see Aulakhand Kotabe 1993). Yet, before one            variates, that is, marketexperience, extent of competition,
makes marketingmix decisions, brandimage strategiesfor               and marketingmix implementationproblems,that shouldbe
international markets must be developed. Brand image                 managedwhen examining the effects of environmentalfac-
strategies must be designed to appropriatelyposition the             tors and brandimage on performance.
product for the targeted market segments. Although man-              National Culture
agers have many image and positioning alternativesfrom
which to choose, internationalmarketersmust explore how                A country's culture has long been identified as an envi-
culturaland socioeconomic characteristicsaffect the perfor-          ronmentalcharacteristicthat influences consumerbehavior,
mance of brandimage strategies.                                      andthe manyaspects of a cultureaffect differentlythe needs
                                                            Figure1
     THEEFFECTSOF CULTURAL
                         ANDSOCIOECONOMIC
                                        FACTORSON THEPERFORMANCE
                                                               OF BRANDIMAGESTRATEGIES
                                                                                                          Product
                                                                                                          Performance
                                                                                                    I~    *Marketshare
consumers satisfy throughthe acquisitionand use of goods            needs. More formally,power distanceis hypothesizedto af-
and services. Hofstede's (1984) influential work on cross-          fect brandimage performanceas follows:
culturalvalue systems identifies three aspects of culturethat
can be relatedto consumerneeds and brandimages-power                   Hi: The effects of social brandimages on marketshare will be
                                                                           greater(lower) when culturalpower distance is high (low)
distance, uncertainty avoidance, and individualism. Al-                    than when power distance is low (high).
though Hofstede's researchwas conductedin organizational
settings, the values he identifies have been associated with           Uncertainty avoidance captures the cultural pattern of
consumer behavior as well as with work-relatedactivities            seeking stability, predictability,and low stress ratherthan
(for a recent example, see Lynn,Zinkhan,and Harris1993).            change and new experiences (Hofstede 1984). People in
   Power distance describes the extent to which a culture           high uncertaintyavoidanceculturesare risk averse,resistant
fosters social inequality. Cultures high in power distance          to change and variety seeking, and have a low tolerancefor
tend to emphasize the importanceof prestige and wealth in           ambiguity. For brand image management, uncertainty
shaping boundariesor vertical relationshipsbetween social           avoidance can be linked to aversion to a stimulus or event.
and economic classes such as rich and poor, and superiors           When consumers experience some type of aversion, they
and subordinates (Hofstede 1984; Inkeles 1960; Lenski               will be motivatedto remove the aversionor at least reduceit
 1966). In high power distancecultures,people seek to main-         as far as possible (Rossiter and Percy 1987). For example,
tain and increasetheir power as a source of satisfaction.So-        when averse to cavities or other dental hygiene problems,
cial consciousness is high, and they are motivated by the           consumers will seek a toothpaste capable of reducing the
need to conform with those in their class or in classes to          risk of cavities. Functionalbrand images are positioned to
which they aspire. In low power distance cultures, people           preventor solve problems and, therefore,reduce perceived
are much less focused on class differences and social aspi-         risk. When culturesare high in uncertaintyavoidance,con-
rations.If one relates the aspects of culturalpower distance        sumers will be very focused on risk aversion and problem
to consumerneeds, then it appearsthat social brandimages            solving and prevention and, thus, will be good candidates
should be the best fit for high power distance cultures be-         for functional brandimages. In contrast, when uncertainty
cause people are highly motivatedby social status and affil-        avoidanceis low, risk aversionis diminished,andconsumers
iation norms. On the other hand, when power distance is             aremore open to varietyand novelty behaviors.Thus, in low
low, social brandimages will not match the culturalnorms            uncertaintyavoidancecultures,sensory brandimages focus-
because consumers are not motivated by group-related                ing on variety,novelty, and sensory gratificationare effec-
tive. More formally, uncertaintyavoidance is hypothesized            similar consumers within trading blocs will become more
to affect brandimage performancein the following ways:               importantthan nationaldifferences.
                                                                        Although culturestend to transcendentire nations, social
  H2a:The effects of functionalbrandimages on marketsharewill        and economic conditions often vary substantiallywithin
      be greater (lower) when cultural uncertaintyavoidance is
                                                                     countries. Within most countries, regions exist that differ
      high (low) than when uncertaintyavoidanceis low (high).
  H2b:The effects of sensory brandimages on marketshare will         markedlyfrom one anotherwith regardsto income, mobility,
      be greater (lower) when culturaluncertaintyavoidance is        media access, employment,and othersocioeconomiccharac-
      low (high) than when uncertaintyavoidanceis high (low).        teristics. Sociologists often assess a region's socioeconomic
                                                                     level in terms of its "modernity"-a measureof the institu-
   Individualismis an aspect of culturethat pertainsto peo-          tions andorganizationsthatprovidelife experiencesfor mem-
ple's tendency to value personal and individual time, free-          bers of a society (Inkeles 1983; Inkelesand Smith 1974).
dom, and experiences (Hofstede 1984; Parsons and Shils                  One aspect of modernitythat relates to consumptionand
1951; Riesman, Glazer,and Denney 1953). In contrast,cul-             the viability of brandimage strategiesis disposableincome.
tures that emphasize collectivism exhibit patternsof group           Disposable income indicates the amount of resources con-
or collective thinking and acting. In other words, cultures          sumers allocate to goods and services. When resources are
high in individualismtend to seek varietyand hedonisticex-           limited, consumers use goods and services to satisfy their
periences, whereas collectivist culturescorrelatemore with           most basic, functionalneeds. As resourcesincrease, so does
conformity and group behavior.In addition,people in high             consumerwillingness to spend money on productsthat sat-
individualismculturestend not to follow social norms, but,           isfy more symbolic and sensory needs. For example, the
rather,form relationships,make decisions, and initiate be-           major consumption goal of Zinderois Nigerians, a culture
haviors independent of others. In terms of brand image               with very limited economic resources,is nutritionalself-suf-
strategies, cultures high in individualism seem well-suited          ficiency, in contrastto the more symbolic and experiential
for sensory images that emphasize variety,novelty, and in-           consumption patterns of more affluent North Americans
dividual gratification.On the other hand, cultures with low          (Wallendorf and Amould 1988). Hence, when socioeco-
individualism will find social brand images that reinforce           nomic conditions are low, functionalbrandimage strategies
                                                                     will have the most appeal.When socioeconomic conditions
group membershipand affiliation more attractive.The fol-
                                                                     increase, consumptionof social and sensory goods to satis-
lowing hypotheses describe how culturalindividualismwill
affect brandimage performance:                                       fy symbolic and hedonic needs is more likely.
                                                                        Anotheraspect of modernitythatinfluencesconsumerbe-
  H3a:The effects of sensorybrandimages on marketsharewill be        havioris exposureto consumption.The extentto which con-
      greater (lower) when cultural individualismis high (low)       sumersare exposed to Western,material-orientedconsump-
      than when uncertaintyavoidanceis low (high).                   tion cultureswill influence their attractionto specific prod-
  H3b:The effects of social brandimages on marketshare will be       ucts. The demonstrationeffect, a phenomenon in which
      greater (lower) when cultural individualismis low (high)       poorerconsumersbuy symbolic and sensory products(with
      than when individualismis high (low).                          little functional value) to identify with consumption soci-
                                                                     eties to which they have been exposed (Keyfitz 1982;
Regional Socioeconomics                                              Nurske 1953), explains why consumersin pooreror lesser-
  Although country-levelfactors, such as national culture,           developed countries purchase status and hedonic goods
affecting brand image strategy are important,micro geo-              when functional ones would seem more appropriate(Belk
graphicunits, that is, regions within countries,meritinvesti-         1988; Keegan, Still, and Hill 1987). In short, what con-
                                                                     sumerssee, hear,and access via television, other media, au-
gation as well. Although the predominantapproachin past
internationalbrandmanagementresearchhas been to exam-                tomobiles, and other forms of mobility shapes their needs
                                                                     and attitudestowardthe consumptionof productsand ser-
ine country-level differences (e.g., Boote 1983; Huszagh,
                                                                     vices (Belk 1988; Jain 1989; Keegan, Still, and Hill 1987;
Fox, and Day 1986; Martenson1989), national analyses of
                                                                     Keyfitz 1982; O'Guinn, Lee, and Faber 1986; Weimann
marketingstrategyeffectiveness may be too broadin scope,              1984). When marketsare characterizedby low levels of re-
causing importantintra- and inter-countrysimilarities and            gional modernity,consumers will not be familiar with the
differences to be overlooked. Greaterhomogeneity will be             materialaspects of consumerculturenor with the ability of
found within more localized regions than in countries.(See           goods and services to satisfy social and sensoryneeds. Their
anthropologicalresearchon intra-versus inter-culturalvari-           lack of mobility and exposure to media will prevent them
ation in Boster 1987; Roth and Moorman 1988.) Although               from learningabout the more symbolic and experientialas-
proponents of the global standardizationapproach (e.g.,              pects of productconsumption.Instead,productswill be val-
Levitt 1983) have espoused the growing similarity of con-            ued for their functionalcapabilities,thus making functional
sumerscross-nationally,domestic managers,in fact, contin-            brandimage strategiesmore suited to the environmentthan
ually look for sophisticatedways to define marketsand de-            social or sensory images. As regions become more modem,
velop micromarketingstrategies, such as the integrationof            however,exposure to materialcultureincreases, motivating
census and marketresearchdata bases to identify geodemo-             people to both desire the goods they see being consumed in
graphic,geopsychographic,and otherarea-basedtargetmar-               other culturesand to purchaseproductsthat associate them
kets within the United States (McKenna 1992; Mehrotra                with other cultures and societies. Hence, social brand im-
1990). Furthermore,as tradingnationsreduce and eliminate             ages that promotegroup identificationwill have greaterap-
structural,political, and economic barriers,the search for           peal in high modernityregionalmarkets.However,high lev-
els of modernityalso foster more individualand self-aware-            strategicperformanceacrossall of the regionsin the database.
ness values (Inglehart 1977; Yankelovich 1981), which are                Step 4-Manager identification. I contacted marketing
associated with needs for self-enhancement and personal               managersat each company and asked them to identify the
fulfillmentand consistent with arousaland stimulation(sen-            countriesin which they marketedtheirproducts.The person
sory) need-basedbrandimages.                                          contacted often provided the name of anothermanagerre-
   In most countries, the correlationbetween per capita in-           sponsible for internationalmarketingfor a particularcoun-
come and modernity is quite high (e.g., Johansson and                 try. I asked managersof firms marketingtheir brandin one
Moinpour 1977; Sethi 1971). Measures of mobility and                  or more marketswithin the 10 countriesto participatein a
Westernexposure can provide an accuratedescriptionof a                marketresearchstudy examining the performanceof brand
market'sdegree of modernity,capturingboth economic and                image strategiesin internationalmarkets.
demonstrationeffects on consumption.The hypothesizedre-                  Step 5-Survey administration. I mailed surveys cus-
lationships between regional socioeconomics (modernity)               tomized for each country,a cover letter,and $1 as a token of
and brandimage performanceare summarizedas follows:                   gratitudeto the managers.The survey contained items for
                                                                      each region within the countriesserved by the firm. If a re-
  H4a:The effects of functionalbrandimages on marketsharewill
      be greater (lower) when regional socioeconomics is low          sponse was not received after two to three weeks, I mailed
                                                                      reminderletters and questionnaires.
      (high) than when regional socioeconomics is high (low).
  H4b:The effects of social brandimages on marketshare will be           Thirtyeight managersfrom 11 firmsreturnedusableques-
      greater(lower) when regional socioeconomics is high (low)       tionnaires,yielding a response rate of 33% (115 managers
      than when regional socioeconomics is low (high).                were mailed surveys).Many of the participantsin the study
  H4c:The effects of sensorybrandimages on marketsharewill be         managed a brandin multiple foreign markets.Collectively,
      greater(lower) when regional socioeconomics is high (low)       they reportedon 209 cases of a particularbrand'sstrategy,
      than when regional socioeconomics is low (high).                market,and performancein a particularregionalmarket.On
                                                                      average,each managerparticipatingin the studyreportedsix
                         METHOD                                       cases. To assess the degreeof non-responsebias, a sampleof
                                                                      10 of the 77 managers who did not returnquestionnaires
   I identified and collected environmentaldata from coun-
                                                                      were contacted by phone and found not to differ from re-
tries and the regions within them that are culturallyand so-
                                                                      spondentswith regardto the brandimage, covariate,or per-
cioeconomically varied. Then I administered surveys to                formancesurveymeasuresdescribedsubsequently.The most
firms marketingconsumer goods in these countries and re-              common reasons for not respondingwere proprietarydata
gions to determineboth the brandimages used and the re-               concerns,lack of time, and lack of regional-leveldata.
sulting product performance. Collectively, these two data
sources provided the means for testing the model and hy-              Measures
potheses outlined previously.                                           Brandimages. The surveyaskedmanagersto characterize
Data Collection                                                      theirbrand'simage in each particularregionalmarketby al-
                                                                     locating 100 points across three types of strategies:func-
   Step 1-Socioeconomic data base. I compiled a data base            tional, social, and sensory,with more points being allocated
of socioeconomic characteristicsfor 60 cities and towns              to the more emphasized images (see the Appendix). Man-
within 10 countries (Argentina, Belgium, China, France,
                                                                     agers could allocate 100%of the points to one brandimage
Germany,Japan, Italy, Netherlands,Peru, and Yugoslavia),             (a depth strategyapproach)or allocate the points across two
which were chosen because of their social, economic, and             or three of the strategies(breadthapproach).
culturaldiversity.Socioeconomic datafor the regions within              Culture and socioeconomics. Cultural measures of na-
each country(the numberof regionsper countryrangedfrom               tional power distance, uncertaintyavoidance, and individu-
four to nine) were drawnfrom a varietyof publicly available          alism were taken from indexes developed by Hofstede
statistical data sources. Because multiple socioeconomic             (1984), on the basis of his survey of over 100,000 respon-
variableswere collected, factoranalysis was used to develop          dents from 66 countries.Hofstede's sample is not represen-
a scale indicatingeach regionalmarket'sdegree of socioeco-           tative of the entirepopulation,but of the middle classes em-
nomics (see the Appendixfor a descriptionof the analysis).           ployed in multinationalcorporations.Because we are not in-
   Step 2-Survey development. My survey measured all                 terestedin absolutescores, but in cross-nationalculturaldif-
items at the regional level and included questions about the         ferences, the indexes are valid because the sampledrespon-
brandimage strategyused, marketexperience,problemsen-                dents were well-matched demographically,with the only
countered, and market share for a brand in a particularre-           systematicdifferencebeing their nationality.I measuredre-
gional market. The survey was developed, pretested, and              gional socioeconomics in terms of each region's modernity,
modified for administrationto marketingand productman-               which was estimated as a factor score determined using
agers responsible for marketing their products in one or             scoring coefficients computed from the factor loadings
more of the 10 countriesin the data base.                            (refer to the Appendix). The scoring coefficients were esti-
   Step3-Sample development.UnitedStatesfirmsmanufac-                matedusing the Andersonand Rubin (1956) method,which
turingconsumergoods in the bluejean and athleticshoe cate-           producesaccurateestimatesfor use as independentvariables
gories were then identifiedand chosen because of the diverse         in regressionanalyses (Lastovickaand Thamodaran1991).
brandimage strategiesused to marketthem. In addition,both               Product performance. Managers indicated the brand's
of these categorieshave many United States-basedmultina-             market share during the most recent annual period for the
tional competitors,thus offering an opportunityto explore            brandin each regionalmarket.Marketsharewas chosen be-
cause of its wide use as an indicatorof performanceamong            yond three standarddeviations of the mean and, therefore,
consumerproductmarketers(e.g., Smith andPark1992), as-              were not included in subsequentanalysis. The sample used
sociation with a business's relative size in its served market      for hypothesis testing was thus 193 cases. Table 1 reports
(e.g., Buzzell and Gale 1987), and consistentuse in otherin-        Pearson correlationsand descriptive statistics for the vari-
ternationalmarketingstudies of business performance(e.g.            ables used in this study. Social and sensory images had a
Ryans 1988; Szymanski, Bharadwaj, and Varadarajan
                                                                    small, positive correlation,indicatinga weak patternof joint
1993). Althoughmarketsharediffers from typical measures
of communication effectiveness (e.g., brand awareness,              emphasis in the same brand image strategy. In contrast,
brand attitude), the images reported are a function of the          functional image had a strong, negative correlation with
firm's entire marketingprogram-not just their advertising           both social and sensory images, which indicatedthat these
(Park,Jaworski,and Maclnnis 1986) and, therefore,better             image pairs tended not to be emphasizedtogether.Also, no
accountsfor the entire marketingprogram'sperformance.               firms reportedusing a single-need brandimage strategy-
   Covariates.The survey included three covariates:market           the maximumpoints allocatedto any one strategywas 75 of
experience,extent of competition,and marketingmix prob-             100-thus, all firms incorporatedtwo or more needs into
lems. Internationalmarketingexperience is often a key de-           their brandimage strategy.
terminantof internationalmarketingsuccess (Denis and De-
                                                                       The level of intercorrelationsamong the independent,
pelteau 1985; Gronhaugand Graham 1987; Johanson and
Vahlne 1977). In addition,the length of time the brandhas           moderator,and covariate variables was, in general, low to
been availablein the marketoften explains unstablegrowth            moderate,rangingfrom .001 to .54. There were two excep-
rates and performancemeasures.In some cases, new market             tions-(1) cultural individualism and regional socioeco-
entrantsdemonstraterapidperformancegrowthbefore pro-                nomics (r = .714), and (2) marketingmix problemsand cul-
gressing into the growth and maturitystages of the product          turalindividualism(r = -.579). Correlationsat this level sig-
life cycle. On the otherhand, some firms exportingproducts          nal the possible presence of multicollinearity,which inflates
to new marketsoften encounterslow growthratesuntil they             the standarderrorsof parameterestimates.
adjusttheir marketingprogramsas more marketexperience                  To minimize and check for the presence of multi-
is gained. Managersreportedthe numberof years the brand
                                                                    collinearity,a numberof steps were taken. First, I centered
had been availablein the regional market.
                                                                    all of the independent, moderatorand covariate variables
   Managersalso reportedthe extent to which they encoun-
tered competition problems in each regional market.This             (i.e., put them in deviationscore form so thattheirmeans are
item was measuredusing a seven-pointLikertscale. Extentof           zero).1As shown by Aiken and West (1991, p. 32), center-
competitionis an importantcovariatebecausedirectcompeti-            ing variablessignificantlyreduces multicollinearity,thereby
tors try to servethe same niche, andfight for marketshare.In        providingunbiasedparameterestimates. Second, I calculat-
addition,competitionaffects internationalmarketingperfor-           ed varianceinflation factors (VIF) to examine the extent to
mance (Denis and Depelteau 1985; Jain 1989). Hence, brand           which nonorthogonality among independent, moderator,
image performancecould be negativelyaffected when com-              and covariatevariablesinflates standarderrors.The average
petitiveproblemsare encounteredin a regionalmarket.                 VIF was 1.94, ranging from 1.32 to 2.95-well below the
   Effective implementation of the marketing mix brand
                                                                    cutoff of 10 recommendedby Neter, Wasserman,and Kut-
conveys to consumersthe image intendedby the firm.Firms
                                                                    ner (1989, p. 409). The centering procedure and the VIF
experiencingdifficulties managingtheir marketingmix will
have problems effectively communicating the intended                findings suggest that multicollinearityis not a threatto the
brandimage to consumers, and, subsequently,their perfor-            substantiveconclusions to be drawnfrom the analysis dis-
mance will be adverselyaffected.The prevalenceof market-            cussed subsequently.
ing implementation problems can hurt a brand's perfor-                 The multipleregressionmodel tested containedthe effects
mance and is, therefore, another importantcovariate. The            of each independentandmoderatorvariable(i.e., threediffer-
survey included four Likert scaled questions on problems            ent brandimages; and one regionaland four culturalfactors,
encounteredwith the marketingmix and enabled managers               respectively),threecovariatevariables,andthe independentX
to reportthe extent of product,distribution,pricing, and ad-        moderatorinteractionsfor testingeach hypothesis.The inter-
vertising and promotion problems experienced in each re-            action terms indicate the moderatingeffect of the environ-
gional market.A principalcomponentsanalysis showed the
four items to load on a single factor.All items had factor          mentalfactorson the performanceof the brandimage strate-
loadings and communalities greater than .4. Cronbach's              gies. To control for any correlatedresidualsdue to multiple
alpha, when combining the four variables into one scale,            productcategoryand within-categorybrandobservations,10
was .727. The Appendix displays the covariatemeasures.              dummy variableswere created(one dummy variablefor the
   Using multiple regression, I examined the hypotheses             two productcategories,five dummyvariablesfor the six blue
predictingthe effects of the environmentalfactors on brand          jean brands,and four dummy variablesfor the five athletic
image strategymarketshare. Specifically, I used moderated           shoe brands)and includedin the regressionmodel.
regression analysis (Arnold 1982; Sharma, Durand, and
Gur-Arie1981) to examine the moderatingeffects of culture
                                                                        lThis process is recommended when conducting regression analyses
and socioeconomics on the market share of brand image
                                                                     (e.g., Dillon and Goldstein 1984; Marquardt1980), especially when prod-
strategies.Prior to hypothesis testing, the data were exam-          uct terms such as independentX moderatorinteractions are to be used
ined for outlying cases. Sixteen cases had marketsharesbe-           (Aiken and West 1991; Cronbach1987).
Mean                         11.49         48.52         18.16      33.32         54.36          80.96           58.03          0.00       14.6
S.D.                          6.36         24.24         13.98      16.67         12.47          12.15           18.77            .93       5.56
Range-High                   31            75            60         65            76             94              80              1.33      20
Range-Low                     2             0             0          0            35             29              16            -2.53        2.2
n= 193
                                                                 Table 3
                         SLOPEANALYSIS            INDEPENDENT
                                     OF SIGNIFICANT          X MODERATOR
                                                                       INTERACTIONS:
                                STANDARDIZEDREGRESSIONCOEFFICIENTS
                                                                 ANDT-VALUES
brandimages. High levels of power distance (13= .452, p <                  Thus, H3areceived strong support.
.01) enhance marketshare,but medium (13= -.256, p < .05)                      For social images, marketshare was affected negatively
and low (P = -.259, p < .01) levels reduce share.In summa-                 when individualismwas high (3 = -.402, p < .01), enhanced
ry, the results show that cultural power distance is a rela-               when individualismwas medium (3 = .198, p < .05), and
tively strong moderatorof social and sensory brand image                   greatly enhancedwhen individualismwas low (1 = .300, p
performance.When a market'spower distance is high, in-                     < .01). Hence, H3balso received strong support.
creased use of social and sensory brandimage strategiesen-                    Although I made no hypothesis about the moderatingef-
hances performance,whereas limited use of social and sen-                  fects of individualism on functional image performance,
sory images enhancesperformancewhen culturalpowerdis-                      Table3 shows thatfunctionalimages are enhancedwhen in-
tance is low.                                                              dividualismis at high (3 = .374, p < .01) and medium (13=
   Cultural uncertaintyavoidance. H2aand H2b stated that                   .519, p < .01) levels, but not affected when individualismis
functionalbrandimages would performwell in high uncer-                     low (13= -.136, p > .05). In summary,when culturalindi-
tainty avoidance markets and that sensory brand images                     vidualism is high, sensory and functionalimages should be
would perform well when uncertaintyavoidance was low.                      emphasized, whereas social images should not. When indi-
Althoughnot addressedby the hypotheses,the effects of un-                  vidualism is low, social images will have the greatestposi-
certaintyavoidanceon the performanceof social brandim-                     tive impact on marketshare, whereas sensory images will
ages were examined as well. The uncertaintyavoidance X                     hurtperformance.
brandimage interactionsfound in Table 2 were not statisti-                    Regional socioeconomics. H4a_c stated that in low so-
cally significant(13= .025 for functionalimage, 13= .094 for               cioeconomic regions, functionalbrandimages will perform
social image, 3= .053 for sensory image; all hadp-values >                 well, and in high socioeconomic regions, social and sensory
.10). H2aand H2bwere not supported.                                        brandimages will performwell. Table 2 exhibits directional
   Culturalindividualism.H3astatedthat sensory brandim-                    and statisticalsupportfor these hypotheses. The functional
ages would performwell in high individualismcultures,and                   brand image X regional socioeconomics interaction was
H3bstated that social brandimage strategieswould perform                   negativeand statisticallysignificant(13= -.203, p < .05), and
well in cultureslow in individualism.The results in Table 2                the social and sensory brand image X regional socioeco-
show strong, positive individualismX sensory brandimage                    nomics interactionswere positive and statistically signifi-
interactions(13= .261, p < .01), as well as a negative indi-               cant (1 = .305, p < .01 for social image; 13= .286, p < .01
vidualism X social brandimage interaction(13= -.339, p <                   for sensory image). The slope analyses in Table 3 provide
.01). Although not included in the hypotheses, culturalindi-               furtherinsights into the moderatingeffects of regional so-
vidualism had a positive and marginallysignificant moder-                  cioeconomics. For functional images, low regional socioe-
ating effect on the marketshare of functionalbrandimages                   conomics positivly impactsmarketshare(13= .215, p < .05).
   = .169, p < .10). Slope analyses illustratedin Table3 pro-
(P13                                                                       At medium and high levels of socioeconomics, functional
vide specific insights into the moderatingeffects of individ-              images have little impact on share (13= .046, p > .05 at
ualism. For sensory images, high individualismhas a posi-                  medium socioeconomics; P = -.09, p > .05 at high socioe-
tive effect on sensory image market share (13= .486, p <                   conomics). Thus, H4areceives partial supportbecause low
.01). Medium individualismhas no effect on sensory image                   levels of regionalsocioeconomics enhancesfunctionalbrand
share (1 = -.063, p > .05), and low individualismhas a neg-                image performance,but does not affect performanceat high
ative effect on sensory image share (p = -.424, p < .01).                  levels. For social images, marketshareis enhancedwhen re-
gional socioeconomicsis high (p = .538, p < .01), not affect-        Two aspects of culturehad significantimpact on the perfor-
ed when socioeconomicsis medium(P = .108, p > .05), and              mance of brandimage strategies-power distance and indi-
negativelyaffectedwhen socioeconomics is low (P3= -.282,             vidualism. In low power distance cultures (e.g., Germany,
p < .01), thus providingstrong supportfor H4b.The results            Netherlands,Argentina)in which people are not highly fo-
also stronlysupportH4c: For sensoryimages, marketshareis             cused on social roles and group affiliation,functionalbrand
enhancedwhen regionalsocioeconomicsis high (p = .468, p              images that de-emphasizethe social, symbolic, sensory,and
< .01), not affected when socioeconomics is medium (P =              experientialbenefits of productsaremost appropriate.When
-.088, p > .05), and adverselyaffectedwhen socioeconomics            the country'sdegree of power distance is high (e.g., China,
is low (P = -.278, p < .01). In summary,low regional so-             France, Belgium), social and/or sensory needs should be
cioeconomics enhancesperformancewhen functionalbrand                 emphasized.
images are emphasizedas opposed to social and sensory im-              In countrieswith high individualismcultures(e.g., Euro-
ages. High regional socioeconomics achieves better perfor-           pean countries), brand images that emphasize functional,
mance using social and sensorybrandimage strategies.                 variety, novelty, and experiential needs are more effective
                                                                     than social image strategies. On the other hand, cultures
Main Effectsof the Covariates                                        with low individualism (e.g., Asian countries) are more
   The main effects of marketexperience,competitiveprob-             amenable to social brand image strategies that emphasize
lems, and marketingmix problemsare also found in Table2.             group membershipand affiliation benefits than they are to
Marketexperience, operationalizedas length of time in the            sensory brandimages.
market,did not affect marketshare(p > .10), however,com-                Given the strongregionaleffects on modernity,one could
petitive and marketingmix problems did. For competition              expect regional culture also to have a moderatingeffect on
problems, the effect on market share was negative (P3=               brand image performance.Unfortunately,cultural data for
-.174) and significantatp < .05, indicatingthatthe presence          regions within countriesare not widely availableoutside of
of competitiveproblemshampersmarketshare.For market-                 North America (e.g., Kahle 1986). Nonetheless, furtherre-
ing mix problems,the beta coefficient was also negative (P           search examining subcultureeffects may enrich our under-
= -.365) and significant at p < .01, indicating that when            standingof brandimage performance.
managersexperiencedifficultiesimplementingtheirmarket-
                                                                                         FURTHERRESEARCH
ing programs,productperformancesuffers.In summary,the
more (fewer) competitiveand implementationproblemsex-                   My study provides a startingpoint for helping managers
perienced,the lower (higher)marketsharetended to be.                 marketproductsinternationallyso as to best align brandim-
                                                                     ages with customerneeds. As with all empiricalresearch,the
            DISCUSSIONAND IMPLICATIONS                               study and results presentedhave limitations,which provide
   My study addressedimportantlimitationsof past interna-            interesting avenues for further research in three specific
tional marketing management research by linking brand                areas: (1) extensions of the present model to other product
image strategies,the managementof which should precede               categories, (2) the impact of brandimage customizationon
marketingmix customizationand standardizationdecisions,              brandequity,and (3) alternativemeasuresof brandimage.
to productperformanceacross a variety of global markets.                First, the findings can, to some extent, be generalizedto
The findings suggest that environmentalcharacteristicsof             consumergoods positionedon a varietyof consumerneeds.
foreign markets are (1) importantindicators of customer              This study found the moderatingeffects of culture and re-
segments and marketpotentialand (2) provide insights into            gional socioeconomics on marketshare for the two product
the emphasis managers should place on functional, social,            categories examined after accountingfor both category and
and sensory brandimage strategies.                                   brand effects. These product categories, however, may be
   Brand image success relied on several factors. First, re-         somewhatunique because they are very "American"goods
gional socioeconomics was a strong moderatorof brand                 that often carrystrong culturalmessages. These goods gen-
image marketshare. Most internationalmarketingresearch               eratestrongcountry-of-origineffects, becauseperceptionsof
focuses on cross-national differences, but the results pre-          athletic shoe and blue jean brands encompass the United
sented here imply that managers should narrowtheir geo-              States' images of modemrn,   Westernfashion and athleticism.
graphicalfocus to cities and towns in additionto examining           Researchhas shown, in fact, that brandpurchaseintentions
entire countries. Heterogeneity within countries makes it            areelevatedwhen a country'spositiveimage is closely linked
difficult for managers to develop brand image strategies             with benefitsdesiredfrom a productcategory(HanandTerp-
with strong within-countryappeal, yet, the micro-market-             stra1988; Roth andRomeo 1992). Here,Because most of the
ing, regional focus allows managers to develop strategies            brandswere marketedabroadusing the United States brand
targetedat more homogeneous target markets.As the find-              name, countryimage effects have likely occured.Yet, within
ings illustrate, emphasis on functional brand image strate-          two categoriesof countryimage-sensitivebrands,managers
gies enhances performancewhen regional socioeconomics                implementedunique brandimage strategies,which resulted
is low. When regional socioeconomics is high, and con-               in varying market shares depending on the environmental
sumershave wide exposureand easy access to Westerncon-               conditions of their foreign markets.Nonetheless, the gener-
sumerculturethroughmedia and mobility,emphasis should                alizability of these findings might be limited to brandsthat
be shifted to social and sensory brandimages to maximize             can be tied to a strong, positive countryimage. Furtherre-
marketshare.                                                          search on categories not so positively related to country
   Second, managers can use knowledge of a market'sna-                image will be useful to explore the marketingenvironment's
tional cultureto develop successful brandimage strategies.            impacton brandimage strategyeffectiveness.
   Second, further research can examine how changing                not availablefor cities and towns except in the few countries
brandimage and marketingprogramstrategiesaffects image              (such as the United States)with highly developedcensus sys-
perceptionsand brandequity.An importantfeatureof glob-              tems. I compiled a data base of 17 variablesfor each region
al marketingis the mobility of consumersand the frequency           to assess each of the 60 regions'level of socioeconomics.Al-
of theirexposure(via communicationvehicles) to many cul-            though additionalindicatorswould be desirable,most inter-
tures-especially the Western consumption culture (Belk              national data bases possess limited numbers of accurately
 1988; Quelch and Hoff 1986). Managersmust remainaware              measuredvariablesfor the desiredcases. The numberof and
that although a product may require brand image cus-                types of variablesused here appearsto capturethe same so-
tomization(for example, shifting an existing brand'srelative        cioeconomic depth and breadthas similar classification ef-
emphasis from social to more functionalneeds when enter-            forts on equal or greaternumbersof cases (e.g., Jaffe 1974).
ing a new market),culturaland/orsocioeconomic shifts may               I used factor analysis to identify common factors ac-
requirefurtherbrandimage adjustments.For example, as a              counted for by the socioeconomic variablesand eliminated
market's level of modernity increases, issues of cross-na-          variables that did not account for variance across regions.
tional brandimage consistency must be evaluatedto create            Factorscores for each region were generatedfor subsequent
and maintain a clear image for consumers exposed to the             analyses of the effect of environmentalfactors on brand
brandfrom various internationalsources. Where previously            image performance.I identifiedfactorswith the convention-
the incidence of cross-borderexposureto a brand'smulti-re-          al criteriaof eigenvalues greaterthan one and adherenceto
gional marketingprograms may have been low, increased               a scree test. All variablesremainingin the final factor solu-
modernitywill make such occurrencesmore prevalent.Fail-             tion met the criteriaof loading on a factorat .3 or higher,and
ure to achieve brand image consistency may adversely, in            having communalitiesof .4 or higher (Acito and Anderson
the long run, affect the brand's equity and the company's           1986). I eliminated variableswith low factor loadings, low
reputationby causing too much confusion aboutthe brand's            communalities,and/orhigh cross-loadingsfrom the analysis
position in the marketplace(Levitt 1983), or by negatively          and found a two factor solution. The ratio of numberof re-
affecting perceptionsof productquality and value that can           gions analyzed to numberof factors extractedwas greater
affect marketshare (Smith and Park 1992). Furtherstudies            than 20 (60 regions + 2 factors = 30), thus indicating ade-
are needed that relate environmental changes, consumer              quate sample size and a stable factor solution (Arrindelland
perceptions,and the effects of customizingimage strategies.         van der Ende 1985). The first factor accounted for 42% of
   A third area for furtherresearch is the measurementof            the data base variance,capturingthe market'smodernity-
brand image. Here, I investigated the emphasis placed on            its mobility, communicationexposure, sector employment,
three image strategies (functional, social, and sensory).           growthrate, and household size. The more autos and televi-
Managershave otherpositioningalternativesat theirdispos-            sions per capita, the lower the birthrate,populationgrowth,
al (see Crawford1985) that also warrantinvestigation.Fur-           and percent employed in agriculture,and the fewer people
thermore, this research used survey data from managers,             per dwelling, the higherthe region's modernityor socioeco-
thus, the brand image measures represents managers' as-             nomic level.
sessments of the image they intendedconsumersto perceive.
The meaningconsumersattachto the brandmay in fact dif-              SurveyMeasures
fer from what managementintended.To addressthis possi-                Brand image. How would you characterizeyour brand's
ble validity issue, consumer perceptions of brand images            image in this market?Please allocate 100 points to each of
should be measured.One procedureused in other interna-              the following types of images.Allocate the most pointsto the
tional marketingresearch (e.g., Mueller 1987; Tse, Belk,            most emphasized image (up to 100 points), and the fewest
and Zhou 1989) would have consumersevaluateadvertising              pointsto the least emphasizedimage (as little as zero points).
contentas a means for assessing perceivedbrandimage. An-
other approachthat takes into account not just advertising                                                          Mean(S.D.)
but the entire marketingprogramuses more exploratoryin-                Functional
                                                                                image(problemsolving,
terviewingtechniques.For example, one-on-one interviews,               problemprevention)                           48.52(24.24)
in which consumers elicit image descriptions of the brand              Socialimage(conveysstatus,social
and their relationshipwith it, can be used to develop brand                    accreditation)
                                                                       approval,                                    18.16(13.98)
image measures (Blackston 1992; Levy 1985). These ap-
proacheswould provide richerbrandmeanings and images,                  Sensoryimage(providesvariety,
though data collection for subsequentquantitativeanalysis              stimulation,
                                                                                 sensorygratification)              33.32(16.67)
would be more expensive and time consuming than survey-                                                     100%
based methods. These techniques, when applied cross-cul-
turallyamong diverse regions, may be useful for furthering            Marketexperience. For how many years has your brand
our understandingof the marketingenvironment'smoderat-              been availablein this market?
ing effects on image perceptionsand brandperformance.                  Mean= 14.63;S.D. = 5.56
                       APPENDIX                                       Extentof competition.To what extent are you experienc-
                                                                    ing competitiveproblemsin this market?
Regional Socioeconomics Measure                                       (7-point Likert scale, where 1 = no problems, 7 = many
  At the regional level, socioeconomic "summary"mea-                problems.)
sures, such as disposable income or GNP/capita,are simply             Mean= 3.60;S.D. = .97
  Marketing implementation problems. To what extent are               Daun,Ake (1983), "TheMaterialisticLife-Style: Some Socio-Psy-
you experiencing marketing problems in each of the follow-              chological Aspects,"in ConsumerBehavior and Environmental
ing areas?                                                              Quality,L. Uusitalo, ed. New York:St. Martin'sPress, 6-16.
   (7-point Likert scale, where 1 = no problems, 7 = many             Denis, Jean-Emileand Daniel Depelteau (1985), "MarketKnowl-
problems.)                                                              edge, Diversificationand Export Expansion,"Journal of Inter-
                                                                        national Business Studies, 16 (Fall), 77-89.
                                                   Mean (S.D.)        Dillon, William R. and Matthew Goldstein (1984), Multivariate
  a) Distribution                                   4.07 (.99)          Analysis: Methods and Applications. New York:John Wiley &
                                                    3.39 (.92)          Sons, Inc.
  b) Pricing
  c) Advertisingand promotion                       3.70 (1.11)       DiMingo, Edward(1988), "The Fine Art of Positioning,"Journal
  d) Productcharacteristics                         3.23 (.79)          of Business Strategy,9 (March/April),34-38.
                                                                      Douglas, Susan P. andYoramWind (1987), "The Myth of Global-
  Cronbach'salpha= .727.                                                ization,"ColumbiaJournal of WorldBusiness, 22 (4), 19-29.
                                                                      Gardner,BurleighB. and Sidney J. Levy (1955), "TheProductand
  Scale mean = 3.65; S.D. = .71                                         the Brand,"HarvardBusiness Review, 33 (March/April),33-39.
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