Branding in a Global Marketplace : The Mediating Effects of Quality and Self-Identity Brand Signals

Research documents that consumers with a stronger belief in global citizenship through global brands (GCGB) view branded products as more important and prefer global over local brands. We test the mediating effects of consumer use of quality and self-identity brand signals on the relationships between GCGB and the importance attributed to branded products (Study 1; U.S. and Russia) and also purchases of global brands (Study 2; U.S., U.K, and Russia). Our research establishes that consumer involvement with branded products and purchases of global brands turn on consumers’ use of brands as signals of quality and of self-identity. In the developing country, results document mediation effects for the use of both quality and self-identity signals on importance of branded products and global brand purchases. In developed countries, we find that importance of branded products is explained by a greater use of brands as self-identity signals, whereas purchases of global brands are explained by a greater use of quality signals. Overall, consumers with stronger beliefs in GCGB are more likely to use brands as symbolic signals and express their identity through brands, and consumer use of global brands as quality signals provides a distinct competitive advantage to global brands in both developed and developing countries