Nonlocal Brands Gain Traction When Local Options Are Scarce and Status is a Factor
Consumers are more likely to purchase non-local brands when local alternatives are unavailable and when the non-local brand is perceived to confer social status.
Lahore Journal of Business · 2014
Key Findings
- 01Product quality significantly influences purchasing decisions for non-local brands.
- 02Country of origin plays a role in consumer choice.
- 03Social status is a key determinant for choosing non-local brands.
- 04The unavailability of local substitutes strongly drives the adoption of non-local brands.
- 05Religiosity had a less pronounced effect on the decision to purchase non-local brands.
Application
Design takeaway
When designing products or market entry strategies for non-local brands, prioritize attributes that signal quality and social status, and consider targeting markets with limited local competition.
How to apply
When developing a new product for an emerging market, research the availability of local competitors and understand the social value consumers place on foreign-made goods.
Project actions
- 01When researching consumer preferences, consider both tangible product attributes and intangible social factors.
- 02Explore how cultural context, like religiosity or social status, might moderate purchasing decisions.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Investigates a range of relevant factors influencing consumer behavior.
- +Uses statistical modeling to assess relationships between variables.
Limitations
Sampling bias from convenience and snowball methods can affect the representativeness of the findings.
Reliability & validity
Confirmatory factor analysis was used to establish reliability and validity of the measures.
Think critically
How might the influence of 'country of origin' differ for products where safety is paramount versus luxury goods?
Design Principles
"Leverage perceived value and social signaling to influence consumer adoption of new or non-local products."
Understanding the drivers behind consumer preference for non-local brands is crucial for market entry strategies and competitive positioning. Designers and marketers can leverage insights into perceived quality, country of origin, and social signaling to tailor product development and marketing campaigns.
What This Means for Your Design
People buy things from other countries if they think they're better quality, look good for their social image, or if there's nothing similar made locally.
How to use in your project
- 1.Use this study to justify investigating the role of social status or product availability in your own design project's consumer research.
Add to My Project
Quick Cite
(2014). Consumer Behavior Toward Nonlocal Brands. Lahore Journal of Business. https://doi.org/10.35536/ljb.2014.v3.i1.a3 Retrieved from https://designdex.org/study/4a5f3cbb-39fb-48b3-a9e9-edde9588356f/nonlocal-brands-gain-traction-when-local-options-are-scarce-and-status-is-a-factor
Paragraph starter
This research indicates that consumer adoption of non-local brands is significantly influenced by factors such as perceived product quality, country of origin, and the desire for social status, particularly when local alternatives are scarce. This highlights the importance of considering both functional and socio-cultural aspects in product design and marketing.
Source
Questions about this research
- What does the research say about nonlocal brands gain traction when local options are scarce and status is a factor?
- When designing products or market entry strategies for non-local brands, prioritize attributes that signal quality and social status, and consider targeting markets with limited local competition. Evidence: Lahore Journal of Business (2014).
- Why does "Nonlocal Brands Gain Traction When Local Options Are Scarce and Status is a Factor" matter for design?
- Understanding the drivers behind consumer preference for non-local brands is crucial for market entry strategies and competitive positioning. Designers and marketers can leverage insights into perceived quality, country of origin, and social signaling to tailor product development and marketing campaigns.
- How can designers apply this research?
- When designing products or market entry strategies for non-local brands, prioritize attributes that signal quality and social status, and consider targeting markets with limited local competition.
- What were the main findings?
- Product quality significantly influences purchasing decisions for non-local brands.. Country of origin plays a role in consumer choice.. Social status is a key determinant for choosing non-local brands.. The unavailability of local substitutes strongly drives the adoption of non-local brands.
- What research method was used?
- Quantitative survey research with statistical modeling. with 200 participants.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2014 journal from Lahore Journal of Business.
- What should I do differently in my next project?
- When developing a new product for an emerging market, research the availability of local competitors and understand the social value consumers place on foreign-made goods.
- What are the limitations?
- The study was conducted in a single city (Lahore) and used convenience and snowball sampling, which may limit generalizability. The influence of religiosity was found to be less significant than other factors.
- Is there evidence that non-local brands affects design outcomes?
- Consumers in Pakistan are more inclined to buy non-local brands if they perceive them as high quality, if the country of origin is appealing, and especially if these brands enhance their social status or if there are no suitable local alternatives available. Understanding the drivers behind consumer preference for non- Source: Lahore Journal of Business (2014).
- Where does this nonlocal brands research apply?
- Consumer purchasing behavior in Pakistan, specifically regarding non-local brands. It sits within innovation & markets research on designdex.org.
Related research topics
non-local brands design research · evidence on non-local brands · does non-local brands improve design outcomes · nonlocal brands studies for designers · non-local brands and nonlocal brands findings · innovation & markets research evidence