Consumers from emerging markets: perceptions and attitudes toward global sporting brands.
Kim, Chiyoung ; Heere, Bob
Consumers from Emerging Markets: Perceptions and Attitudes Toward
Global Sporting Brands
Consumption has increased rapidly in developing markets such as
China, India, Brazil, and Indonesia (Essoussi & Merunka, 2007;
Mahajan & Banga, 2006). These emerging markets accounted for more
than 80% of the world's population in 2009 (Atherton, 2009).
According to the World Bank, the world's population will rise to
nine billion by 2030, and 90% of the population will be living in
emerging market nations (Holt, Quelch, & Taylor, 2004). Given this
rapid growth, global brands have begun to court these 'lands of
opportunity.' According to Steenkamp, Batra, and Alden (2003), a
global brand is defined as "one that consumers can find under the
same name in multiple countries with generally similar and centrally
coordinated marketing strategies" (p. 53). Global consumer products
company Procter & Gamble (P&G) has recognized the potential of
targeting potential markets in countries such as India, China, and
Russia. P&G has introduced numerous global brands such as Pantene,
Head & Shoulders, Pampers, and Tide to emerging markets by focusing
on the large population of at-home and/or high-end consumers. To
illustrate, the US $10 billion Indian market for "fast-moving"
consumer goods is expected to double in the next decade (Mahajan &
Banga, 2006).
Similar to the Indian market, retail sales in China have
consistently increased by 15% annually over the past 20 years. It was
reported that the Chinese retail sales market reached $628 billion in
2004, making it the third-largest retail market in the world (Mahajan
& Banga, 2006). Interestingly, although the total packaged food
market in China was worth US $96 billion in 2008, ranking third in the
world, Danone Group and Nestle were the only major global brands among
the top 10 packaged foods companies in China in 2008 (Agriculture and
Agr-Food Canada, 2010). Aside from the retail market in China, other
markets such as cars, technology products and beer have been growing.
The growing popularity of products that target the younger generation,
such as athletic apparel, has been particularly pronounced (Mahajan
& Banga, 2006). The development of a consumer market for athletic
apparel within these traditional producing nations provides a good
illustration of the process of Southeast Asian transition from
"producing nations" to "consuming nations."
Nike was the first athletic apparel company to take advantage of
these new consumer markets. Nike did not recognize the importance of the
Asian market until the 1990s. Before then, Nike's involvement with
the Asian market was limited to manufacturing, and they were among the
first Western brands to outsource their entire production through
offshore manufacturing in Japan. However, when the labor costs in Japan
increased, manufacturing shifted to other Asian markets, such as Taiwan
and Korea in the mid-1980s, and later on to China and the Philippines.
During the 1990s, nations such as China emerged from the turmoil of the
Cultural Revolution and developed a large consumer market. Currently, as
with some of the other emerging markets, China has become one of the
major consuming countries of Nike products, but at the same time, a
manufacturing country with inexpensive labor available. Given the large
potential consumer population, Nike has developed extensive marketing
strategies in order to make the Swoosh logo recognizable in these
nations. Nike mostly used sport sponsorship as a promotional tool to
appeal to the younger Asian generation. For instance, Nike outfitted top
Chinese athletes and sponsored all of the teams in China's new pro
basketball league in 1995 (Mahajan & Banga, 2006).
The advance of sport products has been made possible partly by the
increasing popularity of Western-based sport services, such as sports
leagues, events and teams. Over the last few decades, most major sport
service brands have made their entrance into these emerging markets,
either through the media or live events. These brands/events range from
the NBA and the Premier League to hallmark events such as Formula One
racing and mega-events such as the Olympics (Beijing, Rio de Janeiro),
the World Cup (South Africa, Brazil), and the Commonwealth Games
(Delhi). Moreover, in many of these nations, new sports leagues have
been founded based on Western principles, such as the International
Premier League (IPL) of cricket in India and the Chinese Basketball
Association (CBA). The advent of a popular sports entertainment culture
laid the foundation for the exponential growth of and demand for sport
product.
Despite the extensive marketing efforts of Western-based sport
product brands, there is a lack of research examining how consumers in
emerging markets value these leading Western brands. Within the current
marketing literature on global brands, two contradictory viewpoints have
come to the forefront. Several researchers have noted that consumers in
developing countries regard global brands, especially Western brands, as
being of higher quality than their local products (Agbonifoh &
Elimminian, 1999; Bow & Ford, 1993; Skalir, 1994). It is also argued
that consumers in developing countries regard foreign products as status
symbols (Wang & Chen, 2004). While these studies suggest a
preference for Western brands, another line of research indicates that
this potential advantage might be offset by the ethnocentric tendencies
of consumers. From this perspective, consumers believe that their own
nation produces superior products; hence they develop a preference for
'homegrown' products (Klein, Ettenson, & Morris, 1998).
While in a Western setting these two theories reinforce each other, it
remains unclear how these two theories manifest themselves within the
Southeast Asian nations. Given the choice between an athletic shoe
produced by adidas (Western brand as status symbol), and an athletic
shoe of similar quality produced by Li Ning (Ethnocentrism), which brand
would a Chinese consumer prefer?
The historical process of globalization has further complicated
this discussion; emerging markets first served as producing nations
(inexpensive labor nations), before they became valuable as consumer
markets. Initially, the apparel and fashion industry moved their entire
production apparatuses to these nations, offering wages that were well
below the standards in developed nations. As a consequence, much
criticism was directed toward companies such as Nike, adidas, Reebok and
others, for outsourcing their product to these nations, without offering
people decent labor conditions and/or wages (Klein, 2000; Thibault,
2009). The effects of these practices on the brand perception of global
sports brands within emerging markets remain unknown. Considering that
emerging markets are driven by younger consumers, the effect of labor
issues on brand perception in emerging markets should be scrutinized as
young consumers are relatively more in tune with social issues (Mahajan
& Banga, 2006). Consequently, it is worth examining whether these
inexpensive labor practices have damaged the brand value of these
established companies in emerging markets.
Within the mature Western sports markets competition for consumers
is fierce. To remain competitive in the global market, these sports
product brands will have to be competitive in new emerging markets and
understand how the consumers in these emerging markets perceive them.
Therefore, the purpose of this study is to examine how consumers from
emerging markets perceive global sporting brands and whether they prefer
global sport brands or local sport brands. Special attention is given to
the effect of labor issues on the consumers' decisions to buy
global sporting brands' products.
Literature Review
Consumption in emerging markets and ethnocentrism
Ethnocentric consumers are reported to prefer domestic goods
because they believe that products from their own country are the best
(Klein, Ettenson, & Morris, 1998). Several studies have demonstrated
that highly ethnocentric consumers overestimate the quality of domestic
products and underestimate the quality of imports (Kaynak & Kara,
2002; Wang & Chen, 2004). Additionally, consumer ethnocentrism
highlights the moral element of consumer behavior, and implies that
consumers will be hesitant to buy imports, as doing so is perceived to
be unpatriotic and detrimental to the domestic economy and employment
(Supphellen & Gronhaug, 2003). This perception might be strong
enough to overcome any deficiency in quality and can lead consumers to
purchase domestic products of poorer quality over imported products (Hsu
& Nien, 2008).
While the degree of consumer ethnocentrism can be regarded as a
means to differentiate between consumer groups who prefer domestic to
foreign products, Wang and Chen (2004) mentioned that consumers'
willingness to buy domestic products is likely to be different for
consumers from economically-developed nations and these developing
nations. They suggested that the very concept of ethnocentrism might be
culturally sensitive. Researchers have shown that consumers in developed
countries tend to perceive their domestic products as being of better
quality than imported products (Ahmed & d'Astous, 2001;
Damanpour, 1993; Dickerson, 1982; Elliott & Cameron, 1994; Samiee,
1994), while they have found a reverse trend in developing nations,
where global products are perceived as superior to local products
(Agbonifoh & Elimminian, 1999; Batra, Ramaswamy, Alden, Steenkamp,
& Ramachander, 2000; Bow & Ford, 1993; Skalir, 1994).
Accordingly, this suggests that the impact of ethnocentrism on
willingness to buy might be limited to products that are produced in
similar nations (e.g., Indian consumers prefer Indian products over
Chinese products) and does not affect the perception of Western brands
in these emerging nations (e.g., Indian consumers prefer an American
brand over an Indian brand).
The Western brand as status symbol
Numerous researchers have discussed the psychological meaning of
the preference for foreign products in developing nations, as reviewed
by Batra, Ramaswmy, Alden, Steenkamp, and Ramachander (2000). First,
Western brands have adopted a high-end market approach in developing
markets, in which the price of their products is kept higher than those
of domestic products, and the quantity relatively low. Hence, buying
these high-end brands is thought to provide consumers in developing
markets with a sense of accomplishment with regard to their reference
group's point of view (Bearden & Etzel, 1982). Second,
consumers in developing market settings are relatively less affluent
compared to those in developed market settings. Thus, it is argued,
consumers in emerging markets would like to emulate the behavior of
consumers in developed markets, especially Western consumption practices
and lifestyles, through buying products from Western countries, under
the assumption that the Western lifestyle is seen as the desired
standard. Tomlinson (1991) referred to this process as "cultural
imperialism." As an outgrowth of cultural imperialism, displaying
foreign brands is seen as a way to display competence in developing
nations. This phenomenon was observed and described within Nigeria:
Adopting the imagined trappings of the Western consumer, the
Nigerian seeks to enter the community of the supranational elite, if
only temporarily or only in his or her imagination.. .emulation of
imagined Western consumer behavior through goods encoding new
experiences and aspirations prevails as part of their search of
legitimacy of new roles" (Arnould, 1989, p.259-260).
Finally, it is argued that consumers in developing nations have a
preference for global brands because consuming them gives them a sense
that they are a part of a global community (Venkatesh & Swamy,
1994).
Effect of brand's country of origin
Related to the above issues is the theory of country of origin
(COO) effects. The COO of a product typically refers to the country
where a brand is based. For example, within the context of sports, the
COO of Nike, which is based in Beaverton, OR, would be the US. This
theory proposes that consumers are influenced by the product's
nation of origin. The COO theory is of particular value for this study
as it serves as a valuable mediator between the previous theories. If
the COO of a specific brand is perceived as a developed nation, able to
produce high quality products, ethnocentrism in the home nation of that
brand is likely to occur, while it will negate any ethnocentric behavior
of consumers in less developed economies. Vice versa, if the COO of a
specific brand is within an emerging market, ethnocentrism is likely to
limit itself to comparisons with other emerging markets, while the
"Western" brand can manifest itself as the status symbol.
It is uncertain how our globalized production economy has
influenced the theory of COO, as within the globalized economy products
are seldom created in the home nation of the brand. Because of the
increasing access to media in these emerging nations, consumers are
becoming more aware that the COO of a particular brand is often simply a
'tag' placed upon the product, but that the product is being
produced in a nation similar to their own. Consequently, it is common to
see products being produced in diverse locations around the world and
labeled under a single brand name. Hence, the country-of-manufacturer
(COM) becomes an additional cue to consumer evaluations in regards to
the quality and value of products. The binational product, the product
bearing a brand name associated with one specific country with a
'Made-In' label of where the product is actually manufactured,
is a recently evolving dimension in the retail manufacturing industry.
Consumers, in turn, are becoming more aware of the differences between
COO and COM. Other research says that COO effects have lessened as
consumers in developing countries have become more informed about COM
(Khan & Bamber, 2009)
A study focusing on elite Pakistan consumers supported this idea
that COO effects have lessened (Khan & Bamber, 2009). These
well-informed consumers realized that the current globalized production
structure allowed for foreign production, and that the COO of a brand
seldom equated to the COO of production. Because the products of many
global companies are produced in developing countries, it negated the
effect of the Western Brand as status symbol (Okechuku & Onyemah,
1999). Hence, in certain circumstances, COO might not play a significant
role in their consumer decision process. Lastly, because of the
convoluting impact of COM on these different consumer behavior
preferences, it remains unclear how consumers in these emerging markets
perceive these 'cheap labor' practices due to the unethical
connotations placed upon them by Western consumers (Klein, 2000) ,
raising the question whether these practices damage the perception of
the Western brands.
Does 'being a good company' matter in emerging markets?
As shown from the high-profile controversies involving Nike (Klein,
2000), issues surrounding global companies' ethics and social
responsibility have become a crucial part of global brand strategies. It
is believed that "being a good company" will attract more
consumers, while unethical behavior will result in reduced consumption
and even boycotts (Carrigan & Attalla, 2001). In addition, the
Internet has linked consumers around the world. As a result, consumer
activists have had a forum in which to articulate and disseminate more
aggressive opinions toward unethical companies (Carrigan & Attalla,
2001).
Although it is difficult to find any research concerning
consumers' views on ethical issues pertaining to global companies
in emerging markets, a few studies have been conducted to investigate
consumers' demand for ethical responsibility. Joergens (2006)
conducted focus group interviews in the UK and Germany to elicit
consumers' attitudes toward ethical issues in the fashion industry.
While the study had a limited scope, and a few focus groups on the
fashion industry in two European cities can hardly provide findings that
can be generalized outside that particular setting, some interesting
notions were put forward. Some respondents supplied answers that pertain
to the current study, as this comment indicates: "I still buy Nike
shoes even though I know that Nike has some unethical conduct. When I
love the shoes and they are for a reasonable price, I still buy them ...
I don't think it makes a difference if I boycott Nike or Gap"
(Joergens, 2006, p. 366).
The statement indicates that consumers in developed countries feel
that they do not have any sound alternative although they are aware of
the unethical conducts that might occur. More critically, these authors
suggest that most consumers in developed markets pay little attention to
being ethical consumers (Carrigan & Attalla, 2001; Joergens, 2006).
In contrast, consumers in emerging markets could place a bigger emphasis
on the ethical behavior of the companies, as these issues are much
closer to home for them. Our proposition is that the consumers would
like to see more 'good companies,' as they are becoming more
aware of unethical conduct associated with the current international
labor practices. As emerging markets are in the process of transition
from producing nations to consuming nations, the link between global
companies ' ethics, social responsibility and consumer purchase
behavior should be more closely examined.
The psychological processes behind the formation of an attitude
towards global brands are complex; yet understanding them is crucial to
the success of global brands if these brands are to remain competitive
in the fastest growing markets in the world. In an industry that
receives as much media attention as the sport industry, a better
understanding of the issue of brand perception is essential to framing
effective marketing strategies. Sport marketers need better insight into
how consumers within these emerging markets perceive their brands. The
following research questions were proposed to explore these issues.
1. To what extent do ethnocentrism, COO and COM affect the
perception of emerging-market consumers towards global sport brands?
2. Do the production strategies of global sport brands have a
negative effect on the perception of the brand among the consumers in
these emerging markets?
Methods
Because the global brand perceptions of consumers within emerging
markets is an emergent topic, a qualitative approach has been pursued
here as the research method in order to gain an in-depth understanding
in this relatively unexplored area. Data for the research were collected
via face-to-face interviews, which were semi-structured in order to
capture a wider range of respondents' intentions and attitudes
regarding global sport brands. The semi-structured interview is regarded
as a preferred tool for exploring what a person thinks about a
particular topic (Honey, 1987).
The participants in this study were Chinese and Indian students who
had lived in the US for less than one year. The decision to interview
people who are currently living outside of their own domestic market is
an acknowledged limitation to this study, yet allowed us access to a
particular segment of the market that is most likely to play an
important role in the future of their own nations. Students are deemed
to present an appropriate sample as they are coming to the United States
with a utilitarian purpose (to receive an education) and in contrast to
people who migrate to the United States for work purposes, they often
desire to return to their own nation after completing their studies
(Weitekamp & Pruitt, 2009). After their return, they are most likely
to become part of the segment of the population that is currently
targeted by both Western and local brands. While their preference for an
American university might be assumed by some as a bias towards Western
society, and consequently, Western brands, research has indicated that
this is not necessarily the case (Altbach, 2004). Often, these students
are pressured by family to pursue the highest quality of education, and
their eventual choice for an American university is mainly utilitarian.
Nevertheless, once they arrive in the United States a process of
acculturation sets in. Acculturation indicates the process of cultural
and psychological change that follows intercultural contact (Sam &
Berry, 2010). Cultural changes include alterations in a group's
customs, political life, and economic makeup. Psychological changes
include alterations in individuals' attitudes toward their cultural
identities and their social behaviors in relation to the groups they
might be in contact with (Barak, 2009; Phinney, 2003). Participants with
a limited time in the US were chosen to avoid any potential bias
associated with the acculturation process that comes with (temporary)
migration to another nation. Hence, we attempted to limit the effects of
acculturation as much as possible, by setting a limitation on their time
in the US and by focusing our recruitment on graduate students who might
be more resistant to the acculturation process (Kember, 2000).
While having newly arrived international students as a participant
pool has certain limitations, given that these students present a
particular subset of their home countries, it is their distinction from
the overall population that makes them uniquely appropriate for this
study. In each of these emerging nations, only a small part of the
population has emerged above the poverty line, and it is that portion of
the population that international companies are courting. For example,
the number of Indian consumers with incomes of greater than $7,000 in
purchasing power parity is 120 million, only roughly 10% of the entire
population of India (Mahajan & Banga, 2006). Moreover, while some of
these students might have come from the highest socio-economic classes
in their nations, many are sponsored either by their schools or the
state, and they originate from the emerging middle class.
Participants were recruited through three different techniques. The
authors contacted the international office of a university in the
Southwest part of the United States and were allowed to participate in
the orientation session for new international students. Consequently,
one of the authors attended the orientation meetings for incoming
international students and was able to recruit four participants during
those meetings (one Chinese male, one Chinese female, and two Indian
males). Four subjects were existing personal contacts of one of the
authors and they agreed to be interviewed as well (two Chinese females,
one Indian female and one Indian male). Finally, based on the contacts
of the first round of interviewees a snowball strategy was used, and an
email was sent out to 18 other Indian and Chinese students, who were
friends or acquaintances of the eight students already interviewed. Of
those 18 students, 10 responded. Of those 10 students, three students
were eliminated because they had stayed in the United States for longer
than a year. Once the subjects agreed to participate in the research,
interview venues and times were scheduled at their convenience. These
sampling techniques resulted in a sample of 15 students, seven from
China and eight from India, which was a sufficient number of subjects to
satisfy the minimum cases necessary to conduct a valid data analysis.
According to Sandelowski (1995), a minimum of 10 sample cases is
necessary for data analysis within a qualitative study. The average age
of the respondents was 27.2 years old (SD=2.36), and all the respondents
were graduate students who moved to the United States, making them less
sensitive towards the acculturation effects than undergraduate students,
who are younger, and thus more likely to exhibit a fast acculturation
process (Eustace, 2007). From the perspective of the consumer market,
younger consumers in emerging markets are of central importance in
understanding emerging trends (Mahajan & Banga, 2006; MasterCard
Worldwide Index of Consumer Confidence, 2010). The young lifestyles,
higher education, and technological expertise make them powerful
catalysts in leading changes in consumption trends. An overview of the
respondents is provided in Table 1.
Semi-structured face-to-face interviews were conducted from
November to December 2010 by the first author. To avoid bias,
researchers refrained from mentioning any specific global sporting brand
name (Marshall & Rossman, 2011). The interviews consisted of 24
questions, and averaged 40-45 minutes in duration. The interview took
place on the campus of a large university in the Southwest part of the
United States. Interviewees were asked three sets of questions, with a
focus on brand perceptions and preferences regarding COO and COM. The
questions employed in the survey were developed by the authors based on
the literature on ethnocentrism and the influence of COO and COM on
brand attitudes. Interviews were conducted using standard interviewing
techniques for qualitative research. The interview started with some
basic questions to establish a relationship with respondents, and to
gain an initial idea of how the respondent thought about sport, sport
consumption and their favorite sport brands. These questions concerned
sports participation, favorite sports, and favorite sports teams (e.g.,
"What kind of sport do you play?"). Several follow-up
questions were asked depending on the participants' answers (e.g.,
"Have you ever been to a stadium to watch your favorite team
play?"). The second category focused on gaining insights into
participants' personal experiences and the degree of importance
they assigned to buying sporting products (e.g., "Do you have any
preferred sporting brand? If so, is there a certain reason that you
prefer that brand?"). This set of questions aimed to assess
participants' primary influencing factors and concerns when
deciding to choose a certain sporting product. Participants were asked a
variety of questions covering such matters as their concerns about
price, quality, image, design, value, or the influence of others
regarding sporting products (e.g., "What do you care most about
when you buy sporting products?"). The third set of questions was
designed to elicit participants' thoughts on product judgment and
the COO effect (e.g., "Do you check 'made in' label of
sporting products?"). This set of questions centered on
participants' beliefs concerning the relationship between the COO
of sporting products and their quality. The third set of questions was
designed to enable us to investigate differences between perceptions of
the sporting products of global brands and those of national brands (See
Appendix A).
The data were transcribed directly after each interview. After the
transcription, the data were analyzed using an ongoing coding process
via the method of agreement (Miles & Huberman, 1994). Both authors
identified initial themes that formed the foundations for further, more
detailed schemes, and after multiple discussions agreed upon one coding
scheme in which key phrases and paragraphs were categorized into themes
based upon accordance between these schemes. After the coding process,
once again, the results were discussed and analyzed, and following
collaboration between the authors, a full consensus was reached. Due to
the ongoing nature of these discussions, no intercoder reliability
calculation was attempted.
Results
Guided by the overall literature the researchers categorized the
data based on four general themes, each placed under a separate
subheading: Global Brand Perception described the participants'
general perception of familiar global sporting brands; Global Community
discussed how global brand products could be symbols of cultural ideals
for consumers; Country of Origin captured any COO effect as an extrinsic
cue. This third category also involved whether the country of original
production affects participants' decisions to purchase a global
sporting product. All three themes addressed our first research
question. Finally, we discussed Perceptions of the Use of International
Labor as elicited from the participants' comments, to address our
second research question.
Global brand perception
Based on our interviews findings from previous studies were
confirmed. Participants tended to perceive global sporting brand
products as superior to domestic ones. The quality of imported products
was reported as the main force driving participants to choose imported
products over local. A 25-year-old Chinese female respondent said:
"You know as long as the product is made by adidas then I
don't need to worry about the quality." A 25-year-old Chinese
male respondent expressed a similar opinion: "I prefer adidas. I
bought adidas shoes in 2005 for the first time ... You know I only wear
Anta shoes for a year, but the adidas shoes I bought, I wear it for 2-3
years [sic]." Such statements support the argument that imported
products in developing countries are typically associated with high
quality (Wang & Chen, 2004). Accordingly, consumers accept the
higher prices they need to pay for these brands. As a 30-year-old Indian
male respondent noted:
I will say that Nike is the most powerful brand. If
you go to Korea, girls like to carry Louis Vuitton,
Prada, and Gucci. It's not a matter of which brand
is the most popular. It's a matter of which brand is
the most expensive one. It's the same in India. It's
exactly the same. Nike is the mostly, I mean, Nike
costs $100 or $200 which is the most expensive one
[sic]. It's a lot of money in India but people still
like to buy because it is expensive [sic].
High school or college students in India are "willing to spend
more than $100 to just own Nike shoes," despite its high price. A
30-year-old Indian male said Indian consumers tend to "show
off" their social position and status by consuming global
brands' products, "I know there are other sport brands out
there, but I like Nike because in my country Nike is a premium brand, so
that's the reason I bought Nike." This confirms that
possession of a global brand's product signifies social position
and status (Eng & Bogaert, 2010; Wang & Chen, 2004).
The limited effect of ethnocentrism
While the above findings suggest that ethnocentrism does not play a
role when comparing the Western brands with domestic brands, it did
appear when the respondents compared one developing nation with the
other. A 31-year-old Indian female stated, "I am pretty confident
with something made in India. It could be wrong but I have a perception
that something made in China could have a lower quality (than Indian
products)." Similarly, a 26-year-old Chinese female respondent
perceived Chinese products to be of better quality than Vietnamese
products. She stated, "Well, I prefer the one made in China over
the one made in Vietnam for sure but I don't think there is a huge
difference." Both quotations illustrate that respondents from both
nations preferred products manufactured in their own nation, rather than
other developing nations. The specific role of COM becomes apparent here
as respondents discuss local brands often through terms of production
(made, produced), while the global brands are discussed without these
references. Regardless of where the global brands are produced, the
respondents suggested they were of supreme quality, confirming the idea
that ethnocentrism only manifests itself on a local level or when
comparing nations that seem "equal" (i.e. developing nations).
A global community
In order to gain a better understanding of what made Western
brands, such as Nike and adidas, so attractive to our respondents, we
analyzed the data for themes related to brand preferences. What became
quite apparent from our data was contrary to previous theories on the
topic. Our respondents indicated that it was not a Western lifestyle
image they were looking for (e.g. cultural imperialism) but that these
brands were thought off as symbolic of a global community. It was this
community that these people wanted to become a part of.
Ownership of the products of these global brands provides a sense
of community with other people who own the same products at a global
level, regardless of geography, mirroring the concept of "brand
community" as discussed by Muniz and O'Guinn (2001). Consumers
in emerging markets look to global brands as symbols of shared cultural
ideals. For those consumers in emerging markets, global sporting
brands' products have meanings that transcend national boundaries.
It makes them feel connected into the global community.
A 31-year-old Indian female respondent commented, "I feel more
comfortable to buy more globalized brands. At first I felt Nike was more
globalized as compared to adidas, so I bought Nike ... I think, at the
end of the days [sic], it will be a free market. I will buy the best
product that I can get in global market." This respondent gave more
credit to the more globalized product because it supports her belief
that a globalized brand is more reliable and of higher quality and will
better assist in her self-perception as a global citizen. The media
plays an important role in creating a consumer's desire to become
part of the global community. A 29-year-old Chinese female respondent
stated:
NBA China and lots of foreign sport leagues
influenced Chinese kids a lot. They watch international
soccer on cable channels. Chinese young
consumers become fan of international players,
and these international stars are spokesmen for
sport products, so I think they are influenced by
advertisements of foreign brands. Although my
generation has grown up watching NBA, we did
not have a Chinese super star at that time.
This desire to become part of the global community has been
discussed in the literature (Fournier & Lee, 2009). The quotation
suggests that our respondent was looking for a sense of connection with
more globalized images. International sport leagues have become an
instrument to achieve this. As the Chinese female respondent stated,
global sport brands create an imagined global identity using
international stars as spokesmen and spokeswomen. Ownership of these
global brands' products might offer not only the highest value
products but also fulfill the need to attain cultural attachment, such
as developing a sense of global citizenship.
Hence, consumers in emerging markets choose to buy either Nike or
adidas not because of its country of origin, but because they are
considered the best vehicles for the respondents to demonstrate that
they are part of a global community. This functional perspective on
global sporting brands as vehicles to achieve a second order goal
suggests that they could be substituted with any other global brands not
originated in the developing nations, as long as these brands are seen
as global brands in the consumers' minds. For example, if the
Chinese local sporting brand Li Ning can change its' brand image to
become more global, our respondents suggest that they are just as likely
to buy their brand, as they would buy Nike goods. To illustrate this, a
29-year-old Chinese woman stated:
You know Li Ning started to sponsor some foreign
sport teams since the 2004 Olympics. Now
they are sponsoring more and more foreign teams
including the Spanish national basketball team.
They try to open to the global market.... I guess
some people could even think it's even better than
global sport brands.' Consumers' position about
the brand ... how to say ... their perception toward Li
Ning has improved [sic].
Perception of use of international labor
Most of the Chinese respondents did not appear sensitive to labor
issues. A 24-year-old Chinese female respondent articulated her opinion
on the subject:
I guess Nike will try to solve the issue, I mean the
problem, because they are a big company in the
world. I guess it will not be a big problem for me
to buy Nike product [sic]. Maybe, I will hesitate a
little bit but I guess I will ultimately buy Nike
because of my high brand loyalty.
A 24-year-old Chinese male respondent expressed a similar apathetic
attitude: "I don't know. I don't care about what Nike is
doing with Chinese labor. Sometimes I watched news about what Nike did
for Chinese society, but it really does not matter as a consumer.
[sic]" A 26-year-old Chinese female respondent considered the
manufacturing in China as a catalyst for economic development, providing
and creating job opportunities:
You know lots of Nike products are manufactured
in China, which means Nike offers job
opportunities. And if I buy Nike product, I feel like
I help Chinese people ... even if you might think
that the wage is low, that's still reasonable pay in
China and even it could be lots of money to someone
... you know the population in China is really
huge and Chinese government try to give everyone
jobs. That's a huge challenge. It's hard to make
everyone have a job. So it's much better working in
Nike factory than their original job, I mean farming
or fishing. Their life can be improved. So Nike
is really helpful for Chinese economy and poor
people. Nike is helping them a lot. No way. If they
boycott Nike, lots of people lose their jobs. [sic]
Her attitude suggests that while Nike and adidas have been
portrayed in developed nations as unethical companies that profit from
local economic circumstances, consumers in the emerging markets do not
share this sentiment. One of our respondents, a 25-year-old Chinese
female discussed the labor practices as unethical, but refused to
condemn them, as these practices were seen as necessary evil:
But you should know there's no free lunch. We
have to pay something, sometimes. And everything
has two sides. I think it is a necessary process for
China to become a developed country. These
respondents consider their job offers as the best
opportunity to escape poverty. It is rather considered
to be encouraged as it supplements the
Chinese government's role in some way.
The Indian consumers in this study were even less concerned about
labor issues and shared an overall positive view towards international
labor practices. As a 28-year-old female respondent from India stated:
"Yes. I think it's reasonable thing to do. I mean if I spend
money for global sport brands, it goes to India society in the end. I
mean, ultimately, foreign sport brands create jobs, I mean offer job
positions in India, and they are creating revenues in India. [sic]"
Although much criticism has been placed on global sporting
companies concerning labor practices, the quotations show that labor
issues do not seriously affect consumers' decisions to buy global
sporting brands' products. Some interviewees stated that they were
not aware of the issue at all, and some of them showed positive views
regarding the labor practices.
Paradoxical relationship between COO and COM
Following our proposition that being plugged into the global
community is more important than the cultural associations with the
'Western world' (see section "A Global Community"),
COO appeared to play a minimal role for the respondents. As long as a
brand was perceived as a global brand, it did not matter much where the
brand was from. A 25-year-old Chinese female respondent said,
"Chinese people show a strong obsession with famous brands. In
China both Nike and adidas are the top level (brands) so they love Nike
and adidas, not because it's from Germany or America. I would buy
adidas even if adidas came from Italy. I guess the origin of the country
does not matter." A 29-year-old Indian male reported a similar
opinion, "For a long time, I did not know where adidas came from. I
thought adidas might be from America as well. And later on I figured out
it's not an American brand. Apparently countries do not affect me.
[sic]" A 30-year-old Indian male also reported, "No, I
don't care. As long as it's a global brand, I don't
care." These respondents give credit to global sport brands'
product regardless of its COO. It indicates their belief that if a
product is made by a global brand, quality is guaranteed.
The fact that many of the respondents had no idea what the COO of a
certain brand was signaled it was not seen as very important to them.
Several respondents called adidas an American brand, while other Western
brands of lesser perceived quality were often mistaken for local brands
(Tuffs, Bata, etc.). The issue of COM makes this lack of understanding
even more salient. Many of the respondents did not understand that the
production of a shoes occurred in a different nation. A 25-year-old
Chinese male respondent worded it as followed: "You know adidas is
an international brand. If I buy adidas shoes, I would like to see
'Made in US.'"
Those respondents that did understand that the COO of the brand was
often different from the COM of the product, often seemed to develop
biases towards certain COMs. A 29-year-old Chinese female put it this
way:
I guess I would not buy a certain product that
was made in some countries where I have never
heard of [sic]. Or if I buy some product and its
quality is not so good, then I will check the country
of manufacture ... It would not affect (my) decision-making
process that much.
The Indian respondents were more outspoken about this negative
effect of COM. Most of them expressed a dislike of products that were
produced in China, and often looked for products that were made in other
nations. As a 30-year old Indian male respondent claimed:
I kind of try not to buy products that are made
in China. It's hard to find something not-"Made-in-China,"
but I try to find it. I give more value if
the product is made in Vietnam.... Normally products
made in China mostly are not good. I mean at
least Chinese products in India are not good [sic].
Yet, despite the knowledge that these global brands outsourced
their production to the emerging markets did not seem to have a strong
negative impact on their overall brand image. A 25-year-old Chinese
female respondent remarked, "The quality might be the same as long
as it has the label of Nike. I guess all Nike products are made under
the same instruction. Even though products are made in all different
countries such as Indonesia, China, and Vietnam, I think quality of Nike
products is all the same [sic]." A 26-year-old Chinese female
supported this view:
I think it does not really matter. You know that
as long as the product is made under the name of
Nike I think the quality should be the same. As
long as it's Nike I only care about its design, not a
country that a label shows. Nike is good. I actually
care about style really a lot [sic].
Despite the fact that the outsource strategies of the global brands
did not seem to hurt their image, it did further negate any positive
effects of COO, and ultimately, provided further support for our
proposition that the popularity of global brands is not based in
cultural Western imperialism, but rather by their ability to connect
consumers to a perceived global community.
Discussion
The purpose of this study was to examine how consumers from
emerging markets perceive global sporting brands and how a
country's transition from a producing nation to a consuming nation
affects the attitudes of its citizens towards global brands. We explored
several new justifications for purchasing behaviors that have not been
alluded to in previous research. While previous research has found that
consumers in developing countries prefer brands from Western nations
(Agbonifoh & Elimminian, 1999; Batra et al., 2000; Wang & Chen,
2004), our respondents suggest it is more complicated than that.
Although consumers in emerging markets show a strong preference for
products made in developed countries, their preferences can be
attributed not to the process of cultural imperialism, but to the desire
to feel and behave more like global citizens. Hence, we introduced the
notion that citizens of underdeveloped nations have a strong desire to
be global citizens and this desire is manifested by their purchases of
sport products of global sporting goods brands. The current preference
for Western brands is based on the perception that these Western brands
are symbolic of becoming part of the global community. In other words,
they are currently the most effective instruments to reach a more
ambitious goal (i.e., to become part of the global community). As sport
brands from these emerging markets increase their resources and are able
to join the competition for sponsorship of notable global sports
properties (e.g., Manchester United, FC Barcelona, New York Yankees, Los
Angeles Lakers, etc.) it is possible that Western brands might lose
their advantage in this perspective.
The current study also sheds new light on the effect of COO and COM
on purchasing decisions that has not been examined in previous research.
First of all, our respondents suggest that the particular country of
origin is of no importance, as long as the nation fits within the
classification of a developed nation. If the COO meets this condition,
the brand is seen as superior, if not, the respondents start to become
more ethnocentric about their decision process and the COO is compared
to their own nation. In the latter case, COO is important to the
consumer. The current global production economy further convolutes our
view on COO, as people within these emerging nations start to discover
that the COO of the brand is different than the COM of a brand. While we
expected that consumers in these markets would be aware and highly
critical of the labor practices of sporting goods companies (Carrigan
& Attalla, 2001; Joergens, 2006), this was not the case for our
respondents. Either respondents did not necessarily care about the
ethical conduct of these global brands, or they had an opposite view on
these practices, perceiving them to be beneficial to their nations.
For this last finding, we do need to emphasize the limitations of
our sample, as the particular characteristics of our sample may have
provided us with a biased view on the consumer perceptions of global
brands within these emerging markets. Even though some of our
respondents originated from the middle class, it is not unlikely that
due to their current studies at a very notable American university, they
are starting to perceive themselves as part of the upper class of their
respective societies. Others grew up as part of the upper-class (as
indicated by the income level of the respondents in Table 1.) As such,
it is likely that they represent the cultural views of only the upper
class within the society. Both nations that were part of this study are
characterized by a stratified class society, with sharp demarcations
between each class. As such, it is not surprising they do not feel
strongly about any potential unethical conduct within the production
process as most likely neither they nor their direct relatives are
affected by these practices. This does not suggest that the subjects do
not care about the unethical conduct, yet it might be less salient to
them as they do not experience the direct consequences of the labor
practices. Hence, our sample may have been representative of the current
consumer base of the global brands in each of these nations, yet their
perceptions cannot be regarded as representative of the lower classes
within their societies. Consequently, as more and more people within
these emerging markets are becoming more affluent and will be able to
afford these global brands, we are uncertain they will share the views
of our respondents.
Finally, this study was delimited to analyzing the market for
sporting goods, and we do not presume that our findings extend to other
sport properties such as sport teams, leagues or events. On first
glance, it would seem that the Western based sport leagues, teams and
events have a much stronger hold on the globalized sport entertainment
market, yet recent initiatives such as IPL and the development of
professional basketball in China (both the CBA and NBA China) suggest
that non-Western sport leagues are making inroads in the international
sporting scene. Future research should dedicate more attention to the
emergence of non-Western sport leagues and their effect on sport product
branding and sales. Aside from exploring these theories within different
settings, future research should also implement a more quantitative
approach to test the ideas proposed in this study. While our sample
provided us with some interesting notions on how consumers from emerging
markets perceive global brands, they are by no means representative of
their entire nations. Using a survey technique that could examine a
larger sample would be beneficial to this end.
Managerial Implications
While the results of this study should be viewed with caution,
since the study relied on a limited data set (15 interviews), the
respondents presented us with some interesting notions that managers of
"Western" based companies should be aware of. Most notably,
the proposition that consumers in these emerging markets are buying
their products because they are seen as symbolic instruments to express
a sense of global citizenship is quite different from the existing
cultural imperialistic view of Western superiority (Tomlinson, 1991;
Arnould, 1989). It signals that being "Western" is not enough
to maintain a competitive advantage within these nations, and that the
current market leaders, such as Nike and adidas are more vulnerable than
previously thought. Although these traditional global brands still have
an advantage because of years of extensive global marketing, brands from
emerging markets could become competitive if they would adopt similar
global marketing strategies. For instance, if Li Ning is able to expand
on their current sponsorship of global sports properties, they might be
able to acquire a more global image, thereby challenging current global
brands such as Nike and adidas.
Our respondents suggested that the current labor practices of the
global brands did not affect their perception of the global brand. While
this view might be limited to the current upper classes in both India
and China, it is still an important finding for Western brands, as
industry observers and academic researchers perceive this to be the main
current challenge for Western brands in these nations. Nevertheless,
these labor practices do further convolute their image of a global
brand. More and more people are starting to become aware of the fact
that the global brand is often nothing more than a 'tag' on
the product. This means that the global brands are losing their
utilitarian advantages over other brands, and although there are
significant variances in product quality it is becoming increasingly
difficult for established global brands to retain the perception of
superior quality. Instead, they will have to rely more and more on the
symbolic advantages they offer the consumer. As the economies of the
emerging nations continue to become a larger part of the global economy,
sporting good companies need to gain a stronger understanding of what
drives the consumption of their products. Despite its limited scope,
this study presents some interesting notions towards consumer behavior
in these nations that require further examination.
If the search for a global community is truly a force behind
sporting good purchases, companies should direct more attention to
strategies that connect their consumers around the world, further
developing their sense of community. Especially the companies founded
within these emerging markets could take advantage of these findings and
initiate branding strategies that would allow them to develop a global
brand image that is competitive with traditional brands such as Nike and
adidas. These branding strategies could extend from a traditional focus
on sponsorship and celebrity components to more innovative ways to
market their products by making use of the unique opportunities the
Internet and social media give to grassroots marketing.
Appendix A. The interview questions
First set of questions
1. What kind of sport do you play? (How often do you play? Whom do
you play with?)
2. Do you watch sports? (Have you ever been to any match? Do you
regularly watch games on TV?)
3. What kind of sports do you like?
4. What is your favorite sports team? Why do you like the team?
5. What kind of sport apparel do you have?
6. If you play any sports, what kind of sport equipment have you
bought for playing sport?
7. Have you bought sporting shoes? What did you buy? Why did you
buy? What did you care most about when you decided to buy the shoes?
Second set of questions
8. Do you have any preferred sporting brand?
9. Is there a certain reason that you prefer that brand?
10. Could you tell me anything you know about that brand?
11. Do you have any specific image of that brand?
12. Do you have any sporting products of that brand?
13. What do you care most about when you buy sporting products?
14. Is the price of sporting product important for you?
15. Do you care about the quality of sporting products?
16. Do you care about the design of sporting products? Do you
prefer certain colors for sporting products?
Third set of questions
17. When you decide to buy sporting products, do you care about the
brand?
18. Do you check 'made in' label of sporting products?
19. Do you care about the country where the sporting product was
made?
20. Do you care about which country the global brand belongs to?
21. Could you differentiate between the local sporting brands'
products and the global ones?
22. Which brand do you prefer if you have to choose between the
local sporting brand and the global sporting brand?
23. Could you explain why you prefer the local sporting brand/the
global sporting brand?
24. What do you feel when you buy a foreign brand's sporting
product?
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Chiyoung Kim is a doctoral student in the Department of Kinesiology
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Bob Heere, PhD, is an assistant professor in the Department of
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Table 1.
Overview of the interview participants
Nationality Gender Age Household Income How long have
(US $) you stayed in the US?
China Female 26 25,001- 40,000 3 months
Female 24 55,001- 70,000 3 months
Female 25 25,001- 40,000 6 months
Female 29 Less than 25,000 3 months
Female 25 Less than 25,000 3 months
Male 25 Lest than 25,000 3 months
Male 24 40,001- 55,000 6 months
India Female 26 Less than 25,000 3 months
Female 28 70,001- 85,000 4 months
Female 31 70,001- 85,000 9 months
Male 30 Less than 25,000 8 months
Male 24 25,001- 40,000 3 months
Male 29 40,001- 55,000 4 months
Male 29 25,001- 40,000 9 months
Male 30 85,001- 100,000 3 months