Do I believe in this brand? The moderating effect of culture on brand credibility.

Abstract

Previous research has shown the positive effect of enhanced brand credibility on product choice. However, there is substantial need to extend research efforts and test the validity of the existing conceptual models in different cultural settings. Accordingly, the purpose of this investigation is to examine the degree to which the positive effects of brand credibility on consideration and brand choice vary across consumers with different cultural orientations (individualism/collectivism, uncertainty avoidance, power distance) as well as across different levels of brand familiarity (a well-known brand versus an unknown brand). Particularly, this empirical analysis uses survey data on tangible consumer products collected from respondents in Mexico and Germany. The obtained results confirm the positive effects of brand credibility on consideration and purchase for consumers who exhibit higher scores regarding theculturaldimensionsofcollectivism,uncertaintyavoidanceandpowerdistance. Furthermore,theanalysisimplies that, when a new and unfamiliar brand is going to be introduced in countries with such a cultural profile, the company should design marketing strategies that enhance brand familiarity and credibility so that it can take advantage of an additional “cultural bonus” that consumers attach to credible brands in markets characterized by this cultural profile.

Keywords

• Brands
• Culture
• Power Distance
• Collectivism
• Uncertainty Avoidance