EFFECTS OF CULTURE

&SOCIOECONOMICS ON
THE PERFORMANCE OF
GLOBAL BRAND IMAGE
STRATEGIES
Presenters:

Yameen Zehra
Kainat Yousaf
Komal Shaikh
Usman Saleem Shaikh
Gohar Iqbal

OVERVIEW
Developing and managing brand image is an important part of firms

marketing program.

Communicating a clearly defined brand image enables consumer to

identify the need satisfied by the brand.

Brand Image is an integral component of brand equity.

Developing needs based strategy enables a brand to create a distinct

position within its category.

A little attention has been given to relationship between brand image

strategies and performance

AREAS TO BE ADDRESSED
Two important areas to be covered are:
The effect of brand image strategies on product performance.

The management of brand image across global markets.

CONCEPTUAL FRAMEWORK
Before Marketing mix decisions, brand image strategies for international

markets must be developed.

Managers have many image and positioning alternatives but still:

International marketers must research on how cultures an socio-economics

effect the brand image strategies

CONCEPTUAL FRAMEWORK
(TYPES OF BRAND IMAGE
STRATEGIES)
Researcher have found 3 types:

Functional Image: fulfillment of basic customer need, problem solving and

prevention.

Social Image: Group member and affiliation.

Sensory Image: Novelty, variety and sensory gratification.
Example:
Crests toothpaste functional image is based on cavity, tartar and decay

prevention.
Ultra brite targets the social needs of whiter teeth and social acceptability
AIMs image is based on taste and sensory gratification.

CONCEPTUAL FRAMEWORK
(MULTIPLE NEEDS)
Researchers have shown that:
Firms tends not to emphasize on only one need
Strategies emphasizes one need does not come up with better financial

performance than those on with multiple needs.

It is necessary or advantageous to have multiple needs developed for a

particular product during brand image decision.

CULTURAL AND SOCIO-ECONOMIC

CHARACTERISTICS OF
INTERNATIONAL MARKETS
Environmental characteristics are likely to moderate the image

performance relationship

Two characteristics have been identified

National Culture
Regional Socio-economic conditions

NATIONAL CULTURE
Influences consumer behavior.
Influences many aspects of culture affect differently the needs consumers

satisfy through acquisition and use of goods and services.

National Culture includes:

Power distance
Uncertainty avoidance
Individualism

NATIONAL CULTURE (POWER

DISTANCE)
Describes the extent to which culture adopts social inequality.
High power distance culture
emphasizes more on prestige and wealth in shaping boundaries between social

and economic classes such as Rich and Poor.

People seek to maintain and increase their power as their satisfaction source.
Low power distance culture
People are much less focused on class differentiation and social aspirations.

Hypothesis 1:
The effects of social brand image on market share will be greater (lower) when

cultural power distance will be high (low) then when power distance is low (high)

NATIONAL CULTURE
(UNCERTAINTY AVOIDANCE)
Captures the cultural pattern of seeking stability, predictability and low

stress rater than change and new experiences.

High Uncertainty avoidance:

People with high UA are risk averse, change resistant, variety seeking and have

low tolerance for ambiguity

Functional brand image are positioned to prevent or solve problems and reduce
risk.
Low Uncertainty avoidance:
People with low UA diminishes the risk aversion and are more open to variety and

novelty behaviors.
Sensory brand image focuses on variety, novelty and sensory gratification part.

NATIONAL CULTURE
(UNCERTAINTY AVOIDANCE)
Hypothesis 2a and 2b
The effects of functional brand image on market share will be greater (lower)

where cultural uncertainty avoidance is high (low) than when uncertainty

avoidance in low (high).

The effects of sensory brand image on market share will be greater (lower)

where cultural uncertainty avoidance is low (high) than when uncertainty

avoidance in high (low).

NATIONAL CULTURE
(INDIVIDUALISM)
Aspect of culture that pertains to peoples tendency to value personal and

individual time, freedom and experiences.

High Individualism:
People with high individualism do not follow social norms, but rather form

relationships , make decision and initiate behavior independent of others.

Sensory image are well suited for High Individualism.
Low Individualism:
People with low individualism follow norms, relationships decisions and behaviors

of particular cultural group.

NATIONAL CULTURE
(INDIVIDUALISM)
Hypothesis 3a and 3b:
The effects of sensory brand image on market share will be greater (lower)

when cultural individualism is high (low) than when cultural individualism is

low (high).

The effects of social brand image on market share will be greater (lower)

when cultural individualism is low (high) than when cultural individualism is

high (lowfi).

REGIONAL SOCIOECONOMICS
Apart from National culture, Micro geographic units i.e. Regions are also

important.

Greater homogeneity will be found within more localized regions than in

countries.

As trading nation reduce and eliminate structural, political and economic

barriers, the search for similar consumers within trading blocks will become
more important than national differences.

Within most countries, regions exist that differ markedly from one another

with regards to income, mobility, media access, employment and other

socioeconomics characteristics.

REGIONAL SOCIOECONOMICS (MODERNITY)

Modernity
A level of institution and organization to provide life experinces for the members

of society.

Disposable Income: (an Aspect of Modernity)

Disposable income indicates the amount of resources consumer allocates for

goods and services.

When resources are limited, consumer go for fulfilling their basic functional need.
When resources increases, then consumer is willing to pay for sensory need
fulfillment.

REGIONAL SOCIOECONOMICS (MODERNITY)

Exposer to Consumption: (2nd aspect of modernity)
The extent to which consumer are exposed to Western, material oriented

consumption culture, will influence their attraction to specified products.

Demonstration Affect:
A phenomenon in which poorer consumers buy symbolic and sensory products

(with little functional image), to stand with consumption societies to which they
have been exposed.

REGIONAL SOCIOECONOMICS
Hypothesis:
The effect of functional brand image will be greater (lower) when

regional socio economics is low (high) then when regional socio

economics is high (low).
The effect of social brand image will be greater (lower) when regional

socio economics is low (high) then when regional socio economics is

high (low).
The effect of sensory brand image will be greater (lower) when regional

socio economics is low (high) then when regional socio economics is

high (low).

METHOD
Data collection:
Step 1: Socio-economic Database:
Compiled DB for 60 cities and towns within 10 countries. (Argentina, Belgium, China,

France, Germany, Japan, Italy, Netherland, Per and Yugoslavia)

Socio-economic data for the regions within each country were drawn from different
available statistical data sources. The region per country range from 4 to 9.
Step 2: Survey Development:
Measured all items at regional level and include questions about brand image strategy

used, market experience, problems encountered and market share of brand.

Step 3: Sample Development:
Blue jean and athletic shoe categories were identified of US firms, because of diverse

brand image strategies used to market them.

METHOD
Step 4: manager Identification:
Contacted marketing manager of each company and asked them to identify the countries

in which the marketed their products.

Step 5: Survey administration:
Mailed surveys customized for each countries, a cover letter and $1 as token of gratitude

to the managers.

38 managers from 11 firms returned usable questionnaires, yielding a response

rate of 33% (115 managers were mailed surveys)

METHOD
Measures:
Brand Images:
The survey asked managers to characterize their brands image in each regional market

by locating 100 points across three types of strategies. With more points been allocated
to more emphasized strategy.
Culture Socio-economics:
Cultural measures of national power distance, uncertainty avoidance and individualism

were taken from Hofstede, on the basis from 10,000 respondents from 66 countries.
Product Performance:
Market share was chosen because of its wide use as an indicator of performance among

consumer product marketers, association with a business relative size in its served
market, and consisten use of other international market studies of business performance.

METHOD
Covariates:
The survey included 3 covariates
Market experience
Extent of competition
Marketing Mix problems.

Multiple regression:
Examined the hypothesis predicting the effects of environmental factors of brand image

strategy market share.

Moderate Regression:
Examined the moderating effects of culture and socio-economics on the market share of

brand image startegies.

Hypothesis:
193 cases were taken as hypothesis testing as a sample

RESULTS
After statistical testing following results had been taken out:
H1: Social brand image enhance performance when power distance are

high and lesser extent when it is medium, where as social image hurt share
when power distance is low, supporting hypothesis H1.

H2a and H2b: The uncertainty avoidance X brand image interactions were

not satisfied, H2a and H2b is not supported.

H3a: Medium individualism has no effect on sensory image share, and low

individualism has a negative effect on sensory image share. H3a have

strong support.

RESULTS
H3b: For Social Market Images, market share was affected negatively when

individualism was high, enhanced when individualism was medium, and

greatly enhanced when individualism was low. H3b also have strong
support.

H4a: low levels of regional socio economics enhances functional brand

image performance but does not affect performance at high level. H4a
receives partial support.

H4b: For social image, market share is enhanced when regional socio

economics is high, not effected when socio economics is medium and

negatively affected when socio economics is low. Strong support for H4b

H4c: For Sensory image, market share is enhanced when regional socio

economics is high, not affected when socio economics is medium and

adversely affected when socio economics is low. Strong support to H4c.

THANK YOU!