Effects Of Globalization On Consumer Behaviour

1.4.1 Global Brand Concepts

A global brand is considered as a variable that refers to the effects of globalization on consumers’ behaviour because many consumers believe that the global brands create high quality and brand value over the local brands (Sandıkcı et al. 2015). This perception influences their behaviour towards the global brand positively even though it may not be better than the local brand. They prefer the global brands to enhance the level of their satisfaction in life and have a high believe that what they are purchasing is of superior quality (Sandıkcı et al. 2015). Abyad (2011) argued that consumer satisfaction is influenced by the two variables of globalization: the perceived value of global brands and the importance of

At the same time, global brand has impacted negatively on the social norms of local consumers’ behaviour. Conversely, the consumers’ attitudes about consumption of global brand have been affected positively or negatively by globalization trends (Alden, Steenkamp and Batra 2006). Globalization can have a positive impact on the consumer behaviour towards a domestic brand. In contrast, it can either be useful or harmful for global brands due to the consumers’ attitude, especially the purchase intention, which is affected directly by the source of products that are sold in the domestic market (Riefler 2011). Consumers who are highly nationalist may refuse to consume the global products while other consumers may not consider the source of the products that they are buying when making purchasing

Most of them preferred global brands that raised the awareness of non-local brand’s benefits and the level of the brand’s non localness. Most of the products that are sourced from developed countries are perceived to be of higher value and better for uplifting the customers (Batra et al. 2000). One of the main factors that influence the consumption of local or global brand is the culture of the customers. According to Bhuyan (2010) even if consumers do belong to a certain cultural context, they are still very different in terms of their needs, attitudes, preferences, behaviour, tastes and motivation which presents a significant variation even after the consumers are confronted with a significant globalization wave. Bhuyan (2010) also explained how consumers and the government in eastern cultures accomplished globalization which is a good example of global orientated way of thinking that can be grown in a particular way with less consequences towards the consumers’ behaviour. Nevertheless, the consumers’ reluctance towards buying foreign products could be lowered by the product quality level perceived by the consumer, diminishing consumers’ ethnocentrism, and indirectly cultivating an opened and global way of thinking (Suh and Kwon