• Title/Summary/Keyword: Foreign-owned Perceived Local Brands

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Effect of Self-Regulatory Focus on Purchase Intentions of Foreign-owned Perceived Local Brands

  • Xi LIU
    • The Journal of Industrial Distribution & Business
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    • v.14 no.4
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    • pp.1-10
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    • 2023
  • Purpose: This paper aims to investigate how self-regulatory focus (SRF) influences the relationship between perceived brand localness (PBL) and purchase intentions (PI). This research adopted both domestic and foreign-owned brands to examine the moderating effect of self-regulatory orientations and product types respectively to exclude the interference of brand origin. Research design, data, and methodology: This study surveyed Chinese consumers and collected data using social media applications. ANOVA analysis and PROCESS modeling were adopted to complete the empirical analysis. Results: This research demonstrates that brand origin does not inhibit the positive impact of PBL on purchase intentions regardless of whether it originates from mainland China or not. Study 1 proved that the effect of PBL on PI is more convincing among consumers with promotion focus orientations. In study 2, higher purchase intentions were found for hedonic perceived local brands among promotion-focused consumers while significant preferences were found for utilitarian perceived local brands among prevention-focused consumers. Conclusions: This research complements the literature about the potential psychological factors influencing PBL and contributes to marketers in developing effective marketing strategies and appropriate positioning decisions. Overall, this study has important theoretical and managerial contributions to international marketing, particularly in the context of the current recession.