Place Associations in International Branding and Advertising: a Cross-National Investigation by Jill L. Reid
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Place Associations In International Branding And Advertising: A Cross-National Investigation by Jill L. Reid A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management Carleton University Ottawa, Ontario © 2014, Jill L. Reid Abstract The impact of globalization, characterized by technological innovations in the sphere of transportation and communications, presents multiple challenges to international marketing managers. The accelerated diffusion of brands on a worldwide scale has heightened the importance of international branding, as manufacturers endeavour to differentiate their products and create a sustainable and relevant brand image across multicultural consumer audiences. This study offers a significant contribution to the field of international marketing research by bringing together two connected areas that have largely been studied in parallel. Specifically, this research examines the role of place brands in supporting the development of product brand images. The increasing volume of studies in this field centres on the use of place associations as brand image heuristics from the consumer perspective. The key compelling element of this study is that it provides, for the first time, an exploration of the use of country brand associations in marketing communications from the managerial perspective. The focal area of analysis of this study is to examine how the construct of [geographic] place manifests itself in international branding and advertising, and to identify some of the antecedent factors that direct the way place associations are utilized by marketing managers. A multimethod quantitative and qualitative approach was adopted, and, therefore, the study is divided into three phases. i In Phase 1, the actual use of place associations in brand marketing communications is investigated, using the vehicle of print advertising across four economically similar, but culturally divergent nations. In light of the exploratory nature of this first-ever marketing management study integrating the fields of place branding and product branding, an inductive approach was adopted for the in-depth interviews in Phase 2, to gain a deeper understanding of the managerial perspective and aid the design of the online survey conducted in Phase 3. Each phase of the study is of value in itself to advancing research in the fields of international branding and advertising, not least by engaging practitioners in the process. All three research phases reflect the continued interest in this topic from a marketing management perspective, thus reinforcing the call for further investigation into this untapped field. ii Acknowledgements It has been an incredible journey, and one that cannot be undertaken alone. I am truly thankful to everyone who has supported me along the way, and would like to share with you all my pride in what we have achieved. First and foremost I wish to express my deepest gratitude to my supervisor Dr. Nicolas Papadopoulos for his monumental contributions to this work, from inception to completion. It has been a long road, and this thesis would not have been possible without your mentoring guidance and support to keep me on track. Thank you for your dedication, high working standards, and continuous feedback that has inspired me to take my research to an advanced level, launching this exciting new career. I would also like to thank all my dissertation committee members, Dr. Charles Blankson, Dr. Judith Madill, Dr. José I. Rojas-Méndez, and Dr. Michel Rod for their constructive comments and valuable suggestions that have enriched my output. Thank you to everyone at the Sprott School of Business, especially Greg Schmidt, Cindy Halden and Melissa Doric, for being there for me whenever I needed their assistance over the past five years. This project was supported by a grant to the thesis supervisor, Dr. Papadopoulos, from the Social Sciences and Humanities Research Council of Canada (SSHRCC). iii To my former work colleagues and students who participated at different stages of the study, your valuable contributions are greatly appreciated and I look forward to sharing new ideas with you again. A special note of gratitude to my family and friends, both here and across the pond, who have supported me in a multitude of ways along the way. I look forward to joining you again. To Christine, Alia, and Anahit – thank you, ladies, you have been incredible! None of this would have been achieved without my husband and my rock, Nigel. Words cannot express my immense gratitude for your continuous encouragement, support and motivation that have driven me along this journey to a new chapter. I could not have accomplished this dissertation without you, thank you for always being there for me. iv Table of Contents Abstract………………….…………………………………….…………………..……..… i Acknowledgements…..….………………………………………….……………..…….… iii Table of Contents……….…………………………….……………….………….……….. v List of Tables…………….……………………………………………….………………… x List of Figures………….……………………………………………………..................... xiv List of Appendices ……………………………….………………………………..…..….. xv CHAPTER 1: Introduction….…………………………………………….……….............. 1 1.1. Outline of Key Issues in the Study………………………………….…..…………. 2 1.1.1. Consumers, "Global" Brands, and Place Associations…….….…………...... 2 1.1.2. Managerial and Consumer Perspectives………………………..……….….... 4 1.1.3. Local, Foreign, and Global Brands…………………………….….………..... 6 1.1.4. Products and “The Brand State”…………………………………..………….. 7 1.1.5. Advertising Agencies and Marketing Managers…………….………..………. 8 1.1.6. Academic and Practitioner Perspectives………………………….…….…...... 9 1.2. Contribution to International Marketing Research……………….…………...….. 11 1.2.1. International Brand Strategy……………………………….………….…...... 11 1.2.2. International Advertising…………………………………………….…..…... 12 1.2.3. Place in International Brand Marketing…………………….….………..…… 12 1.3. Structure………………………………………………………………...…….…… 13 CHAPTER 2: Literature Review…….………………………………………...……..….. 15 2.1. International Brand Strategies……………….,,,,,,,……….………….….….......... 15 2.1.1. Managing Brand Equity…………………………………….…….……........ 16 2.1.2. Globalization and the Opportunity for Global Branding…………...…..…… 20 2.1.2.1. The Modern Era of Globalization……………………………....…….. 21 2.1.2.2. Cultural Globalization ……………………………………..……...…. 23 2.1.2.3. Global Branding…………………………………………..………...... 25 v 2.1.2.4. Global Brands versus Local Brands…………………………..….…… 27 2.1.3. The Influence of Culture in International Brand Strategies …………..….… 29 2.1.4. Standardization versus Adaptation …………….……………………..….…. 34 2.1.5. International Brand Architecture and Brand Communication………………. 40 2.1.6. Strategic Decision-Making in International Marketing……………………... 43 2.2. International Advertising…………………………………………………………. 48 2.2.1. The Purpose of Advertising………………………………………………… 48 2.2.2. Variations in Information Processing Styles…………………………..…… 49 2.2.3. International Advertising Strategy…………………………...........……..… 53 2.2.4. Advertising Appeals and Executions………………………………………. 54 2.2.5. The Influence of Culture on Communication Strategies……………….….. 61 2.2.5.1. Culture and Marketing Communications …………………………….. 61 2.2.5.2. The Influence of Culture on Advertising Standardization Decisions… 68 2.2.5.3. The Reverse Effects of Advertising on Culture………………………. 71 2.2.6. Other Factors Influencing Strategic Decision-Making…………………….. 73 2.2.7. International Advertising Research………………………………………… 76 2.2.7.1. The Scope of International Advertising Research……………………. 77 2.2.7.2. International Advertising Research Methodologies………………….. 79 2.3. Place in International Brand Marketing………………………………………….. 82 2.3.1. Evolution of Academic Research ………………………………….……..... 83 2.3.2. Globalization: The Impact on Identity and Attachment to Place…………... 86 2.3.3. Place Branding and Place-based Product Branding ……………………….. 87 2.3.4. Place Associations and Products………………………………………….... 89 2.3.5. Place Associations and Brands…………………………………..……..….. 95 2.3.6. Place Associations in Advertising………………………………………… 100 2.4. Summary………………………………………………………………………… 102 CHAPTER 3: Research Objectives and Methodology……………………………..….. 106 3.1. Research Objectives………………………………………………………….. 106 3.2. Methodological Considerations and Approach to the Study………..……….….. 110 3.2.1. Study Design……………………………………………….……………… 113 vi 3.2.2. Selection of Markets………………………………………………………. 114 3.3. Research Methodology………………………………………………………….. 116 3.3.1. Phase 1: Content Analysis of Print Advertisements……………………..... 116 3.3.1.1. Content Analysis Method……………………………………………. 117 3.3.1.2. Database of Print Advertisements …………………………………... 120 3.3.1.3. Coding of the Use of Place ………………………………………….. 122 3.3.1.4. Content Analysis Process……………………………………………. 123 3.3.1.5. Summary ……………………………………………………………. 125 3.3.2. Phase 2: In-depth Interviews……………………………………………… 125 3.3.2.1. Grounded Theory: An Inductive Approach…………………………. 126 3.3.2.2. Application of a Grounded Theory Approach………………………. 128 3.3.2.3. Interview Sample …………………………………………………… 129 3.3.2.4. Interview Method ………………………………………………..….. 130 3.3.3. Phase 3: Cross-National Marketing Managers Survey……………………. 131 3.3.3.1. Questionnaire Design ……………………………………………….. 132 3.3.3.2. Research Instrument…………………………………………………. 136 3.3.3.2.1. Structure …………………………………………………... 136 3.3.3.2.2. Sampling…………………………………………………… 137 3.4. Research Hypotheses……………………………………………………………. 139 3.5. Summary…………………………………………………………………………