Western versus Traditional Chinese Brand Meanings: the Role of Regulatory Focus

Abstract: The article explored brand cultural meanings conveyed by Western and traditional Chinese names. Brand names suggested culture-related associations influencing consumers’ perceptions and attitudes, which were moderated by regulatory focus. The article also showed a complementary matching of brand names and product attributes were more persuasive.


Summary: The article explored brand cultural meanings conveyed by Western brand names and traditional Chinese brand names. It argued that brand names not only could suggest product features but also suggest culture-related associations which affected consumers’ perceptions and attitudes. More importantly, the article found out the underlying psychological mechanism of these brand name effects. In two experimental studies, by using fictitious brand names and ads, the article proved that regulatory focus moderated brand name effects on perceptions, brand attitudes and ad attitudes. Promotion-focused participants had a more positive perceptions and attitudes towards Western brands because they symbolized accomplishment and aspirations; while prevention-focused participants held more positive reactions towards traditional Chinese brands because they conveyed a sense of safety and responsibilities. In addition, both studies ruled out the possible influence of ethnocentrism on brand name effects or the moderating effects. Study 2 also explored the matching of brand names and products attributes with regulatory focus.

In study 1, subjects drank the same purified water when they watched a piece of ad and wrote down their evaluations. As the presence of an intrinsic cue (direct sensory experience) and an extrinsic cue (a brand name), subjects showed no differences on taste evaluations and product attitudes, but showed significant moderating effects on perceived quality, brand attitudes and ad attitudes, which gave an evidence of very strong brand name effects and regulatory focus moderating effects. Study 1 also showed that even though both of brands were not real, traditional Chinese brands were thought to have longer brand histories but less modernity and fashion, while Western brands were thought to be more modern and fashionable but with short brand histories.

In study 2, two toothpaste brand names were used. Participants wrote down their views as they read the ads but without any direct experiences with the products. In the two ads, two product feature claims were added, promoting either a promotion-focused feature (whitening) or a prevention-focused feature (cavity prevention). Results not only showed the robustness of the moderating effect of regulatory focus, but also discovered that the complementary matching of brand names and product attributes was more persuasive. That means a Western brand name with prevention-focused features or a traditional Chinese brand name with promotion-focused features produce stronger persuasion. Study 2 also found out similar brand evaluations on brand history, modernity and class as in study 1.

In conclusion, two studies supported brand name effects and the regulatory focus moderating effect the paper proposed, whenever participants had direct experiences with the product or not. And the paper also discovered the complementary matching of brand names and product attributes claims, which implied that marketers have to think about their positioning even as they gave names to their brands.


Western versus Traditional Chinese Brand Meanings: the Role of Regulatory Focus

In current marketing literature, there is a stream of research, which examines the effects of foreign branding versus local branding (Harris et al. 1994, Leclerc et al. 1994, Thakor and Pacheco 1997). Foreign branding refers to branding a product with a name that sounds or looks “foreign” in light of local languages or local branding practices, while local branding refers to branding a product with a name in compliance with local language characteristics or local branding practices (Li & Murray 1998). The notion of foreign branding and local branding is to trigger cultural stereotypes by brand names. Leclerc et al. (1994) showed that the French pronunciation of a brand name affected the perceived hedonism of products and attitudes toward the brands despite the presence of direct sensory experience. Despite the lack of understanding how cultural meanings affect product perceptions and attitudes, Chinese brands already have a large number of such practices. Like Western brands in Chinese markets, some Chinese brands have both an English name and a Chinese name translated according to its English name’s pronunciation. Gu Ping (2007) investigated 146 Chinese clothing brands and found 46.6% of them having Western brand names. In contrast to those foreign branding practices, some Chinese brands choose to look more traditional, with names and logos representing traditional Chinese culture, e.g. usually have positive or auspicious meanings and contain 3 Chinese characters. Figure 1 shows some examples of two kinds of brand names. One of them is Yangshengtang (top right), established in 1993, successfully “emphasized the Chinese cultural values of filial loyalty, care for family, and respect for the elderly, thus created a strongly emotional positive image” (Zhou and Belk 2004).

Based on the same notion of triggering cultural stereotypes through brand names, Western branding employs Western cultural meanings, while traditional Chinese branding uses traditional Chinese cultural meanings. But how those cultural meanings affect consumers’ reactions? What is the underlying psychological mechanism? This article argues that Chinese consumers make different inferences from cultural values conveyed by brand names to address their basic needs for nurturance and security. Their orientations and motivations are related to two distinct goals highlighted in regulatory focus theory.

FIGURE 1

WESTERN BRANDING TRADITIONAL CHINESE BRANDING

The major contribution of this paper is shedding light on the effects of Western versus traditional Chinese brand meanings. For over 30 years, China has not only changed its economic and social landscape, but also reshaped its cultural value systems. In China today, ancient belief systems rooted in Confucianism and Taoism are intermingling with Western ideologies (Davis 2000), especially with regard to consumption, consumerism, and brands (Eckhardt & Houston 2002). For China is potentially the largest consumer market in the world (Cui & Liu 2001), it is very important to understand how these two main streams of culture are perceived in consumption settings. There is a continuous debate whether the local culture is becoming globalized. Zhou & Belk (2004) proposed that local culture and global culture coexisted. Consistent with their research, the article assumes traditional Chinese culture is not globalized. In fact, traditional Chinese values and Western values may be regarded as different signs or surrogates for satisfying different wishes and needs. The present research also contributes to the international marketing literature. Research on the effects of foreign branding and local branding on consumers has important theoretical and managerial implications on international brand naming.

CONCEPTURAL BRACKGROUND

Brand cultural meanings

In today’s globalized world economy, for consumers in developing or transitional economies, such as China, foreign or Western products are associated not only with images of high quality but also with symbolic and status-enhancing value (Batra et al. 2000). Research has shown that Western brand meanings represent higher perceived quality (Steenkamp et al. 2003), higher prestige and status (Kapferer 1997), more modern and fashionable (Friedman 1990, Eckhardt & Houston 2002), strong ideals (Wilk 1990), and the membership of an international consumption culture (Dawar & Parker, 1994). Symbolic meanings are more important than utilitarian implications. Zhou & Hui (2003) found that even for purchases of personal products (such as pork sausage), Chinese consumers’ motivations for buying Western products are symbolic benefits, such as modernity, prestige, and associations with foreign lifestyles. Venkatesh and Swamy (1994) explained that consumers in developing economies wanted to be able to participate in the global consumer community through access to products from all over the world. However, not all consumers have the power to do so, leading to an aspirational yearning for many foreign-made brands. Thus, Western cultural meanings are regarded as strong ideals and can be used to meet Chinese consumers’ needs for aspirations.

Although Western culture has a great impact on Chinese consumers, local culture is not replaced but exists as a ubiquitous variable influencing consumers’ preference (Ger et al. 1993). Ger (1999) proposed that by using local culture, local brands could provide authentic and credible products. Zhou & Belk (2004) investigated Chinese consumers and found Western culture and traditional Chinese culture has parallel attractions. Confucianism puts emphasis on the values of responsibilities and obligations, while Taoism focuses on the values of health-preserving, self-protection, and human and nature. Those values combined convey the notion of avoiding negative effects, addressing Chinese consumers’ needs for obligations and safety. Chinese consumers have both needs for dreams and safety (Doctoroff 2008), which could be addressed by Western and traditional Chinese cultural meanings.

Self-regulatory theories

Regulatory Focus Theory (Higgins 1997) distinguishes between two major categories of desired goals: those that relate to attaining positive outcomes such as ideals, achievement, and aspirations (termed promotion goals) and those that relate to avoiding negative outcomes such as responsibilities, obligations, and duties (termed prevention goals). For Chinese consumers, Western brand names have symbolic meanings of accomplishments and aspirations, which therefore can be regarded as promotion goals. In contrast, traditional Chinese brand names conveying safety and responsibilities address prevention goals. According to Regulatory Fit Theory, people tend to have more positive evaluations when the target or the activities engaged in matches their higher-order self-regulatory goals than conflicts with these goals (Lee & Aaker, 2004). Research by Evans and Petty (2003) also showed people were more likely to elaborate message content that is compatible with the activated regulatory focus. Therefore, the following assumptions can be drawn: promotion-focused individuals have more positive perceptions and attitudes toward brands with Western brand names, while prevention-focused individuals have more positive reactions toward brands with traditional Chinese brand names (see figure 2 for the hypothetical model).

FIGURE 2 HYPOTHETICAL MODEL FOR BRAND NAME EFFECT

STUDY 1

Two experimental studies were conducted to validate the above theoretical model and assumptions. In both studies, fictitious brand names were used because for real brand names, subjects may have strong brand knowledge and attitudes, which contaminate brand name effects. In study 1, a taste test was done showing brand name effects under direct experience. Since the product was evaluated by an internal cue (taste) and an external cue (brand name), and typically an internal cue should have had a larger impact (Leclerc et al. 1994). Therefore, it could possibly show strong brand name effects. In comparison, study 2 just asked subjects to read the advertisement without any direct experience.

Before the experiment, small-scale qualitative interviews were conducted in purpose of exploring possible experimental hypotheses. Results showed Western branding and traditional Chinese branding did affect consumers’ brand perceptions. Interviewees had associations of Western brand names with Western brands, and considered them more stylish and modern but with a comparatively short brand history. In comparison, interviewees considered brands with traditional Chinese names established over decades or a hundred years, thus felt more classical and traditional.

Hypotheses

Based on the pretest results, the first set of hypotheses is as follows:

H1: Subjects made associations of traditional Chinese brand names with words related to traditional Chinese culture. Compared with Western ones, traditional Chinese brand names gave a sense of a longer brand history and made brands felt more traditional and classic.

H2: Subjects made associations of Western brand names with words related to the Western culture. Compared with traditional Chinese ones, Western brand names gave a sense of a short brand history and made the brands felt more modern and stylish.

Beyond that, study 1 proposed that Western brand names conveyed meanings associated with approaching positive results, in satisfaction with consumers’ needs for aspirations, growth and achievements. In contrast, traditional Chinese brand names sent out meanings associated with avoiding negative results, in satisfaction with consumers’ needs for safety, reliability and obligations. Thus, according to regulatory fit theory, the article proposed that,

H3: Regulatory focus moderates brand name effects on perceptions and attitudes.

More specifically,

H3a: Promotion-focused subjects have more positive perceptions and attitudes toward the brands with Western names than the ones with traditional Chinese names.

H3b: Prevention-focused subjects have more positive perceptions and attitudes toward the brands with traditional Chinese names than the ones with Western names.

Though the article explains brand name effects with regulatory focus theories, cultural meanings are also involved with the construct of ethnocentrism, which describes the tendency of people to reject people who are culturally dissimilar and at the same time to favor those who are more like themselves (Batra et al. 2000). Research in the US, Western Europe and China showed consumers who scored high on ethnocentrism were indeed more favorably biased toward buying local products and more opposed to buying products manufactured in other countries (e.g. Shimp & Sharma 1987, Netemeyer et al. 1991, Wang 2002). Wang (2002) examined ethnocentrism in China and found a same pattern as those in the US etc., that is, scores on ethnocentrism were positively related to Chinese consumers’ attitudes and purchase intention for domestic products and were negatively related to their attitudes and purchase intention for foreign products. Thus, the article should also measure Consumer Ethnocentrism Tendency (CET) to find out whether CET contributes to brand name effects. The article argues that it is impossible for CET to moderate brand name effects as regulatory focus could possibly do. Because at most CET can cause a main effect that subjects high on CET would prefer traditional Chinese brands, while subjects low on CET would prefer Western brands. Thus, the article produces a hypothesis as such,

H4: CET does not moderate brand names effects on perceptions and attitudes.

Method

Design. A 2 (regulatory focus: promotion-focused vs. prevention-focused) × 2 (brand name: Western vs. traditional Chinese) between-group experiment was run.

Participants. Sixty college students (53.3% men, average age 21) participated in for a pay of 10 yuan.

Procedure. As they came in, subjects were randomly assigned to one of the four experimental conditions. They were told to start with a survey on college students’ attitudes toward life followed with a taste test for a purified water brand. No subject had any doubt about the relations of the two tests. But in fact, the first survey was a regulatory focus priming process as Higgins et al (1994) primed subjects with either a promotion or a prevention focus. Participants in promotion-focused prime were asked to write three hopes and aspirations while participants in prevention-focused condition were asked to write three responsibilities and obligations. After that, every subject drank a cup of purified water while they read a piece of colored advertisement. And then they were asked to evaluate the product on taste and quality (1= “very bad; 7= “very good”), product liking (1= “dislike”; 7= “like”) ; evaluate advertisements on liking (1= “dislike, negative”; 7= “like, positive”) ; and evaluate brands on history (1= “very short”; 7= “very long”), modernity (1= “not modern at all”; 7= “very modern”), familiarity (1= “not at all familiar”; 7= “very familiar), price and class (1= “very cheap, low class”; 7= “very expensive, high class”). Finally, they responded to some miscellaneous questions, including 4 items measuring their degree of ethnocentrism using 7-point scales (1= “strongly disagree”; 7= “strongly agree”), referring to Batra et al. (2000). Those questions were, “Purchasing foreign-made products is un-Chinese.”; “Chinese should not buy foreign products, because this hurts Chinese business and causes unemployment.”; “A real Chinese should always buy Chinese-made products.”; “It is not right to purchase foreign-made products.”.