Psychological factors steering preference of domestic brands to international ones: a case study of Iran Online publication date: Sat, 19-Jul-2014
by Matin Qazi
J. for International Business and Entrepreneurship Development (JIBED), Vol. 7, No. 2, 2013
Abstract: Exposed to a gamut of brands in the marketplace, consumers' choices sway from one to another until an international brand enchants its buyer. This study implemented a behavioural-psychological model to scrutinise why domestic brands are considered inferior in Iran. A 143 participant survey was analysed quantitatively by structural equation modelling and Akaike information criterion for goodness of fit. The findings reveal that self-expression leads to attitude toward international brands, the latter had insignificant casual relationship with perceived quality while it significantly correlates with emotional value. This case study yields several implications, namely being franchised, licensed or entering into a joint venture would elevate a domestic brand in a competitive international market. If international enterprises do not desire that cooperation, they are recommended to basically publicise features and technical specifications since perceived quality is proved to have a substantial influence on purchase preference.
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