Global vs local? Depends on your mind-set

Apr 4, 2009 by Dirk Singer

Why do some people choose local brands and others ubiquitous global varieties? According to the ever present Journal of Consumer Research, two academics decided to find out.

Yinlong Zhang (University of Texas at San Antonio) and Adwait Khare (Quinnipiac University) tested out the following question: “Why do global products fare better than local products in some markets and local products better than global products in other markets?”

The answer apparently has less to do with global consumers having a more sophisticated mind-set than with wanting to blend in with everyone else. Though I personally treat this with a pinch of salt, the academics decided that a local product mindset meant a desire for distinctiveness, while a global product mindset meant a desire for similarity:

“Global-minded consumers prefer global products (similar specifications for consumers around the world) and local-minded consumers prefer local products (different specifications for consumers from different parts of the world)”

So if I understand them correctly, people who go for global brands go for the safer choice. I suppose by their interpretation you could argue that global brands marketing campaigns sell a lifestyle that has a similar promise, whatever the market. It’s achieved blanket trust that crosses borders.

The researchers then ‘enhanced’ the global consumers desire for distinctiveness and the local consumers desire to blend in (how they did that isn’t specified), the result being: “A reversal in preference occurs when global-minded consumers’ desire for distinctiveness from others is enhanced and when local-minded consumers’ desire for solidarity with others is enhanced.”

According to the report authors: “The findings reveal how multinational or local firms can solidify consumers’ preferences for global or local products if their consumers’ global or local inclinations are compatible with their products’ positioning.”

Image – John LeGear

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