The role of brand image congruity in Chinese consumers' brand ...

The role of brand image congruity in Chinese consumers’ brand preference Jing Hu and Xin Liu Department of International Business and Marketing, California State Polytechnic University, Pomona, Pomona, California, USA

Sijun Wang Department of Marketing and Business Law, Loyola Marymount University, Los Angeles, California, USA, and

Zhilin Yang Department of Marketing, City University of Hong Kong, Kowloon Tong, Hong Kong SAR Abstract Purpose – This study aims to examine the role of functional and symbolic image congruity in Chinese consumers’ brand preferences in the auto market, and the role of brand familiarity in moderating the relationship between brand image congruity and consumers’ preferences. Design/methodology/approach – A one-on-one survey was administered to 1,440 consumers by market research specialists on two popular auto brands in China. Findings – While confirming existing findings concerning functional image congruity, the results revealed that symbolic image congruity had a negative impact on Chinese consumers’ brand preference when a brand’s perceived symbolic image is higher than consumers’ ideal expectations (i.e. upward incongruity), and brand familiarity does not moderate the role of symbolic image congruity in Chinese consumers’ brand preference. Originality/value – The paper’s findings could help managers to improve their brand management and enhance consumer satisfaction. Keywords Brand image, Brand preference, Brand management, Auto market, Symbolic and functional congruity, China Paper type Research paper

It appears that brand carriers should strive for brand image congruity to obtain more positive brand attitude and brand behavior. Given the fact that such brand management “wisdom” is based on studies in mature Western markets, its applicability to emerging markets cannot be assumed without further examination. This study’s goal is to examine the existing findings regarding the role of brand image congruity in an emerging market, i.e. China. China is quickly becoming an economic powerhouse and its trade with the rest of the world, particularly with the USA, is steadily increasing. Approximately 1.3 billion people inhabit the nation of China, making it the world’s most populous country, encompassing a staggering 20 percent of the global population. Its population magnitude, economic growth, and gradual change from a centrally planned economy to a market-driven economy are indicative of its growing importance to business communities worldwide (McNeal and Yeh, 1997). Although the behavior of Chinese consumers is increasingly relevant to the global marketplace, relatively scarce academic research has focused on this subject (Hsee et al., 2008). In particular, China is the world’s second-largest auto market, offering considerable potential for global automakers (Oster and Fairclough, 2007). Meanwhile, Chinese consumers choose among an increasing number of car models priced from less than $10,000 to over $100,000. This complex market situation calls for well-communicated brand images. Understanding how brand image influences consumers’ choices in China helps practitioners develop effective branding strategies, but also extends brand image

An executive summary for managers and executive readers can be found at the end of this article.

Introduction Brand image management has received much attention from both academia and practitioners in the Western world since the seminal work of Park et al. (1986). Previous research in this field suggests that consumers organize a cluster of attributes and create an image association related to the brand around both functional and symbolic dimensions (Park et al., 1986; Sirgy and Samli, 1985). Such brand images are compared against various reference points, be it an ideal point, product category image, social image, ideal social image, self image, or ideal self image, to influence consumers’ reactions to a given brand, including brand attitude, brand preference, and brand loyalty (Sirgy et al., 1991; Sirgy and Su, 2000). Scholars term the similarity or consistency between a brand’s perceived image and the consumers’ adopted reference point as “brand image congruity” (e.g. Broniarczyk and Alba, 1994; Bhat and Reddy, 2001; Lynch and Schuler, 1994; Park et al., 1991). Brand image congruity has been proposed and shown to play an essential role in consumers’ brand behavior in various models (cf. Czellar, 2003). The current issue and full text archive of this journal is available at www.emeraldinsight.com/1061-0421.htm

Journal of Product & Brand Management 21/1 (2012) 26– 34 q Emerald Group Publishing Limited [ISSN 1061-0421] [DOI 10.1108/10610421211203088]

The authors gratefully acknowledge a research grant from City University of Hong Kong (SRG Project No. 7002182).

26

Brand image congruity in Chinese consumers’ brand preference

Journal of Product & Brand Management

Jing Hu, Xin Liu, Sijun Wang and Zhilin Yang

Volume 21 · Number 1 · 2012 · 26 –34

theories from Western markets to emergent markets. Specifically, through integrating the social reference and national socio-cultural literature into the current brand image management literature, this study proposes and tests the role of functional and symbolic image congruity in Chinese consumers’ brand preferences in the auto market. Further, this study examines the role of brand familiarity in moderating the relationship between brand image congruity and consumers’ preferences. The organization of our paper is as follows. Initially, we provide an overview of the brand image and brand image congruity literature, focusing on several major findings, their theoretical underpinnings, and suggest differences based on the social reference and national sociocultural literature. Then, we address our research method, data analysis and results. We conclude with implications, limitations, and future research directions.

degree of comfort, engine performance, safety and so forth. Functional image congruity results when a brand’s performance on these attributes matches a consumer’ desired level. In a similar vein, symbolic image congruity occurs as a brand’s performance on symbolic attributes match consumers’ desired level. Based on the schema theory, both types of congruity will generate consumers’ affective responses. Therefore, we propose: H1a. Functional image congruity positively influences consumers’ brand preference. H1b. Symbolic image congruity positively influences consumers’ brand preference. Relationship between symbolic and functional image congruity From the accessibility-diagnosticity perspective, symbolic information is more accessible, and will be processed prior to functional information. First, accessibility was defined by Feldman and Lynch (1988) as “the degree to which a piece of information can be retrieved from memory for input into a judgment, and diagnosticity is the degree to which that piece of information is relevant for that judgment”. Symbolic image is related to intangible attributes, such as attractiveness, friendliness and etc, and is more abstract than the functional one. The abstract information requires less cognitive effort to process than concrete information (Abelson, 1976; Anderson, 1980). In other words, symbolic information is more accessible than functional information because the former is easier to be retrieved from memory. Second, a basic assumption of the accessibility-diagnosticity argument is that consumers are “cognitive misers”, and will not retrieve all information at a time (Wyer and Scrull, 1986). Among information that is diagnostic to the judgment, consumers choose to retrieve the most accessible one first (Feldman and Lynch, 1988; Wyer and Scrull, 1986). In other words, the information most accessible would be chosen first to make the judgment. Since symbolic information is more accessible than functional ones, we propose that the processing result of symbolic image congruity will prime the judgment of the functional image congruity. The proposed relationships are shown in Figure 1.

Literature review Brand image congruity Brand image is generally defined as consumers’ perceptions of a brand (Keller, 1993). This perception influences the brand’s positioning in the market. A good brand image establishes a brand’s position and improves the brand’s market performance (Shocker and Srinivasan, 1979; Wind, 1973). Brand image congruity happens when a brand image matches consumers’ expectations. Schema congruity theory asserts that congruity positively influence consumers’ brand preferences (Fiske, 1982; Fiske and Pavelchak, 1986; Pavelchak, 1989). A schema is a hypothetical memory structure that helps people organize new information relative to existing information (Solso, 1989). For example, consumers’ expectations of a product can be viewed as existing schema. Based on schema congruity theory (Fiske, 1982; Fiske and Pavelchak, 1986; Pavelchak, 1989), schema congruity determines consumers’ affective responses. When the brand image matches expectations, positive evaluation results. The schema theory was originally developed and applied in the social science area (Fiske, 1982). Later, many marketing studies borrowed Fiske’s theory to explain issues including judgments about consumer products (Aggarwal and McGill, 2007; Meyers-Levy and Tybout, 1989), brand extension evaluations (Broniarczyk and Alba, 1994), and advertisement evaluations (Houston et al., 1987). We define congruity, in this context, as the perceived difference between an actual brand image and a consumerdesired image. According to Park et al. (1986), brand image has two dimensions: functional and symbolic. A brand positioned with a functional image highlights the tangible and productrelated utilitarian attributes. Symbolic needs are internally generated for self-expression (Park et al., 1986). Symbolic brands are prestige-oriented for status appeal. Several later studies (Bhat and Reddy, 1998; Chernatony and Harris, 2000; Mowle and Merrilees, 2005) supports that the functionality/ symbolism constitutes a two-dimensional construct, and a brand can have the two dimensions at the same time. The two dimensions of brand image generate two types of brand image congruity: functional and symbolic image congruity. Functional image congruity takes place when a brand matches the utilitarian set of criteria that consumers prefer. This utilitarian set is related to a brand’s tangible attributes, reflecting its functional performance. For example, functional attributes of an automobile brand will include the

H2.

Consumers’ perceived symbolic image congruity has a positive impact on the perceived functional image congruity.

Role of brand familiarity Brand familiarity indicates consumers’ prior knowledge of and experience with a brand (Alba and Hutchinson, 1987; Campbell and Keller, 2003). Consumers familiar with a brand have a set of knowledge about the brand, including its tangible/intangible attributes and the relationships among them (Sujan and Bettman, 1989). We suggest that the brand familiarity moderates the relationship between the brand image congruity and brand preference in two ways. First, familiarity changes the weights of congruent and incongruent information in product evaluations. Fiske and Taylor (1991) point out that people with well-developed knowledge are able to notice both schema-congruity and incongruity information whereas those with little knowledge are likely to be especially sensitive to schema incongruity information. In this context, consumers familiar with a brand will judge the brand based on 27




Volume 21 · Number 1 · 2012 · 26 –34

Figure 1 Conceptual framework

both congruity and incongruity information. When incorporating both sides of the information, its impacts on brand preference are likely to be offset. As for those with low brand familiarity, the incongruity information plays a dominant role in forming the brand preference. Therefore, the schema-congruity effect is more obvious among groups with low-brand familiarity than those with high-brand familiarity. Second, familiarity helps consumers resolve the incongruent information, reducing its negative impact on brand preference (Fiske and Pavelchak, 1986). When encountering incongruity, consumers who are familiar with the brand already have the prior knowledge to process the information and resolve the incongruity. As for those who have little prior knowledge about the brand will have difficulty in doing so. According to H1, incongruent information negatively affects brand preferences. Therefore, we propose that when viewing the discrepancy, consumers who are less familiar with the brand are likely to respond more negatively to brand preference.

information search and thought process when making their decision, which makes their responses to our survey research more reliable. For this research, we limited our study to medium-priced sedan market (price ranges from CNY120,000 to 300,000, which is roughly from $US15,000 to 37,000). Specifically, we chose Bora and Mazda 6 as our product stimuli, two very popular brands in this range in China. Bora is from FAWVolkswagen Automobile Co. Ltd (a large-scale joint venture passenger car manufacturer between FAW Group Corporation and Volkswagen AG) and Mazda is from FAW Car Co. Ltd in corporation with Mazda. A new Bora is priced at somewhere between CNY120,000 and 160,000 ($US15,000-20,000) and a new Mazda6 is priced between CNY190,000 and 230,000 ($US23,750-28,750). We will examine responses on Bora first in the following analysis. Procedure and sample A one-on-one survey was administered to 1,440 selected Chinese consumers by market research specialists using a predesigned questionnaire. The Chinese automobile market has only been booming in the last few years, and automobiles are still unaffordable to most consumers. To ensure the knowledge of the target respondents, only those who had made the purchase decision and bought a medium-priced sedan within the last three years or planned to buy one within the next three months were allowed to participate in this survey. Respondents were evenly distributed in seven major cities throughout China, including large cities like Beijing, Shanghai, and Guangzhou, mid-sized cities like Chengdu and Shenyang, and smaller cities like Hangzhou and Qingdao. All of the respondents were adults above 20 years old (20-30, 24.8 percent; 31-40, 36.1 percent; 41 and above, 39.1 percent). About half were female (50.1 percent) and half male (49.9 percent). Of the 1,440 respondents, there were 317 new buyers (22 percent) who were looking for a sedan at the time of the investigation; 735 who had previously bought a sedan once (51 percent); and 388 who had previously bought sedans more than once (26.9 percent). This sampling is deemed to be representative of consumers in the Chinese automobile market.

H3a. Consumers’ brand familiarity moderates the relationship between functional image congruity and brand preference such that at a lower level of brand familiarity, functional image congruity has a stronger impact on brand preference than at a higher level of brand familiarity. H3b. Consumers’ brand familiarity moderates the relationship between symbolic image congruity and brand preference such that at a lower level of brand familiarity, symbolic image congruity has a stronger impact on brand preference than at a higher level of brand familiarity.

Method Product stimulus To test the hypotheses, a survey was administered in the Chinese automobile market. Automobiles were chosen as the product stimulus because automobiles are high in value, especially as compared to average income in China, and purchasing an automobile is usually a comprehensive purchase decision. We have reason to believe that consumers would initiate a relatively more intensive 28




Volume 21 · Number 1 · 2012 · 26 –34

Measures The questionnaire items were developed based on an extensive review of consumer behavior decision literature and focus group studies. The survey instrument consisted of two parts. The first part was designed to collect demographic information. The second part was designed to elicit consumer opinions. Scales used to measure the key constructs in this study are reported in Table I. To avoid responses from those who did not possess much knowledge about the brand addressed, a validity check item was included in the questionnaire at the beginning of the second part. Subjects were asked to rate their familiarity with the brands addressed on a seven-point scale (1 ¼ “extremely unfamiliar,” 7 ¼ “Extremely familiar”). Subjects were only allowed to continue on the survey if their answer on the familiarity scale equaled or exceeded 4.

Functional image congruity This construct captures the match between perceived level and desired level of performance in functional attributes of automobiles. To measure the performance in functional attributes, a fourteen-item Likert scale was created for automobiles as this is very object specific and there is no existing comprehensive scale to measure it. Subjects were asked to indicate how properly they thought the listed items could be used to describe the brand (see Table I for a detailed list of items). Factor analysis produced a single-factor solution with all items loaded high on the factor (.0.70) and the scale was reliable (Cronbach’s a ¼ :942; Nunnally and Bernstein, 1994). The subjects were also asked to indicate their desired level of performance on these 14 items. According to Sirgy et al. (1991), absolute difference congruity has been demonstrated to be better than other distance models in predicting product preference and purchase intention. Therefore, we used the absolute value of the difference between perceived level and desired level of performance to measure the functional image congruity. We calculated the functional image congruity score for each individual respondent based on the following formula: X FC ¼ 2 jPFAi 2 DFAi j;

Table I Research constructs Factors and items Familiarity Perceived level of performance in functional values 1. Appealing modern design 2. Intelligent engineering 3. Reliable and durable 4. Safe 5. Superior service and support 6. Top-tier quality 7. Advanced technology 8. Roominess 9. Practical 10. Comfortable 11. Fully loaded with fringe features such as sun-roof, seat-heating) 12. Good resale value 13. Excellent engine 14. Good handling Perceived level of performance in symbolic values 1. Refined 2. Attractive 3. Thoughtful 4. Approachable 5. Self-assured 6. Trustworthy 7. Confident 8. Prestige 9. Sporty 10. Modern 11. Proud 12. Optimistic 13. Elegant 14. Human-oriented Brand preference 1. Overall evaluations 2. Suitable for me 3. Attractive to general consumers

No. of items

Loadings on factor

a

1 14

0.942 0.732 0.762 0.785 0.760 0.720 0.811 0.798 0.757 0.726 0.765

where FC is the functional image congruity, PFAi perceived level of performance in the ith functional attributes, and DFAi is the desired level of performance in the ith functional attributes. Higher values on the congruity construct represent greater congruity, which means greater proximity between the subjects’ perceived value (higher congruity) and desired value in functional attributes with zero as the maximum. Symbolic image congruity Likewise, a 14-item Likert scale was developed to measure the performance of automobiles in symbolic attributes. Factor analysis produced a single-factor solution with all items loaded high on the factor (.0.70) and the scale was reliable (Cronbach’s a ¼ 0:952) as well. The same subjects also responded to indicate their desired level of performance on these items. The symbolic image congruity score was calculated for each individual respondent in the same fashion as for functional image congruity. Higher values on the symbolic image congruity construct represent greater symbolic image congruity. X SC ¼ 2 PSAj 2 DSAj ;

0.734 0.703 0.753 0.776 14

0.952 0.752 0.784 0.820 0.810 0.794 0.775 0.780 0.817 0.740 0.790 0.779 0.784 0.786 0.787

3

where SC is the symbolic image congruity, PSAj is the perceived level of performance in the jth symbolic attributes, and DSAj is the desired level of performance in the jth symbolic attributes. Brand preference This construct was measured as a factor score derived from the following items scored on a seven-point scale: . “What do you think of this car overall? (1 ¼ “very unfavorable”, 7 ¼ “very favorable”)”; . “How do you think this car is suitable to you? (1 ¼ “not at all suitable”, 7 ¼ “very suitable”)”; and . “How attractive do you think this car is to general consumers? (1 ¼ “attractive to very few consumers”, 7 ¼ “attractive to most consumers”)”.

0.874 0.897 0.895 0.890

29




Volume 21 · Number 1 · 2012 · 26 –34

All three items loaded highly (.0.80) on one factor and the construct showed sufficient reliability (Cronbach’s a ¼ 0:874).

congruity remains a positive predictor of brand preference (standardized b ¼ 0:189 and 0.173, respectively, p , 0:01). However, as we thought, only the upward symbolic incongruity has a negative influence on brand preference (standardized b ¼ 20:195, p , 0:01). In the condition of downward symbolic incongruity, symbolic image congruity is not a significant predictor (standardized b ¼ 20:081, p . 0:1). The second hypothesis proposes that functional image congruity is influenced by symbolic image congruity. As predicted, linear regression of functional image congruity on symbolic image congruity shows that the model fits the data (R2 ¼ 0:320; F ¼ 386:036, p , 0:001) and symbolic image congruity is a significant predictor of functional image congruity (standardized b ¼ 0:566, p , 0:001). Therefore, H2 is supported. The third hypothesis predicts that consumers’ familiarity with the brand moderates the relationship between functional image congruity and brand preference (H3a), and that between symbolic image congruity and brand preference (H3b). We used stepwise linear regression to test the relationships. Two meancentered interaction terms (Fam*FC and Fam*SC) were created to test the moderation effect. Table II shows the results of the model without moderator (Model 1: R2 ¼ 0:032, F ¼ 13:497, p , 0:001) and the model with moderator (Model 2: R2 ¼ 0:214, F ¼ 44:336, p , 0:001). Both models fit the data, but the model with familiarity as a moderator is better fitting (higher F value) and has greater explanatory power (higher R2), which suggests that the addition of the interaction term increase explained variance in brand preference. In Model 2, the interaction effect between functional congruity and familiarity is significant (standardized b ¼ 0:133, p ¼ 0:024) as shown in Table II. However, the interaction effect between symbolic congruity and familiarity is not significant (standardized b ¼ 20:036, p ¼ 0:566). Hence, the proposed moderating effect of familiarity on relationship between brand preference and functional image congruity (H3a) is supported, and that between brand preference and symbolic image congruity (H3b) is not supported.

Analysis and results Regression analysis The first hypothesis posits that brand preference is positively influenced by functional image congruity and symbolic image congruity. Because all the constructs are continuous variables, regression analysis is appropriate. Regression of brand preference on functional image congruity and symbolic image congruity produced a significant model (we call it Model 1; R2 ¼ 0:032, F ¼ 13:497, p , 0:001) as shown in Table II. Results indicate that coefficients of both predictors, functional image congruity (standardized b ¼ 0:212, p , 0:001) and symbolic image congruity (standardized b ¼ 20:158, p , 0:001), are significant. As H1a predicted, functional image congruity has a positive influence on brand preference. However, contrary to what H1b predicted, symbolic image congruity has a negative influence rather than a positive influence on brand preference. Therefore, H1a is supported, and H1b is not supported. To understand more about the relationship between symbolic image congruity and brand preference, we further examined symbolic image congruity data. Data show that the average distance between subjects’ ideal levels of symbolic attributes and perceived levels was 2 0.8729. In fact, 430 out 819 subjects (52.5 percent) believed that their perceived levels of symbolic attributes of the product were higher than their desired ones, as compared to 366 (44.7 percent) who thought the opposite. Incongruity resulting from well-perceived values seems to lead to positive brand preference. To test the above idea, we conducted a simple regression of brand preference on functional and symbolic image congruity for those who have upward symbolic incongruity (perceived level of performance higher than desired level of performance) and those who have downward symbolic incongruity (perceived level of performance lower than desired level of performance) respectively. Results from both regressions suggest significant models as shown in Table III (upward: R2 ¼ 0:031, F ¼ 6:876, p , 0:01; downward: R2 ¼ 0:020, F ¼ 3:726, p , 0:05). In both regressions, functional image

Replication with a second brand To confirm the identified relationship, the same group of subjects was also investigated relative to their responses concerning Mazda, using the same scales and data collection

Table II Regression results: impacts of functional image congruity (FC), symbolic image congruity (SC), and familiarity (FAM) on brand preference Model

Standardized b

Brand 1 t-value

F

R2

13.497 *

0.032

Standardized b

Brand 2 t-value

F

R2

9.255 *

0.022

53.889 *

0.245

Without moderator FC SC

0.212 20.158

5.078 * 23.784 *

0.082 20.096 0.424 0.133 20.036

1.439 21.589 13.561 * 2.266 * * 20.574

0.176 2 0.075

4.251 * 2 1.826 * * *

0.056 0.001 0.473 0.098 2 0.043

1.156 0.023 15.549 * 2.049 * * 2 0.849

With moderator 44.336 * FC SC FAM FAM*FC FAM*SC

0.214

Notes: Dependent variable: brand preference; *p , 0:01; * *p , 0:05; * * *p , 0:10

30




Volume 21 · Number 1 · 2012 · 26 –34

Table III Regression results: relationship between functional image congruity, symbolic image congruity, and brand preference in upward symbolic incongruity and downward symbolic incongruity Model

Standardized b

Upward symbolic incongruity t-value F R2 6.876 *

FC SC

0.189 2 0.195

Downward symbolic incongruity Standardized b t-value F 3.726 * *

0.031

3.238 * 2 3.344 *

0.173 20.081

R2 0.020

2.702 * 21.267

Notes: *p , 0:01; * *p , 0:05

with their symbolic-self image congruity, the same logic should hold. Upon close examination of their study, we actually found a similar surprising finding in their replication of study one; they also found a negative relationship between symbolic-self image congruity when replicating their study in a discount department store with a clothing department store (Sirgy et al., 1991, p. 367). We speculate that the clothing department store in their study is more related to conspicuous consumption than a discount department store; thus, upward reference points could more likely serve as an ideal point in forming consumers’ perceived symbolic image congruity. In our study context, automobile products are still perceived as conspicuous consumption among Chinese consumers. Therefore, consumers display an upward tendency to prefer products with brand image higher than expected. Chinese are acutely sensitive to having and maintaining face in all aspects of social and business life (Yau et al., 1999; Ho, 1975; Hsu, 1963). Based on this finding, it appears that a brand carrier should avoid promoting its brand’s symbolic fit to Chinese consumers’ ideal expectations. Instead, the symbolic brand image should be promoted to be higher than consumers’ current ideal expectations in order to appeal to Chinese consumers. In other words, brand barriers should take one step further from what their Chinese consumers inform them about what is ideal. The unique culture context in China and the developing stage of its automobile market leads to disconfirmation of existing western congruity theory and requires marketers to localize their strategies in some aspects. Further, we found that brand familiarity does not moderate the role of symbolic image congruity in Chinese consumers’ brand preference. This, again, is in contrast to the current consumer knowledge literature (Fiske and Taylor, 1991). We believe that failure to find support for the moderating role of brand familiarity could be explained by the abstract nature of symbolic image. Because symbolic image relates to valueexpressive imagery association of a brand (Sirgy et al., 1991), its impact on brand preference may not require as many itemized analyses as may functional brand image. Rather, the symbolic image congruity could exert its influence on brand preference in a higher abstract process without referring to a lower constructural level (Kardes et al., 2006). We found that high familiarity did not reduce the effect of symbolic image congruity on consumers’ brand preference, unlike that of functional image congruity. On the other hand, as high familiarity leads to better brand image (Sujan and Bettman, 1989), we could use marketing activities to enhance brand familiarity and develop superior symbolic image in order to increase brand preference. From a managerial perspective, we believe this finding could help managers to improve their brand management and enhance consumer satisfaction.

procedure. A regression involving brand preference as the dependent variable, with symbolic and functional image congruity as two independent variables, suggests that these two independent variables satisfactorily explain variance in brand preference (Model 1: R2 ¼ 0:022, F ¼ 9:255, p , 0:001). Table II also shows results of this analysis. Like the results of analysis on Bora, here functional image congruity positively affects brand preference (standardized b ¼ 0:176, p , 0:001) and symbolic image congruity negatively affects brand preference (standardized b ¼ 20:075, p ¼ 0:068); H1a is supported, and H1b is not supported. As hypothesized in H2, the results of the regression analysis suggest that symbolic image congruity is a significant predictor of functional image congruity (R2 ¼ 0:311, F ¼ 376:805, p , 0:001); H2 is supported. After adding two mean-centered interaction terms Fam*FC2 and Fam*SC2, the model is significantly improved (Model 2: R2 ¼ :241, F ¼ 53:889, p , 0:001). Fam*FC2 is significant (standardized b ¼ 0:098, p ¼ 0:041) and Fam*SC2 is not significant (standardized b ¼ 20:043, p ¼ 0:396); H3a is supported, and H3b is not supported.

Discussion Great challenges and opportunities that today’s brand carriers are facing have moved well beyond the decision-making stage; companies have to make hard choices as they enter the global market: should they maintain the same image worldwide, or adapt it to different geographic areas? This challenge is immediate, especially in the automobile market, as major manufacturers actively seek opportunities outside the USA (Kiley, 2008). Our study is another “wake-up call” for brand carriers who seem to prefer adhering to conventional wisdom, obtained from long mature Western markets, and who may wish to misapply it to newly emerging markets or different cultures. Based on a large-scale field study with Chinese consumers, we uncovered at least two surprising findings while confirming three existing ones. Specifically, we found that symbolic image congruity had a negative impact on Chinese consumers’ brand preference when a brand’s perceived symbolic image is higher than consumers’ ideal expectations (i.e. upward incongruity). That is, the farther the upward distance is from consumers’ ideal expectations (i.e. incongruent), the stronger the brand preference is. This surprising finding, obviously, contradicts Sirgy et al. (1991)’s finding in the US market, within the context of our study. Sirgy et al. (1991) reported in their three studies that a symbolic image match with consumers’ ideal social image has a positive impact on store loyalty. Although we acknowledge that symbolic image congruity was measured differently in our study as compared 31




Volume 21 · Number 1 · 2012 · 26 –34

Finally, consistent with the schema-congruity theory (Fiske and Taylor, 1991), we have found that functional image congruity increases brand preference and such a relationship is even stronger when consumers have lower brand familiarity. These findings suggest that when we manage functional attributes, previous Western wisdom is transferable. Replication of these three findings in an emerging market further demonstrated the robustness of the functional image congruity-brand behavior (brand preference, brand loyalty) link. Given the fact that most congruity-loyalty studies are in retail store contexts, our extension to auto products, and confirmation of such findings, should be treated as substantial evidence for future theoretical development in this congruitybrand behavior context.

Alba, J.W. and Hutchinson, J.W. (1987), “Dimensions of consumer expertise”, Journal of Consumer Research, Vol. 13 No. 4, pp. 411-54. Anderson, J.R. (1980), Cognitive Psychology and Its Implications, Freeman, San Francisco, CA. Bhat, S. and Reddy, S. (2001), “The impact of parent brand attribute associations and affect on brand extension evaluation”, Journal of Business Research, Vol. 53 No. 3, pp. 111-22. Bhat, S. and Reddy, S.K. (1998), “Symbolic and functional positioning of brands”, Journal of Consumer Marketing, Vol. 15 No. 1, pp. 32-43. Broniarczyk, S.M. and Alba, J.W. (1994), “The importance of the brand in brand extension”, Journal of Marketing Research, Vol. 31 No. 2, pp. 214-28. Campbell, M.C. and Keller, K.L. (2003), “Brand familiarity and advertising repetition effects”, Journal of Consumer Research, Vol. 30 No. 2, p. 304. Chernatony, L. and Harris, F. (2000), “Added value: its nature, roles, and sustainability”, European Journal of Marketing, Vol. 34 Nos 1/2, pp. 39-56. Czellar, S. (2003), “Consumer attitude toward brand extensions: an integrative model and research propositions”, International Journal of Research in Marketing, Vol. 20 No. 1, pp. 97-115. Feldman, J.M. and Lynch, J.G. Jr (1988), “Self-generated validity and other effects of measurement on belief, attitude, intention, and behavior”, Journal of Applied Psychology, Vol. 73, August, pp. 421-35. Fiske, S.T. (1982), “Schema-triggered affect: applications to social perception in affect and cognition”, in Clark, M.S. and Fiske, S.T. (Eds), The Seventeenth Annual Carnegie Symposium on Cognition, Lawrence Erlbaum Associates, Hillsdale, NJ. Fiske, S.T. and Pavelchak, M.A. (1986), “Category-based versus piecemeal-based affective responses: developments in schema-triggered affect”, in Sorrentino, R.M. and Higgins, E.T. (Eds), Handbook of Motivation and Cognition: Foundations of Social Behavior, Guilford Press, New York, NY. Fiske, S.T. and Taylor, S.E. (1991), Social Cognition, McGraw-Hill Education, New York, NY. Ho, D.Y.F. (1975), “On the concept of face”, American Journal of Sociology, Vol. 81 No. 4, pp. 867-84. Houston, M.J., Childers, T. and Heckler, S.E. (1987), “Picture-word consistency and elaborative processing of advertisements”, Journal of Marketing Research, Vol. 24 No. 4, pp. 358-69. Hsee, C.K., Dube, J. and Zhang, Y. (2008), “The prominence effect in shanghai apartment prices”, Journal of Marketing Research, Vol. 45 No. 2, pp. 133-44. Hsu, F.L.K. (1963), Clan, Caste, and Club, D. Van Nostrand Co., Princeton, NJ. Kardes, F.R., Cronley, M.L. and Kim, J. (2006), “Construallevel effects on preference stability, preference-behavior correspondence, and the suppression of competing brands”, Journal of Consumer Psychology, Vol. 16 No. 2, pp. 135-44. Keller, K.L. (1993), “Conceptualizing, measuring, and managing customer-based brand equity”, Journal of Marketing, Vol. 57, January, pp. 1-22. Kiley, D. (2008), “Ghosn: the US auto market is not going to be great again”, Business Week, April 29, available at: www.b usinessweek.com/lifestyle/content/apr2008/bw 20080428_081929.htm (accessed July 28, 2008).

Limitations There are several limitations inherent in this study and its findings. First, this study does only look at China as an emerging market. Emerging markets in other parts of the world may have a different cultural heritage, economic development paths or levels of consumer sophistication. Differences in these attributes may lead to different brand perception and associations between brand image congruity and brand preference. Future research could use the findings of this study to determine if they hold for emerging markets in other countries. Second, in this study, we compared consumers’ ideal points with their perceived points to calculate brand congruity. The main reason we did this was to accommodate the unique cultural dimension (suppression of self) of Chinese culture. In other cultures, other reference points may work better such as industry-wide standards, self-identity, etc. Future research can also attempt to use other reference points to operationalize the congruity construct and to further investigate the consistency of the findings. Third, expanding the study to other product categories can also help generalize the results. We limit our investigation to medium-priced automobiles, which are more of a symbolic product than a functional one. The displayed negative relationship between symbolic image congruity and brand preference may be due to the choice of products. Future research may also test this finding on everyday products, more luxurious products, or even automobiles at different price ranges to see if the theory still holds. Despite these limitations, we made significant contributions in extending the congruity theory tested in the retailing contexts to consumer decision-making in an emerging market. It appears that not all Western brand image management wisdom is transferable to emerging markets. It is our hope that our study will spawn further research on this important topic.

References Abelson, R.P. (1976), “A script theory of understanding, attitude, and behavior”, in Carroll, J. and Payne, T. (Eds), Cognition and Social Behavior, Lawrence Erlbaum Associates, Hillsdale, NJ. Aggarwal, P. and McGill, A.L. (2007), “Is that car smiling at me? Schema congruity as a basis for evaluating anthropomorphized products”, Journal of Consumer Research, Vol. 34 No. 4, pp. 468-79. 32




Volume 21 · Number 1 · 2012 · 26 –34

About the authors

Lynch, J. and Schuler, D. (1994), “The match-up effects of spokesperson and product congruency: a schema theory interpretation”, Psychology & Marketing, Vol. 11 No. 5, pp. 417-45. McNeal, J.U. and Yeh, C. (1997), “Development of consumer behavior patterns among Chinese children”, Journal of Consumer Marketing, Vol. 14 No. 1, pp. 3-59. Meyers-Levy, J. and Tybout, A.M. (1989), “Schema congruity as a basis for product evaluation”, Journal of Consumer Research, Vol. 16 No. 1, pp. 39-55. Mowle, J. and Merrilees, B. (2005), “A functional and symbolic perspective to branding Australian SME wineries”, Journal of Product & Brand Management, Vol. 14 No. 4, pp. 220-7. Nunnally, J.C. and Bernstein, I.H. (1994), Psychometric Theory, McGraw-Hill, New York, NY. Oster, S. and Fairclough, G. (2007), “China’s cloudy air rules, economic planners, environmental panel tussle over emissions”, The Wall Street Journal Asia, June 21, p. 9. Park, C.W., Jaworski, B.J. and MacInnis, D.J. (1986), “Strategic brand concept-image management”, Journal of Marketing, Vol. 50, October, pp. 135-45. Park, C.W., Milberg, S.J. and Lawson, R. (1991), “Evaluation of brand extensions: the role of product level similarity and brand concept consistency”, Journal of Consumer Research, Vol. 18 No. 2, pp. 185-93. Pavelchak, M.A. (1989), “Piecemeal and category-based evaluation: an ideographic analysis”, Journal of Personality and Social Psychology, Vol. 56 No. 3, pp. 354-63. Shocker, A.D. and Srinivasan, V. (1979), “Multiattribute approaches for product concept evaluation and generation: a critical review”, Journal of Marketing Research, Vol. 16 No. 2, pp. 159-80. Sirgy, M.J. and Samli, A.C. (1985), “A path analytic model of store loyalty involving self-concept, store image, geographic loyalty, and socioeconomic status”, Journal of the Academy of Marketing Science, Vol. 13 No. 3, pp. 265-91. Sirgy, M.J. and Su, C. (2000), “Destination image, selfcongruity, and travel behavior: toward an integrative model”, Journal of Travel Research, Vol. 38 No. 4, pp. 340-52. Sirgy, M.J., Johar, J.S., Samli, A.C. and Claiborne, C.B. (1991), “Self-congruity versus functional congruity: predictors of consumer behavior”, Journal of the Academy of Marketing Science, Vol. 19, November, pp. 363-75. Solso, L.R. (1989), “Prototypes, schemata and the form of human knowledge: the cognition of abstraction”, in Izawa, C. (Ed.), Current Issues in Cognitive Processes: The Tulane Floweree Symposium on Cognition, Lawrence Erlbaum Associates, Hillsdale, NJ, pp. 345-68. Sujan, M. and Bettman, J.R. (1989), “The effects of brand positioning strategies on consumers’ brand and category perceptions: some insights from schema research”, Journal of Marketing Research, Vol. 26 No. 4, pp. 457-67. Wind, Y. (1973), “A new procedure for concept evaluation”, Journal of Marketing, Vol. 37 No. 10, pp. 2-11. Wyer, R.S. and Scrull, T.K. (1986), “Human cognition in its social context”, Psychological Review, Vol. 93, pp. 322-59. Yau, O.H.M., Chan, T.S. and Lau, K.F. (1999), “Influence of Chinese cultural values on consumer behavior: a proposed model of gift-purchasing behavior in Hong Kong”, Journal of International Consumer Marketing, Vol. 11 No. 1, pp. 97-116.

Jing Hu is Assistant Professor of Marketing at California State Polytechnic University, Pomona. She received her PhD in Marketing from New Mexico State University. She has research interests in consumer decision making and crosscultural consumer behavior and has published in Journal of Business Ethics, Psychology & Marketing, Journal of Education for Business, and International Journal of Internet Marketing and Advertising, among others. Jing Hu is the corresponding author and can be contacted at: [email protected] Xin Liu is Assistant Professor of Marketing at California State Polytechnic University, Pomona. She received her PhD in Marketing from Kent State University. Her research focuses on brand leverage strategies and financial performance of branding activities. Sijun Wang received her PhD in Marketing from University of Alabama. She is currently Associate Professor in the Department of Marketing and Business Law, Loyola Marymount University. She studies services marketing and relationship marketing. Her works have appeared in Organization Science, European Journal of Marketing, Journal of Business Research, Journal of Services Marketing, Journal of Interactive Marketing, and others. Zhilin Yang is Associate Professor of Marketing at City University of Hong Kong. He received his PhD in Marketing from New Mexico State University. He has published in Journal of International Business Studies, Journal of Business Research, Information & Management, International Marketing Review, Journal of Advertising Research, Marketing Research, and Psychology & Marketing, among others. His main research interests include customer product review in electronic commerce, customer satisfaction, value, and loyalty, and network analysis and governance strategies in marketing channels.

Executive summary and implications for managers and executives This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present. Many studies have been conducted in the Western world into the significance of brand image. A general consensus is that image is created through various attributes and associations that consumers hold about a brand. These images are functional and symbolic, and consumer response to them is triggered by how they compare to different real and ideal product, self and social reference points. Response impacts on consumer attitude, purchase intention and loyalty relevant to that particular brand and how it performs in the market. Brand image congruity is the term afforded to the association between a brand’s image and a consumer’s chosen references. When a brand’s image is congruent with what the consumer desires and expects, a positive evaluation occurs. The functional image of a brand concerns “tangible and product-related” attributes that determine how it performs. Symbolic needs are internal and reflect an individual’s self-expression indicated by such as 33




Volume 21 · Number 1 · 2012 · 26 –34

attractiveness and prestige. For both dimensions, image congruity occurs when consumer expectations are satisfied by brand performance. According to one perspective, consumers adopt a hierarchical approach to information processing. They will process symbolic information before functional information because the former is easier to retrieve from memory. This view further purports that consumers are somewhat selective in what they choose to retrieve and will also primarily consider information which bests aids judgment. Having previous experience with a brand moderates the relationship between brand image congruity and brand preference. Being familiar gives people knowledge about a brand and how its tangible and intangible attributes connect. The premise here is that brand familiarity alters the relative impact of congruent and incongruent information on product evaluation. Incongruence has a greater influence for those whose familiarity is low. However, incongruent information is less likely to determine preference when consumers are well versed with the brand. Familiarity serves to counter its effect. Essentially, those equipped with prior knowledge are better placed to resolve discrepancies posed by incongruent information. Hu et al. examine the issues in a study involving the automobile market in China. The country was selected as the study context for reasons that include its economic growth, huge population and increasing importance to the global marketplace. That China is the second biggest auto market adds further significance. Average income levels make automobiles a major purchase decision for most Chinese consumers. The search for information is therefore assumed to be comprehensive. The study concentrates on medium sedans and for product stimuli uses Bora and Mazda 6, two popular brands in this market. Surveys were administered to 1,440 consumers familiar with the two brands and who had previously bought a medium-priced sedan or intended to in the near future. Subjects for the study were recruited in seven major Chinese cities of varying size. The gender split within the sample was virtually equal. Demographic information was collected and participants were asked to indicate perceived and desired levels of performance for both functional and symbolic image based on 14 different attributes. Brand familiarity and brand preference were also measured. Analysis revealed that: . Functional image congruity positively impacts on brand preference. This effect is stronger still for consumers whose familiarity with the brand is low. . Symbolic image congruity influences functional image congruity. . Familiarity moderates the relationship between brand preference and functional image.

higher than desired performance level. And in the condition when desired level of performance exceeded the perceived level, a negative impact on brand preference was recorded. That familiarity did not moderate the relationship between symbolic image congruity and brand preference was likewise unanticipated. The same relationships were evident in the separate investigations that were conducted in respect of the Bora and Mazda brands. Differences between this study and an earlier one in the USA were noted. However, those researchers also discovered a negative relationship between symbolic image congruity and brand preference in relation to clothing department stores. The authors believe that the connection between the two studies is that both purchase situations reflect “conspicuous consumption”. This might have special significance in Chinese culture, where attaining and preserving honor in social contexts is paramount. It is therefore proposed that greater appeal to Chinese consumers can be achieved by promoting symbolic brand image as being higher than what consumers ideally expect. A key assumption here is that marketers should strive to “localize their strategies” to a certain extent in order to enhance performance in potentially diverse markets. Advancing the same image globally appears risky by comparison. Hu et al. put forward a reason for the apparent lack of moderating effect of brand familiarity on the relationship between symbolic image congruity and brand preference among Chinese consumers. The suggestion is that the effect of symbolic image congruity operates at a higher abstract level and therefore demands fewer “itemized analyses” than functional brand image. Nevertheless, the authors recommend marketing campaigns that strengthen brand familiarity as it helps build a more favorable brand image. Brand preference can be increased if superior symbolic image is also developed. Relationships found in the current study between functional image congruity, brand preference and brand familiarity mirror those found by Western scholars. Most of these earlier studies were conducted in retail store contexts and extending these findings to auto products further indicates their reliability. The importance of effectively managing functional attributes is therefore emphasized. Future research might explore other emerging markets that differ to China in terms of such as cultural heritage, economic development or consumer refinement. Another possibility is to measure congruity using reference points different to perceived and ideal levels. Industry standards or self-identity are possible alternatives among others. A consideration of other product categories is likewise proposed. Automobiles from different price brackets could be examined, as might luxury items or products of a more everyday nature.

Findings about the effect of symbolic image congruity on brand preference were somewhat contrary to expectation. It was not significant when perceived level of performance was

(A pre´cis of the article “The role of brand image congruity in Chinese consumers’ brand preference”. Supplied by Marketing Consultants for Emerald.)

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

34