The impact of host country culture on new brand performance

Abstract

General rise in consumer awareness has led to consumers becoming more aware of the culture of their country or community. Belonging or ascribing to a certain set of beliefs, values and customs is an essential part of every human being. In marketing if a brand is able to exhibit similar attributes, it will gain popularity through growing consumer acceptance, i.e., it will belong to that particular culture. Until then a brand will be looked upon as an outcast, utilitarian and transactional in nature. Any brand which remains in conflict with the underlying culture of the consumers it caters to is bound to fail. The purpose of this paper is to present a review on evaluations of how the culture of a host country interacts with a new or imported brand from the perspective of an effort-performance relationship. This paper also identifies, elaborates and collates the existing literature that exists in previous studies and researches, which focus on the interplay between the culture and brand. Previous studies have developed a structure of culture and brand and their effect on the performance of brands. They recommended theories and suggestions for having a successful and compatible brand perception in a host country. The study will contribute towards providing a framework for organizations to help them in customizing the brand perception of their brands with respect of the culture in the cross-national market and suggest new ways to increase the acceptance of the brand by the consumers.