Ownership of Brand Effect——Impact of Enterprises' Ownership Type on Consumers' Brand Characteristics Perceptions and Preference

Abstract

Abstract:

Chinese state and private-owned enterprises have different development context, management objectives and thoughts. Thus, consumers might hold different stereotypes on those two kinds of enterprises, which thereby results in distinct perceptions on the two types of enterprises' brand characteristics. These might further influence consumers' brand purchase decisions. This paper names this effect as "ownership of brand effect" by reference to the "country of origin effect" and examines the effect and its mechanism through two experiments. Findings indicate that consumers hold the view that the state-owned brands are more reliable and safe than private-owned brands; however, the private-owned brands are more innovative and efficient than state-owned brands. Further, respondents' evaluation of reliability and safety on state-owned brands is moderated by the degree of their trust on the government; those who have high (vs. low) degree of government trust consider state-owned brands' are more safe and reliable than private-owned brands. Consumers' perceptions of efficiency and innovation on private-owned brands is moderated by their endorsement level of open and egalitarianism, individuals who have high (vs. low) endorsement of open and egalitarianism report more positive appraisal on private-owned (vs. state-owned) brands' efficiency and innovation characteristics. Finally, when concern on safety is aroused, consumers tend to choose state-owned (vs. private-owned) brand; but when innovation is desired, they tend to choose private-owned (vs. state-owned) brand.

Key words: ownership of brand effect, brand characteristics perception, state-owned enterprises, private-owned enterprises, stereotypes

Huo Chunhui, Yuan Shaofeng, Peng Siqing. Ownership of Brand Effect——Impact of Enterprises' Ownership Type on Consumers' Brand Characteristics Perceptions and Preference[J]. , 2016, 28(3): 196-206.

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