How can High Quality Gain a Favorable Reputation in International Markets?—The Ethical Quality Strategy for Place Brand on Basis of Moral Legitimacy

Abstract

Abstract: In international business, the high quality in the economic dimension could not always lead to a favorable international reputation. How to build a high quality in the ethical dimension has become a practical issue to address in order to gain a favorable reputation in international markets. This study, based on the theory of moral legitimacy, investigates the relationships among ethical quality strategy for place brand, place brand reputation, and host country’s consumer acceptance. The empirical results from 967 valid sample respondents who have purchased foreign place brand products indicate that each of the ethical quality strategies for place brand (ideal quality conformation, value quality selection, and image quality manipulation) has positive effects on place brand reputation. The relative predictability of these dimensions on place brand reputation also falls into a particular order: Value quality selection is most predictable, followed by image quality manipulation, and then ideal quality conformation. In addition, place warmth and economic development level have different moderating effects on the influence of ethical quality strategy on place brand reputation. Finally, place brand reputation has a positive effect on host country’s consumer acceptance. These results altogether provide valuable insights into the effect of ethical quality strategies on place brand reputation, which encourages place brand managers to be collaboratively involved in ethical quality strategies in international markets.

Key words: place brand, ethical quality strategies, brand reputation, host country’s consumer acceptance, moral legitimacy

Zhao Weihong, Liu Mengjun. How can High Quality Gain a Favorable Reputation in International Markets?—The Ethical Quality Strategy for Place Brand on Basis of Moral Legitimacy[J]. Management Review, 2024, 36(7): 181-192.

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