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1. Introduction
The recent growing globalization has led to an increased market competition and intensifying international marketing activities on a global scale among brands originating from various countries, with many global brands competing with local brands in their host countries. The market globalization contributes to the availability of foreign products and brands, stimulating local companies to market their products competitively, enabling consumers to purchase and experience both global and local brands and products. So, in today’s marketplace it is increasingly important to understand whether consumers prefer global or local brands, and the reasons that underlie such a preference. In this context, marketing managers need to understand that consumer response to global and local brands may be more complex than is commonly assumed (Van Ittersum and Wong, 2010); since consumers are hybridizing global and local cultural influences, resulting in unique outcomes depending on national cultural values (Van Ittersum and Wong, 2010). This understanding is critical in determining the focus on the global or local aspects on branding and marketing strategies for companies operating in different markets worldwide (Gielens and Steenkamp, 2007; Zhang and Khare, 2009). There is a need to analyze whether consumers prefer global brands to local brands and, if they do, the reasons that underlie such preference.
According to Steenkamp et al. (2003), brand globalness could be conceptualized as consumer perceptions that a brand is global, a perception which can be formed if consumers believe the brand is marketed in multiple countries. It was widely proposed the consumer preference for brands with a global image over local competitors, even when their value was not objectively superior (Kapferer, 1997; Steenkamp et al., 2003). Moreover, it was initially assumed that global brands created perceptions of quality and prestige which were attractive to consumers, influencing the likelihood of brand purchase (Steenkamp et al., 2003). Despite the belief that global brands create consumer perceptions of brand superiority (Kapferer, 1997; Steenkamp et al., 2003), it can be challenged. There is also evidence that many consumers prefer brands with local connections (Riefler, 2012), leading to some authors state that consumers have no intrinsic preference for global over local brands. Some researches highlight that numerous consumers worldwide avoid global brands if local alternatives are offered (Holt et al.