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The Influence of Culture and Biographical Variables on the Brand Image of Google and Baidu:An Exploratory Study in Guangzhou,China

2014-04-29RayneCylaHandley,NicholasJamesRaw,MattheusLouw,LynetteLouw

中国市场 2014年9期

Rayne Cyla Handley,Nicholas James Raw,Mattheus Louw,Lynette Louw

[摘要]The study found significant correlations between the culture dimensions of Confucian work dynamism,human-heartedness and moral discipline and the brand image dimensions of online search engines.It was also found that several significant relationships exist between the biographical variables of age and education and the brand image dimensions,and that culture and biographical variables have a linear relationship with brand image.The findings highlight that culture and biographical information can influence Chinese consumer perceptions of an international or local brand.Organizations thus need to align their brands with the culture and biographical profile of their target markets.

[关键词]Cross-cultural management;brand image;China

[中图分类号]F272 [文献标识码]A [文章编号]1005-6432(2014)9-0008-013

1 INTRODUCTION AND PROBLEM STATEMENT

Growth expansion and opportunities in emerging markets such as China are becoming increasingly viable strategies for organizations traditionally operating in the developed world characterized with established or declining markets(Lee,Knight & Kim,2008).Entering into a global market involves,among other things,creating a global brand.Marketing plays a vital role in creating a global brand identity,the consumers perceptions of which determine a brands image,which then affects the extent of a brands success in a particular market(Emery & Tian,2010).

“Brand image” is the perception that a market holds about a brand and how consumers perceive a brands identity(Koubaa,2008).Following this line of thought,brand identity needs to be created within a markets cultural context,and hence needs to take into consideration the differences in brand perceptions(Emery & Tian,2010).Perceptions of a brand,in turn,affect brand equity or the value of a brand(Lee,Klobus,Tezinde & Murphy,2009).Consequently perceptions of a brand need to be managed effectively and be appropriate to a cultural context.Likewise,the multi-national organizations that have established their brands in China have had to do so within a cultural context particular to China.This array of foreign brands,according to Li(2008)has,in general,been well accepted in the Chinese market.China has become one of the worlds most prosperous markets with its population of around 1.3 billion and has an immense potential for international organizations and brands that are able to infiltrate its market(Fan & Pfitzenmaier,2002).

According to Tian and Borges(2011,p.110)“cultural forces have long been known to influence the communication and success potential of competition in conducted international business”.With regard to online search engines,Goodrich and de Mooij(2011,p.248)argue that “services are more difficult to homogenize than goods,and are also less subject to global consumer culture positioning than tangible products”.This suggests that culture is relevant and influences consumer brand perceptions.It is put forward by Jansen,Zhang and Schultz(2009)that the performance of search engines is in general on a similar level,and interface designs of search engines are generally similar,and as such there are other phenomena that should be considered in explaining web search engine usage.Jansen et al.(2009)find that brand image has a significant influence on how consumers perceive the performance of search engines,by measuring search engine selection,results page evaluation,individual link evaluation and evaluation of the landing page.A study performed by Zhang(2009,p.32)contends that “higher levels of satisfaction and trust result in a significant increase in the brands positive perception” but at the same time it is found that “the perception of brand image has a significant,direct impact on both the consumer satisfaction and the trust of search engine brands”.The web search engines of Google and Baidu were chosen for the purpose of this study because there is likely to be higher brand awareness of large search engines in comparison to other online brands.

Google is an example of a foreign organization that has tried to enter the Chinese market and take advantage of the large consumer market.Google became a publically held company in 1998 and Googles rapid growth has resulted in its becoming a giant in the search engine industry.However,this predominance is not absolute.Google and Baidu are both global technology leaders operating in various industries,however,majority of income is from advertising on their search engines(Baidu,2012;Google,2012).In terms of branding Google(2012,p.1)argue that “building a trusted,highly recognized brand begins with providing high-quality products and services that make a notable difference in peoples lives”.Google also cherishes their organizational culture which encourages the dissemination of information throughout the organization and encourages employees at all levels to freely act on ideas(Google,2012).These values can be clearly contrasted with that of Baidu,Googles main competitor in China,who as a local organization has already established itself in the Chinese market.It can be argued that Baidu is more customer-orientated than Google when comparing corporate information released by the two organizations(Baidu,2012;Google,2012).

Baidu was founded in the Cayman Islands in 2000 and runs most of their business operations through Baidu Online and Baidu Netcom,with Baidu head quarters in Beijing.Chiou(2009)suggests that Baidu has been equated with ‘Chinas Google for years,and is challenging Googles expansion into China.According to Lee(2012),Baidu had 78.6% of Chinas search-ad market by revenue which is five times the amount achieved by Google and 64% of the Chinese search user market in 2010.In addition,Baidu experienced an 82% rise in their stock price in 2010 whilst Google experienced a 21% decline(Shen,2010).Baidu(2012,p.1)argues that their success can largely be attributed to the ‘Baidu brand and put forward that “maintaining and enhancing the ‘Baidu brand is critical to increasing the number of our users,customers and Baidu Union members”.On the other hand,Baidus expansion beyond China is still in its infancy and Baidus(2012,p.1)financial report states that “revenues generated from international operations are insignificant” with revenue from international operations increasing only 0.3% from 0.2% in 2010 to 0.5% in 2012.Baidu has already expanded their brand into domains such as online gaming,e-commerce and mobile networks and is attempting to enter several international markets.Baidu started expansion in 2002 when it began offering its search engine in Japan and more recently has begun to initiate expansion into other countries such as Brazil,Egypt and Thailand(Sreeja,2013;Stone & Einhorn,2010).

In 2010 Google started to redirect their Chinese search engine users to Hong Kong so to evade Chinas censorship laws and ‘cyber-attacks.It has been asserted that this decision by Google was not well received by China who felt that Google had violated the entrance agreement(Helft,2010)by.In January 2013 Google stopped warning Chinese consumers about keywords they were searching that were censored or banned(BBC,2013).Wright(2013)argues that Google can be expected to remain in China despite tension with Chinese officials and Googles small market share of roughly 5% as this amounts to a rough estimation of 25 million search engine users.One could argue that if Google wishes to improve its market position in China it is imperative to regain the trust of both government officials and search engine users and manage their brand image in a context that is culturally appropriate.

It is in this context that the importance of understanding consumers perceptions of online search engines and how those perceptions are influenced by culture and biographical variables emerges.Web search engines have experienced immense growth since their inception,and a few dominating search engine brands are some of the most heavily visited sites online(Jansen et al.,2009).The purpose of the study was to conduct an exploratory study to determine the extent to which Chinese culture dimensions and biographical variables influence the brand image of online search engines.This purpose will be achieved by ascertaining the brand image of two online brands,namely Google and Baidu,in the Chinese market.The exploratory nature of this study is motivated by the lack of appropriate knowledge that is required for developing viable cross-cultural brand image frameworks.

2 RESEARCH AIMS AND HYPOTHESES

To achieve the purpose of this exploratory study the research aims were as follows:

To examine the relationship between the cultural dimensions(integration,Confucian work dynamism,human-heartedness and moral discipline)and brand image dimensions(brand distinctiveness and commitment)of Google and Baidu.

To examine the relationship between the biographical variables of consumers and brand image dimensions of Google and Baidu.

To determine whether there is a significant difference between the brand image dimensions of Google and Baidu.

To determine whether there are significant relationships between the independent variables of dimensions of culture and biographical variables and the dependent variables of brand image.

To achieve these aims,the following sets of hypotheses will be examined,as illustrated in the theoretical framework,Figure 1.

Ha1:The dimensions of culture are significantly correlated with the degree of brand distinctiveness.

Ha2:The dimensions of culture are significantly correlated with the degree of brand commitment.

Ha3:The average or mean brand distinctiveness scores are statistically different across biographical variables.

Ha4:The average or mean brand commitment scores are statistically different across biographical variables.

Ha5:There are statistically significant linear relationships between the dimensions of culture and biographical variables and brand distinctiveness.

Ha6:There are statistically significant linear relationships between the dimensions of culture and biographical variables and brand commitment.

China has on average seen a growth in Gross Domestic Product(GDP)of over 8% since the adoption of its open-door policy in 1978(Cheng,Wong,& Woo,2013).In mid-2010 Chinas GDP surpassed that of Japan(Kotler,2010),making China the second largest economy in the world with the largest consumer market.It cannot be denied that China has experienced outstanding economic success and is viewed by many as a lucrative investment option(Emery & Tian,2010).Taking into account that in 2006 it was predicted that 75% of China would be urban by 2026(Piron,2006)and the size of Chinas consumer market and economic growth,Chinas expansion seems to be continuing on an upward trend(Leng & Zhang,2011).

3.1 Brand Image

Given the complex operating environment of the 21st century,organizations are increasingly expected to offer value greater than only core product and service offerings,and customers must be “engaged in a personable,memorable way”(Pine & Gilmore,1998,p.97).Sksjrvi and Samiee(2011,p.169)suggest that a brands worth is intimately tied to consumer reactions,and that “consumers perceptions of a brand contribute to the brands relative strength in the market,which drives a brands value in that market place”.

“Brand distinctiveness” can be seen as the uniqueness of the brand which can lead to differentiation and a competitive edge.Wong and Merrilees(2005)suggest that if consumers perceive a brand to be distinctive,they will be more able to distinguish it from other brands.Brand distinctiveness will therefore contribute to long-term success.If the brand is perceived as similar to other brands the brand image deteriorates and the good or service will not be in the forefront of consumers minds.“Brand commitment” can be viewed as “an enduring desire to maintain a valued relationship” with the brand(Walsh,Winterich & Mittal,2010,p.78).Brand commitment develops over time,and high brand commitment strengthens connections between consumers and the brand.Brand commitment is a direct result of the brand image a consumer holds about that brand,and as brand commitment increases,brand equity rises.

The regulation of demand has always been seen as important in China.According to Amber,Witzel and Xi(2009),the focus currently is on stimulating demand in the Chinese market.China has more products and brands available than most other countries and as such there is a lack of brand commitment and brand distinctiveness as well as quick shifts in market share as consumer preference has been made volatile by the excess of brands in the market(Eyring,Johnson & Nair,2011).Chinese consumers,according to Melewar,Meadows,Zheng and Rickards(2004),tend to have high brand awareness and prefer well established brands as they are seen as more reliable.Without brand awareness,consumers cannot form their own brand perceptions.Chaoying,Jian and Ille(2011)discovered that in a Chinese service market emotional advertising is more effective than rational advertising.Emery and Tian(2010)highlight that consumers from different cultural backgrounds are likely to respond differently to emotional and rational advertising.As mentioned earlier,little research has been conducted with respect to Chinese consumer perceptions about online services(Zhang,2009).Zhang(2009)finds that relationships are often formed between search engines and their users,which results in a high brand commitment.These relationships are influenced by the brand image that users have of the search engine.

3.2 A Brands Country of Origin

Consumers perceptions and feelings towards the country from which a brand originates,as well as the social norms of that country,influence brand choice(Li,2008).Country of origin effects tend to be confined to positive experiences with particular brands(Melewar et al.,2004).When an organization is entering a new international market,Hornikx and OKeefe(2009)contend that there are two approaches to branding available to it.Organizations can either adapt their brand identities so to align them with the local markets or standardize the brand identities.The argument of adaptation gives organizations the ability to alter their advertising and communication to suit the needs and tastes of each local culture(Witkowski,Ma,Beach & Zhang,2003).Lee et al.(2008)propose that cultural sensitivity to the localized preferences of consumers may be necessary to compete with highly localized domestic brands which are becoming increasingly competitive.Meeting localized needs may even be a source of competitive advantage.The opposing argument is that global standardization is beneficial because of economies of scale.Hornikx and OKeefe(2009)suggest that the benefits of standardization go beyond economies of scale and also include the creation of a corporate brand image,enabling organizations to better leverage good creative ideas.Li and Wyer(1994)ascertained that there are several organizations that have successfully branded their products in terms of the country of origin when the country of origin has a positive reputation for manufacturing the product.

Hornikx and OKeefe(2009)find that branding activities that were adapted to align with cultural values were more persuasive than those that were unadapted.An alternative viewpoint is offered by Alden,Steenkamp and Batra(1999)who suggest that target markets are increasingly becoming global and consumer groups with shared values and assumptions can be found across international borders and propose that an international brand positioning strategy termed ‘global consumer culture positioning(GCCP)is required.GCCP,which can be linked to arguments pertaining to globalization,is contrasted with two alternative positioning models of ‘local consumer culture positioning(LCCP),which can be linked with arguments of localization,and ‘foreign consumer culture positioning(FCCP),in which the foreign country of origin of a brand is emphasized.Alden et al.(1999)find that LCCP was adopted more frequently than GCCP and FCCP and LCCP was used relatively more often in the marketing of services than products.

Foreign brands have the brand image of a higher life quality in China within certain product categories(Li,2008).Zhou and Belk(2004,p.64)suggest that consumer responses to global brands with a Chinese name that use local advertising appeals tend to be positive and what is more important than a brands country of origin is the extent a particular brand is perceived as global or local.In addition Zhou and Belk(2004)find that in China foreign values are not always understood by Chinese consumers.Despite this,global advertising appeals were found in most cases to have positive associations in that global brands are seen by Chinese consumers to resemble values such as status,quality and beauty rather than being valued for being a foreign brand in itself.The success of global brands in China can be seen to be fuelled by “cosmopolitanism and face” and hampered by “nationalism and cultural pride”(Zhou & Belk,2004,p.64).Chinese organizations have,however,also begun to provide customers with equivalent quality at lower costs owing to significant progress in technological developments and production standards(Tifferet & Herstein,2010).Technological and economic progress may cause a shift from GCCP to LCCP according to Alden et al.(1999)as consumers gain faith in local brands and foreign brands lose their prestige.It is interesting to note that culture is found to influence the importance of brand country of origin as well as moderated effects such as individualism on the importance of manufacturer identity(Tifferet & Herstein,2010).This essentially means that not only was culture found to influence consumer perceptions about a brands country of origin but it was also found that the impact of individualism on the importance of a manufacturers identity was dependent on the consumers culture.

3.3 Consumer Country of Origin and Culture

The country from which a brand originates is not the only variable that influences how consumers perceive that brand.The country the brand is trying to enter and the accompanying culture of that country are also said to heavily influence a brands image.A study conducted by Basfirinci(2013)finds evidence that brand country of origin influenced brand perceptions of consumers and highlights that a country of origin can influence the personality assigned to a brand by consumers.Francesco and Gold(1998)suggest that culture is one of the most useful variables in explaining consumer behaviour.“Culture” in a broad sense can be described as a way of life adopted by a group of people.Hofstede and Bond(1980,p.6)define culture as the “collective programming of the mind that distinguishes the members of one category of people from those of another”,which can be applied to both national and organizational culture.Culture has been described by Hofstede and Bond(1980)as nation-specific and static,and while it may be modified,this cannot be done easily.As such it is important to adapt brands to the cultural context of a market.

The Chinese Culture Connections(CCC)(1987)concern with the cultural neutrality of cultural typologies suggests that research instruments may themselves be culture-bound.The CCCs(1987)research created a research instrument,The Chinese Value Survey(CVS),with an Eastern bias.The CVS is said to reflect the Chinese social value system emanating from the Confucian ethos,since many of the values within the CVS are uniquely Confucian.The CCC(1987)highlights that all the CVS dimensions except for Confucian work dynamism,have been found to correlate with Hofstedes(1980;2001)cultural dimensions.

The CVS has four dimensions,namely integration,Confucian work dynamism,human-heartedness and moral discipline.The dimension of Integration relates to social stability in terms of a sense of propriety and harmony with oneself and can be characterized by a tolerance for others(Ralston,Gustafson,Elsass,Cheung & Terpstra,1992).Integration also “places importance upon being trustworthy and enjoying a close friendship”(Ralston,Gustafson,Cheung & Terpstra,1993,p.256).This dimension contains eleven values,three of which have negative loadings.The positively loaded values “reflect a broadly integrative,socially stabilizing emphasis”(CCC,1987,p.150).This dimension includes three negatively correlated values pertaining to filial piety and chastity in women,which indicate a strong familial bonding.Integration corresponds with Hofstedes power distance dimension.Confucian Work Dynamism is said to reflect “social hierarchy,protecting the status quo,and personal virtue”(Ralston et al.,1992,p.666).This dimension can be said to strongly reflect the teachings of Confucius and as such is the dimension with the strongest Eastern bias and is said to encompass a respect for tradition with a strong desire to protect ‘face(Tan,2002;Ralston et al.,1993).There are four positively loaded values in Confucian work dynamism which reflect the Confucian work ethic,which is very hierarchical in nature.Four negatively correlated values are included which “advocate checks and distractions at the personal,interpersonal and social levels”(CCC,1987,p.150).It was found by the CCC(1987)that there are significant differences between the factor scores of Hong Kong(0.91)and the US(-0.42).Human-heartedness pertains to ones “social awareness and can be characterized by a felt need to be kind and courteous to others”(Ralston et al.,1992,p.666),and is correlated with Hofstedes masculinity.This third dimension includes three positively loaded value statements relating to “ideas suggesting gentleness and compassion”(Matthews,2000,p.121)which is countered by two negative values indicating “a harsher,legalistic approach to life”(CCC,1987,p.150),this is expressed as compassion and moral dynamism by Tan(2002).Moral discipline focuses on personal control particularly with regards to whether one views themselves as an ‘in group or ‘out group member(Ralston et al.,1992).This dimension is associated with the need to be moderate,prudent and acceptable.This last dimension correlates with Hofstedes individualism-collectivism dimension(Ralston et al.,1993).The three positive values included in moral discipline pertain to moral restraint,the two negatively correlated values of adaptability and prudence are said to reflect a lack of self-control(Matthews,2000).According to the CCC(1987,p.151)moderation illustrates a “firm and disciplined stance rather than the flexibility it can so easily be construed to endorse”.

China has a collective culture which could be described as a long-standing tradition that seems to be enduring(Melewar et al.,2004).This is an important cultural dimension because Western organizations entering China tend to be individualistic and place more importance upon individual goals(Rarick,2007).The collectivism-individualism dichotomy has been criticized by academics such as Markus and Kitayama(1991)as inadequately conceptualising East-West cultural differences,however for the purpose of this study individualism and collectivism were deemed to be appropriate.Relationships are more important in China than in many other countries,which can be traced back to the teachings of Confucius(Amber et al.,2009).According to Confucius,the appropriate behaviour to adopt in a given situation should be guided by the nature of ones relationship with others(Rarick,2007).The importance of maintaining harmony through these relationships is said to be a major contributing factor to the collectivist nature of China(Rarick,2007).The importance of harmony,relationships and how relationships are structured in society are depicted in integration.

Confucius also advocated the importance of five virtues,which are still visible in China today and manifest themselves in the contemporary cultural values of China(Rarick,2007).While intra-cultural differences exist in China,Lawler,Walumba and Bai(2007)argue that they are not as large as those in countries such as India.Chinese consumers are well informed,and will search for products that meet their specific needs;this can be problematic when switching costs are low,as is the case with search engines.Language is in general important,as it builds brand image and delivers information to consumers(Melewar et al.,2004).

According to Lawler et al.(2007)there have been academics who have been dismissive of culture as an explanation of cross-national differences.Westernization or ‘Americanization has arguably changed local cultures through the process of globalization(Lee et al.,2008).The Chinese people are becoming more accustomed and adaptable to new environments,and Lawler et al.(2007)propose that culture can and does change,generally with economic growth and development.The arguments of Lawler et al.(2007)highlight cultural convergence,which is characterized by the spread of English,particularly in business,and the erosion of local culture through cultural imposition.While cultural convergence can be linked to globalization and multi-national organizations,the relationship may be more coincidental than causal.The products and services offered by organizations may be in response to cultural changes caused by modernity and hence the foreign countries themselves,do not cause the cultural shift.While both global marketing strategies and localized marketing strategies have found success in international markets it can be said that most multi-national corporations use a hybrid approach,globalizing and localizing different aspects of their marketing efforts(Zhou & Belk,2004).

The standardization of online strategies is unlikely to succeed,because consumers in the search engine market must have a sense of engagement(culturally or contextually)with vendors(Goodrich & de Mooij,2011).This is reiterated by Alden et al.(1999)who argue that because of major variation in local preferences for services,services tend to be more difficult to homogenize.While countries seem to be converging with regard to the ownership of certain goods and services,there is still divergence in the manner in which consumers from different countries use goods and services.

It is clear from this line of argument that,as with the brands country of origin,the consumers country of origin also has two opposing opinions:firstly that culture is converging,and secondly that culture is diverging.A converging culture corresponds to the argument of globalization,and suggests that increased trade,travel,and the increasing interconnectedness of markets resulting in cultural exchange,has occurred,and a more homogeneous culture can be seen(Wu,2006).Diverging theory argues that culture,language,politics and even the legal systems of particular nations or communities are becoming more individualistic or distinctive from others over time.There are those however who argue for crossvergence suggesting that elements converge and others diverge.

De Mooij(2000,p.105)finds that “although there is evidence of convergence of economic systems,there is no evidence of convergence of peoples value systems”.On the contrary it was revealed by Maynard and Tian(2004)that convergence in cultures and hence consumer behaviour is evident.Little consistency can be found in research as to whether culture is converging or diverging or if,in fact,crossvergence is occurring.

3.4 The Influence of Biographical Variables on Brand Image in China

The concept of gender has been apparent in the works of Confucius,who noted the pivotal roles played by family and education in the social development of gender and the identities associated with gender.It has been suggested by Hershatter and Zheng(2008)that gender as a concept has been slow to enter the Chinese language.The notion of the topic has,however,been present throughout time,in the culture,in the form man,‘nanor woman,‘nü which was recognized by scholars as the fundamental principle to organizing society.The differences in gender equality and access to education are significant between urban and rural areas in China(Tu & Liao,2006).During Maos reign in government,the employment rate of women increased substantially,especially in urban areas.Since the post-Mao economic reform the increase has,however,been at a decreasing rate.As gender is not a dichotomous variable,the concept of gender,as used in this study,is comprised of being a ‘manor ‘woman.For the purpose of this paper the concept gender will be used.

A notable trend is that of the increasing purchasing power of women and younger generations in China(Melewar et al.,2004).Knight and Kim(2007)find that in Japan there is a new emergence of female consumers who are redefining traditional lifestyles by reducing disparities in professional ranking between males and females.Lau and Phau(2010)suggest that the distinctive biological and psychological make-up of each gender is the main differentiator between how men and women process information to create brand perceptions.Lau and Phau(2010)find that women are less inclined to use elaborative processing than men,create their brand perceptions more instinctively,and are more likely to find congruency between themselves and brand images.Men tend to express their personality in their brand choice,while women use brands to relate to others.Brand identity should thus be created with these gender differences in mind,as gender personalities influence how perceptions are created(Lau & Phau,2010).

Hargittai(2007)asserts that men are more accustomed to the use of search engines than women.This finding is in contrast to that of Lorigo,Pan,Hembrooke,Joachims,Granka and Gay(2005)who find no meaningful differences in how search engines are used across genders.The only differences that were found suggest that men view the order of search results in a more linear fashion whereas women are more likely to go back and review the search findings provided.

China is now experiencing growth in the age distribution of its population.In 1982 its percentage of citizens over the age of 60 was 7.6%,and in 2007 the same age group had risen to 10% of the population,largely attributed to Chinas population control policies(Flarerty,Liu,Ding,Dong,Ding,Li & Xiao,2007).The prevalent Confucius culture found in China is primarily associated with the older generations who value tradition in contrast to the younger generations interest in Western influences(Alon,2003).In the Chinese culture,respect for elders is of great importance and more attention will be given to older generations(Melewar et al.,2004).Chiou(2009)find that the average age of internet users in China was 25.A trend of decreasing average age of internet users can be seen in China,which is altering how the internet is used and what it is used for.This is consistent with Hargittai(2007)who finds that younger adults are more likely to be better informed about search engines than are older adults.

It is considered by Hargittai(2007)that a users experience with search activities can overcome certain disadvantages caused by an individuals income and educational background.A study conducted by Li(2010)in China has determined that the Chinese middle class are younger in comparison to the population as a whole,and that accompanying this was a higher level of education.Young consumers,often referred to as “Generation Y” consumers,tend to prefer brand images based on values with which they can identify and through which they can express their individuality.Knight and Kim(2007)have established that to be successful in international markets organizations should consider how Generation Y consumers respond to their brands.These consumers tend to be “well educated,internet savvy,and eager to shop and they often are viewed as the first global consumer segment due to their exposure to worldwide communications via the internet”(Walker,1996,p.43).It has been argued that the younger generation have diverse brand perceptions and a new self-created culture not indigenous to any one country.With respect to education level,Ogba and Tan(2009)find that brand image influences brand loyalty and brand commitment across education levels.This suggests that education influences perceptions and shifts consumers away from price to brand as a market offering differentiator.According to Kalyanam and Putler(1997,p.169)“a general finding across studies is that the impact of demographic variables on brand choice is neither strong nor consistent”.

A study conducted by Tifferet and Herstein(2010)has determined that individualism and collectivism is the most significant cultural difference amongst consumers from different backgrounds.The effect of individualism was found to be stronger than that of demographic.

4 RESEARCH DESIGN,METHODOLOGY AND DATA COLLECTION

4.1 Research Method,Sampling and Data Collection

The “population” refers to the online Chinese consumers in China.However,the unit of analysis was an information technology(IT)organization in Guangzhou,China,and the unit of observation comprised the willing employees of an IT organization in China and the employees family members.The IT organization chosen in China had been chosen on account of reliable access.In addition,it was expected that employees in the organization as well as their families would have experience and knowledge regarding the use of search engines.For the purpose of this study,non-probability sampling was used.Convenience sampling was used to gain access to the employees and the families of employees in the IT organization in China.The unit of observation made use of the entire unit of analysis as all employees and their family members were requested to voluntarily participate,not a sample of the unit of analysis.

This study used a self-administered online Mandarin questionnaire made available on GoogleDocs.Two translators were used to ensure the translation accuracy.The link to the online questionnaire was sent to the Managing Director of the chosen IT organization,who made the online questionnaire available to the employees and their immediate families.Because of difficulties experienced at the IT organization in completing the online version,the questionnaires were completed on hardcopies and scanned into a document which was sent back to the researchers.All the participants were informed of this study and requested to voluntarily participate in the research project.

The questionnaire consisted of three sections.Section A measured national culture based on the CVS of Michael Bond(CCC,1987).In this section participants responded to 40 statements according to a 9-point Likert scale pertaining to the dimensions of integration,Confucian work dynamism,human-heartedness and moral discipline.It has been said that the validity of Western culture instruments are invalid to measure Chinese culture(Matthews,2000).The construct validity of the CVS instrument has previously been tested and deemed appropriate for use in a Chinese context by the creators of the CVS,the CCC(1987)as well as subsequent users of the instrument(Matthews,2000;Hofstede & Bond,1980).It is suggested by the CCC(1987)that it is likely that,given the response format,only items that are comprehensible and valued will be endorsed.

Section B of the questionnaire comprised two different marketing scales that measure the brand dimensions of brand distinctiveness and brand commitment.In this section six statements were included on brand distinctiveness developed by Yoo,Donthu and Lee(2000)with a Cronbachs alpha coefficient reliability score of 0.94 and a validity score of 0.72(assessed using an exploratory factor analysis as well as a confirmatory factor analysis),and three questions on brand commitment developed by Yoo et al.(2000)with Cronbachs alpha coefficient reliability scores of 0.90 and a validity score of 0.75(assessed using an exploratory factor analysis as well as a confirmatory factor analysis).In this study,participants were requested to respond to the statements according to a 5-point Likert scale.Section C comprised closed questions pertaining to the biographical variables of age,gender and highest level of education.

4.2 Data Analysis

The majority of the data analysis was performed in Statistica(StatSoft Inc.,2011).Descriptive statistics of the biographical variables were produced.Cronbachs alpha reliability coefficients were calculated to assess inter-item reliability of the questionnaire used in the study.For the purpose of this study Cronbachs alpha coefficients of 0.60 and greater were the recommended minimum value for reliability(Bryman & Bell,2007).The Cronbachs alpha coefficients for cultural dimensions were above threshold value of 0.60,except in the case of moral discipline with a value of 0.45.The Cronbachs alpha coefficients for the brand image dimensions were all deemed good,with a value of 0.77 or greater according to Sekeran(2000).

An inferential data analysis was conducted on all the items pertaining to the brand image of the two different services,Google and Baidu,across national culture dimensions,namely integration,Confucian work dynamism,human-heartedness and moral discipline and across biographical variables,namely gender,age and education levels.Pearsons correlation coefficients and associated hypothesis tests were used to assess the nature,strengths and significance of the correlations,or linear relationships,between the various dimensions of brand image and national culture(Table 1).As the sample size is large parametric test statistics were used to assess the significance of the hypotheses.Levenes test was used to test for significant differences in variance following which the appropriate two sample t-tests were used to assess the significance of differences in the respective populations means between the brand image variables for the gender biographical variable(Table 2 & 3).Separate one-way ANOVAs were used to assess the significance of the differences in the respective populations means between the brand image variables for the age,gender and education biographical variables(Table 2 & 3).Multiple regression models were fit in R(R Core Team,2013)where the dependent variable(brand image)was either the brand distinctiveness or commitment variable and the independent variables were all the items pertaining to the brand image across the culture dimensions and the biographical variables as dummy variables.The backward stepwise regression procedure was used to determine the linear model which was the best linear model or predictor of brand distinctiveness or commitment,based on the best AIC value,based on selected dimensions of culture and biographical variables.A paired t-test was used to assess the significance of the difference in the mean brand image scores of Baidu and Google.

5 FINDINGS

A total of 150 questionnaires were received,all of which were usable,68 questionnaires from employees and 82 from family members of employees.A response rate of 68% was achieved from employees(n=100),and the remaining 82 questionnaires from family members were collected to achieve the desired 150 responses.Of the respondents in this study,42%(n=63)were male and 58%(n=87)were female.The majority of the respondents,40.7%(n=61)were in the age group of 20~25 years,with 26.7%(n=40)in the age group 26~30.The respondents were also well educated,with 50%(n=75)having a Bachelors Degree.

5.1 Hypotheses One and Two:Culture and Brand Image

From Table 1 it can also be seen that no significant correlations were found between the cultural dimensions and the brand distinctiveness of Google.More specifically,these data provide insufficient evidence that there is a statistically significant correlation between the cultural dimension of integration and brand distinctiveness(r=-0.0334,p=0.7010),Confucian work dynamism and brand distinctiveness(r=-0.0014, p=0.9880),human-heartedness and brand distinctiveness(r=-0.0040,p=0.9630),and moral discipline and brand distinctiveness(r=-0.0405,p=0.6410)for Google.Table 1 also illustrates that two positive significant correlations were found between the cultural dimensions of Confucian work dynamism(r=0.1882,p=0.0290)and human-heartedness(r=0.2421,p=0.0050)and brand distinctiveness of Baidu.These data provide insufficient evidence that there are statistically significant correlations between the cultural dimensions of integration and brand distinctiveness(r=0.1354,p=0.1170);and moral discipline and brand distinctiveness(r=-0.0042,p=0.9620)for Baidu.

Ha1 can therefore be supported for Baidu,as there is a statistically significant positive correlation between Confucian work dynamism and human-heartedness and the brand distinctiveness of Baidu.However,no significant correlations could be found between the culture dimensions and the brand distinctiveness of Google.

From Table 1 it can be seen that there is one significant negative correlation,namely between the cultural dimension of moral discipline and brand commitment(r=-0.2022,p=0.019)of Google.It can be seen(Table 1)that there is only one significant positive correlation between the cultural dimension of Confucian work dynamism and the brand commitment(r=0.1956,p=0.0230)of Baidu.These data provide insufficient evidence that there are statistically significant correlations between the cultural dimensions of integration and brand commitment(r=-0.1055,p=0.2330),Confucian work dynamism and brand commitment(r=0.1650,p=0.0560)and human-heartedness and brand commitment(r=-0.0238,p=0.7840,)of Google.These data provide insufficient evidence that there is a statistically significant correlation between the cultural dimensions of integration and brand commitment(r=-0.0196,p=0.8220),human-heartedness and brand commitment(r=0.1179,n=135,p=0.1730),and moral discipline and brand commitment(r=-0.1530,n=135,p=0.0760)for Baidu.

Ha2 can therefore be supported in part,as there is a statistically significant negative correlation between moral discipline and the brand commitment of Google and a significant positive correlation between Confucian work dynamism and brand commitment for Baidu.

5.2 Hypotheses Three and Four:Biographical Variables and Brand Image

A dependent t-test of these data provided sufficient evidence that the Google and Baidu brand distinctiveness scores were significantly different(t=3.5112,df=142,p=0.0006).Levenes test indicated that,for these data,the distinctiveness scores for Google did not have significantly different variances(F=1.0596,df=1142,p=0.3051)between gender groups.A two sample t-test,with a pooled estimate of the variance,indicated that the mean scores of brand distinctiveness for Google were not significantly different between gender groups(t=0.7275,df=142,p=0.4681)as shown in Table 2.Table 2 shows that,for these data,the Google brand distinctiveness mean scores did not differ significantly across age groups(F=1.0544,df=6137,p=0.3932)but did differ significantly across the various levels of education(F=3.2822,df=4139,p=0.0132).Levenes test indicated that,for these data,the distinctiveness scores for Baidu did not have significantly difference variances(F=0.7804,df=1144,p=0.3785)between gender groups.For these data a two sample t-test,with a pooled estimate of the variance,indicated that the mean scores of brand distinctiveness for Baidu were not significantly different between gender groups(t=-0.1662,df=144,p=0.8683)as shown in Table 2.Table 2 shows that the Baidu brand distinctiveness mean scores differed significantly across age groups(F=6.9294,df=6139,p≈ 0.001)and the various levels of education(F=5.8207,df=4141,p≈ 0.001).

Ha3 stating that the average or mean brand distinctiveness scores are significantly across different biographical variables is thus accepted for age and level of education.

A dependent t-test of these data provided insufficient evidence that the Google and Baidu brand commitment scores were significantly different(t=1.3189,df=147,p-value=0.1893).Levenes test indicated that,for these data,the commitment scores for Google did not have significantly different variances(F=0.6557,df=1146,p=0.4194)between gender groups.A two sample t-test,with a pooled estimate of the variance,indicated that the mean scores of brand commitment for Google were not significantly different between gender groups(t=0.0806,df=146,p=0.9359)as shown in Table 3.Table 3 shows that the Google brand commitment mean scores differed significantly across age groups(F=6.5613,df=6141,p≈ 0.001)and the various levels of education(F=11.7508,df=4143,p≈ 0).Levenes test indicated that,for these data,the commitment scores for Baidu did not have significantly different variances(F=3.4969,df=1147,p=0.0635)between gender groups.For these data a two sample t-test,with a pooled estimate of the variance,indicated that the mean scores of brand commitment for Baidu were not significantly different between gender groups(t=0.02848,df=147,p=0.9773)as shown in Table 3.Table 3 shows that the Baidu brand commitment mean scores differed significantly across age groups(F=8.6182,df=6142,p≈ 0)and the various levels of education(F=7.7884,df=4144,p≈ 0).

Ha4 stating that the average or mean brand commitment scores are significantly different across biographical variables is thus accepted for age and level of education.

5.3 Hypotheses Five and Six:Regression Models

The fitted linear regression model for the brand distinctiveness of Google was found to be significant(F=1.095,df=15122,p=0.3684)where only the intercept term was reported as significant(t=3.450,p=0.0008)and all other independent variables were not significant.The final backward stepwise regression model was significant(F=3.18,df=4133,p=0.01565)where the intercept term(t=41.561,p≈ 0)and level of education,primary school relative to bachelor degree,variable was significant(t=-2.9,p=0.0044).The linear regression model fitted to the data for the brand distinctiveness of Baidu revealed a significant(F=3.858,df=15123,p≈ 0.0001)linear model where the significant independent cultural dimensions were integration(t=2.639,p=0.0094)and human-heatedness(t=2.490,p=0.0141),all other independent variables were not significant.The final backward stepwise regression model was significant(F=4.83,df=12126,p≈ 0)where the cultural dimensions of integration(t=2.590,p=0.0107)and human-heartedness(t=2.719,p=0.0075)were significant but the various categories of the biographical variable of age,gender and education were included in the model but were not significant.

Ha5 is thus supported as significant linear relationships where found between the cultural dimensions and biographical variables and brand distinctiveness for Google and Baidu.

The fitted linear regression model for the brand commitment of Google was significant(F=4.206,df=15125,p≈0)where the independent cultural dimension of moral discipline(t=-2.769,p=0.0065)and the biographical variable education were significant,primary school relative to bachelor degree(t=-3.226,p=0.0016)and high school relative to bachelor degree(t=-2.208,p=0.0291).All other independent variables were not significant in this linear model.The final backward stepwise regression model revealed a significant(F=11.26,df=5135,p≈ 0)linear relationship for the brand commitment of Google where the intercept term(t=13.650,p≈ 0),moral discipline(t=-2.2995,p=0.0034)and education dummy variable,namely primary school relative to bachelor degree(t=-5.982,p≈ 0),middle school relative to bachelor degree(t=-2.625,p=0.0097),high school relative to bachelor degree(t=-2.50,p=0.0136)were significant.No other variables were included in this model.The fitted linear regression model for the brand commitment of Baidu was significant(F=3.605,df=15126,p≈ 0)where the intercept term(t=3.149,p=0.0021)and age,namely 46 years of age or more relative to 18 to 20 years of age(t=-2.056,p=0.0418)were significant but all other independent variables included in the model were not significant.The final backward stepwise regression model was significant(F=6.148,df=8133,p≈ 0)where the intercept term(t=5.050,p≈ 0),moral discipline(t=-2.079, p=0.0396)and age,specifically 46 years of age or more relative to 18 to 20 years of age(t=-2.572,p=0.0112)and age 41 to 45 relative to 18 to 20 years of age(t=-2.454,p=0.0154)were significant.All other independent variables were included in the model but were not significant.

Ha6 is thus supported as significant linear relationships where found between the cultural dimensions and biographical variables and brand commitment for Google and Baidu.

6 DISCUSSION

Moral discipline was negatively correlated with the brand commitment scores of Google while Confucian work dynamism was positively correlated with the brand commitment of Baidu,this suggests that Confucian values results in greater support for local brands while a high self control and moral constraint results in a low commitment to international brands relative to local brands.The findings in this study also indicated that there were positive correlations between the brand distinctiveness of Baidu and the cultural dimensions of Confucian work dynamism and human-heartedness,but no correlations can be found with the brand distinctiveness of Google,which supports Hornikx and OKeefes(2009)study.Hornikx and OKeefe(2009)found that branding activities congruent with cultural contexts are more successful,and may explain the lower brand image of Google relative to Baidu.Due to collectivism in China it is argued by Tong and Hawley(2009)and Yoo et al.(2000)that mass media marketing reduces brand image in China as a result of interdependent brand choice.The study by Wong and Merrilees(2005)found that low brand distinctiveness negatively affects brand image as the brand is not at the forefront of the consumers mind,which may explain the dominance of Baidu over Google in the Chinese search engine market.It can be put forward however that only 18.75%(n=3)of the correlations between the brand commitment and distinctiveness of Google and Baidu and the dimensions of culture were significant.Once again the direction of the relationships are of interest in that the significant correlation between culture and the brand image of Google was negative whilst the significant relationships between the brand image of Baidu and culture where positive.This leads one to believe that there is a relationship,in terms of correlation,between culture and consumer perceptions of local and foreign brands.

Significant fitted linear regression models as well as significant backward stepwise regression models were found for the brand image dimensions of Google and Baidu.Backward stepwise regression models revealed a significant linear model for the brand commitment of Google with moral discipline and education as independent variables and for the brand commitment of Baidu with the independent variables of moral discipline and age.Significant relationships were also revealed by a backward stepwise regression model for the brand distinctiveness of Google with the significant independent variables of education and for Baidu significant linear relationships were found to exist with integration and human-heartedness.It was found by Roth(1995)that Hofstedes cultural dimensions of power distance(found to be correlated with integration)and individualism(correlated with moral discipline)significantly impacted upon brand image.Moral discipline can thus be seen to be a consistently influential dimension on brand image.A study by de Mooij(2000)found that femininity(found to be correlated with human-heartedness)and power distance where found to be predictors of internet usage.A study by Park and Rabolt(2009)also found that cultural dimensions have a significant impact on consumer behaviour and in particular consumer perceptions of brands.While these relationships where significant it is suggested that more research needs to be conducted as culture and biographical variables are not the only factors that could be used to explain the variations in brand image,as supported by the low goodness of fit of the regression models(indicated by low adjusted R-squared values).Batra and Sinha(2000)found that individual differences also explain variation in brand image.Over and above a study conducted by Batra,Ramaswamy,Alden,Steenkamp and Ramachander(2000)found that brand perceptions are influenced by variables such as perceived brand local/nonlocal origin,origin-free brand quality,brand availability,brand familiarity and prior experience with the brand.As such frameworks should be developed to include individual differences and other possible dimensions that influence brand perceptions.

The mean brand commitment scores of Google and Baidu differed significantly across age and level of education while the mean brand distinctiveness scores for only Baidu differed significantly across age and level of education.The differences in the brand image dimensions across biographical variables is corroborated by Batra and Sinha(2000)who found that a consumers brand choice is influenced by biographical data as well as individual differences.Overall gender can be seen to not be a very salient variable on brand image which is supported by the findings of Lorigo et al.(2005)who also found no meaningful differences between the genders with respect to online search engines.This study also established that the brand commitment scores of both Google and Baidu differed significantly across age groups,but only the brand distinctiveness scores of Baidu and not Google were statistically differed across age groups.These results indicate that younger consumers are more willing to be committed to foreign brands.This is substantiated by Hargittai(2007)who established that younger consumers have a higher probability of being well informed about search engines than older generations.Matthews(2000)who used the CVS also found that older generations are more inclined to value culture and local brands and products.According to Alon(2003)age is a significant variable in explaining brand image in China in that older generations can be expected to value tradition whilst younger generations have a greater interest in Western brands.Education level was the most influential biographical variable with regard to brand image,the brand commitment and the brand distinctiveness scores of both Google and Baidu differed significantly across educational level groups.Ogba and Tan(2009)had similar findings to this study,and suggested that the reason education level influences brand perceptions is because participants income levels tend to be higher as education improves.As their income increased,participants made their purchase choices according to brand image rather than price.

This study determined that the mean brand distinctiveness of Baidu was higher than the mean brand distinctiveness of Google,and this difference was statistically significant however no statistical differences could be found between the brand commitment scores of Google and Baidu.It was concluded that there was a difference between the brand image of Google and Baidu,with Baidu having the higher brand image.Chious(2009)argument that brand image determines the dominant search engine may explain why Baidu had both a greater brand image and a greater market share in China.This is supported by the findings of Chen(2005)who found that Chinese consumers have a low global brand and organization awareness and Chinese consumers therefore do see global brands as more distinctive and are certainly not more committed to them.

7 CONCLUSION AND RECOMMENDATIONS

Given the lack of research and the current gap in the literature with respect to international organizations entering China,particularly with online services this study offers insight into Chinese search engine users brand perceptions(Jansen et al.,2009).This is likely to put these global organizations in good stead and assist with the planning of brand management strategies within internationalization strategies.Over and above it can be said that effective brand management is of vital importance given the ever increasing cynicism and caution with which consumers perceive brands and the communication efforts of organizations(Koubaa,2008).Organizations need to monitor their brand images and ensure that they are aligned with their desired brand identity.Market research into brand perceptions thus enables organizations to create greater brand value and build their brand equity.

Organizations such as Google which have arguably not acknowledged the need to change certain elements of their product,service or brand to complement the foreign environment,may meet with disappointment and failure indicated by the lower brand image of Google in comparison to Baidu.Googles determination to maintain Western values of no censorship and a disregard for business etiquette resulted in major tensions between Google and China(BBC News,2013).One can put forward that greater cultural sensitivity and a regard for the local intricacies of Chinese business and preference should be adopted and understood by Google.The Chinese have been referred to as having a high sense of brand awareness and in addition to accommodating for local Chinese consumer preferences,the challenge of brand management also requires the brand to establish itself for long enough to be seen as reliable(Witkowski et al.,2003).Organizations may be able to build brand distinctiveness and commitment by becoming an established brand in the market.Cultural considerations are however still relevant and should be considered when establishing an international brand in the Chinese market as shown by the findings of this study and many other studies discussed.

The teachings of Confucius placed a great emphasis on education.This has resulted in a dedicated and intellectually capable population which can be seen to impact on how Chinese consumers perceive domestic and international brands(Hershatter & Zheng,2008).Consumers are changing increasingly with the influx of international organizations and brands entering the Chinese market and while majority of the changes are within the economic environment,cultural shifts can be noted.It is a common perception that the attitudes of consumers in the East towards products and brands differ from those of the West.With the influx of Western brands into China,it is vital that brands are successfully managed to adapt to and be incorporated into the Chinese context,which is largely determined by the Chinese culture(Melewar et al.,2004).

While it is believed that this study will add a valuable contribution to the knowledge base of both marketing management and cross-national managerial issues,it is important to be aware of the limitations of the study.Firstly,all research data was collected from urban consumers,which may mask issues of localization and rural versus urban consumer behaviour and perceptions(Piron,2006).There is a low generalisability of the study as the population consisted of participants living in the city of Guangzhou and the sample size is small,and perceptions of brands may vary across regions,as suggested by arguments of localization.In the same light,however,regional socioeconomics was found to moderate brand image and indicates that a city or town focus ought to be taken over and above looking at country level influences(Roth,1995).The low generalisability must be kept in mind and it must be taken into account that the exploratory nature of the study offers insight for future research rather than definitive answers.Lastly,the reliability of moral discipline was not as high as the other dimensions.One ought to also be aware of the influence of non-response bias despite the acceptable response rate of 68%.

Given the struggles of Google it can be said that international success is not a prerequisite for success in China and organizations cannot rely on their market share or reputation when entering China(Melewar et al.,2004).Managers need to be aware of how Chinese consumers perceive brands and in particular how their brand is likely to be perceived if they are to be successful in the Chinese market.Brand image is an effective mechanism to safeguard current market share as well as attract new consumers(Lee & Ganesh,1999).From the success of Baidu it can be said that a positive brand image can be a competitive advantage that is both sustainable and difficult to imitate.

With respect to the findings in the study,there are several recommendations which have been identified pertaining to future research.It is recommended that:

research evaluating how Chinese consumer perceptions of online brands vary across geographic regions be done.

research assessing Chinese consumer perceptions with regards to products and offline services be done.

further refinement of a research instrument measuring brand image within a Chinese context be developed.

research gaining greater insight into how other variables,such as income and social status,influence online brand perceptions be done.

online marketing research is extended beyond the Chinese market and into various other emerging and developing markets particularly within an Eastern and African context.

research assessing Chinese consumer perceptions of foreign brands not originating from America be done.

These future research agendas will greater improve the understanding of the exact relationship between culture,biographical variables and brand image.

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