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Sport Marketing Quarterly, 2012, 21, 19-31, © 2012 West Virginia University

Consumers from Emerging Markets: Perceptions and Attitudes Toward Global Sporting Brands

Chiyoung Kim and Bob Heere

Chiyoung Kim is a doctoral student in the Department of Kinesiology and Health Education at the University of Texas at Austin. Her research interests include corporate social responsibility through sport, international sport management, con- sumer behavior related to sport, and cause-related sport marketing. Bob Heere, PhD, is an assistant professor in the Department of Kinesiology and Health Education at the University of Texas at Austin. His research interests include social identity, community development, international sport management issues, and branding.

Abstract

While consumers within emerging markets are the largest growth market for global sport apparel brands, relatively little is known about how they perceive these brands. These emerging markets have recently become consumer markets for Western brands, yet they initially served as producing nations. This study examined how this transition affected consumer perceptions on global sport apparel brands. Consumer behavior theories, such as the brand as "Western status symbol," ethnocentrism, the country of origin effect, and the country of manufacturing effect were all incorporated within this exploration. Fifteen inter- views were held with young adult consumers fi-om both India and China. In contrast to previous studies, we suggest that these respondents view Western sport apparel brands favorably because they are seen as an instrument to express a global citizenship. Additionally, the international labor practices did not seem to directly harm the global brands, but they did diminish some of the utilitarian advantages the Western brands possessed.

Consumers from Emerging Markets: introduced numerous global brands such as Pantene, Perceptions and Attitudes Toward Global Head & Shoulders, Pampers, and Tide to emerging Sporting Brands markets by focusing on the large population of at-

Consumption has increased rapidly in developing mar- ^^"'^ ̂ "^^«^ high-end consumers. To illustrate, the kets such as China, India, Brazil, and Indonesia " ^ ̂ ^^ btllion Indian market for "fast-moving" con- (Essoussi & Merunka, 2007; Mahajan & Banga, 2006). '"'"^^ S^^'^' '' expected to double in the next decade These emerging markets accounted for more than 80% (^ahajan & Banga, 2006). of the world's population in 2009 (Atherton, 2009). ^"^'^^' ^° ^^^ ^"^^^^ "'^'^^^' '^^^'^ ^^^^' i" ^^^"^ According to the World Bank, the world's population ^^^^ consistently increased by 15% annually over the will rise to nine biUion by 2030, and 90% of the popu- P^'^ ̂ ^ ̂ '^^''- ^^ ^ ^ ' ''^P^^^'^ ^̂ ^̂ * ^ ^^^ "̂̂ ^^ '"̂ âil lation will be living in emerging market nations (Holt, '^^^' "^^'^^^ '"^ '̂̂ ^ed $628 billion in 2004, making it Quelch, & Taylor, 2004). Given this rapid growth, * ^ third-largest retail market in the world (Mahajan & global brands have begun to court these 'lands of ^ ^ " 8 ^ ' ^^O^). Interestmgly, although the total pack- opportunity.' According to Steenkamp, Batra, and ^^^"^ ^̂ ^̂ ^ ̂ ^^^^^^ in China was worth US $96 billion in Alden (2003), a global brand is defined as "one that ^008, rankmg third m the world, Danone Group and consumers can find under the same name in multiple ^^'^^^ ^ " ' ^ * " ^^^^ "^^j""^ ^""^^^ brands among the countries with generally similar and centrally coordi- ^°P ^^ Packaged foods companies in China in 2008 nated marketing strategies" (p. 53). Global consumer (Agriculture and Agr-Food Canada, 2010). Aside from products company Procter & Gamble (P&G) has rec- * ^ '^^^'^ ""^'^^^ ' " ^^^"^' ""^^^^ ""^'^^^^ ^"^^ as cars, ognized the potential of targeting potential markets in technology products and beer have been growing. The countries such as India, China, and Russia. P&G has §^'^'"8 popularity of products that target the younger

generation, such as athletic apparel, has been particu-

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 19

larly pronounced (Mahajan & Banga, 2006). The development of a consumer market for athletic apparel within these traditional producing nations provides a good illustration of the process of Southeast Asian transition from "producing nations" to "consuming nations."

Nike was the first athletic apparel company to take advantage of these new consumer markets. Nike did not recognize the importance of the Asian market until the 1990s. Before then, Nike's involvement with the Asian market was limited to manufacturing, and they were among the first Western brands to outsource their entire production through offshore manufactur- ing in Japan. However, when the labor costs in Japan increased, manufacturing shifted to other Asian mar- kets, such as Taiwan and Korea in the mid-1980s, and later on to China and the Philippines. During the 1990s, nations such as China emerged from the tur- moil of the Cultural Revolution and developed a large consumer market. Currently, as with some of the other emerging markets, China has become one of the major consuming countries of Nike products, but at the same time, a manufacturing country with inexpensive labor available. Given the large potential consumer popula- tion, Nike has developed extensive marketing strategies in order to make the Swoosh logo recognizable in these nations. Nike mostly used sport sponsorship as a pro- motional tool to appeal to the younger Asian genera- tion. For instance, Nike outfitted top Chinese athletes and sponsored all of the teams in China's new pro bas- ketball league in 1995 (Mahajan & Banga, 2006).

The advance of sport products has been made possi- ble partly by the increasing popularity of Western- based sport services, such as sports leagues, events and teams. Over the last few decades, most major sport service brands have made their entrance into these emerging markets, either through the media or live events. These brands/events range from the NBA and the Premier League to hallmark events such as Formula One racing and mega-events such as the Olympics (Beijing, Rio de Janeiro), the World Cup (South Africa, Brazil), and the Commonwealth Games (Delhi). Moreover, in many of these nations, new sports leagues have been founded based on Western principles, such as the International Premier League (IPL) of cricket in India and the Chinese Basketball Association (CBA). The advent of a popular sports entertainment culture laid the foundation for the exponential growth of and demand for sport product.

Despite the extensive marketing efforts of Western- based sport product brands, there is a lack of research examining how consumers in emerging markets value these leading Western brands. Within the current mar- keting literature on global brands, two contradictory

20 Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly

viewpoints have come to the forefront. Several researchers have noted that consumers in developing countries regard global brands, especially Western brands, as being of higher quality than their local products (Agbonifoh & Elimminian, 1999; Bow & Ford, 1993; Skalir, 1994). It is also argued that con- sumers in developing countries regard foreign prod- ucts as status symbols (Wang & Chen, 2004). While these studies suggest a preference for Western brands, another line of research indicates that this potential advantage might be offset by the ethnocentric tenden- cies of consumers. From this perspective, consumers believe that their own nation produces superior prod- ucts; hence they develop a preference for 'homegrown' products (Klein, Ettenson, & Morris, 1998). While in a Western setting these two theories reinforce each other, it remains unclear how these two theories mani- fest themselves within the Southeast Asian nations. Given the choice between an athletic shoe produced by adidas (Western brand as status symbol), and an ath- letic shoe of similar quality produced by Li Ning (Ethnocentrism), which brand would a Chinese con- sumer prefer?

The historical process of globalization has further complicated this discussion; emerging markets first served as producing nations (inexpensive labor nations), before they became valuable as consumer markets. Initially, the apparel and fashion industry moved their entire production apparatuses to these nations, offering wages that were well below the stan- dards in developed nations. As a consequence, much criticism was directed toward companies such as Nike, adidas, Reebok and others, for outsourcing their prod- uct to these nations, without offering people decent labor conditions and/or wages (Klein, 2000; Thibault, 2009). The effects of these practices on the brand per- ception of global sports brands within emerging mar- kets remain unknown. Considering that emerging markets are driven by younger consumers, the effect of labor issues on brand perception in emerging markets should be scrutinized as young consumers are relative- ly more in tune with social issues (Mahajan & Banga, 2006). Consequently, it is worth examining whether these inexpensive labor practices have damaged the brand value of these established companies in emerg- ing markets.

Within the mature Western sports markets competi- tion for consumers is fierce. To remain competitive in the global market, these sports product brands will have to be competitive in new emerging markets and understand how the consumers in these emerging mar- kets perceive them. Therefore, the purpose of this study is to examine how consumers from emerging markets perceive global sporting brands and whether

they prefer global sport brands or local sport brands. Special attention is given to the effect of labor issues on the consumers' decisions to buy global sporting ' brands' products.

Literature Review

Consumption in emerging markets and ethnocentrism Ethnocentric consumers are reported to prefer domes- tic goods because they believe that products from their own country are the best (Klein, Ettenson, & Morris, 1998). Several studies have demonstrated that highly ethnocentric consumers overestimate the quality of domestic products and underestimate the quality of imports (Kaynak & Kara, 2002; Wang & Chen, 2004). Additionally, consumer ethnocentrism highlights the moral element of consumer behavior, and implies that consumers will be hesitant to buy imports, as doing so is perceived to be unpatriotic and detrimental to the domestic economy and employment (Supphellen & Gronhaug, 2003). This perception might be strong enough to overcome any deficiency in quality and can lead consumers to purchase domestic products of poor- er quality over imported products (Hsu & Nien, 2008).

While the degree of consumer ethnocentrism can be regarded as a means to differentiate between consumer groups who prefer domestic to foreign products, Wang and Chen (2004) mentioned that consumers' willing- ness to buy domestic products is likely to be different for consumers from economically-developed nations and these developing nations. They suggested that the very concept of ethnocentrism might be culturally sen- sitive. Researchers have shown that consumers in developed countries tend to perceive their domestic products as being of better quality than imported products (Ahmed & d'Astous, 2001; Damanpour, 1993; Dickerson, 1982; Elliott & Cameron, 1994; Samiee, 1994), while they have found a reverse trend in developing nations, where global products are per- ceived as superior to local products (Agbonifoh & Elimminian, 1999; Batra, Ramaswamy, Alden, Steenkamp, & Ramachander, 2000; Bow & Ford, 1993; Skalir, 1994). Accordingly, this suggests that the impact of ethnocentrism on willingness to buy might be limit- ed to products that are produced in similar nations (e.g., Indian consumers prefer Indian products over Chinese products) and does not affect the perception of Western brands in these emerging nations (e.g., Indian consumers prefer an American brand over an Indian brand).

The Western brand as status symbol Numerous researchers have discussed the psychologi- cal meaning of the preference for foreign products in

developing nations, as reviewed by Batra, Ramaswmy, Alden, Steenkamp, and Ramachander (2000). First, Western brands have adopted a high-end market approach in developing markets, in which the price of their products is kept higher than those of domestic products, and the quantity relatively low. Hence, buy- ing these high-end brands is thought to provide con- sumers in developing markets with a sense of accomplishment with regard to their reference group's point of view (Bearden & Etzel, 1982). Second, con- sumers in developing market settings are relatively less affluent compared to those in developed market set- tings. Thus, it is argued, consumers in emerging mar- kets would like to emulate the bebavior of consumers in developed markets, especially Western consumption practices and lifestyles, through buying products from Western countries, under the assumption that the Western lifestyle is seen as the desired standard. Tomlinson (1991) referred to this process as "cultural imperialism." As an outgrowth of cultural imperialism, displaying foreign brands is seen as a way to display competence in developing nations. This phenomenon was observed and described within Nigeria:

Adopting the imagined trappings of the Western consumer, the Nigerian seeks to enter the commu- nity of the supranational elite, if only temporarily or only in his or her imagination.. .emulation of imagined Western consumer behavior through goods encoding new experiences and aspirations prevails as part of their search of legitimacy of new roles" (Arnould, 1989, p.259-260). Finally, it is argued that consumers in developing

nations have a preference for global brands because consuming them gives them a sense that they are a part of a global community (Venkatesh & Swamy, 1994).

Effect of brand's country of origin Related to the above issues is the theory of country of origin (COO) effects. The COO of a product typically refers to the country where a brand is based. For exam- ple, within the context of sports, the COO of Nike, which is based in Beaverton, OR, would be the US. This theory proposes that consumers are influenced by the product's nation of origin. The COO theory is of particular value for this study as it serves as a valuable mediator between the previous theories. If the COO of a specific brand is perceived as a developed nation, able to produce high quality products, ethnocentrism in the home nation of that brand is likely to occur, while it will negate any ethnocentric behavior of con- sumers in less developed economies. Vice versa, if the COO of a specific brand is within an emerging market, ethnocentrism is likely to limit itself to comparisons

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 21

with other emerging markets, while the "Western" brand can manifest itself as the status symbol.

It is uncertain how our globalized production econo- my has influenced the theory of COO, as within the globalized economy products are seldom created in the home nation of the brand. Because of the increasing access to media in these emerging nations, consumers are becoming more aware that the COO of a particular brand is often simply a 'tag' placed upon the product, but that the product is being produced in a nation similar to their own. Consequently, it is common to see products being produced in diverse locations around the world and labeled under a single brand name. Hence, the country-of-manufacturer (COM) becomes an additional cue to consumer evaluations in regards to the quality and value of products. The bi- national product, the product bearing a brand name associated with one specific country with a 'Made-In' label of where the product is actually manufactured, is a recently evolving dimension in the retail manufactur- ing industry. Consumers, in turn, are becoming more aware of the differences between COO and COM. Other research says that COO effects have lessened as consumers in developing countries have become more informed about COM (Khan & Bamber, 2009)

A study focusing on elite Pakistan consumers sup- ported this idea that COO effects have lessened (Khan & Bamber, 2009). These well-informed consumers realized that the current globalized production struc- ture allowed for foreign production, and that the COO of a brand seldom equated to the COO of production. Because the products of many global companies are produced in developing countries, it negated the effect of the Western Brand as status symbol (Okechuku & Onyemah, 1999). Hence, in certain circumstances, COO might not play a significant role in their con- sumer decision process. Lastly, because of the convo- luting impact of COM on these different consumer behavior preferences, it remains unclear how con- sumers in these emerging markets perceive these 'cheap labor' practices due to the unethical connota- tions placed upon them by Western consumers (Klein, 2000), raising the question whether these practices damage the perception of the Western brands.

Does 'being a good company' matter in emerging markets? As shown from the high-profile controversies involv- ing Nike (Klein, 2000), issues surrounding global com- panies' ethics and social responsibility have become a crucial part of global brand strategies. It is believed that "being a good company" will attract more con- sumers, while unethical behavior wül result in reduced consumption and even boycotts (Carrigan & Attalla, 2001). In addition, the Internet has linked consumers

around the world. As a result, consumer activists have had a forum in which to articulate and disseminate more aggressive opinions toward unethical companies (Carrigan & Attalla, 2001).

Although it is difficult to find any research concern- ing consumers' views on ethical issues pertaining to global companies in emerging markets, a few studies have been conducted to investigate consumers' demand for ethical responsibility. Joergens (2006) con- ducted focus group interviews in the UK and Germany to elicit consumers' attitudes toward ethical issues in the fashion industry. While the study had a limited scope, and a few focus groups on the fashion industry in two European cities can hardly provide findings that can be generalized outside that particular setting, some interesting notions were put forward. Some respon- dents supplied answers that pertain to the current study, as this comment indicates: "I still buy Nike shoes even though I know that Nike has some unethi- cal conduct. When I love the shoes and they are for a reasonable price, I still buy them...I don't think it makes a difference if I boycott Nike or Gap" (Joergens, 2006, p. 366).

The statement indicates that consumers in developed countries feel that they do not have any sound alternative although they are aware of the unethical conducts that might occur. More critically, these authors suggest that most consumers in developed markets pay little attention to being ethical consumers (Carrigan & Attalla, 2001; Joergens, 2006). In contrast, consumers in emerging markets could place a bigger emphasis on the ethical behavior of the companies, as these issues are much closer to home for them. Our proposition is that the consumers would like to see more 'good companies,' as they are becoming more aware of unethical conduct associated with the current international labor practices. As emerging markets are in the process of transition from producing nations to consuming nations, the link between global companies ' ethics, social responsibility and consumer purchase behavior should be more closely examined.

The psychological processes behind the formation of an attitude towards global brands are complex; yet understanding them is crucial to the success of global brands if these brands are to remain competitive in the fastest growing markets in the world. In an industry that receives as much media attention as the sport industry, a better understanding of the issue of brand perception is essential to framing effective marketing strategies. Sport marketers need better insight into how consumers within these emerging markets perceive their brands. The following research questions were proposed to explore these issues.

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1. To what extent do ethnocentrism, COO and COM affect the perception of emerging-mar- ket consumers towards global sport brands? '

2. Do the production strategies of global sport brands have a negative effect on the perception of the brand among the consumers in these emerging markets?

Methods Because the global brand perceptions of consumers within emerging markets is an emergent topic, a quali- tative approach has been pursued here as the research method in order to gain an in-depth understanding in this relatively unexplored area. Data for the research were collected via face-to-face interviews, which were semi-structured in order to capture a wider range of respondents' intentions and attitudes regarding global sport brands. The semi-structured interview is regard- ed as a preferred tool for exploring what a person thinks about a particular topic (Honey, 1987).

The participants in this study were Chinese and Indian students who had lived in the US for less than one year. The decision to interview people who are currently living outside of their own domestic market is an acknowledged limitation to this study, yet allowed us access to a particular segment of the market that is most likely to play an important role in the future of their own nations. Students are deemed to present an appropriate sample as they are coming to the United States with a utilitarian purpose (to receive an educa- tion) and in contrast to people who migrate to the United States for work purposes, they often desire to return to their own nation after completing their stud- ies (Weitekamp & Pruitt, 2009). After their return, they are most likely to become part of the segment of the population that is currently targeted by both Western and local brands. While their preference for an American university might be assumed by some as a bias towards Western society, and consequently. Western brands, research has indicated that this is not necessarily the case (Altbach, 2004). Often, these stu- dents are pressured by family to pursue the highest quality of education, and their eventual choice for an American university is mainly utilitarian. Nevertheless, once they arrive in the United States a process of accul- turation sets in. Acculturation indicates the process of cultural and psychological change that follows intercul- tural contact (Sam & Berry, 2010). Cultural changes include alterations in a group's customs, political life, and economic makeup. Psychological changes include alterations in individuals' attitudes toward their cultur- al identities and their social behaviors in relation to the groups they might be in contact with (Barak, 2009; Phinney, 2003). Participants with a limited time in the

US were chosen to avoid any potential bias associated with the acculturation process that comes with (tem- porary) migration to another nation. Hence, we attempted to limit the effects of acculturation as much as possible, by setting a limitation on their time in the US and by focusing our recruitment on graduate stu- dents who might be more resistant to the acculturation process (Kember, 2000).

While having newly arrived international students as a participant pool has certain limitations, given that these students present a particular subset of their home countries, it is their distinction from the overall popu- lation that makes them uniquely appropriate for this study. In each of these emerging nations, only a small part of the population has emerged above the poverty line, and it is that portion of the population that inter- national companies are courting. For example, the number of Indian consumers with incomes of greater than $7,000 in purchasing power parity is 120 million, only roughly 10% of the entire population of India (Mahajan & Banga, 2006). Moreover, while some of these students might have come from the highest socio-economic classes in their nations, many are sponsored either by their schools or the state, and they originate from the emerging middle class.

Participants were recruited through three different techniques. The authors contacted the international office of a university in the Southwest part of the United States and were allowed to participate in the orientation session for new international students. Consequently, one of the authors attended the orienta- tion meetings for incoming international students and was able to recruit four participants during those meetings (one Chinese male, one Chinese female, and two Indian males). Four subjects were existing person- al contacts of one of the authors and they agreed to be interviewed as well (two Chinese females, one Indian female and one Indian male). Finally, based on the contacts of the first round of interviewees a snowball strategy was used, and an email was sent out to 18 other Indian and Chinese students, who were friends or acquaintances of the eight students already inter- viewed. Of those 18 students, 10 responded. Of those 10 students, three students were eliminated because they had stayed in the United States for longer than a year. Once the subjects agreed to participate in the research, interview venues and times were scheduled at their convenience. These sampling techniques resulted in a sample of 15 students, seven from China and eight from India, which was a sufficient number of subjects to satisfy the minimum cases necessary to conduct a valid data analysis. According to Sandelowski (1995), a minimum of 10 sample cases is necessary for data analysis within a qualitative study. The average age of

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 23

the respondents was 27.2 years old (SD=2.36), and all the respondents were graduate students who moved to the United States, making them less sensitive towards the acculturation effects than undergraduate students, who are younger, and thus more likely to exhibit a fast acculturation process (Eustace, 2007). From the per- spective of the consumer market, younger consumers in emerging markets are of central importance in understanding emerging trends (Mahajan & Banga, 2006; MasterCard Worldwide Index of Consumer Confidence, 2010). The young lifestyles, higher educa- tion, and technological expertise make them powerful catalysts in leading changes in consumption trends. An overview of the respondents is provided in Table 1.

Semi-structured face-to-face interviews were con- ducted from November to December 2010 by the first author. To avoid bias, researchers refiained fiom men- tioning any specific global sporting brand name (Marshall & Rossman, 2011). The interviews consisted of 24 questions, and averaged 40-45 minutes in dura- tion. The interview took place on the campus of a large university in the Southwest part of the United States. Interviewees were asked three sets of questions, with a focus on brand perceptions and preferences regarding COO and COM. The questions employed in the survey were developed by the authors based on the literature on ethnocentrism and the influence of COO and COM on brand attitudes. Interviews were conducted using standard interviewing techniques for qualitative research. The interview started with some basic ques- tions to establish a relationship with respondents, and to gain an initial idea of how the respondent thought about sport, sport consumption and their favorite sport brands. These questions concerned sports partic- ipation, favorite sports, and favorite sports teams (e.g., "WJiat kind of sport do you play?"). Several follow-up questions were asked depending on the participants' answers (e.g., "Have you ever been to a stadium to watch your favorite team play?"). The second category focused on gaining insights into participants' personal experiences and the degree of importance they assigned to buying sporting products (e.g., "Do you have any preferred sporting brand? If so, is there a cer- tain reason that you prefer that brand?"). This set of questions aimed to assess participants' primary influ- encing factors and concerns when deciding to choose a certain sporting product. Participants were asked a variety of questions covering such matters as their con- cerns about price, quality, image, design, value, or the influence of others regarding sporting products (e.g., "What do you care most about when you buy sporting products?"). The third set of questions was designed to elicit participants' thoughts on product judgment and the COO effect (e.g., "Do you check 'made in' label of

24 Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly

sporting products?"). This set of questions centered on participants' beliefs concerning the relationship between the COO of sporting products and their quali- ty. The third set of questions was designed to enable us to investigate differences between perceptions of the sporting products of global brands and those of national brands (See Appendix A).

The data were transcribed directly after each inter- view. After the transcription, the data were analyzed using an ongoing coding process via the method of agreement (Mues & Huberman, 1994). Both authors identified initial themes that formed the foundations for further, more detailed schemes, and after multiple discussions agreed upon one coding scheme in which key phrases and paragraphs were categorized into themes based upon accordance between these schemes. After the coding process, once again, the results were discussed and analyzed, and following collaboration between the authors, a full consensus was reached. Due to the ongoing nature of these discussions, no inter- coder reliability calculation was attempted.

Results Guided by the overall literature the researchers catego- rized the data based on four general themes, each placed under a separate subheading: Global Brand Perception described the participants' general percep- tion of familiar global sporting brands; Global Community discussed how global brand products could be symbols of cultural ideals for consumers; Country of Origin captured any COO effect as an extrinsic cue. This third category also involved whether the country of original production affects participants' decisions to purchase a global sporting product. All three themes addressed our first research question. Finally, we discussed Perceptions of the Use of International Labor as elicited fiom the participants' comments, to address our second research question.

Global brand perception Based on our interviews findings fiom previous studies were confirmed. Participants tended to perceive global sporting brand products as superior to domestic ones. The quality of imported products was reported as the main force driving participants to choose imported products over local. A 25-year-old Chinese female respondent said: "You know as long as the product is made by adidas then I don't need to worry about the quality." A 25-year-old Chinese male respondent expressed a similar opinion: "I prefer adidas. I bought adidas shoes in 2005 for the first time.. .You know I only wear Anta shoes for a year, but the adidas shoes I bought, I wear it for 2-3 years [sic]." Such statements support the argument that imported products in devel-

oping countries are typically associated with high qual- ity (Wang & Chen, 2004). Accordingly, consumers accept the higher prices they need to pay for these '•••' brands. As a 30-year-old Indian male respondent noted:

I will say that Nike is the most powerful brand. If you go to Korea, girls like to carry Louis Vuitton, Prada, and Gucci. It's not a matter of which brand is the most popular. It's a matter of which brand is the most expensive one. It's the same in India. It's exactly the same. Nike is the mostly, I mean, Nike costs $100 or $200 which is the most expensive one [sic]. It's a lot of money in India but people still like to buy because it is expensive [sic]. High school or college students in India are "willing

to spend more than $100 to just own Nike shoes," despite its high price. A 30-year-old Indian male said Indian consumers tend to "show off their social posi- tion and status by consuming global brands' products, "I know there are other sport brands out there, but I like Nike because in my country Nike is a premium brand, so that's the reason I bought Nike." This con- firms that possession of a global brand's product signi- fies social position and status (Eng & Bogaert, 2010; Wang & Chen, 2004).

The limited effect of ethnocentrism While the above findings suggest that ethnocentrism does not play a role when comparing the Western brands with domestic brands, it did appear when the respondents compared one developing nation with the other. A 31-year-old Indian female stated, "I am pretty confident with something made in India. It could be wrong but I have a perception that something made in

Table 1. Qverview of the interview participants

China could have a lower quality (than Indian prod- ucts)." Similarly, a 26-year-old Chinese female respon- dent perceived Chinese products to be of better quality than Vietnamese products. She stated, "Well, I prefer the one made in China over the one made in Vietnam for sure but I don't think there is a huge difference." Both quotations illustrate that respondents from both nations preferred products manufactured in their own nation, rather than other developing nations. The spe- cific role of COM becomes apparent here as respon- dents discuss local brands often through terms of production (made, produced), while the global brands are discussed without these references. Regardless of where the global brands are produced, the respondents suggested they were of supreme quality, confirming the idea that ethnocentrism only manifests itself on a local level or when comparing nations that seem "equal" (i.e. developing nations).

A global community In order to gain a better understanding of what made Western brands, such as Nike and adidas, so attractive to our respondents, we analyzed the data for themes related to brand preferences. What became quite appar- ent from our data was contrary to previous theories on the topic. Our respondents indicated that it was not a Western lifestyle image they were looking for (e.g. cul- tural imperialism) but that these brands were thought off as symbolic of a global community. It was this com- munity that these people wanted to become a part of

Ownership of the products of these global brands provides a sense of community with other people who own the same products at a global level, regardless of geography, mirroring the concept of "brand communi-

Nationality Gender

China Female Female Female Female Female Male Male

India Female Female Female Male Male Male Male Male

Age

26 24 25 29 25 25 24 26 28 31 30 24 29 29 30

Household Income (US $)

25,001- 40,000 55,001- 70,000 25,001- 40,000

Less than 25,000 Less than 25,000 Lest than 25,000 40,001- 55,000

Less than 25,000 70,001- 85,000 70,001- 85,000

Less than 25,000 25,001- 40,000 40,001- 55,000 25,001- 40,000

85,001- 100,000

How long have you stayed in the US?

3 months 3 months 6 months 3 months 3 months 3 months 6 months 3 months 4 months 9 months 8 months 3 months 4 months 9 months 3 months

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 25

ty" as discussed by Muniz and O'Guinn (2001). Consumers in emerging markets look to global brands as symbols of shared cultural ideals. For those con- sumers in emerging markets, global sporting brands' products have meanings that transcend national boundaries. It makes them feel connected into the global community.

A 31-year-old Indian female respondent commented, "I feel more comfortable to buy more globalized brands. At first I felt Nike was more globalized as com- pared to adidas, so I bought Nike.. .1 think, at the end of the days [sic], it vñll be a free market. I will buy the best product that I can get in global market." This respondent gave more credit to the more globalized product because it supports her belief that a globalized brand is more reliable and of higher quality and will better assist in her self-perception as a global citizen. The media plays an important role in creating a con- sumer's desire to become part of the global communi- ty. A 29-year-old Chinese female respondent stated:

NBA China and lots of foreign sport leagues influenced Chinese kids a lot. They watch interna- tional soccer on cable channels. Chinese young consumers become fan of international players, and these international stars are spokesmen for sport products, so I think they are influenced by advertisements of foreign brands. Although my generation has grown up watching NBA, we did not have a Chinese super star at that time. This desire to become part of the global community

has been discussed in the literature (Fournier & Lee, 2009). The quotation suggests that our respondent was looking for a sense of connection with more globalized images. International sport leagues have become an instrument to achieve this. As the Chinese female respondent stated, global sport brands create an imag- ined global identity using international stars as spokes- men and spokeswomen. Ownership of these global brands' products might offer not only the highest value products but also fulfill the need to attain cultural attachment, such as developing a sense of global citi- zenship.

Hence, consumers in emerging markets choose to buy either Nike or adidas not because of its country of origin, but because they are considered the best vehi- cles for the respondents to demonstrate that they are part of a global community. This functional perspec- tive on global sporting brands as vehicles to achieve a second order goal suggests that they could be substituted with any other global brands not originated in the developing nations, as long as these brands are seen as global brands in the consumers' minds. For example, if the Chinese local sporting brand Li Ning can change its' brand image to become more global,

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our respondents suggest that they are just as likely to buy their brand, as they would buy Nike goods. To illustrate this, a 29-year-old Chinese woman stated:

You know Li Ning started to sponsor some for- eign sport teams since the 2004 Olympics. Now they are sponsoring more and more foreign teams including the Spanish national basketball team. They try to open to the global market... .1 guess some people could even think it's even better than global sport brands.' Consumers' position about the brand...how to say...their perception toward Li Ning has improved [sic].

Perception of use of international labor Most of the Chinese respondents did not appear sensi- tive to labor issues. A 24-year-old Chinese female respondent articulated her opinion on the subject:

I guess Nike will try to solve the issue, I mean the problem, because they are a big company in the world. I guess it will not be a big problem for me to buy Nike product [sic]. Maybe, I will hesitate a little bit but I guess I wül ultimately buy Nike because of my high brand loyalty. A 24-year-old Chinese male respondent expressed a

similar apathetic attitude: "I don't know. I don't care about what Nike is doing with Chinese labor. Sometimes I watched news about what Nike did for Chinese society, but it really does not matter as a con- sumer, [sic]" A 26-year-old Chinese female respondent considered the manufacturing in China as a catalyst for economic development, providing and creating job opportunities:

You know lots of Nike products are manufac- tured in China, which means Nike offers job opportunities. And if I buy Nike product, I feel like I help Chinese people... even if you might think that the wage is low, that's still reasonable pay in China and even it could be lots of money to some- one. . .you know the population in China is really huge and Chinese government try to give everyone jobs. That's a huge challenge. It's hard to make everyone have a job. So it's much better working in Nike factory than their original job, I mean farm- ing or fishing. Their life can be improved. So Nike is really helpful for Chinese economy and poor people. Nike is helping them a lot. No way. If they boycott Nike, lots of people lose their jobs, [sic] Her attitude suggests that while Nike and adidas

have been portrayed in developed nations as unethical companies that profit from local economic circum- stances, consumers in the emerging markets do not share this sentiment. One of our respondents, a 25- year-old Chinese female discussed the labor practices

as unethical, but refused to condemn them, as these practices were seen as necessary evil:

But you should know there's no free lunch. We have to pay something, sometimes. And everything has two sides. I think it is a necessary process for China to become a developed country. These respondents consider their job offers as the best opportunity to escape poverty. It is rather consid- ered to be encouraged as it supplements the Chinese government's role in some way. The Indian consumers in this study were even less

concerned about labor issues and shared an overall positive view towards international labor practices. As a 28-year-old female respondent from India stated: "Yes. I think it's reasonable thing to do. I mean if I spend money for global sport brands, it goes to India society in the end. I mean, ultimately, foreign sport brands create jobs, I mean offer job positions in India, and they are creating revenues in India, [sic] "

Although much criticism has been placed on global sporting companies concerning labor practices, the quotations show that labor issues do not seriously affect consumers' decisions to buy global sporting brands' products. Some interviewees stated that they were not aware of the issue at all, and some of them showed positive views regarding the labor practices.

Paradoxical relationship between COO and COM Following our proposition that being plugged into the global community is more important than the cultural associations with the 'Western world' (see section "A Global Community"), COO appeared to play a mini- mal role for the respondents. As long as a brand was perceived as a global brand, it did not matter much where the brand was from. A 25-year-old Chinese female respondent said, "Chinese people show a strong obsession with famous brands. In China both Nike and adidas are the top level (brands) so they love Nike and adidas, not because it's from Germany or America. I would buy adidas even if adidas came from Italy. I guess the origin of the country does not matter." A 29- year-old Indian male reported a similar opinion, "For a long time, I did not know where adidas came from. I thought adidas might be from America as well. And later on I figured out it's not an American brand. Apparently countries do not affect me. [sic]" A 30- year-old Indian male also reported, "No, I don't care. As long as it's a global brand, I don't care." These respondents give credit to global sport brands' product regardless of its COO. It indicates their belief that if a product is made by a global brand, quality is guaran- teed.

The fact that many of the respondents had no idea what the COO of a certain brand was signaled it was

not seen as very important to them. Several respon- dents called adidas an American brand, while other Western brands of lesser perceived quality were often mistaken for local brands (Tuffs, Bata, etc.). The issue of COM makes this lack of understanding even more salient. Many of the respondents did not understand that the production of a shoes occurred in a different nation. A 25-year-old Chinese male respondent word- ed it as followed: "You know adidas is an international brand. If I buy adidas shoes, I would like to see 'Made in US.'"

Those respondents that did understand that the COO of the brand was often different from the COM of the product, often seemed to develop biases towards certain COMs. A 29-year-old Chinese female put it this way:

I guess I would not buy a certain product that was made in some countries where I have never heard of [sic]. Or if I buy some product and its quality is not so good, then I will check the coun- try of manufacture...It would not affect (my) deci- sion-making process that much. The Indian respondents were more outspoken about

this negative effect of COM. Most of them expressed a dislike of products that were produced in China, and often looked for products that were made in other nations. As a 30-year old Indian male respondent claimed:

I kind of try not to buy products that are made in China. It's hard to find something not-"Made- in-China," but I try to find it. I give more value if the product is made in Vietnam...Normally prod- ucts made in China mostly are not good. I mean at least Chinese products in India are not good [sic]. Yet, despite the knowledge that these global brands

outsourced their production to the emerging markets did not seem to have a strong negative impact on their overall brand image. A 25-year-old Chinese female respondent remarked, "The quality might be the same as long as it has the label of Nike. I guess all Nike prod- ucts are made under the same instruction. Even though products are made in all different countries such as Indonesia, China, and Vietnam, I think quality of Nike products is all the same [sic]." A 26-year-old Chinese female supported this view:

I think it does not really matter. You know that as long as the product is made under the name of Nike I think the quality should be the same. As long as it's Nuce I only care about its design, not a country that a label shows. Nike is good. I actually care about style really a lot [sic]. Despite the fact that the outsource strategies of the

global brands did not seem to hurt their image, it did further negate any positive effects of COO, and ulti-

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 27

mately, provided further support for our proposition that the popularity of global brands is not based in cul- tural Western imperialism, but rather by their ability to connect consumers to a perceived global community.

Discussion The purpose of this study was to examine how con- sumers from emerging markets perceive global sport- ing brands and how a country's transition from a producing nation to a consuming nation affects the attitudes of its citizens towards global brands. We explored several new justifications for purchasing behaviors that have not been alluded to in previous research. While previous research has found that con- sumers in developing countries prefer brands from Western nations (Agbonifoh & Elimminian, 1999; Batra et al., 2000; Wang & Chen, 2004), our respon- dents suggest it is more complicated than that. Although consumers in emerging markets show a strong preference for products made in developed countries, their preferences can be attributed not to the process of cultural imperialism, but to the desire to feel and behave more like global citizens. Hence, we intro- duced the notion that citizens of underdeveloped nations have a strong desire to be global citizens and this desire is manifested by their purchases of sport products of global sporting goods brands. The current preference for Western brands is based on the percep- tion that these Western brands are symbolic of becom- ing part of the global community. In other words, they are currently the most eftective instruments to reach a more ambitious goal (i.e., to become part of the global community). As sport brands from these emerging markets increase their resources and are able to join the competition for sponsorship of notable global sports properties (e.g., Manchester United, FC Barcelona, New York Yankees, Los Angeles Lakers, etc.) it is possible that Western brands might lose their advantage in this perspective.

The current study also sheds new light on the effect of COO and COM on purchasing decisions that has not been examined in previous research. First of all, our respondents suggest that the particular country of origin is of no importance, as long as the nation fits within the classification of a developed nation. If the COO meets this condition, the brand is seen as superi- or, if not, the respondents start to become more ethno- centric about their decision process and the COO is compared to their own nation. In the latter case, COO is important to the consumer. The current global pro- duction economy further convolutes our view on COO, as people within these emerging nations start to discover that the COO of the brand is difterent than the COM of a brand. While we expected that

28 Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly

consumers in these markets would be aware and highly critical of the labor practices of sporting goods compa- nies (Carrigan & Attalla, 2001; Joergens, 2006), this was not the case for our respondents. Either respon- dents did not necessarily care about the ethical con- duct of these global brands, or they had an opposite view on these practices, perceiving them to be benefi- cial to their nations.

For this last finding, we do need to emphasize the limitations of our sample, as the particular characteris- tics of our sample may have provided us with a biased view on the consumer perceptions of global brands within these emerging markets. Even though some of our respondents originated from the middle class, it is not unlikely that due to their current studies at a very notable American university, they are starting to per- ceive themselves as part of the upper class of their respective societies. Others grew up as part of the upper-class (as indicated by the income level of the respondents in Table 1.) As such, it is likely that they represent the cultural views of only the upper class within the society. Both nations that were part of this study are characterized by a stratified class society, with sharp demarcations between each class. As such, it is not surprising they do not feel strongly about any potential unethical conduct within the production process as most likely neither they nor their direct rela- tives are affected by these practices. This does not sug- gest that the subjects do not care about the unethical conduct, yet it might be less salient to them as they do not experience the direct consequences of the labor practices. Hence, our sample may have been represen- tative of the current consumer base of the global brands in each of these nations, yet their perceptions cannot be regarded as representative of the lower class- es within their societies. Consequently, as more and more people within these emerging markets are becoming more affluent and will be able to afford these global brands, we are uncertain they will share the views of our respondents.

Finally, this study was delimited to analyzing the market for sporting goods, and we do not presume that our findings extend to other sport properties such as sport teams, leagues or events. On first glance, it would seem that the Western based sport leagues, teams and events have a much stronger hold on the globalized sport entertainment market, yet recent ini- tiatives such as IPL and the development of profession- al basketball in China (both the CBA and NBA China) suggest that non-Western sport leagues are making inroads in the international sporting scene. Future research should dedicate more attention to the emer- gence of non-Western sport leagues and their effect on sport product branding and sales. Aside from explor-

ing these theories within different settings, future research should also implement a more quantitative approach to test the ideas proposed in this study. While our sample provided us with some interesting notions on how consumers from emerging markets perceive global brands, they are by no means represen- tative of their entire nations. Using a survey technique that could examine a larger sample would be beneficial to this end.

Managerial Implications While the results of this study should be viewed with caution, since the study relied on a limited data set (15 interviews), the respondents presented us with some interesting notions that managers of "Western" based companies should be aware of. Most notably, the proposition that consumers in these emerging markets are buying their products because they are seen as symbolic instruments to express a sense of global citi- zenship is quite different from the existing cultural imperialistic view of Western superiority (Tomlinson, 1991; Arnould, 1989). It signals that being "Western" is not enough to maintain a competitive advantage within these nations, and that the current market lead- ers, such as Nike and adidas are more vulnerable than previously thought. Although these traditional global brands still have an advantage because of years of extensive global marketing, brands from emerging markets could become competitive if they would adopt similar global marketing strategies. For instance, if Li Ning is able to expand on their current sponsorship of global sports properties, they might be able to acquire a more global image, thereby challenging current glob- al brands such as Nike and adidas.

Our respondents suggested that the current labor practices of the global brands did not affect their per- ception of the global brand. While this view might be limited to the current upper classes in both India and China, it is still an important finding for Western brands, as industry observers and academic researchers perceive this to be the main current challenge for Western brands in these nations. Nevertheless, these labor practices do further convolute their image of a global brand. More and more people are starting to become aware of the fact that the global brand is often nothing more than a 'tag' on the product. This means that the global brands are losing their utilitarian advantages over other brands, and although there are significant variances in product quality it is becoming increasingly difficult for established global brands to retain the perception of superior quality. Instead, they will have to rely more and more on the symbolic advantages they offer the consumer. As the economies of the emerging nations continue to become a larger

part of the global economy, sporting good companies need to gain a stronger understanding of what drives the consumptiori of their products. Despite its limited scope, this study presents some interesting notions towards consumer behavior in these nations that require further examination.

If the search for a global community is truly a force behind sporting good purchases, companies should direct more attention to strategies that connect their consumers around the world, further developing their sense of community. Especially the companies founded within these emerging markets could take advantage of these findings and initiate branding strategies that would allow them to develop a global brand image that is competitive with traditional brands such as Nike and adidas. These branding strategies could extend from a traditional focus on sponsorship and celebrity compo- nents to more innovative ways to market their prod- ucts by making use of the unique opportunities the Internet and social media give to grassroots marketing.

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Appendix A. The interview questions

First set of questions 1. What kind of sport do you play? (How often do you play? Whom do you play with?) 2. Do you watch sports? (Have you ever been to any match? Do you regularly watch games on TV?) 3. What kind of sports do you like? 4. What is your favorite sports team? Why do you like the team? 5. What kind of sport apparel do you have? 6. If you play any sports, what kind of sport equipment have you bought for playing sport? 7. Have you bought sporting shoes? What did you buy? Why did you buy? What did you care most about

wben you decided to buy the shoes?

Second set of questions 8. Do you have any preferred sporting brand? 9. Is there a certain reason that you prefer that brand? 10. Could you tell me anything you know about that brand? 11. Do you have any specific image ofthat brand? 12. Do you have any sporting products ofthat brand? 13. What do you care most about when you buy sporting products? 14. Is the price of sporting product important for you? 15. Do you care about the quality of sporting products? 16. Do you care about the design of sporting products? Do you prefer certain colors for sporting products?

Third set of questions 17. When you decide to buy sporting products, do you care about the brand? 18. Do you check 'made in' label of sporting products? 19. Do you care about the country where the sporting product was made? 20. Do you care about which country the global brand belongs to? 21. Could you differentiate between the local sporting brands' products and the global ones? 22. Which brand do you prefer if you have to choose between the local sporting brand and the global sport-

ing brand? 23. Could you explain why you prefer the local sporting brand/the global sporting brand? 24. What do you feel when you buy a foreign brand's sporting product?

Volume 21 • Number 1 • 2012 • Sport Marketing Quarterly 31

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