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Asia Pacific Journal of Marketing and Logistics Cross-cultural influences on brand identity impressions: KFC in China and the United States

Terrence H. Witkowski, Yulong Ma, Dan Zheng,

Article information: To cite this document: Terrence H. Witkowski, Yulong Ma, Dan Zheng, (2003) "Cross‐cultural influences on brand identity impressions: KFC in China and the United States", Asia Pacific Journal of Marketing and Logistics, Vol. 15 Issue: 1/2, pp.74-88, https:// doi.org/10.1108/13555850310765088 Permanent link to this document:

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Cross-Cultural Influences on Brand Identity Impressions: KFC in China and the United States by Terrence H. Witkowski, Yulong Ma, California State University, Long Beach and Dan Zheng, Qingdao University

Abstract

This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in China and the United States. Brand identity was defined as the customer impressions of four different KFC identity elements — properties, products, presentations, and publications. A survey of young consumers in the two countries (n = 795), showed that the Chinese respon- dents were more apt to eat within KFC restaurants, and spend more time do- ing so, than the Americans. The Chinese also had much more positive impressions of KFC than their U.S. counterparts. Brand identity impres- sions were correlated with overall customer satisfaction and with future pa- tronage intentions for both groups, but much more so for the Americans. These findings support a model where differences in cultural frames of ref- erence lead consumers to actively localize the brand identity of this nomi- nally globalized product.

Managerial and Theoretical Issues

Increasingly, companies and their brands need to offer more to consumers than just core products and services. To maintain a competitive edge, they also need to include experiential, sensory, and aesthetic benefits. Ordinary service interactions become experiences when customers are engaged in a personal, memorable way (Pine and Gilmore 1998). Memorability, in turn, depends greatly upon the sensory or aesthetic qualities of the offering. Intel- ligent marketing of sensory experiences should result in higher levels of cus- tomer satisfaction and repeat purchasing. Schmitt and Simonson (1997) contend that good aesthetics management also creates customer loyalty, al- lows for premium pricing, cuts through information clutter, affords protec- tion from competitive attacks, saves costs through standardization, and, as an internal marketing tool, motivates employees. Proper management of ex- periences and aesthetics enhances both corporate identity, an organization’s overall public face, and brand identity, a product’s top of mind awareness or recall (Keller 2001).

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Elizabeth Naumovski
Elizabeth Naumovski

According to Schmitt and Simonson (1997), corporate and brand identity consists of four major elements — properties, products, presentations, and publications - all of which are infused by sensory and aesthetic attributes.

“Basic elements of Properties are buildings, offices, retail spaces, and com- pany vehicles. Basic elements of Products include specific aspects or attrib- utes of the good or service. Presentations are the surroundings of the good, such as packaging, labeling, and tags, or surroundings of the service, such as shopping bags, place settings, napkins, and the appearance of employees. Publications include promotional materials, advertising, business cards, and stationary” (p.61).

The specific (or second-order) identity elements vary considerably from one industry and type of business model to another, and from parent corporations to their different brands. For example, the tangible product ele- ment of a computer manufacturer has little in common with the service offer- ings of an airline or a luxury hotel. Whereas the corporate-level publication element stresses press releases and annual reports, brand publications typi- cally rely upon televised image advertising. Corporate identities are also far more likely to stress the properties element, such as the distinctively shaped Transamerica Pyramid in San Francisco, than are brand identities.

In the case of a fast-food company, the subject of this study, the organi- zation and the brand are one and the same and all four elements contribute to company identity. The following are representative second-order identity elements of a fast-food chain:

· Properties: restaurant façade; color schemes and décor; arrangement of indoor ordering and dining areas; lighting levels; restroom facilities

· Products: menu item names and descriptions; portion size; food appearance, smell, and taste; food ingredients, nutrition, balance, and assortment (snack v. complete meal)

· Presentations: in-store place settings (trays, tableware, napkins); take-out packaging; employee appearance, efficiency, and courtesy

· Publications: consumer advertising; web pages; outdoor signage; in-store promotions; trade characters

All four of these elements have substantial sensory and aesthetic com- ponents, such as color, light, smell, taste, style, and graphic design, that influ- ence what customers experience. It should be noted, however, that conceptual distinctions between these identity elements are not entirely cut and dried. In the case of fast-food and motel chains, for example, buildings (a property element) can be considered a kind of packaging (a presentation ele- ment) for the core product-service offerings (Berg and Kreiner 1990; Hine 1995). Serving the same functions as the packaging of consumer goods, buildings as packages protect, identify, and promote the services taking

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Elizabeth Naumovski
Elizabeth Naumovski
Elizabeth Naumovski
Elizabeth Naumovski
Elizabeth Naumovski

place inside. In fact, U.S. law makes little distinction between packaged buildings and packaged goods. The look and feel of a chain of supermarkets, restaurants, transmission centers, theme parks, or dental offices are pro- tected on the same basis as the design of a box, bottle, can, or tube. Both are forms of “trade dress” and subject to the same protections (Hine 1995).

Managing identity is especially challenging internationally since one or more of the four identity elements typically needs to be adjusted to maxi- mize local consumer response, and yet done in such a way as to not sacrifice the advantages of a global image. International marketers have long realized that products and services frequently must be adapted to the varying needs and preferences of consumers in different countries (Cateora and Graham 2002, pp. 320-324). The goal of marketing management is to create positive identity impressions in the local consumers’ minds, even if this entails some alteration to the company’s global identity expressions. In the fast-food in- dustry, menu offerings are influenced by the prevailing cultural values — Maharaja Macs at McDonald’s India, Teriyaki McBurgers at McDonald’s Japan, and Kosher and non-Kosher restaurants in McDonald’s Israel — and advertising, outdoor signage, and in-store ephemera need to be in the native language. Restaurant architecture frequently incorporates native motifs and global trade characters can take on a local flavor. A Starbuck’s in Shanghai has a Ming Dynasty façade and the entrances of some Chinese KFC restau- rants are guarded by full-size, fiberglass models of Colonel Sanders who, in his Asian reincarnation, looks a little portly like a Buddha. According to former CEO, Jack Greenberg, localization has contributed to McDonald’s worldwide success (Foreign Policy 2001), although some analysts warn that decentralization has become so pervasive that it threatens to undermine the main pillars of the brand — service, quality and cleanliness (The Economist 2001).

On the other hand, global fast-food corporations, like many other multinationals standardize their identity expressions as much as possible to achieve economies of scale in marketing. Restaurant signage, store layouts, color schemes, menu choices, trade characters, and customer service inter- actions are clearly recognizable around the world (for good examples, visit www.mcdonalds.com, which has links to many of its international loca- tions). In McDonald’s case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has be- come a symbol, and to some critics a perpetrator, of overbearing globaliza- tion and even of “American cultural imperialism” (Schlosser 2001). Indeed, standardized identity elements can change local consumer cultures. Watson and his colleagues (1997) found that the introduction of McDonald’s in five East Asian markets (Japan, Hong Kong, Taiwan, South Korea, and China) led to higher prevailing standards of food hygiene and quality control, forc- ing local firms to improve as well. The McDonald’s model also increased consumer acceptance of queuing, individual ordering, self-provisioning of drinks, napkins and flatware, employee-customer equality, and eating with

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hands. These changes in restaurant service interactions do not appear harm- ful, and may even be a positive development, but they do threaten traditional food cultures and those who seek to protect them from foreign influence.

Figure 1 presents a model that links the constructs of globalized and lo- calized identity expressions with the formation of customer identity impres- sions. While maintaining core features of their standard or global identity expressions, companies often find it necessary to modify their offerings to run congruent with local expectations, thereby creating localized identity ex- pressions. Still, managers find it difficult to anticipate and adjust to all nu- ances of local culture. Thus, corporate and brand expressions are invariably perceived through the filter of cultural frames of reference, which include prevailing consumer beliefs, values, norms, customs, lifestyles, competitive standards, and the overall economic situation in the local market. Moreover, consumers themselves actively localize fast-food to meet their own needs. Watson’s team showed how McDonald’s in East Asia served as an after- school hang-out for teenagers, an alcohol-free (and free from overbearing males) refuge for women, and a special place for indulging children. Stated differently, consumers reinterpret “global” products and services, even after market adaptations, to fit their own local frames of reference and cultural practices.

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Research Objectives

This research investigated consumer impressions of KFC brand identity in China and the United States. The purpose is to build theory relevant to global management. The fast-food business is a challenging, but very appropriate topic for brand identity research. The organizational model combines corpo- rate and individual branding with both tangible good and service delivery is- sues. Fast-food restaurants provide memorable experiences, especially for younger customers, that incorporate cheerful informality along with the sen- sory output (odors, tastes) generated by more traditional eating establish- ments. KFC was chosen because it is a well-known brand in the U.S. and, according to a survey by A.C. Nielsen, the most famous international brand in China (People’s Daily Online 2000). Brand names are frequently more important in East Asian countries than in the West. According to Robinson (1995), a single packaged good brand often accounts for 40-50 percent mar- ket share. Furthermore, East Asians trust corporate identities more than in- dividual brand identities (Han and Schmitt 1997).

The first objective was to quantify cross-cultural differences in fast- food consumption behavior. Watson’s (1997) research suggests that the Chinese respondents will be more likely to eat within a KFC restaurant (rather than take food out) and to stay longer per meal than their U.S. coun- terparts. As Yan (2000) puts it, an ancient principle of Chinese culinary cul- ture regards slow eating as healthy and elegant. Since few Chinese own automobiles, take-out is less of an option, and since a KFC meal is relatively more expensive for the Chinese — the equivalent of six hours of work in China versus just an hour at minimum wage in the U.S. (Iritani 2001) — eat- ing there should be a more deliberate undertaking than it is for Americans. Being part of a more communal, less individualistic culture than that of the U.S., the Chinese also will be more likely to eat KFC food with family and friends. Finally, Chinese women should also spend more time in the restau- rant than Chinese men (Watson 1997; Yan 2000).

The second objective was to explore the differences, as well as the similarities, between Chinese and American assessments of KFC brand identity. Despite many outward parallels between KFC restaurants in China and the United States, the literature suggests that this “global” product is still considerably localized from the consumers’ point of view. There should be at least some significant differences in how respondents in the two countries perceive KFC properties, products, presentations, and publications. Yan (2000) concludes that fast-food customers in Beijing find the Western din- ing experience more satisfying than the food. Thus, it was hypothesized that the Chinese should have more positive impressions of KFC presentation and properties than of KFC product elements.

The third objective of the research was to determine how the different brand identity elements and their items predicted overall customer satisfac-

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tion and future patronage, and whether these predictions varied across cul- tures. In their study of service quality in Germany and the United States, for example, Witkowski and Wolfinbarger (2002) found that the relationship be- tween the different components of service quality — reliability, empathy, re- sponsiveness, assurance, and tangibles — and perceptions of overall service quality varied across both cultures and across service settings. In restaurant service, for example, empathy was especially important for Germans. Simi- larly, it was hypothesized that the different elements of KFC brand identity will have varying effects upon overall customer satisfaction and future pa- tronage.

Research Methods

A four-page questionnaire was drafted in English. It gathered information about eating at KFC (how often, time of day, eating in v. take-out, time spent in restaurant, eating alone v. eating with friends or family), overall satisfac- tion and likelihood of visiting again, impressions of the four identity ele- ments (eight items each for property and product, five items each for presentation and publications), and respondent demographics, lifestyle, and consumer aspirations. Care was taken to generate items that would have meaning across both cultures. However, some items were created specifi- cally because of their predicted resonance with the Chinese. For example, Schmitt (1994) and Schmitt and Pan (1994) note that the choice and writing of names is crucial in East Asia due to the idiographic nature, and visual proc- essing, of Chinese, Japanese, and Korean writing. Thus, two items were cre- ated to measure the phonetic readability and sound of the KFC/Kentucky Fried Chicken name (see, also, Huang and Chan 1997). A draft version of the questionnaire was pretested with a group of 17 undergraduate business ma- jors in the U.S. and then revised following their suggestions and those of a Chinese-American business professor.

The survey instrument was translated into Chinese by two native speakers (a female graduate student and a male professor), and then, for a lin- guistic equivalence check, back-translated into English by a third native speaker (also a female graduate student). The two English versions were rea- sonably consistent save for a few small errors that were corrected in the final version. Respondents in either language were able to complete the question- naire in less than 10 minutes.

Data were collected from 385 student respondents from California State University, Long Beach, and from 410 students at Qingdao University in China, during April and May, 2001. Students are a reasonable sample for this study. They appear to be heavy consumers of fast food. They are rela- tively homogeneous across cultures in terms of important demographics — age, education, social background — but still differ in terms of language and cultural frames of reference. Lastly, in both countries, but probably more so in rapidly changing China, they are a bellwether of future consumer trends.

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Only students who had eaten at KFC in the past two years were questioned. In order to get a more “typical” snapshot of American young consumers, the California sample excluded visiting international students. All Qingdao University respondents were Chinese.

Qingdao is a port city of about 2.3 million inhabitants (over 7 million in the metropolitan area) located in Shandong Province about half way be- tween Beijing and Shanghai. The Qingdao KFC management company was established in 1993 and the first restaurant opened in 1995 (eight years after the grand opening in Beijing). There are two KFC restaurants near Qingdao University and eight throughout the entire city. Unlike in the United States, most KFCs in China are owned and managed by a corporate subsidiary; the first Chinese franchise restaurant was opened only in 1993 (Iritani 2001; Trianto 2001). The authors visited several KFC outlets in Qingdao so that their participant observation would enable more informed interpretation of survey results.

Research Findings

Demographic and Behavioral Comparisons

The Chinese students were slightly younger on average (21.3 years) than the Americans (24.7 years), were more likely to be male (65.6% v. 48.6%), and worked only 2.5 hours a week outside of school compared to 24.7 hours a week for their U.S. counterparts. These results appear typical. In China, the great majority of college students come directly from high school and, com- pared to American students in urban, state universities, devote much more time to their academic rather than outside work. Partly because of China’s “one-child” policy, there is a greater than normal proportion of young males in the general population. This bias, combined with traditional attitudes fa- voring the education of sons over daughters, has led to a preponderance of men in Chinese universities. Only about 10% of college-age adults in China get a higher education (Ni 2002).

The Chinese respondents ate at KFC more frequently than did the Americans — 6.8 v. 6.1 visits in the past year. The Chinese were more likely to eat within KFC restaurants (88.6% did v. just 8.3% of the U.S. sample) and, when they did, were much more likely to stay in the restaurant 20 min- utes or more (90.4% v. 41.0% of the Americans who ate inside). The two KFCs near Qingdao University do not have drive-through facilities and vir- tually no Chinese students have automobiles. Since a dinner at KFC is more expensive for the Chinese students than for the Americans, this compara- tively higher cost would seem to encourage less hurried dining behavior. In- terestingly, for those respondents from either country who did eat inside KFC, the percentage dining with friends or family was reasonably close — 69.3% of the Chinese v. 64.5% of the Americans. Finally, 80.0% of the Chi-

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nese, v. 52.6% of the Americans, indicated that they were very or somewhat likely to visit KFC again in the next few months.

In both samples, women were more likely than men to eat at KFC. Whereas Chinese men reported 5.6 visits on average over the past year, Chi- nese women said they ate there on average 9.2 times. Similarly, the Ameri- can men made 5.2 visits, compared to 7.0 times for their female counterparts. For the Chinese, but not for the Americans, women were also more likely to stay more than 40 minutes (32.6%) than were men (21.2%). The Chinese gender differences are consistent with Watson’s (1997) finding that McDonald’s was something of a “safe haven” for Asian women. The fast-food chains do not serve alcohol and, as a consequence, engender more restrained male behavior. KFC is also one of the few restaurants in China that does not allow smoking (Iritani 2001). For the Americans, on the other hand, the higher number of visits by females might result more from family food procurement responsibilities. Many of the U.S. sample female students are married and some have children. Only 2.0% of the American women, versus 1.6% of their male counterparts, stayed more than 40 minutes at KFC.

Brand Identity Analysis and Comparisons

Table 1 shows the item by item comparisons. There were significant differ- ences (p <.01) for 21 out of 26 individual items. In almost all cases, the Chi- nese had a more positive brand impression of KFC than did the Americans. In particular, they gave much higher marks for KFC furniture and décor and restroom cleanliness (property elements) and were much more likely to rate the food as healthy, well-balanced, and made from fresh ingredients (product elements). The Chinese rated KFC service personnel as more efficient, cour- teous, and nicely dressed (presentation elements) and found KFC advertising as more attractive and well done (publication element). These divergent scores support the notion that cultural frames of reference intervene between the corporate expressions and consumer impressions. For example, the authors have observed that KFC restrooms in Qingdao, although still below U.S. standards, are far cleaner than those in competing Chinese chains.

The few items where the two samples generally agreed and there were no significant differences included “KFC food is very tasty,” “it’s a complete dinner,” and “I like the Colonel Sanders trade character.” Other items, such as “KFC food is relatively affordable for me,” have statistically significant differences, but these are not very impressive in terms of the actual numerical averages. Thus, items with no or trivial differences possibly represent the most globalized aspects of KFC brand identity as measured where it counts — in terms of customer impressions.

Of the five most highly rated items by the Chinese, two were property-related elements — “KFC restaurants are kept clean inside” and “KFC restaurants have convenient operation hours” — and three were presentation-related items — “KFC employees wear nice clothes at work,”

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“KFC employees are courteous,” and “KFC employees fill orders effi- ciently.” The items measuring the product element generally received lower ratings. This supports Yan’s (2000) contention about the special allure for the Chinese of the Western, fast-food dining experience. The Americans, in contrast, did not exhibit any such pattern in their responses.

Table 1 also presents Cronbach alpha statistics for the sets of items se- lected to measure each of the four identity elements. The alphas ranged from .813 to .868, indicating a high degree of scale reliability for both the total sample, and for each of the two subsamples. The U.S. sample alphas for property, presentation, and publications were slightly higher than those for the Chinese. For the product scale, the Chinese alphas were a tad higher.

Satisfaction, Future Patronage, and Brand Identity

The Chinese respondents were slightly more satisfied than their American counterparts with going to KFC for food (3.97 v. 3.79, where 1 = very dissat- isfied and 5 = very satisfied) and were more likely to visit again in the next few months (4.03 v. 3.23, where 1 = very unlikely and 5 = very likely). These country differences are significant at p = .001 for satisfaction and p = .000 for intentions. As might be expected, there is a strong correlation between satis- faction and likely to visit in the next few months:r = .308 for the Chinese, .581 for the Americans, and .491 for the overall sample (all significant at p = .000). Note how much larger is the correlation coefficient between satisfac- tion and future patronage for the U.S. respondents.

A bivariate correlation analysis was run among the KFC satisfaction item, likely to visit item, and the 26 brand identity items. Table 2 shows the five brand identity items most highly correlated with satisfaction and with

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likeliness to visit for the Chinese, American, and overall samples. For all three analyses, a product identity element item, “KFC food is very tasty,” was the most highly correlated with satisfaction. For the Chinese, the next three items most highly correlated with satisfaction are all related to the property identity element, followed by a service presentation item, “KFC employees are courteous.” For the U.S. sample, in contrast, the second and third most highly correlated items are also product items, while the fourth and fifth are publication related items about KFC advertising.

Turning to the items most correlated with intentions to visit in the fu- ture, “KFC food is very tasty” remains the most important factor for all groups. For the Chinese, the next two most highly correlated items are prod- uct identity measures, followed by a property element item, and then a publi- cation element item. For the U.S. sample, a product item comes second, then a presentation item, a property item, and, lastly another product item. All of the five highest correlation coefficients, for both the Chinese and American sam- ples, were lower for brand identity and likeliness to visit than for brand iden- tity and satisfaction.

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In addition to the differences in the ranking of items, what is quite ob- vious is how much more highly correlated are the U.S. brand identity items with both satisfaction and likely to visit. For the Americans, the number one item, “KFC food is very tasty,” correlates with satisfaction and likely to visit at, respectively, r = .598 and .523. The comparable coefficients for the Chi- nese are .295 and .249. Less highly correlated items show a similar pattern of much larger U.S. coefficients. Perhaps brand identity is slightly less of a driving force for the young Chinese consumers than it is for their American counterparts.

Conclusions, Limitations, and Future Directions

This research supports the findings about customer behavior at fast-food res- taurants in East Asia (Watson 1997; Yan 2000). Unlike the prior ethno- graphic studies, however, the data herein are entirely quantitative (albeit based upon convenience samples of students) and conclusions are drawn from an explicitly comparative methodology. Confidence in this literature increases when complementary investigative tools replicate results. Never- theless, cross-cultural comparisons need to be interpreted with care since similar outward behaviors may have different cultural foundations. For in- stance, the female respondents in both countries were more likely to visit KFC than were the males, but perhaps for different reasons — as a “safe ha- ven” in China and for family food procurement in the U.S.

Except for a handful of items, the Chinese young consumers in this study had more favorable brand identity impressions of KFC than a compara- ble group of Americans. This persistent scale difference can be explained by differences in the cultural frames of reference. Compared to what too many Chinese eating establishments have been offering in terms of décor, service, and customer amenities, the relatively new KFC restaurants make a very at- tractive alternative. KFC’s modernity and association with American culture may also add to its allure. Finally, KFC in China is a relatively new enterprise still in the “growth stage” of its product life cycle. In the U.S., in contrast, KFC has been around for a while, has generally modest dining facilities, costs the consumer relatively little, and, fairly or not, carries the opprobrium of being unhealthy, high-calorie, high fat “junk food.” Moreover, there are plenty of competing restaurant chains in the U.S. with equal, if not superior, standards.

Another type of cultural influence, a “courtesy bias,” may also contrib- ute to the marked differences in brand impressions across the two samples. Courtesy bias is a nonrandom or systematic measurement error (Baumgart- ner and Steenkamp 2001), which inflates the reported cross-cultural differ- ences. It is possible that the Chinese respondents may have tried to please the investigators by providing the answers they thought were expected of them. They may also have tried to be hospitable toward an America-based fast- food company. All of the questionnaires used the California university letter-

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head in order to lend credibility to the instrument and to be consistent across samples, but this decision may have further communicated a desirable for- eignness to the Chinese respondents.

However, eagerness to please does not explain away the other major cross-cultural differences found by this study, namely, that (1) the Chinese brand identity impressions were consistently less highly correlated with sat- isfaction and with likeliness to visit again than were the American impres- sions and (2) satisfaction was a weaker predictor of future patronage intentions for the Chinese than for the U.S. respondents. Perhaps corporate and brand identity impressions should be more pertinent to the U.S. sam- ple’s satisfaction and future intentions because KFC’s identity expressions are rooted in American culture. Also, the survey instrument was developed in English and pre-tested with young consumers in the U.S., methods which probably imparted an American flavor to the questions and statements, de- spite care in item formulation and translation. In short, the brand identity, satisfaction, and behavioral intentions concepts and measures might fit to- gether better for U.S. respondents because they reflect an American cultural bias.

The much higher correlation coefficient between satisfaction and fu- ture patronage for the U.S. sample (r = .581 versus r = .308 for the Chinese) may have something to do with American individualism versus East Asian collectivism. When American respondents are satisfied with KFC, they are more likely to go again, often by themselves. Personal feelings take prece- dence. The Chinese, in contrast, visit KFC more often as part of a group, which might attenuate the tie between their own feelings and behavior. That is, the group imperative comes before the individual preference. Other fac- tors that potentially attenuate the relationship for the Chinese include af- fordability and lack of personal transportation.

This research provides evidence of both globalization and localiza- tion — similarities and differences across cultures in brand identity impres- sions and in their relationship with both satisfaction and future patronage intentions. Additional data needs to be collected from other national cultures such as Japan, which shares both the U.S. level of economic development and some of China’s collectivist values. This will help separate the influence of cultural beliefs and customs from situational or contextual variables. Fu- ture research also needs to examine in greater detail how factors such as a different aesthetic sensibilities affect the formation of brand identity im- pressions. Finally, international marketing managers need to routinely as- sess the extent to which the corporate and brand identity elements they project are truly globalized — create invariant consumer impressions across cultures — and the extent to which they are localized — create differing con- sumer impressions across cultures.

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