The impact of corporate endorsement on brand building and credibility : how consumer ethnocentrism and susceptibility to peer influence effect attitudes towards brand alliances and parent brand’s credibility

Abstract

Over the past few years, academic researchers have given importance to brand alliances, given the potential they hold in enhancing brand image (Voss & Gammoh, 2004). In the light of such research, this dissertation aims to explain how consumer ethnocentrism and susceptibility to peer influence have an effect on consumer attitudes. Understanding consumer attitudes allows marketers to develop the products that consumers desire. Literature shows that for ethnocentric consumers, importing and purchasing foreign products can be detrimental to local economy (Yagci, 2001; Supphellen and Gronhaug, 2003). Several empirical studies have shown that consumer ethnocentrism significantly predicts purchase behaviour (Alsughayir, 2013). Barbour, Barbour and Scully (2002) have discussed that a number of young people consider the need for affiliation greater than the need to “do the right thing”. Asch’s experiments (1951) supports this argument, as the experiment has shown that people tend to conform to one another when in groups, but react differently when tested individually. As part of this research study, a survey was carried out using three different scales; Attitude toward the Brand in the Ad, Susceptibility to Peer Influence, and the CETSCALE, to test the impact of consumer ethnocentrism and peer influence on attitude toward brand alliances. The major findings of this study have shown a connection between consumer ethnocentrism and consumer attitudes. Consequently, the researcher is able to accept the alternative hypothesis. On the other hand, research has shown there is no relation between consumer attitudes and susceptibility to peer influence. Hence, the researcher has determined that the hypotheses is null.