The Influence of Brand Origin, Ad Model Nationality and … · 2019. 2. 17. · The Influence of...

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지역산업연구Ⅰ제38권 제2호Ⅰpp. 25 50 The Influence of Brand Origin, Ad Model Nationality and Advertising Appeal on Advertising Effectiveness: Advertisement of Mobile Phones in China * 4)5)6)7)8) Noh, Won Hee ** Yeon, Su Jin *** Wu, Dan **** Song, Young Wook ***** ABSTRACT Chinese mobile phone industry has experienced a rapid growth since its first appearance in the late 1980s. The number of users has exceeded 1 billion since 2012 and this accounts for more than 16.4% of the mobile phone users worldwide. Currently, over 50 mobile phone brands are severely competing in China. In such a competitive market, advertising can be one of the most essential marketing strategies for a firm to differentiate itself from the competitors. This research focuses on the advertising strategy in mobile phone industry and aims to empirically test the influence of the advertising model’s nationality, brand origin, and advertising appeal on advertising effectiveness. More specifically, this delves into the effectiveness of the advertising model’s nationality (foreign nationals vs. local advertising model), brand origin (foreign brand vs. local brand), and advertising appeal (affective appeal vs. rational appeal) on advertising attitude, brand attitude, and purchase intention. The study tested 320 Chinese university students who were asked to compare two brands (Samsung for foreign brand vs. Renovo for local brand) appeared in advertisements (8 different types). The result shows that Chinese respondents prefer Korean brand and Korean models over Chinese brand and models. Two interaction effects (ad model’s nationality X advertising appeal on brand attitude; brand origin X advertising appeal on purchase intention) were found. KeywordsBrand Origin, Advertising Model, Advertising Attitude, Brand Attitude, Purchase Intention, Advertising Appeal * This work was supported by the research grant of Chungbuk National University in 2013. ** Assistant Professor, Department of Business, Korea University([email protected]) *** Ph.D. Candidate, Dept. of International Business, Chungbuk National University ([email protected]) **** Manager. WOOREE Corp, LTD.([email protected]) ***** Corresponding Author, Professor, Dept. of International Business, Chungbuk National University ([email protected])

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Page 1: The Influence of Brand Origin, Ad Model Nationality and … · 2019. 2. 17. · The Influence of Brand Origin, Ad Model Nationality and Advertising Appeal on Advertising Effectiveness:

지역산업연구Ⅰ제38권 제2호Ⅰpp. 25~50

The Influence of Brand Origin, Ad Model Nationality and Advertising Appeal on Advertising Effectiveness:

Advertisement of Mobile Phones in China*

4)5)6)7)8)Noh, Won Hee**․Yeon, Su Jin***․Wu, Dan****․Song, Young Wook*****

ABSTRACT

Chinese mobile phone industry has experienced a rapid growth since its first

appearance in the late 1980s. The number of users has exceeded 1 billion since 2012

and this accounts for more than 16.4% of the mobile phone users worldwide.

Currently, over 50 mobile phone brands are severely competing in China. In such a

competitive market, advertising can be one of the most essential marketing strategies

for a firm to differentiate itself from the competitors.

This research focuses on the advertising strategy in mobile phone industry and aims

to empirically test the influence of the advertising model’s nationality, brand origin,

and advertising appeal on advertising effectiveness. More specifically, this delves into

the effectiveness of the advertising model’s nationality (foreign nationals vs. local

advertising model), brand origin (foreign brand vs. local brand), and advertising

appeal (affective appeal vs. rational appeal) on advertising attitude, brand attitude,

and purchase intention.

The study tested 320 Chinese university students who were asked to compare two

brands (Samsung for foreign brand vs. Renovo for local brand) appeared in

advertisements (8 different types). The result shows that Chinese respondents prefer

Korean brand and Korean models over Chinese brand and models. Two interaction

effects (ad model’s nationality X advertising appeal on brand attitude; brand origin X

advertising appeal on purchase intention) were found.

│Keywords│ Brand Origin, Advertising Model, Advertising Attitude, Brand Attitude,

Purchase Intention, Advertising Appeal

* This work was supported by the research grant of Chungbuk National University in 2013.** Assistant Professor, Department of Business, Korea University([email protected])*** Ph.D. Candidate, Dept. of International Business, Chungbuk National University ([email protected])**** Manager. WOOREE Corp, LTD.([email protected])***** Corresponding Author, Professor, Dept. of International Business, Chungbuk National University ([email protected])

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Ⅰ. Introduction

Chinese mobile phone industry has experienced a rapid growth since its beginning in the late 1980s.

Prior to the 2000s, the production and sales of Chinese mobile phone market was dominated by foreign

firms (Song, 2010). However, due to extensive knowledge transfers, development of local firms’

production capability, and low price local market; current Chinese mobile phone industry is experiencing

hyper competition with more than 50 different brands. Along with fierce competition, its rapid growth

indicates endless potential for Chinese mobile phone market. In 2012, the amount of mobile phone users

in China exceeded 1 billion which accounts for about 16.4% of world’s mobile phone users (Flannery,

2012).

Aligned with the rapid change, the emergence of Chinese local brand, “Xiaomi”, has become a great

threat to many existing foreign mobile phone providers such as Samsung (Flannery, 2014, 2015;

Reisinger, 2014). Samsung, once a top selling mobile phone brand in China (market share of 32.1% in

2013), was shorn of its top market share to the local competitor, Xiaomi, and placed third in line after

Apple in 2014 (Reisinger, 2014). Samsung’s shocking decline and Xiaomi’s emergence became an alert to

the company. This signifies the degree of competitiveness and fluctuations of the market. In such a

competitive market, advertising surely is one of the most crucial marketing strategies and it enables the

mobile phone producers to differentiate their products from the competitors (Kwak, 2005). Thus, the

need for Korean firms (e.g. Samsung and LG) to implement more sophisticated and scientific advertising

policies to compete in Chinese mobile phone market has heightened.

Current research focuses on the role of advertising model (ad model) on the advertising effectiveness,

advertising attitude, and/or purchase intention. The reason why ad models are important in advertising is

that they attract people’s attention and enable firms to change their product image. In the age of

globalization, the decision to use local or internationally well-known advertising model can also be one of

the most central advertising strategies for multinationals. For these reasons, there have been several

research which empirically tested the effectiveness of foreign (non-local) advertising models. However,

there is a paucity of research specific to the advertising effectiveness on the Chinese mobile phone market.

Advertising appeal can be classified into cognitive and affective appeal. Cognitive appeal is based on the

recipients’ logic and self-understanding which lead them to focus on the product’s functions such as

economic value, price, quality, efficiency etc. On the other hand, affective appeal is based on the recipients’

affect and emotion and it stimulates the recipients’ emotions such as happiness, joy, fear, excitement, etc.

Several Studies(Choi and Kim, 2004; Oh, 2003) were conducted on the importance of advertising appeal

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on fashion and sports products. But not much work has been done on the importance of advertising appeal

on the advertising of mobile phones.

Thus, the purpose of this research is to empirically test and observe whether the advertising

effectiveness of mobile phones varies depending on the nationality of advertising model, the type of

advertising appeal, and country of origin of the brand. More specifically, the influences of brand origin

(foreign vs. local brand), ad model’s nationality (foreign vs. local model), and advertising appeal (rational

vs. emotional) on the advertising attitude, brand attitude and purchase intention are explored.

Ⅱ. Literature Review

1. Advertising Model

Advertising is deeply embedded in the culture of our society and individuals’ lives. It is not only used to

increase the awareness of the targeted brand (thus increasing the sale of products or service) but also,

reflects the status and atmosphere of society at the time. According to Richards and Curran (2002),

advertising is “a paid, mediated form of communication from an identifiable source, designed to persuade

the receiver to take some action, now or in the future (p.74).”

Advertising model (ad model) is one of the most important elements in advertising. It provides the

societal value of the advertising products and enables the viewers (consumers) to create emotional feelings

toward the product. The ad model is used to attract viewers’ attention as it enhances the effectiveness of

advertising and persuade the viewers to favor the product (Till and Busler, 2000). Aaker (1991) states that

an image of a brand is more important than its physical attribute or characteristics. For this reason, many

firms try to generate image of their brand which fits their products. The image of an ad model influences

the brand or product image which then increases the trust and preference toward the product or service.

Attributes of the ad model can be dichotomized into public confidence and affinity. Public confidence

refers to reliability and expertise while attractiveness refers to familiarity, attractiveness and preference

(Ohanian, 1991). As with many other nations, celebrity endorsement is a prominent advertising strategy

used in China (Hung et al., 2011). It is “an advertising strategy that should ... create brand equity by

means of the ‘secondary association’ of a celebrity with a brand (Agrawal and Kamakura, p.56, 1995).”

Ample researchers (Muda et al., 2014) proved strong positive impact of celebrity credibility on the

viewers’ attitude toward the advertising and the brand.

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Keeping abreast with the globalization movement, attention increased on the nationality and/or

ethnicity of ad models. Schleifer and Dunn (1969) revealed that Americans prefer American models while

Bush, Hair and Solomon (1979) found no difference in Afro American viewer’s attitude on the advertising

with Afro and Caucasian American model. In contrast, an experiment examined 160 Black adults from a

southeastern city of the US proved that there were more favorable evaluations on advertising with a Black

model as opposed to a White model (Whittler and Spira, 2002). In Martin, Lee and Yang’s (2004)

research on the influence of ad model ethnicity on attitude which compared Asian versus white New

Zealanders, Asians exhibit greater self-referencing of Asian models where greater self-referencing results in

more favorable attitude toward the ad. These research works imply that the viewers of advertising tends to

give more favorable attitude towards advertising with a model of their own race. The influence of ad

model’s race is not applicable for all types of advertising products. A research conducted by Torres and

Briggs (2007), which analyzed the influence of the model’s ethnicity on Hispanic-targed advertising,

showed that the ethnicity matters when it is advertising low-involvement product while ethnicity did not

matter with high-involvement product. While there are some research works which investigated the

influence of model’s ethnicity on the effectiveness of advertising, it seems that there are limited number of

research work which looked into the influence of ad model’s nationality.

2. Advertising Appeal

As most of traditional manufactured products have reached its maturity, it is becoming much more

crucial for the firm to utilize advertising in order to effectively position its products and services. Thus, it

has become more necessary for a firm to utilize aesthetic elements of advertising in order to effectively

position the product or service (Kim, 2012).

Advertising appeal can be divided into two types of rational and emotional appeal. Rational appeal is

emerged when the advertising provides an unique information of the product to the viewers while

emotional appeal refers to the advertising which only provides certain image without detailed information

(Belch and Belch, 2001). Emotional appeal exists when the advertising appeals to the viewers’ emotion,

affect, or values through the message while rational appeal refers to when the advertising tries to attract

the viewers through empirical and/or plausible information or knowledge. Consumers’ (or the viewer’s)

reaction varies depending on the advertising appeal. Emotional appeal is used when the advertisers attract

consumption by appealing the viewers’ emotions or when they focus more on social or psychological needs

than the product itself. In contrast, rational appeal is used by advertisers who try to focus on the viewers’

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practical and functional needs and attract consumption by emphasizing the characteristics and quality of

the product or service (Jang and Han, 2007).

Several research compared the effectiveness of those two distinct types of advertising appeal. However,

it is difficult to generalize and claim which type of advertising appeal is effective than the other as the two

types of appeal are effective in different situation. Emotional appeal can be more effective for stimulating

and transforming the viewers’ affective attitude while rational appeal can be more influential in improving

consumers’ understanding of the product or service.

3. Brand Origin

Traditional research in international business revealed the importance of country-of-origin (COO) in

marketing which affects the way the product or service is perceived by consumers and the degree to which

they are likely to purchase the product or service (Balabanis and Diamantopoulos, 2008). However, due to

globalization movement, it has become much more difficult to tell whether a product is from which

specific country. Majority of products in this era of globalization has different place of production,

manufacture, design, and sales from its headquarters. Thus, the concept of country-of-origin nowadays can

be more misleading and confusing. Instead, growing number of scholars have turned their focus on brand

origin as opposed to country-of-origin which may refer to multiple countries. The definition of brand

origin varies by researcher. Brand origin can refer to the country or place which the brand is strongly

associated with its target consumers (Maden et al., 2015). Balabanis and Diamantopoulos (2008) defined

brand origin as the actual geographical origin of a brand. According to their research, consumers are

limited in their ability to classify correct brands. Other researchers (Merchant and Rose, 2013) used the

term ‘brand heritage’ which they referred as the dimension of a brand’s identity and its early roots which

creates brand associations that potentially enhance brand personality and equity. In this research, we

define brand origin as the place where the origin of the brand is emerged. Current research will use brands

that are quite clear for consumers to classify the origin (i.e. Samsung and Lenovo).

Previous research on relationship between country-of-origin and advertising effectiveness implies that

brand origin or the original place where the brand (or the product) is created have strong influence on the

effectiveness of an advertising. Verlegh et al., (2005) found a direct effect of country of origin on product

evaluation that works as information as well as source variable. According to their study, country of origin

moderates the effect of advertising claims on product evaluations.

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4. Advertising Effectiveness

Scholars in advertising literature generally measure the effectiveness of advertising through brand

attitude and/or purchase intention. In addition, ample research have revealed that the advertising attitude

results in advertising effectiveness. Thus, this research will measure the effectiveness of advertising

through advertising attitude, brand attitude and purchase intention.

Attitude is one of the most important and debatable concepts in marketing function. According to

Ajzen and Fishbein (1977) attitude is an individual’s evaluation of an entity which influences the overall

pattern of his/her response to the entity. Ajzen & Fishbein’s definition can also be applicable in advertising.

Advertising attitude refers to the recipients’ (or the viewers’) favorable or non-favorable response towards

an advertising which emerged from a particular stimulus within the ad (Lutz and Bekh, 1986). Bauer and

Greyser (1968) have already found significant correlation between respondents’ rating of a specific

advertising and their attitude toward the advertising. Advertising attitude consists of cognitive aspect and

emotional aspect, which refers to affective response derived from the ad. Thus, it implies how well the

advertising is made (Kim and Choi, 2004).

Another important factor that needs to be considered when measuring the effectiveness of advertising

is brand attitude. While some scholars contend that advertising attitude influences the brand attitude but

Muehling’s (1987) empirical test revealed that the transfer of affect from ads to brands occurs almost

exclusively for the sponsoring brand which implies that it is necessary to include brand attitude on the

measurement of advertising effectiveness. Brand attitude is consumers’ overall evaluation of the brand. It

refers to an individual’s preference toward a specific brand that is emerged from an advertising as opposed

to the brand itself. Preferable brand attitude will positively impact on product value and quality which

will result in stronger likelihood of continual use of the brand (Myers and Kwon, 2013).

The third important factor that needs to be considered when measuring advertising effectiveness is

purchase intention. Purchase intention refers to consumers’ intention to buy a specific product or service.

It refers to the consumers’ planned behavior of future purchase (i. e., the probability of attitude and belief

that can be turned into the actual purchase) (Engel et al, 2006). Assael (2007) defined purchase intention

as the result of brand evaluation which is the degree of consumers’ desire to purchase a particular brand

from evaluation to achieve maximum level of satisfaction. Lu, Chang, and Chang (2014) defined the term

as a consumers’ willingness to buy a given product at a specific time or situation. Ajzen and Fishbein

(1977) propose that consumers’ attitude will positively influence their purchase intention which will lead

to purchase behavior. According to Zajonc and Markus (1982), advertising influences purchase behaviour

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because it creates and stimulates the consumers’ desire to express themselves.

5. Chinese Mobile Phone Market

China has become second largest economy in the world in 2011, accounting 10% of the world’s

economy (data.eastmoney.com/cjsj/gdf.html). Along with the notable growth in the economy (Song and

Luo, 2010), Chinese mobile phone consumers have grown outstandingly. Especially with the introduction

of smartphone and its rapid rate of diffusion, the product became necessity for many people around the

world including China (Lee et al., 2013; Moretti, 2015). Chinese mobile phone market has experienced

rapid growth both in numbers of subscribers and market size. According to the report published by

Chinese Ministry of Information Industry (MII, 2012), the annual growth rate of Chinese mobile phone

users was 15%. Currently, there are more than 1.25 billion users in China which accounts for about 16%

of the world’s mobile phone subscribers (Statista, 2014).

The market share of mobile device brand was 21.5% Samsung, HTC 15.3%, Nokia 12.7%, Motorola

8.8%, Apple 8.5%, SonyMobile 6.8% in 2012 (互联网消费调研中心, 2012). Samsung’s market share

ranked number 1 until 2013, however, the top seller has replaced suddenly by the local brand, Xiaomi,

making Samsung’s market share ranked 3rd after Apple in late 2014 (Reisinger, 2014). This tendency

proves that China’s mobile phone market is extremely volatile resulting from the emergence of local

producer and this creates threat for many existing foreign (non-Chinese) players.

However, “Korean Wave” movement still has lasting effect on Korean brands as large number of

Chinese consumers still have strong preference toward Korean brands. Most Korean companies such as

Samsung and LG have actually created different brands and brand images which target variety of

segments, benefiting from the Korean Wave (Jang, 2011). Along with the introduction of smartphone

and internet mobile device (tablet PC, smart TV etc.) and increase of Chinese people’s income, Samsung

had vastly increased its market share in China (iimedia research, 2011). But the recent report showing

shocking decline of Samsung’s performance in Chinese market proves that Korean firms should not just

enjoy the benefit of the Korean Wave without constant research and development.

Chinese mobile phone advertising market is experiencing fierce competition. Both local and foreign

brands are using aggressive strategies and various communication tactics to differentiate themselves and

increase its market share. In late 2010, the growth rate of mobile phone advertising broadcast was 84.2%

and the number of advertising agency increased by 11.6% in less than a year (iimedia research, 2011).

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Ⅲ. Research Method

1. Research Model and Hypotheses

Ad models’ expertise and their reliable image can be crucial attributes for functional products such as

mobile phones. Aligning with the argument, empirical research conducted by Feick and Hegie, (1992)

and Lynch and Schuler (1994) proved that consumers’ cognition varies by advertising models’ nationality

for functional products. Thus, consumers’ perception toward advertising or the product (in our case,

mobile phones) will differ depending on the advertising model’s nationality. As mentioned in the literature

review, viewers of advertising tend to show stronger preference towards ad models who resemble more

strongly with themselves. Schleifer and Dunn (1969) revealed that Americans showed stronger preference

on advertising with American models. Martin et al. (2004) explained that the reason for viewers’

favorable advertising attitude with ad model’s of same ethnic background or nationality is due to greater

self-referencing. Align with the literature, Zhou et al. (2015) proved that consumers’ advertising attitude

was less positive with advertising appeals that are culturally incongruent. In addition, Whittler and Spira

(2002) identified strong link between preference toward black ad models with the group of people who

find themselves strongly with black ethnic group. According to their research, individuals who have

stronger identification with black culture had stronger likelihood of purchase, advertisement evaluation,

and product evaluation. Therefore, the viewers of advertising will tend to show stronger positive

evaluation of advertising, advertising attitude, purchase intention, and brand attitude when the ad model

has the same nationality or in the same ethnic group as them. Align with the logic, we propose following

hypotheses:

H1a: Chinese viewers’ advertising attitude will be more favorable when Chinese model (local) appears

in the advertising than Korean (foreign) model.

H1b: Chinese viewers’ brand attitude will be more favorable when Chinese (local) model appears in the

advertising than Korean (foreign)model.

H1c: Chinese viewers’ intention to purchase will be stronger when Chinese (local) model appears in the

advertising than Korean (foreign) model.

The influence of advertising appeal on the advertising effectiveness differs depending on the type of

advertising and other factors. Although it is difficult to predict the influence of advertising appeal on the

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effectiveness of advertising, previous research works may provide guideline to predict the influence of

advertising appeal. Yen and Lin (2010) in their study of measuring the effectiveness of advertisements via

mobile phone, found that emotional appeal had stronger advertising effectiveness with the advertisement

of high involvement products and rational appeal had stronger advertising effectiveness with the

advertisement of low involvement products. In their study, they measured advertising effectiveness

through advertising attitude, brand attitude, and purchase intention. Mobile phone is a good example of

high involvement product. Therefore, we propose following hypotheses:

H2a: Chinese viewers’ advertising attitude will be more favorable for the (mobile phone) advertising

with emotional appeal than rational appeal.

H2b: Chinese viewers’ brand attitude will be more favorable for the advertising with emotional appeal

than rational appeal.

H2c: Chinese viewers’ intention to purchase will be stronger for the advertising with emotional appeal

than rational appeal.

Brand origin, which is a concept derived from country-of-origin, will have strong influence on the

effectiveness of advertising. A research done by Verlegh et al., (2005) revealed that there was

country-of-origin effect in advertising. They found that country-of-origin acts as information cue. Moon

and Jain (2001) claim that the information cue is stereotypical information which advertisers use to

enhance a product’s appeal in advertising. Consumers’ product evaluation is influenced by the information

cue, thus country-of-origin. As it influences consumers’ product evaluation, viewers’ (or consumers’)

perception of brand origin may influence advertising attitude, brand attitude, and purchase intention. In

more recent years, Chinese customers’ preference towards global appeal has increased very much (Choi,

2006). Zhou and Belk (2004) argue that Chinese consumers’ motivation to purchase global product

derived from cosmopolitanism and their desire to show their social status. This shows stronger preference

of Chinese consumers’ toward foreign brands. Based on the logical argument, this research states following

hypotheses;

H3a: Chinese viewers’ advertising attitude will be more favorable for the advertising with Korean

(foreign) brand than Chinese (local) brand.

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H3b: Chinese viewers’ brand attitude will be more favorable for the advertising with Korean (foreign)

brand than Chinese (local) brand.

H3c: Chinese viewers’ intention to purchase will be stronger for the advertising with Korean (foreign)

brand than Chinese (local) brand.

Independent variables of ad model’s nationality, brand origin, and advertising appeal not only provide

impact on advertising effectiveness individually, but also there will be interaction effects among the three

variables. Yen and Lin (2010) found interaction effect of endorser’s (ad model’s) origin and type of

information appeal (advertising appeal) on the effectiveness of advertising where they measured the

effectiveness by advertising attitude, brand attitude, and purchase intention. Interaction effect will not

only exist between ad model nationality and advertising appeal but also among other variables such as

advertising appeal and brand origin; brand origin and ad model’s nationality; and even the combination of

the three. Considering the above, we provide following hypotheses:

H4: An interaction effect of ad model’s nationality and advertising appeal will influence; a) advertising

attitude, b) brand attitude, and c) purchase intention.

H5: An interaction effect of brand origin and advertising appeal will influence; a) advertising attitude,

b) brand attitude, and c) purchase intention.

H6: An interaction effect of brand origin and ad model’s nationality will influence; a) advertising

attitude, b) brand attitude, and c) purchase intention.

H7: An interaction effect among ad model’s nationality, advertising appeal, and brand origin will

influence; a) advertising attitude, b) brand attitude, and c) purchase intention.

2. Operational Definition and Measurement

A total of six variables used in this research – brand country of origin, advertising model nationality,

advertising appeal (3 independent variables), and advertising attitude, brand attitude and purchase

intention (3 dependent variables). Brand country of origin is divided into local vs. foreign brand. We

divide ad model into local model (Chinese citizen) vs. foreign model (foreign national) (Kim, 2005).

Following Bolch et al.’s (1986) classification, we distinguish advertising appeal into emotional and rational

appeal.

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We define advertising attitude as any thoughts and feelings created from advertising and brand

attitude as consumers’ overall evaluation toward the brand. Items measuring the attitude were derived

from Atkin and Block (1983), Shimp (1981), and Homer (1990)’s work.

To measure purchasing intention, we employed test instruments used in Lee and Oh (1999)’s research.

For the questionnaires, we used semantic differential scale to measure the opposite extreme.

3. Research Design

This research conducted an experimental study. In order to assess the difference on the advertising

effect depending on brand country of origin, ad model nationality and advertising appeal, we used

factorial design of 2(brand country of origin: foreign brand vs. local brand) X 2(ad model nationality:

foreign model vs. local model) X 2(advertising appeal: rational vs. emotional appeal). Hence, there were

total of 8 different advertisements (① foreign brand + foreign model + rational appeal ② foreign brand

+ foreign model + emotional appeal ③ local (Chinese) brand + foreign model + rational appeal ④ local

brand + foreign model + emotional appeal ⑤ foreign brand + local model + rational appeal ⑥ foreign

brand + local model + emotional appeal ⑦ local brand + local model + rational appeal ⑧ local brand

+ local model + emotional appeal)

The experiment was conducted with total of 327 Chinese locals who reside in Jinan(济南), Nanjing(南

京), Yangzhou(扬州), Suzhou(苏州), Hangzhou(杭州) and Guangzhou(广州) area. Excluding responses

with low reliability, 320 final usable data was utilized for the analysis.

For the selection of products used in the experiment, we chose Samsung (top Korean brand in China)

for foreign brand and Lenovo (Chinese brand that has shown relatively stable performance in the market)

for local brand. For advertising model, Rain (Korean pop singer and actor who is widely well-known in

China) for model with foreign nationality and Chinese pop singer and actor, Lee-Hom Wang (王力宏) for

local model.

Taking those into account, we created 8 different virtual advertisements. Examples of the

advertisement are shown in Figure 1.

Respondents were required to look at the 8 advertisements for 10 seconds and asked to answer the

questionnaires about advertising attitude (5 questions), brand attitude (5 questions)and purchase intention

(3 questions).

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[Figure 1a] [Figure 1b]

Foreign Brand X Foreign Model

X Rational Appeal

Local Brand X Local Model

X Emotional Appeal

<Figure 1> Examples of Advertisement Used in the Experiment

Ⅳ. Analysis and Results

Among 320 respondents, 60% were females and 57% were aged less than 25 years and 43% were aged

more than 26 years. The education level of the respondents was 12.5 % under high school diploma,

12.2% with college graduate, 21.3% graduate and 48.8% post-graduates. For income level, 14.4% of the

respondents have monthly income of less than 1,000 yuan, 35.3% with monthly income level between

1,000 and 2,500 yuan, 38.1% with monthly income level between 2,500 and 5,000 yuan, and 12.2%

with income level of higher than 5,000 yuan per month.

Explanatory factor analysis was conducted in order to test the reliability of the dependent variables (See

Table 1). The five measurement items for brand attitude had Cronbach’s value of 0.929, five items

measuring advertising attitude had value of 0.93 while Cronbach’s for 3 items measuring purchase

intention was 0.903.

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<Table 1> Exploratory Factor Analysis result for reliability and validity

Items Elements

Cronbach's 1 2 3

Brand Attitude4 .857 .198 .064

0.929

Brand Attitude3 .853 .227 .106

Brand Attitude1 .834 .140 .195

Brand Attitude5 .830 .201 .205

Brand Attitude2 .822 .228 .199

Advertising Attitude3 .194 .838 .147

0.930

Advertising Attitude1 .213 .825 .141

Advertising Attitude2 .247 .813 .080

Advertising Attitude4 .175 .796 .205

Advertising Attitude5 .236 .794 .191

Purchase Intention2 .251 .225 .829

0.903Purchase Intention1 .218 .129 .826

Purchase Intention3 .198 .237 .805

Next, ANOVA analysis was conducted in order to test the hypotheses. Manipulation check was

conducted through post hoc test in ANOVA. The test revealed that the three groups are statistically

different among each other.

1. Influence on the Advertising Attitude

For foreign (Korean) brand, advertising with emotional appeal (local model M=5.16, foreign model

M= 5.67) was more effective than rational appeal (local model M=4.38, foreign model M= 5.54) for

both local and foreign model. In contrast, for local (Chinese) brand, local model was more effective with

rational appeal (M=4.58) than emotional appeal (M=4.41) while foreign model was more influential with

emotional appeal (M=4.83) than rational appeal (M=4.80).

For the advertising attitude, the main effect of brand country of origin (F=13.623, p < 0.0001) had

significant difference but the direction of the influence was opposite from our prediction. Through the

literature review, the authors predicted that Chinese viewers will have more positive attitude toward

advertising with advertisement showing Chinese (local) model but the result was the exact opposite. This

result can be very interesting finding that contradicts with previous literature.

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38 지역산업연구|제38권 제2호|2015.5

The main effect of ad model nationality on advertising attitude (F=15.879, p <0.0001) had significant

effect but not with advertising appeal. Therefore, H3a) was accepted while H2a) was rejected. As shown

in Table 2, there were no significant interaction effects influencing advertising attitude. Thus, we reject

H4a), H5a), H6a), and H7a).

<Table 2> Test Results for Advertising Attitude

Source Sum of Squares

Degrees of Freedom

Average Square

F Significance

Adjusted Model 67.659 7 9.666 5.777 >.0001

Brand Origin 22.791 1 22.791 13.623 >.0001

Type of Advertising Appeal 3.003 1 3.003 1.795 .181

Ad Model’s Nationality 26.565 1 26.565 15.879 >.0001

Brand Origin X Type of

Advertising Appeal5.356 1 5.356 3.201 .075

Brand Origin X Ad Model’s

Nationality5.253 1 5.253 3.140 .077

Type of Advertising Appeal X Ad

Model’s Nationality1.035 1 1.035 .619 .432

Brand Origin X Type of

Advertising Appeal X Ad

Model’s Nationality

3.655 1 3.655 2.185 .140

Error 521.981 312 1.673

Sum 8333.720 320

Adjusted Sum 589.640 319

2. Influence on the Brand Attitude

For foreign brand, the use of local model was more effective with emotional appeal (M=5.65) than

rational appeal (M=5.06) while foreign model was more effective with rational appeal (M=5.75) than

emotional appeal (M=5.67). As with local brand, local model was more appealing with emotional appeal

(M=4.78) than rational appeal (M=4.51) while foreign model was more appealing with rational appeal

(M=5.06) than emotional appeal (M=5.06).

As shown in Table 3, the main effect for brand country of origin (F=31.567, P < 0.0001) was

statistically significant but the type of advertising appeal was not significant. Thus, we accept H3b) but

reject H2b). Similar with the influence on advertising attitude, the main effect of ad model nationality

(F=4.562, P= 0.034) on brand attitude was significant but the direction was the opposite to our

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prediction. In H1b), we predicted that Chinese viewers’ attitude toward brand will be more positive if the

advertising has Chinese (local) model as opposed to Korean (foreign) model. However, the actual test

result showed that Chinese people’s attitude toward brand increased when they saw an ad with Korean

(foreign) model as opposed to local Chinese model.

For the interaction effect, the combination of advertising appeal and ad model nationality (F=5.674,

p=0.018) showed statistically significant influence on brand attitude. Thus, we accept hypothesis, H4b).

In contrast, we reject H5b), H6b), and H7b) as the test result was not statistically significant.

<Table 3> Test Results for Brand Attitude

Source Sum of SquaresDegrees of

Freedom

Average

SquareF Significance

Adjusted Model 66.204 7 9.458 6.254 >.0001

Brand Origin 47.741 1 47.741 31.567 >.0001

Type of Advertising Appeal .882 1 .882 .583 .446

Ad Model’s Nationality 6.844 1 6.844 4.562 .034

Brand Origin X Type of

Advertising Appeal1.861 1 1.861 1.230 .268

Brand Origin X Ad Model’s

Nationality.288 1 .288 .190 .663

Type of Advertising Appeal X

Ad Model’s Nationality8.581 1 8.581 5.674 .018

Brand Origin X Type of

Advertising Appeal X Ad

Model’s Nationality

.008 1 .008 .005 .942

Error 471.858 312 .008

Sum 9000.560 320

Adjusted Sum 538.062 319

3. Influence on Purchase Intention

For foreign brand, emotional appeal (local model M=5.05, foreign model M=5.00) was more effective

than rational appeal (local model M=4.47, foreign model M=4.01). In contrast, for local brand,

emotional appeal (M=4.07) was more effective than rational appeal (M=3.74) for local model while

rational appeal (M=3.84) was more effective than emotional appeal (M=3.35) for foreign model.

As shown in Table 4, brand origin is the only independent variable which had statistically significant

influence on purchase intention (F=23.637, p<0.0001). Thus, we accept H3c) but reject H1c) and H2c).

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40 지역산업연구|제38권 제2호|2015.5

This implies that brand origin is the only source that can directly give influence on the viewers’ intention

to purchase advertised product or service.

Although advertising appeal did not have direct impact on the purchase intention, it had statistically

significant interaction effect when combined with brand origin (F=5.168, p=0.024). Hence, we accept

H5c) and reject H4c), H6c), and H7c).

<Table 4> Test Results for Purchase Intention

Source Sum of SquaresDegrees of Freedom

Average Square F Significance

Adjusted Model 101.656 7 14.522 5.297 >.0001

Brand Origin 64.800 1 64.800 23.637 >.0001

Type of Advertising Appeal 9.112 1 9.112 3.324 .069

Ad Model’s Nationality 5.513 1 5.513 2.011 .157

Brand Origin X Type of Advertising Appeal

14.168 1 14.168 5.168 .024

Brand Origin X Ad Model’s Nationality

.168 1 .168 .061 .805

Type of Advertising Appeal X Ad Model’s Nationality

1.089 1 1.089 .397 .529

Brand Origin X Type of Advertising Appeal X Ad

Model’s Nationality6.806 1 6.806 2.482 .116

Error 855.322 312 2.741

Sum 6601.778 320

Adjusted Sum 956.978 319

4. Interaction Effects

Current research reveals the interaction effects among independent variables in their influence toward

dependent variables of advertising attitude, brand attitude and purchase intention. While we hypothesized

12 different hypotheses regarding interaction effects, there were only two hypotheses that showed

statistical significance. While there were no interaction effects influencing advertising attitude, brand

attitude and purchase intention were respectively influenced by the interaction effects of advertising

appeal and ad model nationality; and advertising appeal and brand origin. Important thing to note is that

advertising appeal did not have direct influence on any of the dependent variables but had significant

interaction effects on brand attitude and purchase intention when combined with ad model nationality

and brand origin. Although type of advertising appeal does not directly influence the advertising

effectiveness, it can provide significant degree of influence on the effectiveness when combined with brand

origin and ad model nationality. Figure 2a and 2b show the two interaction effects that proved statistical

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significance.

In Figure 2a, foreign (Korean) model provides more positive impact on brand attitude for rational

advertising appeal. As shown in the figure, brand attitude will be increased when using Korean model

with rational appeal (M=5.4) (as opposed to emotional; M=5.178) or using Chinese model with

emotional appeal (M=5.213) rather than rational appeal (M=4.78).

Figure 2b suggests that Korean (foreign) brand had stronger influence on purchase intention when it is

advertised with emotional appeal (M=5.03) than rational appeal (M=4.271). In contrast, Chinese (local)

brand experienced relatively higher influence on purchase intention when it is advertised with rational

appeal (M=3.792) than emotional appeal (M=3.708).

<Figure 2a> Interaction Effect 0f Ad Model’s Nationality and Advertising Appeal on Brand Attitude

<Figure 2b> Interaction Effect 0f Advertising Appeal and Brand Origin on Purchase Intention

<Figure 2> Statistically Significant Interaction Effects

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Ⅴ. Conclusions

This research analyzed the influence of advertising appeal, brand origin and ad model’s nationality on

the effects of mobile phone advertising in China. The research has following conclusions.

First, interesting results were found from the main effect of ad model’s nationality on advertising

attitude and brand attitude. Previous literature indicated that viewers’ of advertising have shown tendency

of having stronger positive evaluation of advertising, advertising attitude, purchase intention, and brand

attitude when the ad model has the same nationality or in the same ethnic group as them. In contrast, the

result of the research showed that Chinese respondents have shown that having Korean model or

advertising Korean brand (over Chinese) provide statistically significant positive influence toward

advertising attitude and brand attitude. Nevertheless, it did not have significant impact on purchase

intention. This shows that having Korean model in advertising may increase the attitude toward brand or

advertising but does not lead to intention to purchase.

Second, advertising appeal did not have any significant major influence on any of the dependent

variables (i.e., advertising attitude, brand attitude, and purchase intention). Nonetheless, there were

statistically significant interaction effects when it combines with other independent variables. Advertising

appeal had significant interaction effect with ad model’s nationality on brand attitude; and had significant

interaction effect with brand origin on purchase intention. Thus, advertising appeal can lead to purchase

intention or improvement on brand attitude when the company implements its advertising strategy well

that suits their brand type and situation.

Last, brand origin had statistically significant influence on all of the dependent variables of advertising

attitude, brand attitude and purchase intention. Specifically, Chinese respondents were more favorable

toward Korean brand. This proves the statistical importance of brand origin in advertising effectiveness.

This research had several implications. First, the nationality of advertising model influences not only

the brand attitude and advertising, but also it has the interaction effect with advertising appeal. Korean

model seemed to be relatively more favored than the local model.

Second, the interaction effect for advertising appeal and brand country of origin had positive influence

on purchase intention. For Korean brand, emotional advertising appeal was more attractive to Chinese

consumers. As for Chinese brand it was more effective to appeal its consumers with rational appeal.

Third, brand origin has statistically significant impact on all of its dependent variables. This shows that

Chinese respondents are generally more favourable toward Samsung brand and implies that it is important

to maintain its brand image.

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Although this research provides great amount of contribution, it is not without limitations. The

research has following limitations.

First, the experimental advertisements that were used in this research used celebrity models and

well-known brands for the comparison. It fails to control the possible existence of extraneous variables as

the respondent’s choice might be influenced by their preference toward the model himself as opposed to

his nationality. Further research can be conducted with the control of possible extraneous variables.

Second, this research focuses solely on Chinese consumers living in urban areas. It will also be

interesting to look into ethnic minority and/or Chinese living in rural area.

Third, this research only compared Chinese brand with Korean brand; however, China has a lot of

different brands originated from many other countries. Future research comparing brands originated from

other nations such as Japan, US, UK, Finland and more can be conducted. By including brands and

models from other countries, we will be able to see whether the reasons for Chinese respondents’

preference toward Korean brand and Korean model. We will be able to see whether Chinese prefer

Korean products and models or “foreign” products and/or models.

Fourth, correlations among the three dependent variables were significant so it would have been better

to conduct the research with MANOVA or MANCOVA.

■ 논문투고일 ■ 논문 최종심사일 ■ 논문게재확정일

2015. 03. 032015. 04. 272015. 05. 18

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48 지역산업연구|제38권 제2호|2015.5

국문요약

브랜드 국적, 광고모델 국적, 광고 소구 유형이 광고 효과에 미치는 영향 - 중국에서의 휴대폰 광고 -

노원희 (Noh, Won Hee)*․연수진 (Yeon, Su Jin)**․

오단 (Wu, Dan)***․송영욱(Song, Young Wook)****

1980년대 말 중국에서 첫 휴대폰이 등장한 이후 중국의 휴대폰 산업은 지속적인 고속

성장을 유지하였다. 2000년대 이전까지는 중국내 휴대폰 생산 및 판매에 있어서 외국기

업이 독점적 지위를 유지하였으나, 2000년대 이후 중국 업체의 생산기술 향상과 중국 내

저가 내수시장의 성장으로 여러 기업 간 경쟁도 매우 치열한 상황이다. 이런 상황에서 광

고는 중요한 마케팅 수단으로서 다변화된 시장 환경 속에서 기업은 타 경쟁사와의 차별

화할 수 있는 다양한 전략 중 가장 대표적인 활동이다. 따라서 중국 휴대폰 업계에서는 과

학적이고 전문화된 광고 정책에 대한 필요성이 점점 더 높아지고 있는 상황이다.

본 연구는 중국 휴대폰 시장의 브랜드 국적에 따라 광고모델의 국적과 광고소구가 광

고에 대한 태도, 브랜드에 대한 태도와 구매의도 등 광고효과에 미치는 영향력을 검증하

였다. 320명의 중국 대학생을 대상으로 삼성(외국브랜드)과 레노보(자국브랜드) 제품을

대상으로 총 8개의 광고물을 제작한 연구를 실증, 실험했다. 그 결과 한국브랜드에 대한

중국소비자의 광고태도가 중국브랜드에 대한 태도보다 더 높은 것으로 나타났고, 한국모

델을 중국모델보다 더 선호하는 것으로 나타났다. 그리고 휴대폰의 이성적 소구광고에서

한국모델이 중국모델보다 브랜드태도가 더 긍정적인 것으로 나타났다. 마지막으로 중국

소비자는 한국브랜드에 대해서 중국브랜드보다 더 높은 구매의도를 보이는 것으로 나타

났는데, 특히 한국브랜드의 경우 감성적 소구광고에서 이성적 소구광고보다 더 높은 구

매의도를 보이는 것으로 나타났다.

│주제어│ 브랜드 국적, 광고모델 국적, 광고소구 유형, 광고효과, 브랜드태도, 구매의도

9)10)11)12)

* 주저자, 고려대학교 경영학부 조교수([email protected])** 공동저자, 충북대학교 국제경영학과 박사과정([email protected])*** 공동저자, 중국 양주 우리전자 물류팀 Manager([email protected])**** 교신저자, 충북대학교 국제경영학과 교수([email protected])

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The Influence of Brand Origin, Ad Model Nationality and Advertising Appeal on Advertising Effectiveness: Advertisement of Mobile Phones in China|Noh, Won Hee ․ Yeon, Su Jin ․ Wu, Dan․Song ‧ Young Wook 49

1. 주저자

노 원 희(Noh, Won Hee) : [email protected]

고려대학교 경영학부 조교수로 재직하고 있으며, 연구 분야로는 유통경로

관리 및 소매경영, 프랜차이즈관리 등이 있다.

2. 공동저자

연 수 진(Yeon, Su Jin) : [email protected]

뉴질랜드 University of Auckland에서 Bachelor of Commerce와 국

제경영학 석사 (Master of International Business) 학위를 취득하였다.

충북대학교 국제경영학과 박사과정을 수료하였으며 원어민 강사로써 국제

경영원강 및 비즈니스영어회화 등을 강의하고 있다. 주요 관심분야는 이문

화연구, 국제마케팅, 국제소비자행동, Marketing Theory 등이며 Asian

Journal of Technology and Innovation(SSCI), 국제경영리뷰 등에 논

문을 발표하였다.

3. 공동저자

오 단(Wu, Dan) : [email protected]

충북대학교 국제경영학 석사학위를 취득하고, 현재 중국 양주 우리전자

물류팀 매니저로 근무하고 있다. 양주대학교 한국어과와 대불대학교 한국

어교육학과를 졸업하고 충북대학교 국제경영학과 석사과정에서 국제마케

팅을 전공하였다. 관심연구 분야는 광고의 효과이다.

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4. 교신저자

송 영 욱(Song, Young Wook) :[email protected]

현재 충북대학교 국제경영학과 국제마케팅 전공 교수로 재직 중이며, 연세대

학교에서 경영학 박사, Miami University (Ohio)에서 경영학 석사학위를 취

득하였다. SK Telecom 해외사업본부, 전략기획실, J.Walter Thompson

전략기획실 등 글로벌 기업에서 국제마케팅관련 업무를 담당했다. 주요관심분

야는 국제마케팅, 유통 등이며 국제경영연구, Telecommunications

Review 등 다수의 논문을 게재했다.