The impact of perceived brand globalness on consumers' willingness to pay

This research replicates the study of Steenkamp, Batra, and Alden (2003) on perceived brand globalness (PBG) and provides a stringent test of their documented effects through (a) considering the impact of PBG on consumers' willingness to pay (WTP), and (b) experimentally manipulating brand globalness. Across four studies, the results suggest that consumers are willing to pay more for global brands as long as their globalness leads to a more favorable brand attitude. Testing a comprehensive set of consumer characteristics as moderators, we find that the increased tolerance towards global brand price premiums is robust across consumer segments.