Framing Effect And Consumers’ Preference Reversal On Global And Local Brands: An Empirical Study In Tanzania

Elibramack Joel Elibramack, Wenjing Song

Abstract


This paper explores consumer attitudes towards Global and Local brands on the occurrence of Preference reversal (PR) in Tanzania with the incorporation of framing effect. A model to look at the relationship between the variables was developed to reflect developing countries case. After the model development, data was collected via an online questionnaire. At the end of the online survey, 355 usable questionnaires were generated, and used for the final analysis of data. However, prior to administering the final questionnaire online, a pilot study was done to test the correctness and validity of the questionnaire developed. The results from the pilot study showed that the questionnaire instruments were valid and consequently led to the administration of the final questionnaire. The collected data was analyzed and the results showed that under gain framing, consumers prefer global brands to local brands whereas under loss framing, consumers prefer local brands to global brands. Furthermore, the results showed that under gain framing, the impact of perceived quality on purchase intention was stronger than that of under loss framing. On the other hand, in gain framing, the impact of perceived brand prestige on purchase intention was weaker than that of under loss framing. Additionally, the results show that gain framing, the impact of perceived brand prestige on purchase intention was weaker than that of loss framing. The present study therefore provides conceptual and empirical evidence in support of the notion that both globally and locally perceived brands are appreciated not only for their superior prestige and quality but also because of their preference reversals under gain and loss framing.

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ISSN : 2251-1571