How Product Category Shapes Preferences toward Global and Local Brands: A Schema Theory Perspective. Vasileios Davvetas and Adamantios Diamantopoulos

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1 How Product Category Shapes Preferences toward Global and Local Brands: A Schema Theory Perspective Table 1: Sample descriptives across studies Vasileios Davvetas and Adamantios Diamantopoulos WEB APPENDIX Study 1 Study 2 Gender Female: 54.6% Female: 38.4% Age: M (SD) (14.7) 25.4% 27.1% 16.9% 16.9% 13.9% 32.3 (10.6) 28.9% 40.3% 19.2% 7.0% 4.6 % Nationality Profession Location Education Austrian: 77.6% Other: 22.4% NA City: 78.5% Rural Area: 21.5% NA Slovakian: 100% Student: 19.7% Employee: 55.9% Self-employed: 19.2% Pensioner: 2.7% Unemployed: 2.4% NA Basic/High school: 50.6% University: 45.1% Masters/PhD: 4.3% N Notes: The sample distribution in terms of gender, age and location roughly approximates that of the national population as described by the respective country s National Statistical Office. NA: not available

2 Table 2: Description of real brands used in Study 1 Study 1 Global Brand Local Brand Real Distribution (PBG) Distribution (PBG) Name Origin Name Origin Brands Pre-test Main Study Pre-test Main Study Beer Heineken Foreign 4.68 (.89) 5.72 (1.65) Ottakringer Domestic 2.18 (1.20) 2.40 (1.16) Coffee Segafredo Foreign 5.19 (1.42) 5.10 (1.21) Julius Meinl Domestic 3.47 (1.57) 3.63 (1.70) Chips Pringles Foreign 4.83 (.50) 5.59 (1.21) Kelly s Domestic 3.61 (1.38) 4.45 (2.01) Headsets Philips Foreign 4.32 (1.23) 6.14 (0.78) AKG Domestic 3.50 (1.39) 3.88 (1.74) Motorbike Yamaha Foreign 4.71 (.59) 6.15 (1.23) KTM Domestic 3.68 (1.16) 4.67 (1.79) Furniture Ikea Foreign 4.83 (.60) 6.29 (1.10) XXXLutz Domestic 2.57 (1.08) 2.96 (1.71) Note: Origin designation as foreign/domestic is based on objective information rather than pre-tested consumer perceptions. Main study figures refer to means (standard deviations) on a 7-point PBG scale (midpoint 4). Pre-test figures refer to means (standard deviations) on a 5-points PBG scale (midpoint 3) with the exception of coffee brands where 7-point scale was used. All pairwise comparisons within categories yield significant differences (p <.05) both in the pre-tests and in the main studies. Table 3: Pre-test results for Study 2 fictitious brand stimuli Global Ad Local Ad t (p) Laptop bag 4.04 (1.12) 2.89 (1.50) (.013) Chocolate bar 4.19 (1.72) 2.49 (1.17) (.000) Shower gel 4.58 (1.29) 2.15 (1.07) (.000) Ski equipment 4.35 (1.50) 2.41 (1.45) (.000) Tablet PC 4.75 (1.02) 2.40 (1.38) (.000) Note: Means (Standard deviations) on 7-point PBG scale.

3 Table 4: Manipulation Checks per product category (Study 1) Category Global brand Local brand Beer Heineken Ottakringer Coffee Segafredo Julius Meinl Chips Pringles Kelly s Headsets Philips AKG Real Brands Fictitious Brands PBG global PBG local t, p Attributes PBG global PBG local t, p 5.72 (1.65) 5.10 (1.21) 5.59 (1.21) 6.14 (0.78) 2.40 (1.16) 3.63 (1.70) 4.45 (2.01) 3.88 (1.74) t=10.67 t=5.93 t=3.71 p=.003 t=8.54 Motorbike Yamaha KTM t=5.89 (1.23) (1.79) Furniture Ikea XXXLutz t=11.15 (1.10) (1.71) Note: All items measured on 7-point scales. Standard deviations in parentheses. Taste, volume, alcohol, packaging Weight, beans type, aroma, roast type Weight, calories, flavor, fat Range, cable length, noise cancellation, device compatibility Cylinders, engine type, cubic capacity, fuel tank volume Assembly/Room type, extra services, opening hours 5.70 (1.49) 5.77 (1.50) 6.13 (1.04) 5.97 (1.52) 6.03 (1.49) 5.93 (1.27) 2.23 (1.21) 2.34 (1.38) 1.90 (1.25) 1.87 (0.91) 2.01 (1.37) 2.03 (1.27) t=9.96 t=10.32 t=14.35 t=16.13 t=12.55 t=12.01 Table 5: Manipulation checks per product category (Study 2) PBG global PBG local t p Chocolate bar 4.89 (1.12) 3.00 (1.12) Laptop bag 4.22 (1.44) 3.46 (1.23) Ski equipment 4.61 (1.38) 2.82 (1.41) Shower gel 4.90 (1.18) 2.72 (1.04) Tablet PC 4.64 (1.58) 3.67 (1.38) Total 4.65 (1.37) 3.14 (1.29) Note: PBG measured in 7-point scale. Standard deviations in parentheses.

4 Table 6: Descriptive Statistics and Correlation Matrix across studies Study 1 (Austria) Descriptives and Measurement Correlation Matrix M SD CR AVE α RISK UH SIGN VIS GBSC RJUST RNEXP FJUST FNEXP RCHOICE FCHOICE RISK UH NA NA NA SIGN ** VIS NA NA NA GBSC ** ** RJUST *.118 * ** 1 RNEXP *.171 ** **.635 ** 1 FJUST * * **.379 **.280 ** 1 FNEXP *.134 *.445 **.372 **.460 **.655 ** 1 RCHOICE NA NA NA ** **.568 **.510 **.214 **.256 ** 1 FCHOICE NA NA NA.116 * **.453 **.332 **.255 **.576 **.494 **.337 ** 1 Study 2 (Slovakia) Descriptives and Measurement Correlation Matrix Global brand model Local brand model M SD CR AVE α VIS UH GBSC NEXP JUST PI VIS UH GBSC NEXP JUST PI VIS UH NA NA NA * ** 1 GBSC * NEXP ** 1 JUST **.297 ** ** ** 1 PI **.308 ** *.460 **.410 ** 1 Notes: All constructs measured in 7-point scales, NA: not available, p <.10, * p <.05, ** p <.01, *** p <.001 (one-tailed). Discriminant validity is established, because in all construct pairs squared correlations are always lower than the respective AVEs.

5 Table 7: Measurement Invariance tests for GBSC Model 1 Unconstrained loadings Model 2 Constrained loadings χ df 1 3 p CFI RMSEA SRMR Δχ 2 Δχ 2 = 5.472, df = 2, p =.065

6 Table 8: Exploratory Factor Analysis (EFA) with all constructs (Study 1) Study 1 EFA Factor UH VIS RISK RISK RISK RISK SIGN SIGN SIGN GBSC GBSC GBSC RJUST RJUST RJUST RJUST RNEXP RNEXP RNEXP RCHOICE FJUST FJUST FJUST FJUST FNEXP FNEXP FNEXP FCHOICE Notes: Pattern matrix after oblique rotation. All extracted factors have Eigen values above 1.

7 Table 9: Exploratory Factor Analysis (EFA) with all constructs (Study 2) Study 2 Factor EFA UH VIS VIS VIS GBSC GBSC GBSC JUST JUST JUST JUST NEXP NEXP NEXP PI PI PI Notes: Pattern matrix after oblique rotation. All extracted factors have Eigen values above 1.

8 Table 10: Effect comparisons (Full sample vs. Only Austrians sample) (Study 1) Hypothesized Paths Study 1 (All) Study 1 (Only Austrians) RISK GBSC ** * UH GBSC * * SIGN GBSC * * VIS GBSC Real Brand Model GBSC JUST *** *** GBSC NEXP ** * JUST CHOICE *** *** NEXP CHOICE ** *** Fit χ 2 =42.41, p=.003, RMSEA=.062, CFI=.982, SRMR=.033 χ 2 =32.06, p=.042, RMSEA=.051, CFI=.986, SRMR=.028 Fictitious Brand Model GBSC JUST *** *** GBSC NEXP *** *** JUST CHOICE *** *** NEXP CHOICE * * Fit χ 2 =46.69,, RMSEA=.074, CFI=.966, SRMR=.048 p <.10, * p <.05, ** p <.01, *** p <.001, one-tailed tests for hypothesized paths χ 2 =43.56,, RMSEA=.079, CFI=.959, SRMR=.050

9 Study 2 stimuli Laptop bag Chocolate bar Shower gel Ski Equipment Tablet PC