The role of market and product category characteristics in local versus foreign language branding in Latin America

2022. Management Decision. Vol. 60 No. 5, pp. 1492-1510. https://doi.org/10.1108/MD-10-2020-1414

Pablo Farías N, Luis Torres

Abstract:

Purpose This paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.   Design/methodology/approach Hypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.   Findings Results revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede’s national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.   Originality/value This paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.

Palabras claves: Branding, Foreing language brand names, Product category ccharacteristics, Market characteristics, National culture dimensioons, Foreing languaje proficiency.

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