Consumer Global Orientation and Its Impact on Consumers ’ Positive Emotions

S A R I P A T I Vol. 11 | No. 2 ISSN: 2089-6271 | e-ISSN: 2338-4565 | https://doi.org/10.21632/irjbs

The objective of this study is to examine the role of consumer global orientation and the inferior image of foreign brands in young, educated consumers' admiration for foreign brands and their willingness to pay more for foreign brands.The sample of this study was used students of the University of Mataram.Data collected in a classroom at the end of lecture by using a carefully developed instrument that has been carefully developed and well validated.Its findings suggest that consumer global orientation and the inferior image of local brands have no direct effect on consumers' willingness to pay more for foreign brands.Nonetheless, they do indirectly affects consumer intentions by creating positive emotions about foreign brands.This positive emotion, i.e. foreign brand admiration, seems to have a critical role, as it fully mediates the effects of the two constructs.Consumer global orientation and the inferior image of local brands nurture consumers' positive views of foreign brands, which in turn increase consumer willingness to pay higher prices for foreign brands.This study also conceptualizes consumer global orientation and provides the essential recommendations for future research.

INTRODUCTION
The development of information technology has created greater opportunities for consumers to learn about global brands and their products.Previous studies in developing countries have shown that consumers have a strong preference for brands from developed countries (Zhuang, Wang, Zhou, & Zhou, 2008;Dikčius & Stankevičienė, 2010).Consumers in developing countries consider brands from developed countries to be of better quality than those from their own countries.
They prefer these brands for social status, prestige, and pride, but owing to financial limitations many cannot afford them.They admire foreign brands, which are often also global brands, and crave them.Conversely, they have poor perceptions of local brands, which they consider inferior.
This study offers a conceptualization of global consumer orientation and examines its impact on foreign brand admiration and willingness to pay more for products by foreign brands.It seeks to examine the role of global consumer orientation and the inferior image of foreign brands in young, educated consumers' admiration for foreign brands and willingness to pay more for them.

Hypothesis Development
The liberalization of trade on the world market has opened opportunities for brands from developed countries to gain ground rapidly abroad, especially in developing countries.In such countries, despite the impetus for purchasing domestic brands and products, foreign brands, especially from western/ developed countries, are preferred because they are considered of superior quality, and thus contribute to consumers' social prestige and pride (Kinra, 2006).
Brands from the developed world have emerged and expanded rapidly, supported by media developments and consumer mobility.This has created a uniform global consumer culture, in which consumers show a strong preference for global brands where purchasing or consuming goods (Lee, Knight & Kim, 2008).The more they know global brands, the more positive their attitudes towards global/foreign brands (Frank, 2016).
Consumers' preference for foreign brands depends on how their evaluations and perceptions of products as consumers.They use these global brands to strengthen their identification as consumers (Gineikiene, Schlegelmilc, & Auruskeviciene, 2017), taking an active role in the modern and advanced global community.
A ''Western'' look is synonymous with a ''global'' look, and brand names (mostly tracing their roots to English) give the impression of a global quality (i.e. a high standard of quality) (Chang, 2008).This has motored the tendency for local companies in developing countries to use foreign branding strategies to reach domestic consumers.
In general, young consumers in developing countries have become increasingly interested in materialistic lifestyle and consumption, part of their desire to maintain their status.Young consumers in developing countries hope that, by following a Western lifestyle and purchasing global brands, they will appear superior (Kumar, Lee, & Kim, 2009).They crave the glamor of the lifestyle they see through various electronic media.Foreign brands are seen as symbols of cosmopolitan society, and modernization is desired by consumers who are oriented towards emulating the (often materialistic) values of advanced (Western) societies (Zhuang, Wang, Zhou, & Zhou, 2008).
Foreign brands in developing countries are seen as creating certain impressions that create social status and respect (Lee, Knight & Kim, 2008).
Therefore, young consumers, who tend to be open to foreign cultures, are frequently more open to foreign brands as they are associated with global participation and citizenship (Pham & Richard, 2015).This has been reinforced by a view that foreign brands (mostly from the West) and modern lifestyles are important symbols of global society.Consumers admire foreign brands and their effect on their social status (Pham & Richard, 2015) and means of expressing their identities as modern human beings (Halkias, Davvetas, & Diamanopoulos, 2016).Young consumers generally want to distinguish themselves from others through brands that make them feel ''cool'',   and they are not reluctant to pay a high price for such brands (Noh, Runyan, & Mosier, 2014).
Young consumers, who have a strong tendency to support globalization, frequently express positive views of global brands, or other brands that generally come from developed countries.Owing to the many perceived benefits of foreign brands, they are compelled to pay more for these brands.
Foreign brands are seen as being worth a higher price, as they offer more benefit to consumers.As such, the first and second hypotheses of this study are as follows:

H1:
The stronger the global consumer orientation, the stronger the foreign brand admiration.

H2:
The stronger the global consumer orientation, the stronger the willingness to pay more for foreign brands.
Perspectives of brand origins show that consumers often use their impressions of these brands'  (Kinra, 2006).Local brands cannot provide the benefits of foreign brands, which are seen as offering uniqueness, emotional value, and better quality (Kumar, Lee, & Kim, 2009), and being luxurious, glamorous, exclusive, innovative, and more upscale (Jin, Chansarkar, & Kondap, 2006).This is the driving force behind consumers' strong admiration for global brands in developing countries (Zhou, Yang, & Hui, 2016;Kaufmann, Laureiro, & Manarioti, 2016).
Therefore, it is reasonable to assume that young, educated consumers in developing countries are willing to pay more for foreign brands as they perceive the brands as being more beneficial and of higher quality than local brands.The following hypotheses can thus be submitted:

H3:
The more inferior the image of local brands, the stronger the admiration for foreign brands

H4:
The more inferior the image of local brands, the stronger the desire to pay more foreign brands.(Nelissen & Meijers, 2011).As such, it is quite logical to say that, to achieve high social status, consumers want brands that give the impression of luxury and are willing to pay high prices for luxury brands (which usually come from foreign, especially developed, countries).

H5:
The greater the foreign brand admiration, the greater the willingness to pay more for foreign brands.
Briefly, the identifiable discussions and hypotheses can be described as fitting the conceptual framework below.2010).

Measurement Model Analysis
Assessing the validity and reliability of measurement models was conducted.The measure was purified through a stepwise procedure on the basis of substantial cross loading.The results are displayed in Table 1, which reveals that only one item of consumer global orientation and three items of local brand inferior image were deleted as they had a loading factor under the threshold of 0.50 (Hair, Black, Babin, Anderson, & Tatham, 2010); others were well above the threshold, and all were significant at p<0.05.This also indicates Cronbach's alpha values and composite reliability as being greater than the common cutoff value of 0.70 (Hair, Black, Babin, Anderson, & Tatham, 2010).Nonetheless, the Average Variance Extracted (AVE) for two constructs was just below the of 0.50, suggesting the inadequacy of convergent validity.Support for reliability and convergent validity was, however, provided by composite reliability.The values were all above 0.80, exceeding the threshold of 0.70.
Furthermore, another important validity test (i.e. the discriminant validity test) was conducted by comparing the AVE of each construct with the shared variance/squared correlation between each pair of constructs (Fornell & Larcker, 1981) and by constructing 95 percent confidence intervals.Table 2 displays the values of correlation and squared correlation between constructs.In all cases, the AVE was greater than the squared correlation.The results show that discriminant validity is established.

RESULTS AND DISCUSSIONS
After going through the processes of validity and reliability analysis, the analysis process continued with analysis of structural models for hypothesis testing.Before interpreting the structural model, we first analyzed its fit to the structural model to assess whether the data was feasible as structurally modeled.The results were as follows: CMIN / DF: 1.908; RMSEA: 0.065, GFI: 0.859; CFI: 0.944; TLI: 0.932.This shows that the model fit satisfactorily.Similarly, when consumers have bad perceptions of local brands, this does not make them willing to pay more for foreign brands.However, these two variables indirectly influence consumers' willingness to pay more for foreign brands through foreign brand admiration; as such, this variable acts as a moderator of both variables.
Globalization is against trade protection, and cultivates an open attitude to foreign brands (Maher, Clark, & Maher, 2010).The results of this study show that young, educated consumers react They have a wider selection, as well as the ability to evaluate a wide range of brands from various countries.Consumers in developing countries have become more familiar with global brands, as well as greater opportunity to compare said brands with local ones when shopping on-or offline.They can evaluate and assess product features and brand attributes in selecting from the various options available.The rapid development of information technology has also allowed consumers to continually collect information about various objects in the global world, including global products and brands.As a group, young, educated consumers frequently rely on advanced technology, which enables them to access information from various domestic and international sources.Technological developments have also allowed young consumers in developing countries to become key consumers in the global market, as they have shown a strong orientation towards global products and brands.Although this trend has been widespread in developing countries, the literature on global marketing has yet to provide sufficient explanations.It has, however, shown that consumers have interests and emotional connections with specific brands, which may be positive or negative depending on these brands' country of origin.
2010; Gineikiene, Schlegelmilc, & Auruskeviciene, 2017), but it has not been explicitly conceptualized and measured.Reifler (2012) did propose a concept of global attitude and global consumer orientation, defining the latter as consumer response to the availability of global products and services that form consumer lifestyles.Global attitude differs from global consumer orientation; where the first covers attitudes towards the globalization of the world market (macro-level) the second refers to consumers' lifestyles in relation to global products (micro-level).Riefler (2012) also explains the term globalization attitude (GA) can refer to the support or opposition to globalization.This attitude demonstrates consumers' overall attitudes towards the global integration process, including the free movement of labor, capital, and products, especially those that have liberalized their markets.Global brands such as Coca-Cola, Levi's, and McDonald's may be perceived as symbols of a global lifestyle, depicting the diversity of consumer culture, but are also frequent targets of anti-globalization groups.Consumers in different countries show different attitudes towards market globalization, in which global companies have a central role.It is not surprising that differences in attitudes towards globalization are often addressed by consumers' interactions with global products or brands.Consumers may exhibit preferences for global brands (thereby showing a positive attitude toward globalization) or opposition to said brands, often paired with support for local ones (thereby showing a negative attitude towards globalization).Similarly, Naseem, Verma & Yaprak (2015) define global consumer orientation as consumers' attitudes towards the spreading of global consumption culture.However, for the purpose of this study, we understand consumer global orientation as an orientation held by consumers.We define it as consumers' tendency to support the globalization of markets and follow brand-and product-related trends as a consequence of market globalization, based on the belief that globalization is a symbol of modern civilization.This includes consumers' tendencies as related to the macro and micro sides of market globalization.Consumers with a high global orientation will demonstrate a strong and positive attitude towards globalization, know and track the development of global products and brands, be proud to be part of the global community, and feel great as consumers of global products and brands.Conversely, contrary, consumers with a weak global orientation will show a weak orientation towards globalization and foreign brands/products.

Figure 2 :
Figure 2: The Structural Model Notes: The dashed lines indicate insignificant paths.* path significant at p < 0.001.

Table 1 .
Measures Used in the Study in the world market(Chu, Chang, Chen, & Wan,

Table 3
displays the result of hypothesis test.All significant at p< .05; the diagonal (in italics) shows the square root of the average variance extracted for each construct

Table 3 .
Hypotheses test result