Effects of TV Advertising on Chinese Consumers: Local versus Foreign-Sourced Commercials
The emerging Chinese markets of Asia are increasingly affluent, and success in these countries is a priority for multinationals. Yet the global advertising literature focuses on standardisation and customisation from a strategy perspective, without much consideration of consumers' perceptions toward advertising. This study aims to investigate consumer perceptions of customised and standardised TV advertisements in the China market. Results indicate a significant difference between attitudes toward localised and foreign-sourced commercials for the same brand. Chinese consumers generally prefer foreign-sourced, standardised commercials to their localised counterparts. Furthermore, standardised commercials are more likely to gain acceptance in the case of durable products. The moderating roles of brand familiarity and execution style on the advertising standardisation have also been observed. Consumers exhibit more favourable attitudes toward foreign-sourced, standardised commercials than their localised counterparts in situations that involve greater brand familiarity, and when the execution style is transformational. Therefore, well-known brands with transformational appeal are more likely to succeed in China.