A contingency hierarchical generalized linear model for brand associations

Past research suggests that brand quality and brand prestige are determinants of global brand equity (GBE). This research addresses two fundamental questions. First, what is the impact of quality (a major tangible brand association) versus prestige (a major intangible brand association) on GBE? Second, is the strength of the relationship between GBE and either quality or prestige contingent on consumer characteristics, namely age and income? The key country characteristic of GDP per capita, is included in the contingency framework to understand whether the relations differ in more versus less developed countries. The data are from more than 31,000 consumers from 31 countries. The methodology illustrates the use of multi-level modeling techniques for this nested data structure (i.e., the consumers are “nested” in countries). The consumer-level, main effect results show that quality and prestige are positively related to GBE; the direct effect of quality on GBE is higher than that of prestige; both income and age are negatively related to GBE. The interaction effect of income and quality is significant and positive; so is the interaction effect of GDP per capita and quality. The interpretations of the consumer-level and “across-data-levels” direct and interaction effects reveal the pervasive, complex impact of global brand associations on brand equity.