How Do Reference Groups Influence Self-Brand Connections among Chinese Consumers?

Abstract

This paper investigates the influence of reference groups on self-brand connections among Chinese consumers and the implications for advertising in China. Reference groups include the in-group (member group) and out-groups (aspiration, dissociative, and neutral). Two studies test five hypotheses involving both Chinese and foreign brands. The results indicate that Chinese consumers report higher self-brand connections for Chinese brands in member and aspiration group settings, but higher connections with foreign brands in a dissociative group setting. Furthermore, individualism/collectivism moderates the influence of reference groups on this connection. For brands with images congruent with the in-group, compared with more individualistic consumers, more collectivist consumers exhibit stronger self-brand connections with Chinese brands than with foreign brands. For brands with images congruent with the dissociative group, compared with more collectivist consumers, more individualistic consumers report stronger self-brand connections with foreign brands than with Chinese brands. These results have critical implications for advertising in China.