The Impact of Cosmopolitanism Disposition on Consumers’ Willingness to Pay Price Premium Toward Global Vs Local Brands

Abstract

In response to the limited research concerning the evaluation of global and local brands by emerging market consumers, this study explores the role of consumer cosmopolitanism in shaping attitudes and willingness to pay premium prices. The research, conducted in Cairo using a mall intercept method with 385 respondents, employs Structural Equation Modeling (SEM) to analyze the data. Each participant evaluates one global and one local brand within the home appliances category. The study not only addresses a significant research gap but also innovatively profiles and segments cosmopolitan consumers, shedding light on their preferences and behaviors. The findings offer crucial insights for both marketing researchers and brand managers, guiding them in formulating appropriate strategies for global and local brands in emerging markets. This research stands out for its exploration of the intricate mechanisms behind consumer cosmopolitanism and its influence on consumers’ willingness to invest in global brands over local counterparts, making a valuable contribution to the existing literature