Culturally Mixed Co-branding Product Framing in China: The Role of Cultural Sensitivity, Product Quality, and Purchase Probability

The Chinese market has witnessed a shift in consumer preference, from a long-standing preference for foreign brands (FBs) to a recent surge in patriotism and support for patriotic brands (PBs). This study explores the implications of this shift for foreign brands operating in China, particularly concerning co-branding strategies that blend foreign and domestic cultural elements. The research focuses on two distinct culturally mixed co-branding product (CMCP) framing strategies: FB × PB (foreign × host culture) and PB × FB (host × foreign culture). The introduction highlights the growing significance of understanding consumer reactions to culturally mixed products and the need for nuanced marketing strategies that resonate with the current Chinese market dynamics, shaped by government initiatives like "Made in China 2025" and the rise of the *Guochao* trend. The study aims to fill a gap in existing literature by examining the mechanisms influencing consumer purchasing preferences for CMCPs, focusing on the impact of cultural mixing framing, perceived fit (product and brand), cultural congruence, cultural sensitivity, and product quality perception on purchase probability. The introduction lays the groundwork for the hypothesis development, emphasizing the need for a comprehensive understanding of consumer responses beyond simple exclusionary or inclusionary reactions.

The literature review examines previous studies on cultural mixing, highlighting both negative (perceived cultural incompatibility, contamination, intrusion) and positive (perceived creativity, cultural compatibility, respect) consumer responses to culturally mixed products. The review summarizes existing research in Table 1, showcasing the diverse theoretical models (dynamic constructivist theory of culture, motivated social cognition perspective, congruity theory, etc.) employed and the inconsistency in findings regarding consumer reactions. This inconsistency motivates the present study's focus on a more nuanced examination of CMCP framing, incorporating concepts like Holt's theory of iconic brands (in the context of PBs), brand association theory (regarding perceived fit), and congruity theory to explain the impact of cultural congruence on consumer attitudes. The review also points to the under-researched areas of cultural sensitivity and product quality perception in the context of co-branding, particularly the potential for PBs to improve in quality perception through collaborations with FBs.

The study employs a multi-step approach for brand and product selection. First, an initial survey of undergraduate students identified Starbucks and HEYTEA as the most desirable FB and PB for co-branding, respectively. Second, another survey determined that tea sets were the most suitable product category to represent CMCPs. Third, a further survey identified the teddy bear and panda bear as representative cultural symbols for American and Chinese cultures, respectively. Two types of CMCP tea sets were then designed: "teddy bear in a Chinese tea set" (FB × PB) and "panda bear in an American tea set" (PB × FB). The main data collection involved an online questionnaire distributed in Shanghai to 479 respondents after excluding incomplete responses. The questionnaire used multi-item scales (7-point Likert scale) to measure nine constructs: product fit, brand fit, cultural congruence, cultural sensitivity, co-branding attitude, product quality, and purchase probability. The data analysis used structural equation modeling (AMOS) to test the hypotheses, considering common method variance (CMV) through Harman's one-factor test and employing exploratory factor analysis (EFA).

The structural equation modeling analysis revealed significant relationships between several constructs and the two CMCP framing strategies. Hypothesis 1 (Product fit's influence on attitude towards CMCP is stronger for FB × PB than PB × FB) was not supported, while Hypothesis 2 (Brand fit's influence is stronger for FB × PB) was supported. Hypothesis 3 (Cultural congruence's influence is stronger for FB × PB) was not supported. Hypotheses 4 (Attitude towards CMCP influences cultural sensitivity more strongly for PB × FB), 5 (Attitude influences product quality more strongly for FB × PB), and 6 (Attitude influences purchase probability more strongly for PB × FB) were all supported. Specific beta coefficients and p-values are provided in Table 6. The findings indicated that for product fit, Chinese consumers prefer the PB × FB strategy, while brand fit is stronger for FB × PB, implying the importance of established brand reputations. Cultural congruence was significant for both strategies, suggesting Chinese consumers' understanding of both cultural symbols. Cultural sensitivity was higher for PB × FB, highlighting the importance of cultural respect. Product quality perception was stronger for FB × PB, potentially due to existing preferences for foreign brands. Purchase probability was significantly higher for PB × FB, driven by patriotism and a sense of cultural pride.

The findings contribute to a better understanding of culturally mixed co-branding strategies in the Chinese market, providing insights into the influence of different framing strategies and consumer perceptions of product fit, brand fit, cultural congruence, cultural sensitivity, and product quality on purchase probability. The results challenge some prior research by demonstrating positive consumer responses to both FB × PB and PB × FB framing, highlighting the importance of carefully selecting co-branding partners and understanding the specific cultural nuances of the target market. The study supports the notion that local consumers value cultural respect and that established foreign brands can positively influence perceptions of product quality in co-branding efforts. The increasing trend of patriotism in China makes cultural sensitivity crucial for foreign brands seeking successful partnerships with local brands. The discussion also emphasizes the implications for both theoretical frameworks (cultural mixing theory, congruity theory) and managerial strategies in navigating the complexities of the Chinese market.

This study contributes to the literature on cultural mixing in co-branding, offering valuable insights for both academic researchers and marketing practitioners. It highlights the importance of considering cultural sensitivity, product quality, and the specific framing strategy when designing CMCPs for the Chinese market. The findings suggest that a PB × FB strategy might be more effective in leveraging patriotism, while an FB × PB strategy might be beneficial when relying on the established reputation of a foreign brand. Future research could explore other emerging markets, expand the range of product categories and cultural elements examined, and incorporate additional consumer-specific factors into the model.

The study's limitations include focusing solely on the Chinese market, using a sample primarily from Shanghai, and examining only one product category (tea sets). The generalizability of the findings might be limited by these factors. Further research could address these limitations by conducting cross-cultural studies, employing more diverse geographic locations, and testing different product categories. The study's reliance on self-reported data could also introduce biases, warranting future research using behavioral measures to complement the current findings.