Perceived Brand Globalness and Consumer Regret: Effects on Word-Of-Mouth and Purchase Intentions

This paper investigates the impact of perceived brand globalness (PBG) on word-of-mouth and purchase intentions in the context of a two-alternative, suboptimal regrettable purchase, where the foregone brand performs better than the chosen brand. A structural model is developed and tested after experimentally manipulating the chosen and foregone brands’ PBG. The findings show that the PBG of the chosen brand is associated with higher post-purchase satisfaction and the PBG of the foregone brand with higher regret. Furthermore, satisfaction and regret operate as mediators for the positive effects of PBG on consumers’ intentions to recommend and purchase the chosen and foregone brands in the future. Theoretical and managerial implications of the findings are discussed and further research directions are identified.