The competition between foreign and domestic
brands is not unique in China but has unfolded
in other emerging market economies where consumers
have a myriad of foreign and domestic
products to choose from. Research suggests that
while global brands have a significant advantage
in the battle to win consumer confidence and
market share, such advantages may have eroded
to some extent (Arnold & Quelch, 1998; Batra,
1997; Prahalad & Lieberthal, 1998). Although
ownership of foreign brands is still held in high
regard in China, domestic brands begin to catch
up in certain product categories due to the growing
strength of local firms as well as the increasing
sophistication of Chinese consumers (Cui
& Liu, 2001). Existing studies, which mostly
rely on perceptual measures of brand preference