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An increasing popularity of Chinese brands around the world suggests that Chinese brands are beginning to overcome unfavorable country-of-origin (COO) effects. However, whether the perception of the functional and/or the social value of Chinese brands has improved remains unclear. Based on the theory of reasoned action, this study develops a theoretical framework to explain how consumers' perceptions of functional and social attributes affect purchase intentions of Chinese brands. Survey data were collected from an individualistic (US) and a collectivistic (Mexico) country. Results show that perceptions of functional value antecede attitudes towards the brand while perceptions of social value antecede social norms. The effect of social norms on purchase intention is stronger in the US than in Mexico. Recommendations for managers of Chinese brands, and brands from other emerging markets, are provided. [ABSTRACT FROM AUTHOR]

The article examines the process of international market expansion by a small franchiser, Silver Streak Restaurant Corp. in Mexico. The phenomenon of international franchising is not limited to the big players in the franchising world. All sorts of franchisers view international markets as profitable extensions of their domestic operations. The internationalization process of firms encompasses four key stages: domestic marketing, experimental involvement, active involvement, and committed involvement. Most franchise entities follow the steps of internationalization in the aforementioned order as a means of adapting themselves to the intricacies of new markets. Experimentation in the new business environment is a precursor to international growth. Frequently, the experimentation phase is initiated via strategic alliances with foreign partners. Therefore, the presence of a foreign partner may alleviate a slew of problems for the franchiser. Silver Streak's franchise venture into Mexico to date has also been underscored by the cross-cultural adaptability.