Tightness–looseness: A new framework to understand consumer behavior

In February of 2011, U.S. electronics and entertainment retailer Best Buy closed all nine of its branded stores in China after only five years in the market. Although analysts had believed that China held promise for large growth opportunities, Best Buy ultimately captured less than 1% of the market and struggled to compete against local rival companies Gome and Suning, each of which had more than 1000 branded stores in the country (Waldmeir, Strauss, & Birchall, 2011). According to research conducted by China Market Research Group, a strategic market intelligence firm based in Shanghai, Best Buy's failure ultimately resulted from a lack of understanding of Chinese consumer norms for smaller, conveniently located stores (Rein, 2011). Similarly, a Financial Times article explained that the company's store strategy of dividing up items by category rather than leading brands was “at odds with local habits” (Waldmeir et al., 2011). Failures of this magnitude illustrate the critical need for cross-cultural research in consumer behavior (CB). Once primarily a Western enterprise, the field has begun to go global (Maheswaran & Shavitt, 2000; Torelli & Rodas, 2016). In just the last two decades, CB research has examined how culture influences brand loyalty (Kim, Forsythe, Gu, & Jae Moon, 2002; Lam, 2007; Luo, Zhang, & Liu, 2015; Ogba & Tan, 2009; Palumbo & Herbig, 2000; Subramaniam, Al Mamun, Permarupan, & Zainol, 2014; Yoo, 2009), brand extensions (Buil, de Chernatony, & Hem, 2009; Grønhaug, Hem, & Lines, 2002; Han & Schmitt, 1997; Monga & John, 2007; Ng, 2010;