THE EFFECT OF POLITICAL FACTORS ON BRAND PERCEPTION: THE CASE OF TESLA IN CHINA

This study investigates how political factors influence brand perception, with a focus on Tesla in China. Drawing on the Theory of Planned Behavior (TPB) and the Country-of-Origin Effect (COE), it examines how geopolitical dynamics, nationalist sentiment, and policy environments shape consumer views of foreign brands. Using qualitative methods,16 semi-structured interviews were conducted with Chinese consumers. The data were explicitly coded into TPB constructs—attitudes, subjective norms, and perceived behavioral control—revealing the psychological pathways of political influence. Analysis reveals that Tesla’s “American origin” acts as both a technological asset and a political liability, enhancing perceptions of innovation while triggering data security concerns amid Sino–U.S. tensions. Nationalism, supported by policy incentives, steers preference toward domestic brands, though product performance remains influential. Localization strategies partially mitigate political risks but cannot fully resolve identity-based distrust. This study contributes to international branding theory by integrating political and consumer behavior perspectives, offering practical guidance for multinational firms in navigating politically sensitive markets through strategic localization and stakeholder engagement.