Analyzing effects of cultural, regional, and demographic factors on nation brand: moderating and mediating dynamics

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Firstly, the analysis was conducted using NBV (nation Brand Value) model which is a hybrid nation brand model incorporating both respondent’s perception surveys and secondary statistical data. Nation brand determinants of this model are categorized into five main components: national image, national relationships, nation brand strategy, national competitiveness, and nation brand earnings. National image includes leadership, human rights, stability, morality, and culture, while national relationships encompass current and past relationships, experiences, tourism, and physical distance. Secondly, the perception survey method involved investigating the nation brands of 39 countries through responses from 1,600 participants residing in 56 countries. Thirdly, the statistical survey method utilized data from international organizations on factors such as physical distance, corruption index, tourism, quality of citizens, and nation brand earnings. Lastly, this study statistically verifies that cultural factors play mediating role in the relationship between psychological proximity and nation brand, and identifies the moderating effects of regional and demographic factors by country. Furthermore, countries with similar or identical results regarding the moderating effects of regional and demographic factors were classified into five groups, and the characteristics of each group and country were analyzed. This research holds academic significance in that it verified the distinct role of cultural factors among the nation branding antecedent factors, and conducted case studies on groups and individual countries classified based on the moderating effects of regional and demographic factors. Practically, this enhances the understanding of cultural, regional, and demographic factors that influence nation brand, and helps to develop appropriate nation branding strategies tailored to each country. Cultural factors Demographic factors Mediating and moderating effect Nation brand Regional difference Figures Figure 1 Figure 2 Figure 3 Figure 4 I. Introduction The interest of scholars and practitioners for the practice of country promotion reached a climax in the beginning of the 21st century, also due to the accelerated development of information technologies, the Internet and social media, those new “battle" fields” for “winning the war on hearts and minds” (Nye, 2008 ). The influence of a nation brand extends far beyond product or national competitiveness and can inspire change and progress. It plays a crucial role in attracting foreign investment, tourism, and talent and significantly impacts political, social, and cultural aspects (Dinnie, 2022 ; Roozen et al., 2017 ; Sasikumar, 2017 ). Accordingly, countries competing globally with limited national resources increasingly recognize the importance of nation branding (Merkelsen & Rasmussen, 2016 ; Silvanto & Ryan, 2014 ; Lee, 2011 ). Existing research on nation brands has primarily focused on defining their antecedents. However, the crucial mediating mechanisms of how and under what conditions antecedent factors influence nation brands have yet to be thoroughly explored (Hao et al., 2021 ). There is a lack of research into exploring the impact of moderators on nation branding (Rojas-Méndez et al., 2019 ; Wu, 2017 ). Future research should account for a wider range of conditions, such as demographic factors (age, gender, education, and occupations) and regional variations (cultural differences), to create a more comprehensive understanding of relationships between nation brand and antecedent factors (Jeon et al., 2024b ). Therefore, this paper studies the mediating effect of cultural factor and the moderating effect of regional and demographic factors on nation brands for 39 countries. The findings of this comprehensive research identified the mediating role of cultural factors and the moderating effects of regional and demographic factors. Additionally, it grouped countries that exhibited similar or identical moderating effects and analyzed the characteristics of each group and country. This research is academically significant as it confirms the unique role of culture among the elements constituting nation branding antecedents. It also includes case studies on groups and individual countries categorized according to the moderating effects of regional and demographic factors. From a practical standpoint, the paper deepen the understanding of how cultural, regional, and demographic factors impact nation branding, providing valuable insights for developing tailored nation branding strategies for each country. II. Theoretical background and research hypotheses 2.1 Review of nation branding Nation branding includes several elements, such as Country-Of-Origin (COO), destination branding in tourism, public diplomacy, and national identity (Papadopoulos et al., 2016 ; Fan, 2006 ; Hassan & Mahrous, 2019). It is important to note that while destination branding focuses on promoting a specific location as a tourist destination, nation branding is a broader concept that encompasses a country's overall image and reputation (Anholt, 2007 ). A country brand refers to a name, term, sign, symbol, design, or a combination thereof, intended to enable people to identify a particular country or the products and services associated with it, distinguishing them from those of other countries (Cho, 2003). Additionally, nation branding involves applying branding and marketing communication techniques to promote a nation's image (Fan, 2006 ). According to Anholt ( 2005 ), who first introduced the term "nation brand," it is a comprehensive reflection of people's perceptions of a country across six areas of national competence: cultural, political, commercial, human assets, investment potential, and tourist appeal. The key determinants influencing a nation's brand are composed of national image, national relations, national strategy, and national competitiveness. A composite model using respondents' perception surveys and statistical data can help bridge the gap between perception and reality (Jeon et al., 2024a ). The concept of nation branding, initially developed for companies, has gained significant attention in the context of global competition. This shift in perspective has led to the recognition of nation branding as not just a strategy but as a crucial national strategy for enhancing national competitiveness (Lee, 2011 ; Merkelsen & Rasmussen, 2016 ; Silvanto & Ryan, 2014 ). This underscores the vital role of nation branding in today's competitive global landscape. In the current global scenario, nations actively compete to market their products and services, attract tourists, foreign investors, and international students, among other targets (Rojas, 2013). This active competition further emphasizes the necessity and relevance of nation branding in today's global environment. On the other hand, from an academic perspective, future research tasks include specific investigations into the most influential nation branding antecedents that shape nation brands. Additionally, it is essential to examine which of these antecedents have mediating or moderating effects (Rojas & Khoshnevis, 2023). The necessity for quantitative analysis of the critical variables in nation branding underscores the practical implications of this paper. This research addresses these gaps by verifying the mediating and moderating impacts of critical nation branding variables and provides comprehensive guidelines for developing effective nation branding strategies, taking into account regional and demographic sensitivities. 2.2 Research hypotheses Several papers have been published on the interrelationship between economic factors such as exports, investment, science and technology, infrastructure, and national competitiveness and nation branding (Kalamova et al., 2010; Papadopoulos et al., 2018 ; Lahrechet al., 2020 ; Schoeneman, 2023 ). Meanwhile, existing nation brand models include non-economic factors such as tourism, culture and heritage, governance, and the quality of citizens. However, there is still a lack of quantitative research on the causal relationship between non-economic factors and nation branding. The NBV model used in this paper includes non-economic factors that influence nation brand such as national image and national relationships components. Among these factors, tourism has been identified as having a mediating effect, while national strategy has been found to have a moderating effect (Jeon et al., 2024b ). 2.2.1 Psychological proximity Psychological proximity is an overall concept that includes all ten antecedent factors of nation branding. Psychological proximity refers to the perceived closeness or distance between individuals or groups, not in terms of physical space but their emotional, cultural, and social connectedness. When applied to countries, it describes how close people in one nation feel to those in another, based on factors such as shared history and cultural experiences, personal connections, media exposure, and perceptions of similarity. In the context of nation branding and marketing, psychological proximity can influence how people perceive and relate to a nation's brand, affecting their attitudes and behaviors towards products, tourism, and investments in that country. Psychological proximity is consisted of two categories such as national image and national relationships. Leadership, human rights, culture, stability, and morality were selected for the national image category, because these factors are pivotal in shaping a nation's image. Similarly, physical distance, past relationships, current relationships, experience, and tourism were chosen for the national relationship category because they significantly influence a nation's relationship with its audience. This research has unequivocally confirmed that psychological proximity is not just a theoretical construct but also a tangible force that positively affects a nation’s brand (Jeon et al., 2024b ). This finding underscores the importance of understanding and harnessing psychological proximity in the context of nation brand. 2.2.2 Cultural factor Culture, political values, and foreign policy are the pillars of a country's soft power (Nye, 2011). This emphasizes the critical role of culture as a key component of soft power, a concept of significant importance in international relations and nation branding. Cultural attractiveness, however, is not a standalone entity; it is a rich, multidimensional blend of elements. Numerous studies highlight the influence of culture on a nation's brand, which is the unique, multifaceted combination that provides a nation with culturally grounded differentiation and relevance for diverse audiences (Dinnie, 2010). Efforts to enhance a nation's brand through the global dissemination of popular culture can make a country's status more competitive on the global stage (Anholt, 2011 ; Kim & Lee, 2018 ). Nations increasingly leverage cultural diplomacy to strengthen their international profile, gaining advantages in exports, foreign trade, inward investment, and tourism (Fetscherin, 2010 ). From a cultural perspective, a nation's brand reflects its national spirit and values, which is why cultural brands play a leading role in nation branding today (Tul'chinskii, 2013). Future research might include how the cultural and technological environment relates to nation branding (Rojas & Khoshnevis, 2023). In addition, nation brand composite indicators, such as NBI, CBI, and BSI, have adopted cultural factors as significant element that influences nation brand. The efforts to promote a country’s image and improve the perceptions of foreign nationals toward home country through various communication channels are referred to as public diplomacy. Cultural diplomacy is a term that emphasizes the importance of cultural factors within the broader context of public diplomacy. This term indirectly suggests that cultural factors not only have direct impact on nation brand but also serves as mediating factor for various elements that influence nation brand, such as exports, tourism, immigration, and investment. In other words, it refers to the relationships where cultural factors are linked with export marketing, tourism for cultural experiences, cultural attractiveness leading to visits and residency, direct investment in cultural industries, and the attraction of production and research facilities due to cultural appeal. Future researchers should examine how nation branding elements mediate the antecedents and consequences of nation branding (Rojas, 2023 & Khoshnevis). Therefore, we need to statistically verify the direct and indirect relationships that cultural factor has on nation brand by using the SPSS Process Macro Model 4 to test the direct causal relationships and mediating effects. To verify the mediating effect of cultural factors, cultural factors were excluded from the independent variable (psychological proximity). It is expected that cultural factors will mediate the relationship between psychological proximity (national image and national relationships) and nation brand. The cultural factors are divided into the following three components: (a) film, music, art, sports, literature; (b) similar regions, similar languages, similar ethnic origins, shared experiences; (c) human elements such as entertainers, celebrities, entrepreneurs, and politicians. The cultural factor most likely to influence people's perceptions is anticipated to be the activities most directly related to people's cultural experiences, such as film, music, art, sports, and literature. Additionally, using similar languages, having similar ethnic origins, sharing historical experiences, and living in similar regions are expected to have significant impacts. On the other hand, while entertainers, celebrities, entrepreneurs, and politicians have influence, it is expected that they will affect only certain fans or specific social groups. Therefore, the following hypotheses are assumed regarding the mediating effect and the order of mediating effects: H1a. Cultural factors mediate the relationship between psychological proximity and nation brand value. H1b. Among cultural factors, the influence on people's perceptions will be greatest in the order of a, b, and c. 2.2.3 Regional difference A country's culture and cultural content, the primary materials that form a nation's brand, are traditionally represented by its cultural assets. However, in the current global landscape, countries are increasingly reshaping and developing their renowned culture to establish national homogeneity on the international stage, thereby elevating its importance (Aronczyk, 2013 ). Regional differences, often perceived as concepts akin to cultural differences, assume a pivotal role in shaping cultural areas. Countries within the same region typically share cultural areas, fostering commonalities in language, race, customs, institutions, culture, and history. This shared context implies that respondents of different nationalities from the same region are more likely to share similar perceptions (Erbas, 2013). According to Rojas and Khoshnevis (2023), future research on nation branding could be conducted in these geographical regions because studies done in countries with strong brands like European countries and countries with weak ones may differ. This paper addresses how the perception of individuals from different regions can influence a nation brand evaluation. The research classifies the survey respondents' regions into eight distinct categories: Europe, Asia, Africa, North America, South America, Australia/New Zealand, the Middle East, and others. This classification was based on various factors, including geographical proximity, historical interactions, and cultural similarities. A crucial hypothesis of this study is that the region to which the respondents belong significantly moderates their relationship with the nation brand. H2. Regional difference moderates the relationship between psychological proximity and nation brand in every country. 2.2.4 Demographic factors Various factors, including economic capabilities, human capital, institutional environment, and demographic factors (age and education level), were analyzed as factors affecting national brand competitiveness (Wang & Hsu, 2016; Yavas & Bozoklu, 2018). According to Rojas and Khoshnevis (2023), demographic factors affect relation between nation branding and nation branding consequences. However, quantitative research on how non-economic factors' impact on nation brand varies according to demographic factors is rare. This study enables a deeper understanding of how different population segments perceive the nation brand. Furthermore, understanding how different demographic groups perceive the nation's brand internationally provides valuable insights for shaping tailored national programs and public diplomatic policy. In conclusion, analyzing a nation's brand from a demographic perspective enables the development of targeted strategies to enhance a nation's brand, strengthen international partnerships, and promote a positive global nation brand. Therefore, we propose the following hypotheses: H3a. Among demographic factors, age moderates the relationship between psychological proximity and the nation brand in all countries. H3b. Among demographic factors, education level will moderate psychological proximity and the nation brand in all countries. H3c. Among demographic factors, occupation will moderate psychological proximity and the nation brand in all countries. H3d. Among demographic factors, gender will moderate the relationship between psychological proximity and the nation brand in all countries. Based on the above hypotheses, research model is proposed as shown in Fig. 1. Research model III. Methodology Firstly, although the direct and indirect relationship between cultural factors and national image and reputation has garnered much attention, there is still a lack of quantitative research on the relationship between cultural factors and other antecedents of national branding or their causal relationship with nation brand. Therefore, this study aims to quantitatively analyze the role of cultural factors (highlighted in green in Table 1) in the relationship between antecedent factors and nation brand. Secondly, the nation brand model used for the analysis is shown in figure 2. The nation brand value is calculated as the product of nation brand earnings and nation brand power, and nation brand power is calculated as the sum and product of national competitiveness, psychological proximity, and nation brand strategy. (Cho, 2023; Jeon et al., 2024a) Survey questions related to cultural factors. Adapted from Cho (2023) Lastly, the importance of studying demographic moderating effects has been mentioned in many existing national branding studies. Practically, determining the presence of moderating effects and segmentation based on demographic factors is crucial for marketing and communication in nation branding. In this study, to consider various political, social, and cultural differences, the moderating effect was analyzed by dividing the respondents (1,600 in total) into eight regions based on nationality: Asia, the Middle East, Africa, North America, South America, Australia/New Zealand, and others. The classification of respondents used to analyze the moderating effect based on regional differences and demographic factors is shown in table 2 (Jeon et al., 2024b). IV. Analysis results This research used SPSS Process Macro Model 4 to confirm the direct and indirect effects and Model 5 to check whether adding demographic factors and regional differences to Model 4 moderated the direct impact. Populations numbers and Percentage based on the classification of respondents 4.1 Mediating effect of cultural factors To test the direct and indirect effects between psychological proximity and nation brand via the cultural factors, this research employed SPSS Process Macro Model 4. First, it was confirmed that cultural factors play a mediating role between psychological proximity and nation brand, and the detailed results are shown in Table 3. Psychological proximity has a statistically significant positive effect on the nation brand (b=1.135, p<.001). Cultural factor showed a significant mediating effect as both the LLCI (0.886) and ULCI (1.383) are positive numbers and do not contain the value of 0, supporting Hypothesis H1a. Thus, we found not only a positive effect of psychological proximity on the nation brand, but also confirmed the indirect effects. Secondly, among the cultural factors, human elements such as entertainers, celebrities, entrepreneurs, and politicians were found to have the greatest influence, followed by b (similar region, language, ethnic origin, and experience) and a (film, music, art, sports, literature) in that order. This result is contrary to the hypothesis H1b, and the hypothesis H1b was rejected. It has been proven that entertainers, celebrities, entrepreneurs, and politicians can exert immediate and powerful influence through various media such as news and social media. In contrast, cultural and artistic elements such as film, music, and literature may take more time or have a smaller impact than expected. However, since this statistical experiment was conducted based on data from 2023, more detailed analysis is required, along with continuous verification and analysis of past statistical data or post-2023 data. Mediating effect of culture factor on the nation brand 4.2 Regional difference First, we categorized the study into eight regions (Europe, Asia, Africa, North America, South America, Australia/New Zealand, the Middle East, and others) based on respondents' nationalities. Next, based on Research Model, which targets 39 countries, this analyzed whether the region to which the respondent belongs moderates the relationship between psychological proximity and nation brand. Among the 39 countries surveyed, 22 countries, including the United States and Germany, were unaffected by regional difference. However, the findings showed that 17 countries, including Australia, South Korea, and Greece, were influenced. Table 4 presents the results of the moderating effect analysis for the 39 countries. Advanced countries in Europe and North America appear to be unaffected by regional difference. However, most countries in Asia, the Middle East, Australia, and New Zealand were affected. Based on the above statistical analysis results, hypothesis H2 was rejected. Moderating effects of regional difference for 39 countries Table 5 shows results of Greece and U.K. In the case of Greece, the p-value of the product term is less than 0.05, therefore, it is significant, but in the case of the UK, the p-value is 0.214, which is not significant. While most countries in Europe were unaffected by regional differences, Greece was influenced by regional difference. While there could be various reasons for this outcome, it may be related to Greece's past economic crisis. Amidst the 2008 global financial crisis and the European financial crisis, the Greek financial crisis emerged as a significant factor that deeply wounded the Greece's brand image. In particular, Asian and South American countries were more concerned about Greece's fiscal crisis than European countries (Park et al., 2010). This could be attributed to their higher reliance on international trade and investment, making them more sensitive to global economic shocks. Even though this likely led to deterioration in the Greek nation's brand, it is essential to underline the necessity for a comprehensive and multidimensional cause analysis that comprehends the intricate dynamics of the nation's brand. 4.3 Demographic factors Statistical analysis was conducted for 39 countries to scrutinize whether respondents' demographic factors (age, education level, occupation, and gender) moderate the nation's brand. The results showed that 39 countries can be categorized into five categories based on the demographic and regional influence pattern, providing a clear framework for further analysis. Types not affected by all demographic factors, including region, were classified as Category 1, and types affected only by education level or regional difference were classified as Category 2 or 3. Countries with a moderating influence on both region and education level were classified as Category 4, while the rest were classified as Category 5 (Table 6). First, Category 1 includes many advanced European countries, and in Asia, it includes China, India, and Indonesia. In South America, Brazil and Chile are included. The fact that the countries in this group are not influenced by any regional or demographic factors can be interpreted in two major ways. The first interpretation is positive. According to Anholt (2007), “The fact is that the reputations of the Netherlands and Amsterdam, Sweden and Stockholm, like most mature and successful brands, have long ago achieved critical mass, so that people simply reject anything negative which threatens to contradict the overwhelmingly positive brand story that they carry in their minds.”The second interpretation is the opposite, where a negative image is formed as a stereotype. Secondly, Category 4 includes all Asian countries except Taiwan, as well as Australia and New Zealand. Among European countries, Turkey is the only one included. The characteristic of this group is that psychological proximity towards the counterpart country varies according to region and education level, which influences the perception of the nation brand. In other words, countries in this group are evaluated differently depending on region and education level. This also reflects the finding that Asian countries have not yet developed a mature, stable, and positive national image like European countries, but it also suggests the potential for future growth. a moderating effect of regional difference for Greece and U.K. Moderating effect of demographic & regional factors on nation brand for 39 countries Thirdly, Category 3, which is only influenced by region, includes Greece and the Czech Republic from Europe, Israel, UAE, and Kuwait from the Middle East, and Mexico from South America. Greece is thought to still be affected regionally due to the lingering effects of the international financial crisis and the European financial crisis. The Middle Eastern countries are also prime examples of regions where geopolitical reasons, political instability, and complex factors like being major oil producers cause regional assessments to vary. Fourthly, Category 2, which is only influenced by education level, includes small European countries such as Switzerland, Denmark, and Austria. While they are influenced by educational level, the effect is shown to be relatively minor. Lastly, Category 5 stands out with its inclusion of three countries - the United States, Saudi Arabia, and Taiwan (Chinese Taipei) - that have shown completely unique and intriguing results. First, in the United States, it was confirmed that only age had a moderating effect. The moderating effect was found to be relatively low for those in their 20s, while it was notably positive for those in their 50s. In the case of Saudi Arabia, unlike all other countries, there appears to be a moderating effect on occupation. In particular, for respondents classified as business, the increase in nation brand's value due to the moderating effect was relatively low compared to other occupations. A comprehensive and detailed investigation was conducted in Taiwan, where all three factors - age, education level, and regional difference - were found to have a significant and impactful moderating effect, making it a pivotal and unique case for study. Taiwan stands out among a handful of nations with its complex and multifaceted international relations, encompassing intricate economic and political dynamics. It might be posited that the results influenced by the moderating effect in three aspects reflect the respondents' diverse perceptions of Taiwan. In essence, countries worldwide are currently involved in a myriad of economic transactions with China. However, conflicts, such as the ongoing US-China trade war, underscore the complexities of these relations. One of the most sensitive issues between China and the United States is the issue related to Taiwan. Although the United States officially acknowledges Taiwan as part of Chinese territory, the high dependency of many countries, including the United States, on Taiwan for semiconductor-related industries may lead to a perception that Taiwan requires protection from political and economic pressures. While our findings offer insight into this complex and multidimensional situation, a more detailed analysis remains essential. In Taiwan, the moderating effects on regional difference is shown in Table 7, the moderating effect graph is shown in Figure 3, and the mutual effects graph is shown in Figure 4. Taiwan's nation brand's value increased from 12.735 to 24.379 for non-European regions, while the increase in nation brand's value for European regions increased from 13.124 to 22.129. Interestingly, the increase in nation brand's value of Taiwan was about 10% lower in European regions compared to non-European regions. In addition, regarding education level, it was found that graduate school graduates had a more significant positive moderating effect, and it was confirmed that the positive moderating effect was more significant in those in their 50s. In the case of Korea, the analysis found that the moderating effect on the level of education was efficient, but the size of the moderating effect was manageable. Specifically, the difference in the moderating effect between college graduates and those with less than a college degree was approximately 4%. Based on the above statistical analysis results, the following hypotheses were supported or rejected: Moderating effects of regional difference on the nation brand (Taiwan case) Among the demographic factors, age had a moderating effect only in the United States and Taiwan out of 39 countries; therefore H3a was rejected. Among demographic factors, education level had a moderating effect in only 15 countries, including Korea and Australia, out of 39 countries; therefore H3b was rejected. Among the demographic factors, occupation had a moderating effect only in Saudi Arabia among 39 countries; therefore H3c was rejected. Among the demographic factors, gender did not have a moderating effect in any of the 39 countries; therefore H3d was rejected. Moderating effects of demographic factor (education level) in case of Korea V. Implications and future research The importance of culture, from Tylor's classic work (1871) to Nye's recent concept of soft power (2011), cannot be overstated. This study aims to statistically examine the role and impact of culture, one of humanity's most vital assets, in relation to nation brand. Additionally, the research investigates the mediating effects of culture, combined with moderating effect of regional and demographic factors, across 39 countries, and the findings and future research can be summarized as follows. First, it was confirmed that cultural factors mediated the relationship between psychological proximity and the nation brand, with human elements having the greatest influence among the cultural factors. Therefore, this finding, which includes a quantitative analysis of the mediating effect of cultural factors, reaffirms the significance of cultural factors in the field of nation branding and public diplomacy. The fact that human elements such as entertainers, celebrities, entrepreneurs, and politicians have shown the greatest influence among cultural factors, contrary to the hypothesis, might be due to various reasons. Therefore future research needs to consider following points: Foremost, it is necessary to verify whether the respondents fully understood the context of the questions, as the questions on cultural factors were quite broad. Therefore, providing more detailed explanations of the questions before the survey or adding survey items for each cultural factor can be a good way to obtain responses that fully grasp the context of the questions. Next, the timing or specific situational factors might also play a role. The influence of entertainers, celebrities, entrepreneurs, and politicians may be relatively high during periods of war, elections, or big events. Therefore, more detailed analysis and continuous validation using past or future statistical data are needed. Secondly, we confirm through Process Macro Model 1 that regional and demographic factors affect each country differently. Additionally, using Process Macro Model 5, we observed similar effects when these factors were combined with the mediating effect of culture. In other word, the effectiveness of cultural exchange programs and opportunities for people to experience a nation's culture in boosting its brand image can vary significantly. This variation is largely influenced by demographic factors and regional differences. Therefore, it is crucial to consider these demographic variations and regional contexts to maximize the impact of cultural exchange and experiences on a nation's brand. For instance, the global appeal and influence of cultural aspects like K-pop, Korean movies and dramas in Asia, and Korean design and fashion in European countries indicate the dynamic nature of regional difference (Kim, 2019 ). Notably, the enthusiasm and open-mindedness of younger generations are key drivers in cultural exchange, particularly with countries where age has moderating effects. Additionally, the level of education can influence the preferred cultural genres of the other country. Lastly, the moderating effects of demographic factors and regional differences in the target countries resulted in grouping countries with shared characteristics. We aimed to explore the underlying reasons behind cases like Greece and Taiwan, which exhibit moderating effects different from other countries in the same region. In-depth analysis by group or country is a task that should be addressed in future research. VI. Conclusion This study takes a unique approach by examining the mediating impact of cultural factors among nation branding antecedent factors and the moderating effects of demographic factors and regional difference on the nation brand. By classifying 39 countries into five categories based on the characteristics of the moderating results, this research provides a practical framework for further detailed analysis of causes. 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Lahrech, A., Juusola, K. and AlAnsaari, M. E. (2020). "Toward more rigorous country brand assessments: the modified country brand strength index", International Marketing Review, 37(2), 319-344. Lahrech, A., Alabdulwahab, S., and Bouayach, S. (2020). “Nation Branding and How It Is Related to Foreign Direct Investment Inflows”, International Journal of Economics and Financial Issues, 10(2), 248-255. Lee, K. (2011). "Toward nation branding systems: evidence from brand Korea development", Journal of International and Area Studies, 18(1), 1-18. Merkelsen, H., and Rasmussen, R. K. (2016). "Nation branding as an emerging field ? an institutionalist perspective", Place Branding and Public Diplomacy, 12(2/3), 99-109. Nye, J. Jr. (2004). "Soft Power: The Means to Success in World Politics", New York, Public Affairs, 5-11. Nye, J. Jr. (2008). " The Powers to Lead", New York, Oxford University Press. Papadopoulos, N., Hamz Brand aoui-Essoussi, L., and Banna, A.E. (2016). "Nation branding for foreign direct investment: an integrative review and directions for research and strategy", Journal of Product & Management, 25(7), 615-628. Papadopoulos, N, Ibrahim, Y., Nisco, A.D., and Napolitano, M.R. (2018). “The Role of Country Branding in Attracting Foreign Investment: Country Characteristics and Country Image”, Mercati e Competitività (2) Porter, M. E. (1990). "The competitive advantage of nations". New York, USA, The Free Press. Rojas-Méndez, J.I. (2013). "The nation brand molecule", Journal of Product and Brand Management, 22(7), 462. Rojas-Méndez, J.I., Kannan, D., and Ruci, L. (2019). “The Japan brand personality in China: is it all negative among consumers?”, Place Branding and Public Diplomacy, 15(2), 109-123. Rojas-Mendez, J.I., and Khoshnevis, M. (2023). "Conceptualizing nation branding: the systematic literature review", Journal of Product & Brand Management, 32(1), 107-123. Roozen, I., Chia, J., and Raedts, M. (2017). "Does institutional nation branding exist in a Singaporean context?", Place Branding and Public Diplomacy, 13(4), 325-347. Sasikumar, K. (2017). "Branding India: constructing a reputation for responsibility in the nuclear order", Place Branding and Public Diplomacy, 13(3), 242-254. Schoeneman, J, and Fullerton, J. (2023). “Exploring relationships between nation branding and foreign direct investment”, Place Branding and Public Diplomacy (19), 266–279. Silvanto, S., and Ryan, J. (2014). "Relocation branding: a strategic framework for attracting talent from abroad", Journal of Global Mobility, 2(1), 102-120. Wolfe (2009). "East German Reconstruction", Asia Policy, No 7, 61-88. Wu, L. (2017).“Relationship building in nation branding: the central role of nation brand commitment”, Place Branding and Public Diplomacy, 13(1), 65-80. Tables Tables 1 to 8 are available in the Supplementary Files section. Additional Declarations No competing interests reported. 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Adapted from Cho (2023)\u003c/p\u003e","description":"","filename":"2.png","url":"https://assets-eu.researchsquare.com/files/rs-5335956/v1/eda6cd4e27e7fb730a182b13.png"},{"id":69888823,"identity":"96200640-76e0-4e51-b432-586f075b647b","added_by":"auto","created_at":"2024-11-26 10:08:06","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":29319,"visible":true,"origin":"","legend":"\u003cp\u003eGraph of the moderating effects\u003c/p\u003e","description":"","filename":"3.png","url":"https://assets-eu.researchsquare.com/files/rs-5335956/v1/b4ebc202b7276be2cfd20951.png"},{"id":69888821,"identity":"73132688-d9ec-4233-b839-3ab8f5bdaa18","added_by":"auto","created_at":"2024-11-26 10:08:06","extension":"png","order_by":4,"title":"Figure 4","display":"","copyAsset":false,"role":"figure","size":27306,"visible":true,"origin":"","legend":"\u003cp\u003eSignificance graph of the mutual effects\u003c/p\u003e","description":"","filename":"4.png","url":"https://assets-eu.researchsquare.com/files/rs-5335956/v1/d9ce1d46ef356de048c87324.png"},{"id":76774138,"identity":"f0af177e-3eff-4202-8655-6316888753a4","added_by":"auto","created_at":"2025-02-20 15:01:42","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":643658,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-5335956/v1/d016dc7f-d13d-47a9-b42d-21eb1bf2d971.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Analyzing effects of cultural, regional, and demographic factors on nation brand: moderating and mediating dynamics","fulltext":[{"header":"I. Introduction","content":"\u003cp\u003eThe interest of scholars and practitioners for the practice of country promotion reached a climax in the beginning of the 21st century, also due to the accelerated development of information technologies, the Internet and social media, those new “battle\" fields” for “winning the war on hearts and minds” (Nye, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2008\u003c/span\u003e). The influence of a nation brand extends far beyond product or national competitiveness and can inspire change and progress. It plays a crucial role in attracting foreign investment, tourism, and talent and significantly impacts political, social, and cultural aspects (Dinnie, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Roozen et al., \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Sasikumar, \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Accordingly, countries competing globally with limited national resources increasingly recognize the importance of nation branding (Merkelsen \u0026amp; Rasmussen, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Silvanto \u0026amp; Ryan, \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Lee, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2011\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eExisting research on nation brands has primarily focused on defining their antecedents. However, the crucial mediating mechanisms of how and under what conditions antecedent factors influence nation brands have yet to be thoroughly explored (Hao et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). There is a lack of research into exploring the impact of moderators on nation branding (Rojas-Méndez et al., \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Wu, \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Future research should account for a wider range of conditions, such as demographic factors (age, gender, education, and occupations) and regional variations (cultural differences), to create a more comprehensive understanding of relationships between nation brand and antecedent factors (Jeon et al., \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2024b\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eTherefore, this paper studies the mediating effect of cultural factor and the moderating effect of regional and demographic factors on nation brands for 39 countries. The findings of this comprehensive research identified the mediating role of cultural factors and the moderating effects of regional and demographic factors. Additionally, it grouped countries that exhibited similar or identical moderating effects and analyzed the characteristics of each group and country.\u003c/p\u003e \u003cp\u003eThis research is academically significant as it confirms the unique role of culture among the elements constituting nation branding antecedents. It also includes case studies on groups and individual countries categorized according to the moderating effects of regional and demographic factors. From a practical standpoint, the paper deepen the understanding of how cultural, regional, and demographic factors impact nation branding, providing valuable insights for developing tailored nation branding strategies for each country.\u003c/p\u003e "},{"header":"II. Theoretical background and research hypotheses","content":"\u003cp\u003e\u003cstrong\u003e2.1 Review of nation branding\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNation branding includes several elements, such as Country-Of-Origin (COO), destination branding in tourism, public diplomacy, and national identity (Papadopoulos et al., \u003cspan class=\"CitationRef\"\u003e2016\u003c/span\u003e; Fan, \u003cspan class=\"CitationRef\"\u003e2006\u003c/span\u003e; Hassan \u0026amp; Mahrous, 2019). It is important to note that while destination branding focuses on promoting a specific location as a tourist destination, nation branding is a broader concept that encompasses a country\u0026apos;s overall image and reputation (Anholt, \u003cspan class=\"CitationRef\"\u003e2007\u003c/span\u003e). A country brand refers to a name, term, sign, symbol, design, or a combination thereof, intended to enable people to identify a particular country or the products and services associated with it, distinguishing them from those of other countries (Cho, 2003). Additionally, nation branding involves applying branding and marketing communication techniques to promote a nation\u0026apos;s image (Fan, \u003cspan class=\"CitationRef\"\u003e2006\u003c/span\u003e). According to Anholt (\u003cspan class=\"CitationRef\"\u003e2005\u003c/span\u003e), who first introduced the term \u0026quot;nation brand,\u0026quot; it is a comprehensive reflection of people\u0026apos;s perceptions of a country across six areas of national competence: cultural, political, commercial, human assets, investment potential, and tourist appeal. The key determinants influencing a nation\u0026apos;s brand are composed of national image, national relations, national strategy, and national competitiveness. A composite model using respondents\u0026apos; perception surveys and statistical data can help bridge the gap between perception and reality (Jeon et al., \u003cspan class=\"CitationRef\"\u003e2024a\u003c/span\u003e).\u003c/p\u003e\n\u003cp\u003eThe concept of nation branding, initially developed for companies, has gained significant attention in the context of global competition. This shift in perspective has led to the recognition of nation branding as not just a strategy but as a crucial national strategy for enhancing national competitiveness (Lee, \u003cspan class=\"CitationRef\"\u003e2011\u003c/span\u003e; Merkelsen \u0026amp; Rasmussen, \u003cspan class=\"CitationRef\"\u003e2016\u003c/span\u003e; Silvanto \u0026amp; Ryan, \u003cspan class=\"CitationRef\"\u003e2014\u003c/span\u003e). This underscores the vital role of nation branding in today\u0026apos;s competitive global landscape. In the current global scenario, nations actively compete to market their products and services, attract tourists, foreign investors, and international students, among other targets (Rojas, 2013). This active competition further emphasizes the necessity and relevance of nation branding in today\u0026apos;s global environment.\u003c/p\u003e\n\u003cp\u003eOn the other hand, from an academic perspective, future research tasks include specific investigations into the most influential nation branding antecedents that shape nation brands. Additionally, it is essential to examine which of these antecedents have mediating or moderating effects (Rojas \u0026amp; Khoshnevis, 2023). The necessity for quantitative analysis of the critical variables in nation branding underscores the practical implications of this paper. This research addresses these gaps by verifying the mediating and moderating impacts of critical nation branding variables and provides comprehensive guidelines for developing effective nation branding strategies, taking into account regional and demographic sensitivities.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003e2.2 Research hypotheses\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eSeveral papers have been published on the interrelationship between economic factors such as exports, investment, science and technology, infrastructure, and national competitiveness and nation branding (Kalamova et al., 2010; Papadopoulos et al., \u003cspan class=\"CitationRef\"\u003e2018\u003c/span\u003e; Lahrechet al., \u003cspan class=\"CitationRef\"\u003e2020\u003c/span\u003e; Schoeneman, \u003cspan class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e\n\u003cp\u003eMeanwhile, existing nation brand models include non-economic factors such as tourism, culture and heritage, governance, and the quality of citizens. However, there is still a lack of quantitative research on the causal relationship between non-economic factors and nation branding.\u003c/p\u003e\n\u003cp\u003eThe NBV model used in this paper includes non-economic factors that influence nation brand such as national image and national relationships components. Among these factors, tourism has been identified as having a mediating effect, while national strategy has been found to have a moderating effect (Jeon et al., \u003cspan class=\"CitationRef\"\u003e2024b\u003c/span\u003e).\u003c/p\u003e\n\u003cp\u003e2.2.1 Psychological proximity\u003c/p\u003e\n\u003cp\u003ePsychological proximity is an overall concept that includes all ten antecedent factors of nation branding. Psychological proximity refers to the perceived closeness or distance between individuals or groups, not in terms of physical space but their emotional, cultural, and social connectedness. When applied to countries, it describes how close people in one nation feel to those in another, based on factors such as shared history and cultural experiences, personal connections, media exposure, and perceptions of similarity. In the context of nation branding and marketing, psychological proximity can influence how people perceive and relate to a nation\u0026apos;s brand, affecting their attitudes and behaviors towards products, tourism, and investments in that country.\u003c/p\u003e\n\u003cp\u003ePsychological proximity is consisted of two categories such as national image and national relationships. Leadership, human rights, culture, stability, and morality were selected for the national image category, because these factors are pivotal in shaping a nation\u0026apos;s image. Similarly, physical distance, past relationships, current relationships, experience, and tourism were chosen for the national relationship category because they significantly influence a nation\u0026apos;s relationship with its audience. This research has unequivocally confirmed that psychological proximity is not just a theoretical construct but also a tangible force that positively affects a nation\u0026rsquo;s brand (Jeon et al., \u003cspan class=\"CitationRef\"\u003e2024b\u003c/span\u003e). This finding underscores the importance of understanding and harnessing psychological proximity in the context of nation brand.\u003c/p\u003e\n\u003cp\u003e2.2.2 Cultural factor\u003c/p\u003e\n\u003cp\u003eCulture, political values, and foreign policy are the pillars of a country\u0026apos;s soft power (Nye, 2011). This emphasizes the critical role of culture as a key component of soft power, a concept of significant importance in international relations and nation branding. Cultural attractiveness, however, is not a standalone entity; it is a rich, multidimensional blend of elements. Numerous studies highlight the influence of culture on a nation\u0026apos;s brand, which is the unique, multifaceted combination that provides a nation with culturally grounded differentiation and relevance for diverse audiences (Dinnie, 2010). Efforts to enhance a nation\u0026apos;s brand through the global dissemination of popular culture can make a country\u0026apos;s status more competitive on the global stage (Anholt, \u003cspan class=\"CitationRef\"\u003e2011\u003c/span\u003e; Kim \u0026amp; Lee, \u003cspan class=\"CitationRef\"\u003e2018\u003c/span\u003e). Nations increasingly leverage cultural diplomacy to strengthen their international profile, gaining advantages in exports, foreign trade, inward investment, and tourism (Fetscherin, \u003cspan class=\"CitationRef\"\u003e2010\u003c/span\u003e). From a cultural perspective, a nation\u0026apos;s brand reflects its national spirit and values, which is why cultural brands play a leading role in nation branding today (Tul\u0026apos;chinskii, 2013). Future research might include how the cultural and technological environment relates to nation branding (Rojas \u0026amp; Khoshnevis, 2023).\u003c/p\u003e\n\u003cp\u003eIn addition, nation brand composite indicators, such as NBI, CBI, and BSI, have adopted cultural factors as significant element that influences nation brand. The efforts to promote a country\u0026rsquo;s image and improve the perceptions of foreign nationals toward home country through various communication channels are referred to as public diplomacy. Cultural diplomacy is a term that emphasizes the importance of cultural factors within the broader context of public diplomacy. This term indirectly suggests that cultural factors not only have direct impact on nation brand but also serves as mediating factor for various elements that influence nation brand, such as exports, tourism, immigration, and investment. In other words, it refers to the relationships where cultural factors are linked with export marketing, tourism for cultural experiences, cultural attractiveness leading to visits and residency, direct investment in cultural industries, and the attraction of production and research facilities due to cultural appeal. Future researchers should examine how nation branding elements mediate the antecedents and consequences of nation branding (Rojas, 2023 \u0026amp; Khoshnevis). Therefore, we need to statistically verify the direct and indirect relationships that cultural factor has on nation brand by using the SPSS Process Macro Model 4 to test the direct causal relationships and mediating effects. To verify the mediating effect of cultural factors, cultural factors were excluded from the independent variable (psychological proximity).\u003c/p\u003e\n\u003cp\u003eIt is expected that cultural factors will mediate the relationship between psychological proximity (national image and national relationships) and nation brand. The cultural factors are divided into the following three components: (a) film, music, art, sports, literature; (b) similar regions, similar languages, similar ethnic origins, shared experiences; (c) human elements such as entertainers, celebrities, entrepreneurs, and politicians. The cultural factor most likely to influence people\u0026apos;s perceptions is anticipated to be the activities most directly related to people\u0026apos;s cultural experiences, such as film, music, art, sports, and literature. Additionally, using similar languages, having similar ethnic origins, sharing historical experiences, and living in similar regions are expected to have significant impacts. On the other hand, while entertainers, celebrities, entrepreneurs, and politicians have influence, it is expected that they will affect only certain fans or specific social groups. Therefore, the following hypotheses are assumed regarding the mediating effect and the order of mediating effects:\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH1a. Cultural factors mediate the relationship between psychological proximity and nation brand value.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH1b. Among cultural factors, the influence on people\u0026apos;s perceptions will be greatest in the order of a, b, and c.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e2.2.3 Regional difference\u003c/p\u003e\n\u003cp\u003eA country\u0026apos;s culture and cultural content, the primary materials that form a nation\u0026apos;s brand, are traditionally represented by its cultural assets. However, in the current global landscape, countries are increasingly reshaping and developing their renowned culture to establish national homogeneity on the international stage, thereby elevating its importance (Aronczyk, \u003cspan class=\"CitationRef\"\u003e2013\u003c/span\u003e). Regional differences, often perceived as concepts akin to cultural differences, assume a pivotal role in shaping cultural areas. Countries within the same region typically share cultural areas, fostering commonalities in language, race, customs, institutions, culture, and history. This shared context implies that respondents of different nationalities from the same region are more likely to share similar perceptions (Erbas, 2013). According to Rojas and Khoshnevis (2023), future research on nation branding could be conducted in these geographical regions because studies done in countries with strong brands like European countries and countries with weak ones may differ.\u003c/p\u003e\n\u003cp\u003eThis paper addresses how the perception of individuals from different regions can influence a nation brand evaluation. The research classifies the survey respondents\u0026apos; regions into eight distinct categories: Europe, Asia, Africa, North America, South America, Australia/New Zealand, the Middle East, and others. This classification was based on various factors, including geographical proximity, historical interactions, and cultural similarities. A crucial hypothesis of this study is that the region to which the respondents belong significantly moderates their relationship with the nation brand.\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH2. Regional difference moderates the relationship between psychological proximity and nation brand in every country.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e2.2.4 Demographic factors\u003c/p\u003e\n\u003cp\u003eVarious factors, including economic capabilities, human capital, institutional environment, and demographic factors (age and education level), were analyzed as factors affecting national brand competitiveness (Wang \u0026amp; Hsu, 2016; Yavas \u0026amp; Bozoklu, 2018). According to Rojas and Khoshnevis (2023), demographic factors affect relation between nation branding and nation branding consequences. However, quantitative research on how non-economic factors\u0026apos; impact on nation brand varies according to demographic factors is rare. This study enables a deeper understanding of how different population segments perceive the nation brand. Furthermore, understanding how different demographic groups perceive the nation\u0026apos;s brand internationally provides valuable insights for shaping tailored national programs and public diplomatic policy. In conclusion, analyzing a nation\u0026apos;s brand from a demographic perspective enables the development of targeted strategies to enhance a nation\u0026apos;s brand, strengthen international partnerships, and promote a positive global nation brand. Therefore, we propose the following hypotheses:\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH3a. Among demographic factors, age moderates the relationship between psychological proximity and the nation brand in all countries.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH3b. Among demographic factors, education level will moderate psychological proximity and the nation brand in all countries.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH3c. Among demographic factors, occupation will moderate psychological proximity and the nation brand in all countries.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eH3d. Among demographic factors, gender will moderate the relationship between psychological proximity and the nation brand in all countries.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003eBased on the above hypotheses, research model is proposed as shown in Fig. 1.\u003c/p\u003e\n\u003cp\u003e\u0026lt;Figure 1\u0026thinsp;\u0026gt;\u0026thinsp;Research model\u003c/p\u003e"},{"header":"III. Methodology","content":"\u003cp\u003eFirstly, although the direct and indirect relationship between cultural factors and national image and reputation has garnered much attention, there is still a lack of quantitative research on the relationship between cultural factors and other antecedents of national branding or their causal relationship with nation brand. Therefore, this study aims to quantitatively analyze the role of cultural factors (highlighted in green in Table 1) in the relationship between antecedent factors and nation brand.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eSecondly, the nation brand model used for the analysis is shown in figure 2. The nation brand value is calculated as the product of nation brand earnings and nation brand power, and nation brand power is calculated as the sum and product of national competitiveness, psychological proximity, and nation brand strategy. (Cho, 2023; Jeon et al., 2024a)\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 1\u0026gt; Survey questions related to cultural factors. Adapted from Cho (2023)\u003c/p\u003e\n\u003cp\u003eLastly, the importance of studying demographic moderating effects has been mentioned in many existing national branding studies. Practically, determining the presence of moderating effects and segmentation based on demographic factors is crucial for marketing and communication in nation branding. In this study, to consider various political, social, and cultural differences, the moderating effect was analyzed by dividing the respondents (1,600 in total) into eight regions based on nationality: Asia, the Middle East, Africa, North America, South America, Australia/New Zealand, and others. The classification of respondents used to analyze the moderating effect based on regional differences and demographic factors is shown in table 2 (Jeon et al., 2024b).\u003c/p\u003e"},{"header":"IV. Analysis results","content":"\u003cp\u003eThis research used SPSS Process Macro Model 4 to confirm the direct and indirect effects and Model 5 to check whether adding demographic factors and regional differences to Model 4 moderated the direct impact.\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 2\u0026gt; Populations numbers and Percentage based on the classification of respondents\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003e4.1 Mediating effect of cultural factors\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eTo test the direct and indirect effects between psychological proximity and nation brand via the cultural factors, this research employed SPSS Process Macro Model 4. First, it was confirmed that cultural factors play a mediating role between psychological proximity and nation brand, and the detailed results are shown in Table 3. Psychological proximity has a statistically significant positive effect on the nation brand (b=1.135, p\u0026lt;.001). Cultural factor showed a significant mediating effect as both the LLCI (0.886) and ULCI (1.383) are positive numbers and do not contain the value of 0, supporting Hypothesis H1a. Thus, we found not only a positive effect of psychological proximity on the nation brand, but also confirmed the indirect effects.\u003c/p\u003e\n\u003cp\u003eSecondly, among the cultural factors, human elements such as entertainers, celebrities, entrepreneurs, and politicians were found to have the greatest influence, followed by b (similar region, language, ethnic origin, and experience) and a (film, music, art, sports, literature) in that order. This result is contrary to the hypothesis H1b, and the hypothesis H1b was rejected. It has been proven that entertainers, celebrities, entrepreneurs, and politicians can exert immediate and powerful influence through various media such as news and social media. In contrast, cultural and artistic elements such as film, music, and literature may take more time or have a smaller impact than expected. However, since this statistical experiment was conducted based on data from 2023, more detailed analysis is required, along with continuous verification and analysis of past statistical data or post-2023 data. \u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 3\u0026gt; Mediating effect of culture factor on the nation brand\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003e4.2 Regional difference\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eFirst, we categorized the study into eight regions (Europe, Asia, Africa, North America, South America, Australia/New Zealand, the Middle East, and others) based on respondents' nationalities. Next, based on Research Model, which targets 39 countries, this analyzed whether the region to which the respondent belongs moderates the relationship between psychological proximity and nation brand. Among the 39 countries surveyed, 22 countries, including the United States and Germany, were unaffected by regional difference. However, the findings showed that 17 countries, including Australia, South Korea, and Greece, were influenced. Table 4 presents the results of the moderating effect analysis for the 39 countries. Advanced countries in Europe and North America appear to be unaffected by regional difference. However, most countries in Asia, the Middle East, Australia, and New Zealand were affected. Based on the above statistical analysis results, hypothesis H2 was rejected.\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 4\u0026gt; Moderating effects of regional difference for 39 countries\u003c/p\u003e\n\u003cp\u003eTable 5 shows results of Greece and U.K. In the case of Greece, the p-value of the product term is less than 0.05, therefore, it is significant, but in the case of the UK, the p-value is 0.214, which is not significant. While most countries in Europe were unaffected by regional differences, Greece was influenced by regional difference. While there could be various reasons for this outcome, it may be related to Greece's past economic crisis. Amidst the 2008 global financial crisis and the European financial crisis, the Greek financial crisis emerged as a significant factor that deeply wounded the Greece's brand image. In particular, Asian and South American countries were more concerned about Greece's fiscal crisis than European countries (Park et al., 2010). This could be attributed to their higher reliance on international trade and investment, making them more sensitive to global economic shocks. Even though this likely led to deterioration in the Greek nation's brand, it is essential to underline the necessity for a comprehensive and multidimensional cause analysis that comprehends the intricate dynamics of the nation's brand.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003e4.3 Demographic factors\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eStatistical analysis was conducted for 39 countries to scrutinize whether respondents' demographic factors (age, education level, occupation, and gender) moderate the nation's brand. The results showed that 39 countries can be categorized into five categories based on the demographic and regional influence pattern, providing a clear framework for further analysis. Types not affected by all demographic factors, including region, were classified as Category 1, and types affected only by education level or regional difference were classified as Category 2 or 3. Countries with a moderating influence on both region and education level were classified as Category 4, while the rest were classified as Category 5 (Table 6).\u003c/p\u003e\n\u003cp\u003eFirst, Category 1 includes many advanced European countries, and in Asia, it includes China, India, and Indonesia. In South America, Brazil and Chile are included. The fact that the countries in this group are not influenced by any regional or demographic factors can be interpreted in two major ways. The first interpretation is positive. According to Anholt (2007), “The fact is that the reputations of the Netherlands and Amsterdam, Sweden and Stockholm, like most mature and successful brands, have long ago achieved critical mass, so that people simply reject anything negative which threatens to contradict the overwhelmingly positive brand story that they carry in their minds.”The second interpretation is the opposite, where a negative image is formed as a stereotype.\u003c/p\u003e\n\u003cp\u003eSecondly, Category 4 includes all Asian countries except Taiwan, as well as Australia and New Zealand. Among European countries, Turkey is the only one included. The characteristic of this group is that psychological proximity towards the counterpart country varies according to region and education level, which influences the perception of the nation brand. In other words, countries in this group are evaluated differently depending on region and education level. This also reflects the finding that Asian countries have not yet developed a mature, stable, and positive national image like European countries, but it also suggests the potential for future growth.\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 5\u0026gt; a moderating effect of regional difference for Greece and U.K.\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 6\u0026gt; Moderating effect of demographic \u0026amp; regional factors on nation brand for 39 countries\u003c/p\u003e\n\u003cp\u003eThirdly, Category 3, which is only influenced by region, includes Greece and the Czech Republic from Europe, Israel, UAE, and Kuwait from the Middle East, and Mexico from South America. Greece is thought to still be affected regionally due to the lingering effects of the international financial crisis and the European financial crisis. The Middle Eastern countries are also prime examples of regions where geopolitical reasons, political instability, and complex factors like being major oil producers cause regional assessments to vary.\u003c/p\u003e\n\u003cp\u003eFourthly, Category 2, which is only influenced by education level, includes small European countries such as Switzerland, Denmark, and Austria. While they are influenced by educational level, the effect is shown to be relatively minor.\u003c/p\u003e\n\u003cp\u003eLastly, Category 5 stands out with its inclusion of three countries - the United States, Saudi Arabia, and Taiwan (Chinese Taipei) - that have shown completely unique and intriguing results. First, in the United States, it was confirmed that only age had a moderating effect. The moderating effect was found to be relatively low for those in their 20s, while it was notably positive for those in their 50s. In the case of Saudi Arabia, unlike all other countries, there appears to be a moderating effect on occupation. In particular, for respondents classified as business, the increase in nation brand's value due to the moderating effect was relatively low compared to other occupations. \u003c/p\u003e\n\u003cp\u003eA comprehensive and detailed investigation was conducted in Taiwan, where all three factors - age, education level, and regional difference - were found to have a significant and impactful moderating effect, making it a pivotal and unique case for study. Taiwan stands out among a handful of nations with its complex and multifaceted international relations, encompassing intricate economic and political dynamics. It might be posited that the results influenced by the moderating effect in three aspects reflect the respondents' diverse perceptions of Taiwan. In essence, countries worldwide are currently involved in a myriad of economic transactions with China. However, conflicts, such as the ongoing US-China trade war, underscore the complexities of these relations. One of the most sensitive issues between China and the United States is the issue related to Taiwan. Although the United States officially acknowledges Taiwan as part of Chinese territory, the high dependency of many countries, including the United States, on Taiwan for semiconductor-related industries may lead to a perception that Taiwan requires protection from political and economic pressures. While our findings offer insight into this complex and multidimensional situation, a more detailed analysis remains essential.\u003c/p\u003e\n\u003cp\u003eIn Taiwan, the moderating effects on regional difference is shown in Table 7, the moderating effect graph is shown in Figure 3, and the mutual effects graph is shown in Figure 4. \u003c/p\u003e\n\u003cp\u003eTaiwan's nation brand's value increased from 12.735 to 24.379 for non-European regions, while the increase in nation brand's value for European regions increased from 13.124 to 22.129. Interestingly, the increase in nation brand's value of Taiwan was about 10% lower in European regions compared to non-European regions. In addition, regarding education level, it was found that graduate school graduates had a more significant positive moderating effect, and it was confirmed that the positive moderating effect was more significant in those in their 50s. \u003c/p\u003e\n\u003cp\u003eIn the case of Korea, the analysis found that the moderating effect on the level of education was efficient, but the size of the moderating effect was manageable. Specifically, the difference in the moderating effect between college graduates and those with less than a college degree was approximately 4%. Based on the above statistical analysis results, the following hypotheses were supported or rejected:\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 7\u0026gt; Moderating effects of regional difference on the nation brand (Taiwan case)\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eAmong the demographic factors, age had a moderating effect only in the United States and Taiwan out of 39 countries; therefore H3a was rejected. \u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eAmong demographic factors, education level had a moderating effect in only 15 countries, including Korea and Australia, out of 39 countries; therefore H3b was rejected. \u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eAmong the demographic factors, occupation had a moderating effect only in Saudi Arabia among 39 countries; therefore H3c was rejected. \u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eAmong the demographic factors, gender did not have a moderating effect in any of the 39 countries; therefore H3d was rejected.\u003c/em\u003e\u003c/p\u003e\n\u003cp\u003e\u0026lt;Table 8\u0026gt; Moderating effects of demographic factor (education level) in case of Korea\u003c/p\u003e"},{"header":"V. Implications and future research","content":"\u003cp\u003eThe importance of culture, from Tylor's classic work (1871) to Nye's recent concept of soft power (2011), cannot be overstated. This study aims to statistically examine the role and impact of culture, one of humanity's most vital assets, in relation to nation brand. Additionally, the research investigates the mediating effects of culture, combined with moderating effect of regional and demographic factors, across 39 countries, and the findings and future research can be summarized as follows.\u003c/p\u003e \u003cp\u003eFirst, it was confirmed that cultural factors mediated the relationship between psychological proximity and the nation brand, with human elements having the greatest influence among the cultural factors. Therefore, this finding, which includes a quantitative analysis of the mediating effect of cultural factors, reaffirms the significance of cultural factors in the field of nation branding and public diplomacy. The fact that human elements such as entertainers, celebrities, entrepreneurs, and politicians have shown the greatest influence among cultural factors, contrary to the hypothesis, might be due to various reasons. Therefore future research needs to consider following points: Foremost, it is necessary to verify whether the respondents fully understood the context of the questions, as the questions on cultural factors were quite broad. Therefore, providing more detailed explanations of the questions before the survey or adding survey items for each cultural factor can be a good way to obtain responses that fully grasp the context of the questions. Next, the timing or specific situational factors might also play a role. The influence of entertainers, celebrities, entrepreneurs, and politicians may be relatively high during periods of war, elections, or big events. Therefore, more detailed analysis and continuous validation using past or future statistical data are needed.\u003c/p\u003e \u003cp\u003eSecondly, we confirm through Process Macro Model 1 that regional and demographic factors affect each country differently. Additionally, using Process Macro Model 5, we observed similar effects when these factors were combined with the mediating effect of culture. In other word, the effectiveness of cultural exchange programs and opportunities for people to experience a nation's culture in boosting its brand image can vary significantly. This variation is largely influenced by demographic factors and regional differences. Therefore, it is crucial to consider these demographic variations and regional contexts to maximize the impact of cultural exchange and experiences on a nation's brand. For instance, the global appeal and influence of cultural aspects like K-pop, Korean movies and dramas in Asia, and Korean design and fashion in European countries indicate the dynamic nature of regional difference (Kim, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Notably, the enthusiasm and open-mindedness of younger generations are key drivers in cultural exchange, particularly with countries where age has moderating effects. Additionally, the level of education can influence the preferred cultural genres of the other country.\u003c/p\u003e \u003cp\u003eLastly, the moderating effects of demographic factors and regional differences in the target countries resulted in grouping countries with shared characteristics. We aimed to explore the underlying reasons behind cases like Greece and Taiwan, which exhibit moderating effects different from other countries in the same region. In-depth analysis by group or country is a task that should be addressed in future research.\u003c/p\u003e"},{"header":"VI. Conclusion","content":"\u003cp\u003eThis study takes a unique approach by examining the mediating impact of cultural factors among nation branding antecedent factors and the moderating effects of demographic factors and regional difference on the nation brand. By classifying 39 countries into five categories based on the characteristics of the moderating results, this research provides a practical framework for further detailed analysis of causes. This paper confirms that the impact of psychological proximity on nation brand varies by region and demographic factors. As highlighted by this study, it is essential to emphasize the critical importance of developing tailored nation branding strategies that take into account cultural, regional, and demographic diversity on a country-by-country basis.\u003c/p\u003e"},{"header":"Declarations","content":"\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\u003cp\u003eA used B's model to analyze the mediating and moderating effect of cultural, demographic, and regional factors on the relationship between psychological proximity and nation brand.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eAiken, L. S., and West, S. G. (1991). \u0026quot;Multiple regression: Testing and interpreting interactions\u0026quot;, Sage Publications, Inc.\u003c/li\u003e\n\u003cli\u003eAng, S., and Dyne, L.V. (2015). \u0026quot;Handbook of cultural intelligence: Theory, Measurement, and Applications\u0026quot;, New York and London, Routledge.\u003c/li\u003e\n\u003cli\u003eAnholt, S. 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(2017). \u0026quot;Branding India: constructing a reputation for responsibility in the nuclear order\u0026quot;, Place Branding and Public Diplomacy, 13(3), 242-254.\u003c/li\u003e\n\u003cli\u003eSchoeneman, J, and Fullerton, J. (2023). \u0026ldquo;Exploring relationships between nation branding and foreign direct investment\u0026rdquo;, Place Branding and Public Diplomacy (19), 266\u0026ndash;279.\u003c/li\u003e\n\u003cli\u003eSilvanto, S., and Ryan, J. (2014). \u0026quot;Relocation branding: a strategic framework for attracting talent from abroad\u0026quot;, Journal of Global Mobility, 2(1), 102-120.\u003c/li\u003e\n\u003cli\u003eWolfe (2009). \u0026quot;East German Reconstruction\u0026quot;, Asia Policy, No 7, 61-88.\u003c/li\u003e\n\u003cli\u003eWu, L. (2017).\u0026ldquo;Relationship building in nation branding: the central role of nation brand commitment\u0026rdquo;, Place Branding and Public Diplomacy, 13(1), 65-80.\u003c/li\u003e\n\u003c/ol\u003e"},{"header":"Tables","content":"\u003cp\u003eTables 1 to 8 are available in the Supplementary Files section.\u003c/p\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Cultural factors, Demographic factors, Mediating and moderating effect, Nation brand, Regional difference","lastPublishedDoi":"10.21203/rs.3.rs-5335956/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-5335956/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study analyzes the impact of cultural, regional, and demographic factors on nation brand across 39 countries, and verifies the mediating and moderating effects.\u003c/p\u003e \u003cp\u003eFirstly, the analysis was conducted using NBV (nation Brand Value) model which is a hybrid nation brand model incorporating both respondent\u0026rsquo;s perception surveys and secondary statistical data. Nation brand determinants of this model are categorized into five main components: national image, national relationships, nation brand strategy, national competitiveness, and nation brand earnings. National image includes leadership, human rights, stability, morality, and culture, while national relationships encompass current and past relationships, experiences, tourism, and physical distance.\u003c/p\u003e \u003cp\u003eSecondly, the perception survey method involved investigating the nation brands of 39 countries through responses from 1,600 participants residing in 56 countries.\u003c/p\u003e \u003cp\u003eThirdly, the statistical survey method utilized data from international organizations on factors such as physical distance, corruption index, tourism, quality of citizens, and nation brand earnings.\u003c/p\u003e \u003cp\u003eLastly, this study statistically verifies that cultural factors play mediating role in the relationship between psychological proximity and nation brand, and identifies the moderating effects of regional and demographic factors by country. Furthermore, countries with similar or identical results regarding the moderating effects of regional and demographic factors were classified into five groups, and the characteristics of each group and country were analyzed.\u003c/p\u003e \u003cp\u003eThis research holds academic significance in that it verified the distinct role of cultural factors among the nation branding antecedent factors, and conducted case studies on groups and individual countries classified based on the moderating effects of regional and demographic factors. Practically, this enhances the understanding of cultural, regional, and demographic factors that influence nation brand, and helps to develop appropriate nation branding strategies tailored to each country.\u003c/p\u003e","manuscriptTitle":"Analyzing effects of cultural, regional, and demographic factors on nation brand: moderating and mediating dynamics","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2024-11-26 10:08:01","doi":"10.21203/rs.3.rs-5335956/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"8b44e01b-de39-4cef-9402-8e414db37653","owner":[],"postedDate":"November 26th, 2024","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-02-20T14:53:35+00:00","versionOfRecord":[],"versionCreatedAt":"2024-11-26 10:08:01","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-5335956","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-5335956","identity":"rs-5335956","version":["v1"]},"buildId":"qtupq5eGEP_6zYnWcrvyt","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}