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1 – 10 of 62Padmali Rodrigo, Hina Khan and Naser Valaei
Despite the plethora of research into country-of-origin (COO) effects, research that investigates the cognitive structures behind elite consumers' preferences for foreign brands…
Abstract
Purpose
Despite the plethora of research into country-of-origin (COO) effects, research that investigates the cognitive structures behind elite consumers' preferences for foreign brands remains limited. Hence, this study aims to investigate the cognitive structures behind foreign brand preference among professional elites in Sri Lanka.
Design/methodology/approach
Using the means-end chain (MEC) theory as the theoretical lens and building on the findings of 30 laddering interviews (semi-structured), a survey was conducted among 311 professional elites to uncover the key elements of the cognitive structures behind foreign brand preference.
Findings
The findings revealed that the cognitive structures behind foreign brand preference are influenced by a bundle of brand attributes, brand consequences and personal values of elites', which significantly influence their attitudes towards foreign brands. Multi-group analysis further revealed that the relationship between brand attributes and attitudes significantly differs across Chinese and US COOs where the path coefficient is stronger for elites' preference for Chinese brands.
Originality/value
This study is the first of its kind to explore the COO effects on consumer cognitive structures. The findings contribute to MEC theory and shed light on the understanding towards elites' preference for foreign brands.
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Kenneth Fu Xian Ho, Fang Liu and Liudmila Tarabashkina
The effects of country-of-origin (COO) cues on product evaluations are well documented. However, research on the relative effects of COO compared to other geographical indicators…
Abstract
Purpose
The effects of country-of-origin (COO) cues on product evaluations are well documented. However, research on the relative effects of COO compared to other geographical indicators, such as region-of-origin (ROO), on food purchases is still limited. This study investigates how geographical origin labels influence consumers' perceptions of product value and authenticity of foreign food, as well as subsequent purchase intention (PI) and willingness to pay premium prices (WTPPP). The moderating role of health consciousness on these relationships is also examined due to the coronavirus disease 2019 (COVID-19) pandemic.
Design/methodology/approach
This study uses a between-subjects experimental design conducted with 300 middle- and high-income Chinese consumers aged between 25 and 50 years. Hypotheses were tested using structural equation modelling.
Findings
Whilst under both COO and ROO cues, all five product values positively influenced consumers' WTPPP, only functional, economic and novelty values influenced PI. The ROO cue performed significantly better than the COO cue in eliciting functional, economic and novelty value perceptions, which triggered stronger PI and willingness to pay a premium price. These relationships were mediated by product authenticity (PA) and moderated by consumers' health consciousness (HC).
Practical implications
Because food labels provide salient product information that facilitates consumers' evaluation of products, marketers should assess which product value perceptions they wish to enhance and then choose the appropriate geographical indicators for their labelling strategies.
Originality/value
This study identifies the effects of COO and ROO cues on product values, authenticity, PI and WTPPP. It also provides valuable insights into the role of HC on consumers' purchase decisions, which also aids in understanding the impact of global crises on food purchases.
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Clement S.F. Chow, Wing Chi Chow, Weng I. Leong and Shizhe Zheng
Western manufacturers have often benefited from the Country-of-Origin (COO) effect when a product is launched into emerging markets. The authors examine if this still holds true…
Abstract
Purpose
Western manufacturers have often benefited from the Country-of-Origin (COO) effect when a product is launched into emerging markets. The authors examine if this still holds true in the China market. The authors believe that the degree of perceived hedonism associated with the product does matter and, therefore, conducted an experiment to test how this influences the effect of COO on perceived quality and price of the product. This paper aims to discuss the aforementioned objective.
Design/methodology/approach
A lab experiment with a 2 (COO: Western vs. Local) x 2 (Hedonism: High vs. Low) factorial design was conducted with Chinese consumers as subjects. The dependent variables were perceived quality and price of the products.
Findings
It was found that Western COO has a positive effect on the product perceived quality and price in the China market, but the effect was significantly moderated by the degree of perceived hedonism of the products.
Originality/value
The study used an experiment to investigate the different prominence of the COO effect on perceived quality and price in terms of hedonic vs. utilitarian products which has not been done previously. The findings provide implications concerning allocation of marketing resources to product positioning in the presence of different degrees of perceived hedonism and suggest additional areas for future examination.
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Sreejesh S., Minas Kastanakis and Justin Paul
This study aims to examine the influence of two significant product labelling strategies (geographical indication [GI] vs country-of-origin [COO]) on shaping customer product…
Abstract
Purpose
This study aims to examine the influence of two significant product labelling strategies (geographical indication [GI] vs country-of-origin [COO]) on shaping customer product attitude and purchase likelihood, considering consumers’ ethnocentric and cosmopolitan tendencies. The authors also investigate the boundary conditions and intervening mechanisms to manage the adverse consumer product evaluations and present mitigating procedures which reinstate favourable product evaluations and purchase likelihood.
Design/methodology/approach
The collected data from these all these studies were analysed using ANOVA and mediation anlaysis. The study tests the proposed hypotheses using three follow-up experimental investigations.
Findings
The study found that GI (vs COO) labels have a more significant impact on customers’ product evaluation and likelihood of purchase and supported the dispositional effect of ethnocentric and cosmopolitan inclinations. Further, the results indicated that self-product congruence can efficiently regulate consumer dispositions. Also, the results confirmed the significant impact of product identification on influencing consumer attitudes.
Practical implications
The above-said insights add practical insights, particularly concerning product labelling. Also, the insights on product attitudes and purchase likelihood intricacies in the context of product labelling enable companies to comprehend better the significance of GI labels, COO labels and self-product congruence.
Originality/value
To the best of the authors’ knowledge, this is the first time a study has compared the role of two significant product labelling strategies (GI vs COO) in shaping customer product evaluations, confirmed its boundary conditions and shown how to transform them into helpful customer product outcomes.
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Thomas Koerber and Holger Schiele
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…
Abstract
Purpose
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.
Design/methodology/approach
This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.
Findings
Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.
Originality/value
The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.
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Deli Dotse Gli, Ernest Yaw Tweneboah-Koduah, Raphael Odoom and Prince Kodua
Customer loyalty is of growing interest to many service firms due to the many tangible and intangible benefits it offers them. However, building customer loyalty is challenging…
Abstract
Purpose
Customer loyalty is of growing interest to many service firms due to the many tangible and intangible benefits it offers them. However, building customer loyalty is challenging for many service firms. This study aims to examine the impact of corporate reputation on customer loyalty. It also assesses the moderating role of the firm's country of origin in this relationship.
Design/methodology/approach
Survey research design was used to collect data from 367 universal banks' customers. Data were analysed using structural equation modelling.
Findings
The findings shed light on several crucial aspects of corporate reputation that influence customer loyalty. Specifically, signals of corporate social responsibility, corporate credibility, product attributes and relationship marketing were found to have a substantial impact on customer loyalty. Additionally, the study uncovers a noteworthy insight that the firm's country of origin plays a moderating role in the relationship between corporate reputation and customer loyalty, particularly in the context of the banking sector.
Originality/value
This research stands out due to its utilisation of signalling theory, making it one of the pioneering works in the bank brand management literature. It presents a comprehensive corporate reputation framework and its profound implications for customer loyalty. Furthermore, the study underscores the significance of considering the strength of the country-of-origin effect in shaping customer loyalty relationships.
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Sedki Karoui, Samy Belaid and Romdhane Khemakhem
Religious tendencies have increased in post-Arab Spring countries, raising the question of whether this geopolitical event has affected consumers' orientations towards foreign…
Abstract
Purpose
Religious tendencies have increased in post-Arab Spring countries, raising the question of whether this geopolitical event has affected consumers' orientations towards foreign products, including those that have positive country-of-origin image. This paper investigates the effect of Islamic religiosity on the relationship between consumer ethnocentrism and buying intention towards products from a developed country (France) in an Arab Spring country (Tunisia).
Design/methodology/approach
A survey questionnaire was lunched and data was collected from 492 Tunisian consumers living in both rural and urban areas. Research hypotheses were tested using a Partial Least Square- Structural Equation Modelling (PLS-SEM) method.
Findings
Tunisian consumers do not associate their ethnocentric feelings towards French products with their Islamic religiosity. Results show that both highly and moderately religious Tunisians trust French products because of their high country-of-origin image and their potential social connotations.
Originality/value
The results of this paper contribute to the literature that focuses on understanding consumption behaviours in developing countries in the aftermath of geopolitical events such as the Arab Spring.
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Amonrat Thoumrungroje, Adamantios Diamantopoulos and Nathalie Caroline Scherer
Drawing on cue utilization theory and the theory of motivated reasoning, we investigate the impact of consumer xenocentrism on product preferences in a situation where domestic…
Abstract
Purpose
Drawing on cue utilization theory and the theory of motivated reasoning, we investigate the impact of consumer xenocentrism on product preferences in a situation where domestic products objectively outperform their foreign counterparts.
Design/methodology/approach
We develop and test a model linking xenocentrism to consumers’ preference towards domestic vs. foreign products by (1) examining the mediating role of consumers’ ability to identify the superior product and (2) assessing the role of product involvement in potentially moderating this relationship. An experimental design was employed, whereby respondents (Thai consumers, N = 579) were asked to compare two products in the same product category, one foreign and one domestic. In one condition, the foreign product outperformed the domestic one on a range of relevant product attributes, whereas in a second condition, the opposite was the case.
Findings
Our findings provide clear evidence that xenocentric consumers often cannot recognize the superiority of domestic products and, even if they do, they still exhibit preferences toward (inferior) foreign products. Thus, for xenocentric consumers, it seems that the country of origin (COO) overrides other cues and often results in suboptimal product choices.
Originality/value
Our study adds to our theoretical understanding of the functioning of the consumer xenocentrism construct and has important implications for foreign companies targeting xenocentric consumers as well as for local firms seeking to counteract xenocentric tendencies.
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Zulfiqar Ali Jumani and Nazlida Muhamad
The religious-based brands are increasing daily, and different organizations target religious consumers. However, a scarcity of research in developing nations makes it difficult…
Abstract
Purpose
The religious-based brands are increasing daily, and different organizations target religious consumers. However, a scarcity of research in developing nations makes it difficult to determine how customers evaluate religious brands. This study aims to develop a model based on Ajzen’s (1985) theory of planned behaviour (TPB). It incorporates the three mediating factors of religious brand attitude, subjective norms and perceived behavioural control.
Design/methodology/approach
A total of 499 (232 Malay and 267 Thai Muslim) respondents were surveyed systematically by adopting the purposive non-probability sampling technique. Empirically three studies with the extended model were tested in a cross-cultural context.
Findings
The results illustrate that the religious brand attitude affects the buying behavioural intentions of Muslims. The analysis found the significant role of Islamic brand attitude and mediating variables. Islamic brand by the customer is the second most significant component after Islamic brand by country of origin. The research provides a theoretical model for the research foundation and a model to analyse religious brands in diverse backgrounds.
Research limitations/implications
Only three different religious brand views were considered independent factors in this study, together with the development of TPB behavioural expectations. The research looked at three different regions in Malaysia as well as Thailand. The research also provides a model that can be used to analyse how various customers view well-known companies and religious brands.
Practical implications
Researchers, teachers and practitioners in the domains of advertising, marketing communications, consumer behaviour and sociology will find this study useful.
Originality/value
The authors develop a novel dual religiosity conceptual model to delineate the sequential nature of religious opinion formation, behaviour and consumption of religious brands. In addition, the authors provide an example using the PLS model analysis as a supporting example.
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Shaofeng Yuan, Jinping Li and Ying Gao
This study investigated a new attributional phenomenon in a brand scandal setting in which consumers tend to blame the top management of a brand, even though it was the frontline…
Abstract
Purpose
This study investigated a new attributional phenomenon in a brand scandal setting in which consumers tend to blame the top management of a brand, even though it was the frontline parties that caused the scandal. The authors termed this phenomenon upward blame attribution (UBA), shedding light on whether consumers in a host country indicate a higher UBA for a multinational (vs domestic) brand scandal, which in turn reinforces their revenge and impairs their reconciliation reactions, and whether these effects are contingent on consumer animosity.
Design/methodology/approach
Two experimental studies were conducted with real and fictitious brand/product and country stimuli with 1,399 Chinese participants.
Findings
Both studies verified UBA and found that Chinese consumers' UBA is higher for multinational (vs domestic) brand scandals, which drives their stronger desire for revenge and weaker desire for reconciliation. Moreover, consumers with high (vs low) animosity toward a multinational brand's home country reported a higher UBA for the multinational (vs domestic) brand scandal, which in turn reinforces their desire for revenge and impairs their desire for reconciliation.
Practical implications
The study provides new insights into host-country consumers' more severe UBA and responses toward multinational versus domestic brand scandals and the amplifying role of consumer animosity in these processes. It also has implications for mitigating host-country consumers' UBA and negative responses to multinational brand scandals.
Originality/value
This study contributes to the blame attribution literature by verifying consumers' UBA and the country-of-origin (COO) literature by revealing host-country consumers' higher UBA, stronger revenge desire and weaker reconcile desire toward multinational (vs domestic) brand scandals. It extends the knowledge regarding consumers' blame attributions toward the top management of a multinational (vs domestic) brand in scandals and the impact of such attributions.
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