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Country-of-origin (COO) effects on product evaluations have been widely applied in international marketing, albeit with mixed results. One stream of research values its importance in decision-making, whereas another stream posits that COO has little effect when compared to the greater diagnosticity of other product attributes. This suggests that how and along what other attributes (extrinsic or intrinsic) COO is presented play an important role in its relative impact. The purpose of this paper is to address these mixed results by applying one such framing perspective based on evaluation mode (i.e. separate versus joint evaluation) and preference reversals and their biasing effects to a study of COO and willingness to pay (WTP) for a product.

A three between-subject (joint evaluation, separate evaluation-domestic and separate evaluation-foreign) experimental design was used to assess whether evaluation mode moderates COO effects on product evaluations.

Similar results are mirrored across three/four countries. When evaluated separately, consumers value an inferior domestic-made product more than a superior foreign-made one. However, when the domestic- and foreign-made products are presented in joint evaluations, the better foreign-made product is favored.

A number of limitations in terms of countries, consumers within the countries and products studied are addressed along with future research that may address these factors and test the robustness of domestic–foreign preference reversals.

The results of this study reveal practical insights to marketers. Marketing managers for better-quality foreign brands are encouraged to engage in comparative advertising appeals and sell their products in retail stores that hold both domestic and foreign products, whereas marketers for domestic products should create a selling environment that facilitate only a separate evaluation mode to enhance WTP.

This paper provides insights on the diagnosticity of COO when presented alongside intrinsic attributes and the role of evaluation mode in shaping consumers’ preferences. This research suggests that COO has different effects in different evaluation modes, thus explaining some of the mixed results in literature regarding its importance. On the one hand, COO has a decisive effect on product evaluations when products are presented separately. On the other hand, COO effect is overridden by intrinsic cues, which become more apparent when products are presented jointly. Overall, these results demonstrate the robustness of the preference reversal effect across countries and products.

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.

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.

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.

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.

The purpose of this paper is to examine the inconsistency of explicit and implicit domestic country bias (DCB) across different types of products and in the context of two countries.

Two studies in two countries are conducted to examine the inconsistencies in implicit and explicit DCB. The first study collected data through mall intercept survey method in Taiwan and identified 189 valid respondents. The second study applied a mixed (within and between subjects) factorial experiment in China using 200 subjects.

Results show that explicit and implicit attitudes are moderately related to each other. The results also confirm that ethnic product typicality can explain inconsistencies in both explicit and implicit DCB. For ethnically typical products, DCB is more pronounced in consumers’ explicit attitudes than in consumers’ implicit attitudes. On the contrary, for ethnically atypical goods, DCB makes itself present in both explicit and implicit attitudes.

The results shed new light on DCB and confirm that the bias could divaricate between explicit and implicit attitudes in the case of ethnically typical products.

The purpose of this paper is to better understand an increasingly widespread practice consisting, of a brand, in signaling the domestic origin of its products aimed at domestic consumers, that is, the “made in the domestic country” (MIDC) strategy. To this end, it is proposed to analyze the MIDC label as a cue interacting with the brand’s characteristics (brand equity and country of origin of the brand).

A between-subjects experiment is conducted among 293 French consumers on four different brands of pasta. The overall design is a 2 (with/without the MIDC label) × 2 (high/low brand equity) × 2 (domestic/foreign brand) mixed design.

The results show that intention to buy the product increases significantly with the presence of the MIDC label, but not so willing to pay. The positive effect on buying intention is greater when: the product has rather low brand equity, consumer ethnocentrism is high and/or consumers are strongly attached to their national identity.

The present research extends the literature on country-of-origin effects by taking into account the role of the brand equity of the product. However, the study focused on only one low-involvement product category (pasta) and one country (France).

This study shows that adding an MIDC label to the product is empirically justified.

While moderate or high scores on “patriotic” variables reinforce the positive impact of the MIDC label, low scores reverse the trend, that is, cause rejection.

Purpose – Examine the role of institutional investors in accelerating the development of capital markets and economies abroad, the determinants of their investment, both in the domestic and foreign markets, and their importance in promoting good corporate governance practices worldwide and facilitating increased financial integration.

Methodology/approach – Review and synthesize recent academic literature (1970–2011) on the process of international financial integration and the role of foreign institutional investors in the increasingly global financial markets.

Findings – Despite the concern that short-term flow of international capital can be destructive to the emerging and developing market economies, academic evidence on a destabilizing effect of foreign investment activity is limited. Institutional investors’ systematic preference for stocks of large, well-known, globally visible foreign firms can explain the presence of a home bias in international portfolio investment.

Research limitations – Given the breadth of the two literature streams, only representative studies (over 45 published works) are summarized.

Social implications – Regulators of emerging markets should first improve domestic institutions, governance, and macroeconomic fundamentals, and then deregulate domestic financial and capital markets to avoid economic and financial crises in the initial stages of liberalization reforms.

Originality/value of paper – A useful source of information for graduate students, academics, and practitioners on the importance of foreign institutional investors.

In view of the increasingly dynamic ethnic composition of nation states in Europe and elsewhere, this paper aims to examine the effects of ethnic affiliation on ethnocentrism and domestic purchase bias, and to test a model of consumer ethnocentrism antecedents and outcomes in a multi‐ethnic transitional economy.

Empirical data were collected via personal interviews from 580 urban consumers in Bosnia and Herzegovina, which was, in the aftermath of violent ethnic conflicts in the Balkans, divided into two major sub‐regions inhabited by three clearly identifiable ethnic groups. A structural model with five first‐order reflective constructs was evaluated to test the hypothesized relationships.

The findings confirm that both national identity and nationalism are significant predictors of consumer ethnocentrism, and that ethnic affiliation has a direct effect on both consumer ethnocentrism and on domestic purchase bias. However, the antecedent nature of cultural openness in relation to consumer ethnocentrism was not confirmed.

While it has been suggested previously that, when consumers have dual allegiances, the construct of national identity may be of a lesser explanatory power, the results attest to the value of both nation‐state level constructs in the model as reliable predictors of consumer ethnocentrism. The findings also suggest that a differentiated marketing strategy may be warranted on entering multi‐ethnic markets.

Unlike most prior studies that tested ethnocentrism models across different countries with citizens of each country being addressed as a culturally/ethnically uniform group, this study does not limit in‐groups to a nation state, but examines groups based on ethnic affiliation.

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.

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.

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.

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.

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.

International marketing researchers have long been concerned with determining whether consumers are predisposed towards a preference for domestic products, as opposed to foreign products. The purpose of this paper is to assess such a domestic‐country bias (DCB) in the German market.

This study empirically investigates DCB across six countries and 14 product categories in the Germany market. By so doing, it replicates an earlier study conducted in the UK. Ordered logit analysis was employed as well as multidimensional unfolding to present results.

As in the study conducted in the UK, there is in general a strong DCB in the German market. However, it differs largely across the 14 product categories. Results indicate that consumer preference rankings can best be explained by a combination of demographic variables and country‐of‐origin effects.

Results indicate that domestic firms in Germany can well rely on a safeguarding effect when marketing their products. At the same time, managers from foreign countries cannot rely on consumer ethnocentrism as a reliable indicator of the inclination of consumers to downgrade their products.

This study confirms some findings from the UK. However, results from Germany indicate that at least economic competitiveness of the country‐of‐origin plays a role in determining respondents' judgments. This study underlines the value of replication studies in cross‐cultural settings in particular.

The purpose of this paper is to examine the relevance of retailer country-of-origin (COO) on consumers’ actual choice between foreign and domestic retailers. It explores two basic issues regarding the relevance of COO, first to assess consumer perceptions regarding the importance of retailer COO (PIO) and the importance of supporting domestic retailers (PISD) in store choice decisions. The second is to analyse the influence of these factors on store choice decisions. Relative influence of PIO and PISD (compared to the retail mix factors) was also evaluated.

Data were collected through a consumer survey targeting grocery consumers in a second-tier city in China. Factor analysis and binary probit models were used to analyse the data.

The authors found that a considerable proportion of respondents perceive retailer COO and being supportive of domestic retailers as important factors when choosing between foreign and domestic retailers. Interestingly, results of probit analysis showed that consumers’ perceived importance of retailer COO (PIO) did not have a significant impact on consumer store choice behaviour. In contrast, consumers’ perceived importance of supporting domestic retailers has a negative effect on consumers’ choice of foreign retailers. Results of the relative contribution of retail mix factors and COO variables showed that generally, COO variables are as important as retail mix factors.

This study is one of the few empirical studies on the relevance of retailer COO and it focused on two basic issues concerning the consumer perceptions regarding the importance of retailer COO, seldom studied previously. This study makes a significant contribution to the COO literature not only because it focuses on the retailing context but also by providing a fresh perspective.

This research aims to find out the reasons why Chinese people prefer domestic products. The authors examine the effect of consumer ethnocentrism (CE), social norms (SNs) and national identity (NI) on willingness to buy (WTB) domestic products in two time points and test the product category differences and age group differences.

Two survey studies (n₁ = 314; n₂ = 346) were conducted in China in 2021 and 2022, respectively. The authors measured CE, SNs, NI and WTB domestic products in both studies and WTB four categories of products in study 2. Multiple hierarchical linear regression was conducted to test the hypotheses.

In study 1, the authors found that SNs and NI significantly predicted WTB domestic products, but CE did not. In study 2, the authors found that all three indicators significantly predicted WTB domestic products. CE played a significant and consistent role in different product categories, while SNs and NI had inconsistent effects. NI predicted WTB domestic products for younger people but not for older people.

This research is the first to examine CE, SNs and NI in the same study and the first to explore the role of SNs and NI in WTB domestic products in China. It promotes the understanding of CE and other related factors, increases the knowledge of Chinese consumers’ purchasing behavior and indicates the power of the situation. Practical implications are also discussed.