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Article
Publication date: 31 August 2020

Yohan Bernard, Véronique Collange, Aurore Ingarao and Sarra Zarrouk-Karoui

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

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Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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).

Practical implications

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

Originality/value

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.

Details

European Journal of Marketing, vol. 54 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 12 February 2018

Ting-Hsiang Tseng, George Balabanis and Matthew Tingchi Liu

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Marketing Review, vol. 35 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 January 2014

Yue Meng-Lewis, Des Thwaites and Kishore Gopalakrishna Pillai

This study investigates Chinese consumers' responses to foreign and domestic sponsors engaged in the Beijing Olympic Games. It identifies direct causalrelationships between…

Abstract

This study investigates Chinese consumers' responses to foreign and domestic sponsors engaged in the Beijing Olympic Games. It identifies direct causal relationships between consumer ethnocentrism, attitudes towards the sponsor and product judgement. Findings reveal that event involvement mediates the positive relationship between consumer ethnocentrism and attitudes towards the domestic sponsor. Attitudes towards foreign sponsors are found to be a significant mediator in the relationship between consumer ethnocentrism and judgements of the sponsors' products. Theoretical and managerial implications are discussed.

Details

International Journal of Sports Marketing and Sponsorship, vol. 15 no. 2
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 1 October 1988

Elko J. Kleinschmidt and Robert G. Cooper

This research probed the impact of an international versus domestic new product strategy on new product success. The study used 123 successes and 80 new product failures in 125…

Abstract

This research probed the impact of an international versus domestic new product strategy on new product success. The study used 123 successes and 80 new product failures in 125 industrial firms in Canada. Two international dimensions were hypothesised to be related to new product performance: (1) the degree to which the product was developed for international versus domestic use; and (2) target market selection — domestic versus nearest neighbour versus world market. Successful products were found to be more international in terms of product design and marketing activities and products developed for international markets were more successful on a number of performance measures. Firms that elected an export strategy for their new products (in particular, a strategy aimed at world markets and not only at nearest neighbours) and developed products for international markets did better in foreign as well as domestic markets.

Details

European Journal of Marketing, vol. 22 no. 10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 18 March 2024

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

307

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.

Details

International Marketing Review, vol. 41 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 May 2023

Qifan Jia, Rui Chen, Yihan Zuo, Run Liu, Roushan Gong, Linnan Huang, Chen Chen and Bangyi Xue

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 10
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 25 January 2008

Irena Vida and James Reardon

This study focuses on consumer choice behavior in the context of a new European Union (EU) member state by examining cognitive, affective and normative mechanisms in consumer…

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Abstract

Purpose

This study focuses on consumer choice behavior in the context of a new European Union (EU) member state by examining cognitive, affective and normative mechanisms in consumer preference formation for domestic vs imported products.

Design/methodology/approach

Data is drawn from a survey of 714 adult consumers. The research instrument included construct measures adapted from previous studies. The measurement model of domestic consumption was tested via covariance analysis. Once the construct reliability and validities were established, the structural model was evaluated to test the hypothesized relationships.

Findings

The findings suggest that affective and normative constructs (i.e. consumer ethnocentrism and patriotism) are stronger determinants of domestic consumption than rational considerations (the cognitive mechanism) such as perceptions of relative product quality of domestic vs imported products. The role of patriotism and cosmopolitanism as factors fuelling ethnocentric tendencies are confirmed.

Practical implications

Our results, showing the considerable relative strength of patriotism and ethnocentrism on domestic consumption suggest that managers of local brands and domestic institutions should be able to enhance their communication programs and develop close bonds with their consumers. This finding is an important signal to international entrants in positioning their international offerings, particularly as strong local brands are gaining market share in many emerging consumer markets.

Originality/value

In view of emerging transnational groupings such as the EU, this study examines possible consumer resistance to economic integration. It uses realistic data set drawn from adult consumers and focuses on a relatively homogeneous country with a small population allowing for a good external validity of findings.

Details

Journal of Consumer Marketing, vol. 25 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 6 May 2014

Kyung Tae Lee, You-Il Lee and Richard Lee

The purpose of this study is to investigate the differential influences of economic nationalism (EN) and cosmopolitanism (COS) on consumer behaviour, and how the two concepts are…

1905

Abstract

Purpose

The purpose of this study is to investigate the differential influences of economic nationalism (EN) and cosmopolitanism (COS) on consumer behaviour, and how the two concepts are underpinned by different (normative versus informational) interpersonal influences.

Design/methodology/approach

Surveys took place in two countries, South Korea (n = 257) and Taiwan (n = 258). Both are rapidly developing economies with a cosmopolitan consumer base. Two products, one representing conspicuous and one representing non-conspicuous categories, were used in each country’s survey. The data were subjected to exploratory and confirmation factor analyses and fitted using structural equation modelling.

Findings

Contrary to past studies, EN and COS were unrelated. Economic nationalism was strong and biased towards domestic products. The results also suggest that COS may be related to bias against domestic products. EN related strongly to normative influence, whereas COS rested on informational influence. The results were similar across the countries and the product types.

Research limitations/implications

Economic nationalism and COS may coexist as consumer dispositions and their relative salience may vary across individuals. Foreign firms should not overlook consumers’ nationalistic sentiment, just as domestic firms may capitalise on it. Both foreign and domestic firms can capitalise on consumer nationalism by highlighting benefits such as domestic employment and wealth creation.

Practical implications

EN and COS may coexist as consumer dispositions, and their relative salience may vary across individuals. When managing their brand portfolio, foreign firms would benefit from considering consumers’ nationalistic sentiment, just as domestic firms may capitalise on it. Both foreign and domestic firms can capitalise on consumer nationalism by highlighting social benefits such as domestic employment and wealth creation.

Originality/value

This study brings research on EN and COS from a macro/country level to a micro/individual level. It provides theoretical and empirical insights on the differential influences of EN and COS on consumer behaviour and sheds light on their psychological underpinnings.

Details

European Journal of Marketing, vol. 48 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 18 October 2018

Yung-Shen Yen

While the idea that consumer ethnocentrism influences the willingness to buy domestic products is a well-known assumption for marketers, the purpose of this paper is to examine…

1436

Abstract

Purpose

While the idea that consumer ethnocentrism influences the willingness to buy domestic products is a well-known assumption for marketers, the purpose of this paper is to examine the moderating effect of consumer ethnocentrism on the willingness to buy domestic products in developing countries.

Design/methodology/approach

Hierarchical moderator regression analysis and simple slope analysis are used to test the postulated hypotheses, and 385 consumers in Taiwan are studied.

Findings

The findings revealed that consumer ethnocentrism, perceived quality, perceived price and perceived brand image are significantly associated with the willingness to buy domestic products. Moreover, consumer ethnocentrism significantly moderates the relationships of the model.

Research limitations/implications

Consumer ethnocentrism increases the positive effects of perceived quality and perceived brand image on the willingness to buy domestic products in developing countries, whereas it may increase the negative effect of perceived price on the willingness to buy domestic products.

Practical implications

The results of this study suggest that practitioners should not only improve the quality and brand image of domestic products but also avoid putting a high price on domestic products to increase the willingness to buy domestic products for consumers in developing countries.

Originality/value

This study advances the consumer ethnocentrism theory by adding the moderating effect of consumer ethnocentrism to the model.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 February 1987

James Love

The issue of export instability exerts an enduring fascination for economists with an interest in the area of economic development. Over several decades a voluminous literature…

Abstract

The issue of export instability exerts an enduring fascination for economists with an interest in the area of economic development. Over several decades a voluminous literature has emerged embracing debates on the domestic consequences and on the causes of export instability. The purpose here is to examine these debates and an attempt is made to set out different theoretical stances, to classify and examine empirical findings, and to indicate the directions in which the debates have moved. Such a statement of a review article's purpose is, of course, incomplete without more specific delineation of the boundaries within which the general objectives are pursued. Here that delineation has three facets.

Details

Journal of Economic Studies, vol. 14 no. 2
Type: Research Article
ISSN: 0144-3585

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