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Article
Publication date: 18 July 2008

Guijun Zhuang, Xuehua Wang, Lianxi Zhou and Nan Zhou

The purpose of this study investigates the asymmetric effects of brand origin confusion (BOC) on consumer preference and the purchase of local versus foreign brands in China…

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Abstract

Purpose

The purpose of this study investigates the asymmetric effects of brand origin confusion (BOC) on consumer preference and the purchase of local versus foreign brands in China. Drawing on the general country‐of‐origin (COO) literature and recent developments in brand‐origin studies and the emerging market phenomenon globally, it proposes and test a model of the asymmetric effects of BOC on consumer preference and the purchase of local versus foreign brands in China. This study intends to help to explain from a new angle the decreasing competitiveness of foreign brands in emerging markets, such as China.

Design/methodology/approach

The study pretest on nationally distributed brands across seven product categories resulted in a final set of 67 brands: 35 foreign and 32 local. Four hundred respondents evaluated measures related to brand origin, brand awareness, brand value, brand preference, and brand purchases in the previous six months. Hierarchical regression analysis was used in data analysis.

Findings

The hypotheses on the asymmetric effects of BOC between local and foreign brands in China were mostly supported. Specifically, the results showed that local brands are likely to be in an advantageous position when there is a high level of BOC. However, as the brand knowledge of consumers increases, the effects of BOC decrease.

Originality/value

This study provides evidence of the asymmetric effects of BOC between local and foreign brands and the moderating role of brand knowledge for local brands in China. It fills a gap in the international branding and marketing communication literature, and offers meaningful managerial insights for both local and international companies to formulate effective branding and marketing communication strategies in China and possibly in other emerging markets.

Details

International Marketing Review, vol. 25 no. 4
Type: Research Article
ISSN: 0265-1335

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…

86

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 consumerspreference 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: 23 March 2023

Padmali 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.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 28 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 27 March 2019

Rania W. Semaan, Stephen Gould, Mike Chen-ho Chao and Andreas F. Grein

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…

1103

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

This paper provides insights on the diagnosticity of COO when presented alongside intrinsic attributes and the role of evaluation mode in shaping consumerspreferences. 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.

Details

European Journal of Marketing, vol. 53 no. 5
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 25 August 2021

Sherry Xueer Yu, Guang Zhou and Jing Huang

This article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and…

1224

Abstract

Purpose

This article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and product quality.

Design/methodology/approach

The authors conducted two studies to test our hypotheses. In Study 1, the authors explored consumers' general preferences for domestic and foreign brands. Based on the evidence, Study 2 further explored the moderating roles of decision focus and product quality.

Findings

In general, consumers in developing countries prefer foreign brands. The effect can be moderated by the decision focus that this preference will be more obvious when consumers buy for others than when they buy for themselves. Product quality can also moderate the role of decision focus; in other words, consumers' preference for foreign brand when buying for others will be stronger when the product quality is low than when the product quality is high.

Practical implications

Foreign brands have a natural appeal to local consumers in developing countries. Moreover, foreign brands can also invoke consumers' awareness of buying for others (such as giving gifts) to boost sales. Domestic brands are at a disadvantage comparing to foreign brands, but they can increase their attractiveness by invoking consumers' awareness of rewarding themselves. In addition, domestic brands need to improve product quality to fundamentally improve their competitiveness.

Originality/value

The research contributed to literature by combining decision focus and product quality in studying consumer preference for domestic and foreign brands from the perspective of construal level theory, which provides valuable insights in the field of international marketing and consumer behavior.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 June 2023

Daniel Esteban May, Sara Arancibia, Calvin Wang, Nigel Hill and Karl Behrendt

This research explores the purchasing behavioural drivers of young Chinese consumers purchasing foreign clothing brands. The aim is to include a range of drivers identified by…

Abstract

Purpose

This research explores the purchasing behavioural drivers of young Chinese consumers purchasing foreign clothing brands. The aim is to include a range of drivers identified by different investigations into a single approach, to determine direct and indirect channels by which these drivers influence purchasing behaviour, and their relative importance in quantitative terms.

Design/methodology/approach

The methodology is based on an extended version of the theory of planned behaviour that considers hypotheses based on a number of studies revised in the literature review. This theoretical framework was used as the basis for a questionnaire applied to a sample of 362 young Chinese consumers. A Partial Least Squares Structural Equation Modelling approach was used to analyse the collected data.

Findings

The results revealed three main channels influencing purchasing behaviour which were shown to share the same root, corresponding to the influences of the social network young consumers belong to. This result suggests that social norms have a key role in explaining young consumers' purchasing behaviour through its impact on their needs for status and social recognition, their attitudes towards foreign cultures and foreign brands, and their beliefs regarding the attributes of foreign clothing.

Practical implications

The work therefore provides companies operating in the foreign clothing market the confidence to devise business strategies that focus on the channel demonstrating the highest influencing power. A strategy likely to have the highest influencing power is one that uses celebrities to promote the reputation of products and reinforce the messages associated with status and social recognition. Reinforcement of these strategies could include secondary strategies linked to the other channels such as the one related to the adoption of foreign cultural symbolism.

Originality/value

In contrast to the majority of related studies, this investigation also explores indirect channels or paths by which a behavioural driver affects the behaviour of young Chinese consumers. In fact, this investigation not only simultaneously identified the different paths influencing young Chinese consumers purchasing behaviour but also quantitatively identified their relative importance.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 12
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 3 January 2017

Aastha Verma Vohra and Garima Gupta

The purpose of this paper is to identify the dimensions of predisposition towards foreign brands (PTFB) for Indian consumers and examine their impact on materialism/materialist…

Abstract

Purpose

The purpose of this paper is to identify the dimensions of predisposition towards foreign brands (PTFB) for Indian consumers and examine their impact on materialism/materialist value (MAT). The study further conducts an in-depth analysis of these constructs for possible variations across consumer demographics.

Design/methodology/approach

Using a structured questionnaire, primary data were collected from 487 respondents in the city of Delhi and National Capital Region (NCR). While a modified scale was developed to operationalize PTFB, the measurement instrument for MAT was adapted on the basis of an extensive literature review. Statistical techniques such as Exploratory factor analysis, Confirmatory factor analysis, t-test, analysis of variance (ANOVA) and regression analysis were used to test various hypotheses of the study.

Findings

The study identified five dimensions of PTFB, namely, “Reputation”, “Preference”, “Country of Origin”, “Accessibility” and “Quality”, through confirmatory factor analysis in structural equation modelling. Except for “Preference” and “Accessibility”, all remaining dimensions were found to be exerting a significant impact on MAT. The results further indicate that consumers’ PTFB as well as their MAT differs across demographics such as age, income, gender, occupation and qualification.

Practical implications

The paper brings to the fore useful insights for marketers of foreign brands. The findings can be effectively used for developing a more focused marketing strategy for Indian consumers by helping in identifying demographic segments that are more responsive and susceptible to the entry of foreign brands in Indian markets.

Originality/value

The paper attempts to develop a more robust instrument for measurement of consumers’ PTFB and provides dimensions constituting the construct for consumers of emerging markets such as India. The current research also indicates that there exists a significant variation in PTFB and MAT for different demographic segments of consumers.

Details

Journal of Asia Business Studies, vol. 11 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 8 June 2023

Yi Zhang and Dongxin Zhang

The economy of China has developed rapidly, and its international status has quickly risen in the past 30 years. China is shifting from a major exporter into a major consumer

Abstract

Purpose

The economy of China has developed rapidly, and its international status has quickly risen in the past 30 years. China is shifting from a major exporter into a major consumer, becoming an essential part of the international market. However, some global brands make wrong market decisions because of a lack of understanding of Eastern consumer culture.

Design/methodology/approach

Based on consumer xenocentrism, this paper helps global enterprises better understand Chinese consumers' psychology in foreign goods, which is conducive to the development of transnational trade. This study proposes a hypothesis model based on previous literature. The authors collected 300 questionnaires from China and tested the model by SPSS24 and AMOS24.

Findings

The findings show that curiosity and country of origin positively affect consumer xenocentrism, consumer xenocentrism has a positive impact on word-of-mouth and purchase intention, word-of-mouth plays a mediating role in xenocentrism and purchase intention and social comparison tendency plays a moderating role in consumer xenocentrism and purchase intention. Simultaneously, this paper develops a scale measuring consumer xenocentrism to provide some quantitative support for this research.

Originality/value

The authors propose some suggestions basing on the research of consumer xenocentrism and provide some further directions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 12
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 26 August 2014

Abiodun S. Bankole, Musibau Adetunji Babatunde and Abdlhakeem A. Kilishi

The purpose of this paper is to examine the determinants of consumers preferences on textile materials and the impact of consumer preference on performance of textile industry…

Abstract

Purpose

The purpose of this paper is to examine the determinants of consumers preferences on textile materials and the impact of consumer preference on performance of textile industry. This is because as consumers have access to a variety of textile products, they strongly developed and shifted preference to foreign sources, which could lead to the eventual demise of many of the textile factories.

Design/methodology/approach

The logit model is adopted to describe the behaviour of consumers when faced with a variety of mutually exclusive choices. The model also describes the consumers’ choice of differentiated goods with common consumption objectives but with different characteristics.

Findings

Findings revealed that consumers in Nigeria prefer foreign textile to locally made textile. In addition, differences in quality and availability are factors that drive consumer’s preference towards foreign textile. Also, the inefficient performance of the Nigerian textile industry is influenced by limited demand from the domestic market, poor infrastructure and smuggling. Hence, there is a need for innovative entrepreneurship, concentration on quality improvement and alleviating supply constraints.

Originality/value

To the best of the authors’ knowledge, this is the first study that examines consumer preferences in the Nigerian textile industry.

Details

International Journal of Commerce and Management, vol. 24 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 4 October 2019

José I. Rojas-Méndez and Sindy Chapa

The purpose of this paper is to create and validate a scale that measures consumer xenocentrism in developing countries, where this phenomenon is furthermost prevalent. This study…

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Abstract

Purpose

The purpose of this paper is to create and validate a scale that measures consumer xenocentrism in developing countries, where this phenomenon is furthermost prevalent. This study aimed for the conceptualization, construct development and validation of a new scale labeled X-Scale. The theoretical framework was based on the theories of social comparison, system justification and culture.

Design/methodology/approach

This study employed a mixed-method and multi-stage research approach to investigate the domain of xenocentrism in the context of consumer behavior and subsequently develop a scale (X-Scale), while assessing its dimensionality, reliability and validity. Qualitative and quantitative techniques were used for the development of the scale. Multi-stage data from five developing countries were collected for validation purposes: Mexico, Colombia, Peru, Ecuador and China.

Findings

Results indicate that the consumer xenocentrism construct has two dimensions: foreign admiration and domestic rejection. Each dimension is comprised of five items. The reliability tests, the goodness-of-fit measures and the psychometric properties indicate a reliable construct. In addition, this study shows that consumer xenocentrism is a key predictor of consumerspreferences for foreign brands over domestic ones.

Originality/value

This is the first empirical study on consumer xenocentrism conducted in several developing countries. The X-Scale developed here is invariant across countries and, therefore, allows for comparison among them.

Details

Marketing Intelligence & Planning, vol. 38 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

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