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1 – 10 of 11Dario Miocevic, Ruzica Brecic and Srdan Zdravkovic
Theorizing about consumer’s cultural identity has led to a greater understanding of why consumers choose and consume certain brands and products. The influence of cultural…
Abstract
Purpose
Theorizing about consumer’s cultural identity has led to a greater understanding of why consumers choose and consume certain brands and products. The influence of cultural identity has traditionally been studied primarily in a consumer’s country of origin, neglecting its potential relevance for understanding the consumption choices of sojourners and expatriates. This paper aims to investigate how the length of stay (LOS) in a foreign country, as a manifestation of local identity, shapes expatriate consumers’ food brand preferences.
Design/methodology/approach
This study draws on social identity theory and cultural branding literature to examine the mechanisms through which local identity drives preference for local food brands among expatriate consumers. Data from a cross-sectional survey of 180 USA and UK expatriates living in the Greater Middle East were analysed using structural equation modelling.
Findings
Local identity (measured through LOS in the host country) appears to exert an indirect effect on the consumption of local food brands through social ties with a local community. Next, social ties with a local community enhance local food brand preferences (LFBP) and this relationship is fully mediated by the global food brand preference (GFBP) where GFBP weakens the preference for local food brands and vice versa. In addition, the heterogeneity of interplay effects between local and global food brands can be attributed to the local food brand value signalling. The study finds that the higher perceived value of local food brands lowers the negative impact the GFBP has on LFBP and vice versa. The hypothesized effects in the model remain robust when controlling for moderating effect of age and the expatriate’s country of origin.
Research limitations/implications
The current study investigates the consumer behaviour of the expatriate consumer segment. As this study focuses only on expatriates currently living in countries of the Greater Middle East, its findings should be tested in other regions and with diverse subject samples.
Practical implications
Expatriates should not be treated as a uniform consumer segment but, instead, should be evaluated as unique individuals whose inclination towards local food brands depends on their: ability to establish and verify their local identity through developing social ties with the local community and reliance on global food brands. Moreover, findings demonstrate that brand managers should focus on increasing their perceived value by showcasing quality, reliability, innovation and performance, factors that reassure expatriate consumers when choosing local, over global food brands.
Originality/value
This study goes beyond the traditional focus on local identity in the domestic setting and sets out to investigate the chain of effects on LFBPs in the expatriate setting. Empirical evidence shows that an expatriate’s higher integration in a local community via social ties confirms their local identity, and thus exerts a stronger impact on a preference for local food brands. The study’s results demonstrate that the preference for local food is dependent on an expatriate consumer’s reliance on global food brands and the impact of global food preferences on local food preferences is moderated by the perceptions of the local food brand value. Additionally, findings suggest that the negative effects of global food brands are stronger for older expatriates and expatriates coming from the USA.
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Kacy Kim, Yuhosua Ryoo, Srdan Zdravkovic and Sukki Yoon
In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are…
Abstract
Purpose
In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are well-documented and consumers should theoretically desire costless and relevant information for informed decision-making, this paper proposes that consumers may resist overly transparent pricing, particularly when it pertains to premium-priced (vs regular-priced) products from countries with high equity.
Design/methodology/approach
Our research comprises three experimental studies utilizing both student and representative online Prolific samples, covering various products and countries with different equity levels. Initially, a pilot study identifies an interpersonal should-want conflict induced by price transparency when purchasing premium-priced products, leading to information avoidance. Subsequent studies further explore this phenomenon by examining the moderating role of country equity and the mediating role of price unfairness perceptions.
Findings
Price transparency can backfire when purchasing premium-priced products due to the want-should conflict among consumers—the desire to receive disclosure of cost breakdowns versus the inclination not to view it. This conflict results in increased resistance to receiving transparent price information and decreased brand attitudes and purchase intentions, especially for products originating from high-equity countries. Heightened perceptions of price unfairness explain these dynamics.
Research limitations/implications
The study primarily relies on experimental designs with limited sample sizes. To enhance the generalizability of the findings, incorporating large-scale real market data across diverse domains and countries would be beneficial.
Originality/value
Grounded in the should-want conflict and information avoidance theories, this paper uniquely explores the adverse effects of price transparency on digital platforms. We extend this by demonstrating that this conflict is influenced by country equity, where the perceived value added by the association of a product with a given country name affects whether consumers experience the conflict. Our investigation of perceived price unfairness further deepens our understanding of the nuanced effects of price transparency.
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Peter Magnusson, Srdan Zdravkovic and Stanford A. Westjohn
The objective of this study is to offer a longitudinal examination of country image, consumers’ brand origin recognition accuracy, and how their effects on brand evaluations have…
Abstract
Purpose
The objective of this study is to offer a longitudinal examination of country image, consumers’ brand origin recognition accuracy, and how their effects on brand evaluations have evolved over the last decade.
Design/methodology/approach
The authors compare data gathered in 2020 against data gathered in 2008. Each data set consists of more than 500 American consumers evaluating approximately 12 different brands from three separate industries (i.e. auto, television, and fashion).
Findings
The findings indicate that country image can evolve over time and that its effect on brand evaluation persists even when inaccurate brand origin associations are made. The study offers meaningful insights for managers in understanding how brands’ country associations affect corresponding brand attitudes.
Originality/value
Significant research attention has been focused on the effects of country image. However, longitudinal analysis of the same research questions has been rare. This study offers a valuable comparison of how several important country-image related issues have evolved over time.
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Peter Magnusson, Stanford A. Westjohn and Srdan Zdravkovic
The purpose of this paper is to present a rejoinder. The rejoinder is written in response to the commentaries provided by Saeed Samiee and Jean‐Claude Usunier on the authors’…
Abstract
Purpose
The purpose of this paper is to present a rejoinder. The rejoinder is written in response to the commentaries provided by Saeed Samiee and Jean‐Claude Usunier on the authors’ original research piece: “‘What? I thought Samsung was Japanese’: accurate or not, perceived country of origin matters”.
Design/methodology/approach
The rejoinder is organized into three separate sections. The first section identifies areas of agreement between the authors, and Samiee and Usunier. The second section responds directly to the empirical and conceptual criticisms levied by Samiee and Usunier and clarifies the authors’ contribution. The rejoinder concludes by identifying areas of future research that may help further advance the field.
Findings
In addition to responding directly to the criticism of the original study, perhaps more importantly, the authors note several areas of common ground. First, there is agreement that future country‐of‐origin (COO) research designs must be careful to not artificially expose subjects to country cues that the consumer otherwise may not have considered. Second, in a globalizing world, brand origin perception appears to be more important than “made in” labels.
Originality/value
The authors do not consider the COO field outdated or irrelevant, but rather that it is a vibrant field of considerable interest to both practitioners and researchers. There is much still to be learned, and the authors hope the original research study and the ensuing debate have sparked fresh ideas and will lead to a continued effort in this interesting research field.
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Peter Magnusson, Stanford A. Westjohn and Srdan Zdravkovic
The purpose of this paper is to examine two contextual factors with respect to the influence of corporate social responsibility (CSR) messages on consumer attitudes and purchase…
Abstract
Purpose
The purpose of this paper is to examine two contextual factors with respect to the influence of corporate social responsibility (CSR) messages on consumer attitudes and purchase intentions. First, the authors examine the interplay between CSR messages and country image, and second, how consumers’ global identity affects their response to CSR signals.
Design/methodology/approach
The conceptual framework is examined in two samples of US consumers evaluating a new foreign entrant into the US market.
Findings
The empirical findings largely support the conceptual framework. Consistent with expectations, CSR and country image influence attitudes and purchase intentions. Most importantly, the authors also find a significant interaction effect between CSR and country of origin (COO). Further, consumers high on global identity are more responsive to positive CSR signals. These findings are confirmed in two complimentary studies.
Practical implications
CSR has become an important strategic priority for managers. This study allows managers to make more informed decisions regarding the CSR initiatives of their organizations.
Originality/value
This study connects the CSR literature with the COO literature, both of which are very important in the international marketing literature. Viewed through a signaling theory lens, this study provides new insights when, where, and how positive and negative CSR messages help or hurt the firm.
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Peter Magnusson, Stanford A. Westjohn and Srdan Zdravkovic
Extensive research has shown that country‐of‐origin (COO) information significantly affects product evaluations and buying behavior. Yet recently, a competing perspective has…
Abstract
Purpose
Extensive research has shown that country‐of‐origin (COO) information significantly affects product evaluations and buying behavior. Yet recently, a competing perspective has emerged suggesting that COO effects have been inflated in prior research and even that the COO concept has become irrelevant. The purpose of this paper is to reconcile these two competing perspectives by examining the effects of individual brand origin perceptions.
Design/methodology/approach
The conceptual framework is grounded in consumers’ learning. Empirically, the authors’ hypotheses are tested using hierarchical linear modeling on a sample of 4,047 brand evaluations by 544 consumers.
Findings
The results provide strong evidence that product country image of the consumer's perceived brand origin strongly affects brand attitudes, and this happens regardless of the perceptions’ objective accuracy. The authors also find evidence that educating consumers about brands’ true COO can contribute to changes in brand attitudes.
Practical implications
It is concluded that suggestions that COO has become an irrelevant construct in international marketing may be premature. The study offers meaningful insights for managers in understanding how brands’ country associations affect brand attitudes.
Originality/value
This study aims to reconcile tensions in the current COO literature and does so by demonstrating that although consumer knowledge of brand origin is often mis‐calibrated, consumers’ perceptions of brand origin still matter.
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Peter Magnusson, Rick T. Wilson, Srdan Zdravkovic, Joyce Xin Zhou and Stanford A. Westjohn
The purpose of this paper is to examine and compare the validity of different operationalizations of cultural and institutional distance.
Abstract
Purpose
The purpose of this paper is to examine and compare the validity of different operationalizations of cultural and institutional distance.
Design/methodology/approach
First, a review of the theoretical background for Hofstede's, Schwartz's, Trompenaars's, and Global Leadership and Organizational Behavior Effectiveness' (GLOBE) cultural frameworks is provided, as well as the institutional environment. Then, the validity of each framework is assessed by evaluating how well each framework groups countries into appropriate clusters, and finally comparisons between the different frameworks are drawn.
Findings
It was found that the cultural distance (CD) constructs based on Hofstede and Trompenaars have strong convergent validity. CD constructs based on Schwartz and GLOBE are found to have the weakest validity. The institutional distance (ID) constructs are conceptualized to be broader than the traditional CD constructs. However, high correlations indicate a strong overlap between ID and CD. Additionally, the ID constructs are highly correlated with factors related to economic development, potentially limiting their usefulness.
Originality/value
Both researchers and practitioners can choose from a variety of CD/ID frameworks to fill their needs; however, variance in the performance between frameworks may lead to faulty conclusions. In response to this need to accurately capture cross‐cultural differences, the validity of nine different operationalizations of CD/ID have been examined. Contrary to popular belief, the traditional CD construct based on Hofstede is shown to compare favorably with other frameworks and calls for the abandonment of this index may be premature.
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This study aims to examine how members of American Generation Y cohort feel about the USA and the USA's major trading partners. In addition, the study's purpose is to find out…
Abstract
Purpose
This study aims to examine how members of American Generation Y cohort feel about the USA and the USA's major trading partners. In addition, the study's purpose is to find out whether product's country‐of‐origin (COO) plays a role when members of Generation Y evaluate products.
Design/methodology/approach
Undergraduate university students are used as sample in this study. Experiment with 18 conditions is utilized to collect that data. Linear regression is used to test the hypothesis.
Findings
Results show that animosity toward the country negatively influences COO image and that person's level of cosmopolitanism and ethnocentrism contribute to person's perception of (in)equality when evaluating COO images. Findings also indicate COO significantly influences product judgment and this relationship is moderated by quality of information about the product (positive, negative, or lack of information) and involvement with the product (involved or not involved).
Originality/value
Results from this study show that, in the context of Generation Y, country image still matters and should be considered when developing a product or promotion strategy. Although country image matters, its effect on product judgment has to be examined in conjunction with factors like quality of information about the product and involvement with the product. As such, examining COO effect on its own might be misleading and not paint a completely accurate picture of antecedents to product judgment.
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The purpose of this paper is to address the apparent controversy surrounding the relevance of country of origin (CO) and brand origin (BO) lines of research, with particular…
Abstract
Purpose
The purpose of this paper is to address the apparent controversy surrounding the relevance of country of origin (CO) and brand origin (BO) lines of research, with particular reference to an article authored by Magnusson, Westjohn, and Zdravkovic (MWZ) whose research findings assert that CO matters, irrespective of whether customers can actually recall origins of brands.
Design/methodology/approach
Drawing on the extant literature from academic and business publications, the paper offers evidence regarding the relative unimportance of origin‐related attributes in most purchasing situations. In this context, the paper examines the atheoretic nature of CO research combined with a general lack of realistic managerial relevance, consumers’ impoverished CO and BO knowledge base, and the challenges of using CO as a positioning tool in marketing strategy. Finally, the paper examines some critical research issues regarding MWZ's contribution.
Findings
Country of origin research is not as relevant in customer choice process as some scholars believe and is generally void of meaningful managerial guidelines.
Originality/value
This is a commentary about an International Marketing Review article.
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