Consumer processing of foreign advertisements: roles of country-of-origin perceptions,consumer ethnocentrism,and country attitude

This paper reports the findings of a study that examined the impact of consumers’ three cross-national individual difference variables — country-of-origin perceptions, consumer ethnocentrism, and country attitudes — on their responses and attitudes toward foreign advertisements and advertised products. A model of consumer processing of international advertising has been proposed that consolidates a dual-element thesis comprising research on consumer processing of advertising, and several streams of research on cross-national individual difference variables. Empirical analysis of the hypothetical model through structural equation modeling yields supportive results: positive effects of consumers’ country attitudes on their responses to the creative presentation of international advertising, and positive effects of consumers’ country-of-origin perceptions on their responses to the buying proposal of international advertising. However, the hypothesized negative effects of consumer ethnocentrism on their responses to international advertising was not confirmed. The study contributes to our understanding of cross-national individual difference variables that precede and determine consumers’ attitudes toward foreign advertisements. It has practical implications for standardization versus localization of international advertising strategy.     

Consumer perceptions of third party product quality ratings

Consumers increasingly rely on product quality information provided by third-party product ratings organizations. These organizations undertake the task of examining and testing competing products in the marketplace, establishing the level of quality associated with each product, and communicating this information to consumers. Despite the important role of product quality ratings in consumer decisions little research has been conducted to establish the factors which may influence consumer perceptions of these ratings. This paper examines the role of the information content provided by product quality ratings organizations on consumer perceptions. Furthermore, the influence of contextual variables, namely information cost, product category and advertising content, is examined. The results indicate that both content and context significantly influence consumer perceptions of source credibility and their intentions to use the product quality ratings in their purchase decisions.     

Disentangling country-of-origin effects: the interplay of product ethnicity,national identity,and consumer ethnocentrism

The country-of-origin (COO) of products has been shown to affect consumer choice, especially in situations where the origin has a stereotypical association with particular products and depending on certain consumer traits (e.g., national identity, consumer ethnocentrism). However, little is known about how these phenomena are related. Two controlled experiments conducted in two different countries and product categories reveal that product ethnicity moderates the impact of national identity but not of consumer ethnocentrism. National identity is found to influence consumer preference only if the foreign product ethnicity is higher but not lower than that of comparable domestic products. Furthermore, while consumers with a low national identity are positively affected by a high product ethnicity of foreign products, this effect vanishes with increasing levels of national identity. This research has implications for academics and practitioners alike, as it examines important boundary conditions of country-of-origin effects that have been undiscovered so far.     

Managing Opportunism in China: The Roles of Guanxi,Environmental Uncertainty,and Management Culture

ABSTRACT

This cross-cultural comparison aims to understand whether the influence of consumer ethnocentrism (CE) on consumer preference for domestic versus foreign products is product category and country-of-origin dependent. Three countries with dissimilar cultural orientation and economic status—China, South Korea, and the United States—were examined. American consumers were found to be more ethnocentric than Chinese and South Korean consumers. CE was found to significantly and positively predict American and Korean consumers’ preference for domestic products across product categories, while Chinese consumers’ CE did not translate into their preference for Chinese products. In addition, the relationship between CE and purchase preference varied across product categories as well as countries of origin.     

How Consumer Ethnocentrism (CET), Ethnocentric Marketing,and Consumer Individualism Affect Ethnocentric Behavior in China

This study investigates how the value of consumer ethnocentrism (CET) and ethnocentric marketing affect consumers' purchase intentions for domestic and foreign brands in China. In predicting ethnocentric consumer behavior, past research has tended to focus on consumers' ethnocentric values rather than ethnocentric marketing stimuli. In addition, this study examines how the consumer value of individualism and collectivism (IC) affects ethnocentric choice behavior. An experimental study was conducted on 220 Chinese millennials, using fictitious advertisements. The study found that the CET value has moderate effects on consumer purchase intentions for foreign brands, while it strongly influences consumer purchases of domestic brands. In addition, the findings suggest that ethnocentric advertising may not encourage purchases of domestic brands, but can discourage foreign brand purchases. More significantly, individualistic consumers were found to show a greater preference for foreign brands and also their brand choices were less affected by the CET value and ethnocentric advertising.     

Purchase behavior in favor of domestic products in the West Balkans

Despite the long tradition of research on country-of-origin and consumer ethnocentrism, many of the issues remain unresolved in the literature, most notably the relationship between cognitive, affective and normative mechanisms in consumer choice behavior, and generalizability of existing research findings to non-traditional emerging and/or small country markets. This study responds to the current gaps in knowledge in that it examines behavioral manifestations of consumers’ choice of domestic vs. foreign products in four transitioning post-war markets in the West Balkans. Data were collected via personal interviews with 1954 adult urban consumers. The model of domestic purchase behavior was tested using SEM analysis. The results for all four country samples indicate that consumer ethnocentrism has affected domestic purchase behavior both directly and indirectly through domestic product appraisal. Moreover, we found consumer worldliness, a controversial construct in previous studies, to be uniformly negatively related to ethnocentrism. On the other hand, the findings related to the role of national identification as an antecedent to consumer ethnocentrism and domestic product appraisal were inconsistent across the samples. The implications of these findings for the validity and generalizability of existing models of consumer behavior in a new cultural context are considered, and implications for marketers interested in exploiting opportunities in the region are discussed.     

Consumer ethnocentrism,product necessity and quality perceptions of Russian consumers

Retail buyers in Russia have indicated that some customers have expressed a desire to purchase domestically produced products over imports. Consumer ethnocentrism has been proposed as a measure to provide retail buyers with the information necessary to market to these consumers. The purpose of this research is to determine if perceived product quality of products differs based on country of origin, product necessity and consumer ethnocentric tendency. A repeated measures ANOVA test indicates that perceived quality differs by necessity, by product, by country. A consumer ethnocentrism effect on the overall model, however, was not significant. We conclude that Russian consumers do perceive differences in product quality based on country of origin and product necessity, but that consumer ethnocentrism does not have an effect on perceived product quality.     

Communicating with American consumers in the post 9/11 climate: an empirical investigation of consumer ethnocentrism in the United States

The present study examines the extent to which American consumers’ political attitudes translate into their economic preferences in the post-September 11 climate. Specifically, nationalism, patriotism, and internationalism as antecedents to consumer ethnocentrism are investigated. A web-based survey was carried out on a sample drawn from a population of known internet users in the USA. Results from this study show that nationalism and internationalism are good predictors of American consumers’ ethnocentric tendencies. In addition, demographic characteristics such as gender, age, income, and education exhibit significant effects on consumer ethnocentrism. Male, younger, higher-income and better-educated consumers tend to be less ethnocentric. Suggestions are made to help both domestic and foreign firms and marketers understand how the post-September 11 political climate affects American consumers’ economic preferences. Results from this study also provide useful insights for further theory development on consumer ethnocentrism in today’s global marketplace.     

It's no longer mine: the role of brand ownership and advertising in cross-border brand acquisitions

Although cross-border brand acquisitions are increasingly common in the global marketplace, research on how consumers respond to them is limited. Building on social identity and psychological ownership theories, we introduce the concept of brand ownership to the advertising literature, and show its negative effects on consumer reactions to a brand acquisition. Furthermore, we demonstrate that consumers’ disidentification (i.e., an oppositional motivation) with an acquiring country moderates the negative effect of consumers’ brand ownership on consumer attitudes after a brand acquisition. The results reveal that consumers with high levels of brand ownership develop more negative post-acquisition brand attitudes when a brand is acquired by a country with which consumers strongly disidentify (i.e. dissociative vs. out-group). Furthermore, our research introduces the concept of a brand ownership appeal in advertising, and demonstrates that it is an effective advertising strategy in enhancing post-acquisition brand attitudes for consumers with high levels of brand ownership. Important theoretical and managerial advertising implications conclude this research.     

Ethnocentrism and Its Effect on the Chinese Consumer: A Threat to Foreign Goods?

This study examines ethnocentric tendencies including consumer ethnocentrism, country of origin, product judgments, willingness to buy, and animosity toward foreign products among a sample of economically progressive Chinese college students in a coastal port city in northern China. Survey results suggest that these Chinese consumers held a rather positive view of, and little animosity toward, the United States. They also did not show high levels of ethnocentrism or country-of-origin effects. These results would suggest openness toward foreign products. While Chinese consumers report little animosity or ethnocentric tendencies toward U.S. products, animosity, country of origin, and ethnocentrism are significantly correlated with willingness to buy. This suggests managers need to carefully position foreign products with respect to Chinese consumer expectations. Impacts of traditional collectivist views of the Chinese culture are suggested as an avenue for future research with respect to ethnocentrism and willingness to buy foreign products.     

Measuring Consumer Ethnocentrism: An Assessment of Reliability,Validity and Dimensionality of the CETSCALE in a Developing Market

ABSTRACT

Based on 305 surveyed consumers in Zimbabwe’s two major cities (Harare and Bulawayo), the study sought mainly to measure consumer ethnocentrism and to test psychometric properties of the CETSCALE in Zimbabwe using structural equation modeling. It was established that the construct of consumer ethnocentrism comprises two dimensions, namely negative influence of foreign products, and preference for domestic products. Consumer ethnocentrism was found to be moderately high. The psychometric properties of the CETSCALE tested above the required thresholds. Consumer ethnocentrism was found to negatively influence consumer attitude towards imported poultry products. The study has implications for managers and future researchers.     

Evaluating the purchase behaviour of organic food by young consumers in an emerging market economy

Promoting consumer purchase behaviour of eco-friendly products is key to environmental sustainability. This research aims to investigate how different factors may enhance or impede young consumers’ intentions to purchase a specific type of eco-friendly product, i.e. organic food. Data were obtained from 289 respondents in an emerging market economy, i.e. Vietnam. Multivariate data analysis using structural equation modelling revealed that food safety concern, health consciousness and media exposure to food messages played integral roles in the formation of attitude towards organic food. Interestingly, consumers’ environmental concern and food taste were of little value in predicting their attitude. Notably, perceived barriers (i.e. high price, inadequate availability, poor labelling and extra time required) significantly impeded both attitude and purchase intention towards organic food. The insights gained from this research extend current knowledge about pro-environmental behaviour in developing countries and they have important practical implications for marketers and other key stakeholders.     

Impact of national traumatic events on consumer purchasing

The purpose of this research is to evaluate differences in consumer perception before and after national traumatic events such as the terrorist attacks that took place on 11 September 2001. The authors found a significant difference in consumer ethnocentrism, patriotism, time management, attitude towards regulation of business and product quality following the terrorist attacks. These differences impact consumer purchase decision processes and become important to businesses that are targeting these consumers with their product offerings. In addition, marketing managers' understanding of change in consumer perceptions and attitude should impact how consumer products are marketed.     

The extension of animosity model of foreign product purchase: Does country of origin matter?

Although a growing literature has investigated how animosity and consumer ethnocentrism change customers’ perceptions of foreign products in developed markets, research examining these effects in developing markets is scarce. Additionally, the role of country of origin on such effects has received far less attention. The current paper is developed to bridge these gaps. The primary objectives of this paper are to examine whether the animosity and consumer ethnocentrism models that work in the Western world could be applied into a developing market like Vietnam, and whether these relationships are moderated by country of origin (USA versus China). Data from 485 Vietnamese customers illustrate that most of the main effects are significant except for the relationship between ethnocentrism and product judgement, and the relationship between cosmopolitanism and willingness to buy. Furthermore, out of the three moderation effects, the influence of country of origin on the relationship between ethnocentrism and willingness to buy is significant. The paper concludes with theoretical and managerial implications, limitations, and future research.     

How anticipated regret influences the effect of economic animosity on consumers’ reactions towards a foreign product

We use regret theory to explain the negative effect of economic animosity on consumers’ reactions towards a foreign product (i.e., product judgment and reluctant to buy). We conduct our study in Taiwan by collecting data via an online survey. Our results show that consumers’ economic animosity increases their anticipated regret towards purchasing a foreign product originating from a target market of animosity. Specifically, anticipated regret is found to mediate the link between economic animosity and foreign product judgment, which in turns affects consumers’ reluctance to buy. Our study is the first to consider the role of anticipated regret in explaining the negative effect of economic animosity on consumers’ reactions towards a foreign product. We also contribute to research by introducing two antecedents of economic animosity: perceived economic competition and consumer ethnocentrism.     

Determinants of Consumer Responses to Direct Marketing Media

Abstract

This study examined consumer propensity to respond to direct marketing offers made via catalogs, direct mail, and direct response TV. A comparison of the relative importance of marketer's reputation, advertising exposure frequency, and the product offer revealed that the latter was the most important determinant of consumer response frequency. Marketer's reputation was found to be more important for direct response TV and less important for catalog advertising: neither did high frequency of media exposure appear to impact on responses to direct mail and direct response television. The findings suggest that the maximization of reach rather than frequency could possibly be the primary media communication goal for selling products through direct mail and direct response television.     

中国背景下的全球品牌:洞察中国消费者的决策(英文)

本文探究了与全球十大品牌相关的中国消费者决策。通过四个层面(品牌熟悉度、品牌喜爱度、品牌信任度以及知晓一个品牌的原产国)来预测中国消费者样本的品牌购买意向,同时分析指出,中国消费者对世界主义、民族优越感、全球—本地身份的认识以及与全球消费者文化的区别也可能会影响其全球品牌购买意向。本文为全球十大品牌建立了回归模型,并有提供最有力证据的层级模型。品牌熟悉度、信任度和喜爱度基本上在很大程度上解释了差异的存在。     

An investigation into the perceptions of Chinese consumers towards the country‐of‐origin of dairy products

The dairy incident in 2008 influenced Chinese residents’ attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country‐of‐effects and its corresponding impacts. Consumers’ image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country‐of‐origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country‐of‐origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.     

Exploring the relationship between consumer knowledge and purchase behaviour of value‐based labels

Despite an increasing market presence, little research has been conducted regarding consumer‐purchase behaviour of food products bearing ‘value‐based’ labels. Moreover, as the effectiveness of these labelling formats is dependent upon consumer's knowledge of their existence, this paper aims to explore the relationship between knowledge, openness to experience (i.e. validated personality trait related to intellectual capability) and purchase behaviour upon consumer behaviour in this context. Using structural equation modelling techniques, causal influences on purchases of fresh meat bearing ‘value‐based’ labels are identified and three multi‐attribute attitude models are proposed. The paper concludes that these labels are of value to consumers and that product knowledge plays a significant role in aiding purchase decisions. Consequently, marketing communication implications arising from the proposed multi‐attribute attitude models are discussed.     

Attitude Toward Globalization and Country-of-Origin Evaluations: Toward a Dynamic Theory

ABSTRACT

In theory, increased globalization should lead to greater openness to different cultures, thereby reducing consumer ethnocentrism and resulting in improved consumer perceptions and behavior with respect to foreign products. However, empirical studies testing the impact of globalization have met with mixed results possibly due to the effects of globalization occurring at different levels in the mind-sets among consumers. This notion of “multi-layered consciousness” and its effects on country of origin image are proposed and tested in a theoretical model incorporating a dynamic theory of globalization, to supplement the conventional theory of country-of-origin effects. As predicted, results showed that country-of-origin image is negatively influenced by consumer ethnocentrism, but is not positively influenced by globalization, despite consumers' self-perceived global mindsets (i.e., positive attitude toward globalization and subsequent global openness).