Revisiting Country Image – Examining the Determinants towards Consumers' Purchase Intention of High Technological Products

ABSTRACT

The purpose of this study is to investigate consumers' perceptions towards a developed country image (e.g. USA) and a developing country image (e.g. China) in relation to evaluating and buying high technological products, more specifically, smartphones. In addition, the research also examines the effects of consumer aspirations and product knowledge as consumption traits towards buying behavior. A self-administered questionnaire was employed for this study using established scales with the questions formulated around two countries, USA and China. It was administered through a mall intercept method and a particular focus will be associated to the comparison of China and USA. The stark contrast between the two countries in terms of their image and stature presents an insightful inquiry into the relevancy of country image and country of origin image importance in modern day context. The results show that country image as an evaluation cue is still pertinent in a generation where globalization is present. Results further highlights that although possessing a positive country image leads to a positive evaluation of the product country image, it however does not ensure a successful purchasing intent. Additionally, it is beneficial to note that the results for both USA/IPhone and China/Xiaomi showed a significantly greater path coefficient as compared to other causal paths. Potential moderating factors such as product involvement or pricing can also be explored. Future research should attempt to account for socio economic or demographic factors such as important controls for education, social status and income that are bound to impact on the relationships at the heart of the proposed research hypotheses.     

Development and Validation of Consumers' Need for Ingredient Authenticity (CNIA Scale)

ABSTRACT

Concepts from country-of-origin, the authenticity concept, and ingredient branding make up the essential literature for this scale development. This study intends to develop a scale specifically to measure consumers' motivation to seek for ingredient authenticity. While studies on authenticity have heavily looked into brands, this study aims to uncover consumers' motivations of ingredient authenticity of the raw materials and artisan skills of the products. Four studies were undertaken to develop and validate this scale. The research adopted the Churchill's (1979) method of scale development. The methods for scale development and its implications are also highlighted.     

JUST A BIG MISUNDERSTANDING? BIAS AND BAYESIAN AFFECTIVE POLARIZATION

I present a model of affective polarization—growth in hostility over time between two parties—via quasi-Bayesian inference. In the model, two agents repeatedly choose actions. Each choice is based on a balance of concerns for private interests and the social good. More weight is put on private interests when an agent's character is intrinsically more self-serving and when the other agent is believed to be more self-serving. Each agent Bayesian updates about the other's character, and dislikes the other more when she is perceived as more self-serving. I characterize the effects on growth in dislike of three biases: a prior bias against the other agent's character, the false consensus bias, and limited strategic thinking. Prior bias against the other's character remains constant or declines over time, and actions do not diverge. The other two biases cause actions to become more extreme over time and repeatedly be “worse” than expected, causing mutual growth in dislike, that is, affective polarization. The magnitude of dislike can become arbitrarily large—even when both players are arbitrarily “good” (unselfish). The results imply that seemingly irrelevant cognitive biases can be an important cause of the devolution of relationships, in politics and beyond, and that subtlety and unawareness of bias can be key factors driving the degree of polarization.     

Modeling and Extrapolating Wheat Producer Support Using Income and Other Factors

Using wheat market support data from 55 countries for 1961–2011 from the World Bank Agricultural Distortion database, we develop a fixed effect model that shows a more complicated, nonlinear relationship between income and wheat support and its components than previously realised. We find that income generally has a greater effect on border market price support than on domestic price support. Moreover, the difference between these types of support is greater for net importers than for net exporters and has increased with the URAA or WTO accession. Holding other variables constant, the wheat support level of China, driven mainly by border market price support, is projected to rise with future income growth. Meanwhile, Japan is projected to maintain its high level of support, while the US and EU are projected to maintain their lower levels of support. These results are relevant in the context of multilateral trade negotiations, arguing against a narrow focus on past or current policy profiles and for long‐run analyses that might mistakenly rest on the inconsistent assumptions of constant agricultural policies against the backdrop of rising incomes.     

Holocaust concentration camp memorial sites: an exploratory study into expected emotional response

This study explored Dutch people's expected intensity of emotional responses of a potential visit to a concentration camp memorial site in the Netherlands. A total of 1050 online panel members participated in a questionnaire that contained a 33-item emotion scale. Results reveal that individuals with a closeness to the Holocaust expect to feel most emotions more intensely, specifically emotions that are traditionally considered ‘positive’, such as pride, love, joy, inspiration, excitement and affection. Overall, respondents expect to feel disgust, shock, compassion and sadness the strongest. Those who look from the viewpoint of the offenders mainly expect to feel emotions that are traditionally considered ‘negative’, whereas those who took the point of view of the victims also expect a more ‘positive’ emotional reaction to the visit. Managerial implications address aspects of education, storytelling and authenticity.     

DIMENSIONALITY AND DISAGREEMENT: ASYMPTOTIC BELIEF DIVERGENCE IN RESPONSE TO COMMON INFORMATION

We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some observations, agents may face an identification problem affecting the role of data in inference. Beliefs converge to the truth when these observations are rare, but beliefs diverge when observations presenting an identification problem are frequent. Robustly, two agents with differing priors who observe identical, unambiguous information may disagree forever, with stronger disagreement the more information received.     

Local Content Requirements Versus Tariff Equivalents: How We Measure Matters

This article develops a mechanism to measure the impact of local content requirements as quantitative restrictions. We compare effects of the novel quantitative approach to the effects of a tariff equivalent, which is more traditionally used to analyse these types of policies. Local content requirements increase output and value added in the affected sector, but at the expense of other sectors, leading to declines in GDP and trade across the economy. Comparing the two modelling approaches, the differences in outcomes are shown to be significant.     

Foreign entry,quality, and cultural distance: product-level evidence from US movie exports

This paper investigates the effect of quality on foreign entry using data on international movie exports and direct and revealed measures of movie quality. Strict quality sorting is predicted by a model of firm heterogeneity. An alternative model is random entry, in which entry decisions are independent of the movie’s quality. I develop a discrete choice model that allows for both of these extremes as special cases, and use graphical techniques and simulations to compare their predictions to the data. I then use regression analysis to estimate the effect of quality on the propensity to enter foreign markets. A one-standard-deviation increase in quality increases the probability of entry by 25–50 %. Systematic differences in taste for different genre types are used to estimate a measure of cultural distance between countries. Movies in “culturally dependent” genres are less likely to enter foreign markets and their probability of entry is less sensitive to quality. The cultural distance measure enters a gravity equation of US bilateral trade significantly.