Using macro cross‐border trade data to better understand micro‐level country of origin effects

The article adapts an estimation methodology from the border effects literature to reveal consumer ethnocentrism versus cosmopolitanism in each country, and animosity versus nostalgia between country pairs. The measurements rely on actual macro cross‐border trade data rather than individual purchase intentions typically used in the international marketing literature. The results from early 2010s suggest that purchasing intentions against imports found in this literature do not necessarily translate into actual consumption behavior in international trade. It is quite possible that the consumers are unable to assess country of origin of production despite growing ethnocentrism, and base their actual purchases on perceived origin of product brands. Specifically, it is found that most countries are cosmopolitan rather than ethnocentric, particularly developed countries, favoring any foreign product over domestic products. Most countries also have nostalgic purchasing behavior from specific trade partners with historical linkages. Outside the specific traditional animosities between a country pair, a developed country is relatively less open to imports from another developed trade partner, while an emerging country welcomes it more especially from another emerging trade partner.     

An examination of the effects of partitioned country of origin on consumer product quality perceptions

This paper deals with the effects of partitioned country‐of‐origin associations on consumer product quality evaluations. The main objective of this research is to examine the cognitive processes by which country‐of‐origin information influences the consumer's evaluation of a product. To study the psychological process by which the country‐of‐origin associations are integrated in the formation of related behavioural deliberation, a hypothetical structural model was developed. The model contains seven theoretical constructs, i.e. country of design, perceived product sophistication, country of assembly, perceived manufacturing excellence, country of parts, perceived product quality and perceived product design. Data were analysed via structural equation models using Analysis of MOment Structures (AMOS) 5.0. Results show that countries that already have positioned themselves around a reputation for technological innovation related to product development and manufacturing may expect consumers to transfer those associations to new products from the country.     

品牌来源国和产品制造国对消费者产品质量评价和购买意愿的影响

This research explores the different effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention. It is found that made-in cues have significant impacts on quality evaluation while brand origin cues influence purchase intention more prominently. Product quality is perceived lower when a brand from developed country is manufactured in developing countries, however, this may not affect consumers’ purchase intentions.      

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.     

The effects of management succession in retail service banking

It is a fundamental tenet of modern management theory and practice that managers matter, and that a management change involving a transfer of authority will improve performance. In fact, there are two other possibilities, the management change may have no or even a negative effect. The purpose of this study is to examine the effects of a management change (succession) in the retail service branch banking context. The study is based on historical operational data and is longitudinal in nature. Specifically, the inter-relationships between pre-succession performance, predecessor tenure, reason for succession, origin of successor and organisational change were evaluated in 38 branches of a bank during a two-year period. The results indicated a strong association between pre- and post-succession performance, and that pre-succession performance is a predictor of successor origin, as is predecessor tenure which in turn influence post-succession performance.     

基于合理性理论视角的来源国效应研究

文章基于制度理论中的合理性理论视角,对来源国效应进行了剖析,认为来源国效应本质上是通过合理性感知这一中介机制来发挥其对消费者态度和行为的影响的。消费者会分别基于来源国的绩效和制度形象形成对实用合理性和社会合理性两种判断,进而决定采取何种态度或行为。因此,企业可以通过绩效行为和制度行为来发展提升其来源国合理性的策略。     

Country of Origin Association in Retail and Wholesale Branding

ABSTRACT

The purpose of this article is to consider country of origin in terms of its association with brand heritage and its implications in fashion branding, thus providing a new perspective within the context of retail and wholesale brands. This qualitative study demonstrates how country of origin is widely used as a communicative tool by retail and wholesale brands, associated with brand heritage. However, the way country of origin is manifested and/or associated (e.g., brand name, color, etc.) varies depending on a brand's history, positioning, brand value, and the type of market sector that the retail and wholesale brands are targeting.     

Adaptive resilience and the competition between retail and service agglomeration formats: an international perspective

This paper investigates the competitive relationship between dominant urban agglomeration formats (traditional ‘evolved’ town centres and ‘created’ shopping malls) and the drivers of competiveness in the form of key agglomeration resources (accessibility, parking condition, tenant mix, atmosphere). Based on a consumer survey (n, 2,161) across three distinctive European capital cities, covariance-based structural equation modelling reveals remarkably limited differences between formats in terms of the investigated drivers of competitiveness. Positive relationships of patronage towards both formats in all cities and the significant difference in why respondents patronise them suggest a partly complementary existence of the two types of agglomeration. We explain this apparent complementarity through the theory of adaptive resilience that has seen evolved agglomeration formats develop to provide a differentiated offer and consumer attraction compared with enclosed malls.     

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.     

Brand origin and country of manufacture influences on brand equity and the moderating role of brand typicality

This research investigates how country macro and micro images associated with both brand origin (BO) and country of manufacture (COM) impact two main dimensions of brand equity-brand image and brand quality. Whereas BO images relate positively to both dimensions of brand equity, COM images exert an impact on brand quality, not on brand image. The typicality of the brand as a representative of the country of origin moderates the impact of BO on brand equity, such that the effects of BO on brand equity are stronger when the brand is more typical. The authors explore implications for theory and practice.     

The impact of COVID-19 on the evolution of online retail: The pandemic as a window of opportunity

Pandemic-related shocks have induced an unexpected volatility into the evolution of online sales, making it difficult for retailers to cope with frequently occurring, drastic changes in demand. Relying on a socio-technical approach, the purpose of this paper is to (a) offer a deeper insight into the driving forces of online sales during the pandemic, and (b) investigate whether pandemic-related shocks accelerate the long-term growth of online retail. Novel, high-frequency data on GPS-based population mobility and government stringency is used to demonstrate how time spent in residential areas and governmental restrictions drive the monthly evolution of online sales in 23 countries. We deconstruct these effects into three main phases: lure-in, lock-in, and phase-out. Lastly, using time series analysis, we show that the pandemic has induced a level shift into the long-term growth trend of the online retail sector in the majority of countries investigated.     

Underdeveloped Other in country-of-origin theory and practices

Consumers and marketers employ extant sociocultural discourses to give meaning to the products they consume or sell. In this paper, we present data and analyses that illustrate the manner by which American consumers and marketers draw upon one such sociocultural discourse, development, in the context of “craft” objects. Beyond the focus on discourse, however, our intent is to apply a post-development perspective to the Otherness inherent in country-of-origin (COO) theory and practices. We critique the COO framework and see it as a ramification of, and further creator of, economic difference and hierarchy.     

The Effects of Consumer Ethnocentrism and Country of Origin on Polish Consumers' Evaluation of Foreign Manufactured Products

The admission of Poland to the European Union may be perceived as the symbolic crowning of a long period of economic transformation. Poland today is not only an emerging market but an emerging culture experiencing a strong economic development wherein old ideals are confronted with new Western values. On this background, the objective of this research is to assess the level and impact of consumer ethnocentrism and the effect of country of origin on consumers’ evaluation of and buying intentions toward foreign manufactured products. Medium-expensive consumer durables—design furniture and fashion clothes—imported from Denmark are examined. Findings show consumer ethnocentrism is present and that more than one-fifth of consumers are highly ethnocentric but also that ethnocentrism has no direct effect on the evaluation of product quality or on buying intention for either of the products from Denmark.     

The interplay between home and host country institutions in an emerging market context: Private equity in Latin America

This study examines how the interplay between home and host country regulatory institutions affects the investment strategy of private equity (PE) firms in an emerging market context. To answer this question, we consider three different mechanisms: (1) the institutional hazard avoidance effect, (2) the institutional escapism effect, and (3) the dysfunctional institutions effect. Contrary to conventional wisdom, we argue that regulatory institutional differences between home and host countries can sometimes have a positive rather than a negative effect on investment likelihood. Our findings show that when a host emerging market has a strong regulatory institutional system relative to other emerging markets, it is more likely that this country will attract PE investments from firms based in home countries with very strong and very weak institutional systems. The empirical analyses, based on a polynomial specification and a dataset covering more than 300 PE firms that made close to 1500 investment transactions in Latin America during 1996–2011, are consistent with our main theoretical arguments.     

Interactive effects of country of origin and product category on product evaluations

This research examined the effects of country of origin and product category on product evaluations for 21 countries and 18 products. As hypothesized, product evaluations were highest for highly-developed countries, followed by newly-industrialized, newly-marketizing, and developing-country groups. Further, the product-category and country-of-origin effects interacted such that, depending upon the country group, different product categories received more, equal, or less favorable evaluations compared to other product categories. Several variables and processes underlying these effects are identified and integrated into a conceptual model.     

绿色农产品原产地效应与品牌策略初探

产品原产地是影响消费者购买决策的重要因素之一。绿色农产品具有明显的地理区域特征,其产品质量特征与特定生产加工区域的地理环境和自然资源条件密切相关,原产地效应更加突出。本文在分析绿色农产品原产地效应及其特点的基础上,提出了绿色农产品原产地品牌构建的意义和策略。     

The effect of multi-channel service quality on mobile customer loyalty in an online-and-mobile retail context

The main purpose of this study is to explore the effects of multi-channel service quality on mobile customer loyalty in the context of online-and-mobile retailing. A research model is proposed based on previous service quality literature. Data collected from 102 respondents in Taiwan are tested against the research model using the partial least squares (PLS) approach. The results indicate that tangibility, responsiveness, and empathy in electronic service (e-service) affect mobile service (m-service) customer loyalty both directly and indirectly through their m-service counterparts. The findings of this study provide several important theoretical and practical implications for multi-channel retailing management.     

Explaining the do-it-yourself (DIY) retail market in a developing country: preliminary lessons from India

Until now, studies of the Do-It-Yourself (DIY) market have been confined to advanced market economies, with developing countries ignored. This article begins to bridge this gap. Analysing a survey of 500 households in India, a developing country characterized by cheap and surplus labour, and a different cultural milieu, this article investigates whether it is possible to distinguish DIY consumers in the same manner as in Western nations as ‘reluctant’ or ‘willing’ DIYers. The analysis finds that in India, DIY consumers can be concurrently both willing DIYers doing so for pleasure (the choice model) or seeking self-identity from the end-product (post-modern theory) and at the same time reluctant DIYers doing so out of economic necessity reasons (economic determinism model) or due to the lack of appropriately skilled labour (a market failure model). Results also reflected cultural connotations to the respondent perceptions. The multiplicity of reasons, in consequence, shows that no one theorisation of DIY consumers' motives is universally relevant but all theories are sometimes valid. As such, a new typology of DIY consumers' motives has been inductively generated which is theoretically integrative. The results conclude on the need to move beyond using one theory and treating the others as rival competing theories, for a comprehensive explanation of DIY.     

Consumer ethnocentricity and preferences for wool products by country of origin and manufacture

Labelling on apparel products usually focuses on the country where manufacturing takes place, rather than where the raw materials were obtained. A choice experiment of consumers in three southern US states was conducted to determine preferences and marginal willingness to pay (mWTP) for wool blend sweaters based on fibre origin and country of manufacture. Fibre origin choices were Australia, US and US State, with the latter to investigate consumer interest in local over simply domestic. Manufacturing had two possibilities, US and China. Survey questions were used to determine an average consumer ethnocentric tendency (CET) score for each consumer, and a median split was used to place each into a High or Low CET group. Nested logit models were analysed for both groups, and mWTP estimates were computed from the coefficients. Both CET groups were willing to pay significant premiums for State‐produced wool over US wool, and for US wool over Australian wool. However, the Low CET group exhibited lower premiums for fibre origins than their High CET counterparts. Ethnocentric consumers, unlike Low CET consumers, were additionally willing to pay significant premiums for wool blend sweaters knitted in the US vs. those knitted in China. Results suggest that labelling fibre by State or by US origin may allow producers to obtain substantial premiums for their apparel products. Promotion of domestic manufacturing though may only be effective for a smaller set of consumers.     

Innovation in retail internationalisation: Tesco in the USA

This paper examines the market entry of the UK's largest retailer (Tesco) into the USA. Tesco's launch of a new brand – Fresh & Easy Neighborhood Markets – in virgin territory is a bold move, notwithstanding the firm's considerable success with its overseas investment strategy (which within ten years has resulted in more than 50% of the firm's operating space being outside its ‘home’ market). The paper contextualises the study by taking a historical view of innovation in the retail industry, which reveals that generally - and certainly for the most part of the twentieth century – innovations have dominantly flowed from the US to the UK. The paper suggests that Tesco's US experiment is unusual both in terms of the innovatory aspects of its market entry and the reversal in that conventional direction of knowledge transfer. The Fresh & Easy story is then examined in terms of ten ‘dimensions of innovation’ involved in the market entry. The paper concludes by drawing out from these ‘dimensions of innovation’ a number of important issues for management scholarship raised by the study, stressing the need to incorporate insights from a wider social science literature.