The role of country-of-origin,ethnocentrism and animosity in promoting consumer trust. The moderating role of familiarity

The objective of this study is to present empirical evidence on the extent to which socio-psychological variables (ethnocentrism and animosity) and the reputation of firms associated to a country-of-origin (COO) are related to an important relational exchange factor (trust). Furthermore, the study tests the moderating effects of familiarity. Data were collected from 202 automobile owners in a large Spanish region. Path and multi-group analyses were performed using a structural equation modelling approach. This paper investigates the effects of reputation of firms associated to a COO and animosity on trust, which have not been commonly used as a dependent variable of these concepts before. Moreover, this study explores the moderating role of familiarity. This study supports the view that reputation of firms associated to a COO can safeguard international transactions and create trust in foreign firms, and thus may decrease due to interrelated emotional consumer reactions such as animosity and ethnocentrism.     

Iranian consumer animosity and U.S. products: A witch's brew or elixir?

This research investigates the animosity of more than 900 Iranian consumers toward the U.S. and their propensity to purchase U.S.-made products/brands in the context of a prolonged hostility between the two countries. Our results suggest that the antecedent demographic variables of education, age and foreign travel experience are inversely related to consumer animosity whereas women and students tend to hold greater consumer animosity feelings than men and non-students. Additionally we found a strong and significant inverse relationship between Iranian consumer animosity and intention to buy U.S.-made products, but no moderating effects based upon product importance or product necessity were uncovered in our consumer animosity model. The major managerial implications of our study are threefold: (1) MNCs are well advised not to ignore or underestimate the economic value of hostile markets; (2) within hostile markets, MNCs ought to be proactive and pursue alternative oversight strategies when constrained by national institutions; and (3) local and foreign competitors may exploit such animosity to better position their own products against the products of a country that is a target of consumers’ animosity.     

Target reputation transferability,consumer animosity,and cross-border acquisition success: A comparison between China and Taiwan

This study examines the effects of consumer animosity and reputation transferability of local targets on cross-border acquisitions by analyzing host country consumer responses toward the acquisitions of local firms by foreign multinational corporations (MNCs). This work compares two host country markets: the responses of Chinese (high animosity against Japan) and Taiwanese consumers (low animosity against Japan) toward acquisition of a local firm by a Japanese MNC. The findings show that Chinese consumers demonstrate attitudes that are more negative toward the post-acquisition target, and lower intentions to repurchase products of the post-acquisition target than Taiwanese consumers. This work further observes that in a host-country market with low animosity, reputation transfer of a local target is pronounced, whereas, in a host country market with high animosity, consumer animosity will restrain or even exceed reputation transferability. Experiment results reveal consistent support for these hypotheses. Implications and limitations of the findings are also discussed.     

Effect of consumer animosity on boycott campaigns in a cross-cultural context: Does consumer affinity matter?

Global companies have often suffered from unexpected boycott campaigns in foreign markets owing to consumer animosity toward a country of origin. This study aims to empirically investigate how consumer animosity (toward economic sanctions) and affinity predict consumer boycotts. We conduct a country comparison, employing the PROCESS macro to test the moderated mediation hypothesis, using data from 571 and 500 consumers in South Korea and Japan, respectively. The results find a negative indirect effect of animosity on purchase amount via boycott attitude and intention in both countries. The direct impact of animosity on purchase amount (in the case of South Korea) and the moderated mediation effect of consumer affinity (in the case of Japan) are partially supported. Therefore, the offsetting influence of consumer affinity in mitigating the effects of consumer animosity in the context of boycott campaigns is highlighted, offering novel managerial implications.     

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.     

The Role of Country of Origin in Celebrity Endorsements: Integrating Effects of Brand Familiarity

ABSTRACT

With the advent of globalization and open economies in the developing nations, the consumers in the same are experiencing entry of more and more foreign products. The traditional practice of having country of origin (COO) cues to influence consumer attitudes is being juxtaposed with COO cues of celebrity endorsers to influence consumers. In that context, the present study investigates whether (a) a global celebrity would be more applicable for a brand regardless of its COO (local or global); (b) a global celebrity would have a more favorable impact on the consumer attitudes for a third country (TC) brand; and (c) brand familiarity would moderate the effects of celebrity endorsements on consumer attitudes. Based on a detailed literature review, four hypotheses were developed and tested through two experimental designs using nonstudent participants. The independent variables used in study were celebrity endorser COO and brand COO. Major findings indicate a celebrity–brand COO match to create favorable impact on consumer attitudes. Findings also supported the effectiveness of a global celebrity for a brand that does not share the same COO. Brand familiarity was found to moderate the effect of the endorser on consumer attitudes. The study has implications for academia and practitioners.     

Investigating the impact of consumers’ patriotism and ethnocentrism on purchase intention: Moderating role of consumer guilt and animosity

The present study aims to examine how consumer guilt and consumer animosity, as moderators, can impact consumers' purchase intention toward domestic products. A total of 385 responses were used to test the proposed relationship. PROCESS macro was used to examine the mediating and moderating relationships. The present study provides guidance to international marketers on why and how they should do extra efforts to mitigate guilt feeling. The study contributes to the growing body of literature on consumer ethnocentrism by investigating moderating role of consumer guilt and consumer animosity.     

Linking Product Evaluations and Purchase Intention for Country-of-Origin Effects

Abstract

This paper reports an experimental study concerned with the observed inconsistency between evaluative and behavioral data for country-of-origin (COO) effects. This issue is addressed by specifying conceptual relationships among three criterion variables-consumer evaluations of product quality, perceived product value, and purchase intention in the context of COO effects. The results showed that COO information had a direct effect on overall product evaluation and an indirect effect (through product evaluation) on perceived product value, which in turn determined purchase intention. In addition, purchase intention was also directly affected by brand name and price factors, but not by COO. Moreover, it was also revealed that COO and brand name had a similar impact on overall product evaluation. On the whole, this study suggests that it may be premature to claim less significant importance and role of COO information in influencing purchase intentions or behaviors. Rather, the exact nature of COO effects for behavioral consequences might be much more complex than what has been assumed in most previous studies. The present investigation represents an initial effort in providing empirical evidence of how COO information may impact evaluative and behavioral variables differently in the consumer decision process. Managerial implications of this study are discussed.     

消费者敌意:跨地域营销研究的新方向

消费者敌意研究指出国家间的经济和政治矛盾会影响购买意愿,由于历史和国情等因素,我国与美、欧、日等主要贸易国长期存在类似矛盾,但是还没有从营销的角度得到学界和企业的重视。为了帮助企业界认识、理解和应对消费者敌意,文章从消费者敌意的概念、影响因素、结果变量和理论基础研究消费者敌意的特征和作用机理,进行分析和阐述。     

Consumer affinity for foreign countries: Construct development,buying behavior consequences and animosity contrasts

PurposeOur purpose is to extend affinity theory in construct domain, scale development, model testing and by discerning affinity and animosity.Design/methodology/approachWe carry out exploratory and empirical research in order to explore the domain and to test the factor structure and the hypotheses through confirmatory analysis.FindingsWe find (1) four target country affinity dimensions, (2) consumer affinity impacts micro country image, buying intentions and actual product ownership, and (3) affinity and animosity are distinct constructs with partly shared and partly unique dimensions.Originality/valueThe study is the first to empirically test the four dimensions, the first to establish a positive relationship with actual product ownership and micro country image, and the first to contrast the role of the dimensions in affinity and animosity.     

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.     

The use of the consumer ethnocentrism and consumer animosity scales in Iran: A research note

This research note presents the results of testing the reliability of two constructs from the country‐of‐origin literature—consumer ethnocentrism and consumer animosity—within the Iranian national consumer environment. Consumer ethnocentrism, developed by Shimp and Sharma (1987), measures the level of consumer ethnocentrism and has been used broadly in several countries. The consumer animosity scale (Klein, Ettenson, & Morris, 1998), a newer construct, has not been widely tested for its reliability in diverse national contexts. The country of Iran, with its ongoing dispute and hostility with the United States, provides an ideal context to test both of these constructs. We utilized the original animosity scale and an adapted version of the ethnocentrism scale. Both scales performed well and provide strong support for the reliability of each construct, allowing other researchers a high degree of confidence in their application. This finding suggests that these research tools may be useful and can be expanded to the greater Middle East region. © 2009 Wiley Periodicals, Inc.     

Why consumer animosity reduces product quality perceptions: The role of extreme emotions in international crises

International crises often influence consumers to reject offerings associated with a hostile country. While research has shown that negative emotions mediate the influence of animosity beliefs on consumer behavior, scholars do not examine the specific influence of different discrete emotions. This study extends prior research by demonstrating that extreme negative emotions of contempt and disgust play a key role in explaining the effects of animosity beliefs on behavior. The strength of these emotions results in a degraded image of the target country that is associated with social exclusion and intergroup hatred. In such circumstances, animosity also reduces product quality perceptions and is extremely difficult to manage. The best strategy is to eliminate any connection between the country of origin and the relevant offering. The findings of this study suggest that rather than assessing negative emotions in general, managers should consider the specific emotional reactions elicited by the country under examination.     

The impact of a product’s country-of-origin on compromise and attraction effects

Product information, such as country-of-origin (COO), often influences consumer choice. This research explores how valence of COO influences the magnitude of the compromise and attraction effects. The results of four experiments demonstrate that when a product’s COO denotes a negative image, the compromise and attraction effects decrease. The analysis also reveals asymmetric change of magnitude in the compromise and attraction effects.     

Modelling effects of consumer animosity: Consumers' willingness to buy foreign and hybrid products

This study aims to examine the effects of animosity on consumers’ willingness to buy hybrid products i.e. products that involve affiliations of two or more countries (such as branded in Japan but made in China). While consumers’ reluctance to purchase foreign products from countries that they have animosity towards is clearly evident in the current literature, little is known about consumers’ attitudes towards hybrid products. As such, the study introduces this new construct (i.e. willingness to buy hybrid products) to the animosity model to determine if animositic consumers would be more receptive or willing to accept hybrid products where the animistic tendencies towards foreign countries in question can be negated by the products’ domestic affiliations. To conduct this investigation, the study is undertaken in China where the Chinese consumers’ animosity towards the Japanese was examined. The data with a usable sample size of 435 were collected in the Chinese city of Nanjing. The findings of the study revealed that the high level of animosity present against the Japanese resulted in the Chinese consumers’ unwillingness to buy Japanese products. More importantly, results showed that the Chinese consumers are not any more receptive to hybrid products as such domestic affiliations have not diluted the animosity. Consistent with the literature, the study has also validated that Consumer Animosity to be a higher-order construct indicated by war and economic animosity. Under the conditions of extreme animosity, Consumer Ethnocentrism does not take a significant role in influencing other constructs in the animosity model.     

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.     

Are Iranian consumers poised to “buy American” in a hostile bilateral environment?

The current bilateral relationship between the United States and Iran is fraught with intense political and military tension revolving around the nuclear issue in Iran. Open hostility between the two governments has recently spilled over into national, regional, and global forums. Despite this turmoil, the Iranian consumer is actively engaged in the global marketplace, buying goods from around the world. Our research spotlights Iranian consumers’ attitudes toward importing and buying foreign-made products, with a special focus on American-made products. Our 2006 survey of 902 Iranian consumers suggests that Iranians are very open, but not exclusively so, to the purchase of foreign-made and American-made products. We also found the political-military bilateral tension or animosity between the Iranian and American governments has not transferred to the Iranian consumer. The Iranian consumers’ openness to foreign-made (including American-made) goods, coupled with low consumer animosity vis-à-vis the United States from Iranian consumers, provides an opportunity for American and Western multinational companies to actively compete for and engage with the Iranian consumer in the Iranian marketplace.     

Do consumer expectations match experience? Predicting the influence of price and country of origin on perceptions of product quality

This study investigates the respective influences of price and country of origin as extrinsic cues on consumer evaluations of wine quality when all intrinsic cues are experienced through sensory perceptions, and then compares these results with those of a survey employing identical intrinsic and extrinsic cues. Taste testing experiments were conducted (N = 263) using Chardonnay and a three (COO) by three (price) by three (acid level) conjoint analysis fractional factorial design. Price and COO were both found to be more important contributors to perception of wine quality than taste. The study advances our understanding of the influence of extrinsic cues to dominant quality assessment and shows conjoint analysis to be a credible means of measuring consumer reactions to specific wine attributes.     

Remnants of the U.S. Civil War and modern consumer behavior

This research introduces a construct termed regional animosity. Regional animosity represents individuals' preference for their own (ingroup) geographic region and incorporates elements of animosity toward people from an outgroup region. The construct emanates from an investigation of the historical divide between the northern and southern regions of the United States. The interrelated theories of social identity, stereotype activation, and consumer animosity provide theoretical rationale for the existence of regional animosity and its role in affecting consumers' evaluative judgments and price sensitivity. Data from three studies demonstrate that research respondents showed strong preference for products/services that originate in their home region. Results further reveal that scores on a scale measuring regional animosity correlated with the extent to which consumers chose products/services from their own region and the degree to which they were willing to pay premium prices to obtain these items. These findings support prior theory in a novel context and implicate a potentially important line of inquiry for future research. © 2004 Wiley Periodicals, Inc.     

Animosity and willingness to buy foreign products: Moderating factors in decision-making of Chinese consumers

This study examines empirically how Chinese consumers evaluate and respond to foreign products made in Japan. Specifically, it examines the moderating effects of materialism and susceptibility to normative influence on the effects of country-specific animosity on willingness to buy foreign products. The results confirm that the effect of consumers' animosity is subject to both consumers' personal values (for example, materialism) and social influences (susceptibility to normative influence). In terms of willingness to buy foreign products, the negative effect of economic animosity is alleviated by consumers' materialism, whereas that of war animosity is strengthened by consumers' susceptibility to normative influence. In turn, evidence from this study suggests implications for marketing strategies in developing countries.