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.     

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.     

Country of origin: A competitive advantage?

Country of origin has been identified in the literature as an important cue that might be used by global marketers to influence consumers' valuation of the brand. Its effect on consumer perceptions, affect and behavioral intentions has been widely documented, based on consumer surveys and laboratory experiments. Despite this empirical evidence, we argue that country of origin is only one extrinsic cue among many extrinsic and intrinsic cues available to the consumer in a real purchase situation. Furthermore, in real life, consumers are likely to engage in some level of information search, which would further dilute the country of origin effect in the marketplace. Based on these arguments, we conclude that country of origin might not necessarily lead to a competitive (dis)advantage in terms of a price premium or discount. For a sample of products, we show that the objective product quality varies significantly by country of origin, and that these differences are consistent with extant research on country of origin effects on consumers' perceptions. After controlling for quality differences across brands, we demonstrate that marketers from different countries charge prices that are justified by differences in product quality. Price premiums or discounts are therefore explained by differences in product quality rather than the image effect produced by the country of origin cue.     

The asymmetric dominance of cognitive versus affective country image in driving purchase: Conditioning roles of cognition-affect intra-valence nature and product type

Despite the vast amount of research on country image, extant country-of-origin (COO) literature remains ambiguous about which of the country image dimensions, cognitive country image (CCI) or affective country image (ACI), is more important in driving purchase. Drawing on the primacy of affect theory, this research develops a nomological framework that clarifies this ambiguity and explains whether, when, and why ACI/CCI takes precedence in determining purchase decision. With a large-scale study on Chinese consumers responding to two types of products from four countries, the findings unveil the asymmetric dominance of CCI and ACI in influencing purchase intention via consumer cognitive product judgment and affective product evaluation, which is conditioned by the dyadic effects of country cognition-affect intra-valence nature and product type. This research contributes through illuminating the differential roles of CCI and ACI in influencing consumer reactions to foreign products, the boundary conditions and underlying mechanism of the differences.     

The effects of consumer knowledge on responses to event sponsorships

Research into consumer responses to event sponsorships has grown in recent years. However, the effects of consumer knowledge on sponsorship response have received little consideration. Consumers' event knowledge is examined to determine whether experts and novices differ in information processing of sponsorships and whether a sponsor's brand equity influences perceptions of sponsor–event fit. Six sponsors (three high equity/three low equity) were paired with six events. Results of hypothesis testing indicate that experts generate more total thoughts about a sponsor–event combination. Experts and novices do not differ in sponsor–event congruence for high‐brand‐equity sponsors, but event experts perceive less of a match between sponsor and event for low‐brand‐equity sponsors. © 2004 Wiley Periodicals, Inc.     

Consumers' perceptions of food packaging: an exploratory investigation in Potchefstroom,South Africa

Consumers form perceptions of various food products through their comprehension of the visual stimuli on food packaging that attract their attention. These perceptions directly affect their purchasing decision at the point of purchase, which emphasizes the importance of attention‐capturing packaging attributes. However, little research is available regarding consumers' perceptions of food packaging, especially in the South African context. This study aimed to explore a sample of South African consumers' perceptions of food packaging and how these perceptions were formed through the perceptual process. A qualitative, exploratory study was conducted by means of 25 semi‐structured interviews and through the use of ambiguous mock packaging as a projective technique. Participants were questioned regarding their general perceptions of food packaging. The attention‐capturing ability of packaging as well as consumers' interpretation of this packaging after exposure to the mock packaging was also discussed. Findings from the study indicated that participants mainly based their perception of food packaging on its functional (being purposive, recyclable and informative) and physical attributes (being attractive, of high quality and hygienic). This study also indicated that information and visual attributes of packaging are important to gain consumers' attention in‐store. Participants' comprehension of packaging included general associations of specific food products with certain types of packaging, such as associations with quality and shelf life. Negative associations with packaging mostly entailed difficulty to handle the product, poor quality of the product and environmental problems. This study identifies those product attributes that participants regarded as the most important stimuli for forming positive perceptions regarding food packaging. It is important for manufacturers to pay attention to the information on perceptions that was gained in this study, as it might help them to create packaging that better fulfil consumer needs. These findings could also be applied in a larger study of a quantitative nature, which will ultimately result in more positive consumer shopping experiences and consumer satisfaction regarding food packaging.     

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.     

Antecedents of cognitive age: A replication and extension

Cognitive age has been an important construct in studies of older consumers. The present study builds upon previous research by providing theory‐based antecedents of cognitive age. The results suggest that differences in cognitive age do not merely reflect differences in chronological age, and that a person's cognitive age is influenced by his or her experiences of life events that serve as markers of transitions into social roles people are expected to enact at different stages in life. In addition, the experiences of health‐related events, such as chronic conditions, make people aware of their aging, affecting their cognitive age. The influence of cognitive age on consumer‐behavior variables is also examined, and directions for future research are suggested. © 2005 Wiley Periodicals, Inc.     

How do controversial foreign country images affect consumers?

Research shows that controversial political–economic, social, and environmental country images affect consumer responses to foreign products. This study adds to the existing evidence by examining the contingent role of subjective country knowledge and (domestic vs. foreign) country image congruence in the relationships between foreign country image and two major determinants of country-driven (anti-)consumption: foreign product judgements and consumer animosity. The findings draw on survey data (N = 400) on Spanish consumers' views of China and Chinese apparel products. The results indicate that higher subjective knowledge about social and environmental issues (negatively) affecting the foreign country can lead to attenuated (positive) relationships between such country images and foreign product judgements. Further, more negative foreign product judgements can result from incongruent country images—that is, when consumers are more critical of the foreign than of their home country in political–economic, social, and environmental areas. Instead, there is limited support for the hypotheses involving consumer animosity as an outcome. Implications for theory, policy, and practice are discussed.     

The role of attributions in consumer perceptions of retail advertisements promoting price discounts

This study examines whether information in an advertisement promoting a price discount is capable of affecting attributions made about the price reduction and whether these attributions, in turn, affect consumer perceptions and evaluations of the sale. Findings show that price image of the retail advertiser had a strong effect on attributions pertaining to the merchant and a marginal effect on product attributions. The attribution variables, in turn, explained significant amounts of variance in criterion variables measuring consumer perceptions of value, attitude toward the ad, and shopping intentions, beyond the variance explained by the store and discount claim variables manipulated in the study. These results suggest the importance of the role of attributions made by consumers when exposed to ads promoting discounts.     

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.     

Exploring Country Bias in a Retailing Environment:

The importance of source countries' influences as predictors of consumer attitudes and behavior toward products originating in the respective countries has been amply acknowledged in the global marketing literature, where it is considered a major research stream-known as "country-of-origin" research. Furthering discovery in this domain, the present study compares consumer perceptions of an electronics store originating in an industrially-developed country known for its technological capabilities in this domain (Germany), with perceptions of a similar store from a developing country (Mexico). In the process, differences between managerial and clerical customer groups in terms of store expectations are also assessed and suggestions are advanced for future 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.     

Consumer‐generated media and product labelling: designed in California,assembled in China

Product country‐of‐origin labelling is an important extrinsic cue for consumers about a product's attributes. In a globalized world where products components and parts originate from multiple countries, companies have resorted to inventive country‐of‐origin labelling. The objective then of this paper is to better understand consumers' evaluation of products that have inventive country‐of‐origin labelling (i.e. Designed in California, Assembled in China). Exploratory qualitative data were collected from consumer‐generated media (36 weblogs) using Nielsen's Research BlogPulse tool. A grounded theory analysis revealed that four key themes emerged from the data that related to confusion about the labelling strategy, strong symbolic and emotional ties to country‐of‐origin, and the importance of country‐of‐origin as a quality signal.     

Pricing strategy and the formation and evolution of reference price perceptions in new product categories

This study examines the formation and evolution of reference price perceptions in new product categories. It contributes to our understanding of pricing new products by integrating two important research streams in marketing—reference price theory and the theory of pioneer brand advantage. Prior research has focused solely on products in existing or incrementally new categories, and has typically examined fast‐moving consumer goods. Using a cross‐sectional experiment to study the formation of reference price perceptions, and a separate, but related, longitudinal experiment to study the evolution of reference price perceptions, the findings suggest that the pioneer brand's initial price defines a consumer's initial reference price, whether the pioneer is following a skimming or a penetration strategy. This effect endures in later time periods where the initial price affects consumer perceptions of value and purchase intention. The study also finds that the pioneer, due to its prototypicality, has a stronger influence on reference price perceptions than the follower, creating a systematic bias to both the formation and evolution of reference price perceptions in new product categories. Thus, reference price perceptions are shaped by what the pioneer does, rather than what the follower does. Furthermore, category‐level reference prices exist and explain purchase intention, but do not improve over brand‐specific measures in this regard. These findings have implications for pricing strategy and the theory of reference prices. ©2010 Wiley Periodicals, Inc.     

“Ours” or “theirs”? Psychological ownership and domestic products preferences

This paper seeks to understand the role of psychological ownership in shaping perceptions and preferences of domestic versus foreign products. We provide evidence that quality judgments and purchase behavior of domestic products depend on different levels of shared ownership. From a theoretical perspective, we show that domestic psychological ownership is an important construct that explains how preferences for domestic brands are formed. In terms of methodological contribution, the study offers a psychometric measure that will assist researchers interested in international consumer research. Finally, the study is of managerial interest in that our findings provide at least a partial explanation why many foreign brands fail to establish stronger positions in domestic markets, as well as why hybridization and glocalization strategies are successful.     

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.     

‘Better safe than sorry’: consumer perceptions of and deliberations on nanotechnologies

Although nanotechnologies are considered key technologies that can drive growth‐generating innovations in well‐saturated markets, worldwide investment in nanotechnologies has to date focused largely on technology‐related development programmes and little effort has been expended to research associated risks. As a result, even though prior discourses have sensitized western consumers to potential health‐related dangers, solid knowledge on, for example, the toxicological and eco‐toxicological risks and unintended side effects of nanotechnology are scarce. This paper therefore presents an overview of the current evidence on consumer knowledge and perceptions of nanotechnology and public engagement with it, with a focus on the US, the UK and Germany. Overall, even though survey data suggest that awareness of the term ‘nanotechnology’ has risen slightly, today's consumers are generally ill informed about its nature and its applications in consumer‐related products. Hence, based on our analysis of these data, we argue that early political engagement in the nanotechnology issue – for example, consumer policy options that support consumer interest in the marketing of ‘nanos’– would facilitate objective public discourse.     

Social status and country‐of‐origin preferences

This paper explores consumers' attitudes towards products of foreign origin according to consumer social status, particularly when purchases come from countries that have a low‐cost/low quality image. The research question is: for an identical good (same manufacturer, same brand), do consumers belonging to lower social classes ask for a larger price discount than higher social status consumers when they are offered the opportunity to switch from a country of manufacture whose quality image is well established, to a country of manufacture, the image of which is more uncertain (e.g. South Korea)? A structural equations model is used to highlight the fact that social status has only an indirect influence on the discounts for shifting to lower‐image countries. The relatively weak image of Korean products (at least against Germany and Japan) tends to result in higher price rebates asked for the Korean manufacturing origin. But lower social status consumers evaluate Korea more positively as a country‐of‐origin. The normative recommendation for the advertising strategy of “cheap” origins' goods in highly developed markets would be to put emphasis on quality rather than price, especially when modest consumers and lower classes are explicitly targeted.     

The Paradox of a Warranty: Can No Warranty Really Signal Higher Quality?

Signaling theory predicts that the duration of warranty correlates positively to the perception of product quality. Longer warranty lengths would lead to more favorable product quality perceptions, which in turn would foster more favorable consumer evaluations. However, the handicap principle predicts that the absence of a warranty could actually increase consumer evaluations based on the premise that only the sellers that are very confident about the quality of their products would make such an offer. Through two studies, this research shows that the no‐warranty condition can actually produce more favorable product evaluations and purchase intentions as opposed to a longer warranty offer.