Managing country-of-origin choices: competitive advantages and opportunities

This study investigates the effects of country-of-design/country-of-assembly combinations on consumers' evaluative beliefs about and attitudes toward buying automobiles. The effects are compared across groups of consumers differing with respect to levels of consumer ethnocentrism. Two design countries and two assembly countries (Japan or US) were considered, yielding four possible design-country/assembly-country combinations. The results suggest that manufacturing products in the country in which they are sold not only provides closer access to the market, but also allows multinational manufacturers to ‘blur the boundaries’ regarding a potentially sensitive country-of-origin issue among highly ethnocentric consumers. At the same time, they can leverage their country-brand images to appeal to those customers who recognize a particular country's ability to design high quality cars, regardless of their country of assembly.     

How consumer ethnocentrism modulates neural processing of domestic and foreign products: A neuroimaging study

Consumer services literature offers substantial evidence that ethnocentric consumers tend to prefer domestic over foreign products. Yet no research to date has delved into the question how consumer ethnocentrism (CE) modulates the neural processing of products. This is the first study resorting to neuroimaging to explore to what extent CE levels affect the processing of domestic (Spain) and foreign (USA and China) products. The brain data yielded by neuroimaging reveal that highly ethnocentric consumers experience a greater degree of activation in brain regions linked to self-reference and reward when considering to purchase domestic products and a greater activation in brain regions related to risk in the case of foreign products.     

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.     

Cultural Differences in Consumer Engagement in Brand-Related SNS Groups: A Cross-Cultural Study of China and the United States

To gain a better understanding of consumer engagement in brand-related social network site (SNS) groups, this study examines how consumers engage with the brand and other members of the groups among different national cultures through the lens of brand community characteristics and collective value creation practices within brand communities. Through conducting a directed qualitative content analysis of two cases—consumer wall posts in a Facebook group and a Renren group—this study finds supporting evidence that although consumers in both groups actively shared their product use experiences, consumers in the Renren group tended to explicitly express their shared consciousness with other group members, share their product use experiences in a modest and respectful way, and actively engage in social networking, while consumers in the Facebook group tended to focus on product use sharing. Theoretical and managerial implications are discussed.     

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.     

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。     

Celebrity Endorsements in Advertisements and Consumer Perceptions: A Cross-Cultural Study

ABSTRACT

We studied consumer perceptions of celebrity endorsements from a cross-cultural perspective. In empirically examining consumer perception of celebrity endorsement, we used Hofstede's cultural dimensions to develop research propositions and examined these propositions through focus group discussions involving consumers from India and the United States. Findings indicated that specific differences and similarities exist in how consumers across India and the United States perceive celebrity endorsements. There is a positive, although moderate, impact of celebrity endorsements on attention and exposure of consumers. Implications for marketers as well as suggestions for future research are discussed.     

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.     

Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi

Guanxi (literally interpersonal connections) is in essence a network of resource coalition-based stakeholders sharing resources for survival, and it plays a key role in achieving business success in China. However, the salience of guanxi stakeholders varies: not all guanxi relationships are necessary, and among the necessary guanxi participants, not all are equally important. A hierarchical stakeholder model of guanxi is developed drawing upon Mitchell et al.’s (1997) stakeholder salience theory and Anderson’s (1982) constituency theory. As an application of instrumental stakeholder theory, the model dimensionalizes the notion of stakeholder salience, and distinguishes between and among internal and external guanxi, core, major, and peripheral guanxi, and primary and secondary guanxi stakeholders. Guanxi management principles are developed based on a hierarchy of guanxi priorities and management specializations. The goal of this application of instrumental stakeholder theory is to construct, for Western business firms in China, a means to reliably identify guanxi partners by employing the principles of effective guanxi. These principles are described in the form of testable propositions that advance social scientific research in this area of international business ethics. Chenting Su is Associate Professor of Marketing at City University of Hong Kong. He is also Adjunct Professor at Wuhan University, P.R. China. He previously taught at the University of Victoria, Canada, He writes for Journal of Marketing Research, International Journal of Research in Marketing, Journal of Travel Research, Journal of Business Ethics, Psychology & Marketing, International Journal of Market Research, Service Marketing Quarterly, Research in Marketing, and others. He presently serves as Executive Director of China Marketing Association, P.R. China. Ronald K. Mitchell is Professor of Entrepreneurship and J. A. Bagley Regents Chair in Management in the Rawls College of Business at Texas Tech University. He publishes in the areas of new value creation and stakeholder theory. From 1999–2002 he held a joint appointment in strategy and public policy in the Guanghua School of Management at Peking University, Beijing, PRC. He has won numerous awards for research and program building; presently serves in the leadership of the AOM Entrepreneurship Division; and is Co-Editor for the Entrepreneurship Theory & Practice three-volume Special Issue on Entrepreneurial Cognition. Joe Sirgy is Professor of Marketing and Virginia Real Estate Research Fellow at Virginia Polytechnic Institute and State University (Virginia Tech). He has published extensively in the area of business ethics and quality-of-life (QOL) research in relation to theory, philosophy, measurement, business, and public policy. He co-founded the International Society for Quality-of-Life Studies (ISQOLS) in 1995 and is currently serving as its Executive Director. He received the Distinguished Fellow Award from both the Academy of Marketing Science and ISQOLS. In 2003, ISQOLS recognized him as the Distinguished QOL Researcher for research excellence and a record of lifetime achievement in QOL research. He also is the current JMM section editor on QOL issues and a co-editor of Applied Research in Quality of Life.     

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 Country of Origin Effect on Brazilian Beef Trade in Europe: The Moderating Role of Gender,Age, and Product Involvement

Stereotypes of individuals in relation to countries may affect their attitudes toward products from these nations (the country of origin effect). The objective is to analyze the country of origin effect for Brazilian beef in Europe, considering the role of moderators such as gender, age, and product involvement. It was concluded that beliefs in relation to countries and their impact on attitudes toward products from these countries may differ according to demographic issues. We also conclude that aspects related to communication, distribution, and differentiation of Brazilian products have received the worst evaluation by consumers who participated in the survey.     

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 Role of Ownership in Managing Interfirm Opportunism: A Dyadic Study

We extend research on transaction cost theory that shows that vertical integration enables firms to protect their investments in exchange relationships better than market mechanisms. However, extant research finds ownership to exacerbate, rather than limit, exchange partner opportunism. Hence, the purpose of this study is to investigate conditions under which ownership can be effective for constraining an exchange partner's opportunism. Using matched dyadic data for 296 hotel brands, we conduct multi-level hierarchical linear modeling and identify conditions under which common ownership limits hotel opportunism. Findings indicate that ownership can limit hotel opportunism when brand headquarters can easily monitor the hotel's activities.     

Conceptualizing Consumer Ethnocentrism in a Developing Country: Validity and Applicability of CETSCALE in Bangladesh

This article argues that the traditional belief that “consumer ethnocentrism is a phenomenon of the developed countries only” is no longer true. To establish this argument, this study assesses the applicability of the Consumer Ethnocentric Tendencies Scale (CETSCALE) to a developing country Bangladesh. The methodology is based on 788 samples collected from 27 districts of Bangladesh. Results show that for three chosen sociodemographic groups namely, students, job holders, and businessmen, the CETSCALE is to a much extent applicable as the groups have shown positive attitudes in retaining 12 to 14 items out of the 17 items of the original scale.     

The Role of Culture in Creative Execution in Celebrity Endorsement: The Cross-Cultural Study

ABSTRACT

In advertising literature, an area rarely explored is cross-cultural studies on celebrity endorsements. A good deal may be learned from understanding how a culture's communication style can shape the type of advertising most effective for that culture. This study examines the creative styles (creative executional factors) found in the advertising of Korea and America. The two countries represent two distinct cultures—Korea being a collectivistic culture and the United States being individualistic. Both cultures affect the norms and rules that guide their inhabitants’ behavior, directly affecting communication styles. The study finds that embedded in the use of celebrity endorsement are cross-cultural characteristics. The details of these findings will be useful to international advertisers executing celebrity endorsement campaigns in different cultural settings.     

The Intertextual Construction of Emerging Consumer Culture in China as Observed in the Movie Ermo

Summary

The rapid development of consumer culture in China is chronicled and caricatured in particularly revealing ways in the movie Ermo. It concerns the story of a rural Chinese woman, Ermo, who undergoes a metamorphosis in seeking to make enough money to buy a television set. Since popular culture texts, such as movies, often serve to mirror a culture back to itself, we conducted a discourse analysis of this film. We found that cultural intertextuality, that is the hybridizing construction of global and local meanings, was central. This intertextu-ality had two emergent themes: (1) longstanding versus postmodern narratives and (2) a Sinicization or Chinese indigenization of meanings. Managerial and research implications are drawn which direct marketing efforts toward the needs of Chinese consumers embodied in their indi-genized and particular local expression of new postmodern lifestyles.     

Relationship Marketing in China: Guanxi, Favouritism and Adaptation

One of the hot research topics today is relationship marketing. However, little research has been carried out in understanding the complex concepts of Guanxi (relationship) in a Chinese society. This research describes a study to operate the constructs of guanxi and explores the importance of guanxi in relationship development in order to present a new Guanxi framework. A study of both Western and Chinese literature provides foundations of the Guanxi perspectives. The constructs of adaptation, trust, opportunism and favour are identified. Adaptation and trust are found to be positively correlated with sales stability and quality. Whilst, adaptation is negatively correlated with relationship termination costs. Both theoretical framework (a new perceptual map) and managerial implications are given. In addition, recommendations for future research are made.     

Guanxi and distribution in China: the case of Ferrero Group

This paper aims to analyze how guanxi-based business relations impact on distribution choices of foreign companies entering China. In particular, it investigates the influence of guanxi on decisions regarding both the organization of distribution channels and the management of distribution channels. It emerges that from an organizational point of view guanxi-based business relations may favor interdependence, low integration in the channel relationships, and foster multichannel choices. From a management point of view, guanxi may reduce the control of local partners over channel, create coexistence between conflict and collaboration in the channels relationships, and favor unmediated communication. The authors examine the emblematic case of Ferrero, a well-known Italian multinational company, specialized in chocolate production, which began to develop its entry strategy in China more than 30 years ago.