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.     

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.     

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.     

Reexamining emerging market animosity toward western developed countries: A social dilemma in physical retailing consumption under normative influence

Focusing on physical retailing as an apparent target for boycotts in the context of emerging market consumers' animosity toward Western developed countries, this research pioneers in its in-depth examination of a social dilemma whereby consumers on one hand wish to avoid purchasing Western products/services to meet social expectations, while on the other wish to continue purchasing Western products/services, because of perceived Western product/service superiority, at the risk of social disapproval. Differing from conventional animosity research that largely neglects interpersonal influence, this research synthesizes social influence theory and social exchange theory to compare consumers’ purchase decisions in visible (physical retailing) and less-visible (online shopping) consumption contexts that are subject to different strengths of normative influence, and proposes a cost-benefit analysis to explain how consumers make trade-offs between social expectations and self-interest. Two studies were conducted to test the hypotheses. Our study findings have important implications for future animosity research on consumer services that are subject to stronger normative pressure.     

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.     

It's no longer mine: the role of brand ownership and advertising in cross-border brand acquisitions

Although cross-border brand acquisitions are increasingly common in the global marketplace, research on how consumers respond to them is limited. Building on social identity and psychological ownership theories, we introduce the concept of brand ownership to the advertising literature, and show its negative effects on consumer reactions to a brand acquisition. Furthermore, we demonstrate that consumers’ disidentification (i.e., an oppositional motivation) with an acquiring country moderates the negative effect of consumers’ brand ownership on consumer attitudes after a brand acquisition. The results reveal that consumers with high levels of brand ownership develop more negative post-acquisition brand attitudes when a brand is acquired by a country with which consumers strongly disidentify (i.e. dissociative vs. out-group). Furthermore, our research introduces the concept of a brand ownership appeal in advertising, and demonstrates that it is an effective advertising strategy in enhancing post-acquisition brand attitudes for consumers with high levels of brand ownership. Important theoretical and managerial advertising implications conclude this research.     

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.     

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.     

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.     

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.     

Effects of sales promotion type and promotion depth on consumer perceptions: the moderating role of retailer reputation

This study uses a between-subjects experimental design to test the effect of two sales promotion formats (coupon versus markdown) with either high and low face values on consumer attitudes toward the deal, perceived product quality, and purchase intentions. The reputation of the retailer offering the deal is predicted to moderate the relationship between the promotional offer and consumer responses. Consumers perceive product quality to be higher when offered a high value coupon vs. markdown but there is no significant difference in perceived quality across promotion types when the promotion face value is low. When a deep price discount is offered by a retailer with a negative reputation, however, consumers have more favorable attitudes toward the deal and higher purchase intentions when provided with a markdown vs. coupon. Conversely, a high value coupon elicits more favorable evaluations than a markdown when the retailer has a positive reputation. When the value of the promotion is low and the retailer has a positive reputation, consumers have more positive deal attitudes and purchase intentions when offered a markdown vs. coupon. There is no significant difference in the effects of promotion type when the retailer has a negative reputation. The findings therefore establish retailer reputation as an important moderator of sales promotions effectiveness. This research is limited by the use of a single product category and a student sample. Process measures are also needed to validate the proposed theoretical conceptualization. The results provide managers insight into the type and value of the sales promotion to offer based on consumer perceptions of the retailer's reputation in the market.     

Consumer attitude toward US versus domestic apparel in Taiwan

This study investigates whether or not consumer attitudes toward domestic‐ vs. US‐made apparel differ among consumers in Taiwan. Variables to be examined include (1) apparel attributes; (2) self‐concept; and (3) demographics. The Fishbein attitude model was used to measure consumer attitudes. The mall‐intercept method was used to collect most data in four major cities of Taiwan. A total of 485 Taiwanese consumers completed and returned useable questionnaires. Results indicated that consumer attitudes toward Taiwan vs. US‐made apparel differed significantly among consumers in Taiwan. Consumers had an overall more positive attitude towards US‐made apparel compared with Taiwan‐made apparel with regards to care instruction label, colour, quality, apparel fibre content, fashionableness, attractiveness, brand name, and comfort apparel attributes. For self‐concept variables only modest/vain and thrifty/indulgent had a significant difference between consumers who preferred US‐ over Taiwan‐made apparel. Demographic factors of age, gender, education, residence area, travelled abroad and country‐of‐origin preference had a significant relationship with consumer attitudes toward apparel. This study is aimed at understanding Taiwanese consumers’ attitudes toward foreign‐made apparel. Overall, Taiwanese consumers preferred US‐made apparel; however, the apparel attribute of size range needed improvement to increase customers’ satisfaction.     

Language and cross-border acquisitions: An exploratory study

The aim of this study is to examine the effects of language on post-acquisition performance of US based cross-border acquisitions. In this study we attempt to show that post-acquisition performance is explained by the linguistic distance between the acquirer and target country of the acquisition. In addition, this study explains the moderating role of acquisition experience in the linguistic distance-acquisition performance relationship. An analysis of 1120 US acquisitions in 33 target countries over a period of 6 years (2007 to 2012) demonstrates that linguistic distance has explanatory value in post-acquisition performance. Our analysis also demonstrates that the acquirer’s cross-border acquisition experience plays a significant role as a moderator of this linguistic distance—acquisition performance relationship. In addition, our analysis of lingua franca proficiency also lends support to our hypothesized relationships and demonstrates the robustness of our findings.     

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.     

Understanding purchase intention towards Chinese products: Role of ethnocentrism,animosity, status and self-esteem

The Indian market has got flooded with Chinese goods that pose a great threat to indigenous businesses. Despite increase in bilateral trade, the relationship between India and China continues to be marred with suspicion, animosity and distrust. Therefore, it becomes meaningful to understand how the consumers distinguish between domestic and Chinese goods. The study examines the relationship between ethnocentrism, customer animosity, social status and personal self-esteem and their impact on purchase intention towards Chinese imports. The results indicate that the attitudes and behaviour of consumers in an emerging nation differ greatly from their counterparts in developed nations. Contrary to expectations, the relationship between ethnocentrism and customer animosity is not significant. Personal self-esteem and customer animosity impact the purchase intentions of Indians while ethnocentrism and social status do not have any such influence. The study seeks to expand the existing literature on purchase intention of foreign products and also help the marketers design their marketing mix strategies.     

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.     

Customer reactions to acquirer-dominant mergers and acquisitions

This article investigates consumer reactions to acquirer-dominant mergers and acquisitions (M&As) from the perspective of the (smaller) target brand and explores how marketing actions can mitigate negative effects. The findings from five studies show that consumers tend to react negatively to M&As by devaluing the acquirer brand, increasing their intention to switch, and adjusting their attitudes toward the target brand upward. We suggest that psychological reactance is a mediator of the negative effects of merger information on customers' attitudes and switching intentions. We also demonstrate that brand managers can attenuate reactance by involving consumers in merger decisions, thus providing important managerial implications for M&A decisions and processes.     

Country-of-origin, animosity and consumer response: Marketing implications of anti-Americanism and Francophobia

Anti-Americanism and Francophobia express a consistent hostility toward the government, culture, history or people of the US and France or the Francophonie (the global community of French-speaking peoples). This study explores interactions between country-of-origin (COO) effects and animosity expressed through anti-Americanism and Francophobia through analysis of scholarly studies, several decades of articles from the general and online press in the US and France, and ethnographic fieldwork in France and the US results reveal interesting inconsistencies and variability in national expressions of consumer animosity and response to COO cues over the time of the study, underlining the need for further longitudinal study of animosity, COO effects and consumer response. Implications of findings are examined with reference to theory development, marketing practice, and public policy.     

Guilty by stereotypic association: Country animosity and brand prejudice and discrimination

This research tests the proposition that brands suffer prejudice and discrimination due to animosity toward a country with which they have a strong stereotypic association. In the first study, attitudinal data collected across a range of brands that vary in terms of the strength of the brand–country association indicate that brands with strong stereotypic association with a country suffer direct prejudice, in the form of more negative attitudes, related to animosity. When the brand–country association is less strong, the relationship between animosity and brand attitudes is moderated by the strength of the stereotypic association. In the second study, the level of brand–country association is manipulated experimentally to provide additional evidence of its moderating role on the relationship between country animosity and both prejudice toward (more negative brand attitudes) and discrimination against (less choice) a new brand.     

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT

The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.