Revisiting Country Image – Examining the Determinants towards Consumers' Purchase Intention of High Technological Products

ABSTRACT

The purpose of this study is to investigate consumers' perceptions towards a developed country image (e.g. USA) and a developing country image (e.g. China) in relation to evaluating and buying high technological products, more specifically, smartphones. In addition, the research also examines the effects of consumer aspirations and product knowledge as consumption traits towards buying behavior. A self-administered questionnaire was employed for this study using established scales with the questions formulated around two countries, USA and China. It was administered through a mall intercept method and a particular focus will be associated to the comparison of China and USA. The stark contrast between the two countries in terms of their image and stature presents an insightful inquiry into the relevancy of country image and country of origin image importance in modern day context. The results show that country image as an evaluation cue is still pertinent in a generation where globalization is present. Results further highlights that although possessing a positive country image leads to a positive evaluation of the product country image, it however does not ensure a successful purchasing intent. Additionally, it is beneficial to note that the results for both USA/IPhone and China/Xiaomi showed a significantly greater path coefficient as compared to other causal paths. Potential moderating factors such as product involvement or pricing can also be explored. Future research should attempt to account for socio economic or demographic factors such as important controls for education, social status and income that are bound to impact on the relationships at the heart of the proposed research hypotheses.     

出口商品技术结构及其对经济增长的影响——基于巴西数据的动态面板模型研究

巴西是发展中国家中的大国,也是拉美国家中工业体系较完善的国家之一。二次大战后,特别是20世纪70年代以来,巴西经济得到飞速发展,虽仍属发展中国家,却拥有许多发达国家的特征。本文利用1992-2010年的数据,首先测算出巴西在SITC三位码水平下的260种出口产品的技术含量值,并在这一基础上借助相关指标考察巴西出口商品的技术结构变迁情况,最后通过动态面板数据模型研究了巴西不同技术含量的出口商品对经济增长的影响。     

A contingent approach to country-of-origin effects on foreign products evaluation: Interaction of facets of country image with product classes

This study investigates the effect of country-of-origin image on consumers’ evaluations of foreign products and disaggregates the effects across facets of country image and across product classes. We disentangle country image into cognitive and affective dimensions, and additionally disaggregate the cognitive dimension into geographic and human aspects. We posit that country-of-origin effects will vary across distinct facets of country image and that the effect of each facet of country image will vary across different classes of products. By means of an online survey, data were collected from French consumers regarding their perceptions of cognitive and affective aspects of two countries – Brazil and Germany – and their evaluation of three product classes – utilitarian nature-based, utilitarian industrialized and hedonic industrialized – which were represented respectively by fruits, home appliances and clothes. Empirical results partially corroborate the hypothesized contingent impacts.     

Lessons from a Brazilian miracle: Surviving and thriving in a highly inflationary environment

Since the Plano Real was successfully implemented in July 1994, inflation has been curbed to normal proportions in Brazil. Until that moment, Brazil had been a highly inflationary economic environment for decades. It had reached a degree of sophistication by means of complex indexation mechanisms and a myriad of financial instruments that no other highly inflationary country had ever achieved. This article discusses the lessons that can be drawn from the pre-Plano Real period in Brazil. These lessons might prove useful in areas currently confronted with high inflation rates, such as Eastern Europe, and future highly inflationary countries. The article is based on a study among 40 senior executives from a wide variety of economic sectors in Brazil.     

Mediated-moderated effects: High and low store image,brand awareness,perceived value from mini and supermarkets retail stores

This paper addresses how different store formats moderate the relationship between store image and purchase intention, mediated by brand awareness and perceived value. Questionnaire data was collected through face-to-face interviews with retail customers on the streets of a city in southern Brazil. Hypotheses testing were performed using the partial least squares structural equation modeling, supported by Smart-PLS and the Bootstrapping procedure run in the Process software. The model's sample included 298 retail customers for each store format (supermarket and mini-market). Results showed that store image positively impacted customer purchase intentions and the mediators, perceived value and brand awareness, which had a distinct effect on the direct relation of store image and purchase intention. Store format presented moderation effects on the relation between store image and brand awareness for both store formats: the higher the perception of store image, the greater the consumer's brand awareness. However, store format did not present a moderating effect on the relationship between brand awareness and purchase intention. Store image was found to be an important independent construct that improves brand awareness and increases perceived value. The number of mini-markets in Brazil is increasing, indicating that they are supplying a need unmet by supermarkets. The study design's implementation in the city streets, respondents were requested to imagine store image, which may have affected some of the parameters. The model integrated store image as an important construct influencing purchase behavior and this study presented a mediated-moderated model with managerial implications.     

Currency depreciations, financial transfers, and firm heterogeneity

The present paper investigates five episodes of currency collapse from the perspective of non-financial firms operating in Argentina, Brazil and Mexico. We focus on two aspects: wealth and income transfers from borrowing firms to lenders and firm heterogeneity. At the firm level, we find that the currency collapses are preceded and associated with sharply rising financial transfers from firms to lenders. The debt and income structure is central in explaining the asymmetric firm dynamics. Most affected are firms with high levels of unhedged foreign-currency debt. At the country level, Argentina, Brazil, and Mexico display three contrasting examples. Argentina has a large currency mismatch, Brazil balances the currency denomination of debt and income (natural hedge), and Mexico occupies an intermediate position.     

South Korea: Successful large-scale international borrower

At the end of 1982 South Korea had foreign debts of US $ 38 billion, the third highest total for a developing country after those of Mexico and Brazil. In contrast to these countries, however, South Korea has avoided debt crises so far. In view of the 20 or more rescheduling operations carried out in 1982, the country is at present a model for a successful programme of borrowing. The development of this Far Eastern country therefore deserves closer examination.     

Doing business in Brazil: A strategic approach

Brazil has the largest economy in South America, and the second largest in Latin America, offering one of the most promising markets in the world. Along with China and India, Brazil is ranked among the nations with the highest predicted development rates in the next 25 years. In the early 2000s, Brazil accounted for 56% of all foreign direct investment flows to South America and 52.5% of the foreign direct investment stock in South America. Brazil is also a key player in the design and development of the Free Trade Agreement of the Americas (FTAA), which is scheduled to be effective by 2005. The FTAA is expected to be the world's largest regional trading block. In 2002, Brazil was ranked twelfth amongst the largest economies in the world. Brazil is one of the world's “Big Five” emerging markets, along with China, India, Mexico, and Indonesia. In the past decade, Brazil was second to China among emerging economies for received foreign direct investment. This article elaborates on the main aspects of doing business in Brazil and discusses some of the challenges and opportunities facing the Brazilian economy. © 2004 Wiley Periodicals, Inc.     

Transparency to Reduce Corruption?

Corruption within the private sector has often not been dealt with in Brazil. Organizations may find corrupt acts in its operations or practices, but specific concepts and programs to avoid them are neither concrete nor clear. Some Brazilian stockholders have become aware of the risks involved in unethical procedures and are adopting the Best Practices of Corporate Governance initiative. International agencies have intensively supported organizations and governments in an effort to define policies that inhibit illegal or corrupt cultural habits throughout the world, but Brazilian practitioners show insufficient response. Skepticism may indicate a lack of understanding about how an ethical leadership can guide employees, setting high standards for the organizational culture and climate, clearly defining limits of correct behavior, and creating appropriate codes of ethics. Transparency still has to be discovered as a significant tool to encourage professionalism in performance and reporting of data in Brazilian companies. In this article, we analyze the ethical behavior of the purchasing department of a multinational company in its host country, Brazil. It focuses specifically on the supplier–buyer relationship. The results indicate that despite the negative reputation Brazilians have in business ethics, a company can still develop a positive and ethical relationship with its stakeholders. Communication, transparency, compliance with the company’s code of conduct as well as the supplier’s awareness of the buyer’s code of conduct are the factors which influence the supplier–buyer relationship. Transparency can be used as a tool to reduce corruption, thereby increasing ethical behavior and company image. Good ethical behavior can help to build up a company’s image.     

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.     

Expatriate personality and cultural fit: The moderating role of host country context on job satisfaction

This study draws on the cultural fit hypothesis to examine interactive effects of host country context and four (Multicultural Personality Questionnaire) expatriate personality traits – Cultural Empathy, Social Initiative, Emotional Stability, and Open Mindedness – on job satisfaction. The cultural fit hypothesis maintains that it is not only the expatriate personality traits per se, but the cultural fit between expatriate personality traits and host country cultural values, norms, and prototypical personality traits that predict expatriate adjustment in host countries (Searle & Ward, 1990). Providing partial support for the cultural fit hypothesis, data derived from 191 expatriates in Brazil and Japan shows that the importance of two personality traits varies in these countries. Specifically, expatriates with high Cultural Empathy were more satisfied with their jobs in Japan than in Brazil, whereas Social Initiative was more important for expatriates in Brazil.     

基于Fishbein合理行为模型的国家形象对中国消费者购买意向影响研究——以美、德、日、韩四国国家形象为例

This study finds that Chinese consumers’ perception of country image can be divided into four dimensions: appraisal of the relationship with China, degree of country development, general product appraisal, and general people appraisal. The items in these four dimensions vary for different countries. The study incorporates country image into the Fishbein’s model, and finds good fitness between the model and data, which suggests that the Fishbein’s model has good generalizability and cross-culture adaptability. Results show that country image has no direct impact on purchase intention; instead, it impacts on consumers’ purchase intention indirectly through the effects on functional appraisal and symbolic appraisal, brand attitude and subjective norm. The effect of country image on purchase intention varies for different products. Specifically, the effect of country image on purchase intention of apparel is greater than that of cell phone, and that on purchase intention of car is the lowest.     

Developing Social Responsibility: Biotechnology and the Case of DuPont in Brazil

The development of genetically modified organisms (GMOs) has caused worldwide debate and has required us to reevaluate theories of social responsibility. This article, first, briefly discusses the progressive stages of social responsibility that scholars have outlined as they examine the history of businesses. Next an overview of the development of the DuPont corporation in the United States is presented, tracing DuPont’s transformation from an explosives and chemicals company into a life-science corporation and demonstrating how outside factors influenced this change. The article then turns to the activities of the DuPont corporation in Brazil, a country with one of the world’s largest agricultural economies – and examines how the debate on GMOs is unfolding within the Brazilian context. It discusses how differing interest groups have taken part in this debate, the limits of their arguments, and the need to develop means for providing open collaborative efforts in evaluating new technologies. Margaret Griesse holds a Ph.D. in Education and International Development from the University of Frankfurt. She is currently Coordinator of the Martha Watts Cultural Center at the Methodist University of Piracicaba, Brazil.     

Small-Sized Suppliers Entering Large Markets: An Ethical Initiative of the Caras do Brasil Program

The Pão de Açúcar Group was a pioneer in food retailing in Brazil and is now one of the largest Brazilian retailers. Working in a pulverized market characterized by small players, the Group produces US$ 20.4 billion in gross sales. It has become the largest employer in the country with 140,000 of employees working in over 1,800 stores, in 18 of the 25 states in Brazil, and covering a sales area of over 2,800,000 m² (Grupo Pão de Açúcar, GPA Consolidado. Resultados 3T12. São Paulo, Brazil, p. 2. November, 1, 2012). The objective of this article is to analyze a business inclusion strategy of the Pão de Açúcar Group. The Caras do Brasil Program (Faces of Brazil) was created in 2002, by the Group directors as an effective initiative, aiming to develop a new sales channel for sustainably handling products. The Program opens opportunities for small suppliers, not only in the Pão de Açúcar chain but also among competitors and in other industries. The Program established some requirements for the producer to become a supplier, aiming to adapt the products to a regular commercialization with the Group. In this way, small producers can now rely on a complete business process, while beforehand the goods were sold mostly through small channels.     

Doing bussiness in Brazil

Brazil has had one of the worst records of hyperinflation in Latin America, with rates reaching 5,500 percent in 1994. Yet the author contends that, despite sharp price fluctuations from one day to the next, a company can learn to manage hyperinflation through flexibility and a willingness to adapt and reinvent. McCann-Erickson, the advertising agency that formed the original nucleus of what is now the Interpublic Group of Companies, found it had to abandon conventional planning during the worst periods in order to focus on how best to juggle cash resources on a week-to-week, or even day-to-day, basis.Brazil has weathered such storms by maintaining a relative openness to “the commercial imperative.” Communications has remained relatively unfettered by government regulation in Brazil, and Brazilian television has always been strictly commercial. Recently Brazil has encouraged foreign investment by the lowering of prohibitive tariffs and the privatization of many state-run companies.     

Who in Brazil Will Gain from Global Trade Reforms?

The potential impacts of multilateral trade liberalisation on developing countries are the subject of numerous controversies. One particular concern is that Brazil, a major agricultural exporter and a country with one of the world's most unequal income distributions, will reap a substantial share of the potential benefits to developing countries from agricultural trade reform, and that most of those benefits will go to large‐scale commercial farmers rather than to the country's smallholders. This claim is explored via a global general equilibrium model and a national model of Brazil containing multiple agricultural and non‐agricultural households. Brazil is found to account for nearly one‐half of all the benefits to developing countries deriving from global agricultural trade reform. These gains are associated with improvements in the welfare of each group and a lower incidence of poverty. Large‐scale producers gain more than smallholders as they tend to be relatively specialised in export products, but there are important gains to agricultural employees, who are relatively poor, and to urban households, who benefit from the expansion of the agro‐food sector. Overall, there is no discernible impact on income inequality, and no evidence that the gains to commercial farmers occur at the expense of poorer households.     

Country image,product image and consumer purchase intention: Evidence from an emerging economy

In offering fresh insights on the country-of-origin effect literature, this article provides evidence to suggest that cognitive country image (CI) is not necessarily consistent with affective country image. Based on a large scale consumer survey conducted in China, the findings reported provide empirical support for a hypothesized decomposing effect. In particularly, the results demonstrate that cognitive and affective CI have a different impact on the intention to purchase, with the former influencing purchase through product image, and the latter having a direct influence, independent of product image. Such a decomposing effect has important theoretical and managerial implications surrounding the mechanics of country image and the impact on purchase intention which are extracted from this study along with directions for future research.     

Technology from emerging markets: Why serendipity played a role in exports of Brazilian software

Brazilian software exports still do not match a relatively high local prowess in the matter. The negative country of origin image for technology products may only emphasize a tendency to avoid international exposure among entrepreneurs. I suggest that lack of self‐esteem may play an important part in hindering Brazilian competitiveness and I point out to the roots of the negative portrayal of themselves, buying in to the negative image that gives place to the country of origin effect. Much of this interpretation may be relevant to other former colonies and are applicable to other creative industries. I draw on three cases in which Brazilian software companies awaited foreigners to invite them to export and I illustrate that a strong Brazilian reluctance to expose themselves abroad may be at play. I seek to explain the roots of that reluctance in a lack of worldliness as well as in an attitude that may have psychoanalytical foundations grounded in genesis of Brazil and in the way this development affected its institutions and the people's Weltanschauung. The policy implications are significant, as expecting Brazilians technology entrepreneurs to sell technology products at fairs, may be the wrong way to go. Instead, an export policy that allows for building partnerships capable of allowing for mitigating risks, building affective relationships, and better understanding of the other will require rebalancing policies, that is, less participation in fairs and more two‐way internships, policies which are likely to render more palpable results among Brazilians and possibly among other former colonial nations.     

CSR Information Disclosure on the Web: A Context-Based Approach Analysing the Influence of Country of Origin and Industry Sector

Corporate social responsibility (CSR) has become a much-discussed subject in the business world. The Internet has become one of the main tools for CSR information disclosure, allowing companies to publicise more information less expensively and faster than ever before. As a result, corporations are increasingly concerned with communicating ethically and responsibly to the diversity of stakeholders through the web. This paper addresses the main question as whether CSR information disclosure on corporate websites is influenced by country of origin and/or industry sector. Analysing the websites of 127 corporations from emerging countries, such as Brazil, Chile, China, India, Indonesia, Mexico, Thailand and South Africa, it becomes evident that both country of origin and industry sector have a significant influence over CSR information disclosure on the web (CSRIDOW). Based on the data studied, country of origin has a stronger influence over CSRIDOW than industry sector.

消费者对大型超市的商店印象与其忠诚行为关系实证研究

商店印象对消费者购物行为有重要的影响。本文在我们先前对商店印象与顾客忠诚关系研究的基础上,将商店印象与顾客忠诚的构面展开,进一步研究了商店印象的实体、经济、时间与便利性和社会心理构面与顾客认知忠诚、情感忠诚、意向忠诚和行为忠诚之间的关系,并通过在全国收集的803份有效样本,运用结构方程模型对理论模型进行了实证检验,全面揭示了商店印象各构面与四类顾客忠诚之间的关系。