The effects of country-of-origin fit on cross-border brand alliances

2018 ◽  
Vol 30 (5) ◽  
pp. 1259-1276 ◽  
Author(s):  
Jin Kyun Lee ◽  
Byung-Kwan Lee ◽  
Wei-Na Lee

PurposeThe purpose of this paper is to investigate the impact of country-of-origin (COO) fit and consumer product knowledge on consumer brand attitudes in a cross-border strategic brand alliance (SBA).Design/methodology/approachAn experimental study with 207 subjects was conducted using a series of 2 (COO fit: low vs high COO fit) by 3 (product knowledge: low vs moderate vs high knowledge) by 2 (time: pre- vs post-alliance attitudes) mixed factorial design.FindingsThe impact of COO fit on pre- and post-alliance changes in attitude toward the partner brand showed a nonlinear relationship from high-, to moderate-, to low-knowledge consumers. High COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for high- and low-knowledge consumers than for moderate-knowledge consumers. In contrast, low COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for moderate-knowledge consumers than for high- and low-knowledge consumers.Practical implicationsThe effectiveness of cross-border SBAs differs with consumer product knowledge. For high- and low-knowledge consumers, high COO fit information had greater impact than low COO fit information in their product evaluation. However, when targeting moderate-knowledge consumers, providing sufficient product-related attribute information would help them to generate a favorable brand attitude.Originality/valueThis study attempted to identify the complex relationship between COO fit and consumer product knowledge on the consumer decision-making process.

2022 ◽  
Vol 30 (2) ◽  
pp. 1-20
Author(s):  
Ying Bao ◽  
Xusen Cheng ◽  
Alex Zarifis

Product country-of-origin (COO) is now playing a central role in consumers’ purchase behavior. Previous studies have investigated several factors that impact COO. However, little attention has been paid to the impact of COO on consumers’ product evaluation on Chinese products, especially in the cross-border e-commerce context. Using a multi-methods design, this study first unearthed the antecedents of COO image towards Chinese products from the qualitative data in Study 1 by drawing on the legitimacy theory and then develops a contextual model of consumers’ product evaluation and purchase intention, integrating the role of a product with a different level of involvement. Using quantitative survey data from 252 foreign consumers, the study tests the research model in Study 2. The findings provide empirical evidence to support the model and highlight the importance of COO cues on foreign consumers’ purchase intention towards Chinese products. The results also enhance our understanding of consumers’ purchase decision in cross-border e-commerce.


2022 ◽  
Vol 30 (2) ◽  
pp. 0-0

Product country-of-origin (COO) is now playing a central role in consumers’ purchase behavior. Previous studies have investigated several factors that impact COO. However, little attention has been paid to the impact of COO on consumers’ product evaluation on Chinese products, especially in the cross-border e-commerce context. Using a multi-methods design, this study first unearthed the antecedents of COO image towards Chinese products from the qualitative data in Study 1 by drawing on the legitimacy theory and then develops a contextual model of consumers’ product evaluation and purchase intention, integrating the role of a product with a different level of involvement. Using quantitative survey data from 252 foreign consumers, the study tests the research model in Study 2. The findings provide empirical evidence to support the model and highlight the importance of COO cues on foreign consumers’ purchase intention towards Chinese products. The results also enhance our understanding of consumers’ purchase decision in cross-border e-commerce.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiangang Du ◽  
Danhui Li ◽  
Yuxuan Zhao ◽  
Mengya Yang

PurposeThe purpose of this paper is to examine the influence of transparency on consumers' judgment and decision-making.Design/methodology/approachThis study uses an experimental research design in which participants' negative emotions dynamically change driven by group emotional interactions when they are experiencing a group complaint.FindingsThe experimental results show that compared with opaque products, transparent products make consumers rely more on emotions to make judgments and decisions (Experiment 1). It is precise because transparency increases the influence of emotion on consumers' judgment and decision-making that positive emotion makes consumers' evaluation and willingness to pay higher, while negative emotion makes consumers' evaluation and willingness to pay lower (Experiments 2 and 3). Transparency will also affect consumers' subsequent judgment and decision-making methods, so they are more inclined to choose the option with the dominant emotional dimension (Experiment 4).Originality/valuePrevious studies mainly focus on the impact of transparent packaging on consumers and discuss the impact of transparent packaging on consumer product evaluation and consumption quantity. This study proves that product-related transparent elements can also affect consumers' decision-making methods, making them more dependent on emotions to make decisions, enriching the research on the influencing factors of consumer decision-making methods.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Zhang ◽  
Yuran Li ◽  
Mark Frost ◽  
Shiyu Rong ◽  
Rong Jiang ◽  
...  

PurposeThis paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.Design/methodology/approachThe authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.FindingsThe authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.Originality/valuePrevious research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.


2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ing Grace Phang ◽  
Bamini K.P.D. Balakrishnan ◽  
Hiram Ting

Purpose The COVID-19 pandemic took the world by surprise in early 2020. The preventive measures imposed by many countries limited human movement, causing uncertainty and disrupting consumption patterns and consumer decision-making. This study aims to explore consumers’ panic buying (PB) and compulsive buying (CB) as outcomes of the intolerance of uncertainty (IU). The moderating role of sustainable consumption behaviours (SCBs) (e.g. quality of life [QOL], concern for future generation and concern for environmental well-being) were also tested to raise awareness of responsible and mindful consumption amongst the society and business stakeholders. Design/methodology/approach To empirically examine the grocery shopping behaviours of Malaysian consumers during COVID-19, a total of 286 valid grocery consumer survey responses based on a purposive sampling were collected and analysed during the movement control order period between March and July 2020. Findings The findings confirmed the statistically significant impact of IU on both PB and CB and the impact of PB on CB behaviour. Amongst the three SCBs tested, only QOL significantly moderated the relationship between the IU and PB. Originality/value To the best of the authors’ knowledge, this is the first study to construct a framework of consumers’ PB and CB during the pandemic, building upon the stimulus-organism-response model and the concepts of IU and SCB. This study further serves as the pioneering study on the moderating role of SCB in consumer behaviour research in the pandemic context, whereby consumers’ QOL significantly moderates the relationship between their IU and PB. This study has also drawn specific implications for grocery retailers and government agencies for retail and policy planning to promote positive social transformation in consumer buying behaviours during a pandemic or crisis.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Xue ◽  
Gongming Qian ◽  
Zhengming Qian ◽  
Lee Li

PurposeCustomers often trace a product-harm crisis to the deviant firm's capability- or character-relevant issues. This study examines how capability- and character-based stigma associated with product-harm crises influence foreign customers' product preferences (i.e. brand affect and purchase intention) for other firms from the same country of origin.Design/methodology/approachQualitative survey data are used to test hypotheses with a structural equation model.FindingsThe authors find that negative capability judgment significantly affects foreign customers' product preferences for other firms from the same country of origin, whereas negative character judgment does not. However, customers' national animosity and product knowledge moderate the stigma spillover effects. Specifically, national animosity and product knowledge weaken the spillover effects of capability-based stigma but strengthen those of character-based stigma.Research limitations/implicationsFuture research could examine strategies for uninvolved firms to avoid the stigma-by-association effect. Moreover, due to the lack of resources to collect data, this study does not investigate how customers' generalized favorability and familiarity with crisis-stricken firms and uninvolved firms moderate the stigma-by-association effect.Originality/valueThe findings of this study advance our knowledge on product-harm crises and the stigma-by-association effect.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianfu Wang ◽  
Yam B. Limbu ◽  
Xing Fang

PurposeThe coronavirus disease (COVID-19) pandemic unprecedentedly shocks the market. Little is known about the impact of COVID-19 on brand engagement across country-of-origin (COO) and country-of-market (COM). To address the gap, this study examines how the spread of the COVID-19 affects consumer brand engagement on social media for global brands through the mechanisms of the COO and consumer animosity.Design/methodology/approachThe authors collect consumer engagement activity data from Facebook for eight global smartphone brands and match it with the COVID-19 statistics. Ordinary least square (OLS) models are used to estimate the impact on global brands brought by the spread of the COVID-19.FindingsThe results show that consumer brand engagement decreases for all brands in a COM as the number of confirmed COVID-19 new cases increases in the COM. Consumer brand engagement decreases for a brand across all COM as the number of confirmed COVID-19 new cases increases in the brand’s COO. If a brand’s COO is imputed for the pandemic, its consumer brand engagement will receive additional negative impacts across all COM.Originality/valueThis study enriches the COO literature by showing how the spread of a pandemic affects consumer brand engagement via COO and discovers the moderating role of consumer animosity.


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