How country of origin influences Chinese consumers' evaluation of imported milk?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yan Zhang ◽  
Shaosheng Jin ◽  
Yu Yvette Zhang ◽  
Xiaohua Yu

PurposeThe purpose of this study is to decompose the effects of country-of-origin labeling (COOL) into multiple dimensions—macrolevel image, related to the country image, and microlevel image, related to dairy industry/product attributes—and investigate how each dimension affects Chinese consumers' evaluation of imported milk.Design/methodology/approachThis study adopted the Becker–DeGroot–Marschak (BDM) auction mechanism to elicit consumers' willingness to pay (WTP) for milk from different countries (New Zealand, Australia, Germany, France and China). The experiment was conducted with 348 shoppers at supermarkets in three major cities of China (Hangzhou, Wuhan and Shijiazhuang). The study subject was ultrahigh-temperature processing (UHT) milk (200 mL Tetra Pak aseptic brick package).FindingsThe results show that Chinese consumers are willing to pay a premium for UHT milk from New Zealand, Australia, Germany and France compared to domestic milk, and the premiums are 59.4, 58.9, 57.9, and 52.9% respectively. Both microlevel and macrolevel images exert a substantial influence on consumers' WTP, and the microlevel image has a greater impact on consumers' evaluation of milk than the macrolevel image. Particularly, the macropolitical, microtechnology/quality and microdesign/package dimensions have a positive influence on WTP for milk.Originality/valueThis study contributes to the existing literature in introducing the country-of-origin image (COI) construct with different dimensions to get in-depth knowledge about the country-of-origin (COO) effect in food or agricultural economics.

2020 ◽  
Vol 23 (1) ◽  
pp. 1-20
Author(s):  
Ruoshui Jiao ◽  
Jack Wei

Purpose One of the greatest challenges that global brands face as they expand into new markets and segments is overcoming social and cultural barriers that prevent them from being accepted by consumers. By drawing on theories of Mead’s prefigurative cultures, reverse socialization and symbolic interactionism, this paper aims to investigate the process of reverse socialization, the antecedents and its impact on parents’ attitude toward the reverse socialized brand. Design/methodology/approach Using in-depth interviewing method, data were collected from 20 Chinese consumers by capturing the accounts of both parents and their children involved in reverse socialization. The interpretive content analysis was used to study the data. Findings Reverse socialization exerts positive influence on brand attitude and facilitates parents’ adoption of the socialized brand. The brand has acquired additional symbolic meanings for Chinese consumers, which in turn enhances self-brand connections among them. Practical implications Managerial implications include strategies for cross-cultural marketers to maximize the acceptance of brands by elderly consumers through reverse socialization and efficiently expand the brands’ market into more segments. Originality/value As the first research of its kind (to the authors’ knowledge), the findings fill a gap in the marketing literature by demonstrating adult children’s influence on parents through reverse socialization.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Byoungho Ellie Jin ◽  
Heesoon Yang ◽  
Naeun Lauren Kim

PurposeBuilt on the prototype and cue theories, the purpose of this study is to understand how a country's prototypical brand, a corporate brand that most consumers associate with a country (e.g. Samsung), contributes to forming two dimensions of country image – overall country image (i.e. macro country image) and product-specific country image (i.e. micro country image) – and how country image impacts the product quality evaluations of Korean cosmetics, along with the moderating effect of national culture.Design/methodology/approachData were collected from 491 US and Chinese consumers ages 20 and older and analyzed using structural equation modeling.FindingsThe findings confirmed the positive influence of prototypical brand image on macro and micro country image. Macro country image also had a positive effect on micro country image. However, only micro country image yielded a positive influence on the quality evaluations of Korean cosmetics. Analyses of the moderating effect of national culture showed that the positive influence of prototypical brand image on macro and micro country image was found to be stronger in China than in the US.Originality/valueThese findings provided new theoretical perspectives for country image studies, and practical insights for companies and governments, especially those in countries whose country image is less distinctive, to help develop effective marketing strategies.


2018 ◽  
Vol 8 (2) ◽  
pp. 256-269 ◽  
Author(s):  
Pei Xu ◽  
Hang Su ◽  
Todd Lone

Purpose China’s expanded rice imports offer a profitable business opportunity for both domestic and international grain marketers. The purpose of this paper is to analyze the impact of select variables on Chinese consumers’ rice choices, specifically focusing on country-of-origin, price, organic, brand, freshness, and taste. The study concludes with suggestions for domestic and international rice marketers to help them develop more efficient rice marketing plans. Design/methodology/approach This study developed a conditional logit model to analyze survey data gathered from Chongqing and Chengdu, two of China’s largest rice consumption cities. Findings Chinese consumers are price sensitive in their rice choices. Country-of-origin is the most imperative factor affecting rice selection for lower food expense consumers but branded rice attracts the attention of higher food expense consumers. Furthermore, these higher food expense consumers are willing to pay a small premium of $0.22 for a pound of organic rice. Research limitations/implications A general trend in demand for organic rice from higher food expense consumers was identified, and this trend predicts a profitable market for organic rice sellers. However, these research findings are geographically limited and may only represent a consumption trend from the two sampled cities rather than all of China. Originality/value The study concludes with meaningful recommendations to rice marketers to aid in developing profitable market entrance strategies to China.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mengnan Qu ◽  
Sara Quach ◽  
Park Thaichon ◽  
Lorelle Frazer ◽  
Meredith Lawley ◽  
...  

PurposeThis study aims to examine the effect of country of origin (COO) on customers' value expectation and willingness to pay by employing signalling theory and cue utilisation.Design/methodology/approachThe data were collected from 386 customers via an online survey in the context of Australian food retail franchise stores in China.FindingsThe findings indicate that COO origin is an important determinant of customer expectations including service quality, social value, emotional value, monetary price, behavioural price and reputation. Furthermore, the only social value was a significant predictor of willingness to pay. Although the direct effect of COO on willingness to purchase was not significant, the COO had a significant indirect effect on willingness to pay via social value. Finally, the COO has a stronger effect on monetary price expectation among customers who were aware of the country brands than those who were unaware.Originality/valueThe study extends the body of knowledge related to the effect of COO during the pre-purchase process and provides important implications for retailers who are looking to enter an overseas market such as China.


2017 ◽  
Vol 34 (2) ◽  
pp. 293-310 ◽  
Author(s):  
Kashef A. Majid

Purpose The purpose of this paper is to explore how a positive country-of-origin image will impact consumer perceptions for a high-risk product when the price is unexpectedly low. Design/methodology/approach An experimental approach was used with consumers from the USA and India. Consumers were divided into groups and given two scenarios that involved purchasing medicine that may have been counterfeit. In one scenario manufacturing took place in India, the other in Switzerland. They were asked to state the probability that certain goods could be counterfeit if they originated from the stated country and then make choices based on those perceived probabilities. An analysis of variance was conducted to test for differences between groups. Findings The authors found that in both samples consumers attached greater probabilities toward low-priced medicines if they originated from Switzerland vs India. Conversely, the higher priced medicines were more likely to be counterfeit if they originated from India vs Switzerland. When given a choice scenario consumers chose more versions of the cheaper products from India than from Switzerland. Originality/value When country-of-origin is salient then it is believed that a positive country-of-origin image will benefit products that are produced from that country. Consumers expect that more expensive products come from a country with a positive country-of-origin image. The results demonstrate that when there is a conflict between expectations of the country and the price of the product the outcome is lowered perceptions and consumption of the product. This holds true for consumers from a high-cost economy (USA) and consumers from a low-cost economy (India). The authors add to the literature on country-of-origin by demonstrating that a positive image can be a liability when consumers are wary of purchasing a high-risk product.


2006 ◽  
Vol 108 (5) ◽  
pp. 396-412 ◽  
Author(s):  
Pierre Balestrini ◽  
Paul Gamble

PurposeThe paper seeks to examine Chinese consumers' wine‐purchasing behaviour and, more especially, the importance of country of origin (COO) effects in the evaluation and assessment of wine quality and as it relates to decision making for wine purchases.Design/methodology/approachThe data for this study were collected in 2004 through an interviewer‐administered, structured questionnaire targeted at randomly selected wine buyers in the ChangNing district of Shanghai (China). Chinese consumers tend to purchase wine primarily for sensorial reasons, consuming it on social occasions. Wine has never acquired the connotations of being merely a thirst‐quenching drink as it did in some European countries. They are also attracted to wine for its health benefits.FindingsIt was found that Chinese consumers are more likely to use extrinsic cues than intrinsic cues to evaluate wine quality. Thus, COO information is a significantly more important cue than price for Chinese consumers as a quality cue. However, there appears to be no significant difference in the importance of COO and brand in this regard. Wine is a complex product – small differences in any one of a huge range of variables, from the weather, through the grape, the production method, the storage and even the bottling can affect quality. As might be expected in a market that is relatively under‐developed and which has a smaller experience of wine drinking than some other parts of the world, Chinese consumers pay much more attention to COO when they purchase wine for special occasions, where their choice is exposed to the judgment of others. By contrast, when purchasing wine for their own private consumption, COO assumes a lesser importance.Originality/valueThis research can significantly help wine marketers to develop more effective positioning strategies in China. It will also help in the development of pricing and promotional decisions.


2018 ◽  
Vol 35 (5) ◽  
pp. 710-732 ◽  
Author(s):  
Yipeng Liu ◽  
Christina Öberg ◽  
Shlomo Yedidia Tarba ◽  
Yijun Xing

Purpose The purpose of this paper is to focus on emerging market companies that internationalize into advanced economies by means of acquisitions and to investigate brand management during post-acquisition integration from a multi-level perspective and to identify how a brand management strategy can be constructed. It takes into account the influences of country-of-origin image, corporate brand and brand portfolio to obtain a granular view of post-acquisition brand management. Design/methodology/approach A multiple case study approach was adopted. By using case studies and storytelling qualitative research methods, the empirical setting was related to the acquisitions undertaken by Chinese companies in Germany. Findings The authors identified three mechanisms for brand management in the post-acquisition integration of emerging market companies – namely, transferring, dynamically redeploying and categorizing – that underpin the interconnection and combined influence of country-of-origin image at the national level, corporate brand at the organizational level and brand portfolio at the product level. Practical implications Brand has been viewed as a strategic asset in Chinese cross-border mergers and acquisitions (M&As). Brand management is a dynamic process that involves learning and interaction between the acquirer and target. The research offers a practical guideline for both acquirers and targets in managing brand in the context of acquisitions undertaken by emerging market companies in advanced economies. Originality/value The findings provide important insights into the brand management strategies adopted in Chinese cross-border M&As in particular, and emerging market companies venturing into advanced economies in general. The interlinking of country, company and product levels introduces new ideas to the brand literature related to acquisitions, and the setting of Chinese companies acquiring German ones constitutes an important contribution to the understanding of the different ways in which companies from emerging economies may pursue branding strategies in the context of cross-border M&As.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan A. García ◽  
Belén Ruiz

PurposeThe objective of this paper is to analyse the elements that influence Spain's reputation among Chinese consumers, and to evaluate to what extent this country's reputation has an impact on their perceived quality of Spanish olive oil (SOO) and their intentions to purchase and recommend SOO.Design/methodology/approachThis study was carried out by surveying 399 potential olive oil consumers in China (256 of whom were familiar with olive oil and 143 of whom had no previous familiarity with the product, although they stated their intentions to consume it). The proposed hypotheses were tested using covariance-based structural equation modelling (CB-SEM).FindingsThe results show that: (1) Spain's reputation among Chinese consumers can be principally explained by its appealing environment and advanced economy; (2) reputation does not have a direct impact on intentions to purchase and recommend SOO (summary construct effect), but rather has an indirect impact thanks to the perceived quality of SOO (halo effect), and (3) familiarity with olive oil moderates these relationships.Originality/valueNo previous study has analysed this question for this food product category (olive oil), country of origin (Spain) and target market (China). This study, therefore, provides new empirical evidence regarding the formation process of Spain's reputation among Chinese olive oil consumers and the effect of the country of origin on the Chinese olive oil market. These results provide countries' policymakers with criteria for competitive country reputation management.


2010 ◽  
Vol 14 (1) ◽  
pp. 180-194 ◽  
Author(s):  
Byoungho Jin ◽  
Jin Yong Park ◽  
Jay Sang Ryu

PurposeUS apparel firms have been relatively slow exploring Chinese and Indian apparel markets, despite the countries' tremendous growth potentials. To help US apparel firms successfully enter these promising markets, this study aims to compare evaluative attributes that Chinese and Indian consumers utilize when purchasing denim jeans.Design/methodology/approachData were collected in Shanghai, China and Bangalore, India.FindingsThe results of the study confirmed that Chinese and Indian consumers ranked attributes differently. Chinese consumers placed the highest importance on price, followed by fitting, brand country of origin, quality, and design, whereas Indian consumers placed importance on fitting, brand country of origin, design, price, and quality, in descending order.Research limitations/implicationsCaution needs to be exercised in generalizing the findings since the data for this study were collected from one city in each country. The study tested the idea that the importance of attributes would be different between Chinese and Indian consumers as their cultures and retail development stages differ. This idea was supported in conjoint analysis.Practical implicationsThe findings indicate that a regional approach, assuming that all Asian markets are the same, is inappropriate. Thus, US apparel firms need to pay careful attention to differences in each Asian market.Originality/valueChina and India have been compared frequently in various ways: growth potential, market size, and population. Surprisingly, however, no study has attempted to compare Chinese and Indian consumers' evaluative criteria for apparel products. This is the first empirical study to show the differences between Chinese and Indian consumers in evaluating apparel products.


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