The mediation of trust in country-of-origin effects across countries

2014 ◽  
Vol 21 (2) ◽  
pp. 150-171 ◽  
Author(s):  
Nadia Jiménez ◽  
Sonia San Martín

Purpose – This paper aims to investigate if trust plays a mediating role on the country-of-origin (COO) brand reputation and consumer animosity effects in determining consumers’ purchase intentions in both emerging and developed markets. Design/methodology/approach – The paper opted for the structure equation modelling methodology to analyse data collected from 476 Spanish and Mexican car owners who evaluate American automobiles. Findings – The results show that in the emerging market economy, the COO's brand reputation influences trust and purchase intention more than in the mature market. Also, the results show that although trust plays an important role in different markets because it mediates the effect of COO's brand reputation on consumers’ purchase intention in both emerging and mature economies, it does not mediate the effect of animosity on purchase intention in the analysed developed economy. Research limitations/implications – The chosen category product presents the shortcoming of being of a hybrid nature regarding their manufacturing origin and research results may not be generalizable since we consider one product of one COO. Practical implications – COO's brand reputation is a key trigger of trust, and can substitute absent regulatory institutional elements, especially in emerging markets. In emerging markets, animosity could play an important role in explaining the rejection of foreign products, but the increase of trust could mitigate its negative effect on purchase intention. Originality/value – This study distinguishes the mediating role of trust between different interrelated COO variables and consumers’ purchase intentions in two different national contexts, and offers evidence that good COO's brand reputation building is crucial for international marketing success.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manish Das ◽  
Victor Saha ◽  
M.S. Balaji

Purpose This study aims to investigate the role of middle-class consumers’ need for uniqueness (CNFU), consumer susceptibility to interpersonal influence (CSII), inspiration and behavioral intentions toward masstige products. Specifically, this study examines the differential effects of CNFU dimensions, the underlying mechanism of consumer inspiration and the moderating role of CSII in the purchase intentions toward masstige products. Design/methodology/approach Two studies were carried out to test the proposed relationships. Study 1 examines the differential effect of CNFU dimensions and the mediating role of consumer inspiration for data collected from Tier 1 cities in India. Study 2 replicated Study 1 findings for the jewelry masstige products and tested the moderating role of CSII for data collected from Tier 2 cities. Structural equation modeling was used to test the proposed hypotheses. Findings The study findings confirm the differential effects of CNFU dimensions on inspiration and its mediating role in masstige products’ purchase intentions. Furthermore, the study found that CSII moderates the effect of CNFU dimensions on inspiration toward masstige (jewelry) purchase intentions. Status does not determine masstige purchase intention. Research limitations/implications The present study was carried out in the emerging market of India. Future studies should replicate the study findings in other emerging markets. Practical implications The study findings have important implications for marketers of masstige brands in developing effective marketing strategies in the emerging markets. Originality/value The study is among the few studies to investigate the differential role of CNFU dimensions and inspiration for masstige brands in an emerging market context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haejoo Han ◽  
Jisu Yi ◽  
Sunghee Jun ◽  
Sungsook Ahn

PurposeIn the context of influencer marketing, this study examines the effects of explicit advertising disclosure on consumers' inference regarding influencers' sincere recommendation intent, and its consequences for consumers' purchase intentions.Design/methodology/approachIn Study 1, participants were randomly assigned to the conditions of explicit advertising disclosure (e.g. #AD, #Sponsored) and subtle advertising disclosure (e.g. #ThankYou), and indicated their inference regarding influencers' recommendation motives and their own purchase intentions. One-way ANOVA analysis reveals the effect of advertising disclosure on consumers' purchase intentions and the PROCESS model indicates the mediating role of consumers' inferences regarding influencers' sincere recommendation intent. In Study 2, we implemented a 2 (explicit vs. subtle advertising disclosure) × 2 (moderate vs. large size of followers) between-subjects design, using a two-way ANOVA analysis. We analyzed the moderated mediation effect via the PROCESS model.FindingsConsumers are less inclined to purchase products when influencers express explicit advertising disclosures, compared to when the advertising disclosures are subtle (Study 1). These negative effects of advertising disclosure can be caused by consumers' inferences regarding influencers' sincere recommendation intent in terms of posting content (Studies 1 and 2). Additionally, the negative effect is particularly prominent when an influencer has a large (vs. moderate) number of followers (Study 2).Originality/valueBy examining (1) the effects of explicit advertising disclosure on consumers' inference regarding influencers' persuasion motives and (2) the role of the influencer's number of followers, this research provides both theoretical and practical insights for understanding how best to implement influencer marketing.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yi Li ◽  
Yangying Peng

PurposeThis research explores the path that social media influencers affect target consumers to purchase a certain brand posted in their contents.Design/methodology/approachUsing a sample of 510 Weibo users in China, the conceptual model is tested by structural equation modeling (SEM) in Lisrel 8.8 statistical software.FindingsThis study examined that influencers' source characteristics stimulate consumers' positive attitudes (image satisfaction and/or advertising trust), in turn affect consumers' purchase intention. The expertise, originality and homophily of influencers positively affect two attitudes of consumers. The attractiveness only positively affects image satisfaction, and the interactivity only positively affects advertising trust. Besides that, this study also verified the mediating role of consumers' self-brand connection between the two attitudes and purchase intentions.Originality/valueBy distinguishing two different attitudes of consumers and incorporating consumers' self-brand connection, we proposed a complete theoretical framework for the overall mechanism of influence marketing based on communication–persuasion matrix.


Author(s):  
Sulait Tumwine ◽  
Samuel Sejjaaka ◽  
Edward Bbaale ◽  
Nixon Kamukama

Purpose The purpose of this paper is to investigate the determinants of interest rate in emerging markets, focusing on banking financial institutions in Uganda. Design/methodology/approach Using the net interest margin model, interest rate was estimated by applying a panel random effects regression method on 24 banks, while controlling for bank-specific factors, industry and macroeconomic indicators. Data were drawn from annual reports provided by Bank of Uganda Depository Corporation survey from 2008 to 2016. Findings The results indicate that liquidity, equity capital, market power and reserve requirement have a positive effect on interest rate. The study further finds that operational efficiency, lending out ratio, concentration, public sector borrowing and private sector credit have a negative effect on interest rate. However, credit risk does not influence interest rate. Research limitations/implications Studied banks are grouped in one panel data set; future studies would focus on the differences in banks and establish how these differences affect interest rate. Future study would also focus on how the determinants of interest rate in Uganda are compared with those of other banks in other emerging market countries. Practical implications Bank managers need to take interest in equity mobilization because it is a reliable and cheaper source of funding bank operations. Banks should emphasize efficient operations to reduce on the cost of doing business. Government should utilize funds borrowed from banks in efficient ways to improve economic growth. The central bank should minimize the use of reserve requirement as a means of controlling money in circulation. Originality/value This is the first paper that uses annual report data from several banks and periods to investigate the determinants of interest rate in an emerging country.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ammar Javed ◽  
Zia Khan

PurposeThis study aims to highlight important marketing strategies within the context of a highly competitive emerging market with few points of difference because of service homogeneity. Drawing upon the social identity and self-expansion theories, this research explores the role of corporate social responsibility (CSR) and discounts and packages offers (DPO) as determinants of purchase intentions. The understudied mediating role of brand love is investigated in the CSR–purchase intentions and DPO–purchase intentions relationships, with relationship age as a moderating variable for the two relationships.Design/methodology/approachData from 359 valid responses from customers of cellular service firms in Pakistan were analyzed using partial least squares-based structural equation modeling.FindingsThe findings show that brand love partially (albeit a weaker relationship) mediates the CSR–purchase intentions relationship. Brand love also partially (albeit a stronger relationship) mediates the DPO–purchase intentions relationship. The moderating role of relationship age is not established.Practical implicationsCellular firms in emerging markets experience high volatility. Therefore, understanding of the volatile behavior alongside devising strategies is of the utmost importance. This research shows that customers continue their business with the firms they love. Interestingly, the non-significance of relationship age as a moderator for both CSR–purchase intentions and DPO–purchase intentions indicates that garnering customers' purchase intentions with respect to relationship age will be very difficult for cellular firms under fierce competition. CSR and DPO should be strategically used to increase brand love to boost purchase intentions.Originality/valueThis study makes two important contributions to the literature of emerging markets. The first contribution of this research is the proposal and validation of brand love as a mediating variable in CSR–purchase intentions and DPO–purchase intentions relationships. Evaluation of the moderating role of relationship age in CSR–purchase intentions and DPO–purchase intentions relationships is the second contribution.


2014 ◽  
Vol 26 (1) ◽  
pp. 43-63 ◽  
Author(s):  
Seyed Shahin Sharifi

Purpose – The purpose of this paper is to study the influence of the trilogy of emotion – cognition, affection, and conation – on future purchase intentions in consumers of products of high involvement. Design/methodology/approach – The author employed two studies on two different products to test the influence of emotion on future purchase intentions in study one and to replicate the results of study one in study two, using structural equation modeling. In study two, brand awareness is regarded as a mediator. Findings – The results indicate that cognition can influence future purchase intentions, and that affection meaningfully influences future purchase intentions. Additionally, the researcher found that the impact of affection on future purchase intention is stronger than that of cognition on future purchase intentions. Moreover, brand awareness meaningfully influenced cognition, affection, and conation directly, and future purchase intentions indirectly. Practical implications – Encouraging conditions in which consumers have good thoughts and feelings about a prior purchase can bolster future purchase intentions, empowering the potent in future purchase for the brand involved. Originality/value – This research validates the impact of emotion – more specifically cognition and affection – on future purchase intentions under mediating role of brand awareness, in a country with growing markets. Hence, it adds to the literature of post-purchase important findings.


Author(s):  
Devlina Chatterjee ◽  
Bahul Dandona ◽  
Aditya Mitra ◽  
Manohar Giri

Purpose The purpose of this paper is to understand Indian tourists’ perceptions of Airbnb compared to other hospitality options, and the factors driving their purchase intentions. Design/methodology/approach An integrated model for purchase intention was conceptualized based on the theory of planned behavior and social exchange theory. Constructs such as trust, authenticity, travel innovativeness, price sensitivity and effort expectancy were included based on a survey of the literature. Structural equation models were built using survey data. Respondent ranking of different criteria for Airbnb vs its competitors were aggregated using Borda count method. Findings Price is the most important criteria across hospitality choices, including Airbnb, except high-end hotels. Facilities, home-like feeling, trust and friendly service were important for Airbnb. Consumer expectations from Airbnb are similar to homestays, mid-range and budget hotels and different from resorts and high-range hotels. In the theory of planned behavior model, trust in Airbnb and perceived authenticity had large significant positive effects on purchase intention, mediated by attitude. Social norms and effort expectancy had direct positive effects on behavioral intentions. Price sensitivity had a direct small negative effect on purchase intention. Overall, fit of the model was within acceptable parameters. Originality/value Despite being an important emerging market, Airbnb in India has not been covered by studies of consumer behavior. This paper fills that research gap. Airbnb’s main competitors are home-stays and mid-range hotels. Building trust, creating authentic experiences and ensuring price competitiveness will drive adoption.


2014 ◽  
Vol 23 (7) ◽  
pp. 491-503 ◽  
Author(s):  
Aybeniz Akdeniz Ar ◽  
Ali Kara

Purpose – The purpose of this study is to explore the country of production (COP) image, trust and quality perceptions of Turkish consumers for well-known global brands that are produced in China. Design/methodology/approach – Using the mall-intercept survey method from the 17 largest cities in Turkey, 3,373 consumers were interviewed about their thoughts on the COP images, trust and quality perceptions of well-known global brands. Findings – Study findings show that the COP had a significant negative effect on brand image, brand trust and perceived quality of the global brands when consumers learned that China was the COP. Product type also influenced the intensity of the negative perceptions. Quality perceptions, image and trust were found to be highly correlated with purchase intentions. Research limitations/implications – Consumers’ levels of involvement with the products used in this study might be different in different countries. Different variables (such as lifestyles and personality) could provide additional explanation for the strength of the relationships identified between the COP information and quality perceptions. Global brands with different brand strength levels could be evaluated differently by the consumers. Practical implications – When a consumer product is manufactured in a country with unfavorable perceptions, well-known or recognized brands are not immune to the negative influences of the COP effect on brand image, quality and purchase intentions. Originality/value – The study used large-scale representative data collected from consumers in the actual shopping environment and examined the influence of the COP on perceived quality and purchase intentions of global brands in an emerging market.


2017 ◽  
Vol 34 (2) ◽  
pp. 254-271 ◽  
Author(s):  
Namhoon Kim ◽  
Eunha Chun ◽  
Eunju Ko

Purpose The purpose of this paper is to analyze how national stereotype, country of origin (COO), and fashion brand’s images influence consumers’ brand evaluations and purchase intentions regarding fashion collections. Korea (Seoul) and overseas (New York and Paris) collections are compared and analyzed. Design/methodology/approach The authors conduct a structural equation modeling and multi-group analysis using data collected from Seoul, New York, and Paris. Findings Consumers make higher brand evaluations and ultimately have stronger purchase intentions toward fashion collections from countries that have stronger COO and fashion brand images. In the context of fashion collections, COO image is greatly influenced by a nation’s political economic and cultural artistic images. In addition, comparing the domestic Seoul fashion collection with New York and Paris collections reveals that a national stereotype images, COO images of fashion collection, and fashion brand’s images cause different brand evaluation and purchase intention. Originality/value The overarching value of the study is that it expands COO research, which has been limited to actual products. Also, the results provide a basic foundation for establishing marketing strategy based on COO image as a way to enhance the development and image of fashion collection.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Li Chen ◽  
Fengxia Zhu ◽  
Murali Mantrala

Purpose This paper aims to systematically investigate the direct and indirect effects of four types of support – peer instrumental support, peer emotional support, platform business support and platform communication support – on seller trade volume in social commerce. It also aims to uncover the path of support-to-sales of the seller from a platform perspective and provides a more complete picture of the social commerce phenomenon. Design/methodology/approach This paper uses multi-source data including primary survey data and secondary data on trade volume to test the hypotheses. PROCESS mediation model is used to analyze the multi-source data set. Findings This study finds that the positive effects of peer instrumental support, platform business support and platform communication support on seller trade volume are fully mediated by seller collaborative information exchange. Also, peer emotional support has a significant negative effect on seller trade volume and collaborative information exchange can serve as a buffer to mitigate the negative effect. Research limitations/implications The authors provide new insights into what types of support are or are not conducive to improving transaction volume of individual sellers and highlight the mediating role of seller information exchange in this value generation process in social commerce. These findings advance current knowledge of how seller interactions increase value in social commerce. The chosen research setting may limit the generalizability of the findings of this study. Practical implications This paper offers valuable implications for social commerce platforms on how to better serve their sellers to achieve high growth. Specifically, the findings suggest that platforms should encourage instrumental support and information exchange among peer sellers. In addition, platforms should expand seller support from a single-focus on sellers’ business to a dual-focus on both sellers’ business and socialization in social commerce. Originality/value This paper fulfills an identified need to study how sellers can better derive value from the social interactions and how social commerce platforms can effectively influence transactions, support sales and serve as a selling platform.


Sign in / Sign up

Export Citation Format

Share Document