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Francis Piron, (2000),"Consumers’ perceptions of the country-of-origin effect on purchasing intentions of (in)conspicuous
products", Journal of Consumer Marketing, Vol. 17 Iss 4 pp. 308-321 http://dx.doi.org/10.1108/07363760010335330
Cheng Lu Wang, Zhen Xiong Chen, (2004),"Consumer ethnocentrism and willingness to buy domestic products in a
developing country setting: testing moderating effects", Journal of Consumer Marketing, Vol. 21 Iss 6 pp. 391-400 http://
dx.doi.org/10.1108/07363760410558663
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University, Logan, Utah, USA. products, therefore, involve two countries: the
Dawn Thorndike Pysarchik is an Associate Professor in country-of-origin (COO) or origin country
the Department of Human Environment and Design, and (OC) and the country-of-manufacture
Associate Dean of International Studies and Programs, (COM). The COO denotes the home country
Michigan State University, East Lansing, Michigan, USA. for a company or the country that consumers
infer from brand name, whereas the COM
Keywords reflects the country where the product is
Retailing, Product management, Brands, manufactured (Han and Terpstra, 1988;
Consumer behaviour, International marketing Nebenzahl et al., 1997; Samiee, 1994).
Multinational production has made the
issue of country image effects more complex,
Abstract
(Brodowsky, 1998) and, thus, studying the
Aims to predict purchase intentions for uni-national and bi- relationship between country-product image
national products by examining the relationships among and purchasing behavior has become more
brand attitude, country-of-manufacture (COM), consumer
important (Nebenzahl et al., 1997). Recently,
ethnocentrism, product evaluation, and product attitude.
Nebenzahl et al. (1997), who recognized the
The sample included 281 students from three Midwestern
lack of theory development in country-
universities in the USA. A model incorporating the
product image research, proposed a causal
hypothesized relationships among the variables was tested
model explaining the relationships among
separately for the three different product categories of
consumer characteristics, country image
cameras, television sets, and sweaters. Data were analyzed
effects such as brand image and COM, and
by a maximum-likelihood estimation procedure using
purchase decisions. These variables have been
LISREL VII. The proposed model showed an acceptable fit
examined extensively in the past, but most
to the data for all three product categories. Findings
studies are descriptive (Nebenzahl et al.,
indicated that favorable attitudes toward a product
significantly predicted intention to purchase the product.
1997). Incorporating a number of variables
The relationships between ethnocentrism, brand attitude,
within one causal model facilitates
COM, and product evaluation were product-specific. understanding of the predictive relationships
among the variables as well as the relative and
disparate effects of the variables. Thus, the
Electronic access
present study used the Nebenzahl, Jaffe, and
The current issue and full text archive of this journal is Lampert's model of product image as a
available at conceptual framework to explore the
http://www.emerald-library.com predictive linkages between consumer
ethnocentrism (consumer individual
characteristic variable), brand attitude, COM
International Journal of Retail & Distribution Management
Volume 28 . Number 6 . 2000 . pp. 280±291 cues, product evaluation, product attitude,
# MCB University Press . ISSN 0959-0552 and purchase intention.
280
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
Why certain consumers are more likely to product quality (Han, 1989; Li and Dant,
consider COO or COM cues is a relatively 1997; Han and Terpstra, 1988; Thakor and
new area of country-product image research Katsanis, 1997).
(Brodowsky, 1998). Researchers have Most past studies of COM effects on
identified consumer characteristics such as consumer evaluations have dealt exclusively
ethnocentrism (Brodowsky, 1998; Marcoux et with uni-national products and merely
al., 1997; Shimp and Sharma, 1987), reported the existence of differences in
consumer patriotism (Han, 1988), product perceived quality between domestic and
familiarity (Johansson et al., 1985; Johansson foreign brands (Han and Terpstra, 1988).
and Nebenzahl, 1986) and consumer need for Only recently, researchers have begun to
cognition (Zhang, 1997) as predictor or examine the relative effect of COM and brand
moderating variables that may explain the name on consumer evaluations of bi-national
salience of COO and COM cues. Among products (Ahmed and d'Astous, 1996;
these, consumer ethnocentrism is probably the Ahmed et al., 1997; Chao, 1989; d'Astous
most widely studied consumer characteristic and Ahmed, 1992; Haubl, 1996; Han and
variable in the country-product image Terpstra, 1988; Okechuku, 1994; Tse and
literature (Brodowsky, 1998; Durvasula et al., Gorn, 1993). Some of these studies have
1997; Han, 1988; Marcoux et al., 1997; found brand name to be a less important cue
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Sharma et al., 1995; Shimp and Sharma, than the COM (Ahmed and d'Astous, 1996;
1987) and, thus, chosen in this study. Han and Terpstra, 1988; Tse and Gorn,
Consumers evaluate products by analyzing 1993). In other studies, brand name appeared
extrinsic and intrinsic cues. Extrinsic cues are to be a more important predictor of perceived
those that are not a part of the physical quality than the COM cue and price
product, while intrinsic cues are those that are information (Ahmed and d'Astous, 1993;
integral to the product (Thakor and Katsanis, Chao, 1989; d'Astous and Ahmed, 1992).
1997). Brand name and COM cues are two Okechuku (1994), however, reported that
extrinsic cues that consumers often rely upon brand name and COM cues were about
to evaluate a product especially when they are equally important to consumers when
unable to detect its intrinsic qualities or when forming judgments about products.
intrinsic cues are not available (Ahmed and Nebenzahl and Jaffe (1996) found that
d'Astous, 1996; Han, 1989). Consumers consumers' impressions of a brand name
form impressions of a brand name based on remained the same whether or not COM
their knowledge of products associated with information is provided, suggesting that
the brand, and such impressions are brand image is not affected by the presence of
determined not only by physical COM cues. In the present study, we
characteristics of the product, but also by attempted to investigate the relative
other factors such as packaging, advertising, importance of brand attitude (or consumers'
price, and stereotype of the consumer overall impression of selected brands) and
(Ahmed and d'Astous, 1996). On the other COM cues as predictors of consumer
hand, a favorable or unfavorable COM evaluations and intention to buy both uni-
reflects consumers' overall perceptions of national and bi-national products.
products made in the country or their Some studies have suggested that the
stereotypes associated with the country influence of brand and COM cues in product
(Nebenzahl et al., 1997). Although some evaluations is product-specific rather than
studies found insignificant effects of COM on country-specific (d'Astous and Ahmed, 1992;
consumers' perceptions of products (McLean Etzel and Walker, 1974; Hafhill, 1980; Siu
et al., 1986; Sternquist and Davis, 1986), it and Chan, 1997). d'Astous and Ahmed
has been generally agreed that most products (1992) observed that the COM cue and brand
originating in foreign countries are subject to name were relatively unimportant for T-shirts
COM effects (Brodowsky, 1998; Dickerson, while consumers relied heavily upon these
1982; Han and Terpstra, 1988; Johannson cues for more complex products such as VCRs
and Nebenzahl, 1986; Shim et al., 1989; Siu and automobiles. In this study, therefore, we
and Chan, 1997; Thorelli et al., 1988; Wang were interested to determine if the
and Lamb, 1983). In addition, the COM has relationships among brand attitude, COM,
been known to affect consumers' evaluations product evaluations, and other variables of
of product-specific attributes as well as overall interest vary across product categories.
281
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
purchasing foreign products (Shimp and evaluations of the quality of both uni-national
Sharma, 1987). It provides consumers with and bi-national products. Accordingly, the
feelings of belonging and guidelines of following hypothesis was generated:
purchase behavior acceptable to an in-group. H2: Overall brand attitude will positively
Ethnocentrism may account partially for affect product evaluation for both uni-
different evaluations of foreign and domestic national and bi-national products.
products (Netemeyer et al., 1991). According
to this view, highly ethnocentric consumers Country of manufacture (COM)
may think that the purchase of imported Numerous studies (Dickerson, 1982; Han
products is bad because it injures the domestic and Terpstra, 1988; Shim et al., 1989;
economy, causes unemployment, and is Thorelli et al., 1988; Wang and Lamb, 1983)
unpatriotic (Shimp and Sharma, 1987). have been conducted in an effort to determine
Therefore, they may devalue the quality of whether the COM of a product is used by
foreign products. In contrast, nonethnocentric consumers as an information cue in purchase
consumers evaluate imports more objectively decisions. Most of the studies suggested that
regardless of national origin (McIntyre and COM is an important determinant in a
Meric, 1994). Shimp and Sharma (1987) consumer's perception of a product. For
developed the consumer-ethnocentric example, Dickerson (1982) found that
tendency scale (CETSCALE), an consumers perceived domestic apparel to be
instrument to measure consumers' of higher quality than imported apparel.
ethnocentrism. Similarly, Shim et al. (1989) found that
Brodowsky (1998) found empirical support college students held more favorable attitudes
for the presence of positive biases toward toward domestic apparel.
domestic products and negative biases against Although consumers tend to evaluate their
imports among highly ethnocentric US own country's products more favorably, there
consumers. Also, Marcoux et al. (1997) found is also a tendency for consumers to rate
that Polish consumers with a low interest in products from industrialized countries as being
patriotic consumption showed a preference superior to those from developing countries
for products made in Western countries. (Thakor and Katsanis, 1997; Wang and
Therefore, because the study was conducted Lamb, 1983). For example, Howard (1989)
in the United States, the first hypothesis to be found American consumers to rate Japanese
tested was: products as being of significantly superior
H1: Consumer ethnocentrism will quality than that of domestic products. Wang
negatively affect the evaluation of and Lamb (1983) also reported that
imported brands (e.g. Nikon and Gold respondents were more willing to purchase
Star), but will not affect the evaluation products manufactured in countries which
of domestic brands (e.g. Polo). were economically developed and democratic.
282
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
This suggests negative stereotyping of less reactions to products and their acquisition or
developed countries of origin. use of the products. Thus, intention has been
Several studies (Johansson and Nebenzahl, used in numerous studies as an alternative
1986; Han and Terpstra, 1988; Tse and Lee, measure to purchase behavior. The final
1993; Cordell, 1992) have examined brand- hypothesis to be tested, therefore, is:
COM interaction effects in relation to H5: Consumers' product attitudes will
consumer evaluation of bi-national products. positively affect their purchase
Johansson and Nebenzahl (1986) argued that intentions.
COM effects decrease for brands with strong
images or a known brand name. In other
words, the COM effect on product Methodology
evaluations is greater for unfamiliar brand
names than brands with familiar names. Tse Research design
and Lee (1993) also observed that a strong This study used a cross-sectional
global brand such as Sony could override a experimental design to investigate consumers'
negative COM. Thus, the third hypothesis purchase intentions of three branded
examined in this study is: products (camera, TV, sweater) by examining
H3: The country-of-manufacture (COM) consumers' brand attitudes, ethnocentrism,
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will not significantly affect product product evaluation, product attitudes, and
evaluation for a well-known brand name COM. Previous research indicated that there
product (e.g. Nikon and Polo) but will was little difference in the estimation of
affect the product evaluation for a less country-of-origin effects when tangible
familiar brand name product (e.g. Gold product stimuli versus intangible product
Star). When products carry less familiar descriptions were used (Liefeld, 1993). This
brands (e.g. Gold Star), consumers will study was designed, therefore, using
evaluate products manufactured in intangible product descriptions. Respondents
developing countries (Malaysia) less were provided with a written survey
favorably than products manufactured instrument that described different
in the country of design (Korea). hypothetical purchase situations associated
with each of the assigned products. The
Product attitude instrument used in the study was adapted
Product attitude is generally defined as a from previously developed instruments
predisposition to respond to a particular (Fishbein and Ajzen, 1975; Lee, 1990; Shimp
product in a favorable or unfavorable manner and Sharma, 1987; Ulgado and Lee, 1993).
(Kim, 1995). Fishbein's attitude model Subjects were asked to imagine that they
proposes that a consumer's attitude toward a were visiting a store to compare various
product is a function of consumer evaluations brands, features, and prices of two assigned
of the attributes possessed by the product. products. They were provided with written
Therefore, we predicted that: information about the two products, and then
H4: Consumers' evaluations of product asked to respond to questions about each
attributes will positively affect their product using a self-report written survey
overall product attitudes for both uni- instrument. The products described were
national and bi-national products. identical in each questionnaire except for the
COM, which was manipulated as described
Purchase intention below. No special attention was drawn to the
The consumer's intention to purchase a COM; it simply was listed as one of several
product was used as the ultimate dependent product attributes for each of the products.
variable in this study. According to Fishbein's Criteria for product and brand selection
theory of reasoned action (Fishbein and Ajzen, were adopted from previous studies
1975), consumers' purchase intention serves (Crawford and Lumpkin, 1993; Han and
as the mediator between their attitude toward Terpstra, 1988; Liefeld, 1993; Ulgado and
a product and their actual purchase behavior. Lee, 1993). These included:
By noticing a high correlation (r = 0.95) . that items and brands should be
between purchase intention and purchase frequently bi-national; and
probability, Gruber (1971) suggests that . the average consumer should be likely to
intention provides a link between consumers' be familiar with them.
283
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
(from the USA) for the sweater. Two COMs their previous experiences with the brand.
were selected for each product brand; one Respondents' prior impression of each brand,
being the home country of the manufacturing therefore, was measured by responding to
company (uni-national and high match) and separate questions about each product brand:
the second being a lesser-developed country ``We are interested in your general impression
(bi-national and low match). The selected of Nikon cameras/Gold Star TVs/Ralph
COMs for the Nikon camera were Japan (uni- Lauren (Polo) sweaters'', using a five-point
national) and China (bi-national), for the Likert scale (1 = very bad to 5 = very good)
Gold Star TV were Korea (uni-national) and (Ulgado and Lee, 1993).
Malaysia (bi-national), and for the Polo Consumer ethnocentrism. Shimp and
sweater were the USA (uni-national) and Sharma's (1987) consumer-ethnocentric
Mexico (bi-national). tendency scale (CETSCALE) was used to
The self-report survey instrument, measure consumer ethnocentrism. The
containing all three products (camera, TV and CETSCALE consists of 17 items (see
sweater), was pretested to assess question Table I). Respondents were asked to indicate
comprehension and clarity, and instrument their agreement with each of the
administration. Pretest respondents indicated 17 statements, ranging from 1= strongly
that responding to questions about three disagree to 5= strongly agree. Higher scores
products made the instrument too long. represented stronger ethnocentrism.
Therefore, the final questionnaire included Cronbach's alpha coefficient of reliability was
hypothetical buying situations and questions 0.95.
for only two of the three brand products; the Product evaluation. To evaluate the product
Nikon camera and either the Ralph Lauren attributes, subjects were presented with
(Polo) sweater or the Gold Star TV. This hypothetical buying scenarios for each of the
necessitated the creation of four assigned two products, and then asked
questionnaires, each containing two of the questions about each product separately.
three products, with the COM of each of the They indicated their perceptions of the
two products (one uni-national and one bi- presence of relevant intrinsic and extrinsic
national) being the only manipulation; all other attributes for each product (eight attributes
product attributes for the two assigned for the Nikon camera, eight for the Gold Star
products were identical. Subjects were TV, and six for the Polo sweater). Using a
randomly assigned to one of the four five-point Likert scale (1 = very unlikely to
treatments, which resulted in between-subject 5 = very likely), subjects answered individual
measures: questionnaire #1, a Nikon camera questions about each attribute via the
made in Japan (uni-national) and a Gold Star following question: ``How likely is it that this
TV made in Malaysia (bi-national); Nikon camera/Gold Star TV/Ralph Lauren
questionnaire #2, a Nikon camera made in Polo sweater (described above) has the
Japan (uni-national) and a Polo sweater made following characteristics'': (attributes were
284
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
16. We should buy from foreign countries only those products that we cannot obtain within our own country
17. American consumers who purchase products made in other countries are responsible for putting their fellow
Americans out of work
listed for each product) (Lee, 1990; Ulgado Table II Factor analysis of product evaluation (sweaters)
and Lee, 1993). Factor
Data reduction was accomplished by Factor title and items loadings Alpha
conducting separate factor analyses for each
Sweater prestige
of the three sets of product attributes. Factor
Fashionable design 0.82
analysis results for cameras generated a single
Expensive price 0.81
factor that accounted for 43 percent of the
Prestigious brand name 0.64
total variance. The factor included items such
Desirable colors 0.55
as ``of good quality'', ``takes a sharp picture'',
0.79
``easy to use and operate'', ``manufactured
using high technology'', ``prestigious brand Sweater function
name'', ``expensive price'', and ``easily Easy care 0.83
accessible authorized service centers'' Desirable fiber content 0.80
(eigenvalue = 3.00) ( = 0.76). The factor Comfort 0.65
was named ``camera quality''. 0.82
Factor analysis of product attributes for
Sweater quality
TVs also resulted in a single factor, explaining
Manufacturered using
54 percent of the total variance. The factor
high technology 0.81
included items such as ``of good quality'',
Of good quality 0.79
``manufactured using high technology'',
0.53
``prestigious brand name'', ``expensive price'',
``easily accessible authorized service centers'',
Product attitudes. After subjects read the
``a sharp picture'', and ``quality hi-fi stereo
hypothetical product scenario and responded
sound system'' (eigenvalue = 3.75) ( =
to product evaluation questions for each of
0.85). The factor was labeled ``TV quality''.
the two assigned products, they were asked
Finally, factor analysis of product
about their overall attitudes toward each of
evaluation items for sweaters resulted in three
the products. Product attitudes were assessed
factors:
by the item, ``After seeing the product
(1) sweater prestige;
described above (Nikon camera/Gold Star
(2) sweater function; and
TV/Ralph Lauren Polo sweater), my general
(3) sweater quality (see Table II).
impression of the product would be good'' (1
The factors accounted for 68 percent of the = strongly disagree to 5 = strongly agree)
total variance. (Ulgado and Lee, 1993).
285
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
(2 = 17.39, df = 7, p = 0.015), indicating The last two hypotheses predicted the positive
more satisfactory fit of the model for TVs. relationships between product evaluation,
The GFI, AGFI, and RMS for the TVs model product attitude, and purchase intention.
were 0.96, 0.89, and 0.07, respectively. The Respondents' evaluations of the camera
chi-square statistic for the model for sweaters quality strongly affected their attitude toward
was 21.75 (df = 9, p = 0.010), and the GFI, the camera (21 = 0.20, t = 3.42), which in
AGFI, and RMS were 0.96, 0.86, and 0.07, turn predicted their intention to purchase it
respectively. ( 32 = 0.37, t = 6.62).
Figure 2 presents parameter estimates of
Tests of hypotheses the proposed model for TVs. Four of the five
As shown in Figure 1, four of the five hypothesized relationships were confirmed.
hypothesized relationships were confirmed Ethnocentrism had no direct impact on
when the proposed model was tested for respondents' evaluation of the quality of a
cameras. Surprisingly, ethnocentrism had a Gold Star TV (
11 = ±0.03, t = ±0.34),
direct positive causal influence on Americans' providing no support for the first hypothesis.
evaluations of the quality of the assigned As expected by the second and third
hypotheses, respondents' evaluations of the
Nikon camera (
11 = 0.19, t = 3.23).
quality of a Gold Star TV was positively
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287
Predicting purchase intentions for uni-national and bi-national products International Journal of Retail & Distribution Management
Soyoung Kim and Dawn Thorndike Pysarchik Volume 28 . Number 6 . 2000 . 280±291
consumer samples has been debated. Basil, M.D. (1996), ``The use of student samples in
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