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Research on Country-of-origin Effects and Consumer Ethnocentrism

   

Added on  2020-05-16

29 Pages7105 Words52 Views
Running head: LITERATURE REVIEWMarketingName of the Author:Name of the University:Author’s Note:

1LITERATURE REVIEWTable of Contents1.0 Introduction................................................................................................................................31.1 Aim........................................................................................................................................31.2 Research Question.................................................................................................................31.3 Research Objective................................................................................................................32.0 Concept of Country of Origin....................................................................................................43.0 Concept of Consumer Ethnocentrism........................................................................................54.0 Concept of Brand Attitude and Purchase Intension...................................................................65.0 Foreign Product Knowledge and Brand Attitude......................................................................76.0 Face Saving and Group Conformity and Consumer Purchasing Intension...............................87.0 Perceived Product Quality and Product Attitude.......................................................................88.0 Engel, Kollet, Blackwell (EKB) Model of Consumer Purchasing Intension............................99.0 Motivation-Need Theory of Consumer Purchasing Intension.................................................1010.0 Impact of Country of Origin on Brand Attitude and Purchasing Intension...........................1211.0 Impact of Consumer Ethnocentrism on Brand Attitude and Purchasing Intension...............1312.0 Empirical Evidence................................................................................................................1513.0 Ways to Overcome Country of Origin and Consumer Ethnocentrism Challenge (250).......1613.1 Overcome Country of Origin Challenge............................................................................1613.1.1 Government Involvement...........................................................................................1613.1.2 Advertisement.............................................................................................................17

2LITERATURE REVIEW13.2 Overcome Consumer Ethnocentrism Challenge................................................................1713.2.1 Creating Brand Awareness and Reputation................................................................1713.2.2 High Quality and Communicate Achievement...........................................................1813.2.3 Using Media and Outreach.........................................................................................1814.0 Conceptual Framework..........................................................................................................1915.0 Gap of the Literature..............................................................................................................20Reference List................................................................................................................................21

3LITERATURE REVIEW1.0 IntroductionGlobalization has created huge scope for marketers to develop and expand theirbusinesses across borders. However, it becomes subjective when individual consumers areconsidered whether any category of product will be accepted by any class of people. In order toanalyze the consumer buying pattern, two aspects will be discussed in this literature review,which are country-of-origin (COO) and consumer ethnocentrism.1.1 AimThe aim of the research is to analyze the impact of country-of-origin effects and consumerethnocentrism on brand attitude and purchase intention.1.2 Research QuestionWhat is country-of-origin effect and its impact on consumer purchase decision?What is consumer ethnocentrism effect and its impact on brand attitude and purchaseintention?What are the possible solutions for addressing country-of-origin effect and consumerethnocentrism effect?1.3 Research ObjectiveTo identify the country-of-origin effect and its impact on consumer purchase decisionTo identify consumer ethnocentrism effect and its impact on brand attitude and purchaseintentionTo recommend possible solutions for addressing country-of-origin effect and consumerethnocentrism effect

4LITERATURE REVIEW2.0 Concept of Country of OriginCountry of Origin is a kind of nationality bias, which is actually psychological effect onthe purchasing intension of the customer. In such effect, the attitude, perception and buyingdecision of the consumer are actually influenced by the country of origin leveling of theproducts. According to Andéhn, Nordin and Nilsson (2016), Country of Origin (COO) Effectdefines the practice of marketers and consumers towards associating the brand with countriesand making the purchasing decision based on the country of origin of the products. As per thisconcept, the products of the countries are usually purchased and discarded based on the valueassociated with the countries. Several previous studies have demonstrated the way COO hasaffected the purchasing intension of the consumers. The effect has also led to a renewed efforttowards associating and dissociating the products from the countries that they have made in. Onthe other hand, Suh, Hur and Davies (2016) opined that COO is supposed to be an extrinsicdeterminant and the level associated with brand name, which guide the consumers towardschoosing a specific product. The previous studies have discovered that the product evaluation of the global customersis always dependent on the origin country of the products. The more sensitive is the informationof COO information of the customer, the more positively they perceive about the quality ofparticular products. CCO effect is considered to be positive for the countries, which aredeveloped in regards to economy, technology, wealth index, Government, regulatory mechanismand others.

5LITERATURE REVIEW3.0 Concept of Consumer EthnocentrismConsumer ethnocentrism is the tendency of the consumers towards being reluctant for theforeign products. Ethnocentric consumers tend to perceive their domestic products superior thanthe foreign products. According to Zeugner-Roth, Žabkar and Diamantopoulos (2015), theconsumers having ethnocentrism mentality, view the foreign products from the perspective fortheir own countries and accepts only those products, which are similar to their domesticproducts. Moreover, such customers generally reject the products that are different from theirdomestic products. In comparison with this view, Siamagka and Balabanis (2015) opined thatethnocentric consumers believe that accepting foreign product is inappropriate and evenimmoral. Moreover, such marketing concept leads to nationalistic evaluation of products andservices from the foreign countries. In the context of growing internationalization of productsand services, consumer ethnocentrism plays a significant role in global pace. The loyalty ofethnocentric consumers towards domestic products makes them reluctant to accept the foreignproducts. The previous studies have demonstrated that consumers always perceive the products ofdeveloping countries to have lower qualities as compared to developed countries. In contrast tothis view, Fernández-Ferrín et al. (2015) opined that increasing off-shore manufacturing indeveloping countries may alter perception for low product quality. While considering theproducts and service of the developing country China, it has been found that Chinese productsare always perceived to have lower quality in comparison with the products from developedcountry like USA. As per Balabanis and Siamagka (2017), ethnocentrism gives the consumers afeeling of belongingness and guides them towards purchasing more domestic product and

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