Skip to main content

Consumer Preferences for Domestic versus Foreign Brands: The Role of Consumer Characteristics and Brand Stereotypes

  • Chapter
  • First Online:
Marketing – Eine Bilanz

Abstract

While consumer stereotyping literature has provided useful insights into how various brand characteristics drive consumers’ stereotypical perceptions of brands, the role of consumer characteristics has been neglected. Drawing on the stereotype content model (SCM), this study investigates the simultaneous roles of consumer xenocentrism and consumer ethnocentrism in driving the brand stereotypes of domestic and foreign brands, and the subsequent impact of these opposing dispositions on behavioral outcomes. A structural equation model based on a sample of 287 consumers from Bosnia and Herzegovina reveals that perceptions of domestic (foreign) brand warmth and competence are driven by consumer ethnocentrism (xenocentrism). Furthermore, perceived domestic (foreign) brand competence mediates the impact of ethnocentrism (xenocentrism) on the purchase intent of domestic (foreign) brands, while the mediating role of perceived brand warmth is limited to foreign brands. The findings shed light on (a) the simultaneous roles of two key consumer dispositions as antecedents of brand stereotypes, and (b) the differential effects of these dispositions in driving consumer preferences for domestic vs. foreign brands via perceived brand warmth and competence.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 59.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 74.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aaker, J. L., Vohs, K., & Mogilner, C. (2010). Nonprofits are seen as warm and for-profits as competent: Firm stereotypes matter. Journal of Consumer Research, 37(2), 224–237.

    Article  Google Scholar 

  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.

    Article  Google Scholar 

  • Balabanis, G., & Diamantopoulos, A. (2004). Domestic country bias, country-of-origin effects, and consumer ethnocentrism: A multidimensional unfolding approach. Journal of the Academy of Marketing Science, 32(1), 80–95.

    Article  Google Scholar 

  • Balabanis, G., & Diamantopoulos, A. (2016). Consumer xenocentrism as determinant of foreign product preference: A system justification perspective. Journal of International Marketing, 24(3), 58–77.

    Article  Google Scholar 

  • Balabanis, G., Stathopoulou, A., & Qiao, J. (2019). Favoritism toward foreign and domestic brands: A comparison of different theoretical explanations. Journal of International Marketing, 27(2), 38–55.

    Article  Google Scholar 

  • Bloom Consulting. (2019). Country brand ranking 2019/2020. Trade edition. https://www.bloom-consulting.com/en/pdf/rankings/Bloom_Consulting_Country_Brand_Ranking_Trade.pdf.

  • Campbell, M. C., & Keller, K. L. (2003). Brand familiarity and advertising repetition effects. Journal of Consumer Research, 30(2), 292–304.

    Article  Google Scholar 

  • Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Erlbaum.

    Google Scholar 

  • Davvetas, V., & Halkias, G. (2019). Global and local brand stereotypes: Formation, content transfer, and impact. International Marketing Review, 36(5), 675–701.

    Article  Google Scholar 

  • Diamantopoulos, A., Florack, A., Halkias, G., & Palcu, J. (2017). Explicit versus implicit country stereotypes as predictors of product preferences: Insights from the stereotype content model. Journal of International Business Studies, 48(8), 1023–1036.

    Article  Google Scholar 

  • Diamantopoulos, A., Davydova, O., & Arslanagic-Kalajdzic, M. (2019). Modeling the role of consumer xenocentrism in impacting preferences for domestic and foreign brands: A mediation analysis. Journal of Business Research, 104, 587–596.

    Article  Google Scholar 

  • Diamantopoulos, A., Szőcs, I., Florack, A., Kolbl, Ž, & Egger, M. (2021). The bond between country and brand stereotypes: Insights on the role of brand typicality and utilitarian/hedonic nature in enhancing stereotype content transfer. International Marketing Review, 38(6), 1143–1165. https://doi.org/10.1108/IMR-09-2020-0209.

    Article  Google Scholar 

  • Eshleman, J. R., Cashion, B. G., & Basirico, L. A. (1993). Sociology: An introduction (4th ed.). Harper Collins.

    Google Scholar 

  • Fiske, S. T., Cuddy, A. J., Glick, P., & Xu, J. (2002). A model of (often mixed) stereotype content: Competence and warmth respectively follow from perceived status and competition. Journal of Personality and Social Psychology, 82(6), 878–902.

    Article  Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Fournier, S. (1998). Consumers and their brands: Developing relationship theory in consumer research. Journal of Consumer Research, 24(4), 343–373.

    Article  Google Scholar 

  • Gidaković, P., Szőcs, I., Diamantopoulos, A., Florack, A., Egger, M., & Žabkar, V. (2022). The interplay of brand, brand origin and brand user stereotypes in forming value perceptions. British Journal of Management, 33(4), 1924–1949.

    Google Scholar 

  • globalEDGE. (2020). Bosnia and Herzegovina: Economy. https://globaledge.msu.edu/countries/bosnia-and-herzegovina/economy.

  • Goldsmith, R. E., & Newell, S. J. (1997). Innovativeness and price sensitivity: Managerial, theoretical and methodological issues. Journal of Product & Brand Management, 6(3), 163–174.

    Article  Google Scholar 

  • Greenwald, A. G., & Banaji, M. R. (1995). Implicit social cognition: Attitudes, self-esteem, and stereotypes. Psychological Review, 102(1), 4–27.

    Article  Google Scholar 

  • Gygli, S., Haelg, F., Potrafke, N., & Sturm, J.-E. (2019). The KOF globalisation index – Revisited. Review of International Organizations, 14(3), 543–574. https://doi.org/10.1007/s11558-019-09344-2.

    Article  Google Scholar 

  • Halkias, G., Davvetas, V., & Diamantopoulos, A. (2016). The interplay between country stereotypes and perceived brand globalness/localness as drivers of brand preference. Journal of Business Research, 69(9), 3621–3628.

    Article  Google Scholar 

  • Ivens, B. S., Leischnig, A., Muller, B., & Valta, K. (2015). On the role of brand stereotypes in shaping consumer response toward brands: An empirical examination of direct and mediating effects of warmth and competence. Psychology & Marketing, 32(8), 808–820.

    Article  Google Scholar 

  • Jaffe, E. D., & Nebenzahl, I. D. (2006). National image & competitive advantage: The theory and practice of place branding (2nd ed.). Copenhagen Business School Press.

    Google Scholar 

  • Jost, J. T., & Andrews, R. (2011). System justification theory. In J. D. Christine (Ed.), The encyclopedia of peace psychology. Wiley Blackwell

    Google Scholar 

  • Kervyn, N., Fiske, S. T., & Malone, C. (2012). Brands as intentional agents framework: How perceived intentions and ability can map brand perception. Journal of Consumer Psychology, 22(2), 166–176.

    Article  Google Scholar 

  • Kolbl, Ž., Arslanagic-Kalajdzic, M., & Diamantopoulos, A. (2019). Stereotyping global brands: Is warmth more important than competence? Journal of Business Research, 104(Nov), 614–621.

    Google Scholar 

  • Kolbl, Ž., Diamantopoulos, A., Arslanagic-Kalajdzic, M., & Zabkar, V. (2020). Do brand warmth and brand competence add value to consumers? A stereotyping perspective. Journal of Business Research, 118(Sep), 346–362.

    Google Scholar 

  • Levine, R. A., & Campbell, D. T. (1972). Ethnocentrism: Theories of conflict, ethnic attitudes, and group behavior. Wiley.

    Google Scholar 

  • Putrevu, S., & Lord, K. R. (1994). Comparative and noncomparative advertising: Attitudinal effects under cognitive and affective involvement conditions. Journal of Advertising, 23(2), 77–91.

    Article  Google Scholar 

  • Sharma, S., Shimp, T. A., & Shin, J. (1995). Consumer ethnocentrism: A test of antecedents and moderators. Journal of the Academy of Marketing Science, 23(1), 26–37.

    Article  Google Scholar 

  • Shimp, T. A., & Sharma, S. (1987). Consumer ethnocentrism: Construction and validation of the CETSCALE. Journal of Marketing Research, 24(3), 280–289.

    Article  Google Scholar 

  • Tajfel, H., & Turner, J. C. (1986). The social identity theory of intergroup behavior. In S. Worchel & W. Austin (Eds.), Psychology of intergroup relations (pp. 7–24). Nelson Hall.

    Google Scholar 

  • Verlegh, P. W. (2007). Home country bias in product evaluation: The complementary roles of economic and socio-psychological motives. Journal of International Business Studies, 38(3), 361–373.

    Article  Google Scholar 

  • Vida, I., Dmitrović, T., & Obadia, C. (2008). The role of ethnic affiliation in consumer ethnocentrism. European Journal of Marketing, 42(3/4), 327–343.

    Article  Google Scholar 

  • Wakefield, K. L., & Inman, J. J. (2003). Situational price sensitivity: The role of consumption occasion, social context and income. Journal of Retailing, 79(4), 199–212.

    Article  Google Scholar 

  • Zhou, L., Yang, Z., & Hui, M. K. (2010). Non-local or local brands? A multi-level investigation into confidence in brand origin identification and its strategic implications. Journal of the Academy of Marketing Science, 38(2), 202–218.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Adamantios Diamantopoulos .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 Der/die Autor(en), exklusiv lizenziert an Springer Fachmedien Wiesbaden GmbH, ein Teil von Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Szőcs, I., Diamantopoulos, A., Luburić, G. (2023). Consumer Preferences for Domestic versus Foreign Brands: The Role of Consumer Characteristics and Brand Stereotypes. In: von der Oelsnitz, D., Wagner, U. (eds) Marketing – Eine Bilanz. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-39035-8_9

Download citation

  • DOI: https://doi.org/10.1007/978-3-658-39035-8_9

  • Published:

  • Publisher Name: Springer Gabler, Wiesbaden

  • Print ISBN: 978-3-658-39034-1

  • Online ISBN: 978-3-658-39035-8

  • eBook Packages: Business and Economics (German Language)

Publish with us

Policies and ethics