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Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness

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Abstract

Despite growing evidence about differences in the attitudes and behaviors of consumers in emerging and developed markets, there is little research on the differences in country of origin (COO) effects on their evaluation, behavioral intentions (BIs), and actual purchase of imported products. This paper introduces a new conceptual framework incorporating consumer ethnocentrism (CET), materialism (MAT), and value consciousness (VC) to hypothesize several differences in the influence of COO effects on consumers from developed and emerging markets. A web-based study with 1752 consumers in four countries representing two developed markets (the UK and the USA) and two emerging markets (China and India) shows significant differences in the moderating influence of CET, MAT, and VC on the effects of COO on the evaluations and BIs for a fictitious passenger car brand, and on the actual choice of car brands owned by them. The findings highlight the importance of looking beyond CET at other relevant psychographic variables to understand the differences in motivations underlying consumer perceptions and behavior towards imported products.

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Notes

  1. The use of the “value for money” item in the PE scale raises the possibility of a confound with the VC construct. However, VC has no significant direct effect on PE (β=0.03, p>0.10), as shown in Table 7: hence this may not be a major concern. This item was also removed from the PE scale, and no significant difference was found in the results.

  2. To gauge the impact of the language of the questionnaire, the data from the Chinese participants were divided into two parts, based on the language used (English or Chinese): no significant differences were found in the scores for any of the variables, nor in their correlations with each other. The complete analysis was also run again treating the Chinese participants using Mandarin and English as two separate groups, and no significant differences were found.

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  1. Department of Management and Marketing, The Hong Kong Polytechnic University, Kowloon, Hong Kong

    Piyush Sharma

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Accepted by Daniel Bello, Area Editor, 25 November 2009. This paper has been with the author for two revisions.

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Sharma, P. Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness. J Int Bus Stud 42, 285–306 (2011). https://doi.org/10.1057/jibs.2010.16

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