Documente Academic
Documente Profesional
Documente Cultură
UMinho]
On: 04 May 2014, At: 05:38
Publisher: Routledge
Informa Ltd Registered in England and Wales Registered Number: 1072954
Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH,
UK
Journal of International
Consumer Marketing
Publication details, including instructions for
authors and subscription information:
http://www.tandfonline.com/loi/wicm20
To cite this article: Dr. Luisa Villanueva Orbaiz & Nicolas Papadopoulos (2003) Toward
a Model of Consumer Receptivity of Foreign and Domestic Products, Journal of
International Consumer Marketing, 15:3, 101-126, DOI: 10.1300/J046v15n03_06
To link to this article: http://dx.doi.org/10.1300/J046v15n03_06
This article may be used for research, teaching, and private study purposes.
Any substantial or systematic reproduction, redistribution, reselling, loan,
sub-licensing, systematic supply, or distribution in any form to anyone is
expressly forbidden. Terms & Conditions of access and use can be found at
http://www.tandfonline.com/page/terms-and-conditions
ABSTRACT. This paper investigates consumer attitudes toward domestic and foreign products using a multi-attribute model that includes measures of consumers familiarity with and beliefs about products from
various origins, as well as their ethnocentric tendencies and their affective
feelings toward the origins themselves. The model is applied to origins
that have various types of links with the respondents at both the national
and subnational levels. Structural Equation Modelling is used to test the
model for each origin and Multigroup Analysis is used to examine similarities and differences in the respondents views. The results show that the
model explains consumers purchase predispositions well in most cases.
Affective considerations are found to have a significant and direct influence on willingness to buy. [Article copies available for a fee from The Haworth
Document Delivery Service: 1-800-HAWORTH. E-mail address: <docdelivery@
haworthpress.com> Website: <http://www.HaworthPress.com> 2003 by The Haworth
Press, Inc. All rights reserved.]
101
102
INTRODUCTION
Global markets have been opening up at a growing pace in recent years due
to a combination of factors that include advances in transport and communications technology, the liberalization of trade, and growing consumer incomes.
Further, Levitt (1983), Ohmae (1990), and many others have suggested that
these and other related trends are bringing about a growing homogeneity in
consumer needs and buying behavior worldwide. This new environment may
enable the development of more standardized global approaches in marketing
strategy, resulting in the benefits of scale and scope economies and greater
global effectiveness.
However, other scholars challenge the homogeneity theory and the advisability of global strategies without careful consideration. The main rationale is
that globalization, in the sense of lower technical barriers to trade at the national level, in fact serves to exacerbate subnational differences and to highlight other factors that are equally if not more important for marketers (e.g.,
Balabanis et al. 2001). These include culture, ethnicity, regional identity, and
disparities in economic development, which may result in significant differences both across and within nations (e.g., Berry 1979, Ohmae 1990, Kotler et
al. 1993, Knox 1995, Laroche et al. 2000). To business, such differences present more segmentation options and potentially more opportunities through
greater differentiation, and at the same time intensified competition and possibly greater cost in attempting to address their customers needs. To researchers, they present an opportunity to focus more than before on the factors that
may result in differential international and subnational consumer responses to
standardized strategies.
One of the factors that can play a key role in this regard is buyers beliefs
and attitudes toward a products country of origin. The overall importance of
Product-Country Image (PCI) effects has been established in numerous individual studies and several integrative works (e.g., Verlegh and Steenkamp
1999, Jaffe and Nebenzahl 2001). Further, studies that have dealt with the distinction between domestic vs. foreign products have posited a variety of potential antecedents to PCI-based views. These range from animosity toward a
specific country (Klein et al. 1998) and a broader-based ethnocentric preference for domestic goods (Shimp and Sharma 1987), to worldmindedness resulting in favoring foreign products (Rawwas et al. 1996). Such feelings can be
very important since they point to a range of potential reactions to a uniform
global strategy, from very negative to very positive. In turn, this suggests that a
firm must be particularly careful in deciding whether a standardized or local
strategy may be best for a particular market.
103
Notwithstanding significant advances in understanding the PCI phenomenon to date, researchers have noted a number of knowledge gaps. Four of these
formed the basis for this study. First, there have been very few attempts to
model PCI effects, and fewer still to measure a countrys image separately and
link it to the image of its products (Li et al. 1997). Second, attention to the affective components of PCI images is relatively new, and the linkages between
them and product evaluations have not yet been studied thoroughly (Batra et
al. 2000). Third, PCI research to date has focused almost exclusively on national-level studies, in spite of the rise in importance of subnational issues, as
noted above, which are of interest not only to international but also to domestic
marketers (Kotler et al. 1993). Lastly, few studies have paid much attention to
potential ethnic, geographic, or other linkages between the stimulus origins selected for testing and the studys respondents, notwithstanding the potential influence of such links on product evaluations (Heslop et al. 1998).
Accordingly, this study was designed to address four main objectives: (1) to
test a model of PCI effects including not only product but also country measures; (2) to examine the links between ethnocentrism, affect, and country image, on the one hand, and product beliefs and predisposition to buy, on the
other; (3) to examine the previous two objectives in both the international and
subnational contexts, in order to explore potentially different PCI effects depending on the level at which the model is applied; and (4) to explore potential
differences in PCI effects depending on the stimulus origins and their links
with the respondents, by using a carefully selected combination of origins relative to the test location.
In summary, while no single research effort can address all outstanding PCI
questions, the objectives and design of this study aim to provide new insights
in terms of its individual objectives and also to help advance theoretical integration which this field of research is lacking and needs (Peterson and Jolibert
1995). The remaining sections of this paper review the relevant literature, set
the hypotheses and describe the method used, and discuss the findings and
their implications.
THEORETICAL FRAMEWORK
Several literature reviews, meta-analyses, and books have summarized the
findings of numerous PCI studies and concluded that a products origin can be
an important contributing factor in determining how it will be received by buyers (e.g., Papadopoulos and Heslop 1993, Baughan and Yaprak 1993, Peterson
and Jolibert 1995, Verlegh and Steenkamp 1999, Jaffe and Nebenzahl 2001).
In fact, based on his meta-analysis of experimental PCI studies, Liefeld
104
105
106
each case (Malliaris 1980, Rawwas et al. 1996, Batra et al. 2000, Balabanis et
al. 2001).
As might be expected for a nascent research field, these studies have used
widely varying instruments and produced very different results (e.g., see Batra
et al. 2000 vs. Balabanis et al. 2001, and Roemer 1995 vs. Klein et al. 1998).
Nonetheless, all of these studies agree on two key points: that affective considerations seem to play an important role in product evaluations, and that they
may impact willingness to buy directly and in spite of positive cognitive evaluations. In other words, this research stream suggests that product evaluations
may be influenced by consumers views depending on the perceived link, if
any, between their own ethnicity and the brands nationality. Since PCI essentially is a matter of perceived brand nationality, therefore, it seems useful to
test a PCI model that includes affective considerations as potential explanatory
schemata.
HYPOTHESES AND RESEARCH SETTING
Hypotheses
Based on the preceding review of the relevant theory, the model was posited
as shown in Figure 1. Since the intended contribution of the study was in examining various constructs that had not been tested simultaneously before, we
strove for a balance between addressing the gaps discussed above and testing a
parsimonious model that would not be unduly complex. This resulted in developing the model around six main constructs.
Three of these refer to the main links which most PCI models have examined to date, as noted abovenamely, the relationships between cognitive
product evaluations (Beliefs) and/or knowledge of a countrys products (Familiarity) with consumer receptivity toward these products (Buy). Two other
constructs refer to cognitive evaluations of an origin country (Country Image)
and consumers positive or negative affective feelings toward it (Affect), as
suggested by the studies mentioned above (Papadopoulos et al. 1988, Hubl
1996, Li et al. 1997, Klein et al. 1998, Knight and Calantone 2000). Lastly, consumers Ethnocentrism has been tested separately in various studies and found
to represent an important influencing construct (Shimp and Sharma 1987,
Netemeyer et al. 1991, Sharma et al. 1995). Given the often-divergent findings
on whether Country Image, Familiarity, Affect, and Ethnocentrism affect receptivity directly or through product Beliefs, the model was designed to account
for both direct and indirect effects.
107
Country
Image
H2-12
Familiarity
H1-11
H7-22
Product
Beliefs
H3-13
Affect
(country)
H8-23
H4-14
Ethnocentrism
H6-21
H5-21
Buy
(receptivity)
H9-24
The model design resulted in nine hypotheses. Of these, the first four concern the potential impacts of the four exogenous constructs on product beliefs:
H1
H2
Consumers Familiarity with the products of a given origin will influence their product Beliefs positively.
H3
H4
Consumer Ethnocentrism will have a negative (positive) effect on Beliefs about foreign (domestic) products.
The next five hypotheses concern the potential direct impacts on consumers receptivity of products from various origins:
H5
A positive (negative) Country Image will increase (reduce) receptivity toward the countrys products.
H6
108
H7
The greater (lesser) Familiarity with the products of a given origin is,
the more (less) receptive consumers will be toward them.
H8
H9
Consumer Ethnocentrism will have a negative (positive) effect on receptivity toward foreign (domestic) products.
109
Based on the above, it was decided to select the test location and stimulus
origins carefully such that additional insights could be obtained from testing
the hypotheses. The city of Pamplona in the province of Navarra in Spain was
selected as the test location. Spain is very suitable for this type of research,
since it cooperates closely with fellow members of the European Union (EU),
has extensive cultural and economic links with its former colonies abroad, and
is characterized by internal disparity. The test city and province lie in the
northern part of the country which borders France, a fellow EU member with
which there is both cooperation and rivalry. Navarra borders three Spanish regions with distinct identities, Aragon, La Rioja, and Pais Vasco (Basque Country), of which the latter also has a strong separatist movement. Thus the test
location enabled the selection of four stimulus origins, in line with the research
findings discussed above: Spain, as the home country for which ethnocentrism
might be observed; France, as a neighbor with a similar socio-economic and
political environment; Argentina, as a culturally-linked but geographically far
and less well developed country; and Basque Country, as a distinct but familiar
region-of-origin.
This configuration has two key advantages. First, it makes it possible to
have four distinct tests of the model, with origins that are particularly relevant
in the context of the constructs whose combined influence has not been tested
before (Country Image, Familiarity, Affect, and Ethnocentrism). Second, the
results obtained from the four distinct tests can be compared to examine differences that may arise from the interaction between the particular characteristics
of each origin (e.g., economic vs. cultural ties, presence or absence of geographic proximity, national vs. regional entity) and the nature of the constructs
(cognitive vs. affective).
METHOD
The study was part of a larger research study that used a structured questionnaire, probability multi-stage sampling, and the drop-off/pick-up fieldwork
technique to collect the data, with an overall response rate of approximately
40%. The same approach was used for this study except that fieldwork difficulties forced a small number of mall- and street-intercept interviews (approx.
10%) to supplement the sample. The sampled population was adult consumers
in Pamplona, and a total of 198 usable responses were retained after data purification to remove questionnaires with too many missing values. The sample
was quite well balanced compared to the general population, with only a slight
skew toward females (56.9%) and medians at 35 for age, medium to medium-low for income, and high school or equivalent for education.
110
The research instrument was initially developed in English and translated/back-translated into Spanish. In addition to a standard demographics section, it used 7-point bipolar adjective scales drawn from the earlier studies
noted above. Specifically, Country Image was measured using five variables
from the handful of studies that have addressed country-oriented beliefs, including standard of living, wealth, technology level, education, and stability
(Wang and Lamb 1983, Papadopoulos et al. 1988, Hubl 1996, Li et al. 1997).
Product Beliefs were measured with four variables which have been used extensively in PCI research, namely, quality, reliability, workmanship, and good
overall products (e.g., Heslop et al. 1993, Papadopoulos et al. 2000, plus the
above-mentioned studies). The variable willing to buy was used to measure
receptivity (Buy), in line with common practice in numerous PCI studies (e.g.,
Wall and Heslop 1989, Johansson and Nebenzahl 1987, Klein et al. 1998).
Similarly, since the role of Familiarity is well-established, the variable know
a lot about the products of country X was used for this construct.
For the Affect construct, three considerations were taken into account.
First, this construct has not been tested well in the PCI context, and scales developed in social psychology are specific to a particular concept (e.g., xenophobia or internationalism) and not suited to the objective of this study.
Second, the affect-oriented studies discussed earlier agree that where emotive
factors play a role, affect variables often load together with conative ones (e.g.,
would/would not welcome more imports from). Third, Shimp and Sharmas
(1987) CETSCALE distinguishes only between pure domestic vs. foreign
products, not allowing for products that may be perceived as foreign but are
made locally and may be less threatening to consumers. Based on these considerations, for this construct we selected three variables that reflect affect and the
associated conative intents, and have been shown to reflect the relevant concepts well (Heslop and Papadopoulos 1993): trustworthiness of the origins
people, desire for closer ties with them, and consumer attitudes toward more
investment from the stimulus origin. Lastly, the well-tested CETSCALE
(Shimp and Sharma 1987) was used for the Ethnocentrism construct.
FINDINGS AND DISCUSSION
The model was tested using Structural Equation Models with Latent Variables,1 following a test to analyse the psychometric properties of the scales
used to measure the latent variables. The empirical models were first estimated
for receptivity toward the products from each of the four different origins of interest, based on the model in Figure 1. Common values on the causal parame-
111
ters across the four models were then tested for equivalence using Multigroup
Analysis, by comparing in each case the results obtained in the previous stage.
For each of the multi-item scales, namely Country Image, Beliefs, Affect,
and Ethnocentrism, unidimensionality and convergent validity were checked
via single factor Confirmatory Factor Analyses (EQS v. 6.0) and internal consistency and discriminant validity were ensured. Overall, the scale tests proved
satisfactory (although with some reservations due to less than adequate fit of
some of the confirmatory factor analyses2).
An initial overview of the data using ANOVA revealed that consumers in
Navarra do not show the same willingness to buy the products of the various
origins. As shown in Table 1, respondents appear to be very willing to buy the
products of their home country and those of the neighboring region, although
with a significantly stronger preference for the former. On the other hand, they
are less favorably disposed toward products from Argentina, and even less so
toward those from France. The difference between the means for Spain and
France is noteworthy since, at almost three full points on the 7-point scale, it
reflects significant negativity. The means for the latent variables (Appendix 1)
provide a first indication of divergence between beliefs and affect. For example, France is rated higher than all origins on Country Image (5.85), reflecting
consumer perceptions of it as a highly developed country, and reasonably
highly on product Beliefs (5.12), but significantly lower on Affect (4.51). Conversely, Argentina is rated significantly lower than France on Country Image,
Beliefs, and Familiarity, but significantly higher on Affect and Buy.
Model Tests for Each Origin
For the model tests, given the level of complexity involved and the sample
size we selected a partial aggregation model (Bagozzi and Heatherton 1994).
A composite measure of Ethnocentrism was devised by adding the scores of
the 17 CETSCALE indicators.
TABLE 1. Receptivity of Navarra Consumers Toward Domestic and Foreign
Products
Mean values of product receptivity (willing to buy)*
Spain
Basque C.
Argentina
France
6.49
5.80
4.67
3.71
112
113
Qulife
11
x
Techn 21
x
Educa 31
x
Stable 41
Wealthx55
x
Know 62
x
Ties 73
x
Trust 83
x
Invest 93
x
Ethno 104
Qualty11
Reliaby21
Wkshy31
y
Good 41
y
Willing 52
11
22
33
44
55
66
77
88
99
1010
11
22
33
44
55
a
Parameter T-value
estimationa
Parameter
Parameter
estimation
T-value
Standardized
parameter
estimation
1.00
1.00
H111
0.48
3.84
0.30
1.22
8.65
0.69
H212
0.16
3.43
0.27
1.02
7.86
0.63
H313
1.30
7.03
0.48
H414
1.11
9.10
0.77
H521
1.00
0.81
H621
0.41
4.14
1.00
0.81
H722
0.69
7.90
0.54
H823
0.60
5.40
1.04
11.94
0.84
H924
20.59b
0.29
0.51
0.98
11
0.44
6.01
1.00
0.89
22
3.02
11.40
1.00
1.07
18.70
0.94
33
1.53
5.07
1.00
1.04
16.72
0.89
44
1.00
9.56
1.00
0.96
12.55
0.82
12
0.29
2.91
0.25
0.50
1.00
1.00
1.00
13
0.41
4.47
0.22
5.07
0.34
14
0.73
6.25
0.53
23
0.64
3.65
0.71
6.14
0.61
24
2.51
9.41
0.77
34
0.38
4.87
0.41
11
0.86
5.69
0.79
22
1.21
5.95
0.58
0.00
0.00
0.78
3.62
0.34
1.76
6.57
0.71
0.67
3.57
0.29
21.32
0.05
g.l.
0.27
3.63
0.20
p-level
0.00
0.16
3.80
0.12
CFI
0.95
0.31
2.67
0.21
NFI
0.88
0.49
5.24
0.33
NNFI
0.94
0.00
0.00
RMSEA
0.05
0.30
-
2
S-B
140.01
86
Values in italics represent parameters fixed prior to the estimation of the model.
The factor loadings (1) and measurement error variance of the indicator (2) for the Ethnocentrism variable were
1/2
2
calculated with the following expressions: (1) Sx y (2) (1 ) S x, where Sx is the standard deviation of the
Ethnocentrism variable (Sx,Navarra = 21.13) and is the index of composite reliability for the scale (Navarra = 0.95)
(Srbom and Jreskog, 1982).
114
Parameter
Parameter
a
estimation
T-value
Parameter
Parameter
estimation
T-value Standardized
parameter
estimation
11
1.00
0.86
H111
0.49
4.53
0.48
Technx21
0.89
15.34
0.75
H212
0.18
2.85
0.19
0.83
10.52
0.60
H313
0.82
9.03
0.64
H414
0.91
10.42
0.68
H521
Qulife
Educa
31
Stable
41
x
Wealth
55
Know
Ties
62
x
73
x
Trust
83
x
Invest
93
Ethnox104
y
Qualt
11
y
1.00
1.00
H621
0.24
1.00
0.41
H722
1.13
3.79
0.61
H823
0.32
2.14
0.28
H924
2.91
0.27
3.85
0.64
0.16
2.80
0.18
20.59
0.98
11
1.10
4.92
1.00
1.00
0.80
22
1.16
3.66
1.00
1.27
0.88
18.12
0.85
33
0.68
2.14
1.00
31
0.93
11.01
0.82
44
1.00
9.56
1.00
41
0.66
7.76
0.76
12
1.00
1.00
13
0.63
11
0.40
5.67
0.27
14
22
0.68
7.82
0.44
23
33
1.31
7.81
0.63
24
1.04
7.46
0.59
34
55
1.06
4.77
0.54
11
0.83
6.23
0.73
66
0.00
0.00
22
0.67
4.04
0.76
77
3.28
6.60
0.83
88
1.45
5.54
0.63
1.55
4.30
0.59
Reliab
21
Wksh
Good
Willingy52
44
99
21.32
2S-B
180.66
0.05
g.l.
3.31
0.36
p-level
0.00
22
0.35
5.21
0.28
CFI
0.83
33
0.48
4.74
0.33
NNI
0.73
44
0.37
7.17
0.42
NNFI
0.80
55
0.00
0.00
RMSEA
0.07
87
0.73
0.65
1010
11
3.50
115
Qulife
11
x
Techn
21
x
Educa
31
Stable
41
x
Wealth
55
Know
Ties
62
x
73
x
Trust
83
x
Invest
93
Ethnox104
y
Qualt
Parameter
estimationa
T-value
Parameter
Parameter
estimation
T-value Standardized
parameter
estimation
1.00
1.00
H111
0.62
3.56
0.38
0.96
5.02
0.60
H212
0.12
2.86
0.19
1.14
6.50
0.62
H313
0.26
2.86
0.33
1.21
5.63
0.68
H414
0.84
6.46
0.61
H521
1.00
0.61
H621
0.38
2.27
0.23
1.00
0.77
H722
0.16
2.39
0.15
0.63
7.08
0.52
H823
0.40
2.82
0.30
1.05
9.03
0.71
H924
0.29
2.40
0.15
20.59
0.98
11
0.48
3.37
1.00
0.86
22
3.37
14.72
1.00
1.17
14.66
0.91
33
2.06
5.87
1.00
31
1.00
9.83
0.84
44
1.00
9.56
1.00
41
1.11
14.24
11
y
Reliab
21
Wksh
1.00
0.87
12
1.00
1.00
13
0.48
0.83
4.43
0.63
14
0.76
4.02
0.63
23
0.98
4.65
0.61
24
0.82
4.61
0.54
34
0.45
3.88
0.31
0.59
6.75
0.63
11
0.73
5.22
0.58
0.00
0.00
22
2.42
10.28
0.68
77
1.38
4.61
0.40
88
2.14
8.67
0.73
2.23
6.07
0.49
2S-B
21.32
0.05
g.l.
0.48
5.78
0.27
p-level
0.03
22
0.36
5.40
0.17
CFI
0.97
33
0.53
3.41
0.29
NNI
0.88
0.50
4.59
0.24
NNFI
0.96
0.00
0.00
RMSEA
0.04
Good
Willingy52
11
22
33
44
55
66
99
1010
11
44
55
4.13
0.49
116
Parameter
Qulife
11
x
Techn
21
x
Educa
31
Stable
41
x
Wealth
55
Know
62
Parameter
estimationa
T-value
Standardized
parameter
estimation
1.00
0.76
1.05
8.39
0.89
8.50
0.60
0.68
1.00
Parameter
Parameter
estimation
T-value
Standardized
parameter
estimation
H111
0.31
3.17
0.67
H212
0.68
H313
4.48
0.39
H414
6.25
0.49
H521
1.00
H621
0.55
3.51
0.35
0.27
1.00
0.48
H722
0.87
3.11
0.37
H823
0.90
3.07
0.36
Investx93
1.71
3.72
0.75
H924
0.45
3.27
0.24
Ethnox104
20.59
0.98
11
1.04
5.43
1.00
1.00
0.77
22
1.52
4.82
1.00
Ties
73
Trustx83
Qualty11
y
1.10
11.03
0.79
33
0.44
2.48
1.00
31
1.16
11.39
0.88
44
0.99
9.50
1.00
41
0.96
10.19
0.84
12
Reliab
21
Wksh
Good
1.00
1.00
13
0.75
4.40
0.42
14
1.36
5.17
0.54
23
0.96
6.85
0.54
24
2.07
9.71
0.85
34
0.24
3.33
0.36
55
1.55
8.19
0.76
11
0.73
4.79
0.88
66
0.00
0.00
22
2.30
9.20
0.67
77
1.47
6.04
0.77
88
2.05
8.14
0.84
1.00
3.14
0.44
Willing
11
22
33
44
99
52
0.20
119.13
21.32
0.05
g.l.
0.56
5.33
0.40
p-level
0.01
22
0.61
4.63
0.38
CFI
0.95
33
0.31
3.80
0.22
NNI
0.85
44
0.30
4.44
0.29
NNFI
0.94
0.00
0.00
RMSEA
0.04
1010
11
55
2.59
87
0.19
-
117
veloped for national-level applications, would need to be adapted for use at the
subnational level.
Multigroup Analysis: Comparison of Features Common to All Models
Individual estimations of the models revealed some differences between the
determinants of consumer receptivity toward the products of various origins at
two different geographic reference levels, which we decided to examine more
closely in an attempt to identify the reasons for these differences: BasqueSpanish and Basque-French products at the region vs. country level, and FrenchArgentine products at the country level. However, since some significant relationships appeared to be common to all models, it was necessary to assess the
equivalence in the magnitude of their parameters (Table 6).
Three Multigroup analyses were carried out (EQS v. 6.0). In each case, the
relevant models were first estimated simultaneously, without placing any restriction on the magnitude of the common parameters. Their goodness of fit indices (see Figures 2, 3 and 4), allowed them to be compared with those of later
estimations, into which the constraints were incorporated in a step by step process. The sequence for introducing the constraints was decided by conducting
a Lagrange multiplier test, following a simultaneous estimation of all the models in which all the constraints were introduced at once. In the first analysis, all
the hypotheses were confirmed. At the 5% level of significance, it can be conTABLE 6. Restrictions Specified for the Multigroup Analyses
Empirical models to be compared
Hypothesis of each model
Basque C.
vs. Spain
Basque C.
vs. France
11,P - 11,E = 0
11,P - 11,F = 0
12,P - 12,F = 0
12,P - 12,E = 0
12,P - 12,F = 0
12,F - 12,A = 0
23,P - 23,F = 0
23,F - 23,A = 0
France
vs. Argentina
11,F - 11,A = 0
24,F - 24,A = 0
118
Country
Image
SP
BC
a
0.17 0.17
0.28 0.17b
BC SP
0.48 0.48
0.31 0.48
Familiarity
BC SP
Ns Ns
BC SP
Ns Ns
Affect
(country)
BC SP
0.57 0.57
0.51 0.33
BC SP
Ns Ns
BC SP
0.87 0.79
0.79 0.73
BC SP
Ns Ns
Product
Beliefs
BC SP
0.29 0.29
0.22 0.31
BC SP
1.24 0.66
0.63 0.70
Buy
(receptivity)
Ethnocentrism
BC SP
Ns 0.17
0.17
Model fit without restriction: S-B = 314.88(172 d.f.); CFI = 0.91; NFI = 0.82; NNFI = 0.89; RMSEA = 0.05
2
Model fit with restriction: S-B = 320.13(176 d.f.); CFI = 0.91; NFI = 0.82; NNFI = 0.90; RMSEA = 0.05
a
Unstandardized solution
b
Standardized solution
2
Country
Image
BC F
0.14 0.14
0.23 0.23
BC F
0.54 0.54
0.48 0.38
Familiarity
BC F
Ns 0.29
0.36
Affect
(country)
BC F
Ns 0.16
0.15
BC F
0.54 0.54
0.35 0.34
BC F
Ns Ns
Ethnocentrism
BC
F
0.86 0.73
0.79 0.58
Product
Beliefs
BC
F
0.38 0.38
0.28 0.22
BC F
Ns Ns
BC F
1.24 2.38
0.62 0.63
Buy
(receptivity)
BC
F
NS 0.24
0.12
Model fit without restriction: 2S-B = 241.40 (169 d.f.); CFI = 0.96; NFI = 0.89; NNFI = 0.95; RMSEA = 0.03
Model fit with restriction: 2S-B = 244.39 (173 d.f.); CFI = 0.96; NFI = 0.89; NNFI = 0.96; RMSEA = 0.03
119
Country
Image
F
A
0.12 Ns
0.20
F
A
0.39 0.39
0.26 0.40
Familiarity
F A
0.32 Ns
0.42
F A
0.15 Ns
0.14
F
A
0.33 0.90
0.25 0.39
Affect
(country)
Product
Beliefs
F
A
0.47 0.47
0.27 0.24
F A
Ns Ns
F
A
2.45 2.27
0.67 0.68
Buy
(receptivity)
F A
Ns Ns
Ethnocentrism
F
A
0.73 0.76
0.61 0.84
F
A
0.37 0.37
0.20 0.20
Model fit without restriction: S-B = 228.58 (171 d.f.); CFI = 0.96; NFI = 0.88; NNFI = 0.95; RMSEA = 0.02
2
Model fit with restriction: S-B = 231.99 (174 d.f.); CFI = 0.96; NFI = 0.87; NNFI = 0.95; RMSEA = 0.03
2
firmed that consumers perceptions of the Basque Country and Spain, and their
degree of familiarity with products of these two origins, mean that their image
and evaluation of Basque and Spanish products is the same. Likewise, it can be
accepted that the Beliefs and Affect constructs have an equal effect on receptivity toward products from these two origins. The second analysis also results
in acceptance of the four hypotheses, with the same interpretation but this time
with respect to receptivity toward Basque and French products. In the third
analysis, all the hypotheses are accepted except the one that posited an influence of Affect on receptivity toward French and Argentine products equally.
Figure 2 shows the results and fit indices of the final simultaneous estimation of the empirical models for the Basque Country vs. Spain. The only variable that emerges as having any differentiating influence on the willingness to
buy products from these origins is Ethnocentrism. As noted earlier, this has a
direct effect on receptivity toward Spanish products, with an effect similar to
that of Country Image, but it is not a determining factor in the case of products
from the consumers neighboring region. Figure 3, concerning Basque vs.
French products, suggests two additional observations. First, Affect has a direct and equal bearing on receptivity toward Basque and French products, but
it also has an indirect, though fairly residual, effect on the latter through Beliefs. Second, the overall effect of familiarity on the willingness to buy non-local products is increased in the case of France, as a result of an indirect effect
which is modified by their beliefs about the products and is three times greater
120
than the direct effect. Lastly, Figure 4 shows the results for France vs. Argentina. This time, Affect and Familiarity were the two most influential constructs
in determining willingness to buy. The first was more relevant in explaining
receptivity toward Argentine products, though it also appeared to have an indirect effect on those of France. The second affected only receptivity to French
products.
IMPLICATIONS AND CONCLUSIONS
The study has certain limitations that constrain its generalizability, suggest
caution in interpreting the results, and at the same time point to directions for
future research. Specifically, the model was tested in a single market, only one
subnational region was considered, two of the latent variables (Familiarity and
Buy) were measured with a sole indicator, and while some of the scales used
have been tested extensively before (Beliefs, CETSCALE), others have not
(Country Image, Affect).
Improving upon these limitations presents a number of options for future
studies. Replications, particularly if consumers in multiple markets can be
sampled simultaneously and asked to evaluate products from several origins,
can be especially useful. For example, Hubl (1996) used two test sites (France
and Germany) but only one origin (Czech Republic) to posit his model of attitudes toward a Mercedes-brand car. The findings of such single-origin studies
may be subject to influences from respondent perceptions of the particular origin, and the lack of a reference point(s) against which they can be interpreted
more fully. While the selection of test and stimulus combinations will obviously be decided by the needs of each individual study, the results here suggest
strongly that several benefits can be gained by making this selection carefully.
Depending on the researchers interests, future studies may also consider
different combinations of national and subnational origins, or perhaps focusing specifically on regions of origin only. Coupled with the findings of Heslop
et al. (1998), this study suggests that products from different regions within the
same country are likely to be evaluated differently by respondents. The findings also suggest that such instruments as the CETSCALE could be amended
for use at the subnational level. Lastly, future research may focus on retesting
and improving upon the instruments used here, drawing from the small but
growing number of studies that deal with the potential influence of affect on
product evaluations.
The principal contribution of the study is the simultaneous testing of constructs that had not been researched together before. Using four tests for different origins, the results clearly show that consumers display different attitudes
121
toward the products of various origins and may welcome or reject products
which may, respectively, be rejected or welcomed elsewhere. Furthermore, the
study provides strong support for a nascent concept that has only now begun
being explored in PCI research: that affective considerations, including not
only ethnocentrism but also other factors, may have a strong and direct impact
on consumers willingness to buy. In line with initial suggestions in this direction (e.g., Klein et al. 1998), the results show that notwithstanding strongly
positive cognitive beliefs about a country and its products, as in the case of
France, affective considerations may result in very negative purchase predispositions toward the same countrys products. The reverse may be the case for
culturally-linked origins, in this case Argentina, which supports the two studies that have dealt with this issue (Wall and Heslop 1989, Heslop et al. 1998).
For practitioners, the study suggests that strategy standardization should be
approached with great caution and, more generally, that they could gain significant benefits from trying to identify a markets views toward their products,
and what lies behind such views, prior to entry. For Basque firms, the empirical results reveal that their neighbors in Navarra are reasonably receptive toward their products but less so compared to products from elsewhere in Spain.
For Basque-based domestic marketers, such information presents an interesting dilemma of whether to emphasize the region or the country of origin, since
both options are available in this case.
Argentine firms appear to benefit from positive affective feelings, but need
to direct their efforts toward improving consumer familiarity and beliefs about
their country and products. At the same time they need to be mindful of
ethnocentrism, which appears to influence the willingness to buy products
from any origin at the national level.
A very different situation faces French firms, which would clearly need to
address the unwillingness of Navarra consumers to buy their products. The
main reason for this is the negative affect these consumers feel toward France.
The impact of Affect is twice as great as that of the next two constructs in order
of importance. Consumers displayed less positive feelings toward France and
the French than they do toward other places and their people (Appendix 1).
More importantly, these feelings are strong enough that not only they affect
willingness to buy directly, but they also colour the respondents product beliefs. Coupled with the effect of Ethnocentrism, which suggests that consumers believe that buying any foreign products may harm the local economy,
French firms face a formidable task indeed. Similar situations might be encountered by firms from other countries in other markets, given the antithetical
feelings that brand nationality may provoke, along the lines suggested by
Klein et al.s (1998) animosity concept.
122
In summary, this study tested a model that is more comprehensive than previous efforts and included distinct measures of country beliefs and affect as
well as ethnocentrism. The choice of stimulus origins helped to provide insights on how consumer attitudes may vary depending on the nature of their
perceived relationship with them. Future research can further explore the issues raised in this study, which are of interest to both international and domestic marketers and may affect their ability to standardize their strategies in
various markets.
NOTES
1. EQS v. 6.0 was used to estimate the specified models. To avoid the effect that the
nonnormality of variables and the sample size might have on some of the goodness of
fit indices, and on the parameter significance analyses, the chosen estimation method
was ML, robust to nonnormality (Bollen 1989, Satorra and Bentler 1988, Bentler
1995).
To account for the recommendations of such authors as Bagozzi and Yi (1988) and
Bollen (1989), multiple indices, robust to nonnormality, were used for assessing the
goodness-of-fit of the overall model. These were: the Satorra-Bentler 2 statistic (2S-B )
(Satorra and Bentler, 1988); the comparative fit index (CFI); the Bentler-Bonett
normed fit index (NFI); the Bentler-Bonett nonnormed fit index (NNFI); and the standardized root mean square residual (RMSEA). In a model with good fit, the 2S-B statistic should not prove significant at the 5% level and the values of the CFI, NFI and
NNFI indices should be close to 1, although values between 0.90 and 0.95 are considered adequate (Bagozzi and Yi 1988, Bollen 1989, Bentler 1995). The RMSEA index
should be close to zero (Hulland et al. 1996).
2. The results of these analyses have been omitted due to lack of space but are available from the authors on request.
REFERENCES
Anderson, W.T. and W.H. Cunningham (1972), Gauging Foreign Product Promotion, Journal of Advertising Research, 12(1), 29-34.
Bagozzi, R.P. and Heatherton, T.F. (1994), A General Approach to Representing
Multifaceted Personality Constructs: Application to State Self-Esteem, Structural
Equation Modeling, 1, 35-67.
Bagozzi, R.P. and Y. Yi (1988), On the Evaluation of Structural Equation Models,
Journal of the Academy of Marketing Science, 16(1), 74-95.
Balabanis, G., A. Diamantopoulos, R. Dentiste Mueller, and T.C. Melewar (2001), The
Impact of Nationalism, Patriotism and Internationalism on Consumer Ethnocentric
Tendencies, Journal of International Business Studies, 32(1), 157-175.
Barker, A.T. (1985), Bias toward imported products: New Zealanders attitudes, Working
Paper, University of Saskatchewan, College of Commerce.
123
Batra, R., V. Ramaswam, D.L. Alden, J.B. Steenkamp, and S. Ramachander. (2000),
Effects of Brand Local/Non-Local Origin on Consumer Attitudes in Developing
Countries, Journal of Consumer Psychology, 9(2), 83-95.
Baughn, C.C. and A. Yaprak (1993), Mapping the Country-of-Origin Literature: Recent Developments and Emerging Research Avenues, in N. Papadopoulos and
L.A. Heslop, eds., Product-Country Images: Product-Country Images: Impact and
Role in International Marketing, New York: International Business Press, 89-116.
Bentler, P.M. (1995), EQS Structural Equations Program Manual, Encino, CA:
Multivariate Software, Inc.
Berry, J. (1979), Research in Multicultural Societies: Implications of Cross-cultural
Methods, Journal of Cross-Cultural Psychology, 10, 415-434.
Bollen, K.A. (1989), Structural Equations With Latent Variables, John Wiley & Sons, Inc.
Cattin, P., A. Jolibert, and C. Lohnes (1982), A Cross-Cultural Study of Made In
Concepts, Journal of International Business Studies, 13(Winter), 131-141.
Druckman, D. (1994), Nationalism, Patriotism, and Group Loyalty: A Social Psychological Perspective, Mershon International Studies Review (Supplement to International Studies Quarterly), 38(Supplement 1), 43-68.
Erickson, G.M., J.K. Johansson, and P. Chao (1984), Image Variables in Multi-Attribute Product Evaluations: Country-of-Origin Effects, Journal of Consumer Research, 11, 694-699.
Han, C.M. (1988), The Role of Consumer Patriotism in the Choice of Domestic Versus Foreign Products, Journal of Advertising Research, 28(3), 25-32.
Han, M.C. (1989), Country Image: Halo or Summary Construct? Journal of Marketing Research, 26(2), 222-229.
Hubl, G. (1996), A cross-national investigation of the effects of country of origin and brand
name on the evaluation of a new car, International Marketing Review, 13(5), 76-97.
Heslop, L.A. and N. Papadopoulos (1993), But Who Knows Where or When: Reflections on the Images of Countries and Their Products, in N. Papadopoulos and
L.A. Heslop, eds., Product-Country Images: Impact and Role in International Marketing, New York: International Business Press, 39-77.
Heslop, L.A., N. Papadopoulos, and G.J. Bamossy (1993), Country and Product Perceptions: Measurement Scales and Image Interactions, in W.F. van Raaij and G.J.
Bamossy, eds., European Advances in Consumer Research, 1, 198-205.
Heslop, L.A., N. Papadopoulos, and M. Bourk (1998), An interregional and
intercultural perspective on subcultural differences in product evaluations, Canadian Journal of Administrative Sciences, 15(2), 113-127.
Hong, S.T. and Wyers, R.S., Jr. (1989), Effects of Country-of-Origin and Product-Attribute Information on Product Evaluation: An Information Processing Perspective, Journal of Consumer Research, 16, September, 175-187.
Hulland, J., Y.H. Chow, and S. Lam (1996), Use of Causal Models in Marketing Research: A Review, International Journal of Research in Marketing, 13, 181-197.
Jaffe, E.D., and I.D. Nebenzahl (2001), National Image and Competitive Advantage,
Copenhagen, Denmark: Copenhagen Business School Press.
Johansson, J.K. and I.D. Nebenzahl (1987), Country of Origin, Social Norms and Behavioral Intentions, Advances in International Marketing, 2, 65-79.
124
Kaynak, E., and S.T. Cavusgil (1983), Consumer Attitudes toward Products of Foreign Origin: Do They Vary Across Product Classes? International Journal of Advertising, 2, 147-157.
Klein, J.G., R. Ettenson, and M.D. Morris (1998), The Animosity Model of Foreign
Product Purchase: An Empirical Test in the Peoples Republic of China, Journal
of Marketing, 62 (1), 89-101.
Knight, G.A. and R.J. Calantone (2000), A flexible model of consumer country-of-origin perceptions, International Marketing Review, 17 (2): 127-145.
Knox, P.L. (1996), Globalization and Urban Change, Urban Geography, 17(1), 115-117.
Kotler, P., D.H. Haider, and I. Rein (1993), Marketing Places, New York, NY: Free
Press.
Kresl, P.K. (1992), The Response of European Cities to EC 1992, Journal of European Integration, 15(2-3), 151-172.
Krishnakumar, P. (1974), An Exploratory Study of the Influence of Country-of-Origin
on the Product Images of Persons from Selected Countries, unpublished Ph.D. Dissertation, University of Florida.
Laroche, M., F. Pons, and A. Turmel (2000), Direct Mail Receptivity: A Cross Cultural Comparison Between French and English Canadians, in Proceedings of the
Multicultural Marketing Conference, Academy of Marketing Science (Hong Kong)
(on CD).
Levine, R.A. and D.T. Campbell (1972), Ethnocentrism: Theories of Conflict, Ethnic
Attitudes, and Group Behavior, New York, NY: John Wiley & Sons.
Levitt, T. (1983), The Globalization of Markets, Harvard Business Review,
May/June, 92-102.
Li, Z.G., S. Fu, and L.W. Murray (1997), Country and Product Images: The Perceptions of Consumers in the Peoples Republic of China, Journal of International
Consumer Marketing, 10(1-2), 115-138.
Liefeld, J. (1993), Consumer Use of Country-of-Origin Information in Product Evaluations: Evidence from Experiments, in N. Papadopoulos and L. Heslop, eds.,
Product-Country Images: Impact and Role in International Marketing, New York,
NY: International Business Press, 117-156.
Malliaris, P. (1980), Xenophilic Consumer Behavior: Theoretical Dimensions and
Measurement, unpublished Ph.D. dissertation, University of Oklahoma.
Nes, E.B. and W.J. Bilkey (1993), A Multi-Cue Test of Country-of-Origin Theory,
in N. Papadopoulos and L.A. Heslop, eds., Product-Country Images: Impact and
Role in International Marketing, New York: International Business Press, 179-195.
Netemeyer, R.G., S. Durvasula, and D.R. Lichtenstein (1991), A Cross-National Assessment of the Reliability and Validity of the CETSCALE, Journal of Marketing
Research, 28(August), 320-327.
Newhouse, J. (1997), Europes Rising Regionalism, Foreign Affairs, 76, 67-85.
Ohmae, K. (1990), The Borderless World, New York, NY: Harper Collins.
Papadopoulos, N., and L.A. Heslop (1993), Product-Country Images: Role and Implications for International Marketing, New York: International Business Press.
Papadopoulos, N., L.A. Heslop, and G.J. Bamossy (1990), A comparative analysis of
domestic versus imported products, International Journal of Research in Marketing, 7, 283-294.
125
Papadopoulos, N., L.A. Heslop, and IKON Research Group (2000), A Cross-national
and Longitudinal Study of Product-Country Images with a Focus on the U.S. and Japan, Marketing Science Institute, Working Paper Series 00-106, Cambridge, MA.
Papadopoulos, N., J.J. Marshall, and L.A. Heslop (1988), Strategic Implications of
product and Country Images: A Modelling Approach, in Marketing Productivity,
Amsterdam, Holland: European Society for Opinion and Marketing Research, 41st
Research Congress, 69-90.
Peterson, R.A. and A.J.P. Jolibert (1995), A Meta-Analysis of Country-of-Origin Effects, Journal of International Business Studies, 26(4), 883-900.
Rawwas, M.Y.A. and K.N. Rajendran (1996), The influence of worldmindedness and
nationalism on consumer evaluation of domestic and foreign products, International Marketing Review, 13(2), 20-38.
Roemer, C.A. (1995), Intercultural Prejudice and Brand Equity: U.S. Reaction to Japanese Automobiles, in Educator Proceedings, American Marketing Association,
(Winter) 387-393.
Samli, A. (1995), International Consumer Behavior, Quorum Books.
Satorra, A. and P.M. Bentler (1988), Scaling Corrections for Statistics in Covariance
Structure Analysis, Los Angeles: UCLA Statistics Series #2.
Schooler, R.D. (1965), Product Bias in the Central American Common Market,
Journal of Marketing Research, 2, 394-397.
Sharma, S., T.A. Shimp, and J. Shin (1995), Consumer Ethnocentrism: A Test of Antecedents and Moderators, Journal of the Academy of Marketing Science, 23(1), 26-38.
Shimp, T.A. and S. Sharma (1987), Consumer Ethnocentrism: Construction and Validation of the CETSCALE, Journal of Marketing Research, 24 (3), 280-289.
Srbom, D. and K.G. Jreskog (1982), The Use of Structural Equation Models in
Evaluation Research, A second generation of multivariate analysis, 2, 381-418.
Stangor, C. and J.E. Lange (1994), Mental Representations of Social Groups: Advances in Understanding Stereotypes and Stereotyping, Advances in Experimental
Social Psychology, 26, 357-416.
Verlegh, P.W.J., and J.B. Steenkamp (1999), A review and meta-analysis of country-of-origin research, Journal of Economic Psychology, 20, 521-546.
Wall, M. and L.A. Heslop (1989), Consumer Attitudes Toward the Quality of Domestic and Imported Apparel and Footwear, Journal of Consumer Studies and Home
Economics, 13, 337-358.
Wang, C.K. and C. Lamb (1983), The Impact of Selected Environmental Forces Upon
Consumers Willingness to Buy Foreign Products, Journal of the Academy of
Marketing Science, 11, 71-83.
Young, M.A., P.L. Sauer, and H.R. Unnava, (1994), Country-of-Origin Issues, in
S.S. Hassann and R.D. Blackwell, eds., Global Marketing, Fort Worth, TX: The
Dryden Press.
126
Latent variables
Spain
Basque C.
France
Argentina
Country Image
Qulife
Low/High living standard
Techn
Tech. backward/advanced
Educa Low/High level of education
Stable Unstable/Stable
Wealth Poor/Rich
5.33
5.63
5.85
3.26
Product Beliefs
Qualt
Poor/Good quality
Reliab Unreliable/Reliable
Wksh
Poor/Good workmanship
Good
Poor/Good overall
5.86
5.67
5.12
3.97
Buy (Receptivity)
Willing Not willing/Willing to buy
6.49
5.80
3.71
4.67
Familiarity
Know
Know little/a lot about
6.47
4.91
4.10
1.62
Affect
Ties
Trust
Invest
5.70
5.76
4.51
5.20
3.50
3.50
3.50
3.50
Ethnocentrism
Ethno
CETSCALE (17 items)