Avoiding uncertainty, consumer ethnocentrism and xenocentrism, the image of the country of origin, as determinants of acceptance of foreign brands

Authors

  • Stefan Zdravković University of Kragujevac, Faculty of Economics, Serbia

DOI:

https://doi.org/10.5937/bizinfo2202013Z

Keywords:

avoiding uncertainty, consumer ethnocentrism, consumer xenocentrism, image of the country of origin, foreign brands

Abstract

The process of globalization and integration of the world market have led to the liberalized foreign trade of goods and services. The development of information technologies and traffic networks has made it easier for companies to internationalize their business. For successful and profitabile business, it is necessary to research the foreign market in which the company wants to appear and place its brands, because in that way information is collected that is necessary for formulating an adequate marketing strategy. Consumer decision to accept foreign brands is influenced by a number of determinants. The aim of the paper is to determine whether the avoidance of uncertainty as a dimension of national culture, consumer ethnocentrism and xenocentrism, as well as the image of the country of origin have an impact on consumer’s decision to accept foreign brands. Empirical research was conducted using a survey method on the territory of the Republic of Serbia (Belgrade, Kragujevac), and the answers received from the respondents were analyzed through the statistical software of the SPSS. The total number of respondents in the sample is 255. Of the statistical analyzes, reliability analysis was applied to examine the relationship between research variables and the relevance of the research model, as well as multiple regression analysis to confirm research hypotheses. The results showed that avoidance of uncertainty and consumer ethnocentrism have a negative impact, and consumer xenocentrism and the image of the country of origin have a positive impact, on the decision of consumers to accept foreing brands.

Downloads

Download data is not yet available.

References

Anne Lee, J., Garbarino, E. & Lerman, D. (2007). How cultural differences in uncertainty avoidance affect product perceptions. International Marketing Review, 24(3), 330-349. https://doi.org/10.1108/02651330710755320

Brewer and Venaik, S. (2012). On the misuse of national culture dimensions. International Marketing Review, 29(6), 673-683. https://doi.org/10.1108/02651331211277991

Broekhuizen, T.L.J., Giarratana, M.S. & Torres, A. (2017). Uncertainty avoidance and the exploration-exploitation trade-off. European Journal of Marketing, 51(1/12), 2080-2100. https://doi.org/10.1108/EJM-05-2016-0264

Bizumic, B. (2019). Effects of the dimensions of ethnocentrism on consumer ethnocentrism: An examination of multiple mediators. International Marketing Review, 36(5), 748-770. https://doi.org/10.1108/IMR-04-2018-0147

Bernard, Y., Collange, V., Ingarao, A. & Zarrouk-Karoui, S. (2020). Products labeled as “made in domestic country”: the brand matters. European Journal of Marketing, 54(12), 2965-2987. https://doi.org/10.1108/EJM-04-2018-0229

Cleveland, M. & Balakrishnan, A. (2019). Appreciating vs venerating cultural outgroups: The psychology of cosmopolitanism and xenocentrism. International Marketing Review, 36(3), 416-444. https://doi.org/10.1108/IMR-09-2018-0260

Chen, B. (2020). When foreign brands appear local, and local brands appear foreign: The asymmetric effects of foreign branding in developing countries. Asia Pacific Journal of Marketing and Logistics, 33(1), 145-161. https://doi.org/10.1108/APJML-06-2019-0396

Cleveland, M., Papadopoulos, N. & Laroche, M. (2022). Global consumer culture and national identity as drivers of materialism: an international study of convergence and divergence. International Marketing Review, 39(2), 207-241. https://doi.org/10.1108/IMR-02-2021-0097

Diamantopoulos, A. Herz, M. & Koschate-Fischer, N. (2017). The EU as superordinate brand origin: an entitativity perspective. International Marketing Review, 34(2), 183-205. https://doi.org/10.1108/IMR-03-2015-0097

Dey, B.L., Alwi, S., Yamoah, F., Agyepong, S.A., Kizgin, H. & Sarma, M. (2019). Towards a framework for understanding ethnic consumers’ acculturation strategies in a multicultural environment: A food consumption perspective. International Marketing Review, 36(5), 771-804. https://doi.org/10.1108/IMR-03-2018-0103

Esmaeilpour, F. & Abdolvand, M.A. (2016). The impact of country-of-origin image on brand loyalty: evidence from Iran. Asia Pacific Journal of Marketing and Logistics, 28(4), 709-723. https://doi.org/10.1108/APJML-09-2015-0143

Field, A. (2000). Discovering statistics using SPSS for Windows. Thousand Oaks: Sage Publication.

Fernández-Ferrín, P. Bande, B., Martín-Consuegra, D., Díaz, E. & Kastenholz, E. (2020). Sub-national consumer ethnocentrism and the importance of the origin of food products: an exploratory analysis. British Food Journal, 122(3), 995-1010. https://doi.org/10.1108/BFJ-09-2019-0746

Güngördü Belbağ, A. (2021). Diversity and consumer dispositions towards foreign countries in an emerging market. International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-01-2021-0019

Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage.

Hofstede, G. (2001), Culture’s Consequences: Comparing Values, Behaviours, Institutions, and Organizations Across Nations, 2nd ed., Sage, Thousand Oaks, CA.

Hofstede, G., Hofstede, G. J. & Minkov, M. (2010). Cultures and Organizations: Software of the Mind, New York, NY: McGraw-Hill

He, H. & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, August 2020, 176-182. https://doi.org/10.1016/j.jbusres.2020.05.030

Hofstede Insights (2020). National culture. https://hi.hofstede-insights.com/national-culture

John, A.J. & Brady, M.P. (2011). Exploration of the dimensionality of the consumer ethnocentric scalein Mozambique. Journal of African Business, 12(1), 114-132. https://doi.org/10.1080/15228916.2011.555275

Lee Park, C. & Paiva, E.L. (2018). How do national cultures impact the operations strategy process? International Journal of Operations and Production Management, 38(10), 1937-1963. https://doi.org/10.1108/IJOPM-03-2017-0145

Lee, S., (2020). When does the developing country brand name alleviate the brand origin effect? Interplay of brand name and brand origin. International Journal of Emerging Markets, 15(2), 387-402. https://doi.org/10.1108/IJOEM-10-2018-0543

Lin, C.-P., Huang, C.-J., Lin, H.-M. & Chuang, C.-M. (2020). The origin of the country-of-origin image: the role of law. Journal of Product and Brand Management, 29(5), 617-635. https://doi.org/10.1108/JPBM-08-2018-1968

Lee, H.-M., Chen, T., Chen, Y.-S., Lo, W.-Y. & Hsu, Y.-H. (2021). The effects of consumer ethnocentrism and consumer animosity on perceived betrayal and negative word-of-mouth. Asia Pacific Journal of Marketing and Logistics, 33(3), 712-730. https://doi.org/10.1108/APJML-08-2019-0518

Mojić, D. (2010). Klasifikacija kultura i njihov značaj za proučavanje organizacija. Ekonomske teme, 34(1), 299-315.

Marinković, V. (2017). Efekti animoziteta prema Evropskoj Uniji i patriotizma na potrošački etnocentrizam građana Srbije. Ekonomski Horizonti, 19(1), 3-15. https://doi.org/10.5937/ekonhor1701003M

Moonen, P. (2017). The impact of culture on the innovative strength of nations: A comprehensive review of the theories of Hofstede, Schwartz, Boisot and Cameron and Quinn. Journal of Organizational Change Management, 30(7), 1149-1183. https://doi.org/10.1108/JOCM-08-2017-0311

Mueller, A., Damacena, C. & Torres, C.V. (2020). The Xenocentrism scale in Brazil: validation with wine consumers. International Journal of Wine Business Research, 32(3), 423-440. https://doi.org/10.1108/IJWBR-05-2019-0035

Nunnally, J. C. (1978). Introduction to Psychological Measurement. New York: McGraw-Hill.

Nath Sanyal, S. & Datta, S.K. (2011). The effect of country of origin on brand equity: an empirical study on generic drugs. Journal of Product and Brand Management, 20(2), 130-140. https://doi.org/10.1108/10610421111121125

Prince, M., Davies, M.A.P., Cleveland, M. & Palihawadana, D. (2016). Here, there and everywhere: a study of consumer centrism. International Marketing Review, 33(5), 715-754. https://doi.org/10.1108/IMR-06-2014-0205

Pratono, A.H. & Arli, D. (2020). Linking global consumer culture and ethnocentric consumerism to global citizenship: exploring the mediating effect of cultural intelligence. International Journal of Sociology and Social Policy, 40(7/8), 659-675. https://doi.org/10.1108/IJSSP-10-2019-0212

Raza, S., Abu Bakar, H. & Mohamad, B. (2019). The effects of advertising appeals on consumers’ behavioural intention towards global brands: The mediating role of attitude and the moderating role of uncertainty avoidance. Journal of Islamic Marketing, 11(2), 440-460. https://doi.org/10.1108/JIMA-11-2017-0134

Rojas-Méndez, J.I. & Chapa, S. (2020). X-Scale: a new scale to measure consumer xenocentrism. Marketing Intelligence and Planning, 38(3), 354-368. https://doi.org/10.1108/MIP-01-2019-0062

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

Shankarmahesh, M. N. (2006). Consumer ethnocentrism: an integrative review of its antecedents and consequences. International Marketing Review, 23(2), 146-172.

Souiden, N., Pons, F. & Mayrand, M. (2011). Marketing high‐tech products in emerging markets: the differential impacts of country image and country‐of‐origin's image. Journal of Product and Brand Management, 20(5), 356-367. https://doi.org/10.1108/10610421111157883

Son, J., Jin, B. and George, B. 2013. Consumers' purchase intention toward foreign brand goods. Management Decision, 51(2): 434-450.

Souiden, N., Ladhari, R. and Chang, L. (2018). Chinese perception and willingness to buy Taiwanese brands: The role of ethnocentrism and animosity. Asia Pacific Journal of Marketing and Logistics, 30(4), 816-836. https://doi.org/10.1108/APJML-09-2017-0203

Srivastava, A., Gupta, N. & Rana, N.P. (2021). Influence of consumer cosmopolitanism on purchase intention of foreign vs local brands: a developing country perspective. International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-01-2021-0057

Yen, Y.-S. (2018). Extending consumer ethnocentrism theory: the moderating effect test. Asia Pacific Journal of Marketing and Logistics, 30(4), 907-926.

Zhang, M. Zhang, W. & Zhang, S. (2015). National culture and firm investment efficiency: international evidence. Asia-Pacific Journal of Accounting and Economics, 23(1), 1-21 https://doi.org/10.1080/16081625.2015.1027714

Zdravković, S., Peković, J. & Jovanović, A. (2020a). Uticaj izbegavanja neizvesnosti na prihvatanje stranih brendova- medijatorski efekat referentnih grupa. Symposium on Operational Research, SYM-OP-IS, Septembra 2020, Beograd: Fakultet organizacionih nauka.

Zdravković, S., Šapić, S. & Filipović, J. (2020b). Analiza socio-psiholoških faktora potrošačkog etnocentrizma- moderatorski efekat nacionalnog identiteta. Marketing- Časopis za marketing teoriju i praksu, 51(2), 77-87, https://doi.org/10.5937/markt2002077Z

Zakaria, N., Wan-Ismail, W.-N.A. and Abdul-Talib, A.-N. (2021). Seriously, conspicuous consumption? The impact of culture, materialism and religiosity on Malaysian Generation Y consumers' purchasing of foreign brands, Asia Pacific Journal of Marketing and Logistics, 33(2), 526-560. https://doi.org/10.1108/APJML-07-2018-0283

Zdravković, S., & Pekovcić, J. (2021a). Uticaj potrošačkog kosmopolitizma i ksenocentrizma na prihvatanje stranih brendova- moderatorski efekat imidža zemlje porekla. Symposium on Operational Research, SYM-OP-IS, Banja Koviljača, Septembra 2021, str. 451-456.

Zdravković, S. &Peković, J. (2021b). Cultural intelligence and heritage impact on choosing foreign tourist destination. Hotel and Tourism Management, 9(1), 27-42. https://doi.org/10.5937/menhottur2101027Z

Zdravković, S. (2021). Imidž zemlje porekla i potrošački ksenocentrizam u kontekstu formiranja stavova potrošača i lojalnosti prema stranim brendovima- moderatorski efekat kulturalne inteligencije. Marketing- Časopis za marketing teoriju i praksu, 52(1): 12-22. DOI: 10.5937/markt2101012Z

Šapić, S. & Golo, J. (2017). Uticaj dimenzija kulture na stavove i namere potrošača prema stranim i domaćim proizvodima. Marketing- Časopis za marketing teoriju i praksu, 48(4), 235-242. https://doi.org/10.5937/Markt1704235S

Downloads

Published

2022-12-30

How to Cite

Zdravković, S. (2022). Avoiding uncertainty, consumer ethnocentrism and xenocentrism, the image of the country of origin, as determinants of acceptance of foreign brands. BizInfo Blace, 13(2), 13-20. https://doi.org/10.5937/bizinfo2202013Z

Similar Articles

1-10 of 75

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)