This study uses a multidimensional unfolding approach to examine the preference patterns of U.K. consumers for domestic products and those originating from specific foreign countries for eight product categories. Results indicate that the observed variability in preferences is linked to consumer ethnocentrism. However, the latter’s capability in explaining consumer bias in favor of domestic products is dependent both on the specific country of origin and the particular product category. Implications of the findings are considered and future research directions identified.
This is the published version of the paper. This version of the publication may differ from the final published version. Permanent repository link: http://openaccess.city.ac.uk/17981/ Link to published version: http://dx. The authors apply a classification perspective to (1) examine the extent to which consumers can identify the correct country of origin (COO) of different brands of consumer durables, (2) investigate the factors facilitating/hindering correct COO identification , and (3) trace the implications of correct/incorrect COO identification on brand evaluation. The results from a U.K. sample indicate that consumers' ability to classify brands correctly according to their origin is limited and also reveal substantial differences in the classification of different brands to their COO. Moreover, the key antecedent of correct COO identification is consumer ethnocentrism, with sociodemographics (e.g., age, gender) also playing a role. Finally, the authors find that though there are differences in brand evaluations depending on whether the correct COO was identified, such differences are not observed for all brands investigated. Over the past 40 years, a large number of studies have found that consumers' product evaluations and buying intentions are related to the origins of the products (Papadopoulos and Heslop 2002, 2003). In general, this research, widely known as country-of-origin (COO) studies, supports the view that a product's origin indeed affects the way it will be perceived by consumers and the extent to which it will be preferred when it comes to making a buying decision (for relevant literature reviews, see Al
This paper investigates the relationship between corporate social responsibility (CSR) and the economic performance of corporations. It first examines the theories that suggest a relationship between the two. To test these theories, measures of CSR performance and disclosure developed by the New Consumer Group were analysed against the (past, concurrent and subsequent to CSR performance period) economic performance of 56 large UK companies. Economic performance included: financial (return on capital employed, return on equity and gross profit to sales ratios); and capital market performance (systematic risk and excess market valuation). The results supported the conclusion that (past, concurrent and subsequent) economic performance is related to both CSR performance and disclosure. However, the relationships were weak and lacked an overall consistency. For example, past economic performance was found to partly explain variations in firms’ involvement in philanthropic activities. CSR disclosure was affected (positively) by both a firm’s CSR performance and its concurrent financial performance. Involvement in environmental protection activities was found to be negatively correlated with subsequent financial performance. Whereas a firm’s policies regarding women’s positions seem to be more rewarding in terms of positive capital market responses (performance) in the subsequent period. Donations to the Conservative Party were found not to be related to companies’ (past, concurrent or subsequent) financial and/or capital performance.
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