Consumer animosity in the global value chain: The effect of international production shifts on willingness to purchase hybrid products

Funk, Charles; Arthurs, Jonathan D.; Treviño, Len J.; Joireman, Jeff

doi:10.1057/jibs.2009.29

Cited by 101 publications

(79 citation statements)

References 31 publications

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“…This strategy is in line with recent research on hybrid or binational products, those designed and manufactured in different countries (Verlegh and Steenkamp, 1999), that indicates that the latter characteristic seems to moderate consumer judgments and purchase intentions of these products (Funk, Arthurs, Treviño and Joireman, 2010). Literature shows that when a product"s country-of-origin is one towards which the consumer harbours animosity, the country of manufacture may alter product judgment and boycott intentions.…”

Section: Research Contextsupporting

confidence: 82%

The influence of religiously motivated consumer boycotts on brand image, loyalty and product judgment

Abosag

Farah

2014

European Journal of Marketing

113

148

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Purpose – The purpose of this paper was to examine the influence of religiously motivated boycotts, such as the one conducted in Saudi Arabia against Danish companies, on corporate brand image, customer loyalty and product judgment. Despite a growing research interest in understanding the effects of different types of consumer animosities on companies’ performance, there appears to be a scarcity of studies addressing the specific effects of religious animosity. Religious animosity is considered as an additional type which may have more stable and longer-term impacts than other animosities on behaviour. Design/methodology/approach – The study was based on a two-stage design: an exploratory qualitative stage involving 11 in-depth interviews, followed by a more comprehensive quantitative stage designed to test a proposed theoretical model. Data was collected from Saudi customers of the Danish company Arla Foods in Saudi Arabia. Data was analysed using structural equation model (LISREL 8). Findings – The model confirms that boycotting have strong negative impact on brand image and consumer loyalty but does not influence consumers’ product judgment. Practical implications – Religious boycotts have significant consequences on both corporate profits and brand image. The study provides clear steps for companies to combat the influence of religious boycotts especially in relation to brand image and customer loyalty. Originality/value – The study tested the influence of consumer religious boycotts on brand image and customer loyalty. Religious animosity was found to cause a more persistent boycott that negatively impacts brand image and weakens customer loyalty. However, by and large, boycotting was found not to have any significant impact on product judgment.

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Section: Research Contextsupporting

confidence: 82%

The influence of religiously motivated consumer boycotts on brand image, loyalty and product judgment

Abosag

Farah

2014

European Journal of Marketing

113

148

View full text Add to dashboard Cite

show abstract

“…If this were the sole reason for a decline in loyalty levels, the common level of loyalty for IBPA brands should be situated somewhere between foreign and local brands, but it should not drop below the level of the general effect of branded products in the market. This would correspond with the argument of Funk et al (2010), who demonstrate that purchase intentions decrease for products which are manufactured partly in countries the consumers hold animosity against. Funk et al (2010) argue that this effect would develop similarly to the effect witnessed if these products wholly originate from these countries.…”

Section: Control Variablesupporting

confidence: 79%

A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?

Heinberg

Ozkaya

Taube

2015

J. of the Acad. Mark. Sci.

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The literature that focuses on acquisitions from the consumer perspective has generally neglected the brand strategy of cross-border acquisitions in an emerging market by a developed country brand. However, research in this field appears necessary, considering the high failure rate of M&As, the common practice of Western/global companies of augmenting their brand portfolio through local acquisitions, and the sensitivity of emerging market consumers to foreign brands. The present study is an initial attempt to understand the loyalty of consumers toward the acquired brands. Moreover, we investigate how such an acquisition affects the relationship between quality and loyalty, as well as between price and loyalty. For fast-moving consumer goods brands in China, the findings indicate that from a customer's perspective acquiring a local brand is not an advisable strategy for foreign brand conglomerates, because such an international takeover may decrease consumer loyalty. Additionally, consumers tend to expect higher quality after the takeover but may not want to pay more for the quality increase.

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“…Besides, including a component on the accurate knowledge of products' country-of-origin or the effects of hybrid products to research related to boycotting motivation is also an interesting future research venue. In fact, some recent research on hybrid or bi-national products, those that have been designed and manufactured in different countries (Chao, 1993;Verlegh & Steenkamp, 1999) has indicated that these products seem to moderate consumer judgments and purchase intentions (Funk, Arthurs, Treviño, & Joireman, 2010). Future studies could look at the latter impact on consumer boycott decisions.…”

Section: Resultsmentioning

confidence: 98%

An Expectancy-Value Approach to the Study of Beliefs Underlying Consumer Boycott Intention

Farah¹

2014

IJBM

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In order to (a) investigate the expectancy-value model supporting the beliefs behind boycott intentions in the theory of planned behaviour, and (b) to identify the specific beliefs that could be used as targets in counter-boycott participation interventions, this paper adopts a socio-cognitive approach to examine the beliefs underpinning consumers' boycott intention. A randomized systematic sample of 500 respondents completed a questionnaire measuring both the indirect and direct TPB variables with respect to boycotting. The statistical results confirmed the validity of the expectancy-value principle in the TPB. By delineating the beliefs that were statistically significant predictors of direct TPB measures and intention, the study identified belief targets that can be utilized to develop countermeasures persuading consumers not to boycott American companies in the Arab World. This application of a socio-psychological theory to consumers' boycott behaviour yielded significant contributions both at the empirical and the managerial levels.

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Consumer animosity in the global value chain: The effect of international production shifts on willingness to purchase hybrid products

Cited by 101 publications

References 31 publications

The influence of religiously motivated consumer boycotts on brand image, loyalty and product judgment

The influence of religiously motivated consumer boycotts on brand image, loyalty and product judgment

A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?

An Expectancy-Value Approach to the Study of Beliefs Underlying Consumer Boycott Intention

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