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Outbreaks of animosity against the West in China: effects on local brand consumption

Outbreaks of animosity against the West in China: effects on local brand consumption Local brands in emerging markets suffer from fierce competition and chronic disadvantages. The purpose of this paper is to investigate if outbreaks of animosity against the West (AAW) might benefit local brands by raising consumers’ willingness to pay (WTP) and willingness to buy (WTB).Design/methodology/approachThe study employed 2 methods: structural equation modeling (n=244 Chinese students); and experiment, multiple regression (n=676 Chinese students, different sample than those included in study 1).FindingsAAW is different from ethnocentrism and the measurement has good validity and reliability. After an outbreak of animosity, AAW increases Chinese consumers’ WTB local products. The WTP is also enhanced by AAW in such a situation. Under “normal” circumstances, there is no effect of AAW on the WTP. This might be due to the cost of substituting western goods for local ones (e.g. inferior perceived quality and other-signaling value). An outbreak of animosity presents a risk to consumers and thus lowers their overall WTP.Originality/valueThe study introduces the construct “AAW,” which stretches the animosity construct to an inter-regional level. On such a level, it is possible to find consequences of animosity on local brand consumption, which have not been the focus of previous studies. Additionally, this research introduces the concept of WTP to animosity research. The measurement is built on a real economic exchange and better represents the cost aspects of substituting one brand for another. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Marketing Review Emerald Publishing

Outbreaks of animosity against the West in China: effects on local brand consumption

International Marketing Review , Volume 34 (4): 22 – Jul 10, 2017

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0265-1335
DOI
10.1108/imr-07-2014-0222
Publisher site
See Article on Publisher Site

Abstract

Local brands in emerging markets suffer from fierce competition and chronic disadvantages. The purpose of this paper is to investigate if outbreaks of animosity against the West (AAW) might benefit local brands by raising consumers’ willingness to pay (WTP) and willingness to buy (WTB).Design/methodology/approachThe study employed 2 methods: structural equation modeling (n=244 Chinese students); and experiment, multiple regression (n=676 Chinese students, different sample than those included in study 1).FindingsAAW is different from ethnocentrism and the measurement has good validity and reliability. After an outbreak of animosity, AAW increases Chinese consumers’ WTB local products. The WTP is also enhanced by AAW in such a situation. Under “normal” circumstances, there is no effect of AAW on the WTP. This might be due to the cost of substituting western goods for local ones (e.g. inferior perceived quality and other-signaling value). An outbreak of animosity presents a risk to consumers and thus lowers their overall WTP.Originality/valueThe study introduces the construct “AAW,” which stretches the animosity construct to an inter-regional level. On such a level, it is possible to find consequences of animosity on local brand consumption, which have not been the focus of previous studies. Additionally, this research introduces the concept of WTP to animosity research. The measurement is built on a real economic exchange and better represents the cost aspects of substituting one brand for another.

Journal

International Marketing ReviewEmerald Publishing

Published: Jul 10, 2017

Keywords: Emerging markets; Animosity; Willingness to pay; Local brands; Willingness to buy

References