The impact of consumer ethnocentrism and country of origin sub-components for high involvement products on young Chinese consumers' product assessments

Purpose – The purpose of this paper is to examine the effect of country of origin (COO) sub-components (i.e. design, assembly and parts), as well as the extent to which consumer ethnocentrism tendencies interact with these COO sub-components for young Chinese consumers with regards to product quality assessments and purchase intentions.

Design/methodology/approach – A 2?×?2?×?2 factorial experimental design was used to examine the effects of the three sub-components of COO with two levels of sourcing location – Home (China) and Foreign (Germany), for two high involvement products (an automobile and a digital camera). Chinese students in China represented the sample of 272 respondents. MANOVA was used to examine the direct effects and interactions of the three COO components, as well as ethnocentrism, measured using the CETSCALE.

Findings – It was found that the three COO sub-components did not influence young Chinese consumers’ evaluation of product quality or purchase intentions. In addition, consumers’ level of ethnocentrism also did not have a direct effect on perceived product quality or purchase intentions. There was only one statistically significant interaction effect between ethnocentrism and country of parts for one of the two products. As such, COO dimensions and young Chinese consumers’ ethnocentrism appears to have limited influence on their assessments of product quality or purchase intentions. This may occur because young Chinese consumers perceive that hybrid products are the norm for high involvement products in China as these products are all these consumers have experienced.

Originality/value – The findings of this research dispute the commonly held belief and evidence that sub-components of COO have an impact on the perceptions of product quality and purchase intentions. Young Chinese consumers may be different to consumers from western countries because they have been extensively exposed to hybrid products. Given the size and growth potential of China, young Chinese are an important, under-researched segment within the Chinese market.

An empirical investigation of the effect of interaction justice perception on consumer intentions after complaining

This study examined how apology as interaction justice impacts on consumer perceptions of service recovery attempt.  Data was collected using hypothetical scenarios.  Two types of service failures were proposed and the impact of recovery action on each failure type was compared.  Findings include that there is direct effect of recovery action on consumer future intentions in both type of failures.  Implications and direction to the future research were proposed.

Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty

After a decade of research there is still much to understand about the relationship between loyalty programs and whether they deliver on their promise of building customer loyalty towards a store and understanding the mediating role of store satisfaction. Our results suggest that loyalty program as a summary construct, explains a significant proportion of the variance in store satisfaction and store loyalty. However, disaggregation of the construct into hard versus soft attributes, promotes greater specificity, precision and accuracy in uncovering the differential impact on store satisfaction and store loyalty.

Longitudinal study of Consumer Price Index (CPI) trends in core and non-core foods in Australia

Objective: This study examined trends in the price of healthy and less-healthy foods from 1989 to 2007 using the Australian Consumer Price Index (CPI).

Methods: CPI food expenditure classes were classified as 'core' or 'non-core'. Trends in the CPI were analysed to examine the rise in prices of core compared with non-core foods.

Results: On average, the CPI for core foods has risen at a slightly higher, though not statistically significant, rate than non-core foods. Furthermore, selected groupings reveal interesting patterns. 'Bread' has risen in price significantly more than 'cakes and biscuits', and 'milk' has risen in price significantly more than 'soft drinks, waters and juices'.

Conclusions and implications: This investigation of food price trends reveals notable differences between core and non-core foods. This should be investigated further to determine the extent to which this contributes to the higher prevalence of diet-related diseases in low socio-economic groups.

Gambling and corporate social responsibility (CSR) : re-defining industry and state roles on duty of care, host responsibility and risk management

During the 1990s, states embraced legalised gambling as a means of supplementing state revenue. But gaming machines (EGMs, pokies, VLTs, Slots) have become increasingly controversial in countries such as Australia, Canada and New Zealand, which experienced unprecedented roll-out of gaming machines in casino and community settings; alongside revenue windfalls for both governments and the gambling industry. Governments have recognised that gambling results in a range of social and economic harms and, similar to tobacco and alcohol, have introduced public policies predicated on harm minimisation. Yet despite these, gaming losses have continued to climb in most jurisdictions, along with concerns about gambling-related harms. The first part of this article discusses an emerging debate in Ontario Canada, that draws parallels between host responsibility in alcohol and gambling venues. In Canada, where government owns and operates the gaming industry, this debate prompts important questions on the role of the state, duty of care and regulation ‘in the public interest’ and on CSR, host responsibility and consumer protection. This prompts the question: Do governments owe a duty of care to gamblers?

The article then discusses three domains of accumulating research evidence to inform questions raised in the Ontario debate: evidence that visible behavioural indicators can be used with high confidence to identify problem gamblers on-site in venues as they gamble; new systems using player tracking and loyalty data that can provide management with high precision identification of problem gamblers and associated risk (for protective interventions); and research on technological design features of new generation gaming products in interaction with players, that shows how EGM machines can be the site for monitoring/protecting players. We then canvass some leading international jurisdictions on gambling policy CSR and consumer protection.

In light of this new research, we ask whether the risk of legal liability poses a tipping point for more interventionist public policy responses by both the state and industry. This includes a proactive role for the state in re-regulating the gambling industry/products; instituting new forms of gaming machine product control/protection; and reinforcing corporate social responsibility (CSR) and host responsibility obligations on gambling providers – beyond self-regulatory codes. We argue the ground is shifting, there is new evidence to inform public policy and government regulation and there are new pressures on gambling providers and regulators to avail themselves of the new technology – or risk litigation

The influence of delivery mode on consumer choice of university

This paper reports on an empirical investigation into the importance of study mode in the choice of university by Australian student-consumers, using conjoint methods. Traditional approaches to investigating student choice have overlooked study mode because they assume a norm of face-to-face attendance on-campus. Three segments were identified based on the relative importance which students placed on the university, study mode and tuition fees in making their choice, and the segments were distinguishable on some demographic and situational variables. The findings have relevance to universities across national and reputational markets in making their decisions about how to deliver educational products.

Brand salience and purchasing for consumer banking services : an empirically-based model

The research reported in this paper proposed and tested a model of brand salience for banking services, which incorporates knowledge and brand image as antecedents. A full model of brand salience has not been tested previously, nor has a model of brand salience for services been tested. A quasi-experimental method was utilised. Respondents undertook a free recall exercise using category cues, and then completed multi-item measures of brand knowledge, brand associations, and purchase likelihood. Past purchase was tested via a recall exercise. A usable sample of 270 respondents was gained, and the data were analysed using Structural Equation Modelling (SEM). Analysis of the data found support for a model of brand salience for the banking services category, and found a relationship between brand salience and most recent brand purchased. This paper contributes to the field of branding by proposing and testing a model of brand salience. The research reported in this paper may suggest that advertisers need to design their communications to increase accessibility of brands in the memory of consumers, and that the last brand purchased by consumers will have an effect on their next purchase decision, especially in the consumer banking category.

Environmental marketing claims : consumer interpretation and policy implications

Environmental claims communicate the concept of green brands. The purpose of this paper is to examine if environmental claims yield satisfactory results. Secondly, what policy measures would best encourage the adoption of environmental claims by businesses? Finally, how should businesses address practical and theoretical implications?The results suggests that in order to avoid misleading consumers, policy makers need to evaluate the public’s understanding of the meaning of claims, disallow the use of nonstandard claims by businesses, establish an education program and mandate their usage. There is also an indication that the usage of recognisable third party environmental labelling may be a more reliable.

Estimating impacts of consumer prices on house prices

Real estate is widely considered as a reliable hedge of inflation rate and there have been many literatures examining the inflation-hedging characteristics of the real estate.  The study described in the paper focuses on testing the significances of impacts of consumer price on house price in eight Australia's capital cities.  The Autoregressive Distributed Lag model is introduced to obtain  the estimates of the coefficient.  The significances of the impacts are defined as the accept probability of t statistics of the coefficients.  Analyses and comparisons of these significances suggested that the impacts of consumer prices on house prices depend on the inherent characteristics of cities. 

Consumer dissatisfaction with self-service technologies : an empirical exploration of its antecedents

Self-service technologies (SSTs) are commonplace for consumers' use, which is reflected in the growing body of literature that pertains to SSTs. The bulk of this literature has focussed on the adoption of SSTs, while relatively little attention has been given to consumers' consumption and evaluation of SSTs. Arguably, this is an area worthy of exploration in the light of frequent reports of consumers' dissatisfaction with SSTs. Therefore, this paper examines the antecedents of consumers' overall dissatisfaction with an SST encounter, and finds that consumers' dissatisfaction with the attributes of the SST and consumers' perceptions of causal controllability explain 50 per cent of the variance in consumers' overall dissatisfaction with the SST Insights into removing the causes of SST dissatisfaction are offered to managers, which are, arguably, important for consumer retention.

An investigation of corporate image, customer satisfaction and loyalty-more than just monkey business

Prior research into corporate branding, of which corporate image is a key construct, has focused primarily on products. There has, however, been limited academic research focusing on corporate branding in the leisure services sector. However, in an increasingly competitive environment, leisure services need to treat branding and image management as more than just "monkey business". This study addresses this by developing a model and empirically testing the relationships between corporate image, the dimensions of corporate image, customer satisfaction and loyalty in the context of a Zoological garden. As predicted, a strong relationship was found between corporate image, customer satisfaction and customer loyalty. Our results also suggest that three dimensions of corporate image (adventure, mission/vision and agreeableness) explain a significant propOliion of the variance in satisfaction and loyalty.

Competition in the mature markets of professional versus final consumer information products

Factors are explored of decision making in regard to buying and/or upgrading information products. Mature information product markets are considered. Comparing two cases - professional and final consumer information products - the decision making process is considered on the choice of product variant. We distinguish three groups of users according to their ultimate decisions to either not to upgrade the existing system, or to upgrade it with the existing provider, or to switch to another provider. Consumer decision is based on multiple characteristics of information product quality, network effects, price and switching costs, whereas producers have to compete not only with their competitors, but also with the previous versions of the own products. Based on the considered cases, differences in consumer priorities are discussed in the markets of professional versus final consumer information products.

Consumer socialization : the mother and daughter shopping experience

As part of a broader study of women and shopping, we found that many women often talked about shopping with their mothers. We pursued this theme and explored the mother and daughter shopping experience. We position this work within the literature of consumer socialization. The objectives of this part of the research project were 1) gain knowledge of why mother and daughters shop together and 2) uncover what is valued in the shopping experience. Interviews were conducted in person and supplemented using email. The women were aged 18-70. The women provide accounts of how consumer habits, preferences and experiences are transferred across generations. We found that the bonds between mother and daughter relationship are acted out when shopping and the reciprocal coaching occurs.