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

Author

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  • Charles A Funk

    (College of Business and Management, Northeastern Illinois University, Chicago, USA)

  • Jonathan D Arthurs

    (Department of Management and Operations, College of Business, Washington State University, Pullman, USA)

  • Len J Treviño

    (College of Business, Loyola University New Orleans, USA)

  • Jeff Joireman

    (Department of Marketing, College of Business, Washington State University, Pullman, USA)

Abstract

The escalation of international offshoring and outsourcing in recent years has resulted in a proliferation of “hybrid products” for the typical multinational enterprise, with multiple country affiliations for branding, design, manufacture, assembly and parts sourcing. However, little has been written regarding the impact of consumer animosity on such hybrid activities, or the role of universal values in a hybrid production animosity model. In this paper we extend the consumer animosity literature to a firm's global integration activities for hybrid products. We posit that consumers’ willingness to purchase (WTP) a complex hybrid product is negatively affected by partial production shifts to an animosity-evoking country, and that self-reported animosity toward the country predicts lower WTP above and beyond consumer ethnocentrism and perceived product quality. In addition, we hypothesize a negative relationship between conservation values and WTP hybrid foreign products, and a positive relationship between openness values and WTP hybrid foreign products. A study of 319 US consumers revealed consistent support for these hypotheses, with the exception of the conservation values – WTP relationship. Practical implications and future research directions are discussed.

Suggested Citation

  • Charles A Funk & Jonathan D Arthurs & Len J Treviño & Jeff Joireman, 2010. "Consumer animosity in the global value chain: The effect of international production shifts on willingness to purchase hybrid products," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 639-651, May.
    • Handle: RePEc:pal:jintbs:v:41:y:2010:i:4:p:639-651
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    Cited by:

    1. Fong, Cher-Min & Chang, Hsing-Hua Stella & Lin, Mong-Ching & Chen, I-Hung, 2022. "Reexamining emerging market animosity toward western developed countries: A social dilemma in physical retailing consumption under normative influence," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    2. islam hassouneh, 2016. "Israeli Products in the Eyes of Palestinians," Proceedings of Business and Management Conferences 4406895, International Institute of Social and Economic Sciences.
    3. Fong, Cher-Min & Lee, Chun-Ling & Du, Yunzhou, 2013. "Target reputation transferability, consumer animosity, and cross-border acquisition success: A comparison between China and Taiwan," International Business Review, Elsevier, vol. 22(1), pages 174-186.
    4. Stanford A Westjohn & Peter Magnusson & Yi Peng & Hyeyoon Jung, 2021. "Acting on anger: Cultural value moderators of the effects of consumer animosity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1591-1615, October.
    5. Silvia Grappi, 2015. "Consumer boycott of companies implementing offshoring strategies," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2015(3), pages 123-138.
    6. Zdravkovic, Srdan & Magnusson, Peter & Miocevic, Dario & Westjohn, Stanford A., 2021. "Vicarious animosity: Taking sides on provocative issues," Journal of Business Research, Elsevier, vol. 124(C), pages 77-85.
    7. Khan, Hina & Daryanto, Ahmad & Liu, Chihling, 2019. "How anticipated regret influences the effect of economic animosity on consumers’ reactions towards a foreign product," International Business Review, Elsevier, vol. 28(2), pages 405-414.
    8. Martin Heinberg & H. Erkan Ozkaya & Markus Taube, 2016. "A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?," Journal of the Academy of Marketing Science, Springer, vol. 44(5), pages 586-607, September.
    9. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    10. Saeed Samiee & Leonidas C. Leonidou & Constantine S. Katsikeas & Bilge Aykol, 2024. "Research on country-of-origin perceptions: review, critical assessment, and the path forward," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(3), pages 285-302, April.
    11. Peter J Buckley & Jonathan P Doh & Mirko H Benischke, 2017. "Towards a renaissance in international business research? Big questions, grand challenges, and the future of IB scholarship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1045-1064, December.
    12. Cheah, Isaac & Phau, Ian & Kea, Garick & Huang, Yu An, 2016. "Modelling effects of consumer animosity: Consumers' willingness to buy foreign and hybrid products," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 184-192.
    13. ZHANG Geng & SU Shuitian, 2019. "Political Animosity in the Global Value Chain: Whether Taiwanese Consumers are willing to Purchase International Brand Made in China Mainland?," Working Papers 2019-07-06, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    14. Benedikt M. Brand & Theresa Maria Rausch & Jannika Brandel, 2022. "The Importance of Sustainability Aspects When Purchasing Online: Comparing Generation X and Generation Z," Sustainability, MDPI, vol. 14(9), pages 1-28, May.
    15. Herman Aguinis & Wayne F. Cascio & Ravi S. Ramani, 2017. "Science’s reproducibility and replicability crisis: International business is not immune," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(6), pages 653-663, August.
    16. De Nisco, Alessandro & Mainolfi, Giada & Marino, Vittoria & Napolitano, Maria Rosaria, 2016. "Effect of economic animosity on consumer ethnocentrism and product-country images. A binational study on the perception of Germany during the Euro crisis," European Management Journal, Elsevier, vol. 34(1), pages 59-68.
    17. Silvia Grappi & Simona Romani & Richard P. Bagozzi, 2020. "Consumer Reshoring Sentiment and Animosity: Expanding Our Understanding of Market Responses to Reshoring," Management International Review, Springer, vol. 60(1), pages 69-95, February.
    18. Fong, Cher-Min & Lee, Chun-Ling & Du, Yunzhou, 2015. "Consumer animosity and foreign direct investment: An investigation of consumer responses," International Business Review, Elsevier, vol. 24(1), pages 23-32.
    19. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.

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