Consumer response to state-of-origin labels: the moderating role of residency
ISSN: 0736-3761
Article publication date: 23 July 2020
Issue publication date: 13 October 2020
Abstract
Purpose
Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase intentions. Likewise, little is known about when the state-of-origin (SOO) information enhances, has no effect or has a negative effect on consumer attitudes and purchase intentions. Primarily drawing on the country-of-origin literature, this study aims to examine the influence of SOO label information and the moderating role of state residency.
Design/methodology/approach
To test five hypotheses, the authors conducted a survey (Study 1) and an experiment (Study 2). The analyses included content analysis, regression and ANOVA.
Findings
The findings show that for certain products, moderate-to-strong product–state associations exist. However, when the associations are weak, consumers show bias for products made in their (vs other) states. The findings also show that when consumers evaluate their state products, normative (vs cognitive) reasons drive their attitudes, but that when they assess products from states other than their state of residency, cognitive (vs normative) reasons drive attitudes. Additionally, economic sustainability seems a powerful motivator for buying products made in their state of residency.
Practical implications
Companies should take advantage of positive biases for their products in the states in which they produce products. However, when companies market their products outside their states of production, in some cases, they should consider deemphasizing SOO information unless there is a strong product–state association present among consumers outside of the state.
Originality/value
This paper adds value by providing new insights for designing product origin labeling programs. Suggestions for future research and marketing strategies for practitioners who want to use SOO as a branding strategy are offered.
Keywords
Acknowledgements
The authors would like to thank Drew Martin, Chanchai Tangpong, and Kyle Wilson, for providing feedback on earlier versions of this paper. All correspondance should be directed to Jae Min Jung.
Citation
Jung, J.M., Jones, J., Haugtvedt, C.P. and Banerjee, S. (2020), "Consumer response to state-of-origin labels: the moderating role of residency", Journal of Consumer Marketing, Vol. 37 No. 7, pp. 761-773. https://doi.org/10.1108/JCM-11-2019-3514
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited