Consumers' Use of Ambiguous Product Cues: The Case of “Regionality” Claims

Author(s)
Marc Herz, Adamantios Diamantopoulos, Petra Riefler
Abstract

Ambiguous product cues—cues with multiple interpretation options—may impact consumer decision making. One such ambiguous cue is the designation of a product as “regional” without specifying the exact origin of the product. Here, consumers typically equate “regional” with spatial proximity, yet legally the use of regional labels does not necessarily reflect such proximity. A potential mismatch can occur between consumers' interpretation of regionality and firms' use of regional communication claims, leading to potential consumer deception and harmed consumer welfare. Drawing upon the accessibility-diagnosticity-framework and Elaboration-Likelihood-Model, this paper examines consumers' responses to different regionality cues. Across two studies, we find that communicated regionality cues heighten consumers' product evaluations resulting from (mis)perceived spatial proximity. Informing consumers about the true product results in unfavorable evaluations if that origin is spatially distant. Our findings call for regulation of regional product labels and highlight the need for communication standards in consumer markets.

Organisation(s)
Department of Marketing and International Business
External organisation(s)
kleinundpläcking, University of Natural Resources and Life Sciences
Journal
Journal of Consumer Affairs
Volume
57
Pages
1395-1422
No. of pages
28
ISSN
0022-0078
DOI
https://doi.org/10.1111/joca.12548
Publication date
06-2023
Peer reviewed
Yes
Austrian Fields of Science 2012
502052 Business administration, 502019 Marketing
Keywords
ASJC Scopus subject areas
Marketing, Economics, Econometrics and Finance(all), Sociology and Political Science
Portal url
https://ucrisportal.univie.ac.at/en/publications/a01472a0-b7c5-4471-8dea-c25993f93ae6