One More Time: Does Country Image Influence Consumers' Willingness to Pay?

Author(s)
Adamantios Diamantopoulos, Michaela Matarazzo, Anastasiya Petrychenko
Abstract

Drawing on equity theory and applying van Westendorp’s price sensitivity meter (PSM), we investigate the impact of country image assessments on consumers’ willingness-to-pay (WTP) while controlling for several consumer traits (consumer ethnocentrism, cosmopolitanism, xenocentrism, price sensitivity and product involvement). We find that country image positively impacts WTP but this relationship is non-linear, indicating diminishing returns. We also find that consumer xenocentrism and price sensitivity partly counteract the positive effects of country image by lowering consumers’ WTP. Implication for research and practice are considered and suggestions for future research made.

Organisation(s)
Department of Marketing and International Business
External organisation(s)
Università degli Studi „Guglielmo Marconi“
Publication date
09-2020
Peer reviewed
Yes
Austrian Fields of Science 2012
502052 Business administration, 502020 Market research
Keywords
Portal url
https://ucrisportal.univie.ac.at/en/publications/a555690c-003f-44e2-957a-85c4dad7eedb