Consumer attitudes to local and foreign products and the likely “country-of-origin” effect in “Buy Local” and “Made In …” campaigns are surveyed. First, the importance of country of origin in relation to other product attributes is considered. Second, country of origin is assessed as a surrogate indicator of product quality. Third, the likely effect of country of origin on consumer choice across a range of product categories is studied with brand name and price held constant. Across the product categories studied, respondents rated country of origin as significantly less important as a choice determinant than product quality and price. In addition, clear country-of-origin effects are identified. Consumers rate products as being of significantly different quality when the only variation between products is stated country of origin. Further, consumers express a marked preference for locally made products when price, technical features, and brand name are invariant, and where the locally made product is perceived to be superior or, at least, not significantly inferior to an overseas-made product. Where the locally made product is perceived to be of inferior quality to the imported product, consumers generally prefer an imported product. Thus, while consumers rate country of origin after product quality and price, when these other factors are equivalent, the fact that the product is promoted as locally made is a positive influence on product choice.
Purpose-This research seeks to explore the factors predicting customer loyalty in retail banking. Loyalty was measured in terms of a customer's willingness to recommend a bank and their intention to remain with their main bank short-term (in the next six months) and long-term (from six months to five years). Design/methodology/approach-The study was based on a mail survey of 1,951 individuals. Potential predictors were drawn from the literature and included in three separate regression models to model different types of loyalty. Findings-The results indicate that willingness to recommend is best predicted by affective attitude, overall satisfaction and empathy. Short-term behavioural intentions, however, were best predicted by overall satisfaction and responsiveness, while long-term intentions were predicted by overall satisfaction, affective attitude and empathy. The three models explained a substantial amount of the variation in the dependent variables: 71 per cent for willingness to recommend, 43 per cent for short-term intentions and 46 per cent for long-term intentions. Research limitations/implications-The study adds to the discussion of the relationship between perceived satisfaction, service quality and a customer's intentions to recommend a bank and/or remain a customer. The results also contribute to the development of more parsimonious models, suggesting that affective attitude, overall satisfaction, empathy and responsiveness together explain a large percentage of the variation in customers' intentions. Practical implications-Based on this study's findings, banks can profile customers with potential for defection based on only four variables. Originality/value-The results demonstrate the importance of satisfaction measures and some SERVQUAL dimensions in predicting loyalty in retail banking. It also found evidence that not all five SERVQUAL measures are needed to profile customers and predict loyalty.
Universally, governments promote the purchase of locally made products via a variety of ‘buy local’ campaigns. The common expectation is that the country-of-origin effect will work systematically to bias purchase preference in favour of locally-made products. Promotional activity employing appeals based on country-of-origin, and the practice of labelling products with the country of origin are premised on this expectation. A survey of 401 Australian consumers about their evaluations of an ‘Australian Made’ campaign showed high levels of campaign awareness and of its specific appeals, together with attitudes highly favourable to both the underlying concept and the operation of the campaign. These attitudes were widely held by respondents. Moreover, awareness and favourable attitudes towards the campaign were found to be associated with purchase predispositions, suggesting potential for behavioural change as an outcome of such campaigns.
The contemporary relevance of the traditional marketing concept is a source of continuing debate as marketers question its universal application across all situations. In the past, the emergence of the societal marketing concept and the marketing warfare metaphor represent challenges to the veracity of the marketing concept. It is argued that the continuing relevance of the marketing concept and the emergence of alternative paradigms can be linked to changes in the operating environments of firms or industries. The traditional marketing concept finds application in relatively placid, benign environments which characterised post‐war economies and markets. The emergence of the “societal marketing concept” can be linked to the emergence of turbulent environments which found expression in the consumerist and ecological movements in the 1970s. More recently, a new emphasis has emerged with the growing recognition of the importance of competitive forces in imperfectly competitive markets and the inadequacy of the marketing concept in such environments. These changing operating environments are examined, arguing that the traditional marketing concept is applicable in “placid clustered” environments, as described by Emery and Trist. Finally, the examples of three contemporary Australian industries are discussed to illustrate the relevance of the argument.
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