FOREIGN VERSUS DOMESTIC PRODUCTS IN CROSS-BORDER E-COMMERCE: A CONCEPTUAL FRAMEWORK
Keywords:
Foreign, Domestic product, Cross-Border E-Commerce (CBEC), Ethnocentrism, Conceptual Framework
Abstract
We aim to add value to the ongoing inconsistencies by extracting models from past studies and building an overarching framework for understanding the purchase intentions of foreign and domestic products in the cross-border electronic commerce (CBEC) context. We review significant works in various disciplines and systematically extend abstractions from diverse models and theories toward iterative methods. We deconstruct and (re)construct them into the framework. We identify the importance of segmenting consumer engagement with global-local discourses and screen samples not engaging with the country of origin (COO) discussions. We pinpoint the significance of the underlying theories of social class, rational choice, social identity, COO, substitute versus complementary, schema, consumer culture, adaptive structuration, and the unified theory of acceptance and use of technology. We highlight the urgency of drawing from multidisciplinary approaches to acknowledge the complex relationship between constructs of product types, social class, ethnocentrism, informedness, benefits, perceived risks, and the purchase intention of domestic and foreign products. Researchers should refine models based on consumer segments and test the framework to examine its usability. Policymakers and international marketers can refine policies and strategies by incorporating the framework's critical success factors. We fill the wide research gap in international marketing and information systems literature by offering an integrative approach that broadens our understanding of foreign versus domestic product controversies.
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References
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Aljukhadar, M., Boeuf, B. and Senecal, S. (2021), “Does consumer ethnocentrism impact international shopping? A theory of social class divide”, Psychology and Marketing, Vol. 38 No. 5, pp. 735–744.
Aramendia-muneta, M.E. (2016), “The Influence of Ethnocentricity in Purchase Behavior and Ethnocentric Attitudes”, International Journal of Business Anthropology, Vol. 6 No. 2, pp. 103–115.
Arnould, E.J. and Thompson, C.J. (2005), “Consumer Culture Theory (CCT): Reflections Twenty Years of Research”, Journal of Consumer Research, Vol. 31 No. 4, pp. 868–882.
Augusta, E.D., Mardhiyah, D. and Widiastuti, T. (2019), “Effect of country of origin image, product knowledge, brand familiarity to purchase intention Korean cosmetics with information seeking as a mediator variable: Indonesian women’s perspective”, Dermatology Reports, Vol. 11 No. S1:8014, pp. 7–10.
Balabanis, G. and Siamagka, N.-T. (2017), “Inconsistencies in the behavioural effects of consumer ethnocentrism: the role of brand, product category and country of origin”, International Marketing Review, Vol. 34 No. 2, pp. 166–182.
Bearden, W.O., Netemeyer, R.G. and Haws, K.L. (2011), Handbook of Marketing Scales: Multi-Item Measures for Marketing and Consumer Behavior Research, 3rd ed., SAGE Knowledge.
Berry, J.W., Olmedo, E. and Trimble, J.E. (1986), “Assessment of acculturation”, in Lonner, W.J. and Berry, J.W. (Eds.), Field Methods in Cross-Cultural Research and Methodology Series, Sage Publications, Inc, pp. 290–349.
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Burmeister, K. and Schade, C. (2005), “Status Quo Bias versus Variety Seeking”, Marketing ZFP, Vol. 27 No. JRM 1, pp. 14–25.
Buturak, G. and Evren, Ö. (2017), “Choice overload and asymmetric regret”, Theoretical Economics, Vol. 12 No. 3, pp. 1029–1056.
Chiu, C.M., Wang, E.T.G., Fang, Y.H. and Huang, H.Y. (2014), “Understanding customers’ repeat purchase intentions in B2C e-commerce: The roles of utilitarian value, hedonic value and perceived risk”, Information Systems Journal, Vol. 24 No. 1, pp. 85–114.
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Clarke, G., Thompson, C. and Birkin, M. (2015), “The emerging geography of e-commerce in British retailing”, Regional Studies, Regional Science, Routledge, Vol. 2 No. 1, pp. 371–391.
Creswell, J.W. (2012), Educational Research: Planning, Conducting and Evaluating Quantitative and Qualitative Research, edited by Smith, P.A., 4th ed., Pearson, Boston.
Davvetas, V. and Diamantopoulos, A. (2016), “How Product Category Shapes Preferences toward Global and Local Brands: A Schema Theory Perspective”, Journal of International Marketing, Vol. 23 No. 6, pp. 424–433.
DeSanctis, G. and Poole, M.S. (1994), “Capturing the Complexity in Advanced Technology Use: Adaptive Structuration Theory”, Organization Science, Vol. 5 No. 2, pp. 121–147.
Dumanska, I., Hrytsyna, L., Kharun, O. and Matviiets, O. (2021), “E-commerce and m-commerce as global trends of international trade caused by the covid-19 pandemic”, WSEAS Transactions on Environment and Development, Vol. 17, pp. 386–397.
Gan, C. and Wang, W. (2017), “The influence of perceived value on purchase intention in social commerce context”, Internet Research, Vol. 27 No. 4, pp. 772–785.
Granzin, K.L. and Painter, J.J. (2001), “Motivational influences on ‘buy domestic’ purchasing: Marketing management implications from a study of two nations”, Journal of International Marketing, Vol. 9 No. 2, pp. 73–96.
Hall, J.D., Palsson, C. and Price, J. (2018), “Is Uber a substitute or complement for public transit?”, Journal of Urban Economics, pp. 1–6.
Hamin and Elliott, G. (2006), “A less-developed country perspective of consumer ethnocentrism and ‘country of origin’ effects: Indonesian evidence”, Asia Pacific Journal of Marketing and Logistics, Vol. 18 No. 2, pp. 79–92.
Han, J.H. and Kim, H.M. (2019), “The role of information technology use for increasing consumer informedness in cross-border electronic commerce: An empirical study”, Electronic Commerce Research and Applications, Elsevier, Vol. 34 No. September 2018, p. 100826.
Hashim, N.A., Husin, Z., Lebai Othman, I. and Md Zain, A.Y. (2017), “the Roles of Perceived Risks and Price on the Purchase Intention of China-Made Home Appliances Among Career Women in Malaysia”, International Journal of Management Studies, Vol. 24 No. 1, pp. 169–185.
Herz, M. and Diamantopoulos, A. (2017), “I use it but will tell you that i don’t: Consumers’ Country-of-origin cue usage Denial”, Journal of International Marketing, Vol. 25 No. 2, pp. 52–71.
Jabareen, Y. (2009), “Building a Conceptual Framework: Philosophy, Definitions, and Procedure”, International Journal of Qualitative Methods, Vol. 8 No. 4, pp. 49–62.
Josiassen, A. (2011), “Consumer Disidentification and Its Effects on Domestic Product Purchases: An Empirical Investigation in the Netherlands”, Journal of Marketing, Vol. 75 No. 2, pp. 124–140.
Kim, S. and Eastin, M.S. (2011), “Hedonic tendencies and the online consumer: An investigation of the online shopping process”, Journal of Internet Commerce, Vol. 10 No. 1, pp. 68–90.
Kujath, C.L. (2011), “Facebook and MySpace: Complement or Substitute for Face-to-Face Interaction?”, Cyberpsychology, Behavior, and Social Networking, Vol. 14 No. 1–2, pp. 75–78.
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Liebermann, Y. and Stashevsky, S. (2009), “Determinants of online shopping: Examination of an early-stage online market”, Canadian Journal of Administrative Sciences, Vol. 26 No. 4, pp. 316–331.
Mady, T. (2017), “What makes up intentions to purchase the pioneer? A theory of reasoned action approach in India and the USA”, International Journal of Emerging Markets, Vol. 13 No. 5, pp. 734–757.
Mead, N. and Bower, P. (2000), “Patient-centredness: A conceptual framework and review of the empirical literature”, Social Science and Medicine, Vol. 51 No. 7, pp. 1087–1110.
Micevski, M., Halkias, G. and Herz, M. (2019), “Multiple consumer identities and the crossover effect of the EU identity in predicting domestic and foreign product preferences”, Journal of Business Research, Elsevier, Vol. 104 No. December 2017, pp. 622–631.
Nielsen, B.B. and Raswant, A. (2018), “The selection, use, and reporting of control variables in international business research: A review and recommendations”, Journal of World Business, Elsevier, Vol. 53 No. 6, pp. 958–968.
Perbawaningsih, Y., Dwi, I. and Rejeki, N.S. (2020), “Audience Section”, The Online Conference of International Association for Media and Communication Research (IAMCR), IAMCR, Tampere, pp. 17–18.
Rahmaningtyas, A., Hartono, S. and Suryantini, A. (2017), “Factors Affecting Online Purchasing Of Local Food”, Agro Ekonomi, Vol. 28 No. 2, pp. 189–204.
Rains, S.A. and Bonito, J.A. (2017), “Adaptive Structuration Theory”, The International Encyclopedia of Organizational Communication, pp. 1–9.
Ramadanty, M.L. and Kartikasari, D. (2020), “Purchase Intention of e-Payment : The Substitute or Complementary Role of Purchase Intention of E-Payment : The Substitute or Complementary Role of Brand , Sales Promotions , and Information Quality”, 2nd International Conference on Applied Economy and Social Science, Batam, pp. 298–308.
Riley, D. (2017), “Bourdieu’s class theory: The academic as revolutionary”, Catalyst: A Journal of Theory and Strategy, Vol. 1 No. 2 (Summer), pp. 107–136.
Samuelson, W. and Zeckhauser, R. (1988), “Status quo bias in decision making”, Journal of Risk and Uncertainty, Vol. 1 No. 1, pp. 7–59.
Shankarmahesh, M.N. (2006), “Consumer ethnocentrism: An integrative review of its antecedents and consequences”, International Marketing Review, Vol. 23 No. 2, pp. 146–172.
Shimp, T.A. and Sharma, S. (1987), “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”, Journal of Marketing Research, Vol. XXIV No. 9, pp. 280–289.
Shocker, A.D., Bayus, B.L. and Kim, N. (2004), “Product Complements and Substitutes in the Real World: The Relevance of ‘Other Products’”, Journal of Marketing, Vol. 68 No. 1, pp. 28–40.
Silaban, D., Jaunanda, M. and Ferdinand, F. (2020), “Perceived Risk and Intention to Purchase From Overseas Sellers In Shopee: Jabodetabek Consumer Perspective”, Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Unsrat, Vol. 7 No. 2, pp. 259–271.
Soebandhi, S., Kusuma, R.A., Subagyo, H.D., Sukoco, A., Hermanto, D. and Bin Bon, A.T. (2019), “Utilitarian and hedonic motivations: Its influences on search and purchase intention on instagram”, Proceedings of the International Conference on Industrial Engineering and Operations Management, Vol. 2019 No. MAR, pp. 1744–1751.
Spector, P.E. and Brannick, M.T. (2011), “Methodological urban legends: The misuse of statistical control variables”, Organizational Research Methods, Vol. 14 No. 2, pp. 287–305.
Steenkamp, J.B.E.M. and De Jong, M.G. (2010), “A global investigation into the constellation of consumer attitudes toward global and local products”, Journal of Marketing, Vol. 74 No. 6, pp. 18–40.
Strizhakova, Y. and Coulter, R. (2019), “Consumer cultural identity: local and global cultural identities and measurement implications”, International Marketing Review, Vol. 36 No. 5, pp. 610–627.
Tajfel, H. and Turner, J. (1979), “An Integrative Theory of Intergroup Conflict”, The Social Psychology of Intergroup Relations, Brooks/Cole, Monterey, CA, pp. 33–37.
Tavengerwei, R. (2018), “Using trade facilitation to assist MSMEs in E-commerce in developing countries”, Journal of International Economic Law, Vol. 21 No. 2, pp. 349–378.
Uncles, M. and Sauaraz, J. (2000), “Purchasing Local and International Brands: The Intention-Behaviour Link Among Arabs, Asians and Westerners in the U.A.E”, Anzmac 2000 Visionary Marketing for the 21st Century: Facing the Challenge, pp. 1301–1305.
Venkatesh, V. and Davis, F.D. (2000), “A Theoretical Exension of the Technology Acceptance Model: Four Longitudenal Field Studies”, Management Science, Vol. 46 No. 2, pp. 186–204.
Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. (2003), “User Acceptance of Information Technology: Toward a Unified View”, MIS Quarterly, Vol. 27 No. 3, pp. 425–478.
Venkatesh, V., Thong, J.Y.L. and Xu, X. (2012), “Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology”, MIS Quarterly: Management Information Systems Research Center, Unniversity of Minnesota, University of Minnesota, Vol. 36 No. 1, pp. 157–178.
Vo Kim, N. (2017), “Some determinants affecting purchase intention of domestic products at local markets in tien giang province, Vietnam”, Data Science and Pattern Recognition Ubiquitous International, Vol. 1 No. 2, pp. 43–52.
Wagner, G., Schramm-Klein, H. and Schu, M. (2016), “Determinants and Moderators of Consumers’ Cross-Border Online Shopping Intentions”, Marketing ZFP, Vol. 38 No. 4, pp. 214–227.
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Published
2023-05-30
How to Cite
Kartikasari, D., Almunawar, M., Ali, M., & binti Hj Sumardi, W. (2023, May 30). FOREIGN VERSUS DOMESTIC PRODUCTS IN CROSS-BORDER E-COMMERCE: A CONCEPTUAL FRAMEWORK. Jurnal Bisnis Dan Manajemen (JBM), 19(2), 44-59. https://doi.org/https://doi.org/10.23960/jbm.v19i2.918
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Articles
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