THE IMPACT OF SUSCEPTIBILITY TO GLOBAL CONSUMER CULTURE ON COMMITMENT AND LOYALTY: TESTING OF THE MODERATING EFFECT OF COUNTRY OF ORIGIN
- LanguageENG
- URLhttp://db.koreascholar.com/Article/Detail/314929
pp.414-415
As the global cosmetics market becomes more competitive, cosmetics firms need to be more market-oriented. Consumers purchase cosmetics products not only based on product-related attributes (e.g., function) but also for non-product-related reasons such as novelty and a pursuit of variety. They are exposed and have access to a variety of choices imported from other countries, which further complicates decision-making. Globalization offers great opportunities for marketers as it may help expand the horizon of the market beyond the domestic boundary. Given that the market is becoming more competitive, it is imperative to understand what influences purchase decisions of global consumers. This study considers and examines extended susceptibility to global consumer culture (Extended SGCC) and its effect on affective commitment, which in turn influences behavioral commitment and loyalty. We consider four elements of extended SGCC: conformity to consumer trend, social prestige, quality perception, and corporate social responsibility. In addition to examining the structural relationships among the variables, we test whether country of origin (COO) moderates the proposed relationships.
In order to test the model, we collected data from the purchasers of botanical cosmetics products that came from several different countries. A total of 798 users participated in the survey (425 users of domestic brands and 373 users of foreign brands). We performed several analyses related to the measurement model such as reliability analysis (Cronbach’s alphas), confirmatory factor analysis, and correlations analysis. Using SPSS 21.0 and AMOS 21.0, we estimated the structural model. The overall model fit indices include: χ2=1118.934 with df=239, p=0.000; GFI=0.884; AGFI=0.855; NFI=0.924; CFI=0.934; RMSEA=0.068; RMR=0.069.
The study finds that all elements of SGCC, with the exception of social prestige, have a significant influence on affective commitment. Specifically, conformity to consumer trend is found to have a significant effect on affective commitment. This means that consumers who conform to the global trend tend to have a higher level of commitment. One implication is that cosmetics firms may want to communicate to the consumers that their products fit the lifestyle corresponding to the global trend. Contrary to our expectation, social prestige is not found significantly related to affective commitment. It seems that social prestige is not an important factor in choosing botanical cosmetics products. This is understandable because, unlike some prestige products that consumers wear or use to be associated with their image or perceived quality (e.g., car, handbag), consumers may not purchase botanical cosmetics products to upgrade their social status. As expected, quality perception has a significant positive effect on affective commitment. The study shows that quality perception has the most significant impact on affective commitment. Corporate social responsibility (CSR) is also found to have a significant impact on affective commitment. The finding suggests that companies should be or remain active in taking initiatives that advance social welfare.
Our study shows that both affective and behavioral commitments are positively related to customer loyalty. Behavioral commitment, which consists of items representing purchase tendency, has a greater influence on loyalty than affective commitment. We anticipated that country of origin (COO) would moderate the proposed relationships. We find no significant moderating effect of COO. This can be interpreted that the structural relationships are upheld regardless of COO. It seems that global consumers evaluate foreign brands in the same manner as they do domestic brands. This suggests that cosmetics firms may want to be careful in differentiating their strategies based on countries as the return on investment may not be as handsome as they thought and global consumers may have more similarities than differences with respect to how they evaluate and purchase cosmetics products.