E-WOM is described as all informal communications directed at consumers through Internet-based technology related to the usage or characteristics of particular goods and services, or their sellers (Litvin, Goldsmith and Pan, 2008). In contrast with conventional WOM, e-WOM has unique characteristics. For instance, it often occurs in strangers or fellow consumers, and can be and can be anonymous (Goldsmith & Horowitz 2006; Sen & Lerman 2007). In this regard, people feel free to express opinions without identity disclosure (Goldsmith & Horowitz 2006).
INTRODUCTION
In a word dominated by social media, the diffusion of e-WOM is undoubtedly speeding up. Plus the international trade prevailing, people can experience products from all over the world at home, and they typically collect both positive and negative e-WOM for domestic and foreign brands with the aim of comprehensively evaluating the brands and their products. It is worth mentioning that in reality consumers often adheres to consumer ethnocentrism (CE) to counter the significant effects of imports on domestic economies and defend against foreign products in local markets. So far, there has been relatively little research on the effect of e-WOM on CE. In our study, we employ social media to discover the impacts of e-WOM on CE with respect to domestic and foreign smart phone brands from the Chinese e-WOM receiver’s perspective. Simultaneously, we test consumer pride and prejudice toward mature industries in the home country. Drawing on survey data from 302 consumers, our study reveals several significant findings. First, positive e-WOM regarding local brands may enhance CE, whereas positive e-WOM regarding foreign brands may reduce CE. Second, Negative e-WOM may break the advantage of CE for domestic brand, which result in the dominance of foreign brand. Third, positive e-WOM may enhance brand equity for both domestic and foreign brands. By contrast, negative e-WOM has no significant influence on Chinese consumers’ attitude toward brand equity. Finally, CE has positive influence on brand equity for domestic brand but not effect on foreign brand. To our best of knowledge, our paper is the first to study the effect of e-WOM on CE, which enriches the relevant theory with regard to CE.
Despite the consumer's interest in sustainable fashion and the sustainable fashion phenomenon in the fashion business being a serious issue for our society, only a limited number of studies focus on investigating the consumer's perceived value of sustainable fashion. Although eco-friendly consumption has been recognized as one of the major concerns of the fashion business, environmentally prudent consumption has not yet transformed into purchasing behavior. However, fashion companies try to offer many seasonal collections due to the fast fashion trends to meet the consumer's needs. Such trends have brought about an enormous amount of apparel waste, negative environmental impacts and serious questions about social issues. In addition, today’s fashion consumers appear to have a narrow point of view on sustainable/green fashion that focuses mainly on organic clothing, and avoids or shows no interest in the wider scope of sustainability encompassing environmental, social and economic concerns (Cervellon, Hjerth, Richard, & Carey, 2010). Increasing the consumption of sustainable fashion necessitates research into how fashion consumers make purchasing decisions. Therefore, the information and value of sustainable fashion need to be diffused by fashion consumers.
Hethom and Ulasewicz (2008) stated that the consumer acts as a major stakeholder with the greatest impact on the development of a sustainable industry. Furthermore, it is necessary to examine the consumer's purchase decision-making process for sustainable fashion products in academia. According to previous studies, the awareness of sustainability issues is also growing due to the environmental impacts. However, this awareness has not yet affected apparel purchasing behavior and actual purchasing (Kim & Damhorst, 1998). In order to affect the behavior of fashion consumers and expand sustainable fashion in today's marketplace, it is essential to identify the influencing factors in purchase decision-making process for sustainable fashion products.
China has been the biggest factory in the world, most of products are marked “made in China”. With the rapid grows of consumption in China, it is also the biggest market. However, Chinese consumers with deep-rooted Confucian value system may different from Western countries (Ramasamy & Yeung, 2009). Do they still have strong consumer ethnocentrism? Or they can accept all the things they made but with the foreign brands?
The power of WOM to influence customer attitude toward one brand is well known to all the marketing researchers. But the fast development of internet and social media network changed consumers’ behavior, word-of-mouth has acquired electronic WOM (e-WOM) as a new name (Goyette et al, 2010). Customer use E-WOM to evaluate product and make purchase decision.
Ethnocentric consumers are against foreign brands as they believe that purchasing these brands will hurt domestic economy and brands, cause loss of jobs and increase the power of capitalist companies and dependency of poorer economies to them (Kaynak & Eksi, 2013). But customers are will to searching the better products. Such as Chinese mainland consumers hire purchase agent to shopping aboard. The purchase agent post information in the social media network as eWOM. This research wants to explore the young Chinese still have high ethnocentric tendency or not influenced by eWOM. If E-WOM can be a marketing method to reduce the ethnocentrism when foreign brands entry a new country. And also the domestic brands can use E-WOM to enhance ethnocentrism to against foreign brands.
In this research, study 1 tests positive E-WOM or negative E-WOM to test if it can enhance Chinese consumers’ ethnocentrism or reduce their ethnocentrism for their own country products. This research also tests if consumer ethnocentrism can influence on brand equity and purchase intention.
Based on the literature review, researchers establish concept model was shown in Table 1.
This study uses SPSS and AMOS to analysis the sample. Based on the results this research gives suggestions to both academic and practice.