Abstract

This study empirically looks into the effects of the animosity and ethnocentrism on the purchase intentions of the Korean products with an emphasis on the moderating effect of conspicuous consumption. The empirical results from 300 Chinese consumers are as follows: First, the animosity has a negative (-) effect on the purchase intentions of Korean products. This result, consistent with the previous studies, shows that as animosity increases, Chinese consumers tend to have low intention to purchase Korean products regardless of the quality or price of Korean products. Second, the ethnocentrism has a negative (-) effect on the purchase intentions of the Korean products. This result, consistent with the previous studies, show that Chinese consumers who have shown ethnocentrism evaluate the quality of Chinese products better and have low intention to purchase Korean products. As a result of examining the adjustment effect of the conspicuous consumption, it did not show an interaction effect with ethnocentrism, but it weakened the negative relationship between animosity and purchase intention of Korean products. This result implies that when Chinese consumers did not purchase Korean products because of their animosity toward Korea, conspicuous consumption can improve the situation. However, ethnocentric Chinese consumers can still show negative purchase intention toward Korean products even with the added effect of conspicuous consumption. This study provides a meaningful implication since it was based on Chinese consumers before the THAAD controversy, and it can be an important reference point when studies are conducted targeting Chinese consumers after the THAAD controversy. This study is also meaningful in that it shows that Chinese consumers` conspicuous consumption can weaken the negative relationship between animosity and purchase intention of Korean products.

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