BRAND ORIGIN AND CONSUMER ETHNOCENTRISM IN THE LUXURY FASHION INDUSTRY: IMPACT ON CONSUMERS’ RESPONSES TO MANUFACTURING DELOCALIZATION

Abstract

The objective of this paper is to understand consumers’ responses (attitude, perception of quality and luxury) to production delocalization in the luxury industry, based on brand origin matching consumers’ origin or not, in order to understand the interaction brand origin and consumer ethnocentrism on those responses.Two experiments were conducted. Study 1 exposes 166 respondents (French, Italian and other European) to a message of delocalization of either a French or Italian brand supposed to delocalize production to China. Study 2 assesses, among 62 French women, the implicit preference toward French luxury brands (through the Implicit Association Test, Greenwald et al. 1998) and the level of consumer ethnocentrism (through CETSCALE, Sharma et al. 1995). Then, the group is exposed between subjects to 2 delocalization messages X 2 country of delocalization (China, Poland EU) Although brand origin is not salient when consumers evaluate brands (no explicit preference for French brands over Italian brands across studies), it is nonetheless present below awareness, as part of the brand heritage and the brand identity (measured through an implicit preference for French brands over Italian brands among our French respondents). It manifests in context of brands delocalizing out of the home country. Across studies, the attitude toward the brand, the perception of quality and perception of luxury is affected negatively post-exposure to a message of delocalization. Yet, this result is moderated by consumer ethnocentrism and message framing. When the message induces positive consequences for the brand and for the national economy, French respondents (and Italian respondents in study 1) are less affected by the delocalization of their home brands than other respondents. In turn, when the message highlights a loss in national employment, respondents judge the brand more negatively. The effect is stronger for respondents higher in ethnocentrism. The country of delocalization does not influence those results. There is scarcity of papers investigating the CoO effect for luxury brands, although the luxury business model and luxury brand identity are rooted into brand origin. This paper is the first to our knowledge to investigate the effect of brand origin and consumer ethnocentrism on brand delocalization.