Drivers of consumers' foreign products purchase: a test of an integrative model

Abstract

The purpose of this study is to examine the influence of consumer ethnocentrism (CE), country of origin (COO) and consumers' attitude towards grey market goods/parallel imports on foreign products' quality and purchase intention (PI). This study also investigates the indirect effects of independent variables on PI mediated by foreign products' quality. This study uses structural equation modelling (SEM) to test the hypothesised relationships. The empirical results show that CE negatively influences PI, but positively influences foreign products' quality. Consequently, COO and consumers' attitude towards grey marketing goods positively influences foreign products' quality and PI. Mediation results show that foreign products' quality plays a role of full mediator variable in the path from CE, COO and consumers' attitude towards grey market goods to PI. This study has several managerial implications for local and foreign companies.