Explaining consumer willingness to pay for country‐of‐origin labeling with ethnocentrism, country image, and product image: Examples from China's beef market

Abstract

AbstractChinese beef imports have been increasing in recent years. At the same time, Chinese public sentiment toward foreign countries, including those who export beef to China, has been changing. Therefore, this research uses a discrete choice experiment (DCE) to investigate the role of ethnocentrism, country image, and product image on consumer willingness to pay for country‐of‐origin labeled beef. Results indicate, on average, Chinese consumers prefer domestic beef most, and value beef from Australia and the US somewhat similarly. Their willingness to pay varies based on their perceived image of the country that the beef originates from and based on their perception of the safety of the beef, that is, product image. The more ethnocentric consumers are, the more they prefer domestic beef and discount foreign beef. Importantly, the effects of ethnocentrism, country image, and product image are stronger on the willingness to pay for domestic beef than for imported beef. More generally, findings indicate that controlling for ethnocentrism, country image, and product image contributes to understanding consumer willingness to pay for products originating from foreign countries. Overall, findings suggest that stronger ethnocentric tendencies lead to lower willingness to pay for imported beef (with some exceptions), and positive country image and product image increase the willingness to pay for imported beef. Thus, it is important to consider these constructs when estimating consumer willingness to pay for imported products, especially for countries where public sentiment toward exporting countries may be prone to change in a dynamic global environment.