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1 The Impact of Country Personality, Product-Country Images and Socio- Psychological Constructs on Consumers’ Behavioral Intentions Abstract In recent international marketing research, a new construct called country personality has emerged that is intended to complement the well-researched country image construct. The present study seeks to extend our understanding of the conceptual nature and functioning of country personality and investigates its value-added in explaining consumer behavior. Specifically, based on social identity theory, a conceptual model is developed and subsequently tested incorporating country personality, product-country image (PCI), and socio-psychological traits of consumers (notably consumer ethnocentrism, consumer cosmopolitanism and national identity) as predictors of consumers’ behavioral intentions. Results reveal that (1) a country’s personality can significantly enhance or diminish a country’s PCI, (2) that PCI directly impacts on consumers’ intentions to purchase products from and visit a particular country, (3) that consumer ethnocentrism, consumer cosmopolitanism and national identity also affect behavioral intentions directly and indirectly through their effects on country personality and PCI, and (4) that the relative importance of country versus consumer characteristics in determining consumer behavior varies depending on the context at hand. Our analyses revealed that for countries that are popular tourism destinations such as Italy, socio-psychological traits of consumers are more important than PCI. For countries that are known for the meticulous workmanship of their products such as Germany, on the other hand, PCI is the most important predictor, and can even be an important determinant of tourism intentions. Implications for theory development and managerial practice are highlighted and directions for future research identified. Keywords Country Personality, Country Image, Consumer Ethnocentrism, Consumer Cosmopolitanism, National Identity

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Page 1: The Impact of Country Personality, Product-Country Images ... · 1 The Impact of Country Personality, Product-Country Images and Socio-Psychological Constructs on Consumers’ Behavioral

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The Impact of Country Personality, Product-Country Images and Socio-

Psychological Constructs on Consumers’ Behavioral Intentions

Abstract

In recent international marketing research, a new construct called country personality has emerged

that is intended to complement the well-researched country image construct. The present study seeks to

extend our understanding of the conceptual nature and functioning of country personality and investigates

its value-added in explaining consumer behavior. Specifically, based on social identity theory, a

conceptual model is developed and subsequently tested incorporating country personality, product-country

image (PCI), and socio-psychological traits of consumers (notably consumer ethnocentrism, consumer

cosmopolitanism and national identity) as predictors of consumers’ behavioral intentions. Results reveal

that (1) a country’s personality can significantly enhance or diminish a country’s PCI, (2) that PCI directly

impacts on consumers’ intentions to purchase products from and visit a particular country, (3) that

consumer ethnocentrism, consumer cosmopolitanism and national identity also affect behavioral

intentions directly and indirectly through their effects on country personality and PCI, and (4) that the

relative importance of country versus consumer characteristics in determining consumer behavior varies

depending on the context at hand. Our analyses revealed that for countries that are popular tourism

destinations such as Italy, socio-psychological traits of consumers are more important than PCI. For

countries that are known for the meticulous workmanship of their products such as Germany, on the other

hand, PCI is the most important predictor, and can even be an important determinant of tourism intentions.

Implications for theory development and managerial practice are highlighted and directions for future

research identified.

Keywords

Country Personality, Country Image, Consumer Ethnocentrism, Consumer Cosmopolitanism,

National Identity

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1. Introduction

Higher standards of living coupled with better affordability of worldwide transportation, increasing

development of worldwide communications, and the globalization of markets all contribute to the fact that

people know much more about countries than they did in the past. Thus, they are more likely than ever to

have formed organized mental representations about countries (d'Astous & Boujbel, 2007). Country

managers, on the other hand, do their best in shaping these images in their marketing communications.

The Vancouver 2010 graphic identity, for example, thought to stress the progressive and youthful

personality of Canada as host of the winter Olympic Games (Vancouver 2010 Olympics).

Recent image research in marketing has adopted the position that commercial objects, such as

products (Govers & Schoormans, 2005), brands (Aaker, 1997), corporations Keller & Richey, 2006),

stores (d'Astous & Lévesque, 2003), or even countries (Hosany, Ekinci, & Uysal, 2006) can be described

with human personality traits. A key reason behind the use of the personality construct is that it captures

an object’s symbolic and self-expressive function to the consumer (Hirschmann, 1994; Plummer, 1985)

which is considered to be a significant determinant of consumer preferences (Elliott, 1994; Lefkoff-

Hagius & Mason, 1993). Country-of-origin (COO) research to date has approached the country image

construct almost exclusively from a functional/ utilitarian perspective focusing on aspects such as

innovativeness, design, and workmanship of products or brands associated with a particular country (see

Roth & Diamantopoulos, 2009 for a review). However, “country-of-origin may associate a product with

status, authenticity, and exoticness” (Verlegh & Steenkamp, 1999, p. 523), and country personality

captures such aspects.

D'Astous and Boujbel’s (2007) develop a country personality scale that profiles a particular country

along six personality dimensions. They specifically stress that country personality “represents one

particular way of looking at country images and should be considered as a complement rather than as a

substitute to existing country image measuring instruments” (d'Astous & Boujbel, 2007, p. 239, added

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emphasis). Surprisingly, there is a dearth of empirical research exploring the symbolic value of countries

to a consumer. In addition, the relationship between “traditional” attribute-based conceptualizations of

country image and country personality has not been assessed so far, leaving it unclear whether future COO

research should focus on country image, country personality, or both constructs at the same time.

Apart from consumers’ perceptions about a particular country, whether conceptualized as images or

personality traits, past research has also identified several consumer characteristics significantly impacting

consumer behavior (Samiee, 1994). Such characteristics are represented by socio-psychological traits such

as consumer ethnocentrism (for a review, see Shankarmahesh, 2006), consumer cosmopolitanism (for a

review, see Riefler & Diamantopoulos, 2009), and national identity (for a review, see Dinnie, 2002). For

example, a consumer might purchase domestic products because (s)he thinks that buying foreign products

hurts the domestic economy and puts local people out of work, as suggested by the construct of consumer

ethnocentrism (Shimp & Sharma, 1987). Samiee (2009, p. 3) argues that COO is only relevant for these

consumer segments, and that “empirical studies of CO have yet to formally incorporate the[se]

concept[s]”. In our study, we therefore want to evaluate the impact of country personality and country

image on consumer behavior while at the same time controlling for socio-psychological traits of

consumers. Such a simultaneous examination should also help us to reveal the extent to which (perceived)

characteristics of countries rather than characteristics of consumers are a stronger driver of behavioral

intentions. For example, would a favorable country personality (e.g., the progressive and youthful

personality of Canada) outweigh the domestic country bias (Balabanis & Diamantopoulos, 2004) expected

to be exhibited by ethnocentric consumers in terms of buying intentions?

Against this background, the current research seeks to offer insights into whether and how country

characteristics interact with socio-psychological traits of consumers in determining behavioral intentions.

Specifically, the intended contribution of our study is three-fold. First, we conceptually link the well-

established product-country image (PCI) construct to the recently introduced country personality construct

in order to assess the extent to which PCI perceptions are driven by country personality evaluations. This is

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consistent with recent calls in the literature for more research into the antecedents/drivers of country image

perceptions (Josiassen & Harzing, 2008; Papadopoulos & Heslop, 2003). Second, the impact of socio-

psychological traits of consumers, namely consumer ethnocentrism, consumer cosmopolitanism and national

identity on behavioral intentions is contrasted with that of PCI evaluations in an attempt to identify the extent to

which the former are a more important driver of intentions than the latter. Again, this is consistent with calls in

the literature for a more holistic treatment of country and consumer characteristics in COO research (Samiee,

2009; Verlegh & Steenkamp, 1999). Third, in testing the predictive validity of country versus consumer

characteristics, we extend the range of outcome variables from product-related decisions to other important

behavioral consequences, namely consumers’ intentions to visit a particular country. This is important because

the notion of country images includes “the country as exporter, importer, and potential tourism, investment, or

immigration destination, making its image a matter of vital importance to anyone living or otherwise interested

in it” (Papadopoulos & Heslop, 2003, p. 427).

In the section that follows, we introduce the core constructs under study and follow this with a

discussion of our conceptual model and associated research hypotheses. Next, we outline the study’s

methodology, highlighting data collection and construct measurement issues. We then present the results

from estimating our model and testing the research hypotheses. We conclude the paper by considering the

theoretical and managerial implications of the findings and offering suggestions for future research.

2. Theoretical Model and Hypotheses

We link the five constructs of interest - country personality, PCI, national identity, consumer

ethnocentrism and consumer cosmopolitanism - to each other as well as to behavioral intentions by means of

a conceptual model as shown in Figure 1. In past COO research, country image is often conceptualized as

mediating the impact of consumer characteristics on outcome variables. For example, Balabanis, Mueller and

Melewar (2007) place country image as a mediator between patriotism, nationalism and internationalism

and consumers’ likelihood to buy foreign products, while Samiee (1994) suggests that socio-psychological

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traits such as consumer ethnocentrism and patriotism are themselves antecedents of country images.

Consequently, in Figure 1, we model national identity, consumer ethnocentrism and consumer

cosmopolitanism as antecedents of country personality, PCI, and consumers’ intentions to purchase

products from and visit a particular country. The hypotheses underlying the various model relationships in

Figure 1 are discussed below.

Insert Figure 1 about here

2.1. Country Personality

While studies focusing on product or brand personality can be traced back to the 1960s (e.g.,

Birdwell, 1968; Dolich, 1969; Malhotra, 1981), it was not until very recently that the personality construct

was applied to countries (d'Astous & Boujbel, 2007; Ekincy & Hosany, 2006). In this context, two distinct

approaches can be identified in the literature, involving (1) the stereotypic image of a buyer of specific

products from a certain country (Chao & Rajendran, 1993; Nebenzahl, Jaffe, & Usunier, 2003)1, and (2)

people’s description of traits of a country as if it were a person (d'Astous & Boujbel, 2007; Hosany et al.,

2006). Our study is based on the second approach because focusing on personality traits ascribed to the

country itself rather than traits associated with people buying products from a particular country enables to

characterize a country regardless of its products.

The conceptual roots of the country personality construct can be traced back to the notion of

anthropomorphism, which refers to “the tendency of people to make attributions of humanlike

characteristics to animals and nonhuman entities” (Kiesler, 2006: 149). In this context, humans have a felt

need to anthropomorphize objects in order to facilitate interactions with the non-material world (Fournier,

1998). Guthrie (1997) introduces two complementary theories to explain this phenomenon, namely

familiarity theory and comfort theory. According to familiarity theory, humans use their self-concept as a

reference point of how to interpret the outside world because of their extensive knowledge of themselves.

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The comfort thesis, on the other hand, posits that people feel uncomfortable with what is nonhuman and

therefore try to reassure themselves by projecting human characteristics to inanimate objects.

Note, in this context, that the personality that is projected on the object is different to the personality

of the person himself/herself. To understand the difference between the personality of an object (such as a

brand or a country) and a person, Kapferer (2008) developed a brand identity prism in which he considers

a brand as a speech flowing from a sender to a receiver. He argues that the brand identity dimension

physique (i.e., physical features and qualities) and personality (i.e., human personality traits) picture the

sender (i.e., the brand or country), and the identity dimensions’ reflection (i.e., image of the target group)

and self-image (i.e., how the brand makes consumers feel) picture the receiver (i.e., the consumer). It is

important to make this distinction between sender and receiver, because otherwise “brand and user

personality get mixed up, leading to uncertainty about how to take action in case of a gap between the

desired and the perceived personality” (Geuens, Weijters, & DeWulf, 2009, p. 98). Numerous studies on

the congruity between oneself and a brand (e.g., Sirgy et al., 1997; Sirgy, Johar, Samli, & Claiborne,

1991), company (e.g., Ahearne, Bhattacharya, & Gruen, 2005) or a tourism destination (e.g. Sirgy & Su,

2000) show that these are distinct but related constructs.

Country personality has been investigated in two relatively independent research streams, namely

the COO and the tourism literatures (see Mossberg & Kleppe, 2005 for a review). In COO research,

country personality is conceptually defined as “the mental representation of a country on dimensions that

typically capture an individual’s personality” (d'Astous & Boujbel, 2007: 233). This definition is similar

to the definition of destination personality in tourism research as “human characteristics associated with a

destination as perceived from a tourist rather than local resident viewpoint” (Hosany et al., 2006: 128).

Both definitions thus emphasize human characteristics associated with a particular country.

To operationalize country personality, in the tourism literature, Ekincy and Hosany, (2006),

Hosany, Ekinci, and Uysal (2006) and Murphy, Moscardo, and Benckendorff (2007) all employ Aaker’s

(1997) brand personality scale (BPS). In the COO literature, on the other hand, d'Astous and Boujbel

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(2007) recently developed a new country personality scale with six dimensions based on exploratory

interviews and a review of extant personality scales from the psychology and marketing literatures.

Similar to the Big Five personality dimensions (see DeNeve & Cooper, 1998 and Steel, Schmidt, & Shultz,

2008 for relevant reviews), some dimensions of d’Astous and Boujbel’s (2007) scale capture favorable

personality traits, whereas others unfavorable traits. In what follows, we retain d’Astous and Boujbel’s (2007)

terminology and consider “wickedness”, “snobbism” and “unobtrusiveness” as negative country personality

dimensions while “agreeableness”, “assiduousness” and “conformity” as positive (see also the discussion

below). Note, in this context, that country personality is a profile construct (Law, Wong, & Mobley,

1998) whereby scoring high on a favorable dimension (e.g., agreeableness or assiduousness) does not

necessarily mean that the same country automatically scores low on an unfavorable dimension (e.g.,

wickedness or snobbism). Note also that scores on the dimensions cannot be aggregated to obtain an

“overall” country personality score; instead, the individual scores on the dimensions have to be considered in

conjunction with each other to describe a country’s personality profile.

2.2. Product-Country Image

Product-country-image refers to the “overall perception consumers form of products from a

particular country, based on their prior perceptions of the country’s production and marketing strength and

weaknesses” (Roth & Romeo, 1992: 480). There is an impressive stream of research that demonstrates

that PCI perceptions impact on consumers’ product evaluations, risk perceptions, and buying intentions

(for comprehensive reviews, see, for example, Samiee, 1994; Peterson & Jolibert, 1995; Verlegh &

Steenkamp, 1999; Papadopoulos & Heslop, 2003; Jaffe & Nebenzahl, 2006). Roth and Romeo (1992)

identify four basic dimensions of PCI, namely innovativeness, design, prestige, and workmanship; all

dimensions “relate to the production and marketing perceptions of countries, and as such appear to capture

a single [product-] country image construct” (Roth & Romeo, 1992: 487).

Previous literature shows that PCI can be analyzed at two different levels, an “overall” or “general”

level concerning all products and services coming from a particular country (see also Heslop,

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Papadopoulos, Dowdles, Wall, & Compeau, 2004; Laroche, Papadopoulos, Heslop, & Mourali, 2005;

Pereira, Hsu, & Kundu, 2005; Pisharodi & Parameswaran, 1992) or a product category specific level (e.g.,

Hsieh, Pan, & Setiono, 2004; Ittersum, Candel, & Meulenberg, 2003). Similar to d’Astous and Boujbel

(2007), the focus of our study is on countries, rather than (specific) product categories. We thus need

findings that can be generalized at a country rather than product category level. According to the

literature, “product-specific images cannot be generalized to the origin country overall, and thus the value

of such research is limited” (Papadopoulos, Heslop, Szamosi, Ettenson, & Mort, 1997, p. 998). We

therefore approach PCI from a general rather than product category specific level. Our focus on “overall”

PCI is also consistent with the level of aggregation of the country personality construct, which, as already

noted, is conceptualized at the country rather than product category level.

2.2.1 Country Personality and Product-Country Image

Past COO research consistently shows that people’s perceptions of a country impact on consumers’

perceptions of products from that country (e.g., Roth & Romeo, 1992; Usunier & Cestre, 2007). In our

study, we specifically focus on consumers’ country personality perceptions and their likely impact on PCI

assessments.

As already noted, country personality captures both positively and negatively perceived traits of a

country. Among the positive traits of a nation, agreeableness – in accordance with the “agreeableness”

dimension of the Big Five – focuses on the quality of life and interpersonal relationships (DeNeve &

Cooper, 1998). This dimension contains items such as “agreeable”, “amusing” or “bon-vivant”, and, thus,

is closely related to the “people affect” facet appearing in past COO research. The latter has been

consistently shown to positively influence consumers PCI evaluations (e.g., Papadopoulos, Heslop, &

IKON Research Group, 2000; Parameswaran & Pisharodi, 1994) because “ people like and trust those

whom they see as of agreeable culture and political views” (Heslop, Papadopoulos, & Bamossy, 1993:

44). We thus expect a positive relationship between agreeableness and PCI.

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Assiduousness is comparable to the “conscientiousness” dimension of the Big Five which is defined

as “goal-directed behavior (such as efficacy and rule conscious) and control-related traits” (DeNeve &

Cooper, 1998: 199). This dimension comprises items such as “organized”, “rigorous” or “hard to work”,

and, thus, is closely related to the “people competence” dimension in extant COO research (e.g., Heslop et

al., 2004; Verlegh, 2001 ). It is thus expected that the more competent consumers perceive a country, the

better the evaluation of that country as a production and marketing location.

Finally, conformity captures agreement with established rules and customs (Longman, 1987) and is

characterized by items such as “religious”, “spiritual” or “traditional”. Comparing the items of the

conformity dimension with the items contained in the Big Five dimensions of human personality,

conformity is closest to John’s (1990) “openness to experience” dimension, which has been originally

defined in terms of measures of intelligence, openness, and creativity, but has been later broadened to

include any personality variable that is primarily cognitive in nature, such as belief in a just world, mental

absorption, and rigidity (DeNeve & Cooper, 1998)..Regarding the relationship between conformity and

PCI, the sign of the relationship among these two constructs is not straightforward. When interpreted from

the perspective of conformism, conformity is likely to be a negative trait as it signifies lack of originality.

Recent brand personality research, however, found similar items like the ones used in our study when

describing favorable characteristics of brands (Geuens et al., 2009). Specifically, Sung & Tinkham (2005)

report a strong positive correlation between likeableness and traditionalism in the case of US brands

(r=.63) and a weaker but still positive correlation between these two dimensions in the case of Korean

brands (r=.39). Thus, especially from the perspective of Western economies (and products), conformism

seems to be interpreted from the perspective of production-related traditions rather than lack of originality.

A country that has high production standards (e.g., Germany or Switzerland) that are grounded in strong

religious and/or cultural beliefs is likely to produce good products. Therefore, conformity is expected to

have a positive impact on PCI in our study. Hence, we expect that:

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Hypothesis 1: Positive country personality dimensions (i.e., agreeableness, assiduousness and

conformity) positively impact on a country’s PCI.

Among the unfavorable personality dimensions, wickedness is similar to the neuroticism dimension

of the Big Five that focuses “on adjustment variables (such as psychoticism and distress) as well as

negative emotional and behavioral traits” (DeNeve & Cooper, 1998: 199). This dimension comprises traits

such as “immoral”, “vulgar” or “decadent” and can be compared with negative affect (Yik & Russel,

2001). In line with models of affect (see Larsen, McGraw, & Cacioppo, 2001 for a review) which assume

that positivity fosters approach whereas negativity fosters avoidance, wickedness is likely to result in a

negative PCI (see also Brijs, 2006; Verlegh, 2001 in a country context).

A second country personality dimension with unfavorable traits is snobbism. In general, a snob is

defined as “a person who is too proud of having special knowledge or judgment in the stated subject, and

thinks that something liked by many people is no good” (Longman, 1987: 997). This dimension contains

items such as “snobbish”, “haughty” or “chauvinist”, which also tap into the domain of negative affect.

Note that also Nebenzahl et al. (2003), who analyzed the personality of individuals supposedly buying

products from a particular country also included aspects relating to chauvinism in their study (i.e., “a

person buying products from that country is a chauvinist”). Thus, in contrast to the Big Five of human

personality where only one dimension (neuroticism) captures negative affect, a country’s personality

seems to have a second facet that is related to the latter. Similar to wickedness, snobbism is therefore

expected to have a negative impact on PCI, since a country scoring high on this dimension is likely to be

perceived as arrogant, thus resulting in unfavorable perceptions of products produced in that country.

The last country personality dimension is unobtrusiveness. An unobtrusive person is a person who

is not blatant, arresting, or aggressive (Merriam-Webster, 2008), in other words, an inconspicuous person.

In the Big Five, unobtrusiveness could be best compared to extraversion that focuses on the quantity and

intensity of relationships (such as sociability and dominance), energy level, and excitement seeking

(DeNeve & Cooper, 1998). However, the items used in this dimension, such as “cowardly”, “wimpy” or

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“dependent”, clearly point into the opposite direction of these aspects, and, hence, appear to be negative

traits of a nation. D'Astous and Boujbel (2007) also include the item “neutral”, which – especially in a country

context – could well be perceived as a positive trait (e.g., a neutral country does not interfere in disputes among

nations). On the other hand, “neutral” could have negative connotations as well (as in “indifferent”)2, which

seem to be much more conceptually consistent with the other items of this dimension which are clearly

unfavorable personality traits. In contrast to wickedness and snobbism which are likely to evoke negative

associations due to “offensive” characteristics of a country, unobtrusiveness is more related to the

perceived disability of a country to “defend” itself and its products. This inability of a country to

distinguish itself and its offerings from other countries might trigger negative effects on the evaluation of

that country as a production and marketing location. Thus, we expect that:

Hypothesis 2: Negative country personality dimensions (i.e., wickedness, snobbism and

unobtrusiveness) negatively impact on a country’s PCI.

In line with personality literature, no direct effects of country personality on behavioral intentions

are postulated. This is because personality traits are highly abstract and thus not expected to directly

predict specific behavioral patterns (Bosnjak, Bratko, Galesic, & Tuten, 2007; Kassarjian, 1971); indeed,

in consumer behavior research, personality traits are linked to behavior only indirectly through intervening

variables (e.g., Baumgartner, 2002; Mowen, 2000). In the COO and tourism literature, the few studies that

exist also do not model a direct impact of country (or destination) personality on behavior-related

outcomes (e.g., d'Astous & Boujbel, 2007; Ekincy & Hosany, 2006).3

2.2.2 Product-Country Image and Behavioral Intentions

Past research has consistently reported that a positive evaluation of a country’s PCI results in

favorable behavioral reactions in terms of willingness to purchase, buying preferences, and

recommendations to others (e.g., Hsieh et al., 2004; Roth & Romeo, 1992). This is because, similar to

other external cues such as price or brand name, consumers’ positive PCI perceptions reduce perceived

risk and – in case of low familiarity with a particular product or brand – help consumers infer the true

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characteristics (e.g., workmanship, innovativeness) of a particular product (Han, 1989; Verlegh &

Steenkamp, 1999). Thus a favorable PCI positively impacts on consumers’ general decision to buy

products from that country.

Research further shows that PCI also impacts on other, non-product related outcomes of a country

(Heslop et al., 2004; Parameswaran & Pisharodi, 1994). Specifically, it has been pointed out that “the

image of a country (including what it produces and the quality of those products) can directly affect the

intention to visit” (Nadeau, Heslop, O'Reilly, & Luk, 2008, p. 90). Mossberg & Kleppe (2005) provide an

example for that. They trace the popularity of tapas and paella as well as feta cheese and moussaka back to

Scandinavian’s frequent travelling to Spain and Greece. However, according to Kleppe et al. (2002), it can

also work the other way around, i.e., due to the fact that Scandinavians eat a lot of moussaka and feta

cheese, they might want to go to Greece. This is in line with Han’s (1989) argument that PCI can serve as

a summary cue into which consumers consolidate previously acquired product information. The summary

argument proposes that consumers use their experience with one product (category) from a country (e.g., a

Toyota) to infer the quality of others (e.g., a Honda). We propose that the same mechanism applies for

tourist intentions, that is, consumers’ experience with products from a specific country (e.g., moussaka or

feta cheese) combined with the image of that country (e.g., friendly people, warm weather) might be

accessed in memory when other (i.e., non-product related) country conations are considered, such as the

selection of a holiday destination. We therefore expect that:

Hypothesis 3: PCI positively impacts on consumers’ intentions to (a) purchase products from, and

(b) visit the focal country.

2.3 Socio-Psychological Influences

The phenomenon of in-group bias, that is, the tendency to favor the in-group (i.e., home country)

over the out-group (i.e., foreign country) in evaluations and behavior has been receiving increasing

attention in literature. Social identity theory (Tajfel, 1978; Tajfel & Turner, 1986) provides an explanation

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for such bias. Our study introduces three socio-psychological constructs which are based on social identity

theory, namely national identity (Dinnie, 2002; Verlegh, 2007), consumer ethnocentrism (Sharma, Shimp,

& Shin, 1995; Shimp & Sharma, 1987), and consumer cosmopolitanism (Cannon & Yaprak, 2002; Yoon,

Cannon, & Yaprak, 1995); a brief conceptual discussion of each follows.

2.3.1 National Identity

Social identity captures the component of an individual’s self-image which derives from

membership in a social group (Tajfel, 1978). In case of national identity, the relevant social group people

identify with is the nation (Doosje, Branscombe, Spears, & Manstead, 1998; Feather, 1981). However,

holding a certain nationality is not a sufficient precondition for the development of national identity. What

is essential is the emotional and evaluative significance assigned to the feeling of belonging to the home

country (Tajfel, 1978). It is important to have the willingness to internalize the national culture and to

identify with and positively value the distinctive features of one’s country (Billig, 1995; Blank & Schmidt,

2003). Based on the above, national identity can be defined as “the importance of national affiliation as

well as the subjective significance of an inner bond with the nation” (Blank & Schmidt, 2003: 296). It

captures the extent to which individuals identify with and have a positive feeling of affiliation to their own

nation as well as the importance they attach to this feeling (Blank & Schmidt, 2003). Note that, in the case

of national identity, in-group identification or attachment is not accompanied by out-group derogation or

hostility (Brewer 1979, 1999). Indeed, out-groups such as foreign nations could be “viewed with

indifference, sympathy, even admiration, as long as inter-group distinctiveness is maintained” (Brewer,

1999, p. 434). Thus, national identity focuses on in-group favoritism only and does not explain consumers’

evaluations of other countries and behavioral intentions with regard to these countries (see also Verlegh,

2007).

Consumers who have a strong feeling of belonging to a nation are expected “to be favorably biased

toward the in-group, and its members, products, and achievements” (Verlegh, 2007). This is because

national identity is rooted in social identity theory which assumes that group membership provides an

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individual with a social identity that is part of his or her self-concept (Tajfel, 1978). Social identity theory

states that people are motivated to maintain a positive social identity (Brown, 2000). The latter is based on

favorable comparisons between the in-group (i.e., home country) and out-groups (i.e., foreign countries)

whereby the in-group must be perceived as being positively differentiated or distinct from the relevant

out-groups (Tajfel & Turner, 2004). When the result of the in-group/out-group comparison is

unsatisfactory, people are likely to engage in identity protecting- or enhancing strategies (Crocker &

Luhtanen, 1990; Hewstone, Jaspars, & Lalljee, 1982). These include “changing the dimension of comparison

for a more favorable one, reevaluating the unfavorable group characteristic, or choosing another lower status

group with which to compare ones’ own” (Doosje, Ellemers, & Spears, 1995: 412). These activities, in turn,

lead to a stronger identification with one’s own group. Thus, in a country context, it is expected that

consumers with a strong sense of national identity will more strongly believe in the positive traits

associated with their own country and downplay the negative ones in order to enhance the positively

valued distinctiveness of their home country (Turner, 1999). Thus, we propose the following hypothesis:

Hypothesis 4: In a home country context, national identity (a) positively impacts on positive country

personality dimensions (i.e., agreeableness, assiduousness, and conformity), and (b) negatively

impacts on negative country personality dimensions (i.e., wickedness, snobbism, and

unobtrusiveness).

The ingroup bias derived from a strong sense of national identification is expected to go beyond more

favorable perceptions of the own nation, and also (positively) affects the perceptions of the home

country’s products (Verlegh, 2007). Social identity theory suggests that positively evaluating the own

nation’s products is one way of enhancing or protecting the own country’s image, and this is likely to be

particularly important for those who strongly identify with their country (Turner, 1999). For example, in

an experiment, Doosje et al. (1995) found out that the need for protecting the own group’s image was

manifested in the tendency of subjects to rate dimensions seen as more characteristic of the own group as

more important than dimensions characteristic of the comparison group. This finding is in line with social

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identity predictions that groups will value those comparative dimensions that favor the own group more

highly (Ellemers, Wilke, & Van Knippenberg, 1993). Hence, we propose that:

Hypothesis 5: National identity positively impacts on consumers’ PCI perceptions of the home

country.

Ultimately, this bias in the perceptions of the own country as well its products should lead to a bias

with respect to actions related to the own country (Mackie, Devos, & Smith, 2000). Indeed, social identity

theory posits that people identify with social groups as a means of achieving a sense of who they are;

identification with a group and enhancement of that group identity can increase self-esteem (e.g.,

Branscombe & Wann, 1991; Mackie & Smith, 1998). Consequently, as a means of showing who they are

and in order to support the nation they belong to, people may engage in actions, such as purchasing

products from the home country or spending their holiday in the home country. Hence, we propose the

following hypothesis:

Hypothesis 6: National identity positively impacts on consumers’ intentions to (a) purchase products

from, and (b) visit the home country.4

2.3.2 Consumer Ethnocentrism

Consumer ethnocentrism was introduced by Shimp and Sharma (1987: 280) and is defined as

“beliefs held by […] consumers about the appropriateness, indeed morality, of purchasing foreign-made

products”. Although based on the broader concept of ethnocentrism which is the “view of things in which

one’ own group is the center of everything, and all others are scaled and rated with reference to it”

(Sumner, 1906: 13), consumer ethnocentrism is a unique economic form of ethnocentrism capturing only

economic motives for in-group bias, such as fear that opting for foreign products in some way threatens

the domestic industry and causes unemployment (Verlegh, 2007).

In contrast to national identity where the in-group bias does not necessarily lead to a devaluation of

out-groups, “[t]he distinguishing feature of [consumer] ethnocentrism lies not as much in the development

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of an ‘in-group’ pride as in its equal contempt for out-groups and portrayal of ‘out-groups’ as the ‘anti-

thesis’” (Shankarmahesh, 2006: 147). This is because the in-group (i.e., home country) “nourishes its own

pride and vanity, boasts itself superior, exalts its own divinities, and looks with contempt on outsiders”

(Sumner, 1906: 13). Thus, in line with social identity theory that assumes that out-group discrimination may

occur when inter-group relations involve competition, conflict, and/or perceived threat (Duckitt & Mphuthing,

1998; Jackson, 1993), consumer ethnocentrism is expected to affect consumer behavior in both a home

country and a foreign country setting.

According to literature (Levine & Campbell, 1972; Sumner, 1906), highly ethnocentric individuals

perceive the own nation as virtuous and superior while out-groups such as other countries are seen as

contemptible, immoral, and inferior. As the construct of consumer ethnocentrism represents an economic

form of ethnocentrism, these feelings of superiority are expected to result in biased perceptions of the own

country coupled with an equal contempt of foreign countries (Shankarmahesh, 2006). Hence, in a home

country context, a positive relationship between consumer ethnocentrism and favorably perceived country

personality dimensions and a negative link between consumer ethnocentrism and unfavorable country

personality dimensions is expected. In the case of foreign countries, on the other hand, the opposite is

expected. We therefore propose the following hypotheses:

Hypothesis 7: In a home country context, consumer ethnocentrism (a) positively impacts on positive

country personality dimensions (i.e., agreeableness, assiduousness, and conformity), and (b)

negatively impacts on negative country personality perceptions (i.e. wickedness, snobbism, and

unobtrusiveness).

Hypothesis 8: In a foreign country context, consumer ethnocentrism (a) negatively impacts on

positive country personality perceptions (i.e., agreeableness, assiduousness, and conformity), and

(b) positively impacts on negative country personality perceptions (i.e., wickedness, snobbism, and

unobtrusiveness).

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Ethnocentrists hold stereotyped negative opinions and hostile attitudes toward members of out-

groups and positive opinions and uncritically supportive attitudes toward in-groups (Granzin & Painter,

2001; Hewstone, 1986). In the specific case of consumer ethnocentrism, consumers feel a moral obligation

to buy domestic and are prejudiced against imports as this behavior is seen as appropriate by the in-group.

Purchasing imported products is perceived as wrong, inappropriate, and even immoral because it harms

the domestic economy, increases unemployment and is unpatriotic (Sharma et al., 1995; Shimp & Sharma,

1987). Indeed, past research has consistently reported strong and positive relationships between consumer

ethnocentrism and consumers’ quality perceptions of and preference for domestic products and

corresponding negative relationships with respect to foreign products (e.g., Balabanis & Diamantopoulos,

2004; Klein, Ettenson, & Morris, 1998). However, it is reasonable to expect that consumers’ concern for

their own country and their fear of harmful effects that foreign products might bring to themselves and

countrymen is not limited to the purchase of goods, but also affects other areas such as holidays (i.e., it

affects travel intentions). Indeed, as Shimp and Sharma (1987: 280) note, consumer ethnocentrism gives

the individual “an understanding of what purchase behavior is acceptable or unacceptable to the ingroup”.

This moral component is likely to be “a general tendency ‘in toto’ as opposed to a specific attitude”

(Shankarmahesh, 2006: 148). Thus, we expect that:

Hypothesis 9: Consumer ethnocentrism (a) positively impacts on consumers’ PCI perceptions of the

home country, and (b) negatively impacts on PCI perceptions of foreign countries.

Hypothesis 10: Consumer ethnocentrism positively impacts on consumers’ intentions to (a)

purchase products from, and (b) visit the home country.

Hypothesis 11: Consumer ethnocentrism negatively impacts on consumers’ intentions to (a)

purchase products from, and (b) visit foreign countries.

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2.3.3 Consumer Cosmopolitanism

The term cosmopolitanism originates from the Greek words cosmos [world] and politis [citizen] and

describes a tendency of individuals to feel as a world citizen rather than a citizen of a specific country

(Riefler & Diamantopoulos, 2009). Cosmopolitan consumers travel frequently, are routinely involved with

other people in various places worldwide, and provide doorways into other territorial cultures (Cleveland,

Laroche, & Papadopoulos, 2009; Hannerz, 1992; Turner, 2002). Hannerz (1990) regards the involvement

with foreign people, traditions, and lifestyles as a central characteristic of cosmopolitan people that sets

them apart from certain tourists and expatriates who may stay abroad but simply import their home life

style. Thus, for cosmopolitans, the boundaries between the in-group, that is, the home country, and the

outgroup, that is, the foreign country, are not salient anymore, and they may start to identify with a foreign

country even more than with the home country. Thus, in contrast to national identity and consumer

ethnocentrism that both share a pro-ingroup and (in the case of consumer ethnocentrism) anti-outgroup

orientation, consumer cosmopolitanism is a pro-outgroup construct that can explain outgroup bias only,

but not a bias towards the home country or products from the home country (Jaffe & Nebenzahl, 2006).

Marketing literature has recognized the potential relevance of cosmopolitanism for explaining

consumer behavior and has put forward the construct of consumer cosmopolitanism (Cannon & Yaprak,

2002; Yoon et al., 1995). In an interdisciplinary review of the literature, Riefler and Diamantopoulos

(2009: 415) define a cosmopolitan consumer as “an open-minded individual whose consumption

orientation transcends any particular culture, locality or community and who appreciates diversity

including trying products and services from a variety of countries”. They further propose three aspects of

consumer cosmopolitanism for which broad consensus seems to exist in the literature. The first facet is

open-mindedness. Cosmopolitan consumers are aware of and appreciate consumption opportunities from

other countries. Second, they have a positive stance towards variety. This diversity appreciation

“manifests itself in a search for or appreciation of difference and diversity in the world rather than a

preference for uniformity” (Riefler & Diamantopoulos, 2009: 414). Finally, consumption transcending

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borders “reflects an interest in and readiness to seek out consumption objects from different cultures and

countries” (Riefler & Diamantopoulos, 2009: 414).

Cosmopolitan consumers do not derive their identity from their membership to a certain state. They

have spent a lot of time in foreign countries (Riefler & Diamantopoulos, 2009), have a higher level of

formal education (Cannon, Yoon, McGowan, & Yaprak, 1994), and are frequently exposed to national and

international media (Yoon, Cannon, & Yaprak, 1996). Thus, they might perceive themselves as

transnationals who are “those intellectuals who are at home in the cultures of other peoples as their own”

(Konrad, 1984: 208). Consequently, identity-enhancing mechanisms proposed by social identity theory are

likely to result in favorable evaluations of people from foreign countries as these people are part of their

social identity. Hence it is expected that cosmopolitan consumers will overemphasize the positive traits

and downplay negative traits associated with a foreign country. We therefore propose that:

Hypothesis 12: In a foreign country context, consumer cosmopolitanism (a) positively impacts on

positive country personality dimensions (i.e., agreeableness, assiduousness, and conformity), and

(b) negatively impacts on negative country personality dimensions (i.e., wickedness, snobbism, and

unobtrusiveness).

Concerning the relationship between consumer cosmopolitanism and PCI, extant literature suggests

that cosmopolitan consumers base their buying decisions mainly on functional needs rather than tradition

or social pressure and, therefore, evaluate products objectively in terms of product features (Cannon &

Yaprak, 2002; Jaffe & Nebenzahl, 2006). Social identity theory, on the other hand, suggests that the bias

derived from the identification with a certain group will result in biased perceptions, feelings and behavior

toward that group and its members, products and achievements (Tajfel & Turner, 1986). Indeed, literature

states that cosmopolitans tend to consume international media, foreign books and films while in their

home countries (Hannerz, 1990). Thus, cosmopolitan consumers will in general appreciate products from

foreign countries more than non-cosmopolitan consumers, which might result in a more positive

perception of these products. Hence, we propose that:

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Hypothesis 13: Consumer cosmopolitanism positively impacts on consumers’ PCI perceptions of a

foreign country.

An interesting view on cosmopolitanism been put forward by Thompson & Tambyah (1999) who

suggest that cosmopolitan consumers are made, not born. They argue that consumers seek social status, or

cultural capital, by acquiring cosmopolitan characteristics (Bourdieu, 1987). Travel plays a key role in this

process because it represents a way of breaking free of national boundaries to achieve the sophistication

implied by the exotic (Belk, 1998). Travel may take the form of tourism or, as in the case of Thompson &

Tambyah’s (1999) study, it can be achieved by living and working abroad. Furthermore, cosmopolitan

consumers will try to eschew the parochial culture of their local surroundings and consume exotic foods,

international movies and books, and original and authentic objects (Holt, 1997). Thus, cosmopolitan

consumers are expected to actively search for foreign products in order to experience something new. This

is further supported by social identity theory, that suggests that identification with a group (in this case, a

foreign country), will results in biased actions with respect to this group (Mackie et al., 2000). Thus, we

propose:

Hypothesis 14: Consumer cosmopolitanism positively impacts on consumers’ intentions to (a)

purchase products from, and (b) visit a foreign country.

3. Method

3.1 Country Selection

Given our research hypotheses, we chose three countries as COO stimuli, that is, one home country

and two foreign countries with different but compensating profiles. The home country is located in Central

Europe and is a member of the European Union. In terms of GDP per capita, it is similar to the countries-

of-survey typically chosen in COO research (i.e., the United States, UK, Canada, Japan, and Germany).

The country has several bordering countries making its citizens likely to have been directly exposed to

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other countries and their people. It ranks among the top three countries in the KOF index of globalization,

which takes into account economic, social and political aspects of globalization (Dreher, 2007). In 2008,

imports (goods and services) accounted for approximately 55% of its GDP (source: latest available

confirmed data by EUROSTAT). Thus, overall, we have evidence that this country is significantly

intertwined with other countries in terms of culture, economy, and politics.5

With respect to the choice of foreign COO, the following criteria guided the selection of the

stimulus countries. First, the countries had to be a relevant origin or destination country with respect to the

outcome variables considered. Specifically, both countries should be in the consideration set of

respondents for both outcomes, but one country should be a popular tourism destination whereas the other

should be well-known for its products. Second, respondents had to be reasonably familiar with these

countries to enable valid ratings on country personality and PCI measures. Third, in order to test the

stability of the psychometric properties of the country personality scale, the target countries should have a

different profile than the home country with respect to its personality. Finally, one country should be

regarded more as an affinity country whereas the other as an animosity country to provide a contrasting

setting for testing the model relationships.

Based on these criteria and following intensive discussions with several experts in COO research,

we finally chose Italy and Germany as foreign country stimuli. Both countries are the main export and

import partners of the survey country, with Germany representing by far the most important (volume share

of approximately 45% of all imports) and Italy the second most important trading partner (about 7% of all

imports; source: National Statistics Bureau, 2009). Thus, we can assume that respondents are sufficiently

familiar with those country’s products. In terms of preferred tourism destinations, Italy ranks first

(accounting for 21% of all journeys) and Germany second (13% of all journeys; source: National Statistics

Bureau, 2009). Finally, several pre-tests showed that Italy was clearly perceived as an affinity country,

whereas Germany scored among the top three animosity countries (see authors, 2007).

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3.2 Data Collection

All construct measures used in our study were drawn from previous studies (see subsequent section)

and most were originally developed in English. Whenever a scale was developed in several languages

(e.g., in the case of the CETSCALE or the scale for cosmopolitanism), the authors were contacted and the

original measure was used in the questionnaire. For the rest, to ensure translation equivalence, the English

version of the questionnaire was first translated into the local language by one bilingual person and then

retranslated into English by a second bilingual person. The two expert translators reconciled any

differences (for a similar procedure, see Behling & Law, 2000; Homburg, Cannon, Krohmer, &

Kiedaisch, 2009). The translated questionnaire was subsequently pre-tested with 20 consumers using the

protocol approach (Reynolds, Simintiras, & Diamantopoulos, 2003) to ensure that all items were

comprehensible and no difficulties in answering occurred. In order to guard against common method bias

effects, several techniques suggested by Podsakoff et al. (2003) were employed during data collection.

Specifically, different response formats were used in the questionnaire, respondents were assured

anonymity, it was stressed that there were no right or wrong answers, a counterbalancing question order

was adopted, and the pre-test results were used to avoid item ambiguity as far as possible.

The questionnaire was further pre-tested on a second sample of 83 university students to gain first

insights on the psychometric properties of the measurement items. On average, it took respondents 15

minutes to fill out the questionnaire, which lies within the range of recommended questionnaire length

(Hinkin, 1995; Podsakoff, MacKenzie, Lee, & Podsakoff, 2003). Included in the pre-test questionnaire

was also a 10-item measure for social desirability (SDR) taken from Netemeyer, Burton and Lichtenstein

(1995) and originally developed by Crowne & Marlowe (1960). All individual items were screened in

terms of means, actual ranges, variances and missing values (DeVellis, 2003) and showed desirable

qualities (i.e., means were close to the centre of the theoretical range, variances were relatively high, and

no item had excessive missing values). Moreover, all internal consistency estimates of the scales capturing

the constructs of interest were acceptable (well exceeding .70) except for the conformity dimension of

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country personality (α=.62 home country, α=.56 Italy). However, a somewhat lower level of reliability for

conformity was already expected, as d’Astous and Boujbel (2007) reported a Cronbach’s alpha of only .64

for this dimension.6

For the main survey, we employed a quota sample which was nationally representative for the

population of the home country with respect to sex and age. Data were professionally collected by a major

international research agency that maintains representative online panels in several countries around the

world. All panel members agree to fill out surveys on a regular basis and receive incentives in return. In

our study, respondents were assured privacy and confidentiality and appropriate checks by the market

research agencies guaranteed quality of responses. The target population was defined as “males or females

between the ages of 18 and 70 who had been living in the survey country for more than 10 years and/or

have the citizenship of the survey country”. For legal reasons, individuals below the age of 18 could not be

asked without permission of their parents. In a similar vein, consumers beyond the age of 70 were thought

not to be suited for an online survey and were therefore also excluded. In total, 422 completed

questionnaires were returned; after excluding individuals which did not fulfill the requirements mentioned

above the sample used for analysis comprised 411 consumers. The participation rate was nearly 100%,

that is, practically each panel member that was invited also actually participated in the survey. Thus non-

response bias is not an issue in this study.

Table 1 summarizes the demographic profile of the sample with respect to sex and age. Mean net

income was around 18,880 Euros a year, which is slightly above census data (18,360 Euros). People were

slightly higher educated (80% graduated from high-school compared to 70% in the overall population)

and the sample was also fairly in line with census figures in terms of employment (approx. two thirds of

the people were employed, 20% retired), however, with a slight over-representation of unemployed people

(8 % as opposed to 4% of the working population) and students (7% compared to 5% of the overall

population). Thus, overall, the sample is comparable to other samples typically used in cross-sectional

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research (i.e., slightly more educated but representative of the target population with respect to sex and

age).

Insert Table 1 about here

3.3 Construct Measurement

We extensively screened relevant literature and selected established scales to measure our

constructs. Table 2 lists the items used to measure each construct in our model along with relevant

psychometric information (to be discussed in a subsequent section).

Insert Table 2 about here

3.3.1 Country Personality.

Country personality was measured with the 24 items developed by d’Astous and Boujbel (2007).

We employed the latter rather than Aaker’s (1997) brand personality scale (BPS) because (1) none of the

studies applying the BPS in a country context (e.g., Hosany et al., 2006; Murphy, Moscardo, &

Benckendorff, 2007) could fully replicate its original five-dimensional structure, (2) the number of

dimensions and items derived from the BPS differs from study to study thus questioning the applicability

of the BPS in a country context, and (3) the scale of d'Astous and Boujbel (2007) has been specifically

developed to operationalize the construct of country (rather than brand) personality making it more

conceptually appropriate for purposes of the present study.

Respondents were told that people sometimes think of countries as if they were persons and

associate them with characteristics that are typically used to describe human beings. As an example, they

were told that Canada could be described as “somebody” welcoming, calm, and wise (see also d'Astous &

Boujbel, 2007). Using a seven-point format, subjects were subsequently asked to rate the extent to which these

24 personality traits describe the three stimuli countries (1=“does not describe this country at all”, 7=“describes

this country perfectly”).

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3.3.2 Product-Country Image

PCI was measured with Roth and Romeo’s (1992) scale capturing consumers’ evaluations of

products from a specific country in terms of innovativeness, design, prestige, and workmanship. This scale

has subsequently been widely used in previous COO research (e.g., Li, Fu, & Murray, 1997; Okechuku &

Onyemah, 1999; Pappu, Quester, & Cooksey, 2007). However, in contrast to previous applications, we

approach PCI as an aggregate (i.e., summary) construct rather than as a latent construct (Law et al., 1998).

Such a specification is conceptually fully consistent with Roth and Romeo’s (1992: 480, added emphasis)

own definition of PCI as “the overall perception consumers form of products from a particular country,

based on their prior perceptions of the country’s production and marketing strengths and weaknesses” as

well as Narayana (1981: 32, added emphasis) who emphasizes that “the aggregate image for any

particular country’s product refers to the entire connotative field associated with that country’s product

offerings, as perceived by consumers”. The four items were rated on a nine-point semantic-differential

format. Subsequently, an aggregate score showing consumers’ overall evaluation of products stemming

from each stimulus country was created and used in the analysis.7

3.3.3 Socio-Psychological Constructs

An extensive literature review revealed that there is “little disagreement on the measurement of

national identity” (Blank & Schmidt, 2003: 296). Thus, similar to Verlegh (2007), we used a four-item

measure with items drawn from Doosje et al. (1995; 1998) and Mlicki and Ellemers (1996). Consumer

ethnocentrism was measured with the five-item version of the CETSCALE which has been previously

validated in a survey of more than 3000 consumers across the EU (Steenkamp, Hofstede, & Wedel, 1999).

Consumer cosmopolitanism was operationalized based on the three-dimensional structure proposed by

Riefler & Diamantopoulos (2009). Specifically, open-mindedness was measured with four items (e.g., “I

like to learn about other cultures”), diversity appreciation with three items (e.g., “having access to

products coming from many different countries is valuable to me”), and consumption transcending

borders with four items (e.g., “I love to buy bits and pieces from different countries to bring the world into

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my home”). All items were rated on a Likert-type format ranging from 1 (strongly disagree) to 7 (strongly

agree).

3.3.4 Behavioral Intentions

Consumers’ purchase intentions were measured with three items taken from Putrevu & Lord

(1994). Consumers’ intention to visit a country were measured with four items taken from previous COO

and tourism research (i.e., Um & Crompton, 1990; Ger, 1991; Javalgi, Thomas, & Rao, 1992). All items

for the outcome variables were rated on a seven-point scale.

3.4 Manipulation Check

As a first check, based on prior measures of affect (Schmitt, Pan, & Tavassoli, 1994), four semantic

differential items ranging from 1 (“like”, “positive”, “good”, “pleasant”) to 8 (“dislike”, “negative”,

“bad”, “unpleasant”) of country affect were included in the questionnaire. It was expected that the three

stimuli countries would score differently on these items, with the home country scoring highest followed

by the affinity and animosity countries (in that order). A repeated measures ANOVA confirmed that

means were indeed significantly different at p<.001 across the three countries, with the home country

receiving the highest scores and Germany the lowest.

As a second manipulation check on the content validity of the personality dimensions as well as the

countries chosen, the personality profile of the home country was compared to those of Italy and

Germany. Using repeated measures ANOVA and controlling for familywise error using a Bonferroni

adjustment, significant differences (at p<.001) were observed for all three dimensions, with Italy scoring

higher than Germany on positive affect dimensions (i.e. agreeableness) and lower on negative affect

dimensions (i.e., wickedness and snobbism), these results are consistent with the affinity/animosity

distinction between Italy and Germany as country stimuli. Italy also scored highest on conformity,

consistent with its perception as a religious and traditional country in Europe (partly due to the influence

the Roman Catholic Church has in the country). Another criterion for selecting our foreign COO as stimuli

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was the degree to which they were perceived as good production origins (as captured by assiduousness).

Here, Germany was expected to score significantly higher than Italy as it is well known for its high

production standards (see also Usunier & Cestre, 2007). Results confirm this hypothesis (at p<.001).

Finally, regarding unobtrusiveness, Italy and Germany received exactly the same scores and were

significantly different from the home country (at p<.001). The reason for this probably lies in the

relatively small size of the home country as well as its neutral stance in the European Union. Italy and

Germany belong to the largest economies and are both NATO members in addition to being EU members.

The home country has a much weaker vote in the European summit, which, coupled with its neutral status,

might induce people to feel inferior compared to the other two countries. Thus, in total, we find evidence

for the appropriateness of the countries chosen as stimuli as their personality profiles are indeed quite

distinct.

Insert Table 3 about here

4. Results

Structural equation modeling (SEM) using LISREL 8.80 was used to evaluate the measurement

properties of the operationalizations of our focal constructs and subsequently test the research hypotheses.

Following Gerbing & Anderson (1988), a two-step approach was employed, whereby the relevant

measurement models were examined first, followed by an estimation of the structural paths aimed at

testing the research hypotheses.

4.1 Measurement Model

Since all scales employed in our study had been validated in previous research, we used

confirmatory factor analysis (CFA) to examine the psychometric properties of our measures (see Table 2

earlier). We used several criteria to evaluate the measurement items, including the magnitude of each

item’s loading and error variance estimate, cross-loadings of items, and the presence of correlated error

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variances (Bagozzi & Yi, 1988; Steenkamp & Trijp, 1991). Based on this analysis, one item in the country

personality scale, namely “mysterious”, showed undesirable properties (i.e., factor loadings below the

recommended threshold value of .5, relatively high cross-loadings, and significant error correlations). As

omitting this item could be also defended from a content validity perspective (see endnote 6), we decided

to eliminate “mysterious” from the conformity dimension. This resulted in a significant improvement in fit

for the country personality model (home country: ∆χ²=101.27, ∆d.f.=22, p<.001; Italy: ∆χ²=129.77,

∆d.f.=22, p<.001; Germany: ∆χ²=100.43, ∆d.f.=22, p<.001). The measurement models for the other

constructs in our study showed acceptable fit requiring no adjustments in their original specification.8

Having established the overall fit of the measurement models, composite reliabilities were

calculated and were all well above the recommended threshold value of .60 (Bagozzi & Yi, 1988).

Convergent validity at the item level was assessed by examining the magnitude and significance of the

factor loadings and their associated t-values; the relevant parameter estimates were all positive and in the

expected direction (see Table 2). Discriminant validity between the six dimensions of the country

personality construct was assessed using procedures outlined by Fornell and Larcker (1981), whereby the

shared variance between the dimensions of a construct should be less than the average variance extracted

(AVE) by either of the individual dimensions. Shared variances ranged from a minimum of almost 0 %

(conformity and wickedness) to a maximum of 44 % (snobbism and wickedness), whereas the AVEs from

46 % to 70 %, thus providing support for discriminant validity of the dimensions.

The discriminant validities of country personality, PCI, the three socio-psychological traits and the

behavioral intentions variables were assessed following Bagozzi’s (1993) procedure. The inter-construct

correlations between the six country personality dimensions and PCI ranged from a minimum of φ=-.19

(snobbism and PCI) to a maximum of φ=.52 (assiduousness and PCI). Next, for the two constructs with

the highest inter-correlations (i.e., assiduousness and PCI), two nested models were specified, one with

free correlation between the constructs, and one in which the inter-construct correlation was set to unity

(Anderson & Gerbing, 1988; Bagozzi, Yi, & Phillips, 1991). The difference in χ² was significant (∆χ²=

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31.30, ∆d.f.=1, p<.001), confirming that country personality and PCI are indeed distinct constructs. The inter-

construct correlations for purchase and visit intentions were φ= .36 (∆χ²=473.47, ∆d.f.=1, p<.001) for the

home country, and φ= .54 (∆χ²=405.58, ∆d.f.=1, p<.001) for Italy, indicating discriminant validity

between these two constructs.

For the socio-psychological traits, the inter-construct correlation between consumer ethnocentrism

and national identity was φ=.31 (∆χ²=1545.22, ∆d.f.=1, p<.001), between consumer ethnocentrism and

consumer cosmopolitanism φ=-.35 (∆χ²=226.85, ∆d.f.=1, p<.001), and between national identity and

consumer cosmopolitanism φ=-.07 (∆χ²=344.57, ∆d.f.=1, p<.001), suggesting that all are related but

nevertheless distinct constructs (see also Cleveland et al., 2009; Verlegh, 2007). These correlations are

also in line with our theoretical expectations. Consumer ethnocentrism is positively correlated with

national identity, because both share a pro-ingroup orientation. Consumer cosmopolitanism is strongly

negatively correlated with consumer ethnocentrism because the first values outgroups whereas the second

devalues them. Consumer cosmopolitanism has a small (but not significant) negative correlation with

national identity because these two constructs are almost orthogonal in nature with the first being pro-

outgroup, the second pro-ingroup. Thus, we have evidence that our socio-psychological construct cover a

wide range of ingroup and outgroup orientations.

4.2 Common Method Bias

Because all data are self-reported and collected using a cross-sectional research design, common

method bias might have confounded the true relationships among the theoretical constructs of interest

(Podsakoff et al., 2003). As noted, we took several procedural steps to minimize common method bias

during data collection. Regarding statistical remedies, in the pre-tests, we also included a measure of

social desirability (Netemeyer, Burton, & Lichtenstein, 1995), which refers to the tendency of some

people to respond to items more as a result of their social desirability than their true feelings (Podsakoff et

al., 2003). The correlations between the social desirability scale and our construct measures were all low

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(the maximum being φ=-.25 for wickedness in the case of Germany and φ=-.23 in the case of Italy), which

is in line with the results of Netemeyer, Burton and Lichtenstein (1995) who reported on values ranging

between -.26 and .09. We thus conclude that socially-desirable responding is unlikely to pose a major

problem in our study.

For the main study, Harman’s one-factor test, confirmatory factor analysis, and Lindell &

Whitney’s (2001) marker variable assessment technique were used to assess common method bias.

Regarding the first assessment, all variables were entered into an exploratory factor analysis, to determine

the number of factors that are necessary to account for the variance in the variables. In no case did a single

factor explain the majority of the total variance and in all instances the number of factors extracted

corresponded to the number of theoretically expected constructs. In the home country model, eleven

factors (eigenvalues>1.0) were extracted; the first factor accounted for 24 % of the variance and all factors

together accounted for 73 % of the total variance. The models for Italy and Germany revealed similar

results: the eleven factors together accounted for 72 % (Italy) and 64 % (Germany) of the total variance;

the first (largest) factor did not account for a majority of the variance (Italy: 21 %; Germany: 18 %).

We also estimated a CFA model with all of the items loading onto a common method factor (see

also Iverson & Maguire, 2000; Korsgaard & Roberson, 1995). Comparing this model with a measurement

model containing eleven latent variables for the home country and Italy, respectively, revealed a highly

significant deterioration in chi-square (home country: ∆χ²=9998.05, ∆d.f.=54, p<.001; Italy:

∆χ²=8343.02, ∆d.f.=54, p<.001; Germany: ∆χ²=10117.06, ∆d.f.=54, p<.001). This finding also did not

indicate that common method bias was severe.

Finally, Lindell and Whitney’s (2001) marker variable assessment technique was used. In line with

Rindfleisch, Burroughs, & Wong (2009) we conducted an analysis using education (1=less than high

school, 4=graduate school) as the marker variable. This item was selected as it was conceptually unrelated

to both our dependent variables and our predictor variables. Following Lindell and Whitney (2001), all

variables with negative correlations with either the predictor or criterion variables were reverse-scored (i.e.,

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wickedness, snobbism, and unobtrusiveness). Next, the correlations between the marker variable and the

two criterion variables (i.e., consumers’ purchase and travel intentions) were inspected. As correlations were

all non-significant (i.e., -.01 and .04 in the home country context and .02 and .04 in the case of Germany), or

really low (i.e., .10 and .13 in the case of Italy), we have further support for the discriminant validity of our marker

variable. Next, we picked the smallest positive correlation of our marker variable with the predictor and/or

criterion variables, which was φ= .03 for the home country, φ= .02 for Italy, and φ= .01 for Germany. After

partialing out this value from the significant zero-order correlations between our constructs, all correlations

among our predictors and outcomes maintained statistical significance. Overall, the results of these

analyses did not suggest a threat of common method bias and provided further support for our measures’

validity.

Having established the psychometric soundness of our measures, we then proceeded to estimate the

structural model and test our research hypotheses.

4.3 Structural Model

Consistent with our research hypotheses, three models were estimated for the home country, Italy,

and Germany respectively (Table 4).9

Insert Table 4 about here

4.3.1 Country Personality and PCI (H1 – H3)

In both a home and foreign country context, out of the six personality dimensions, four showed a

significant impact on PCI. Specifically, among the positive dimensions, assiduousness and conformity were

significant predictors of PCI in the case of the home country and Italy, and all three dimensions significantly

impacted PCI in the case of Germany. This provides partial support for H1 for the home country and Italy, and

full support in the case of Germany. Regarding the negative personality dimensions, only unobtrusiveness was

a significant predictor (in all three countries). Thus, weak support for H2 is obtained. Overall, as

hypothesized, positive and negative traits of a country impact the evaluation of a country’s PCI, with the

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former traits playing a more important role than the latter. PCI turned out to be a significant predictor not

only of consumers’ intentions to purchase products from a country (H3a), but also their intentions to visit a

particular country (H3b). This fully supports H3 and highlights that consumers’ country image perceptions

have behavioral implications that go beyond product purchases.

4.3.2 National Identity (H4-H6).

In line with social identity theory, national identity had a strong and positive impact on positive

home country personality traits and a negative impact on negative home country personality traits. Thus,

H4 is fully supported. In a home country context, national identity strongly and significantly impacted on

PCI and consumers’ intentions to purchase products from, and visit a particular country. Thus, H5 and H6

are also fully supported.

4.3.3 Consumer Ethnocentrism (H7-H11).

The impact of consumer ethnocentrism on the focal constructs in our model turned out to be

dependent on the country setting. Specifically, in a home country context, the impact of consumer

ethnocentrism on the behavioral outcomes is fully mediated via its impact on assiduousness; this offers

only weak support for H7a. As no direct impact on PCI or any of the outcomes was observed, H9a and

H10 (a,b) were not supported. In a foreign country context, on the other hand, consumer ethnocentrism

had a strong and direct impact on purchase intentions (supporting H11a), but not visit intentions (H11b)

and PCI (H9b); these findings apply to both Italy and Germany. The impact of consumer ethnocentrism on

the country personality dimensions varied depending on the specific foreign country used as stimulus. In

the affinity country context (Italy), a strong link to negative traits such as snobbism and unobtrusiveness

was found, and in the animosity country case (Germany) a strong impact on wickedness was additionally

observed. Thus, H8b is partially supported with respect to Italy and fully supported with respect to

Germany. Regarding the impact of consumer ethnocentrism on the positive country personality

dimensions, no effect was found for Italy, while a positive link between consumer ethnocentrism and

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conformity was found for Germany, which is contrary to expectations. Thus, H8a is rejected. An

explanation for this counterintuitive finding is perhaps provided by research on the Big Five. There,

openness to experience is expected to serve as a ‘double-edged sword’ that predisposes individuals to feel

both the good and the bad” (DeNeve & Cooper, 1998, p. 199). Thus, despite being perceived as a positive

trait of a country with respect to PCI (H7a/H8a), conformity appears to be a negative trait of a country

from the perspective of ethnocentric consumers.

4.3.4 Consumer Cosmopolitanism (H12-H14).

In line with our expectation, consumer cosmopolitanism had a significant impact on PCI and

consumers’ purchase and visit intentions, thus providing full support for H13 and H14 (a,b). An

interesting finding was detected with respect to its impact on the country personality dimensions (H12). In

the affinity country context (Italy), consumer cosmopolitanism had a significant impact on agreeableness

and conformity as well as wickedness. In the animosity country context (Germany), on the other hand, no

impact on any country personality dimension was found. Thus, in contrast to consumer ethnocentrism that

seems to bias consumers’ positive traits of the home country and negative traits of a foreign country,

cosmopolitan consumers seem to focus more on positive traits of a foreign country. Furthermore, the

influence of consumer ethnocentrism seems to be relatively more influential in an animosity country

context, and cosmopolitanism in an affinity country context.

4.3.5 Mediation analyses.

To test the mediation effect of PCI linking the antecedents (i.e., the six personality dimensions and

the socio-psychological traits) and the two outcomes in our model (i.e., purchase and visit intentions), we

estimated alternative structural models based on Baron & Kenny (1986) and the application thereof by

Maxham & Netemeyer (2002) and Andrews, Netemeyer, Burton, Moberg, & Christiansen (2004).

Specifically, we investigated four conditions under which the existence of mediation can be satisfactorily

documented (see Table 5). The first condition is satisfied when all antecedents directly impact on the

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mediator (PCI). The second condition is satisfied if the mediator affects the dependent variables (purchase

and visit intentions). Both conditions were tested by the paths estimated in the hypothesized model

previously illustrated in Figure 1 and summarized in Table 4.

The third condition is satisfied if the antecedents (the six personality dimensions and the socio-

psychological traits) affect the two outcomes in our model. In line with Maxham and Netemeyer (2002),

we estimated a model with only direct paths from the antecedents to purchase and visit intentions. In this

direct model, the covariations among the socio-psychological traits, the six country personality

dimensions and PCI, and the covariation between PCI and the two outcome variables have not been

accounted for, thus decreasing model fit.

As expected, and shown in Table 5, the relationships between the socio-psychological traits and the

outcomes did not change compared to the hypothesized model, with national identity and consumer

cosmopolitanism having a strong impact on all outcomes, and consumer ethnocentrism influencing

consumers’ intentions to purchase foreign products only. Surprisingly, and in contrast to the argument

usually raised in the literature that an object’s personality is too abstract to be directly related to consumer

behavior (Kassarjian, 1971), most of the country personality also showed direct and strong effects on the

outcomes in our model. Agreeableness had a strong and significant (p < .05) impact on consumers’

intentions to purchase products from the home and foreign countries, as well as intentions to visit foreign

countries. In a foreign country context, assiduousness significantly (p < .01) impacted on consumers’

purchase and visit intentions. Wickedness had a strong (p < .01) and negative impact on consumers’

intentions to purchase products from the home country, and snobbism on consumers’ intentions to visit

foreign countries (p < .01). The only counterintuitive finding was the positive effect of unobtrusiveness on

consumers’ intentions to purchase products from the home country. Thus, despite having a negative effect

on PCI in all three settings (i.e., home and foreign), unobtrusiveness seems to be positively related to

purchase behavior in the home country. A possible explanation for this unexpected result is offered by the

special position of the home country in relation to the other two countries (see also earlier section on

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manipulation check). Specifically, because respondents come from a country that is neutral and relatively

small compared to the other two, they might feel inferior; this might lead them to engage in identity

enhancing mechanisms such as purchasing home country products. At the same time, the respondents

seem to acknowledge that countries that are dependent, cowardly and wimpy (as implied by the

unobtrusiveness dimension) do not produce high quality products (hence the negative relationship with

PCI).

Overall, we can conclude that the third condition for mediation is satisfied for the socio-

psychological traits as well as for agreeableness, assiduousness, wickedness, snobbism and

unobtrusiveness in the instances described above (Table 5).

Insert Table 5 about here

The fourth condition is satisfied if the direct paths from the independent variables (the six

personality dimensions and the socio-psychological traits) to the dependent variables (purchase and visit

intentions) become nonsignificant (full mediation) or their impact is reduced (partial mediation) when the

paths from the independent variables to the mediator (PCI) are included in the model. The full model

(incorporating direct paths from the antecedents to the outcomes) performed significantly better than the

hypothesized model shown in Figure 1 in all three countries (home country: ∆χ2 = 30.50, ∆d.f. = 12, p <

.001; Italy: ∆χ2 = 69.17, ∆d.f. = 12, p < .001; Germany: ∆χ2 = 59.09, ∆ d.f. = 12, p < .001). This indicates

that PCI does not fully mediate all the effects of the antecedents to the outcomes in our model.

Specifically, a closer inspection of these models revealed that the path from assiduousness to the outcome

variables in a foreign country context became nonsignificant, supporting full mediation. On the other

hand, the direct paths from agreeableness (home and foreign country) and snobbism (foreign country) to

purchase and visit intentions and wickedness and unobtrusiveness to purchase intentions (home country)

remained significant thus rejecting the full mediation hypotheses.

In line with Maxham and Netemeyer (2002), we finally estimated a model in which all

nonsignificant paths were removed (i.e., a partial mediation model). Comparing the latter to the full

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model, the increase in chi-square was significant for Italy (∆χ2 = 42.17, ∆d.f. = 12, p < .001), but not the

home country and Germany (home country: ∆χ2 = 8.76, ∆d.f. = 12, p > .10; Germany: ∆χ2 = 7.97, ∆d.f. =

9, p > .10). These analyses collectively indicate that PCI either fully or partially mediates the relationships

between country personality and socio-psychological traits and the outcomes in our model.

4.3.6 Additional Analysis.

To investigate the relative predictive validity of PCI versus socio-psychological traits on behavioral

intentions, we compared two modified versions of our conceptual model shown earlier in Figure 1. In the

first version, the paths from consumer ethnocentrism and national identity or consumer cosmopolitansim

to the three behavioral outcomes were set to zero (thus leaving PCI as the sole predictor of behavioral

intentions), whereas in the second version the paths from PCI to the two behavioral outcomes were set to

zero (thus leaving the socio-psychological traits as the only predictors of behavioral intentions). As

Table 6 shows, PCI was less important than socio-psychological in the case of the home country and Italy,

but not in the case of Germany. Thus, it appears that for countries that are popular tourism destinations,

socio-psychological traits of consumers are more important than PCI. For countries that are known for the

meticulous workmanship of their products such as Germany, on the other hand, PCI is the most important

predictor, and can even be an important determinant of tourism intentions.

Insert Table 6 about here

We used a similar approach to identify the relative importance of country personality versus socio-

psychological influences as antecedents of PCI perceptions. The results showed that country personality is

a much stronger predictor of PCI than either national identity, consumer ethnocentrism or consumer

cosmopolitanism (36% vs. 17% for the home country; 26% vs. 14% for Italy; 27% vs. 14% for Germany).

Thus, and in line with Shankarmahesh (2006) who calls for more caution when distinguishing between

country and consumer characteristics, our research findings show that the symbolic value of a country is a

more important driver of a country’s product image than socio-psychological traits of consumers.

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5. Conclusions and Implications

Drawing from social identity theory, this study developed and tested a conceptual model linking

five key constructs in COO research (country personality, product-country image, national identity,

consumer ethnocentrism, and consumer cosmopolitanism) to consumers’ behavioral intentions in both

domestic and foreign country settings. Our study thus offers a response to the often expressed criticism

that COO studies lack a solid theoretical foundation (e.g., Usunier, 2006; Verlegh & Steenkamp, 1999)

and also provides a holistic treatment of both country-specific (captured by country personality and PCI)

as well as consumer-specific characteristics (captured by national identity, consumer ethnocentrism, and

consumer cosmopolitanism) and their impact on distinct outcome variables (namely intentions to purchase

products from, and visit a given country). Importantly, our study is the first to embed the newly-developed

country personality construct within a network of theoretically relevant constructs and to examine its

relationships to both potential antecedents (i.e., socio-psychological traits of consumers) and

consequences (i.e., PCI).

From a theoretical perspective, the present study expands the scope of extant COO research by

recognizing that “country-of-origin is not merely a cognitive cue for product quality” (Verlegh &

Steenkamp, 1999: 523) and by approaching consumers’ perceptions of countries from a personality

perspective in addition to a conventional PCI perspective. Previous studies focusing on country images

often faced the problem that, especially in low familiarity situations, consumers were not always able to

evaluate a country (e.g., its political stability or stage of economic development; see Martin & Eroglu,

1993). In contrast, consumers do not face this problem when evaluating a country’s personality because a

rather abstract object such as a country is assigned with concrete personality traits that are easily

accessible in memory by consumers since they routinely use them to describe other people in their day-to-

day environment (d'Astous & Boujbel, 2007). Given that consumers tend to anthropomorphize objects to

facilitate interactions with the non-material world (Fournier, 1998), assigning countries a personality may

simply help consumers “connect” with different countries and, thus, facilitate the formation of PCI

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perceptions. In this context, with the exception of snobbism, a parallel of the country personality

dimensions to the Big Five human personality dimensions could be drawn. Interestingly, the neuroticism

dimension of the Big Five – which in many aspects is comparable to negative affect – seems to be split

into two distinct negative dimensions, namely wickedness and snobbism.

Regarding the relationships of the six country personality dimensions to extant COO research, our

findings show that country personality has a strong impact on the PCI of both the home and foreign

countries, although the relative importance of each personality dimension differs. Specifically,

assiduousness, conformity, and unobtrusiveness significantly influence PCI in both a domestic and a

foreign country setting, and agreeableness in the case of Germany. Wickedness and snobbism, on the

other hand, did not significantly affect consumers’ PCI perceptions, but impacted purchase intentions and

visit intentions directly. In a similar way, agreeableness consistently impacted both outcomes in a home

and foreign country setting. Thus, it appears that dimensions that are related to the evaluation of a country

as a production location, such as assiduousness, conformity and unobtrusiveness, are fully mediated via

PCI. Affective dimensions such as agreeableness, wickedness and snobbism, on the other hand, impact

consumer behavior directly and independently of PCI. This is in line with findings from the emotions

literature, showing that emotions can be a strong predictor of behavioral intentions independent of

cognitive factors (e.g., Richins, 1997; Schoefer & Diamantopoulos, 2008).

Our study also extends our understanding of the factors that influence consumers’ country

personality and PCI perceptions by highlighting the role of consumers’ socio-psychological traits as

relevant antecedents (Samiee, 2009). In this respect, we address another gap often highlighted in the COO

literature, namely that “research into the antecedents and influences of national image formation remains

virtually non-existent” (Papadopoulos & Heslop, 2003: 424). Particularly interesting in this respect is the

identified impact of national identity in a home country and consumer cosmopolitanism in a foreign

country context on country personality, PCI and behavioral intentions. Both national identity and

consumer cosmopolitanism appear to be key drivers of these three constructs which is not the case for

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consumer ethnocentrism.10 The latter appears to mainly influence the negative personality dimensions of

foreign countries, which ultimately result in negative buying intentions. Thus, our study provides further

support for a central conceptual feature of the ethnocentrism construct, namely the devaluation of out-

groups (Shankarmahesh, 2006), especially in an animosity country context. At the same time, consumer

cosmopolitanism seems to affect country personality in an affinity but not in an animosity country context.

Thus, we find further evidence for the pro-outgroup orientation of cosmopolitan consumers (Jaffe &

Nebenzahl, 2006).

A third theoretical contribution of the present study is that it highlights the role that (perceived)

characteristics of countries (i.e., country personality and PCI) play relative to socio-psychological

characteristics of consumers (i.e., national identity, consumer ethnocentrism, and consumer

ethnocentrism) in shaping consumer behavior. Previous COO studies have tended to focus on either

country characteristics (typically PCI) or consumer characteristics (usually consumer ethnocentrism) but,

with few exceptions (e.g., Balabanis, Mueller, & Melewar, 2007), have failed to consider both sets of

characteristics simultaneously. In contrast, our approach, using social identity theory as an integrative

framework, has enabled us to assess the relative importance of both country and consumer characteristics

as predictors of different behavioral intentions. Of particular interest – and relevance for related research

streams such as tourism research – is the revealed impact of PCI not only on purchase intentions but also

on visit intentions. This supports Han’s (1989) view that PCI can serve as a summary cue which may also

affect the non-product related decisions.

On the methodological front, our study’s main contribution lies in the independent validation of

d’Astous and Boujbel’s (2007) country personality scale. While the latter was originally developed in a

single country (Canada), our study replicated the scale in a different national context and intensively

assessed its psychometric properties. Our results revealed a valid and reliable scale that behaved as expected in

a network of theoretically-relevant constructs. We thus increase confidence regarding the use of the scale in

future research. The only exception might be the conformity dimension, which showed undesirable

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measurement properties as indicated by relatively low AVEs and composite reliabilities. Hence, future

research should be cautious when using this dimension and perhaps employ all items originally comprised

in this dimension rather than the short 4-item version put forward by d’Astous and Boujbel (2007).

A second methodological contribution of our study is that it highlights the fact that consumers’

socio-psychological traits and PCI perceptions are not orthogonal (i.e., uncorrelated) predictors of

behavioral intentions. From a statistical modeling perspective, this implies that omission of either set of

constructs in models of behavioral outcomes is likely to result in model misspecification with all the

negative consequences (e.g., biased parameter estimates) this entails.

From a managerial perspective, our study provides insights regarding country-related and

consumer-related factors that drive behavioral intentions and which, therefore, need to be considered when

developing international marketing strategies. Marketers who seek to promote a “buy domestic” theme

should reinforce positive associations of the home country and, in particular, target people via their

feelings of national attachment. Companies promoting their products internationally, on the other hand,

have several options. They could focus on socio-psychological traits of consumers such as

cosmopolitanism to define their target group. Alternatively, they could reinforce the traits associated with

their origin country in their international campaigns. A current example of the latter strategy is provided

by Citroën that wanted to pitch its C5 saloon model as a credible company car alternative to German

competitors Audi and BMW in the UK. It knew this would be no easy task - not only has Citroën

traditionally been thought of as a value brand, it also lacks the German heritage typically associated with

top-end cars. Citroën launched an advertising campaign where its new C5 model was shown in front of

famous German sights (e.g., the Brandenburger Tor) and the strap-line '"Unmistakably German*" *Made

in France' was used at the end of the commercial. The C5 gained a fourfold increase in sector share as a

result, spontaneous awareness of the C5 has risen from 3% to 15%, and purchase consideration up 50%

from 4% to 6%. Thus, associating a product with positive traits of a country seems to pay off.

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Country personality can also serve as a benchmarking tool for public policy officials when they

want to know how their country is positioned in the international arena from the perspective of a

consumer. In this respect, the country personality scale can be used to create country profiles enabling

comparisons of the focal country with the profiles of its most important competitors. From a diagnostic

perspective, the country personality dimensions provide concrete guidance on which factors public policy

has to focus on when designing image enhancement or repositioning strategies. For example, as

assiduousness seems to be the most important determinant of a favorable PCI, countries scoring high on this

dimension obviously have an advantage as a production location. On the negative side, countries scoring high

on, say, unobtrusiveness seem to face a significant problem as this personality trait negatively influences

consumers’ PCI perceptions.

6. Limitations and Directions for Future Research

Research on country personality is still at a very early stage. Our study lays the first ground in

exploring whether country personality impacts PCI and behavioral intentions in different contexts (i.e.,

home, animosity, and affinity country). Given that our study was conducted in a single country within the

European Union, further replication in other settings and with other target countries (e.g., varying in terms

of cultural distance and/or geographical proximity) as stimuli is necessary to generalize our findings.

Replication efforts in this direction are, of course, also needed to test the cross-national invariance of the

country personality scale.

Second, in terms of scope, the key focus of our study was on linking the relatively new country

personality construct to established constructs in the COO literature. In line with previous research (see

Roth & Diamantopoulos, 2009), we have focused on overall product evaluations in order to ensure

generalizability of findings. Otherwise, it would be difficult to identify whether the observed effects is due

to the country (home, animosity or affinity) or the specific product category chosen (e.g., functional versus

hedonic). Future research should analyze whether our findings also hold for specific product categories

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(e.g., do cognitive country personality dimension also have an impact on the PCI of hedonic products?)

and/or brands. Also, visit intentions could be broken down into specific destinations (e.g., a town, a

region, a holiday resort). Such a research design could also consider other extrinsic cues such as price,

brand or warranty in order to evaluate the relative importance of country personality and socio-

psychological traits relative to these other cues on behavioral intentions.

Third, our findings show that apart from consumer ethnocentrism, which is an established construct

in the COO literature, national identity and consumer cosmopolitanism seem to be very promising

constructs in explaining behavior in a home and a foreign country setting respectively (see also Riefler &

Diamantopoulos, 2009; Verlegh, 2007). However, several other socio-psychological traits such as

xenocentrism (Kent & Burnright, 1951), xenophilia (Perlmutter, 1954) or global consumption orientation

(Alden, Steenkamp, & Batra, 2006) could also be investigated in conjunction with the country personality

and PCI constructs in future research efforts to identify their impact on consumer behavior.

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43

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Yik, M. S. M. & Russel, J. A. (2001). Predicting the Big Two of Affect from the Giv Five of Personality. Journal of Research in Personality, 35, 247-277.

Yoon, S.-J., Cannon, H. M., & Yaprak, A. (1995). Evaluating the CYMYC Cosmopolitan Scale on Korean Consumers. Advances in International Marketing, 7, 211-232.

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Zeugner-Roth, K. P., Diamantopoulos, A., & Ángeles Montesinos, M. (2008). Home Country Image, Country Brand Equity and Consumers' Product Preferences: An Empirical Study. Management International Review, 48(5), 577-602.

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Endnotes

1 Specifically, Chao and Rajendran (1993) asked consumers to describe two hypothetical consumers, namely a college professor and a plant foreman owning products from Japan and Germany. In a similar vein, Nebenzahl, Jaffe and Usunier (2003) requested from their participants to portray a prototypical person who buys electronic products made in a particular country.

2 We found out that “neutral” can be interpreted from these two perspectives during the translation back-translation process of the questionnaire into the language of the survey country. As our pre-tests further showed that the literal translation into “neutral” resulted in different results in terms of range and distribution of that item compared to the other items contained in that dimension (i.e., “dependent”, “cowardly”, “wimpy”), we finally chose to use the item “indifferent” in the final questionnaire.

3 Note, however, that we later empirically test the extent to which the effects of the six country personality dimensions on behavioral intentions are fully mediated by PCI (see section on mediation analysis and Table 5).

4 Visiting the home country captures consumers’ domestic travel intentions (e.g., spending the holidays at home rather than abroad).

5 We are not disclosing the identity of the home country at this stage as doing so would be tantamount to revealing the authors’ identities and thus compromise the integrity of the double-blind review process. We will, of course, do so upon completion of the latter.

6 Although omitting the item “mysterious” led to a considerable improvement in reliability (α=.72 home country, α=.62 Italy) and although this item did not seem to be closely related to the other items in the conformity dimension from a face validity point of view, we nevertheless decided to retain this item in the main study and re-evaluate it then.

7 In the structural model, PCI was modeled as a latent variable with a single composite indicator; the loading of the latter was fixed to unity and its error variance to zero. For a similar procedure, see Zeugner-Roth, Diamantopoulos, & Ángeles Montesinos (2008).

8 As consumer cosmopolitanism was the only multi-dimensional construct in our study, we first assessed the psychometric properties of that scale separately by specifying consumer cosmopolitanism as a higher second-order factor with three first-order dimensions (i.e., open-mindedness, diversity appreciation, and consumption transcending borders). As this operationalization showed acceptable measurement properties (χ2=168.89, df=41, RMSEA= .08, NNFI= .96, CFI= .97), an average score of each dimension was calculated and subsequently used in the analysis (see Steenkamp, Batra, & Alden, 2003 for a similar approach).

9 We also considered possible confounding effects and incorporated in an initial model consumer demographics (age, gender, income) and country knowledge as control variables. As the substantive findings between the models in which the control variables were incorporated and those of the models without the controls were not materially different, we subsequently report the model estimates of the ‘trimmed’ models (for a similar approach see Steenkamp et al., 2003).

10 Note that, on a bivariate basis, consumer ethnocentrism is positively (negatively) related to consumers’ behavioral intentions in a home (foreign) country setting. However, its influence becomes non-significant when the other socio-psychological traits (i.e., national identity and consumer cosmopolitanism) are also included as predictors of behavioral intentions.

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TABLE 1: DEMOGRAPHIC PROFILE OF THE SAMPLE

Sample

n Percentage

Demographic Profile of the Survey Country (Percentage)*

Gender

Male 202 49.1 49.7

Female 209 50.9 50.3

Total (18-70 year old population) 411 100 100

Age

18-25 years 58 14.11 14.35

26-35 years 77 18.73 18.96

36-45 years 100 24.33 24.12

46-55 years 85 20.68 19.46

55-70 years 91 22.14 23.11

Total (18-70 year old population) 411 100 100

*Source: National Statistics Bureau

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TABLE 2: CONSTRUCT MEASUREMENT

CONSUMER-LEVEL CONSTRUCTS

National Identity C.R. AVE λ t-value

NAT1 I see myself as [citizenship]. .76 -

NAT2 I am glad that I am [citizenship]. .91 20.08

NAT3 I feel strong ties with [country]. .92 20.33

NAT4 Being [citizenship] is important to me.

.93 .77

.92 20.39

Consumer Ethnocentrism C.R. AVE λ t-value

CET1 [Country] people should not buy foreign products, this hurts domestic business and causes unemployment. .53 -

CET2 It is not right to purchase foreign products, because this puts [country] people out of jobs. .75 10.61

CET3 A real [citizen] should always buy domestic products. .88 11.46

CET4 I always prefer domestic products over foreign ones. .90 11.55

CET5 We should purchase products manufactured in [country], instead of letting other countries get rich of us.

.89 .64

.87 11.36

Consumer Cosmopolitanism C.R. AVE λ t-value Open-mindedness .81 -

Diversity appreciation .57 10.39

Consumption transcending borders

.78 .54

.81 12.14

Model Fit χ

2=180.77; df=51, RMSEA=.08, NNFI=.96, CFI=.97

COUNTRY-LEVEL CONSTRUCTS

Home Country Italy Germany

Purchase Intentions C.R. AVE λ t-value C.R. AVE λ t-value C.R. AVE λ t-value

PI1 It is very likely that I will buy products from [country].

.85 - .92 - .88 -

PI2

I will purchase products from [country] the next time I need products.

.82 16.73 .88 25.30 .85 22.14

PI3 I will definitely try products from [country].

.84 .64

.73 15.17

.90 .76

.81 21.52

.91 .77

.89 23.53

Visit Intentions C.R. AVE λ t-value C.R. AVE λ t-value C.R. AVE Λ t-value VI1 A trip to [country] will be a lot of fun. .78 - .85 - .83 - VI2 I would recommend going to [country] to others. .86 15.54 .95 22.32 .93 21.13 VI3 [Country] is a place one has dreamed of visiting. .54 10.41 .59 13.05 .68 14.94 VI4 [Country] is a place popular with travelers.

.81 .52

.67 12.98

.80 .53

.37 7.57

.86 .61

.66 14.33

† C.R.=Composite Reliability; AVE=Average Variance Extracted; λ=Standardized Loading; RMSEA=Root Mean Square Error of Approximation; NNFI=Non-Normed Fit Index; CFI=Comparative Fit Index.

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TABLE 2: CONSTRUCT MEASUREMENT (CONTINUED)

COUNTRY-LEVEL CONSTRUCTS Home Country Italy Germany

Country Personality C.R. AVE λ t-value C.R. AVE λ t-value C.R. AVE λ t-value

Agreeableness AGR1 Bon-vivant .64 - .89 - .67 - AGR2 Reveler .74 12.45 .88 22.64 .71 12.32 AGR3 Amusing .90 13.96 .77 18.93 .87 14.22 AGR4 Agreeable

.85 .59

.76 12.73

.87 .63

.59 12.78

.84 .57

.77 13.18 Wickedness WIK1 Immoral .77 - .72 - .80 - WIK2 Vulgar .87 18.06 .82 14.79 .84 18.16 WIK3 Decadent .76 15.62 .72 13.22 .74 15.75 WIK4 Offender

.88 .64

.81 16.84

.83 .64

.73 13.34

.87 .70

.79 16.98 Snobbism SNO1 Haughty .63 - .62 - .74 - SNO2 Snobbish .89 14.06 .92 13.89 .92 18.41 SNO3 Mannered .90 14.16 .85 13.44 .82 16.71 SNO4 Chauvinist

.87 .63

.72 12.20

.85 .59

.63 10.89

.88 .65

.72 14.60 Assiduousness ASS1 Organized .88 - .85 - .87 - ASS2 Rigorous .88 23.73 .91 22.78 .88 23.15 ASS3 Flourishing .80 20.12 .76 18.05 .80 19.63 ASS4 Hard to work

.90 .70

.78 19.23

.89 .68

.75 17.51

.90 .70

.80 19.88 Conformity CON1 Religious .77 - .75 - .82 - CON2 Spiritual .63 10.26 .50 8.21 .69 11.79 CON3 Traditionalist

.72 .46

.62 10.17

.71 .46

.75 9.54

.76 .52

.64 11.14 Unobtrusiveness UNO1 Cowardly .80 - .82 - .76 - UNO2 Wimpy .90 19.51 .90 19.73 .87 16.77 UNO3 Dependent .81 17.79 .77 16.89 .78 15.53 UNO4 Indifferent

.87 .62

.62 12.76

.85 .59

.56 11.58

.84 .57

.56 10.94

Model Fit χ2=840.00; df=377, RMSEA= .06,

NNFI= .96, CFI= .97 χ

2= 1088.72; df=377, RMSEA= .07, NNFI= .94, CFI= .95

χ2=794.28; df=377, RMSEA= .05,

NNFI= .96, CFI= .97 † C.R.=Composite Reliability; AVE=Average Variance Extracted; λ=Standardized Loading; RMSEA=Root Mean Square Error of Approximation; NNFI=Non-Normed Fit Index; CFI=Comparative Fit Index.

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TABLE 3: MEANS AND REPEATED MEASURES ANOVA

Home Country Italy (Affinity Country)

Germany (Animosity Country)

F p-value†

Agreeableness 5.44 5.94 4.54 289.14 <.001

Assiduousness 5.47 3.96 5.56 404.48 <.001

Conformity 4.84 5.39 4.23 233.11 <.001

Wickedness 2.66 3.06 3.22 52.53 <.001

Snobbism 3.53 3.95 4.59 125.23 <.001

Unobtrusiveness 3.34 2.95 2.95 22.67 <.001

† Adjustment for multiple comparisons: Bonferroni; all dimensions are significantly different from each other at p<.001 except for Unobtrusiveness (Italy, Germany) and Assiduousness (home country, Germany)

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TABLE 4: RESULTS OF STRUCTURAL MODEL

Home Country Italy Germany Hypo-theses

Constructs /Paths Expect. sign

Beta p-value Support Expect.

sign Beta p-value Support

Expect. sign

Beta p-value Support

CP& PCI

Agreeableness → PCI + .10 n.s. no + -.01 n.s. no + .21 <.001 yes Assiduousness → PCI + .31 <.001 yes + .32 <.001 yes + .21 <.001 yes H1 Conformity → PCI + .15 <.05 yes + .11 <.05 yes + .21 <.001 yes Wickedness → PCI - -.04 n.s. no - -.13 n.s. no - -.02 n.s. no Snobbism → PCI - -.02 n.s. no - -.04 n.s. no - -.01 n.s. no H2 Unobtrusiveness → PCI - -.15 <.01 yes - -.12 <.05 yes - -.12 <.05 yes

H3a PCI → purchase + .25 <.001 yes + .41 <.001 yes + .40 <.001 yes H3c PCI → visit + .19 <.001 yes + .27 <.001 yes + .33 <.001 yes

National Identity

NATID → agreeableness + .36 <.001 yes NATID → assiduousness + .20 <.001 yes H4a NATID → conformity + .14 <.05 yes NATID → wickedness - -.32 <.001 yes NATID → snobbism - -.33 <.001 yes H4b NATID → unobtrusiveness - -.39 <.001 yes

H5 NATID → home PCI + .16 <.01 yes H6a NATID → purchase + .26 <.001 yes H6b NATID → visit + .57 <.001 yes

n.a. n.a.

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TABLE 4: RESULTS OF STRUCTURAL MODEL (CONTINUED)

Home Country Italy Germany Hypo-theses

Constructs /Paths Expect. sign

Beta p-value Support Expect.

sign Beta p-value Support

Expect. sign

Beta p-value Support

Consumer Ethnocentrism

CET → agreeableness + .06 n.s. no - .07 n.s. no - .11 n.s. no CET → assiduousness + .12 <.05 yes - -.03 n.s. no - .03 n.s. no H7a/8a CET → conformity + .07 n.s. no - .10 n.s. no - .14 <.05 no CET → wickedness - .09 n.s. no + .11 n.s. no + .18 <.01 yes CET → snobbism - .01 n.s. no + .13 <.05 yes + .12 <.05 yes H7b/8b CET → unobtrusiveness - .07 n.s. no + .24 <.001 yes + .16 <.01 yes

H9a/b CET → PCI + .08 n.s. no - .01 n.s. no - -.02 n.s. no H10a/ 11a

CET → purchase + .07 n.s. no - -.27 <.001 yes - -.18 <.001 yes

H10b/ 11b

CET → visit + -.09 n.s. no - -.05 n.s. no - -.05 n.s. no

Consumer Cosmopolitanism

COSMO → agreeableness + .18 <.01 yes + .08 n.s. no COSMO → assiduousness + .05 n.s. no + .10 n.s. no H12a COSMO → conformity + .14 <.05 yes + .11 n.s. no COSMO → wickedness - -.14 <.05 yes - .00 n.s. no COSMO → snobbism - -.11 n.s. no - .04 n.s. no H12b COSMO → unobtrusiveness - .06 n.s. no - .07 n.s. no

H13 COSMO → foreign PCI + .29 <.001 yes + .11 <.05 yes H14a COSMO → purchase + .14 <.05 yes + .20 <.001 yes H14b COSMO → visit

n.a.

+ .33 <.001 yes + .23 <.001 yes

Model fit χ2=1426.65, d.f.=701, RMSEA= .05, NNFI= .96, CFI= .97

χ2=1675.16, d.f.=663, RMSEA= .06, NNFI= .94, CFI= .94

χ2=1307.10, d.f.=663, RMSEA= .05, NNFI= .96, CFI= .96

† n.s.=not significant; RMSEA=Root Mean Square Error of Approximation; NNFI=Non-Normed Fit Index; CFI=Comparative Fit Index.

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TABLE 5: MEDIATION ANALYSIS

CS Path Estimates: Home Country CS Path Estimates: Italy CS Path Estimates: Germany

Constructs /Paths Hypo-theses

Hypo-thesized Model

Direct Model

Full Model

Partial Mediation

Model

Hypo-thesized Model

Direct Model

Full Model

Partial Mediation

Model

Hypo-thesized Model

Direct Model

Full Model

Partial Mediation

Model Agreeableness → PCI .10 .10 -.01 -.01 .21*** .21*** .21*** Assiduousness → PCI .31*** .31*** .33*** .32*** .32*** .34*** .2 1*** .20*** .20*** Conformity → PCI

H1 .15* .15** .17** .11* .11* .11* .21*** .21*** .21***

Wickedness → PCI -.04 -.01 -.13 -.13 -.02 -.02 Snobbism → PCI -.02 -.02 -.04 -.05 -.01 -.01 Unobtrusiveness → PCI

H2 -.15** -.15*** -.18*** -.12* -.11* -.20*** -.12* -.12* -.13**

PCI → purchase H3 .25*** .19** .21*** .41*** .34*** .39*** .40*** .33*** .32*** PCI → visit H4 .19*** .20*** .18*** .27*** .19*** .21* ** .33*** .21*** .19*** NATID → home PCI H5 .16** .16*** .19*** NATID → purchase H6a .26*** .23*** .20*** .20*** NATID → visit H6b .57*** .62*** .59*** .57***

n.a. n.a.

CET → PCI H9a/b .08 .08 .08 .01 .01 .02 -.02 -.02 -.02 CET → purchase H10a/11a .07 .09 .07 .08 -.27*** -.25*** -.28*** -.28*** -.18*** -.19*** -.20*** -.20*** CET → visit H10b/11b -.09 -.09 -.10 -.09 -.05 -.04 -.07 -.07 -.05 -.07 -.08 -.06 COSMO → foreign PCI H13 .29*** .30*** .42*** .11* .12* .12* COSMO → purchase H14a .14* .27*** .11* .11* .20*** .28*** .20*** .20*** COSMO → visit H14b

n.a. .33*** .39*** .29*** .29*** .23*** .28*** .22*** :2 3***

Agreeableness → purchase - .16** .14* .17** .11* .12* .16*** .21*** .15** .13** Assiduousness → purchase - .09 .04 .13** .03 .18*** .12* .08 Conformity → purchase - .08 .05 .11 .08 .01 -.05 Wickedness → purchase - -.21** -.21** -.24*** -.06 -.02 .08 .08 Snobbism → purchase - -.07 -.07 -.07 -.06 -.12 -.11 Unobtrusiveness → purchase - .17** .19** .18** -.05 -.01 .00 .04 Agreeableness → visit - .07 .05 .15** .16** .15*** .27*** .23*** .21*** Assiduousness → visit - -.03 -.09 .14** .10 .18*** .15** .11* Conformity → visit - .14* .11 .03 .02 .02 -.02 Wickedness → visit - .01 .01 -.03 -.01 .07 .08 Snobbism → visit - .01 .01 -.19** -.19** -.15*** -.17** -.17** -.10* Unobtrusiveness → visit - .05 .07 .10 .12* .11 .04 -.07 R2: PCI .39 .39 .39 .33 .37 .32 .29 .29 .29 R2: Purchase Intentions .20 .26 .28 .27 .36 .33 .34 .38 .29 .27 .33 .31 R2: Visit Intentions .41 .41 .43 .41 .26 .32 .32 .30 .20 .26 .28 .26 χ2 1426.65 1535.69 1396.15 1404.91 1675.16 1822.99 1605.99 1648.16 1307.10 1451.18 1248.01 1255.98 d.f. 701 697 689 701 663 659 651 663 663 659 651 660 RMSEA .050 .054 .050 .049 .061 .066 .060 .060 .049 .054 .047 .047 NNFI .964 .957 .964 .965 .936 .928 .937 .938 .954 .944 .956 .956 CFI .967 .962 .968 .968 .943 .936 .945 .944 .959 .951 .961 .961 * p < .05; ** p < .01; ***p < .001

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TABLE 6: VARIANCE EXPLAINED BY PREDICTORS (R²)

Home Country Italy Germany

Models Purchase Intentions

Visit Intentions

Purchase Intentions

Visit Intentions

Purchase Intentions

Visit Intentions

Socio-psychological traits & PCI

.20 .41 .36 .26 .29 .20

Socio-psychological traits only

.16 .38 .28 .27 .18 .13

PCI only .13 .14 .25 .15 .20 .13

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FIGURE 1: CONCEPTUAL MODEL

Cosmopolitanism(Foreign)

ConsumerEthnocentrism

COUNTRYPERSONALITY

•Wickedness•Snobbism•Unobtrusiveness

•Agreeableness•Assiduousness•Conformity

PCI

PurchaseIntentions

VisitIntentions

H3a (+)

H3b (+) H6b/H14b (+)

H10a(+)/H11a(-)

H10b(+)/H11b(-)

H5/H13 (+)

H9a (+)/H9b (-)

H6a/H14a (+)

National Identity(Home)