For the past two decades, the Chinese foreign wine market has seen considerable growth, with most of the imported wine coming from France and Australia. Despite that, foreign wine still only represents 27.2% of current wine purchases within mainland China, while the majority of wine consumed in the country is actually produced domestically. The already sophisticated nature of wine marketing is made even more complex when considering cross-cultural factors and the Country of Origin (COO).
The COO effect refers to how an individual’s perception of a product’s stated or perceived COO impacts their cognitive, emotional, and behavioural processes and decision-making. As consumers in China are still new to Western-style wine and have limited knowledge and understanding of it, marketing efforts would focus on building product appeal through price, packaging, labelling, brand name, and COO to increase purchases. Out of these, Chinese consumers typically use price and COO as indicators of product quality. Previous research also suggests that COO effects may be influenced by consumption setting (formality and location), in that it may become stronger in public settings such as gatherings and restaurants. Perceptions of COO could also be of importance as wine consumption in China is not only due to its perceived health benefits but also for social prestige and to demonstrate sophistication to others.
Despite the wealth of research into the behaviours of Chinese wine consumers, the literature lacks a meaningful comparative, quantitative assessment of consumers’ perceptions and attitudes towards wines of varying COOs. Moreover, there is a gap in understanding of how consumption setting and consumer ethnocentrism jointly influence how consumers use COO as a cue. This study addresses these gaps and proposes a conceptual model that explains how COOs from France, Australia, and China differently inform consumers’ utilitarian, hedonic, and symbolic perceptions of a product and in turn their consumption behaviour, and how this process is influenced by consumption setting and ethnocentrism combined. This is especially relevant in the context of rising diplomatic tensions between China and the West, which have typically result in consumer backlash and ethnocentric consumption behaviours.
Method and sample
This study comprised a final sample of 324 participants who reside within China and are red wine consumers who had made a purchased within the last 6 months. Participants were recruited through the wjx.cn website, which is the largest online survey platform in China, and completed a self-administered online questionnaire. The questionnaire involved an imaginary scenario where participants were planning to purchase a bottle of red wine during their weekly shopping. They were randomly assigned to one of the two consumption settings: to have the wine with dinner at home by themselves or to take it to a dinner party with friends and work colleagues, and one of the three COOs of the red wine: Australia, France, and China. The survey then measured variables including their attitude, purchase intention, recommendation, utilitarian, hedonic, and symbolic values, and ethnocentrism using previously validated 7-point scales.
Key findings
1. Chinese consumers have a more positive towards French wine, higher purchase intention, as well as a more likelihood to recommend it compared to Chinese wine. However, there is no difference between Australian and Chinese wine.
2. Hedonic and utilitarian values play a significant role in influencing how COO perception drives consumer behaviour, while symbolic values had no effect. This explains how French wine has more positive effects on consumer behaviour because Chinese consumers perceive it as having a higher hedonic meaning and utilitarian function.
3. Consumer ethnocentrism will lower France’s COO effects on consumer behaviour, but not Australia’s COO effects. This implies that countries with higher product ethnicity or with a stronger COO image, such as French wine, are more susceptible to the negative impacts of ethnocentrism. On the other hand, COO effects of French wine will be amplified for consumers with low ethnocentrism.
4. Consumption setting also play an important role, such that in private settings, Chinese consumers with high ethnocentrism will experience less positive effects of French COO disclosure. However, public settings would not impact how ethnocentrism can reduce French COO effects.
Recommendations
First, the study results confirm the comparatively favourable COO effects of foreign wines, specifically French wine when compared with Chinese wine. This could inform marketers and diplomats in China to leverage the strengths of respective COO brands in the market.
Second, this study uncovers the perceptive dimensions that consumers use to evaluate wine. Specifically, consumers do perceive considerable differences in the social utility of wine and believe that consuming foreign wine will signify modernity, prestige, and distinction when compared with Chinese wine offerings and alternative offerings. This means French wine marketers in China can emphasise utilitarian and hedonic values in their marketing communications and sales strategies.
Finally, insights into how Chinese consumers’ ethnocentrism can influence their behaviour can also inform marketing strategies. Over the past decade, ethnocentric backlash and nationalist boycott movements have posed considerable threats to the sale of foreign products in China. However, this study suggests that consumers are less likely to manifest their ethnocentric beliefs in public consumption settings. This means marketing strategies can target public settings only like restaurants to circumvent consumer ethnocentrism, which would be critical especially in times of heightened political and diplomatic tensions between China and the West.
Researchers
More information
The research article is also available on eprints.