Chinese perception and willingness to buy Taiwanese brands

Abstract

Purpose The purpose of this paper is to examine ethnocentrism and animosity in a special context of two societies that share cultural, historical, ethnic and geographical characteristics. In particular, it first investigates the relationships between Chinese ethnocentrism and animosity toward Taiwan, and then it examines the impact of these two factors on the Chinese perception of Taiwanese brand quality and their purchase intent. Design/methodology/approach Based on a sample of 605 respondents from China, data were analyzed by structural equation modeling. Findings The results show that although Chinese animosity toward Taiwan is moderate, it is significantly driven by ethnocentrism, which has a significant and negative effect on willingness to buy, but not on the perception of Taiwanese brand quality. The Chinese animosity toward Taiwan, however, has negative and significant effects on their perception of Taiwanese brand quality and their intention of purchasing Taiwanese brands. Research limitations/implications The immense size of the country has impeded the representativeness of the authors’ sample and the generalizability of the results. Also, the study covers only one type of product. Practical implications Forming partnerships with local Chinese businesses and developing strong ties with local communities could be considered as a solution to minimize or circumvent the effect of animosity and might help foreign companies appear more “local.” Originality/value In contrast to past studies that investigated ethnocentrism and animosity in the context of countries presenting several differences (e.g. China vs USA), this study investigates the effect of ethnocentrism and animosity in the context of two countries (China and Taiwan) that share cultural, historical, ethnic and geographic characteristics. Despite the strong ties between the two countries, the Chinese have a certain animosity, though moderate, toward Taiwan and consequently are less inclined to buy Taiwanese brands. This implies that Chinese animosity toward a country may be toned down or pronounced, depending on whether they have strong or weak ties with that country.