Foreign Product Preference among Indian Consumers: The Role of Product Reviews, Word of Mouth and Quality of Shared Information

Abstract

Decades post 1990 have seen rapid globalisation and technological advancement in the field of e-commerce, exposing consumers in emerging economies to an earlier unavailable wider range of foreign products and brands. Although the preference for both foreign and domestic products largely depends on consumer biases, studies show that shared information can influence consumer decision-making. This study aims to investigate the Indian consumers’ intentions towards foreign brands for apparel products. Using the theoretical foundation of the Theory of Planned Behaviour (TPB) and Social Exchange Theory (SET), the collected primary survey of 204 Indian consumers across a single product category (apparel) was analysed using Structural Equation Modelling (SEM). The study determined that both “product reviews” and “informal word-of-mouth” discussions have a positive and significant impact on consumer’s preference towards foreign brands. Further, the quality of information shared also plays a significant role in foreign brand preference. We also found evidence that an increase in income positively influences behaviour, however, the level of education has a negative influence. The findings of the study might serve as a roadmap for any foreign apparel brand looking to establish itself in an emerging market like India.