The Global/Local Product Attribute: Decomposition, Trivialization and Price Tradeoffs in Emerging and Developed Markets

Davvetas, Vasileios; Sichtmann, Christina; Saridakis, Charalampos (Babis); Diamantopoulos, Adamantios (2022). The Global/Local Product Attribute: Decomposition, Trivialization and Price Tradeoffs in Emerging and Developed Markets Journal of International Marketing, 31(3), pp. 19-40. Sage Publications 10.1177/1069031X221143095

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Accelerating anti-globalization challenges previously undisputed assumptions about the importance of a product’s globalness/localness in purchase decisions. Putting these assumptions to test, we conceptualize globalness/localness as a distinct product attribute and decompose its utility into weight and preference components. Subsequently, we offer an equity-theory-based prediction of the attribute’s declining relevance and quantify its tradeoffs with other attributes by calculating global/local price premiums. Conjoint experiments in two countries (Austria-India) reveal that (1) emerging (developed) market consumers exhibit relative preference for global (local) products, (2) emerging market consumers perceive higher preference inequity between global and local products than developed market consumers, and (3) the corresponding inequity triggers consumers’ cognitive inequity regulation (manifested through attribute trivialization in developed markets) and behavioral inequity regulation (manifested through asymmetrical willingness to pay for global/local products across developed/emerging markets). We also find that attribute trivialization and price premium tolerance are moderated by consumers’ spatial identities and price segment. The findings contribute to the theoretical debate on the relevance of product globalness/localness in de-globalizing times and inform competitive strategy, segmentation-targeting-positioning, and international pricing decisions.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Institute for Applied Data Science & Finance Business School
Name:	Davvetas, Vasileios; Sichtmann, Christina; Saridakis, Charalampos (Babis) and Diamantopoulos, Adamantios
Subjects:	H Social Sciences > HA Statistics
ISSN:	1069-031X
Publisher:	Sage Publications
Language:	English
Submitter:	Christina Sichtmann
Date Deposited:	30 Nov 2022 09:54
Last Modified:	06 Aug 2023 01:37
Publisher DOI:	10.1177/1069031X221143095
ARBOR DOI:	10.24451/arbor.18245
URI:	https://arbor.bfh.ch/id/eprint/18245