The country-of-origin effects in the Chinese dairy market

Dairy is one of the most produced and valuable agricultural products in the world. China is a key importer of dairy products. This thesis aims to explore the country-of-origin effects in the Chinese dairy market after the food safety scandal in 2008. Despite the fact that previous marketing studies have discussed the different driving factors for country-of-origin effects and their impact on brand equity of various products in various markets, the research on country-of-origin effects in the Chinese dairy market is still absent. In order to fill the research gap, the current study focuses on the following two aspects: 1. What drives the country-of-origin effects in the Chinese dairy market? 2. How can the country-of-origin effects impact on brand equity in the Chinese dairy market? Both qualitative (in-depth interviews) and quantitative (online questionnaire survey) techniques were employed as the methodological approaches in this research. Regression analysis, Hayes’ PROCESS analysis and structural equation modelling were used for examining the theoretical models and hypotheses testing. The key findings of this thesis were: 1. The driving factors for country-of-origin effects in the Chinese dairy market included: country image, product involvement, risk avoidance, product experiences and face consciousness. 2. Consumer ethnocentrism and consumer animosity can also drive the country-of-origin effects in the Chinese dairy market under the moderating effects of purchase frequency. 3. Country-of-origin effects have an indirect impact on brand equity. This impact is mediated by brand loyalty and brand awareness. This study develops a more comprehensive theoretical framework with the integration of various constructs, which includes the driving factors and impacts of the country-of-origin effects. This new theoretical framework is supported by empirical evidence. The research findings contribute to the marketing literature on country-of-origin effects, and provide marketing practitioners with practical business strategies to improve their marketing performance in the Chinese dairy market.