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consultant lecturer researcher writer |
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| How much is consumer willing to pay to protect his/her cultural identity? |
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| 28. februar 1994 | |
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Summary: For three decades people in socialist countries of Central and Eastern Europe had considered Western products as superior and highly desirable, and possession of almost any Western brand was to a large extent a status symbol. After great political and economic transformations in Europe, Western brands became part of everyday shopping scene in Eastern Europe. Somehow seems logical 'new’ consumers will really go after long desired new products and brands, and will forget about domestic brands. But studies of market development and consumer behavior in transforming countries show far more complex picture. If new products and foreign brands were of technical nature or clearly superior in quality, have been readily accepted. However, culture-bound products such as ketchup, which is not an independent product, but part of the fast-food system, for years could not find their customers. Other research showed, consumers’ political orientation could also affect shopping behavior of people in former socialist countries. Importance of country of origin effect for evaluation or acceptance of consumer products had been documented in several studies. Growing awareness of cultural identity in all European countries, which often develops into nationalism, will continue to influence consumer behavior. Buying domestic products to protect national/cultural identity is ofthe encouraged by governments, in order to protect domestic industry. If domestic products present good value for money, consumer and society as a whole should benefit from such behavior. However, if that is not the case, an interesting question arises: "How much extra is consumer willing to pay to protect his/her national or cultural identity?" Working paper, created during winter semester visit at Kellogg Graduate School, 1994. |
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