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The effects of company offshoring strategies on consumer responses

The effects of company offshoring strategies on consumer responses This paper develops a unique theoretical framework for explaining consumer reactions to corporate offshoring by testing the impact of the decision to offshore or to maintain domestic activities on two dependent variables: consumer attitudes toward the company and word-of-mouth communication. We conduct two controlled experiments administered in the field with adult consumers. Study 1 analyzes the processes underlying consumer reactions to corporate offshoring from the perspective of the perceived moral harm and good that offshoring produces. Results verify the mediating role of positive and negative moral emotions (i.e., gratitude and righteous anger) felt by consumers. Study 2 demonstrates the moderating role of consumer perceived risk of offshoring on the linkage between company offshoring and the same moral emotions and through these moral emotions on consumer attitudes toward the company and word-of-mouth communication. An unexpected finding is the mediation of the positive moral emotion of elevation on consumer attitudes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Academy of Marketing Science Springer Journals

The effects of company offshoring strategies on consumer responses

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References (88)

Publisher
Springer Journals
Copyright
Copyright © 2013 by Academy of Marketing Science
Subject
Economics / Management Science; Business/Management Science, general; Marketing; Social Sciences, general
ISSN
0092-0703
eISSN
1552-7824
DOI
10.1007/s11747-013-0340-y
Publisher site
See Article on Publisher Site

Abstract

This paper develops a unique theoretical framework for explaining consumer reactions to corporate offshoring by testing the impact of the decision to offshore or to maintain domestic activities on two dependent variables: consumer attitudes toward the company and word-of-mouth communication. We conduct two controlled experiments administered in the field with adult consumers. Study 1 analyzes the processes underlying consumer reactions to corporate offshoring from the perspective of the perceived moral harm and good that offshoring produces. Results verify the mediating role of positive and negative moral emotions (i.e., gratitude and righteous anger) felt by consumers. Study 2 demonstrates the moderating role of consumer perceived risk of offshoring on the linkage between company offshoring and the same moral emotions and through these moral emotions on consumer attitudes toward the company and word-of-mouth communication. An unexpected finding is the mediation of the positive moral emotion of elevation on consumer attitudes.

Journal

Journal of the Academy of Marketing Science – Springer Journals

Published: May 21, 2013

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