Perceived financial well-being and its effect on domestic product purchases: An empirical investigation in Brazil
International Marketing Review
ISSN: 0265-1335
Article publication date: 25 October 2018
Issue publication date: 25 October 2018
Abstract
Purpose
Global brands are attracted to emerging markets because of increasing wealth among their middle classes. However, amid increasing levels of consumer financial stress in many emerging markets, evidence points towards increased preferences for domestic products. The purpose of this paper is to examine the psychological constructs that mediate and moderate the relationship between reduced perceived financial well-being (PFWB) and domestic product purchases.
Design/methodology/approach
The authors develop a model drawing from three theoretical perspectives: consumer stress and coping, consumer information processing and social identity theory. Hypotheses are tested via structural equation modelling and moderated mediation analyses using data from a survey of Brazilian consumers (n=1,043).
Findings
Results show that the positive relationship between reduced PFWB and domestic product purchases is partially mediated by perceived value of global brands and frugality descriptive norm. Further analyses demonstrate that consumer confidence moderates the mediating effects of perceived value of global brands and pro-social consumer ethnocentrism on the relationship between reduced PFWB and domestic product purchases.
Research limitations/implications
The antecedents of domestic product purchases identified in this study indicate opportunities for marketers of domestic and foreign products to respond to reduced PFWB, especially in relation to pricing, branding and communications. Future research should examine implications of PFWB on different populations, including other emerging markets, developed markets and lower-income consumers.
Originality/value
This study contributes to international marketing literature by examining the hitherto unexplored influence of reduced PFWB on domestic product purchases.
Keywords
Acknowledgements
The authors would like to express their sincerest gratitude to the three anonymous reviewers and the editors for their constructive comments on this paper. All authors contributed equally.
Citation
Hampson, D.P., Ma, S.(S). and Wang, Y. (2018), "Perceived financial well-being and its effect on domestic product purchases: An empirical investigation in Brazil", International Marketing Review, Vol. 35 No. 6, pp. 914-935. https://doi.org/10.1108/IMR-12-2017-0248
Publisher
:Emerald Publishing Limited
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