Consumer behaviour towards Russian brands of foreign FMCG companies

Abstract

Goal: this study aims to explore the existent theoretical concepts that may explain the behavioural response of consumers in relation to various cross-categorical fast-moving consumer goods brands that constitute brand portfolios of international FMCG corporations. Namely, these concepts include the halo error, foreign-local bias, country-of-origin effects. The research grasps if changes in the consumer attitude exist when it comes to misidentification of brands by country of origin (the outcome from foreign-local bias), which is resulted by the occurrence of halo effect.

Methodology: the research suggests quantitative methodology to explore the customer viewpoints. The data was collected through online structured interviews with ordinary visitors of grocery shopping malls, analysed and interpreted under the structural equation modelling statistical technique.

Findings: from the customer standpoint, the research suggests that Russian consumer experience halo effect from the pseudo-local FMCG brands. Besides, this cognitive bias is shown to be positively related with the age of consumers, meaning that the older consumers are exposed to experience halo effect. The misidentification of FMCG brands by country of origin is directly influenced by the occurrence of halo effect among domestic consumers, but is not shown to drive their subconscious orientation towards pseudo-local FMCG brands.

Originality and contribution the authors: the research helps to identify the system of relationships that could explain the consumers’ subjective orientation towards pseudo-local FMCG brands. As not all the hypothesised paths being supported by the data, the significant relationships on consumers’ attitudes are identified.

Keywords:

FMCG brands, the halo effect, the pseudo-local brands, the foreign-local bias, the country-of-origin effects