The effect of purchase type on preference for product-country image labels

Purpose This research aims to examine how purchase type (experiential vs material) influences tradeoffs between different product-country image (PCI) labels. Specifically, four studies explore how retailers’ framing of a product as either experiential or material affects tradeoffs between favorable vs less favorable PCIs. Design/methodology/approach Four controlled experimental studies were used to test the hypotheses. Findings When making material purchases, consumers have a higher relative preference for favorable PCI compared to when making experiential purchases. This effect is driven by status signaling motives and moderated by the contextual authenticity salience. Originality/value This research adds to the experiential and material literature by introducing a new mechanism – status signaling motives – influencing the tradeoffs between PCIs. Furthermore, the authors contribute to the PCI literature by showing that the weight consumer place on different PCIs is contingent on the purchase frame. Marketing practitioners and retailers aiming to leverage PCI in their marketing communications should use material frames when favorable PCI cues are present and opt for experiential frames when such cues are absent.