探討台灣的Y世代購買紅酒時對產地國或其他衡量標準的依賴 - 政大學術集成

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(1)國立政治大學國際傳播英語碩士學位學程 International Master’s Program in International Communication Studies College of Communication National Chengchi University. 碩士論文 Master’s Thesis. 論文題目 A study of Taiwanese Millennials and their reliance on country of origin in relation to other criteria on wine purchase 探討台灣的 Y 世代購買紅酒時對產地國或其他衡量標準的依賴. Student: Jaroslawa Grobelna Advisor: 郭貞 Cheng Kuo, Ph.D. 中華民國 107 年 07 月 July 2018. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(2) 探討台灣的 Y 世代購買紅酒時對產地國或其他衡量標準的依賴 A study of Taiwanese Millennials and their reliance on country of origin in relation to other criteria on wine purchase. 研究生：Jaroslawa Grobelna 指導教授: Advisor: 郭貞 Cheng Kuo, Ph.D.. 國立政治大學國際傳播英語碩士學位學程碩士論文. A Thesis Submitted to International Master’s Program in International Communication Studies National Chengchi University. In Partial Fulfillment of the Requirement For the degree of Master of Arts. 中華民國 107 年 7 月 July 2018. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(3) Acknowledgements. I would like to express my deepest thanks and sincere appreciation to my thesis advisor Professor Cheng Kuo for her support, advices and guidance throughout the writing process. With her help and encouragement I was able to complete my thesis in spite of all the difficulties. I would also like to express my gratitude to Professor Tsung- Jen Shih for his great help with SPSS analysis. I also want to thank my Taiwanese friends for helping me with the translation of the questionnaire, and my friend Jeffry Oktavianus who helped me format my thesis in APA style. Not to forget all the support I have received from my IMICS friends. Many thanks to my family, my mom and Andrzej for supporting me emotionally through all the hardships of writing my thesis. Thank you! And last but not least I want to thank my boyfriend Kamil for EVERYTHTING.. i. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(4) Abstract. Today, companies' success greatly depends on thorough undersigning of how consumers assess quality of products. There are various intrinsic and extrinsic quality signals a person can follow. One of the factors determining perception about products is the place where the product was made. Country of origin serves as an extrinsic cue, and is a substitute measure of product’s quality and excellence. However it is unknown whether in a globalized world young consumers still take country of origin into account. Thus, the aim of this study was to measure if Taiwanese Millennials rely on country of origin when purchasing wine, and if product knowledge, consumer ethnocentrism, and consumption occasion moderate the level of dependence on the following purchase criteria. To conduct the research a questionnaire has been used and posted on Facebook, targeting Taiwanese members of generation Y. It would found that young people in Taiwan indeed follow country of origin cue when purchasing wine, and that product knowledge and consumption occasion predict the level of reliance on the quality signal. Keywords: country of origin, product knowledge, consumer ethnocentrism, consumption occasion, Millennials, wine. ii. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(5) Table of Contents. Chapter I Introduction ............................................................................................................ 7 1.1 Research background ........................................................................................................ 7 1.2 Research objectives ......................................................................................................... 7 1.3 Research significance ...................................................................................................... 9 Chapter II Literature Review ............................................................................................... 12 2.1 Country of origin ............................................................................................................ 12 2.1.1 Country of origin image ..................................................................................... 12 2.1.2 Country of origin effect ...................................................................................... 13 2.1.3 Chronological literature review on country of origin ......................................... 14 2.2 The role and importance of country of origin in product evaluation ............................ 16 2.3 Perceived quality ........................................................................................................... 17 2.4 Product knowledge ........................................................................................................ 18 2.5 Consumer ethnocentrism ............................................................................................... 19 2.6 Consumption occasion ................................................................................................... 22 Chapter III Methodology....................................................................................................... 24 3.1 Research framework ...................................................................................................... 24 3.1.1 Research hypothesis ........................................................................................... 24 3.2 Research method ............................................................................................................. 26 3.3 Data collection and sampling technique ......................................................................... 26 3.4 Questionnaire design ...................................................................................................... 27 3.5 Measurement of research variables and reliability test .................................................. 28 Chapter IV Data analysis and results ................................................................................... 30 4.1 Reliance on country of origin ........................................................................................ 32 4.2 Analysis of research hypothesis 1 and 2 ......................................................................... 33 4.3 Reliance on price, packaging, wine sweetness and color ............................................... 35 iii. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(6) 4.4 Analysis of research hypothesis 3 ................................................................................... 40 Chapter V Conclusions and discussions ............................................................................... 42 5.1 Summary of research results .......................................................................................... 42 5.2 Limitations and future research ...................................................................................... 45 References ............................................................................................................................... 47 Appendix I English version of the questionnaire ................................................................ 55 Appendix II Chinese translation of the questionnaire ........................................................ 61. iv. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(7) List of Tables and Figures. Table 1 Factor loading and reliabilities ................................................................................... 29 Table 2 Demographics of respondents .................................................................................... 30 Table 3 Respondent’s monthly income in New Taiwanese Dollar ......................................... 31 Table 4 Wine consumption frequency .................................................................................... 31 Table 5 One- way repeated measures ANOVA analysis of purchase criteria ....................... 32 Table 6 Hierarchical multiple regression analysis with country of origin as a dependent variable .................................................................................................................................... 34 Table 7 Hierarchical multiple regression analysis with price as a dependent variable .......... 35 Table 8 Hierarchical multiple regression analysis with packaging as a dependent variable .. 37 Table 9 Hierarchical multiple regression analysis with wine sweetness as a dependent variable .................................................................................................................................................. 38 Table 10 Hierarchical multiple regression analysis with wine color as a dependent variable 39 Table 11 Wine purchase criteria for different occasion .......................................................... 41 Table 12 Summary of research hypothesis and outcomes of the analysis ............................. 42. Figure 1 Research model ......................................................................................................... 24 Figure 2 Importance of purchase criteria among Taiwanese Millennials ............................... 43. v. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(8) CHAPTER 1 INTRODUCTION. 1.1 Research background The last few decades have been especially crucial in the history of the world economy. The fast- moving globalization changed the way companies cooperate and do business. The rapid pace with which new products and brands appear on the market brings various challenges to the light (Pecotich & Rosenthal, 2001). The competition in the internationalized market is becoming more fierce with every year. That is why more than ever, it is important to understand consumers' behavior patterns. One of the most crucial constructs to comprehend and examine is the country of origin effect (Degoma & Shetemam, 2014). Nowadays the companies’ competitive advantage and success depends on a deep understanding of how consumers evaluate and choose products (Zdravkovic, 2013). When people assess a product they follow various extrinsic and intrinsic quality signals. Country of origin serves as an extrinsic quality cue and is a substitute measure of product’s quality, durability, and reliability. Thus, it has a direct impact on consumers’ perception about the product quality. However, it is unknown whether today's consumers still take country of origin cue into account when evaluating a product and making a purchase (Pecotich & Rosenthal, 2001; Zdravkovic, 2013) Even though most scholars’ findings stress the existence and importance of country of origin construct, still some studies say otherwise. With the progressive globalization, the relevance of country of origin is believed to fade out (Usunier, 2006). It is also said to have no impact on product evaluation (Pecotich & Rosenthal, 2001). The reason for that might be consumers’ inability to recognize the product’s true country of origin, because of the multinational production or global branding. Thus, there is a need to examine if country of origin effect is truly losing its importance in the era of globalization, and if companies can still use it to their benefit.. 1. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(9) 1.2 Research objectives The objective of this research is to examine if Millennials, also called Generation Y or Echo Boomers, follow country of origin cue when purchasing wine in Taiwan. In brief, the research will examine country of origin effect through testing whether young consumers take country of origin cue into account when buying alcoholic beverages. Further, the study will also examine Taiwanese Millennials reliance on other criteria upon wine purchase, such as price, packaging, wine sweetness, and wine color. Millennials is especially crucial group for consumer behavior studies, as its members are now starting their careers and making their first important purchase decisions. Each generation has unique values, and experiences that impact their behavior when shopping (Solomon, Russell-Bennett, Previte, 2012). When it comes to wine today Millennials may change how wine is bought, sold, and consumed. According to Silicon Valley Bank 2017 Wine Report Echo Boomers are the fastest growing segment in wine market. According to Silicon Valley Bank State of the Wine Industry2017 Millennials drink more wine than any other age group. In USA, in 2015, they consumed 42% of all the wine, drinking about 3 glasses per sitting, thereby constitute 30% of “High Frequency” drinkers (McMillan, 2016).The consumption of wine for members of Generation Y is thought to be an important part of their desired way of life. They drink wine as they perceive it as sophisticated and fashionable. Millennials love to try new kinds of wines coming from many different countries, that is why it is important for wine producers to understand Echo Boomers’ wine purchase behavior, while entering new market (Teagle, Mueller, Lockshin, 2010). With this research, I will add to the country of origin effect on alcoholic beverages field of study and to the body of research on purchase behavior of Millennials. One of the objectives of this dissertation is to find out whether country of origin cue is still taken into account when evaluating a product. Although, there have already been few studies published on this matter, majority of them looked at high involvement products, such as: electronic household appliances, cars, cameras and video, and luxury goods whereas wine is a low involvement product. Also, most of the research on the country of origin overlooked Asian countries and the studies were conducted in Western countries, such as the United States, Europe or Australia. When it comes to Taiwan, few studies have been published on the topic of country of origin and when related to wine, literature is even non- existent. The same situation applies to Taiwanese Millennials’ consumer behavior, where the number of studies 2. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(10) is very limited and outdated with latest study conducted in 2013, thus five years ago. And as mentioned before, global wine market is very dynamic— new producers and consumers are coming and going. That is why it is crucial to stay up to date with the changes in wine consumers’ behavior patterns. That is why this study aims at filling in this gap. Furthermore, to investigate the reliance on country of origin potential moderating variables, such as product knowledge, ethnocentrism, and consumption occasion will be presented and analyzed. Even though various studies have already measured the relationship between country of origin and the above-mentioned determinants they never analyzed all of the factors together. Previously, scholars have rather been testing one or two variables to understand the effects of country of origin. Also, it needs stressing that the relationship between country of origin and consumption occasion has not been yet analyzed, and this research aims to fill in this gap. Additionally, the potential moderating variables will be analyzed as to its influence on price, packaging, wine sweetness, and wine color. Summing up, this research aims to examine Taiwanese Millennials’ reliance on country of origin and other factors as evaluation criteria upon the purchase of wine, the following research questions are proposed : 1. To what extent do Millennials depend on country of origin when purchasing wine? 2. How does Millennials’ product knowledge influence reliance on country of origin cue, when evaluating wine? 3. In what way does consumer ethnocentrism impact Millennials’ reliance on country of origin cue when assessing wine? 4. How does consumption occasion of wine moderates the reliance on country of origin information? 1.3 Research significance There are many determinants that influence product quality assessment, for example price, advertisement, communication messages, or brand image and personality. Companies use branding in order to provide consumers with quality, value, and credibility cues on the product. This way helps them to make purchase decision. One of the factors determining perception about the products and brands is the place where the product was made. This 3. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(11) correlation is referred as country of origin effect (Kalicharan, 2014). The aim of this study is to analyze the importance of country of origin on products' evaluation. The research will focus on wine purchase behavior of Millennials (Gen. Y) in Taiwan. In brief, the research will examine country of origin effect through testing whether young consumers take country of origin cue into account when buying alcoholic beverages, and therefore if foreign companies can still use it in their marketing strategies (Zdravkovic, 2013). The reason why wine was chosen as a product category for the analysis is due to the fact, that the global wine market is very revolutionary. In recent years both new wine consumers and producers have been emerging (Felzensztein, 2011). Although traditional wine producers, such as France, Spain, or Italy, are still the world’s largest suppliers, Chile, Australia and South Africa arose as new wine exporters. They sell abroad over 50% of their total production volumes. Among largest wine producers they are in 6th, 7th and 8th place respectively (Felzensztein, 2011;Organisation Internationale de la Vigne et du Vin, 2015). Furthermore, new trends in wine consumption have been appearing. One of them is the arrival of new consumers from emerging countries, such as Brazil, Russia, India and China, also known as BRICs countries (Felzensztein, 2011). Moreover, in the past the biggest wine consumer countries (European) were the same countries as the largest producers. Now, however, the consumption of wine in Europe is decreasing, as people are becoming more concern with their health. On the other hand, United States became the biggest wine country consumer (McMillan, 2016). When it comes to wine consumers, Asian countries, including Taiwan also present new consumer groups and their new profiles. Taiwan is a progressive and fast- changing economy, with the population over 23 million people. As Taiwan’s economy continues to grow for more than 20 years, with the increasing level of purchasing power, the country became a home to an expanding market for imported wine. Through the years, Taiwan achieved living standard equivalent to Western countries (Veillette, 2016). Furthermore, with the increasing number of foreign investments and popular cultural texts Taiwanese culture, people and food consumption have been westernized. During the last seven years, Taiwan has become an opportunity for foreign wine producers to find new wine consumers. During that time the consumption of wine has grown by 8.6% annually, and is now still increasing (Veillette, 2016). As the Global Wine &Spirits—2016 Market study stresses, since the Economic Cooperation Framework Agreement signed by Taiwan and China in 2010, “Taiwan. 4. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(12) has become a strategic springboard for foreign producers who would like to do business in China or the wider Asia-Pacific region”(Veillette, 2016, p. 2). Furthermore, when listing importing opportunities for wine producers, Global Wine & Spirits—2016 Market research stresses the importance of targeting young people who play a crucial role in Taiwanese wine market (Veillette, 2016). According to the 2014 Health Promotion Administration Ministry of Health and Welfare report, in Taiwan people of 18-29 years old constitute 67.4% of all wine consumers. The second biggest age group to consume wine are people of 30-39 years old with 65.7 % of wine consumption. According to the same report conducted in 2005 the biggest age group to drink wine were people of 30-39 years old where 55.1 % of the population drank wine. The second largest group were Taiwanese of 18-29 years old with 52.7 % of the group consuming wine. These numbers exhibit that with time more and more young people have started to drink wine, and they have started to drink bigger quantities (Health Promotion Administration Ministry of Health and Welfare Report, 2005; Health Promotion Administration Ministry of Health and Welfare Report, 2014).. 5. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(13) CHAPTER 2 LITERATURE REVIEW. This chapter will present thorough literature review on country of origin. It will cover information on the concept’s definitions, and later introduce the idea of country of origin image, and effect. The chapter will also review the literature on the potential moderating variables of country of origin, namely product knowledge, consumer ethnocentrism, and consumption occasion. The relationship between the moderators and reliance on country of origin will be presented as well. 2.1 Country of origin At the beginning of country of origin research, the concept has been understood as country where a product is manufactured (Papadopoulos & Heslop, 2003; Zolfagharian, 2014). However, later on with the increasing globalization, the definition of country of origin must have been widened (Chao, 2001; Hamzaoui & Merunka, 2006). Thus scholars started to include country of assembly or country of design into the concept. Now country of origin may also mean country where company’s headquarters is located (Sae-Jiu, 2007), country of brand (Degoma & Shetemam, 2014; Pharr, 2005), country of corporate ownership (Thakor & Lavack, 2003), or product’s geographical origin (Daga, 2007; Degoma & Shetemam, 2014; Lopez- Lamelas, 2011). 2.1.1 Country of origin image Similarly to creating brand images for products, consumers also form images for particular countries and thus developing countries’ brand image. These consist of stereotypical beliefs consumers hold. One of the first concepts of the country of origin— country image perception image, was presented by Nagashima (Degoma & Shetemam, 2014). Nagashima (1970) in his survey of U.S. and Japanese businessmen Nagashima defined the country of origin image, as “the picture, the reputation, the stereotype that businessmen and consumers attach to products of a specific country” (Nagashima, 1970, p. 68). The researcher emphasized that this perception of a country of origin is the make-up of changeables, such as typical products, national characteristics, economic and political background, history, and traditions (Nagashima, 1970). 6. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(14) The image of the country of origin also refers to the consumers’ comprehensive perceptions regarding the quality of products made in a certain country (Bilkey & Nes, 1982; Han, 1989). In 1992, Roth and Romeo conceptualized the country image as a sum of perceptions of products from a given country, that is formed by consumers, based on their previous evaluation of the country’s production and its marketing strengths and weaknesses (Roth & Romeo, 1992). Country of origin image is also understood as a generic construct, where not only the country’s products, but also a great variety of factors, such as political, economical, and technical, determine country image (Martin & Eroglu, 1993). Country image is comprehended as a cognitive structure, where scholars such as Martin and Eroglu (1993) as well as Gertner and Kotler (1993) see it as an autonomous entity that has no connection to the image of the country’s products. Country image is identified with a set of ideas, beliefs and impressions, people have about a certain country (Martin & Eroglu, 1993). It is important to add that not all people have the identical image of the same country. The perception of a place may vary depending on a person (Gertner & Kotler, 2004). Another approach to the country of origin concept includes scholars that present country image and product image as related but independent elements of the theory. Which means that although the image of the country of origin and the image of a product are strictly connected, it is possible to distinguish the two of them and analyze the relationship with each other (Han, 1989; Lopez- Lamelas, 2011). The academics underline the importance of capturing both country image and product assessment facets in order to broaden the previous narrowly depicted country of origin concept (Häubl, 1996; Papadopoulos, Heslop & Bsmossy, 1990). Thus, for example, Knight and Calantone (2000) conceptualize country image as “a consumer’s perceptions about the quality of products made in a particular country and the nature of people from that country”( p.127). 2.1.2 Country of origin effect Kabadayi and Lerman (2011) in their study stated that for the past fifty years the country of origin effect on consumers’ intentions, perceptions and product evaluation, has been most researched subject in various fields, such as: marketing, business and consumer behavior. According to Papadopoulos and Heslop (2002), for the period of 1952-2001, the 7. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(15) research on the subject consisted of more than 750 publications, such as journal articles in the number of 361, meta- analysis and content analysis papers. More recently, as reported by Usunier (2005), the number of academic journal publications have risen to over 400. Including conference papers and dissentions in the research area, there is as many as 1000 contributions. Today there are many definitions of the country of origin effect. It may refer to: nationality bias (Cai, 2001), or impalpable barriers or obstacles that a product encounters when entering a foreign market (Wang & Lamb, 1983). In this study I adopt definition proposed by Bilkey and Nes (1982) and Samiee (1994), where country of origin effect is seen as positive or negative images of the country of origin. influencing consumers’ buying. behavior, decision making process and attitudes towards a product (Bilkey & Nes, 1982; Elliott & Cameron, 1994, Samiee, 1994). Therefore country of origin effect can be generally understood “as any influence that the country of origin has on a consumer’s positive or negative perception of a product” (Degoma & Shetemam, 2014, p. 2). These perceptions are based on consumer’s previous contact with a certain location and its products, for example trips made to certain countries. It has to be noted that the images of country of origin arise not only from consumers’ own impressions regarding the quality of the product, but also have their source in personal beliefs, brand image, and country’s service (Han & Terpstra, 1988; Lopez-Lamelas, 2011). Thus, the country of origin effect is a multi- dimensional construct as it integrates both general opinion about a given country and also the country’s products evaluation (Pisharodi & Parameswaran, 1994). 2.1.3 Chronological literature review on country of origin effect Usunier (2006) proposes a chronological literature review on country of origin subject, dividing it into three periods. The first one covers findings from mid 1960’s to 1982. The literature gathered at that time considered only country of origin variable when examining product evaluation, what automatically led to exaggeration of this determinant. Schooler (1965) was the first one to explain the significance of country of origin, on the example of fruit juices. In his study, Guatemalan students evaluated juices coming from different countries, namely: El Salvador, Cost Rica, Mexico, and Guatemala. Although the beverages were identical, the students’ evaluation of the product varied, depending on their origin. The author of the study concluded, that the participants preferred juices from Mexico. 8. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(16) and Guatemala because they exhibited unfavorable attitude towards the people from El Salvador and Costa Rica as they were influenced by negative stereotypes towards them. Another study was conducted in 1968, and aimed to measure the effect of country of origin effect. The subjects in the research were to evaluate two identical glass, with one written “Made in USA” on it and the other “Made in Japan” (Schooler & Wildt, 1968). The authors found that the differences in products assessment were due to prejudice against the country where the glasses were made. In the meantime, further research on the topic started to appear, such as these of Nagashima in 1970 and 1977. The scholar did two research on participants from United States, France Germany, England, and Japan. The main finding was that Japanese businessman value French products more favorably as they perceived France to be one of the kind, beautiful, affluent, and luxurious (Nagashima, 1977). His work gained recognition and until this day has been referred to. The reason for that is that Nagashima created a product measurement scale with twenty items and five dimensions which was used to examine country of origin image of a product and brand (Nagashima, 1970, 1977). The listed dimensions are: service and engineering, price and value, advertising and reputation, design and style, and lastly consumer’s profile. The second period is marked by years 1980’s to early 1990’s and is the beginning of country of origin research using multiple co- variables. Since Schooler and Wildt’s (1968) study Bilkey and Nes (1982) were the first one to expand the literature on the topic. They legitimated the importance of country of origin influence on product assessment and on various product categories (Bilkey & Nes, 1982; Nagashima, 1977). On the other hand, however, the authors exhibited negative attitude towards previous studies’ results because the research looked at country of origin as an isolated variable. The construct was seen as the only factor that had an impact on product evaluation. Thus, the level of influence on purchase intentions was overestimated (Bilkey & Nes, 1982; Lopez- Lamelas, 2011).Bilkey and Nes (1982) stressed that other determinants must be taken into account, such as intrinsic (e.g., packaging, performance) and extrinsic cues (e.g., price) which will be further explained in this study. In addition, other moderators of evaluation of product originating from different countries started to appear in the literature. For example, sociodemographics, like age, began to be examined by scholars. Also, next to country of origin, studies started to take product knowledge into account (Han & Terpstra, 1988) 9. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(17) Although country of origin research started to consider new attributes, at that time scholars were unable to confirm whether country of origin was losing its importance when measuring it along with other variables. Thus, during the second period the research on the topic became more complex and new scholars within the field of study emerged (Pecotich & Ward, 2007). The third period, starting from the 1990’s and lasting until today, is characterized by meta- analysis, and vast number of research on the topic of country of origin. Some of the worth mentioning studies are, for example, those of Samiee (1994). The author created a model, integrating both country stereotypes and history. Also, nowadays more and more scholars study the impact of the region of origin image in order to better understand purchase intentions of regional products. Moreover, consumer ethnocentrism was found to be influential when it comes to the usage of country of origin cue while evaluating products(Brodowsky, 1998; Gürhan-Canli & Maheswaran, 2000). Recently the country of origin relevance has been measured considering internationalization. In accordance with 2006 Usunier’s study, the importance of country of origin effect might have been diminished. The reason standing behind it is increasing globalization with which multinational production has increased as companies try to use all the opportunities to gain advantage and transfer their production into multiple countries with cheaper manufacturing costs. With the companies de- emphasizing the origin of their products and the consumers inability to detect the origin of purchased goods, country of origin effect might be losing its relevance (Usunier, 2006). 2.2 The role and importance of country of origin in product evaluation According to Lantz and Loeb (1996), country of origin exhibits one of the strongest levels of importance in product evaluation right next to determinants like price, or brand. Wall, Liefeld, Heslop, (1991) pointed out that the country of origin influenced by stereotypes is more powerful when it comes to the purchase decisions than price and brand. When consumers assess different products, country of origin acts as a cue. For many it is a strong predictor of product’s excellence (Verlegh & Steenkamp, 1999). There are certain groups of products where country of origin confers on them a specific value. For example, Swiss watches, Italian fashion, French perfume, or Scotch whisky embody a strong match between a product and its country of origin. The stronger the “fit” between a country and a product is observed, the better the overall consumers’ evaluation (Dinnie, 2015). Country of origin 10. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(18) stereotype is often used by consumers for products’ evaluation, for instance German cars must be excellent, Japanese electronics reliable, but also Chinese commodities are thought to be of poor quality. Depending on the image of the country and the ”fit” between its product, the “Made in” label tells customers if the commodity is either superior or inferior (Degoma & Shetemam, 2014). Therefore, based on the above literature review, we can say that there is a strong correlation between country of origin and product evaluation (Degoma & Shetemam, 2014; Gurhan-Canli & Maheswaran, 2000; Yasin, Nasser, & Mohmad, 2007). However, with the progressing globalization, the way in which consumers evaluate a product became very complicated. Today it is unknown whether consumers still take country of origin cue into account when they assess a product. That is why this research aims to answer this question and examine the reliance on country of origin among Taiwanese Millennials when judging wine. 2.3 Perceived quality Quality is an essential determinant of consumers’ satisfaction and it is a complex concept that cannot be characterized easily. Quality is not understood in the same manner by all people as everyone plays a different role in the society, trade and economic relations. It could be defined as a degree of excellence, performance, and satisfaction of consumers’ needs (Chandrupatla, 2009). It is also regarded as all of the product’s and service’s characteristics that have an effect upon their ability to meet stated or implied needs (Vowotor, 2002). Perceived quality is one of the most important constructs in consumer behavior. It can highlight the differentiation of products and services and thus, one of them can become choice of brand for a buyer. After Aaker (1991) and Zeithaml (1988) there could be stated that perceived quality is not the actual quality of a product or service but rather an attitude towards overall product’s excellence, merits and quality “with respect to its intended purpose, relative to alternatives” (Zeithamal, 1988, p. 5). It also refers to the general preference and superiority (Shirouyehzad, Hosseinzadeh- Lotfi, Shahin, Aryanezhad, & Dabestani,, 2012). Furthermore, perceived quality is a “perception about the product in the mind of the customers” (Shirouyehzad, et al., 2012, p. 879) formed based on the sum of product’s features and advantages. Perceived quality is in opposition to real, objective quality. It balances between objective product features and consumers’ inclinations. That is why scholars make a distinction between perceived and objective quality (Aaker, 1991; Vowotor, 2012). Perceived 11. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(19) quality is seen as subjective evaluation of certain products done by consumers. When consumers evaluate a given product they take quantity of usage and subjective judgment and feeling towards the excellence into account (Vowotor, 2012). On the other hand, however, when it comes to objective quality the construct refers to testable and provable advantages of previously set technical standards (Aaker, 1991). To fully understand the concept of product quality, it is crucial to explain extrinsic and intrinsic cues of a product that directly affect quality perception, and serve as purchase criteria. Intrinsic cues strictly relate to the product and it is not possible to modify them without changing the product. Each product has its own intrinsic cues. On the example of wine, the cues would be wine sweetness, color, or alcohol content (Hall & Jones, 2010). As for extrinsic cues they are not product specific, they signal quality across different brands and product categories. Extrinsic cues are one of the elements of overall product image and a criteria buyers follows while making a purchase (Shirouyehzad et al., 2012). Although consumers generally prefer to follow intrinsic cues, it is often difficult to gain access to them. That is why, when evaluating a product, consumers depend on extrinsic cues which are believed to be consistent and credible predictors of quality (Bredahl, 2004). When intrinsic cues are hard to acquire, extrinsic ones provide a “cognitive shortcut” (Zdravkovic, 2013, p. 90). Country of origin serves as an extrinsic cue and thus has a direct impact on consumers’ perception about the product quality and further can be exploited without necessity of changing the commodity. It has a symbolic and emotional significance because it is understood as an appropriate manner of doing (Zeithaml, 1998). Country of origin as extrinsic cue is a strong and reliable signal and determinant of product quality and performance. As it has an influence on detectable characteristics of a product at the same time it affects product assessment. Country of origin image of a product is a base for the tight interrelation between features of the product and its country of origin (Vantamay, 2007). Country of origin is a substitute measure of quality, durability, and reliability, particularly when other intrinsic and extrinsic cues cannot be found and used. 2.4 Product knowledge Product knowledge is a crucial variable influencing consumer behavior, and thus it is a subject of various research in this field of studies. The amount of knowledge consumers possess influences not only information search process but also decision-making process, thus 12. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(20) product assessment and purchase intentions (Shirin & Kambiz, 2011). Furthermore, consumers’ level of knowledge about a product influences signals needed for quality evaluation of given goods (Ghalandari & Norouzi, 2012). According to Brucks (1985), product knowledge rest on information accessed from previous encounters with a product stored in one’s mind or consumer’s possessed knowledge. As stated by Lin and Zhen (2005) product knowledge is based on consumer’s understanding or awareness of a product and also consumer’s trust in it. There are three types of product knowledge and its measures in accordance with Brucks (1985) and Wang (2001) studies, namely: subjective knowledge, which is estimated by one’s impression of how much knowledge he/she has (Park & Lessig, 1981), objective knowledge— kind and amount of exact information stored in individual’s memory (Johnson and Russo, 1984), and lastly knowledge assessed based on experience with a product (Brucks, 1985; Marks & Olson, 1981). On the other hand, research conducted by Alba and Hutchinson (1987) stress product knowledge consists of two categories: expertise and familiarity with a product. It has to be pointed out that tests of the objective knowledge cannot be fully unbiased. The reason is that this kind of measure depends on a specific form of communication from the consumers about their knowledge. However, there is a significant and conceptual differentiation between analysis of objective and subjective knowledge (Brucks, 1985; Ghalandari & Norouzi, 2012). Objective knowledge is precise product knowledge accumulated in a consumer’s long-term memory, whereas self-assessed knowledge is understood as perceptions of what or how much a given person knows about certain goods. When it comes to product knowledge based on experience with a product from the past, it is considered to be an intriguing subject of studies as it is one of the indicators of objective knowledge (Ghalandari & Norouzi, 2012).. 2.5 Consumer ethnocentrism In today’s globalized market it is important to acknowledge the importance of consumer behavior concept— consumer ethnocentrism, as it helps us to better understand consumer’s purchase intentions and is a crucial factor when building a marketing strategy. Consumer ethnocentrism refers to the perception that imports might harm the national economy as they represent potential competition to local businesses, brands, employment and other interests. Thus, ethnocentrism will be a strong competitive advantage to the domestic product and services especially when the price and the quality are equal to the imported goods 13. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(21) (Baker & Michie, 1995). Moreover, consumer ethnocentrism was found to be influential when it comes to the usage of country of origin cue. Several studies also found consumer ethnocentrism to be a predecessor of country of origin image (Brodowsky, 1998; GürhanCanli & Maheswaran, 2000). Consumers who exhibit low degree of consumer ethnocentrism use country of origin cues for product evaluation in objective light (Brodowsky, 1998). Consumers who have a high level of consumer ethnocentrism, however, are believed to view foreign country image from negative perfective and accordingly see non-domestic goods as poor in quality (Gürhan-Canli & Maheswaran, 2000). Ethnocentrism is a primary sociological concept introduced by William Graham Sumner, a Yale University sociology Professor. He conceptualizes it as “the view of things in which one’s own group is the center of everything and all others are scaled and rated with reference to it” (Sumner, 1906, p. 13 cited in Bloemer & Ryuter, 1998). Thus, we can understand that ethnocentrism is a belief that one’s own group is in a superior position compared to others (Shimp & Sharma 1987). The concept of ethnocentrism has been adopted later to a consumer behavior field of studies as a negative way of thinking about goods produced in foreign countries and an overall preference to buy products from one’s own country due to nationalistic feelings (Balabanis & Diamantopoulos 2004). In 1987 consumer ethnocentrism widespread in the world was defined as “the beliefs held by consumers about the appropriateness, indeed morality, of purchasing foreign-made products” (Shimp & Sharma, 1987, p.280) and thus, it became a social and moral issue. Different studies found that consumers with high degree of ethnocentrism deeply overestimate products made in their own country and at the same time underestimate foreign products (Balabanis & Diamantopoulos, 2004; Sharma,1995; Shimp & Sharma, 1987; Wall & Heslop, 1986). Firstly, ethnocentric consumers restrain from buying foreign products because of their high level of loyalty towards domestically produced goods. However, some scholars, for example Klein, Ettenson and Morris (1998), believe that ethnocentric consumers favor products made in their own country because they perceive them as better in quality (Klein et al., 1998). Even if the foreign product was considered better and acknowledged by many, still ethnocentric consumer would not want to buy it. In addition, this conclusion is supported by Wall and Heslop, (1986) who stress that although the quality of goods made in a foreign country may be considerable better, ethnocentric feelings that consumers hold would still lead 14. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(22) them to the purchase of domestic products. Moreover, consumers with high level of ethnocentrism are believed to be less culturally open and more conservative (Sharma, 1995). On the other hand, non-ethnocentric buyers evaluate foreign products based on their merits. They also do not pay attention to the origin of the commodities, as compared to ethnocentric consumers, who tend to give greater importance to the “made in” label (Balabanis. &. Diamantopoulos 2004; Sharma, 1995). It is important to mention, that previous studies have proven differences in the effect of consumer ethnocentrism concerning levels of economic development where consumers from developed countries prefer domestic good over foreign ones (Khan, Bamber, & Quazi, 2012). Purchasing foreign products is seen as a threat to home economy and level of employment. On the other hand, consumers from emerging (developing) markets usually favor imported goods (Zunjur & Cajetan, 2016). In order to measure the level of consumer ethnocentrism, a measurement scale CETSCALE has been introduced. Throughout the years it has been tested and validated by many researchers. Now, the Shimp and Sharma (1987, p. 407) CETSCALE is a standard measure of examining attitudes towards foreign and domestic goods, widely employed by many scholars. It has a Likert scale format and consists of 17 items: 1. American people should always buy American-made products instead of imports. 2. Only those products that are unavailable in the U.S. should be imported. 3. Buy American-made products keep America working. 4. American products, first, last, and foremost. 5. Purchasing foreign-made products is un-American. 6. It is not right to purchase foreign products, because it puts Americans out of jobs. 7. A real American should always buy American-made products. 8. We should purchase products manufactured in America instead of letting other countries get rich off us. 9. It is always best to purchase American products. 10. There should be very little trading or purchasing of goods from other countries unless out of necessity. 11. Americans should not buy foreign products, because this hurts American business and causes unemployment. 12. Curbs should be put on all imports. 15. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(23) 13. It may cost me in the long-run but I prefer to support American products. 14. Foreigners should not be allowed to put their products on our markets. 15. Foreign products should be taxed heavily to reduce their entry into the U.S. 16. We should buy from foreign countries only those products that we cannot obtain within our own country. 17. American consumers who purchase products made in other countries are responsible for putting their fellow Americans out of work. The CETSCALE will be further adjusted for the purpose of the study and used to measure level of consumer ethnocentrism among Taiwanese nationals.. 2.6 Consumption occasion The level of influence that consumption occasion has on consumers’ behavior and purchase decision has been researched for nearly 50 years (Corsi, Cohen & Lockshin, 2015). First scholars to examine the concept in wine market were Quester and Smart (1998). They conducted a study on Australian wine consumers and found out that although the factor of region did not play a significant role in the wine purchase for a specific occasion, price, grape variety and style did turned out to be significant (Quester & Smart, 1998). Furthermore, other two research projects looking at the effect of consumption occasion were conducted on Australian consumers in 2000 and 2001 (Hall & Lockshin, 2000; Hall, Lockshin & O’Mahonney, 2001). Concentrating on eight different occasions the studies tested the level of relevance consumers give to products’ quality signals and personal values and the results showed that some differences can be observed in the importance consumers attach to distinct product features. In the consumption occasion literature there can also be found studies that provide descriptive approach explaining if and when certain purchase occasion influences consumers’ decision to buy wine. One of this studies was done on Chinese consumers and it considered the connection between culture, price and occasion. Chinese turned out to buy more expensive wines for special, public occasions and for a gift in order not to lose “face” (丟臉) and inexpensive ones for home consumption (Liu & Murphy, 2007). When it comes to Millennials and their wine consumption on different occasions the number of studies is very limited. Latest analysis of young consumers was conducted in 2011 16. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(24) (Fountain &Lamb, 2011; Thach, 2011). Thach (2011) as well as Fountain and Lamb (2011) found that American and New Zealander Millennial consumers are willing to spend more money on wine when purchasing for special occasion and that they, on average, consume wine during formal celebrations and dining in a fancy restaurant. On the other hand, wine consumption with friends and family are being put in second place (Fountain &Lamb, 2011). Although the studies were conducted only six years ago they could be already outdated, as there has been a shift in wine trends recently. A Vivino survey (2016) studied on American consumers suggests that people are drinking at home more than ever. Some beverage connoisseur calls this a rise of "home-tainment". Nearly fifty percent of Millennials respondents are said to prefer drinking wine at home rather than at restaurants, social gatherings or bars (Vivino, 2016). In regards to all the merits the above studies exhibit all of them mostly measure the correlation between consumption occasion and variables such as: culture, price, product features like: grape variety, or style. That is why this study aims to measure the relation between occasion and country of origin of wine. It will test if Millennials— consumer group, often overlooked in consumption occasion studies, take into account country of origin, as a quality determinant, when evaluating products for different occasions. If yes, in which of the considered occasions, country of origin exhibit the higher level of influence.. 17. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(25) CHAPTER 3 METHODOLOGY. 3.1 Research Framework. product knowledge. H1. H2 consumer ethnocentrism. reliance on country of origin, H3. price, packaging, wine sweetness and wine color. consumption occasion H4 socio-demographics. Figure 1 Research model. 3.1.1 Research hypotheses The literature review suggests that the level to which consumers rely on country of origin cue when assessing quality of a product depends on their prior knowledge. That is why a consumer with great knowledge about certain product category does not exhibit the same attitude towards intrinsic and extrinsic cues a product provides as a novice consumer who is unable to detect true quality of a product. When it comes to wine, an expert consumer will not depend strongly on country of origin, which serves as an extrinsic cue. He/she is able to assess the alcoholic beverage thoroughly based on all the information signals of a wine such as grape variety, color or alcohol content. On the other hand, a consumer with little. 18. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(26) knowledge about wine will be unable to know the true meaning behind these cues and thus will strongly rely on country of origin. For him/her country of origin is a substitute measure of excellence when other information signals cannot be found or/and used. That is why I propose a hypothesis: H1: Level of Millennials’ product knowledge influences reliance on country of origin cue when evaluating quality of wine in such a way that those who have greater product knowledge will have less reliance on country of origin. From the literature review there could be derived that consumer ethnocentrism is influential when it comes to the usage of country of origin cue. Consumers who exhibit a low degree of consumer ethnocentrism evaluate foreign products solely based on their merits and do not pay attention to the origin of a product. Consumers who have high level of consumer ethnocentrism, however, are believed to view foreign country image from a negative perspective and accordingly see non-domestic goods as poor in quality. Thus, ethnocentric consumers tend to give greater importance to the country of origin cue and depend on it strongly. Therefore, hypothesis number two is proposed: H2: Level of consumer ethnocentrism influences Millennials’ reliance on country of origin cue when evaluating quality of wine in such a way that those who exhibit higher level of ethnocentrism will have greater reliance on country of origin.. As literature review suggests a consumption occasion has a significant influence on consumer behavior and product evaluation. Depending on the occasion, consumers rely on different information cues when making a purchase of a certain product. For example, when wine is bought for home consumption consumers choose cheaper options and do not highly determine their decision on information signals other than price. However, when people assess wine to buy for a gift they consider packaging and brand to be most crucial and also are willing to spend more money on the product. As under these circumstances consumers select wine more carefully and look for more details I hypothesize that: H3: Consumption occasion influences the level of Millennials reliance on country of origin cue when evaluating wine in such a way that those who buy wine for a gift will have greater reliance on country of origin.. 19. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(27) In previous studies scholars have found that socio-demographics influence consumer behavior for wine. Lockshin and Corsi (2012) proved that age, gender, as well as education level influence consumers’ wine preferences. When it comes to age, the studies stress that the younger people are the more likely to purchase foreign products. This may suggest that country of origin is a more important purchase criteria to older consumers. Also, according to Helvet and Mullet (2009), younger consumers, because of their limited means, depend on price more when making a purchase. The results of studies done on the influence of sociodemographics revealed as well that for example female, compared to men, prefer sweeter wines with fruity taste (Lockshin & Corsi, 2012). Women also depend on wine color in greater extent as they are more willing to purchase white wine instead of red, however men’s willingness to drink either white wine or red wine is about the same (Bruwer & Johnson, 2011). Further, researchers Barber (2009) and Atkin (2007) in their articles stressed that female consumers look for more information about wine during a purchase, that is why country of origin, and packaging might be a more crucial purchase criteria to them. As for level of education and income, it was found that the higher level of education and income, the less likely consumers are to rely on country of origin (Wall & Heslop, 1986). Following the finding I state that: H4: Socio- demographics influence Taiwanese Millennial consumers’ reliance on wine purchase criteria, such as country of origin, price, packaging, wine sweetness and wine color. 3.2 Research method This research employs quantitative research method. After Huysamen (1997) there could be stated that quantitative research method usually “discerns a cycle of successive phases of hypothesis formulation, data collection, analysis and interpretation” (Huysamen, 1997, p.1). It attempts to gather facts, conduct forecasts and examine validity of the hypothesis (Nykiel, 2007). 3.3 Data collection and sampling technique An online survey was conducted to collect data. The questionnaire was designed and placed on surveymonkey.com. Purposive and snowball sampling techniques were used to reach the qualified respondents. The targeted respondents for this study are Taiwanese wine consumers with various wine knowledge and consumption frequency, born between 1980 and 1995 (McCrindle, 2010). The purposive sampling was employed by posting the link to the survey to Facebook groups which target specific audience, particularly people interested in 20. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(28) wine, such as 微醺 K 姐的 K-Wine, 台南大酒黨~*, and 美酒, 美食, 揪幸福1. The groups were chosen, as they presented the biggest number of followers among Taiwanese wine Facebook groups. Furthermore, store owners of wine stores, namely: Hungary Wine Taiwan, and Major Cellar were asked to publish the link to the questionnaire on their Facebook pages. Those stores have also provided incentives in a form of coupons which were offered to the participants of the study to increase response rates. The reason why Hungry Wine Taiwan and Major Cellar stores forwarded the questionnaire is because they were the only wine stores, out of ten, who agreed to help with the research. The snowball sampling was conducted by posting the link to the questionnaire on my personal Facebook account. The link was then shared by twenty users. The reason why Facebook was chosen to send out the survey was that it is the most popular social network in Taiwan, with 77 % penetration rate in 2017 (Newman et al., 2017). Also, young users who are the aim of this research are the most common age demographics to use Facebook worldwide (Greenwood, Perrin, & Duggan, 2016). According to Facebook Audience Insights Tool (2016), 88% of 18–29 year olds and 84% of 30–49 year olds used Facebook. The resulting sample size of this study was 210.. 3.4 Questionnaire design To design the questionnaire, items from Shimp and Sharma (1987), Williamson, Lockshin, Francis, Loose (2016), Lindquist (2001), and Ghalandari and Norouzi (2012) were used and further modified to fit this research. The questionnaire consists of five parts, and each question item is measured using five response level Likert scale where the response 1 means strongly disagree or not at all important, and 5 represents strongly agree or very important. Part A asks about demographics; Part B measures subjective and objective knowledge about wine; Part C measures consumer ethnocentrism by employing adjusted to the research CETSCALE where shortened 10-item CETSCALE (Q:1-10) (Lindquist, 2001) is used. The scale has been often used alongside with country of origin variable and has been found more adequate for smaller samples (around 500 respondents) (Jimenez-Guererro, 2014); Part D tests the importance of purchase criteria when assessing wine, namely price, country of origin, packaging, wine sweetness, and wine color; lastly Part E of the questionnaire examines purchase habits in correlation to consumption occasion. In order to reach the study’s 1. 微醺 K 姐的 K-Wine—Tipsy K- sister, K-Wine (eng.) 台南大酒黨~*— Tainan Big Party (eng.) 美酒, 美食, 揪幸福— Wine, Food, Happyness (eng.). 21. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(29) respondents, the questionnaire has been written in two language versions: in English, and later it has been translated by Taiwanese International Communication students into Chinese. This way I strive to eliminate the possible language barrier and to collect greater number of responses. In addition, to make sure only Taiwanese members of Generation Y completed the survey, preliminary questions asking the year of the birth and nationality were included at the beginning of the questionnaire. 3.5 Measurement of research variables and reliability test In the literature review I have presented the potential moderating variables of reliance on country of origin. Based on the review independent and dependent variables of the research were formulated. This study adopts four independent variables, namely product knowledge, consumer ethnocentrism, consumption occasion, and socio-demographics. Reliance on country of origin serves as a dependent variables, together with reliance on price, packaging, wine sweetness, and wine color. In order to analyze the collected data from distributed survey statistical software SPSS was used. First, factor analysis and reliability test of. product knowledge and consumer. ethnocentrism were conducted. The resulting factor loadings and Cronbach’s α are presented in Table 1. The factor loading values for three- item subjective and objective knowledge scales were all found to belong to one dimension, and have high validity with scores between 0.7< factor loading>1. When it comes to ten-item consumer ethnocentrism scale, the factor analysis had resulted in items being grouped into two dimensions with three items in the latter one. However, the factor loading of those three item did not have high validity 0.7< factor loading>1. Thus, I did not look into the dimensions of these variables and instead I have used one factor solution to force ethnocentrism to load on one dimension. The Cronbach’s α for shortened ethnocentrism seven- item scale, and three- item subjective and objective knowledge scales are acceptable to good reliability where all the Alpha values are between 0.5< α >0.8.. 22. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(30) Table 1 Measurement of research variables Measurement items. Factor Loading. Cronbach's α. Subjective knowledge feeling knowledgeable about wine. .909. having strong interest in wine. .872. others ask your advice on wine. .934. .880. Objective knowledge white wine goes well with fish. .725. rose wine is made of red grapes. .702. chardonnay is a grape variety. .734. .737. Ethnocentrism Taiwanese should always buy Taiwanese products. .792. only unavailable in Taiwan products should be imported. .776. purchasing foreign made products is un-Taiwanese. .826. a real Taiwanese should always buy Taiwanese products. .780. It is not right to purchase foreign products. .751. we should purchase product manufactured in Taiwan. .835. there should be little purchasing from other countries. .820. Finally, as the measurement items resulted in. .831. exhibiting appropriate reliability,. composite measures were constructed by computing the indicators of each research variable, namely subjective knowledge, objective knowledge, and consumer ethnocentrism. Those will be further used in multiple hierarchical regression analysis, testing hypothesis 2 and 3.. 23. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(31) CHAPTER 4 DATA ANALYSIS AND RESULTS. A total of 210 responses have been gathered in the period of 10 days in April 2018. Completed surveys which did not meet the sample requirements were deleted. Also, to ensure the survey was not answered multiple times by the same person, the respondents were asked to leave their e-mail address at the end of the survey. In a situation where the e-mail address has been repeated the survey responses were deleted.. After conducting data. cleaning, five of the respondents did not meet the research criteria, with the research subjects being foreigners or not belonging to the Generation Y. Thus, those responses were removed, leaving 205 to analyze. Among the respondents 51.7 % were male and 48.3% were female. The age of the respondents was also spread evenly, with 55.6% being of age between 20-30, and 44.4% ages 31-40. All income, education and consumption frequency groups were represented in the sample. The precise number of the respondents' socio-demographics can be found in Table 2, 3, and 4. Table 2 Demographics of respondents. Demographics Gender Female Male Total Age 20-31 years old 31-40 years old Total Education level Junior high school or below Senior high school College/ University or higher Total. Cumulative Percent. Frequency. Percent. 106 99 205. 51.7 48.3 100.0. 51.7 100.0. 114 91 205. 55.6 44.4 100.0. 55.6 100.0. 1 7 197 205. 0.5 3.4 96.1 100.0. 0.5 3.9 100.0. 24. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(32) Table 3 Respondent’s monthly income in New Taiwanese Dollar. 20,000 or less 20,001~40,000 40,000~60,000 60,000~80,000 80,001~100,000 100.000 or more Total. Frequency 48 56 46 31 15 9 205. Percent 23.4 27.3 22.4 15.1 7.3 4.4 100.0. Frequency 79 35 36 30 15 10 205. Percent 38.5 17.1 17.6 14.6 7.3 4.9 100.0. Cumulative Percent 23.4 50.7 73.2 88.3 95.6 100.0. Table 4 Wine consumption frequency. Once a month or less Once every two weeks Once a week Three, four times a week Six times a week Everyday Total. Cumulative Percent 38.5 55.6 73.2 87.8 95.1 100.0. SPSS software has been used in analyzing the data. To obtain socio- demographics data, descriptive analysis was employed. Furthermore, in order to compare the importance of country of origin in relation to other criteria upon wine purchasing, one-way repeated measure ANOVA analysis has been used. The reliance on country of origin was tested in Part D of the questionnaire. Moreover, to test the research H1, H2, and H4, hierarchical multiple regression analysis was run measuring the significance of independent variables, such as socio demographics, product knowledge, consumer ethnocentrism, in connection to reliance on country of origin while purchasing wine. To test H3, SPSS paired-samples t-test was used, comparing reliance on wine quality signals during two different consumption occasions.. 25. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(33) 4.1. Reliance on country of origin Table 5 One-way repeated measures ANOVA analysis of purchase criteria (I) factor1 Price M=3.682. COO M=3.637. Packaging M=2.949. Sweetness M=3.949. Color M=3.701. (J) factor1 COO Packaging Sweetness Color Price Packaging Sweetness Color Price COO Sweetness Color Price COO Packaging Color Price COO Sweetness Color. Mean Difference (I-J) .068 1.039* -.273 -.024 -.068 .971* -.341* -.093 -1.039* -.971* -1.312* -1.063* .273 .341* 1.312* .249* .024 .093 1.063* -.249*. Sig. b 1.000 .000 .048 1.000 1.000 .000 .038 1.000 .000 .000 .000 .000 .048 .038 .000 .003 1.000 1.000 .000 .003. Notes: 1) df criteria=1, df error= 204, F=7594.62, p=.000 2) Based on estimated marginal means 3) *. The mean difference is significant at the .05 level. 5) b. Adjustment for multiple comparisons: Bonferroni.. A one- way repeated measures ANOVA explain that wine purchase criteria were not rated equally F(1, 204) = 7594.62, p < 0.001). First, post hoc tests using the Bonferroni correction, presented in Table 5, revealed that the mean of reliance on wine sweetness is statistically different from the means of reliance on price (p<.05), country of origin (p<.05), packaging (p<0.001), and wine color (p<.01). As wine sweetness exhibits the highest mean of reliance (M=3.95), it is found to be the most important wine purchase criteria among Taiwanese Millennials. 26. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(34) Secondly, according to post hoc tests using the Bonferroni correction, mean of reliance on wine color is significantly different from the reliance on wine sweetness (p<.01), and packaging (p<.001). Further, the mean reliance on price is also significantly different from the reliance on wine sweetness (p<.05), and packaging (p<.001). Lastly, the mean reliance on country of origin is as well significantly different from the reliance on wine sweetness (p<.05) and packaging (p<.001). Thus, the results show that wine color (M=3.70), price (M=3.68), and country of origin (M=3.64) together are found to be of secondary importance to Taiwanese Millennials. Finally, the mean of reliance on packaging is significantly different from the reliance on price (p<.001), country of origin (p<.001), wine sweetness (p<.001), and color (p<.001). Taking into account that this criteria exhibits the lowest mean (M=2.95), it can be stressed that wine packaging is the least important wine purchase criteria.. 4.2. Analysis of research hypothesis 1 and 2 In the described below multiple hierarchical regression analysis hypothesis 1 and hypothesis 2 are measured to test whether reliance on country of origin when purchasing wine depends on product knowledge and also on consumer ethnocentrism (Table 6). First, product knowledge was measured by testing respondents’ subjective and objective knowledge where both were analyzed using three-item index, with all items measured on a five level Likert scale. A bivariate Pearson Correlation was employed to test whether subjective and objective knowledge should be summated or treated as separate variables in further multiple hierarchical regression analysis. The results indicated that there is a strong correlation between the two variables (r=.66, N=205; p<.001), and thus I constructed composite measures by summating subjective knowledge and objective knowledge into one composite measure—product knowledge. Furthermore, consumer ethnocentrism was tested using ten-item CETSCALE, where all the items were analyzed on a five- level Likert scale.. 27. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(35) Table 6 Hierarchical multiple regression analysis with country of origin as a dependent variable Model Beta. T. Sig. (p). 1 Age Gender Income. -.012 -.081 -.057. -.128 -1.151 -.614. .898 .251 .540. Age Gender Income Consumption frequency Knowledge. .026 -.049 .038 -.103. .281 -.701 .380 -1.093. .779 .484 .705 .276. -.179. -2.146. .033. Age Gender Income Consumption frequency Knowledge Ethnocentrism. .022 -.046 .039 -.103. .239 -.648 .389 -1.091. .811 .517 .698 .276. -.169 .041. -1.979 .575. .049 .566. R=.100 Adjusted R2= -.010 F(3, 201)= 0.671 p=.063 2. R=.240 Adjusted R2=.057 F(5, 199) = 2.433 p=.000 3. R=.243 Adjusted R2=.059 F(6, 198) = 2.370 p=.070 Notes: 1) Dependent Variable: country of origin. According to the results presented in Table 6, the only significant factor that may influence reliance on country of origin is consumer's knowledge about wine (β = -.18 , p <.05). The provided outcome indicate that the less knowledge an individual has about wine the more. 28. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(36) he or she will rely on country of origin. Respectively the more knowledgeable a person is the less likely he or she will be to rely on country of origin. Hypothesis 1 is supported. Meanwhile, hypothesis 2 suggesting that those who exhibit higher level of ethnocentrism will have greater reliance on country of origin is not supported (β = .04 , p >.05). 4.3. Reliance on price, packaging, wine sweetness, and color, and test of hypothesis 4 In addition to testing the research hypothesis 1 and 2 hierarchical multiple regression analysis was also used to examine the relative importance of socio- demographics, product knowledge and consumer ethnocentrism in explaining the reliance on other purchase criteria, namely price, packaging, wine sweetness and wine color. Table 7 Hierarchical multiple regression analysis with price as a dependent variable. Model Beta. t. Sig. (p). Age Gender Income. -.116 -.094 -.221. -1.315 -1.397 -2.491. .190 .164 .014. Age Gender Income Consumption frequency Knowledge. -.073 -.055 -.097 -.159. -.843 -.828 -1.027 -1.797. .400 .408 .306 .074. -.181. -2.314. .022. 1. R=.315 Adjusted R2=.099 F(3, 201) = 7.401 p=.022 2. R=.406 Adjusted R2=.165 F (5, 199) = 7.422 p=.000. 29. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(37) Table 7 (continued) 3 Age Gender Income Consumption frequency Knowledge Ethnocentrism. -.074 -.054 -.097 -.159. -.849 -.811 -1.022 -1.792. .397 .418 .308 .075. -.179 .010. -2.228 .149. .027 .882. R=.406 Adjusted R2=.165 F (6, 198) = 6.190 p=.021 Notes: 1) Dependent Variable: price. According to the results presented in Table 7, the only significant factor that may influence reliance on price is consumer's knowledge about wine (β = -.18 , p >.05). The more knowledgeable consumers are the less likely are they to rely on price.. 30. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(38) Table 8 Hierarchical multiple regression analysis with packaging as a dependent variable Model Beta. T. Sig.. Age Gender Income. -.197 -.098 -.147. -2.229 -1.464 -1.661. .027 .145 .098. Age Gender Income Consumption frequency Knowledge. -.135 -.039 .050 -.286. -1.638 -.617 .560 -3.394. .033 .538 .576 .053. -.223. -2.989. .003. Age Gender Income Consumption frequency Knowledge Ethnocentrism. -.146 -.028 .053 -.286. -1.782 -.455 .598 -3.416. .046 .650 .551 .053. -.193 .123. -2.549 1.935. .012 .054. 1. R=.320 Adjusted R2=.102 F (3, 201) = 7.655 p=.011 2. R=.495 Adjusted R2=.245 F (5, 199) = 12.912 p=.012 3. R=.509 Adjusted R2=.259 F (6, 198) = 11.533 p=.011 Notes: 1)Dependent Variable: packaging. 31. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(39) The results of the three step hierarchical regression, presented in Table 8 suggest that from socio demographics only age was found to be a significant predictor of reliance on packaging (β = -.20 , p <.05), with younger consumers depending on it more. Also knowledge (β = -.22 , p <.01) was found to be a predictor of reliance on packaging where consumers who are less knowledgeable about wine rely on packaging cue on a higher level. Table 9 Hierarchical multiple regression analysis with wine sweetness as a dependent variable Model Beta. t. Sig. (p). Age Gender Income. -.127 .248 .084. -1.417 3.633 .940. .158 .000 .348. Age Gender Income Consumption frequency Knowledge. -.169 .234 .113 -.275. -2.011 3.653 1.229 -3.185. .056 .000 .220 .062. .445. 5.837. .000. Age Gender Income Consumption frequency Knowledge Ethnocentrism. -.166 .231 .112 -.275. -1.964 3,587 1.217 -3.179. .051 .000 .225 .064. .437 -.036. 5.590 -.551. .000 .582. 1. R=.268 Adjusted R2=.072 F (3, 201) = 5.189 p=.000 2. R=.457 Adjusted R2=.209 F (5, 199) = 10.500 p=.000 3. R=.458 Adjusted R2=.210 F (6, 198) = 8.767 p=.000 Notes: 1)Dependent Variable: wine sweetness 32. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(40) From the results depicted in Table 9, I conclude that gender (β = .12, p<.001) is a significant predictor of reliance on sweetness of wine. Women, compared to men, are more likely to rely on wine sweetness. In addition, product knowledge (β = .44, p<.001) was found to be a significant moderator of reliance on wine sweetness. The more knowledge an individual has about wine the more likely he or she will look at sweetness when purchasing wine. Table 10 Hierarchical multiple regression analysis with wine color as a dependent variable Model Beta. t. Sig. (p). Age Gender Income. -.047 .164 .178. -.512 2.376 1.948. .609 .018 .053. Age Gender Income Consumption frequency Knowledge. -.115 .124 .115 -.134. -1.407 1.990 1.290 -1.600. .161 .048 .199 .111. .530. 7.131. .000. 1. R=.215 Adjusted R2=.046 F (3, 201) = 3.244 p=.012 2. R=.501 Adjusted R2=.251 F (5, 199) = 14.279 p=.000. 33. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.

(41) Table 10 (continued) 3. Age Gender Income Consumption frequency Knowledge Ethnocentrism. -.115 .124 .115 -.134. -1.399 1.976 1.286 -1.596. .163 .050 .200 .112. .529 -.002. 6.957 -.024. .000 .981. R=.501 Adjusted R2=.251 F (6, 198) =11.902 p=.000 Notes: 1) Dependent Variable: wine color. Lastly, socio demographics, wine knowledge and consumer ethnocentrism were tested whether they moderate the reliance on wine color (Table 10). It was found that only gender (β= .16 , p<.05) and wine knowledge (β = .53, p<.001) significantly predict reliance on wine color where women and those who acquired more knowledge about wine exhibit higher level of reliance on wine color. Summing up, Hypothesis 4 stating that socio-demographics moderate the reliance on country of origin, price, packaging, wine sweetness and wine color was partially supported, as only age and gender of the respondents were found to be a significant predictors, where age moderates the reliance on packaging, and gender moderates the reliance on wine sweetness and color. 4.4 Analysis of research hypothesis 3 In compliance with the literature review when wine is purchased for a home consumption buyers tend to rely greatly on the product's price where the lower price is more favored. However, when wine is bought to offer as a gift or consumed during a special occasion, people look for more details of the beverage, such as packaging. Thus, H3 was formed suggesting that consumers' reliance on country of origin will be stronger during purchasing wine for gift and special occasions.. 34. DOI:10.6814/THE.NCCU.IMICS.001.2018.F05.