Political Animosity in the Global Value Chain: Whether Taiwanese Consumers are willing to Purchase International Brand Made in China Mainland?

Geng Zhang () and Shuitian Su ()

No 2019-07-06, Working Papers from Wang Yanan Institute for Studies in Economics (WISE), Xiamen University

Abstract: This paper explored the impact of political animosity on consumers’ willingness to purchase in the context of the global value chain and found that openness value and familiarity can weaken the negative impact of political animosity on consumers’ willingness to purchase. Thus, this paper expanded the application of the consumer animosity model. The research background of this paper is whether Taiwanese consumers’ willingness to purchase is affected by political animosity when they face international clothing brand made by China Mainland. The empirical results showed that political animosity can significantly lower the willingness of Taiwanese consumers to purchase international brand with China Mainland participation in its value chain. However, if Taiwanese consumers hold higher openness value or increase their familiarity with China Mainland, the negative effect of political animosity can be effectively weakened. The empirical results also brought inspirations to everyone. If Taiwanese consumers can have an open mind to China Mainland and be more proactive in their contacts with China Mainland, their political animosity towards China Mainland will gradually disappear.

Keywords: Political Animosity; Openness Value; Familiarity; Willing to Purchase; Global Value Chain (search for similar items in EconPapers)
Date: 2019-07-06
New Economics Papers: this item is included in nep-int, nep-ipr and nep-opm
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Persistent link: https://EconPapers.repec.org/RePEc:wyi:wpaper:002444

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