Abstract (eng)
In today’s highly globalized world, while country-of-origin (COO) still remains a relevant information for consumers’ brand responses, the role of corporate social responsibility (CSR) also gains importance for consumers. However, empirical evidence on the connection between the brand’s origin, corporate social responsibility (CSR) and consumer’s willingness to pay (WTP) is still limited, particularly with regards to social issues. Therefore, what is of particular interest for marketers is in what way COO and CSR are perceived by consumers and how this behavior can be monetized. Therefore, the purpose of this research was to investigate the impact of COO favorability on consumers’ WTP while considering brand’s responsible and irresponsible business practices. By conducting an experimental study in the product category of smartphones, it is revealed that, surprisingly, the brand’s COO does not influence consumers’ WTP. As expected, brands’ (ir) responsible activities were found to significantly negatively (positively) impact consumers’ WTP. The results also show a stronger negative influence of irresponsible practices in a more favorable COO on WTP compared to a less favorable COO, while the positive impact of responsible actions on WTP is the same for a more or a less favorable COO. Findings further demonstrate that a brand from a less favorable COO that engages in responsible activities is less punished in terms of WTP as opposed to the size of the reward given to a brand from a more favorable COO. Based on these findings, implications for research and practice and suggestions for future research are presented.