How Collectivism, Animosity, Cultural Heritage, and Country-of-Origin Image Shape Consumer Behavior Toward Foreign Brands

Abstract

Background: Recent changes in global economic and market conditions have significantly influenced consumer behavior, particularly in the context of international brand consumption. Increasing market fragmentation, shifts toward domestic market protection, and changing consumer value orientations have contributed to a reassessment of foreign versus domestic products. Collectivism and animosity toward other nations have emerged as important sociocultural factors shaping consumer preferences, often reinforcing loyalty to domestic products. Conversely, individuals with high levels of cultural intelligence frequently travel abroad to explore cultural monuments and gain insight into foreign histories. These individuals tend to be innovative, open to trying new products, and sensitive to the image of the country from which a product originates.

Purpose: The primary objective of this study is to examine the effects of collectivism, animosity, cultural heritage, and country-of-origin image (measured through components such as fashion capital, industrialization, and economic development) on consumer decisions to purchase foreign brands. A secondary aim is to assess whether these effects vary across generational groups—specifically Generations X, Y, and Z.

Study design/methodology/approach: An empirical survey was conducted in Serbia (Belgrade, Novi Sad and Kragujevac) in 2024 on a sample of 496 respondents. Statistical analysis was performed using the SmartPLS 4 software.

Findings/conclusions: The results indicate that collectivism and animosity exert a negative and statistically significant effect on consumers’ decisions to purchase foreign brands, whereas cultural heritage and country-of-origin image have a positive and statistically significant impact. Furthermore, collectivism and animosity were more pronounced among respondents from Generation X, while cultural heritage and country-of-origin image were more influential for Generations Y or Z.

Limitations/future research: The study is limited by its relatively small sample size and geographic scope, being conducted within a single country. Future research should include cross-cultural comparisons and larger, more diverse samples. Additionally, future studies may consider incorporating other variables such as consumer cosmopolitanism or xenocentrism to provide a more comprehensive understanding of the acceptance of foreign brands.