MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HCMC
Cao Quoc Viet
BOYCOTTING BEHAVIOR IN GENERAL PRODUCT: A
CASE OF RESEARCH IN VIETNAM
Major: BUSINESS ADMINISTRATION
Code: 9340101
THESIS SUMMARY
Ho Chi Minh City 2018
The thesis was completed in University of Economics Ho Chi Minh City
Tutor: Asso. Prof. Ph.D. Vo Thi Quy
Opponent 1: ................................................... ……
Opponent 2: ...........................................................
Opponent 3: ...........................................................
The thesis will be protected in front of the Council at:
At ………. hour ……… …… ……………….. 2018
The thesis can be found at: …………….……………………………………
1
CHAPTER 1. OVERALL INTRODUCTION
1.1. Research Motivations
A comprehensive understanding of consumer behavior in international business plays an important
role not only for multinational companies (MNCs) but also for domestic enterprises. Amine (2008)
recommends that three prerequisites for a successful manager in each market they invade. First, the manager
must have a detailed knowledge of the current and historical relations of that country with bilateral trading
partners to draw conclusions about consumer behavior. Secondly, managers must constantly observe changes
in consumer perceptions and their behaviors in the target market. Third, the manager must plan a regular and
long-term market research to monitor the continuous changes in perceptions, emotions, and consumer
behaviors.
When a country triggers events in another country, consumers in the affected country view the events
from different perspectives, and they will have different emotions; affecting their consumption behavior
(Harmeling et al. 2015). International disputes, cultural, political and economic conflicts are events that one
country causes to another. This negatively affects consumer sentiment through negative emotional states such
as anger, frustration, sadness, anxiety or confusion. These emotions cause the corresponding negative
consumption behavior of the product originating in the country causing the conflict. The boycott is one of the
negative consumer behaviors that companies do not want to encounter. Therefore, understanding the
boycotting behavior of consumers and the factors that influence the boycotting behavior is a matter that needs
to be studied seriously and thoroughly.
For many years, the boycott of goods originated in a certain country of consumers has been a concerned
problem not only in Vietnam but also spread throughout the world. In Vietnam, the boycott of Chinese goods
excels and attracts public opinion because of poor quality goods, toxic substances. Especially, the HD 981
oilrig was placed illegally by China on the continental shelf of Vietnam in April 2014. This action has led to
the urgent, anger of a large number of Vietnamese people. They have boycotted the Chinese product to show
their patriotism.
Consequently, the boycott behavior of consumers is a phenomenon that has already existed in the
market. The study of the nature of the boycott and the factors that influence the boycotting behavior need to be
clarified. Findings may be significant evidence in behavioral science. The research will have many valuable
implications for managerial practice.
1.2. Research context
This thesis uses negative events to infer the relationship between consumer perceptions, emotions, and
boycotts of goods originating from the country of events. China is the chosen country because of the negative
historical events that have taken place throughout China's thousands of years of aggression and domination.
The Chinese government's economic events (e.g., trade deficit, currency devaluation, etc.) are also negative
events, which in turn lead to boycott China products.
For China products, the boycott of consumers in Vietnam excels and attracts public opinion and is
reflected through mass media because the quality of the product is poor, contains many toxins from vegetables,
roots, and fruits for food, clothing, equipment, and machinery. Since July 2012, since the establishment of Tam
Sa in the Paracel archipelago of Vietnam. Especially, the HD 981 rig event set up in the Vietnamese territorial
waters in April 2014 by the Chinese government. This action has led to the urgent, anger of a large number of
Vietnamese people lead to call for boycotting China products to show their patriotism.
Consequently, the boycott behavior of consumers is a phenomenon that has already existed in the
market. The study of what the nature of the boycott is, what components are included, what factors influence
the boycotting behavior should be clarified as the results of the study may be significant evidence in the
behavior field. This thesis brings some important implications for management practices.
1.3. Problem Statement
Previous researchers used the concept of consumer ethnocentrism to refer to an independent variable
influencing the boycotting behavior and explaining this relationship based on social identity theory. The term
2
ethnocentrism has been studied for a long time, eg (Sumner, 1906; Shimp and Sharma, 1987). Shimp and
Sharma (1987) are the authors who build the CETSCALE scale for measuring the ethnocentric of consumers.
Since 1987, much of the replicated, revised and expanded research that has been interested in researchers
because of the controversial and conflicting results.
Klein et al. (1998) proposed the concept of consumer animosity and testified about the relationship
between the construct and the boycott behavior. Klein et al. (1998) for the first time published the evidence
explaining the boycott of Japan product of Chinese consumers. Klein's research is based on the refusal to use
Japanese goods because the people of Nanjing are still angry at the aggression and massacre of hundreds of
thousands of Japanese civilians during the 1937 war.
Similar to consumer ethnocentrism, consumer animosity plays an important role in the explaining for
the boycotting behavior. However, the findings are inconsistent with the research. At the time of the study, no
research in Vietnam was published that provided scientific evidence to clarify these relationships.
Some previous studies in the world have focused on the boycott of China product. Repeated research
by Witkowki (2000) dismisses previous research by Klein et al. (1998), as there is no evidence to support the
relationship between economic animosity and boycotting behavior. However, Huang et al. (2010a) showed
that economic animosity has a positive effect on the boycott of China product in Taiwan. Lee and Lee (2013)
found evidence to support the consumer animosity and the boycott of Japanese consumers toward China goods.
However, repeated studies six months later did not confirm this finding. More recently, the study by Garcia-
de-Frutos and Manuel Ortega-Egea (2015) in the Spanish has resulted in a similar relationship between the
Spanish consumer animosities towards the boycotting behavior of China product. Thus, repeated and extended
studies showed the important role played by the relationship between the animosity factors and the boycotting
behavior. There is, however, a lack of consistency in the results of research between different markets for the
factors.
1.5. Research Objectives
This study explores the nature of the boycott and its effects on the Vietnamese boycott behavior of
China product. The thesis compares the similarities and differences of the components discovered with
previous studies. At the same time, this study proposes a theoretical model and verification of the factors that
influence the boycotting behavior. Specific research objectives are as follows:
The first objective: to build and develop the components of the boycotting behavior.
The second objective: to investigate the impact of patriotism on the animosity beliefs. Determine the
indirect impact of patriotism on the product quality judgment through consumer ethnocentrism; to examine the
indirect impact of consumer ethnocentrism and the boycotting behavior through product quality judgment.
The third objective: to build, develop and measure the elements of the animosity beliefs; examine the
indirect impact of these factors on the boycotting behavior through negative emotions. Explore the impact of
animosity beliefs on consumer apathy; to explore and test the impact of patriotism on the boycotting behavior
through consumer apathy, and discover the moderating role of individualism/collectivism and the factors
(gender, education level, income, age) on the relationship encourage the boycotting behavior.
1.6. Research subjects, research scope, and research methods
The research subject of the thesis is the boycotting behavior of consumers for goods originating from
China. China product is any commodity produced in China.
Research scope: The dissertation has focused on individual consumers living in Ho Chi Minh City.
The study was conducted from 2014 to 2016 with three main phases. Stage one (early 2014 - end of 2015):
literature review, qualitative research. Phase two (early 2016): expert research. Phase three (second half of
2016): quantitative research.
To increase the generality of the theory, this study did not focus on a particular commodity. All phrases
such as products or merchandise used in the research and in the main survey were general products.
3
The mixed method was designed in two main phases. The qualitative phase used the method of
netnography, combining grounded theory to explore the categories. The result of this phase was to propose a
new, exploratory research model in comparison with the previously studied categories.
The quantitative research phase included expert research, preliminary quantitative research, and formal
quantitative research. Expert research helped to evaluate and select appropriate construct and items in the
proposed research model. After this period, new components and adjusted scales were included in the pilot test
for quantitative research at the next stage.
After that, the thesis evaluated the conditions related to the verification of the measurement model, the
multivariate analysis method using the structural equation modeling (SEM) technique for the purpose of the
verification the proposed research model. To test the moderating role, the multi-group analysis method was
used to compare the level of impact of the model on two groups of consumers based on the level of
individualism/collectivism, male/female, low/high income, education level.
1.7. Value, new contribution in theory and practical implications
The prior research considered boycotting behavior is unidimensional construct with a representative
component of the willingness to boycott. This study explored and demonstrated that boycotting behavior was
a multidimensional construct consisting of two components (i.e, willingness to boycott and boycott calls). The
exploration of the components of the boycotting behavior and proven reliability, as well as validity, contribute
to the measurement theory.
In addition, the relationship of consumer animosity independently or adversely affects product quality
judgment originating from the offended country also contributed meaningfully to the theory. This study
supported the new approach of Harmeling et al. (2015) based on cognitive appraisals of emotions theory. The
thesis separated the concept of consumer animosity into two components, including cognitive appraisal and
negative emotions. Different negative emotions that result from various cognitive evaluations will lead to
different behavioral responses. The thesis explored an emotional component of the original research model.
This emotional component contributes to the relationship between animosity beliefs and product quality
judgment.
Furthermore, the process of cognitive appraisals in the Harmeling research model was based solely on
the political and war conflict between the two countries. This study added the content of economic animosity
beliefs and relationship animosity beliefs.
Qualitative results showed that patriotism and apathy are two new components that contribute to the
expansion of the boycotting behavior model. This result was verified by quantitative research that contributed
to the extension of the theoretical model of the boycott.
In practice, exploring the components involved in boycotting is very important and meaningful not
only to multinational corporations (MNCs), but to local companies. Studying the motives behind the boycott
will help managers orient their business strategies and marketing their products and services. Managers of
MNCs need to anticipate the risks from the markets in which they operate. The basic risks in international
business may come from the macro environment related to politics, culture, and economics, which risks altering
consumer behavior. In the context of globalization, MNCs have multiple manufacturing divisions in different
countries, identifying the level of consumer boycotting for the country, triggering the event will help MNCs
set the risk response strategy for boycotts.
Animosity beliefs, negative emotions are two important factors that explain the product quality
judgment originating in the country that caused the event. If a country produces goods negatively rated by the
consumer, this will indirectly cause damage to those companies. Thus, the negative emotions of consumers can
harm the brand of a business. However, the reasons for these negative emotional reactions do not come from
the businesses themselves. Comprehensive understanding of the level of consumer behavior in a country in
terms of cognitive appraisals, emotions and their behaviors is very significant for MNCs and domestic
companies. Because they can anticipate the dangers, that lead to boycotting the goods and services provided in
a target market.
Examining the nature of patriotism and the relationship between patriotism and other factors in the
pattern of boycotting behavior helps managers to plan business strategies (i.e., marketing, and branding) based