14
K. Chinen et al.
as a credible signal. Recently, Qiantu Motor, a wholly owned subsidiary of Chinabased CH-Auto and Mullen Technologies Inc., a Southern California company, have
signed a cooperation agreement to homologate and assemble electric sports cars
in the US for sales in North America (Eisenstein 2019). Similar alliance strategies
have proven to be effective in other industries. For example, one of China’s leading
smartphone makers, Huawei, has quickly increased its brand equity by collaborating
with German companies Leica (on camera technology) and Porsche (on product
design). Despite a decade-long separation between Huawei and the US, Huawei has
become one of the world’s most valuable brands by both Forbes and Interbrand.
When CBEVs form strategic alliances with western companies, they not only gain
immediate access to their partners’ technologies and distribution resources, but also
benefit from their brand equity.
1.5.4 Ethnocentric Beliefs and COO
This study shows that low-ethnocentric consumers are more likely to use COO cues as
objective information about product quality. In contrast, high-ethnocentric consumers
use COO information to express ethnocentric sentiment and are influenced by this
in their purchase decisions (Klein 2002). Moreover, this study shows that highethnocentric consumers tend to believe that domestic products are of higher quality
than comparable imported ones. The US consumers who hold low-ethnocentric views
about the EVs made-in foreign countries feel that their purchase of foreign EVs is
perfectly appropriate in general. However, they are reluctant to buy the EVs of a
specific country.
Chinese products have long been associated with their cheap prices and low
quality. However, China has been investing heavily in R&D in recent years (Gross
2013), trying to encourage its talent to stay home, and creating the flow of knowledge
and young Chinese talent back to China (Grossman 2010). Instead of toys and shoes,
shiny drones, smartphones, and other technological products may come to minds
of some the US consumers. This study has observed the US consumers’ relatively
high-purchase intention towards an eco-friendly and high-tech product, an electric
vehicle.
Based on our findings that low-ethnocentric consumers are more likely to use
COO cues as objective information about product quality and the US consumers
rated CBEVs made-in China, US, and Japan in the same group, we suggest that
CBEVs primarily target low-ethnocentric consumers, especially in the early years
of their entry into the US market, as these consumers are less likely to stereotype
CBEVs. While consumers’ ethnocentrism may not be directly observable, further
research may reveal the correlation between the level of ethnocentrism and variables such as age group, educational level, and region of residence. For example,
if further studies find that the younger generations, consumers with higher educational levels, and consumers living in metropolitan areas on both the east and west
coasts show a significantly lower level of ethnocentrism, then CBEVs should focus
K. Chinen et al.
as a credible signal. Recently, Qiantu Motor, a wholly owned subsidiary of Chinabased CH-Auto and Mullen Technologies Inc., a Southern California company, have
signed a cooperation agreement to homologate and assemble electric sports cars
in the US for sales in North America (Eisenstein 2019). Similar alliance strategies
have proven to be effective in other industries. For example, one of China’s leading
smartphone makers, Huawei, has quickly increased its brand equity by collaborating
with German companies Leica (on camera technology) and Porsche (on product
design). Despite a decade-long separation between Huawei and the US, Huawei has
become one of the world’s most valuable brands by both Forbes and Interbrand.
When CBEVs form strategic alliances with western companies, they not only gain
immediate access to their partners’ technologies and distribution resources, but also
benefit from their brand equity.
1.5.4 Ethnocentric Beliefs and COO
This study shows that low-ethnocentric consumers are more likely to use COO cues as
objective information about product quality. In contrast, high-ethnocentric consumers
use COO information to express ethnocentric sentiment and are influenced by this
in their purchase decisions (Klein 2002). Moreover, this study shows that highethnocentric consumers tend to believe that domestic products are of higher quality
than comparable imported ones. The US consumers who hold low-ethnocentric views
about the EVs made-in foreign countries feel that their purchase of foreign EVs is
perfectly appropriate in general. However, they are reluctant to buy the EVs of a
specific country.
Chinese products have long been associated with their cheap prices and low
quality. However, China has been investing heavily in R&D in recent years (Gross
2013), trying to encourage its talent to stay home, and creating the flow of knowledge
and young Chinese talent back to China (Grossman 2010). Instead of toys and shoes,
shiny drones, smartphones, and other technological products may come to minds
of some the US consumers. This study has observed the US consumers’ relatively
high-purchase intention towards an eco-friendly and high-tech product, an electric
vehicle.
Based on our findings that low-ethnocentric consumers are more likely to use
COO cues as objective information about product quality and the US consumers
rated CBEVs made-in China, US, and Japan in the same group, we suggest that
CBEVs primarily target low-ethnocentric consumers, especially in the early years
of their entry into the US market, as these consumers are less likely to stereotype
CBEVs. While consumers’ ethnocentrism may not be directly observable, further
research may reveal the correlation between the level of ethnocentrism and variables such as age group, educational level, and region of residence. For example,
if further studies find that the younger generations, consumers with higher educational levels, and consumers living in metropolitan areas on both the east and west
coasts show a significantly lower level of ethnocentrism, then CBEVs should focus