Company Offshoring Strategies and Consumer Responses

What is it about?

This paper develops a theoretical framework for explaining consumer reactions to corporate offshoring. The impact of the decision to offshore or to maintain domestic activities is tested on two dependent variables: consumer attitudes toward the company and word-of-mouth communication.

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Why is it important?

Two experiments with adult consumers are conducted. Study 1 analyzes the processes underlying consumer reactions to corporate offshoring from the perspective of the perceived moral harm and good that offshoring produces. Study 2 demonstrates the moderating role of consumer perceived risk of offshoring on the linkage between company offshoring and the moral emotions and, through these moral emotions, on consumer attitudes toward the company and word-of-mouth communication.