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Abstract
Purpose – Despite the growth of the online overseas purchasing industry, there is a lack of studies addressing
these companies’ communication strategies. Thus, this study aims to examine the impact of customer
experiences with communication via overseas purchasing websites.
Design/methodology/approach – Using data from overseas purchase customers in the United States, this
study examines communication as either firm or customer generated and assesses their effects on brand-
related outcomes.
Findings – The results show that both firm- and customer-generated communication influence brand
awareness, perceived quality, and loyalty. Also, the impact of brand awareness on perceived quality is
supported. Differences in the relationship between communication and behavior across demographic
characteristics (i.e. gender, age, income) are identified, and the impact of firm-generated content on customers is
found to be greater than that of customer-generated communication.
Research limitations/implications – Given the limitations of quantitative surveys to examine overseas
retailing practices, the results of this study provide a starting point for future researchers to conduct more
qualitative studies with customers from various cultures.
Originality/value – Due to the importance of communication marketing in the retail setting, this study
provides useful guidelines for online retail services to enhance customers’ interaction and empowerment.
Keywords Overseas purchasing service, Firm-generated communication, Customer-generated
communication, Brand awareness, Perceived quality
Paper type Research paper
1. Introduction
With the development of communication and transportation technologies, customers are
getting increasingly familiar with overseas purchases (Son et al., 2017). According to
Statista.com (2022), the global overseas e-commerce market is estimated to be $2.2 trillion in
2026. With the growth of overseas purchases in the e-commerce context, researchers have
examined the influential factors of customers’ behavior (Dai and Lee, 2018; Kim, 2018; Son
et al., 2017). For instance, Dai and Lee (2018) examined the impact of website-related
characteristics such as security, convenience, and information on customers’ satisfaction
with an overseas purchase. Due to the characteristics of online purchases, Kim (2018)
suggested that psychosocial anticipated regret is associated with shopping hesitation.
Customers’ experience with online overseas purchases is different from that with traditional
online shopping in terms of difficulties of a transaction, refund/exchange, unknown vendors,
and differences of the shopping environment, including communication style.
With the development of technology, companies often use communication strategies to
provide information and encourage customer interactions (Dai and Reich, 2022; Zhang and Asia Pacific Journal of Marketing
and Logistics
Lin, 2015). Many overseas purchasing services, such as Amazon, eBay, and Alibaba, provide © Emerald Publishing Limited
1355-5855
product- and service-related information (e.g. brand, material, item dimensions, product DOI 10.1108/APJML-01-2022-0043
APJML details, instructions) using text, images, and videos via their websites. Also, most of these
types of companies provide customers the opportunity to share their reviews, including
overall rating, rating by feature (e.g. adhesion, durability, value for money, comfort), review
with images, and review comments. Indeed, many companies offer customers incentives to
motivate, encourage, and create online reviews. Research has suggested that successful
communication gives a competitive advantage to companies (Lee and Colarelli O’Connor,
2003; Orakwue et al., 2012) and that the communication between companies and customers
influences customer decision-making processes (Butkevicien_e et al., 2008; Cheung et al., 2021)
Those studies suggested that communication activities can serve as a company’s critical
resource to achieve sustainable growth.
There are several gaps in the literature regarding communication strategy management.
First, although it has been shown that communication strategies can influence customers’
experience with services (Huang and Philp, 2021), there have been few studies on how
different types of communication messages influence a company’s performance (Lee et al.,
2002). It is unclear whether customers are more likely to give a positive evaluation when they
receive firm- or customer-generated communication. Second, despite the growth of online
overseas purchasing, there are research gaps on the impact of communication on overseas
purchasing service companies. Furthermore, most research has focused on communication
strategies in the local context (Kim et al., 2019), and only a few studies have examined
customer experiences with overseas websites. Lastly, most studies have focused on the role of
company communication in the formation of customer patronage (Kim, 2011). However, A
handful of studies has examined the role of customers’ characteristics in determining the
effectiveness of communication strategies.
Therefore, this study analyses how firm- and customer-generated communication
influences brand equity as measured by brand awareness, perceived quality, and brand
loyalty in the overseas purchasing service context. Also, given the importance of
understanding customer characteristics in the brand management context (Lin, 2002), the
role of demographic characteristics in the relationship between overseas purchase
experiences and their consequences is examined. The contribution of this study is to
provide a theoretical framework of a communication strategy that (1) identifies the relative
impact of the firm- and customer-generated communication on brand-related outcomes and
(2) examines the role of customers’ demographic characteristics in this relationship.
2. Literature review
2.1 Communication strategy
In the global business context, digital marketing is an important tool to interact with
customers and meet the pace of their changing needs (Wilk et al., 2021; Wymbs, 2011).
Especially for companies based on online platforms, such as Amazon and Airbnb, digital
marketing can be used to create firm-generated messages including the history of the brand,
product, service information, and offers of promotion events to build customer relationships
and increase sales. Also, shopping websites have become important communication media
for influencing customers’ consumption experiences (Gao and Li, 2019). Especially, user-
generated communication, such as online reviews, is a powerful influencer of customers’
behavior as it is associated with trustworthiness and is the most efficacious marketing
intelligence technique (Lou and Yuan, 2019). Thus, many global companies have recognized
the importance of communication and developed strategies to reinforce customer
participation in each company’s online community. Because of increasing globalization,
customer demand for high and online retail services has become more intense during the
COVID-19 pandemic (Yadav et al., 2020). A firm’s communication strategy is critical because
it influences a company’s performance in the global business context. Communication
between customer and company is related to the customer’s perceived brand-related Online
outcomes, such as brand association, brand awareness, perceived quality, and brand loyalty overseas
(Schivinski and Dabrowski, 2015; Virvilaite et al., 2015). In particular, user-generated
communication influences customer decision-making toward the brand (Virvilaite et al., 2015)
purchasing
because the communication characteristics are linked to customers’ evaluations of the
message contents. Because a global company’s performance is highly related to its brand, if a
firm creates a positive communication strategy across its marketing channels, it has a great
potential competitive advantage over its competitors.
3. Methods
3.1 Data collection
An online survey was developed and distributed through the online survey platform Qualtrics.
com. Given the increasing growth of overseas shopping in the United States, the voluntary and
anonymous survey was available through the online survey platform in the United States.
According to Statista.com (2022), around 50% of American online shoppers have used
overseas purchasing in the past. The researcher used screening questions to ensure that the
respondents used overseas purchase websites. A pilot test with five researchers and five
graduate students in the business department was conducted to evaluate the effectiveness of
the questionnaire. Based on the feedback, some items were corrected or reworded to ensure
content validity. Also, participants were asked to answer their favorite overseas purchasing
service brand, and the answer was embedded in the questionnaire (e.g. I am satisfied with the
Amazon’s communications, I can quickly recall the symbol or logo of Amazon). Upon receiving
approval from the Human Ethics Committee, in all, 212 American participants completed the
survey, 58% of whom were male. The majority of the participants were from 19 to 39 years old,
and 79% had a college degree (Table 1). As suggested in the previous studies, this sample size
was enough to run partial least squares structural equation modeling because it was more than
10 times larger than the largest number of structural paths directed (Hair et al., 2012).
3.2 Measures
Multiple items were used to measure the study constructs. Both firm- and user-generated
communications were measured using elements adapted from previous studies (Tsiros et al., 2004;
Brand loyalty
Firm created
communication
Brand awareness
Customer
generated
communication
Perceived
quality Figure 1.
Proposed model
APJML Variable N (%)
Gender
Male 124 58
Female 88 42
Age
18–29 years of age 65 31
30–39 years of age 102 48
40–49 years of age 21 9
Older than 50 22 10
Education
High school 16 7
Some college/technical training 15 7
College graduate 166 78
Postgraduate school 16 7
Income
Under $39,999 56 26
Table 1. $40,000-$69,999 94 44
Demographic profile of $70,000-$99,999 45 21
the respondents $100,000 and over 17 8
M€agi, 2003; Schivinski and Dabrowski, 2015). Three elements used for assessing brand
awareness were adapted from Sun and Ghiselli’s (2010) study; perceived quality and brad
loyalty were measured with scales adopted from Yoo and Donthu (2001). All the items were
assessed using a seven-point Likert scale ranging from 1 for “strongly disagree” to 7 for
“strongly agree.” Also, the results of principal component factor analysis showed that no
single factor influenced the result by less than 50%, indicating that common method bias did
not affect this study (Podsakoff et al., 2003).
3.3 Analysis
To evaluate the hypothesized relationships, the partial least squares structural equation
modeling (PLS-SEM) approach with the SmartPLS software was performed. PLS-SEM is a
useful method to maximize explained variance and minimize structural errors (Hair et al.,
2017). A two-stage procedure was used to examine the measurement model and structural
model using a bootstrapping technique with SmartPLS (Anderson and Gerbing, 1988). This
approach also explains the variance of the endogenous constructs (Hair et al., 2012). First, the
reliability and validity were analyzed. The internal consistency was assessed using
Cronbach’s alpha and composite reliability (Table 2). The former ranged between 0.72 and
0.78, which showed adequate reliability on all scales (α > 0.70). The values of the composite
reliabilities were greater than 0.7, supporting internal consistency. Convergent validity was
examined as the average variance extracted (AVE) and was greater than 0.5. Last, the square
root of AVE in each latent variable was larger than that of other correlations among the latent
variables, indicating discriminant validity (Table 3).
3.4 Results
The structural model was tested using SmartPLS 3.0. The predictive power of the model
was assessed using variance explained (R2) in endogenous constructs. As shown in Table 4,
the R2 of the dependent variables ranged from 0.55 to 0.62. Chin (1998) explains R2 values of
Variable FL α CR AVE
Online
overseas
Firm-created social media communication 0.75 0.86 0.67 purchasing
I am satisfied with the Brand X’s communications 0.78
Brand X’s communications are very attractive 0.82
Brand X’s communications perform well, when compared with the 0.84
communications of other companies
Customer-generated social media communication 0.78 0.87 0.70
I am satisfied with the content generated by other users about Brand X 0.78
The content generated by other users about Brand X is very attractive 0.85
The content generated by other users about Brand X performs well, when 0.87
compared with other brands
Brand awareness 0.76 0.86 0.68
I easily recognize Brand X 0.75
I can quickly recall the symbol or logo of Brand X 0.86
I can recognize Brand X among other competing brands 0.86
Perceived quality 0.72 0.88 0.78
The likelihood that Brand X is reliable is very high 0.89
Products of Brand X are worth their price 0.87
Brand loyalty 0.77 0.87 0.69
I consider myself to be loyal to Brand X 0.82
Table 2.
I would not buy other brands if Brand X is available at the store 0.84 Cronbach’s alpha and
I try to find Brand X rather than buying other brands 0.83 standardized
Note(s): FL5Factor Loading, α 5 Cronbach’s alpha, CR 5 composite reliabilities; AVE 5 Average Variance regression weight
Extracted scores for variables
Path β t p
Male Female
Path β t p β t p
Firm-created communication → Brand awareness 0.51 4.36 0.00 0.34 2.90 0.00
Customer-generated communication → Brand awareness 0.38 3.79 0.00 0.41 2.76 0.01
Firm-created communication → Perceived quality 0.21 1.45 0.15 0.43 3.69 0.00
Customer-generated communication → Perceived quality 0.38 2.72 0.01 0.14 1.34 0.18
Firm-created communication → Brand loyalty 0.34 2.27 0.02 0.40 2.64 0.01
Table 5. Customer-generated communication → Brand loyalty 0.37 2.32 0.02 0.25 1.95 0.05
Summary of results for Brand awareness → Perceived quality 0.27 2.15 0.03 0.36 3.64 0.00
the structural model Brand awareness → Brand loyalty 0.15 1.13 0.26 0.13 1.26 0.21
Young Old
Path β t p β t p
Firm-created communication → Brand awareness 0.47 6.13 0.00 0.10 0.32 0.75
Customer-generated communication → Brand awareness 0.39 4.36 0.00 0.75 3.56 0.00
Firm-created communication → Perceived quality 0.28 2.46 0.01 0.26 1.32 0.19
Customer-generated communication → Perceived quality 0.26 2.50 0.01 0.51 2.50 0.01
Firm-created communication → Brand loyalty 0.33 2.65 0.01 0.39 3.28 0.00
Table 6. Customer-generated communication → Brand loyalty 0.27 2.12 0.03 0.54 4.03 0.00
Summary of results for Brand awareness → Perceived quality 0.34 3.94 0.00 0.14 0.85 0.40
the structural model Brand awareness → Brand loyalty 0.21 2.20 0.03 0.03 0.25 0.80
Low income High income
Online
Path β t p β t p overseas
purchasing
Firm-created communication → Brand awareness 0.45 5.16 0.00 0.27 1.24 0.22
Customer-generated communication → 0.38 4.04 0.00 0.60 2.85 0.00
Brand awareness
Firm-created communication → Perceived quality 0.29 2.49 0.01 0.31 1.45 0.15
Customer-generated communication → 0.35 3.31 0.00 0.07 0.39 0.70
Perceived quality
Firm-created communication → Brand loyalty 0.30 2.40 0.02 0.61 3.64 0.00
Customer-generated communication → Brand loyalty 0.34 2.57 0.01 0.18 0.86 0.39 Table 7.
Brand awareness → Perceived quality 0.26 3.09 0.00 0.44 2.48 0.01 Summary of results for
Brand awareness → Brand loyalty 0.19 1.87 0.06 0.02 0.14 0.89 the structural model
Corresponding author
Jiseon Ahn can be contacted at: jsahn@hanyang.ac.kr
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