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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

Zambian Consumers and the Country-of-Origin Effect


Samuel Phiri
Tianjin Normal University,
School of Management Tianjin, China

Abstract:- Since increase in exportsis highlybeneficial I. INTRODUCTION


for the economic development and growth of a country,
this research exposes the negative effects of a brand’s The topic of country-of-origin and purchase intention
country-of-origin on consumer purchase intention in is one in the marketing research circles that has widely
developing countries, it exposes how a brand’s country- received attention from researchers over a span of many
of-origin in developing countries influences local decades. Whether in recent or older studies, the two
consumers to purchase imported brands more than local concepts; country-of-origin (COO) and purchase intention
brands. (PI) in various marketing literature can be evidently seen as
studied individually or paired together (Rusmiati&Sugiati,
Through the use of a quantitative research method, 2020) or studied together with other concepts in marketing
this research is based on data collected from a sample to determine their role in consumer behavior (Vuong& Giao,
size of 600 that was analyzed in SPSS. The findings 2020).
shows that country-of-origin influences the purchase of
local and imported FMCGs in Zambia, but its effects are This study was limited to study of fast-moving
much stronger towards the purchase of imported goods consumer goods because current studies indicate that the
than local goods. Furthermore, the results also reveal fast-moving consumer goods (FMCG) sector contributes
that Zambians are prone to purchase imported goods significantly to the gross domestic product (GDP) growth of
because they trust them. These findings therefore a country (Makaleng & Hove-Sibanda,2022). Other studies
provide empirical evidence of the importance of the need also have shown that), coca cola was ranked the top leading
for more studies and usage of country-of-origin and fast-moving consumer good (FMCG) brand worldwide for
brand trust in marketing research and practice in the year 2021, by household reach (Statista, 2021) and has
developing countries. been estimated to hold about 29% market share of
carbonated soft drinks in the middle east and Africa
Keywords:- Country-of-Origin, Brand Trust, Purchase combined (Wood & Baker, 2021). Furthermore, according
Intention, FMCGs, Developing Countries. to a survey done in the year 2022 in Zambia (Statista,2022),
data from the survey showed that Coca Cola was the most
preferred brand of carbonated drinks, with a share of 75% of
respondents saying they preferred Coca Cola while the
remaining 25% was left to be shared among other brands,
among them Pepsi with 17%, also another Imported brand.
Such data tells us that there’s definite need for reforms that
are aimed at changing the Zambian consumer’s attitude
towards purchasing global brands over local brands. Thus,
this research as aimed to investigate Zambian consumers’
attitude towards purchasing a local brand called Redrock
cola verses an imported brand, Coca cola.

Fig 1: Left is Redrock Cola and Right is Coca Cola

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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

According to previous literature, one of the many ways couldinfluence the increase in the purchase of local brands
in which marketing research in developed countries differs over imported ones.
from that of developing countries is in consumer behavior
(Shankar & Carpenter, 2012). (Craig & Douglas, 2005) The Zambian economy stands to benefit significantly
stated that in developing countries, consumer behavior may from a robust understanding of consumer behavior, as it can
be more influenced by factors such as lower income levels, inform strategic initiatives aimed at bolstering local
diverse cultural norms, and evolving market preferences due industries, fostering economic growth, and mitigating
to rapid economic growth and urbanization. These factors unemployment through the creation of job opportunities
are not only likely to affect a developing country’s within the thriving local manufacturing sector. This research
consumer behavior, but also likely to cause differences in seeks to leverage the constructs of country-of-origin (COO),
the approach and occurrence of marketing research on brand trust (BT) and purchase intention (PI) to unravel the
particular topics in these emerging economies. Based on intricate web of factors that influence consumer purchasing
such research information, it is worth to consider the fact decisions in Zambia. By doing so, it aims to not only shed
that in developing countries there exists gaps in marketing light on the underlying drivers of consumer behavior but
research or to be more specific as it relates to this paper, also to provide actionable insights that can inform targeted
there exists gaps in consumer behavior research in marketing strategies and policy interventions to bolster the
developing countries, thus there’s need for more marketing Zambian economy.
research based on these countries.
This research aims at Investigating the specific factors
Apart from prior literature showing that developing that contribute to the negative effects of country-of-origin
countries have been understudied, the growth of African (COO) on the purchasing behavior of Zambian consumers,
GDP and consumer spending is also one of the current calls particularly in relation to imported brands versus local
for the need for marketing-based research on emerging brands. This includes examining the perceptions and
economies. Burgess and Malhotra in their 2020 research attitudes of consumers towards products based on their
paper (Burgess & Malhotra, 2020) stated that African GDP country of origin, such as how cultural, and economic
and consumer spending is projected to double in this decade, factors influence consumer preferences.
reaching 2.6 USD trillion and 1.4 USD trillion, respectively.
Consequently, more than one-third of the Africa’s 3 billion Lastly, this research aims to provide actionable insights
people could move from subsistence to more modern for marketers to tailor strategies that combat the negative
consumer lifestyles in the span of a generation. Also, a effects of country-of-origin on consumer purchasing
publication on Statista (statista.com) by (Tugba behavior, with the goal of promoting the growth of local
Sabanoglu,2023) shows that in 2015, consumer and brands and contributing to the overall development of the
businesses in Africa spent a total of four trillion U.S. dollars Zambian economy. This includes offering practical
and a projection for 2030 showed that this figure was recommendations for marketers to leverage consumer
projected to rise to around 6.6. billion U. S dollars by 2030, insights and cultural understanding to develop effective
fueled by population growth, urbanization and growing marketing strategies that resonate with Zambian consumers.
markets. It is worth noting that there’s a race to win these Additionally, the study aims to provide guidance on how
fast-growing, unsaturated markets by focusing attention on marketers can address cultural barriers and perceptions
the need to improve our understanding of marketing science related to local and imported products to promote the
and practice in African emergent contexts. It is to this extent success of local brands and industries. By addressing these
that, (Dadzie, Dadzie, and Winston, 2019) recently called detailed research objectives, the study aims to contribute to
for more research on drivers and performance outcomes of a deeper understanding of consumer behavior in the
marketing strategy and practice in African emerging markets. Zambian market, while also providing practical implications
for marketers and policymakers to support the growth of
Zambia, likemost of the other countries on the content local industries and the economy as a whole.
of Africa possesses gaps in marketing research. This paper
is aimed to play in role in changing the current state of II. LITERATURE REVIEW
marketing research in Zambia and Africa as whole by
shedding light on the impact of country-of-origin (COO) on A. Country-of-Country of Origin and Purchase Intention
purchase intention (PI). According to information gathered The subject of the Country-of-origin is one subjectin
through observation in Zambian marketing literature, this marketing research that has spiked the interest of many for
area of study has not yet been explored in Zambia. The over five decades now. From Schoolers first publication of
current state of study shows hints of the effect of country-of- its first study in 1965 (Schooler, 1965) which laid the
origin towards the purchase of goods in Zambia. (Mweemba foundation for understanding how the country of
& Mweshi,2022) and (Mweemba & Bbenkele,2022) in their manufacture can influence consumer attitudes and purchase
recent marketing research provided iterate evidence that intentions, up to the present day, country-of-origin has
Zambians are more inclined to purchase imported fast attracted a high level of interest from both scholars and
moving consumer goods than local fast moving consumer practitioners all over the world. Based on literature
goods.The aimof this article is to prove whether country-of- investigation, researchers found out that country-of-origin
origin has an impact on the purchase of local and imported image play a significant role in consumer’s perceptions
goods respectively. And as to help in finding factors that towards products and brands from any given country

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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

(Hanzaee & Khosrozadeh, 2011), already existing research  H1: COO impacts the purchase of FMCGs in Zambia
shows that people care about which country the product  H1a: Compared to local brands, Zambians are more
came from and where they were made (Parkvithee& likely to purchase imported brands
Miranda 2012).  H1b: Compared to imported brands, Zambians are less
likely to purchase local brands
According (Kimery& McCord, 2002) in their 2002
research, measuring consumers’ buying behaviour is not The hypothesis H1 aim to investigate the influence of
fairly straightforward; hence, their buying behaviour is COO on Zambian consumers' purchase intentions, with H1a
typically assessed using purchase intention. The theoretical and H1b providing specific predictions regarding the
basis for purchase intention in marketing is a fundamental preference for global versus local brands.
concept in consumer behavior research. According to some
researchers, Consumer purchase intention refers to the B. Brand Trust and Purchase Intention
“possibility of consumers’ willingness of purchasing some Building and maintaining a trusting and long-lasting
specific products” (Dodds, Monroe & Grewal, 1991; relationship with customers are critical to a brand’s success
Yunus& Muhamad,2016). It is also usually defined as a in today’s highly competitive global market. And because of
prerequisite for stimulating and pushing consumers to its importance in the process of brand success, brand trust
actually purchase products and services (Zhuang & (BT) has drawn increasing attention from both practitioners
Luo,2021). Purchase intention, also according to some other and researchers in recent years (Vo & Nguyen, 2022).
researchers, refers to the likelihood that a buyer in a specific
purchase situation will choose a specific group of products Brand trust is defined as the degree of consumer
in the future (Le, 2021). It is also believed to be the willingness to trust the ability to perform the functions that
likelihood that consumers intend to purchase a specific the brand has stated (Nguyen & Dang,2022), it is the
brand in the future (Nguyen & Dang, 2022). consumers’ belief that they can trust a brand to provide the
same services or products as committed (UT-THA, (2021).
Understanding the influence of country-of-origin According to (Nosi and Pucci, 2021) Brand trust antecedents
(COO) on consumer behavior is a key area of interest in can be grouped into four categories: (1) cognition-based,
marketing research, particularly in the context of consumer which is connected with consumers’ perceptions (e.g.
goods purchasing behavior. This paper aims to delve into gathered information quality and perceived privacy
the impact of COO on consumer preferences and purchasing protection) related to the trusted party; (2) affect-based,
decisions in Zambia. Drawing from existing research which is linked to indirect interactions with the vendor such
evidence and hypotheses developed based on prior studies, as advice from relatable others; (3) experience-based, which
the focus will be on exploring the preference of Zambian is associated with consumers prior experience with the
consumers for global brands compared to local brands, and retailer and shopping in general; and (4) personality-
the implications of country-of-origin (COO) on their oriented, which is connected to individuals’ dispositional
purchase intentions. traits and shopping practice.

Numerous studies, including those by Elliot & Currently there exists many studies on brand trust that
Cameron (1994), Yunus& Rashid (2015), Rashid & Barnes have brought to light numerous, interesting research
(2016), and Hiena&Phuonga (2020), have highlighted the evidence that is worth consideration and attention by both
significant influence of COO on consumers’ intention to researchers and marketers. In recent research, some
purchase a particular product or brand. These studies have researchers have pointed out that many factors affect brand
demonstrated that consumers often associate certain trusts, such as experience and brand relationship (Budi,
attributes with products from specific countries, leading to 2021), perceived service quality (Vo & Nguyen, 2022),
preferences or biases in their purchasing behavior. Moreover, social media marketing (Puspaningrum, 2020), country-of-
research by (Moradi &Zarei, 2012) and (Hiena& origin (COO) (Vo & Nguyen, 2022), while other researchers
Phuonga,2020) has shed light on the preference for imported have stated the need for businesses to behave in their
goods in developing countries, citing not only high quality customers’ best interests based on common goals and values
but also the influence of country-of-origin (COO) on that reflect trust (Kholis&Ratnawati, 2021).
purchase decisions. These findings emphasize the role of
COO in shaping consumer preferences and purchasing In Zambia, current research on brandtrust highlights
behavior, particularly in emerging economies. Furthermore, the prevalence of imported carbonated soda brands in
recent research by (Mweemba &Mweshi, 2022) and Zambia, suggesting a clear preference for global players in
(Mweemba & Bbenkele, 2022) has provided empirical the market (Chiyesu and Chiboma, 2018). This preference is
evidence that Zambian consumers are more inclined to not solely attributed to the country-of-origin (COO) but is
purchase imported fast-moving consumer goods (FMCGs) also believed to be influenced by brand trust. Furthermore,
over local FMCGs. These findings indicate that COO plays existing literature also proves that there’s a positive
a significant role in shaping consumer preferences in the association between a product’s country-of-origin and
Zambian market, with a clear preference for global brands consumers’ trust in the product (Vo & Nguyen, 2022).
over local brands. Hence based on the existing literature, the Additionally, existing literature also proves that there’s a
following hypotheses have been formulated: positive association between brand trust and consumers’

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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

purchase intention (Cuong, 2020). Thus, the author of this significant role in their inclination to purchase global brands,
article proposed that: such as Coca Cola, over local alternatives. The hypothesis is
based on the premise that brand trust is a key factor
 H2: Zambians Purchase Imported Brands due to their influencing consumer behavior and purchase decisions. By
Trust in them. examining the relationship between brand trust and the
purchasing of global brands in Zambia, this hypothesis aims
This hypothesis seeks to investigate and demonstrate to contribute to a deeper understanding of consumer
the positive impact of brand trust in mediating the causal behavior in the context of carbonated soda consumption in
effect of country-of-origin on the purchase of global brands the Zambian market.
in Zambia. It predicts that Zambians' trust in a brand plays a

Fig 2: Research Model

III. METHODOLOGY B. Scale


The entire survey comprised of questions that were
A. Survey Design tailored to question respondents about country-of-origin
The survey for this paper was designed to target (COO) i.e., examining the country-of-origin image of
Zambian consumers in Lusaka, the capital city of Zambia. Zambia for Redrock cola and the United States of America
Since this survey involves investigating the effect of for Coca cola, purchase intention (PI), and brand trust. All
country-of-origin on purchase of local brands and imported items in this survey were borrowed from previously done
brands respectively, it was decided that to avoid statistical research and measured on a 7-point Likert scale “1 = strong
error and bias there was need to design two questionnaires. disagree, 7 = strongly agree”. With regards to design for
The two questionnaires were all designed in google forms Country-of-origin (COO) items, the items used in this
and were sent to respondents in form of a link. To avoid the survey are those borrowed from (Parameswaran &Pisharodi,
same respondents from responding to both questionnaires, 1994; Hiena& Phuonga,2020), Purchase intention items
respondents were only exposed to either of the were borrowed from (Zhu & Benyoucef,2019; Hiena&
questionnaires. A respondent that participated in answering Phuonga,2020), while items for brand trust were borrowed
questionnaire 1 was not allowed to answer questionnaire 2 from (Dos Santos,2020; Vo & Nguyen, 2022). In order for
nor be exposed to it. This method allowed the author to the questionnaire to be specifically tailored for Zambian
collect data from a total of 600 respondents (i.e., 300 from respondents, some of the items were later modified to best
questionnaire 1 and 300 from questionnaire 2). fit Zambian respondents.

Table 1: Reliability Indicators of Constructs


Variables Code Cronbach’s Alpha if item deleted
Towards local brands

Country-of-origin (COO) (Cronbach’s Alpha = 0.715)


I believe Zambia is creative in production COOL1 .795
I believe Zambian technology is high COOL2 .783
I believe Zambian designs are beautiful COOL3 .794
I believe Zambia has highly qualified workers COOL4 .810
I believe Zambian workers have creative skills COOL5 .796
I believe Zambia is a prestigious country COOL6 .781
I believe Zambia is an advanced country COOL7 .788
Purchase intention (PI) (Cronbach’s Alpha = 0.978)
Next time I want to buy carbonated soda I intend to purchase Redrock cola PI1 .765
Next time I want to buy carbonated soda I plan to purchase Redrock cola PI2 .765
Next time I want to buy carbonated soda I will try to purchase Redrock cola PI3 .764

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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

Next time I want to buy carbonated soda I expect to purchase Redrock cola PI4 .763
Towards Imported brands
Country-of-origin (COO) (Cronbach’s Alpha = 0..886)
I believe USA is creative in production COOI1 .865
I believe USA technology is high COOI2 .866
I believe USA designs are beautiful COOI3 .861
I believe USA has highly qualified workers COOI4 .864
I believe USA workers have creative skills COOI5 .883
I believe USA is a prestigious country COOI6 .870
I believe USA is an advanced country COOI7 .880
Purchase intention (PI) (Cronbach’s Alpha = 0.960)
Next time I want to buy carbonated soda I intend to purchase Coca cola PI1 .961
Next time I want to buy carbonated soda I plan to purchase Coca cola PI2 .937
Next time I want to buy carbonated soda I will try to purchase Coca cola PI3 .946
Next time I want to buy carbonated soda I expect to purchase Coca cola PI4 .944
Uncertainty avoidance (UA) (Cronbach’s Alpha = 0.766)
I think Coca cola is trustworthy BT1 .837
I believe Coca cola is competent BT2 .833
I think Coca cola is honest BT3 .785
I trust the quality of Coca cola BT4 .800

IV. RESULTS AND DISCUSSION

After the measurement items and scales proved to be reliable, as part of this study, the author conducted a regression analysis
using SPSS.
Table 2: Regression Analyses
Direct effect of COO on PI
Hypothesis Beta Coefficient R2 F P-Value Hypothesis
Supported
H1 H1a: COOLocal  PI .281 .091 2.214 .009
COOPI H2b: COOImportedPI .571 .212 5.930 .000 Supported
Mediation Analysis
Hypothesis Beta Coefficient SE R2 p- LLCI ULCI Hypothesis
value supported
H2 COOBTPI .189 .095 .456 .000 .003 .376 Supported
Note(s): N= 600, COOLocal = “country-of-origin for local brands”, COOImported = “country-of-origin for imported brands”,
p<0.05.

The first stage of the regression analysis recorded in moving consumer goods in Zambia. The indirect effect of
this article was aimed at investigating the effect of country- country-of-origin on purchase intention through brand trust
of-origin in the purchasing of domestic and global brands did not include zero (β = .189, SE=.095, LLCI=.003,
respectively. According to the analyses results, H1a(F= ULCI=.376, p<.05). This supports H2’s prediction that
2.214, p<0.05), Hb (F=5.930, p<0.05) and consequently H1 Zambians purchase imported brandsdue totheir trust in them.
are all supported. This indicates that Country-of-origin The results obtained through this section of the analysis
(COO) can play a significant role in influencing the confirm prior research(Bilkey&Nes, 1982; Häubl, 1996;
purchase of both local and imported fast moving consumer Vida & Reardon, 2008; Cuong, 2020) whose analyses stated
goods in Zambia, but the effect of country-of-origin towards that there’s a significant interaction between country-of-
the purchase of local brands is much less (β = .281), origin (COO) and brand trust.
R2= .091 (9.1%) compared to the effect of country-of-origin
towards the purchase of global brands (β = .571), R2= .212 V. CONTRIBUTIONS TO THEORY AND
(21.2%). In conclusion this confirms that there’s indeed a PRACTICE
relationship between country-of-origin and Purchase
intention (Moradi & Zarei,2012; Hiena& Phuonga,2020) Firstly, the research findings underscore the
and further confirming that Zambians are more inclined to significance of incorporating the COO as a focal point in
purchase imported fast moving consumer goods than local marketing and branding strategies. Specifically, the
fast moving consumer goods (Mweemba & Bbenkele,2022). evidence indicating that Zambian consumers exhibit a
greater propensity to purchase imported brands over
The results also further show that brand trust has domestic ones (H1a) suggests that businesses should
significant mediating effect towards the purchase of fast- strategically emphasize the foreign origin of their products.

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Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24APR885

For instance, leveraging marketing communications that This educational approach can foster long-term trust and
highlight the unique attributes associated with imported loyalty among consumers, benefiting the brand's market
goods, such as quality, innovation, or prestige, can presence.
effectively resonate with the preferences of Zambian
consumers, thereby enhancing the appeal of foreign brands VI. LIMITATIONS AND FUTURE LINES OF
in the market. RESEARCH

Conversely, the statistically significant result This research study in the context of the Zambian
indicating a reduced likelihood of Zambian consumers market represents a valuable contribution to the
purchasing domestic brands compared to imported ones understanding of consumer behavior in emerging economies.
(H1b) necessitates a tailored approach towards promoting By investigating the impact of country-of-origin on
local products. Companies operating in Zambia should consumer purchase intention, the study aimed to shed light
consider accentuating the local heritage, authenticity, and on the dynamics of consumer behavior and its potential
community impact of their products to align with the implications for the growth of the Zambian economy.
preference for domestic brands. This could involve However, it is important to recognize that this study is
integrating culturally resonant messaging, utilizing local subject to some limitations that should be taken into
endorsements, or engaging in community-focused initiatives consideration as opportunities for future research.
to foster a strong connection between Zambian consumers
and local brands. The sample size is the first limitation that is worth
noting. While the study collected data from about 600
In addition, the research findings based on H1 may respondents, this sample size may limit the generalizability
prompt businesses to explore partnerships or alliances with of the findings. In a diverse market like Zambia, future
local or international entities to leverage the preference for research could consider a larger and more representative
specific types of brands. Collaborations that emphasize the sample size that would provide greater confidence in the
local or foreign nature of products could resonate well with conclusions drawn from the study. A larger sample size
Zambian consumers, aligning with their preferences and would also allow for more robust subgroup analyses,
fostering stronger market positioning for the businesses potentially revealing important differences in consumer
involved. behavior across different demographics or regions within
Zambia.
The second hypothesis in this research (H2) states that
Zambians purchase imported brands due to their trust in Similar to the limitation caused by sample size is the
these brands. The hypothesis results have indicated a limitation caused by sample representation. Although the
statistically significant relationship between Zambian study collected data using a digital questionnaire survey
consumers' trust and their preference for imported brands. method from about 600 respondents, it's essential to
Based on these results, the author suggests that managers acknowledge the diversity within Zambia, including the fact
can leverage the statistically significant relationship to that apart from Lusaka, the capital city, there are nine other
develop marketing strategies that emphasize the provinces. The sample may not fully represent the diversity
trustworthiness of their brands. By highlighting quality, of consumer behaviors and preferences across these
reliability, and consistency, companies can build and different regions, potentially limiting the generalizability of
maintain consumer trust (Vo & Nguyen, 2022). For example, the findings to the entire Zambian population. Given the
showcasing the brand's heritage, quality control measures, cultural, economic, and social diversity across different
or endorsements by trusted individuals or organizations can provinces, the study's findings may not fully capture the
effectively communicate the brand's reliability to Zambian nuances of consumer behavior in all regions of Zambia, thus
consumers.Based on the results of the second hypothesis future research could also consider carrying a survey on all
(H2), H2’s results can guide managers in positioning their 10 provinces of Zambia to have more generalized findings.
brands as trustworthy and reliable options in the Zambian
market. Emphasizing the brand's reputation, customer The scope of the variables can also be considered one
reviews, or any certifications or awards received can help of the limitations of this study. This study focuses on
establish trust among consumers. Through effective product specific constructs such as country-of-origin and brand
positioning, companies can differentiate their brands from trustas factors that affect consumer purchase intention.
competitors and capture the attention of Zambian consumers However, there may be other relevant variables or factors
seeking reliable products. influencing purchase intention that were not included in the
analysis. For a comprehensive understanding of consumer
Finally, by using the results of the hypothesis (H2) as behavior in the Zambian market, future research could
great insight into understanding Zambian consumer consider a broader range of variables, including socio-
behavior, companies can also consider investing in economic factors (e.g., income levels, employment status
consumer education programs that can further enhance trust and other cultural factors apart from uncertainty avoidance),
in imported brands. By providing transparent information marketing strategies (e.g., social proof and content
about the brand's manufacturing processes, quality standards, marketing), and product attributes (e.g. pricing, product
and relevant certifications, companies can empower quality and package).
Zambian consumers to make informed purchasing decisions.

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