Consumer responses to corporate offshoring practices

Purpose. Our research investigates consumer responses to company communication of offshoring strategies and tries to discover which psychological mechanisms govern these responses. To do these, we examine offshoring strategy communication from the point of view of Regulatory Focus Theory (RFT). Design/methodology/approach. We tested our hypotheses in two different studies. Study 1 examines the associations between company offshoring motives and consumer’s prevention or promotion inferences about the company’s practices. Study 2 tests if and how the interaction effect between respondents’ self-regulatory focus and the company offshoring motive affects respondents’ attitude toward the offshoring company. Findings. Our study demonstrated that each of three offshoring motives activates unique self-regulatory orientations (promotion or prevention focus) in consumers, and regulatory fit positively affects consumer attitudes toward the offshoring company. Practical implications. Results suggest how to communicate company offshoring decisions to consumers. By trying to instill a particular regulatory focus in the public with their communication tools, companies can create a better match in the public eye, gaining more positive consumer evaluations. Originality/value. This research shows the mechanisms through which consumers respond differently to specific offshoring motives communicated by a company. By building on psychology theory, our study gains insights into the consumer reactions to company offshoring and, to our knowledge, no research to date has examined these mechanisms.