Consumers' use of ambiguous product cues: The case of “regionality” claims

• Published date: 01 July 2023
• Author: Marc Herz,Adamantios Diamantopoulos,Petra Riefler
• Date: 01 July 2023
• DOI: http://doi.org/10.1111/joca.12548

RESEARCH ARTICLE

Consumers' use of ambiguous product cues:

The case of “regionality”claims

Marc Herz

1

| Adamantios Diamantopoulos

2

| Petra Riefler

3

1

K'UP GmbH, Berlin, Germany

2

Chair of International Marketing,

University of Vienna, Vienna, Austria

3

Institute of Marketing and Innovation,

University of Natural Resources and Life

Sciences Vienna, Vienna, Austria

Correspondence

Marc Herz, K'UP GmbH, Potsdamer Str.

98A, Berlin 10785, Germany.

Email: marc@kup.id

Abstract

Ambiguous product cues—cues with multiple interpre-

tation options—may impact consumer decision making.

One such ambiguous cue is the designation of a product

as “regional”without specifying the exact origin of the

product. Here, consumers typically equate “regional”

with spatial proximity, yet legally the use of regional

labels does not necessarily reflect such proximity.

A potential mismatch can occur between consumers'

interpretation of regionality and firms' use of regional

communication claims, leading to potential consumer

deception and harmed consumer welfare. Drawing

upon the accessibility-diagnosticity-framework and

Elaboration-Likelihood-Model, this paper examines con-

sumers' responses to different regionality cues. Across

two studies, we find that communicated regionality cues

heighten consumers' product evaluations resulting from

(mis)perceived spatial proximity. Informing consumers

about the true product results in unfavorable evaluations

if that origin is spatiallydistant. Our findings call for reg-

ulation of regional product labels and highlight the need

for communication standards in consumer markets.

KEYWORDS

ambiguous product cues, product labels, regionality

Received: 15 September 2022 Revised: 19 April 2023 Accepted: 27 April 2023

DOI: 10.1111/joca.12548

© 2023 American Council on Consumer Interests.

J Consum Aff. 2023;57:1395–1422. wileyonlinelibrary.com/journal/joca 1395

1|INTRODUCTION

According to recent consumer barometers, 83% of European consumers have a general positive

attitude toward regional products, that is, products originating from the proximate region in

which they are purchased (Consors Finanz Consumer Barometer, 2019) and 73% of consumers

consider the regionality of their fast-moving consumer good products as a key selection crite-

rium (KPMG, 2020). In line with this trend, academic research on consumers' preferences for

regional products has evolved over the last year (cf. Davvetas & Diamantopoulos, 2016;

Fern

andez-Ferrín et al., 2018; Waehning & Filieri, 2022; Zeugner-Roth et al., 2015). Numerous

studies document a strong influence of regional origin for a variety of purchase decisions

(Sheng et al., 2019; Waehning & Filieri, 2022). This effect has been shown particularly in the

food product category (cf. Hu et al., 2012;Moseretal.,2011; Santeramo & Lamonaca, 2020)

in addition to categories such as craftsmanship and artisanry (e.g., Hruˇ

ska et al., 2017). In

response, companies have enlarged their offerings of regional products and intensified the

use of “regional”labels in their communications to consumers (e.g., Verbraucherzentrale

Hessen, 2016,2020).

Generally, there is no common consensus or definition of the term regional within the (aca-

demic) literature (Strizhakova & Coulter, 2015, see also discussion below). From a legal per-

spective, however, the term “regional”itself is not regulated and products using the term only

have to ensure that a product is produced within any one specific region. At the same time, the

majority of consumers interprets the term “regional”as being produced within their home

region thus linking regionality to geographic proximity (e.g., Fern

andez-Ferrín et al., 2019;

Smith & Mackinnon, 2007). However, the labeling of products as regional does not necessarily

conform to this assumption as there is no coherent definition on what a “regional”product is

(Waehning & Filieri, 2022). While there are strict legal guidelines companies need to adhere to

in order to use PDO (protected designation of origin) or PGI (protected geographical indication)

labels to protect traditional specialties of specific regions (such as, for example, Clare Island

Salmon or Parmigiano Reggiano), companies may label their products as ‘regional’without

specifying any particular region or having to complete any certification processes. From a legal

perspective, the term “regional”merely means that a product must be produced within any one

specific region (which, in principle, might be anywhere on the globe). This situation opens a

loophole for potential malpractice. While consumers equate regionality cues with spatial prox-

imity of value chains, products carrying such labels are not required to produce in regions geo-

graphically close to the point of purchase (Verbraucherzentrale Hessen, 2016,2020). Products

made in one region of the world might indeed be sold as “regional products,”which we under-

stand as products produced within any one specific region in this paper, in other parts of the

world—not least because market regulations for using regionality claims or certifications do not

exist at national or international level (e.g., Deutscher Bundestag, 2016; Pícha et al., 2018). Stud-

ies have shown that a substantial proportion of products carry ambiguous regionality claims

and labels without specifying the actual region in which the product is produced

(Verbraucherzentrale Hessen, 2016,2020). In short, the concept of regionality can be highly

ambiguous as consumers' understanding of the term and the legal specification of regionality

may be fundamentally different.

Ambiguity in the meaning of regionality can lead to situations where consumers are poten-

tially misled. For instance, companies may label their products as regional and unintentionally

create proximity (i.e., “closeness to home”) associations in the minds of consumers. In other

cases, companies may intentionally evoke perceptions of regionality to boost brand evaluations

1396 HERZ ET AL.