In international markets, research on consumers’ attitude toward international pro ducts is crucial to the expansion of international trades, which is a common practice nowadays. In the relationship between consumers and products, country image is associated with its products by consumers. Product attitude and product attachment affect the formation of relationship between products and consumers. Switching costs can prevent consumers from switching to other suppliers. This study examined the mediation effect of switching costs (economic risk costs and set-up-costs) on the relations hips of country image with product attitude and with product attachment. The Korean wave switching costs effects were investigated using the country image of Korea as the proxy variable for Korean wave. The Korean wave switching costs effects have not garnered sufficient academic attention. This study examined the economic effects of Korean waves and the negative effect of Terminal High Altitude Area Defense (THAAD) on such economic effects.
This study used partial least squares structural equation modeling (PLS-SEM) to analyze proposed hypotheses. The PLS-SEM results revealed that most hypotheses were supported. Switching costs had mediation effects on the relationships of country image with product attitude and with product attachment. The Korean wave switching costs effects were verified. However, the economic image and culture image of Korea both did not have significant effects on the economic risk costs. The economic image of Korea also had no significant effect on the set-up costs.
This study expanded the understanding of the relationships among switching costs, country image, product attitude, and product attachment and the knowledge of relevant theories. The results provided theoretical contributions to research relevant to Korean wave switching costs effects. The results verified the negative effect of THAAD on Korean wave economic effects. In the rapidly developing international environment, the research results could serve as useful and theory-driven reference guidelines for suppliers in developing marketing strategies.