Scale Development

[Shashi Yadav]

Respected Neeraj Sir and Group Members,

Kindly guide me on the following issue: 

I am currently developing a scale to measure the influence of “Country of Origin (COO)” on consumers’ purchase decisions. For this scale, I have incorporated:

* Country-level factors that shape the overall image, reputation, and influence of a country.
* Product-specific factors, as the scale is intended to capture COO influence in product purchase situations.

I am also considering incorporating company/firm-related factors, since firms are the actual manufacturers and their reputation, practices, and capabilities may influence consumers’ perceptions of products originating from a particular country. Additionally, I have come across literature suggesting that COO can be examined at the consumer, firm, and country levels, which further supports the inclusion of firm-level dimensions.

In this context, I would like guidance on the following issue:

My concern is whether ESG  (Environmental, Social, and Governance)  can legitimately be treated as a firm/country-level factor that shapes COO perceptions and ultimately influences consumers’ purchase decisions. Further, within the country-level dimensions, I have already incorporated PESTLE factors, where the “E” (Environmental factors) represents environmental conditions and policies at the national level. At the same time, if ESG is included at the firm/company level, its environmental component (“E”) would also capture environmental responsibility and sustainability practices of firms. Therefore, would it be theoretically appropriate to include the environmental aspect in both dimensions—country-level PESTLE and firm-level ESG—within the broader COO construct? If yes, how can this overlap be conceptually justified and differentiated?

Regards

Shashi Yadav