Abstract
This paper examines how country-of-origin and manufacturer-of-origin effects impact brand equity for utilitarian versus hedonic products. Applying the concept of revenue premium as a measure of brand equity, this paper uses a variance component model together with secondary panel data for the U.S. passenger car market to show it is possible to apply a measure of brand equity for product categories without private labels. The results show that proportionally country-of-origin influences brand equity for hedonic products; whereas manufacturer-of-origin impacts brand equity for utilitarian products.
Highlights
The consumer perspective has dominated research concerning brand equity where constructs such as brand association, attitude, familiarity, awareness, trust, affect and loyalty influence brand perceptions (e.g., French & Smith, 2013; Mizik, 2014; Srinivasan, Park, & Chang, 2005)
The results show that proportionally country-of-origin influences brand equity for hedonic products; whereas manufacturer-of-origin impacts brand equity for utilitarian products
Consistent with Keller’s (2013) observation that building brand equity at higher levels can be more complicated than building equity at lower levels; and that brand equity built at higher levels can influence a wider range of products than equity built at lower levels; this research proposes country-of-origin and manufacturer-of-origin effects contribute to the brand equity differently
Summary
The consumer perspective has dominated research concerning brand equity where constructs such as brand association, attitude, familiarity, awareness, trust, affect and loyalty influence brand perceptions (e.g., French & Smith, 2013; Mizik, 2014; Srinivasan, Park, & Chang, 2005). Consistent with Keller’s (2013) observation that building brand equity at higher levels can be more complicated than building equity at lower levels; and that brand equity built at higher levels can influence a wider range of products than equity built at lower levels; this research proposes country-of-origin and manufacturer-of-origin effects contribute to the brand equity differently For utilitarian products such as shampoo, film and diapers, manufacturer-of-origin effects are stronger and country-of-origin effects are relatively weaker, but the converse for hedonic products (such as Scottish whiskey, French cosmetics and Italian clothing) where country-of-origin effects are more salient than manufacturer-of-origin effects. It further examines the moderation effect of a product’s utilitarian versus hedonic nature
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