Country branding using product quality

Abstract

Recent past has seen an increased interest in country branding. However, little research attention has been devoted to this topic. The conventional wisdom from country-of-origin (COO) effect literature suggests that COO affects perception of product quality. However, some argue that the relationship between product quality and COO image may be bidirectional. Therefore, this study has two purposes. First, we empirically investigate the impact of perceived product quality on COO image, which is the mirror image of the conventional COO perspective. Second, we test the relationships between perceived product quality, COO and purchase intention. Using a scenario as a stimulus, we collected the data in two countries – USA and China. The results show general support for the theoretical model although the results varied in US and China samples. The products with higher perceived quality are thought to have come from a country with more positive COO image, than products with lower perceived quality. Moreover, COO image was generally found to mediate the relation between perceived product quality and purchase intention. The findings in this study substantiate the assertion that perceived product quality is a key variable in shaping the country image. The theoretical and practical implications in country branding conclude the remark.