Country‐of‐origin and brand effects on consumers’ evaluations of cruise lines

Abstract

This study examines country of origin (CO) and brand effects on consumers’ quality perceptions, attitudes, and purchase intentions with respect to a service‐industry product: international cruise‐line packages in Singapore. Star Cruise (Malaysia) and Royal Caribbean Lines (USA) were selected as the brands and countries for the study. Respondents provided quality, attitude and purchase intention ratings. Contrary to prior evidence, CO does appear to be an important informational cue for consumers of services; CO effects were found to be stronger than brand effects for quality and attitude ratings, while brand was more significantly correlated with purchase intentions. A positive CO image compensated for a weak brand, suggesting that, where applicable, marketing efforts should emphasize an association with a positive CO perception. Conversely, a strong brand was not found to compensate for a negative CO perception; in this case, it would be appropriate to change the associated CO to one with a more positive image, as at least one major cruise line has already done.