Impact of Country-of-origin Image on Brand Equity: A Study on Durable Products in India

Abstract

Country of origin is an important cue to influence consumers’ perception of a brand as reported and documented by the literature. This paper tries to identify the effects of brand's country-of-origin image on the formation of its brand equity. To satisfy the objective the brand equity of some durable brands in India was examined. Three contributory dimensions of brand equity i.e. brand awareness; brand loyalty and brand distinctiveness were refereed. Random probability sampling was incorporated to collect the data from the respondents. Multiple regression analysis was conducted on brand equity dimensions which show that brand's country-of-origin image positively and significantly influences dimensions of brand equity. Again the brand's country-of-origin image influences brand equity, either directly or indirectly, through the mediating effects of the three dimensions. The study further suggests that marketers should put give more emphasis in developing brand awareness for their products and the superior image of brand's own country should be properly promoted so that the brand image will be enhanced.