The “Pricing Footprint” of Country-of-Origin: Conceptualization and Empirical Assessment

Abstract

Drawing on equity theory, we apply Van Westendorp’s Price Sensitivity Meter (PSM) to compare the “pricing footprints” of a brand originating in countries differing in their country image favorability. This footprint is captured by the different price levels for which consumers perceive the brand to be (a) too cheap (i.e. raise concerns about its quality), (b) cheap (i.e. seem like a bargain), (c) expensive (i.e. not cheap but would still consider buying it), and (d) too expensive (i.e. priced so high as to prevent purchase). Based on two studies conducted in Ukraine and Brazil, and controlling for several consumer dispositions, we find that differences in country image do not always translate into significant differences across all components of the pricing footprint. Moreover, even if such differences are observed, they do not apply to all target countries. Implications for country-of-origin research and practice are considered and suggestions for future research made.