Country Of Origin Effect Research Articles

Explaining the product‐specificity of country‐of‐origin effects

PurposeThe purpose of this paper is to test the applicability of product typicality in explaining the product‐specificity of country of origin (COO) effects.Design/methodology/approachTo help select stimuli used in the study, two dimensions of product typicality regarding COO images were created. A total of 416 participants from a business school in Taiwan participated in this experiment and rated their perceived COO images and attitudes towards specific products from select countries.FindingsThe results indicate that product typicality can help explain the discrepancies between COO images across products from a country, and across COOs of a product. Typical products received more favourable consumer attitudes and stronger COO images than atypical ones. This study also manipulated two other factors, product type and product category level. While product type had no significant impact on the effects of typicality, tests on product category level revealed enhanced effects for subordinate product categories.Originality/valueThe study provides a stepping stone towards the development of a general theory of COO. By testing the effects of a category‐based concept, typicality, in the context of the COO image, this study formally testifies the applicability of categorisation theories on COO effects, which may provide informative sources for the future development of COO studies. Based on the rationale of typicality, this study also tests the possible moderation effects of product types and category levels.

American multi-national corporations in the UK oil industry: sectoral differentiation in diffusion and adaptation

There is a significant literature around the idea that American multi-national corporations (MNCs) diffuse a ‘country of origin’ effect which claims the export from America of an individualistic ideology comprising distinctive employment practices based on the national business system. This literature usually conflates the sector of the firms, but recently several critiques have emerged which limit the discussion to discrete sectors (generically in the engineering industries) and which digress from the previous literature's dichotomous nature, where home versus host country influences are evaluated. This article adds to that recent literature by offering evidence of structural factors within the MNCs, as well as of institutional norms and societal influences. This evidence is taken from extensive longitudinal data on American MNCs in two sectors of the UK oil industry. These comprise the exploration and production activities on the UK continental shelf (part of the North Sea), known as the ‘upstream’ sector, and the related activities of refining of oil and manufacturing chemicals, known as the ‘downstream’ sector. The findings provide a theoretical addendum to the literature: in this study we are able, unlike other studies, to explain the adaptation of the industry to local institutional, cultural and labor market contexts through the different structures of the industry's two sectors. Even within the same MNC, the divisions prove to be differentially adapted to the UK context. Such evidence casts doubt on the broad conclusions drawn from a large part of the existing literature. We therefore show that structure and sector are far stronger forces explaining MNC actions than the diffusion of a country of origin effect.

It all began with a kiss, or when packaging sells a country

PurposeThis paper aims to: better understand the country of origin (COO) construct by adopting a lens of marketplace mythology; and develop a conceptual framework delineating the process of mythologizing a country through the use of packaging.Design/methodology/approachAnalysis of narratives on food product packages that claim a connection to Italy lets this qualitative study join two streams of research – on COO effect and marketplace mythology.FindingsThe work proposes four mythological properties of the country of origin construct, discusses their major dimensions, establishes their relationship, and develops a conceptual framework delineating the mythological nature of the country of origin construct.Research limitations/implicationsSeveral directions for future research may enhance this study. For example, the interpretation of the narratives by the consumers of food products claiming an Italian connection will allow exploring how the mythic structures employed by marketers are read by the intended readers.Practical implicationsThe importance of COO effects on consumer decision making is expected to become even stronger with current globalization trends that increasingly move products across countries and force marketers to engage in a battle to differentiate their brands – in many cases by capitalizing on the origin of products.Originality/valueBy exploring food package stories, the paper focuses on the carrier of mythic meaning that is under‐researched in both COO and marketplace mythology studies. The present study adds to the understanding of how geography ceases being a mere informational “Made in” statement and is transformed into a powerful cultural marker, full of symbolically framed meaning.

“What? I thought Samsung was Japanese”: accurate or not, perceived country of origin matters

PurposeExtensive research has shown that country‐of‐origin (COO) information significantly affects product evaluations and buying behavior. Yet recently, a competing perspective has emerged suggesting that COO effects have been inflated in prior research and even that the COO concept has become irrelevant. The purpose of this paper is to reconcile these two competing perspectives by examining the effects of individual brand origin perceptions.Design/methodology/approachThe conceptual framework is grounded in consumers’ learning. Empirically, the authors’ hypotheses are tested using hierarchical linear modeling on a sample of 4,047 brand evaluations by 544 consumers.FindingsThe results provide strong evidence that product country image of the consumer's perceived brand origin strongly affects brand attitudes, and this happens regardless of the perceptions’ objective accuracy. The authors also find evidence that educating consumers about brands’ true COO can contribute to changes in brand attitudes.Practical implicationsIt is concluded that suggestions that COO has become an irrelevant construct in international marketing may be premature. The study offers meaningful insights for managers in understanding how brands’ country associations affect brand attitudes.Originality/valueThis study aims to reconcile tensions in the current COO literature and does so by demonstrating that although consumer knowledge of brand origin is often mis‐calibrated, consumers’ perceptions of brand origin still matter.

Global competitiveness, consumer choice and ‘country of origin’ effect: an exploratory East–West study

As protectionist sentiments rise in many countries in light of the 2008–2009 financial crisis, it is more important than ever to understand the potential role of homophily on the country of origin (COO) effect in consumer purchases and how it can impact trade and investment. This study examines these attitudes using a sample of 139 university students from different ethnic backgrounds in Vancouver (Canada), one of the most culturally diverse cities in North America. The results confirm the importance of ethnicity in affecting attitudes toward different countries, including the impact of political/cultural ties and current/historical events on their formation. Variations among different ethnic groups were found, however.

The Relationship between Authenticity and the Souvenir Purchase Intent

Although shopping for a souvenir is rarely the main motive for taking a leisure trip, nonetheless, most tourists do take time to shop for souvenirs. Souvenirs play a major role in a tourist's travel experience and memory. Traditionally, many studies about souvenir purchase behavior have mainly focused on the analysis of the different types, functions, store management, and customer's satisfaction of souvenirs. Few have been done to analyze how tourists determine the authenticity of a souvenir as well as the effect of country of origin (COO). Therefore, this study proposes a souvenir purchase conceptual model that manifests the relationship between tourist experience modes, souvenir categories, authenticity, effect of COO, and souvenir purchase intent. This model suggests that both tourist experience modes and souvenir categories determine the level of authenticity, which in turn affects souvenir purchase intent. In addition, the effect of COO serves as a moderator influences the relationship between souvenir authenticity and souvenir purchase intent.

PAÍS DE ORIGEM E ETNOCENTRISMO NA AVALIAÇÃO DA IMAGEM DE MARCA GLOBAL: UM ESTUDO SOBRE O MCDONALD’S

O objetivo deste estudo é analisar a influência que o país de origem e o etnocentrismo têm sobre a imagem da marca institucional da conhecida empresa de fast-food, o McDonald’s, e observar se existem diferenças na imagem percebida em função de gênero, idade e classe socioeconômica. O trabalho principia com uma contextualização, seguida de breve revisão bibliográfica sobre marca global e país de origem para dar sustentação à pesquisa empírica. Trata-se de uma pesquisa quantitativa do tipo survey com uma amostra não probabilística e por conveniência com 275 pessoas realizada na cidade de São Paulo. O questionário foi construído com perguntas fechadas composto por levantamento de dados demográficos da amostra, assim como por três escalas: a primeira mede o efeito do país de origem (AYROSA, 2002), a segunda escala, denominada CETSCALE, mede o nível de etnocentrismo do consumidor (SHIMP; SHARMA, 1987), e a terceira avalia a imagem institucional de marca do McDonald’s. Embora o nível de etnocentrismo do consumidor não interfira na imagem da marca estudada, o efeito do país de origem é útil para discriminar os respondentes em relação à imagem que têm do McDonald’s: quanto pior é a avaliação dos Estados Unidos como país, pior é a imagem da empresa. Consumidores jovens, mulheres e pertencentes às classes socioeconômicas superiores apresentaram avaliações mais positivas em relação à marca estudada, assim como percepção mais positiva do país de origem da marca. Portanto, é verificada linearidade entre a avaliação dos Estados Unidos como país e a imagem do McDonald’s.

Country-of-origin effects and antecedents of industrial brand equity

Does the country-of-origin effect matter to industrial brand equity in international business-to-business (B2B) markets? The effect of a product's country-of-origin (COO) on both industrial buyers' and consumers' perceptions and evaluations has been one of the most widely studied phenomena in the fields of international business, marketing, and consumer behavior since the 1960s. Although many country-of-origin studies focus on consumer behavior in developed countries and acknowledge that the processes and stages of economic development by which consumers use COO information may differ in developing countries, the fact that there has been little research to investigate the effects of COO could explain the variations in international buyers' evaluations of industrial brand equity in the newly-industrialized economies, such as Taiwan. Taiwanese firms are now formidable global B2B market players by successfully transforming themselves from manufacturing mainly low-value and labor-intensive goods to producing many high value-added products that require advanced technology, equipment and significant business expertise. With the adoption of advanced technology and equipment, an important question is whether unique and innovative fastener products from Taiwan have generated the country-of-origin effects in international B2B buyers' minds. The main finding is that the country-of-origin of fasteners has not yet become an important antecedent of industrial brand equity in the case of the fastener industry in Taiwan.

Country of origin effect on services: an evaluation of entertainment

With globalization in its full toll, customers today have awareness about and access to various foreign entertainment forms such as movies, music and performing arts like theatre and circus. This has magnified the need and scope of the studies on country of origin (COO) effects with respect to entertainment. However, upon reviewing the literature, it is found that, though voluminous literature exists in product context, only few studies have addressed COO effects in service contexts with negligible contribution pertaining to the domain of entertainment. This article tries to address this gap by finding out whether consumers attribute COO effects to various entertainment forms emanating from abroad. This study undertaken in an Indian urban youth context proves the existence of COO effects in consumers' evaluation of various foreign entertainment forms.

Made in China but sold at FAO Schwarz: country‐of‐origin effect and trusting beliefs

PurposeThe purpose of this paper is to investigate the moderating effect of trusting beliefs about a store on country‐of‐origin (COO) effects. The paper suggests that three trusting beliefs (ability beliefs, benevolence beliefs and integrity beliefs) about a retail store moderate negative effects of COO on product evaluation and purchase intention. However, under high manufacturer risk conditions, only benevolence beliefs moderate the negative COO effects.Design/methodology/approachThe toy industry is chosen as the study context. The first three hypotheses are tested with survey data collected from 224 participants. The last hypothesis is tested with data collected from 338 participants. Hierarchical moderated regression was used in the testing of the hypotheses.FindingsThe results show that while only benevolence and integrity beliefs about a store weaken the negative effect of COO on product evaluations, all three trusting beliefs lessen the negative impact of COO on consumers' purchase intentions. However, when manufacturer risk is high, only benevolence beliefs have a significant moderating effect.Practical implicationsThe findings show that manufacturers can reverse the negative cycle, or at least minimize their losses, if they choose those retailers that consumers have high trusting beliefs about as their channel members. Similarly, if they can signal that they are benevolent and honest stores, retailers can balance their customers' negative evaluations of products made in certain countries with negative image.Research limitations/implicationsGiven the recent product recalls and concerns, the toy industry presents an ideal case to study the effect of trusting beliefs on COO effects. Nonetheless, the focus on a single industry does limit the generalizability of the findings. The authors recommend that future researchers examine these relationships in studies focusing on other product categories.Originality/valueTo the best of authors' knowledge, this is the first study that investigates the impact of individuals' trusting beliefs about a store on COO effects.

A conceptual framework to study the country of origin effect on international higher education services

The present paper envisages applying an international marketing specific concept, namely the country of origin effect (COE) to a knowledge-based type of service, respectively higher education services, for the purpose to illustrate the existence of a relationship between the two and to propose a conceptual framework to study this relationship. The paper will advance a conceptual framework, formed of a model plus a number of research propositions, that will allow studying the impact of the dimensions of the country of origin effect (COE) on higher education services at international level. The framework is a useful instrument to explore the relationship between national stereotypes and evaluations based on the country of origin in the case of higher education.

Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects

Integrating signaling and institutional perspectives, we develop and test hypotheses relating institutions and corporate governance to foreign IPO success. Our investigation highlights the importance of three important drivers of foreign IPO success: home country legal institutions, corporate governance, and host capital market choice. This research demonstrates that board independence and country of origin effects are powerful signals. However, these factors do not have a universal impact on foreign IPO success. Instead, the value of home country institutions along with corporate governance signals are contingent upon the institutional environment in which international entrepreneurs choose to seek capital resources.

Marketing a consumer durable brand in Malaysia: a conjoint analysis and market simulation

PurposeThis paper aims to use conjoint analysis to examine how Malaysian consumers make decisions regarding a consumer durable product – namely room air conditioners – under multi‐cue situations.Design/methodology/approachThis study first assesses the impact of a priori perceived differences between brand names, country of manufacture, price, quality, technological advancement, and warranty on product evaluation. Second, the relative importance of the attributes as evaluative criteria is determined by performing part worth analysis. Six pertinent hypotheses are developed and tested. Conjoint analysis is used to develop product profiles that respondents could evaluate via a survey. This is followed by a market simulation to suggest marketing strategies for Malaysian and Japanese products (the latter dominate the Malaysian market).FindingsThe findings indicate the importance of capitalising upon consumer durables' intrinsic qualities, and the need to carefully consider the relationship between price and quality. Ways to take advantage of the strength of foreign brand names need to be understood and operationalised. The simulation exercise also indicates ways in which indigenous and external competitors could take advantage of market opportunities.Research limitations/implicationsThe study does place in a Malaysian context, and moreover used a convenience sampling approach. The need is demonstrable for more representative probabilistic sampling. While country of origin effects are understood, other criteria (i.e. design, assembly, and source) need to be considered in future studies.Practical implicationsIt is felt that the approach utilised and the simulations developed can be applied in other geographic and cultural contexts and have implications for marketing strategies for branded consumer durable typologies.Originality/valueThe paper identifies and evaluates strategies for more effective competition in the Malaysian room air conditioner market. The use of conjoint analysis and market simulation provides a basis for competitive advantage in a tightly focused market sector.

Cue incongruity in wine personality formation and purchasing

PurposeThe purpose of this paper is to examine the direct and interaction effects of brand name (BN) of wine and country‐of‐origin (COO) on perceptions of the personality image of the wine, expected price, and willingness to engage with the wine.Design/methodology/approachA field experiment in which label information for a fictitious wine was presented to wine consumers with a questionnaire on wine perceptions and response measures. The label information was manipulated across subjects using four BNs and three COOs.FindingsThe study confirms BN and COO effects on perceived wine personality and responses to the wine. Findings also indicate the effects of BN and COO as well as a BN‐COO interaction effect on price expectations.Research limitations/implicationsFindings link different personality dimensions to the two different cues, suggesting greater independence of the cues than originally expected. However, some BN‐COO incongruity effects are found particularly regarding price perceptions. A small set of wine BNs and COOs are tested and sample size/treatments are limited. With larger sample sizes, some weak effects might prove more significant. For more substantive support of these findings, the study could be repeated in different locations with different BN and COO examples.Practical implicationsThe results suggest consumers are open to some fluidity in brand name use across wine‐producing countries with appropriate pricing strategies. They also highlight the importance of understanding consumer perceptions of wine personality in assessing consumer responses and price expectations.Originality/valueThe research addresses BN and COO direct and interaction effects on many aspects of wine evaluation and the central role of personality dimensions in wine assessments. The paper provides evidence of value in a rapidly evolving marketplace for wine and insights into the ongoing strategic changes in the wine market. It also contributes to theory and research on information cue use and cue incongruity effects.

Countering negative country‐of‐origin effects

PurposeAs multinational firms seek to acquire competitive cost advantages through global sourcing, it is also important for them to develop effective strategies to reduce possible damage of a negative country‐of‐origin (COO) effect. This study aims to examine whether brand image and evaluation mode could alleviate a negative COO effect.Design/methodology/approachA 2(COO)×2(brand)×2(evaluation mode) experimental design was employed in order to examine whether brand and COO effects on product evaluation vary under different evaluation modes. The data were analyzed by a repeated measure MANOVA.FindingsThe results showed that products made in favourable countries were rated higher in joint evaluation mode than in separate evaluation mode. Conversely, products made in unfavourable countries were better evaluated in separate evaluation mode than in joint evaluation mode. The results of the study are not in favour of the notion that a strong brand image could overcome the negative effect of COO.Research limitations/implicationsConclusions of the study suggest that the COO effect plays an equally important role in consumer product evaluation for both strong and weak brands. Thus, even for a product with strong brand image, the negative consequences of COO stemming from consumersˇ unfavourable attitudes towards the manufacturing country are not likely to be completely eliminated. Moreover, to alleviate the negative impact of unfavourable COO, marketers may want to avoid direct comparison between products made in unfavourable countries with those made in favourable countries, regardless of their brand strength.Practical implicationsWhen marketing a product made in an unfavourable country, marketers should manage to create a selling environment facilitating a separate evaluation mode. In contrast, marketers should proactively manage to display products from favourable countries along with those from unfavourable countries in order to further enhance quality perceptions.Originality/valueThe results of the study could help marketers employ advantageous merchandizing or advertising strategies to lessen the negative effect of COO.

Georgian consumers' evaluation of products sourced from European Union member countries

PurposeThe purpose of this paper is to examine country of origin (COO) effects among Georgian consumers towards selected European Union (EU) member country products. Within this general framework, the present paper aims to determine Georgian consumers' perception of products sourced from Germany as the largest EU exporter to Georgia, Italy as the source of some well‐known product classes, and Poland as a new member of the EU.Design/methodology/approachThe study was conducted among 313 consumers, from Tbilisi, Batumi, Kutaisi, and Rustavi in May and June of 2005. Based on the experiences and the findings of an earlier survey, ten products available in the Georgian market were identified as relevant for the study. A five‐point Likert scale was used to gauge respondents' perceptions of quality of each product from respective countries.FindingsMost of the products made in Germany are perceived high in quality. Italy is rated high in some major product classes like clothing and fashion products. Poland is not rated high for any product class but, its products' lower prices are appreciated by Georgian consumers. Findings support the earlier research specifying the heuristic between product evaluation and degree of economic development of the sourcing country. COO evaluations vary according to product class. The results also confirm past research indicating the differentiating effect of demographic variables on COO perceptions. COO image of Germany and Italy contributes to general “made in Europe” image, the image of Poland moderates it.Research limitations/implicationsThe paper's main tenet was that Georgian consumers had high regards for products coming from highly developed EU member countries. This is a static study and looked at the COO phenomenon during one period of time (static approach). Further studies are needed to determine the COO effect over a longer period of time (longitudinal studies). In addition to the study of COO effects on country's product class, the study of product form, product brand, and product brand options may produce more illuminating results.Practical implicationsGeorgian importers and European exporters should consider the “made in” strength of each product for competitive advantage and build up their product assortments accordingly. For promotion, exporters to Georgia and resellers in Georgia may put more emphasis on COO of the products which have relatively strong product country image. Relatively, weaker products from Italy and Germany may be supported by using a general country image. The “made in Europe” label may also help to increase the appreciation of products coming from Poland.Originality/valueThe present paper provides empirical evidence about consumers' perception of foreign products in a less researched geography.

Predicting consumer behavior based on country of origin (COO)

PurposeThis study seeks to examine country of origin (COO) and national loyalty effects on Lebanese consumers' quality perceptions, attitudes, and purchase intentions with respect to airlines serving Lebanon.Design/methodology/approachThe research comprised formulation of a detailed questionnaire that was served to 360 persons via personal delivery and e‐mails. Statistical analysis of data employed chi‐square and ANOVA tests.FindingsIt was found that factors other than personal experience could impact customer perceptions when selecting the airlines of preference in which national loyalty was a key factor. An important finding was that, from the point of view of personal experience, demographic variables influenced customer perceptions, whereas otherwise the country of origin (COO) effect was predominant.Research limitations/implicationsThere was a direct implication that factors other than personal experience do impact customer perception when selecting the airlines of preference. The findings show disagreement with many scholars who give high importance to personal experience as a basis for selection. In this scenario, the majority of the respondents traveled on MEA and gave a good evaluation for the quality services provided by MEA. A different experimental setting would be required to determine the response of dissatisfied customers with travel on MEA.Originality/valueThe analysis of COO effect in selecting an airline by Lebanese consumers is the first of its kind of study in Lebanon and would contribute to the overall literature. It could also provide useful information to the airline industry and national aviation planners in Lebanon.

Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness

Despite growing evidence about differences in the attitudes and behaviors of consumers in emerging and developed markets, there is little research on the differences in country of origin (COO) effects on their evaluation, behavioral intentions (BIs), and actual purchase of imported products. This paper introduces a new conceptual framework incorporating consumer ethnocentrism (CET), materialism (MAT), and value consciousness (VC) to hypothesize several differences in the influence of COO effects on consumers from developed and emerging markets. A web-based study with 1752 consumers in four countries representing two developed markets (the UK and the USA) and two emerging markets (China and India) shows significant differences in the moderating influence of CET, MAT, and VC on the effects of COO on the evaluations and BIs for a fictitious passenger car brand, and on the actual choice of car brands owned by them. The findings highlight the importance of looking beyond CET at other relevant psychographic variables to understand the differences in motivations underlying consumer perceptions and behavior towards imported products.

The Impact of Country-of-Origin and Joy on Product Evaluation: A Comparison of Chinese and German Intimate Apparel

Abstract Consumer’s differentiated perception and appraisal of a product’s country-of-origin (COO) exerts large influence on perception of the COO-image (COI) and on the perceived product quality. At peripheral information processing COO-Image (COI) provides a basis to ease requirements for information processing in form of heuristics. Most of internationalization literature examines the COO effect with respect to high-involvement products and in context of cognitive processing. However studies from Maheswaran and Chen (2006) point out, that besides cognitive influences, also specific emotions impact on COO-effects. Whereas the influence of negative emotions like anger, sadness or frustration on processing and judgments could be exposed, the issue of positive emotions’ impact still stays open. Since the question should be answered, if emotions impact on COO-Effects, it is emphasized to focus on COO as an affective heuristic operating as a “halo” effect on attitudes towards a product. Because both marketin...

Empirical testing of correlations between the effects of country-of-origin and consumer perceptions

The economic and social changes occurring in the former socialist and communist countries of Central and Eastern Europe point to the need for more intensive consumer-based market research. In the international research and business use the country-of-origin (COO) labelling has become one of the factors that distinguish products. The purpose of this paper is to explore the impact of COO information on brand perception and the consumer evaluation of other chicken meat properties. The present article concentrates on the results of the primary quantitative research, which was carried out using a method of individual personal interviews. A sample was consisted of was 500 Slovenian poultry meat consumers aged between 18 and 65 years. Special attention was paid to the COO of chicken meat. In the research the Slovenian consumers evaluated internal and external properties of chicken meat originating from various countries. The survey showed that COO affected the brand perception and evaluation of other properties of chicken meat. A positive assessment of Slovenian chicken meat and the impact of chicken meat origin in the process of its evaluation were evident from the survey. The present study is one of the first to empirically examine and confirm the impact of COO information on brand perception and the consumer evaluation of other meat properties. This research aims to develop a better understanding of the effect of COO on brand evaluation and other product properties evaluation.