Country Of Origin Effect Research Articles

An Exploratory Study into the Impact of Components of Brand Equity and Country of Origin Effects on Purchase Intention

ABSTRACT Due to rapid globalization of markets and products, it is necessary for managers and academics alike to understand the importance of the drivers of global brands. In this paper we extend Keller's (1998) conceptualization of brand equity to incorporate Country and Brand Origin (CBO) and Country of Origin (COO) effects on purchase intention. A structural equation modelling approach is used to test a conceptual model that hypothesizes relationships between these variables for the product category of watches. The results show that the components of brand equity through the effect of brand loyalty are three times more important than COO effects. A direct recommendation of this study is that for this product category, marketing managers can choose a country of manufacture for cost efficiencies regardless of the associations that consumers have with that country.

The role of consumer ethnocentrism in food product evaluation

AbstractDespite the abundance of literature on country‐of‐origin (COO) effects there is a need for additional empirical research into antecedents of the COO effect. This study examines to what extent consumer ethnocentrism (as measured by the CETSCALE) can singularly, as well as in concert with other variables, predict consumers' evaluation of a domestic versus foreign food product. A conjoint experiment was utilized in an exploratory analysis to ascertain the value consumers in Czech Republic place on yogurt being from their own or other countries. The resulting utilities were related to a consumer's level of ethnocentrism. The findings suggest that consumer ethnocentrism is a strong and significant predictor of consumer product evaluations. Adding the ethnocentrism variable to a set of demographic and psychographic variables significantly improves the predictive ability of the set. Potential applications at the practitioners' level include the identification of market segments that react more favorably to domestic produce. [EconLit citations: M310, Q130, C120.] © 2003 Wiley Periodicals, Inc. Agribusiness 19: 137–153, 2003.

A Country of Origin Analysis of Foreign Products by Indian Consumers

Country-of-origin (COO) has been recognized in the marketing literature as one of the most important cues consumers use to perceive product quality. Products of technologically advanced countries such as Japan and Germany are known to enjoy positive country-of-origin effects. Conversely, products made in the developing countries typically suffer from negative COO effect (Gaedeke 1973). Most of the studies in this research paradigm, however, are undertaken in industrialized countries; hence their findings cannot be extrapolated to the newly industrialized countries (NIC) that offer tremendous market potential for global products. It has, therefore, become imperative for multinational companies to understand if and how consumers in the major NICs use COO and other cues to infer product quality. Using data collected from consumers in Ahmedabad and Calcutta in India, we demonstrate significant COO effect on a number of products. Results also indicate that foreign products are not perceived differently if they are imported directly from the country of design, or manufactured domestically. Finally, we highlight how these research findings will help managerial decisions about pricing, promotion, and off-shore production.

Multinational corporations, employers’ associations and trade union exclusion strategies in the German fast‐food industry

This paper focuses on the employment practices of both multinational corporations (MNCs) and large national competitors in the German fast‐food industry, such as Burger King, Pizza Hut, Nordsee, McDonald’s, Churrasco and Blockhaus. The paper poses a number of questions. Have the activities of MNCs affected the employment practices of national companies? Are companies adopting union exclusion policies and if so why and to what extent? Does the “country of origin effect” help explain the activities of MNCs? What changes are evident in workers’ terms and conditions and how effective are statutory systems of employee representation in practice? The findings suggest that Anglo‐Saxon‐based MNCs are more likely to adopt anti‐works council and non‐union policies in the sector, suggesting that MNCs may indeed be able to transfer their management practices across borders, imposing their employer‐based systems with little regard for German institutional arrangements.

The impact of country-of-origin cues on consumer perceptions of product quality: A binational test of the decomposed country-of-origin construct

In light of the conflicting findings in previous research on the effect of country-of-origin (COO) on consumer product perceptions, this paper extends previous research by testing a decomposition of the construct (country of product design (COD), assembly (COA) and parts (COP) manufacture) on Mexican and US consumers. Additionally, several moderators are tested for the first time within the framework of this model. Test results on the three products (television, athletic shoes and mountain bike) indicate that design, assembly and parts origins do have different effects on product evaluations with the COP exhibiting the strongest influence. Furthermore, COO effects vary between US and Mexican consumers—most notably related to product design, introducing the issue of whether fashion and functionality of products, which may vary between societies, cause different COO effects. Finally, age exhibited a strikingly different moderating effect in the two countries.

Linking Product Evaluations and Purchase Intention for Country-of-Origin Effects

This paper reports an experimental study concerned with the observed inconsistency between evaluative and behavioral data for country-of-origin (COO) effects. This issue is addressed by specifying conceptual relationships among three criterion variables-consumer evaluations of product quality, perceived product value, and purchase intention in the context of COO effects. The results showed that COO information had a direct effect on overall product evaluation and an indirect effect (through product evaluation) on perceived product value, which in turn determined purchase intention. In addition, purchase intention was also directly affected by brand name and price factors, but not by COO. Moreover, it was also revealed that COO and brand name had a similar impact on overall product evaluation. On the whole, this study suggests that it may be premature to claim less significant importance and role of COO information in influencing purchase intentions or behaviors. Rather, the exact nature of COO effects for behavioral consequences might be much more complex than what has been assumed in most previous studies. The present investigation represents an initial effort in providing empirical evidence of how COO information may impact evaluative and behavioral variables differently in the consumer decision process. Managerial implications of this study are discussed.

Approaches to Global Branding: The Chilean Wine Industry and the UK Market

This paper will consider global branding in international markets and specifically global marketing strategies as applied to the Chilean wine industry. This will be completed mainly by secondary data research and a comprehensive literature review. In the first part, the central arguments of selected writers about global brands, their standardisation, adaptation and customisation processes will be analysed. The second part of this paper will illustrate the changes in the global wine industry, the general situation of Chile in this sector, as well as the situation of the Chilean wine industry in the UK analysing the main characteristics of this market. Additionally, the paper will exemplify what individual wineries are doing in the UK marketplace and examine the factors affecting the possible creation of global brands for Chilean wine. Finally, the conclusion will suggest that brand recognition as well as the country of origin effect could be strong marketing tools for Chilean wines.

Country of Origin Effects and Complimentary Marketing Channels: Is Mexican Wine More Enjoyable when Served with Mexican Food?

This article investigates whether a negative country of origin bias facing imported wine can be offset when it is distributed in marketing channels alongside already accepted complimentary products. Specifically we consider the case of Mexican wine being introduced to consumers in a Mexican restaurant versus a more general themed contemporary restaurant. An experimental design was employed to investigate consumers' perceptions and future purchase intentions after tasting Mexican wine in a proposed restaurant with one of the two themes. Findings suggest that the best method for introducing Mexican wine to US consumers may be through Mexican restaurants although adoption of the wine for consumption at home may be slow.

Country Image and Expectations Toward International Programs in Business Administration Among Thai Students

ABSTRACT Educational services are becoming increasingly internationalized, but little research has been done on country of origin effects on student expectations toward such services. This study investigates country image associated with service expectations toward international programs in business administration across service brand, country of curriculum design, and country of instructor. Three service descriptors (quality, reliability, pride of buying) are used to measure student expectations. Also, the price-quality relationship is demonstrated; country image affects prices students expect to pay. For BBA international programs, Thai students perceive a hierarchy on each of the three dimensions similar to that demonstrated for many products. Developed countries elicit the highest quality expectation, followed by Newly Industrializing Countries (NICs), and then by developing countries. Thailand itself, however, scores higher than might be expected, demonstrating consumer ethnocentrism. Price expectations follow expectations on service dimensions. BBA international programs from countries which score higher are expected to cost more.

Country of Origin and Destination Effects in Buyer Decision Making: A Relationship Perspective

ABSTRACT Gaps between the perceptions of buyers and sellers on the relative strengths of competing purchasing options are likely to exist in any commercial market. In the case of international trade, one contributing factor is likely to be the Country of Origin effect, the stereotyping by buyers in one market of suppliers or products from another. While this effect has been studied, particularly in the context of consumer buying, no previous work exists comparing the gaps between the perceptions of commercial buyers in one country and the views held by suppliers in a second country. This research examines the buying decision making of UK retail buyers of textiles/clothing and compares it with the perceptions held by Portuguese textiles/clothing suppliers on how UK buyers make decisions when deciding between sourcing options in the two countries. The research methodology involves the use of a multi-criteria modelling technique (JAS). Buyers were asked to imagine that they were considering a ‘new buy,’ where they could source from either the UK or Portugal. Suppliers were asked to place themselves in the role of the buyers and to undertake the same methodology. The gaps in perception are discussed in the context of the Country of Origin effect and labelled as the Country of Destination effect. Six buying criteria, identified from the general literature on buying and that specifically on retail buying were used to model the buying decision. These were: cost, work quality, delivery time, responsiveness to requests, innovative ability and good design ideas. Respondents were asked to evaluate the relative importance of each criterion and rate each source (the UK or Portugal) on all criteria. The resultant scores for each source were used to identify, using the multi-criteria decision model, which sourcing option a buyer would select. The methodology was repeated with Portuguese suppliers who were asked to adopt the role of a UK buyer in answering the same questions. One hundred and two UK retail buyers in 35 companies and 66 Portuguese suppliers from 40 companies were interviewed in personal, face-to-face interviews. Qualitative as well as quantitative data were obtained, so that the author could better understand the decision making process being modelled. The work is unique in its attempt to combine the buying and COO literatures. The context of commercial rather than consumer buying for a COO study is unusual, as is the dyadic nature of the interview process. The main contribution from the work is the identification of what is labelled the ‘country of destination’ effect and its linkage to buyer characteristics. The practical contributions from the work include the conclusion that while Portuguese suppliers recognise the nature of the stereotyping of them by UK buyers, they underestimate the scale of this effect. Portuguese companies need to educate the British market as to their true potential.

The country-of-orgin effect on Toyotas made in Japan, the USA and Mexico

Country of Origin (COO) effects refer to consumers' reliance on COO information in evaluating the quality of products from various countries and making their decisions on product purchases. This study examined the COO effect of Toyota Corolla, Camry and Avalon and further explored the relationship between consumers' purchase intentions and their perceived product images in conjunction with political images.

The influence of “country of origin” on multinational corporation global strategy

This article examines the proposition that MNCs from a particular country are likely to exhibit profile similarities that are distinct from those of MNCs emanating from another country due to differences in home country factors. We call this “country of origin effect” (COE). A generalized framework is presented briefly explaining the nature of relationships among various COE elements that influence MNC strategy. A number of research propositions are offered that postulate the presumed effect of COE elements on MNC strategy and competitive behavior. Finally, suggestions are made as to the implications of this avenue of enquiry for further research as well as guide for management action.

Country of origin perception and industrial purchase decision-making in New Zealand

This paper focuses on the impact of country of origin (COO) factors on New Zealand purchasing managers’ perceptions of two categories of industrial products, namely machine tools and component parts. These products are from 17 countries which are categorised in three kinds, namely developed, newly industrialised and industrialising countries. In this study a distinction is also made between country of design and country of assembly. Despite the debate that COO effects may no longer be clearly delineated because of globalisation of markets and outsourcing, this study confirms the importance of COO in industrial purchase decision-making by managers in New Zealand.

Sicherheitswert und Vorhersagewert von Qualitätssignalen

The present article is concerned with the determinants of the use of extrinsic product attributes as signals of product quality exemplary for country of origin. A two-stage conjoint analysis has been performed and validated to separate the quality effect from the overall country of origin-effect. As the results of the first experiment show, consumers are using an extrinsic attribute as an indicator of quality only if the attribute has a high predictive value as well as a high confidence value. Based on covariation assessment theory a high predictive value of country of origin is the result of prior expectations that high quality technological products can only be manufactured properly in a few advanced countries. In accordance with theory of information economics the confidence value is influenced by the perceived verifiability of the signal. Accordingly the confidence value of country of origin is high, only if consumers perceive low international interpenetration of production processes. A second experiment has been conducted to analyze the effect of additional information of high credible communicators on predictive value. The results show that additional information can change the predictive value in the intended direction. Contrary to the hypotheses there was no stronger effect of extrem compared to moderate discrepant additional information. The results rather give indications for a weak credibility of extrem discrepant additional information even from high credible sources.

Country of Origin Effects on Industrial Products Coming from Eastern Europe

Summary Industrial buyers and consumers may have opinions about the general quality of products and companies from different nations and use such opinions as informational cues in their buying processes. This article presents a comparative study of the industrial profile of a “New European nation” and Western European nations. Tentative implications of the differences in industrial profile are suggested for international marketing strategy.

Country of origin effects: a literature review

This paper provides a comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services. Results reveal that consumer perceptions differ significantly on the basis of product/service and country of origin. The country of origin may be an important element in the perceptions consumers have of products and services especially where little other information is known. However, the question of how much influence the country of origin provides in product and service evaluations remains unanswered and a number of other major issues have yet to be resolved. Directions for future research are developed.

Dimensions of Product Quality and Country-of-Origin Effects Research

Country-of-Origin (COO) studies are frequently concerned with COO effects on consumers' perceptions of product quality. Nonetheless, there is no set of widely accepted quality dimensions in the COO literature. Consequently, COO effects on quality perceptions have been examined at different conceptual levels: product-specific attributes or general quality dimensions such as reliability and workmanship, applicable to various product categories. Even at the same conceptual level, researchers have often examined COO effects with different quality dimensions. These inconsistencies impede theory building and generalizations across COO studies. In this research, we propose Garvin's (1984) taxonomy to be adopted in conceptualizing and operationalizing product quality dimensions for the COO research. The empirical results support our proposal.

Country‐of‐origin effect

Marketing researchers and managers are interested in understanding how consumers utilize country‐of‐origin (COO) information in evaluating foreign products. Argues that factors operating at the individual consumer’s psychological level may offer additional insight into how consumers process COO information. Hypothesizes that individual differences in their tendency to evaluate product information may influence the effect of COO. Specifically, when a consumer’s need for cognition (NFC) is low, COO is more influential in that consumer’s product evaluation. Favourable COO may lead to more positive product evaluation than less favourable COO. However, when consumer NFC is high, product evaluation is influenced primarily by the persuasive strength of the attribute arguments rather than by COO. The results suggest that the difference in consumer NFC indeed moderated the COO effect. Consumers who were less predisposed to evaluate attribute information were more susceptible to the influence of COO, while consumers who were more willing to process information were more influenced by specific attribute argument. Discusses implications of the findings in the light of a firm’s sourcing and marketing strategies.

Consumer knowledge and country of origin effects

Consumer knowledge has frequently been mentioned in the literature as a potential mediating factor in consumers’ use of country of origin as a product information cue. However, there is little agreement on the appropriate definition and measurement of consumer knowledge in this context, nor on the likely direction of its impact. Reports of empirical findings concerning the issue are even scarcer. Looks at various dimensions of consumer knowledge and how they impact on consumers’ use of the country of origin cue in evaluations of alcoholic beverages. Finds that neither brand familiarity nor objective or subjective product knowledge has a general main effect on consumers’ use of the country of origin cue but there are significant interaction effects. Shows that objective product class knowledge can, under certain circumstances, increase consumers’ reliance on country of origin when evaluating products with unfamiliar brand names but not with familiar brand names.

Country of origin effects and HRM in multinational companies

Country of origin effects and HRM in multinational companies