Country Of Origin Effect Research Articles

Could there be a luxury brand originating from the Czech Republic? The case of Czech watchmaker manufacture Prim 1949

Central Europe, due to its history, is not perceived as a region from which a luxury brand could originate, rather luxury is traditionally connected to Western European countries (such as France, Italy or Switzerland). Country of origin (COO) plays an important role in the perception of any brand but for luxury brands the COO is usually even more important than for mainstream brands because it is an important part of the brand's heritage. But despite their unfavorable origin, in the last few years, we can observe that brands which originate from the CEE region have positioned themselves in the luxury market. The goal of this article is to investigate the COO effect for a luxury brand originating in the Czech Republic - namely the watchmaker Prim - and its impact on the marketing strategy of this brand. The main research method used in this article is the case study method which combines the findings of in-depth interviewing and observations together with findings of secondary research. The managerial implications mainly target brand managers of luxury or premium market brands originating from the Czech Republic and other CEE countries. The investigated brand case of Czech watchmaker Manufacture Prim 1949 proved that it is possible to build a luxury brand originating in the Czech Republic and also successfully enter foreign markets with this brand. However, for foreign markets, the marketing strategy (mainly the communication) strategy needs to be adapted as the COO does not bring any additional value for customers in those markets and it needs to be replaced by other values (such as the long tradition of the brand, interesting story of the brand, etc.). Overseas, the COO could be used as a positive value by stressing the European origin instead of the Czech one. Targeting also needs to be adapted as local patriotism would not work for the brand.

Modeling links between the decision-making process and luxury brand attachment: An international comparison

This research aims to extend the analysis of the factors influencing consumer purchase of luxury goods. The effects of brand and country of origin (CoO) on the purchase decision are specifically considered. A total sample of 1103 respondents in seven countries (China, France, India, Italy, Japan, Russia, USA) is analyzed through a structured questionnaire administered online. The research tests the scales of decision-making and brand attachment through exploratory and confirmatory factor analysis. It also tests the causal model of relationships between decision-making and luxury brand attachment.The richness of this research is related to the intercultural analysis of the results obtained in seven countries. These results concern the differences and similarities in: (1) defining the concept of country of origin (country of design, country of manufacture/country of assembly); (2) the combined effects of factors, including brand, CoO, price, guarantee, design and advertising, in the purchasing decision for luxury brands; and (3) the links between decision-making and attachment of the consumer to the luxury brand.The results are interesting in terms of management recommendations for a company that wishes to expand internationally into one of the geographic areas covered by this study, since significant differences are observed.

A diachronic analysis of HRM transfer: Taiwanese multinationals in the UK

PurposeThe purpose of this paper is to use a diachronic analysis to explore the influence of country of origin effect and country of management effect on the adoption of human resource management (HRM) practices at different stages.Design/methodology/approachThe methodology starts with an intensive literature review to establish an analytical framework by bringing country of origin and country of management effects on the HRM transfers. By using a longitudinal qualitative research design, a total of 164 interviews from four British subsidiaries of four Taiwanese multinationals were conducted to explore the change over time during the HRM transfer processes over a five‐year period.FindingsThe results provide evidence of the paradox as a result of country of origin effect and country of management effect on the adoption of HRM practices over time.Research limitations/implicationsIt is problematic to conclude absolutely regarding the convergence or divergence of HRM practices. This is due to HRM practices being in a constant state of flux between global integration and local adaptation during the transfer process.Originality/valueThis is the first empirical study to examine the impacts of country of origin effect and country of management effect on the HRM transfers from emerging multinationals in the advanced economy from a diachronic perspective.

Made in Italy e country of origin effect

Con la crescente importanza delle strategie di internazionalizzazione delle imprese, e anche aumentata negli ultimi anni l’attenzione degli studiosi di management e marketing al cosi detto of Origin La dialettica tra globalizzazione dei mercati e ruolo dei territori locali ha indotto le imprese a valutare il ruolo dell’immagine percepita del proprio Paese e, nei casi dove e conveniente, a fare leva su di essa. Molte imprese, infatti, dimostrano di saper ben costruire un branding mix tra aziendale e marca del Paese di per differenziare la propria offerta. Il paper, che nasce dalla relazione introduttiva del Convegno Annuale del 2012 della Societa Italiana Marketing tenutosi presso l’Universita del Sannio, esamina l’impatto globale del Made in Italy ponendolo in relazione con gli studi sul Country of Origin Effect. Particolare evidenza in tale ambito e data ai risultati di un progetto di ricerca nato in seno alla Societa Italiana Marketing sul tema International Marketing and the Country of Origin effect. The Global Impact of ‘Made in Italy’, che ha visto coinvolti dodici gruppi di studio di ventuno atenei italiani con il coordinamento degli autori di questo saggio, con un preciso intento: colmare un vuoto nella letteratura internazionale in merito all’effetto che puo avere la considerazione del paese di origine nelle scelte di acquisto dei prodotti made in Italy da parte dei consumatori dei paesi emergenti. Il paper si conclude con l’evidenziazione delle implicazioni per il management e per il Soggetto pubblico.

Does country‐of‐origin matter to Generation Y?

PurposeThis study aims to examine how members of American Generation Y cohort feel about the USA and the USA's major trading partners. In addition, the study's purpose is to find out whether product's country‐of‐origin (COO) plays a role when members of Generation Y evaluate products.Design/methodology/approachUndergraduate university students are used as sample in this study. Experiment with 18 conditions is utilized to collect that data. Linear regression is used to test the hypothesis.FindingsResults show that animosity toward the country negatively influences COO image and that person's level of cosmopolitanism and ethnocentrism contribute to person's perception of (in)equality when evaluating COO images. Findings also indicate COO significantly influences product judgment and this relationship is moderated by quality of information about the product (positive, negative, or lack of information) and involvement with the product (involved or not involved).Originality/valueResults from this study show that, in the context of Generation Y, country image still matters and should be considered when developing a product or promotion strategy. Although country image matters, its effect on product judgment has to be examined in conjunction with factors like quality of information about the product and involvement with the product. As such, examining COO effect on its own might be misleading and not paint a completely accurate picture of antecedents to product judgment.

A Study on the Global Management Strategy for Product Quality Assurance Based on Brand Power and Country of Origin Effect

A Study on the Global Management Strategy for Product Quality Assurance Based on Brand Power and Country of Origin Effect

International brand strategy and mode of entry in the services sector: lessons from the financial crisis

A financial crisis can have severe implications for the long-term growth of financial institutions. We show that there are brand and mode of entry strategies that can help banks to survive under such difficult conditions. Research of country-of-origin (COO) effects is often very general and focused on tangible goods. Here we focus on how COO effects triggered by country-specific shocks impact the financial services sector during a financial crisis. We also investigate specific strategies that can help financial services organizations survive and grow. In particular, this study investigates how financial services organizations amplify or mitigate COO effects during a financial crisis in cases where country-specific shocks play a role. We show that brand strategy and mode of entry affect consumer evaluations of foreign banks. Two experiments were conducted among Dutch, German, Belgian, Swiss, Greek and American banking customers in the Dutch market. The use of a neutral brand name is generally preferable to using a country-related brand name. Greenfield investment can have a positive effect on bank performance compared to acquiring a local bank, especially when the country-of-origin image is more positive. Interestingly, the loss from a negative macroeconomic shock is limited for the greenfield strategy.

Tüketici Entrosentrizmi ve Menşe Ülke Etkisi Ekseninde Satın Alma Kararlarındaki Rolü: CETSCALE Ölçeği İle Bir Uygulama

This study aims to define the concept of consumer and of origin that is proposed effects buying behaviors and defines the relationship between these two concepts. According to data obtained from literature; there are some differences in the local and foreign buying behaviors of consumers that have different ethnocentric levels. So it has been suggested that consumers that have a high ethnocentric level will prefer domestic-origin goods. In this study, in Iyas Park, the unique shopping center of Isparta, a survey was conducted with 148 interviewers, by using Cetscale (Consumer Ethnocentrism Tendencies Scale) to define the ethnocentrizm tendencies. Some various levels have been used as regard to ethnocentric tendencies, and to provide ease of analysis and to make the findings more meaningful. It has been examined that whether there are statistical differences between demographic and social features of consumers that have different ethnocentric tendency levels. And it has been also examined that whether there is a statistical difference on various ethnocentric tendency level of consumer's attitude and behavior, regards to origin of country effect. for this purpose, in accordance with the hypothesis, reliability and Chi-square independence (crosstabs) tests have been done in SPSS 17.0 programme. At the end of the analysis it has been counted that 41,9 % of the consumers has a middle level and 36,5% of the consumers has a low level ethnocentrizm tendency. As different from the literature, in the demographic variants, significant differences have found only between the education levels of consumers’ and ethnocentrism levels and between the ethnic origin existences and ethnocentrism levels in statistical term. In addition, statistically significant differences are determined between the levels of ethnocentrism and the country of origin effect which measures proposals.

ATTITUDES OF LITHUANIAN CONSUMERS TOWARDS THE COUNTRY OF ORIGIN OF WINE

Abstract. The purpose of the study was to evaluate the attitudes of Lithuanian consumers towards the country of origin (COO) of wine. The main factors that influence the effect of COO and the mechanism of its formation were identified. The effects of social stereotypes, described by a Stereotype Content Model, on consumers’ attitudes are also analyzed, identifying the competence and warmth of the COO as important antecedents of consumers’ attitudes. The region of the origin of wine (appellation, protected designation of origin – PDO) have been identified as another important place-of-origin cue determining the consumer’s choice. A quantitative empirical research method – online survey – was used for the purpose of the study. The results have revealed that there are three types of wine consumers’ involvement: cognitive involvement, emotional product involvement, and emotional situational involvement, and that the importance of wine’s COO and region of origin (appellation, PDO) for consumers differs depending on the type and level of a consumer’s involvement. The existence of a statistically significant correlation among consumers’ attitude towards the COO of wine and the country’s competence and warmth has been proven, together with a possible relation between the type of a consumer’s involvement (cognitive, emotional situational or emotional product involvement) and the influence of COO competence and warmth on consumers’ attitude towards a wine. The research has also revealed an important positive relationship among consumer identification with the COO of wine, evaluation of COO competence, and the warmth and consumer attitude towards the COO of wine.Key words: country of origin of wine, consumers’ attitude, consumers’ involvement, stereotype content modelstify;">

Activation of country stereotypes: automaticity, consonance, and impact

Country-of-origin (COO) research typically regards COO cue usage as a conscious and controlled process dependent on consumers’ intention to use COO information. However, emerging evidence indicates that country stereotypes can affect consumers’ brand evaluations regardless of intention. In three complementary experiments, this study investigates how the mere presence of country cues can trigger different kinds of country stereotypes (functional vs. emotional) which subsequently automatically influence consumers’ cognitive and affective brand evaluations as well as brand-related behavior. Findings confirm the automatic influence of country stereotypes and suggest that brand evaluations and brand-related behavior are enhanced when the underlying country stereotype matches the advertising execution format. On the other hand, mismatches can result in adverse effects. A follow-up study further reveals that cognitive and affective brand evaluations mediate COO effects on brand-related behavior. Theoretical and managerial implications of the findings are considered and future research directions identified.

Estereótipo negativo do país de origem e intenções e percepções do consumidor: o efeito moderador das ações de marketing

This paper aims to identify and evaluate marketing actions that moderate the effects generated by the negative country of origin stereotype on the evaluation of products. We analyze the roles of the celebrity endorsement and the positive retailer image in the relationship between negative country of origin stereotype, quality perception, purchase intent and willingness to pay. The methodology used is a quasi-experiment, as a perfume demo product. We found that marketing actions can play a role in mitigating the negative effects generated by the country of origin stereotype of a particular product. Key words: country of origin effect, consumer, marketing.

Quantifying nation equity with sales data: A structural approach

Nation equity refers to a product's equity that is associated with its country of origin (COO). Generalized COO effects have previously been studied through experiments and surveys and measured by quality perception, product attitude, and purchase intention. We propose a structural equilibrium approach to assessing the additional market power COO offers, monetizing nation equity with product sales data, and computing the price premiums and discounts associated with nation equity. We apply this approach to China's personal computer market between 1995 and 2008 and find that COO does generate additional market power and affects firm markups. We find nation equity to be pervasive, significant, and multidimensional, and it evolves over time, but there is no simple correspondence between market share and nation equity. Large market shares do not necessarily mean positive nation equity and price premiums, negative nation equity and price discounts can evolve into positive nation equity and price premiums, and vice versa. We discuss the implications of our modeling approach and our findings for emerging markets in general, and for China in particular.

A Conceptual Study on the Country of Origin Effect on Consumer Purchase Intention

Country of origin has become a significant phenomenon in consumer behaviour studies. Hence, increasing the knowledge of customers about products makes research about factors that influence their decisions more worthwhile than before. The purpose of this paper is to review the country of origin literature and mention different variables that influence consumer purchase intention, and also highlight the relationship of variables and customer purchase intention based on the previous literature. This research is valuable for promoting the consumer behaviour literature and providing support for relationships between the variables and purchase intention. In addition, it also helps marketers who work on related topics according to the country of origin perspective. The existing literature shows that all of the variables mentioned in this paper have a relationship with customer purchase intention from the country of origin point of view. However, there are many factors for which it has not been determined whether they influence consumer purchase intention related to the country of origin issue and there is wide scope for future research and development.

Innovation and performance at foreign subsidiaries: The country of origin effect

The positive effects of innovation on performance have been widely discussed in the literature. However, the condition under which innovation contributes to performance has received much less atten...

Quantifying Nation Equity with Sales Data: A Structural Approach

Nation equity refers to a product's equity that is associated with its country of origin (COO). Generalized COO effects have previously been studied through experiments and surveys and measured by quality perception, product attitude, and purchase intention. We propose a structural equilibrium approach to assessing the additional market power COO offers, monetizing nation equity with product sales data, and computing the price premiums and discounts associated with nation equity. We apply this approach to China's personal computer market between 1995 and 2008 and find that COO does generate additional market power and affects firm markups. We find nation equity to be pervasive, significant, and multidimensional, and it evolves over time, but there is no simple correspondence between market share and nation equity. Large market shares do not necessarily mean positive nation equity and price premiums, negative nation equity and price discounts can evolve into positive nation equity and price premiums, and vice versa. We discuss the implications of our modeling approach and our findings for emerging markets in general, and for China in particular.

Editorial to Asian Consumer and Family Economics Association (ACFEA) 2011

The articles for this Special Issue of the Journal of Family and Economic Issues were solicited from presenters at the Ninth Biennial Meeting of the Asian Consumer and Family Economics Association (ACFEA), held in Seoul, S. Korea in June of 2011. ACFEA, launched in 1995, brings together scholars who share a common interest in the development and dissemination of research on family and consumer issues, with an Asian flavor. Inspiration for the creation of ACFEA came from a session at an annual meeting of the 1994 American Council of Consumer Interests (ACCI) that focused on the diverse issues facing Asian families and consumers. Out of this session came a suggestion to convene a meeting in Asia dedicated to those issues, and thanks largely to the efforts of Malaysian scholars, this took place in Shah Alam, Malaysia in 1995. ACFEA has no official relationship to ACCI however. Following cooperative protocols set up at the 1995 ACFEA Meeting, the Association has met every 2 years since, each time at a location within the Northern Pacific Rim. Countries that have hosted the meetings include Malaysia, Mainland China, Taiwan, S. Korea, and the USA. There are usually no specific themes to the meetings, except for the notion that there will be an Asian content and/or author involved in the presentations. The ACFEA meetings have had a strong record of fostering cooperation among scholars from different countries and institutions who are interested in Asian family and consumer issues. This is reflected in the affiliations of the contributors to this issue, and to the cross-cultural nature of some of the articles. The ACFEA meetings have also bolstered interest in family and consumer issues within the countries represented by attendees. This is especially the case in Malaysia, where the Malaysian Association of Family and Consumer Economics (which has its own journal) was an offshoot of the inaugural ACFEA meeting. In soliciting articles for the Special Issue, we, the guest editors, tried to include presentations that addressed issues of current concern that also complemented each other in some way. We also tried to include consumer issues that are currently prevalent in Asia. Many Asian countries are front runners in the adoption of Information Technology and two articles in this issue address the issue of technology adoption (Jun and Yeo; Yieh, Chen and Wei). The topic of green consumption has been discussed widely in Asia, both by academics and policy makers. This concern is reflected in the topics addressed in the article by Kim et al. China is an Asian market which is experiencing a fast growth both in terms of quantity and quality. The article by Sharpe, Yao and Lao looks at credit card adoption in China and identifies its correlates. The country of origin effect is found strongly in Asian countries, and the article by Chern and Lin deals with its impact in consumer valuation. Finally, the article by Kim et al. deals with an Asian consumer issue from a different angle, by addressing the experience of Asian immigrants in the U.S. A highlight of the ACFEA meetings is the Country Reports session. This usually is the concluding session, wherein delegates from each country give an update on research and consumer issues facing their country. In this Special Issue we have included as a research note the very informative Country Report of the Malaysian delegate J.-Y. Rha Seoul National University, Seoul, Korea e-mail: jrha@snu.ac.kr

How Need for Cognition Moderates the Influence of Country of Origin and Price on Consumer Perception of Quality

In prior studies of the effects of country of origin (COO) and price on consumers' perceptions of quality, the role of need for cognition (NFC) has rarely been considered either empirically or theoretically. In this study a 2 (COO) × 2 (price) × 2 (NFC) design was used to further clarify the effects of COO and price. We found that NFC moderated the effects of COO and price cues on perceived quality; NFC negatively influenced consumers' perceptions of quality; and the interaction of COO image and price on perceived quality was not significant, but consumers' NFC moderated the relationship significantly.

Country-of-origin and private-label merchandise

This research examines the impact of country-of-origin (COO) perceptions on store brands and store ownership. Online grocery shoppers were subjected to a series of manipulations involving: (a) product type – national brand or store brand; (b) product source – including local or foreign, and culturally close or culturally distant; and (c) store ownership. We find that store brands benefit from being locally sourced, and benefit further if the store is also locally owned, in terms of risk, quality, and value perceptions. If a brand is to be foreign sourced, it is preferable for it to come from a country recognised as culturally close to the seller country. Being the first study to look at the impact of COO effects on store brands, our paper offers insights about how management should take advantage of local sourcing and ownership, or put in place marketing efforts to counter negative COO effects.

Are Consumers Really Willing to Pay More for a Favorable Country Image? A Study of Country-of-Origin Effects on Willingness to Pay

Price-related consequences of the country-of-origin (COO) cue have received limited attention in extant literature. In this study, the authors draw from equity theory and cue utilization theory and investigate (1) whether a brand's COO affects a consumer's willingness to pay and (2) the extent to which the consumer's familiarity with the brand moderates this relationship. The results of three complementary experimental studies reveal that COO indeed has a positive impact on willingness to pay. Furthermore, the authors find a negative moderating influence of brand familiarity on the COO effect in a high-involvement setting but not in a low-involvement setting. The authors discuss the theoretical and managerial implications of the findings, and they identify directions for further research.

Um ensaio sobre os construtos imagem de país e efeito país de origem

In the last years, studies has showed the pre-established ideas and stereotyped from individuals on countries can interfere in their attitudes concerning foreign products, phenomena denominated by some authors as “the country origin effect”. This article is a theory essay that aims to present the principals concepts about the country image construct and the country of origin effect, as well as the mechanisms with the capacity of measuring the country image and its influence on the consumers’ attitudes. Considering the literature revision, it was possible to see that there is non consensus related to the definition of the construct “country image”, as well as the best way to measure it, in order to indentify how can influence the purchase intention, attitudes and behavior of the consumers. The attitude theory seems to be the best way to measure a country image, because it can explain how countries are seem in the consumer minds, what kind of beliefs they have, including stereotypes and schemes, as well as emotions. Future studies should focus on the specification of each markets and groups of products. It´s also necessary that, future students take to account the level of involvement of each consumer on determined product and what kind of feelings he has about a country.