Product-country Image Research Articles

The Country-of-Origin Effect for Chocolate made from Ecuadorian Cocoa: An Empirical Analysis of Consumer Perceptions

The indication of country of origin on food products is of growing importance and offers potentials for product differentiation to, among others, cacao producers from countries in the developing and transition stages. In this study the importance of country-of-origin (CoO) effects on the quality perception of chocolate among German consumers is examined using the example of Ecuadorian cacao. The quality perception of chocolate is the result of a complex perceptual process influenced by extrinsic and intrinsic product attributes, country images, socio-demographic and psychographic characteristics of the consumer and situational factors such as place of purchase. Based on this conceptual framework, an online survey has been conducted with 205 German chocolate consumers. ols regression analysis revealed a strong CoO-effect on the purchase of Ecuadorian chocolate. These findings have implications for management.

Customer Perceived Brand Equity in Measuring Consumption Preference towards Local and Imported Products: A serial Studies on Urban and Suburban Level of Indonesia Society in Greater Jakarta

This study generally aims to analyze how the preferences of Indonesian as a customer in consuming local and imported products. The specific purpose of this study is to confirm measurement tools of the customer perceived brand equity, which are product country image, culture, marketing mix, and product quality. The result of this study indicates that Indonesian consider much about the marketing mix and product quality, while not so much considering culture. The product country image on the other hand gives the opposite effect. It is significantly related but has negative impact to the customer preference. This study is expected to provide insight on factors that contribute to form customer preference, consumption, and behavior in consuming local and imported product. It is expected that this study can bring impact in increasing local product competitiveness so that local and imported product could compete equally. Keywords: Customer Perceived Brand Equity (CPBE), consumption preference, culture, product coun-try image, product quality

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.

From ‘made-in' to ‘product-country images' and ‘place branding': a journey through research time and space

The article first reviews the title field, by tracing its evolution from the original notion of made-in of the 1960s to the broader product-place associations of the 1990s and today’s branding, and then, based on studies by the authors and their associates, examines key findings that summarize the area’s current state of knowledge and future challenges. This includes the use of place cues in advertising, the content of place images and their role in foreign direct investment, cross-cultural variations and the animosity construct, and models of product and tourism effects. A summary note highlights some of the key problems facing the practice of place branding today and the nearly limitless opportunities for future research in this field. L’articolo propone una rassegna della letteratura sull’effetto country of origin, tracciandone l’evoluzione dalla nozione originaria di made-in sviluppata negli anni Sessanta, al piu ampio concetto di product-place associations degli anni Novanta fino ai piu recenti studi sul branding. A partire dai contributi analizzati vengono evidenziate le principali risultanze, l’attuale stato dell’arte e le prospettive future di questo campo di studi. In particolare, le tematiche oggetto di approfondimento includono l’utilizzo dell’immagine-Paese nelle strategie di advertising, le modalita di operazionalizzazione del costrutto image e il suo ruolo nelle scelte di investimenti diretti esteri, l’impatto delle differenze culturali e dell’animosita e i principali modelli che analizzano l’influenza dell’immagine territoriale come leva per la promozione turistica e dei prodotti nazionali. Una nota conclusiva sintetizza le principali criticita connesse all’applicazione pratica delle strategie di place branding e le opportunita di ricerca quasi illimitate offerte in prospettiva futura da questo campo di indagine.

The Effects of Product Involvement and Country Image on the Consumer's Attitudes towards the Brand - With Particular Reference to Import Beef Brands -

The Effects of Product Involvement and Country Image on the Consumer's Attitudes towards the Brand - With Particular Reference to Import Beef Brands -

Reducing the Country-of-Origin Effects: The Presentation of Products Information Activates the Analytic Process

Previous research on country-of-origin effects has examined the composition of product-country images, and how consumers use country of origin as a cue for determining product quality. While considerable research in marketing has shown that country of origin has a great impact on product evaluations and sometimes it would bias consumer’ product beliefs, less work has focused on how products, especially for those coming from countries with a perceived lower quality, can counteract these effects. Our study addresses this issue and provides managers with a proactive, tangible way of reducing the COO effects. COO can be viewed as a stereotype, which consumers use as a shortcut when evaluating products. Theories about stereotype argue that humans tend to reason following two processing styles: heuristic system that is quick, intuitive and effortless and analytic process which is slow, analytical, and deliberate that occasionally corrects the output of automatic process. Researches suggest that automatic process results in stereotypic thoughts being more accessible in memory. Thus the activation of the analytic process is a possible means to reduce COO effects. Yet to date, how to activate the analytic process to counter the COO effects has been neglected in marketing. We propose that the specific kinds of presentation of products information, which may cause information disfluency, can activate the analytic process in order to reduce the COO effects through reducing the intuitive confidence. Note that not all kinds of presentation of product information can reduce the COO effects; even those which bring a large amount of information disfluency to consumers. As information disfluency increases, the cognitive loads, which hinder the activation of analytic process, also increase. To examine the hypotheses, three studies were designed. In study2 and 3, 2 (country of origin: high and low) × 2 (presentation of product information: easy and difficult) between - subject design were adopted. A total of 308 undergraduate students participated in the experiments. CRT test was used to test the activation of analytic process. Trough ANOVA analysis, the first study showed the activation of analytic process contributed in reducing COO. In study 2 and 3, the first and the second experiments suggested that certain presentation of products information reduced COO effects through activating the analytic process. In contrast to past studies, the third experiment suggested that not all kinds of presentation of products information had such reducing effect. Moreover, if the presentation was too complicated, it could not reduce the COO effects for the large amount of cognitive load. The results showed that COO effects can be reduced by the activation of analytic process. Further, our research showed how the presentation of product information can help reduce the COO effects. In addition, although prior research has suggested that there is positive connection between the information disfluency and the activation of analytic process, our research is the first to show that this positive connection dose not always exist. The activation of analytic process could be weakened when there is too much information disfluency.

Studying place image: an interdisciplinary and holistic approach

This study uses an interdisciplinary view informed by two related streams of research that have evolved independently of each other, “Tourism Destination Image” and “Product Country Image”, to research the place image construct. A theoretical model is applied to simultaneously measure image dimensions from both streams in order to better understand relationships between them. Australia, a country that has a strong “general country” and “tourism destination” image but a weaker “product” image, is used as the study target. We use comparative cross-national data from culturally similar (Canada) and dissimilar (South Korea) countries and a mixed method analysis culminating in a LISREL-tested, two-country, three-dimensional structural equation model.

Understanding “Made in China”

This study uses an experiment to examine the effects of valenced news frames, in terms of risks and benefits, on participants perceptions’ of and attitudes toward the product-country image (PCI) of “Made in China.” Findings suggest that the risks frame elicits negative perception and attitude concerning “Made in China,” whereas the benefits frame induces positive evaluations. Participants perceive the product aspect of “Made in China” more positively than the country aspect. Personal relevance, shopping experience, and shopping habit jointly affect participants’ perceptions and attitudes as covariates.

“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.

A Study on the Effects of Product Country Image, Corporate Image on Brand Equity and Purchase Intention of Chinese Youth -Focused on the Cell Phones of Three Countries' Brands-

A Study on the Effects of Product Country Image, Corporate Image on Brand Equity and Purchase Intention of Chinese Youth -Focused on the Cell Phones of Three Countries' Brands-

Matching consumers' country and product image perceptions: an Australian perspective

PurposeCountry‐of‐origin (COO) effects are concerned with buyers' opinions regarding the relative qualities of goods and services produced in various countries. It is the aim of this study to test a framework for investigating the match/mismatch between consumers' product category and country image perceptions. Specifically, the paper seeks to examine whether consumers perceive all products emanating from a particular country favourably simply because consumers associate favourable attributes with that country or whether this effect is specific to particular product categories.Design/methodology/approachThe study employed a structured survey administered through mall intercepts. Data were collected from a sample of 188 Australian consumers. While Australian consumers were the focal country of study, countries selected for evaluation included Japan, Korea, the USA, Canada, China and New Zealand. The products selected included beer, automobiles, watches, leather shoes and stereos.FindingsThe findings suggest that when a strong favourable match exists between country and product image then COO will positively influence product evaluation and willingness to buy. Conversely, when an unfavourable mismatch is evident COO would negatively influence consumers' product evaluations and willingness to buy.Originality/valueGiven that most products originating in foreign countries are subject to country stereotyping or image effects, it is important for marketers and retailers to understand and manage the potential impact of COO effects. This study tests a framework that can be applied by marketers to determine the effect of product and country matches in relevant domestic or international markets.

When Fit Matters: Leveraging Destination and Event Image Congruence

This article develops a framework for conceptualizing and managing destination and event image congruence. Building on the foundations of Roth and Romeo's (1992) product–country image fit matrix, a framework for categorizing the interactions between destination and event image is presented that can be applied to leverage positive, relevant associations and rebalance less positive associations of both types of images. The usefulness of the matrix is shown through an in-depth case study of the image-rebalancing program of the FIFA 2006 host country Germany. This case and others demonstrate the suitability of the framework for managing, and more importantly leveraging, image congruence in this context. Implications for managers and researchers derived from applying the framework are also discussed.

The Mythological Aspects of Country-of-Origin: The Case of the Swedishness of Swedish Fashion

The Mythological Aspects of Country-of-Origin: The Case of the Swedishness of Swedish Fashion

An Integrative Model of Place Image

To advance place image theory, this study combines elements from two areas that have explored place image more than any others: tourism destination image (TDI) and product-country image (PCI). Key constructs from each are measured simultaneously in an Integrative Model of Place Image. The model test uses consumer survey data from South Korea to compare image measures of the United States and Japan using structural equation modeling. The results reveal that cognitive country image has greater influence on product factors than on destination factors, while affective country image has greater influence directly on receptivity than indirectly on beliefs. In addition, consumer beliefs exhibit a strong crossover effect between product beliefs and destination receptivity. Newly tested relationships point to a number of directions for future research in place image and branding, and provide empirical evidence of the need for place marketers to move toward greater integration between product- and tourism-oriented place image campaigns.

How Consumer Ethnocentrism and Animosity Impair the Economic Recovery of Emerging Markets

ABSTRACT Many developed nations have reportedly turned to protectionism to speed up recovery from the recent global financial tsunami. Emerging economies that rely on exports and tourism have been particularly hard hit by these barriers. This study analyzes a conceptual framework that captures the effects of product image, country image, ethnocentrism, and animosity on consumers’ attitudes for imports and overseas travel. The results offer a fresh perspective, beyond that which has been explained by literature on product evaluation and country-of-origin. The findings imply that an export-dependent nation will need a linkage strategy to defend against protectionism. Strategic implications are discussed.

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.

Young Australian consumers and the country-of-origin effect: Investigation of the moderating roles of product involvement and perceived product-origin congruency

The effect that consumers’ country-related images have on their purchase decisions is known as the country-of-origin effect. Marketing researchers have thoroughly investigated COO effects in a range of contexts since the mid-1960s. However, since the 1980s it has been thought (e.g., Levitt, 1983; Ohmae, 1995) that consumer needs and wants are converging and that nation states are artificial and superficial entities of little value as quality indicators. The argument is that since the world is changing and because young consumers are used to seeing products from a variety of countries they do not have the country biases that the COO effect stipulates. Indeed, a recent study ( Wong et al., 2008) on young Chinese consumers and the COO effect seems to confirm that young consumers no longer are influenced by the COO effect. The aim of this research is to investigate if and how the relationship between young Australian consumers’ product-country image and their product evaluations is influenced by two contextual variables: their product involvement and their perceived product-origin congruency. The research reports the results and relevant implications for research and practice.

Assessing the cross-national invariance of formative measures: Guidelines for international business researchers

The importance of establishing equivalence in measurement prior to conducting substantive cross-country comparisons has long been emphasized in international business research. However, all approaches currently available for the investigation of measurement equivalence or invariance (ME/I) assume that the focal measures are reflective in nature. In our paper we offer guidelines for the assessment of ME/I when the focal construct is measured with formative indicators. We first identify distinct types of ME/I that are conceptually consistent with the nature of formative measurement models. We then describe a step-by-step procedure that can be employed to test for these types of ME/I in a comparative context. Lastly, we illustrate the application of the proposed procedure with data from a three-country survey on consumers’ product-country image perceptions.

Are Young Consumers Still Susceptible to the Country-of-Origin Effect?

The effect that consumers’ country-related images have on their purchase decisions is known as the country of origin effect. Marketing researchers have thoroughly investigated Country-of-Origin (COO) effects in a range of contexts since the mid-1960s. However, since the 1980s it has been thought (e.g., Levitt 1983; Ohmae 1995) that consumer needs and wants are converging and that nation-states are artificial and superficial entities of little value to consumers indicators of product quality. The argument is that since young consumers are used to seeing products from a variety of countries they do not have the country biases that the COO effect stipulates (Usunier 2006). A recent study (Wong et al. 2008) on young Chinese consumers and the COO effect appears to confirm that young consumers are no longer influenced by the COO effect. The aim of this research was to conceptually investigate how the relationship between young consumers’ product-country image and their product evaluations is influenced by two contextual variables: their product involvement and their perceived product-origin congruency.

The Impact of Product-Country Image and Marketing Efforts on Retailer-Perceived Brand Equity: An Empirical Analysis

Although both product-country images (PCI) and firm assets such as brand equity have been extensively studied in separate contexts, we know very little about the combined performance effects of these two important constructs in international research. Extant research has investigated brand equity primarily from a consumer perspective, but rarely from the point of view of a retailer. Retailers represent the ultimate participants in the value chain selling the product to consumers. They have the ability to significantly influence consumers’ evaluations and purchase decisions. Based upon existing literature documenting the contributions of PCI and marketing activities on brand equity, this study extends these findings by investigating their effects on retailer-perceived brand equity (RPBE) and ultimate brand profitability performance. Results indicate that both marketing activities and PCI affect retailer-perceived brand equity with PCI also strongly and positively influencing brand profitability performance.