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Does image of country‐of‐origin matter to brand equity?

Norjaya Mohd Yasin (School of Business Management, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, Selangor, Malaysia)
Mohd Nasser Noor (Marketing Section, School of Management, Universiti Sains Malaysia, Penang, Malaysia)
Osman Mohamad (Graduate School, Universiti Sains Malaysia, Penang, Malaysia)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 6 March 2007

28568

Abstract

Purpose

The purpose of this study is to explore the effects of brand's country‐of‐origin image on the formation of brand equity.

Design/methodology/approach

To accomplish this, the brand equity of household electrical appliances, particularly televisions, refrigerators and air‐conditioners, in the Malaysian market is examined. A conceptual framework in which brand's country‐of‐origin image is postulated to influence the dimensions of brand equity, which is made up of brand loyalty, brand awareness, perceived quality, and brand associations. These dimensions, in turn, influence brand equity. Data were collected from consumers of household electrical appliances using probability sampling.

Findings

Factor analysis conducted on brand equity dimensions, produced three factors namely, brand distinctiveness, brand loyalty, and brand awareness/associations. The regression analysis results show that brand's country‐of‐origin image positively and significantly influences dimensions of brand equity. The results also show that brand's country‐of‐origin image influences brand equity, either directly or indirectly, through the mediating effects of brand distinctiveness, brand loyalty and brand awareness/associations.

Research limitations/implications

The study investigates brand equity of durable goods of three product categories namely television, refrigerator and air‐conditioner. It only considers brand's country‐of‐origin image as one of the sources of brand equity. The conceptual framework does not take into consideration factors that moderate the influence of antecedent of brand equity on brand equity.

Practical implications

Producers of household electrical appliances should put greater emphasis in creating brand loyalty for their products. The good image of brand's original country should be highlighted in order to enhance the overall image of the brand. Favorable country image can also be capitalized in brand‐naming strategy.

Originality/value

This is paper important in identifying the sources of brand equity.

Keywords

Citation

Mohd Yasin, N., Nasser Noor, M. and Mohamad, O. (2007), "Does image of country‐of‐origin matter to brand equity?", Journal of Product & Brand Management, Vol. 16 No. 1, pp. 38-48. https://doi.org/10.1108/10610420710731142

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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