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1 – 10 of 21The purpose of this paper is to examine the symbolic representations of non-users compared to the life experiences of users related to a luxury brand. In particular, the study…
Abstract
Purpose
The purpose of this paper is to examine the symbolic representations of non-users compared to the life experiences of users related to a luxury brand. In particular, the study examines whether product design mediates the relationship between antecedent factors of country-of-origin effect and product experience, and it also investigates the moderating effects of reference groups (non-users vs users) on the relationship between antecedent factors of country-of-origin effect and product design related to a luxury brand, namely, the Mercedes-Benz C-Class or E-Series.
Design/methodology/approach
A sample of convenience of 272 persons classified as non-users and users is investigated. An online questionnaire was used and 28 statements are included in the analysis based on a seven-point Likert scale.
Findings
The study reveals that the country-of-origin effect for the model of non-users and users has a very good fit with current data and is statistically significant. It also reveals that all relationships are significant except for price consciousness to product design and for brand familiarity to price consciousness. There is also partial mediation of product design between antecedent factors and product experience. Furthermore, the moderating effect of reference groups appears to play an important role, as it impacts the relationship between antecedent factors of the country-of-origin effect and product design/product experience.
Originality/value
This study indicates that the non-users’ group based on the hypothetical purchases of a luxury brand with a strong country image has a different country-of-origin effect to the users’ group of the same luxury brand. Moreover, the study concludes that there are statistically significant differences between the non-users’ group versus users’ group of a luxury brand (Mercedes-Benz), and these differences are concerned with the constructs of brand familiarity, brand commitment, product design and product experience. Finally, the study reveals that “price consciousness” is not relevant for luxury brands. Managerial implications, limitations of the study and future research directions are discussed.
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Byoungho Ellie Jin, Heesoon Yang and Naeun Lauren Kim
Built on the prototype and cue theories, the purpose of this study is to understand how a country's prototypical brand, a corporate brand that most consumers associate with a…
Abstract
Purpose
Built on the prototype and cue theories, the purpose of this study is to understand how a country's prototypical brand, a corporate brand that most consumers associate with a country (e.g. Samsung), contributes to forming two dimensions of country image – overall country image (i.e. macro country image) and product-specific country image (i.e. micro country image) – and how country image impacts the product quality evaluations of Korean cosmetics, along with the moderating effect of national culture.
Design/methodology/approach
Data were collected from 491 US and Chinese consumers ages 20 and older and analyzed using structural equation modeling.
Findings
The findings confirmed the positive influence of prototypical brand image on macro and micro country image. Macro country image also had a positive effect on micro country image. However, only micro country image yielded a positive influence on the quality evaluations of Korean cosmetics. Analyses of the moderating effect of national culture showed that the positive influence of prototypical brand image on macro and micro country image was found to be stronger in China than in the US.
Originality/value
These findings provided new theoretical perspectives for country image studies, and practical insights for companies and governments, especially those in countries whose country image is less distinctive, to help develop effective marketing strategies.
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Examines the cross‐national applicability of a model of the effects of country of origin and brand name on consumers’ evaluations of a product. Specifically, investigates the…
Abstract
Examines the cross‐national applicability of a model of the effects of country of origin and brand name on consumers’ evaluations of a product. Specifically, investigates the structures of country‐of‐origin and brand effects on the evaluation of a new automobile by German and French car owners. Uses a multi‐group structural equation modelling approach to assess the invariance of the proposed model across countries. Reports findings indicating both the factor structure and the structural model relationships are invariant, thus providing support for the hypothesis of the model’s cross‐national generalizability. Also notes that both brand name and country of origin turned out to have a significant impact on consumers’ evaluations of the automobile. Discusses the implications of the study for international manufacturing decisions and new product development.
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John Knight, David Holdsworth and Damien Mather
The purpose of this paper is to understand the elements of country image that influence gatekeepers of the European food distribution sector when making industrial purchasing…
Abstract
Purpose
The purpose of this paper is to understand the elements of country image that influence gatekeepers of the European food distribution sector when making industrial purchasing decisions regarding imported food products.
Design/methodology/approach
In‐depth interviews were conducted with key informants of seventeen food distribution companies and industry organisations in five European countries to determine the factors that they consider important when deciding from which countries to source food products.
Findings
Confidence and trust in production systems, the integrity of regulatory systems, and the reliability of suppliers appear to be the major determinants of product‐country image as viewed by gatekeepers of the food distribution channel.
Practical implications
These specific factors relating to confidence, trust, integrity and reputation appear to over‐ride more general perceptions of country image based on scenic or environmental considerations.
Originality/value
Provides useful information for public policy makers and companies in food exporting countries.
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Amal R. Karunaratna and Pascale G. Quester
The purpose of this paper is to investigate how need for cognition (NFC), a personality trait, influenced the way consumers used information about product components in forming…
Abstract
Purpose
The purpose of this paper is to investigate how need for cognition (NFC), a personality trait, influenced the way consumers used information about product components in forming overall evaluations of motor vehicles.
Design/methodology/approach
The study used interviews from a convenience sample of 445 visitors to a motor vehicle show over a three‐day period using a choice‐based conjoint analysis study design.
Findings
The NFC scale used in this study focused on abstract thinking. Results showed that consumers' responses to components from different countries changed their overall purchase intentions, and nationalism appeared to play a strong role in consumer attitudes to components. Consumers exhibiting high levels of NFC were more engaged in more complex assessment of the country of origin (COO) cue in their product evaluation than those who have less NFC.
Practical implications
Manufacturers sourcing components from low labour cost countries need to be cautious. Even trusted brands may be sullied by components sourced from countries with negative stereotypes.
Originality/value
Research on product component systems and the use of choice‐based conjoint analysis in this context are novel contributions to COO research.
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Israel D. Nebenzahl and Eugene D. Jaffe
States that few studies have attempted to measure the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products…
Abstract
States that few studies have attempted to measure the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products. Suggests a methodology for defining product value by consumers’ perception of brand and country image dimensions when sourced internationally. Brand‐country image profiles were factor analysed to provide dimensions of each brand‐country combination. Shows that consumer perception of product value changes, evidenced by brand‐country dimensions, as production is sourced internationally, and suggests a modified marketing strategy.
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Mikael Andéhn and Patrick L’Espoir Decosta
Recent research has shown that the country-of-origin (COO) effect – the influence on consumers’ attitudes and purchase behavior derived from a brand’s perceived association with a…
Abstract
Purpose
Recent research has shown that the country-of-origin (COO) effect – the influence on consumers’ attitudes and purchase behavior derived from a brand’s perceived association with a country – is inextricably linked to consumer perception. The purpose of this paper is to examine this shift by considering origin as a characteristic derived from perceived association and also by proposing that this association varies by degree, rather than simply acting as a binary attribute in its effect on consumer attitudes.
Design/methodology/approach
Data from a test series in which respondents (n=100) rated 38 brand-country pairs were put to split-half multi-group analysis tests to capture the moderating influence of association strength (AS) on several facets of country image (CI) simultaneously.
Findings
AS is a variable that exerts a moderating influence on how different dimensions of CI influence consumers’ evaluation of brands.
Research limitations/implications
The findings indicate that origin, as a characteristic, should be considered an association that is variable by degree and not as dichotomous. The implications of such a shift are broad, not only for the theoretical understanding of the COO effect but also for marketing and brand management practice. Accounting for AS allows for more accurate prediction of how consumers will react to COO.
Originality/value
The paper explicitly demonstrates that the strength of country-brand association moderates COO’s influence on brand equity. Such a relationship had previously only been theoretically implied but had not been empirically tested across multiple categories of products on multiple levels of CI.
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Kandapa Thanasuta, Thanyawee Patoomsuwan, Vanvisa Chaimahawong and Yingyot Chiaravutthi
The purpose of this paper is to quantify the value of brands and countries of origin in monetary units. The automobile industry in Thailand is chosen because of the variety of…
Abstract
Purpose
The purpose of this paper is to quantify the value of brands and countries of origin in monetary units. The automobile industry in Thailand is chosen because of the variety of brands and the intense competition within the industry. Both the pick up truck and passenger car market shares have been dominated by Japanese brands for decades, whilst the luxury market has been dominated by German brands.
Design/methodology/approach
The data are collected from an authors' survey carried out during the “Thailand International Motor Expo 2007”. A total of 244 models are chosen from 20 brands, and from 7 countries of origin. The hedonic price model is applied to ascertain the price premiums of these different brands, taking into account their countries of origin, since each automobile brand offers several models with distinguishably different features.
Findings
The results indicate that different brand names affect consumers' “Willingness to Pay,” in which Mercedes, BMW, and Audi brands are ranked the highest. Surprisingly, Subaru, Mitsubishi and Toyota are the only Japanese brands to have significant brand values. The findings also illustrate a direct relationship between market acceptance and the price premium for automobiles in the luxury car segment, however the same relationship does not hold true for the cars in economy car segment. It seems that Thai consumers put the highest value on cars from Germany, whilst cars from Japan and the USA possess approximately the same value. Korean and Malaysian cars, which focus on low‐prices as a means to obtain a competitive advantage, are as to be expected ranked last. An association was found between countries' GDP per capita and the price premium. Countries with a lower GDP per capita show lower price premiums and vise versa. The exception is Germany, which has a low GDP per capita yet has a higher price premium than the better ranked GDP countries such as the USA
Research limitations/implications
Though the German brands are ranked the highest, competition in the car industry is likely to be intense, since their premiums are not noticeably different. Additionally, there are implications regarding entry barriers for new automobile brands from the same or different countries. These entry barriers are considered to be quite high, as the brand premiums could represent more than 25 percent of the car prices, at least for the compact car segment. A strategy of discounted price penetration is therefore recommended for a brand which is new to the market, and which does not originate from a highly regarded country. For existing brands with below average values, a customer‐based approach is recommended in which those brands improve the attributes in order to create higher premiums.
Originality/value
In addition to confirming the relationship between the price premiums of brands and their countries of origin, this paper successfully provides valuations in monetary units and rankings accordingly. This research could be useful to both incumbents and new entrants, when designing their pricing strategies.
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Adamantios Diamantopoulos, Ilona Szőcs, Arnd Florack, Živa Kolbl and Martin Egger
Drawing on the stereotype content model (SCM), the authors investigate the stereotype content transfer (in terms of warmth and competence) from country to brand and the…
Abstract
Purpose
Drawing on the stereotype content model (SCM), the authors investigate the stereotype content transfer (in terms of warmth and competence) from country to brand and the simultaneous impact of these two stereotypes on consumer responses toward brands.
Design/methodology/approach
The authors test a structural equation model conceptualizing brand stereotypes as full mediators between country stereotypes and consumer outcomes. In addition, in a moderated mediation analysis, the authors investigate the role of brand typicality and utilitarianism/hedonism in potentially moderating the country to brand stereotype content transfer.
Findings
Country warmth and competence, respectively, impact brand warmth and competence, thus confirming the hypothesized stereotype content transfer. This transfer is found to be robust and not contingent on brands' perceived typicality of their country of origin. However, brands' utilitarian nature amplifies the positive impact of country competence on brand competence. Finally, brand stereotypes fully mediate the impact of country stereotypes on consumers' brand attitudes and behavioral intentions.
Originality/value
The authors provide the first empirical attempt that (1) explicitly differentiates between consumers' stereotypical perceptions of countries and stereotypical perceptions of brands from these countries, (2) empirically examines the transfer of stereotypical dimensions of different targets (i.e. country to brand), (3) explores boundary conditions for such transfer and (4) simultaneously considers the impact of both kinds of stereotypes on managerially relevant consumer outcomes.
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The purpose of this paper is to address the apparent controversy surrounding the relevance of country of origin (CO) and brand origin (BO) lines of research, with particular…
Abstract
Purpose
The purpose of this paper is to address the apparent controversy surrounding the relevance of country of origin (CO) and brand origin (BO) lines of research, with particular reference to an article authored by Magnusson, Westjohn, and Zdravkovic (MWZ) whose research findings assert that CO matters, irrespective of whether customers can actually recall origins of brands.
Design/methodology/approach
Drawing on the extant literature from academic and business publications, the paper offers evidence regarding the relative unimportance of origin‐related attributes in most purchasing situations. In this context, the paper examines the atheoretic nature of CO research combined with a general lack of realistic managerial relevance, consumers’ impoverished CO and BO knowledge base, and the challenges of using CO as a positioning tool in marketing strategy. Finally, the paper examines some critical research issues regarding MWZ's contribution.
Findings
Country of origin research is not as relevant in customer choice process as some scholars believe and is generally void of meaningful managerial guidelines.
Originality/value
This is a commentary about an International Marketing Review article.
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