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Article
Publication date: 1 June 1993

William R. Smith

Numerous studies have demonstrated negative US consumer biastowards products originating in foreign countries, especially developingcountries. Replicates and extends a study of…

Abstract

Numerous studies have demonstrated negative US consumer bias towards products originating in foreign countries, especially developing countries. Replicates and extends a study of origin bias in which products were identified as originating in regions rather than specific countries. Identical US‐made products were represented to subjects as being from Africa, Latin America, Asia, or Western Europe. Contrary to earlier findings, Asian‐labelled products were evaluated more favourably than those from other regions and older subjects rated these “non‐US” products more favourably than college‐age subjects. Discusses the potential for using regional labelling to overcome negative biases against developing country products.

Details

International Marketing Review, vol. 10 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 June 1998

Khalid I. Al‐Sulaiti and Michael J. Baker

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…

29947

Abstract

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.

Details

Marketing Intelligence & Planning, vol. 16 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 14 April 2014

Terry D. Alkire

Upon entering developed markets, emerging market multinational corporations (EMNCs) from China and India must compete with both host companies and other developed nation MNCs to…

1664

Abstract

Purpose

Upon entering developed markets, emerging market multinational corporations (EMNCs) from China and India must compete with both host companies and other developed nation MNCs to attract and recruit necessary local talent. The purpose of this paper is to examine to what extent EMNC firms will be perceived as less attractive employers than their developed nation counterparts due to a perceived liability of origin bias. Major demographic and psychographic factors that may affect this bias will also be identified.

Design/methodology/approach

Seven hypotheses were tested on a total of 626 German, French and American respondents. Participants were randomly presented identical job descriptions from four hypothetical MNCs (American, European, Indian and Chinese) and were asked to evaluate the perceived attractiveness of working for, as well as their intent to pursue employment with, the offering firm.

Findings

Using hierarchical linear regression testing, combined with analysis of variance testing, EMNCs were found to have significantly lower organizational attractiveness than equivalent European or American owned MNCs. Mixed results were found for the various hypotheses based on the moderator variables.

Research limitations/implications

Because the study included three distinct sub-groups, supplemental analyses controlling for possible variances between the sub-groups themselves are included. This multicultural study is one of the first to address the human perspective of EMNC outward foreign direct investment (OFDI) by identifying the existence of a potential liability of origin bias toward emerging market firms manifested by potential developed market job applicants. Furthermore, this study is one of the first to examine the influence of applicant age, professional status, gender and nationality with respect to the differences in the perceived level of organizational attractiveness between emerging market and developed nation firms.

Originality/value

This paper extends the literature in three important research areas. First, an extension to the literature on the highly relevant topic of OFDI by Chinese and Indian firms is made. Second, traditional research in the field of organizational attractiveness is further extended by combining it with the timely subject of Chinese and Indian OFDI into developed markets. Finally, this study extends international business literature by studying the influence of demographic and psychographic moderators on the perceived level of organizational attractiveness between emerging market and developed nation firms.

Details

International Journal of Emerging Markets, vol. 9 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 18 July 2008

Alain d'Astous, Zannie Giraud Voss, François Colbert, Antonella Carù, Marylouise Caldwell and François Courvoisier

The country‐of‐origin literature has focused mainly on tangible products and has neglected largely intangible services and products such as the arts. The objective of this study…

2840

Abstract

Purpose

The country‐of‐origin literature has focused mainly on tangible products and has neglected largely intangible services and products such as the arts. The objective of this study is to examine the impact that country of origin may have on consumer perceptions of artistic and cultural products and to explore the variables that explain how consumers form their perceptions of countries as producers of cultural products.

Design/methodology/approach

A survey was conducted among adult consumers in Australia, Canada, Italy, Switzerland, and the USA that assessed participants' perceptions of 16 countries with respect to their reputation for nine cultural products.

Findings

The results indicate that product‐country images in the arts are affected by country and product familiarity as well as consumers' openness to foreign cultures and home country bias. Countries more proximate to the participants' home country were also better evaluated, especially when the proximity factor played a significant role in the consumption of cultural products.

Research limitations/implications

While almost all of the hypotheses were supported, additional research is needed to examine the cultural products of non‐Western and emerging markets as well as product‐country perceptions in these markets.

Originality/value

This study extends our understanding of country‐of‐origin effects in the context of aesthetic, intangible, and complex products that elicit both cognitive and affective responses. It demonstrates that familiarity with a country of origin has a stronger association with positive perceptions of product‐country reputation than does product familiarity, and that openness to foreign cultures, home country bias, and proximity have a positive effect on product‐country evaluations.

Details

International Marketing Review, vol. 25 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 14 September 2018

Leyla Orudzheva and Nolan Gaffney

Research on corporate social responsibility (CSR) continues to proliferate, but why and how multinational enterprises (MNEs) from different parts of the world engage in CSR is…

Abstract

Purpose

Research on corporate social responsibility (CSR) continues to proliferate, but why and how multinational enterprises (MNEs) from different parts of the world engage in CSR is still unclear. The purpose of this study was to investigate whether there are differences in behavior based on the status of the MNE’s home country relative to the host country.

Design/methodology/approach

Applying a social dominance theory (SDT) framework, the authors explain variations in MNE behavior because of perceived hierarchical differences between a MNE’s home country and that of the host country. It is posited that these hierarchical differences trigger a country-of-origin bias that affects stakeholders’ expectations for the MNE, as well as that firm’s response to those expectations. In this integrative conceptual paper, we propose a testable framework derived from a deductive approach that applies the tenets of SDT to predict outcomes of CSR implementation by MNE’s subsidiaries.

Findings

MNEs from less developed countries are subject to lower expectations and engage in self-debilitating behavior, which may hinder their attempts to implement CSR initiatives in more developed countries. Paradoxically, engaging in CSR initiatives could help reduce liability of foreignness and increase chances for competitive advantage.

Practical implications

MNEs from developing countries should be aware of a potential country-of-origin bias affecting decisions on CSR implementation and that could also be detrimental to their competitive advantage when operating in more developed countries. Conversely, MNEs from developed countries should be ready for higher expectations of their CSR initiatives in less developed countries.

Originality/value

This paper strives to contribute to two extant literatures. First, it contributes to the social dominance literature by applying the perspective in the international business context, specifically research on MNE liability of origin. Second, this perspective offers testable propositions on how perceived hierarchies and liability of origin affect firm decision-making, specifically in the context of developing country MNEs. Third, this paper seeks to expand the discussion of MNE subsidiary CSR behavior to account for the relative context of the home and host country.

Details

Social Responsibility Journal, vol. 14 no. 3
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 23 July 2020

Jae Min Jung, Joseph Jones, Curtis P. Haugtvedt and Somnath Banerjee

Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase…

Abstract

Purpose

Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase intentions. Likewise, little is known about when the state-of-origin (SOO) information enhances, has no effect or has a negative effect on consumer attitudes and purchase intentions. Primarily drawing on the country-of-origin literature, this study aims to examine the influence of SOO label information and the moderating role of state residency.

Design/methodology/approach

To test five hypotheses, the authors conducted a survey (Study 1) and an experiment (Study 2). The analyses included content analysis, regression and ANOVA.

Findings

The findings show that for certain products, moderate-to-strong product–state associations exist. However, when the associations are weak, consumers show bias for products made in their (vs other) states. The findings also show that when consumers evaluate their state products, normative (vs cognitive) reasons drive their attitudes, but that when they assess products from states other than their state of residency, cognitive (vs normative) reasons drive attitudes. Additionally, economic sustainability seems a powerful motivator for buying products made in their state of residency.

Practical implications

Companies should take advantage of positive biases for their products in the states in which they produce products. However, when companies market their products outside their states of production, in some cases, they should consider deemphasizing SOO information unless there is a strong product–state association present among consumers outside of the state.

Originality/value

This paper adds value by providing new insights for designing product origin labeling programs. Suggestions for future research and marketing strategies for practitioners who want to use SOO as a branding strategy are offered.

Details

Journal of Consumer Marketing, vol. 37 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Open Access
Article
Publication date: 8 November 2023

Stephen Oduro, Alessandro De Nisco and Luca Petruzzellis

This study aims to draw on cue utilization and irradiation theories to: determine the extent to which country-of-origin image and its sub-dimensions exert an aggregate and…

1870

Abstract

Purpose

This study aims to draw on cue utilization and irradiation theories to: determine the extent to which country-of-origin image and its sub-dimensions exert an aggregate and relative influence on consumer brand evaluations; and identify the contextual and methodological factors that account for between-study variance in the focal relationship.

Design/methodology/approach

A random-effects model was used to examine 166 empirical articles encompassing 499,563 observations, and 282 effect sizes from 1984 to 2020 using Comprehensive Meta-Analysis software.

Findings

Results show that country-of-origin image has a positive, moderate effect on consumer brand evaluations. Moreover, findings reveal that each dimension of country-of-origin image – general country image, general product country image, specific product country image and partitioned country image – significantly influences consumer brand evaluation, but the effect of general product country image is the largest. What’s more, the aggregate impacts of country-of-origin image on consumer brand evaluation – brand commitment, brand-specific associations and general brand impressions – show that the effect on brand commitment is the largest. Finally, findings show that contextual factors (brand source, product sector, culture [individualism vs collectivism], brand origin continents and respondents’ continent) and methodological factors (cues, sampling unit, publication year and sample size) significantly account for between-study variance.

Originality/value

This study provides the first meta-analytic review of the relationship between country-of-origin image and consumer brand evaluation to help clarify mixed findings and balance out the literature, which has only seen quantitative reviews on product evaluation and purchase decisions.

Details

Journal of Product & Brand Management, vol. 33 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 10 April 2017

Adamantios Diamantopoulos, Marc Herz and Nicole Koschate-Fischer

Drawing from the entitativity theory, the purpose of this paper is to focus on the European Union (EU) as a superordinate entity and investigate the extent to which a “Made-in-EU”…

Abstract

Purpose

Drawing from the entitativity theory, the purpose of this paper is to focus on the European Union (EU) as a superordinate entity and investigate the extent to which a “Made-in-EU” designation leads to superior/inferior brand evaluations and through them to higher/lower purchase intentions than different country-specific designations.

Design/methodology/approach

Prior literature and qualitative interviews with consumers are used to generate several propositions regarding the role of the EU as a brand origin. These are subsequently tested in a series of four experimental studies using a common design but different country-specific origins as stimuli.

Findings

While a “Made-in-EU” designation is interpreted as a quality signal, linking a brand to the EU fails to generate positive affective associations. Furthermore, the exact impact of a “Made-in-EU” brand designation very much depends on the standard of comparison, that is, the specific country against which the EU is evaluated.

Research limitations/implications

Superordinate designations such as the EU can indeed represent distinct entities in consumers’ minds which strongly impact their perceptions and intended behavior.

Practical implications

Moving from a “home country” label to a “Made-in-EU” label is not advisable for owners of domestic brands. For foreign brands from EU countries with an unfavorable country image, adopting a “Made-in-EU” label is worth considering since it can strengthen quality perceptions. However, any quality advantage might be offset by weaker brand affect perceptions.

Originality/value

The concept of entitativity introduces a new conceptual lens in the context of origin research which – almost exclusively – has previously focused on the individual country as the unit of analysis.

Details

International Marketing Review, vol. 34 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 31 August 2020

Yohan Bernard, Véronique Collange, Aurore Ingarao and Sarra Zarrouk-Karoui

The purpose of this paper is to better understand an increasingly widespread practice consisting, of a brand, in signaling the domestic origin of its products aimed at domestic…

1144

Abstract

Purpose

The purpose of this paper is to better understand an increasingly widespread practice consisting, of a brand, in signaling the domestic origin of its products aimed at domestic consumers, that is, the “made in the domestic country” (MIDC) strategy. To this end, it is proposed to analyze the MIDC label as a cue interacting with the brand’s characteristics (brand equity and country of origin of the brand).

Design/methodology/approach

A between-subjects experiment is conducted among 293 French consumers on four different brands of pasta. The overall design is a 2 (with/without the MIDC label) × 2 (high/low brand equity) × 2 (domestic/foreign brand) mixed design.

Findings

The results show that intention to buy the product increases significantly with the presence of the MIDC label, but not so willing to pay. The positive effect on buying intention is greater when: the product has rather low brand equity, consumer ethnocentrism is high and/or consumers are strongly attached to their national identity.

Research limitations/implications

The present research extends the literature on country-of-origin effects by taking into account the role of the brand equity of the product. However, the study focused on only one low-involvement product category (pasta) and one country (France).

Practical implications

This study shows that adding an MIDC label to the product is empirically justified.

Originality/value

While moderate or high scores on “patriotic” variables reinforce the positive impact of the MIDC label, low scores reverse the trend, that is, cause rejection.

Details

European Journal of Marketing, vol. 54 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 January 2006

Neelam Kinra

To investigate consumer attitudes in India towards local and foreign brand names, against a background of increasing prevalence of foreign brand names and stereotypes of countries…

14018

Abstract

Purpose

To investigate consumer attitudes in India towards local and foreign brand names, against a background of increasing prevalence of foreign brand names and stereotypes of countries of origin covering the range from positive to negative.

Design/methodology/approach

A structured questionnaire administered face‐to‐face to 112 consumers in the city of Lucknow. Attitudes to brands categorized as “foreign” or “Indian” were measured by seven‐point semantic differential scales, and consumer ethnocentrism by CETSCALE. Factor analysis with varimax rotation was used to identify factors contributing to the observed degree of ethnocentrism in brand choices.

Findings

It was found that the quality of foreign brands was perceived to be generally higher and superior to local brands. Most consumers also associated greater accessibility of foreign brands in the Indian market with better quality at lower prices. Despite high levels of nationalism and preference for indigenous manufacture, as evidenced in high factor ratings on an ethnocentrism scale, which might indicate a positive bias towards local brands, Indian consumers were not prejudiced against foreign brand names. In fact, they evaluated them higher on technology, quality, status and esteem than Indian brands, and attributed higher credibility to those countries‐of‐origin.

Research limitations/implications

This study adds to the body of knowledge about country‐of‐origin effect, in a massive and fast developing market.

Practical implications

The strategy of marketers of foreign brands in the Indian market should be to position their products on attributes of technology and quality, rather than economy and value for money.

Originality/value

Shows that ethnocentricity does not necessarily result in hostility to foreign brands.

Details

Marketing Intelligence & Planning, vol. 24 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

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