Managers in an attempt to provide their companies a greater growth opportunities are taking their products and brands to an international level (Ghantous, Iii, 2008). When internationalizing, the product’s quality, reputation and other characteristics can be determined by its origins, as consumers tend to hold stereotyped images of products made in different countries. Hence, the country of origin (COO) constitutes an important extrinsic cue that consumers use to evaluate foreign products which they are not familiar with it (Okechuku, 1994; WTO, 2018). The COO impacts directly consumers’ evaluation process and indirectly consumers’ purchase process (Saran, Gupta, 2012). This phenomenon was first studied by Schooler (1965), and it is said to be "one of the widest research concepts in all the international business, consumer behavior, and marketing literature" combined (Pharr, 2005).
본 연구는 중국 시장에서 소비자 세계주의가 외국 브랜드 구매 행위에 미치는 영향이 브랜드 원산지와 명성에 따라 달라질 수 있음을 검증하는 연구이다. 구체적으로 세계주의 성향이 높은 소비자는 상대적으로 소비자 적대감이 높은 원산지의 브랜드와 문화적 이질성이 높은 원산지의 브랜드를 수용하는 경향이 높은지를 살펴본다. 동시에 소비자 세계주의의 혁신성과 관련하여서도, 세계주의 성향이 높은 소비자는 인지도가 낮은 외국 브랜드에 대한 선호도가 높은지도 검증한다.
중국 소비자를 대상으로 실험 설계를 통한 소비자 세계주의의 효과를 검증한 결과, 위의 차별적 효과가 확인되 었다. 흥미로운 점은 세계주의 성향이 높은 소비자는 서양권 브랜드는 선호하나, 문화적으로 유사한 동양권 브랜 드, 특히 유명 브랜드에 대한 선호도는 높지 않는 것으로 발견되었다.
This research was conducted in order to examine the reverse effect of brand loyalty on
the emotional attachment to the place-of-origin. Results indicate that consumers that
are highly loyal to a brand tend to be more emotionally attached to the place-of-origin;
the effect is mediated by affective place image. Affective place image also partially
mediates the brand loyalty–place attachment relationship in cases when the brand is
authentic in the place.
Human beings tend to extend their affect towards one object based on another object
related to the first one. Building on this notion researchers have been trying to
understand two related concepts—a place, and a brand originating from that place. In
this endeavor, one literature stream has been focusing on place-based branding from
the perspective of international marketing, including work on country-of-origin (COO)
or product-country image (Baldauf et al., 2009; Hong & Wyer Jr, 1989). Another
stream focusing on place branding adapts traditional marketing theory to market a
place (Kotler 2002), and focuses on destination image (Bramwell & Rawding, 1996;
Lee & Lockshin, 2012; Qu, Kim & Im, 2011), and place attachment (Gross & Brown
2006). Notwithstanding the above, there is a dearth of research combining these two
aforementioned streams. One of few exceptions is Lee and Lockshin (2014), who
explored the reverse COO effect of product perceptions on destination image.
However, they focused on consumers’ cognitive beliefs and, thus, the underlying
mechanism of the relationship is yet to be examined. Hence, the current research aims
to answer the following questions: can brand loyalty be leveraged to consumers’
relationship with the place-of-origin as a tourism destination? And, if so, what is the
mechanism underlying the effect?
We present a global survey with consumers of place-based wine brands as a means to
understand whether consumers’ loyalty to a brand will influence their emotional
attachment to the place where the wine brand origins. A moderated mediation model
is proposed. Affective destination image mediates the positive effect of brand loyalty
on place attachment, which is positively moderated by authenticity of the brand-place
associations. The study contributes to the tourisms marketing field by identifying the
emotional linkage between brand loyalty and place attachment. It serves as a starting
point for further investigation of how company or product branding could benefit
place marketing and branding theory. Affective components are suggested to play a
vital role in the relationships between a place and a brand. It further enriches understanding of the role of brand authenticity. Place marketers need to understand
the role of brand loyalty in the decision-making process of tourism consumption.
There has been an increasing trend of using code-switching to enhance ad persuasion among local and global brands. Ads that include two or more languages are referred to as code-switched ads (Luna and Peracchio 2005a; 2005b). It is noted that previous studies investigating code-switched ad effectiveness have focused on bilinguals, not monolinguals. Due to the emerging use of code-switching in ads in monolingual markets, more research efforts are required to understand its effectiveness and boundaries among the monolinguals. The purpose of this study is to investigate the moderating role of consumer local-global identity in the effectiveness of code-switched ads among monolinguals.
Two experiments were conducted and the results confirmed our hypothesis that consumer local-global identity moderates the effect of code-switched ads. The results indicated that congruence between consumer local-global identity and code-switching enhanced persuasiveness. In addition, the mediating effect of ad involvement was identified. These findings provide managerial implications for marketers.
In the years 2010–2012 in Italy, the 3F sectors, fashion, food and furniture, marked a +5% (FinanciaLounge, 2014). To some extent, this rise may rely on the strong Made in Italy label that is historically “perceived by consumers as being associated with “true” luxury goods” (Hoffmann & Coste-Manière, 2014) and, in order to create nostalgia and credibility for their brands, many firms try to correlate their offer to the heritage of the Country of Origin (Fionda & Moore, 2009).
In the academic literature, Country of Origin is one of the most analyzed method to enhance a firm’s competitive advantage, mainly thanks to its ability to increase positive perceptions about firms’ products in the customers’ mind (Agrawal & Kamakura, 1999; Aiello et al., 2009). Moreover, Country of Origin is defined as “the effect rooted in consumers’ images of the quality of specific products marketed by firms associated with a country of origin” (Verlegh, Steenkamp, & Meulenberg, 2005, p. 127). COO works as an information cue that covers the attitudes toward the products evaluation. In particular, COO influences customers’ brand awareness, perceived quality and brand associations depending on the country image, and, as a consequence, the overall brand equity (Agrawal & Kamakura, 1999; Chao, 1998; Magnusson, Westjohn, & Zdravkovic, 2011). For instance, some authors showed a positive bias (i.e. increased willingness to pay a higher price) toward products from some countries relative to others (Drozdenko & Jensen, 2009). For this reason, just few countries can benefit from their image and awareness in order to take advantage from the Country of Origin effect, such as Italy. Furthermore, besides the Country image, scholars found that the COO effect can vary depending on the product category “For a given category, country-of-origin credibility is high when consumers have a favorable image of the country’s products in that category, and low when the product–country image is unfavorable” (Verlegh et al., 2005, p. 129). In this perspective, firms should identify solutions to convey positive associations about their supply to customers (Phau & Leng, 2008). The relevance of this issue is confirmed by a lot of studies, where some communication tools related to COO effect are already investigated, like brand identification system, packaging, advertising copy and celebrity endorsement (Agrawal & Kamakura, 1999; Usunier, 2011).
Actually, a lot of Italian firms use product placement exploiting the “Made in Italy” effect, where placement is here intended as the paid inclusion of branded products within mass media programming (Karrh, 1998). Just few examples are Piaggio with Vespa in Roman Holiday, Bacardi with Martini in James Bond and Ocean’s series, Riva Yacht with Aquarama in James Bond series and The Great Beauty, and Prada in The devil wears Prada.
Many reasons are explaining such a great use of product placement. On one hand, in the last decade we have assisted to the fragmentation of media and their audience, and on the other one, consumers are more and more skeptical towards traditional benefit advertising and they use technology to avoid commercials (Hackley & Tiwsakul, 2006; Lehu & Bressoud, 2009). Integrating brands casually but notably in a media content appears to be an interesting alternative to traditional marketing communication tools (D’Astous & Chartier, 2000). Furthermore, product placement’s acceptance and its possibly effectiveness, as well as country of origin effect, is likely to vary across product category (Gupta & Gould, 1997; Russell, 1998). Moreover, we can assume that product placement impact on the overall brand equity in a positive way (Aaker, 1997; Miniero, Chizzoli, & Pate, 2013) as it is an effective tool that can increase brand awareness and develop favorable relations with customers (Chan, 2012). In particular, studies on product placement confirm an increased top-of-mind-awareness and unaided awareness of placed brands (Cholinski, 2012). Finally, even if studies on product integration effect on attitude toward placed brands are not univocal, a lot of publications present positive or at the very least neutral product placement influence on brand attitude (Russell, 2002). For instance, according to Miniero et al. (2013), product placement is a nice way to achieve communication objectives and it can be used to influence consumers’ attitude and intention to buy a specific brand (Miniero et al., 2013).
To our knowledge, despite a huge employment of product placement in practice and a lot of contributions in the academic theory about these two topics, there is a gap in the literature about the relationship between the COO effect and the use of this communication tool from a practitioners’ perspective. On the contrary, from a consumers’ perspective, Tsai and Lu’s research find out a positive correlation between the use of product placement and the country image (Tsai & Lu, 2012). Moreover, due to the several studies concerning the positive impact of product placement and country of origin on brand equity, we are allowed to suppose that professionals can synergistically take advantage from both.
Starting from Karrh’s studies on the practitioners’ perspective about product placement, our research aspires to draw any analogy and difference between Karrh’s findings and the Italian firm’s perceptions (Karrh, McKee, & Pardun, 2003; Karrh, 1995, 1998). Particularly, we aim to interview companies that belong to sectors where Made in Italy represents a key competitive component. In addition, our study attempts to explore if and how independent Italian firms exploit country of origin effect in their product placement in order to increase their brand equity.
To answer our research questions, we could properly use the case study method (Yin, 2009). This qualitative methodology is very useful to explore unanticipated empirical discoveries (Eisenhardt, 1989). Our case study protocol will provide the analysis of three different data sources. In the first stage of our research, we will examine audio-visual materials, such as film, videotapes, websites and social media, to collect data in an unobtrusive method. In the second stage, we will go through public documents, newspapers and recent academic literature to understand trend topics on product placement and COO and to arrange guidelines suitable for the interviews. In the third ones, we will conduct in-depth face-to-face and semi-structured interviews with key figures of Made in Italy firms that integrated product placement in their communication mix at least once. More in details, interviews will be recorded and transcribed to ensure the completeness of the information gathered. Through the triangulation of these methods and sources we will achieve a richer and deeper data collection and we will also make the case study more detailed (Creswell, 2009).
Although our research is still in progress, we expect to extend Karrh’s findings about product placement. More in details, we would like to focus our attention upon the integration between COO and product placement and we try to highlight any key element that can explain how to manage this relationship in order to increase brand equity.
The online game market has rapidly increased worldwide, especially in China. In 2012, the world game market equaled 111.7 billion. Many game companies compete by launching new online games in various genres. In 2010, Activision Blizzard reported that the World of Warcraft (WOW) is the world’s most popular online game. Chinese gamers constitute more than half of WOW’s 10 million users. Korea is the second largest gaming market. Thus many foreign game companies target Korea and China, in competition with domestic game companies. The purposes are 1) to understand the role of country of origin and /or brand image in game consumer behavior, 2) to find out the difference of game evaluation between game users in China and Korea, and 3) to draw strategic implication game marketers. Consumers expect products from advanced countries to provide superior performance, so they often look to country of origin in evaluating products. Recently, consumers have looked to brand image as another key element in product evaluation. In this research, we study whether gamers evaluate games on the basis of country of origin and/or brand image. In this paper, we add to the gaming research and suggest that the online game market has three dimensions. First, online games are products. Second, online games are service. Last, online games are entertainment. Data collection resulted in 355 usable responses from online game (LOL) users in Korea(166) and China(189). We conduct factor analysis and reliability analysis to check reliability and validity. Country of Origin is the key element for product evaluation of utilitarian goods but it doesn’t have significant effect on product evaluation of hedonic products which mainly provide sensual pleasure, fantasy, and fun to customers such as luxury goods or online game (Dhar & Wertenbroch, 2000).
Today all nations in the world focus on remaining competitive advantage by adding high values to their fashion businesses. The most typical example of such added value is fashion collection. In case of London Fashion Week, which is among the world’s top 4 most famous fashion collections where more than 5,000 journalists and buyers from 25 nations can be expected every season, it has great contribution to the economic wealth of London. It induces consumption of 20 million GBP and economic production effects of one hundred million GBP. According to Joo (2009), one of the main purposes of fashion collections can be defined as the invigoration of international marketing and the creation of consumption demand. Fashion collections lead to increased direct sales and consumption demand by developing new products based on leading fashion trends that are presented in the collection. The so-called Big four collections in Paris, Milan, New York and London have their own Country of Origin (COO) image, which represents each country, cities, brands, products and services. For example, Paris collection has been established as luxury image with hand-made and Haute Couture. Not only fashion collection but also fashion brands have applied specific country characteristics to their fashion brand’s image. This serves as a critical factor of competitiveness that communicates an integrated image of brands to the customers. Also, within the purchase decision-making process, consumers consider COO as an important element. Therefore, organizer of fashion collections as well as brands that engage in such should consider COO as a key factor. Most of the previous studies about fashion collections focused on content analyses. For example, Joo (2009) compared characteristics and current situations between four major overseas cities’ collections and Seoul collection. Additionally, there are studies about fashion style, trend, design and textile. Characteristics of color change in 1990s fashion collection (Kim & Kim, 2007) and an analysis of design of hats and fashion images in collections (Jeong & Jeong, 2008) have been conducted as well. Previous studies related to COO mainly focused on the product (Bilkey & Nes, 1982) and how the image of the producing country affects product evaluation. Thus, the purposes of this study are 1) to examine of fashion collection’s COO and fashion brand image effects on brand evaluation and purchase intention, 2) to analyze differentiation factors of COO image, brand evaluation, purchasing intention on Seoul, New York and Paris collection. We surveyed Korean, American and French who have experience in their own country’s fashion collection and used SPSS 21 for data analysis. Fashion collection’s COO and brand image has a great effect on brand evaluation and purchase intention. Moreover, it seems to increase the purchase intention by affecting brand evaluation. Therefore, the results of the study are as follows. First, we can confirm that the better the fashion collection’s COO and fashion brand image, the higher brand evaluation and purchase intention is. Second, when assessing fashion collection’s COO image and fashion brand image, brand evaluation and purchase intention differ according to Korea, US and French national stereotypes. This study goes beyond the general product-centric COO studies and introduces the fashion collection’s COO that can be valuable research in terms of contribution not only to academia, but also to the industrial field.
The limited available empirical evidence indicates that consumer ethnocentrism does not have a uniform effect on consumer buying (e.g., Klein, Ettenson & Morris 1998; Suh & Kwon 2002). The paper comes to address this gap by investigating the inconsistency of ethnocentric behaviours and the factors underlying such inconsistencies. More specifically, brand, product category and country of origin (COO) effects are examined for their impact on behavioural consumer ethnocentric bias. Contrary to the main stream of research in this area, which concentrates on general attitudes towards the products or buying intentions (e.g., Balabanis & Diamantopoulos 2004; Poon et al. 2010; Sharma etal. 1995; Shimp & Sharma 1987; Verlegh 2007; Wang & Chen 2004) this paper focuses on behavioural outcomes of consumer ethnocentrism. In addition, it adopts a more focused approach and examines the impact of consumer ethnocentrism on the purchase of specific brands, rather than the impact of consumer ethnocentrism on general product categorisations or simple foreigndomestic product dichotomies. Hypotheses are developed to explain observed differences in the behavioural effects of consumer ethnocentrism. The hypotheses are tested on a sample of 468 US consumers involving purchases in 10 product categories, 432 brands and 22 countries of origin. Results confirm that product category is an important determinant of the behavioural effects of consumer ethnocentrism. Consumer ethnocentrism was found to have an impact on the purchases of the most expensive product categories rather than the frequently purchase convenient items. There is also some limited evidence regarding the moderating role of globalness of brands on the relationship between consumer ethnocentrism and purchase behaviour. The cultural proximity of the country of origin of foreign brands was found to have no effect on the purchasing behaviour of ethnocentric consumers.
This paper presents a research study into urban adult Chinese consumers’ preferences in China with an analysis of the literature on country of origin effects on consumer brand preferences. The study implemented a mixed methods approach. Analysis of quantitative and qualitative data with results and conclusions are given.
The objective of this paper is to understand consumers’ responses (attitude, perception of quality and luxury) to production delocalization in the luxury industry, based on brand origin matching consumers’ origin or not, in order to understand the interaction brand origin and consumer ethnocentrism on those responses.Two experiments were conducted. Study 1 exposes 166 respondents (French, Italian and other European) to a message of delocalization of either a French or Italian brand supposed to delocalize production to China. Study 2 assesses, among 62 French women, the implicit preference toward French luxury brands (through the Implicit Association Test, Greenwald et al. 1998) and the level of consumer ethnocentrism (through CETSCALE, Sharma et al. 1995). Then, the group is exposed between subjects to 2 delocalization messages X 2 country of delocalization (China, Poland EU) Although brand origin is not salient when consumers evaluate brands (no explicit preference for French brands over Italian brands across studies), it is nonetheless present below awareness, as part of the brand heritage and the brand identity (measured through an implicit preference for French brands over Italian brands among our French respondents). It manifests in context of brands delocalizing out of the home country. Across studies, the attitude toward the brand, the perception of quality and perception of luxury is affected negatively post-exposure to a message of delocalization. Yet, this result is moderated by consumer ethnocentrism and message framing. When the message induces positive consequences for the brand and for the national economy, French respondents (and Italian respondents in study 1) are less affected by the delocalization of their home brands than other respondents. In turn, when the message highlights a loss in national employment, respondents judge the brand more negatively. The effect is stronger for respondents higher in ethnocentrism. The country of delocalization does not influence those results. There is scarcity of papers investigating the CoO effect for luxury brands, although the luxury business model and luxury brand identity are rooted into brand origin. This paper is the first to our knowledge to investigate the effect of brand origin and consumer ethnocentrism on brand delocalization.