Pekka Mattila - European brands in Asia, Asian brands in Europe

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Dr Pekka Mattila
Group Managing Director, Aalto University Executive Education
Associate Dean, Executive Education
Adjunct Professor of Practice, Aalto University School of Economics

Published in: Education, Technology, Business
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Pekka Mattila - European brands in Asia, Asian brands in Europe

  1. 1. Prof. Pekka MattilaMarch 20th 2012 7.3.2012 Pekka Mattila
  2. 2. • In essence, country-of-origin is a way to differentiate the product from the competitors• Schooler (1965) is considered as the first academic to empirically study this effect. He found out that products, identical in every respect except for their country-of- origin, were perceived differently by consumers• Country-of-origin has an impact on consumers quality perceptions of a product, as well as preference for and willingness to buy that product 7.3.2012 Pekka Mattila
  3. 3. • Several studies have shown that consumers A) tend to have a relative preference to products from their own country or may have a relative preference for or aversion against products that originate from certain countries (so- called affinity and animosity countries)• Consumers tend to utilize the country of origin more when they are less involved and less familiar • Low involvement • But... 7.3.2012 Pekka Mattila
  4. 4. • … but in addition, consumers tend to use country of origin more as a decision tool when they consider luxury products • Aspirational • Transformational • High involvement 7.3.2012 Pekka Mattila
  5. 5. Farm/works/estate/salon Ultimate luxury Village/region Premium Country Mass market 7.3.2012 Pekka Mattila
  6. 6. 7.3.2012 Pekka Mattila
  7. 7. Examples of cognitive, affective and normative mechanisms for country-of-origin effectsMechanism Description Major findingsCognitive Country of origin is a cue for Country of origin is used as a ”signal” for overall product quality product quality and quality attributes, such as reliability and durability (Li & Wyer, 1994; Steenkamp, 1989)Affective Country of origin has symbolic Country of origin is an image attribute that links and emotional value to the product to symbolic and emotional benefits, consumers including social status and national pride (Askegaard & Ger 1998; Batra et al., 1998)Normative Consumers hold social and Purchasing domestic product may be regarded as personal norms related to a ”right way of conduct”, because it supports the country of origin domestic economy (Shimp & Sharma, 1987). By the same token, consumers may refrain from buying goods from countries with objectionable activities or regimes (Smith, 1990; Klein, Ettenson & Morris, 1998) 7.3.2012 Pekka Mattila
  8. 8. 7.3.2012 Pekka Mattila
  9. 9. • Western luxury brands seem to be more eager to tap into their country-of-origin strengths and brand attributes than Asian brands • Luxury still perceived as a Western concept• With some notable exceptions… 7.3.2012 Pekka Mattila
  10. 10. 7.3.2012 Pekka Mattila
  11. 11. Prof. Pekka MattilaMarch 20th 2012 7.3.2012 Pekka Mattila

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