Effect of country of origin on brand equity final

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Effect of country of origin on brand equity final

  1. 1. A Project Report OnEFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYProject Submitted for the partial fulfilment of the requirement towards the award of Degree of Masters in International Business(MIB) Session 2011-2013 Submitted by: Samik Sarkar 11-MIB-41 11-5900 Under the Supervision of: Dr. Rahela Farooqui CENTRE FOR MANAGEMENT STUDIES JAMIA MILLIA ISLAMIA
  2. 2. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY DECLARATIONThis is to declare that, I, SAMIK SARKAR, a student of Master of InternationalBusiness (2011-13), Centre for Management Studies, Jamia Millia Islamia, NewDelhi, have given original data, information and maintained full confidentially to thebest of my knowledge in the project report titled “EFFECT OF COUNTRY OFORIGIN ON BRAND EQUITY” and that, no part of this information has been usedfor any other assignment but for the partial fulfilment of the requirements towards thecompletion of the said project.(Student name & Signature)Course:Year:Roll Number:Enrolment Number:JMI, NEW DELHI 2|Page
  3. 3. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY ACKNOWLEDGEMENTThe presentation of the report in the way required has been made possible by the wayof contribution of many people. The completion of this project report titled“EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY” brings to expressthanks to one &all of those who helped along the way. I am very thankful to Dr.Rahela Farooqui, faculty –marketing, and my college project guide for guiding me toconduct my project report. I would also like express my gratitude to Dr. U.M. Amin,director of the college for giving his support and guidance throughout this project.(Student name & Signature)Course:Year:Roll Number:Enrolment Number:JMI, NEW DELHI 3|Page
  4. 4. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY CONTENTSDECLARATION ........................................................................................................................... 2ACKNOWLEDGEMENT ............................................................................................................... 31.0 ABSTRACT...................................................................................................................... 52.0 INTRODUCTION ............................................................................................................. 73.0 LITERATURE REVIEW ..................................................................................................... 9 THEORITICAL FRAMEWORK: ............................................................................................... 10 BRAND EQUITY: ................................................................................................................... 11 BRAND EQITY DIMENSIONS AND BRAND EQUITY: ............................................................. 12 COUNTRY OF ORIGIN: ......................................................................................................... 14 BRAND’S COUNTRY OF ORIGIN IMAGE: .............................................................................. 14 BRAND’S COUNTRY OF ORIGIN IMAGE AND BRAND EQUITY: ............................................ 174.0 OBJECTIVE OF STUDY ................................................................................................. 195.0 METHODOLOGY .......................................................................................................... 19 5.1 RESEARCH OBJECTIVE .............................................................................................. 19 5.2 RESEARCH DESIGN ................................................................................................... 20 5.3 DATA COLLECTION AND PREPARATION .................................................................. 21 5.4 DATA INTERPRETATION AND ANALYSIS .................................................................. 24 5.4.1 ................................................................................................................................ 24 Research objective no 1 .................................................................................................. 24 5.4.2 .................................................................................................................................... 32 Research objective no 2 ..................................................................................................... 32 5.4.3 ................................................................................................................................ 33 Research objective no 3 .................................................................................................. 33 5.4.4(A)............................................................................................................................ 37 Research Objective no 4 ................................................................................................. 37 5.4.4(B) ............................................................................................................................ 37 Research Objective no 5. ................................................................................................ 376.0 CONCLUSION............................................................................................................... 437.0 RECCOMENDATIONS ................................................................................................... 458.0 STUDY LIMITATIONS ................................................................................................... 469.0 REFERENCES ..................................................................................................................... 4710.0 ANNEXURES ................................................................................................................ 52 4|Page
  5. 5. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY1.0 ABSTRACTMarketers and consumer behaviour researchers generally accept that a product‟s orbrand‟s country-of-origin is an important influencing factor in consumer decisionmaking. Most of the previous studies suggest that country-of- origin informationwhich is indicated by the “Made in ...” label which serves several purposes inconsumer decision-making. It acts as a salient attribute in consumer productevaluation. That is, the image that consumers have about a certain country willinfluence their perceptions of products from that country. Since consumers‟perception of a particular country-of-origin influences their evaluation of productsfrom that country, this will influence their preference, purchase intention and choiceof a particular brand and hence has implications on the brand‟s equity. In this study ahigh involvement category of Electronic goods, Cars and Wrist Watches has beenselected.Purpose:The purpose of this dissertation is to investigate the effects of brand‟s country-of-origin image on the formation of brand equity in India.Design/methodology/approach-In this study a high involvement category of Electronic goods, Cars and WristWatches has been selected. A total of 6 brands from these 3 categories have beenstudied vividly to understand the Country-of-Origin effect. A sample size of 75 isselected from people who frequently buy branded products. Questionnaire isadministered among them by physical distribution, e-mailing and also through socialnetworking sites. The questionnaire was related to brands and their COO.Findings:Based on the responses obtained from the sample group, it‟s found that, the effect ofCOO is having varied effect on the consumer buying behavior. 6 brands were studiedto understand the COO effect. Based on the responses the brands are categorized intofour categories with varying COO awareness on consumer buying behavior. The 5|Page
  6. 6. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYstudy also highlights the effect of price on consumer purchase decision of foreignbrand over COO, though the effect is product category specific.Research ImplicationsThis study adds to the body of knowledge about consumer behavior and theirperceptions about Country-of-origin of global brands, in a diverse and fast developingmarket like India.Managerial ImplicationsAs companies become global, managers must possess a thorough understanding ofthe attitudinal and behavioural characteristics of emerging consumer markets, becausewhat is known about consumers in one part of the world is not applicable toconsumers in other parts. Therefore, the study of consumer‟s perception of country-of-origin on brand equity in an emerging market like India is of great managerialimplications. 6|Page
  7. 7. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY2.0 INTRODUCTIONThis study aims in understanding consumer perception of global brands in the Indianmarket. The Indian market is undertaken for the study for the simple reason being thestrong growth of the retail sector in India. Organized retailing is at its infancy in Indiaand presents huge growth opportunity. Standing on the threshold of a retail revolutionand witnessing a fast changing retail landscape, India is all set to experience thephenomenon of a global village. India presents a grand opportunity to the world atlarge, to use it as a business hub. A vibrant economy, India tops A.T. Kearney‟s listof emerging markets for global retailers and it has climbed up three notches to emergeas the second most attractive investment destination for global retailers (A.T Kearney,2005).Globalization has a lot to do with consumers. Consumers in India are now becomingmore informed, sophisticated and demanding. India is one of the youngest countriesin the world, and the attitudes of the Indian consumers are changing at a rapid pace.Indians have been the most confident consumers globally in the fourth quarter of2012, revealed a recent study by Nielsen. Consumer confidence in the countryincreased two points to 121 in Q4, 2012 from Q3, 2012. With Globalization more andmore Indians are becoming aware of westernized products and they feel thatpossession of global brands in front of their social groups (friends and families) givesthem a sense of status and prestige. It is therefore proposed that products andpossessions seem to have more of symbolic attributes rather than functional attributes.The Indian consumer, especially the urban clan, is a big force behind the growth ofluxury brands in the country. Indias luxury market is pegged to touch US$ 14.73billion by 2015, according to industry projections, from an estimated US$ 8.21 billionin 2013. Expanding class of high net-worth individuals (HNIs) in the country is themajor attraction for global brands to enter India.In the arena of global marketing, building strong brands has become a top priority formarketers. Beyond, the marketing mix variables (advertising, distribution, price andproduct quality), the consumer‟s perception is influenced by the equity of a brand.Lost in the innumerable brands flow, consumer needs to reach him/herself to a strongbrand, like an anchor, in which he can trust. Moreover, in numerous cases, in theprocess of buying, consumers are not only concern about the quality and price of aproduct but also other factors such as the brand‟s country-of-origin. Indeed many 7|Page
  8. 8. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYconsumers use country-of-origin (COO) stereotypes to evaluate products for example,“German cars are excellent”, “French wine is the best quality”, “Japanese electronicsare reliable”, “Chinese clothes are bad quality” etc. These mental images enable theconsumer to judge on the “superiority” or “inferiority” of a product, depending ontheir perception of the country. Sometimes also, the sale of a specific brands productcould be simply forbidden in some country just because of the country-of-origin, likeCoca-Cola in Cuba, Myanmar and North Korea.As companies become global, managers must possess a thorough understanding ofthe attitudinal and behavioural characteristics of emerging consumer markets, becausewhat is known about consumers in one part of the world is not applicable toconsumers in other parts.Therefore, the study of consumer‟s perception of country-of-origin on brand equity inan emerging market like India is of great managerial implications. 8|Page
  9. 9. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY3.0 LITERATURE REVIEWBuilding strong brands has become a marketing priority for many organizations todaybecause it yields a number of advantages. Strong brands help the firm establish anidentity in the market place (Aaker, 1996), less vulnerability to competitive actions,larger margins, greater intermediary co-operation and support and brand extensionopportunities (Delgado-Ballester and Munuera-Aleman, 2005). In measuring theoverall value of a brand, marketing researchers and practitioners have begun toexamine the concept of “brand equity” (Aaker, 1991; Baldinger, 1990; Keller, 1993)which has been referred to the tremendous value that the brand name brings to theproducers, retailers and consumers of the brand.The equity of a brand is the result of consumers‟ perception of it which is influencedby many factors. Brand equity cannot be fully understood without carefullyexamining its sources, that is, the contributing factors to the formation of brand equityin the consumers‟ mind. Most of the brand equity research focuses on the marketingmix variables such as advertising, distribution, price and product quality as thecontributing factors (Cobb-Walgren et al., 1995; Yoo et al., 2000). However, notmuch attention is given to the non marketing mix factors. In the process of buying,consumers are not only concern about the quality and price of a product but also otherfactors such as the brand‟s country-of-origin. Many consumers use country-of-originstereotypes to evaluate products for example, “Japanese electronics are reliable”,“German cars are excellent”, “Italian pizza are superb”. Many consumers believe thata “Made in . . .” label means a product is “superior” or “inferior” depending on theirperception of the country. Brands from countries that have a favorable imagegenerally find that their brands are readily accepted than those from countries withless favorable image. Since country of origin could be one of the influencing factorsin determining consumers‟ choice, the purpose of this study is to explore the effectsof brand‟s country-of-origin image on the formation of brand equity.To address this objective, this literature review is organized as follows. I begin bypresenting the theoretical framework that depicts the linkages between the variablesof interest. Consequently, I presented a definition of the constructs under study, anddiscussed the way brand‟s country-of-origin image contributes to the development ofbrand equity. 9|Page
  10. 10. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYTHEORITICAL FRAMEWORK:The conceptual framework of brand equity that guides this study appears in the figurebelow. This framework is built upon the conceptual framework for brand equitypresented by Yoo et al. (2000) by incorporating country-of-origin image as theantecedent of brand equity. In this model, the country-of origin image is treated as theindependent variable, the dimensions of brand equity as the mediating variables andbrand equity as the dependent variable. The brand equity construct shows howindividual dimensions of brand equity are related to the brand equity. The antecedentof brand equity is related to brand equity through the mediation of the dimensions ofbrand equity. Therefore, to create, to manage, and to exploit brand equity, therelationship between the dimensions of brand equity and brand equity, and therelationships between the antecedents and brand equity dimensions must bedetermined. A Conceptual Framework for Brand Equity, Yoo et al. (2000). 10 | P a g e
  11. 11. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYBRAND EQUITY:Brand equity refers to the tremendous value inherent in a well known brand name. Itappears when consumers willingly pay more for the same level of quality due to theattractiveness of the name attached to the product (Bello and Holbrook, 1995). In themarketing literature, brand equity is referred to the intangible brand properties. Brandequity arose from customer brand-name awareness, brand loyalty, perceived brandquality and favorable brand symbolisms and associations that provide a platform for acompetitive advantage and future earning streams (Aaker, 1991). The equity that thestrong brand possesses can give the company a loyal consumer franchise that couldbring substantial returns to the firm. Similarly, the 1989 Marketing Science Institutedefines brand equity as:“. . . the value that is added by the name and rewarded in the market with better profitmargins or market shares. It can be viewed by customers and channel members asboth a financial asset and as a set of favorable associations and behaviors.”From these definitions, brand equity can be said as the value incrementality due tobrand name. Although the classic definition of brand equity refers to the added valueof the brand endowed by its name, recent writings about brand equity have expandedits definition to include a broad set of attributes that drive customer choice (e.g. Yooet al., 2000; Rust et al., 2001). Regardless of its definitions, brand equity actuallyrepresents a product‟s position in the minds of consumers in the marketplace. It isprecisely the well-established representation and meaningfulness of the brand in theminds of consumers that provides equity for the brand name. Therefore, what theconsumers think of a particular brand determines the value it has to its owner. Assuggested by Kim (1990), a brand is the totality of thoughts, feelings, sensations, andassociations it evokes. Therefore, a brand is said to have equity if it has the ability toinfluence the behavior of those who behold the brand, routinizing their preference,attitude and purchase behavior. Thus, for the purpose of this study brand equity isdefined as the “consumers‟ favoritism towards the focal brand in terms of theirpreference, purchase intention and choice among brands in a product category, thatoffers the same level of product benefits as perceived by the consumers.” The 11 | P a g e
  12. 12. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYconsumers‟ preference, intention to purchase, and brand choice to a brand indicate theconsumers‟ favorable responses to the marketing mix elements of the brand incomparison with other brands. Since customer-based brand equity occurs when theconsumer is familiar with the brand and holds some favorable, strong, unique brandassociations in memory (Keller, 1993), preference, purchase intention and choicebehavior of a brand indicates the existence of brand equity.BRAND EQITY DIMENSIONS AND BRAND EQUITY:The marketing literature contains empirical research on the linkages between each ofthe dimensions of brand equity (brand awareness, brand loyalty, perceived quality,and brand associations) and brand equity. The value of a brand or brand equity islargely created by brand loyalty. Aaker (1996) has contemplated that to a greaterextent, the equity of a brand depends on the number of people who purchase itregularly. The regular buyers have considerable value because they represent arevenue stream for the firm. Thus, the concept of brand loyalty is a vital componentof brand equity. It has been found to have a positive and direct role in affecting brandequity (Atilgan et al., 2005). If customers are loyal to a brand even in the face ofcompetitor‟s brands with superior features, it means that the brand has a substantialvalue to the customers.The equity of a brand is partly measured in terms of the awareness it evokes. The roleof brand awareness in brand equity depends on the level of awareness that isachieved. The higher the level of awareness the more dominant is the brand, whichwill increase the probability of the brand being considered in many purchasesituations. Therefore, raising the level of awareness increases the likelihood that thebrand will be in the consideration set (Nedungadi, 1990) which will influenceconsumers‟ decision making. Past researches have shown that brand awareness is adominant choice tactic among consumers (e.g. Cobb Walgren et al., 1995; D‟Souzaand Rao, 1995; Reynolds and Olson, 1995). If the awareness of brands is high amongconsumers, it means the brand is familiar and reputable. Studies show that consumers 12 | P a g e
  13. 13. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYwho recognize a brand name are more likely to buy that brand because familiarproducts are normally preferred to those that are less familiar (Hoyer, 1990;Macdonald and Sharp, 2000).Purchase decisions that are in favor of the brand helps in building brand equity.Consumers‟ perceived quality of a brand is due to their perception process involvedin the decision-making process. High perceived quality occurs when consumersrecognize the differentiation and superiority of the brand relative to competitors‟brands. This will influence their purchase decisions and would drive them to choosethe brand rather than competitors‟ brands. This implies that high perceived qualitywould influence consumer‟s choice, which will consequently lead to an increase inbrand equity. To the marketer, high perceived quality could support a premium price,which in turn can create a greater profit margin for the firm that can be reinvested inbrand equity (Yoo et al., 2000). Aaker (1991) also suggest that perceived quality is anassociation that is usually central to brand equity. Brand equity is largely supportedby the associations that consumers make with a brand, which contributes, to a specificbrand image. Brand associations are complicated and connected to one another, andconsist of multiple ideas, episodes, instances, and facts that establish a solid networkof brand knowledge (Yoo et al., 2000). It is formed as a result of the consumer‟sbrand belief, which can be created by the marketer, formed by the consumer himselfthrough direct experience with the product, and/or formed by the consumer throughinferences based on existing associations (Aaker, 1991). Consumers‟ favorable brandbeliefs will influence their purchase intentions and choice of the brand. Thesebehavioral responses have implications on brand equity. In the context of productssuch as electrical goods, brand associations would represent the functional andexperiential attributes offered by the specific brand. The intangible qualities thatconsumers associate the brand with, such as innovativeness, distinctiveness,dynamism and prestige are also considered as brand associations. The combination oftangible and intangible attributes creates a brand identity, that is “a unique set ofbrand associations that the brand strategist aspires to create or maintain,” whichdrives brand associations (Aaker, 1996). Therefore, the identity of the specific brandmay impact brand associations and ultimately brand equity. 13 | P a g e
  14. 14. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYCOUNTRY OF ORIGIN:Country of origin (CO) is a potentially powerful image variable that can be used togain competitive advantage in international marketing. The fact that images have thepower to arouse and thereby influence a consumers choice process is widelyrecognized. During the development of a firms marketing communication mix, themarketing or advertising manager is often actively involved in creating, adapting,shaping, nurturing, monitoring, maintaining, and managing images.Country-of-origin (CO) image refers to "buyers opinions regarding the relativequalities of goods and services produced in various countries". Among the imagevariables in the international advertisers toolkit, the CO variable is feasibly the mostpotent if skillfully applied.BRAND’S COUNTRY OF ORIGIN IMAGE:"It has been found that all products originating in foreign countries are subject tocountry-of-origin [image] effects, further, CO-image studies in general show that"consumers have significantly different ... general perceptions about products made indifferent countries."There are at least four different ways in which the country of origin of a productcould affect its evaluations.  As a product attribute whose implications combine with other attributes to influence evaluations,  As a signal to infer more specific product characteristics,  As a heuristic (to simplify the evaluation task), and  As a standard relative to which the product is compared. 14 | P a g e
  15. 15. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYThe manner in which country of origin is used in evaluations was expected to dependon subjects familiarity with the product being judged, the amount of attributeinformation available, the importance of the evaluation, and the order in whichcountry-of-origin and intrinsic attribute information was received.  Subjects familiarity with the product being judged,  The amount of attribute information available,  The importance of the evaluation, and  The order in which country-of-origin and intrinsic attribute information was received.In fact, country of origin appeared to function in three of the four ways considered,but there was little evidence that it served as a heuristic in any condition. Resultsconfirm the need to consider the use of country-of-origin information in severaldifferent capacities simultaneously rather than assuming that its effects result from asingle underlying processThe fact that images have the power to arouse and thereby influence a consumerschoice process is widely recognized. During the development of a firms marketingcommunication mix, the marketing or advertising manager is often actively involvedin creating, adapting, shaping, nurturing, monitoring, maintaining, and managingimages.A variety of images (e.g., those associated with advertisements, symbols, logos,stores, brands, and corporations) can enhance or diminish a marketing or advertisingmanagers ability to cope with competition. The equity inherent in vivid imagesevoked by brand, corporate, or store names is obvious. After studying the state ofresearch related to brand, store, advertising, and company images, Zinkhan and hiscollaborators (Dobni and Zinkhan 1990; Johnson and Zinkhan 1990; Villanova,Zinkhan, and Hyman 1990) reported several findings:(1) Images play an important role in influencing the way the public responds tobrands, products, services, stores, promotion, and organizations, 15 | P a g e
  16. 16. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY(2) The importance of image is rooted in image theory, which maintains that humanbehavior is directed by individuals images of their environment(3) An augmented product has not only a physical nature, but also a social andpsychological one, and hence the sets of feelings, ideas, and attitudes that consumershave about products ("their image") are crucial to purchase choice.(4) Image is a vital concept for marketing managers,(5) The effectiveness of image variables depends on the precise definition anddelineation of their various components and the appropriateness and accuracy withwhich they are measured,(6) Most important, because of the variations in definition, conceptualization ofcomponents, and measurement, much progress in research is needed before trulyeffective image measures (and hence images) can be developed.Country-of-origin (CO) image refers to "buyers opinions regarding the relativequalities of goods and services produced in various countries". Among the imagevariables in the international advertisers toolkit, the CO variable is conceivably themost potent if skillfully applied. It is often said that brand names like McDonaldsare worth millions. If so, how many billions is Germanys image worth? A fewauthors have questioned the magnitude of importance of CO image in affectingchoice behavior but most acknowledge its salience in overall product evaluation andas a proxy for other, more intrinsic, qualities.Internationally, CO serves as a useful extrinsic cue (and as a surrogate for difficult-to-evaluate intrinsic characteristics such as quality and performance) because consumerstend to be less familiar with foreign than with domestic products, "It has been foundthat all products originating in foreign countries are subject to country-of-origin[image] effects." 16 | P a g e
  17. 17. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYBRAND’S COUNTRY OF ORIGIN IMAGE AND BRANDEQUITY:Information-processing theory posits that consumers use product cues to form beliefsand evaluations about a product, which in turn influence their purchase behaviours.Generally, the country-of-origin is considered as an extrinsic product cue (Bilkey andNes, 1982; Cordell, 1992; Erickson et al., 1984; Han and Terpstra, 1988; Hong andWyer, 1989, 1990; Thorelli et al., 1989). Consumers are known to developstereotypical beliefs about products from particular countries and the attributes ofthose products. Therefore the country-of-origin image has the power to arouseimporters‟ and consumers‟ belief about product attributes, and to influenceevaluations of products and brands (Srikatanyoo and Gnoth, 2002). The country oforigin denotes the home country for a company or the country that consumers inferfrom brand name (Han and Terpstra, 1988). One of the first conceptualizations of thecountry-of-origin phenomenon was that of Nagashima (1970). He defined the imagethat consumers associate with a given country-of-origin as:. . . the picture, the reputation, the stereotype that businessmen and consumers attachto products of a specific country. This image is created by variables such asrepresentative products, national characteristics, economic and political background,history, and traditions (Nagashima, 1970).Some other researchers view country image as consumers‟ general perceptions aboutthe quality of products made in a particular country (Han and Terpstra, 1988;Parameswaran and Yaprak, 1987) while some others view it as the “defined beliefsabout a country‟s industrialization and national quality standard” (Srikatanyoo andGnoth, 2002). In the existing literature, there is a proliferation of studies to documentcountry-of-origin perspectives. From these studies, marketers and consumer behaviorresearchers generally accept that a product‟s or brand‟s country-of-origin is animportant influencing factor in consumer decision-making (Khachaturian andMorganosky, 1990; Knight, 1999; Piron, 2000). Most of the previous studies suggestthat country-of-origin information which is indicated by the “Made in . . . ” labelserves several purposes in consumer decision-making. It act as a salient attribute inconsumer product evaluation (Johansson, 1989), stimulates consumer‟s interest in theproduct (Hong and Wyer, 1989), affect behavioural intentions through social norms(Fishbein and Ajzen, 1975) and influences buyer behavior through affective processes 17 | P a g e
  18. 18. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYas in the case of consumer‟s patriotic feelings about their own country (Han andTerpstra, 1988). The overall evaluation of products is influenced by countrystereotyping, that is, the image that consumers have about a certain country willinfluence their perceptions of products from that country (Bilkey and Nes, 1982).Since consumers‟ perception of a particular country-of-origin influence theirevaluation of products from that country, this will influence their preference,purchase intention and choice of a particular brand. Obviously, this has implicationson the brand‟s equity. 18 | P a g e
  19. 19. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY4.0 OBJECTIVE OF STUDY - TO KNOW HOW THECOO IMAGE AFFECTS THE BUYING BEHAVIOUR OF THECONSUMERS5.0 METHODOLOGY5.1 RESEARCH OBJECTIVE 1. To know whether consumers attach importance to the country where a product is manufactured 2. To know whether this piece of information is available and accessible to consumers 3. To know that, to what extent does brand image tend to blur origin labeling information 4. To know whether consumers decision to buy a branded product from their preferred country depends on price. 5. To know whether consumer‟s demand for branded product is category specific when buying decision is affected by price. 19 | P a g e
  20. 20. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.2 RESEARCH DESIGNResearch Method – research will be based on survey method. Survey will be basedon a structured questionnaire related to brands and their Country of Origin.Sample Group – Sample group will be a mix of women and men & college studentswho frequently buy branded products.Sampling method – Sampling method is Judgmental sampling and RandomSampling.In Judgmental sampling questionnaire is administered to sample group consisting ofworking men/ women and college students. The group frequently purchases brandedproducts and are a good sample to identify the brand and COO awareness. Thesample could be a good representation of the population.Method of administering questionnaire:In case of judgmental sampling the questionnaires are administered through:  e-mails  hard copy of the questionnaireIn case of random sampling the questionnaire is administered through socialnetworking sites using free online survey with the help of www.surveymonkey.com .In this case the questionnaire is set on surveymonkey.com and the links are sharedthrough email and social networking sites (Facebook and Linked In).Sample size –The total sample size consists of 75 respondents . 20 | P a g e
  21. 21. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.3 DATA COLLECTION AND PREPARATIONSample Questionnaire: Sl Question Priority COO - Counrtry Of Origon - The country where the product is manufactured If you are to buy a TV from a list brands and only information available is the country of its 1 manufacture (COO). What will be your priority list? Top priority is 1 , least priority is 5 South Korea Japan China USA India If you are to buy a CAR from a list brands and only information available is the country of its 2 manufacture (COO). What will be your priority list? Top priority is 1 , least priority is 5 Germany South Korea Japan America India If you are to buy a wrist watch from a list brands and only information available is the country of its 3 manufacture (COO).What will be your priority list? Top priority is 1 , least priority is 5 France 21 | P a g e
  22. 22. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY Switzerland China America India If Volkswagen is being produced from different plants as mentioned below, what will be your 4 priority to pick the CAR? What will be your priority list? Top priority is 1 , least priority is 5 Japan South Korea Germany China India If a TV manufactured by a company based in India and costs Rs. 25,000.00 and a similar TV is 5 manufactured by a company based in Japan and also costs Rs. 25,000.00. Which product do you prefer to buy? Product from India Product from Japan If a TV manufactured by a company based in India and costs Rs. 17,000.00 and a similar TV is 6 manufactured by a company based in Japan and costs Rs. 25,000.00. Which product do you prefer to buy? Product from India Product from Japan If small car manufactured by a company based in Germany and costs Rs. 4.89 Lakh and a similar 7 small car is manufactured by a company based in Japan and costs Rs. 4.55 Lakh. Which product do you prefer to buy? 22 | P a g e
  23. 23. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY Product from Germany Product from Japan If small car manufactured by a company based in Germany and costs Rs. 4.89 Lakh and a similar 8 small car is manufactured by a company based in Japan and costs Rs.4.89 Lakh. Which product do you prefer to buy? Product from Germany Product from Japan9. Do you know from which country these brands are from? If yes, please mention thecountry name (please do not browse information from internet/other secondarysources to answer this question) Yes Country Name Brand No (if Yes)LonginesTissotMotorollaPanasonicRenaultChevrolet 23 | P a g e
  24. 24. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4 DATA INTERPRETATION AND ANALYSISAnalysis is basically interpretive only due to the kind of data available for analysis.5.4.1Research objective no 1 - Consumers still attach importance to the countrywhere a product is manufactured.5.4.1.1Question no 1 – If you are to buy a TV from a list brands and only informationavailable is the country of its manufacture (COO). What will be your priority list?Top priority is 1 , least priority is 5Responses of the respondents is compiled in the below matrix. Based on the datacompiled it is pretty clear that, people attach importance to the country where aproduct is manufactured. In response to the question above, almost no respondent iswilling to buy TV from India. As far as the country image is concerned, Japan has thebest image of manufacturing TVs. Rank 1 Rank 2 Rank 3 Rank 4 Rank 5South Korea 10 23 32 9 1Japan 57 13 3 2 0China 6 15 9 41 4USA 2 24 31 16 2India 0 1 0 7 67 24 | P a g e
  25. 25. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 80 70 60 South Korea 50 Japan 40 China 30 USA 20 India 10 0 Rank 2 Rank 3 Rank 4 Rank 5Based on the survey, consumers prefer to buy TVs based on the following priority:Japan – 1st priorityUSA – 2nd prioritySouth Korea – 3rd priorityChina – 4th priorityIndia – 5th priorityAs can be seen clearly from the above data Japan tops the priority list followed byUSA, South Korea, China and India. People believe that electronic products thatcome from Japan supersede electronic goods from other countries. On the other handit is perceived that electronic goods from India may be inferior in quality and thusIndia occupies the last position in the ranking.The point here is, Japan has a very good COO image when it comes tomanufacture of electronic products. 25 | P a g e
  26. 26. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 5.4.1.2 Question no 2 - If you are to buy a CAR from a list of brands and only information available is the country of its manufacture (COO). What will be your priority list? Top priority is 1 , least priority is 5 Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, most of the respondents prefer to buy a car from Germany. Rank 1 Rank 2 Rank 3 Rank 4 Rank 5Germany 50 12 6 6 1South Korea 12 14 29 19 1Japan 13 26 11 18 7America 6 15 20 24 10India 2 18 9 13 33 26 | P a g e
  27. 27. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 35 30 25 Germany 20 South Korea 15 Japan America 10 India 5 0 Rank 2 Rank 3 Rank 4 Rank 5Based on the survey, consumers prefer to buy a CAR based on the following priority:Germany – 1st priorityJapan – 2nd prioritySouth Korea– 3rd priorityAmerica – 4th priorityIndia – 5th priorityThe data clearly depicts that people perceive automobiles from Germany to besuperior to rest of the world. The next best option to buy an automobile would beJapan followed by South Korea, America and India. Once again India takes on thelast rank as it is believed that Indian automobiles do not match internationalstandards.The point here is, Germany has a very good COO image when it comes tomanufacture automobiles. 27 | P a g e
  28. 28. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4.1.3Question no 3 - If you are to buy a wrist watch from a list brands and onlyinformation available is the country of its manufacture (COO).What will be yourpriority list? Top priority is 1 , least priority is 5Responses of the respondents is compiled in the below matrix. Based on the datacompiled it is pretty clear that, people attach importance to the country where aproduct is manufactured. In response to the question above, most of the respondentsprefer to buy a wrist watch from Switzerland. Rank 1 Rank 2 Rank 3 Rank 4 Rank 5France 25 23 12 11 4Switzerland 37 19 10 7 2China 2 3 11 10 49USA 5 18 28 20 4India 6 12 14 27 16 28 | P a g e
  29. 29. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 60 50 40 France Switzerland 30 China USA 20 India 10 0 Rank 2 Rank 3 Rank 4 Rank 5Based on the survey, consumers prefer to buy a wrist watch based on the followingpriority:Switzerland– 1st priorityFrance – 2nd priorityUSA – 3rd priorityIndia – 4th priorityChina – 5th prioritySwiss watches are well renowned and perceived to be one of the best in the world.Thus Switzerland tops the ranking list in case of wrist watch manufacture, followedby France, USA, India and China. China has an image of dumping its goods in othercountries and thus it is believed by most of the people that Chinese wrist watches donot match the world standards.The point here is, Switzerland has a very good COO image when it comes tomanufacture of wrist watch, France is close to it. 29 | P a g e
  30. 30. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 5.4.1.4 Question no 4 - If Volkswagen is being produced from different plants as mentioned below, what will be your priority to pick the CAR? What will be your priority list? Top priority is 1 , least priority is 5 Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, consumers prefer to buy a branded CAR from a preferred country. When these responses are read in conjunction with responses to Question No 2 it can be inferred that COO image prevails in the minds of the consumers. As far as the country image is concerned, Germany has the best image of manufacturing CARs. Rank 1 Rank 2 Rank 3 Rank 4 Rank 5Japan 7 45 11 8 4South Korea 5 8 39 18 5Germany 59 10 4 2 0China 2 3 1 16 53India 2 9 20 31 13 30 | P a g e
  31. 31. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY 60 50 40 Japan South Korea 30 Germany 20 China India 10 0 Rank 2 Rank 3 Rank 4 Rank 5Based on the survey, consumers prefer to buy branded CARs based on the followingpriority:Germany – 1st priorityJapan – 2nd prioritySouth Korea– 3rd priorityIndia – 4th priorityChina – 5th priorityThus it is clear that irrespective of brand name people prefer to buy products from thecountry of origin as they perceive it to be high in quality.The point here is, Germany has a very good COO image when it comes tomanufacture of automobiles. Even when a product is branded, the COO plays arole in successful adoption of the product by the consumer. 31 | P a g e
  32. 32. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4.2Research objective no 2 – Country of Origin information is available andaccessible to consumersThe data shows that when people are well informed about the country of origin, theyall the more prefer to buy the product of that country as they perceive that it would bea quality product.Various advertisements tend to propose the Country of Origin to gain advantage fromconsumer‟s perception about the COO.Examples:This tendency is specially seen in the luxury segments including the luxury wristwatches and cars. 32 | P a g e
  33. 33. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4.3Research objective no 3 - To what extent does brand image tend to blur origin-labeling information.To analyze this issue I have considered six (6) well known brands in three (3)different segments: i) Electronic goods , ii) Automobiles and iii) Wrist watches.The brands are mostly foreign brands. I used these well known brands, to check howthese brands are perceived by the consumers.The Brands are: Brand Name Country of Origin Longines Switzerland Tissot Switzerland Motorola USA Panasonic Japan Renault France Chevrolet USABased on the results obtained from the survey, I segregated the brands into followingcategories:  Strong Brand – COO Unknown  Strong Brand – COO Weak  Brand and COO Complement Each Other  COO awareness is very highSample size is 75 33 | P a g e
  34. 34. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITYBasis for Segregation: Sl. CRITERION COO AWARENESS 1 No of correct answers to STRONG BRAND – questionnaire equal to ZERO COO UNKNOWN 2 No of correct answers to STRONG BRAND – questionnaire (>1, <=7) {i.e. COO WEAK Correctness below 10%} 3 No of correct answers to BRAND & COO questionnaire (>7, <=18) {i.e. COMPLEMENT EACH Correctness between 10%-25%} OTHER 4 No of correct answers to COO AWARENESS questionnaire (>18) {i.e. VERY HIGH Correctness above 25%}5.4.3.1STRONG BRAND – COO UNKNOWN How Sample Correct Wrong No Brand Many Size Answers Answers Answers Answered Longines 75 35 0 35 40Since number of correct answers to the country of origin is zero, it is clear that peopledon‟t know the country to which the above brand “Longines” belongs, even thoughthe brand itself is very well known to them. 34 | P a g e
  35. 35. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4.3.2STRONG BRAND – WEAK COO How Sample Correct Wrong No Brand Many Size Answers Answers Answers Answered Renault 75 21 3 18 54In case of Renault, though the brand is well known to people, not many people knowabout its country of origin. Out of 21 answers that were received, only three wereright, depicting the correctness to be less than 10% and thus weak COO.5.4.3.3BRAND AND COO COMPLEMENT EACH OTHER How Sample Correct Wrong No Brand Many Size Answers Answers Answers Answered Tissot 75 21 16 5 54 Motorola 75 28 9 19 47In case of Tissot and Motorola, brand and COO complement each other that is thebrand is well known to people and most of the people know about the COO as well. 35 | P a g e
  36. 36. EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY5.4.3.4COO AWARENESS IS VERY HIGH – BRANDS THAT SCORED HIGH ONCOO AWARENESS Sample How Many Correct Wrong No Brand Size Answered Answers Answers Answers Panasonic 75 27 19 8 48 Chevrolet 75 29 21 8 46Panasonic and Chevrolet, the two famous brands rank high on COO awareness as thecorrectness of answers is more than 25%. People are well aware of the brands andwhere the brands belong to. 36 | P a g e
  37. 37. Effect of Country of Origin on Brand Image5.4.4(A)Research Objective no 4: To know whether consumers decision to buy a brandedproduct from their preferred country depends on price.5.4.4(B)Research Objective no 5: To know whether consumer’s demand for brandedproduct is category specific, when buying decision is affected by price.Question no 5 - Offer ----Product – TelevisionPrice: Rs. 25,000.00 – COO – IndiaPrice: Rs. 25,000.00 – COO – JapanWhen the above offer is given to 75 respondents, 57 respondents chose to buy the productof COO – Japan. 18 chose to buy from India.Responses: Product from India 18 Product from Japan 57 37 | P a g e
  38. 38. Effect of Country of Origin on Brand Image 24% Product from India 76% Product from JapanThe above data clearly illustrate that if the price of a product is same, people prefer tobuy it from the place which has a better image for that product. Japan is supposed to havehigh quality electronic products and thus people prefer to buy television from Japanrather than IndiaQuestion no 6 - Offer ----Product – Television;Price: Rs. 17,000.00 – COO – IndiaPrice: Rs. 25,000.00 – COO – JapanWhen the above offer is given to 75 respondents, 30 respondents chose to buy the productwith COO – Japan and 45 respondents chose to buy product with COO – India.Responses: Product from India 45 Product from Japan 30 38 | P a g e
  39. 39. Effect of Country of Origin on Brand Image 30, 40% 45, 60% Product from India Product from JapanThe above data shows that people are price sensitive and would prefer to buy productsthat are offered at a lower price. Price sensitivity surpasses the COO as can be seen fromthe response of people at large. If people feel that the price asked is more than what theyare willing to pay, they would buy the product from the next, cheaper and best alternativeavailable, rather than pay the higher price for the reputed product.Interpreting from the responses for question no 5 & 6, it can be inferred that,consumer switches his preferences in buying brands/ products due to price variation inthe products. This result supports the research objective no 4. 39 | P a g e
  40. 40. Effect of Country of Origin on Brand ImageQuestion no 7 - Offer ----Product – Small Car;Price: Rs. 4.89 Lac – COO – GermanyPrice: Rs. 4.55 Lac – COO – JapanWhen the above offer is given to 75 respondents, 54 respondents chose to buy the productwith COO – Germany and 21 respondents chose to buy product with COO – Japan.Responses: Product from Germany 54 Product from Japan 21 28% Product from Germany 72% Product from Japan 40 | P a g e
  41. 41. Effect of Country of Origin on Brand ImageQuestion no 8 - Offer ----Product – Small Car;Price: Rs. 4.89 Lac – COO – GermanyPrice: Rs. 4.89 Lac – COO – JapanWhen the above offer is given to 75 respondents, 60 respondents chose to buy the productwith COO – Germany and 15 respondents chose to buy product with COO – Japan.Responses: Product from Germany 60 Product from Japan 15 20% Product from Germany 80% Product from Japan 41 | P a g e
  42. 42. Effect of Country of Origin on Brand ImageIt can be seen from the above two questions that people prefer to buy the car from itsCOO even when the price is higher than the other country. The number of buyers for theGermany increases when the price is equal for both countries (Germany and Japan) ascompared to when it was higher for car made in Germany.Interpreting from the responses for question no 7 & 8, it can be inferred that,consumer switches his preferences in buying brands/ products due to price variation inthe products. This result supports the research objective no 4.But if we compare the effect of price on brand buying behavior of the consumer, incase of TV (i.e. set 5&6) and in case of CAR (i.e. set 7&8), we can see the change isnominal in case of car. This shows the impact of price on consumer buying behaviorwith respect to the nature of the goods being sold. This result supports the researchobjective no 5. 42 | P a g e
  43. 43. Effect of Country of Origin on Brand Image6.0 CONCLUSION The focus of this study is to examine the relationship between country of origin and brand equity, which is mediated from the brand equity dimensions as discussed in the literature review portions. The study found that country of origin image has a positive and significant effect on brand equity. The image of a country that consumers perceive is one of the several factors that consumers consider in making their purchase decision. Consumer‟s perception towards country of origin is often transferred to the brands originating from a good image country due to carry over effect. These consumers feel that brand from good image country is more reliable than brand from countries with unfavorable image. Marketers try to enhance and promote the good image of their brand‟s original country in order to enhance the overall image of the brand. Brands from the well established or good image countries generally are easier to sell than brands from countries with unfavorable image. The key findings of the study are-  Japan has a very good COO image when it comes to manufacture of electronic products.  Switzerland has a very good COO image when it comes to manufacture of luxury wrist watches.  Germany and Japan has a very good COO image when it comes to manufacture of cars. 43 | P a g e
  44. 44. Effect of Country of Origin on Brand Image  Germany has a very good COO image when it comes to manufacture of cars, even when a product is branded. The COO plays a role in successful adoption of the product by the consumer.  American and Japanese brands have high awareness of COO in the consumers.  COO awareness in the area electronic products is high.  Consumers attach importance to the country where a product is manufactured.  The information of COO is available and accessible to consumers through media and word of mouth.  To some extent brand image tend to blur origin labeling information.  Consumers are willing to buy products from their preferred countries, but as the price of products increases, consumer‟s willingness to buy those products decrease.  The consumers can buy a branded product from their preferred country even at a higher price. Their willingness depends on the type of product to be bought.Thus it can be concluded that image of country of origin plays a very important role indeciding what products consumer prefer. Therefore it can be said the relationshipbetween the brand equity and the country of origin is a strong one. In an uncertain worldwhere relationships are constantly under pressure, here is one that can be relied upon 44 | P a g e
  45. 45. Effect of Country of Origin on Brand Image7.0 RECCOMENDATIONSThe study has already established a positive relationship between brand equity andcountry of origin. This result has great implication in managerial practice. Marketersshould attach the country‟s identity to the brand in order to leverage its image. From thestudy it is found that except some luxury brands most of the brands do not mention theircountry of origin during promotion. Therefore it is suggested that the marketer use theconsumer‟s favorable perception about a country to create a long lasting image in hismind.Moreover it is found from the study that a country‟s image and a brand‟s image exists butin isolation. Consumers are able to relate a product either with a country or with thebrand as the complete information of a brand‟s origin is not known. Therefore what isneeded is the unification of these two isolated entities in order to capture a greater marketshare. 45 | P a g e
  46. 46. Effect of Country of Origin on Brand Image8.0 STUDY LIMITATIONS i) There are various factors that contribute in the formation of brand equity. In this study only consumer‟s perceptions about the country of origin to build up the brand equity has been considered. ii) The project restricts itself about the view of consumers within India. Therefore the results are geographically bound. iii) The study has been conducted within a specific class of people that limits the scope of the study. iv) Only three categories of product have been considered to study the perception of the consumers. The image of a country is formed by different categories of products which have been bypassed in this study. v) The use of judgment and random sample is an additional limitation to the project. The fact that data will be obtained solely from one geographical location, will create uncertainty about the sample representing the entire population. 46 | P a g e
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  49. 49. Effect of Country of Origin on Brand Image18. Fishbein, M. and Ajzen, I. (1975), Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research, Addison-Wesley Publishing, Reading, MA.19. Han, C.M. and Terpstra, V. (1988), “Country-of-origin effects for uni-national and bi-national products”, Journal of International Business Studies, summery, pp. 235-55.20. Hong, S.T. and Wyer, R.S. (1989), “Effects of country-of origin and product attribute information on product evaluation: an information processing perspective”, Journal of Consumer Research, Vol. 16 No. 2, pp. 175-87.21. Hong, S.T. and Wyer, R.S. (1990), “Determinants of product evaluation: effects of the time interval between knowledge of a product‟s country-of- origin and information about its specific values”, Journal of the Consumer Research, Vol. 17, December, pp. 277-88.22. Hoyer, W.D. (1990), “The effects of brand awareness on choice for a common, repeat-purchase product”, Journal of Consumer Research, Vol. 17 No. 2, pp. 141-8.23. Igbaria, M., Livari,J. and Maragahh, H. (1995), “Why do individuals use computer technology? A Finnish case study”, Information and Management, Vol. 29 No. 5,pp. 227-38.24. Jacoby, J.Olson, J.C. and Haddock, R.A. (1971), “Price, brand name and product composition characteristics as determinants of perceived quality”, Journal of Applied Psychology, Vol. 55 No. 6, pp. 570-9.25. Johansson, J. (1989), “Determinants and effects of the use of „made in‟ labels”, International Marketing Review, Vol. 6, pp. 47-58.26. Keller, K.L. (1993), “Conceptualizing, measuring, and managing customer- based brand equity”, Journal of Marketing, Vol. 57, January, pp. 1-22. 49 | P a g e
  50. 50. Effect of Country of Origin on Brand Image27. Khachaturian, J.L. and Morganosky, M.A. (1990), “Quality perceptions by country-of-origin”, International Journal of Retail & Distribution Management, Vol. 18 No. 5, pp. 21-30.28. Kim, P. (1990), “A perspective on brands”, The Journal of Consumer Marketing, Vol. 7 No. 4, pp. 63-7.29. Knight, G.A. (1999), “Consumer preferences for foreign and domestic products”, Journal of Consumer Marketing, Vol. 16, No. 2, pp. 1-11.30. Macdonald, E.K. and Sharp, B.M. (2000), “Brand awareness effects on consumer decision making for a common, repeat purchase product: a replication”, Journal of Business Research, Vol. 48 No. 1, pp. 5-15.31. Nagashima, A. (1970), “A comparison of Japanese and US attitudes toward foreign products”, Journal of Marketing, Vol. 34 No. 1, pp. 68-74.32. Nedungadi, P. (1990), “Recall and consumer consideration sets: influencing choice without altering brand evaluations”, Journal of Consumer Research, Vol. 17 No. 3, pp. 263-76.33. Nunnally, J.C. (1978), Psychometric Theory, 2nd ed., McGraw-Hill, New York, NY.34. Parameswaran, R. and Yaprak, A. (1987), “A Cross-national comparison of consumer research measures”, Journal of International Business Studies, Vol. 18, pp. 35-49.35. Piron, F. (2000), “Consumers‟ perceptions of the country-of-origin effect on purchasing intentions of (in) conspicuous products”, Journal of Consumer Marketing, Vol. 17 No. 4, pp. 308-21.36. Reeves, C.C. (1992), Quantitative Research for the Behavior Sciences, John Wiley & Sons, New York, NY. 50 | P a g e
  51. 51. Effect of Country of Origin on Brand Image37. Reynolds, T. and Olson, J. (1995), Identifying a Brand‟s Key Equities, Report No. 95-111, Marketing Science Institute. Working Paper Series, Marketing Science Institute, Cambridge, MA, September.38. Is English a brand: Language of Origin‟s Influence on Product Evaluation, Judy F Chen, H.T.Chang, The Overseas Chinese Institute Of Technology / National Changhua University Of Education.39. Country-of-Origin Effects on Consumers Willingness To Buy Foreign Products: An Experiment in Consumer Decision Making – Yi Cai, University of Georgia, Brenda Cude, University of Georgia, Roger Swagler, University of Georgia.40. The influence of country of origin and brand on product evaluation and the implications thereof for location decisions - Günter Schweiger, Thomas Otter and Andreas Strebinger.41. The Effects of the Country of Origin on the Evaluation of products: A State of the Art Review and Research Propositions - Emmanuel Cheron and Jan Propeck.42. Country of Origin and Confidence in Quality of Imported Foods in China - John Knight and Hongzhi Gao, Marketing Department, Otago School of Business, University of Otago.43. Country of origin information: a user and content evaluation - Beverley Morgan, Verity Gelsthorpe, Heaven Crawley and Gareth A. Jones.44. The Impact of Country-of-Origin on Product Choice: A Developing Country Perspective Saari Md. Nooh, State Administrative Officer, State Government of Johore, Johore, Malaysia; Thomas L. Powers, The University of Alabama at Birmingham. 51 | P a g e
  52. 52. Effect of Country of Origin on Brand Image10.0 ANNEXURESA template of the Survey questionnaire along with the rationale behind asking thequestions. Sl Question Rationale COO - Counrtry Of Origon - The country where the product is manufactured To know the consumer‟s preferred 1 If you are to buy a TV from a list brands and only country to information available is the country of its manufacture purchase (COO). What will be your priority list? Top priority is 1 electronic , least priority is 5 product South Korea Japan China USA India To know the consumer‟s If you are to buy a CAR from a list brands and only preferred 2 information available is the country of its manufacture country to (COO). What will be your priority list? Top priority is 1 purchase , least priority is 5 automobile Germany South Korea Japan 52 | P a g e
  53. 53. Effect of Country of Origin on Brand Image America India To know the consumer‟s If you are to buy a wrist watch from a list brands and preferred3 only information available is the country of its country to manufacture (COO).What will be your priority list? Top purchase luxury priority is 1 , least priority is 5 wrist watches France Switzerland China America India To know If Volkswagen is being produced from different plants whether country4 as mentioned below, what will be your priority to pick of origin prevails the CAR? What will be your priority list? Top priority over brand name is 1 , least priority is 5 or not. Japan South Korea Germany China India To know whether consumer‟s5 If a TV manufactured by a company based in India and preference to costs Rs. 25,000.00 and a similar TV is manufactured buy a similar by a company based in Japan and also costs Rs. product at a 25,000.00. Which product do you prefer to buy? same price depends on 53 | P a g e
  54. 54. Effect of Country of Origin on Brand Image country of origin Product from India Product from Japan To know whether consumer‟s preference to6 buy a product If a TV manufactured by a company based in India and based on country costs Rs. 17,000.00 and a similar TV is manufactured of origin is by a company based in Japan and costs Rs. 25,000.00. affected by price Which product do you prefer to buy? difference Product from India Product from Japan To know whether consumer‟s If small car manufactured by a company based in preference to7 Germany and costs Rs. 4.89 Lakh and a similar small buy a small car car is manufactured by a company based in Japan and at a same price costs Rs. 4.55 Lakh. Which product do you prefer to depends on buy? country of origin Product from Germany Product from Japan To know whether consumer‟s preference to8 If small car manufactured by a company based in buy a small car Germany and costs Rs. 4.89 Lakh and a similar small country of origin car is manufactured by a company based in Japan and is affected by costs Rs.4.89 Lakh. Which product do you prefer to price difference buy? and any difference in 54 | P a g e
  55. 55. Effect of Country of Origin on Brand Image magnitude from question no. 6. Product from Germany Product from Japan9. Do you know from which country these brands are from? If yes, please mention thecountry name (please do not browse information from internet/other secondary sources toanswer this question)Rationale: To what extent does brand image tend to blur origin-labeling information ofthe brands under study. Yes Country Name Brand No (if Yes)LonginesTissotMotorollaPanasonicRenaultChevrolet 55 | P a g e

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