scholarly journals Advertising and country-of-origin images as sources of brand equity and the moderating role of brand typicality

2017 ◽  
Vol 12 (2) ◽  
pp. 153-170 ◽  
Author(s):  
Sandra Maria Correia Loureiro ◽  
Hans Ruediger Kaufmann

Purpose The purpose of this paper is twofold: first, to explore the influence of an individual’s attitude towards advertising and country-of-origin (COO) images (brand origin (BO) and country of manufacture (COM)) on brand equity creation; and second, to investigate how brand typicality moderates the effect of BO macro image on perceived quality. Design/methodology/approach The data to test the hypotheses were elicited from a consumer survey in the Greater Lisbon area (305 Portuguese consumers). The product category of smartphones was selected for two main reasons: it has not been extensively analysed in previous studies on the subject of brand equity; it is a device well-known to Portuguese consumers (particularly in the Greater Lisbon area). Three criteria guided the selection of the brands. The first criterion is to select brands which are well-known to consumers. The second is to choose brands with a distinctive BO and a main COM. The third and final criterion is to consider brands in different positions in the brand ranking. In order to estimate structural path coefficients, R2, Q2, and bootstrap techniques, the current study employs the partial least squares approach. Findings The results show that individuals’ attitudes towards advertisements have a positive impact on brand equity creation, whereas those towards the COM do not significantly influence brand equity creation. Attitudes towards BO only have a partial influence. Brand typicality, however, exerts a significant direct effect on brand equity dimensions and, hence, does not have a significant moderating effect. Research limitations/implications The authors suggest analysing the influence of COO on dimensions of brand equity considering consumer segmentation, types of industry and a range of brands, as well as different levels of consumer involvement with the product category. Several brands with the same COO should be analysed in order to understand whether the effects on brand equity depend on the product category. Although the current study is a first attempt to combine the potential effect of individuals’ attitudes towards advertisements and COO on creating brand equity, further research should examine additional potential antecedents of brand equity. Finally, cross-cultural studies are recommended. Practical implications Regarding managerial implications, three main aspects should be taken into consideration. First, creative, original and different advertising strategies are more effective than the COO in creating brand equity and, consequently, in building loyalty among smartphone consumers. Second, consumers do not tend to care about the place, country or region where the smartphone is produced, but the image of the country where the brand originated may be important. Finally, managers should be aware that, at least, in the smartphone sector, the way consumers create favourable associations with the brand and typicality, trust the company and consider it good value for money, are more effective in building brand loyalty than the perceived quality of the product/brand. Social implications Relating to the interrelationship between COO and brand equity, the results of the current study prove that the effects of COO are category specific. Therefore, more studies focussed on other contexts of products and brands are still needed to know in more detail how COO exerts an influence on brand equity dimensions. Even within a product category context, the results can depend on individual brands being analysed. Originality/value To the knowledge of the authors, this study is the first to investigate the dual (simultaneous) effect of individuals’ attitudes towards advertisements and COO images on brand equity dimensions. Adding to the originality of the paper, the category of smartphone with respect to brand equity has not been extensively analysed in previous studies.

2020 ◽  
Vol 54 (12) ◽  
pp. 2965-2987
Author(s):  
Yohan Bernard ◽  
Véronique Collange ◽  
Aurore Ingarao ◽  
Sarra Zarrouk-Karoui

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.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giovanna Pegan ◽  
James Reardon ◽  
Donata Vianelli

Purpose The purpose of this study is to seek to investigate whether and how country of origin (COO) cues – category-country image (CCI) and typicality – and importers’ domain-specific innovativeness (DSI) influence importers’ propensity to the trial new value and premium products. Moreover, it aims to understand whether and how the relationship between the COO effect and industrial purchase intentions is moderated by importers’ propensity to innovate (DSI). Design/methodology/approach International importers completed a quantitative online survey. Factor analysis was used to summarize the latent constructs into orthogonal scores. General linear modeling was applied to the scores to test the hypotheses. Findings The results indicate that importers’ propensity to trial value products is directly influenced by CCI and importers’ DSI. For premium products, typicality has a positive effect on their propensity to trial. Also, CCI and DSI have positive effects on the trial of value products, and the effect is more pronounced than for premium products. Importers’ DSI positively moderates CCI in premium product trials, while it negatively moderates typicality in value products. Practical implications This research provides important managerial implications for practitioners seeking to increase foreign sales, strengthening importers’ product perceived value through COO cues. Exporters should distinguish between value and premium products and, in the selection of international channel partners, they must be attentive to importers’ personal characteristics, such as their propensity to innovate. Exporters selling value products should communicate CCI more clearly and, when targeting innovative importers, opt for atypical products instead of traditional ones. For premium products, which require more complex decisions, exporters should especially underscore product typicality and, with innovative importers, emphasize positive CCI. Originality/value By focusing on the two critical issues of product selection and price levels, this study’s original contribution is to emphasize that, for the same product category, in industrial purchasing decisions of value versus premium products, the COO effect can be different. It also highlights the importance of investigating the COO effect by concentrating on industrial buyers’ personal characteristics, here the DSI of importers, as moderating variables.


2020 ◽  
Vol 29 (6) ◽  
pp. 783-801
Author(s):  
Chengchen Liu ◽  
Ya Zhang ◽  
Jing Zhang

Purpose There is growing interest among marketers in advertising and promoting their brands by adopting an online celebrity endorsement strategy. However, how online celebrities build their own brand equity and how online celebrity brand equity impacts fans’ purchase behavior have not been extensively researched in the extant literature. This paper aims to explore the factors that contribute to online celebrity branding and improving fans’ purchase intentions. Design/methodology/approach A survey and an experiment were conducted among consumers from the mainland of China. A total of 12 hypotheses were proposed to exam how self-congruity and virtual interactivity impact online celebrity branding and to explore the moderating role of perceived quality and product type. Findings This paper reveals that customers’ perceived self-congruity with online celebrities’ image and virtual interactivity positively impact the brand equity of online celebrities. Additionally, compared with virtual interactivity, the effect of customer perceived self-congruity on a brand is more significant. The brand equity of online celebrities thereby drives followers’ purchase intentions and the perceived quality of products positively moderates this relationship. Originality/value The research conclusions provide managerial implications for marketing practitioners for how to use human brands on social media platforms in the web 2.0 era and ultimately enhance consumer purchase intentions.


2017 ◽  
Vol 119 (4) ◽  
pp. 830-844 ◽  
Author(s):  
Johan Bruwer ◽  
Polymeros Chrysochou ◽  
Isabelle Lesschaeve

Purpose The purpose of this paper is to examine the utilisation of product choice cues in a retail environment and the impact of consumer involvement on this utilisation. It further investigates the impact of product knowledge on product choice cue utilisation and its moderating role on the impact of consumer involvement. Design/methodology/approach The case of wine as an exemplary product category is considered, given the importance and variability of choice cues that have been found to affect product choice. Analysis is conducted on survey data from a sample of wine consumers in Ontario, Canada. Product choice cues are grouped into extrinsic, intrinsic and marketing mix. The importance of how these cues are influenced from different dimensions of consumer involvement is illustrated. Findings The results show that product knowledge has a positive impact on intrinsic product cue utilisation and further moderates this relationship improving the predictability of the hypothesised model. Implications for theory and practice are also discussed. Practical implications From an industry viewpoint, the focus in the past has mostly been on using packaging to attract attention/create awareness, create an image of desirability, etc., but not nearly as much on the functionality aspects thereof; for example alternative smaller packaging sizes to the standard 750 ml wine bottle. Originality/value The study uses a multi-dimensional approach to measure the impact of enduring involvement on utilisation of product choice cues.


2020 ◽  
Vol 9 (2) ◽  
pp. 63-81
Author(s):  
Nadia Passagem ◽  
Catia Fernandes Crespo ◽  
Nuno Almeida

The purpose of this study is to explore the country of origin´s effects on brand equity dimensions. This research selected wine as the product category and data were collected from Portuguese and Canadian consumers. Our conceptual framework incorporates the influence of country of origin on brand equity dimensions, composed by brand loyalty, brand associations, brand awareness and perceived quality, as well as the brand equity subsequent effect on purchase intention. The hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results of the Portuguese sample indicate that the country of origin affects positively all the brand equity dimensions. The Canadian sample results show that country of origin affects brand loyalty and perceived quality, but there is no significant effect on brand associations and brand awareness dimensions.


2017 ◽  
Vol 45 (12) ◽  
pp. 1298-1316 ◽  
Author(s):  
Magali Jara ◽  
Gérard Cliquet ◽  
Isabelle Robert

Purpose The purpose of this paper is to tackle the issue of store brand equity by considering two store brand’s positioning strategies: those with high perceived added value (the organic store brands), as opposed to economic brands. It takes place in the current environmental considerations showing the important role played by the packaging in determining the store brand equity. Design/methodology/approach A PLS Path model divided into four sub-models enables the authors to make specific predictions about customers’ purchase intentions. It also provides a concise operational calculation of the brand equity of each studied store brand. Findings Results show that economic brands build their equity with reinforced packaging, and organic brands maximise their brand equity by using simple packaging. In general, reinforced packaging improves the perceived quality of economic store brands but destroys that of organic brands. The calculations of overall equity scores for each studied store brand reveal that economic brands could benefit from further development whilst organic brands already maximise their equity. Practical implications Results will enable large retailers to develop effective campaigns focussing on perceived quality and more specifically by designing packaging that are suitable for the positioning of their brands – a simple packaging for organic brands and a reinforced packaging for economic brands to maximise customers’ value. Originality/value This is one of the first studies to deepen the store brand equity, comparing two contrasting types of brands, by studying specifically variations of the levels of customers’ perceived quality depending of two types of packaging.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changju Kim ◽  
Bin Hu

Purpose Drawing on the resource-based view, this study aims to investigate the conditions under which small- and medium-sized retailers can improve competitive benefits through the lens of brand equity and strategies for competitive advantage in retail buying groups. Design/methodology/approach This study collected 241 samples from small- and medium-sized supermarket retailers who joined retail buying groups in Japan. Findings This study offers two key findings. First, the results indicate that a buying group’s brand equity partially mediates the relationship between member retailers’ strategic integration and their buying group benefits. Second, member retailers with a stronger differentiation orientation strengthen the positive impact of strategic integration on the buying group’s brand equity and buying group benefits. The moderating effects of low-cost orientation were not found to be significant. Practical implications To highlight the sustainable growth of small- and medium-sized retailers in retail buying groups, which are often ignored in the extant literature, this study offers practical guidance on the importance of a buying group’s brand equity. In addition, based on the findings, this paper postulates that member retailers pursuing differentiation orientation, rather than low-cost orientation, are more beneficial to retail buying groups in terms of relational outcomes and performance consequences. Originality/value By conceptualizing brand equity in retail buying groups, this study suggests a novel approach for retail management that investigates how a buying group’s brand equity is linked to strategic integration, strategies for competitive advantage and buying group benefits from the viewpoint of member retailers.


2020 ◽  
Vol 48 (8) ◽  
pp. 781-801 ◽  
Author(s):  
Ouidade Sabri ◽  
Hai Van Doan ◽  
Faten Malek ◽  
Hager Bachouche

PurposeThe purpose of this paper is to demonstrate that the positive effect of packaging transparency on purchase intention is moderated by product quality risk (PQR) associated with the product category.Design/methodology/approachTwo separate experiments were conducted. Study 1 was designed to test the mediating role of perceived quality to account for the positive effect of transparency on purchase intention. Two types of packaging (opaque vs transparent) for a product associated with a high level of PQR were examined. Study 2 extended the findings by introducing the moderating role of PQR. A 2 (type of packaging: opaque vs transparent)*2 (PQR: low vs high) between subjects design was used.FindingsThe moderating role of the product PQR level is established: transparent packaging improves the product perceived quality and brand purchase intention when the product is associated with a high PQR, whereas there is no such preference for transparent packaging when the product is associated with a low PQR.Practical implicationsThe results offer insights to better understand the potential gains from adopting transparent packaging. If a brand manager's main goals are to develop sales, costly investments in research and development of transparent packaging appear to be fruitful only for products associated with high PQR.Originality/valueThis paper contributes to packaging, cue utilisation and perceived risk literatures by evidencing the moderating role of PQR to explain the positive effect of transparency on purchase intention.


2019 ◽  
Vol 43 (5) ◽  
pp. 710-727 ◽  
Author(s):  
Mariola Palazon ◽  
Elena Delgado-Ballester ◽  
Maria Sicilia

Purpose The purpose of this paper is to analyze how brand love is built in the context of brand pages by proposing a model in which brand love depends on relationships ties with other brand consumers (sense of brand community) and with the brand itself (self–brand connection). Design/methodology/approach Information was collected from a sample of 559 members of the community of a well-known baby food brand on Facebook. Data were collected through an online questionnaire sent by the company. Findings Results suggest that both sense of brand community and self–brand connection foster brand love and that self–brand connection exerts a mediating role between sense of brand community and brand love. Furthermore, the effect of brand community on brand love is conditioned by a personal trait of individuals such as brand engagement in self-concept. In addition, this study identifies a new consequence of brand love not previously analyzed in the literature: brand equity. Research limitations/implications A potential shortcoming is the product category analyzed and that the length of membership was not controlled and it may be a moderator between participation and community consequences. Practical implications The key implications are the importance of nurturing relationship ties among brand users and building self–brand connections on brand pages as precursors of brand love. Originality/value The study offers empirical evidence about the mechanism through which brand love is formed on social-media platforms such as Facebook. Furthermore, the authors have demonstrated the relationship between brand love and brand equity, which had not been examined yet in the literature.


2019 ◽  
Vol 9 (1) ◽  
pp. 62-87 ◽  
Author(s):  
Sonia Kataria ◽  
Vinod Saini

Purpose The purpose of this paper is to explore the inter-relationship of dimensions for consumer-based brand equity and brand loyalty with customer satisfaction as a mediator for oral care segment with special reference to Delhi and connecting areas. Design/methodology/approach For achieving the objective of this study, the theoretical model was tested through structural equation modelling. Research scales from the literature were modified for suitability. Data were collected from 250 respondents. Findings The results indicate that for the oral care segment, customer satisfaction is significantly related to the perceived quality, brand trust, perceived value of cost and lifestyle congruence. Moreover, customer satisfaction partially mediates the relationship of perceived quality and perceived value of cost with brand loyalty, whereas it fully mediates the relationship of lifestyle congruence and brand trust with brand loyalty. Thus, even for low-involvement products, consumer purchases are based on the attributes of the brand rather than being merely habitual. Originality/value The literature supports the direct influence of brand equity on brand loyalty. However, no other study has investigated the mediating role of customer satisfaction on the relationship between brand equity and brand loyalty for low-involvement products.


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