The impact of country of origin on context effects in choice

2017 ◽  
Vol 34 (6) ◽  
pp. 706-734 ◽  
Author(s):  
Moon-Yong Kim ◽  
Byung Il Park
Keyword(s):  
Context Effects ◽  
Country Of Origin ◽  
Content Type ◽  
Set Size ◽  
Choice Context ◽  
Core Set ◽  
Categorical Attribute ◽  
Asymmetric Dominance ◽  
The Impact ◽  
Dominance Set

Purpose The purpose of this paper is to examine the effect of country of origin (COO) information as an important/salient categorical attribute on choice context effects. Specifically, this research examines whether the introduction of a unique COO in the choice set will have a differential influence on context effects depending on the relative position of the third option (the asymmetrically dominated option vs the extreme option). Design/methodology/approach Five experiments were conducted in this research. Study 1 had a 2 (set size: two-option core set vs three-option asymmetric dominance set)×2 (competitor’s COO: common vs unique) between-subjects design. Study 2 had a 2 (set size: two-option core set vs three-option extreme option set)×2 (competitor’s COO: common vs unique) between-subjects design. To address the robustness of the effects, Studies 3-5 replicated the results of Studies 1 and 2. The data were analyzed by χ2 tests and logistic regression analyses. Findings The current research demonstrates that the attraction effect is attenuated by the introduction of a unique COO information in the competing option, whereas the tendency to prefer a middle option is not significantly affected. Originality/value The present research adds to the current understanding and the practical relevance of COO effects and context effects in marketing by examining the impact of COO as an important/salient categorical attribute on context effects.

Consumer brand engagement on social media in the COVID-19 pandemic: the roles of country-of-origin and consumer animosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianfu Wang ◽  
Yam B. Limbu ◽  
Xing Fang
Keyword(s):  
Social Media ◽  
Country Of Origin ◽  
Least Square ◽  
Activity Data ◽  
Content Type ◽  
Global Brands ◽  
Brand Engagement ◽  
Consumer Animosity ◽  
Negative Impacts ◽  
The Impact

PurposeThe coronavirus disease (COVID-19) pandemic unprecedentedly shocks the market. Little is known about the impact of COVID-19 on brand engagement across country-of-origin (COO) and country-of-market (COM). To address the gap, this study examines how the spread of the COVID-19 affects consumer brand engagement on social media for global brands through the mechanisms of the COO and consumer animosity.Design/methodology/approachThe authors collect consumer engagement activity data from Facebook for eight global smartphone brands and match it with the COVID-19 statistics. Ordinary least square (OLS) models are used to estimate the impact on global brands brought by the spread of the COVID-19.FindingsThe results show that consumer brand engagement decreases for all brands in a COM as the number of confirmed COVID-19 new cases increases in the COM. Consumer brand engagement decreases for a brand across all COM as the number of confirmed COVID-19 new cases increases in the brand’s COO. If a brand’s COO is imputed for the pandemic, its consumer brand engagement will receive additional negative impacts across all COM.Originality/valueThis study enriches the COO literature by showing how the spread of a pandemic affects consumer brand engagement via COO and discovers the moderating role of consumer animosity.

scholarly journals Control mechanisms of MNEs: an empirical study

2016 ◽  
Vol 24 (3) ◽  
pp. 279-300 ◽  
Author(s):  
Satwinder Singh ◽  
Geoffrey Wood ◽  
Jaithen Alharbi ◽  
Tamer K. Darwish
Keyword(s):  
Multinational Enterprises ◽  
Economies Of Scale ◽  
Country Of Origin ◽  
Foreign Firms ◽  
Primary Data ◽  
Control Mechanisms ◽  
Gulf Region ◽  
Content Type ◽  
Local Staff ◽  
The Impact

Purpose This purpose of this paper is to explore variations in the extent of control mechanisms, according to country of origin and organizational characteristics, in a challenging country of domicile. Design/methodology/approach A survey research design involving the use of a questionnaire as the primary data source was adopted. A total of 350 subsidiaries were initially randomly selected and contacted in person, or via telephone and e-mail, of which 147 agreed to take part in the study and responded to the survey. Findings The authors find that Multinational Enterprises (MNEs) from highly financialized Liberal Market Economies will be associated with a greater reliance on formalized control mechanisms; this will enable the MNE’s headquarters to closely monitor subsidiary managers according to objective measures, to ensure that the maximum shareholder value is released. Research limitations/implications This study reveals a greater reliance on control mechanisms in larger firms, reflecting a desire to maximize bureaucratic economies of scale. Practical implications The authors find that the presence of expatriates regardless of country of origin leads to greater decentralization, suggesting foreign firms do not trust local staff. Originality/value This is one of the few studies of this nature conducted for the region of Middle East – and the only one the authors are aware of for Saudi Arabia. Further, it sheds new light on the impact of contextual circumstances on how closely firms monitor their subsidiaries, the challenges of doing business in the Gulf region and the consequences of the large-scale usage of expatriates.

Chinese consumers’ willingness to pay for rice

2018 ◽  
Vol 8 (2) ◽  
pp. 256-269 ◽  
Author(s):  
Pei Xu ◽  
Hang Su ◽  
Todd Lone
Keyword(s):  
Country Of Origin ◽  
Conditional Logit Model ◽  
Chinese Consumers ◽  
Content Type ◽  
Business Opportunity ◽  
Conditional Logit ◽  
Organic Rice ◽  
Research Findings ◽  
Rice Consumption ◽  
The Impact

Purpose China’s expanded rice imports offer a profitable business opportunity for both domestic and international grain marketers. The purpose of this paper is to analyze the impact of select variables on Chinese consumers’ rice choices, specifically focusing on country-of-origin, price, organic, brand, freshness, and taste. The study concludes with suggestions for domestic and international rice marketers to help them develop more efficient rice marketing plans. Design/methodology/approach This study developed a conditional logit model to analyze survey data gathered from Chongqing and Chengdu, two of China’s largest rice consumption cities. Findings Chinese consumers are price sensitive in their rice choices. Country-of-origin is the most imperative factor affecting rice selection for lower food expense consumers but branded rice attracts the attention of higher food expense consumers. Furthermore, these higher food expense consumers are willing to pay a small premium of $0.22 for a pound of organic rice. Research limitations/implications A general trend in demand for organic rice from higher food expense consumers was identified, and this trend predicts a profitable market for organic rice sellers. However, these research findings are geographically limited and may only represent a consumption trend from the two sampled cities rather than all of China. Originality/value The study concludes with meaningful recommendations to rice marketers to aid in developing profitable market entrance strategies to China.

Does origin matter? The impact of the institutional environment of the origin country on the internationalization of franchise chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Giovani Lanfranchi ◽  
Suzane Strehlau ◽  
Felipe Mendes Borini ◽  
Pedro Lucas de Resende Melo
Keyword(s):  
Institutional Environment ◽  
Country Of Origin ◽  
Developed Countries ◽  
International Markets ◽  
Market Potential ◽  
Institutional Characteristics ◽  
International Expansion ◽  
Content Type ◽  
The Impact ◽  
Selection Of

Purpose The purpose of this research is to identify the impacts of the country of origin of a franchise chain on its commitment in the destination countries, verifying the institutional particularities between the chains from emerging and developed countries. Design/methodology/approach The research is descriptive and quantitative and involved 724 franchise chains from 10 countries of origin (Brazil, Russia, India, South Africa, Argentina, USA, Germany, Australia, Spain and Portugal), spread over 174 destination countries, totaling 3,513 cases. Findings The results indicate that institutional preferences do not vary according to the country of origin of the franchise chain but rather vary according to the destination country. Research limitations/implications This paper contributes to institutional theory by identifying a set of characteristics that explains the selection of international markets and the commitment of franchise chains. Practical implications The results obtained in the study can help managers of franchise chains to make decisions related to the selection of destination countries for international expansion based on the institutional characteristics of the markets and their compatibility with the objectives of the franchise chains. Originality/value Companies in emerging countries internationalize according to different management logics from those of companies from developed countries. Thus, it is possible that the process of selecting countries for internationalization is also based on different criteria that reflect different institutional preferences. The thesis defended in the paper is that market potential is more important to franchisees from emerging markets, whereas contract enforcement is more important to franchisees from developed markets.

The impact of country-of-origin image on brand loyalty: evidence from Iran

2016 ◽  
Vol 28 (4) ◽  
pp. 709-723 ◽  
Author(s):  
Fariba Esmaeilpour ◽  
Mohammad Ali Abdolvand
Keyword(s):  
Brand Loyalty ◽  
Country Of Origin ◽  
Brand Attitude ◽  
Equation Modeling ◽  
Luxury Brands ◽  
Content Type ◽  
Technology Advancement ◽  
The Impact ◽  
Positive Effect ◽  
Product Origin

Purpose The purpose of this paper is to examine the effects of country-of-origin (COO) image on brand attitude and brand loyalty of Generation Y’s consumers toward two categories of luxury fashion brands. Design/methodology/approach First, a structural equation modeling method was employed based on data collected from 419 individuals born between 1977 and 1994 in Iran. In next steps, analysis was conducted using hierarchical regression analysis with a two-way interaction and a slope analysis. Watches and sunglasses are two luxury product categories chosen in this study. Findings The findings of the study reveal that consumers’ perception from COO technology advancement is the determinant of attitude toward luxury brands. COO technology advancement also, mediated by brand attitude, has an indirect positive effect on luxury brand loyalty. Moreover, the interaction between COO technology advancement and product-origin congruency has a significant and positive effect on consumers’ brand attitude. Originality/value This study has tried to investigate the impact of the constructs of the COO image on attitude and loyalty toward luxury brands in Generation Y. It has also dealt with the effect of product-origin congruency on the relationship between each one of the constructs of the COO image and brand attitude.

scholarly journals Management perspectives on country of origin

2016 ◽  
Vol 20 (2) ◽  
pp. 230-244 ◽  
Author(s):  
Arooj Rashid ◽  
Liz Barnes ◽  
Gary Warnaby
Keyword(s):  
Large Scale ◽  
Country Of Origin ◽  
Point Of View ◽  
The Body ◽  
Content Type ◽  
Consumer Perspective ◽  
New Perspective ◽  
Retail Branding ◽  
The Uk ◽  
The Impact

Purpose – The purpose of this paper is to provide a new perspective by conceptualising country of origin (COO) from a management perspective, identifying the impact different COO constructs have in the context of fashion retailer and manufacturer businesses. Design/methodology/approach – This qualitative study comprises a series of in-depth interviews with key informants from large-scale fashion retailers and manufacturers in the UK. Findings – The major findings of this research demonstrate that COO is considered a strategic business imperative but manifests in a variety of ways depending on brand positioning, long-term strategic plans, expertise, and brand values, etc. Research limitations/implications – This study contributes to the body of knowledge about the importance of COO. The findings of this research will have practical implications for manufacturers and retailers, informing the debate on the value of the “Made in […]” epithet. Findings are limited to the UK fashion clothing industry. Originality/value – This research presents a new perspective on the COO construct, addressing it from a management rather than consumer perspective. It argues that COO can be considered as a strategic dimension, which is manifested in a variety of ways. COO has been extensively researched from a consumer point of view but this research takes a new approach by presenting findings from a managerial point of view, with fashion manufacturing and retail branding as the context.

scholarly journals Perceptions on effectiveness of public policies supporting entrepreneurship and internationalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joao Campos ◽  
Vitor Braga ◽  
Aldina Correira ◽  
Vanessa Ratten ◽  
Carla Marques
Keyword(s):  
Success Rate ◽  
Government Policy ◽  
Public Policies ◽  
Country Of Origin ◽  
Government Support ◽  
Business Strategies ◽  
Data Set ◽  
Content Type ◽  
The Impact ◽  
Gem Data

PurposePublic policies provide a way for governments to influence the effectiveness of business strategies in the international marketplace. The main goal of this article is to show the importance of key aspects for policymaking at the national level and, secondly, to try to evaluate if public policies and programmes are effective in the entrepreneurship and internationalization of firms.Design/methodology/approachThe Global Entrepreneurship Monitor (GEM) data set was used to perform a multivariate analysis through multiple linear regression.FindingsThe economic and financial crisis that has plagued the world recently has incentivized entrepreneurs to be more creative and encouraged policymakers to be more effective in the important role they can play in economic growth. Thus, the findings indicate that government support can help firms be more entrepreneurial and increase their level of internationalization in the marketplace. The findings indicate that entrepreneurship is an important growth factor, so it is important to understand government support can be effective in stimulating business activity.Research limitations/implicationsThis study focusses on perceptions of government policy based on the GEM database, which means it is limited to subjective assessments rather than objective measures.Practical implicationsThe findings of this study will help business managers focus on their country of origin as a way to stress the impact of government policies on reputation in the international marketplace.Social implicationsGovernments need to acknowledge how their entrepreneurial policies regarding innovation and internationalization affect business success rate. This means emphasizing the trustworthiness and credibility of their policies.Originality/valueThis article highlights the need for more entrepreneurial policymaking that emphasizes government reputational affects in the success rate of firms in the international marketplace. This provides a way for firms to gain better recognition from country-of-origin effects but also for policymakers to prioritize international strategic efforts. By comparing data from different countries, the article highlights the different ways government policy can be utilized strategically in order to increase entrepreneurship and internationalization rates.

The impact of country of origin on consumers' pricing judgments in ecommerce settings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emi Moriuchi
Keyword(s):  
Positive Impact ◽  
Country Of Origin ◽  
Third Party ◽  
Lower Price ◽  
Limited Attention ◽  
Research Approach ◽  
Content Type ◽  
Willingness To Purchase ◽  
The Impact

PurposeThe purpose of this paper is to assess the impact of country-of-origin (COO) cues and pricing perspective based on the third-party seller's name, intermediary, on consumers' purchasing decisions on e-commerce sites. A model was proposed to investigate consumers' perception toward sellers' online reputation, the mediating role of trust between the reputation of third-party sellers and attitude toward e-commerce as an intermediary, and attitude toward third-party sellers. In addition, this study also looks at the pricing threshold of consumers who are willing to buy from a third-party seller that has a negative COO cue, which is an area that has received limited attention in e-commerce studies.Design/methodology/approachThe paper opted for an experimental study using survey data gathered from general American consumers. Two studies were conducted. One hundred seventy surveys were gathered for study 1, and 171 surveys were gathered for study 2. The two studies had two product snippets which showed an Amazon product page with a list of third-party sellers. For study 2, all variables were kept the same – reviews and ratings for both products and sellers, delivery time, descriptions, e-commerce as an intermediary and brand of a bag – except for the price.FindingsThe findings showed that consumers' perceived reputation of a third-party seller has a positive impact on their attitude toward the seller and toward the e-commerce intermediary. In addition, the role of a positive COO influences attitudes and intentions. However, this influence is moderated by price when price is noticeably higher when compared to an alternative option provided by a seller from a country with a lower COO evaluation. This study suggests that the benefits of a positive COO diminish when a seller with a lower COO evaluation is able to provide a lower price for the product. In study 1, the results show that positive COO trumps negative COO. In study 2, the result shows that consumers lean toward a lower-price product and disregard their evaluation toward the COO. Furthermore, in study 2, results show that in order for the pricing to offset the negative COO attributes of a third-party seller, the price needs to be within 22–30% lower than the American seller's product pricing.Research limitations/implicationsWith the chosen research approach, the research results may lack generalizability for the other markets (e.g. Asian consumer market). Therefore, researchers are encouraged to test the proposed propositions further.Originality/valueThis study highlights the implications of COO cues such as sellers' names and how they impact consumers' willingness to purchase a product. The second study investigates consumers' willingness to purchase when the pricing for a product sold by a negative COO seller versus a positive COO seller is different in an e-commerce environment. In addition, the second study determines that the role of trust has more impact on consumers' attitude toward a third-party seller than it has on their attitude toward the e-commerce intermediary.

When does creativity matter: the impact of consumption motive and claim set-size

2019 ◽  
Vol 36 (4) ◽  
pp. 449-460
Author(s):  
Ilgım Dara Benoit ◽  
Elizabeth G. Miller
Keyword(s):  
Boundary Conditions ◽  
Product Category ◽  
Small Claim ◽  
Hedonic Consumption ◽  
Large Claim ◽  
Content Type ◽  
Set Size ◽  
Advertising Budget ◽  
Hedonic Utilitarian ◽  
The Impact

Purpose This paper aims to identify two boundary conditions (consumption motive and claim set-size) affecting the effectiveness of an advertisement’s creativity. Design/methodology/approach Across two experiments, the authors find support for hypotheses using both hedonic vs utilitarian products (Study 1) and hedonic vs utilitarian decision goals within the same product category (Study 2). Findings Creativity is more effective for an advertisement when the consumption motive is utilitarian (vs hedonic). Further, using a larger claim set-size within an advertisement increases (decreases) the effectiveness of advertisement creativity for those with hedonic (utilitarian) consumption motives. Research limitations/implications This research contributes to the creativity literature by showing when creativity matters depending on the consumption motive and claim set-size. In addition, this research expands the utilitarian vs hedonic consumption literature by highlighting another way in which these two motives differ. Finally, this study expands the claim set-size literature by demonstrating that the effects of claim set-size depend on both consumption motive and features of the ad (i.e. its level of creativity). Practical implications These findings help marketers manage their advertising budget more effectively and efficiently knowing when advertisement creativity matters and thus when to invest in creativity. Originality/value The present research is the first to explicitly study boundary conditions for when ad creativity matters and shows that creativity matters more (i.e. enhances persuasiveness of the ad and attitudes toward the ad) when the consumption motive is utilitarian, especially when ads have small claim set-size. Additionally, creativity matters for hedonic consumption contexts if the advertisement has a large claim size.

The effects of country-of-origin fit on cross-border brand alliances

2018 ◽  
Vol 30 (5) ◽  
pp. 1259-1276 ◽  
Author(s):  
Jin Kyun Lee ◽  
Byung-Kwan Lee ◽  
Wei-Na Lee
Keyword(s):  
Country Of Origin ◽  
Product Evaluation ◽  
Consumer Product ◽  
Product Knowledge ◽  
Consumer Decision Making ◽  
Content Type ◽  
Cross Border ◽  
High Knowledge ◽  
Mixed Factorial Design ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of country-of-origin (COO) fit and consumer product knowledge on consumer brand attitudes in a cross-border strategic brand alliance (SBA).Design/methodology/approachAn experimental study with 207 subjects was conducted using a series of 2 (COO fit: low vs high COO fit) by 3 (product knowledge: low vs moderate vs high knowledge) by 2 (time: pre- vs post-alliance attitudes) mixed factorial design.FindingsThe impact of COO fit on pre- and post-alliance changes in attitude toward the partner brand showed a nonlinear relationship from high-, to moderate-, to low-knowledge consumers. High COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for high- and low-knowledge consumers than for moderate-knowledge consumers. In contrast, low COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for moderate-knowledge consumers than for high- and low-knowledge consumers.Practical implicationsThe effectiveness of cross-border SBAs differs with consumer product knowledge. For high- and low-knowledge consumers, high COO fit information had greater impact than low COO fit information in their product evaluation. However, when targeting moderate-knowledge consumers, providing sufficient product-related attribute information would help them to generate a favorable brand attitude.Originality/valueThis study attempted to identify the complex relationship between COO fit and consumer product knowledge on the consumer decision-making process.

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