Country-Of-Origin (COO) Impact and Product Categories’ Evaluations: The Case of an Emerging Market

Author(s):  
A Ben Oumlil ◽  
Karen L Koza ◽  
Richard Montague

The aim of this study is to fill in a gap in Country-of-Origin (COO) studies by assessing the relationship between COO and consumer decision-making processes in Morocco, an emerging market, and non-Western Mediterranean country and culture. Specifically, this research study demonstrates that the consumer demographic characteristic of age does make a difference in the COO influence for product categories within Morocco. Age was shown to interact with the impact of COO with regard to purchasing decisions regarding products from more industrialized/economically advanced nations, compared to products from less economically advanced/industrialized nations. These results have managerial implications in assisting multinational organizations in their market segmentations and positioning strategies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.


2018 ◽  
Vol 25 (3) ◽  
pp. 538-544 ◽  
Author(s):  
Xin Li

Purpose The purpose of this paper is to comment on Professor Ming-Jer Chen’s recent publication titled “Competitive dynamics: Eastern roots, Western growth” and present an asymmetry reversing perspective on the competitive dynamics between two nonobvious, invisible or indirect competitors, namely, how emerging market resource-poor firms compete and outcompete advanced country resource-rich rivals. Design/methodology/approach The author first identifies an important neglect in Professor Chen’s scholarship on competitive dynamics, i.e., the neglect of the ubiquity of the less visible competition between two actors who initially would not be considered as competitors. Then, the author proposes an asymmetry reversing theory (ART) of competitive dynamics to redress this neglect. The theory is presented in two parts. The first part describes the competitive dynamics between the two actors as a three-stage process of reversing the asymmetry in resource possession and market position between the resource-poor firm and its resource-rich rivals. The second part explains the key success factors for the resource-poor firm to go through each of the three stages. Findings The growth process of the resource-poor firm can be broadly divided into three stages: surviving, catching-up, and outcompeting. For ambitious yet pragmatic resource-poor firms, in the surviving stage, they often (have to) accept the asymmetry between themselves and their resource-rich rivals in terms of resource possession and market position, and try to avoid any direct competition with the strong incumbents. They often tactically appear to pursue different paths of development from those of the strong incumbents by focusing on particular product categories and market segments. Doing so allows the resource-poor firms to win times and spaces for non-interrupted growth. Once they have accumulated sufficient resources and market experiences, they start to reduce the asymmetry between themselves and their better-endowed rivals by entering the similar or same product categories and market segments. To effectively catch up and outcompete the incumbents, they often differentiate themselves from their rivals by offering cheaper products or services, adding new features to their products, providing extra services to their customers, inventing new business models, etc. Research limitations/implications One limitation of this paper is that the ART framework has so far been built on anecdotal evidences. It needs to be tested by empirical studies and refined further in the future. Another limitation is that the proposed theory is based on competitive dynamics between emerging market resource-poor firms and advanced country resource-rich firms. It needs to be tested whether this theory has applicability to any other firms. Originality/value This paper fills an important research gap in the competitive dynamics literature by proposing an asymmetry reversing theory of competitive dynamics between a weak latecomer and a strong incumbent in a competitive field.


Author(s):  
Swetarupa Chatterjee ◽  
Naman Sreen ◽  
Jyoti Rana ◽  
Amandeep Dhir ◽  
Pradip H. Sadarangani

AbstractIn emerging markets, instances of increasing consumers focus on ethical aspects of the product are observed. To this end, we aim to examine the influence of two ethical certifications and two product involvement types on consumers willingness to purchase ethical products at price premiums in the Indian market. No animal cruelty certification and no child labor certification are chosen as the ethical certifications, and a shirt and a bar of soap are chosen as high and low involvement product categories. Data is collected from 206 respondents for the experiment, in which consumers willingness to purchase a product is evaluated for different product scenarios. The results of the study indicate that individuals show highest willingness to purchase products (a shirt or a soap) when both certifications (no animal cruelty, no child labor) are present. However, in comparing individual certifications, individuals prefer no animal cruelty certification for a shirt and no child labor certification for a bar of soap. The study provides insights to practitioners regarding consumers present perception of ethical aspects in the product and directions to increase sales of ethical products in the Indian market.


2020 ◽  
Vol 48 (6) ◽  
pp. 591-607
Author(s):  
Stephan Zielke ◽  
Marcin Komor

PurposeThis paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.Design/methodology/approachMall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.FindingsResults show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.Research limitations/implicationsResults have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.Originality/valueThis paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.


1994 ◽  
Vol 2 (2) ◽  
pp. 49-62 ◽  
Author(s):  
Gregory R. Elliott ◽  
Ross C. Cameron

Consumer attitudes to local and foreign products and the likely “country-of-origin” effect in “Buy Local” and “Made In …” campaigns are surveyed. First, the importance of country of origin in relation to other product attributes is considered. Second, country of origin is assessed as a surrogate indicator of product quality. Third, the likely effect of country of origin on consumer choice across a range of product categories is studied with brand name and price held constant. Across the product categories studied, respondents rated country of origin as significantly less important as a choice determinant than product quality and price. In addition, clear country-of-origin effects are identified. Consumers rate products as being of significantly different quality when the only variation between products is stated country of origin. Further, consumers express a marked preference for locally made products when price, technical features, and brand name are invariant, and where the locally made product is perceived to be superior or, at least, not significantly inferior to an overseas-made product. Where the locally made product is perceived to be of inferior quality to the imported product, consumers generally prefer an imported product. Thus, while consumers rate country of origin after product quality and price, when these other factors are equivalent, the fact that the product is promoted as locally made is a positive influence on product choice.


2018 ◽  
Vol 35 (5) ◽  
pp. 710-732 ◽  
Author(s):  
Yipeng Liu ◽  
Christina Öberg ◽  
Shlomo Yedidia Tarba ◽  
Yijun Xing

Purpose The purpose of this paper is to focus on emerging market companies that internationalize into advanced economies by means of acquisitions and to investigate brand management during post-acquisition integration from a multi-level perspective and to identify how a brand management strategy can be constructed. It takes into account the influences of country-of-origin image, corporate brand and brand portfolio to obtain a granular view of post-acquisition brand management. Design/methodology/approach A multiple case study approach was adopted. By using case studies and storytelling qualitative research methods, the empirical setting was related to the acquisitions undertaken by Chinese companies in Germany. Findings The authors identified three mechanisms for brand management in the post-acquisition integration of emerging market companies – namely, transferring, dynamically redeploying and categorizing – that underpin the interconnection and combined influence of country-of-origin image at the national level, corporate brand at the organizational level and brand portfolio at the product level. Practical implications Brand has been viewed as a strategic asset in Chinese cross-border mergers and acquisitions (M&As). Brand management is a dynamic process that involves learning and interaction between the acquirer and target. The research offers a practical guideline for both acquirers and targets in managing brand in the context of acquisitions undertaken by emerging market companies in advanced economies. Originality/value The findings provide important insights into the brand management strategies adopted in Chinese cross-border M&As in particular, and emerging market companies venturing into advanced economies in general. The interlinking of country, company and product levels introduces new ideas to the brand literature related to acquisitions, and the setting of Chinese companies acquiring German ones constitutes an important contribution to the understanding of the different ways in which companies from emerging economies may pursue branding strategies in the context of cross-border M&As.


Author(s):  
Katarína Kleinová ◽  
Juraj Neománi

In many product categories is one of the factors influencing consumer behaviour also the country of origin what is the main goal of this article. Consumers are influenced by their own origin, by ex­pe­riences with domestic and foreign products and stereotyped ideas about quality and reliability of products from other countries. The results of many marketing studies have concluded that the eva­lua­tion of products is significantly influenced by knowledge of where the products were produced. However, when directly analysing the importance of country of origin in the purchase decision, ­buyers mostly minimize its impact. They want to look like logical or rational consumers who decide rather for more objective internal product attributes (taste, design and appearance) than the external factors, including the origin.


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