Purpose
Recent research has shown that the country-of-origin (COO) effect – the influence on consumers’ attitudes and purchase behavior derived from a brand’s perceived association with a country – is inextricably linked to consumer perception. The purpose of this paper is to examine this shift by considering origin as a characteristic derived from perceived association and also by proposing that this association varies by degree, rather than simply acting as a binary attribute in its effect on consumer attitudes.
Design/methodology/approach
Data from a test series in which respondents (n=100) rated 38 brand-country pairs were put to split-half multi-group analysis tests to capture the moderating influence of association strength (AS) on several facets of country image (CI) simultaneously.
Findings
AS is a variable that exerts a moderating influence on how different dimensions of CI influence consumers’ evaluation of brands.
Research limitations/implications
The findings indicate that origin, as a characteristic, should be considered an association that is variable by degree and not as dichotomous. The implications of such a shift are broad, not only for the theoretical understanding of the COO effect but also for marketing and brand management practice. Accounting for AS allows for more accurate prediction of how consumers will react to COO.
Originality/value
The paper explicitly demonstrates that the strength of country-brand association moderates COO’s influence on brand equity. Such a relationship had previously only been theoretically implied but had not been empirically tested across multiple categories of products on multiple levels of CI.
Few recent topics in marketing have met such immediate popularity and critique as Vargo and Lusch’s service-dominant logic (SDL). While many have criticized SDL scholarship for a lack of cultural sophistication, coherence, and relevance, it has nevertheless maintained and expanded its own distinct stream of ideas. Recently, Vargo and Lusch have proposed that SDL could be extended into a theory of society. We criticize this notion by contrasting their views on commodity value with Marxist and post-Marxist literatures, finding SDL ill-equipped to understand consumer culture, but also continuing to propagate simplistic and misguided views of “value” in commodity markets. We conclude by challenging SDL’s suitability as candidate for all-encompassing social theorizing because of its tacit neoliberalism.
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