Global branding, country of origin and expertise

Abstract

PurposeThe globalisation of markets combined with the paradoxical rise of nationalism has created an increased concern about the importance of the interaction of global brands with other cues such as the country of origin (COO) of products and services. The purpose of this paper is to evaluate the decision‐making processes of experts and novices with respect to international brand names, COO and intrinsic quality differences.Design/methodology/approachWithin subject experimental design, quantitative study analysis of variance.FindingsResults of a series of experiments with personal computers as a product with strong COO effects supported this argument. Experts or highly knowledgeable consumers were found to use COO in a circumspect manner or as a limited summary construct, only when such information was consistent with a linked brand name or a particular level of physical quality. Novices, for both products used COO as a halo regardless of brand name and physical quality.Research limitations/implicationsInternational brand names are used in a more analytical manner by experts, with respect to quality, whilst novices based their decision‐making on extrinsic cues. This was a controlled experimental design and results could be evaluated further by more realistic design using actual products in a more market setting. Although the use of product description as used as experimental treatments in this study is not an unusual manner in which personal computers are purchased by consumers, especially when they are purchased online.Practical implicationsInternational marketers must carefully consider the quality, brand and COO information carefully when marketing to consumers of varying product knowledge as it appears different decision‐making styles are used by experts and novices.Originality/valueThis is one of the few studies to experimentally manipulate brand, quality and COO information amongst different groups of consumers with varying product knowledge (experts and novices). The experimental treatments were also carefully chosen so that differences due to the use of a global brand IBM could be evaluated against a lesser known local brand name.

When Diseases Hit Aquaculture: An Experimental Study of Spillover Effects from Negative Publicity

“…CoO effects have been extensively studied in the marketing literature, which document significant effects in a variety of product categories, ranging from chocolate (Camgoz and Ertem 2008) and wine (Aqueveque 2008) to personal computers (Pecotich and Ward 2007). The importance of CoO tends to increase when it is either impossible or difficult for consumers to directly observe product quality.…”

Consumer perspectives of cultural branding: The case of Burberry in Taiwan

“…Within these encounters, some brands will lose their identity while others will leverage their cultural attributes and become a cultural brand that distills the favourable features of its country of origin. However, despite the opportunities and challenges that have been uncovered, scholars and practitioners are still uncertain about how to manage cultural brands, and more importantly how to maintain a somewhat cohesive image in the eyes of foreign consumers who have unique interpretations and experiences ( Brown, 1995 ;Goldsmith, 2002 ;Ekwulugo, 2003 ;Pecotich and Ward, 2007 ).…”

Irish Consumers' Perception of Chinese Brands and How to Improve the “Made in China” Image

“…For example, France may be viewed as a country that has competence in perfume and fashion products. The formation of an image of the COO may also be considered to be part of a stereotyping or classifying process that helps to simplify the making of judgments when information is lacking or when there is an overload of information (Pecotich and Ward, 2007). Consumers will rely more 6 heavily on the stereotypical image of a country's products if no other information is available about the brand.…”

“…For example, Chinese consumers in Nanjing, which is an enduring symbol of Japanese occupation, might not purchase Japanese products because of animosity towards Japan, even though the 'Made in Japan' label generally has positive effect on the quality of certain types of products (Gabrielle et al 1998). Pecotich and Ward (2007) suggest that the brand image and COO are regarded as extrinsic cues that are related to, but not part, of the physical product, while product 8 differences and product attributes are regarded as intrinsic cues that are a part of the physical product. Agbonifoh and Elimimian (1999) argue that the use of intrinsic cues by consumers has a greater influence than extrinsic cues in the assessment of the quality of products and brand image.…”