impact of country-of-origin on product purchase decision.
Asad Javed,Syed Amjad Farid Hasnu
Published in International Journal of Advanced Research in Business Management and Administration
ISSN: 2348 -2354 Impact Factor:1.48 Volume:1 Issue:1 Year: 08 December,2013 Pages:64-90
Abstract
With the Globalization, international trade has also been increased across the nations. With Globalization, made in different countries products are available in the market and now customer have the wide variety of choices to select the products from domestic and foreign products. This phenomena makes the study of consumer attitude more important to be studied (Netemeyer et al., 1991). For any product, its characteristics, design and attributes are all important. When customers differentiate the products from products of one country from other, this phenomena is called as Country-of-Origin (COO) effect. For making successful marketing strategy, it is essential for the marketer to know what importance customer weight customer places on COO? Even it is consider as the fifth element of marketing (Baker and Ballington, 2002). Successful firms make good use of COO to get success in the market (Kinra, 2006) e.g. Swiss watches and Japanese Electronic products are its examples.
Kewords
Okechuku and Onyemah Thekor & Lavack Han
Reference
Ahmed, S. A. and d'Astous, A. (2001), “Canadian consumers' perceptions of products made in newly industrializing East Asian countries”, International Journal of Commerce & Management, Vol. 11, No. 1, pp. 54-81. Ahmed, S.A. and d‟Astous, A. (1995), “Comparison of country of origin effects on household and organisational buyers‟ product perceptions”, European Journal of Marketing, Vol. 29, No. 3, pp. 35-51. Ahmed, S.A., d‟Astous, A. and El-adraoui, M. (2008), “Country-of origin effects on purchasing managers‟ product perceptions”, Industrial Marketing Management, Vol. 23, No. 4. pp. 323-32.29 Ahmed, Z.U., Zbib, I.J., Sikander, A. and Farhat, K.T. (2010), “Predicting consumer behavior based on country of origin (COO)”, Euromed Journal of Business, Vol. 5 No. 1, pp. 37-56. Alba, J. and Hutchinson, J.W. (1987), “Dimensions of consumer expertise”, Journal of Consumer Research, Vol. 13 No. 4, pp. 411-5. Albaum, G., & Peterson, R. A. (1984), “Empirical research in international marketing: 1976-1982”, Journal of International Business Studies, Vol. 15, No. 1,pp. 161-173. Anderson, W. T., & Cunningham, W. H. (1972), “Gauging foreign product promotion”, Journal of Advertising Research, Vol. 12, No. 1, pp. 29-34. Anholt, S. (2007), Competitive Identity. The New Brand Management for Nations, Cities and Regions. Trowbridge, Wilts. Cromwell Press. Assaf, A. and Josiassen, A. (2010), “Country-of-origin contingencies: their joint influence on consumer behaviour”, Asia Pacific Journal of Marketing and Logistics, Vol. 22, No. 3, pp. 294-313. Badri, Davis and Davis (1995), “Decision support for global marketing strategies: the effect of country-of-origin on product evaluation”, Journal of Product & Brand Management, Vol. 4, No. 5, pp. 49-64 Bailey, W. and Pineres, S. (1997), “Country of origin attitudes in Mexico: the malinchismo effect”, Journal of International Consumer Marketing, Vol. 9 No. 3, pp. 25, 41. Baker, M. J. and Ballington, L. (2002), “Country of origin as a source of competitive advantage”, Journal of Strategic Marketing; Vol. 10, No. 2, pp157-168. Balabanis, G., & Diamantopoulos, A. (2004), “Domestic country bias, country-of-origin effects, and consumer ethnocentrism: a multidimensional unfolding approach”, Journal of the Academy of Marketing Science, Vol. 32, No. 1, pp. 80-95.30 Bettman, J.R. and Park, C.W. (1980), “Effects of prior knowledge and experience and phase of the choice process on consumer decision processes: a protocol analysis”, Journal of Consumer Research, Vol. 7 No. 3, pp. 234-48. Bilkey, W.J. and Nes, E. (1982), “Country of origin effects on product evaluation”, Journal of International Business Studies, Vol. 8, No. 1, pp. 89-99. Brucks, M. (1985), “The effect of product class knowledge on information search behavior”, Journal of Consumer Research, Vol. 12 No. 1, pp. 1-16. Bruning, E.R. (1997), “Country-of-origin, national loyalty and product choice: The case of international air travel”, International Marketing Review, Vol. 14, No. 1, pp. 59-74. Cengiz, E., Ayyildiz, H., & Er, B. (2007), “Effects of image and advertising efficiency on customer loyalty and antecedents of loyalty: Turkish banks sample”, Banks and Bank Systems, Vo. l2, No. 1,pp. 56-79. Chaffee, S. H. & J. M. Mclead, (1973), Consumer Decisions and Information Use. Consumer Behavior: Theoretical Source, S. Ward and T.S. Robertson. Chiou, J.-S. (2003), “The impact of country of origin on pretrial and post trial product evaluations: the moderating effect of consumer expertise”, Psychology and Marketing, Vol. 20 No. 10, pp. 935-54 Chinen, K., Jun, M., and Hampton, G. M. (2000). “Product quality, market presence, and buying behaviour: Aggregate images of foreign products in the US”. Multinational Business Review, Vol. 8, No. 1, pp. 29-38. Chung, C., Boyer, T. and Han, S. (2009), “Valuing Quality Attributes and Country of Origin in the Korean Beef Market”, Journal of Agricultural Economics, Vol. 60 No. 3, pp. 682-698. Cohen, J. B., (1983), “Involvement and You: 100 Great ideas”, Advances in Consumer Research, vol. 10, pp. 32-39.31 Cordell, V. (1992), “Effects of consumer preferences for foreign sourced products”, Journal of International Business Studies, Vol. 23, No. 2, pp 251-269. Dakin, J.A. and Carter, S. (2010), “Negative image: developing countries and country of origin - an example from Zimbabwe”, International Journal of Economics and Business Research, Vol. 2 No. 3/4, pp. 166-186. Darling, J. R., & Wood, V. R. (1990), “A longitudinal study comparing perceptions of US and Japanese consumer products in a third/neutral country: Finland 1975 to 1985”, Journal of International Business Studies, Vol. 21, No. 3, pp 427-450. De-Mooij, M. (2004), Consumer Behavior and Culture: Consequences for Global Marketing and Advertising, Sage, Thousand Oaks, CA. Dodds, B. K., K. B. Monroe & D. Grewal, (1991), “Effect of Price, Brands and Store Information on Buyers‟ Product Evaluation”, Journal of Marketing Research, Vol. 28, pp. 307- 319.Dornoff, R., Tankersley, C. and White, G. (1974), “Consumers‟ perceptions of imports”, Akron Business and Economic Review, Vol. 5, N0. 2, pp. 26-9.Evanschitzky, H., Wangenheim, F., Woisetschlager, D. and Markus, B. (2008), „„Consumer ethnocentrism in the German market‟‟, International Marketing Review, Vol. 25, No. 1, pp. 7-32. Fan, Y. (2006), “Branding the nation: What is being branded?”, Journal of Vacation Marketing, Vol. 12, No. 1, pp 5-14. Festervand, T., Lumpkin, J., and Lundstrom, W. (1985), “Consumers‟ perceptions of imports: an update and extension”, Akron Business and Economic Review, Vol. 16, No. 2, pp. 31-6.32 Fishbein, A. J. & L. Ajzen, (1975), Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research Reading, MA: Aaddison-Wesley. Friedman, M.L. and Smith, L. (1993), “Consumer evaluation process in a service setting”,Journal of Service Marketing, Vol. 7 No. 2, pp. 47-61. Gaedeke, R. (1973), “Consumer attitudes toward products „made in‟ developing countries”,Journal of Retailing, Vol. 49, No. 2, pp 13-24. Ghani, U., Salaria, M.R. and Jan, F.A. (2007), “COO effect on Customer Purchase decision of Durable Goods in Pakistan”, Journal of Management Sciences, Vol. 1, No.1. Ghazali, M., Othman,M., Zahiruddin, A., Yahya & M. Ibrahim, A. (2008), “Products and Country of Origin Effects: The Malaysian Consumers‟ Perception”, International Review of Business Research Papers, Vol. 4, No.2, Pp.91-102. Goldsmith, R.E. and Emmert, J. (1991), “Measuring product category involvement: a multitrait-multimethod study”, Journal of Business Research, Vol. 23 No. 4, pp. 363-71. Good, L.K. and Huddleston, P. (1995), “Ethnocentrism of Polish and Russian consumers: are feelings and intentions related?”, International Marketing Review, Vol. 12 No. 5, pp. 35-48.Gurhan- Canli, Z., & Maheswaran, D. (2000), “Cultural variations in country of origin effects”, Journal of Marketing Research, Vol. 37, No. 3, pp. 309- 317.Han, C. M. (1989), “The role of consumer patriotism in the choice of domestic versus foreign products”, Journal of Advertising Research, Vol. 28, No 3, pp 25-32. Han, C.M. (1990), “Country image: halo or summary construct?”, Journal of Marketing Research, Vol. 26, No. 5, pp. 222-9.Ibbotson Associates (2002), Stocks, Bonds, Bills, and Inflation 2002 Yearbook, Ibbotson, Chicago, IL.33 Insch, A. and Florek, M. (2009), “Prevalence of country of origin association on the supermarket shelf”, International Journal of Retail & Distribution Management, Vol. 37 No. 5, pp. 453- 471.Iwasaki Y. and Havitz M.E. (1998), “A Path Analysis Model of the Relationships between Involvement, Psychological Commitment and Loyalty”, Journal of Leisure Research, vol.30, No. 2, pp. 256-80. Jo, Myung‐Soo, Kent Nakamoto, and James E. Nelson (2003), “The Shielding Effect of Brand Image Against Lower Quality Country of origin in Global Manufacturing”, Journal of Business Research, Vol. 56, No. 8, pp. 637‐49. Johnson, E.J. and Russo, J.E. (1984), “Product familiarity and learning new information”, Journal of Consumer Research, Vol. 11 No. 1, pp. 542-50. Josiassen, A. and Harzing, A-W. (2008), “Descending from the ivory tower: reflections on the relevance and future of country-of-origin-research”, European Management Review, No. 5, pp. 264-270. Kajalo, Sami (2009), Lecture slides for Business Research Methods. Kaynak, E. and Cavusgil, S.T. (1983), “Consumer attitudes towards products of foreign origin: do they vary across product classes”, International Journal of Advertising, Vol. 2, pp. 147-57. Kinra. (2006), “The effect of country-of-origin on foreign brand names in the Indian market”, Marketing Intelligence & Planning, Vol. 24, No. 1,pp 12-30. Kochunny, C.M., Babakus, E., Berl, R. and Marks, W. (1993), “Schematic representation of country image: its effects on product evaluations”, Journal of International Consumer Marketing, Vol. 5 No. 1, pp. 5-25.34 Kotler, P., & Gertner, D. (2002), “Country as brand, product, and beyond: A place marketing and brand management perspective”, The Journal of Brand Management, Vol. 9, No. 4,pp 249-261. Kotler, P., S. H. Ang, S. M. Leong & C. T. Tan, (1999), Marketing Management: An Asian Perspective, 2nd ed. Prentice Hall. Koubaa, Y. (2008), “Country-of-origin, brand image perception, and brand image structure”, Asia Pacific Journal of Marketing and Logistics, Vol. 20, No. 2, pp 139. Krishnakumar, P. (1974), “An exploratory study of influence of country of origin on the product images of persons from selected countries,” PhD dissertation, University of Florida. Krugman, H. E., (1965), “The Impact of Television Advertising Learning without Involvement”, Public Opinion Quarterly, Vol. 29, pp. 349-356. Larkin, J., McDermott, J., Simon, D.P. and Simon, H.A. (1980), “Expert and novice performance in solving physics problem”, Science, Vol. 208 No. 14, pp. 335-42. Laroche, M., Papadopoulos, N., Heslop, L.A. and Mourali, M. (2005), “The influence of country image structure on consumer evaluations of foreign products”, International Marketing Review, Vol. 22 No. 1, pp. 95-115. Lastovicka J.L. and Gardner D.M. (1979), Components of Involvement”, in Attitude Research Plays for High Stakes, J.C. Maloney and B. Silverman (Eds.), Chicago, American Marketing Association, 53-73. Lawrence, C., Marr, N.E. and Prendergast, G.P. (1992), “Country-of-origin stereotyping: a case study in the New Zealand motor vehicle industry”, Asia Pacific International Journal of Marketing, Vol. 4 No. 1, pp. 37-51 Lee, C., & Green, R. T. (1991), “Cross-cultural examination of the Fishbein behavioural intentions model”, Journal of International Business Studies, pp. 289-305.35 Lin, L. and Chen, C. (2006), “The influence of the country-of-origin image, product knowledge and product involvement on consumer purchase decisions: an empirical study of insurance and catering services in Taiwan”, Journal of Consumer Marketing, Vol. 23 No. 5, PP 248–265 Lin, L.-Y. and Zhen, J.-H. (2005), “Extrinsic product performance signaling, product knowledge and customer satisfaction: an integrated analysis – an example of notebook consumer behavior in Taipei city”, Fu Jen Management Review, Vol. 12 No. 1, pp. 65-91. Malhotra, N. K. and Birks, D. F. (2007), “Marketing Research: An Applied Approach”, Third European Edition, Pearsons Education Limited, Essex, England. Marchant, C. and Ward, S. (2003), “At home or abroad: an examination of expatriate and cross- national differences in the use of country of origin information”, Journal of Asia Pacific Marketing, Vol. 2, No. 1, pp. 12-42.Mattilda, A.S., and Wirtz, J. (2002), “The impact of knowledge types on the consumer search process”, International Journal of Service Industry Management, Vol.13 No.3, 2002, pp 214- 230.McLain, S. and Sternquist, B. (1991), “Ethnocentric consumers: do they buy American?”, Journal of International Consumer Marketing, Vol. 4 No. 1, pp. 39-57. Moore, W.L. and Lehmann, D.R. (1980), “Individual differences in search behavior for a nondurable”, Journal of Consumer Research, Vol. 7 No. 3, pp. 296-307. Nagashima, A. (1970), “A comparison of Japanese and US attitudes toward foreign products”, Journal of Marketing, Vol. 34, pp. 68-74. Nagashima, A. (1977), “A comparative "made in" product image survey among Japanese businessmen”, The Journal of Marketing, Vol. 41, No.3, pp. 95-100.36 Neese, W.T. and Taylor, R.D. (1994), “Verbal strategies for indirect comparative advertising”, Journal of Advertising Research, Vol. 34 No. 2, pp. 56-69. Netemeyer, Richard G., Durvasula, Srinivas, Lichtenstein, Donald R. (1991), “A Cross-National Assessment of the Reliability and Validity”, Vol. 28, No. 3, pp. 320.Newman, J.W. and Staelin, R. (1972), “Pre-purchase information seeking for new cars and major household appliances”, Journal of Marketing Research, Vol. 9 No. 3, pp. 249-57. Niffenegger, P., Diamantopoulos, A., White, J. and Marmet, G. (1980), “How British retail managers view French and American products”, European Journal of Marketing, Vol. 14, No. 8, pp. 493-8. Okechuku, C. and Onyemah , V. (1999), “Nigerian consumer attitudes toward foreign and domestic products”, Journal of International Business Studies, Vol. 30, No. 3, pp. 611-622. Orth, U. and Firbasova, Z. (2003), “The role of consumer ethnocentrism in food product evaluation”, Agribusiness, Vol. 19 No. 2, pp. 137-53. Papadopoulos, N. (1993), “What product country images are and are not , in Papadopoulos, N. and Heslop, L. (Eds), Product Country Images, International Business Press, New York. Papadopoulos, N. and Heslop, L. (1993), “Product and Country Images: Research and Strategy”, The Haworth Press, New York, NY Park S-H (1996), “Relationship Between Involvement and Attitudinal Loyalty Constructs in Adult Fitness Programs”, Journal of Leisure Research, Vol. 28, no. 4, pp. 233-250. Petty, R.E., Cacioppo, J.T. and David, S. (1983), “Central and peripheral routes to advertisements effectiveness: the moderating role of involvement”, Journal of Consumer Research, Vol. 10 No. 2, pp. 135-46.37 Piron, F. (2000), “Consumers‟ Perceptions of the Country-of-Origin Effect on Purchasing Intentions of Conspicuous Products”, The Journal of Consumer Marketing, Vol. 17, No. 4, pp. 308–17. Pecotich, A. and Ward, S. (2007), “Global branding, country of origin and expertise An experimental evaluation”, International Marketing Review Vol. 24 No. 3, 2007 pp. 271-296 Roth, K. P. and Diamantopoulos, A. (2009), “Advancing the country image construct”,Journal of Business Research, Vol. 62, No.7,pp. 726-740.Roth, M. S. and Romeo, J. B. (1992), “Matching product category and country image perceptions: a framework for managing country-of-origin effects”, Journal of International Business Studies, Vol. 23, No. 3, pp. 477-497. Schooler, R. D. (1965), “Product Bias in the Central American Common Market”, Journal of Marketing Research, pp. 71-80. Selnes, F. and Troye, S.V. (1989), “Buying expertise, information search and problem solving”, Journal of Economic Psychology, Vol. 10 No. 3, pp. 411-28. Sharma, S., Shimp, T. A., & Shin, J. (1995), “Consumer ethnocentrism: a test of antecedents and moderators”, Journal of the Academy of Marketing Science, Vol. 23, No.1, pp. 26-37. Sheth, J. N., Mittal, B., & Newman, B. I. (1999), “Customer behavior: consumer behavior and beyond”, Fort Worth, TX: Dryden. Slama, M. E., A. Tashchian, (1985), “Selected Socioeconomic and Demographic Characteristics Associated with Purchasing Involvement”, Journal of Marketing, Vol. 49, pp. 72-82. Smith, W.R. (1993), “Country-of- origin bias: a regional labelling solution”, International Marketing Review, Vol. 10 No. 6, pp. 4- 12.38 Solomon, M. (2004), Consumer behaviour: buying, having, and being, Upper Saddle River, N.J.: Pearson Prentice Hall. Traylor, M. B., (1981), “Product Involvement and Brand Commitment”, Journal of Advertising Research, Vol. 21, pp. 51-56. Tse, D. K., & Gorn, G. J. (1993), “An experiment on the salience of country-of-origin in the era of global brands”, Journal of International Marketing, Vol. 1, No. 1, pp.57-76. Tyebjee T.T. (1979), “Response Time, Conflict and Involvement in Brand Choice”, Journal of Consumer Research, Vol. 5, No. 1,pp. 295- 304. Ulgado, F., & Lee, M. (1998), “The Korean versus American marketplace: Consumer reactions to foreign products”, Psychology and Marketing, Vol. 15, No. 6, pp. 595-614. Verlegh, P. W. J., and Steenkamp, J. E. M. (1999), “A review and meta- analysis of country-of-origin research”, Journal of Economic Psychology, Vol. 20, No. 5, pp. 521-546. Wall, M. and Heslop, L. (1989), “Consumer attitudes towards the quality of domestic and imported apparel and footwear”, Journal of Consumer Studies and Home Economics, Vol. 13, pp. 337-58. Wall, M., Liefeld, J., & Heslop, L. (1991), “Impact of country- of-origin cues on consumer judgments in multi-cue situations: a covariance analysis”, Journal of the Academy of Marketing Science, Vol. 19, No. 2,pp. 105-113. Wang, C. and Lamb, C. (1983), “The impact of selected environmental forces upon consumers‟ willingness to buy foreign products”, Journal of the Academy of Marketing Science, Vol. 11 No. 2, pp. 71-84. Watson, J. J., & Wright, K. (2000), “Consumer ethnocentrism and attitudes toward domestic and foreign products”, European Journal of Marketing, Vol. 34, No. 9, pp. 1149-1166.39 White, P.D. (1979), “Attitudes of US purchasing managers toward industrial products manufactured in selected European nations,” Journal of International Business Studies, Vol. 2, pp. 81-90 Williams, E. 1896), “Made in Germany”. London: Heinemann, cited in O‟Shaughnessy, J. O‟Shaughnessy, N. J. (2000), “Treating the Nation as a Brand: Some Neglected Issues”, Journal of Macromarketing, Vol. 20, No 1, pp. 56-64. Yaprak, A. (1987), “A cross- national comparison of consumer research measures”, Journal of International Business Studies, Vol. 18, pp. 35-49. Yu, J. and Albaum , G. (1999), “Effects of the change of sovereignty on consumer ethnocentrism and product preference in Hong Kong”, Journal of Euromarketing, Vol. 8, No. 1, pp. 63-82. Zaichkowsky, J. L., (1985), “Measuring the Involvement Construct”, Journal of Consumer Research, Vol. 12, pp. 341-352. Zeugner-Roth, K.P. and Diamantopoulos, A. (2009), “Advancing the country image construct”, Journal of Business Research, Vol. 62 No. 2009, pp. 726-740.
