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Country of Origin, Perceived Brand
Foreignness and Brand of Origin
When, where and why are customers sensitive
to the origin of a brand?
Patricia Bartlova Naomi Blyth Benedict Gamberling
Eleni Miltiadous Yasen Vlachev
Agenda
 When
• Brand of Origin
• Extension of Existing Brands
• Economic Cues
 Where
• Developing Countries Vs. Developed Countries
• Country Comparison
 Why
• Global Identity
• Global Identity and Global consumption Orientation
• Ethnocentrism
• Identity of Brand of Origin
• Perceived Brand Globalness
• Perceived Brand Foreignness
• Socio-economic-ethical and international factors
Identification of Brand origin
 Customers judge origin based on e.g. language knowledge
 Intention of purchase influenced by judgment about origin of
the product
 Brand value connected to
Perceived Brand Globalness/Foreignness
 The higher perceived brand foreignness, the higher it is valued
(Zhou, Yang and Hui, 2010)
 Introduce the concept of Confidence in Brand Origin
Identification
 High CBO  High PBF  Higher value of the brand
When Brand Origin Matters
 Specific consumer segments
 Purchases of high-involvement products
 Infrequent purchases
 Younger consumers more brand-sensitive
 Women more positive to foreign brands
 Situational characteristics of the
purchasing process (time for research,
stimuli etc.)
Extension of existing brands
 Successful brand extension
• Acceptance by the consumer and intention of purchase
 Consumers perception of global extension of a brand
• Overall brand quality and superiority
• Brand image/association and extension overlap
Influenced by brand quality and brand origin image
 Introducing perceived brand origin–extension fit model
(Sichtmann & Diamantopoulos, 2013)
Developing countries vs. developed
countries
 Developing Countries(China, India, Russia)
• The country origin of a brand, affects
 Extrinsic dimension
 Intrinsic or emotional dimension
 Developed Economies (USA, the UK, Germany)
• The country of origin of a brand is much less influential
for consumers as compared in developing economies
Country comparison
Country Perception
Australia  Hesitant in evaluating unfamiliar brands,
unless adequate information is provided
USA  Modest recognition of brands’ origins
 Easier recognition of American brands
Eastern Europe
(Hungary, Poland, Russia)
 Relatively minor role of interaction
between brand name and country of
origin in decision making
Asia  Brand origin is important
 India: foreign brands considered of higher
quality, technology, status and esteem
and lower price than the local ones
Global Identity
 Notion of global identity itself is linked to
consumers in developing economies, who are
seeking brands through which to enhance their
own self-concept, their social identity and which
would be compatible with their world views
Identification of Brand origin
 Customers are not every time able to identify a brand’s
origin correctly , only possess moderate knowledge about
true COO
 Leads to misclassification or lack of classification
 Influences purchase tendencies
 Causes loss of brand image
 Brand name can have stronger influence than actual COO
Perceived Brand Globalness
 A “quality surrogate”
 “A brand benefits from consumer perceptions that it is
‘global’[...] only if consumers believe the brand is marketed in
multiple countries and is generally recognized as global in
these countries” , Steenkamp, Batra, and Alden (2003)
 “Buying global brands serves to reassure buyers due to the
brand’s perceived dependability and reliability, in other
words, they trust a global brand“, Rosenbloom & Haefner (2009)
 Relationship between global brand importance and the
perceived risk
 Global brand is more important for females than for men
Perceived Brand Foreignness
 International retailers attention shift
 When brand foreignness is an advantage
 When brand localness is an advantage
Ethnocentrism
 Consumer ethnocentrism represents a
patriotic bias towards local or against
foreign brands
 Ethnocentric consumers' purchasing
attitudes are affected negatively or
positively depending on the country of
origin of the product and the brand
Socio-economic-ethical and
international factors
 Socio-economic characteristics:
Socio-economic status
Stereotypes
Price Awareness
Perceived risk
 International experience
Conclusions
• Where and Why depends on individual differences and
preferences and consumers’ country of origin
• Academic literature not consistent in its findings whether
brand origin plays a significant role in consumers’ decisions
• Researchers’ proposals
• International marketing managers should influence customer
acceptance of globally standardized brands by using brand
origin.
• Implementation of a deliberate strategy, expressed in the
marketing communication
• Brand name fonts, logo, and packaging
• Marketing measures, especially advertising copy (Usunier,
2011).
Conclusions
• Ethnocentric influences on brand preferences
• More localized approach (Moon and Jain, 2002, p.135)
• Market segment for global brands
• Consumers with high global identity, notable global presence and
low ethnocentrism, since they perceive those brands as superior,
with a higher quality and status (Guo, 2013, p.16).
Country of Origin, Perceived Brand Foreignness and Brand of Origin

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Country of Origin, Perceived Brand Foreignness and Brand of Origin

  • 1. Country of Origin, Perceived Brand Foreignness and Brand of Origin When, where and why are customers sensitive to the origin of a brand? Patricia Bartlova Naomi Blyth Benedict Gamberling Eleni Miltiadous Yasen Vlachev
  • 2. Agenda  When • Brand of Origin • Extension of Existing Brands • Economic Cues  Where • Developing Countries Vs. Developed Countries • Country Comparison  Why • Global Identity • Global Identity and Global consumption Orientation • Ethnocentrism • Identity of Brand of Origin • Perceived Brand Globalness • Perceived Brand Foreignness • Socio-economic-ethical and international factors
  • 3. Identification of Brand origin  Customers judge origin based on e.g. language knowledge  Intention of purchase influenced by judgment about origin of the product  Brand value connected to Perceived Brand Globalness/Foreignness  The higher perceived brand foreignness, the higher it is valued (Zhou, Yang and Hui, 2010)  Introduce the concept of Confidence in Brand Origin Identification  High CBO  High PBF  Higher value of the brand
  • 4. When Brand Origin Matters  Specific consumer segments  Purchases of high-involvement products  Infrequent purchases  Younger consumers more brand-sensitive  Women more positive to foreign brands  Situational characteristics of the purchasing process (time for research, stimuli etc.)
  • 5. Extension of existing brands  Successful brand extension • Acceptance by the consumer and intention of purchase  Consumers perception of global extension of a brand • Overall brand quality and superiority • Brand image/association and extension overlap Influenced by brand quality and brand origin image  Introducing perceived brand origin–extension fit model (Sichtmann & Diamantopoulos, 2013)
  • 6. Developing countries vs. developed countries  Developing Countries(China, India, Russia) • The country origin of a brand, affects  Extrinsic dimension  Intrinsic or emotional dimension  Developed Economies (USA, the UK, Germany) • The country of origin of a brand is much less influential for consumers as compared in developing economies
  • 7. Country comparison Country Perception Australia  Hesitant in evaluating unfamiliar brands, unless adequate information is provided USA  Modest recognition of brands’ origins  Easier recognition of American brands Eastern Europe (Hungary, Poland, Russia)  Relatively minor role of interaction between brand name and country of origin in decision making Asia  Brand origin is important  India: foreign brands considered of higher quality, technology, status and esteem and lower price than the local ones
  • 8. Global Identity  Notion of global identity itself is linked to consumers in developing economies, who are seeking brands through which to enhance their own self-concept, their social identity and which would be compatible with their world views
  • 9. Identification of Brand origin  Customers are not every time able to identify a brand’s origin correctly , only possess moderate knowledge about true COO  Leads to misclassification or lack of classification  Influences purchase tendencies  Causes loss of brand image  Brand name can have stronger influence than actual COO
  • 10. Perceived Brand Globalness  A “quality surrogate”  “A brand benefits from consumer perceptions that it is ‘global’[...] only if consumers believe the brand is marketed in multiple countries and is generally recognized as global in these countries” , Steenkamp, Batra, and Alden (2003)  “Buying global brands serves to reassure buyers due to the brand’s perceived dependability and reliability, in other words, they trust a global brand“, Rosenbloom & Haefner (2009)  Relationship between global brand importance and the perceived risk  Global brand is more important for females than for men
  • 11. Perceived Brand Foreignness  International retailers attention shift  When brand foreignness is an advantage  When brand localness is an advantage
  • 12. Ethnocentrism  Consumer ethnocentrism represents a patriotic bias towards local or against foreign brands  Ethnocentric consumers' purchasing attitudes are affected negatively or positively depending on the country of origin of the product and the brand
  • 13. Socio-economic-ethical and international factors  Socio-economic characteristics: Socio-economic status Stereotypes Price Awareness Perceived risk  International experience
  • 14. Conclusions • Where and Why depends on individual differences and preferences and consumers’ country of origin • Academic literature not consistent in its findings whether brand origin plays a significant role in consumers’ decisions • Researchers’ proposals • International marketing managers should influence customer acceptance of globally standardized brands by using brand origin. • Implementation of a deliberate strategy, expressed in the marketing communication • Brand name fonts, logo, and packaging • Marketing measures, especially advertising copy (Usunier, 2011).
  • 15. Conclusions • Ethnocentric influences on brand preferences • More localized approach (Moon and Jain, 2002, p.135) • Market segment for global brands • Consumers with high global identity, notable global presence and low ethnocentrism, since they perceive those brands as superior, with a higher quality and status (Guo, 2013, p.16).