Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
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
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).