Brand Equity and Country of Origin Relationship
Brand equity is considered a key indicator of the state of health of a brand, and its monitoring is believed to be an essential step in effective brand management (Aaker, 1991, 1992). Both researchers (e.g. Shocker et al., 1994) and practitioners (e.g. Biel, 1992) have argued for the importance of understanding the concept of brand equity. Country of origin is another important variable influencing consumer perceptions of brands (Hulland, 1999) and brand images (Ahmed et al., 2002). In the present study, consistent with the definition offered by Thakor and Katsanis (1997, pp. 79-80), country of origin is defined as “the country in which the product is made”[1]. The impact of country of origin on consumer perceptions or evaluations of products is called the “country of origin effect” (Samiee, 1994). Researchers have suggested that country of origin effects may impact the equity of certain brands (e.g. Thakor and Katsanis, 1997). For example, Aaker (1991) and Keller (1993) both argued that country of origin could affect a brand 's equity by generating secondary associations for the brand. Indeed, even a foreign-sounding name is known to affect a brand 's equity (Leclerc et al., 1994).
Increasingly, and for a variety of reasons, brands from one country are being made available to consumers in other countries (Shocker et al., 1994). In such instances, international marketers need to understand the sources of the equity of their brands. Some researchers have realized this and advocate extending the international consumer research scope to include brand equity (Wang, 1996). For example, measurement of brand equity across international boundaries is essential if brand managers are “to manage and control brand equity effectively” (Shocker et al., 1994, p. 156).
There is prolific research in both the areas of country of origin effects and brand equity. However, brand equity remains a complex phenomenon in the international context (Onkvisit and Shaw, 1989). Brand
Increasingly, and for a variety of reasons, brands from one country are being made available to consumers in other countries (Shocker et al., 1994). In such instances, international marketers need to understand the sources of the equity of their brands. Some researchers have realized this and advocate extending the international consumer research scope to include brand equity (Wang, 1996). For example, measurement of brand equity across international boundaries is essential if brand managers are “to manage and control brand equity effectively” (Shocker et al., 1994, p. 156).
There is prolific research in both the areas of country of origin effects and brand equity. However, brand equity remains a complex phenomenon in the international context (Onkvisit and Shaw, 1989). Brand
References: Aaker, D.A. (1989), "Managing assets and skills: the key to a sustainable competitive advantage", California Management Review, Vol. 31 No.2, pp.91-106. [Manual request] [Infotrieve] Aaker, D.A. (1991), Managing Brand Equity, The Free Press, New York, NY, . [Manual request] [Infotrieve] Aaker, D.A. (1992), "Managing the most important asset: brand equity", Planning Review, Vol. 20 No.5, pp.56-8. [Manual request] [Infotrieve] Aaker, D.A. (1996), Building Strong Brands, The Free Press, New York, NY, . [Manual request] [Infotrieve] Aaker, J.L. (1997), "Dimensions of brand personality", Journal of Marketing Research, Vol. 36 No.3, pp.345-55. [Manual request] [Infotrieve] Agarwal, S., Sikri, S. (1996), "Country image: consumer evaluation of product category extensions", International Marketing Review, Vol. 13 No.4, pp.23-39. [Manual request] [Infotrieve] Ahmed, S.A., d 'Astous, A. (1995), "Comparison of country-of-origin effects on household and organizational buyers ' product perceptions", European Journal of Marketing, Vol. 29 No.3, pp.35-51. [Manual request] [Infotrieve] Ahmed, S.A., d 'Astous, A. (1996), "Country of origin and brand effects: a multi-dimensional and multi-attribute study", Journal of International Consumer Marketing, Vol. 9 No.2, pp.93-115. [Manual request] [Infotrieve] Ahmed, Z.U., Johnson, J.P., Ling, C.P., Fang, T.W., Hui, A.K. (2002), "Country-of-origin and brand effects on consumers ' evaluations of cruise lines", International Marketing Review, Vol. 19 No.2/3, pp.279-302. [Manual request] [Infotrieve] Amonini, C., Keogh, J., Sweeney, J.C. (1999), "The dual nature of country-of-origin effects – a study of Australian consumers ' evaluations", Australasian Marketing Journal, Vol. 6 No.2, pp.13-27. [Manual request] [Infotrieve] Anderson, J.R. (1993), The Adaptive Character of Thought, Lawrence Erlbaum Associates, Hillsdale, NJ, . [Manual request] [Infotrieve] Arnold, D. (1992), The Handbook of Brand Management, The Economist Books Limited/Perseus Books, Reading, MA, . [Manual request] [Infotrieve] Australian Bureau of Statistics (2004), "Australian demographic statistics, population by country of birth", available at: www.abs.gov.au/ausstats/abs@.nsf/0/bbed38605d2d376aca256fcd007e710c (accessed 14 June 2005), . [Manual request] [Infotrieve] Balabanis, G., Mueller, R., Melewar, T.C. (2002), "The human values ' lenses of country of origin images", International Marketing Review, Vol. 19 No.6, pp.582-610. [Manual request] [Infotrieve] Biel, A.L. (1992), "How brand image drives brand equity?", Journal of Advertising Research, Vol. 32 No.6, pp.RC-6-RC-12. [Manual request] [Infotrieve] Biel, A.L. (1993), "Converting image into equity", in Aaker, D.A., Biel, A.L. (Eds),Brand Equity and Advertising: Advertising 's Role in Building Strong Brands, Lawrence Erlbaum Associates, London, pp.67-81. [Manual request] [Infotrieve] Chao, P. (1993), "Partitioning country of origin effects: consumer evaluations of a hybrid product", Journal of International Business Studies, Vol. 24 No.2, pp.291-306. [Manual request] [Infotrieve] Chao, P. (1998), "Impact of country-of-origin dimensions on product quality and design quality perceptions", Journal of Business Research, Vol. 42 No.1, pp.1-6. [Manual request] [Infotrieve] Cobb-Walgren, C.J., Beal, C., Donthu, N. (1995), "Brand equity brand preferences, and purchase intent", Journal of Advertising, Vol. 24 No.3, pp.25-40. [Manual request] [Infotrieve] d 'Astous, A., Ahmed, S.A. (1992), "Multi-cue evaluation of made-in concept: a conjoint-analysis study in Belgium", Journal of Euromarketing, Vol. 2 No.1, pp.9-31. [Manual request] [Infotrieve] de Chernatony, L., Halliburton, C., Bernath, R. (1995), "International branding: demand- or supply-driven opportunity?", International Marketing Review, Vol. 12 No.2, pp.9-21. [Manual request] [Infotrieve] Ettenson, R., Wagner, J., Gaeth, G. (1988), "Evaluating the effect of country of origin and the Made in the USA campaign: a conjoint approach", Journal of Retailing, Vol. 64 No.1, pp.85-100. [Manual request] [Infotrieve] Fazio, R.H. (1987), "Category-brand associations and their activations in memory", unpublished report, Oglivy Center for Research and Development, San Francisco, CA, . [Manual request] [Infotrieve]