Managerial implications The results indicate that country of origin is an important variable which can affect the equity

of a brand. Marketing managers operating in the international context must identify the sources of brand equity, and understand the importance of incorporating country of origin into their brand equity measurement. In addition, they will have to estimate the influence of the country of origin of the brand, while tracking or estimating brand equity in the host country. The present research addressed the above two issues in the international context. First, brand equity was measured for a particular product category. Second, the impact of country of origin on the dimensions of brand equity was investigated. Overall, in the face of the increased significance attached to branding and measurement of brand equity, it is important for marketers to understand the influence of country of origin on the equity of their brand. To the best of the authors knowledge, this research is one of the first studies integrating and testing empirically two important areas of marketing, namely brand equity and country of origin effects. Notably, the present study used a sample of actual consumers, and therefore its findings are more open to generalization than most previous research often based on student samples (e.g. Johansson et al., 1985; Ettenson et al., 1988). The results of the study have implications for multinational production, marketing communications, global branding, brand equity measurement and positioning decisions. Traditionally, the availability of cheap labor has driven multinationals to move their production to other countries, without much consideration for issues such as the extent to which consumers associate the product category with the country in question. For example, Nike had shifted shoe manufacturing to China, a country not very strongly associated with the product category (athletic shoes). Companies base their sourcing decisions on comparative advantage or cost differentials often ignoring the effect of such decision in terms of country image (Jaffe and Nebenzahl, 2001, p. 21). A particularly important implication of the present study is that such moves could adversely influence the consumer-based equity of brands in some product categories. Our results suggest that marketing managers considering offshore manufacturing/sourcing options should carefully weigh cost considerations with the risk of the possible erosion of brand equity. Marketing managers will also need to examine consumers product-category associations in target countries. Further, our results suggest that when making overseas manufacturing decisions, Japanese automobile/television manufacturers would be better off selecting China

compared to Malaysia as a manufacturing location. The results have implications for Australian importers of the brands Sony, Toshiba and Hitachi (televisions) and Toyota, Mitsubishi and Suzuki (cars). Our findings suggest that Australian importers (in the product categories of cars and televisions) would be better off importing these brands from Japan, rather than from China or Malaysia, and selecting brands made in China compared to Malaysian ones. In addition, our results have implications for marketing communications. For the country of origin of the brand to contribute to its consumer-based equity, consumers need to strongly associate the country of origin with the product category in question. Marketing managers will have to consider this when designing their marketing communication strategy. Managers will not only need to focus on developing a favorable image for the country of origin of the brand but must also work toward developing strong country-product category associations in the target consumers minds. Furthermore, our results indicated that country of origin affects all four dimensions of consumer-based brand equity. Brand managers will have to take country of origin into consideration in their global branding decisions and to manage the dimensions of consumer-based brand equity more effectively. For example, brand associations must be managed in such a way that the brands country-of-origin effects contribute to the overall equity of the brand. Leveraging secondary associations is an important way of building a brands equity (Aaker, 1989; Keller, 1998) and the results of the present study could help brand managers by suggesting the countries of origin from which they could leverage secondary associations for a brand. Finally, our results confirmed our hypothesis that consumer-based brand equity is product-category specific. When a brand (e.g. Sony) offers a variety of product categories (e.g. video tapes, televisions), brand managers should monitor and track the brands consumer-based equity for each product category. That is, higher brand equity in one product category does not necessarily mean similarly high brand equity levels in other product categories.

Managerial implications

The results indicate that both macro and micro country images affect the consumerbased equity of a brand. Traditionally, marketers focus has been on developing the countrys reputation for product quality. Our results show that marketers need to go a step further and manage the image of the country at both macro and micro levels, while also managing their marketing mix. Our findings suggest that the contribution of each consumer-based brand equity dimension to the relationship varies according to the product category. The implications for brand managers are that they need to manage and track the impact of consumers country image for each of the dimensions of brand equity. For example, consumers country image perceptions impact more on the perceived quality dimension for cars whereas country image perceptions influences consumers brand associations dimension more in the case of televisions. There are also implications in our results for national governments seeking to manage the images of their countries and export products. Countries such as Taiwan have engaged in government- sponsored media campaigns in the USA (Chao et al., 2003: 482). The results of the present study suggest that it is necessary for a government to manage both macro and micro images of their country in overseas markets, since both macro and micro images affect the consumer-based equity of brands. Our results also suggest that the relative emphasis marketers place on the macro vs micro country image in marketing communications should be product category specific. For example, our results indicate that marketing managers would be better off emphasising the macro country image, compared with the micro country image, for televisions, whereas the micro country image should be emphasized for cars. Further, our results suggest that countries and national governments should work towards improving the performance of their brands in target foreign markets. That is, both China and Malaysia would be better off facilitating improved performance of the brands originating from their country. For example, Malaysia would benefit from working with Proton, whereas Chinese exporters should strengthen their various brands in the consumer electronics sector. Such brand-building activities could enhance the images of these two countries in the long run and help tilt in their favour the opinion of manufacturers from developed countries considering them as prospective production locations. Further, such measures could also influence favourably consumer perceptions of these two countries in target foreign markets.

Conclusion and implications The image of a country that consumers perceive is one of the factors that consumers consider in making their purchase decision particularly in the purchase of consumer durables such as household electrical appliances. As such, country-of origin image would have an impact on the equity of such goods. This study investigates the relationships between country-of-origin image and brand equity of electrical appliances, which includes televisions, refrigerators and air-conditioners. Viewing the results of the study, the findings suggest two things. First, country-of-origin image has a significant impact on brand equity dimensions and brand equity. Secondly, the brand equity dimensions namely brand distinctiveness, brand loyalty and brand awareness/ associations have significant influence on the formation of brand equity of electrical appliances. Among these three dimensions brand loyalty has the greatest contribution to the development of brand equity. This implies that producers of household electrical appliances should put greater emphasis in creating brand loyalty for their products. To ensure loyal customers, producers and retailers need to build long-term relationship with their customers, offer and maintain high quality products, and provide good services, including delivery and installation as well as after sales services such as maintenance and repair. Apart from that, producers of household electrical appliances should always try to enhance and promote the good image of their brands original country in order to enhance the overall image of the brand in all their marketing practices particularly advertising and personal selling. Brands from well-established or good image countries generally are easier to sell than brands from countries with unfavorable image. Producers of brands from countries with favorable image can also capitalize the good image in their brand naming strategy. Besides, marketers who want to benefit from favorable country image should highlight the brands of superior quality that originate from the same country. This emphasis may help consumers to generalize product information over the countrys brands. For example, Sharp could emphasize that its television sets are as good as Sonys. Although different manufacturers produce these two brands, the brand originates from the same country, that is, Japan.

Conclusion Apart from the other variables that consumers perceive as being responsible for their choice of particular brands, country of origin image is already proved as a strong option to the consumers particularly in consumer goods and consumer durable goods segments. To the best of the knowledge of the authors, no study was available in this subject in pharma market. In this particular article, the authors have tried to investigate the relationships between country of origin image and brand equity in branded generic drugs in Indian pharma market. This study has proved that country of origin image definitely influences consumers overall perception of brands. There were differences in influences across highly reputed brands and comparatively less reputed brands. The results of this study reveal three definite propositions. First, country of origin image has a high degree of positive effect on brand equity components (brand strength and brand awareness) and brand equity. Secondly, brand equity of branded generic drugs is significantly affected by the brand equity components and brand awareness has the major contribution, followed by brand strength to the formation of brand equity. This result suggests that the marketers should emphasise in creating extensive brand awareness of their products among the medical fraternities. Necessary marketing strategies should be taken up to enhance the brand recognition and in turn, brand recall for a sustained prescription support. Thirdly, both brand strength and brand awareness partially mediate the effect of country of origin image on brand equity. Brand strength has been proved to be very effective in this regard. A futuristic brand with definite characteristics of stability and leadership in market is expected to have a higher level of brand equity. The drug manufacturers should concentrate on the brand to exist in market for a longer period of time to enhance its stability. Again, pharma marketers who want to benefit from country of origin image should highlight the superior quality of their brands that originated from a particular country. It will add value to the promotional strategies of the pharma companies to establish their brand equity in the Indian market.

Implications for managers The current study was done in Kolkata megapolis area within the state of West Bengal, India by using a questionnaire to a sample of practicing physicians randomly selected from lists provided by the local chapters of Indian Medical Association. It focused on the brand equity of the branded generic products and its correlation with the country of origin of the products. This study inferred that brand equity is highly related to the two components, i.e. brand awareness and brand strength and their degree of relatedness is very high. Moreover, it shows that brand awareness contributes more than brand strength. When the impact of country of origin was taken into account, the following points were noted: . Country of origin has a distinct influence on brand equity. . A strong correlation is present between country of origin and brand awareness that finally acts as an influencing factor in differentiating the brands in the minds of physicians. . Country of origin plays an important role in building brand loyalty that leads to a consistent prescription support from the physicians. . There is a positive relationship between country of origin image and relevance of the branded generics. The study explored that in India, physicians prefer the pharmaceutical brands that originate from a country which is rich in research and development, maintains a high level of quality, maintains an image of more new drug development and prestigious in terms of drug manufacturing. In this particular case, country of image plays a very crucial role in establishing consumers overall perception of brands. Country of origin influence will be stronger when the consumer is not familiar with a product category (Usunier, 2000), which can be categorised in novice. Novices are expected to use country of origin attribute under any circumstances as they have lack of sufficient product knowledge and limitation of time as well. Based on this theory, we can say that young and junior doctors would prefer country of origin image at any point of time.Onthe other hand, expert consumers, i.e. senior and experienced medical practitioners only rely on country of origin attribute when the product attribute is not very prominent. Managers, in this particular case,

categorise the physicians and set their marketing communication strategy accordingly. The usage of country of origin attribute can also be determined by the types of products. Therefore, this effect varies by product category. Generally, the products that can be categorised as high involvement products are more relevant to the concept of country of origin than low involvement ones. Since, branded generics vary from low involvement (low level antibiotics, anti-acids, anti-pyretic etc.) to high involvement items (high level antibiotics, hormonal products, psychiatric products etc.), managers of related companies can utilize country of origin concept to the physicians accordingly for creating the long-term brand strength of the products. Country of origin is an important factor that increases the equity to the customers. Overall, this study aimed to prove the relationship between country of origin image and brand equity, a relationship mediated by the identified components of brand equity. The result shows that there is a high correlation between the variables discussed. Country of origin image upon the consumers can be considered as a factor that can not be easily regulated by the marketers, but, undertaking relevant marketing strategies, this factor may overcome the power of well-known brands in shaping brand image in consumer minds.

Conclusion Consumers in making their decision to purchase something especially electronic products have to consider COO image as one of the most important and effective factors and also considers that as a sign of quality. Results of this study show, three factors named brand loyalty, perceived quality and brand association/awareness introduced as brand equity dimensions.This research also indicates that these three dimensions have significant effects on brand equity. In other words, these dimensions apart from the brand equity dimensions or the value added and by using these three dimensions we can evaluate the brand equity. In other words, the amount of brand loyalty, perceived quality and brand association/awareness indicate brand equity. Since the relations of three dimensions of brand equity with brand equity is positive, therefore, it can be said that whatever the brand loyalty be higher, it can leads to the increasing of their brand equity. The results also indicated that brand country image gives impact on consumers

perceived quality and brand awareness/association significantly and positively. Country image of a brand has very important role in consumer purchasing decisions, especially for electronic products. Consumers put their interest on a brand according to their perceptions of the origin country and they expand their information related to the brand. Appropriate information about the country helps to create a positive attitude towards the brand which will lead to the desired image that the brands want. The results indicate significant and positive impact of the brand owners country, which indicate that consumers do think that the products in industrial countries with lots of experiences have higher quality compare to other countries which have little experience or which just joined the industrial countries. Aprobable interpretation for the expected relationship for Iranian students about the countries perceptions with positive image is, the level of technological development in these countries and their history in the production of these products are important and whether Iranians students consider them as high quality and reliable or not. Although consumers encounter lots of brands in market which consumers almost receive equal perception of their performance and product profile, but image which is available from a country, adds more value on that and give more advantages compare with the other competitors. Consumer perceptions about the country almost transfer to the originality of a brand in which where a country produces the product. These consumers feel that the brands which belong to countries with good image are more reliable rather than brands that are produced in countries with a less desirable image. As a result these brands are preferred brands and selected during the purchasing decision process and consumers become loyal to them. Results indicated that image of the brand owner country has a significant effect on the association/awareness of the brand. For buying electronic products, this relationship may be interpreted almost all the time; consumers relate the brand quality with COO image. Since the consumers of this study are educated, this fact that they were aware of the country of their selected brands was probable. Countries with good image are almost familiar to the consumers and usually understood the brand producers with high quality. Such relationship exists between country image and the association/awareness of the brand. Research results confirm the previous researches and their results such as: Pappu et al. (2006, 2007), Yasin et al. (2007), Hamzaoui-Essoussi and Merunka (2006), Zeugner-Roth et al. (2008) and Baldauf et al. (2009).

The results of the hypotheses related to the manufacturer country, confirm studies of Chang and Liu (2009) and recent research of Wong et al. (2008) in China. They express their idea about the importance of producer country effects on young people in this way: According to the globalization and since young people used to see the products from around the world which is produced by a country except the owner of that brand, therefore this issue confirm this claim that country image has no great effect on young people. Result only supports COM effects on brand loyalty. On the other hand, since the clients of the products in developing countries, tend to purchase products belong to famous countries in order to demonstrate their selfesteem and success, therefore the importance and effects of country image will be obvious. Thus, emphasizes on the countries which are the owner of brand for common products has more effect compared with the products which have personal and private usage. The purpose of the present study is not only considering the effect of subsets of origin country on brand equity, but we also wanted to show the moderating effect of product involvement on outlined relationships in model, in which the obtained results show the importance of that and the effects of manufacturer country for the product with high involvement and vice versa (for product with low involvement, country image of brand is important and effect directly on dimensions of brand equity). As result shows for product with high involvement (laptop) only manufacturer country has positive and significant on brand equity dimensions (brand loyalty and perceived quality). In developing countries, young consumers with lower income levels who cannot afford to buy this products every year they try to make correct purchase decision and in this process existing stereotypes of manufacturer countries is critical factor. In the other hand for product with low involvement (mobile phone) county of brand positively influence brand loyalty, perceived quality and association/awareness (as brand equity dimensions). Because these products are purchased several times a year, most of these young consumers are not looking for long-term performance in this product category but are looking to satisfy his/herself need for uniqueness through well-known brands which belongs to famous countries (like Japan), so this research findings is not unexpected.