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Khalid I. Al-Sulaiti
PhD Student, Department of Marketing, University of Strathclyde, Glasgow, UK
Michael J. Baker
Professor of Marketing, Department of Marketing, University of Strathclyde,
Glasgow, UK
cantly on the basis of national competitiveness, country of origin In the modern marketplace defining the
product/service and country (COO) effects (sometimes referred to as country of origin can be a very complicated
of origin. The country of product country image or PCI) have attracted task. The growth of multinational companies
origin may be an important growing attention. and the evaluation of hybrid products[2], with
element in the perceptions This literature review covers most of the components from many source countries,
consumers have of products citation on the subject and is believed to be have in many cases blurred the accuracy or
and services especially where the most comprehensive and up-to-date validity of made in labels (Baker and
little other information is currently available. The review opens with Michie, 1995; Baughn and Yaprak, 1993;
known. However, the question some definitions of COO effects and is then Chao, 1993; Yaprak and Baughn, 1991). For
of how much influence the organised chronologically and thematically. example, Sony is a Japanese manufacturer
country of origin provides in The period covered is from 1965 to early 1997 but some of its products are assembled out-
product and service evalua- and the themes addressed include the evalua- side Japan in countries like Singapore (Baker
tions remains unanswered and Michie, 1995). With this example, the
tion of products, stereotyping, the effects of
and a number of other major product assembled in Singapore would be
demographics on consumers perceptions of
issues have yet to be denoted assembled in Singapore and that
imports, perceived risk and country of origin
resolved. Directions for future assembled in Japan would be considered as
effects and, finally COO effects on service
research are developed. made in Japan (see Figure 1).
decisions.
Figure 1
Definition Country of origin definition
Country of origin effects have been defined in
many ways in the literature. According to Assembled Made in
Sony in Japan
Wang and Lamb (1983), country of origin Japan
effects are intangible barriers to enter new
markets in the form of negative consumer
bias toward imported products. Johansson
et al. (1985) and Ozsomer and Cavusgil (1991)
Assembled Assembled
define country of origin as the country where Sony in in Singapore
corporate headquarters of the company Singapore
attitude of American consumers toward addition, the results indicated that neither
foreign products. Therefore, the question- national nor regional labelling appeared to be
naire asked 105 business administration more effective than the other. The products of
students and 50 psychology students to Germany were rated better than those of
indicate their opinions of products from ten Asia, India and Western Europe. On the other
different nations: hand, US products also were rated better than
1 USA.
those of India and Western Europe.
2 Germany.
Schooler (1971) concluded the following:
3 Japan.
The older age group rated the products of
4 France.
Asia, Africa, West Germany and North
5 Canada.
America lower than the younger age group.
6 Italy.
Females evaluated foreign products higher
7 UK.
than males.
8 Sweden.
Educational level and intensity of bias were
9 Belgium.
observed. Consumers with a high level of
10 Denmark.
education were more in favour of foreign
Products were mechanical, food, and fashion products than those with limited education.
merchandise. Reierson (1966) found that The group composed of non-white people
stereotyping of foreign products was present evaluated products from Africa, Latin
among the American students. America and India better than the group of
Reierson (1967) continued his work of white people.
investigating American students attitudes The white group evaluated the products of
towards foreign products and concluded that US and North America better than non-
if the prejudice of consumers toward a white.
nations product is not too intense,
consumers attitude may be made signifi- Nagashima (1970) compared Japanese and
cantly more favourable by even slight American attitudes toward foreign and
exposure to communication and promotional domestic products by using the semantic
devices (p. 386). differential method. The purpose of the study
Schooler and Wildt (1968) measured the was to measure the cross-cultural image of
elasticity of product bias[3] and 236 student made in products as produced by US and
respondents were selected randomly and Japanese businesses. The study consisted of a
divided into six groups. Each group examined random sample of 230 Minnesota businesses
two pieces of glassware, one of which was chosen from the Minnesota Directory of Man-
labelled as American, and the other as ufacturers and 100 Tokyo businesses chosen
Japanese. The labels were authentic, but the from the Tokyo Directory of Companies.
products were identical pieces of a domestic Countries used were USA, Japan, Germany,
manufacturer. Subjects were asked to UK, France, Italy, Switzerland, and Canada.
indicate a purchase preference. Schooler and The questions were carefully translated into
Wildt (1968) noticed that many American Japanese making sure that the associative
consumers were biased against Japanese value of the language was not lost in the
products because of their national origin. In translation. The author used a seven-point
1969 Schooler and Sunoo investigated the scale with each scale position arbitrarily
[ 151 ]
Khalid I. Al-Sulaiti and weighted from good (+3 points) to bad product image of Americans and people from
Michael J. Baker (3 points). developing countries and to investigate the
Country of origin effects: a Consumers were asked to mark the seven- effect of demographic variables on the made
literature review point scale for reliable-unreliable, and list in image among those countries. Product
Marketing Intelligence & the product which first came to mind where classes used in this study were mechanical
Planning they saw the names of the countries; which
16/3 [1998] 150199 products, food products and fashion products.
countrys product they would choose if price, Specific products used for evaluation in this
quality and styling were equal; and which study were automobiles, television sets, soft
country produces products of the greatest drinks and dress shirts. Respondents
value. Nagashima (1970) found that the made (student, staff, faculty members and their
in stereotype differed among Japanese and
families) were asked about their perceptions
American businessmen. Japanese business-
of countries and their perceptions of the
men rated made in Germany as the best
quality of products.
while American businessmen gave the
The results of the study showed that people
highest rating to their domestic label. The
from developing countries tended to have an
British were recognised for their excellent
craftsmanship, while US and Japanese unfavourable made in image of their home
businessmen rated France the lowest of the countrys products in terms of workmanship,
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French brand names were found to be hard In 1984, Erickson, et al. (1984) analysed the
to recognise. country of origin effects on the evaluation of
American products were seen as techni- automobile brands. Data were collected from
cally advanced in nature, produced by mass 96 MBA students at the University of Wash-
production methods. ington. Subjects were asked about their
Respondents rated the UK first in electrical beliefs and attitudes towards ten automobile
appliances, textiles, food and pharmaceuti- models (e.g. four US, two German and four
cal products, second in automobiles and Japanese models). Semantic differential
last in cosmetic products, while France scales were used for all rating questions used
ranked first in automobiles and cosmetics, in the questionnaire. Respondents were also
second in textiles and food and last in asked to rate their familiarity with each auto,
electrical appliances and pharmaceutical after which they provided an overall rating
products. on a five-point semantic scale.
Products made in USA failed to be the The empirical results indicated that
first choice for the UK consumers in all of country of origin affects beliefs but not
the product classes examined. Accordingly, attitudes. The authors argued that the study
it ranked second in electrical appliances, demonstrated that image variables also affect
cosmetics and pharmaceutical products beliefs through inferences made by
and last in automobiles, textiles and food. consumers: It also indicated that the effect of
In terms of consumer profile, products image variables on attitude was not direct;
made in USA were more appealing to the any influence they have appeared to be a
younger market while products made in secondary one acting through beliefs (Erick-
France were more favourable to the son, et al., 1984).
feminine market, and British products Morello (1984) did a comparative research
were more appealing to the older group. on the image of domestic and foreign
products. The purpose of his study was to
In an extension of his earlier study, Narayana
determine what the relationship is between
(1981) examined the aggregate image of
the image of a country and the image of the
American and Japanese products. The
products made in that country. Seven coun-
aggregate image for any particular countrys
tries were used in the study, namely:
product refers to the entire connotive field
1 Belgium.
associated with that countrys product offer-
2 France.
ings, as perceived by consumers (p. 32).
3 Holland.
Narayana (1981) employed the semantic
4 Italy.
differential format used by Nagashima in the
5 Spain.
1970 study. The same 20 criteria were
6 USA.
measured on seven-point scales. A random
7 USSR.
sample of 100 residents of Fukushima, Japan,
8 West Germany.
and 100 residents of Moscow, Idaho, were
selected for this study. However, the aim of Morello (1984) asked a Dutch group of 29
Narayanas (1981) study was to find differ- students and an Italian group of 37 students
ences between US and Japanese products. to rate the products from the eight selected
The findings of the study indicated that US countries using 12 sets of bipolar adjectives.
consumers perceived their countrys home The results indicated a significant
[ 154 ]
Khalid I. Al-Sulaiti and relationship between these two images and Heslop and Wall (1985) examined the differ-
Michael J. Baker the research concluded that a country of ences between males and females on the basis
Country of origin effects: a origin effect does exist and may affect con- of country of origin product image. A total of
literature review
sumer buying behaviour. 635 Canadian men and women were asked
Marketing Intelligence & Johansson et al. (1985) developed a multi- their opinions about products from 13
Planning
16/3 [1998] 150199
cue method for examining the impact of coun- different countries. They found that products
try of origin on product evaluation. The prod- made in Canada were ranked the highest by
uct class used was automobiles with ten car both males and females except for womens
models made in three different countries shoes, where Canada came second after Italy.
namely, Japan, US and Germany and 13 It was also noticed that males preferred
selected attributes (price, handling, horse- Italian clothing over the Canadian in terms of
power, acceleration, gas mileage, safety, quality, while Romanian males clothing was
driving comfort passenger comfort, rated lower than clothing from other
reliability, durability, workmanship, styling countries in the group. On the other hand,
and colour selection). Convenience samples clothing made in Far Eastern countries
of graduate students from the USA and Japan was rated the lowest by both males and
were used. The American sample consisted of females. Moreover, the results also indicated
70 graduate students at a West Coast univer- that females gave higher ratings in terms of
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sity and the Japanese sample of 82 students at quality to almost all countries than males
six universities. The questionnaire was pre- did, except for South Korea, Hong Kong and
sented to each sample in either a group ses- the Philippines.
sion or the classroom. Then the students were Becker (1986) measured US consumers
asked to consider each of the models on each perceptions of the price/quality relationship
attribute, and also to rate the importance of of American vs. Japanese products. Four
each attribute. The findings of the study indi- hundred individuals passing a card table set
cated that country of origin effects were rela- up in a shopping area of Boston were
tively minor when a multi-attribute approach requested to participate in a four-question
was used[5]. Johansson et al., (1985) survey. Of these, 20 collected questionnaires
concluded that country of origin effects may were incomplete for data analysis. The
be less significant than has generally been findings of the research indicated the
believed, and they may occur predominantly existence of the halo effect pattern bolster-
in relation to evaluation of specific attributes ing the pervasive image of products made in
rather than overall evaluations (Johansson Japan. According to Becker this was found
et al. 1985, p. 395). Thus, their findings even when the Japanese product was of lesser
supported the hypothesis that the country of price. In addition, nationalism was found to
origin is used as a surrogate variable to be a dominant factor in influencing the
evaluate a product when respondents have Americans purchasing behaviour when
limited knowledge about that product. price and quality were constant. They desired
In their study, Festervand et al. (1985) to purchase domestic products, but not at
investigated consumers perceptions of the expense of perceived inferior quality
imports and their attitudes towards (p. 111).
countries product quality. Using a self- Ofir and Lehmann (1986) measured the
administered questionnaire, a random sam- country-level images of ski resorts in three
ple of 1000 consumers were selected in ten European countries Switzerland, France
large south-eastern US cities. Only 259 usable and Austria. A survey was conducted in order
questionnaires were obtained for a response to gather data for the study: 269 skiers attend-
rate of 26 per cent. A four-point scale ranging ing a ski show in the city of New York were
from strongly disagree (1) to strongly agree asked to rate each of the three countries on a
(4) was used in the study for obtaining data on five-point scale for ten attributes, namely,
the respondents general attitude towards modern, exciting, entertaining, challenging,
different aspects of product quality for each friendly, honest, sophisticated, romantic,
country. The countries used were UK, France, picturesque, and expensive. The findings
Germany, Japan and the USA. The product revealed that the images of Switzerland,
categories used were mechanical, food, fash- Austria, and France were relatively homoge-
ion merchandise, electronic equipment, and neous with Switzerland and considered
leisure goods. Respondents were asked to rate slightly more positively than France (Ofir
the given countries in terms of product qual- and Lehmann, 1986). Thus, American skiers,
ity. Minor differences in attitude were found according to the findings, could not
across countries and American consumers distinguish between resorts in European
perceptions of the countries products were countries, demonstrating a low level of
mixed across the different product categories. familiarity with the product.
[ 155 ]
Khalid I. Al-Sulaiti and Papadopoulos et al. (1987) examined con- different product and marketing mix images.
Michael J. Baker sumers perceptions of foreign consumer At the same time, the study revealed no causal
Country of origin effects: a goods. Subjects from Canada, UK and France relationship between this image dimension
literature review were asked to assess products from the US, and actual market behaviour.
Marketing Intelligence & Japan, Sweden, Canada and their own Ettenson, et al. (1988) presented conjoint
Planning analysis as an alternative method for
countrys products. Respondents were chosen
16/3 [1998] 150199
through systematic cluster or quota samples. examining the effect of country of origin in
A random sample of 250 to 300 respondents relation to a made in the USA campaign.
were collected from each country. The The products used were a ladies blouse and
authors used the drop-off/pick-up method for mens dress shirt. Attributes used were style
their study. According to Papadopoulos et (for blouse) cut (for shirt), quality, fibre
al. (1987), this method gave high response content, price, and brand. Additionally, the
rates, averaging about 75 per cent at compara- country of origin was manipulated in a
tive low cost. A structured, self-administered conjoint study which assessed consumer
interview schedule was used in order to stan- decision making before and after the intro-
dardise questions across countries. Products duction of the made in the USA campaign.
were evaluated on the basis of performance A total convenience sample of 105 students at
(two scales), price (three scales), before and the University of Maryland was invited to
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after purchase product support (two scales), take part in the study and 55 students com-
social image (three scales), market availa- pleted both the pre-test and the post-test
bility (five scales), and behavioural compo- The results of the study demonstrated that
nent (two scales). The study revealed the contrary to previous findings, the effect of
following conclusions: country of origin was relatively small both
There is no question that a country of before and after the launching of that
origin effect does exist. campaign. From these findings it can be con-
Both consumers and industrial buyers are cluded that product cues (e.g., price and
affected by made in images. quality) may have a stronger effect on con-
Made in stereotype can be changed, at sumer product evaluations than country of
least in the long term. origin information. Furthermore, the
Price may affect foreign product authors suggested that retailers should be
perceptions. cautious in using patriotic themes in promo-
Foreign stereotypes may vary across prod- tion since their effectiveness has yet to be
uct categories on consumer types documented (Ettenson et al., 1988, p. 85).
(Papadopoulos et al., 1987, p. 9). Al-hammad (1988) investigated the Saudi
Arabian market for selected imported goods
Darling (1987) analysed the general attitude of (with specific reference to UK suppliers) at
Finnish consumers towards the products of both country and brand levels. The study
various countries (UK, France, Japan, USA examined Saudi Arabian economic and
and West Germany). Data were collected in cultural factors and the attitudes of the Saudi
1975, 1980, and 1985 from 1,113 consumers consumer and reseller to the product and its
living in three different cities in Finland. suppliers. The results showed that the
Several business companies were chosen, and majority of Saudi consumers considered
a random sampling of managers and employ- price to be the most important attribute in
ees from these companies were invited to the case of products necessitating higher
participate in this study. A random sample of expenditure, either by way of a single pay-
faculty, staff and students were asked to ment or frequent payments. In terms of the
participate in the study as well. consumer profile the results demonstrated
Darling used an identical form of question- that both age and income tended to have a
naire for the data collection for each year of positive correlation with the attributes of
the study including 31 Likert-type price and quality in the case of carpets and
statements: 13 of them dealt with different air-conditioners, and a negative correlation
product dimensions, 13 with marketing prac- with the attributes of quality and mainte-
tices, and five with the general importance of nance for cars and design of outerwear and
the products to the respondents. Respondents refrigerators. In the case of educational level,
then were asked about their attitudes regard- it was found that the higher the level of
ing products made in the above-mentioned education, the more people are in favour of
countries, marketing practices, and the impor- imported products than those with low level
tance of a products country of origin. The of education.
results of the study indicated significant dif- On the other hand, the Saudi resellers
ferences in consumers attitudes in the three considered, first, price and, second, quality to
cities where data were collected. In addition, be the most important factor when selecting
the made in label also showed significantly suppliers. The results also indicated that the
[ 156 ]
Khalid I. Al-Sulaiti and Saudi resellers opinion about the British with other product information. Respondents
Michael J. Baker suppliers was less favourable with regard to were 128 college students enrolled in an intro-
Country of origin effects: a all market mix factors except quality (Al- ductory business course. They were divided
literature review hammad, 1988). into two groups. The first group was asked to
Marketing Intelligence & Han and Terpstra (1988) designed a consider the given information, then evaluate
Planning its clarity. The second group was asked to
research to determine the effects of the
16/3 [1998] 150199
country of origin and brand name cues on form an impression of the material provided
consumer evaluations of uninational to them. The countries used were West Ger-
products (products that involve a single many, Mexico, Japan and South Korea. The
country of origin, that is, purely domestic and products used were a personal computer, and
purely foreign products) and binational prod- a video cassette recorder. The results of the
ucts (products that involve two countries of study indicated that country of origin itself
origin, i.e. products which may be foreign- influenced product evaluations regardless of
made but carry a domestic brand name), and whether the additional product attribute
to estimate the perceived values of such cues. information was known before or after and
Using face-to-face interviews with a regional regardless of whether subjects were asked to
quota sample of 150 American household understand the provided product information
residents, subjects were asked to rate four or to form an impression of the product.
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were also evaluated to be lower in quality a study was designed to determine which
and price but higher in risk than developed dimensions were most frequently associated
countries products. with a countrys image and how important
A consistent negative correlation between these characteristics were to different
quality and risk was found for the products product categories. Data were collected from
of the entire set of countries. For example, 99 graduate students in Ireland, 130 in
the higher the consumers perception of Mexico, and 139 in the USA. Country image
the products of the various countries, the was measured along the four dimensions
lower their perception of the risk mentioned above. For each dimension, sub-
associated with these products (1990, p. v). jects evaluated ten countries. The countries
The results indicated that a low percentage surveyed were UK, Germany, Hungary, Ire-
of the consumers connected the purchase of land, Japan, South Korea, Mexico, Spain, and
the domestic product with their patriotic the USA. The product categories evaluated
duty. were beer, automobiles, leather shoes, crystal,
Among sociodemographic variables, sex bicycles, and watches. Using 7-point impor-
was found to be the least important factor tance scales (1= not innovative; 7= very inno-
in discriminating among the consumers vative), subjects were asked to show the
and age was found to be the most extent to which each of the four image dimen-
important. sions was an important criterion for evaluat-
ing each product category. Finally, subjects
Ghadir (1990) suggested that domestic pro- were asked how willing they would be to
ducers should develop separate marketing purchase the product categories from each of
strategies for the imported products of devel- the ten countries they evaluated. The results
oped and less developed countries, rather revealed that product-country match may be
than just dealing with the imported product an indicator of willingness to buy imported
under the general term foreign (Ghadir, products. Roth and Romeo (1992) said, for
1990, p. v). example, if a country is perceived as having a
Using a computer- administered conjoint positive image, and this image is important to
analysis, Liefeld et al. (1993) studied the a product category, consumers will be more
effects on relative cue utility of the willing to buy the product from that country.
interaction of cues in product choice The study showed that US, Irish, and
situations in which both the number and Mexican consumers were willing to buy a car
types of both extrinsic and intrinsic informa- or watch from Japan, Germany, and the USA
tion cues were varied for two types of prod- since these countries were evaluated highly
ucts, namely, telephone and clothing (mens on dimensions that were also important to
shirts and womens blouses). In mall inter- these product categories. On the other hand,
cepts 326 adult shoppers were asked to unfavourable product country match may
participate in the study. They were randomly explain why consumers are unwilling to buy
assigned to one of three designs for certain products from certain countries.
telephones, shirts (for men only) and blouses Respondents were less likely to buy Mexican
(for women only) so that the shoppers were and Hungarian autos and watches as these
exposed to only one treatment condition per countries had poor evaluations on dimen-
product, e.g., between subject design (Liefeld, sions that were important for car and watch
et al., 1993). The results of the study revealed characteristics (Roth and Romeo 1992,
[ 159 ]
Khalid I. Al-Sulaiti and p. 493). The results also indicated no differ- by the USA and Taiwan. In addition, no sig-
Michael J. Baker ences in familiarity with beer and bicycles nificant main effect from country of assembly
Country of origin effects: a across the US, Mexican, and Irish respon- nor any interaction effect was noted since
literature review dents. But significant differences were found design quality represented a different dimen-
Marketing Intelligence & for the other four product categories. More- sion from product quality (Chao, 1993).
Planning over, results on demographic differences On the other hand, results for the product
16/3 [1998] 150199
between groups demonstrated very homoge- quality dependent variable indicated the
neous samples, and revealed no changes in following:
the prediction of willingness to buy. The main effect with regard to price
Roth and Romeo (1992) suggested that showed that the product quality perception
managers should use product country match was higher at the higher price. The lower
information in order to assess consumers the price, the lower the product quality
purchase intentions, and assist them in perception.
managing their products country of origin. The country of design (COD)[9] main effect
Specifically, some differences in product showed that quality was evaluated as high-
country matches and willingness were found est for Japan, followed by Taiwan and the
across the three groups of respondents. USA.
Chao (1993) attempted to address the multi- The COD main effect indicated that the
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indicated that for both perceived quality and ing factor in preference rankings, especially
purchase value, country of design explained a when the composition of the workforce was
larger proportion of common variance than mainly American. Thus one unique cue
country of assembly. Although brand name affecting pre-purchase intentions may be
had a statistically significant impact on the nationalistic feelings which, as we have seen,
perceived quality and purchase value of the may dominate other perceptions based on
computer system and fax machine, its country of origin (p. 628).
explanatory power was much smaller than Similar findings were revealed by Olsen et
that on country of origin cues (p. 329). al. (1993). Their study explored the possible
The study also showed that purchase influences on US consumers willingness to
managers were more influenced by price than choose American-made over imported prod-
by country of design or country of assembly, ucts. Results revealed prejudices against
especially when considering the purchase imported products and suggested ways to
value of ball-point pens. market the Buy American theme (p. 307).
Ahmed et al. (1995) designed a study to Akaah and Yaprak (1993) examined (via
understand how households and organisa- conjoint methodology) the influence of
tional buyers product perceptions are country of origin on product evaluation.
affected by knowledge of the country of Additionally, the authors examined the mod-
design and country of assembly when other erating influence of product familiarity and
information such as brand name, price, and respondents nationality[11]. A total sample of
warranty is also available. The organ- 225 students from three different nations
isational data were collected via the collabo- were selected for this study (70 from Ghana,
ration of the Canadian Association of Pur- 54 from Turkey and 101 from the USA. The
chasing Managers (CAPM) in Canada (for, the main objective of the study was respondents
purchasing managers data collection method perception of automobile quality which were
see Ahmed et al., 1994). For, the household made in USA, Japan and West Germany.
data, 561 houses were visited, from which 190 Seven automobile attributes were selected for
questionnaires were usable for the study the study (workmanship, country of origin,
resulting in 33.8 per cent response rate. The reliability, driving comfort, styling, and fuel
results indicated that the country of design economy).
was a more important cue in organisational The findings indicated that the influence of
purchase decisions than the country of country of origin was relatively weak when it
assembly and brand name. While household was evaluated as one cue in an array of prod-
buyers gave equal importance to both uct cues. Akaah and Yaprak (1993) concluded
country of design and country of assembly, that neither product familiarity nor respon-
they perceived the brand name as a more dent nationality had a moderating influence
important cue than the country of origin. On on country of origin effects. For example,
the other hand, household buyers perceived American respondents perceived made in
warranty as more important than country of Japan and made in West Germany auto-
origin and brand name. The results also mobiles to be higher in quality than made in
showed that newly industrialising countries USA automobiles.
were evaluated poorly as countries of assem- Okechuku (1994) also used conjoint analysis
bly and even more poorly as countries of to investigate the relative importance of the
design. country of origin of a product to consumers
[ 162 ]
Khalid I. Al-Sulaiti and in the USA, Canada, Germany, and The consumers were not familiar with Canadian-
Michael J. Baker Netherlands. Two product categories, televi- made brands; therefore, they evaluated them
Country of origin effects: a sion sets and car radio/cassette players, were third after the USA and Japan. Finally the
literature review used as items of study. The conjoint profiles of results indicated that newly industrialising
Marketing Intelligence & television sets were based on the following nations such as South Korea and Mexico were
Planning attributes: evaluated unfavourably in terms of source
16/3 [1998] 150199
1 brand name; countries.
2 price; Lin and Sternquist (1994) attempted to
3 picture quality; investigate the effects of information cues,
4 warranty. country of origin and store prestige on
Taiwanese consumers perception of quality
The conjoint profiles of car radio were based
and estimation of retail price. The product
on:
used was womens sweaters. Lin and Stern-
1 brand name;
2 price; quist used a 4 3 factorial experimental
3 receiver quality; design in the study. The countries were the
4 cassette player quality. USA, Italy and Taiwan, and three groups of
stores of varying prestige were used in the
Additionally, country of origin was added as a study, namely:
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fifth attribute for both television sets and car Shoppers in high-prestige department
radios. The source countries selected for stores.
television sets were Japan, the USA, The Shoppers in moderate-prestige department
Netherlands, and South Korea, while Ger- stores.
many, the USA, Canada, and Mexico were General shoppers.
selected for car radios. The brands selected
for the television set conjoint profile were The sample of the study consisted of 265 shop-
Sony, Zenith, Philips and Samsung; and for pers who were intercepted in the main shop-
car radio/cassette player profiles Blaupunkt, ping streets in eastern Taipei. They were
Kenwood, Kraco and Pioneer were selected. asked to assign price and quality to the
The price levels selected for each product womans sweater. The findings indicated that
category for the conjoint design represented a the country of origin was the only cue which
low, an average, and a high price. For picture significantly influenced the Taiwanese con-
quality, receiver quality, cassette player qual- sumer perception of sweater quality. How-
ity and warranty, values were selected to ever, the country of origin did not influence
represent high and low performance related the consumers price estimates in this study.
to those attributes. Subjects were asked to Respondents evaluated the sweater labelled
rank the 16 product options in terms of their made in Japan the highest and that labelled
overall performance: an attitudinal rather made in Taiwan the lowest. Moreover, the
than a behavioural intention measure from cue of store prestige was not significantly
1 (most preferred) to 16 (least preferred). related to price estimates and quality evalua-
The results showed that for the product tions related to sweaters. The results also
categories, the country of origin was an indicated that neither country of origin nor
important attribute in preference evaluation store prestige was found to have an effect on
across the four countries. For the television price estimates. Thus, Lin and Sternquists
sets, it was significantly more important than (1994) findings supported the hypothesis of a
the brand name and price among Canadian country of origin effect.
and German respondents, and about as Using French brands, Leclerc et al. (1994)
important as the price among Dutch respon- reported three experimental studies to deter-
dents. On the other hand, for car radios, the mine the effects of foreign branding on prod-
country of origin was significantly more uct perception and evaluation. Products
important than the price and about as impor- tested in this study were products with
tant as the brand name among the respon- primarily utilitarian features, products with
dents in all the four countries. In addition, primarily hedonic features, and hybrids.
the results indicated that consumers pre- Experiment 1 demonstrated foreign branding
ferred domestically- made, yet not effects. Experiment 2 examined the joint
necessarily domestically-branded, products. impact of foreign branding and country of
But if domestically-made products are origin information. Finally, experiment 3
unfavourable or unacceptable, respondents investigated whether foreign branding effects
would choose products made in other occur only when consumers have little or no
developed countries. Unlike the findings of direct experience with a product. Here an
Akaah and Yaprak (1993), familiarity played actual product taste test was performed. The
an important role in consumers evaluations results of the three experiments indicated
of such products. For example, American foreign branding can be an effective means
[ 163 ]
Khalid I. Al-Sulaiti and of influencing consumers perceptions and consumers intention to buy. For instance, 18
Michael J. Baker attitudes (p. 269). per cent of the respondents showed a strong
Country of origin effects: a Experiment 1 indicated that the French preference to buy British and 48 per cent
literature review pronunciation of a brand name affected the showed a preference for a British car as
Marketing Intelligence & perceived hedonism of the products, attitudes against 52 per cent selecting one or other of
Planning towards the brand, and attitudes towards the Asian cars. Thus, ethnocentrism can be a
16/3 [1998] 150199
brand name as well. Experiment 2 indicated strong source of competitive advantage,
that foreign branding was a strong cue for especially when domestic products are equal
changing hedonic perceptions. In fact, coun- to imported products on a price-performance
try of origin information had no significant basis (Baker and Michie, 1995).
effects on consumers attitudes towards for- Tse et al. (1996) attempted to find out how
eign branding. For experiment 3, results the country of origin effect affects local
showed French brand names were an asset consumers propensity to buy a high-
especially for hedonic products and more involvement product (a colour TV) from four
effective than country of origin information countries: Hong Kong, Germany, Japan, and
(p. 269). South Korea. Results showed that country of
Thakor and Pacheco (1997) attempted to origin significantly affected consumers
replicate and extend the Leclerc et al. (1994) intention to purchase the product. For exam-
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findings using similar stimuli and 266 under- ple, Hong Kong consumers have a signifi-
graduate students from a Canadian univer- cantly higher probability of buying Germany-
sity. Their findings revealed the following: and Japan-made colour TV sets than those
The French brand name for a calculator made in Hong Kong and South Korea.
was perceived as more hedonic than the
English name.
The English brand name for a calculator Stereotyping
made in Quebec was favoured more than
the Italian name. Stereotyping has been found to be universal.
Females liked sunglasses with French Reierson (1966) was one of the first to conduct
branding significantly more than males country of origin bias research. Reierson
when country of origin was not indicated. (1966) investigated whether or not precon-
ceived notions consumers have about foreign
Baker and Michie (1995) examined British car products are really national stereotypes
drivers perceptions of, and attitudes towards, rather than opinions about specific products.
four makes of foreign cars: The results indicated a clear evidence of
1 Honda. stereotyping. Respondents rated products
2 Hyundai. made in USA the highest; therefore, the
3 Proton. study suggested, that while consumers have
4 Toyota. preconceived notions about foreign products,
Additionally, a British car (Rover) was added attitudes are really national stereotypes
to the study in order to establish the possible rather than opinions about specific products.
effects of ethnocentrism[12] on intention to Schooler (1965) was the first to examine
buy. A judgemental quota sample of 120 car country of origin bias as it affected specific
drivers were asked to determine which make product evaluation. Results showed that
of car they would prefer to purchase from an Guatemalan and Mexican products in each
exhibit that summarised the key features of case were rated higher than the products of
five similar models. A detailed description for Costa Rica and El Salvador.
each model was provided in the exhibit; how- Nagashima (1970) found that Japanese
ever, no reference was made to price or businessmen evaluated products made in
country of origin. Subjects were then told to Germany the highest followed by UK, USA,
indicate the three most important factors Japan and France. In his follow-up study,
controlling their choice and were then pro- Nagashima (1977) reported that images of
vided with a list of cars prices which ranged Japanese, West German and French products
from- 8,500 to 13,500. had improved and that of UK products had
The results of the study demonstrated that deteriorated. Thus, the findings of these
respondents preferred the most expensive studies suggested that, in addition to varying
cars (Toyota and Rover) but some of these among customers in different nations,
changed their decision when informed that national stereotypes change over time.
the prices of these two makes were 50 per cent Gaedeke (1973) extended the idea of
higher than an available alternative. The national stereotypes to cover products from
results also indicated that product country developing countries. He examined the
images and ethnocentrism had a significant opinion of US consumers towards the overall
impact (both positive and negative) on the quality of imported products made in
[ 164 ]
Khalid I. Al-Sulaiti and various developing countries and the USA. consumers as a result of their past experience
Michael J. Baker Likerts method of summated rating was with representative national products,
Country of origin effects: a employed in the study in order to develop a 5- learned stereotypes and reputations of
literature review point quality rating scale: very good5 points national products, and perhaps more general
Marketing Intelligence & to very poor1 point. Two hundred students images of traditions and customs of foreign
Planning were asked their opinions about the quality of people (Darling and Kraft, 1977, p. 520).
16/3 [1998] 150199
imported products in general, about classes Bannister and Saunders (1978) examined
of products imported in relatively large vol- attitudes of UK consumers towards domestic
ume from developing countries, and about products and the products of advanced
specific product items. The countries used in countries highly active in the UK market
this study were the USA, the Philippines, (e.g., France Italy, Japan, USA, USSR, and
Hong Kong, Argentina, Brazil, Taiwan, Mex- West Germany). The authors modified
ico, South Korea, India, Singapore, Turkey, Nagashimas (1970) semantic differential
and Indonesia. US products (e.g., food, elec- scales for use in their study (see Nagashima,
tronic items and textiles) were rated first in 1970). A sample totalling 224 from West
all product classes named, while products Yorkshire and Cheshire was chosen to
from developing countries were rated lower participate in the study. They were asked to
than the US products. Gaedeke (1973) con- rate these countries products in general on
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cluded that country of origin information did the basis of reliability, value for money,
not significantly affect opinions about the appearance, availability, and standard of
quality of branded products in general. workmanship. The results of the study
Etzel and Walker (1974) examined the level indicated that consumers did have stereo-
of congruence between national product typical views about different countries and
stereotypes and attitudes toward specific significant differences did exist between
types of products. Products tested were autos, these stereotypes. UK consumers had formed
cameras, and mechanical toys from three country images into three groups. Favourable
different countries, namely, Germany, Japan images attached to West Germany, UK, and
and the USA. A sample of 293 females were Japanese products; mediocre images to
selected for the study. The results revealed a products made in France, Italy and the
significant difference between consumers USA; and very poor images of products
perceptions of foreign national product made in Russia.
stereotypes and images of specific products White and Cundiff (1978) examined whether
from that country for all but one situation industrial buyers allow national stereotypes
(German products vs. German autos). to influence their evaluation of industrial
Abdul-Malek (1975) examined Canadian products and their perceptions of product
business managers attitudes towards trade quality based on country of origin. The
contracts abroad. A structured questionnaire products used in the study were an industrial
was presented to chief executives of a judge- lift truck, a metal working machine tool, and
ment sample of 154 manufacturing firms in a dictation system. A total of 480 question-
Canada. Five national settings were used for naires were distributed to members of the
the research (Canadian, US, West European, National Association of Purchasing Manage-
Latin American, and Asian and African set- ment, and 236 usable questionnaires (49 per
tings). Chief executives were asked to cent) were returned. The results indicated
describe (actual or potential) customers and that there were statistically significant differ-
intermediaries in each of these settings, one ences in the perception of quality depending
at a time, with the help of a set of scales for on where they were made. For example,
each situation (p. 199). Research indications respondents rated the product made in USA
were a clear preference for dealing with and Germany over Japan in perceived quality
North American buyers who were perceived for all three products. While the product
as superior to foreign customers and distribu- made in Brazil was evaluated below all of
tors. Abdul-Malek (1975) also found differ- the other countries tested in the study.
ences in chief executives perceptions result- White (1979) examined attitudes to US-
ing from different perceived socio-economic manufactured products in selected European
traits. For example, exporters with more countries, namely, West Germany, France,
experience tended to be more in favour of Italy, and UK. A sample of 480 purchasing
imported products than non-exporters. managers was randomly chosen from the
Darling and Kraft (1977) suggested that National Association of Purchasing Manage-
additional variables such as past experience ment. Of these, 213 American purchasing
or reputation might also be considered when managers, having an average of over ten
investigating the impact of made in labels. years, experience, were invited to take part in
Darling and Kraft (1977) concluded that this the study. They were asked to provide assess-
label provides a great deal of information to ments for industrial products from one
[ 165 ]
Khalid I. Al-Sulaiti and country in terms of 12 scales. The results and politically free countries with a Euro-
Michael J. Baker indicated that US purchasing managers in pean, Australian, or New Zealand culture
Country of origin effects: a general had stereotyped attitudes towards the base.
literature review countries tested. Khanna (1986) investigated business
Marketing Intelligence & Crawford and Lamb (1981) studied the peoples perceptions of pricing, product, pro-
Planning extent to which consumers are willing to buy motion, and service attributes of Asian com-
16/3 [1998] 150199
products of foreign origin and the identifi- panies exporting new manufactures. South
cation of preferred sources for these Korea, Taiwan, India and Japan were selected
products. A self-administered questionnaire for the study. Subjects were asked how impor-
was mailed to 1,090 firms selected from the tant they perceived a country of origin stereo-
list of members of the Nation Association of type was to a new client versus a client of a
Purchasing Management, Inc. Of these, 376 long-standing relationship. The results
responses were usable resulting in a 35 per indicated that country of origin had a greater
cent response rate. Industrial purchasers effect on new clients than on established
were asked to show their willingness to buy ones. Khanna concluded that the image of
products from 44 different countries and five Indian manufacturing exports varied
product categories: foods, feeds, and between the executives of importing compa-
beverages; industrial supplies and materials; nies in Thailand, Singapore, the Philippines
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capital goods; automotive goods; and con- and Japan (Khanna, 1986).
sumer goods. The results revealed that the US Yavas and Alpay (1986) examined Saudi
industrial purchasers were influenced by Arabian and Bahraini consumer attitudes
both the individual country and the existing towards made in USA, Japan, France,
levels of economic development and political Germany, Italy, UK and Taiwan. The source of
freedom within the 44 given countries. More- data included two samples. The first sample
over, the US industrial buyers showed their consisted of 59 Bahraini students and the
country stereotype in being most willing to second sample consisted of 94 Saudi students.
buy from advanced nations. The findings showed that the two groups by
Cattin et al. (1982) investigated the stereo- and large agreed in their assessments. For
types held by American and French directors both groups results indicated that the Taiwan
of purchasing towards products produced in label was evaluated the lowest, while Japan
five different advanced countries. They were was rated the highest followed by the USA
France, Germany, Japan, USA and UK. A total and Germany.
sample of 123 American and 97 French direc- Kaynak and Cavusgil (1983) examined how
tors of purchasing was asked to evaluate the quality perceptions of consumers varied
five countries industrial products using 20 across four product classes:
sets of bi-polar dimensions. Cattin et al. (1982) 1 electronic items;
found that French, German, and Japanese 2 food products;
labels were rated higher by the Americans 3 fashion merchandise; and
than the French. Thus, their findings sup- 4 household goods.
ported the notion that stereotypes are per-
ceived differently from consumers across Using a structured, self-administered
national boundaries, because consumers questionnaire, 197 heads of households in four
sharing similar cultural values tend to be cities in Canada were asked to rate the quality
similar in their evaluations of made in and price of products from 25 countries in
labels. general, and then the four product classes.
Wang and Lamb (1983) examined the possi- Quality perceptions of the respondents were
ble level of economic development, culture recorded on a five-point Likert scale from very
and political climate on US consumers will- good to very poor. The results revealed that
ingness to buy foreign products from 36 devel- consumers perceptions of quality towards
oping countries. A factorial design model was products of foreign origin tend to be product
chosen for the study. Questionnaires were specific. Food was the most culturally
hand delivered to a randomly chosen sample sensitive product, and made in Canada
of 500 residents in the Bryan-College Station. came out on top. However, the findings of this
Of these, 273 were usable for the study result- study did not generally support Reiersons
ing in a total response rate of 54.6 per cent. (1966) findings as to the positive bias shown
Respondents were asked to indicate their towards domestic products. Kaynak and
willingness to purchase products made in Cavusgil (1983) suggested that country of
each of the 36 countries. The findings of the origin may function as a surrogate variable,
study showed prejudices against products having stronger impact when little else is
from developing nations. They also indicated known about a product. The authors
that consumers were most willing to buy concluded that the less known about a busi-
products made in economically developed ness firm and its brands, the greater the
[ 166 ]
Khalid I. Al-Sulaiti and impact of the national origin of the manufac- performing, cars appeared to be what many
Michael J. Baker turer. Moreover, the results of a study by New Zealand consumers desired and
Country of origin effects: a Papadopoulos et al. (1987) also did not support admired (Lawrence et al., 1992, p. 49 ).
literature review the home country preference view either and Smith (1993) examined the US consumers
Marketing Intelligence & made the suggestion that there were cross- perceptions towards manufactured goods
Planning that were labelled regionally. The regions
cultural variations in the assessment of prod-
16/3 [1998] 150199
ucts from ones own country. used were Africa, Latin America, Asia and
Papadopoulos et al. (1989) developed a large- Western Europe. The products used in the
scale cross-national consumer survey carried study were:
out in the capital and another major city in 1 a piece of cloth of medium weave; and
the USA, Canada, UK, The Netherlands, 2 a modest wine glass.
France, West Germany, Greece and Hungary.
The result of the study showed that there was
The authors included Hungary in order to
a demonstration of some degree of regional
examine the attitudes of consumers in an consumer bias as Asian products received a
Eastern as well as Western market. However, more positive evaluation than those from
the aim of the study was to examine the Western Europe, Africa, and Latin America
country of origin effects from a transnational for some of the semantic differential items
perspective. Using a quota sample, 300 con- used in the research. The results also
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sumers from the Budapest area were selected, indicated that younger consumers had more
and the drop-off/pick-up technique was used negative product evaluations than older
resulting in a response rate of 94 per cent people had. Smith (1993) concluded that the
(versus an average of 57 per cent in the other use of such labelling could ameliorate con-
seven countries that were sampled (p. 34). A sumers negative bias against products from
self-administered questionnaire was developing countries. This is demonstrated
employed in the study , which was identical in by the fact that respondents in this study
all eight countries and was translated and evaluated African, and Latin American
back-translated to ensure accuracy. Subjects products as being comparable to, or superior
were asked to evaluate countries and their to , those from Western Europe (p. 11). In
products. The results revealed that consumers earlier studies using country-specific
do hold stereotypical views towards different comparisons, products from African and
countries. For example, products made in Latin American countries did not fare well
Japan were evaluated the highest by six of against those from Western Europe. For
the eight samples. The results also showed example, Schooler (1971) found more posi-
that Hungarian consumers held strongly tive attitudes towards products from West
positive attitudes towards Japan and its Germany than those from Nigeria and Chile
products. (Smith 1993, p. 11).
Lawrence et al. (1992) examined New Maheswaran (1994) identified consumer
Zealand consumers attitudes towards auto- expertise and the type of attribute infor-
mobiles made in four different countries: mation as moderating the effects of country
Japan, Germany, France and Italy. Owing to of origin on product evaluation. The product
the large number of bipolar adjective pair- used in this study was a personal computer
ings that required evaluation, the authors along with nine attributes namely:
developed two structured, self-administered 1 memory capacity;
questionnaires for use in this study. The 2 speed of computation;
questionnaires were developed in a way 3 software provisions;
which enabled the hypotheses to be 4 monitor;
tested easily. Each questionnaire had four 5 compatibility;
parts: 6 data storage;
1 purchase behaviour; 7 ease of operation;
2 country of origin attitude; 8 keyboard; and
3 brand familiarity; and 9 modem.
4 demographics.
The results indicated that when attribute
The results showed that country of origin information was unambiguous, experts based
stereotyping was present in the New Zealand their evaluations on attribute strength, while
new car market, and that it was often a deter- novices relied on country of origin. When
mining factor in the buying process. Respon- attribute information was ambiguous, both
dents evaluated automobiles made in experts and novices used country of origin
Germany as the most favoured country of differently in evaluations (Maheswaran,
origin. The German stereotypical image, 1994, p. 354). The results also showed that both
with its reputation for producing well engi- experts and novices differed in their process-
neered and assembled, competently ing of stereotypical information. For
[ 167 ]
Khalid I. Al-Sulaiti and example, experts used country of origin towards the maturity and decline stage, a
Michael J. Baker stereotypes for selectivity process and recall shift occurs in the positioning strategies
Country of origin effects: a attribute information, whereas novices used employed by many of the firms interviewed
literature review them as a frame of reference to differentially from use of the national image as a differenti-
Marketing Intelligence & interpret attribute information ation tool to the building of international
Planning
(Maheswaran, 1994, p. 362). brands and product images (Niss, 1996,
16/3 [1998] 150199
Strutton et al. (1994) examined the opinions p. 19). This means that as the product
of US consumers towards automobiles made approaches its maturity and decline stage,
in the USA and Japan. Using a telephone the consumers information requirements
interview method, 1,000 adults living in the also decline because at this level the
continental USA were asked to evaluate auto- consumer knows all about the product and its
mobiles on construction, investment proper- functional and aesthetic qualities, including
ties, dimensions of quality, dimensions of its designation of origin (Niss, 1996).
style, and cost consideration. Of the 1,000 Country of origin stereotypes seem to be
calls, 36 were considered incomplete because highly affected by ethnocentrism[13] (Hooley
of missing information. The results of the et al., 1988; Lee et al., 1992; Stoltman et al.,
study indicated that American consumers 1991). This term appears to impact consumer
were more in favour of Japanese automobiles choice both through product attribute evalua-
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in terms of their dimensions of style, tion and through direct affective factors
investment properties and dimensions of regarding the purchase itself (Yaprak and
quality. However, no significant differences Baughn, 1991, p. 265). Han (1988) found that
were observed in the perceptions held by consumer patriotism does affect cognitive
American consumers regarding the cost evaluations of goods, but affects purchase
consideration and construction of US intent to a greater degree. For example, US
and Japanese cars (Strutton, et al., 1994, consumers prefer US products (Gaedeke,
p. 70). 1973; Johansson et al., 1994; Levin et al., 1993;
Keown and Casey (1995) measured the Nagashima, 1970; Olsen et al., 1993; Reierson,
factors that influence Northern Ireland 1966), French consumers are more in favour
consumers behaviour when purchasing of products made in France (Baumgartner
wine from 14 selected countries. et al., 1978), Japanese consumers favour
Respondents were presented with ten Japanese products (Narayana, 1981),
characteristics; Canadian consumers are willing to purchase
1 country of origin; Canadian products that are higher in price
2 brand name; but equal in quality to imported products
3 grape variety; (Wall and Heslop, 1986), Turkish managers
4 region of origin; purchase products made in Turkey
5 volume of alcohol; (Gudum and Kavas, 1996), Polish and Russian
6 vintage; consumers prefer their home countrys
7 classification; products (Good and Huddleston, 1995),
8 a chateau-bottled wine; Spanish consumers prefer home-made prod-
9 a table wine; and ucts (Peris and Newman, 1993), Mexican con-
10 a country wine; sumers buy Mexican products (Bailey and
Pineres, 1997), UK consumers prefer their
and asked to show which of the factors were
home countrys products over foreign ones
important when purchasing their wine. The
(Baker and Michie, 1995; Bannister and
results indicated that country of origin was
Saunders, 1978; Hooley et al., 1988; Peris and
the most important factor when the Northern
Newman, 1993) and European consumers in
Ireland consumers were selecting wine.
general tend to prefer products made in
Moreover, respondents rated the traditional
Europe to imported products (Schweiger et
producers such as France, Italy and Germany
al., 1995).
the highest and USA and UK the lowest.
Niss (1996) determined to what extent
Danish exporters of foodstuffs, design goods,
Demographic effects
and agricultural products make use of the
Danish image in their export marketing Demographic variables also played a role in
based on country stereotypes. Using both differences in made in image between male
mail questionnaires and personal interviews, and female respondents (Wall and Heslop,
managers from 58 exporting companies were 1989; Wall et al., 1989). Male and female atti-
asked their attitudes towards using tudes towards foreign products differ;
nationalities for international promotion females generally tend to show a more posi-
purposes. The results of the study indicated tive country of origin bias towards domestic
that as a product moves along its life cycle products than males (Good and Huddleston,
[ 168 ]
Khalid I. Al-Sulaiti and 1995; Heslop and Wall, 1985; Lawrence, 1992; 3 cough syrup; and
Michael J. Baker Sharma, et al., 1995). Contrastingly, gender 4 a winter coat;
Country of origin effects: a was found to be an unimportant factor by
literature review made in the USA, UK, France and Germany.
Dornoff (1974). In terms of age, older people
Marketing Intelligence & The study employed a 7-point scale ranging
tend to evaluate foreign products more
Planning from extremely interesting (1 point) to not
favourably than do younger people (Bailey
16/3 [1998] 150199 at all interesting (7 points). A total of 120
and Pineres, 1997; Schooler, 1971; Smith, 1993).
French consumers were asked to consider
The most influential demographic variable
each of 16 products (4 4) which were pre-
was that of education (Festervand et al., 1985).
sented in random order. The results of the
Education enjoyed fairly consistent results as
study demonstrated that French consumers
correlated with perceptions of products. Most
preferred products made in France over
studies revealed that people with a high level
foreign products.
of education are more in favour of foreign
Nes (1981) examined the country of
products than those with limited education
manufacture as a cue to perceived product
(Al-hammad, 1988; Anderson and Cunning-
risk and perceived product quality. Products
ham, 1972; Dornoff et al., 1974; Festervand et
were classified into two groups: low risk and
al., 1985; Good and Huddleston, 1995; Greer
high risk products. Three brand categories
1971; Schooler, 1971; Sharma et al., 1995; Wall,
were used in the study: no brand name, a new
Downloaded by Monash University At 07:55 08 December 2016 (PT)
Algeria, India, Nigeria, Peru, and the USA. In ethnocentrism. A second was a set of 13 risk
a lab experiment setting, 241 students were items and a third set of eight items measured
presented with two different products at a the perception of the new Russia. Finally,
time and asked to choose only one. Results they were asked to indicate their political
showed preference biases against products leanings using two seven-point scales:
from developing countries. Respondents were Liberal-Conservative, and Pro-Democrat -
less likely to choose a product made in a Pro-Republican. Results indicated that once
developing country as the price and the finan- the consideration set had been reached, the
cial risk increases. Therefore, a hierarchy changes to influence the process diminish.
was found to exist between developing coun- After the consideration set, the farmers
tries and industrialised nations. mind may well be made up. Familiarity also
Johansson et al. (1994) investigated the role had a pervasive influence throughout the
of product country images for Russian process. This was reflected in both the risk-
tractors in the United States. They postulated reducing tendency on the part of risk-averse
a model which sees the image of a country farmers and the reluctance among all farm-
prompting a country of origin rating for the ers to consider unfamiliar makes (p. 171).
relevant product which then influences the Country of origin was also another recurring
core process of product evaluation (see influence that played an important role in the
Figure 2). process of product evaluation.
The target was a farmer likely to be in the The results revealed a significant change in
market for tractors of the kind manufactured the process especially when the tractor was
by Belarus in Russia. Individual interviews made in a highly rated country such as the
Figure 2
The complete model
Price
Product
Rating
Country of
Value For Origin Rating
Money
Service
Core Consideration
Set
Process
[ 170 ]
Khalid I. Al-Sulaiti and USA which affected all countries with low the ticket were the three most important
Michael J. Baker score evaluation, including Russia. Although reasons for choosing the three airlines for
Country of origin effects: a farmers rated Belarus products very low, foreign destinations.
literature review they still considered them as good value for Users of frequent airlines paid more
Marketing Intelligence & money. The results also showed pro-US senti- attention to in-flight entertainment, free
Planning ment affected only product ratings and the alcoholic beverages and availability of
16/3 [1998] 150199
consideration set, but not purchase likeli- frequent flights. On the other hand, users of
hood. In addition, opinions on whether the domestic airlines considered airport
United States should support Russia through counter service as the most important eval-
the trade influenced farmers rating of prod- uative criterion.
ucts and their likelihood to purchase. It was More attention was given to competitive
also found that farmers who liked to try out a fares by both domestic and foreign airline
new product were more likely to visit the users.
Belarus dealer, but they did not like it as In terms of gender, males attached more
much when they recognised its origin. There- importance to reliability of airline, while
fore, this study suggested that entering a new females placed more attention on
market requires strong promotional support convenient schedule and quickest route
because consumers are reluctant to purchase, direct flight.
Downloaded by Monash University At 07:55 08 December 2016 (PT)
or consider, a product with which they are Females also considered airport ticket
unfamiliar (Johansson et al., 1994). counter service, accurate flight status infor-
mation, convenient flight connections,
frequent flights, and good connections to
Service evaluation major cities as important factors in
Kaynak et al. (1994) examined consumers choosing an airline, while males attached
perceptions of airlines in the USA. The main more importance to availability of free
objective of their study was: alcoholic beverages.
To investigate consumers satisfaction Results also indicated that professional job
and/or dissatisfaction while flying by a holders differed from technical personnel
domestic and/or foreign airline to foreign in factors considered important in selecting
destinations. an airline for foreign travel.
To understand consumers perceptions of In terms of age, respondents who were less
airlines and relate this information to their than 20 demonstrated that in-flight enter-
domestic and foreign airline preferences. tainment, stewardess service, quality of
food, alcoholic beverages and frequent flyer
The study was conducted in three cities of programmes were important, while conve-
Pennsylvania, namely, Harrisburg, Lancaster nient connections, frequent flight, connec-
and York. Using a stratified sampling method, tions to major cities and reservation ease
two groups of neighbourhoods, namely, upper were more important factors for respon-
income and middle income, were selected for dents who were older than 31. On the other
the study. Drop-off and pick-up technique was hand, respondents aged between 20 and 30
employed. Questionnaires were hand- gave more importance to on time flights,
delivered to 600 households, where 376 ques- baggage handling, and competitive fares
tionnaires were usable for final analysis with (Kaynak et al., 1994).
a response rate of 62 per cent.
Respondents were given a list of airlines Harrison-Walker (1995) investigated the
and told to show their three favourite airlines national stereotype effects on consumer
for foreign travel. They were also asked about selection of a service provider. The main
the main reasons for their selection of these objective of his study was to:
three airlines and factors influencing their Evaluate the potential role of national
decision in selecting the airline for foreign stereotype on service provider selection.
travel. The study indicated the following Investigate the relative effects of service
results: provider nationality, supplemental infor-
The three airlines selected were United, mation and consumer nationality on
American and Delta. service provider selection.
Respondents who used domestic airlines The professional service of ophthalmology
had more favourable attitudes towards
was selected for the study. The following
domestic airlines than those who did not
scenario was presented to subjects:
use a domestic airline. Whereas, those who Youve been having difficulty with your
used both domestic and foreign airlines vision, so youve decided to have your vision
demonstrated no differences between them. checked by an ophthalmologist. Youve just
Reliability of the airline, past satisfactory moved to this town, so you do not already
experience with the airline and low price of have a local ophthalmologist and do not
[ 171 ]
Khalid I. Al-Sulaiti and know anyone to ask for a reference. The only consultation with an immigration lawyer.
Michael J. Baker information you have is what appears in the Since this was a mixed population (e.g.
Country of origin effects: a local telephone directory (Harrison- Walker seminar and consultation personnel), Shaffer
literature review 1995, p. 51). and OHara designed a questionnaire
Marketing Intelligence & composed of several sections. First, specific
A total of 223 students from the USA, Japan,
Planning questions were developed in the light of the
16/3 [1998] 150199 Spain and other countries were asked to rank
each of 20 ophthalmologists in the order in seminar or consultation session attended,
which they would contact them by telephone. while the second section consisted of ques-
The mock directory listing included five tions concerning trust and ethical percep-
physician names for each of four nationali- tions of the immigration lawyer from an
ties: American, Indian, Japanese and Span- American viewpoint.
ish. The author used five information levels. The results of the study indicated that there
They were: are significant ethnic differences in the
1 Zero level: no additional information pro- evaluation of professional services. However,
perceptions of trust are found to differ
vided;
significantly between people from nations
2 One level: board certified, American Board
characterised by high and low individual-
of Ophthalmology;
ism (p. 162). For example, respondents from
3 Two level availability: board certified,
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[ 174 ]
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Presented at the Conference of the Adminis-
ceptions of legal services, The Service Indus-
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[ 178 ]
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and
Appendix
Studies dealing with country of origin effects on product/service evaluation
Reference Country Respondent
Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1965) Schooler To investigate the Juice + fabric sample Central American Guatemala Students 200 NA E Results supported the hypothesis that
consumers bias countries attitude towards the people of a nation
based on product is related to preconception regarding
origin in the Central the products of that country
American Common
Market (CACM)
(1966) Reierson To determine the General + product USA, Germany, USA Students 155 NA S Stereotyping of foreign product was
attitude of US class + specific Japan, Canada, present among US students
consumers toward UK, Sweden,
foreign products Belgium, Denmark
(1967) Reierson To investigate the Film presentation, Italy and Japan USA Students 250 NA E All the Italian experimental results
various forms of magazine ads, except the film presentation were
communication media brochures, significant at the 0.05 level. For
that might influence outstanding publications Japanese products only the cumulative
the foreign product impact experiment was significant at
image of the US the 0.01 level
consumers
(1968) Schooler and To measure the 2 pieces of identical USA and Japan USA Students 236 NA E American consumers were biased
Wildt elasticity of product glassware against Japanese products because of
bias their national origin
(1969) Schooler and To research the Cloth sample and Asia, Africa, South USA Students 320 NA E No evidence of bias against
Sunoo consumers perception simple goblet America , and manufactured products which were
of international Western Europe labelled regionally
products (regional vs.
national labelling)
(1970) Nagashima To measure the cross- General + six product USA, Japan, USA and Businessmen 330 NA S The made in stereotype differed among
cultural image of classes Germany,UK, Japan Japanese and American businessmen.
made in products France, Italy Made in image was strongly influenced
as produced by US and by familiarity and availability of the
Japanese business countrys product in question
(Continued)
[ 179 ]
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[ 180 ]
Planning
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Michael J. Baker
Khalid I. Al-Sulaiti and
Planning
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Michael J. Baker
Khalid I. Al-Sulaiti and
[ 181 ]
(Continued)
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[ 185 ]
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[ 186 ]
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Planning
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[ 187 ]
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[ 188 ]
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Khalid I. Al-Sulaiti and
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Khalid I. Al-Sulaiti and
[ 189 ]
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[ 190 ]
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[ 191 ]
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[ 193 ]
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[ 194 ]
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Planning
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Khalid I. Al-Sulaiti and
[ 195 ]
(Continued)
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[ 196 ]
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Michael J. Baker
Khalid I. Al-Sulaiti and
(1995) Harrison- To investigate the Professional service USA, India, Japan, USA, Japan, Students 223 NA S No clear pattern of same-nationality
Walker* national stereotype of ophthalmology and Spain Spain and bias was found
effects on consumer other
selection of a service nationalities
provider
(1995) Schweiger To examine consumers Goods Europe, USA, and Austria Adults 240 NA S Patriotism has a positive effect
et al. perceptions of the Japan on consumers attitudes towards
quality of nine products labelled Made in Europe
productsMade in
Europe compared to
the quality of goods
Made in the USA
and Made in Japan
(1995) Keown and To measure the Wine 14 countries Northern Adults 210 57 S COO was the most important factor
Casey factors that Ireland for those purchasing wine
influence consumers
behaviour when
purchasing
wine
(Continued)
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Khalid I. Al-Sulaiti and
[ 197 ]
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and
Notes:
Rate = Response rate, Data Col. = Data collection, E = Experimental design, S = Survey, NA = Not available/applicable, * = Service evaluation
[ 199 ]
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