Brand origin and country of production congruity: Evidence from the UK and China

Teck Yong Eng, Sena Ozdemir, Grant Michelson

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

The process of manufacturing and marketing international products is increasingly complex and especially for multinational corporations that strive to lower production costs while adapting their products and services to match local preferences. Localization of international business has been shown to generate differing country of origin (COO) effects in terms of the brand origin and country of production (COP) congruity issue. Both country of production and brand origin may not be the same, which questions the effect of incongruity on a brand, consumer ethnocentrism and localization issues particularly when a well known brand are from a developed country and COP is in a developing country. This study extends past studies on the COO effect to examine whether a negative COP affects consumer product perception and consumer purchase decision of a well-known brand. Hypotheses are tested empirically against survey consumer data from the UK (developed country) and People's Republic of China (developing country) using Sony as a global brand. The main findings show that both brand origin and COP are particularly important for consumers in a developed country in their product evaluations while perceived brand image of a developing country and price are key factors for consumers in a developing country. In addition, knowledge of the extent of consumer ethnocentrism can be a major determinant for branding decisions related to using product information cues about country of production and/or an international brand image.

Original languageEnglish
Pages (from-to)5703-5711
Number of pages9
JournalJournal of Business Research
Volume69
Issue number12
Early online date16 May 2016
DOIs
Publication statusPublished - 1 Dec 2016
Externally publishedYes

Keywords

  • Brand image
  • Brand loyalty
  • Consumer ethnocentrism
  • Developed country
  • Developing country

ASJC Scopus subject areas

  • Marketing

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