Product-Country Images in the Context of NAFTA

Abstract

This article presents the results of a survey of 415 male consumers carried out in Mexico (240 respondents) and Canada (175 respondents). In this study, country-of-origin information was manipulated along three dimensions, namely country of design, country of assembly, and country of parts. Consumer judgments of the quality and purchase value of three product categories, i.e., automobiles, videocassette recorders, and shoes, were obtained in a multi-cue context. The results showed that Canadian and Mexican consumers put more emphasis on the country of origin of consumer products than on brand names. The product-country evaluations of Mexicans seemed to be affected by a strong home country bias. Implications for international marketers were derived from the results.     

The influence of quality cues and typicality cues on restaurant purchase intention

Prior research on cue management has dominantly focused on cues consumers use to infer product quality. Only a few studies have dealt with cues that allow consumers to infer category typicality. Connecting these research streams we show how different cues affect both product quality and category typicality assessments, how these perceptions interact, and how they influence purchase intention. Results of this conjoint experiment among 113 restaurant patrons indicate that typicality cues can also serve as inferences for quality, and that cues influence purchase intentions via their effect on perceived typicality rather than on perceived quality. Once a consumer has determined the usage situation and his inherent consumption goals, he is much more inclined to search for the cues such as table setting that signal the subcategory that is expected to satisfy these goals, than finding cues such as guidebook rating that are diagnostic of product quality (only). After carefully addressing typicality cues which are instrumental in stressing points of parity, brand managers can use quality cues to show the product's points of difference in a category.     

Country of origin: A competitive advantage?

Country of origin has been identified in the literature as an important cue that might be used by global marketers to influence consumers' valuation of the brand. Its effect on consumer perceptions, affect and behavioral intentions has been widely documented, based on consumer surveys and laboratory experiments. Despite this empirical evidence, we argue that country of origin is only one extrinsic cue among many extrinsic and intrinsic cues available to the consumer in a real purchase situation. Furthermore, in real life, consumers are likely to engage in some level of information search, which would further dilute the country of origin effect in the marketplace. Based on these arguments, we conclude that country of origin might not necessarily lead to a competitive (dis)advantage in terms of a price premium or discount. For a sample of products, we show that the objective product quality varies significantly by country of origin, and that these differences are consistent with extant research on country of origin effects on consumers' perceptions. After controlling for quality differences across brands, we demonstrate that marketers from different countries charge prices that are justified by differences in product quality. Price premiums or discounts are therefore explained by differences in product quality rather than the image effect produced by the country of origin cue.     

Japanese consumers' use of extrinsic and intrinsic cues to mitigate risky food choices

The stated preference data were used to simulate and examine consumers' valuation of important extrinsic and intrinsic cues that are associated with risky foods. This analysis generates information on how consumers assess trade‐offs between price and selected intrinsic and extrinsic cues to determine their choice among alternative products. From this, optimum level of product quality attributes (i.e. intrinsic cues) and optimum price level for import products can be derived. Also, most effective sources of communicating food safety and risk management can be identified. The results show that the country origin cue is a key factor in understanding consumers' choice behaviour for food product that entails potential risk, which may suggest that consumers are using this information as a risk‐reduction strategy.     

The Impact of Forest Certification on Firm Financial Performance in Canada and the U.S.

The purpose of this article is to examine empirically the impact of environmental certification on firm financial performance (FP). The main question is whether there is a “green premium” for certified firms, and, if so, for what kind of certification. We analyze the short-run and the long-run stock price performance using an event-study methodology on a sample of Canadian and U.S. firms. The results of short-run event abnormal returns indicate that forest certification does not have any significant impact on firm FP regardless of the certification system carried out by firms. Unlike the short-run results, the long-run post-event abnormal returns suggest that forest certification has, on average, a negative impact on firm FP. However, the impact of forest certification on firm FP depends on who grants the certification, since only industry-led certification (Sustainable Forestry Initiative, Canadian Standards Association and ISO14001) are penalized by financial markets, whereas non-governmental organizations–led Forest Stewardship Council certification is not.     

Extrinsic Cues and Consumer Judgments of Food Product Introductions: The Case of Pangasius in Norway

In this article, the authors explore how the extrinsic cues corporate social responsibility, endorsement, and country of origin affect consumer evaluations of product quality, value, and expected product popularity for frozen Pangasius filets, a farmed fish product just recently introduced into the Norwegian market. The effects of these three variables are tested on purchase intentions. By means of a 2?×?2?×?2 factorial experiment in combination with survey data, the authors find that the three extrinsic cues under study had different effects on the evaluative variables. Furthermore, these variables all had positive and significant effects on purchase intentions. Hence, the general conclusion is that importers of new food products like Pangasius can benefit from focusing on extrinsic cues when the intrinsic cues are hard to evaluate or are unknown. Through the indirect effect on purchase intentions, extrinsic cues play an important role when consumers judge unfamiliar and new products.     

Competition for memory retrieval between private label and national brands

Perceptions of private label brands (PLBs) reside in consumer memory along with national brands (NBs). When a consumer engages in a choice situation, both PLBs and NBs rely on links to retrieval cues in consumer memory to give them a chance of purchase. This study examines the underlying competition between NBs and PLBs across different retrieval cues. The findings show that PLBs link to the same attributes as NBs and so compete with NBs for retrieval. However, while any brand typically competes most with the brands more commonly associated with any specific cue, the study finds evidence of PLB sub-categorization. That is, if a consumer elicits one PLB for a certain cue, he/she has four times the propensity to elicit other PLBs than elicit a NB for that same cue. This heightened propensity suggests that when a consumer learns that one PLB has a particular quality, the consumer generalizes that quality to other PLBs. Therefore, retailers should realize that the image of competitor retailers' PLBs affects the image of their own PLBs.     

Indian consumers' purchase intention toward a United States versus local brand

This study of Indian consumers examines the effects of individual characteristics (i.e., consumer's need for uniqueness and attitudes toward American products) and brand-specific variables (i.e., perceived quality and emotional value) on purchase intention toward a U.S. retail brand versus a local brand. A total of 411 college students in India participated in the survey. Using Structural Equation Modeling (SEM), this study finds that Indian consumers' need for uniqueness positively influences attitudes toward American products. Attitudes toward American products positively affect perceived quality and emotional value for a U.S. brand while this effect is negative in the case of a local brand. Emotional value is an important factor influencing purchase intention toward a U.S. brand and a local brand as well. Implications for both U.S. and Indian retailers are provided.     

Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity

Increased community awareness on various environmental problems has changed consumers’ behaviors and induced purchasing decisions on green products. Applying the theory of planned behavior (TPB), this study aims to explain the effects (i.e., attitude, subjective norm, and perceived behavioral control) on purchase intention of green skincare products; it also aims to determine if country of origin (COO) and price sensitivity moderate the links between purchase intention and its antecedences. Data collected from 300 respondents in Taiwan are tested against the research model by using structural equation modelling. The results indicate that attitude, subjective norm, and perceived behavioral control have a significant impact on purchase intention of green skincare products, and that country of origin and price sensitivity can enhance the positive effects on the links between purchase intention and its antecedences. The findings of this study present important theoretical and practical implications for consumer green product purchase behaviors.     

How product–cause fit and donation quantifier interact in cause-related marketing (CRM) settings: evidence of the cue congruency effect

We are the first to examine the joint impact of product–cause fit and donation quantifier in the cause-related marketing (CRM) domain. We show that these two CRM cues interact in a unique manner, reflecting the cue congruency effect. Specifically, congruent combinations of these two cues result in high purchase intentions when the cues individually have positive effects. In all other cases, however, purchase intentions are low. Furthermore, we identify moderators of the above cue congruency effect. In Study 1, we show that the cue congruency effect is moderated by product-type, evidencing only in more hedonic product contexts. In Study 2, we show that the above cue congruency effect is moderated by purchase-type, evidencing in planned purchase contexts, but reversing in impulse purchase contexts. We discuss the process mechanism driving these effects, specify the contribution of this research for CRM, cue congruency and impulse purchases, and outline implications for practice.     

The impact of influencers' multi-SNS use on followers’ behavioral intentions: An integration of cue consistency theory and social identity theory

The considerable marketing potential brought by the rapid growth of social media has been extensively examined in the literature, particularly in terms of the impact of influencers' recommendations on their followers' decisions. However, little attention has been given to how the individual influencers' use of multiple social networking sites affects their followers' behavioral intentions. Hence, this academic gap warrants further exploration. Drawing on cue consistency theory, social identity theory, and stimulus-organism-response framework, this research proposes three research questions and constructs an integrated research model to explore how the influencers' cue consistency affects the social identification of their followers, subsequently influencing their behavioral intentions. A structural equation modeling technique is performed to analyze the data of 510 valid respondents. The findings show that influencers' consistent cues (i.e., information and image consistency) across social media have positive impacts on followers' cognitive and affective identification toward the influencers. Furthermore, the determinants for followers' purchase intention and electronic word-of-mouth intention are affirmed to serve as both cognitive and affective identification. Especially, the results indicate that the relationships between followers’ social identifications and behavioral intentions are moderated by the type of influencer (i.e., lifestyle vs. review). Accordingly, the results indicate how the use of multiple social networking sites by influencers impacts the behavioral intentions of their followers. The findings offer new insights into influencer marketing and provide important lessons for marketers.     

Country-of-origin effect in apparel choices: A conjoint analysis

The purpose of this study was to determine Canadian consumers' beliefs about, and preferences for apparel products made in Canada, China and some other low-cost nations. The importance of the country-of-origin of garments relative to other apparel attributes in consumers' purchase decisions was also examined. Information integration theory provided the theoretical foundation for a conjoint analysis of product ratings. A simulated purchase of fleece sweatshirts was designed to conduct the conjoint analysis experiment. Consumers' beliefs regarding various attributes of apparel products made in Canada, China, Taiwan, Hong Kong and South Korea were also measured. Significant differences were found in consumers' beliefs about garments made in different countries regarding quality, price, style and fit. Canadian clothing was perceived to be superior in quality, style and fit, but the most expensive. Results of the conjoint analysis indicated that Canada was the most preferred country-of-origin. The effect of country-of-origin on subjects' evaluations of sweatshirts, however, was less important than that of either quality or price. Beliefs about quality, price, style and fit of garments made in Canada, China and South Korea were found to be significantly related to subjects' utilities for sweatshirts made in such countries. Differences in beliefs and utilities were found among respondents differing in awareness of country-of-origin, ethnic background, age and education, but not among those who held different opinions about supporting domestic industries.     

品牌来源国和产品制造国对消费者产品质量评价和购买意愿的影响

This research explores the different effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention. It is found that made-in cues have significant impacts on quality evaluation while brand origin cues influence purchase intention more prominently. Product quality is perceived lower when a brand from developed country is manufactured in developing countries, however, this may not affect consumers’ purchase intentions.      

The Cause Cue Effect: Cause‐Related Marketing and Consumer Health Perceptions

Many for‐profit companies (e.g., Kraft, Kentucky Fried Chicken, Keebler, 5‐Hour Energy) are partnering with health‐oriented nonprofits (e.g., Academy of Nutrition and Dietetics, Susan G. Komen for Breast Cancer Research, American Red Cross) to make purchase‐contingent donations. Companies use cause‐related marketing to improve brand image and goodwill for their food products and companies. Prior research has examined how food‐related cues can create consumer misperceptions; however, consumer perceptions related to corporate communications (e.g., the use of cause cues) has received little research attention. This research explores consumer reactions to cause cues and finds that adding a health cause to a food package significantly increases product health perceptions, and, usually, product attitude, and purchase intentions (i.e., the cause cue effect) in both a student sample (Studies 1 and 2) and an adult sample on Amazon's mTurk (Study 3). Implications for cueing and inference‐making literature, and for consumer health, and policymakers are discussed.     

How product aesthetics cues efficacy beliefs of product performance

Aesthetics of package design is an important consideration when consumers make purchase decisions. We argue that this is particularly the case for purchase decision of products in the beauty category. This paper advances current understanding of the role of packaging in product purchase behavior by identifying heuristic cues exhibited in packaging (i.e., that beautiful packaging is more effective at making the consumer more beautiful). Across a pilot field study and four lab studies, we demonstrate that package aesthetics informs inferences of how well the product can perform, which, in turn, drives purchase decisions. Importantly, we show that in the presence of a diagnostic cue such as a brand name, or an explicit promise (e.g. tagline of an advertisement), this effect is attenuated and rendered irrelevant. Further, we show that this effect is rendered ineffective to a category to which beauty is irrelevant. Hence, by signaling product efficacy, the beauty-in-a-bottle heuristic appears to inform purchase decisions.     

Return policy,No joke: An investigation into the impact of a retailer's return policy on consumers' decision making

This study investigates the important role of a retailer's return policy in consumers' decision making. Utilizing signaling theory and the Cue Diagnosticity framework, this study posits that return policy, as a cue from a retailer, interacts with other cues (product, price, and product quality) to reduce perceived purchase risk and increases store image and patronage intention. Employing factorial experiment design, the authors conduct two studies and find support for several hypotheses. Results show that consumers value return policies depending upon the situation. A lenient return policy drives down purchase risk and leads consumers to have positive store images and higher patronage intentions. Both theoretical and managerial implications of the findings are provided.     

The Perfect Fit: The Moderating Role of Selling Cues on Hedonic and Utilitarian Product Types

With the need among retailers to create effective promotional campaigns, scarcity, and popularity cues are increasingly used. Drawing from regulatory focus and popularity versus scarcity cues literature, this research explores the impact of popularity versus scarcity cues and product types on consumer perceptions of risk, product uniqueness, and purchase intentions. Results from three studies provide primary insights: (1) A utilitarian product aligns with prevention goals and hence the popularity cue will enhance consumers’ purchase intentions, and (2) a hedonic product aligns with promotion goals and hence the scarcity cue will enhance consumers’ purchase intentions. Further, we theorize that perceived risk and perceived product uniqueness will act as psychological mechanisms. We discuss theoretical contributions and strategic insights for retailers and marketers that the findings indicate.     

The importance of origin as a quality attribute for beef: results from a Scottish consumer survey

Perception of country of origin and purchasing habits for beef were examined for urban and rural Scottish consumers. Origin was identified as being as important as intrinsic quality cues of colour and leanness, with rural consumers giving more weight to origin than urban ones. Most consumers interpreted ‘Scotch Beef’ and ‘British Meat’ label logos as evidence that the beef animals were ‘born, raised and slaughtered in Scotland or Britain’ respectively. The logos were taken as indicators of quality and safety. Both urban and rural respondents had higher agreement levels with Scotch beef as a safer, higher quality and more expensive commodity than British meat. Rural consumers made more use of butcher shops for purchase, but both groups sought butcher beef for quality reasons and supermarket sources because of convenience.     

Preference for Locally Grown or Imported Fruit Among the Millennial Generation in Johor,Malaysia

This study attempts to explore factors influencing the choice of locally grown or imported fruits among young Malaysians. It investigates how consumer preference, socioeconomics, and demographic profiles can affect their choice of which fruit category they pick. Five hundred respondents were interviewed by using a structured questionnaire to collect information related to their fruit preferences and choices. The millennium generation in Malaysia, especially the Malay living in Johor, were surveyed as a representation of future consumers of fruit and their subsequent choices and demand. Factor analysis was carried out on statements regarding consumer preferences on choices of local or imported fruit. Five factors were identified as the outstanding consumer preferences for fruits. Demographic profiles of the respondents such as family size, and dimension of fruit preferences, including country of origin, perceived quality, and environmental concerns, were important factors that affect consumers’ purchasing behavior in choosing locally grown or imported fruits. Logit regression indicated that family size, country of origin product quality, perceived quality, and variety of fruits will likely influence the preferences for fruit among the younger generation.     

Marketing Genius: The Impact of Educational Claims and Cues on Parents' Reactions to Infant/Toddler DVDs

Infant/toddler‐directed DVDs have become commonplace in American homes. Most of these DVDs carry direct claims or implied cues of educational benefit, despite complaints from the Campaign for a Commercial Free Childhood and others regarding a lack of confirmatory research. Using a DVD package created for this study, this experiment tested the impact of DVD brand name, educational claim specificity, and a personality dimension (i.e., regulatory focus orientation) on parents' perceptions of educational value and purchase intentions. Parents reacted similarly to specific and ambiguous educational statements, but gave higher educational value estimations when the brand name had an educational cue. An interaction suggested that the effect of the claim outcome specificity depended on the claim verb specificity. Parents with a strong focus on pursuing possible rewards (promotion focus) had higher perceptions of educational value and stronger desires to purchase the DVD. Implications for policy and further research are discussed.