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Home Country Image, Country Brand Equity and Consumers’ Product Preferences: An Empirical Study

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Abstract and Key Results

This study applies the construct of brand equity in a country context, and measures the value-added with which the name of a country endows a product or a brand as perceived by the individual consumer.

Specifically, based on Yoo and Donthu’s (2001) brand equity scale, a country brand equity (CBE) scale is developed and empirically tested for its psychometric properties; subsequently a model linking (home) country image (COI) and product preferences with country brand equity as an intervening variable is estimated.

-Results indicate (a) R country brand equity is influenced by country image perceptions, (b) that country brand equity positively impacts on product preferences, and (c) that the latter are not directly influenced by country image perceptions.

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Notes

  1. For relevant reviews, see Bilkey/Nes (1982), Ozsomer/Cavusgil (1991), Baughn/Yaprak (1993), Liefeld (1993), Peterson/Jolibert (1995), Al-Sulaiti/Baker (1998), Verlegh/Steenkamp (1999), Javalgi/Cutler/Winans (2001), Papadopoulos/Heslop (2003), Usunier (2006).

  2. For examples of financial measures of brand equity, see Mahajan, Rao, and Srivastava (1991), Simon and Sullivan (1993), or the various methods developed by consultancy firms (e.g., the brand- valuation method of Interbrand, the brand performance of A.C. Nielsen, the brand valuation model of Semion, the brand equity meter of McKinsey, and the brand value added of the Boston Consulting Group; see Penrose 1989 for a review).

  3. For a review of these issues, see Roth and Diamantopoulos (2006).

  4. We formulate Hypothesis 3 as a pure mediating hypothesis; in the case of partial mediation, we expect a significantly reduced direct impact of COI on product preferences in the presence of CBE.

  5. We thank an anonymous reviewer for alerting us to this issue.

  6. Since we conceptualized COI as a multidimensional reflective construct, we used the procedure outlined by Gerbing and Anderson (1988), which is principal axis and oblique rotation. We thought that this method more accurately captures the underlying structure of the data under study, which involves items that (due to the reflective specification) are assumed to be highly intercorrelated. However, for completeness, a PCA with orthogonal (varimax) rotation was also performed and resulted in the same factor solution, with the first six items loading on the first factor (called “description of the people”) and two items loading on the second (called “aspirations of the country”). We thankfully acknowledge an anonymous reviewer’s comment on this issue.

  7. In addition to the model containing a summated score for consumers’ relative preferences, we also calculated four additional models where we estimated the relationships for each product category individually. Results consistently showed that the impact of CBE on product preferences is always significant (with t-values ranging from 3.59 for sport shoes to 4.37 for fast food restaurants in the partial mediation model) whereas the impact of COI on product preferences remains insignificant in all four cases (t-values between 0.17 for fast food restaurants and -1.56 for sport shoes).

  8. We thank the anonymous reviewers for raising these issues as valuable extensions of our study.

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Authors and Affiliations

  1. Chair of International Marketing, Faculty of Business, Economics and Statistics, University of Vienna, Vienna, Austria

    Katharina Petra Zeugner Roth (Assistant Professor)

  2. Chair of International Marketing, Faculty of Business, Economics and Statistics, University of Vienna, Vienna, Austria

    Adamantios Diamantopoulos

  3. Department of Marketing, University of Valencia, Valencia, Spain

    Mª Ángeles Montesinos PhD candidate

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  1. Katharina Petra Zeugner Roth
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  2. Adamantios Diamantopoulos
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Manuscript received November 2006, Revised October 2007, Final revision received February 2008.

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Zeugner Roth, K., Diamantopoulos, A. & Montesinos, M.Á. Home Country Image, Country Brand Equity and Consumers’ Product Preferences: An Empirical Study. MANAGE. INT. REV. 48, 577–602 (2008). https://doi.org/10.1007/s11575-008-0031-y

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