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Country equity: Conceptualization and empirical evidence

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  • Pappu, Ravi
  • Quester, Pascale
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    Abstract

    Despite considerable interest in the topic of country equity, attempts at its measurement have been scarce. This research contributes to the literature by providing a consumer-based measure for country equity, and it improves country equity measurement by addressing some of the limitations associated with previous approaches. This research also contributes to our understanding of this area by providing empirical evidence of the multidimensionality of the country equity construct. We define country equity from a consumer perspective, as the value endowed by a source country onto products originating from that country. We conceptualize country equity based on consumers' memory based associations, using the associative network memory model, as a five-dimensional construct, comprising country awareness, macro country image, micro country image, perceived quality, and country loyalty. The paper reports the results of an empirical study of a sample of shopping mall consumers (NÂ =Â 719) from Australia. The proposed model is tested in two product categories (cars and televisions). Results confirm the hypothesized five-dimensional structure. Our findings extend Aaker's [Aaker, D. A. (1991). Managing brand equity. New York: The Free Press] and Keller's [Keller, K. L. (1993).Conceptualizing, measuring and managing customer based brand equity. Journal of Marketing, 57(1), 1-22] conceptualization of brand equity to country brands, as well as Yoo and Donthu's [Yoo, B. & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1-14] consumer-based brand equity measurement to the measurement of country equity. The results have implications for government agencies, industry groups and firms interested in branding a country in target international markets.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 19 (2010)
    Issue (Month): 3 (June)
    Pages: 276-291

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    Handle: RePEc:eee:iburev:v:19:y:2010:i:3:p:276-291

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    Related research

    Keywords: Country awareness Country equity Country loyalty Macro country image Micro country image Perceived quality;

    References

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    1. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    2. Durairaj Maheswaran & Cathy Yi Chen, 2006. "Nation Equity: Incidental Emotions in Country-of-Origin Effects," Journal of Consumer Research, University of Chicago Press, vol. 33(3), pages 370-376, November.
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    11. Robert A Peterson & Alain J P Jolibert, 1995. "A Meta-Analysis of Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 26(4), pages 883-900, December.
    12. Martin, Ingrid M. & Eroglu, Sevgin, 1993. "Measuring a multi-dimensional construct: Country image," Journal of Business Research, Elsevier, vol. 28(3), pages 191-210, November.
    13. Jill Gabrielle Klein, 2002. "Us Versus Them, or Us Versus Everyone? Delineating Consumer Aversion to Foreign Goods," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 345-363, June.
    14. Hong, Sung-Tai & Wyer, Robert S, Jr, 1990. " Determinants of Product Evaluation: Effects of the Time Interval between Knowledge of a Product's Country of Origin and Information about Its Specific Attributes," Journal of Consumer Research, University of Chicago Press, vol. 17(3), pages 277-88, December.
    15. Ravi Pappu & Pascale G Quester & Ray W Cooksey, 2007. "Country image and consumer-based brand equity: relationships and implications for international marketing," Journal of International Business Studies, Palgrave Macmillan, vol. 38(5), pages 726-745, September.
    16. Quer, Diego & Claver, Enrique & Andreu, Rosario, 2007. "Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors," International Business Review, Elsevier, vol. 16(3), pages 362-376, June.
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