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Spatial heterogeneity of country-of-origin effects within a country: analysis of online review ratings in the US car market

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  • Minyoung Kim

    (The University of Kansas)

  • Sunghoon Kim

    (Arizona State University)

  • Jongkuk Lee

    (Ewha Womans University)

Abstract

We investigate spatial heterogeneity of country-of-origin effects (COEs) within a country and its determinants. Drawing on the literature of COEs and information economics, we maintain that COEs are heterogeneous across regions within a country, which bears important implications to better understand subnational heterogeneity of consumer preferences. We employ a geographically weighted regression model, a spatial analysis to estimate varying COEs across regions in the USA, and analyze online review ratings of US and foreign car bands in the US market during the 2008–2014 period. The results show that (1) COEs of car brands from Germany, Japan, Korea, and the UK are heterogeneous across regions in the USA; (2) geographic distance from the country-of-origin exerts negative influences on COEs; and (3) the proportion of population born in the country-of-origin positively influences COEs.

Suggested Citation

  • Minyoung Kim & Sunghoon Kim & Jongkuk Lee, 2018. "Spatial heterogeneity of country-of-origin effects within a country: analysis of online review ratings in the US car market," Marketing Letters, Springer, vol. 29(2), pages 189-205, June.
    • Handle: RePEc:kap:mktlet:v:29:y:2018:i:2:d:10.1007_s11002-018-9451-z
    DOI: 10.1007/s11002-018-9451-z
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    1. Kim, Sunghoon & DeSarbo, Wayne S. & Chang, Won, 2021. "Note: A new approach to the modeling of spatially dependent and heterogeneous geographical regions," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 792-803.

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