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An experimental study of two dimensions of country-of-origin (manufacturing country and branding country) using intrinsic and extrinsic cues

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  • Srinivasan, Narasimhan
  • Jain, Subhash C.
  • Sikand, Kiranjit

Abstract

This research examines simultaneously external and internal cues to investigate the impact of two dimensions of country-of-origin (manufacturing country and branding country) on product evaluations. Using an experimental design, multiple products and multiple countries are studied. The power of the analysis exceeds 95%. Effect sizes are also computed to provide the relative importance of various relevant variables. Overall, the findings indicate that it is beneficial for a seller to strategically focus on intrinsic quality, choose a developed country as the branding country, while deriving cost reductions by shifting manufacturing facilities to developing countries.

Suggested Citation

  • Srinivasan, Narasimhan & Jain, Subhash C. & Sikand, Kiranjit, 2004. "An experimental study of two dimensions of country-of-origin (manufacturing country and branding country) using intrinsic and extrinsic cues," International Business Review, Elsevier, vol. 13(1), pages 65-82, February.
  • Handle: RePEc:eee:iburev:v:13:y:2004:i:1:p:65-82
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    References listed on IDEAS

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    1. Johny K Johansson & Israel D Nebenzahl, 1986. "Multinational Production: Effect on Brand Value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 101-126, September.
    2. C Min Han & Vern Terpstra, 1988. "Country-Of-Origin Effects for Uni-National and Bi-National Products," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(2), pages 235-255, June.
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    1. repec:eee:aumajo:v:20:y:2012:i:4:p:260-267 is not listed on IDEAS
    2. Godey, Bruno & Pederzoli, Daniele & Aiello, Gaetano & Donvito, Raffaele & Chan, Priscilla & Oh, Hyunjoo & Singh, Rahul & Skorobogatykh, Irina I. & Tsuchiya, Junji & Weitz, Bart, 2012. "Brand and country-of-origin effect on consumers' decision to purchase luxury products," Journal of Business Research, Elsevier, vol. 65(10), pages 1461-1470.
    3. Clipa, Cătălin-Ioan & Danilet, Magdalena & Clipa, Anca-Maria, 2017. "Country of origin effect and perception of Romanian consumers," MPRA Paper 83590, University Library of Munich, Germany.
    4. repec:eee:iburev:v:27:y:2018:i:1:p:173-185 is not listed on IDEAS
    5. Costa, Camila & Carneiro, Jorge & Goldszmidt, Rafael, 2016. "A contingent approach to country-of-origin effects on foreign products evaluation: Interaction of facets of country image with product classes," International Business Review, Elsevier, vol. 25(5), pages 1066-1075.
    6. Noor Ismail & Olli Kuivalainen, 2015. "The effect of internal capabilities and external environment on small- and medium-sized enterprises’ international performance and the role of the foreign market scope: The case of the Malaysian halal," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 418-451, December.
    7. Eng, Teck-Yong & Ozdemir, Sena & Michelson, Grant, 2016. "Brand origin and country of production congruity: Evidence from the UK and China," Journal of Business Research, Elsevier, vol. 69(12), pages 5703-5711.
    8. repec:hur:ijarbs:v:7:y:2017:i:11:p:566-579 is not listed on IDEAS
    9. Busnaina, Izzudin & Woodall, Tony, 2015. "Doing business in Libya: Assessing the nature and effectiveness of international marketing programs in an evolving economy," International Business Review, Elsevier, vol. 24(5), pages 781-797.
    10. Veale, Roberta & Quester, Pascale, 2009. "Do consumer expectations match experience? Predicting the influence of price and country of origin on perceptions of product quality," International Business Review, Elsevier, vol. 18(2), pages 134-144, April.
    11. Dmitrovic, Tanja & Vida, Irena & Reardon, James, 2009. "Purchase behavior in favor of domestic products in the West Balkans," International Business Review, Elsevier, vol. 18(5), pages 523-535, October.
    12. Zhan, Ge, 2013. "Statistical power in international business research: Study levels and data types," International Business Review, Elsevier, vol. 22(4), pages 678-686.

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