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Brand and country-of-origin effect on consumers' decision to purchase luxury products

Author

Listed:
  • Godey, Bruno
  • Pederzoli, Daniele
  • Aiello, Gaetano
  • Donvito, Raffaele
  • Chan, Priscilla
  • Oh, Hyunjoo
  • Singh, Rahul
  • Skorobogatykh, Irina I.
  • Tsuchiya, Junji
  • Weitz, Bart

Abstract

This research aims to update the factors influencing consumer purchase of luxury goods and, more specifically, to consider the combined effect of brand and country of origin (CoO) on the purchasing decision. This article extends an exploratory phase constructed from qualitative data previously gathered on this topic. The study includes administering a questionnaire online in seven countries (China, France, India, Italy, Japan, Russia, and the USA) to a total sample of 1102 respondents. The richness of this research relates to the possibility of an intercultural analysis of the results from seven countries. These results concern the differences in the relative importance of components of the consumer decision-making process in respect of the purchase of luxury and non-luxury goods; the relative importance of CoO for consumers making purchasing decisions relating to luxury goods; and the variation in consumers' decision-making criteria depending on the maturity of the luxury market. This research allows the authors to confirm, develop, and generalize results previously obtained in the exploratory phase of their work. They are interesting in terms of management recommendations for a company that wishes to expand internationally in a geographic area covered by the study, since the research found significant differences. The results of the research contribute also to the theoretical controversy concerning the importance of CoO in the consumer decision-making process.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jbrese:v:65:y:2012:i:10:p:1461-1470
    DOI: 10.1016/j.jbusres.2011.10.012
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    References listed on IDEAS

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    2. Liobikienė, Genovaitė & Mandravickaitė, Justina & Bernatonienė, Jurga, 2016. "Theory of planned behavior approach to understand the green purchasing behavior in the EU: A cross-cultural study," Ecological Economics, Elsevier, vol. 125(C), pages 38-46.
    3. Tonino Pencarelli & Barbara Francioni & Linda Gabbianelli, 2013. "Factors driving consumer attitude and purchase intention towards hunting firearms," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 85-102, December.
    4. repec:eee:eecrev:v:101:y:2018:i:c:p:297-329 is not listed on IDEAS
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    6. Ana Maria Parente Laverde, 2014. "Country of origin effect: the case of colombian automobile consumers," REVISTA CIENCIAS ESTRATÉGICAS, UNIVERSIDAD PONTIFICIA BOLIVARIANA, 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:ris:jspord:0946 is not listed on IDEAS
    9. Ko, Eunju & Megehee, Carol M., 2012. "Fashion marketing of luxury brands: Recent research issues and contributions," Journal of Business Research, Elsevier, vol. 65(10), pages 1395-1398.
    10. Francesca Checchinato & Lala Hu & Tiziano Vescovi, 2013. "The communication of foreign products in China through the store: an empirical analysis," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 41-57, December.
    11. repec:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0068-0 is not listed on IDEAS
    12. Babin, Barry J. & Borges, Adilson & James, Kevin, 2016. "The role of retail price image in a multi-country context: France and the USA," Journal of Business Research, Elsevier, vol. 69(3), pages 1074-1081.

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