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The Impact of Country-of-Origin on Brand Positioning for Luxury Goods

In: Entrepreneurship, Business and Economics - Vol. 1

Author

Listed:
  • Stoenescu Roxana-Denisa

    (Bucharest University of Economic Studies)

  • Căpățînă Gabriela

    (Bucharest University of Economic Studies)

  • Cristea Adina

    (Bucharest University of Economic Studies)

Abstract

Brand positioning for luxury goods requires creating unique and strong associations in consumers’ minds regarding upscale benefits and high social status. Country-of-origin has numerous implications on brand image perception, being an important positioning element. This paper’s purpose is to examine the impact of country-of-origin on brand positioning for luxury goods, for a more accurate understanding of how brand image can be affected by product provenance. We analyze the effects of the degree of fit between country image and the associated product category. Furthermore, through an exploratory research, based on investigation of secondary information as a data collection method, we emphasize the variation of favorable perceptions due to a brand’s perceived country-of-origin. We also highlight the effects that country image has on brand prestige, influencing consumers’ willingness to pay a premium price for the brand. The study explains how desired positioning can be achieved by leveraging country-of-origin characteristics to brand image. Main findings support previous research, showing how a favorable country image can reinforce brand positioning. Finally, we discuss the implications of brand origin for luxury goods in the era of global brands and offer recommendations for future research.

Suggested Citation

  • Stoenescu Roxana-Denisa & Căpățînă Gabriela & Cristea Adina, 2016. "The Impact of Country-of-Origin on Brand Positioning for Luxury Goods," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis (ed.), Entrepreneurship, Business and Economics - Vol. 1, edition 1, pages 467-483, Springer.
    • Handle: RePEc:spr:eurchp:978-3-319-27570-3_35
    DOI: 10.1007/978-3-319-27570-3_35
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    Cited by:

    1. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.
    2. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.

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