93 3.3.5 Industry Expertise Country Image Employer Attractiveness 95 3.3.6 Job and Organisation Factors Employer Attractiveness .... 180 7.3.1 Country Image Industry Expertise Employer A
INTRODUCTION
Research Context
Traditional marketing philosophies primarily focus on promoting products to consumers, emphasizing understanding customer needs to enhance competitiveness This external focus not only strengthens customer relationships but also benefits internal operations by fostering better cooperation between departments through internal marketing Additionally, prioritizing external relationships with suppliers contributes to overall business resilience and market adaptability.
This thesis focuses on the application of marketing principles to promote the employment value proposition to prospective employees Building on previous research that highlights the importance of branding for investors (Lee, RP & Chen, 2006), employees (Ambler & Barrow, 1996), and more recently, potential recruits (Ewing et al., 2002), it emphasizes the strategic role of marketing in attracting talent and enhancing organizational reputation.
Research indicates that, similar to consumer product choices, job seekers are influenced by employer cues in their decision-making process Employers can attract talent through strategies such as employer branding, brand personality, brand equity, and corporate reputation, as highlighted by Backhaus and Tikoo (2004), Lievens and Highhouse (2003), Cable and Turban (2003), Collins and Stevens (2002), and Collins and Han (2004) These studies suggest that recruiting efforts share similarities with marketing campaigns aimed at influencing purchasing behavior Examples of effective employer branding campaigns include the US Army’s “I want you” advertisement, Accenture’s graduate recruitment campaign featuring Tiger Woods with the tagline “Focusing to meet the next challenge,” and Apple’s “Close Your Windows, Open a Few Doors” recruitment ad, all designed to enhance organizational attractiveness to potential employees.
Many firms are increasingly investing in marketing strategies to position themselves as ‘employers of choice’ and strengthen their employer brand Human resources are now recognized as a critical source of competitive advantage in today’s global marketplace According to Berthon et al (2005), competition for top talent may become as intense as the race for customers, making the recruitment of skilled employees essential for gaining a competitive edge Understanding the factors that attract jobseekers to an organization is crucial in this process.
Earlier research in human resources management (HRM) has shown that both job-level factors, such as salaries, benefits, job titles, and security, and organization-level factors, including workplace environment and social colleagues, significantly influence employer attractiveness These factors parallel findings in marketing, where consumers evaluate products based on intrinsic qualities like quality and performance, and extrinsic qualities such as price and packaging As research progresses, scholars are examining beyond basic factors to understand how perceptions like country of origin, brand reputation, and corporate image impact decision-making Notably, in recruitment literature, employer branding and corporate reputation are recognized as key influences on job choice, although the impact of country-level factors remains underexplored.
Globalization is transforming employer attractiveness by broadening the framework needed to understand jobseekers' choices, with emerging markets playing a crucial role Countries like China, India, and the Middle East significantly impact global business, as many products and back-office functions are now located in these regions A paradigm shift is occurring, as emerging market multinationals (EMMs) expand into developed Western countries, acquiring iconic brands like Volvo, Jaguar, IBM’s PC division, and European steel giant Corus These EMMs are increasingly providing employment opportunities in developed nations, reflecting a significant change in the global employment landscape Examples such as Mahindra REVA considering manufacturing electric vehicles in Australia exemplify this growing trend of EMMs establishing a presence in Western markets.
Recent global business trends show increasing research and monitoring by consulting firms and industry experts According to KPMG (2008), the US, UK, and Germany are the top acquisition targets for emerging market companies, with India, Russia, and South Korea leading active acquisitions Fan (2008) cites a Boston Consulting Group (BCG, 2006) study revealing that 100 companies from emerging economies held assets totaling US$520 billion internationally In 2007, 70 emerging-market companies appeared in the Fortune Global 500, with projections to reach 100 within a decade Gartner (2008) reports that Indian IT giants like TCS, Infosys, and Wipro are becoming mega vendors potentially surpassing IBM, Accenture, and EDS The rise of emerging economies such as China and India has garnered significant media attention from sources like Business Week and The Economist, emphasizing their shift towards a dominant global economic role Salzman and Matathia (2006) describe China and India—collectively "Chindia"—as poised to challenge the US’s economic dominance, a view echoed by Peter Engardio (2007) in his book Chindia Additionally, Popkin and Iyengar (2007) highlight that Western high-tech firms are increasingly sourcing products, assembly, and innovation from China and India, while these emerging giants are developing their own intellectual property to compete directly with Western companies.
This emerging globalization trend presents several research challenges that remain to be explored and theorized Although industry studies are advancing, there is a notable gap in academic research addressing this evolving phenomenon Addressing this gap is crucial for the literature for four key reasons, highlighting the importance of further scholarly investigation into this trend.
This emerging phenomenon presents a new set of challenges, particularly since most marketing and HRM research has historically been conducted in Western countries such as the US, UK, Europe, and Japan, which have traditionally led global business expansion However, findings from these countries may not be directly applicable to developing nations, as they differ significantly in economic development levels and cultural influences.
Developed and developing countries are often stereotyped differently by consumers based on factors such as technological advancement, political stability, labour conditions, and product quality, which can significantly influence consumer perceptions and brand reputation (Chattalas, Kramer & Takada, 2008; Lotz & Hu, 2001; Papadopoulos & Heslop, 2003; Usunier, 2006; Verlegh, 2001) These stereotypes impact how companies and products from these countries are perceived in the global market, affecting consumer trust and purchasing decisions Understanding these perceptions is crucial for international branding and marketing strategies.
As EMMs increasingly create employment opportunities in developed countries, systematic research is essential to understand how jobseekers evaluate these multinational companies as employers Key questions remain unanswered, such as how intrinsic and extrinsic cues influence jobseekers' employer evaluations, the importance of the employer’s country image in job choice decisions, and the impact of the economic development level of the employer’s origin on employer attractiveness Additionally, understanding the trade-offs jobseekers consider when selecting between employers from developed and developing countries, along with the significance of the industry in which the employer operates, is crucial for comprehending employment dynamics in a globalized labor market.
• Fourth, with these changing trends, global factors such as country of origin, country image and ethnocentrism are becoming increasingly important for understanding consumer and jobseeker attitudes in a global environment.
Research Focus
This thesis examines the evolving dynamics of globalization, offering theoretical insights to address key questions about global interconnectedness The study focuses on two countries—Australia, a developed economy, and India, a developing economy—chosen due to their active cooperation through a Memorandum of Understanding (MoU) to strengthen links in education, tourism, information technology, manufacturing, and biotechnology Australian states have invited Indian IT companies to invest locally, exemplified by the Victoria State Government’s initiatives (State Government of Victoria 2008) In Victoria, eight major Indian IT firms—Birlasoft, iGate, Infosys, NIIT, Patni, Satyam, TCS, and Wipro—employ over 2,000 Australians, showcasing substantial employment generation Additionally, Australian telecommunications, banking, and IT companies have invested significantly in India through partnerships, highlighting a robust bidirectional economic relationship.
This article explores how a country's image influences its ability to attract and recruit overseas employees, emphasizing the role of the employer’s country of origin in a jobseeker’s decision-making process When faced with identical job offers from companies differing only by their country of origin—such as one Indian-owned and the other Australian-owned—candidates often prefer the local company, influenced by perceptions of economic development However, in industries like IT, where developing countries may hold greater expertise, candidates encounter a nuanced trade-off: choosing between gaining international experience in a developing country or working for a developed country’s company with limited global recognition The research examines this increasingly common dilemma faced by job applicants worldwide.
The country of origin (CoO) effect has been extensively studied in international consumer research over the past 40 years, examining how consumers assess products based on their place of manufacture Consumers tend to evaluate products with “Made in ” labels by perceived value, quality, and risk, often rating products from developed countries higher in value and satisfaction while viewing products from developing countries as riskier and lower in quality Research confirms that products from developed nations are typically perceived as offering better value and lower risk, whereas those from developing countries face higher risk assessments and lower satisfaction ratings However, when a country gains a competitive advantage in specific industries, its products are evaluated more favorably regardless of the country's overall economic status Despite these insights, human resource literature has yet to thoroughly address how globalization influences the country of origin effect in consumer behavior.
Research indicates that industry expertise influences consumers to value certain products differently, such as Colombian rugs being rated higher than Afghan wines Additionally, consumer ethnocentrism—the tendency to support domestic products and economy for patriotic reasons—plays a significant role in purchase decisions, as coined by Shimp and Sharma (1987) Governments and trade organizations have utilized this bias through campaigns like “Buy Australian,” promoting national support Building on this research, this thesis investigates the applicability of consumer ethnocentrism in the context of choosing a local versus foreign employer and examines how it interacts with other factors influencing job choice.
This study highlights the emerging role of marketing in enhancing employer branding and attracting talent, traditionally seen as an HR function While HRM primarily handles recruiting, organizations increasingly recognize that marketing can promote a positive organizational image to attract both consumers and stakeholders like jobseekers The research explores the analogy between product evaluation and employer evaluation, suggesting that choosing a job is similar to selecting a product; thus, marketing’s secondary role can involve ‘selling’ jobs as organizational products This perspective remains underexplored in recruitment literature, prompting questions about whether organizations can effectively ‘sell’ jobs to potential employees as they sell cars to consumers Applying product marketing lessons to recruitment strategies could assist companies, especially from developing countries, in successfully recruiting and retaining talent in developed markets, while also opening new avenues for marketing-driven employer value propositions.
Research Problem and Research Questions
This thesis aims to deepen the understanding of the evolving trends in globalization and offers theoretical insights into how job seekers perceive and evaluate companies from both developed and developing economies It examines four key aspects of country image to analyze how these perceptions influence employer evaluations, highlighting the importance of country reputation in the global job market By exploring these dimensions, the study provides valuable evidence on the impact of national identity on corporate attractiveness across diverse economic contexts.
1 Explore the role of country image on employer attractiveness
2 Understand the influence of industry expertise in employer attractiveness
3 Investigate the role of cultural orientations such as jobseeker ethnocentrism on employer attractiveness, and
4 Explore the influence of job and organisation factors on employer attractiveness
Based on the review of literature and the gaps in marketing and HRM literature, the following research questions are developed for this thesis
RQ1: What is the effect of country image on employment attractiveness?
RQ2: How does industry expertise moderate the influence of country image on employer attractiveness?
RQ3: How does country image affect the evaluation of job and organisation factors?
RQ4: What role does job seeker ethnocentrism play in employment attractiveness?
RQ5: What role does job seeker ethnocentrism play on country image evaluation in the presence of industry expertise?
RQ6: What roles do country of origin of an employer, nationality of the
Significance of the Research
This thesis highlights the pragmatic implications for industry and academia by exploring how country image influences employer evaluation Understanding the country of origin (CoO) effect can enhance theoretical insights into how job seekers assess employer attractiveness based on their perceptions of a company's national origin It also examines whether CoO is perceived as a single or multidimensional construct, addressing a gap in recruitment research The findings have important managerial implications, enabling companies to develop targeted marketing strategies to attract and retain talent in a competitive global environment Particularly for developing countries, effectively managing their country image is crucial for recruiting and retaining skilled employees in developed markets.
This thesis introduces two new constructs—jobseeker ethnocentrism and industry expertise—and their measurement scales, making a significant contribution to recruitment research It emphasizes the importance of understanding how cultural orientation influences employer attractiveness and how industry expertise impacts jobseekers' perceptions across different countries These factors have been underexplored in existing literature, especially regarding industry-specific influences, with the exception of Boswell et al (2003) The findings provide practical insights for companies to tailor recruitment campaigns by highlighting their industry expertise and addressing ethnocentric tendencies among jobseekers Overall, this research bridges critical gaps, offering valuable guidance for managing employer branding and attracting diverse candidate pools in a global context.
Research indicates that tangible and intangible cues in recruitment literature significantly influence employer attractiveness However, most studies have not examined these cues within a cross-national context, overlooking the impact of country image and industry expertise on job evaluation Understanding how jobseekers assess these factors differently based on country and industry is crucial for effective employer branding For example, firms from developing countries might need to highlight positive aspects like salaries, benefits, and workplace culture more prominently in their recruitment messages to counteract potential biases Incorporating country image and industry expertise into recruitment strategies can enhance employer appeal and attract top talent globally.
This cross-national research is significant as it examines the interplay of variables such as country of origin, country image, industry expertise, respondent nationality, jobseeker ethnocentrism, and organizational factors in influencing employer attractiveness for the first time It addresses a notable gap in marketing and HRM literature by providing valuable insights into cross-cultural differences in recruitment, focusing on respondents from Australia (individualistic) and India (collectivist) The study enhances understanding of how cultural backgrounds shape perceptions of employer attractiveness, enabling organizations to tailor their employment value propositions more effectively across diverse cultural settings.
Outline of Research Methodology
This study employed both inductive and deductive research approaches to develop and measure key constructs The inductive approach was utilized to define and create reliable scales for the new constructs of industry expertise and jobseeker ethnocentrism, following Churchill’s (1979) eight-step scale development process through a pilot study conducted in Australia and validated cross-nationally Conversely, the deductive approach leveraged existing validated measurements to assess variables such as country image, job and organization factors, and employer attractiveness, ensuring measurement reliability and validity Data collection targeted final-year IT students from campuses in Melbourne, Australia, and Mumbai, India, representing prospective jobseekers The analysis employed multiple statistical techniques—including t-tests, analysis of variance, covariance, and multivariate analysis of covariance—alongside various regression methods to robustly interpret the findings.
Definitions
A review of the literature on country image reveals that it encompasses three key components: the general image of a country (country image), the perception of a country's products (product country image), and the image of products originating from that country (product image) This study specifically adopts the definition from the first group, which focuses on the overall country image, as the other two categories are product-related and not relevant to the current research The definition of country image by Martin and Eroglu (1993), which closely aligns with the objectives of this study, describes country image as a mental representation that consumers hold about a nation’s characteristics and reputation.
‘the total of all descriptive, inferential and informational beliefs one has about a particular country’ (p 193)
Ethnocentrism, as noted by Murdock (1931, in Sharma et al 1995), is not limited to tribes and nations but manifests across various social groups, leading to family pride, sectionalism, religious prejudice, racial discrimination, and patriotism Lewis (1976) further emphasized the pervasive nature of ethnocentrism, highlighting its influence on social relations and group identities Recognizing these patterns is essential for understanding the dynamics of social cohesion and conflict within diverse communities.
Jobseeker ethnocentrism is a universal phenomenon rooted deeply in many areas of intergroup relations, influencing individuals' attitudes toward local employers It is characterized by the tendency of job-seekers to support local companies, either through rational judgments that benefiting domestic employers benefits the country's economy or through moral beliefs that supporting local businesses is their ethical duty.
Industry plays a crucial role in shaping consumer product evaluations and job seekers’ perceptions of employment value propositions, as confirmed by marketing and HRM research Industry expertise serves as a key competitive advantage, derived from consistently delivering high-quality products or services within a specific category.
Job factors are defined as a combination of elements such as good salaries, job security, fringe benefits, prestigious job titles and good career paths
Organizational factors significantly influence employer attractiveness, encompassing elements such as sociable coworkers and supportive management, a job aligned with employees’ lifestyles, a reputable company image, accessible training programs, company size, and a pleasant working environment These features collectively form the core of the employment proposition and determine how attractive an organization appears to potential candidates Employer attractiveness, the main focus of this thesis, is defined as jobseekers’ positive attitudes and perceptions toward an organization as a desirable place to work.
Structure of the Thesis
This thesis is structured into seven comprehensive chapters, each beginning with an introduction and concluding with a summary of key points, ensuring clarity and coherence throughout The first chapter provides an overview of the research topic, setting the foundation for subsequent discussions The following chapters delve into detailed analyses, supporting data, and critical insights relevant to the study Each section is designed to enhance understanding and facilitate easy navigation of the thesis Overall, this organization maximizes readability and aligns with best SEO practices by clearly defining the content flow and emphasizing key themes.
Chapter 2 provides a comprehensive review of the literature from marketing and HRM research It reviews the key areas relevant to the thesis and identifies gaps in the current body of knowledge specific to the variables at hand The review of the extant literature includes country image as researched in marketing and HRM literature, industry expertise as researched in consumer literature, the effects of ethnocentrism as researched in marketing and HRM, and the influence of job and organisation factors on employer attractiveness The chapter concludes with a description of the foundation on which the conceptual model is proposed in Chapter 3
This chapter presents a comprehensive conceptual model developed based on a thorough literature review, identification of existing research gaps, and the hypothesized relationships among the selected variables Key variables are examined and their interconnections within the model are clarified to provide a clear understanding of their roles Based on this foundation, specific research hypotheses are formulated to guide subsequent investigation and analysis.
Chapter 4 discusses the scaled development methodology of the two new constructs – jobseeker ethnocentrism and industry expertise – introduced in this thesis Churchill’s eight-step process for the development of reliable measures is followed The chapter concludes with a brief summary
Chapter 5 discusses the methodology adopted for the main study The chapter includes discussion on research design, sampling, biases in the study, the conceptual and operational definitions of the research, the measurements used, the pre-testing of the questionnaire and ethical considerations
This chapter provides a comprehensive data analysis of the main study, starting with preliminary data assessment to ensure data quality and consistency It then details the testing of research hypotheses using appropriate statistical methods, with an explanation of the rationale behind each technique chosen The chapter concludes with a summarized overview of the hypothesis testing results, highlighting key findings and their implications for the study’s objectives.
This chapter summarizes the key findings of the research and highlights its limitations, offering a comprehensive overview of the study’s contributions It discusses the theoretical and managerial implications of the thesis, emphasizing its relevance for both academia and industry To foster ongoing advancements, the chapter concludes with suggested directions for future research, guiding scholars and practitioners alike.
LITERATURE REVIEW
Introduction
This chapter critically evaluates the existing body of knowledge from marketing and HRM research relevant to the effects of country image on employer attractiveness, providing the theoretical foundation for the study It begins by exploring country image typologies, key empirical findings, and consumer ethnocentrism from marketing literature, which inform the conceptual framework The chapter then reviews HRM research on country image, ethnocentrism, and employer attractiveness determinants, highlighting discrepancies between marketing and HRM perspectives A novel construct, jobseeker ethnocentrism, is proposed to bridge this gap Additionally, the significance of job and organization factors in shaping employer attractiveness is discussed The chapter addresses research gaps in both fields and concludes with the presentation of a conceptual model guiding this research.
Country of Origin Effects in Marketing Literature
This review critically examines existing marketing research on Country of Origin (CoO) effects, highlighting its evolution from focusing solely on the "Made in " label to understanding CoO as a complex, multidimensional country image It traces the chronological development of CoO studies, emphasizing the rise of consumer ethnocentrism as a key cultural factor influencing perceptions Additionally, the review assesses various research methodologies employed in CoO literature to better understand consumer behavior and decision-making processes related to country stereotypes.
Research on the country of origin (CoO) effect in consumer behavior began over four decades ago with Schooler's 1965 article, which highlighted that products from different countries are evaluated differently This seminal work sparked extensive studies exploring how and why consumers perceive foreign products variably Early research focused on understanding how consumers interpret ‘Made in…’ labels and incorporate them into their product evaluations Johansson (1989) further emphasized that consumers rely on country of origin cues when assessing foreign products, influencing their purchasing decisions and perceptions of quality.
"Made in…" labels serve as crucial cues for consumers to evaluate products, especially in the absence of detailed product information, influencing perceptions of quality and perceived attribute scores (Nagashima, 1970; Reierson, 1966; Erickson, Johansson & Chao, 1984) Early research on Country of Origin (CoO) effects demonstrated that ‘Made in…’ labels act as a primary cue, significantly impacting consumer judgments when no other product information is available (Anderson & Cunningham, 1972; Bannister & Saunders, 1978; Gaedeke, 1973; Nagashima, 1970; Schooler, 1971) The CoO effect is particularly strong when consumers evaluate products solely based on their country of manufacture, as their overall perceptions and preferences are heavily influenced by stereotypes and country images associated with that nation (Bannister & Saunders, 1978).
Bilkey and Nes (1982) pioneered the first review of the Country of Origin (CoO) literature, revealing that all empirical studies investigated found CoO significantly impacts product evaluations across various contexts, including product class, type, and specific brands, affecting both consumers and industrial buyers They highlighted that product evaluations are often influenced by the economic development level of the manufacturing country A critical insight from their review was that most studies used CoO as a single cue, which may inflate results due to the tendency of single-cue experiments to produce significant findings and potential demand-characteristic effects Following their recommendations, subsequent research explored CoO effects alongside multiple cues like brand, price, packaging, warranty, and reputation Liefeld (1993) conducted a meta-analysis of 22 experimental studies and found that the presence of multiple cues did not significantly alter the size of the CoO effect, with a marginally lower mean effect size in multi-cue studies (0.19) compared to single-cue studies (0.22), suggesting that multiple cues slightly diminish, but do not eliminate, CoO effects.
Meta-analyses from 1993 should be interpreted with caution due to small sample sizes and the exclusion of observational studies However, a more recent meta-analysis by Peterson and Jolibert (1995), which included a larger sample, revealed that single-cue studies produce significantly greater source credibility (CoO) effect sizes on product quality perceptions than multiple-cue studies (0.30 versus 0.16).
Research shows that consumers evaluate products using multiple cues, including price, quality, reputation, warranty, and brand, rather than relying on a single factor Studies indicate that the Country of Origin (CoO) effect diminishes when additional extrinsic cues are present, but it still remains a significant predictor of product perception While the CoO influence is less prominent with multiple cues, it continues to play an important role in shaping consumer evaluations Addressing limitations of single-cue studies, recent research by Lim and Darley highlights the importance of considering multiple cues for a more accurate understanding of consumer decision-making.
A 1997 study employed three methodological approaches in a multiple cue investigation to examine demand effects The findings revealed that the presentation of the CoO cue can influence demand effects, with multi-cue advertisement formats being less susceptible than single-cue or multi-cue list formats Overall, the results demonstrated that demand effects are most prominent in single-cue conditions, highlighting the importance of ad format design in reducing bias.
Research indicates that the impact of the country of origin (CoO) effect varies depending on market and product-specific factors (Agarwal & Sikri, 1996; Han, 1989) For instance, Johansson, Douglas, and Nonaka (1985) found that while CoO influences automobile product evaluations, its effect is generally minor and not a pervasive stereotype They also noted that consumers rely on CoO more when they are less familiar with a product Similarly, Ettenson, Wagner, and Gaeth (1988) used conjoint analysis to study CoO effects on clothing, revealing that the influence of CoO remains small before and after exposure to ‘Made in the USA’ marketing, especially when price and quality attributes are considered.
Okechuku (1994) found that country of origin (CoO) is one of the top three attributes influencing consumer product evaluations for televisions and car radios across the US, Canada, Germany, and the Netherlands, surpassing price and brand name in importance His study confirmed that CoO’s significance varies by product category, being especially crucial for technologically complex products, as supported by Kaynak and Cavusgil (1983) and Zhang (1996) Eroglu and Machleit (1989) highlighted that the predictive power of CoO as an extrinsic cue is affected by factors such as product technicality, consumer involvement, familiarity, prior experience, and their ability to discern quality differences among brands.
Li, Dant, and Wortzel (1995) found that while a ‘Made in…’ label does not directly influence product quality evaluation when other cues like performance features and reliability are present, it serves as a critical extrinsic cue that activates consumers’ country image schemas These activated stereotypes associated with specific countries significantly impact how consumers perceive product quality The ‘Made in…’ label functions as a country of origin cue that evokes country-specific image stereotypes, which mediate the relationship between country image and product evaluation Importantly, consumers’ pre-existing perceptions of countries influence their product judgments, highlighting the role of subconscious country image assessments based solely on ‘Made in…’ labels This concept underscores the importance of country image as a mediator in the CoO effect model and emphasizes that individual preconceptions about different countries shape product evaluations.
Research by Schaefer (1997) highlights that intrinsic cues and brand familiarity significantly influence Country of Origin (CoO) evaluations, especially among consumers less familiar with the brands Conversely, Han (1990) found that CoO is more critical for familiar brands during product evaluations of US and Japanese TV sets Knight (1999) emphasizes that country of manufacture and perceived product quality strongly impact consumer decisions across global product categories, with a clear preference for locally made products and a willingness to pay higher prices for them compared to imports.
Research indicates that country of origin (CoO) significantly influences consumer price expectations, with lower perceived country images leading to higher anticipated discounts for identical products Companies often use strategic pricing, such as lower prices, to counteract negative CoO perceptions; for example, some Korean brands reduce prices to attract consumers away from Japanese competitors Studies show that Japanese brands may need to lower prices by 20-25% to offset negative perceptions of quality associated with Korean products Conversely, consumer preferences in regions like Hong Kong remain influenced by local and Korean brands, highlighting the importance of understanding CoO effects in pricing strategies.
Consumers are generally less likely to purchase TV sets when prices are low, especially as German and Japanese TVs tend to be more expensive Studies by Speece et al (1994) and Speece and Nguyen (2005) show that certain consumer segments, such as in Hong Kong and Vietnam, are willing to pay higher prices for preferred brands like Japanese and South Korean products due to perceived higher quality While some consumers prefer low prices and accept lower quality, many are willing to pay a premium for better quality, and price reductions may not effectively shift their preferences if they associate higher prices with superior quality Consumers often expect Japanese brands to be higher in both price and quality, and lower-priced Korean brands are perceived as lower in quality, making price cuts less effective in changing consumer perceptions.
Recent studies highlight the varying impact of country of origin (CoO) on consumer product evaluations Ahmed et al (2004) found that CoO influences low-involvement product assessments like bread and coffee, but its effect diminishes when factors like brand and price are considered Piron (2000) demonstrated that CoO has a stronger impact on perceptions of luxury items, such as sports cars, compared to necessities like toothpaste Lin and Chen (2006) revealed that product knowledge and involvement levels significantly affect how CoO influences purchase decisions in sectors like insurance and catering Similarly, Josaissen, Lukas, and Whitwell (2008) concluded that consumers’ familiarity with a product determines the importance they assign to CoO, with higher relevance for low-familiarity, low-involvement products These findings underscore the nuanced role of CoO in shaping consumer perceptions depending on product type and consumer involvement.
In summary, the single and multiple cues studies reviewed above have confirmed the importance of CoO on product evaluations The key findings are:
• The CoO effect is greater in single-cue studies than in multiple-cue studies Nevertheless, CoO effects are significant in most of the studies
• Product involvement and product familiarity moderate the CoO effect
Consumers encounter Country of Origin (CoO) effects in three primary ways Firstly, the 'Made in ' label acts as one of multiple cues influencing product evaluations (Hong & Wyer, 1989) Secondly, a 'Made in ' label can generate a halo effect, drawing attention and shaping perceptions of other product attributes (Han, 1989) Lastly, CoO serves as a form of country stereotyping, helping consumers fill in missing information when details are lacking (Bilkey & Nes, 1982; Lee, CW, 1997) Optimized for SEO by highlighting "Country of Origin," "product evaluations," and "consumer perceptions."