Impact of country of origin and word of mouth on brand equity

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to explore the effect of the image of country of origin (COO) and word of mouth (WOM) toward brand equity (BE). Design/methodology/approach -Questionnaire was deployed to collect data. Prior to data collection, validity, and reliability tests were performed. Valid and reliable questionnaire was distributed to car customer in Jabodetabek region. It was succeeded to distribute 389 questionnaires and completely filled up by respondents. Structural equation modeling further was deployed to analyze the data. Findings -COO and WOM significantly influence BE indirectly thorough BE dimensions. WOM exhibited stronger influence toward BE. The influence of COO and WOM toward BE dimension was also investigated. WOM showed stronger influence toward BE dimension, in descending order are brand loyalty (BL), brand association (BAS), perceived quality (PQ), and brand awareness (BA). COO showed weaker influence and different order, in descending order are BA, PQ, BL, and BAS. Originality/value -Role of WOM in marketing has been extensively discussed by researchers. It is generally acknowledged playing a considerable role in influencing and forming consumer attitudes and behavioral intentions. However, up to this date role of WOM on BE has not been explicitly studied by researchers. COO in another hand has been related to BE although in a limited references. Those studies were performed outside of Indonesian consumer. Up to this date study of COO of Indonesian consumer behavior remains unaccounted.

The Impact of Country of Origin and Country of Manufacture of a Brand on Overall Brand Equity

“…Additionally, Shahin et al (2013) found that COO had the greatest impact on brand loyalty as opposed to brand image and brand awareness. Finally, in the same token Murtiasih et al (2014) emphasized that COO effect on brand equity was greater through brand loyalty than perceived quality in the Indonesian car market, in addition to a significant positive association between COO and CBBE dimensions.…”

“…Finally, the study found an equivalent positive effect of brand awareness on brand equity in both countries. Likewise, Chen and Tseng (2010), Khan and Mahmoud (2012), Buil et al (2013) and Murtiasih et al (2014) reported a significant positive relationship between brand loyalty and brand equity, emphasizing that brand loyalty is a key construct and main determinant explaining brand equity. Moreover, Tong and Hawley (2009) studied the Chinese sportswear market.…”

An examination of the interplay between country-of-origin, brand equity, brand preference and purchase intention toward global fashion brands

“…Powerful brands lead to the creation of competitive advantage (Lee and Back, 2010), the increased effectiveness of marketing communications, less vulnerability of competitive marketing practices (Kotler and Keller, 2011), the possibility of higher pricing on products and services, increased levels of profitability and customer loyalty (Madden et al, 2006). Since the 1960s, many scholars have become more and more interested in conducting research about branding and have studied brand equity with regard to the various aspects of branding (Murtiasih et al, 2014).…”

“…The COO image is one of the external sources of information about the product (Baldauf et al, 2009). Through an emphasis on the importance of familiarity with a brand's COO, companies are trying to create a competitive advantage so that they can effectively sell their products on the global market (Murtiasih et al, 2014).…”

“…Researchers in the field of consumer behaviour agree that the COO of a brand or product is an effective factor in consumer decisions and a strong image of the COO can be a competitive advantage and can, for example, enhance the consumer's view of the quality of a product (Murtiasih et al, 2014). Moradi and Zarei (2012) also emphasise that knowledge and understanding of consumer perceptions and how they interact with the COO image is crucial because the COO image is a signal that directly or indirectly affects the perceived quality of products.…”