Modeling transitions in nation brand equity: An empirical assessment of the nation equity power grid

Abstract

The purpose of this study is to assess longitudinal nation brand performance by modeling transitions in nation brand equity and to develop a method for nation brand performance assessment. This study has two objectives: (1) to empirically test Steenkamp’s nation equity power grid conceptual framework; its categories (dominant, receding, niche, emerging, and weak nation brands), and their expected development trajectories, and (2) to identify new types of nation brands and development patterns to complement the framework. To do this, this study used objective secondary data and applied the smooth transition technique. We assessed 41 countries’ nation brand performance over the 1995–2017 period to understand the development of their nation brand equity. Particular attention was paid to countries that had significantly improved their performance and countries that had lost their brand strength. Our findings support the categories proposed by Steenkamp, but we provide a more nuanced approach to analyzing countries’ brand strength and the possible development trajectories, and introduce new categories of nation brands called volatile nation brands and booming nation brands. Our approach to using the nonlinear smooth transition demonstrated how countries’ brand strength evolved over time, and also detected the speed of any transitions; in other words, how fast nation brands moved from one level to another. Our findings benefit country brand managers, enabling them to better determine their country’s positioning and the necessary means to improve brand equity. Understanding the mechanisms behind transitions in brand equity can also help researchers link these transitions back to various economic, social, cultural, and political transitions that have occurred in nations. Our method therefore has powerful explanatory value for a wide range of marketing, economics, and other social science studies. JEL Classification: M31

Determining the predictive importance of the core dimensions of nation brands

“…Through leveraging their most crucial nation brand predictor variables, nations with moderate and weak brand strength can best achieve their long-term objectives in terms of developing a more balanced nation brand and, perhaps, challenge some of the strong nation brands. While nation brand development is a lengthy process, recent studies have shown how certain nations have leapfrogged some of their peers in strengthening their nation brands (Juusola and Lahrech, 2022). For example, Juusola and Lahrech (2022) demonstrated that certain "booming nation brands" (i.e.…”

“…While nation brand development is a lengthy process, recent studies have shown how certain nations have leapfrogged some of their peers in strengthening their nation brands (Juusola and Lahrech, 2022). For example, Juusola and Lahrech (2022) demonstrated that certain "booming nation brands" (i.e. China and Finland) have strengthened their brand performance with a speed that surpassed the speed of their peer countries, which consequently placed them among the countries with strong nation brands.…”