Multinational Production: Effect on Brand Value

Johansson, Johny K.; Nebenzahl, Israel D.

doi:10.1057/palgrave.jibs.8490861

Cited by 248 publications

(185 citation statements)

References 9 publications

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“…Some scholars argue that COP may provide a weaker brand association than brand origin (Johansson and Nebenzahl 1986;Thakor and Lavack 2003). For example, Mercedes has strong associations with Germany (BO) but less strong associations with the various countries that manufacture or assemble Mercedes automobiles (Hamzaoui-Essoussi, Merunka and Bartikowski 2011).…”

Section: Brand Origin (Bo) and Copmentioning

confidence: 99%

Brand origin and country of production congruity: Evidence from the UK and China

Eng

Ozdemir

Michelson

2016

Journal of Business Research

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The process of manufacturing and marketing international products is increasingly complex and especially for multinational corporations that strive to lower production costs while adapting their products and services to match local preferences. Localization of international business has been shown to generate differing country of origin (COO) effects in terms of the brand origin and country of production (COP) congruity issue. Both country of production and brand origin may not be the same, which questions the effect of incongruity on a brand, consumer ethnocentrism and localization issues particularly when a well known brand is from a developed country and COP is in a developing country. This study extends past studies on the COO effect to examine whether a negative COP affects consumer product perception and consumer purchase decision of a wellknown brand. Hypotheses are tested empirically against survey consumer data from the UK (developed country) and People's Republic of China (developing country) using Sony as a global brand. The main findings show that both brand origin and COP are particularly important for consumers in a developed country in their product evaluations while perceived brand image of a developing country and price are key factors for consumers in a developing country. In addition, knowledge of the extent of consumer ethnocentrism can be a major determinant for branding decisions related to using product information cues about country of production and/or an international brand image.

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Section: Brand Origin (Bo) and Copmentioning

confidence: 99%

Brand origin and country of production congruity: Evidence from the UK and China

Eng

Ozdemir

Michelson

2016

Journal of Business Research

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“…This is also reflected in consumers' willingness to pay. To give an example, in an empirical marketing study Johannson and Nebenzahl (1986) found that consumers in their sample were willing to pay 14 per cent more for a Buick built in Germany compared to one manufactured in the US while they were willing to pay 16.4 per cent less for a Buick made in Mexico (compared to the US). Similar findings were obtained for other cars as well as VCRs and microwaves (see Nebenzahl and Jaffe, 1993).…”

Section: A Short Digression Into the Marketing Literaturementioning

confidence: 99%

Location costs, product quality and implicit franchise contracts

Haucap

Wey

Barmbold

2000

Journal of International Economics

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In the literature on international trade, very little attention has been given to informational asymmetries between firms and consumers with respect to product quality.The few economic models that analyze the question of how asymmetric information about product quality might affect trade flows treat product quality as exogenous. In contrast, our model takes product quality as an endogenous variable, i.e. firms can choose the quality they wish to produce. In this case, location costs can signal product quality under certain conditions and thereby affect international trade flows. More specifically, intra-industry trade in vertical differentiated experience goods can be determined by information asymmetries about product quality. * We would like to thank Andrzej Cieoelik, James Dunlevy, Jess Gaspar, Michel Ghertman, Eckhard Janeba, Daniel Klein, Bertrand Quélin, Stephan Panther, Rudolf Richter, Dieter Schmidtchen, Ilya Segal, Udo Schmidt-Mohr, Deepak Somaya, Willy Spanjers, Mirja Weiss, and seminar participants at UC Berkeley, the 1997 Meeting of the European Economic Association in Toulouse, the 1997 Meeting of the Verein für Socialpolitik in Berne, and the 1998 Meeting of the American Economic Association in Chicago for useful discussion and comments on this work. This paper was almost completely rewritten while Justus Haucap was a visiting scholar at the Institute of Management, Innovation, and Organization (IMIO) at the Haas School of Business, University of California, Berkeley, the hospitality of which is most gratefully acknowledged. Moreover, Justus Haucap is grateful for financial support from the Deutsche Forschungsgemeinschaft (DFG) under grant Ri 15-2. Christian Wey acknowledges financial support from the Rainer Horstmann Fellowship at Indiana University, Bloomington. This research was also financially supported by the BMW AG. ZUSAMMENFASSUNG Standortkosten, Produktqualität und implizite FranchiseverträgeIn der internationalen Handelstheorie ist der Tatsache

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“…A Japanese manufacturer did the same after testing the quality of its Thailand plant for nine months". Moreover, Consumers rate quality of developed country produced cars more favorably than developing country assembled cars (Johansson and Nebezahl, 1986;Han and Terpstra, 1988). In addition, perceived quality of strong and weak brands can be reduced because of choosing lower quality COM (Cordell, 1992;Han and Terpstra, 1988;Tse and Gorn, 1993;Witt and Rao, 1992).…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing Importance of Country of Brand and Country of Manufacturing in Consumer Product Evaluation

Uddin

Parvin

Rahman

2013

IJBM

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Bangladesh, a developing country, has significant import dependence since its inception. This study attempted to identify the factors influencing significance of country of brand and country of manufacturing in consumer product evaluation. Two models, one for country of brand and another for country of manufacturing tested in this study. Regression models for country of brand and country of manufacturing demonstrate statistical significance with R 2 value of .970 and .935 respectively. The determinants posed statistically significant influence for country of brand are technological superiority, price level, reliability, performance, and durability; while significant variables influencing country of brand are price level, value for money, and aesthetical design.

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Multinational Production: Effect on Brand Value

Cited by 248 publications

References 9 publications

Brand origin and country of production congruity: Evidence from the UK and China

Brand origin and country of production congruity: Evidence from the UK and China

Location costs, product quality and implicit franchise contracts

Factors Influencing Importance of Country of Brand and Country of Manufacturing in Consumer Product Evaluation

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