Negative Country-of-Origin Effects: The Case of the New Russia

Johansson, Johny K.; Ronkainen, Ilkka A.; Czinkota, Michael R.

doi:10.1057/palgrave.jibs.8490197

Cited by 144 publications

(75 citation statements)

References 27 publications

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“…This point of view is also supported by other streams of academic literature, for instance in the discussion on the "country of origin" in the field of Marketing (d 'Astous et al, 2008, Johansson et al, 1994, Manrai et al, 1998, Shimp et al, 1993 or on the "liability of foreignness" in the realm of international business (Bartlett and Ghoshal, 2000, Ramachandran and Pant, 2010, Schmidt and Sofka, 2009). Kotler and Gertner (2002) have pointed out that consumers worldwide have varying image perceptions of individual countries as far as the quality of their production is concerned.…”

Section: Dominant Logic and Research Gapmentioning

confidence: 54%

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

Tiwari

Herstatt

2012

SSRN Journal

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India has emerged as a vibrant and versatile source for cost effective, "disruptive innovations" of various varieties. Price-sensitive consumers in a large and growing market keep inducing firms to apply "frugal engineering" for creating affordable products and services without compromising excessively on quality. Because, as The Economist asserts: "Frugal does not mean second-rate". Such innovations are characterized by high affordability, robustness, and "good enough" quality in a volume-driven market. Resource constraints motivate firms and entrepreneurs to think out-of-thebox. The trick lies in creating solutions that are able to circumvent given environmental constraints in a cost effective way. India's large and enormously young population faced with limited budgets, but well-endowed with high aspirations, provides an ideal experiment ground for many firms. Solutions created for the Indian market are often suitable for other developing countries in Asia, Africa and Latin America that frequently face similar socio-economic conditions. In some instances they succeed even in developed country markets by enabling significant cost reductions. This emergence as a hub for "frugal innovations" possibly suggests a "lead market" role for India.On the other hand, lead markets, as understood today, are characterized by high per capita income, great customer sophistication and high quality infrastructure. Such assumptions imply that lead markets, almost by default, can only exist in economically developed countries because only they can finance the development effort. Using two anchor-cases of product innovations aimed at pricesensitive segments in India we generate preliminary evidence to challenge some of the core assumptions of the "lead market" theory and propose that lead markets can emerge in developing countries too because market attractiveness (e.g. volume of demand, export possibilities) and technological capabilities are able to offset many other deficiencies. The supposed absence of customer sophistication is channelized into a challenge for supplier-side sophistication to design cost effective, "good enough" solutions ("low-cost, thin-margin") that can meet the aspirations of consumers in a highly competitive market. In order to master this challenge companies need access to a competent and sufficiently large technical base with first-hand knowledge of the ground situation of targeted customer groups ("social capital").

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Section: Dominant Logic and Research Gapmentioning

confidence: 54%

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

Tiwari

Herstatt

2012

SSRN Journal

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“…A multi-cue list which includes common attributes such as price, quality, brand name, warranty, and COO, etc. is generally offered in most of studies (Zhang, 1996;Johansson, Ronkainen, & Czinkota, 1994). Besides, gender, income, education and sojourn, etc.…”

Section: Country-of-originmentioning

confidence: 99%

The impacts of country of origin, price, and brand on consumer behavior toward cosmetics products: A review of Vietnam

Luong¹,

Vo²,

Lê³

2017

IJRSM

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Along with the increasing needs of beauty and personal care in modern life, cosmetics become more and more necessary for not only women but also men all over the world. Based on the papers with relevant theories and literature included, this study gave an overview of the impact of extrinsic cues related to cosmetic products such as brand, price and country-of-origin (COO) on female consumers, and also the cosmetic industry in Vietnam. The results may help generate a possible model or basis for the future research on consumer behavior.

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“…Other studies examine how political risk for a specific firm impacts other firms because they come from the same country [Johansson, et al 1994, andHadjikhani & Håkansson, …”

Section: Final Commentsmentioning

confidence: 99%

A Note on the Criticisms Against the Internationalization Process Model

Hadjikhani¹

2015

Knowledge, Networks and Power

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The internationalization process model introduced three decades ago still influences international business studies. Since that time, a growing number of researchers have tested the model to show its strengths and weaknesses. Among the critics, some focus on the weakness of the theoretical aspects, while others argue against parts of the model. This paper will review these criticisms and compare them with the original ideas in the internationalization model.One criticized aspect of the internationalization model is the concept of commitment, which is treated by researchers via measurable indicators, i.e. tangible commitment. The aim of this paper is to study commitment from a different angle and deal with intangible commitments which are connected to the concept of psychic distance in the internationalization model.Exploration of the elements in commitment strengthens the model for the internationalization process. It also opens new doors for the use of the model for other internationalization modes, like project selling. To test the concept, a summary of a historical study in which firms lose their tangible commitments and rely only on intangible commitments is given.

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Negative Country-of-Origin Effects: The Case of the New Russia

Cited by 144 publications

References 27 publications

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

The impacts of country of origin, price, and brand on consumer behavior toward cosmetics products: A review of Vietnam

A Note on the Criticisms Against the Internationalization Process Model

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