BRAND NAME VS. COUNTRY IMAGE EFFECTS : CHINESE CONSUMER EVALUATION OF HYBRID PRODUCTS

Abstract

Country of origin effect has long been identified by the western marketers. With rapid growth in offshore manufacturing, complex products are more likely to be multinational in nature. Previous country of origin studies assuming single country phenomenon is not applicable to today's 'hybrid' products. This study examines two dimensions of country of origin (COO): country of manufacture (COM) and country of manufacture of the key component (CMKC) on consumer product evaluation, perceived risk and purchase intention. Brand name is another information cue included in this study. A 2 (brand) x 3 (COM) x 3 (CMKC) experimental design was undertaken. A color television from a Japanese manufacturer was used in this experiment. The results show that Chinese consumers overall product evaluation, perceived risk and purchase intention are significantly Influenced by COM and brand name. CMKC has only marginal effect on product evaluation. COM is a much more powerful cue than CMKC on consumer product judgment. In the presence of brand name, COM is still a salient cue. Though brand name cannot remove the negative effect of COM, it can enhance product evaluation and purchase intention. CMKC has no effect when brand name is known to the respondents. There are some marketing implications concerning the sourcing and branding strategies. To a new market entrant, importing the products from the home country can obtain a high evaluation and purchase intention from consumers. To the producers in the developing country, to associate the products with a well-known high quality brand is a good way to remove the negative country of manufacture effect.