• Title/Summary/Keyword: Country Of Origin Effect

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The Effects of Country-Related Affect on Consumers' Purchase Intention: Focusing on the Moderating Roles of Market Entry Modes (국가 관련 감정이 소비자들의 구매의도에 미치는 영향: 해외진입방식의 조절효과를 중심으로)

  • Li, Wei;Oh, Han-Mo
    • Asia-Pacific Journal of Business
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    • v.7 no.1
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    • pp.59-69
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    • 2016
  • An extensive body of research on the effects of country-of-origin has emerged in the international marketing and business literature streams. Nonetheless, extant studies do not satisfactorily demonstrate whether and how a foreign firm's choice of market entry mode influences consumers' purchase intentions of its product in country-related affect contexts. Using a survey and an experimental design, we aimed to provide evidence of the effects of the choice on consumers' evaluation and attitude of its product in an animosity context and in a national image context. Through the survey, we collected data regarding consumer animosity, national image, product evaluation, and product attitude from 185 university students and tested the hypotheses that consumer animosity and national image have effects on foreign product evaluation and attitude. The results of the survey research show that personal animosity has a negative effect on consumers' evaluation of foreign products and that a country's image regarding economics has positive effects on consumers' attitude toward foreign products as well as consumers' evaluation of foreign products. In the experimental design, we divided subjects into four groups and exposed them to several descriptions of hypothetical purchase situations. Conducting a 2 (market entry modes)${\times}2$ (country-of-origin) ANOVA, we tested the hypothesis that a market entry mode influences foreign product evaluation and attitude. The results of the experimental study reveal that in a high country-related product association (Germany), market entry modes have insignificant effects on foreign product evaluation and attitude. In addition, in a low country-related product association (China), international partnership has more positive effects on foreign product evaluation and attitude than does exporting.

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The Alliance Strategy of Ingredient Brand by Entry Order of Parent Brand : Moderating Effect of Country of Origin (모 기업의 시장순위에 따른 성분 브랜드 제휴 전략 : 원산지의 조절효과를 중심으로)

  • Hong, Seo-Hyoung
    • Journal of Digital Contents Society
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    • v.19 no.2
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    • pp.277-284
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    • 2018
  • This study suggested a brand alliance strategy of follow brand to overcome the leading brands. At the same time, we also examined the effect of Moderating the brand awareness of ingredient brands(high / low) and origin(favorable / unfriendly). First, purchase intention of alliance product showed significant interaction effect according to market entry order of parent brand and brand awareness of ingredient brand. Second, purchase intention of alliance product showed significant interaction effect according to market entry order of parent brand and country of origin. Based on the results, we discussed about theoretical and practical implications of this study, limitations of this study, and future research.

A Comparative Analysis on the Arrangement of Rules of the Origin of Steel Products in Korea's Major FTAs (우리나라 주요 FTA의 철강재 원산지 규정 협상에 대한 비교 분석)

  • Lee, Seoung-Taek
    • Korea Trade Review
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    • v.44 no.5
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    • pp.127-142
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    • 2019
  • As Korea's steel industry exports 38 percent of its total steel production, the future management environment of the steel industry will change depending on the outcome of the FTA negotiations. The overall industrial structure of the domestic steel industry depends on the rules of origin, which are directly linked to the effect of concessionary tariffs. Therefore, negotiations on rules of origin are as important as tariff liberalization for Korea's steel industry. Korea's cold-rolled and plated companies are expected to be negatively affected as the country of origin standards of steel products have not considered the steel production processes in Korea. In future FTA talks, the country of origin rules should be agreed on a change of tariff classification basis. This result would secure a stable export market through increased predictability of steelmakers and reduce the risk of increased costs of oil and intangible products. In addition, the government should consider the structure of domestic supply and demand so that it does not impose constraints on the change of tariff classification. Finally, participants in the negotiations should consider the opinions of the domestic steel industry.

The Influence of Brand Origin and Ethnocentrism on Sponsorship Attitude of Global Brand (브랜드 원산지 및 자국민 중심주의적 관계가 글로벌 브랜드의 스폰서쉽에 미치는 영향)

  • Son, Young-Seok
    • CRM연구
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    • v.3 no.1
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    • pp.1-17
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    • 2010
  • When the marketer wants to execute the sport sponsorship, he(she) has to consider the numerous intervening variables for the effective results. This study illuminates the relationship between these kind of intervening variables of brand origin, familarity, and consume's ethnocentric delinquencies to the sponsorship attitude. The result shows according to the country origin of brand, the consumer's perception of the attitude to the sponsor brand is changed. That is the more positive of the consumer perceive to the brand origin, the more positive to the sponsoring brand attitude. That means the consumer can judge the pro or con of that kind of sponsorship through the mental accounting. But the consumer believes the global sponsorship helps the sport team. The second result shows that the familiarity toward COO(country of brand origin) affects to the sport sponsorship positively. The subjects respond that when the sponsor COO is not so familiar to them, they can discount the sponsor effect of sponsorship. The third result is that there is litter influence of ethnocentrism of sport sponsorship.

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Surrogate Internet Shopping Malls: The Effects of Consumers' Perceived Risk and Product Evaluations on Country-of-Buying-Origin Image (망상대구점(网上代购店): 소비자감지풍험화산품평개대원산국형상적영향(消费者感知风险和产品评价对原产国形象的影响))

  • Lee, Hyun-Joung;Shin, So-Hyoun;Kim, Sang-Uk
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.208-218
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    • 2010
  • Internet has grown fast and become one of the most important retail channels now. Various types of Internet retailers, hereafter etailers, have been introduced so far and as one type of Internet shopping mall, 'surrogate Internet shopping mall' has been prosperous and attracting consumers in the domestic market. Surrogate Internet shopping mall is a unique type of etailer that globally purchases well-known brand goods that are not imported in the market, completes delivery in the favor of individual buyers, and collects fees for these specific services. The consumers, who are usually interested in purchasing high-end and unique but not eligible brands, have difficulties to purchase these items overseas directly from the retailers or brands in other countries due to worries of payment failure and no address available for their usually domestic only delivery. In Korea, both numbers of surrogate Internet shopping malls and the magnitude of sales have been growing rapidly up to more than 430 active malls and 500 billion Korean won in 2008 since the population of consumers who want this agent shopping service is also expending. This etail business concept is originated from 'surrogate-mediated purchase' and this type of shopping agent has existed in many different forms and also in wide ranges of context level for quite a long time. As marketers face their individual buyers' representatives instead of a direct contact with them in many occasions, the impact of surrogate shoppers on consumer's decision making has been enormously important and many scholars have explored various range of agent's impact on consumer's purchase decisions in marketing and psychology field. However, not much rigorous research in the Internet commerce has been conveyed yet. Moreover, since as one of the shopping agent surrogate Internet shopping malls specifically connect overseas brands or retailers to domestic consumers, one specific character of the mall's, image of surrogate buying country, where surrogate purchases are conducted in, may play an important role to form consumers' attitude and purchase intention toward products. Furthermore it also possibly affects various dimensions of perceived risk in consumer's information processing. However, though tremendous researches have been carried exploring the effects of diverse dimensions of country of origin, related studies in Internet context has been rarely executed. There have been some studies that prove the positive impact of country of origin on consumer's evaluations as one of information clues in product manufacture descriptions, yet studies detecting the relationship between country image of surrogate buying origin and product evaluations rarely undertaken regarding this specific mall type. Thus, the authors have found it well-worth investigating in this specific retail channel and explored systematic relationships among focal constructs and elaborated their different paths. The authors have proven that country image of surrogate buying origin in the mall, where surrogate malls purchase products in and brings them from for buyers, not only has a positive effect on consumers' product evaluations including attitude and purchase intention but also has a negative effect on all three dimensions of perceived risk: product-related risk, shipping-related risk, and post-purchase risk. Specifically among all the perceived risk, product-related risk which is arisen from high uncertainty of product performance is most affected (${\beta}$= -.30) by negative country image of surrogate buying origin, and also shipping-related risk (${\beta}$= -.18) and post-purchase risk (${\beta}$= -.15) get influenced in order. Its direct effects on product attitude (${\beta}$= .10) and purchase intention (${\beta}$= .14) are also secured. Each of perceived risk dimension is proven to have a negative effect on purchase intention through product attitude as a mediator (${\beta}$= -.57: product-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.24: shipping-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.44: post-purchase risk ${\rightarrow}$ product attitude) as well. From the additional analysis, the paths of consumers' information processing are shown to be different based on their levels of product knowledge. While novice consumers with low level of knowledge consider only perceived risk important, expert consumers with high level of knowledge take both the country image, where surrogate services are conducted in, and perceived risk seriously to build their attitudes and formulate decisions toward products more delicately and systematically, which is in line with previous studies. This study suggests several pieces of academic and practical advice. Precisely, country image of surrogate buying origin does affect on consumer's risk perceptions and behavioral consequences. Therefore a careful selection of surrogate buying origin is recommended. Furthermore, reducing consumers' risk level is required to blossom this new type of retail business whether its consumer are novices or experts. Additionally, since consumer take different paths of elaborating information based on their knowledge levels, sophisticated marketing approaches to each group of consumers are required. For novice buyers strong devices for risk mitigation are needed to induce them to form better attitudes and for experts selections of better and advanced countries as surrogate buying origins are advised while endorsement strategy for the site might work as a reliable information clue to all consumers to mitigate the barriers to purchase goods online. The authors have also explained that the study suffers from some limitations, including generalizability. In future studies, tests of and comparisons among different types of etailers with relevant constructs are recommended to broaden the findings.

Revisiting a Gravity Model of Immigration: A Panel Data Analysis of Economic Determinants

  • Kim, Kyunghun
    • East Asian Economic Review
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    • v.26 no.2
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    • pp.143-169
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    • 2022
  • This study investigates the effect of economic factors on immigration using the gravity model of immigration. Cross-sectional regression and panel data analyses are conducted from 2000 to 2019 using the OECD International Migration Database, which consists of 36 destination countries and 201 countries of origin. The Poisson pseudo-maximum-likelihood method, which can effectively correct potential biased estimates caused by zeros in the immigration data, is used for estimation. The results indicate that the economic factors strengthened after the global financial crisis. Additionally, this effect varies depending on the type of immigration (the income level of origin country). The gravity model applied to immigration performs reasonably well, but it is necessary to consider the country-specific and time-varying characteristics.

The Role of Ethnocentrism and Firms Reputation of a Country of Origin on Consumer Purchase Intention

  • Nadia Jimenez;Sonia San Martin
    • Asia Marketing Journal
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    • v.11 no.2
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    • pp.97-119
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    • 2009
  • The growth of international trade and the formation of supranational economic and political trading blocks have noticeably widened the presence on the market of products of different national origins. This has stimulated interest in explaining the Country-of-Origin (COO) role in domestic and international markets and its consequences on consumer behaviour. Since the consumer purchasing decisions can be decisive to the success of a company's strategy in domestic and foreign markets, the objective of this study is to present empirical evidence on the extent to which reputation of firms associated to a certain COO are related to consumer purchase intention. Additionally our study considers ethnocentrism as a variable that partially explains the rejection of imports products based on its foreign origin. The empirical application of the proposed model is related to the purchase of Korean automobiles which represents 5.7% of the national market share in Spain. Structural equation modelling was used to analyse the data collected from 202 personal interviews carried out in a large Spanish region. The results show that reputation of firms associated to a certain COO in an important factor to establish business relationships involving consumers and firms from different countries and increase intentions to purchase Korean products. Additionally, ethnocentric consumers prefer to purchase domestic products rather than foreign imports as an attempt to protect national economy however the negative effect of ethnocentrism is weaker than positive effect of firms reputation of a COO.

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The Effect of Declaration of its Country of Origin on Consumers' Attitude to Beef (소고기 원산지 표시에 대한 소비자들의 지각도 평가)

  • Kang, Jong-Heon;Lee, Seong-Hee
    • Korean Journal of Human Ecology
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    • v.15 no.5
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    • pp.859-866
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    • 2006
  • The aim of this survey is to examine factors that influence on the perceived helpfulness in consumers' predicting its quality and safety when the country of origin (COO) of beef is declared. The data were analyzed that had collected from a consumer survey done in March 2006. 250 consumers living in Suncheon, Jeollanamdo were randomly selected as respondents. Eleven of them did not complete the survey material, so the total number of available samples were 239. All samples were estimated using proc logistic procedure of SAS package. The results indicate as follows: first, the levels of perceived helpfulness of COO in consumers' predicting beef quality and safety depend significantly on he age, the occupation, and the education level of demographic variables. Second, when analysing attitude variables to beef, the levels are significantly correlated with the respondents' ability to acquire information, their trust of information about beef, nd their interest about bovine spongiform encephalopathy(BSE). The proportional odds assumptions of models are not violated at p<0.05. Third, it is the gender, the age, and the education level of the respondents, and the respondents' ability to acquire information which significantly effect on the level of the perceived helpfulness of COO in predicting beef quality. Fourth, it is the consumer's age, their education level, and their trust of information about beef which statistically have a significant effect on the level of perceived helpfulness of COO in predicting beef safety.

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An empirical study of Chinese consumers' lifestyle by country of origin effect of mobile phone (중국소비자 조사에서 휴대폰의 원산국 효과에 따른 라이프스타일 실증 연구)

  • Kim, Seong-Ju
    • Journal of the Korean Data and Information Science Society
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    • v.27 no.6
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    • pp.1565-1571
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    • 2016
  • This paper is an empirical study of chinese consumers' lifestyle by country of origin effect of mobile phone. The data we analyze in this paper was collected and studied in Kim et al. (2006, 2007). We classify the respondents into the four groups according to the responses of country of origin effect of mobile phone. The four groups are group K (preference in made in Korea), group J (preference in made in Japan), group U (preference in made in USA), and group C (preference in made in China). One-way ANOVA and stepwise discriminant analysis are applied to classify the training sample which consists of 89 lifestyle variables and two personnel information. It is observed that group K is more open-minded, out front, aggressive, and self-assertive compared to group C.

The Effect of Product Price and Image Effect on Consumers Product Evaluation and Intention to Purchase

  • Zhang, Jin-Zi
    • Journal of the Korea Society of Computer and Information
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    • v.26 no.2
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    • pp.213-220
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    • 2021
  • With the continuing development of the global economy, the scale of international production and management of companies is expanding rapidly nowadays. As a result, it is increasingly important for multinational companies to establish appropriate marketing strategies for products in order to successfully enter overseas markets. When consumers evaluate the quality of products from various countries, they depend heavily on the image of the product as well as the price of the product. Therefore, this study aim to find out how the price, country image, brand image and country of origin image affect on consumer product evaluation and purchase intention. Based on these concepts, the significance of this study is helping local companies make more appropriate marketing strategies by understanding the importance of price and image of a product to companies and knowing more accurate recognition in Korea and Korean-made products of Chinese consumers. The results of this study which used AMOS model showed that 1) The country image and country of origin image for a product had a positive effects on product quality, 2) The price and country image of a product had a positive effects on service quality, 3) And evaluation of product had a positive effects on purchase intention. Based on these results, we made some proposals and presented the future research directions according to the limitations.