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Brand Equity And Country Of Origin Relationship

Brand equity is considered a key indicator of the state of health of a brand, and its monitoring is believed to be an essential step in effective brand management (Aaker, 1991, 1992). Both researchers (e.g. Shocker et al., 1994) and practitioners (e.g. Biel, 1992) have argued for the importance of understanding the concept of brand equity. Country of origin is another important variable influencing consumer perceptions of brands (Hulland, 1999) and brand images (Ahmed et al., 2002). In the present study, consistent with the definition offered by Thakor and Katsanis (1997, pp. 79-80), country of origin is defined as “the country in which the product is made”[1]. The impact of country of origin on consumer perceptions or evaluations of products is called the “country of origin effect” (Samiee, 1994). Researchers have suggested that country of origin effects may impact the equity of certain brands (e.g. Thakor and Katsanis, 1997). For example, Aaker (1991) and Keller (1993) both argued that country of origin could affect a brand's equity by generating secondary associations for the brand. Indeed, even a foreign-sounding name is known to affect a brand's equity (Leclerc et al., 1994).

Increasingly, and for a variety of reasons, brands from one country are being made available to consumers in other countries (Shocker et al., 1994). In such instances, international marketers need to understand the sources of the equity of their brands. Some researchers have realized this and advocate extending the international consumer research scope to include brand equity (Wang, 1996). For example, measurement of brand equity across international boundaries is essential if brand managers are “to manage and control brand equity effectively” (Shocker et al., 1994, p. 156).

There is prolific research in both the areas of country of origin effects and brand equity. However, brand equity remains a complex phenomenon in the international context (Onkvisit and Shaw, 1989). Brand equity...