Country-of-Origin Effects for Uni-National and Bi-National Products
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Abstract. This study examinesthe effects of country-of-originand brand name cues on consumerevaluationsof uni-nationaland binationalproductsand estimatesthe perceivedvalues of such cues. Frompersonalinterviewswith a regionalquotasampleof household in product residents,the studyfoundthe salienceof country-of-origin evaluations under within-subject experimental design. Finally, managerialimplicationsare discussedin regards to international brandingand sourcingstrategies.
The recentglobalizationof businesshas broughtaboutnumerouschangesin theproduction andmarketing of consumergoods[Terpstra 1983]. Onespecific outcomeof thesechangeshasbeenproliferation of "hybridproducts"[Czepiec andCosmas1983; HanandQualls1985; JohanssonandNebenzahl1986] or bi-nationalproductsthatinvolvetwo countries-of-origin; productswhichmay be foreign-made butcarrya U.S. brandname(i.e., GeneralElectricTV made in Taiwan)or U.S. madeproductswhich carrya foreignbrandname (e.g., HondaCivic made in the U.S.). While country-of-origin effects have been studiedfor the last two decades,researchhas yet to advancebeyonduninationalproductsthatinvolvea singlecountry-of-origin, thatis, purelydomestic In andpurelyforeignproducts. addition,mostpreviousstudieshaveexclusively relied on a single cue, the source country,in analyzingcountry-of-origin effects. Thus,marketershavebeenunableto evaluatethe relativeimportance of sourcecountryvs. otherrelevantcues such as brandnamesin affecting consumerevaluationsof products.In particular,previousstudieshave not presented anydirectempirical indication withrespectto theeffectsof international brandingandsourcingstrategiessuch as local vs. international brandingand local vs. overseasproductsourcingproductevaluations.Althoughstudiesby Bannisterand Saunders[1978], Cattin,Jolibertand Lohnes[1982], Bilkey andNes [1982], andYaprakandParameswaran [1986]have suggestedthata unfavorableimageassociatedwith foreignproductsis way of circumventing carryingan establisheddomesticbrandname, they have not presentedany direct empiricalevidence that replacingan unknownbrandname with an establishedone for the productswouldyield betterconsumers'perceptionof *C. MinHanis a postdoctoral researchassociateat the department of marketing,The Universityof Michigan,andassistantprofessorof marketing,WayneStateUniversity. VernTerpstra is thechairmanandprofessorof international businessatTheUniversity of Michigan.The authorsacknowledgehelpfulcommentsby anonymousreviewers. Received:April1987;Revised:July& September1987;Accepted:October1987. 235
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the products.One exceptionis a studyby Johannsonand Nebenzahl[1986] mayvarydepending forthesameproducts perceptions thatreportsthatconsumer uponwherethe productsaremade. The purposeof this paperis threefold:1) to investigatethe effects of both of productattributes andbrandnameon consumer perceptions c
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