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Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam. COUNTRY IMAGE: measurement & impact on consumer behavior. Country-of-origin effect. The impact of COO on consumer product evaluation What is (for the consumer) the difference between … Cars from Germany and cars from France ?

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Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

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  1. Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam COUNTRY IMAGE:measurement & impact on consumer behavior

  2. Country-of-origin effect The impact of COO on consumer product evaluation What is (for the consumer) the difference between … • Cars from Germany and cars from France ? • Singapore Airlines and KLM ? • tomatoes from The Netherlands and from Spain ? • French wine and Australian wine ? • …

  3. Meta-analysis Many studies with different results - > Review and meta-analysis: • Collect (systematically) previous studies • Map results • Calculate average result (effect size) • Investigate impact of “moderators” on this effect size Verlegh & Steenkamp 1999 - Journal of Economic Psychology

  4. Meta-analysis - II Country-of-origin effect: 41 studies (278 effects) in major journals (1980 – 1996) Average effect is significant and sizeable: r = .39 • Effects for quality judgments > attitude / purchase intention • largest for Western vs. non-Western countries • Within subjects > Between subjects • Effect decreases with amount of information

  5. in practice - I 10mm HOEZO country van herkomst ? 5mm Made in Taiwan

  6. in practice - II

  7. The origin – stereotypes? What is the origin? - Stereotypes?

  8. The origin – stereotypes? What is the origin? - Stereotypes? Heaven is where… the police are British, the lovers are French, the mechanics are German, the cooks are Italians, and it is all organized by the Swiss.

  9. The origin – stereotypes? What is the origin? - Stereotypes? Heaven is where… the police are British, the lovers are French, the mechanics are German, the cooks are Italians, and it is all organized by the Swiss. Hell is where… the police are German, the mechanics are French, the cooks are British, the lovers are Swiss, and it is all organized by the Italians

  10. The origin – stereotypes? What is the origin? - Stereotypes?

  11. Country image Country image Set of associations which an individual or group relates to a country (combined into a mental network). Which associations ? - people (national character?) - geography - products / brands - emotions (general - specific) - episodes (individual vs. collective)

  12. Product-related country image Product experience Country: climate Country: nature attributes People: competence • hedonic • utilitarian Product Attitude People: creativity Feelings (pos/neg)

  13. Country image: study design Survey • 406 Dutch consumers • interview on tomatoes or washing machines • from Netherlands, Germany, Spain / Italy Estimate impact of country image on product attitude (mediated by product beliefs)

  14. Study 1: tomatoes Product experience Country: climate Country: nature attributes People: competence • hedonic • utilitarian Product Attitude People: creativity Feelings (pos/neg)

  15. Study 2: washing machines Product experience Country: climate Country: nature attributes People: competence • hedonic • utilitarian Product Attitude People: creativity Feelings (pos/neg)

  16. Extending the measure of country image Country: climate Country: nature People: competence • experience • distance • relationships Attitudes & behaviors People: creativity Country: …. Country: …. with Ministry of Foreign Affairs: Track image in ±15 countries

  17. Practical relevance • mapping country image • reveal deeper (“secondary”) meanings • compare with others (a/o determine unique associations) • design and track marketing communications • current extension: Generalization for Dutch Ministry of Foreign Affairs To track Dutch image in 15 countries, follow up in 2010

  18. Features of associations Features of associations - A Secondary associations: associations of associations Example: Switzerland - Mountains Mountains – pure air, natural

  19. Features of associations Features of associations - B Resonance: Country evokes association, BUT: Does association evoke country? Examples ?: Tulips - Netherlands Wine – France

  20. Features of associations Features of associations - C Interconnections of associations: Enhance consistency, improveimage Example: France – Sun France – Wine France - Savoir-vivre But also: Wine- sun & Wine- “Savoir-vivre”

  21. Improving country images? • Dutch tomatoes in Germany: “Wasserbomben” • How to improve? Modest (we’re working on it, they are better than they used to be) or … Extreme claims (beste taste, most natural) Verlegh, Steenkamp & Meulenberg 2005 – International J. of Research in Marketing

  22. Ad - modest Tomaten aus Holland heissen von nun ab Hollandia Tomaten. Beim Anbau von Hollandia Tomaten wird auf Natur und Umwelt geachtet. Mit Hilfe von natürlichen Mitteln sorgt der niederländische Bauer für ein Qualitätsprodukt. Hollandia Tomaten haben einen guten Geschmack und Aroma. Forschung weist auf, dass 6 von 10 Konsumenten Hollandia Tomaten schmackhafter finden als andere Tomaten. Hollandia Tomaten: Schmecken beinah so gut wie Tomaten aus eigenem Garten… Die schmackhafteste Verwöhnung von Mutter Natur +

  23. Ad - extreme Tomaten aus Holland heissen von nun ab Hollandia Tomaten. Beim Anbau von Hollandia Tomaten wird mehr als in jedem anderen country auf Natur und Umwelt geachtet. Mit Hilfe von natürlichen Mitteln sorgt der niederländische Bauer für ein Qualitätsprodukt ohne gleichen. Hollandia Tomaten haben einen unüber-troffen vollen Geschmack und ein reiches Aroma. Forschung weist auf, dass 9 von 10 Konsumenten Hollandia Tomaten viel schmackhafter finden als andere Tomaten. Hollandia Tomaten: Schmecken so gut wie Tomaten aus eigenem Garten… Die schmackhafteste Verwöhnung von Mutter Natur +

  24. Study design • 2 x 2 x 2 factorial design = 8 different ads/surveys • claim strength (modest vs. extreme) • country of origin (Netherlands vs. Spain) • Motivation (low vs. high = method-factor) • 751 German consumers, “between subjects” • Effect on purchase intention

  25. Conclusion

  26. Conclusion

  27. Conclusion

  28. Summary • COO is relevant, but only if the consumer is (made) aware • Country image is stored as an associative network. Associations can be measured and used for positioning and for designing/tracking communication • When influencing country image, boomerang effects for over- & underclaiming may occur, especially when involvement is high.

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