COUNTRY-OF-ORIGIN EFFECTS IN CONSUMER PROCESSING OF ADVERTISING CLAIMS PRESENTED BY: JOANA ZHENG - 2796703 MATTHIS VAN DER WAL - 2773252 MARKO DARABOS - 2759520 JENS VAN LEEUWEN - 2781053 AZIZ BAZI - 2778177 MITCHEL FULJHARI - 2756609 CONTENT 01 02 03 04 05 INTRODUCTION HYPOTHESIS METHODOLOGY RESULTS IMPLICATIONS 06 LINK TO THE LECTURES 07 QUESTIONS INTRODUCTION Consumers' perception of a product and its advertising is influenced by the country of origin Consumers have access to vast information How businesses market and advertise Consumers' awareness of social and environmental issues Importance of comprehending this effect HYPOTHESIS 1A 1B Products from a country with a relatively favorable product–country image will be evaluated more positively than products from a country that have a relatively unfavorable product–country image. The impact of country of origin on evaluations of an advertised product will be larger when consumers have a low (as opposed to a high) level of ad involvement. HYPOTHESIS 2 3A 3B When consumers are presented with an ad for a product from a country with a relatively favorable product–country image, product evaluations will be more favorable when ad involvement is high, than when ad involvement is low, regardless of the level of claim favorability. When consumers are presented with an ad for a product from a country with a relatively unfavorable product–country image, and this ad contains claims that are moderately favorable, product evaluations will be more favorable when ad involvement is high, than when ad involvement is low. When consumers are presented with an ad for a product from a country with a relatively unfavorable product–country image, and this ad contains claims that are extremely favorable, product evaluations will not be more favorable when ad involvement is high, than when ad involvement is low METHOD The Netherlands was a major exporter of fruit and vegetables, with an export value of 5.7 billion euros in 2002. About 40% was exported to Germany, rendering it by far the most important export market for Dutch fruits and vegetables. METHOD Dutch tomatoes: tasteless, watery and artificial Spanish tomatoes: natural, sun-ripened produce, good taste and aroma METHOD 813 questionnaires were filled out completely and properly (54%). 106 questionnaires deleted because of respondents who had indicated that they knew nothing about Dutch or Spanish tomatoes. The remaining 707 respondents were more or less evenly distributed across the eight cells in the design. METHOD "Spania" vs "Hollandia" RESULTS hypothesis 1a Data in figure 3 supports hypothesis 1a Dependent variables revealed significant main effects of country of origin positive difference between consumers’ evaluations hypothesis 1b significant interactions between country of origin and ad involvement Differences in mean scores: 16.9 and 9.9 results show that the country-of-origin effect is smaller when ad involvement is high RESULTS hypothesis 2 Data indicate that the main effect of ad involvement was not significant for either of the measures Absence of an effect of ad involvement for Spanish tomatoes advertised with extremely favorable claims Prior images of Spanish tomatoes were so favorable that they were not affected by extremely favorable claims The moderately favorable claims led to a downward adjustment of the evaluation. RESULTS hypothesis 3a Evaluations of Dutch tomatoes advertised with moderately favorable claims more favorable under high involvement hypothesis 3b For Dutch tomatoes advertised with extremely favorable claims we found no effect of ad involvement Shown in figure below IMPLICATIONS Country of origin strongly influences credibility and information processing - > product evaluation Unfavorable country image High ad involvement with moderately favorable claims are bad for product evaluations High ad involvement with extremely favorable claims are no effect of product evaluations , probaly because certain quality is already expected Extremely favorable claims over moderately favorable, if moderately favorable claims are done there could be a suspected case of ''underclaiming'' Moderately favorable claims over extremely favorable claims since credibility is low, customers would distrust extremely favorable claims more Low ad involvement since customers take the ad at face value then and won't to a lot of research Favorable country image FUTURE RESEACH Test other variables that influence information processing like time pressure, product expertise and repeated exposure with country image to see how they affect each other Do similair research with different products that have different attributes to see if the gave the same results. Do more research on the effects specifically of under and overclaiming CONNECTING TO THE LECTURES Influence on consumer perceptions Effective communication strategies Cultural factors in consumer behavior Branding and product development strategies QUESTIONS Voting code: 7668 9980 THANK FOR YOUR ATTENTION