COUNTRY IMAGE: measurement & impact on consumer behavior Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam 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 ? … 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 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 HOEZO country van herkomst ? in practice - I 10mm Made in Taiwan 5mm in practice - II Whatorigin is the origin? - Stereotypes? The – stereotypes? What is the origin? - Stereotypes? 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. What is the origin? - Stereotypes? The origin – stereotypes? Heaven is where… Hell is where… the police are British, the police are German, the lovers are French, the mechanics are French, the mechanics are German, the cooks are British, the cooks are Italians, the lovers are Swiss, and it is all organized by the Swiss. and it is all organized by the Italians Whatorigin is the origin? - Stereotypes? The – stereotypes? 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) Product-related country image Product experience Country: climate Country: nature People: competence People: creativity Feelings (pos/neg) attributes hedonic utilitarian Product Attitude 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) Study 1: tomatoes Product experience Country: climate Country: nature People: competence People: creativity Feelings (pos/neg) attributes hedonic utilitarian Product Attitude Study 2: washing machines Product experience Country: climate Country: nature People: competence People: creativity Feelings (pos/neg) attributes hedonic utilitarian Product Attitude Extending the measure of country image Country: climate Country: nature experience distance relationships People: competence People: creativity Attitudes & behaviors Country: …. Country: …. with Ministry of Foreign Affairs: Track image in ±15 countries 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 Features of associations - A Features of associations Secondary associations: associations of associations Example: Switzerland - Mountains Mountains – pure air, natural Features of associations - B Features of associations Resonance: Country evokes association, BUT: Does association evoke country? Examples ?: Tulips - Netherlands Wine – France Features of associations - C Features of associations Interconnections of associations: Enhance consistency, improve image Example: France – Sun France – Wine France - Savoir-vivre But also: Wine- sun & Wine- “Savoir-vivre” 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 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 Die schmackhafteste Verwöhnung von Mutter Natur + schmackhafter finden als andere Tomaten. Hollandia Tomaten: Schmecken beinah so gut wie Tomaten aus eigenem Garten… Ad - extreme Die schmackhafteste Verwöhnung von Mutter Natur + 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 unübertroffen 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… 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 Conclusion Table 1: Purchase intention for tomatoes HOLLANDIA SPANIA Low High Low High involvement involvement involvement involvement Modest 68.5 61.6 46.0 56.1 Extreme 64.3 65.6 54.4 52.1 Conclusion Table 1: Purchase intention for tomatoes HOLLANDIA SPANIA Low High Low High involvement involvement involvement involvement Modest 68.5 61.6 46.0 56.1 Extreme 64.3 65.6 54.4 52.1 Conclusion Table 1: Purchase intention for tomatoes HOLLANDIA SPANIA Low High Low High involvement involvement involvement involvement Modest 68.5 61.6 46.0 56.1 Extreme 64.3 65.6 54.4 52.1 Summary 1. COO is relevant, but only if the consumer is (made) aware 2. Country image is stored as an associative network. Associations can be measured and used for positioning and for designing/tracking communication 3. When influencing country image, boomerang effects for over- & underclaiming may occur, especially when involvement is high.