Country image dimensions and retail brand equity. A multi-cue analysis

  • Elisa Martinelli
  • Francesca De Canio
Keywords: retail brand equity; country image; brand awareness; brand image; discounter; SEM

Abstract

Frame of the research: Today, retailers possess stronger brands with a high level of awareness and are increasingly going international. A better understanding of consumer-based brand equity (CBBE) from an international marketing perspective is required.

Purpose of the paper: To this aim, this study investigates the factors affecting retail brand equity (RBE) when a multi-cue approach is applied, that is: considering traditional RBE antecedents (e.g. retail brand awareness, retail brand image, retail perceived value) together with country image (CI) cues - in their cognitive and affective dimensions. 

Methodology: A survey was carried out administering a structured questionnaire to a sample of consumers. A structural equation modeling (SEM) was employed to test the proposed model.

Findings: All the postulated relationships were verified, apart from the retail perceived value (RPV). Country image affects retail brand equity, but unexpectedly. While the cognitive image of the retailer’s country of origin exerts a negative effect, the affective country image impacts in a positive way.

Research limits: Despite the contribution to the retailing and international marketing literature, the research has some limitations. It is performed on a single retail brand and focused on Italian consumers only. Finally, this first study did not include any mediating or moderating variables.

Practical implications: International retailers, with particular attention to discounters, would understand the factors to leverage in order to boost their consumer-based brand equity.

Originality of the paper: So far, poor attention has been given to the effect of country image on retail brand equity. However, the retailer’s image develops not only in accordance with the service provided, but also in relation to the stereotypes connected with the retailer’s country of origin. Moreover, the study employs a multi-cue perspective, using traditional RBE antecedents together with CI dimensions.

References

AAKER D.A. (1991), Managing Brand Equity, The Free Press, New York.

AHMED S.A., ASTOUS A.D. (1996), “Country-of-origin and brand effects: a multidimensional and multi-attribute study”, Journal of International Consumer Marketing, vol. 9, n. 2, pp. 93-115.

AHMED Z.U., JOHNSON J.P., LING C.P., FANG T.W., HUI A.K. (2002), Country-of-origin and brand effects on consumers’ evaluations of cruise lines”, International Marketing Review, vol. 19, n. 3, pp. 279-302.

AILAWADI K., KELLER K.L. (2004), “Understanding retail branding: conceptual insights and research priorities”, Journal of Retailing, vol. 80, n. 4, pp. 331-342.

ANDÉHN M., NORDIN F., NILSSON M.E. (2016), “Facets of country image and brand equity: Revisiting the role of product categories in country of origin effect research”, Journal of Consumer Behaviour, vol. 15, n. 3, pp. 225-38.

ANDERSON JC., GERBING DW. (1988), “Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach”, Psychological Bulletin, vol. 103, n. 3, pp. 411-23.

ANSELMSSON J., BURT S., TUNCA B. (2017), “An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity”, Journal of Retailing and Consumer Services, vol. 38, pp. 194-203.

BALBONI B., GRAPPI S., MARTINELLI E., VIGNOLA M. (2011), “L’impatto del Made in Italy sul comportamento d’acquisto dei consumatori cinesi”, Micro and Macro Marketing, n. 3, pp. 445-62.

BERENTZEN J.B., BACKHAUS C., MICHAELIS M., BLUT M., AHLERT D. (2008), “Does “made in…” also apply to services? An empirical assessment of the country-of-origin effect in service settings”, Journal of Relationship Marketing, vol. 7, n. 4, pp. 391-405.

BILKEY W.J., NES E. (1982), “Country-of-origin effects on product evaluations”, Journal of International Business Studies, vol. 13, n. 1, pp. 89-99.

BLOEMER J., BRIJS K., KASPER H. (2009), “The CoO-ELM model-a theoretical framework for the cognitive processes underlying country of origin-effects”, European Journal of Marketing, vol. 43, n. 1/2, pp. 62-89.

BUIL I., DE CHERNATONY L., MARTINEZ E. (2008), “A cross-national validation of the consumer-based brand equity scale”, Journal of Product and Brand Management, vol. 17, n. 6, pp. 384-392.

BUIL I., MARTÍNEZ E., DE CHERNATONY L. (2013), “The influence of brand equity on consumer responses”, Journal of Consumer Marketing, vol. 30, n. 1, pp. 62-74.

BURT S., DAVIES K. (2010), “From the retail brand to the retail-er as a brand: themes and issues in retail branding research”, International Journal of Retail and Distribution Management, vol. 38, n. 11/12, pp. 865-78.

BURT S., JOHANSSON U., DAWSON J. (2016), “International retailing as embedded business models”, Journal of Economic Geography, vol. 16, n. 3, pp. 715-47.

BYRNE B.M. (2013), Structural equation modeling with EQS: Basic concepts, applications, and programming, Routledge, London.

CHAO P. (1993, “Partitioning country of origin effects: consumer evaluations of a hybrid product”, Journal of International Business Studies, vol. 24, n. 2, pp. 291-306.

CHU P.Y., CHANG C.C., CHEN C.Y., WANG T.Y. (2010), “Countering negative country-of-origin effects: the role of evaluation mode”, European Journal of Marketing, vol. 44, n. 7/8, pp. 1055-76.

CHRISTODOULIDES G., CADOGAN J.W., VELOUTSOU C. (2015), “Consumer-based brand equity measurement: lessons learned from an international study”, International Marketing Review, vol. 32, n. 3/4, pp. 307-328.

DAKIN J.A., CARTER S. (2010), “Negative image: developing countries and country of origin-an example from Zimbabwe”, International Journal of Economics and Business Research, vol. 2, n. 3, pp. 166-86.

DAS G., DATTA B., GUIN K.K. (2012), “Impact of retailer personality on consumer-based retailer equity: An empirical study of retail brands”, Asia Pacific Journal of Marketing and Logistics, vol. 24, n. 4, pp. 619-39.

DE MOOIJ M., HOFSTEDE G. (2002), “Convergence and divergence in consumer behavior: implications for international retailing”, Journal of Retailing, vol. 78, n. 1, pp. 61-9.

DE VAUS D.A. (2002), Analyzing Social Science Data: 50 Key Problems in Data Analysis, Sage Publications, London.

FORNELL C., LARCKER D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, vol. 18, n. 1, pp. 39-50.

GIL-SAURA I., RUIZ-MOLINA M.E., MICHEL G., CORRALIZA-ZAPATA A. (2013), “Retail brand equity: a model based on its dimensions and effects”, The International Review of Retail, Distribution and Consumer Research, vol. 23, n. 2, pp. 111-36.

HAN C.M. (1989), “Country image: halo or summary construct?”, Journal of Marketing Research, vol. 26, pp. 222-9.

HARTMAN K.B., SPIRO R.L. (2005), “Recapturing store image in customer-based store equity: a construct conceptualization”, Journal of Business Research, vol. 58, n. 8, pp. 1112-20.

HESLOP L.A., PAPADOPOULOS N. (1993), “But Who Knows Where or When? reflections on the images of countries and their products”, In Papadopoulos N., Heslop L.A. (Eds.), Product-country images: impact and role in international marketing, International Business Press, New York, pp. 39-75.

HSIEH M.H., PAN S.L., SETIONO R. (2004), “Product-, corporate-, and country-image dimensions and purchase behavior: a multicountry analysis”, Journal of the Academy of Marketing Science, vol. 32, n. 3, pp. 251-70.

HU L.T., BENTLER P.M. (1999), “Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives”, Structural Equation Modeling: A Multidisciplinary Journal, vol. 6, n. 1, pp. 1-55.

JARA M., CLIQUET G. (2012), “Retail brand equity: Conceptualization and measurement”, Journal of Retailing and Consumer Services, vol. 19, n. 1, pp. 140-9.

JAVALGI R.G., CUTLER B.D., WINANS W.A. (2001), “At your service! Does country of origin research apply to services?”, Journal of Services Marketing, vol. 15, n. 7, pp. 565-582.

JINFENG W., ZHILONG T. (2009), “The impact of selected store image dimensions on retailer equity: evidence from 10 Chinese hypermarkets”, Journal of Retailing and Consumer Services, vol. 16, n. 6, pp. 486-94.

JOHANSSON J.K. (1989), “Determinants and effects of the use of ‘made in’ labels”, International Marketing Review, vol. 6, n. 1, pp. 47-58.

JOHANSSON J.K., DOUGLAS S.P., NONAKA, I. (1985), “Assessing the impact of country-of-origin on product evaluations: a new methodological perspective”, Journal of Marketing Research, vol. 22, pp. 388-96.

JOSIASSEN A., HARZING A.W. (2008), “Comment: descending from the ivory tower: reflections on the relevance and future of country-of- origin research”, European Management Review, vol. 5, n. 4, pp. 264-70.

KAN G., CLIQUET G., PUELLES GALLO M. (2014), “The effect of country image on hypermarket patronage intention: A cross-cultural study in China and Spain”, International Journal of Retail and Distribution Management, vol. 42, n. 2, pp. 106-130.

KELLER K.L. (1993), “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity”, Journal of Marketing, vol. 57, n. 1, pp. 1-22.

KLEIN J.G., ETTENSON R., MORRIS M.D. (1998), “The animosity model of foreign product purchase: an empirical test in the People’s Republic of China”, Journal of Marketing, vol. 62, n. 1, pp. 89-101.

KNIGHT G.A., CALANTONE R.J. (2000), “A flexible model of consumer country-of-origin perceptions: a cross-cultural investigation”, International Marketing Review, vol. 17, n. 2, pp. 127-45.

KOTLER P., GERTNER D. (2002), “Country as brand, product, and beyond: A place marketing and brand management perspective”, Journal of Brand Management, vol. 9, n. 4, pp. 249-61.

KREMER F., VIOT C. (2012), “How Store Brands Build Retailer Brand Image”, International Journal of Retail and Distribution Management, vol. 40, n. 7, pp. 528-43.

LAROCHE M., PAPADOPOULOS N., HESLOP L.A., MOURALI M. (2005), “The influence of country image structure on consumer evaluations of foreign products”, International Marketing Review, vol. 22, n. 1, pp. 96-115.

LASSAR W., MITAL B., SHARMA A. (1995), “Measuring customer-based brand equity”, Journal of Consumer Marketing, vol. 12, n. 4, pp. 11-19.

LONDOÑO J.C., ELMS J., DAVIES K. (2016), “Conceptualising and measuring consumer-based brand-retailer-channel equity”, Journal of Retailing and Consumer Services, vol. 29, pp. 70-81.

LONDOÑO J.C., ELMS J., DAVIES K. (2017), “A commentary on “conceptualising and measuring consumer-based brand-retailer-channel equity”: A review and response”, Journal of Retailing and Consumer Services, vol. 37, pp. 31-32.

MAGNUSSON P., WESTJOHN S., ZDRAVKOVIC S. (2011), “What? I thought Samsung was Japanese”: accurate or not, perceived country of origin matters”, International Marketing Review, Vol. 28, n. 5, pp. 454-72.

MARINO V., MAINOLFI G. (2013), Country brand management, EGEA, Milano.

MARINO V., MAINOLFI G. (2010), “Valutazione e analisi del processo di country branding. La percezione del capitale reputazionale dell'Italia nel mercato cinese”, Mercati e Competitività, n. 4. pp. 65-83.

MARTIN I.M., EROGLU S. (1993), “Measuring a multi-dimensional construct: Country image”, Journal of Business Research, vol. 28, n. 3, pp. 191-210.

MARTINELLI E., DE CANIO F. (2018), “Retail Brand Equity: un’analisi customer-based”, Micro and Macro Marketing, n. 3, pp. 397-416.

MARTINELLI E., DE CANIO F. (2019), “Eating in an Italian restaurant. The role of Country Image in driving Spanish customers attitude and intention to patronize an ethnic restaurant”, Mercati e Competitività, n. 2, pp. 83-104.

MORSCHETT D., SWOBODA B., FOSCHT T. (2005), “Perception of store attributes and overall attitude towards grocery retailers: The role of shopping motives”, The International Review of Retail, Distribution and Consumer Research, vol. 15, n. 4, pp. 423-47.

NAGASHIMA A. (1970), “A comparison of Japanese and US attitudes toward foreign products”, Journal of Marketing, vol. 34, n. 1, pp. 68-74.

NEBENZAHL I.D., JAFFE E.D., USUNIER J.C. (2003), “Personifying country of origin research”, Management International Review, vol. 43, n. 4, pp. 383-406.

PAPADOPOULOS, N. (1993), “What product and country images are and are not”, in Papadopoulos N., Heslop L. (Eds), Product Country Images: Impact and Role in International Marketing, International Business Press, New York, NY, pp. 3-38.

PAPADOPOULOS N., HESLOP L.A. (2002), “Country equity and country branding: problems and prospects”, Journal of Brand Management, vol. 9, n. 4-5, pp. 294-314.

PAPADOPOULOS N., HESLOP L.A., BAMOSSY, G. (1990), “A comparative image analysis of domestic versus imported products”, International Journal of Research in Marketing, vol. 16, n. 7, pp. 283-94.

PAPPU R., QUESTER P. (2006), “A consumer-based method for retailer equity measurement: Results of an empirical study”, Journal of Retailing and Consumer Services, vol. 13, n. 5, pp. 317-29.

PAPPU R., QUESTER P. (2010), “Country equity: Conceptualization and empirical evidence”, International Business Review, vol. 19, n. 3, pp. 276-291.

PAPPU R., QUESTER P.G., COOKSEY R.W. (2007), “Country image and consumer-based brand equity: relationships and implications for international marketing”, Journal of International Business Studies, vol. 38, n. 5, pp- 726-45.

PARAMESWARAN R., YAPRAK A. (1987) “A cross-national comparison of consumer research measures”, Journal of International Business Studies, vol. 18, n. 1, pp. 35-49.

PECOTICH A., PRESSLEY M., ROTH D. (1996), “The impact of country of origin in the retail service context”, Journal of Retailing and Consumer Services, vol. 3, n. 4, pp. 213-224.

PHARR J.M. (2005), “Synthesizing country-of-origin research from the last decade: is the concept still salient in an era of global brands?”, Journal of Marketing Theory and Practice, vol. 13, n. 4, pp. 34-45.

RASHMI DANGI H. (2016), “Act like a retailer, Think like a Brand: An overview of retailer brand equity and agenda for future research in Indian context”, Asia-Pacific Journal of Management Research and Innovation, vol. 12, n.1, pp. 67-84.

ROTH K.P., DIAMANTOPOULOS A. (2009), “Advancing the country image construct”, Journal of Business Research, vol. 62, n. 7, pp. 726-40.

ROTH M.S., ROMEO J.B. (1992), “Matching product category and country image perceptions: A framework for managing country-of-origin effects”, Journal of International Business Studies, vol. 23, n. 3, pp. 477-97.

SAMIEE S. (2010), “Advancing the country image construct-a commentary essay”, Journal of Business Research, vol. 63, n. 4, pp. 442-5.

SAMIEE S., SHIMP T.A., SHARMA S. (2005), “Brand origin recognition accuracy: its antecedents and consumers’ cognitive limitations”, Journal of International Business Studies, vol. 36, n. 4, pp. 379-97.

SHOCKER A.D., SRIVASTAVA R.K. AND RUEKERT R.W. (1994), “Challenges and opportunities facing brand management: an introduction to the special issue”, Journal of Marketing Research, vol. 31, n. 2, pp. 149-58.

SWEENEY J.C., SOUTAR G.N., JOHNSON, L.W. (1997), “Retail service quality and perceived value: A comparison of two models”, Journal of Retailing and Consumer Services, vol. 4, n. 1, pp. 39-48.

SWOBODA B., BERG B., SCHRAMM-KLEIN H., FOSCHT T. (2013), “The importance of retail brand equity and store accessibility for store loyalty in local competition”, Journal of Retailing and Consumer Services, vol. 20, n. 3, pp. 251-62.

SWOBODA B., HAELSIG F., SCHRAMM-KLEIN H., MORSCHETT D. (2009), “Moderating role of involvement in building a retail brand”, International Journal of Retail & Distribution Management, vol. 37, n. 11, pp. 952-74.

SWOBODA B., WEINDEL J., HÄLSIG F. (2016), “Predictors and effects of retail brand equity-A cross-sectoral analysis”, Journal of Retailing and Consumer Services, vol. 31, pp. 265-76.

THAKOR M.V., KATSANIS L.P. (1997), “A model of brand and country effects on quality dimensions: issues and implications”, Journal of International Consumer Marketing, vol. 9, n. 3, pp. 79-100.

THAKOR M.V., KOHLI C.S. (1996), “Brand origin: conceptualization and review”, Journal of Consumer Marketing, vol. 13, n. 3, pp. 27-42.

THAKOR V.M., LAVACK A.M. (2003), “Effect of perceived brand origin associations on consumer perceptions of quality”, Journal of Product and Brand Management, vol. 12, n. 6, pp. 394-407.

USUNIER J.C. (2006), “Relevance in business research: the case of country-of-origin research in marketing”, European Management Review, vol. 3, n. 1, pp. 60-73.

USUNIER J.C. (2011), “The shift from manufacturing to brand origin: suggestions for improving COO relevance”, International Marketing Review, vol. 28, n. 5, pp. 486-96.

YASIN M.N., NOOR N.M., MOHAMAD O. (2007), “Does image of country‐of‐origin matter to brand equity?”, Journal of Product and Brand Management, vol. 16, n. 1, pp. 38-48.

YOO B., DONTHU N. (2001), “Developing and Validating a Multidimensional Consumer-Based Brand Equity Scale”, Journal of Business Research, vol. 52, n. 1, pp. 1-14.

YOO B., DONTHU N., LEE S. (2000), “An examination of selected marketing mix elements and brand equity”, Journal of the Academy of Marketing Science, vol. 28, n. 2, pp. 195-211.

VERLEGH P.W.J., STEENKAMP J.B.E.M. (1999), “A review and meta-analysis of country of origin research”, Journal of Economic Psychology, vol. 20, n. 5, pp. 521-46.

VILLANUEVA L., PAPADOPOULOS N. (2003), “Toward a model of consumer receptivity of foreign and domestic products”, Journal of International Consumer Marketing, vol. 15, n. 3, pp. 101-26.

WEINDEL J.K. (2016), Retail Brand Equity and Loyalty: Analysis in the Context of Sector-Specific Antecedents, Perceived Value, and Multichannel Retailing, Springer.

ZEITHAML V.A. (1988), “Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence”, Journal of Marketing, vol. 52, n. 3, pp. 2-22.

Published
2021-08-31