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Perception of “foreignness” of brands (CD)

By: Dadhich, Harsh.
Material type: materialTypeLabelBookPublisher: Ahmedabad Indian Institute of Management Ahmedabad 2016Description: 227 p.Subject(s): BrandingDDC classification: TH 2016-04 Summary: ABSTRACT Country-of-origin (COO) affects consumers’ perceptions towards brands and products. However, research also suggests that consumers rarely recognize brand origins accurately (Balabanis & Diamantopoulos, 2008; Samiee, Shimp & Sharma, 2005). This research probes the categorization of foreign brand origins by consumers to understand how COO information is used by consumers during purchase decisions. Based on categorization theory, this thesis argues that consumers are more likely to form clusters of countries that are similar on one or more parameters. These similarity-based clusters are captured through a a new construct of Brand Ethnicity.Brand Ethnicity will be recalled and used through labels that will be shaped by the most typical country/countries of the clusters. Three studies were conducted to empirically test these hypothesis, where Study 1 and Study 2 investigate whether consumers categorize COOs in similarity-based clusters or perceive them to be discrete and mutually exclusive. Study 2 also describes the effects of Brand Ethnicity on consumers’ transaction with foreign brands.Study 3 was conducted to test the efficacy of several marketing tools used in promoting COO cues. This research extends the understanding of COO and brand origin literature and assists marketing professionals to effectively utilize COO based on their target audiences' perceptions Approved by Thesis Advisory Committee Prof. Abraham Koshy [Chairperson] Prof. Arnab K. Laha [Member] Prof. Neharika Vohra [Member]
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Reference TH 2016-04 (Browse shelf) Not for Issue CD002460

TABLE OF CONTENTS
Chapter 1 : INTRODUCTION ....................................................................................................... 2
1.1 OVERVIEW ........................................................................................................................ 2
1.2 BACKGROUND TO THE RESEARCH .................................................................................. 3
1.2.1 Country-of-Origin Effects .......................................................................................... 3
1.2.2 Categorization and Category Learning ..................................................................... 5
1.3 RESEARCH OBJECTIVES .................................................................................................... 7
1.4 JUSTIFICATION FOR THIS RESEARCH ............................................................................. 12
1.5 METHODOLOGY ............................................................................................................. 14
1.5.1 Qualitative Study .....................................................................................................14
1.5.2 Quantitative Studies ................................................................................................15
1.6 RESULTS .......................................................................................................................... 17
1.7 INTENDED CONTRIBUTIONS .......................................................................................... 19
1.8 LIMITATIONS .................................................................................................................. 19
1.9 STRUCTURE OF THE THESIS ........................................................................................... 20
Chapter 2 : LITERATURE REVIEW ............................................................................................. 23
2.1 INTRODUCTION .............................................................................................................. 23
2.2 COUNTRY-OF-ORIGIN .................................................................................................... 25
2.2.1 Background: .............................................................................................................25
2.3 BRAND ORIGIN ............................................................................................................... 32
2.4 BRAND ORIGIN RECOGNITION ACCURACY ................................................................... 33
2.5 MEASUREMENTS OF COO EFFECTS .............................................................................. 35
2.5.1 Product-Country Images .........................................................................................36
2.5.2 Country and Product Attributes .............................................................................37
2.5.3 Product Ethnicity .....................................................................................................39
2.5.3 Clusters of Countries Based on Level of Development or Industrialization .........41
2.6 CATEGORIZATION AND CATEGORY LEARNING ............................................................ 46
2.6.1 Classical View ...........................................................................................................47
2.6.2 Prototype-Based Models ........................................................................................48
2.6.3 Exemplar-Based Models ..........................................................................................50
2.6.4 Prototype-Based vs. Exemplar-Based Models .......................................................51
2.6.5 Hierarchy of Categories ...........................................................................................52
2.6.6 Typicality ..................................................................................................................53
2.6.7 Labels and Inferences ..............................................................................................54
2.7 CATEGORIZATION THEORY IN COO LITERATURE ......................................................... 57
2.8 RESEARCH QUESTION .................................................................................................... 60
2.9 BRAND ETHNICITY .......................................................................................................... 63
2.9.1 Differences between various clusters of countries and Brand Ethnicity..............70
2.10 PRIOR KNOWLEDGE ..................................................................................................... 75
2.10.1 Familiarity ..............................................................................................................75
2.10.2 Subjective Knowledge ...........................................................................................78
2.11 MATERIALISM .............................................................................................................. 80
2.12 COMMUNICATING BRAND ETHNICITY ....................................................................... 81
2.13 BRAND EVALUATIONS ................................................................................................. 83
Chapter 3 : METHODOLOGY .................................................................................................... 86
3.1 INTRODUCTION .............................................................................................................. 86
3.2 ONTOLOGICAL AND EPISTEMOLOGICAL POSITIONS ................................................... 88
3.3 RESEARCH STRATEGY ..................................................................................................... 91
3.4 RESEARCH DESIGN ......................................................................................................... 92
3.4.1 Qualitative Research ...............................................................................................93
3.4.2 Quantitative Studies ................................................................................................95
3.5 ANALYSIS TOOLS .......................................................................................................... 106
3.5.1 Cluster Analyses .................................................................................................... 106
3.5.2 Kurskal Wallis Test ................................................................................................ 109
3.6 CONCLUSION ................................................................................................................ 110
Chapter 4 : DATA AND ANALYSIS ........................................................................................... 113
4.1 INTRODUCTION ............................................................................................................ 113
4.1.1 Phase 1: In-depth Interviews ............................................................................... 115
4.1.2 Pre-tests and Scale Validation ............................................................................. 115
4.1.3: Quantitative Studies ............................................................................................ 115
4.2 IN-DEPTH INTERVIEWS ................................................................................................ 116
4.2.1 Brand origin awareness ........................................................................................ 118
4.2.2 List of Product Categories .................................................................................... 118
4.2.3 List of Countries .................................................................................................... 118
4.2.4 Perceived Benefits of Foreign Brands ................................................................. 119
4.2.5 Identifying a Foreign Brand .................................................................................. 119
4.3 PRE-TESTS AND SCALE VALIDATION ........................................................................... 120
4.3.1 Pre-test 1: Brand Familiarity ................................................................................ 121
4.3.2 Scale Validation .................................................................................................... 123
4.3.3 Pre-test 2: Questionnaire Development ............................................................. 126
4.3.4 Pre-test 3: Fictitious Brands ................................................................................. 127
4.4 QUANTITATIVE STUDIES .............................................................................................. 130
4.4.1 Study 1: Brand Ethnicity ....................................................................................... 130
4.4.2 Study 2: Real Brands ............................................................................................. 135
4.4.3 Study 3: Fictitious Brands ..................................................................................... 152
4.5 CONCLUSION ................................................................................................................ 164
Chapter 5 : DISCUSSION ......................................................................................................... 167
5.1 INTRODUCTION ............................................................................................................ 167
5.2 DISCUSSION: STUDY 1 .................................................................................................. 168
5.3 DISCUSSION: STUDY 2 .................................................................................................. 169
5.4 DISCUSSION: STUDY 3 .................................................................................................. 175
5.6 THEORETICAL IMPLICATIONS ...................................................................................... 178
5.7 MANAGERIAL IMPLICATIONS ...................................................................................... 178
5.7 LIMITATIONS ................................................................................................................ 179
5.8 FUTURE RESEARCH ...................................................................................................... 180
REFERENCES ........................................................................................................................... 181
Appendix 1: Real Brand Adverstiments ................................................................................ 200
Appendix 2: Fictitious Brand Advertisements ...................................................................... 206
Appendix 3: Questionnaire for study 1 ................................................................................. 210
Appendix 4: questionnaire for study 2 and 3 ....................................................................... 215

ABSTRACT

Country-of-origin (COO) affects consumers’ perceptions towards brands and products. However, research also suggests that consumers rarely recognize brand origins accurately (Balabanis & Diamantopoulos, 2008; Samiee, Shimp & Sharma, 2005). This research probes the categorization of foreign brand origins by consumers to understand how COO information is used by consumers during purchase decisions. Based on categorization theory, this thesis argues that consumers are more likely to form clusters of countries that are similar on one or more parameters. These similarity-based clusters are captured through a a new construct of Brand Ethnicity.Brand Ethnicity will be recalled and used through labels that will be shaped by the most typical country/countries of the clusters. Three studies were conducted to empirically test these hypothesis, where Study 1 and Study 2 investigate whether consumers categorize COOs in similarity-based clusters or perceive them to be discrete and mutually exclusive. Study 2 also describes the effects of Brand Ethnicity on consumers’ transaction with foreign brands.Study 3 was conducted to test the efficacy of several marketing tools used in promoting COO cues. This research extends the understanding of COO and brand origin literature and assists marketing professionals to effectively utilize COO based on their target audiences' perceptions

Approved by Thesis Advisory Committee

Prof. Abraham Koshy [Chairperson]
Prof. Arnab K. Laha [Member]
Prof. Neharika Vohra [Member]

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