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    Country of Origin Effects and Consumer Knowledge:

    A Study of Country of Origin Effects and Consumer Knowledge Amoung Taiwanese

    Beer Consumers

    David Mc Guinness

    MBA Student, Management of Science

    National Chiao Tung University

    Special Topics in Marketing Research

    Dr. Charles Trappey

    January 4, 2008

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    Country of Origin Effects and ConsumerKnowledge

    Abstract

    Country of origin and consumer knowledge has an impact on consumers purchase

    intentions. This study was conducted to understand how the various dimensions of

    consumer knowledge relate to country of origin effects and how this impacts a

    consumers use of country of origin cues when evaluating products. The effects of

    country of origin and consumer knowledge were investigated by gathering and analyzing

    data collected through questionnaires. From the findings of this study it appears that the

    various dimensions of consumer knowledge together have a significant effect on the use

    of the country of origin cue in product evaluations.

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    Country of Origin Effects and ConsumerKnowledge

    Introduction

    Brand name and price are factors that generally influence consumers evaluation

    of and purchase intentions towards a product. However, the globalization of production

    and markets has added another factor to the list as more and more companies shift

    production to overseas locations where factors of production are superior or less costly,

    and then market their products to consumers around the world. Consequently, for many

    international consumers a products country of origin (COO) can be an important cue in

    evaluating both domestic and foreign products. Ahmed et al. (2002).

    Studies have proved that consumers around the world use COO as a factor in

    product evaluation (e.g. Bilkey and Nes, 1982; Hong and Wyer, 1989; Maheswaran,

    1994; Okechuku and Onyemah, 1999; Supanvanij and Amine, 2000). As international

    trade activity is becoming a fundamental part of the world economy, it is even more

    important to measure consumers attitudes towards both domestic and foreign products

    (Netemeyer et al., 1991). How COO perceptions affect consumers evaluation of and

    intention to purchase products, and the relative strength of COO compared with other

    informational cues, are of considerable interest to international marketing practitioners

    and researchers since this information can help them to devise more effective strategies to

    aid firms in selling their products internationally.

    However, most studies of COO effects have focused on high involvement

    products such as cars and electronic goods for which consumers will usually look beyond

    cues such as price or design in making their purchase decision. To date, there have been

    few studies on the impact of consumers COO perceptions on low-involvement products;

    thus, it is not clear what role COO plays in shaping consumers preferences and

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    intentions to purchase such goods or whether its effect is the same for low-involvement

    products as for high-involvement products, Ahmed et al. (2002).

    An individual factor which may inhibit reliance on country of origin is consumer

    knowledge. Consumer knowledge has been mentioned as one such individual factor in

    various publications. However, relatively few publications have addressed the issue in

    detail. The purpose of this thesis, therefore, is to explore various dimensions of consumer

    knowledge as it relates to country of origin effects and then investigate how these

    dimensions of knowledge affect consumers use of country of origin in evaluating a fast

    consumer product, i.e. beer.

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    Country of Origin Effects and ConsumerKnowledge

    Purpose

    The purpose of this study is to explore various dimensions of consumer

    knowledge as it relates to country of origin effects and then investigate how these

    dimensions of knowledge affect a consumers use of country of origin cues when

    purchasing beer and to test it with Taiwanese consumers.

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    Country of Origin Effects and ConsumerKnowledge

    Literature Review

    Previous literatures on consumer knowledge show that country of origin (COO)

    effects is a very complex issue. Various factors can influence its extent. One of these

    factors is consumer knowledge (Maheswaran, 1994; Chiou, 2003). Earlier studies have

    not illustrated between the different dimensions of consumer knowledge and how these

    are connected with COE (Scribner and Weun, 2001). In addition, the level of product

    knowledge will also affect information use since increased familiarity results in better

    developed knowledge structures or schema about the product (Rao and Monroe, 1988).

    Consumer knowledge certainly plays a role in the acquisition and evaluation of extrinsic

    cues. For instance, Cordell (1997) has investigated the dimensionality of consumer

    knowledge and each dimensions moderating effects on consumer use of extrinsic cues.

    In his study based on a camera, different cues such as the products brand (well-known

    versus invented) and COO (developed versus developing) are all relevant in consumer

    evaluation. As such, there is a need to examine the relationship between various

    dimensions of consumer knowledge and consumers use of COO.

    There are some inherent gaps in the literature. Previous COO studies mostly used

    durable, complex and high financial risk products, such as automobiles and electronic

    appliances. Very few studies investigated solely non-durable, low financial risk fast

    consuming goods. Second, for such low risk (or considered low-involvement) products,

    consumers dont get very involved in the purchase and therefore unlikely to engage in

    lengthy information search and processing (Hoyer and Mac Innis, 2000). It can be

    suggested that consumers will rely more on their own knowledge than extrinsic cues.

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    Introducing country-of-origin effect

    As global trade is becoming a fundamental part of the worlds economy, it is

    becoming increasingly important to understand consumers attitudes towards domestic

    and foreign products (Netemeyer et al., 1991). There are a lot of researchers in this area

    who have studied COO effects: investigating how consumers see products sourced from

    certain countries (Roth and Romeo, 1992). The world is often called a global village,

    despite this, studies continue to imply that national stereotypes have a significant

    influence on how products are perceived by consumers.

    Prior literature reflects that COE is a multifaceted phenomenon and various

    moderators can influence its magnitude (Maheswaran, 1994; Chiou, 2003). Studies in

    COO effects go back as far as the 1960s, one of the conceptualizations of COO effects

    was that of Nagashima (1970). He concluded that consumers relate with a given country

    of origin as, the picture, the reputation, and the stereotype that business men and

    consumers attach to products of a specific country. This image is formed by such

    variables as representative products, national characteristics, economic and political back

    ground, history, and traditions. Since then, much literature has been added to the study

    of COE. Samiee (1994) views COE as any influence or bias that consumers may have,

    resulting from a products country of origin. The source of the effect may be wide-ranged;

    some are based onexperiences with a product from a certain country, some from personal

    experiences such as travel, knowledge of a country, political beliefs, ethnocentric

    tendencies, or even the fear of the unknown.

    Knight (1999), comments that Han (1989), Parameswaran and Yaprak (1987)

    perceive country image as reflecting consumers general perceptions about the quality of

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    products made in a particular country and the nature of people from that country.

    Furthermore, according to Han (1988) and Papadopoulos et al. (1990) COO perceptions

    encompass cognitions, highlighting particular product and marketing attributes and

    affect, concerning the countrys consumers.

    COO effects as a product cue

    Consumers make decisions about the quality of products based on a systematic

    process of acquisition, evaluation and integration of product information or cues.

    Products have extrinsic and intrinsic cues (Cordel, 1992); intrinsic cues are tangible or

    physical characteristics, such as design, colour or other graphics and extrinsic cues are

    intangible product characteristics, such as brand name or fame.

    When intrinsic cues are not available or cannot easily be assessed, consumers are

    inclined to rely more on extrinsic cues, this is frequently the situation for low-

    involvement products, since the cost and time of searching for intrinsic cues to help

    consumers in product evaluation is much greater than the benefits. COO has been

    described as an extrinsic cue that is applied by consumers when assessing a products

    quality. As a result COO, as an extrinsic cue, has a strong influence on consumer

    attitudes and can increase the probability of product purchase (Schooler, 1971). COE is

    also recognised as the made in model and has been explained as the favourable or

    unfavourable influence a products country of origin can have on consumers mind-sets

    and decision making. The image created is a general cognitive concept representing a

    mental picture of the qualities of the product.

    Maheswaran (1994) suggests that COO is used in product assessment as a

    stereotyping procedure, consumers expect that a product manufactured in a certain

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    country will have certain characteristics; normally, consumers will assess a product more

    favorably if it has a favorable COO. This stereotyping method affects product assessment

    in three ways. First, COO acts as a hint; consumers have prior perceptions of the general

    quality of products from a particular country, and they use these perceptions to infer the

    other product cues such as quality and therefore the overall product evaluation.

    Second, COO when used with other cues for evaluation can also be an

    independent cue. Third, COO can be used as a heuristic to simplify the product

    evaluation process, even though other available product cues may be more useful (Li and

    Wyer, 1994). This often occurs when there is too much product information, or when

    consumers are unfamiliar with the product.

    Research has proven that COO influences consumers decisions to purchase

    products; consumers from developed countries favour products from developed countries,

    this preference may include products made in the consumers home country instead of

    products originating in less developed countries.Consumers may favour domestic goods

    for many reasons including familiarity, and because of the belief that it helps the

    economy and provide jobs as well as bolstering national pride (Pecotich et al. 2007).

    In contrast, the preferences of consumers from less developed countries were

    towards products from well developed countries so the purchasing preference will also be

    for products from developed countries, (Bruning, 1997). Pecotich et al. (1996) found that

    developed countries such as Japan, Germany and the USA are associated with high

    quality products whereas newly developing nations such as Korea, China and the

    Philippines are associated with poorer quality products. Countries with the lowest

    reputation are those about which consumers know very little such as, for example, the

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    Eastern European countries. Research suggests that the reputation of an unknown country

    may be lower, than that of even a developing nation.

    Country of Origin Image

    As explained above, the effect of COO information on consumer purchase

    behavior has created a large amount of studies. Nagashima (1970) first defined country

    image as the picture, the representation, the stereotype that businessmen and consumers

    attach to products of a specific country. This image is created by such variables as

    representation products, national characteristics, economic and political background,

    history and tradition.

    The impact of COO cues on consumption behavior has been related to producing

    country characteristics. It has been proven that consumers willingness to purchase

    products is related to economic, political, and cultural characteristics of the products

    COO. The perceptions of sourcing countries are impacted by cognition, affect and

    conative orientation towards the countrys people. COO effects have also been connected

    to beliefs about the overall product offerings of a certain country. A consumers image of

    people which they are not familiar with may be formed upon the basis of knowledge

    about that peoples abilities to produce quality products in general and that belief impacts

    the evaluation of specific products from that country. Parameswaran (2002) called these

    components the general country attributes (GCA) and the general product attributes.

    Consumers purchase intentions and behaviour are impacted by COO effects and by

    specific product attributes (SPA).

    According to Parameswarans (2002) theoretical model of country image, the

    dependent variable, consumer purchase intent and behaviour is directly influenced by the

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    specific product attributes (SPA) of a brand. Consumer purchase intent and behaviour are

    also influenced by consumers general perceptions of a products COO (GPA: general

    product attributes) as well as perceptions of the COOs people (GCA general country

    attributes). The influences of GCA and GPA on intention to purchase (IP) are primarily

    through their influences on consumers perception of the attributes of a particular product

    or brand (SPA). The model presented in Figure 1.1 introduces COO images and effects.

    Source: (Parameswaran 2002)

    Papadopoulos (1993) explains that the image of an object results from peoples

    perceptions of it and the phenomena that surround it. Based on the studies conducted in

    eight different countries, Papadopoulos et al. were among the first to incorporate distinct

    country image measures in PCI research (in addition to measures of products simply

    designated as made in X), and the first to attempt to model the relationship between

    country beliefs, product beliefs, familiarity, and product evaluation and willingness to

    buy. After further elaborating on their data and other studies, they proposed that

    consumers perceptions of the country of origin of a product comprise (Papadopoulos et

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    al., 1988,1990, 2000): a cognitive component, which includes consumers beliefs about

    the countrys industrial development and technological advancement; an affective

    component that describes consumers affective response to the countrys people; and a

    conative component, consisting of consumers desired level of interaction with the

    sourcing country. Country image affects product evaluations, its very structure, that is the

    relative importance attached to its cognitive, affective, and conative components, has a

    significant impact on the extent of its influence on product evaluations.

    The role of country image in product evaluation

    According to Hong and Wyer (1989), when consumers are presented with the COO

    cue together with other cues, such as price and brand, the effects of COO in their

    cognitive process can be observed in two ways, the Halo Effect and the Summary

    Construct.

    The Halo Effect can serve as a halo to infer beliefs about attributes that make up the

    attitude towards a product or service, Pecotich et al(2007) explains consumer evaluations

    of products and services are based on their perception of the country (e.g. overall the

    Japanese make good quality products, this is a camera from Japan, therefore it must be

    good quality). Second, it may be used as a means of abstracting previous beliefs about

    attributes of products and services from a particular country into a chunk of information

    called the summary construct, which is in turn used to infer product attitudes (e.g. I

    know, from experience that the Japanese make poor quality wine, this is a wine from

    Japan, therefore I would expect it to be of poor quality).

    The use of COO as a halo to directly infer product beliefs may be based on a

    consumers limited ability to infer quality before purchase. This may occur because

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    actual quality differences are hard to detect, or because consumers lack familiarity with

    the product and/or country of manufacture. The use of COO as a summary construct

    occurs when consumers have greater knowledge about products and service classes from

    a particular country, this knowledge is then generalised only to that specific product

    class. Country image then serves as an indirect channel in affecting product attributes.

    The halo process involves the use of country image which extends across different

    products or services, while the summary construct covers the use of the country/product

    image that is represented by the reputation of the country as a producer of particular

    classes of goods. The second important factor that distinguishes the processing strategies

    of the COO (or brand) cue is the amount of consumer knowledge. In terms of information

    processing this is a selective and analytical use of cues. It is a selective process because

    the more expert and knowledgeable the consumer, the more likely COO will only be of

    importance if it is consistent with past experience of a product from a relevant country. It

    is an analytical decision-making process as it is only of relevance to more knowledgeable

    consumers when actual quality matches past experience. This will be the case for more

    knowledgeable consumers even when differences in quality are difficult to determine.

    It is, therefore, expected that consumers lacking in knowledge will use COO as a

    halo because they are unlikely to be able to judge quality where differences are not

    obviously apparent. These novice consumers do not have extensive knowledge of

    countries, brands, products from a particular countries or general product class

    knowledge from which to form a summary construct about a product they are evaluating.

    They will rely more on the overall image of a country when rating products and services

    along with information contained in extrinsic cues. More knowledgeable consumers, on

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    the other hand are heuristic processors using COO only when it is relevant to a product

    and consistent with a level of detected quality.

    Han (1989) explains COO effects through the halo and summary construct models,

    the study suggests that COO image allows consumers to assume the quality of an

    unfamiliar foreign brand. This is similar to the role of price which assists consumers in

    their evaluation of the quality of a product when other important information is lacking.

    Knight and Calantones (2000) replication of Hans (1989) model in figure 1.2 suggests

    that COO image directly influences product attribute beliefs, which then directly

    influences attitudes towards a product. That is a structural relationship of the shape COO

    image > beliefs > brand attitude. The halo model works with consumers, who are

    unfamiliar with a foreign product, that is, consumers with low product knowledge.

    Figure 1.2

    Source: Knight et al (2000)Halo Model

    PPIM = product and people image measure

    BLF = beliefs measureATT = attitudes measure

    In comparison, Hans (1989) original summary construct model (Figure 1.2)

    suggests that, amoung consumers possessing high knowledge about the product, COO

    image may summarise beliefs about product attributes, directly affecting brand attitude,

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    which results in a structural relationship of the shape beliefs> COO image> brand

    attitude. The summary construct view states that, because short-term memory has limited

    capacity, consumers are inclined to summarise information in a method that makes it

    easier to store and remember in the long-term. In a later situation, consumers who are

    already familiar with a countrys products may use their relevant information as a COO

    cue when facing another product with the same COO. If the product possesses attributes

    similar to the initial product, the consumer may infer its quality by accessing the country

    cue they have previously stored from prior experience.

    Figure 1.3

    Summary Construct ModelSource: Knight et al (2000)PPIM = product and people image measure

    BLF = beliefs measure

    ATT = attitudes measure

    In Figure 1.3, product beliefs refer to consumers beliefs about a products

    intrinsic characteristics such as quality and reliability. Product evaluation, in contrast,

    refers to consumers attitudes of a product and works in terms of a consumers joy of

    ownership and intention to purchase. This figure suggests a simultaneous processing of

    country image and product beliefs regardless of consumers level of familiarity. In

    addition, country image is expected to influence product beliefs and hence to have an

    additional indirect effect on product evaluation.

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    Further to highlighting the simultaneous processing of country image and product

    beliefs, the proposed model takes into account both the halo and summary views. The

    direct effect of country image reflects its use as a summary construct, while the indirect

    effect, through product beliefs, represents consumers use of country image as a halo.

    Figure 1.4Country Image and Product Beliefs

    Source: Laroche et al (2003)

    Consumer ethnocentrism

    COO is normally used to rate the quality of products. Yet, sometimes consumers are

    interested in the COO of the product because they have a desire to purchase domestically

    produced products. Consumer ethnocentrism as defined by Shrimp et al. (1987) it

    represents the beliefs held by a countries consumers about the appropriateness, indeed

    morality, of purchasing foreign made products. The basic idea of the ethnocentrism

    principle is that the purchase of foreign goods will damage the home.

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    This damage may take different structures, but focuses mainly on the ethnocentric

    consumer believing the purchase of foreign products as causing a negative economic

    impact and performing an unpatriotic act. Okechuku (1994) displayed that consumers in

    developed countries are inclined to favor domestically made goods primarily, after which

    goods from another developed nation are purchased, and then products from less

    developed nations. Therefore, if consumer ethnocentrism is influential, consumers take

    COO into consideration when assessing products.

    Other Extrinsic Cues

    Bilkey and Nes (1982) suggests if only COO is provided as an informational cue,

    the outcome maybe positively biased for investigating COE. Prior research has found that

    if extra cues are available, the importance of COO on product assessment decreases. If

    information about the product is not available to consumers they may depend on the

    brand name to assume its value; therefore, brand loyalty is evidence of the importance of

    a trusted brand name in consumers evaluation of products (Ettenson and Gaeth, 1991).

    Studies have proven that a well known and respected brand can reduce the bad

    consequences of a weak COO image in product assessment (Cordell, 1993). The same

    way, if price is more important than image, COO is less influential than price in

    consumers purchasing choices.

    Consumers apply COO as an extrinsic cue to assess the value of goods. It may

    indirectly influence the understanding of different available product cues and therefore

    the whole product assessment; in different situations, it may be the only cue used to

    assess a good, yet there could be other cues presented. If consumers are unfamiliar with a

    good, consumers use the halo effect to assess the good, if the consumer is familiar with

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    the good, the construct summary process is used. The halo effect and the summary

    construct differ in the sequence the consumers cognitive procedure takes. Also, if there

    is not enough available product knowledge or time is limited, consumers will use an

    alternative approach and use the stereotypical ideas and use a nations typical image to

    evaluate a good.

    Consumer Knowledge

    Dimensions of consumer knowledge

    Various moderators can influence country of origin effects and its magnitude. One of

    these is consumer knowledge (Chiou, 2003). As Phau et al (2006) suggests consumer

    knowledge certainly plays a role in the acquisition and evaluation of extrinsic cues. Alba

    et al. (1987) point out, consumer knowledge should be regarded as a multidimensional

    construct, where different types of product-related experience lead to different

    dimensions of knowledge, and these different dimensions of knowledge have different

    effects on product evaluations and choice behaviour, depending on the specific situation

    and task at hand.

    Several important distinctions must be made between different dimensions of

    consumer knowledge (Schafer, 1995). The first distinction is between product-related

    experience and product knowledge. Brucks (1985), states that product knowledge is

    based on memories or known knowledge from consumers. Lin and Zhen (2005) assert

    that product knowledge depends on consumers awareness or understanding about the

    product, or consumers confidence in it. A consumers idea of a product may also contain

    country of origin information. These considerations mean that product experience will

    only exert an indirect influence on consumer behaviour, including the use or otherwise of

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    the country of origin cue, and that direct measures of product knowledge, rather than

    experience, are preferable. A second distinction must be made between subjective and

    objective product knowledge, based on a definition of Brucks (1985) about product

    knowledge, it can be divided into three major categories: subject knowledge or perceived

    knowledge, objective knowledge and experience-based knowledge.

    Wang (2001) summarises much literature and reports that the index used to measure

    product knowledge by scholars include: the consumers perception of how much he or

    she knows, the amount, type and organization of what the consumer has stored in his/her

    memory and the amount of purchasing and usage experience. Schaefer (1995) suggests

    measures of subjective knowledge can indicate self-confidence levels, and high

    subjective knowledge may increase an individuals confidence in relying on information

    stored in the memory, such as country of origin. High levels of objective product

    knowledge, on the other hand, mean both more information stored in the memory and a

    greater ability to learn and use new information about product attributes.

    Third, it is necessary to differentiate general product class knowledge and specific

    brand familiarity. As general product class knowledge may allow the use of any extrinsic

    product information cues, direct experience with a particular brand is likely to encourage

    the use of brand name especially as a decisive factor and therefore may decrease the use

    of any other cues.

    A final differentiation must be made between product class knowledge and country

    knowledge. Although these may to some extent overlap they are evidently not identical.

    A measure that taps product class knowledge as it relates to countries of origin, or

    country knowledge relating to products, may be particularly useful when investigating the

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    impact of consumer knowledge on country of origin effects.

    Brand Familiarity

    Brand familiarity has been subject to much research (Lange et al. 2003). Brand

    familiarity is defined as the number of brand-related direct or indirect experiences that

    have been accrued by the consumer. Brand experiences such as exposure to various

    media advertisements for the brand, exposure to the brand in a store, and purchase or

    usage of the brand increase brand familiarity and are an important internal source of

    information (Park et al. 2005).

    Brand familiarity is one dimension of consumer knowledge that is hypothesised to

    have an influence on country of origin effects. This is due to the fact that there is a

    distinction between general product class knowledge and specific brand familiarity.

    General product class knowledge relates to knowledge about the features or attributes of

    a product, regardless of whether the consumer uses these features to make a decision.

    Specific brand familiarity refers to the consumer knowledge regarding the brand that

    exists in a product category. This knowledge includes how brands compare on different

    attributes and which brands own unique attributes (Baker et al., 2002).

    According to Baker et al., (2002) among other extrinsic cues, brand name is the

    most common indicator for consumers to assess products. When consumers are familiar

    with a particular brand in the product category, there is a less tendency that they will

    search for more information. Hence, it may be assumed that consumers who are

    accustomed to a particular brand will not use country of origin, or attribute information,

    to any large extent in evaluating that brand.

    Knowledge that consumers obtain through direct personal experience will be

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    perceived to be more trustworthy than information from other communications. This

    results in more strongly held beliefs (Swaminathan et al., 2001). Direct experience with a

    particular brand tends to dilute country of origin effects on consumers because such

    experience reinforces consumers reliance on brand attributes.

    Schafer (1995) suggests where consumers are confronted with a familiar brand

    name they tend to reach evaluations quickly and directly without much effort in external

    searching, because they are familiar with the brands attributes (Brucks, 1985). In such

    situations no further search for and processing of information is necessary. Thus it seems

    reasonable to assume that consumers who are familiar with a particular brand will not

    rely on country of origin, or attribute information, to any large extent, in evaluating that

    brand.

    Price

    Price represents not only the monetary cost of an item but also connotes a quality

    level for both the brand and the product and, by inference, the satisfaction level to be

    expected (Assael, 1995). Generally price is an important cue to quality when there are

    few other cues available, when the product cannot be evaluated before purchase and

    when there is some degree of risk of making a wrong choice. A high price may signal that

    the product is of superior quality. Therefore, for some specific goods, customers might

    even reject cheaper items just to avoid the risk of dissatisfaction. (Kotler, 2003).

    Price is not important in reducing perceived risk and that it may not be an

    effective cue for quality. Chao (1993) lent more information to this argument by linking

    it more closely to COO information. He pointed out that perceptions of extrinsic quality

    based on cues such as price may be different according to both the product and the COO.

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    He argued for a direct link between confidence in a countrys ability to produce high-

    quality products and the products themselves. Thus if a country is perceived to be

    incapable of producing high quality products, this overrides other perceptions based on

    price. They may perceive that the products produced in the country will generally be of

    low-quality. Consequently, consumers may be less likely to use price as an indicator of

    quality.

    Objective product class knowledge

    If a consumer is familiar with a particular brand in a product category, the

    consumers level of objective product class knowledge may not have any great impact on

    the use of the country of origin cue. However, where the particular brand is not familiar,

    objective product class knowledge is likely to influence a consumers evaluation and

    choice processes. Where attribute information is readily available and/or where the

    situation warrants the search for such information, consumers with high levels of

    objective product knowledge can be expected to base evaluations on intrinsic attributes

    rather than extrinsic cues such as country of origin (Maheswaran, 1994).

    Under a situation when both intrinsic and extrinsic cues of product attribute

    information are available and the search for such information is warranted, consumers

    with higher levels of objective product knowledge may base evaluations on intrinsic

    attributes rather than extrinsic cues (such as country of origin). This is because highly

    objective consumers value the cues that provide diagnostic utility. On the other hand, in a

    case that product attribute information is not available in choice situations and the search

    for it is not always warranted, consumers may rely more on extrinsic cues for evaluation

    of unfamiliar brands. Therefore, it can be expected that such informational extrinsic cues

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    Country of Origin Effects and ConsumerKnowledge

    as price, value or country of origin will play a role in product evaluation (Phau, 2006). In

    other words, country of origin perception is not completely independent of products

    (Jaffe and Nebenzahl, 2001).

    Subjective product class knowledge

    According to Mattilda and Wirtz (2002), subjective product knowledge increases

    consumers reliance on previously stroed information. Increased levels of subjective

    knowledge lead to a greater on reliance on a consumers own evaluation skills. While

    objective product class knowledge is likely to influence information processing

    strategies, subjective product class knowledge is more likely to affect consumers

    confidence in using information stored in the memory. As such information is likely to

    relate partly to COO, consumers with high levels of subjective product knowledge can be

    expected to be more confident in using the country of origin cue. Thus consumers with

    higher levels of subjective product knowledge are likely to rely more on country of origin

    than consumers with low subjective product knowledge.

    The influence of product knowledge on information search behaviour

    To understand consumer behavior, consumer knowledge is an important factor.

    This is because, before the consumer performs actual purchasing behavior, they most

    likely experience two procedures: The first is Information search: this means when the

    consumer faces many consuming relevant questions, he/she requires relevant information

    to assist with his/her consuming decision. This type of search of appropriate information

    procedure is called information search (Solomon, 1997). The second is Information

    processing: includes consumer self selects to expose, notice, recognize, agree, accept, or

    retain. No matter how much knowledge the consumer has, it all affects his/her procedures

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    Country of Origin Effects and ConsumerKnowledge

    concerning information search and information processing (Brucks, 1985).

    Much evidence shows that product knowledge has an impact on information

    processing to the consumer. Lin and Chen (2006) suggest that when a consumer selects a

    product, they usually rely on their product knowledge to evaluate it, and their product

    knowledge would also affect their information search procedure, attitude, and

    information search quantity. In addition, their level of product knowledge would

    determine consumer purchase decisions, and indirectly affect their buying intentions.

    Brands country-of-origin image and brand equity

    Brand equity refers to the value of well known brand name. Consumers may be

    willing to pay more for the same level of quality due to the attractiveness of a brand name

    attached to a product. In marketing literature, brand equity is referred to as the intangible

    brand properties. Brand equity arose from customer brand-name awareness, brand

    loyalty, perceived brand quality and favorable brand symbolisms and associations that

    provide a platform for a competitive advantage and future earning streams (Bello and

    Holbrook, 1995).

    There are many studies to document country-of-origin perspectives. From these

    studies, marketers and consumer behavior researchers generally accept that a products or

    brands country-of-origin is an important influencing factor in consumer decision-

    making. Most studies suggest that country-of origin information which is indicated by the

    Made in label has many influences in consumer decision-making. It can act as the main

    attribute in consumer product evaluation, stimulates consumers interest in the product,

    affect behavioral intentions through social norms and influences buyer behavior through

    affective processes as in the case of consumers patriotic feelings for their own country.

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    Country of Origin Effects and ConsumerKnowledge

    The overall evaluation of products is influenced by country stereotyping, that is, the

    image that consumers have about a certain country will influence their perceptions of

    products from that country. Since consumers perception of a particular country-of-origin

    influence their evaluation of products from that country, this will influence their

    preference, purchase intention and choice of a particular brand. Obviously, this has

    implications on the brands equity (Piron, 2000).

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    Summary of Findings from Country of Origin Effects and Consumer Knowledge

    Studies

    Reference Findings

    Country-of

    Origin Effects

    Schooler, 1971COO, as an extrinsic cue, has a strong influence on consumer

    attitudes and can increase the probability of product purchase

    Hong and Wyer,1989

    Consumer lacking in product knowledge use COO as a halo

    because they are unlikely to be able to judge quality where

    differences are not obviously apparent. Knowledgeable

    consumers, use COO only when it is relevant to a product and

    consistent with a level of detected quality

    Ettenson and

    Gaeth, 1991

    If extra cues are available, the importance of COO on product

    assessment decreases. If information about the product is not

    available to consumers they may depend on the brand name

    to assume its value.

    Cordell, 1992

    Consumers make decisions about the quality of products

    based on a systematic process of acquisition, evaluation and

    integration of product information or cues

    Cordell, 1993A strong brand can reduce the bad consequences of a weak

    COO image in product assessment

    Papadopoulos,

    1993

    Country image affects product evaluations, its very structure,

    that is the relative importance attached to its cognitive,

    affective, and conative components, has a significant impact

    on the extent of its influence on product evaluations.

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    Maheswaran,

    1994

    COO, perceptions are used to infer the overall quality of a

    product, when used with other cues for evaluation can also be

    an independent cue, can be used as a heuristic to simplify the

    product evaluation process

    Okechuku, 1994If consumer ethnocentrism is influential, consumers take

    COO into consideration when assessing products

    Bruning, 1997Consumers from developed and less developed countries

    favour products from developed countries

    Knight and

    Calantone, 2000

    COO image allows consumers to assume the quality of an

    unfamiliar foreign brand, it directly influences product

    attribute beliefs, which then directly influences attitudes

    towards a product

    Parameswaran,2002

    Consumers willingness to purchase products is related to

    economic, political, and cultural characteristics of the

    products COO. The perceptions of COO are impacted by

    cognition, affect and conative orientation towards the

    countrys people. Consumer purchase intent and behaviour

    are also influenced by consumers general perceptions of a

    products COO and its people.

    Pecotich-andWard, 2007

    Consumer evaluations of products and services are based on

    their perception of the country, the Halo effect may be used

    as a means of abstracting previous beliefs about attributes ofproducts and services from a particular country into a chunk

    of information called the summary construct, which is in turn

    used to infer product attitudes

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    Country of Origin Effects and ConsumerKnowledge

    Consumer

    Knowledge

    Rao and Monroe,

    1988

    The level of product knowledge will also affect information

    use since increased familiarity results in better developed

    knowledge structures or schema about the product

    Schaefer, 1995

    High subjective knowledge may increase an individuals

    confidence in relying on information stored in the memory,

    such as country of origin. High levels of objective product

    knowledge mean a greater ability to learn and use new

    information about product attributes. Direct experience with a

    particular brand is likely to encourage the use of brand name

    especially as a decisive factor and therefore may decrease the

    use of any other cues.

    Piron, 2000Consumers perception of a particular COO influence their

    evaluation of products from that country, this will influence

    their preference, purchase intention and choice of a particular

    brand.

    Cordell, 1997 Consumer knowledge effects the acquisition and evaluationof extrinsic cues

    Jaffe-and

    Nebenzahl, 2001

    Informational extrinsic cues as price, value or country of

    origin are important in product evaluation so COO

    perceptions are not completely independent of products

    Swaminathan, Foxand Reddy, 2001

    Direct experience with a particular brand tends to dilutecountry of origin effects on consumers because such

    experience reinforces consumers reliance on brand attributes.

    Baker, Hunt and

    Scribner, 2002

    Consumers who are accustomed to a particular brand will not

    use country of origin, or attribute information, to any large

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    Country of Origin Effects and ConsumerKnowledge

    extent in evaluating that brand.

    Mattilda-andWirtz, 2002

    Consumers with higher levels of subjective product

    knowledge are likely to rely more on country of origin than

    consumers with low subjective product knowledge.

    Lin and Zhen,

    2005

    Product experience will only exert an indirect influence on

    consumer behaviour, including the use or otherwise of the

    country of origin cue, and that direct measures of product

    knowledge, rather than experience, are preferable.

    Lin and Chen,

    2006

    Consumers rely on their product knowledge to evaluate

    products, product knowledge affects information search

    procedures, attitudes, and information search quantities. The

    level of product knowledge can determine consumer purchase

    decisions, and indirectly affect their buying intentions.

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    Country of Origin Effects and ConsumerKnowledge

    Research Objectives and Hypotheses

    The study is designed to investigate the relationship between different dimensions

    of consumer knowledge and consumers use of COE cues in the evaluation of beer when

    purchasing. In contrast to COE on consumer behaviour, which is considered one of the

    most widely researched issues in international marketing (Peterson and Jolibert, 1995),

    this study uses better measures of different dimensions of consumer knowledge in one

    research which enables the author to better compare the individual impacts of COE.

    There have been limited studies on COE on consumers when purchasing low-

    involvement products, therefore it is not clearly defined how COE influences consumer

    intentions and choices when purchasing fast consumer goods. Its not clear if the COE on

    low-involvement products is similar to that of high involvement products. Therefore this

    study will add to the marketing literature by evaluating COE on fast consumed low-

    involvement products: Beer sales in Taiwan.

    This study is different from previous studies as it focuses mainly on extrinsic

    product information cues and it investigates the COE on beer sales as opposed to durable

    products. As the author found little research on COE completed in this area, the author

    believes there is a necessity to study the connection between different dimensions of

    consumer knowledge and a consumers use of country of origin. Prior country of origin

    studies, have mainly used durable and expensive products such as cars and consumer

    electronic products.

    Normally consumers dont involve themselves in depth when purchasing beer,

    therefore they are unlikely to engage in a lengthy information search and processing

    (Kotler and Armstrong, 2006). In addition, product information is very limited at the

    point of purchase which is where choices regarding these products are normally made. As

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    Country of Origin Effects and ConsumerKnowledge

    a result, its normal for consumers to depend only on the available extrinsic cues, such as

    a products country of origin or their previous experience of the brand.

    Consumer knowledge and awareness is undoubtedly a major factor in the

    evaluation and assessment of extrinsic cues. For example, Cordell (1997) has examined

    the dimensions of consumer knowledge and each dimensions consequences on a

    consumers use of extrinsic cues. In the study based on a camera, various cues such as the

    products brand name or country of origin (developed versus developing), these are all

    significant in a consumers assessment of a product.

    Brand Familiarity

    Consumers dependence on COO when evaluating a product increases if the

    brand is unfamiliar to the consumer but if the brand is familiar to the consumer they will

    be more likely to depend on the familiar qualities of the products brand as opposed to the

    COO.

    H1: When making a purchasing decision, if a consumers only available

    information cues are a products COO and brand, they will depend more on COO

    than brand if the brand is unknown to the consumer.

    If a consumer has had direct experience with a certain brand, the consumers

    dependence on COO will decrease and a consumers knowledge of the brands attributes

    will have a greater influence on their purchasing decision.

    H2: If a consumer has had direct experience with a certain brand, the consumers

    reliance on COO will decrease further as opposed to a customer who is just

    familiar with the brand.

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    Country of Origin Effects and ConsumerKnowledge

    Objective product-country knowledge

    Objective knowledge refers to what a consumer actually knows about a product.

    In the situation when a consumer is purchasing low involvement products, a consumer

    will not undertake an extensive attribute information search. As there is not normally

    much attribute information about the product available at the point of sale a consumer

    will increase their dependence on objective product-country knowledge as a purchasing

    cue.

    H3: Consumers with higher levels of objective product-country knowledge will be

    more likely to depend on COO when evaluating low involvement products than

    consumers with lower levels of product-country knowledge.

    Subjective product class knowledge

    Subjective product knowledge refers to how knowledgeable a consumer thinks

    they are about a product, this self-confidence can affect a consumers use of a products

    extrinsic cues. So consumers with high levels of subjective product knowledge may be

    more likely to depend on COO information cues in a products evaluation. High levels of

    subjective product knowledge may also increase a consumers self-confidence and their

    dependence on the known attributes of a familiar brand. Therefore, increased reliance on

    COO is more likely to occur where the brand is unfamiliar.

    H4: Consumers with higher levels of subjective product class knowledge will be

    more likely to depend on COO when evaluating products, especially those with an

    unknown brand, than consumers with lower levels of subjective product

    knowledge.

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    Country of Origin Effects and ConsumerKnowledge

    Methodology

    The questionnaire was designed replicating many items from Schaefers (1997)

    study. Some changes were incorporated. The countries of origin used Australia,

    Germany, The Netherlands, United Kingdom, China, Japan, United States, Philippines

    and Mexico. These countries were chosen as it reflects the current market of the beer

    industry.

    The three product attributes chosen were all extrinsic cues: brand, value and COO. This is

    because consumers rely more on extrinsic cues in evaluating low-involvement products,

    since the cost of searching for intrinsic cues often exceeds the relative benefits (Cordel,

    1992). Two brands were included for each country. The nine familiar brands chosen

    were Heineken, Budweiser, Becks, Carling, Corona, Fosters, Qing Tao, Kirin and San

    Miguel as these were the most representative in terms of availability and popularity in

    Taiwan with respect to each of the nine countries. The nine unfamiliar brand names were

    invented by the author.

    Data collection

    To ensure responses from the general population, the sources of our sample were

    students of higher education institutions, and cafes, convenience stores and supermarket

    customers from all classes of life across Taiwan. Questionnaires were distributed to

    students in three universities; some students completed and returned the questionnaire

    after immediately completing it, others mailed and e-mailed in their responses. The cafe

    and supermarket customers were approached at random by the researcher and completed

    the questionnaire on the spot. A total of 100 questionnaires were returned; 82 usable

    questionnaires were included in the data analysis. Questionnaires were chosen because

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    Country of Origin Effects and ConsumerKnowledge

    they are convenient and respondents are easily found.

    In the questionnaire respondents were evaluated through an easy assessment

    where the only available product information was the products country of origin and

    brand name. Respondents were asked to rate products on the basis of the brand name, and

    country of origin and then only country of origin. Respondents were asked to rate the

    dimensions Quality, Image and Value for money on a five point scale.

    The author analysed and correlated the ratings for the country and brand results of

    the questionnaires. The differences in correlation signified how much the respondents

    depended on COO when assessing each product for brand and COO. Brand familiarity

    was assessed by using one famous brand and one invented brand by the author for each

    COO. Only the correlations from the respondents who were familiar with the brand were

    analysed. To establish brand experience, respondents were asked if they had tasted any or

    all of the real brands used in the questionnaire. Subjective product class knowledge was

    collected by asking respondents to choose a response from a choice of four levels which

    best describes their knowledge of the various types and brands of beer available in

    Taiwan. To establish objective product country knowledge, respondents were asked to

    signify the beer brands which they were familiar with. The following question asked

    respondents to write the country of origin of the brands which they were familiar with.

    The list included eighteen brands, the nine authentic brands and the nine brands created

    by the author. This method was used to determine objective product-country knowledge,

    respondents could then be organised into three different levels of knowledge, high,

    medium and low. The respondents right amount of answers allowed the author to grade

    the respondents level of knowledge.

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    Country of Origin Effects and ConsumerKnowledge

    The sample was divided into different levels of sub groups, respondents were

    divided into groups by their different levels of knowledge. This allowed the author to

    calculate if the dimensions of consumer knowledge affect the use of COO in beer

    assessments. The correlations of each group were calculated separately. Tests could then

    establish if the different groups signified higher or lower correlations. This proved if

    country of origin effects exists.

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    Country of Origin Effects and ConsumerKnowledge

    Heineken0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Silver Dutch0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    United Kingdom0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Carling

    0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Red Lion0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    China0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    TsingTao0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Jiao Pu0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Japan0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Kirin0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Nagasako0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    United States0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Budweiser0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Jack State0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Philippines0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    San Miguel0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Majati0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Mexico0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Corona0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Hacienda0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Australia0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Fosters0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Kuala Label0.01 0.01 0.01

    0.01 0.01 0.01 0.01 0.01 0.01

    Evidence for country of origin effects

    As explained above, evidence for respondents use of the country of origin cue in product

    evaluations was sought by correlating ratings on the basis of country of origin alone and

    on the basis of brand name and country of origin. The results of this analysis are shown in

    Table II.

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    Table 2

    Evidence for country of origin effects: Spearmans rank correlation coefficient, r,

    between brand and country ratings

    Value Quality Image

    Germany

    Becks (95) 0.772* (94) 0.555* (93) 0.647*

    Totenbrau (74) 0.167 (73) 0.051 (73) 0.048

    The Netherlands 0.01

    Heineken 0.01 0.01 0.01

    Silver Dutch 0.01 0.01 0.01

    United Kingdom

    Carling 0.01 0.01 0.01

    Red Lion 0.01 0.01 0.01

    China

    TsingTao 0.01 0.01 0.01

    Jiao Pu 0.01 0.01 0.01

    Japan

    Kirin 0.01 0.01 0.01

    Nagasako 0.01 0.01 0.01

    United States

    Budweiser 0.01 0.01 0.01

    Jack State 0.01 0.01 0.01

    Philippines

    San Miguel 0.01 0.01 0.01

    Majati 0.01 0.01 0.01

    Mexico

    Corona 0.01 0.01 0.01

    Hacienda 0.01 0.01 0.01

    Australia

    Fosters 0.01 0.01 0.01

    Kuala Label 0.01 0.01 0.01

    Personal brand experience and country of origin effects

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    Country of Origin Effects and ConsumerKnowledge

    In H3 it was proposed that in the situation when a consumer is purchasing low

    involvement products, a consumer will not undertake an extensive attribute information

    search. As there is not normally much attribute information about the product available at

    the point of sale a consumer will increase their dependence on objective product-country

    knowledge as a purchasing cue. In Table III the correlations of country ratings and

    ratings of familiar brands are shown separately for respondents with and without personal

    experience of the brand in question.

    Table III.

    Brand experience: correlations between brand and country ratings by respondents

    with and without brand experience

    Brand

    Experience

    No Brand

    Experience

    Value Quality Image Value Quality Image

    Germany

    Becks 0.01 0.01 0.01 0.01 0.01 0.01

    The Netherlands

    Heineken 0.01 0.01 0.01 0.01 0.01 0.01

    United Kingdom

    Carling 0.01 0.01 0.01 0.01 0.01 0.01

    China

    TsingTao 0.01 0.01 0.01 0.01 0.01 0.01

    Japan

    Kirin 0.01 0.01 0.01 0.01 0.01 0.01

    United States

    Budweiser 0.01 0.01 0.01 0.01 0.01 0.01

    Philippines

    San Miguel 0.01 0.01 0.01 0.01 0.01 0.01

    Mexico

    Corona 0.01 0.01 0.01 0.01 0.01 0.01

    Australia

    Fosters 0.01 0.01 0.01 0.01 0.01 0.01

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    Objective product-country knowledge

    H3 suggest that consumers with higher levels of objective product-country

    knowledge will be more likely to depend on COO when evaluating low involvement

    products than consumers with lower levels of product-country knowledge. Higher levels

    of product knowledge should result in larger correlations between country and brand

    ratings. Table IV presents thecorrelations between country and brand ratings, these are

    presented separately for respondents with different levels of objective product-country

    knowledge.

    Table IV

    Objective product country knowledge and country of origin effects: correlations

    between brand and country ratings by objective product-country knowledge

    Low Knowledge Medium Knowledge High Knowledge

    Value Quality Image Value Quality Image Value Quality Image

    Germany

    Becks 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Totenbrau 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    The Netherlands

    Heineken 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Silver Dutch 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    United

    Kingdom

    Carling 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Red Lion 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    China

    TsingTao 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Jiao Pu 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Japan

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    Country of Origin Effects and ConsumerKnowledge

    Kirin 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Nagasako 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    United States

    Budweiser 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Jack State 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Philippines

    San Miguel 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Majati 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Mexico

    Corona 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Hacienda 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Australia

    Fosters 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Kuala Label 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

    Subjective product class knowledge

    High levels of subjective product knowledge may also increase a consumers self-

    confidence and their dependence on the known attributes of a familiar brand. Therefore,

    increased reliance on COO is more likely to occur where the brand is unfamiliar. H4

    states consumers with higher levels of subjective product class knowledge will be more

    likely to depend on COO when evaluating products, especially those with an unknown

    brand, than consumers with lower levels of subjective product knowledge. Table V shows

    the correlations between country and brand ratings, depending on respondents subjective

    product knowledge.

    Table V.

    Subjective product knowledge and country of origin effects: correlations between brand

    and country ratings by subjective product category knowledge.

    Low

    Knowledge

    High

    Knowledge

    Value Quality Image Value Quality Image

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    Country of Origin Effects and ConsumerKnowledge

    Germany

    Becks 0.01 0.01 0.01 0.01 0.01 0.01

    Totenbrau 0.01 0.01 0.01 0.01 0.01 0.01

    The

    Netherlands

    Heineken 0.01 0.01 0.01 0.01 0.01 0.01

    Silver Dutch 0.01 0.01 0.01 0.01 0.01 0.01

    United

    Kingdom

    Carling 0.01 0.01 0.01 0.01 0.01 0.01

    Red Lion 0.01 0.01 0.01 0.01 0.01 0.01

    China

    TsingTao 0.01 0.01 0.01 0.01 0.01 0.01

    Jiao Pu 0.01 0.01 0.01 0.01 0.01 0.01

    Japan

    Kirin 0.01 0.01 0.01 0.01 0.01 0.01

    Nagasako 0.01 0.01 0.01 0.01 0.01 0.01

    United States

    Budweiser 0.01 0.01 0.01 0.01 0.01 0.01

    Jack State 0.01 0.01 0.01 0.01 0.01 0.01

    Philippines

    San Miguel 0.01 0.01 0.01 0.01 0.01 0.01

    Majati 0.01 0.01 0.01 0.01 0.01 0.01

    Mexico

    Corona 0.01 0.01 0.01 0.01 0.01 0.01Hacienda 0.01 0.01 0.01 0.01 0.01 0.01

    Australia

    Fosters 0.01 0.01 0.01 0.01 0.01 0.01

    Kuala Label 0.01 0.01 0.01 0.01 0.01 0.01

    References

    42

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    Country of Origin Effects and ConsumerKnowledge

    Ahmed, Z.U., Johnson, J.P., Xia, Y., Chen, K.F., Han, S.T. and Lim, C.B. (2002), Does

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    Chiou, J.-S. (2003), The impact of country of origin on pretrial and post trial product

    evaluations: the moderating effect of consumer expertise, Psychology and

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    Jaffe, E.D. and Nebenzahl, I.D. (2001), National Image and Competitive Advantage:

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    Press, Copenhagen.

    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

    No.2, 2000, pp.127-145

    Kotler, P. (2003), Marketing Management, 11th ed., Prentice-Hall, Upper Saddle River,

    NJ.

    Kotler, P. and Armstrong, G., Principles of Marketing, 5th ed., Prentice-Hall

    International, London, 2006

    Kaynak, E., Kucukemiroglu, O. and Hyder, A.S. (2000), Consumers country-of-origin

    perceptions of imported products in a homogenous less-developed country, European

    Journal of Marketing, Vol. 34 Nos 9/10, pp. 1221-41

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    Lange, F. and Dahlen, M. (2003) Lets be strange: brand familiarity and ad-brand in-

    congruency, Journal of Product & Brand Management, VOL. 12 No.7, pp. 449-461

    Laroche, M., Papadopoulos, N., Mourali, N. (2003), The influence of country image

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    search process, International Journal of Service Inductry Management, Vol.13 No.3,

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    Miyazaki, A.D., Grewal, D. and Goodstein, R.C. (2005), The effect of multiple extrinsic

    cues on quality perceptions: a matter of consistency, Journal of Consumer Research,

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    Vol. 32 No. 1, p. 146.

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    Parameswaren, R and Pisharodi, R.M. (1994), Assimilation effects in country image

    research, International Marketing Review, Vol.19 No. 3, 2002, pp 259-278

    Park, J. and Stoel, L. (2005), Effect of brand familiarity, experience and information on

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    Vol. 33 No.2, pp. 148-160.

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    Peterson, R.A. and Jolibert, A.J. (1995), A meta-analysis of country-of-origin effects,

    Journal of International Business Studies, Vol. 26 No. 4, pp. 883-96.

    Pecotich, A. and Ward, S. (2007), Global branding, country of origin and expertise An

    experimental evaluation International Marketing Review Vol. 24 No. 3, 2007 pp.

    271-296

    Rao, A.R. and Monroe, K.B. (1988), The moderating effect of prior knowledge on cue

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    introduction on choice, Journal of Marketing, Vol. 65 No. 10, pp. 1-15.

    Samiee, S. (1994), Customer evaluation of products in global markets, Journal of

    International Business Studies, Vo1. 25 No. 3, pp. 579-604.

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    Schaefer, A. (1995), Consumer knowledge and country of origin effects, European

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    280-9

    47

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    Research Questions

    How much do you know about the various types and brands of beer available

    in Taiwan?

    I know a lot Average

    I know very little I know nothing

    Please circle the brands on the following list that you have previously tasted?

    Heineken

    Budweiser

    Becks

    Kirin

    San Miguel

    Carling

    TsingTao

    Corona

    Fosters

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    Country of Origin Effects and ConsumerKnowledge

    Please circle the brand names on the list which you are familiar with

    Heineken

    Budweiser

    Kirin

    Jack State

    Carling

    Totenbrau

    Corona

    Fosters

    Red Lion

    Hacienda

    Nagasako

    Silver Dutch

    Majati

    Kuala Label

    Qing Tao

    Becks

    Jiao Pu

    San Miguel

    Please write the country of origin of the brands which you are familiar with

    Heineken

    Budweiser

    Kirin

    Jack State

    Carling

    Totenbrau

    Corona

    Fosters

    Red Lion

    Hacienda

    Nagasako

    Silver Dutch

    Majati

    Kuala Label

    Qing Tao

    Becks

    Jiao Pu

    San Miguel

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    Country of Origin Effects and ConsumerKnowledge

    In the following list there are the brand names and country of origin of 9

    different beers. Please give your rating for each beer, regardless of whether you

    are familiar with it or not. Therefore your answer can but need not be based on

    you own experience with the lager in question.

    Becks

    Product of Germany

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 very un-

    stylish

    c) Do you think the beer is good value

    for money?

    Very good 5 4 3 2 1 very bad

    San Miguel

    Product of the Philippines

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 very un-

    stylish

    c) Do you think the beer is good value

    for money?

    Very good 5 4 3 2 1 very bad

    Heineken

    Product of the Netherlands

    a) Give your rating on the quality ofthis beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 very un-stylish

    c) Do you think the beer is good valuefor money?

    Very good 5 4 3 2 1 very bad

    Carling

    Product of the United Kingdom

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

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    Very stylish 5 4 3 2 1 very un-

    stylish

    c) Do you think the beer is good value

    for money?

    Very good 5 4 3 2 1 very bad

    Corona

    Product of Mexico

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 un-stylish

    c) Do you think the beer is good valuefor money?

    Very good 5 4 3 2 1 very bad

    Kirin

    Product of Japan

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 un-stylish

    c) Do you think the beer is good value

    for money?

    Very good 5 4 3 2 1 very bad

    Budweiser

    Product of the USA

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 un-stylish

    c) Do you think the beer is good valuefor money?

    Very good 5 4 3 2 1 very bad

    Fosters

    Product of Australia

    a) Give your rating on the quality of

    this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 un-stylish

    c) Do you think the beer is good value

    for money?

    Very good 5 4 3 2 1 very bad

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    Country of Origin Effects and ConsumerKnowledge

    TsingtaoProduct of China

    a) Give your rating on the quality of this beer

    Very good 5 4 3 2 1 very bad

    b) What is your image of this beer

    Very stylish 5 4 3 2 1 un-stylish

    c) Do you think the beer is good value for money?

    Very good 5 4 3 2 1 very bad

    Please rate the quality of beer produced in the below countries

    Germany Very good 5 4 3 2 1 Very bad

    The Netherlands Very good 5 4 3 2 1 Very bad

    United Kingdom Very good 5 4 3 2 1 Very bad

    China Very good 5 4 3 2 1 Very bad

    Japan Very good 5 4 3 2 1 Very bad

    United States Very good 5 4 3 2 1 Very bad

    Philippines Very good 5 4 3 2 1 Very bad

    Mexico Very good 5 4 3 2 1 Very bad

    Australia Very good 5 4 3 2 1 Very bad

    52

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    Country of Origin Effects and ConsumerKnowledge

    Please rate the image of beer produced in the below countries

    Germany Very trendy 5 4 3 2 1 Not trendy

    The Netherlands Very trendy 5 4 3 2 1 Not trendy

    United Kingdom Very trendy 5 4 3 2 1 Not trendy

    China Very trendy 5 4 3 2 1 Not trendy

    Japan Very trendy 5 4 3 2 1 Not trendy

    United States Very trendy 5 4 3 2 1 Not trendy

    Philippines Very trendy 5 4 3 2 1 Not trendy

    Mexico Very trendy 5 4 3 2 1 Not trendy

    Australia Very trendy 5 4 3 2 1 Not trendy

    Please rate the value for money of the beers produced in the below countries

    Germany Good value 5 4 3 2 1 Bad value

    The Netherlands Good value 5 4 3 2 1 Bad value

    United Kingdom Good value 5 4 3 2 1 Bad value

    China Good value 5 4 3 2 1 Bad value

    Japan Good value 5 4 3 2 1 Bad value

    United States Good value 5 4 3 2 1 Bad value

    Philippines Good value 5 4 3 2 1 Bad value

    Mexico Good value 5 4 3 2 1 Bad value

    Australia Good value 5 4 3 2 1 Bad value

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    Country of Origin Effects and ConsumerKnowledge

    Heineken

    Budweise

    r

    Becks

    Kirin

    San Miguel

    Carling

    TsingTao

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    Country of Origin Effects and ConsumerKnowledge

    Corona

    Fosters

    Heineken

    Budweiser

    Kirin

    Jack State

    Carling

    Totenbrau

    Corona

    Fosters

    Red Lion

    Hacienda

    Nagasako

    Silver Dutch

    Majati

    Kuala Label

    Qing Tao

    Becks

    Jiao Pu

    San Miguel

    Heineken

    Budweiser

    Kirin

    Jack State

    Carling

    Totenbrau

    Corona

    Fosters

    Red Lion

    Hacienda

    Nagasako

    Silver Dutch

    Majati

    Kuala Label

    Qing Tao

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    Country of Origin Effects and ConsumerKnowledge

    Becks Jiao Pu San Miguel

    Becks

    d)

    5 4 3 2 1

    e)

    5 4 3 2 1

    f)

    5 4 3 2 1

    San Miguel

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Heineken

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Carling

    a)

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    Country of Origin Effects and ConsumerKnowledge

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Corona

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Kirin

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Budweiser

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    Fosters

    a)

    5 4 3 2 1

    b)

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    Country of Origin Effects and ConsumerKnowledge

    5 4 3 2 1

    c)

    5 4 3 2 1

    Tsingtao

    a)

    5 4 3 2 1

    b)

    5 4 3 2 1

    c)

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

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    Country of Origin Effects and ConsumerKnowledge

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1

    5 4 3 2 1