The impact of country of origin on pretrial and posttrial product evaluations: The moderating effect of consumer expertise

2003 ◽  
Vol 20 (10) ◽  
pp. 935-954 ◽  
Author(s):  
Jyh-shen Chiou

The research investigate the impact of foreign shareholding originated from developed and developing countries on the efficiency of acquired local banks in Indonesia during 2007-2017 by including Corporate Governance as a moderating variable. Methodology: Using the secondary aggregate data of 29 commercial banks acquired by foreign shareholders, a panel regression model using econometrics methods of GLS, and DEA were applied to examine the effects of percentage of foreign shareholdings on efficiency of the acquired local banks. The main findings; First, percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is originated from developed countries. Second, the level of economic advancement of the country of origin of foreign shareholders has significant effects on the efficiency of the acquired local banks. Third, the increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and fourth, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks. Overall, the originality of this studies is that the percentage of foreign shareholdings and its country of origin are two combined factors that cannot be separated in affecting the level of efficiency of its acquired local bank and the fact of significant positive moderating effect of Foreign Director. As policy consideration, monetary authority need to perform strict due diligence on prospective foreign shareholders specifically originated from developing countries, advise banks to maintain the existence of Foreign Director and to encourage small local banks to be merged prior to the acquisition by foreign shareholders.


1985 ◽  
Vol 22 (4) ◽  
pp. 388-396 ◽  
Author(s):  
Johny K. Johansson ◽  
Susan P. Douglas ◽  
Ikujiro Nonaka

A new methodological approach for examining the impact of country of origin on product evaluations is proposed. It takes the form of a multiattribute attitudinal model analyzed by means of a system of simultaneous equations. This approach makes possible examination of the impact of other attributes as well as country of origin on evaluations, and takes into consideration the effect of familiarity and knowledge about the product class. Differences between respondents of two different national origins are also investigated because previous research indicates differences in country stereotyping by nationality.


Author(s):  
Peeter W. J. Verlegh

The impact of product origin on consumer product evaluations is well-documented, and several types of influence have been described in the literature. In this paper, the author will first describe some of the practical and scientific support for this effect, and then focus on the psychology behind the country-of-ori­gin effect. Drawing from recent studies, this paper will review cognitive, affective and normative country­-of-origin effects, and discuss the mechanisms behind the. Special attention will be paid to the general pref­erence for domestic products over foreign alternatives, and to the interaction between country of origin and other marketing variables, such as advertising.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoyu Wang ◽  
Chenhong Ding

PurposeCountry of origin (COO) effect refers to the influence of COO on consumers' perception and evaluation of a product. This research explores the impact of consumers' power distance on COO effect.Design/methodology/approachWe conducted two experiments to test the relevant hypotheses.FindingsThe results indicate that power distance has a polarizing influence on COO effect. That means, for products from countries with good images, the higher the consumers' power distance, the better their evaluation of the products; while for products from countries with poor images, the higher the power distance, the worse their evaluation of the products. The research also finds the moderating effect of consumers' competence–related country-related affect (CRA). When holding positive competence–related CRA, for products from countries with good images, the higher the consumers' power distance, the better their evaluation of the products; for products from countries with poor images, consumers' power distance has no effect. When having negative competence–related CRA, for products from countries with poor images, the higher the consumers' power distance, the worse their evaluation of the products; for products from countries with good images, power distance has no effect.Originality/valueThis study finds that depending on the perception of COO image, power distance not only improves the evaluation of products but also lows such evaluation, reflecting a two-way polarizing feature.


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