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Marketing high-tech products in emerging markets : the differential impacts of country image and country-of-origin's image
Nizar Souiden, Frank Pons, Marie-Eve Mayrand
Journal of Product & Brand Management, Vol. 20 Iss: 5 pp. 356 - 367
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Keyword
Country Image(CI)
Country-Of-Origin’s(COO) Image
Product Image
Emerging Markets
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Keyword
High-tech Products
Purchase Intention
Consumers’ Uncertainty & Aspiration
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Country-Of-Origin’s Image(COO)
What's your favor
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Country-Of-Origin’s Image(COO)
What's your favor
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Country-Of-Origin’s Image(COO)
What's your favor
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Country-Of-Origin’s Image(COO)
What's your favor
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Country image(CI)
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Country image(CI)
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Country image(CI)
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Country image(CI)
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Country image(CI)
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Product Image
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Product Image
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Product Image
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Product Image
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Product Image
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Product Image
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Product Image
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I want play a game…
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Why have
Show-Girls,
But no
Show-Boys ?!
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Emerging Markets
•An emerging marketis a nation with social or business activity in the process of rapid growth and industrialization.
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High-tech Products
•High-tech Productsrefers to technology that is at the cutting edge: the most advanced technology available.
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Purchase Intention
•Purchase Intentionis a plan to purchase a particular good or service in the future.
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Consumers’ Uncertainty & Aspiration
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Research Purpose
• It simultaneously assesses the effects of country image and country-of-origin’s image on consumers’ uncertainty, aspiration and purchasing intention of high-tech products.
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Research Method
•Research Design
•Questionnaire and Measurement Scales
• Sample Sharacteristics
•Based on a sample of 479 Chinese consumers, structural equation modeling was used to test the hypothesized relationships.
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The differential impacts of country’s image and country-of-origin’s image on consumers’ uncertainty, aspiration and purchase intention of high technology products
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Research Findings
•Results show that compared to country-of-origin, country’s image is a more effective tool in reducing consumers’ uncertainty and increasing their aspiration to purchase high technology products.
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Socio-demographic information of Chinese living in Beijing, Shanghai and Guangzhou
City Shanghai Beijing Guangzhou
Percentage of total Chinese living
in the three cities
Gender breakdown
40.3 33.7 26
Male (%) 49.48 49.9 51.3
Female (%) 50.52 50.1 48.7
Percentage of married people 70.1 72.57 69.57
Average monthly salary (RMB) 3,512
Source: ChinaStatisticalYearbook(2008)
3,748 2,675
Source: ChinaStatisticalYearbook(2008)
3,512
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Psychometric properties of measurement scales
Construct No. of items EigenvalueCumulative
variance (%)rho AVE
Countryimage 63.72
Factor 1: CI1 3 3.65 0.85 0.65
Factor 2: CI2 3 1.57 0.76 0.52
Factor 3: CI3 2 1.16 0.74 0.61
Country-of-
origin: COO5 0.85 0.54
Product image:
PIM4 0.85 0.58
Aspiration: ASP 6 0.92 0.66
Uncertainty:
UNC2 0.87 0.77
Purchase
intention: CPI6 0.91 0.63
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Correlation matrix between independent variables
Variables CI COO PIM ASP UNC
CI 1
COO 0.360* 1
PIM 0.035 0.214* 1
ASP 0.255* 0.268* 0.302* 1
UNC 20.066* 20.147* 20.137* 20.321* 1
Note: *Significant at 0.01 level
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Summary of the structural equation modeling results
IV DV St. beta t p Results Statistics p
Hypothesis
H1 PIM UNC 0.096 1.746 0.081 Rejected
H2 UNC CPI 20.137 23.898 0 Accepted
H3 COO UNC 20.125 22.336 0.019 Accepted
H4 CI UNC 20.186 22.876 0.004 Accepted
H5 PIM ASP 0.213 4.065 0 Accepted
H6 ASP CPI 0.76 13.792 0 Accepted
H7 COO ASP 0.132 2.709 0.007 Accepted
H8 CI ASP 0.376 4.955 0 Accepted
H9 CI PIM 20.108 21.744 0.081 Rejected
H10 COO PIM 0.185 3.437 0 Accepted
H11 PIMCPI 0.119 3.329 0 Accepted
Fitindices
Chi square/d. f 2.981 ***
RMR 0.043
GFI 0.86
IFI 0.904
CFI 0.903
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Research limitations
•The major role of a country-of-origin is to influence product image while that of country’s image is to increase consumers’ aspiration to acquire its product and diminish their uncertainty and hesitation about buying the product.
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Practical Implications
•Marketers should understand that consumers in emerging countries are ambivalent when they consider the purchase of complex products.
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Practical Implications
•On the one hand, highlighting the country image can contribute in alleviating consumers’ uncertainty and increasing their aspiration to purchase sophisticated and complex products.
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Practical Implications
•On the other hand, promoting the country-of-origin’s image can prove an effective means to improve product image in emerging markets.
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Conclusion
•Most of the previous studies have focused on one of the two concepts, interchangeably used both of them, and relatively ignored their simultaneous impact on consumer behavior.
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Conclusion
•The present study has tried to address this shortfall through simultaneously studying their influences on product image and consumer purchase intention; and highlighting their differential impacts.
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Thanks for your listening
Q & A