Country-of-Origin vs. Foreign Branding: Does Incongruent Verbal Package Information Affect Consumers' Purchase Intention?

8 Pages Posted: 20 Nov 2018

See all articles by Ana Marija Morovican

Ana Marija Morovican

University of Applied Sciences Burgenland, Students

Claudia Kummer

Fachhochschulstudiengänge Burgenland

Date Written: September 8, 2016

Abstract

This contribution investigates under which conditions consumers can identify a product’s country of origin when confronted with conflicting information on the product package. Our study draws on current literature on the country-of-origin effect and on foreign branding, a naming strategy designed to evoke associations of a favoured origin by means of the language or spelling cues included in the brand name. The study we conducted has two major objectives. The first one is to ascertain how much attention is paid to the country-of-origin at the point of sale. The second one is to clarify whether foreign branding effects can also be found in connection with the Croatian language. Therefore, an eye-tracking experiment with a follow-up questionnaire was conducted using a student sample. Results showed that attention can be distracted from the country of origin by positioning this element on the back label. Interestingly, findings also indicated that label design, price and shelf positioning influence the buying decision more than congruency of country of origin and brand name. It can further be concluded that incongruence between the country of origin and the language of the brand name seems to be less important for German and English branded olive oils. However, the results for Croatian branded olive oils were clearly better in a condition when those elements were congruent.

Keywords: strategic brand management, foreign branding, country-of-origin effect, eye tracking technology, product package, consumer behaviour

JEL Classification: M31

Suggested Citation

Morovican, Ana Marija and Kummer, Claudia, Country-of-Origin vs. Foreign Branding: Does Incongruent Verbal Package Information Affect Consumers' Purchase Intention? (September 8, 2016). 2016 ENTRENOVA Conference Proceedings. Available at SSRN: https://ssrn.com/abstract=3282277 or http://dx.doi.org/10.2139/ssrn.3282277

Ana Marija Morovican (Contact Author)

University of Applied Sciences Burgenland, Students ( email )

Eisenstadt, Burgenland
Austria

Claudia Kummer

Fachhochschulstudiengänge Burgenland ( email )

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
30
Abstract Views
371
PlumX Metrics