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Country of Origin

The effect of Country-of-Origin (COO) messages in the market expansion strategy for the Zara product range may be important for attaining strong growth objectives over the next five years. COO is acknowledged to influence consumer attitudes and behaviour and can be used to positively influence the market position of a product. The role of COO has evolved considerably over the past fifty years and there are conflicting pieces of evidence as to its effects. However, the balance of evidence suggests that where a COO and a brand can be matched with an appropriate target international market, COO can have a significant effect. A literature review has identified five key areas of COO research that relate to the strategies for Zara – the role of local COO effect – defined as consumer ethnocentrism – for the nationwide expansion of the Zara target market; the role of contextual analysis in the implementation of COO strategy; the perception and congruency of country-image; the influence of COO on branding; and the impact of consumer behaviours. The key recommendations from these areas are that contextual analysis of local and international markets are required to ascertain the current perceptions of the skincare market, of New Zealand as a COO, of the similarities between NZ (as the COO) and the country of the target market, and of the local NZ market to create a branding strategy that can deliver consistent messages about product quality and positioning. Using the COO effect may be of significant benefit to the expansion of the Zara product range.

Details

language		english
wordcount		3387 (cca 9.5 pages)
contextual quality		N/A
language level		N/A
price		free
sources		32

Table of contents

Executive Summary i
Table of Contents ii
Introduction 3
Discussion 4
Theoretical Background 4
Ethnocentrism and the NZ market 5
COO and Context 5
Perception of Country Image and Congruency 6
COO and Brands 6
Consumer Behaviour 7
Conclusions 8
Recommendations: 9
References 10

Preview of the essay: Country of Origin

Executive Summary The effect of Country-of-Origin (COO) messages in the market expansion strategy for the Zara product range may be important for attaining strong growth objectives over the next five years. COO is acknowledged to influence consumer attitudes and behaviour and can be used to positively influence the market position of a product. The role of COO has evolved considerably over the past fifty years and there are conflicting pieces of evidence as to its effects. However, the balance of evidence suggests that where a COO and a brand can be matched with an appropriate target international market, COO can have a significant effect. A literature review has identified five key areas of COO research that relate to the strategies for Zara – the role of local COO effect – defined as consumer ethnocentrism – for the nationwide expansion of the Zara target market; the role of contextual analysis in the implementation of COO strategy; the perception and congruency of country-image; the influence of COO ...
... A commentary essay. Journal of Business Research, 63(4), 442-445. Samiee, S., Shimp, T. A., & Sharma, S. (2005). Brand Origin Recognition Accuracy: Its Antecedents and Consumers' Cognitive Limitations. Journal of International Business Studies, 36(4), 379-397. Schaefer, A. (1997). Consumer knowledge and country-of-origin effects. European Journal of Marketing, 31(1), 56-72. Schooler, R. D. (1965). Product bias in the Central American common market. Journal of Marketing Research, 4(November), 394-397. Shimp, T. A., & Sharma, S. (1987). Consumer ethnocentrism: construction and validation of the CETSCALE. Journal of Marketing Research, 24(3), 280- 289. Usunier, J.-C. (2006). Relevance in business research: the case of country- of-origin research in marketing. European Management Review, 3(1), 60- 73. Usunier, J.-C., & Cestre, G. (2007). Product Ethnicity: Revisiting the Match Between Products and Countries. Journal of International Marketing, 15(3), 32-72. Watson, J. J., & Wright, K. (2000). Consumer ethnocentrism and attitudes toward domestic and foreign products. European Journal of Marketing, 34(9), 1149-1166.

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