Abstract
This paper examines the local and global automotive brands in conjunction with country-oforigin effect on consumer-based brand equity. Consumer’s level of status-seeking motivation is considered when analysing the effect of brand’s country-of-origin on consumer-based brand equity. Study conducted on 181 respondents showed that consumers generally prefer Asian than European automotive brands. Asian brands also ranked highest in perceived quality and brand loyalty, followed by European brands and local brands. The main difference of high and low status-seeking consumers is found in brand association, perceived quality, and brand loyalty of local brands. Low status-seeking consumers tend to rate brand association, perceived quality, and brand loyalty of local brands higher than high statusseeking consumers. This paper exhibits that the theory of consumer ethnocentrism and global branding strategies are not mutually exclusive.
Keywords
- Country-of-Origin Search this journal for Country-of-Origin (opens in a new tab)
- Consumer-Based Brand Equity Search this journal for Consumer-Based Brand Equity (opens in a new tab)
- Status-Seeking Motivation Search this journal for Status-Seeking Motivation (opens in a new tab)
- Global and Local Brands Search this journal for Global and Local Brands (opens in a new tab)
- Automobile Industry Search this journal for Automobile Industry (opens in a new tab)
References
- Aaker, D. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: Free Press.
- Aaker, D. (1996). Measuring Brand Equity across Products and Markets. California Management Review , 38(3), 102-120.
- Aaker, D. & Joachimsthaler, E. (2000). The brand relationship spectrum. California Management Review , 42(4), 8-23.
- Agarwal, M. K. & Rao, V. R. (1996). An empirical comparison of consumer-based brand equity. Marketing Letters , 7(3), 237-247.
- Akerlof, G. A. (1970). The market for" lemons": Quality uncertainty and the market mechanism. The quarterly journal of economics , 3, 488-500.
- Alden, D. L., Steenkamp, J. B. E. & Batra, R. (1999). Brand positioning through advertising in Asia, North America and Europe: the role of global consumer culture. The Journal of Marketing , 2, 75-87.
- Amonini, C., Keogh, J. & Sweeney, J. C. (1998). The Dual Nature of Country-Of-Origin Effects-A Study of Australian Consumers’ Evaluations. Australasian Marketing Journal (AMJ) , 6(2), 13-27.
- Balabanis, G. & Diamantopoulos, A. (2008). Brand origin identification by consumers: a classification perspective. Journal of International Marketing , 16(1), 39-71.
- Bendixen, M., Bukasa, K. A. & Abratt, R. (2004). Brand equity in the business-to-business market. Industrial Marketing Management , 33(5), 371-380.
- Cayla, J. & Eckhardt, G. M. (2008). Asian brands and the shaping of a transnational imagined community. Journal of Consumer Research , 35(2), 216-230.
- Ditcher, E. (1962). The world customer. The International Executive , 4(4), 25-27.
- Eastman, J. K., Goldsmith, R. E. & Flynn, L. R. (1999). Status consumption in consumer behavior: Scale development and validation. Journal of Marketing Theory and Practice , 1, 41-52.
- Erickson, G. M., Johansson, J. K. & Chao, P. (1984). Image variables in multi-attribute product evaluations: country-of-origin effects. Journal of Consumer Research , 4, 694-699.
- Hamzaoui-Essoussi, L., Merunka, D. & Bartikowski, B. (2011). Brand origin and country of manufacture influence on brand equity and the moderating role of brand typicality. Journal of Business Research , 64(9), 973-978.
- Han, C. M. & Terpstra, V. (1988). Country-of-origin effects for uni-national and bi-national products. Journal of international business studies , 3, 235-255.
- Ho, J. S. Y., Ong, D. L. T., Wang, P. I., Tay, G. T. P. & New, C. P. (2012). Global versus local brand: perceived quality and status-seeking motivation in the automobile industry. World Review Business Research , 2(4), 1-12.
- Hsieh, M. H. (2002). Identifying brand image dimensionality and measuring the degree of brand globalization: a cross-national study. Journal of International Marketing , 10(2), 46-67.
- Huber, J. & McCann, J. (1982). The impact of inferential beliefs on product evaluations. Journal of Marketing Research , 3, 324-333.
- Im, H. H., Kim, S. S., Elliot, S. & Han, H. (2012). Conceptualizing destination brand equity dimensions from a consumer-based brand equity perspective. Journal of Travel & Tourism Marketing , 29(4), 385403.
- Jalilvand, M. R., Samiei, N. & Mahdavinia, S. H. (2011). The Effect of Brand Equity Components on Purchase Intention. International Business and Management , 2(2), 149-158.
- Javalgi, R. R. G. & Moberg, C. R. (1997). Service loyalty: implications for service providers. Journal of Services Marketing , 11(3), 165-179.
- Jung, J. & Shen, D. (2011). Brand equity of luxury fashion brands among Chinese and US young female consumers. Journal of East-West Business , 17(1), 48-69.
- Kapferer, J. N. (1997). Strategic brand management: creating and sustaining brand equity long term (2nd Ed.). London: Kogan Page Limited.
- Kaynak, E. & Kara, A. (2002). Consumer perceptions of foreign products: An analysis of product-country images and ethnocentrism. European Journal of Marketing , 36(7/8), 928-949.
- Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. The Journal of Marketing , 1, 1-22.
- Keller, K. L. (1998). Strategic Brand Management: Building, Measuring and Managing Brand Equity. Upper Saddle River, New Jersey: Prentice Hall.
- Keller, K. L. (2002). Strategic Brand Management: Building, Measuring and Managing Consumer-Based Brand Equity (2nd Ed). Upper Saddle River, New Jersey: Pearson Education.
- Kim, C. K. (1995). Brand popularity and country image in global competition: managerial implications. The Journal of Product and Brand Management , 4(5), 21-33.
- Low, G. S. & Lamb Jr, C. W. (2000). The measurement and dimensionality of brand associations. Journal of Product & Brand Management , 9(6), 350-370.
- Malaysia Automotive Association. (2014). Summary of Sales & Production Data. Retrieved April 23, 2014, from http://www.maa.org.my/info_summary.htm
- Malaysia Investment Development Authority. (2012). Business Opportunities Malaysia’s Automotive Malaysia. Retrieved from http://www.mida.gov.my/env3/uploads/Publications_pdf/BO_MalaysiaAutomotive/Automoti ve2012.pdf
- Marketing Magazine. (2013). Never A Better Time for Automotive Marketers. Retrieved April 26, 2014, from http://marketingmagazine.com.my/index.php/categories/breaking-news/9693-never-abetter-time-for-automotive-marketers
- McCracken, G. (1986). Culture and consumption: A theoretical account of the structure and movement of the cultural meaning of consumer goods. Journal of consumer research , 2, 71-84.
- Moradi, H. & Zarei, A. (2012). Creating consumer-based brand equity for young Iranian consumers via country of origin sub-components effects. Asia Pacific Journal of Marketing and Logistics , 24(3), 394-413.
- Nunnally, J. (1978). Psychometric methods. New York: McGraw.
- Oliver, R. L. (1997). Satisfaction: A behavioral perspective on the customer. New York.
- Pappu, R., Quester, P. G. & Cooksey, R. W. (2005). Consumer-based brand equity: improving the measurement – empirical evidence. The Journal of Product and Brand Management , 14(3), 143154.
- Pappu, R., Quester, P. G. & Cooksey, R. W. (2006). Consumer-based brand equity and country-of-origin relationships: Some empirical evidence. European Journal of Marketing , 40(5-6), 697-717.
- Pappu, R., Quester, P. G. & Cooksey, R. W. (2007). Country image and consumer-based brand equity: relationships and implications for international marketing. Journal of International Business Studies , 38(5), 726-745.
- Parkvithee, N. & Miranda, M. J. (2012). The interaction effect of country-of-origin, brand equity and purchase involvement on consumer purchase intentions of clothing labels. Asia Pacific Journal of Marketing and Logistics , 24(1), 7-22.
- Roth, K. P. Z., Diamantopoulos, A. & Montesinos, M. A. (2008). Home country image, country brand equity and consumers’ product preferences: an empirical study. Management International Review , 48(5), 577-602.
- Roy, R. & Chau, R. (2011). Consumer-based brand equity and status-seeking motivation for a global versus local brand. Asia Pacific Journal of Marketing and Logistics , 23(3), 270-284.
- Scitovsky, T. (1976). The joyless economy: An inquiry into human satisfaction and consumer dissatisfaction.
- Shahin, A., Kazemi, A. & Mahyari, H. K. (2012). How Consumer’s Perception of Country of Origin Affects Brand Equity: A Case Study in Iran. Middle-East Journal of Scientific Research , 12(6), 878-885.
- Sharma, P. (2011). Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness. Journal of International Business Studies , 42(2), 285-306.
- Shukla, P. (2011). Impact of interpersonal influences, brand origin and brand image on luxury purchase intentions: Measuring interfunctional interactions and a cross-national comparison. Journal of world business , 46(2), 242-252.
- Steenkamp, J. B. E., Batra, R. & Alden, D. L. (2003). How perceived brand globalness creates brand value. Journal of International Business Studies , 34(1), 53-65.
- Takali, H., Hamidi, M., Khabiri, M., Sajjadi, N. & Alhani, F. (2012). The Analysis of Experts’ Perceived Experience of the Effective Factors in Brand Equity of Iranian National Olympic Committee. World , 6(4), 441-451.
- Tong, X. & Hawley, J. M. (2009). Measuring customer-based brand equity: empirical evidence from the sportswear market in China. Journal of Product & Brand Management , 18(4), 262-271.
- Totton, N. & White, P. (2011). The Ubiquitous Mythical Normal Distribution. UWE Bristol, July.
- Verlegh, P. W. J., Steenkamp, J. E. M. & Meulenberg, M. T. G. (2005). Country-of-origin effects in consumer processing of advertising claims. International Journal of Research in Marketing , 22(2), 127-139.
- Yasin, N. M., Noor, N. M. & Mohamad, O. (2007). Does image of country-of-origin matter to brand equity? Journal of Product & Brand Management , 16(1), 38-48.
- Yoo, B. & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of business research , 52(1), 1-14.
- Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. The Journal of Marketing , 1, 2-22.
Downloads
No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.
How to Cite
Share this article
License
Copyright (c) 2015 Sheng Yang CHIU, Jessica Sze Yin HO (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
Keywords
- Country-of-Origin Search this journal for Country-of-Origin (opens in a new tab)
- Consumer-Based Brand Equity Search this journal for Consumer-Based Brand Equity (opens in a new tab)
- Status-Seeking Motivation Search this journal for Status-Seeking Motivation (opens in a new tab)
- Global and Local Brands Search this journal for Global and Local Brands (opens in a new tab)
- Automobile Industry Search this journal for Automobile Industry (opens in a new tab)
Section
Published
Submissions
Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.
Make a Submission