International Marketing Strategy: The Country of Origin Effect on Decision-Making in Practice (International Series in Advanced Management Studies)

Consumers in most parts of the world now have global access to products beyond those offered in their countries and cultures. This new space for comparison defined by globalization can result in very different purchasing behaviors, including those influenced by the 'country of origin'. This book investigates this effect, one of the most controversial fields of consumer literature, from a company perspective. In particular, it demonstrates the strategic relevance of the country of origin in creating and making use of the value in foreign markets. It also addresses the challenges connected with utilizing the value of the country of origin by considering different entry modes and international marketing channels. Further, it considers the role of international importers and international retailers’ assortment strategies in terms of value creation in foreign markets. Combining theory and practice, the book features diverse company perspectives and interviews with importers and retailers. Foreword 7 Acknowledgments 10 Contents 11 Chapter 1: Introduction to the Country of Origin Effect in International Marketing Strategies 12 1.1 Country of Origin Effect 12 1.2 The Evolution of the Country of Origin Construct 14 1.3 Theoretical Models to Understand the Country of Origin Effect in Consumer Decision-Making 15 1.4 Country of Origin as a Driver to Create Value 16 1.5 The Perspective of This Book 19 1.6 Aim and Methodology 23 1.6.1 Qualitative Study: Different Methods and Tools 25 1.6.2 Quantitative Research: A Focus on International Retailers 27 References 28 Chapter 2: Strategic Entry Modes and Country of Origin Effect 33 2.1 Introduction 33 2.2 Export Modes 35 2.2.1 Indirect Export Modes 35 2.2.2 Direct Export Modes 36 2.2.3 Choice of Distribution Partner from the Perspective of the Country of Origin 37 2.3 Intermediate Entry Modes 38 2.3.1 International Licensing 39 2.3.2 International Franchising 39 2.3.3 Piggyback 41 2.3.4 Contract Manufacturing, Assembly Contract, and Original Equipment Manufacturing 41 2.3.5 Contract Management 42 2.3.6 Turnkey Contract 43 2.3.7 Strategic Alliances and International Joint Ventures 43 2.4 Hierarchical Modes 44 2.4.1 Greenfield Investments 45 2.4.2 Brownfield Investments 45 2.5 Conclusion 46 References 47 Chapter 3: Country of Origin Valorization in Exporting: Insights from Companies and Foreign Importers 49 3.1 Introduction 49 3.2 Importers and Country of Origin Effect 50 3.3 Country of Origin, Value Creation, and Value Appropriation: The Role of Importers 52 3.4 Wine and Terroir in a Traditional Foreign Market: A Challenge for Exporters 53 3.4.1 Why Italian Wine in the US Market 53 3.4.2 The Meaning and the Strategic Role of the Country of Origin from Italian Wineries ́ Perspective 55 3.4.3 Characteristics of the Importer and the Importer ́s Role in Valorization Process of the Country of Origin 59 3.4.4 Critical Issues: The Role of the Foreign Context 62 3.4.5 The Role of Manufacturers in Appropriating the Value of the Country of Origin in Exports 65 3.4.6 Key Factors in Value Appropriation and Destruction Through the Country of Origin 69 3.5 Challenge of Country of Origin Valorization from Importers ́ Point of View 71 3.5.1 Relevance of made in Italy Wine in the US Market 71 3.5.2 Importers ́ Perceptions of Their Role in the Process of Valuing Country of Origin 74 3.5.3 Importers ́ Perceptions of the Role of Wineries in the Process of Valuing the Country of Origin 75 3.6 Opportunities and Threats for Valuing the Country of Origin in a Traditional Foreign Market 76 3.7 Conclusion 78 References 80 Chapter 4: Country of Origin and International Contractual Marketing Channels: Evidence from Specific Product-Market Perspecti... 84 4.1 Introduction 84 4.2 Relationships Between the Country of Origin and Contractual Agreements 85 4.3 The Meaning of the Country of Origin in the Coffee Global Supply Chain 87 4.3.1 Role of the Country of Origin for Coffee Roasters: An Italian Case 88 4.3.2 A Challenge for a Coffee-Producing Country: The Case of Ethiopian Coffee 92 4.4 The Prospective Relevance of Contractual Agreements to Creating Value in an Emerging Country: The Case of Italian Wine in ... 93 4.4.1 Country of Origin Effect 95 4.4.2 Field Research on Italian Wine in India 96 4.4.3 The Wine Market in India 98 4.4.4 Country of Origin Effect in India 99 4.4.5 Relevance of Contractual Agreements in a Complex Market 100 4.5 Conclusion 101 References 102 Chapter 5: From Country of Origin Effect to Brand Origin: Challenges in International Direct Marketing Channels 105 5.1 Introduction 105 5.2 Country of Origin Effect and Brand 106 5.3 Rereading the Meaning of the Country of Origin to Create Value in Greenfield Investments 108 5.4 Relevance of the Country of Manufacture, Country of Brand, and Brand Origin: Insights from Companies in Traditional and Ne... 110 5.4.1 Reasons for Focusing on a Particular Product-Market Contexts 111 5.4.2 Dynamic Relationships Between the Country of Manufacture and the Country of Brand in International Marketing Strategies 113 5.4.3 Need to Invest in Branding 117 5.5 Conclusion 120 References 122 Chapter 6: The Role of Country of Origin in Foreign Retailers ́ Strategies 126 6.1 Introduction 126 6.2 Focus on Retailers 128 6.3 Influences of the Country of Origin on Retailer Buyers ́ Decisions 129 6.3.1 Consumer Preferences and Product Typicality 130 6.3.2 Product Attributes 132 6.3.3 Store Image 133 6.3.4 Supply Chain Management 133 6.3.5 Ethical, Cultural, and Economic Issues for Retailers 135 6.4 Purchasing Behavior and Country of Origin: An Analysis of US Retailers 137 6.5 Country Macro Image 138 6.6 Country Micro Image 141 6.7 Country-of-Brand Image 142 6.8 Country of Origin and the Foreign-Sounding Effect on Retailers ́ Propensity to Trial New Products 145 6.9 Country of Origin and Intention to Buy Low- and High-Involvement Products 148 6.10 Country Image, Country of Brand, and Store Image 149 6.11 Conclusion 152 References 153 Chapter 7: Online Channels and the Country of Origin 156 7.1 Introduction 156 7.2 Connectivity and Interactions in Marketing Channels 158 7.3 Omnichannel Retailing: Toward the ``Phygital ́ ́ Era 159 7.3.1 The Customer Journey in the Omnichannel Perspective 163 7.3.2 Users ́ and Consumers ́ Searches in the Online Channel 166 7.4 Valorization of Fashion Made in Italy in Online Retailing 169 7.5 Online Channel and Country of Origin: Cases in the Food and Beverage Sector 171 7.5.1 Extra-Virgin Olive Oil, Online Channel, and Country of Origin 171 7.5.2 Wine, Online Channels, and Country of Origin 173 7.6 Italian Wine in the USA: An Analysis of Google Users 174 7.6.1 An Explorative Study on Online Searches for Italian Wine in the USA 175 7.6.2 What Can Google Say About the Relevance of the Country of Origin for Wine? 182 7.7 Conclusion 183 References 184 Chapter 8: Conclusion to the Country of Origin Effect on Decision-Making in Practice 188 8.1 Introduction 188 8.2 Main Findings About the Role of Country of Origin on Decision-Making in Practice 189 8.3 A Brief Overview of Challenges Faced by Producers in Exploiting the Country of Origin 194 Front Matter ....Pages i-xiii Introduction to the Country of Origin Effect in International Marketing Strategies (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 1-21 Strategic Entry Modes and Country of Origin Effect (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 23-38 Country of Origin Valorization in Exporting: Insights from Companies and Foreign Importers (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 39-73 Country of Origin and International Contractual Marketing Channels: Evidence from Specific Product–Market Perspectives (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 75-95 From Country of Origin Effect to Brand Origin: Challenges in International Direct Marketing Channels (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 97-117 The Role of Country of Origin in Foreign Retailers’ Strategies (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 119-148 Online Channels and the Country of Origin (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 149-180 Conclusion to the Country of Origin Effect on Decision-Making in Practice (Giovanna Pegan, Donata Vianelli, Patrizia de Luca)....Pages 181-188