dr. ir. peeter w.j. verlegh rsm erasmus university rotterdam

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Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam COUNTRY IMAGE: measurement & impact on consumer behavior

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Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam. COUNTRY IMAGE: measurement & impact on consumer behavior. Country-of-origin effect. The impact of COO on consumer product evaluation What is (for the consumer) the difference between … Cars from Germany and cars from France ? - PowerPoint PPT Presentation

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Page 1: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Dr. Ir. Peeter W.J. VerleghRSM Erasmus University Rotterdam

COUNTRY IMAGE:

measurement & impact on consumer behavior

Page 2: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

The impact of COO on consumer product evaluation

What is (for the consumer) the difference between … Cars from Germany and cars from France ? Singapore Airlines and KLM ? tomatoes from The Netherlands and from Spain ? French wine and Australian wine ? …

Country-of-origin effect

Page 3: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Meta-analysis

Many studies with different results - > Review and meta-analysis:

- Collect (systematically) previous studies- Map results- Calculate average result (effect size)- Investigate impact of “moderators” on this effect size

Verlegh & Steenkamp 1999 - Journal of Economic Psychology

Page 4: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Country-of-origin effect:

41 studies (278 effects) in major journals (1980 – 1996)

Average effect is significant and sizeable: r = .39

Effects for quality judgments > attitude / purchase intention

largest for Western vs. non-Western countries

Within subjects > Between subjects

Effect decreases with amount of information

Meta-analysis - II

Page 5: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

HOEZO country van herkomst ?

Made in Taiwan

5mm

10mm

in practice - I

Page 7: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam
Page 8: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

What is the origin? - Stereotypes? The origin – stereotypes?

Page 9: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Heaven is where…

the police are British,

the lovers are French,

the mechanics are German,

the cooks are Italians,

and it is all organized by the Swiss.

What is the origin? - Stereotypes? The origin – stereotypes?

Page 10: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Hell is where…

the police are German,

the mechanics are French,

the cooks are British,

the lovers are Swiss,

and it is all organized by the Italians

Heaven is where…

the police are British,

the lovers are French,

the mechanics are German,

the cooks are Italians,

and it is all organized by the Swiss.

What is the origin? - Stereotypes? The origin – stereotypes?

Page 11: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

What is the origin? - Stereotypes? The origin – stereotypes?

Page 12: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Country image

Set of associations which an individual or group relates to a country (combined into a mental network).

Which associations ?

- people (national character?) - geography - products / brands - emotions (general - specific) - episodes (individual vs. collective)

Country image

Page 13: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Product-related country image

hedonic utilitarian

attributes

Country: nature

Feelings (pos/neg)

Product Attitude

Product experienc

eCountry: climate

People: competence

People: creativity

Page 14: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Country image: study design

Survey

406 Dutch consumers interview on tomatoes or washing machines from Netherlands, Germany, Spain / Italy Estimate impact of country image on product attitude(mediated by product beliefs)

Page 15: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Study 1: tomatoes

hedonic utilitarian

attributes

Country: nature

Feelings (pos/neg)

Product Attitude

Product experienc

eCountry: climate

People: competence

People: creativity

Page 16: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Study 2: washing machines

hedonic utilitarian

attributes

Country: nature

Feelings (pos/neg)

Product Attitude

Product experienc

eCountry: climate

People: competence

People: creativity

Page 17: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Extending the measure of country image

experience distance relationships

Country: nature

Attitudes &

behaviors

Country: climate

People: competence

People: creativity

Country: ….

Country: ….

with Ministry of Foreign Affairs:

Track image in ±15 countries

Page 18: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

mapping country image

reveal deeper (“secondary”) meanings

compare with others (a/o determine unique associations)

design and track marketing communications

current extension:Generalization for Dutch Ministry of Foreign AffairsTo track Dutch image in 15 countries, follow up in

2010

Practical relevance

Page 19: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Features of associations - A

Secondary associations:

associations of associations

Example:

Switzerland - Mountains

Mountains – pure air, natural

Features of associations

Page 20: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Features of associations - B

Resonance:

Country evokes association, BUT:

Does association evoke country?

Examples ?:

Tulips - Netherlands

Wine – France

Features of associations

Page 21: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Features of associations - C

Interconnections of associations:

Enhance consistency, improve image

Example:

France – Sun

France – Wine

France - Savoir-vivre

But also:

Wine- sun & Wine- “Savoir-vivre”

Features of associations

Page 22: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam
Page 23: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Dutch tomatoes in Germany: “Wasserbomben”

How to improve? Modest (we’re working on it, they are better than they used to be)or … Extreme claims (beste taste, most natural)

Improving country images?

Verlegh, Steenkamp & Meulenberg 2005 – International J. of Research in Marketing

Page 24: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Ad - modest

Tomaten aus Holland heissen von nun ab Hollandia Tomaten. Beim Anbau von Hollandia Tomaten wird auf Natur und Umwelt geachtet. Mit Hilfe von natürlichen Mitteln sorgt der niederländische Bauer für ein Qualitätsprodukt. Hollandia Tomaten haben einen guten Geschmack und Aroma. Forschung weist auf, dass 6 von 10 Konsumenten Hollandia Tomaten

schmackhafter finden als andere Tomaten.

Hollandia Tomaten:Schmecken beinah so gut wie Tomaten aus eigenem Garten…

+Die schmackhafteste Verwöhnung von Mutter Natur

Page 25: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Ad - extreme

Tomaten aus Holland heissen von nun ab Hollandia Tomaten. Beim Anbau von Hollandia Tomaten wird mehr als in jedem anderen country auf Natur und Umwelt geachtet. Mit Hilfe von natürlichen Mitteln sorgt der niederländische Bauer für ein Qualitätsprodukt ohne gleichen. Hollandia Tomaten haben einen unüber-troffen vollen Geschmack und ein reiches Aroma. Forschung weist auf, dass 9 von 10 Konsumenten Hollandia Tomaten viel schmackhafter finden als andere Tomaten.

Hollandia Tomaten:Schmecken so gut wie Tomaten aus eigenem Garten…

+Die schmackhafteste Verwöhnung von Mutter Natur

Page 26: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

2 x 2 x 2 factorial design = 8 different ads/surveys claim strength (modest vs. extreme) country of origin (Netherlands vs. Spain) Motivation (low vs. high = method-factor)

751 German consumers, “between subjects”

Effect on purchase intention

Study design

Page 27: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Conclusion

Table 1: Purchase intention for tomatoes

SPANIA

HOLLANDIA

Low

involvement

High

involvement

Low

involvement

High

involvement

Modest

68.5

61.6

46.0

56.1

Extreme 64.3 65.6 54.4 52.1

Page 28: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Conclusion

Table 1: Purchase intention for tomatoes

SPANIA

HOLLANDIA

Low

involvement

High

involvement

Low

involvement

High

involvement

Modest

68.5

61.6

46.0

56.1

Extreme 64.3 65.6 54.4 52.1

Page 29: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

Conclusion

Table 1: Purchase intention for tomatoes

SPANIA

HOLLANDIA

Low

involvement

High

involvement

Low

involvement

High

involvement

Modest

68.5

61.6

46.0

56.1

Extreme 64.3 65.6 54.4 52.1

Page 30: Dr. Ir. Peeter W.J. Verlegh RSM Erasmus University Rotterdam

1. COO is relevant, but only if the consumer is (made) aware

2. Country image is stored as an associative network. Associations can be measured and used for positioning and for designing/tracking communication

3. When influencing country image, boomerang effects for over- & underclaiming may occur, especially when involvement is high.

Summary