Vitor Azzari, Felipe Zambaldi, L. Guissoni, Jonny Mateus Rodrigues, Eusebio Scornavacca
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Brand Origin Effects During Economic Declines: Evidence from an Emerging Market
Drawing on the signaling theory perspective, this study examines the effect of perceived country of origin on brand performance during economic contractions. The authors specify an econometric model linking brand market share to recession periods and analyze the interaction with brand origin perception. They test the model on four years of longitudinal data on consumer packaged goods brands combined with a self-administrated consumer questionnaire to infer consumers’ perceptions about brands’ origins. The authors find that economic contractions differentially affect brands with different country-of-origin perceptions. The results indicate that the market share of brands that customers most identify as domestic suffers more damage during contractions than brands they perceive as foreign. The main contribution of this article is in generating a better understanding of brands’ resistance to economic contractions based on their perceived country of origin. Moreover, the authors provide strategic recommendations to brands based on their origin perception and the country's economic situation.
期刊介绍:
As the globalization of markets continues at a rapid pace, business practitioners and educators alike face the challenge of staying current with the developments. Marketing managers require a source of new information and insights on international business events. International marketing educators require a forum for disseminating their thoughts and research findings. Journal of International Marketing(JIM) is an international, peer-reviewed journal dedicated to advancing international marketing practice, research, and theory. Contributions addressing any aspect of international marketing management are published each quarter.