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CRITICAL - Essay Example

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Masters
Essay
Marketing
Pages 8 (2008 words)

Summary

International Marketing Name: Tutor: Course: Date: Determining the effects of country-of-origin on willingness by consumers to pay more for a favorable country image Introduction The equity theory was utilized by Koschate-Fischer, Diamantopoulos, and Oldenkotte who sought to investigate the means by which products ultimately affect the prices that the end consumer is willing to pay…

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CRITICAL

Moreover, the authors also seek to draw a level of inference with regards to the overall impact that brand familiarity has upon the relationship. As a means of performing such a level of inference into these determinants, the authors set out to perform three separate yet complementary experiments in order to test the hypothesized relationship in a setting of low and high involvement. Ultimately, what can be said concerning this understanding is that consumers are oftentimes willing to pay a premium for commodity prices from a nation that had a favorable country image as compared to one that had a lower level of favorability. In such a way, the reader can see that brand familiarity does not heavily impact upon the COO effect. Conversely, it can and should be understood that the COO effect impacts heavily upon the WTP; especially when the consumer is not aware of or familiar with the product. (Howard 2009). Focusing on actual behavior provides fresh insight more than the previous research examining buyers’ intentions and attitudes because it demonstrates the impact of the COO cue on buyer’s actions. The take away from all of this leads the reader/researcher to draw several managerial implications with respect to the price setting structure and origin of goods as have been described. ...
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