A Gravity Model for Country of Origin Consumer Evaluations

A Gravity Model for Country of Origin Consumer Evaluations

Vasanthakumar Bhat (Pace University, New York, USA)
Copyright: © 2019 |Pages: 11
DOI: 10.4018/IJABE.2019070101

Abstract

This paper tests the gravity model for country of origin consumer evaluations. The analysis, based on about 2500 country pairs, indicates that consumer evaluations in one country (rating country) of products made in another country (rated country) are directly related to GDP of rated country and inversely to GDP of rating country and distances between them. Country pairs with common languages, rated country being an island, and political stability in rated countries are found to have a strong positive influence on the country evaluations. Rated country being a colony of the rating country in the past, rated country being a landlocked country, and country pair being in at least one active preferential trade agreement covering goods have negative influence on the country of origin evaluations. Contiguity between country pairs is found to have no influence on the country of origin consumer evaluations.
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Literature Review

A comprehensive review of literature on country of origin evaluations can be found in Roth and Diamantopoulos (2010) and Dinnie (2004). One of the earliest research on country of origin studies dealt with the determination that evaluations of products from different countries by consumers are influenced by the country of origin of products, and development of country of origin as a construct (Schooler, 1965). Han (1989) finds that the country of origin is a major criterion while evaluating products along with other factors such as price, brand, and so on. Wall et al. (1991) find that quality perception about a product is influenced more by country of origin than price and brand. According to Cheron and Propeck (1997), country image has a higher influence on the perception of quality than on the intention to buy.

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