The Effect of Country of Origin on Dubai’s Market


 


Objectives


The researcher seeks to investigate the effect of the concept of “country of origin” (COO) in the market of Dubai. Specifically, the study seeks to answer the following questions:


1.    What is the importance of COO image?


2.    What contributes to the formation of CO images?


3.    How can CO images be measured?


4.    What is the nature of each facet of COO?


5.    What is the contribution of each facet to the overall image?


6.    How salient is CO image in shaping attitudes and behavior toward specific products and brands and in affecting choice behavior, both in absolute terms and relative to other marketing stimuli?


Brief Rationale


Country of origin (CO) is a potentially powerful image variable that can be used to gain competitive advantage in international marketing. However, deficiencies in the definition and measurement of its facets have contributed to ineffective and infrequent use of CO image as competitive tool. Country-of-origin (CO) image refers to “buyers’ opinions regarding the relative qualities of goods and services produced in various countries” (Bilkey 1993, p. xix). Among the image variables in the international advertiser’s toolkit, the CO variable is conceivably the most potent if skillfully applied. Papadopoulos (1993, p. xxi) asks rhetorically, “It is often said that brand names like ‘McDonald’s’ are worth millions. If so, how many billions is Germany’s image worth?” A few authors have questioned the magnitude of importance of CO image in affecting choice behavior (Ettenson, Wagner, and Gaeth 1988; Johansson 1989; Johansson, Douglas, and Nonaka 1985), but most acknowledge its salience in overall product evaluation and as a proxy for other, more intrinsic, qualities (Han and Terpstra 1988; Yoo 1992). Internationally, CO serves as a useful extrinsic cue and as a surrogate for difficult-to-evaluate intrinsic characteristics such as quality and performance because consumers tend to be less familiar with foreign than with domestic products (Huber and McCann 1982; Olson 1977). Han and Terpstra (1988, p. 236) claim, “It has been found that all products originating in foreign countries are subject to country-of-origin [image] effects.” Han (1990, p. 24) further states that CO-image studies in general show that consumers have significantly different general perceptions about products made in different countries. Hooley, Shipley, and Krieger (1988, p. 67) asserted that international marketers need to understand these [CO] images as they relate both to their own, and to their competitors’ products. Specifically, they will need to determine whether such images are positive or negative, whether and how they affect behavior, and how they can be catered to in the marketing strategy. Yet, few multinational marketers and advertisers make full use of their products’ favorable CO image or successfully overcome the liability associated with an unfavorable one.


Several reasons may account for the relative neglect of CO image as a competitive tool. First, the CO variable is culture-laden, and most managers are inadequately trained to address cultural issues despite significant research indicating that multinational marketing strategy is ill-served if cultural and perceptual differences among countries are not properly comprehended and heeded (Harris 1984; Kale 1991). Second, translating CO images into marketing communication opportunities is difficult because the relationship between the brand and its country of origin is potentially more distant than the relationship between the brand and its firm, store, or advertising. Third, Zinkhan and his colleagues’ observations about what constitutes effective measures for image manifestations and their current state of development are equally applicable to CO image measures (Dobni and Zinkhan 1990; Johnson and Zinkhan 1990; Villanova, Zinkhan, and Hyman 1990).


 


Hypothesis


The researcher intends to investigate the implications of country of origin principles of buying behavior among the consumers in the country of Dubai. This study intends to prove the following hypothesis:


“The concept of country of origin has no significant effect on the consumer behavior in the Dubai Market.”


 


Main empirical method


This study will be using a case study technique to isolate the occurrence of country of origin concept, particularly in the country of Dubai. The study will employ the descriptive research method, which uses observation and surveys. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study will use the descriptive approach.  This descriptive type of research will utilize observations in the study.  To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: Descriptive method of research is to gather information about the present existing condition.  The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.


The research described in this document is partly based on quantitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.


This study also employs qualitative research method, since this research intends to find and build theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements does not have standard measures, rather they are behavior, attitudes, opinions, and beliefs.


Furthermore, as we define the qualitative research it is multimethod in focus, involving an interpretative, naturalistic approach to its subject matter. This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena in terms of the meanings people bring to them. Accordingly, qualitative researchers deploy a wide range of interconnected methods, hoping always to get a better fix on the subject matter at hand.


 


Techniques


The general population for this study will be composed of randomly selected product consumers in Dubai numbering ninety (90). The researcher shall also conduct interviews to economists and market researchers in order to acquire an expert opinion regarding the country of origin concept in Dubai.


 


TIMETABLE


TASK


Month

 


1st


2nd


3rd


4th


5th


6th


7th


8th


9th


Select topic


 


 


 


 


 


 


 


 


 


Undertake preliminary literature search


 


 


 


 


 


 


 


 


 




  • Define research questions




  • Write-up aims and objectives




 


 


 


 


 


 


 


 


 


Select appropriate methodology and locate sources of information. Confirm access.


 


 


 


 


 


 


 


 


 


Write-up Dissertation Plan


 


 


 


 


 


 


 


 


 


Undertake and write-up draft critical literature review.


 


 


 


 


 


 


 


 


 


Secondary and Primary Data Detailed




  • Sources




  • Consulted




 


 


 


 


 


 


 


 


 


Research Findings:




  • Analyzed




  • Evaluated




  • Written-up




 


 


 


 


 


 


 


 


 


Discussion:




  • Research findings evaluated and discussed in relation to the literature review




 


 


 


 


 


 


 


 


 


Methodology written-up


(including limitations and constraints)


 


 


 


 


 


 


 


 


 


Main body of the report written-up and checked for logical structure


 


 


 


 


 


 


 


 


 




  • Conclusions drawn




  • Recommendations made




 


 


 


 


 


 


 


 


 


Introduction and Executive Summary written-up


 


 


 


 


 


 


 


 


 


Final format and indexing


 


 


 


 


 


 


 


 


 


Print


 


 


 


 


 


 


 


 


 


 


 


References:


Bilkey, Warren J. (1993), “Foreword,” in Product-Country Images: Impact and Role in International Marketing, Nicolas Papadopoulos and Louise A. Heslop, eds., New York: International Business Press, xix-xx.


Creswell, J.W. (1994) Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage.


Dobni, Dawn and George M. Zinkhan (1990), “In Search of Brand Image: A Foundation Analysis,” in Advances in Consumer Research, 17, Marvin E. Goldberg, Gerald Gorn, and Richard W. Pollay, eds., Provo, UT: Association for Consumer Research, 110-119.


Ettenson, Richard, Janet Wagner, and Gary Gaeth (1988), “Evaluating the Effect of Country of Origin and the ‘Made in USA’ Campaign: A Conjoint Approach,” Journal of Retailing, 64 (Spring), 85-100.


Han, C. Min (1990), “Testing the Role of Country Image in Consumer Choice Behavior,” European Journal of Marketing, 24 (6), 24-40.


Han, C. Min., & Vern Terpstra. 1988. Country-of-origin effects for uni-national and bi-national products. Journal of International Business Studies, 19 (2): 235-55.


Harris, G. (1984), “The Globalization of Advertising,” International Journal of Advertising, 3 (August), 223-234.


Hooley, G. J., David Shipley, and Nathalie Krieger (1988), “A Method for Modelling Consumer Perceptions of Country of Origin,” International Marketing Review, 5 (Autumn), 67-76.


Huber, Joel and John McCann (1982), “The Impact of Inferential Beliefs on Product Evaluations,” Journal of Marketing Research, 19 (August), 324-333.


Johansson, Johny K. (1989), “Determinants and Effects of the Use of ‘Made In’ Labels,” International Marketing Review, 6 (January), 47-58.


Johansson, Johny K., Susan P. Douglas, and Ikujiro Nonaka (1985), “Assessing the Impact of Country Of Origin on Product Evaluations: A New Methodological Perspective,” Journal of Marketing Research, 22 (November), 388-396.


Johnson, Madeline and George M. Zinkhan (1990), “Defining and Measuring Company Image,” in Developments in Marketing Science, 13, B. J. Dunlap, ed., New Orleans, LA: Academy of Marketing Science, 346-350.


Kale, Sudhir H. (1991), “Culture-Specific Marketing Communications: An Analytical Approach,” International Marketing Review, 8 (2), 18-30.


Olson, Jerry C. (1977), “Price as an Informational Cue: Effects on Product Evaluations,” in Consumer and Industrial Buying Behavior, Arch G. Woodside, Jagdish N. Sheth, and Peter D. Bennett, eds., Amsterdam: North-Holland Publishing Company, 267-286.


Papadopoulos, Nicolas (1993), “What Product and Country Images Are and Are Not,” in Product-Country Images: Impact and Role in International Marketing, Nicolas Papadopoulos and Louise A. Heslop, eds., New York: International Business Press, 3-38.


Villanova, Lisa, George M. Zinkhan, and Michael R. Hyman (1990), “On Defining and Measuring Store Image,” in Developments in Marketing Science, 13, B. J. Dunlap, ed., New Orleans, LA: Academy of Marketing Science, 346-350.


Yoo, Yangjin (1992), “Country of Origin Effect: The New Conceptualization and Alternative Models,” in Enhancing Knowledge Development in Marketing, 3: 1992 AMA Educators’ Proceedings, Robert P. Leone and V. Kumar, eds., Chicago: American Marketing Association, 28-35.


 


 


 


 



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