Country-of-Origin Effects on Perceived Brand Positioning

A brand's country-of-origin can influence the brand's perceived positioning by reducing perceived risks, acting as a guarantee and enhancer for the positioning strategy. Thus it can influence consumers’ buying decision process and offer a significant competitive advantage. At the other end of the spectrum, country-of-origin associations can negatively affect the brand positioning strategy. Consumer perceptions regarding the brand's country-of-origin must concur with product category associations in order to avoid negative country-of-origin influences on the brand's perceived positioning. This article reviews the main country-of-origin moderating factors and analyzes their influence on consumers’ brand perceptions at a cognitive, affective and normative level. We explain country-of-origin effects on the buying decision process from the means-end-theory perspective. We further analyze the possible implications of country-of-origin moderating factors on brand positioning bases. Finally, we review the managerial implications of country-of-origin moderating factors on brand positioning strategy. We suggest further directions for enhancing positive country-of-origin associations, while minimizing negative associations and creating an optimal congruence between the country-of-origin and the brand positioning elements.