The Impact of Country-of-Origin on Brand Positioning for Luxury Goods

Stoenescu Roxana-Denisa (), Căpățînă Gabriela () and Cristea Adina ()
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Stoenescu Roxana-Denisa: Bucharest University of Economic Studies
Căpățînă Gabriela: Bucharest University of Economic Studies
Cristea Adina: Bucharest University of Economic Studies

A chapter in Entrepreneurship, Business and Economics - Vol. 1, 2016, pp 467-483 from Springer

Abstract: Abstract Brand positioning for luxury goods requires creating unique and strong associations in consumers’ minds regarding upscale benefits and high social status. Country-of-origin has numerous implications on brand image perception, being an important positioning element. This paper’s purpose is to examine the impact of country-of-origin on brand positioning for luxury goods, for a more accurate understanding of how brand image can be affected by product provenance. We analyze the effects of the degree of fit between country image and the associated product category. Furthermore, through an exploratory research, based on investigation of secondary information as a data collection method, we emphasize the variation of favorable perceptions due to a brand’s perceived country-of-origin. We also highlight the effects that country image has on brand prestige, influencing consumers’ willingness to pay a premium price for the brand. The study explains how desired positioning can be achieved by leveraging country-of-origin characteristics to brand image. Main findings support previous research, showing how a favorable country image can reinforce brand positioning. Finally, we discuss the implications of brand origin for luxury goods in the era of global brands and offer recommendations for future research.

Keywords: Country-of-origin; Brand positioning; Luxury goods; Brand image; Country image (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-319-27570-3_35

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DOI: 10.1007/978-3-319-27570-3_35

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