Edited by Subhash C. Jain and David A. Griffith
Chapter 3: Promoting Products from Developing Countries: Roles of Brand Name and Spokesperson
Yeqing Bao, Shi Zhang and James T. Simpson INTRODUCTION The globalization of the world economy has led to a substantial increase in the number of firms from developing countries entering the US market. Many of these firms from developing countries such as China, India and Mexico tend to focus on competitive prices. Nevertheless, these firms also must develop effective promotion strategies for their product offerings. Since most existing studies focus on how US companies should promote products in other countries, the marketing literature provides little guidance for firms from developing countries that plan to promote their products in the US market. This study advances the literature by investigating the roles of the brand name and spokesperson in moderating the impact of country-of-origin information on product evaluation in the US market for firms from developing countries advertising in the American market. BACKGROUND Country-of-Origin Effect Researchers recognize the influence on consumer product evaluation of the product’s country-of-origin (COO) information (e.g. Bilkey and Nes, 1982; Chuang and Yen, 2007; Hong and Wyer, 1990). At the most basic level, COO refers to the place in which the product was manufactured. Yet the COO concept has been extended to encompass the country of design, the country that assembled the product, or the country that houses the brand’s headquarters (e.g. Agrawal and Kamakura, 1999; Chao, 1993). Moreover, the COO literature reports that despite productspecific variations, consumers in developed countries often hold less favorable views of products produced in developing countries. For instance, Johansson and Nebenzahl (1986)...
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