A store brand’s country-of-origin or store image: what matters to consumers?

Abstract

Purpose The purpose of this paper is to assess the relative importance of country-of-origin (COO) and its dimensions – country of design (COD), country of technology (COT), and country of manufacture (COM) – in comparison to store image in terms of consumer product evaluation and purchase intention of store brands. The authors also explore consumer regulatory focus effects. Design/methodology/approach Empirical data were collected from 270 young Korean adults. Two scenarios were given using two high-involvement store brands, an electronic product and clothing product that have hedonic and utilitarian elements. Data analysis was conducted using AMOS structural equation modeling software. Findings COO affects product evaluation and purchase intention and store image affects purchase intention. By product, store image influences product evaluation and purchase intention (electronics). COO directly influences purchase intention (clothing). By COO dimensions, overall COD weakly affects product evaluation. COT affects electronic product evaluation but directly affects clothing purchase intention. Promotion-focused consumers use COO for product evaluation, with store image directly affecting purchase intention. Promotion-focused consumers consider COD, an affective dimension, and COM in product evaluations. Prevention-focused consumers did not consider COO, but consider store image for product evaluation. Prevention-focused consumers consider utilitarian COT and COM dimensions during product evaluation. Originality/value This is the first paper to consider the simultaneous effect of COO (and its dimensions) and store image on product evaluation and purchase intention. It is also the first to consider the regulatory focus theory with regards to COO and store image evaluative and purchase intention criteria.