A flexible model of consumer COO perceptions - a cross-cultural investigation

Consumer country-of-origin

perceptions

127

International Marketing Review,Vol.17No.2,2000,pp.127-145.#MCB University Press,0265-1335

Received October 1998Revised April 1999Accepted June 1999

A flexible model of consumer country-of-origin perceptions

A cross-cultural investigation

Gary A.Knight Department of Marketing,College of Business,Florida State

University,Tallahassee,USA,and Roger J.Calantone

Department of Marketing,Michigan State University,

East Lansing,USA

Keywords International marketing,Country of origin,National cultures,Consumer behaviour,Japan

Abstract There is much research suggesting that the image consumers hold about a product's country of origin can influence their purchase decision,but little empirical work has focused on the underlying cognitive processing.A flexible model is devised and tested to represent country image processing,using data from large samples of US and Japanese consumers.In addition to strongly supporting the validity of the model,results suggest that country image cognitive processing is significantly more complex than previously thought,and that culture appears to play an important role in purchase decisions.The flexible model represents a substantive improvement in the depiction of cognitive processing regarding country-of-origin image.

Introduction

Country-of-origin image (COI)reflects a consumer's general perceptions about the quality of products made in a particular country and the nature of people from that country (Erickson et al .,1984;Han,1986,1989;Haubl,1996b;Parameswaran and Yaprak,1987).Generally,researchers have demonstrated that,when known to consumers,COI influences the evaluation of products in general,specific classes of products,and specific brands (Baughn and Yaprak,1993;Bilkey and Nes,1982;Liefeld,1993;Ozsomer and Cavusgil,1991;Samiee,1994).For example,most people are likely to evoke differing impressions of cars made in Germany and Russia;of men's suits made in Italy and Spain;or of VCRs made in Japan and Malaysia.If the stereotype is negative,it can impose formidable barriers for marketers attempting to enter a market or position products in an existing market.Alternatively,numerous firms have used positive COI to good advantage in the marketing of many types of goods (e.g.Germany and beer;Sweden and cars;Japan and micro-electronics)(Haubl,1996b;Johansson and Nebenzahl,1986;Liefeld,1993;Papadopoulos et al .,1988).

The authors wish to thank S.Tamer Cavusgil,Cornelia Droge,and Richard Spreng for their helpful comments on an earlier draft of this manuscript,as well as two anonymous IMR reviewers for their valuable suggestions.

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Yet,despite hundreds of studies on the COI effect,little is known about the cognitive processing that occurs during COI-based product evaluations. Indeed,Baughn and Yaprak(1993)note the paucity of work that integrates the COI literature with our knowledge of cognitive processing and attitude formation.Given the effect that COI can have on the marketing of domestically made products overseas and of foreign-made goods in the domestic market,it is important to understand the cognitive processing that underlies the attendant purchase decision.Given the twin trends of product and market globalization and the efforts of multinational firms to coordinate production platforms worldwide,that understanding is more necessary than ever before(Haubl, 1996a).

We extend knowledge of the COI/cognitive processing relationship by building on the research of Han(1986,1989).We refine Han's interpretation of COI cognitive processing and,in the process,reveal that his model may be partially misspecified.In contrast to much previous research,our study is conducted in two very different cultures using several samples.Our findings suggest that COI cognitive processing is considerably more complex than implied by virtually all previous studies,particularly in the context of high and low knowledge states.We devise a model which represents the associative processing of human cognition on COI with greater precision and which can accommodate,and reveal with greater clarity,the nature of cognitive processing in foreign cultures.The integration of COI studies with research on attitude formation may provide insights about how the origin cue affects attitude and the subsequent purchase of products.In what follows,we examine the COI construct and its linkage to studies of cognitive processing.We then introduce and test a model which provides a refined,conceptual explanation of the processing that occurs regarding COI.

Country-of-origin effects and cognitive processing

In the earliest investigation of the COI cognitive-processing link,Johansson et al.(1985)found that consumers with specific product knowledge,and hence high ability to evaluate a specific product,tend to rate products either more or less positively than do subjects with less knowledge.The authors concluded that research on COI effects should account for product experience and other factors affecting prior knowledge of imported goods.Papadopoulos et al.(1990) suggested that consumer perceptions of a given product's COI are based on three components:

(1)cognitions,including knowledge about specific products and brands;

(2)affect,or favorable attitudes about home country goods;and

(3)conations,which are related to ultimate purchase behavior and are

equivalent to the standard tripartite attitude model.

Hong and Wyer(1989)investigated the linkage between COI and cognitive processing modes under conditions of both impression formation and

Consumer country-of-origin perceptions 129comprehension.Their results support the information elaboration hypothesis,which predicts that COI may induce consumers to process other product attribute information more extensively,with COI-inspired affect transferring as a halo to other attributes of the country's product.They also investigated the linkage between the time interval of knowledge about a product's country of origin and information about its specific attributes (Hong and Wyer,1990).

Maheswaran (1994)and Chao (1993)showed that product knowledge and the

salience of various product attributes can affect cognitive processing.

One might expect that increased product knowledge would reduce reliance on the country cue,but studies have shown that the opposite tends to be true (Han,1989;Johansson et al .,1985;Johansson and Nebenzahl,1986).Johansson (1989)developed a model of COI cognitive processing in part to explain this phenomenon.He suggests that COI can act as a ``summary cue''used by consumers to encapsulate other product information in a way that reduces cognitive effort.He speculated that consumers may,depending on their circumstances,regard the country cue as a salient attribute of the product in question and that this attribute may influence the consumer through affective processes,as in the case of individuals who hold strongly patriotic feelings about their own country (Han,1988),or through behavioral intentions via processes such as social norms (Fishbein and Ajzen,1975).Johansson's (1989)model is an important accompaniment to the empirical work of Han (1989).

Han (1989)attempted to explain COI effects through the halo and summary construct models.The former is based on research suggesting that COI allows consumers to infer the quality of an unfamiliar foreign brand (Bilkey and Nes,1982;Erickson et al .,1984).This is similar to the role played by prices in helping consumers infer the quality of a product when other relevant information is lacking (Jacoby et al .,1971).Han's (1989)halo model,replicated in Figure 1,implies that COI directly influences product attribute beliefs,which in turn directly influence attitude toward the product;that is,a structural relationship of the form COI ?beliefs ?brand attitude.The halo model operates in consumers unfamiliar with the foreign product in question;that is,consumers with low product knowledge (Han,1989).

In contrast,Han's (1989)original summary construct model (Figure 2)implies that,among consumers possessing high knowledge about the

product

Figure 1.Halo model

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130stimulus,COI may serve to summarize beliefs about product attributes,directly affecting brand attitude;in other words,a structural relationship of the form beliefs?COI?brand attitude.The notion is consistent with work by Jacoby et al.(1971),who found that brand name can function as a summary cue into which consumers consolidate previously acquired product information.Other research also shows that nonbelief factors can serve as mediators of attitudes (Mitchell and Olson,1981).The summary construct view maintains that, because short-term memory has limited capacity,consumers tend to summarize or``chunk''information in a way that makes it easier to store and retrieve in long-term memory(Miller,1956).Accordingly,consumers already familiar with a country's products may abstract relevant information into the COI cue.When later confronted with a product from the same country that possesses attributes similar to those of the one originally abstracted in memory,the consumer may infer its quality by simply accessing the country cue.For example,if a Japanese possesses substantial knowledge about General Motors(US)cars and believes them to be of low quality,she/he may infer that Ford(US)cars are of low quality as well.

Our objective is to propose and test a new model of COI cognitive processing which is both comprehensive and flexible,and which extends and improves prior work by Han(1989).This``flexible model''is presented in Figure3and provides an all-encompassing explanation of attitude formation,allowing attitudes to be both directly and indirectly(through beliefs)influenced by COI. The model is similar to an earlier one proposed by Erickson et al.(1984). Hypotheses

The present study emphasizes the development and testing of a single unifying model capable of describing cognitive processing of the COI construct in a variety of purchase situations.The single flexible model(Figure3)is a dual antecedent framework and represents the associative processing inherent in human cognition.The model reflects our view that attitudes regarding foreign products are evoked,to the extent that country-of-origin information is known, as a function of the simultaneous processing of COI and specific product

PPIM

BLF

ATT

= product and people image measure

= beliefs measure

= attitudes measure

Figure2. Summary construct model(formative beliefs)

Consumer country-of-origin

perceptions

131

beliefs.The emergence of and weight given to COI and beliefs,in turn,are affected by such individual factors as product knowledge,product or country involvement,and country stereotypes (Maheswaran,1994).

In developing the flexible model,we considered both of Han's (1989)halo and summary construct models (Figure 1and Figure 2).The former implies that,in the case of low product knowledge,the effect of COI on attitudes is consistently mediated by product beliefs.The latter implies that,in the case of high product knowledge,the effect of product beliefs on attitudes is consistently mediated by COI.Both interpretations are questionable;in the low and high-knowledge cases respectively,they suggest that COI and beliefs cannot influence attitudes directly.In contrast,it is more probable that consumers use both COI (when known to them)and product beliefs simultaneously in varying degrees,regardless of the state of their knowledge.Simultaneous processing of beliefs and COI can readily be represented in the flexible model (Figure 3),as indicated by the coefficients g 2and b 1.Furthermore,it holds true,regardless of which contingency state ±high or low knowledge ±is in effect.In essence,the flexible model provides an all-encompassing explanation of attitude formation,allowing attitudes to be both directly and indirectly (through beliefs)influenced by COI.The model can also account for situational contingencies in cognitive processing as well as the evolution of such processing over time.Finally,the flexible model is more capable of portraying differences in attitude processing based on culture and other fundamental differences that characterize the consumer.For example,assuming that different nationalities give different emphasis to COI in shaping product preferences,the flexible model can accommodate these variations.

This discussion leads to the following hypotheses regarding the single flexible model.When a product's country of origin is known to the consumer.H1:COI is a significant antecedent of attitudes;H2:COI is a significant antecedent of product beliefs;

PPIM BLF ATT = product and people image measure = beliefs measure = attitudes measure

Figure 3.

Single flexible model

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H3:Product beliefs are a significant antecedent of attitudes. Furthermore,in light of research summarized earlier(Bilkey and Nes,1982;

Erickson et al.,1984;Han,1989;Jacoby et al.,1971;Miller,1956;Mitchell and Olson,1981;Monroe,1976),we expect:

H4:Under low-knowledge conditions,product beliefs influence attitudes significantly more than COI influences attitudes;

H5:Under high-knowledge conditions,COI influences attitudes significantly more than product beliefs influence attitudes.

Methodology

In addition to using formative indicators to measure beliefs in the summary construct model to replicate Han(1989)(Figure2),we also operationalize the construct with reflective indicators(Figure4).This is done in light of recommendations from several scholars that beliefs are more accurately modeled with reflective indicators,as opposed to the methodology followed by Han(e.g.Bagozzi,1982;Kumar and Dillon,1987).To maximize external validity of findings,study data were obtained from large samples of consumers in Japan and the USA.Before data collection began,interviews were conducted with US and Japanese students at universities in both countries.Also,a survey assessing familiarity with numerous product brands was performed among a sample38students in Japan.Based on this procedure,Germany was chosen as the foreign country of origin,automobiles as the product,and Mercedes Benz as the brand name.In addition,Toyota and General Motors cars were included to serve as controls and minimize potential demand and halo effects(Sawyer, 1975).Products were identified by well-known brand names to reflect real shopping situations and to allow respondents to elicit a broader schema of product-related information from memory.

Subsequently,an English-language questionnaire using7-point scales was created.One series of questions was anchored by strongly agree/disagree and asked subjects about their beliefs(shown as``Beliefs''in the models)for each of the car brands regarding six attributes:technically advanced,prestigious,good serviceability,good workmanship,economically priced,and good quality

PPIM

BLF

ATT

= product and people image measure

= beliefs measure

= attitudes measure

Figure4. Summary construct model(reflective beliefs)

Consumer country-of-origin perceptions 133overall.The first five attributes were obtained from previous studies based on a factor analysis of 14items in research concerning consumer attitudes in Japan and the USA (Han,1986;1988;Nagashima,1977;Parameswaran and Yaprak,1987).The final attribute (quality)was added to enhance the belief scale's overall measuring ability.

COI (shown as ``Country Image''in the models)was assessed using 14

indicators described in Parameswaran and Yaprak (1987),some of which

originally were culled from research on comparative marketing and cross-national consumer behavior (Bilkey and Nes,1982;Nagashima,1977),with the remainder devised by Yaprak (1978).The indicators were presented as statements regarding the people and products of the given country and anchored by strongly agree/disagree.Attitude toward the act of purchasing the various car brands from various countries (reflected as ``Attitudes''in the models)was assessed using a six-item scale (extremely unfavorable/extremely favorable).Knowledge of cars was measured with scales drawn from Brucks (1985).Subjects were asked to rate both their knowledge and familiarity with cars.In reliability tests,the scales attained Cronbach's alpha of 0.91in Brucks'(1985)study and 0.95in the present study.

The final questionnaire was then translated into Japanese based on the back-translation method suggested by Douglas and Craig (1983).It was first translated by a native-speaking professional translator and then reviewed for equivalence by a bilingual Japanese professor in Japan.The questionnaire was then translated back into English by a bilingual whose native language is English.Under the supervision of one of the authors,both translators then collaborated to refine the final version so that it was comprehensible to the native,while equivalent in meaning.It was then tested with Japanese students in Japan and the USA.Throughout the process,great care was taken to ensure that the English and Japanese questionnaires were functionally and semantically equivalent,especially regarding complex concepts such as attitudes (Douglas and Craig,1983;Malhotra,1991;Mullen,1995;Sekaran,1983).

To develop and refine study measures,data were collected from a separate sample of household subjects,following procedures recommended by Anderson and Gerbing (1988),Churchill,(1979),Douglas and Craig (1983),Gerbing and Anderson (1988),and Nunnally (1978).For this part of the study,600copies of the Japanese questionnaire were distributed to a large class,one copy per student,at a university in Tokyo.The students were instructed to distribute the questionnaires to randomly chosen households in their neighborhood (all students lived off campus),returning a few days later to collect the completed forms.The 349usable questionnaires returned reflect a response rate of about 58percent.Regarding respondents,the average age was 48years and 68percent were male.Forty-nine percent had a high school education or less,5percent had some college,and the remaining 45percent were college https://www.wendangku.net/doc/628257311.html,ing this data set,questionnaire scales were tested and refined into more parsimonious versions using confirmatory factor analysis following the approach of Anderson and Gerbing (1982).Specifically,

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134the data were analyzed using the EQS structural equations modeling software of Bentler(1992).The approach is similar to that employed in prior COI research by Haubl(1996a)and Papadopoulos et al.(1988).

To establish convergent and discriminant validity in the study measures,a measurement model reflecting causal relations among the observed variables and theoretical constructs was created and tested.The results,along with Cronbach's alphas as measures of reliability,are presented in Table AI in the Appendix.Two of the alpha scores are somewhat low(Nunnally,1978) probably reflecting complex product dimensions,but the associated scales otherwise achieved very satisfactory results in confirmatory factor analyses. We also elicited responses for all the questions in the Appendix for Japan/ Toyota and USA/General Motors as controls,but these results are not specifically reported for brevity's sake.We report on the results of responses regarding Mercedes cars from Germany only.

As shown in the Appendix,the measurement model attained adequate fit(w2 =524.9with293degrees of freedom;NFI=0.975;NNFI=0.987;and CFI= 0.989),with all measurement coefficients significant at the0.01level.In addition,Lagrangian multiplier tests revealed that no item loaded significantly on a construct for which it was not intended,reflecting satisfactory discriminant validity.Results for the control studies were similarly robust. The household data were used to analyze and refine the study measures.For the main study,data were collected from samples of consumers in the USA and Japan.The final Japanese questionnaire was administered to students at a university in Japan,resulting in310usable responses.The English questionnaire was administered a few months later to students at a US university,resulting in255usable responses.Statistical comparisons were made between the samples on such variables as age,sex,and school status. The average age of Japanese respondents was20years,while that of the US sample was22years.The Japanese sample consisted largely of males,while the US sample was almost evenly divided between males and females.Both samples consisted almost entirely of full-time students.

An important issue in cross-cultural research is that of choosing between samples that are representative or samples that are directly comparable across cultures.Households tend to be the most representative consumers but may vary in demographic terms.Students are not the most representative consumers,but they do provide similar matched samples.In our study, comparability across cultures was most desirable and thus we focused on the student samples.However,we also included the Japanese households sample, partially as a check on the student sample.

Results

All four of the models presented in Figures1,2,3,and4±the halo model,the formative summary construct model,the flexible model and the revised reflective summary construct model of Han(1989)±were tested using both the household and cross-cultural data sets described above.Full latent construct

Consumer country-of-origin perceptions 135models were estimated using EQS structural equations software (Bentler,1992).Chi-square and other statistics indicate the fit of estimated models as well as the strength with which one construct is causally related to another.The results of these analyses are presented for the Japanese household data (study 1)in Table I and the Japanese student data (study 2)in Table II,and the US student data (study 3)in Table III.The flexible,halo,and formative

summary construct models each were tested under both high-and low-knowledge conditions.Analysis under each knowledge state is a necessary test

of the flexible aspect of the flexible model and also allows for a complete test of the other models.

Table I.

Three models tested

with Japanese household data

(study 1)

Knowledge

High

Low

Flexible model

w 2=16.1df =17p 40.52

w 2=17.7df =17p 40.41

COI ?Attitudes g 20.130.37COI ?Beliefs g 1

0.500.78Beliefs ?Attitudes b 10.390.21n.s.Halo model

w 2=26.1df =17p 40.073

w 2=26.5df =17p 40.065

COI ?Beliefs g 1

0.480.68Beliefs ?Attitudes b 10.47

0.45

Summary construct model (formative beliefs)

w 2=22.9df =17p 40.15

w 2=23.43df =17p 40.14

COI ?Attitudes b 10.520.92g 1Beliefs ?COI

0.210.24

Note:All coefficients were significant at the 0.05level unless indicated n.s.

Table II.

Three models tested with Japanese student

data (study 2)

Knowledge

High

Low

Flexible model

w 2=28.93df =17p 40.04

w 2=23.69df =17p 40.13

COI ?Attitudes g 20.420.13n.s.COI ?Beliefs g 1

0.580.73Beliefs ?Attitudes b 10.09n.s.0.42Halo model

w 2=36.66df =17p 40.004

w 2=23.70df =17p 40.128

COI ?Beliefs g 1

0.730.75Beliefs ?Attitudes b 10.49

0.54

Summary construct model (formative beliefs)

w 2=28.93df =17p 40.04

w 2=23.18df =17p 40.14

COI ?Attitudes b 10.580.71g 1Beliefs ?COI

0.200.41

Note:All coefficients were significant at the 0.05level unless indicated n.s.

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Table IV presents tests for study 4,the reflective summary construct model (Figure 4).As portrayed in the table and in contrast to Han's (1989)summary construct model (Figure 2),in which beliefs indicators are depicted without error and as directly antecedent to COI,the beliefs construct in the revised model is explicitly measured with its own reflective indicators and associated error,and is antecedent to COI (Bagozzi,1982;Kumar and Dillon,1987).In all,we assessed six models ±the flexible,halo,and formative summary construct models,each tested for the high-and low-knowledge states.These were tested for each of the three respondent groups.

Table III.

Three models tested with US student data (study 3)

Knowledge

High

Low

Flexible model

w 2=37.2df =17p 40.003

w 2=10.5df =17p 40.88

COI ?Attitudes g 20.14n.s.0.18COI ?Beliefs g 1

0.640.53Beliefs ?Attitudes b 10.280.32Halo model

w 2=37.4df =17p 40.003

w 2=12.92df =17p 40.74

COI ?Beliefs g 1

0.620.55Beliefs ?Attitudes b 10.41

0.43

Summary construct model (formative beliefs)

w 2=37.2df =17p 40.003

w 2=10.5df =17p 40.88

COI ?Attitudes b 10.580.78g 1Beliefs ?COI

0.320.29

Note:All coefficients were significant at the 0.05level unless indicated n.s.

Table IV.

Summary construct model (reflective beliefs)(study 4)

Knowledge

High

Low

Study 1:

Japanese household data w 2=18.6df =18p 40.41

w 2=28.15df =18p 40.06

COI ?Attitudes 0.550.40Beliefs ?COI 0.800.57Study 2:

Japanese student data w 2=29.37df =18p 40.044

w 2=28.65df =18p 40.053

COI ?Attitudes 0.480.52Beliefs ?COI

0.590.80Study 3:

US student data w 2=40.92df =18p 40.002

w 2=16.98df =18p 40.53

COI ?Attitudes 0.350.36Beliefs ?COI

0.68

0.56

Note:All coefficients were significant at the 0.05level unless indicated n.s.

Consumer country-of-origin perceptions 137Findings regarding the summary construct model reveal that,in five of the six model cases,the fit of the formative beliefs model of Han (1989;Figure 2)is superior to that of the revised reflective model represented in Table IV.Thus,Han's formative beliefs formulation is relatively well confirmed.Overall chi-square statistics indicate that the fit of the flexible model is equal to or better than the fits for both the halo or summary construct models (study 1in Table I).

Indeed,the fit of the flexible model is markedly superior to that of the others.

With regard to fit,in the low-knowledge condition,the flexible model achieves the best performance of any model in all three studies.In the high-knowledge condition,the flexible model consistently outperforms Han's (1989)halo model,exactly ties Han's (1989)summary construct model for the two student studies and is superior to the summary construct model in the Japanese household study.On overall fit measures,the flexible model consistently outperforms the halo model in those situations (low knowledge)for which the halo model was originally intended,and never does worse than the summary construct model (Han,1989)under high knowledge.Thus,in light of these findings and the other advantages noted above,the flexible model appears to represent COI cognitive processing reasonably well.

We now address findings regarding the relationships among the flexible model's latent constructs for each of the data sets.All the coefficients depicting the linkage between observed variables and latent constructs (l s)are,for the flexible model in each study,significantly different from zero at the 0.05level,with the smallest l being 0.59.This outcome confirms the earlier finding of substantial convergent validity in the construct measures.Regarding linkages among the constructs themselves,in most cases across all three data sets,parameter estimates for the flexible model are significant at the 0.05level.Moreover,as shown in Table V,the total effect of COI on attitudes tends to be significant in both the high-and low-knowledge conditions.

These findings provide strong support for H1,H2,and H3.That is,whether modeled in the high-or low-knowledge condition,COI tends to be a significant antecedent of attitudes and beliefs;and beliefs are a significant antecedent of attitudes.

However,the flexible model provides a mixed set of results across all three data sets.The following observations concern the flexible model (Figure 3)in the low-knowledge condition.In each sample the effect of COI on beliefs is substantial and highly significant.The total indirect effect of COI on purchase attitudes is large for all three studies,but there are differences in direct effects.

Table V.

Standardized total effects of COI on

attitudes

Knowledge

High

Low Study 1:Japanese household data 0.4030.432Study 2:Japanese student data 0.4730.440Study 3:US student data

0.316

0.350

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138For study1(Japanese households),the direct effect of COI on attitudes is substantial and statistically significant,while the direct effect of beliefs on attitudes is not.In study2,COI has no significant direct effect on attitudes,but the influence of beliefs on attitudes is highly significant.Results in study3(US students)are similar to those of study2(Japanese students)except that the effect of COI on attitudes,while small,is statistically significant.H4,which states that beliefs influence attitudes significantly more than COI influences attitudes under low knowledge,is strongly supported in both study2and study3,and moderately supported in study4in which Han's(1989)summary construct model was recast using reflective beliefs.In study1,however,the opposite outcome emerges as COI strongly influences attitudes,while the linkage with beliefs is insignificant.

Results for the high-knowledge condition in the flexible model reveal that,in study1(Japanese households),COI has a small but significant direct effect on attitudes,it has a very significant effect on beliefs,and beliefs have a significant effect on attitudes.In study2(Japanese students),a very different picture emerges.The direct effects of COI on attitudes and beliefs,as well as the indirect effect of COI on attitudes are all highly significant,and the direct effect of beliefs on attitudes is small and insignificant.Study3(US students)yields yet a third result.The direct effect of COI on attitudes is not significant,but the direct effect of COI on beliefs and of beliefs on attitudes are both significant, with the first of these two being particularly high.Finally,the indirect effect of COI on attitudes is very substantial.H5states that,under high knowledge,COI influences attitudes significantly more than beliefs influence attitudes.The hypothesis is strongly supported in study2(Japanese students)but is not supported in the other studies.Indeed,for each of studies1,2,and4,the parameter coefficients are actually opposite the predictions.Hence,the results for H4and H5are mixed.

In the aggregate,the total effects of COI on purchase attitudes appear to be substantial.Nonetheless,our results suggest very distinct processes underlying the thinking patterns of the various respondent groups.On the one hand,particularly striking are the divergent results under both knowledge conditions between Japanese households and students.The diversity of results shows that the flexible model is quite robust in detecting differences among cross-cultural respondent groups.Two-group structural equations models testing(Bentler,1992;Hayduk,1987),comparing the results of studies2and3, confirmed the statistical significance of the noted differences in each case. Furthermore,and more important,results for the flexible model imply that different cultures rely on the same cues for attitude formation but process them differently.

Discussion and managerial implications

Han(1989)modeled COI and beliefs as operating independently on product attitudes,depending on the consumer's knowledge state.Our findings suggest that both COI and beliefs simultaneously influence attitudes,under both low-

Consumer country-of-origin perceptions 139and high-knowledge conditions.In addition,the flexible model appears to be a more accurate depiction of the complex processing that occurs during thinking about imported goods.Furthermore,the robust,network nature of the flexible model as well as the significant divergence in results between the two Japanese samples shows that COI cognitive processing is considerably more complex than implied by earlier studies (e.g.Bilkey and Nes,1982;Erickson et al .,1984;

Han,1989).

An interesting consistency in the results is that of beliefs,which are strongly influenced by COI regardless of the respondents'degree of product knowledge.The finding implies that Han's (1989)summary construct model may be misspecified.Moreover,both the low-knowledge US and Japanese student samples tend to use beliefs,with little use of COI,to infer product attitudes.This outcome weakens Han's (1989)halo model interpretation.Overall,while Han's (1989)findings may hold some value in explaining COI effects,further research is clearly needed.

In contrast,the flexible model presents a unified approach to understanding consumer use of COI information in forming purchase attitudes.In the presence of strong group differences in situational buying and product knowledge,the use of multiple samples over two cultures indicates the robustness and sensitivity of the flexible model.Moreover,it can accommodate differences in attitude processing based on culture.The findings reveal that the model represents the flexible,associative processing inherent in human cognition with greater precision and explanatory power than previous work in this realm.To the extent that consumers are sensitive to country-of-origin information,the flexible model implies that attitudes are,to a very substantial degree,the result of simultaneous processing of product beliefs and COI.Specifically,buyers possessing substantial product knowledge tend to form attitudes based on both product beliefs and COI.Results for the low-knowledge case are less clear but still roughly consistent:attitudes seem to be based largely on the COI stereotype,with beliefs playing a less definitive role.In the main,the flexible model seems to be a substantial improvement in the modeling of COI and beliefs in the formation of purchase attitudes.

Two basic questions remain to be addressed.First,what can account for differences in responses between the Japanese and US samples?Second,why are responses of Japanese households different from those of Japanese students?Answers to these questions are undoubtedly rooted in differences in the basic cultures of Japan and the USA.Research from anthropology,sociology,and other domains suggests that Japanese and US purchase behaviors vary in numerous ways (e.g.Hall and Hall,1987;Reischauer,1995).Much of Japanese buying emphasizes not only needs satisfaction but also complex motives,such as display,power and prestige,repayment,social obligations,investment in future favors,and the intense desire to maintain societal harmony (Herbig,1995;Reischauer,1995;Tobin,1992).

Herbig (1995)has pointed to numerous factors that distinguish consumers in Japan from those in the USA and other Western countries.In general,the

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140Japanese consumer desires to maintain oneness with a particular peer group,is less sensitive to pricing,tends to rely on word-of-mouth product recommendations from peers,dislikes hardsell promotion approaches,is treated more respectfully by merchandisers,expects high-quality products,and tends not to complain about negative product experiences.Aaker and Maheswaran(1997)recently showed that the collectivist nature of Japanese consumers tends to distinguish them from the individualist character of consumers in the USA.

As for differences between the responses of Japanese households and students,we note that the latter sample was82percent male compared to68 percent for the household sample and49percent for the US sample.Thus,some differences in the results may be due to gender-based factors.For example, Hofstede(1984)found that Japan is a strongly masculine society,with males attaching more importance to``showing off,''``performing,''and appearing self-confident.Hence,relative to other cultures,Japanese men may tend to think they know more about cars than they actually do.Such a cultural trait could influence the manner in which high-knowledge Japanese students process COI information.Other scholars also emphasize gender influences in the purchase patterns of Japanese consumers(Herbig,1995;Tobin,1992).

Overall then,COI does influence purchase intentions.Our findings reveal considerable external validity in that we have assessed key relationships in two very different cultures.Thus,in light of our findings and those of other scholars in foreign settings(e.g.Bannister and Saunders,1978;Nagashima, 1977)we can conclude that the linkage between COI and purchase intentions appears likely to hold throughout the world.Managers must design products and associated marketing accordingly.Where a COI is perceived as negative, the producer must minimize any reference to the origin country and may need to engage in substantial promotional efforts in order to overcome embedded stereotypes.

Additional findings suggest that the role of COI is substantially more complex than has been suggested in previous research.Managers must consider COI in combination with specific product beliefs,such as beliefs regarding quality and pricing.Consumers consider products within the framework of a``neural network''of attributes and associations.It is likely,for example,that sufficient quality and/or sufficiently attractive pricing could,in some settings,permit the buyer to overcome a negative COI.It is also likely that where COI perceptions are sufficiently positive,the exporter may be able to command premium prices.

Similarly,positive COI images may attenuate negative perceptions of other product attributes,such as high prices or lower quality.In the cross-cultural context,buyers are likely to elicit a variety of associations in the purchasing process.

Findings also suggest that COI is an important antecedent to product attitudes regardless of the buyer's specific product knowledge.It appears that product knowledge influences the extent to which COI is relied upon to infer

Consumer country-of-origin perceptions 141product quality,but definitive statements regarding the specific role of high and low knowledge do not follow from our results.That is,it cannot be categorically stated that high-or low-knowledge states about a given product will be associated with a particular degree of reliance on the COI cue for reaching a purchase decision.This outcome contrasts with earlier findings of Han (1989).

Our findings suggest the product knowledge/use-of-COI relationship is

complicated,particularly across foreign cultures,and merits further scholarly inquiry.They also imply that the role and use of specific product knowledge can vary significantly across cultures.

An important limitation of this study is that the questionnaires obtained data at a single point in time.Although we used structural equations modeling which can overcome most of the disadvantages of survey-based designs (Bagozzi and Yi,1989),the results are generally less robust in studies investigating linkages such as those explored here.Future research may benefit from the use of experimental designs that can model causally related constructs with respect to temporal sequencing of events,that is,longitudinal research.

In addition to further examination of the general processes associated with COI cognitive processing,future scholars may want to delve more deeply into the cultural factors that give rise to specific purchase cognitions among people in various nations.It is likely,as suggested here,that culture plays a large role in consumer behavior.One area of potential interest is peer pressure and other societal influences relevant to the subjective norm of Fishbein and Ajzen (1975).Fishbein is perhaps the leading proponent of the view that,in addition to beliefs,social pressures can play a critical role in the formation of purchase attitudes.It is expected that the subjective norm plays an especially large role in cultures that strongly emphasize social discipline and group conformity (Hall and Hall,1987;Hofstede,1984).Its role should be investigated in future research.

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Appendix

Construct item

Standardized

coefficient SE t-value

Cronbach's

alpha

COI±People0.86 People are well educated0.7250.05513.23 Emphasis on technical/vocational training0.7750.04915.66

People are hard working0.7610.06012.69

People are creative0.5960.0639.53

People are friendly and likable0.4740.0657.35

Technical skills of work force are high0.8120.05514.86

Country actively participates in international

affairs0.6370.05910.76

People are motivated to raise living standards0.6600.05711.65

People produce highly technical products0.7690.06012.79

COI±Products0.55 Products made with meticulous workmanship0.7400.06411.51

Products are distributed worldwide0.4910.0707.03

Products need frequent repairs(reversed poles)0.2770.070 3.97

Products are long-lasting;durable0.6440.0748.65

Country is friendly in international affairs0.3750.061 6.17

Beliefs0.67

In general,Mercedes Benz(Toyota,General

Motors)cars made in Germany(Japan,the USA)

are...

technically advanced0.7750.06312.21 prestigious0.4850.0578.48

of good serviceability0.4780.084 5.67

of good workmanship0.8550.07311.71 economically priced0.3620.098 3.70

of good quality overall0.9690.06614.76

(continued)

Table AI. Measurement model and confirmatory factor analysis

Consumer country-of-origin

perceptions

145

Construct item

Standardized coefficient

SE t -value

Cronbach's alpha Attitudes

0.90

Suppose Germany,Japan,and the US had a car equal in ______,what would be your attitude toward purchasing a car from each of the following countries (Germany,Japan,USA)?(extremely unfavorable/extremely favorable)technical advancement 0.7190.0789.22prestige

0.8090.07710.51workmanship 0.8580.06513.29price

0.8050.07311.03serviceability 0.8510.06812.51overall quality

0.8120.06412.69

Notes:All t -values were significant at the 0.01level

All scales were anchored by ``strongly agree/strongly disagree''except as noted Model fit:Chi-square =524.9

293degrees of freedom

Bentler-Bonett Normed Fit Index =0.975Bentler-Bonett Nonnormed Fit Index =0.987Comparative Fit Index =0.989

Table AI.

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