do south korean companies need to obscure their.pptx a case solution
TRANSCRIPT
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Do South Korean companies need
to obscure their
country-of-origin image?: A case ofSamsung
Professor( Dr) Avinash Kapoor
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Statement of the problem
To investigate dissimilar effects of the country
image on consumers brand image and
purchase intention by differently perceived
nationality groups.
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Why
It is critical for emerging companies like
Samsung to understand whether or not using
the masked country image has any benefits to
its image and selling.
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THEORY/ CONCEPT
What is Brand Image:
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What is Country Image:
The total of all descriptive, inferential, and
informational belief about a particular
country
Even though country image can be formed
from past experience of using a product in a
given country, Country image is different from
product image or attitude toward the product.
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Country Image
Only when the product is evaluated as
derivation of country image, it is counted as
country image.
Evaluating the effect of country image on a
specific brand becomes complex in this
context.
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ANALYSIS
It is very hard to differentiate the product
image from the country image.
Some Korean companies have not actively
publicized the nationality of the product in
case obscuring the country-of-origin (COO)
plays a positive role in building favorable
brand image and reinforcing purchaseintention.
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Contd
Samsung is a Korea-based company
Electronics market is highly competitive.
There are giant multinational makers such asSony, Panasonic, JVC, Magnavox, and Toshiba.
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When the company has a mediocre
country-of-origin image or no COO,
Does obscuring COO have a positive impact on
consumers purchase intention?
Are consumers wise enough to check the COO
of the product before their purchase decision?
Is there any backlash for cheating consumers
about COO?
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Terms
COO: country of origin: Image of product orthe country that people believe it comes fromhas on consumers perception of the
product. Just like company image, country image
evokes certain values, qualifications, andemotional triggers in consumers minds about
the likely values of any product that comesfrom that country.
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Terms: Theissue of COO image or the made-in
phenomenon
Is it the general belief about a particularcountry that is distinguishable from productimage.
OC: the place a consumer links a product with[(origin country (OC)]
DC: designed-in country (DC) to highlight the
country that the finished product wasdesigned.
MC: the place where it is actually produced.
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Terms
GCA: GENERAL COUNTRY ATTITUDE (Think
India, China, Europe, KOREA)
GPA: General Product Attitude (Electronic
items from china, India, Korea, Japan)
SPA: specific product attitudes: Specific
knowledge about marketing and product
attributes. (Yoga, Art, Painting, TV,
Refrigerator, cell phone)
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Terms
PCI: product-country image (PCI) this conceptsays that essence of country image lies inconsumers perceptions about products, not
in the actual made-in identification such asOC, MC, and DC
Say for example: If consumers perceive oneproduct as made-in China, the PCI of theproduct is China regardless of the real identityof the maker country.
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The cues:
internal and external, that a consumer usesto make the purchase decision
Internal cues, which are things such as taste,
design and performance etc. These are lesscontrollable
External cues such as brand, price, name, and
COO; more controllable. Country image is an external cue to the buyer,
which is used in the final purchase decision.
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What Consumers Do
Consumers may use country image as a halo,or sort of generalization, to evaluate theproducts if little is known about them.
Consumers might use a summary construct inproduct evaluations, meaning that a consumerwould store the brand information aschunks and retrieve them later when
needed to process information about otherproducts.
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Suggestions of possible solutions:
WHAT SHOULD BE DONE
Choose appropriate brand elements (brandname, logo, symbol, character, package, slogan).
Develop marketing programs (product, price,place, promotion).
Leverage secondary associations (companyimage, COO, competition, endorser, events).
All the above , as secondary associations fosterthe environment for creating strong, favorable,unique brand image and brand awareness thatultimately lead to the increment of overall brandequity ( Keller).
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Case in question: Evaluation of possible
solution
Obscure Origin Cues;
If a consumer is not familiar with a product, they,
in turn, make a general assumption about a
product in relation to the knowledge held about acountry or other products made in that country.
Companies that have inferior country image
especially tend to obscure, suppress, or borrowthe country image of superior countries.
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Contd.
Also, consumers use the country image to
infer product quality when they are not
confident about the product/service.
The low level of consumer knowledge
stimulates the use of the country image.
Thus, obscuring or borrowing the country
image can occur when consumers are not
familiar with products/services.
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Advantages/ Disadvantages
Country image has an impact on the
marketability of a product and at times can be
obscured when the countrys image is not
expected to contribute to the products
foreign sales or other products previously
marketed do not contribute to the general or
specific product image of the country.
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Contd..
A downplaying of the OC can disassociate the
product from the country.
Companies hide all possible indicators in
advertising that could allude to the harmfulcountry image.
An illustration of this concept is the Englishsounding names used for new models ofelectronics by Japanese car companies .
The suppression of origin identifiers ideallyassists in the global sales.
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CLASS OPINION: ????
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Advantages/ Disadvantages
Another route;
Overcoming a negative PCI is to borrow the image
of another country hoping the consumer will
use the halo or summary construct .
The image can be borrowed in various ways
such as in branding, packaging, and advertising.
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Example
Reebok, an American shoe company.
While a US company manufactures Reebok, it
uses the British flag as an emblem on the
tongue of the shoe, distinguishing it as
associated with the UK rather than America.
Reebok is borrowing the flag in hopes of the
consumer seeing it as a symbol of
distinction.
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CONCLUSION:
In the Samsungs case, the effort to increase the
country image of South Korea should be the firstagenda to enlarge the American market.
The consortium-type organization between thegovernment and companies can stage a nation-wide campaign to enhance the countrys image.
In fact, obscuring country image may have no
effect (maybe short-term gain is possible), but inthe long-term effect, promoting the accuratecountry image will contribute to market stability.
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Conclusion Contd.
In addition, it is also ethically problematic anddiscouraging to employees in view of workmorale.
Korean companies such as Samsung, Hyundai,and Daewoo have been marketing overseas butare still not thought of as high quality. Korean
products are commonly thought of as a good
value but product quality, in the eye of theconsumer, is still in question, especially in relationto Japanese products.
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Contd.
The real problem is the effect of country stereotype.Stereotyping the country image establishes theconsistency in mind and reinforces the bias.
Developing countries such as Thailand, China, Taiwan,
Brazil, and India etc have the same dilemma in theirexporting strategies of different products. In somecases, they try to borrow other developed countries
images or obscure their country image (for example,
consumers can easily see many different country labelsby design, material, and manufacturer).