The effect of country of origin on brand equity: An empirical study on generic drugs

Journal of Product & Brand Management 04/2011; 20(2):130-140. DOI: 10.1108/10610421111121125


Purpose – The purpose of this paper is to explore the impact of country of origin image on brand equity of branded generic drugs. Design/methodology/approach – Brand equity of branded generics is examined through an analytical review. Country of origin image is hypothesised to influence components of brand equity, i.e. brand strength and brand awareness, which in turn influence brand equity. An empirical investigation was carried out among professionally similar respondents, i.e. doctors of different categories in Kolkata megapolis, India. Findings – Results showed that country of origin image had a positive and significant effect on components of brand equity, i.e. brand strength and brand awareness, derived from factor analysis conducted on brand equity components. The result also showed that country of origin image of branded generics significantly, but indirectly, affected brand equity through the mediating variables, brand strength and brand awareness. Research limitations/implications – Different variables have influence on brand equity. This study dealt with only one type of variable, i.e. country of origin image, that may limit the total process of brand equity enhancement. Practical implications – Marketing actions should be implemented to enhance brand strength and awareness levels. Country of origin image should be assessed as a multidimensional concept for enhancing brand equity. Marketers should be aware of the fact that physicians are influenced by the brand's original country image. Originality/value – This research work has extended prior country of origin research by conceptualising the country of origin image as a brand equity enhancing tool in a new area called branded generic drugs.

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Available from: Shamindra Nath Sanyal, Jul 18, 2015
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    • "Consumers may choose brands originating in different countries based on their beliefs on the quality of that type of product from the respective country. Previous literature provides extensive support for country-of-origin effects upon consumer attitudes and product evaluations (Parkvithee & Miranda, 2012;Godey et al., 2012;Nath, Sanyal, & Datta, 2011;Johansson & Nebenzahl, 1986;Bilkey & Nes, 1982). "

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    • "Gil et al. (2007) clearly identified the relationships among the dimension of consumer-based brand equity based on the explanation of cognitive-affective-conative, which served as a justification for the establishment of structural parameter estimate that provided better explanation than some of the recent studies (e.g. Hess et al., 2011; Patwardhan and Balasubramanian, 2011; Sanyal and Datta, 2011). Secondly, they categorized the dimensions of brand equity with theoretical justification. "
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