Understanding the Relation between Country Image and Consumer Brand Equity

868 Words Jan 26th, 2018 4 Pages
Second, firms in developed countries start to shift the production lines to other countries to benefit from the cheap labor and low transportation cost. Finally firms sell their products in other countries for strategic reasons economy of scale. Putting into consideration the importance of brand equity as an asset for firm and also it is a source of competitive advantage a firm can rely on in marketing its products, So it is important for the marketers to understand the relationship between country image and brand equity before changing the production to other countries. (Pappu, Quester, Cooksey, 2007). The macro and micro images are considered two dimensions of country image. Consumers macro and micro country image can affect the equity of the brand produced in that country usually for a selected product category in a certain market. Country image has an impact on the brand equity dimensions (Brand associations, Perceived quality and Brand loyalty). (Pappu, Quester, Cooksey, 2007). Images and associations that are shared between brands from the same country is defined as country equity, it is derived from the linkage of the product with the country and as an example is Japanese brands…
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