Lyn S. Amine, Mike C.H. Chao, and Mark J. Arnold
Executive Summary
Since the war in Iraq in 2003, consumers in many countries have shunned U.S. products, and U.S. consumers have responded with anger toward particular countries, boycotting, for example, goods made in France. These events illustrate the importance of country-of-origin (COO) effects—the “Made in” label—and associated feelings of animosity. Amine, Chao, and Arnold present two case studies that demonstrate how negative COO effects and animosity can be managed. The first profiles the government of Taiwan’s advertising campaign over many years to improve its country image. The second features Acer, the world’s leading personal computer producer, and its use of various international marketing strategies in Japan, the United States, and China to combat negative COO effects.
The article is organized around four strategy propositions. First, COO effects are contingent on relative differences between countries’ stages of economic development. Acer suffered a poor COO image while competing in developed markets, yet it is now enjoying a favorable COO in the newly industrialized country, China. Second, ethnocentrism leads to consumers’ preferring to purchase products that are made in their home country, followed by products made in countries with similar cultural values. Although Acer suffered from low brand awareness in China, consumers now view Acer as both more “international” than local competitor brands and more “local” than international brands.
Third, although high levels of animosity should be expected between Taiwan and China, Acer has not been hurt directly. This is attributed to Acer’s COO advantage of shared Chinese cultural values and greater animosity among some Chinese toward Japanese and American competitors. Acer’s products are regarded as the “least foreign” because they are manufactured locally and are labeled “Made in the PRC.” Fourth, it is recommended that a firm use a range of marketing strategies to mitigate negative COO and animosity effects. After early failures of strategies based on anonymity and low-price positioning in Japan and the United States, Acer is now gaining success in China by using brand-name and COO marketing strategies. Acer has also benefited from the inclusion of its brand name in Taiwan’s national advertising campaign.
By exploring the two case studies—Taiwan’s image campaign over more than 14 years and Acer’s market entries abroad—Amine, Chao, and Arnold illustrate the contingent nature of both COO and animosity, and they provide practical guidance in managing negative COO and animosity effects to advantage.
Biography
Lyn S. Amine has a Bachelor of Arts in French Language and Literature with a minor in Spanish Language and Literature, and a Master of Arts in French Language and Literature from Sheffield University in Britain. She also has a Master of Science in Administrative Sciences from City University Graduate Business Centre in London and the diploma of the Paris Chamber of Commerce and Industry. Her doctoral degree in Export Marketing is from the University of Bradford Management. Lyn is Professor of Marketing and International Business at Saint Louis University. She is also Distinguished Fellow of the Academy of Marketing Science and has received two Senior Fulbright Scholar awards for teaching and research in Bahrain and Morocco. Her professional experience is in advertising and export consulting, and her research focuses on developing countries. Lyn has held such elected leadership positions as President of the Faculty Senate of Saint Louis University, President of the Women of the Academy of International Business, and Member of the Board of Governors of AMS; she currently serves on the editorial boards of Journal of International Marketing, Thunderbird International Business Review, and Journal of Asia-Pacific Business. Lyn has published more than 60 articles in Journal of International Marketing, International Business Review, Multinational Business Review, International Marketing Review, Journal of the Academy of Marketing Science, Journal of Business Research, Journal of Euromarketing, Journal of International Management, Thunderbird International Business Review, and Place Branding. Her current research interests are cross-cultural consumer marketing, country image, and sustainable development.
Mike C.H. Chao is originally from Taiwan and is a doctoral candidate in International Business and Marketing at Saint Louis University. He received his MBA from the University of Missouri–Columbia in 2001. Mike teaches International Marketing and Introduction to International Business courses at the undergraduate level at University of Missouri–Saint Louis and Saint Louis University. His current research interests include the resource-based view of the firm, knowledge management, country-of-origin effect, and e-commerce. Mike has published in International Marketing Review. In addition, he has coauthored and has presented papers at international conferences of the Academy of International Business, American Marketing Association, Association for Global Business, and Academy of Marketing Science.
Mark J. Arnold is Associate Professor of Marketing in the John Cook School of Business at Saint Louis University. He received an MBA from the University of Missouri and a doctoral degree in Marketing and International Business from Saint Louis University. He teaches a variety of courses at the undergraduate, graduate, and executive levels at Saint Louis University. Before joining the John Cook School of Business, he taught at University of Central Florida and University of Missouri at St. Louis. He actively researches consumer behavior in domestic and global marketplaces, focusing on customer satisfaction and loyalty in retail and service industries. He has published articles in Journal of Marketing, Journal of Retailing, Journal of Business Research, Journal of Personal Selling & Sales Management, Journal of Services Marketing, and Journal of Interactive Marketing, among others. He is active in academic conferences and also serves on the editorial board of a scholarly journal. He has consulted on satisfaction and loyalty in technology industries and has prior industry experience working at the Federal Reserve Bank of St. Louis.
Journal of International Marketing, Vol. 13, No. 2, June 2005
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