Study of the Relationship between the Country of Origin and the Brand Equity Case Study: Grad

To investigate consumer attitudes in Iranian market towards local brand names, against a background of increasing prevalence of foreign brand names and stereotypes of countries of origin covering the range from positive to negative. A structured questionnaire administered face-to-face to 137 consumers in the shopping center of Gerad wearing store. Attitudes to country of origin categorized as cognition, design, creativity and quality aspects of Iranian products. Five points Likert scale was used to collecting data. Regression analysis was conducted for analyzing customer`s answers. It was found that the image of country of origin has a positive relation with brand equity dimension includes brand distinction, brand loyalty and brand awareness, and there is a significant positive relation with brand equity dimensions with brand equity. The effect of brand equity dimensions on brand equity is more significant and stronger than merely effect of image of country of origin on brand equity.Research Limitations: getting access to the foreign consumers that use Grad wearing products was a limitation of this research. For better explanation of the research model it was better to investigate foreign consumers of this brand.Managerial Implication: The strategy of marketers of foreign brands in the Iranian market should be to position their products on attributes of technology and quality, rather than economy and value for money.Originality/value: Shows that ethnocentricity does not necessarily result in hostility to foreign brands.