The Influence of Country of Origin Image on Brand Equity Formation (Case study: Mobile phone and Laptop)

The purpose of present research is to decompose the concept of country of origin image and exploring of country of branding and country of manufacture effect on brand equity formation in multi-national products. The research methodology is of survey type, using correlational method. According conceptual framework two product categories (Laptop and Mobile phone and two brand in each category) and two countries (country of branding and country of manufacture) were selected as the cases. Relationship between construct for each country are hypothesized and data are collected by questionnaire. Each of 602 respondents evaluated different combination (country of branding and country of manufacture) for each two product categories. Research hypotheses are tested using structural equation modeling in LISREL. Result show that unlike country of manufacture, country of branding have direct and significant influence on brand loyalty, perceived quality and brand association/ awareness. Also brand loyalty and perceived quality effect on overall brand equity approved. Expect brand country direct and positive influence on overall brand equity, mediating role of brand loyalty, perceived quality and brand association/awareness between them were supported. Manufactures should emphasize on brand loyalty. Also they should concentrate on brand country and guide their consumers to that.