Country of Origin Image and Brand Equity Formation of Electronic Goods

The main purpose of this study is to investigate the influence of country of origin image on consumer based brand equity formation. Moreover, the second aim of this research is to examine the moderating role of product related consumer intellectual involvement. For these purposes, a conceptual framework has been designed and relationships among its constructs (i.e. country of origin image, brand equity dimensions and overall brand equity) have been hypothesized. Data has been collected using questionnaire from 602 college students who were the owners of the selected brands of laptop and mobile phone. Hypotheses have been investigated by regression and subgroup correlation analysis. Findings of exploratory factor analysis denote three factors of brand loyalty, perceived quality and brand association/awareness as brand equity dimensions. Findings have confirmed that country of origin image has direct and significant influence on brand equity dimensions and overall brand equity. Also, moderating effect of product related consumer intellectual involvement on the relationship between country of origin image and brand loyalty has been confirmed. This paper is important since it not only facilitates identifying the factors influencing brand equity formation, but also underlines the influence of product related consumer intellectual involvement from the viewpoint of Iranian consumers.