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Country-of-origin effects in entrepreneurial context : a quantitative study in Serbia and the Netherlands. An empirical evaluation of the effect of communicating a company’s liabilities of newness on the consumers’ purchase intention, product quality perception, and design quality perception

Cvetkovski, A. (2020) Country-of-origin effects in entrepreneurial context : a quantitative study in Serbia and the Netherlands. An empirical evaluation of the effect of communicating a company’s liabilities of newness on the consumers’ purchase intention, product quality perception, and design quality perception.

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Abstract:The purpose of this paper is to examine what kind of effect open communication of a company’s liabilities of newness has with prospective customers on country-of-origin effects. A sample size of 424 is used as the basis for the analysis and the approached respondents were randomly assigned to one of the sixteen surveys. Seven surveys contained communication manipulation in the product advertisements for the smart television and Segway. The results show that the perception of product quality, perception of design quality, and purchase intention is influenced by the COO aspects and country images. Prospective customers consider both country image and COO aspects when judging the product quality, design quality, and determining the purchase intention for products. Including product familiarity on the COO effects, two relationships emerged concerning the product quality perception, design quality perception, and purchase intention. The positive relationship confirms the ‘halo effect’ where prospective customers with low product familiarity are influenced by COO effects and the negative relationship showed that prospective customers with high product familiarity are also influenced by COO effects. The results suggest that communicating liabilities of newness of a company to prospective customers is counterproductive since this type of communication does not yield positive effects on any of the individual country of origin aspects.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/81451
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