Literature Review

The purpose of this section is to examine the existing literature on impact of country of origin on consumer attitudes and how it relates to consumer purchase
intention. In particular this section will examine the country of origin as a concept, its importance and how it affects product evaluation. In addition, this section
will conceptualize attitude and how it relates to country of origin. Thirdly, this section will examine purchase intention, brand identity and brand image and how they
relate to the topic. Lastly, this section will examine the Korean wave and its relation to consumer attitudes and its relation to the topic.
Country of Origin
The effect of country of origin (CO) on consumer behavior has been one of the most studied topics in international marketing literature. Over the last thirty years,
numerous researchers have examined the concept of country of origin, its effect on beliefs, quality and perception of consumers on certain products (Agrawal &
Kamakura, 1999). One of the earliest studies that sought to examine the effect of national image on consumer behavior was the study by Schooler in 1965 (Ahmed, et
al., 2002). It was the first study to recognize the link between country of origin and consumer behavior. After the study, various researchers have come up to further
the literature on CO and consumer behavior.
One of the widely accepted definition of country of origin is by Saeed (1994). Saeed defines country of origin as “country that a manufacturer’s product or brand is
associated with. (Lin & Chen, 2006).” The country of origin is communicated through the phrase “made in or manufactured in.” COO in studying consumer behavior can
also be understood as the perceptions of a country that influence their evaluation of particular products or brands produced by a particular country. Increased
understanding of the concept of ‘country of origin’ can be attributed to the work of Han and Terpstra in 1988. The two scholars furthered the understanding of the
concept by categorizing the country of origin into countries that manufactured and those that assembled the final products.
The work of Han and Terpstra (1988) (Han & Terpstra, 1988)was further advanced by Insch and McBride (2004) (Insch & McBride, 2004) who further categorized country of
origin into country of parts manufacture (COP, country of product assembly (COA) and country of product design (COD). However, Ahmed and colleagues (2004) point out
that country of origin should be conceptualized as the country where the product was manufactured or assembled (Ahmed, et al., 2004). This definition is supported by
the work of Roger et al. (1994) who argues that consumers do not differentiate between location of manufacture or assembly when evaluating products, thus supporting
the definition by Saeed (1994) (Roger, et al., 1994). Other scholars such as Johansson and Thorelli (1985), believe that the country in which a company producing a
certain product is headquartered becomes the country of origin for the products of that company (Johansson & Thorelli, 1985).
The revised Kyoto Convection (2006) defines ‘country of origin of goods’ as the country in which goods were manufactured or produced (Dagger & Raciti, 2011). If a
product is produced, processed and assembled in different countries, the country of origin is the country where the product was processed last. Conclusively, country
of origin refers to the country where a product or brand is developed assembled and designed. In this review, this definition will be utilized (Lee & Lee, 2009).

Image of country of origin
Munjal (2014) notes that consumer’s perception of a quality is depedent on the image they have of the country of origin. As such, image of country of origin is
important in marketing. Nagashima (1970) defined country image as “political, economic, social and technological part of that country (as cited in Munjal, 2014).”
With increased globalisation, consumers image of other countries is depedent on the experieces the consumers have with that country. The definition is further
developed by Roth and Romeon (1992), who defined country imgage as “Consumer forms his/her understanding to specific country based on his/her recognition of advantages
and disadvantages of manufactured and marketed products from a specific country in the past (Roth and Romeo, 1992).” However, it is essential to differentiate between
beliefs about a country itself (country image) and beliefs about the products from a given country (product knowledge), which are two different concepts.
Verlegh (2001) noted that there are two essential components of country image; human and geographical component. The geography of a particular country includes the
landscape of the country and the climate, while the human component can be understood as the skills, competence and creativity possessed by the citizens of that
particular country. These two components have an impact on attitudes of consumers, for example, consumers will view food products from countries with sunshine
positively. On the other hand, consumers will view products from countries with high competence positively. As such, country of origin has an effect on product
valuation. It is essential to note where product knowledge lacks, country of origin has a ‘halo’ effect. Halo effect is where consumers use a single object to evaluate
multiple products from a single country (Dmitrovic & Vida, 2010). For example if Germany is associated with high quality cars, then consumers will assume that all
products from Germany as of high quality.
Importance of Country of Origin
Country of origin is an important concept when it comes to international marketing. While various studies have recognized that the country of origin is not the only
factor influencing product evaluation and consumer attitudes, it is an important factor in product evaluation. Studies by Chen-Yu and Kincade (2003) showed that
country of origin is the sixth most important cue when it comes to the purchase of clothing among undergraduate students. Other studies have noted that consumers in
Western Countries prefer domestic goods while those in developing countries prefer products from well-established foreign goods. Since the image of country can either
have a negative or positive impact of consumer product evaluation, it is believed to be one of the best ways of enhancing brand equity (Essoussi & Merunka, 2007).
Source Country effects on Product Evaluation
A review by Ghalandaru & Norouzi (2012) of the existing literature on the effects of source country of origin is one of the most significant analyses that inform this
literature review as it considered moderating factors in the studies examined. The findings of the analysis provide important information on the effects of country
source on product evaluation. An important fact from the literature is that the impact of source country cue is diminished in multiple cues studies as compared to
single cue studies (De Run, et al., 2012). When information is controlled, the impact of source country factor on consumer product evaluation increases significantly.
In real life situations, consumers are more likely to have additional information that will enable them to make objective decisions such as warranty. In such cases,
the impact of country of origin diminishes significantly. Verlegh and Steenkamp (1999) noted a significant drop in the source country cue use in studies employing
multiple cues. Another study by Peterson and Jolibert (1995) shows that the effect of source country is comparable to quality perception and intention to purchase when
the latter two cues are considered (Peterson & Jolibert, 1995).
Another emerging issue in regard to the effect of source country on product evaluation is the effect of source country on consumer behavior. While various studies show
that source country has an effect on product evaluation, the effect diminishes as the consumer moves across the different stages of consumer behavior, “from perception
of product quality to behavioral intention (Baker & Ballington, 2002).” Laroche et al., (2005) noted a substantial decrease in the effect of source country when a
consumer moves towards purchase intention as compared to quality perception (Wall, et al., 1991). Agrawal and Kamakura (1999) noted that source country has diminished
effects during product evaluation as consumers developed the intent to purchase product.
Agrawal and Kamakura (1999) further noted that consumers are aware of the costs and risks associated with purchasing a particular product. As such, there are more
likely to allocate more cognitive resources when evaluating a product in real life situation as compared to hypothetical scenarios. In real life situations, source
country cues compete with other equally important cues thus making the source country cue less important. However, source country cue is important when it comes to
complex decision making environment (Usunier, 2006).
Various researchers have noted that in a complex decision making environment, consumers are more likely to rely on extrinsic cues thus preserving cognitive capacity.
In such situations, consumers use country image or source county as a summary construct when evaluating a product. A consumer may rate a product as of high quality if
it comes from a certain country thus utilizing the source country cue to eliminate products from other countries. The phenomenon can be attributed to the need to
preserve cognitive resources (Agrawal & Kamakura, 1999).

Attitude
One of the key elements among the five elements that determines the choice of product, a consumer’s attitude is the most important. Wu (2003), noted that attitude is
more likely to change as compared to other psychological elements. Krech, Cruthfield and Ballachy (1962) defined attitude as “enduring systems of positive or negative
evaluations, emotional feelings, and pro or con action tendencies with respect to social objects (as cited in (Kamwendo, et al., 2014; Spence & Townsend, 2008).” On
the other hand, Schwarz and Bohner (2001) conceptualize attitude as “an enduring organization of motivational, emotional, perceptual and cognitive processes to
evaluate various objects that are stored in memory (as cited in Kamwendo, et al., 2014).” From these definitions, it is evident that attitudes play an important part
in product evaluation.
Various researchers have come with various theories that seek to explain the link between behavior and attitudes. Most of these researchers focused on the mechanisms
underlying attitude to predict behavior. From a psychological view, human behavior has three key dimensions, the emotional, physical and mental dimension. These
dimensions facilitated the development of the three component conceptualization of attitude. Howard and Sheth (1969) conceptualized attitudes as having three key
components; “the cognitive component – knowledge, beliefs and awareness; the effective component- emotions and a conative component or response tendencies (as cited in
Ikechukwu, et al., 2012).” These three components are interrelated but independent of each other.

Fig 1: An illustration of the tri-ology attitude model: source Shciffman and Kanuk (1995, p. 242)
Cognitive component
The cognitive component can be understood as the opinions, knowledge and beliefs of a person in relation to the attitude object. It is the information or knowledge a
person has about a concept or a product. The information or knowledge becomes beliefs. Knowledge about a product comes from different sources and is also a result of
direct experience.
Affective Component
The effective is more of feelings that a person has towards an object. Feelings may either be positive or negative. The affective component can be understood to
represent the emotional. Component of a person and may arouse like or dislike for a given product. There are several factors that affect the feelings of a consumer
including personality traits, personality and culture.

Behavioral or Conative Component
Conative component is synonymous with the behavioral component of attitude and refers to “behavioral tendencies towards an object (Ikechukwu, et al., 2012).” Conation
can be defined as ‘attempting.’ It can be understood as the tendency of a person to take a particular course of action. In marketing literature conative component is
treated as the buying intent.
The three components have clear implications on consumer purchase behavior. Maher & Carter, (2011) noted that consumers tend to maintain the three components at an
equilibrium and affect a person’s overall attitude. According to Solomon (2002), consumers value cognitive harmony and are motivated to maintain the equilibrium
between their feelings, behaviors and thoughts. How a consumer evaluates an object is dependent on how he or she evaluates the other attitude objects. The following
model provides an illustration of the connection between the aspects and overall attitude.

Fig 2: interconnections between the three components of attitude: derived from Hawkins et al., (2001).
Relationship between Country of Origin and Attitude
Attitude has three important components, cognitive, affective and conative components. A person’s attitude towards a product’s source country is dependent on these
components. Specifically, cognition which incorporates the information the consumer has about a product, affection for domestic products (affective) and the intent to
buy in relation to the source country. Smith and Swinyard (1988) noted that cognitive component is very important when it comes to product evaluation. Consumers can
use information (intrinsic cues) they have about a product to make the best decisions regardless of the country of origin. However, consumers may lack the relevant
information to make objective decisions. In this case, consumers will use extrinsic cues such as the country of origin to determine whether a product is of the
required quality (Ha- Brookshire & Yoon, 2012).
One of the most important model in determining the attitude of consumers towards a given a product from a given country is the halo model. According to Han (1989)
consumers will use a country’s image when evaluating a product if they do not have sufficient information about the product. A consumer with a positive attitude
towards French products is likely to have positive attitude to a French product even if he or she does not have sufficient information about the product (Fishbein,
1963). As discussed earlier, the image can be influenced by geographical and human component of the country.
Fig 3: Halo Model, Source: Knight, G.A & Calantone, R.J, (2000)
Another important model in explaining the relationship between source country and attitude is the flexible model. The flexible model is based on the Halo model and
stipulates that attitude can affect a country’s image both directly and indirectly (Keller, 2008; Kotabe & Helsen, 2004). A consumer who is familiar with a product
from a given country is likely to believe in that country and the product itself. If the consumer does not have prior experience with the product from a given country,
then he or she is more likely to depend on the existing stereotype of that country.
Fig 4: Flexible Model, Source: Knight, G.A & Calantone, R.J, (2000)
According to Knught and Clalantone (2000), purchase intention has been influenced by country of origin image. when country of origin has a negative image in consumer’s
mind, the best way for producer to slove this problem is avoiding to mention about country of origin as less as possible and offering the promotion in order to
overcome country of origin stereotype attitude. On the other hand, if consumer percieve country of origin image in positive way, negative argument on product
attributes such as expensive and bad quality will be less perceived.
Purchase Intention
Purchasing intention can be defined as the likelihood of a consumer buying a product by a certain manufacturer. According to Berkman, Lindquist and Sirgy (1997),
intent is a key component of consumer’s attitude. As indicated earlier, behavioral component (cognitive component) is the best predictor of actual purchase as opposed
to affective or beliefs. Country image plays a key role in enhancing buying intention. Various studies have shown that a positive country image has a positive effect
on product evaluation and consequently purchase intention. As indicated earlier, country image can influence purchase intention through the halo effect or the summary
effect (Li, et al., 2012).
One of the most important model that seeks to shed light into the purchase intention of a consumer is the theory of reasoned action. Wang and Yang (2008) noted that
“purchase intentions are decisions to act or …psychological states which represent the individual’s perceptions to engage in particular behavior.” The Theory of
Reasoned Action postulates that purchase intention is determined by an individual’s attitude towards a product. As discussed earlier, consumer attitude is determined
by knowledge, beliefs and emotions about the product (Martín & Cerviño, 2011). According to the theory, products from a country with a positive image will be viewed
more favorably and thus the purchase intention towards products from such countries will be high. Wang and Yang (2008) also note that consumer attitudes affect how
consumers perceive country image. Empirical findings of Lin and Chen (2006) support the theory.
Demographic
Various studies have pointed out the impact of demographic factors on product evaluation. Variables such as age, gender and income status affect how consumers evaluate
both domestic and foreign goods. Various studies have identified age as an important factor in determining attitude towards a given product. A review by Fowdar (2010)
showed that young consumers prefer foreign goods as compared to domestic goods, while the older people preferred domestic goods. The preference of old people can be
attributed to their high levels of patriotism as compared to the younger buyers. Another important difference in preferences when it comes to age is the use of
cognition in product evaluation. Old consumers have more information and experience; thus they are likely to rely on this information when buying a product and are
thus likely to make objective decisions. On the other hand, young people consider price and brand image when evaluating products. However, studies have noted that
young people are more likely to gather information when buying new products as compared to older people.
Another important demographic variable is gender. Fowdar (2010) found that men are less patriotic as compared to women and therefore prefer foreign goods. These
findings are supported by the results of a study by Ai-Sulati and Baker (1998) that showed that women are more patriotic. Other demographic factors include household
income and education level. Fowdar (2010) noted that households or individuals with higher income are more likely to purchase foreign goods as compared to individuals
with low income or from low income households. On the other hand, highly educated individuals have less ethnocentric attitudes and are therefore likely to purchase
foreign goods.

Brand Identity
According to Neumeier (2004) brand identity is the superficial manifestation of a brand. Brand identity has numerous parts. The first part is what it represents and
what its positive associations. Another part is the brand’s core identity; a brand’s core identity includes the various components that allow it to communicate
internally such as its vision and essence. Other parts of the brand identity encompass its goal, scope and characteristics. According to Franzen and Moriatry (2009),
desired brand identity can be understood as the image that a company desires. Kapferer (2012) noted that brand identity allows consumers and other organization to
differentiate between organizations. Melewar (2008) argued that brand identity is essential to an organization as it has an effect on consumer purchase intention.
According to Kapferer (2012) companies build brand images over time. Companies should send the most relevant information to consumers to ensure that consumers have a
positive perception of the company. How consumers perceive a company is dependent on the messages the company sends to the consumers and how consumers decode these
messages. Brand messages may come from visual symbols, sponsorship and even advertisement. Messages relate to the all components of consumer attitude from cognitive
to affective to conative. As such, brand identity has an effect on the attitude of consumers.

Brand Image
When consumers decode brand messages then they form brand image. Brand image can be loosely understood as how customers perceive the personality, value and quality of
a company’s brand. Any differences between brand identity and brand image results in gaps which lead to negative implications for the company. Brand image has
significant implications when country of origin is considered. Bhakar, Bhakar and Bhakar (2013) found that brand image is essential in determining purchase intention
of consumers. In their study on the effect the relation between source country, brand image and customer purchasing intention, the researchers found that negative
brand image coupled with negative country of origin attitude reduces purchase intention significantly.

Korean Wave
The ‘Korean wave’ or the ‘Hallyu’ is a term used to describe the popularity of Korean culture across Asia. As a neologism, the expression is used to refer to the
increased popularity of South Korean culture across Asia since the 1990s. The spread of the wave can be attributed to entertainment media. Widespread popularity of
Korean music and drama lead to the K-fever. Various researchers have shown that the K-fever affects the attitude of consumers towards Korean products and therefore
the purchasing intention. A study by Tadaamnuaychai (2006) found that fans of the Korean culture are more likely to have a positive attitude toward Korean products.
These findings are further supported by the findings of Ajzen (2008). According to Ajzen (2008) attitude affects intention. As such, attitude can be used to predict
intentions. It can thus be concluded that people with positive attitude towards Korean culture are likely to have a higher purchase intention as compared to those who
are not receptive to the culture.
Korean Wave in Thailand
Korea was looking a new new industry to alternate information technology (IT) industry and assist nation’s economy crisis since korea going through IMF in the late
1990s. Korea’s popular culture has grown and come at the moment of referring to successful case studies of cultural industry overseas along with the rise of
entertainment industry since 1980s. Byun and Eun Mo (2014) stated that a big turning point to boost up the popularity of Korean products and services in Thailand was
Korean drama series in 2005, which name is A Jewel in the Palace. Therefore, year of 2005 is considered as the year that Thai public had recognized Korean wave
presence (Jongkrieng, 2008). Korean TV series showed its consistent popularity among Thai people since 2005. TV dramas and films, which is the first draw that Thai
people paid attention to, is not only a story telling content, but also a culture introducing content. The Ministry of Culture, Sports and Tourism and Kore Tourism
Organization drew Korean product re-marketing strategies to motivate people in Asia and Middle East. They spreaded the rang of promoting Korean cultures from films and
TV dramas to performance shows, food, witer sports, spring flowers and IT products inside dramas. This can refer to product placements, which is one of marketing
strategy. Product place is a marketing practice in advertiseing and promoting brand name, product or other trademark, which are placed into a motion picture,
television, or other media for commercial purposes. In product placement, the implicated audiences get use to brands and products while the natural process of the
film, television program, and content vehicle (Panda, 2004; Cebrzynski, 2006). For example, product placement of Samsung smart phone in Koren TV drama series “The
Heirs” as it shown in figure 5.

Fig 5: Samsung in The Heirs, Korean drama (SBS, 2013, screen capture)
Moreover, Korean music, which is called K-pop, is another essential factor that expand Korean culture popularity in Thailand. As Siriyuvasak and Hyunjoon study (2007),
The distribution process were strengthened by the mediation of the electrnic media, radio, and television, under the GMM and RS Promotion, which are the top two
biggest music company in Thailand. In addition, other entertainment media such as newspaper columns and magazins that are joined with the local music industry, were
employed as an open source of information as well as an important booster of Korean music and popular culture.
Conclusion
From the literature review it is evident that product source country affects the attitude of buyers. Attitude of customers during product evaluation is dependent on
cognitive, affective and behavioral components of attitudes. Cognitive component encompasses the information and beliefs that a person has about an object. On the
other hand the affective component is more about the emotions of the customers towards the object. Lastly, the behavioral component is concerned with purchasing
intent. From the literature review, it is evident that country image will affect the attitude of buyers. However, there are some moderating effects such as
demographics and brand image. From the review the following conceptual framework has been developed:

Fig 6: Conceptual framework that will guide the study

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