Vol. 9 No. 2 (2020)
Original Research Article

The Impact of Country of Origin on Brand Equity: An Analysis of The Wine Sector

Nadia Passagem
School of Technology and Management, Polytechnic of Leiria, Morro do Lena – Alto do Vieiro, Apartado 4163, 2411-901 Leiria
Catia Fernandes Crespo
CARME, Centre of Applied Research in Management and Economics, School of Technology and Management, Polytechnic of Leiria, CSG/ADVANCE, Morro do Lena – Alto do Vieiro, Apartado 4163, 2411-901 Leiria
Nuno Almeida
CiTUR, ESTM, Polytechnic of Leiria, Rua do Conhecimento, Nº 4, 2520–614 Peniche

Published 2020-11-23


  • country of origin,
  • brand equity,
  • wine sector,
  • loyalty,
  • awareness,
  • brand associations,
  • perceived quality
  • ...More

How to Cite

Passagem, N., Fernandes Crespo, C., & Almeida, N. (2020). The Impact of Country of Origin on Brand Equity: An Analysis of The Wine Sector. Wine Economics and Policy, 9(2), 63–81. https://doi.org/10.36253/web-8407


The purpose of this study is to explore the country of origin´s effects on brand equity dimensions. This research selected wine as the product category and data were collected from Portuguese and Canadian consumers. Our conceptual framework incorporates the influence of country of origin on brand equity dimensions, composed by brand loyalty, brand associations, brand awareness and perceived quality, as well as the brand equity subsequent effect on purchase intention. The hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results of the Portuguese sample indicate that the country of origin affects positively all the brand equity dimensions. The Canadian sample results show that country of origin affects brand loyalty and perceived quality, but there is no significant effect on brand associations and brand awareness dimensions.


  1. Aaker, D. 1991. Managing Brand Equity. New York: The Free Press, 1991.
  2. Agrawal, J. and Kamakura, W. 1999. Country of origin: A competitive advantage? International Journal of research in Marketing. 16. DOI: https://doi.org/10.1016/S0167-8116(99)00017-8
  3. Ahmed, R, Vveinhardt, J, Streimikiene, D. 2017. Interactive digital media and impact of customer attitude and technology on brand awareness: evidence from the South Asian countries. Journal of Business Economics and Management. 18, 1115-1134. DOI: https://doi.org/10.3846/16111699.2017.1400460
  4. Aichner, T, Forza, C e Trentin, A. 2017. The country-of-origin lie: impact of foreign branding on customers’ willingness to buy and willingness to pay when the product’s actual origin is disclosed. International Review of Retail, Distribution and Consumer Research. 27, 43-60. DOI: https://doi.org/10.1080/09593969.2016.1211028
  5. Akkucuk, U, Esmaeili, J. 2016. The Impact of Brands on Consumer Buying Behavior: An Empirical Study On Smartphone Buyers. International Journal of Research in Business and Social Science.5 (4). 1-14. DOI: https://doi.org/10.20525/ijrbs.v5i4.551
  6. Alden, D et al. 2013. The Effect of Global Company Animosity on Global Brand Attitudes in Emerging and Developed Markets: Does Perceived Value Matter? Journal of International Marketing. 2013, 21, 17-38. DOI: https://doi.org/10.1509/jim.12.0086
  7. Andrews, S, Leblang, D and Pandya, S. 2018. Ethnocentrism Reduces Foreign Direct Investment. The Journal of Politics. 697-700. DOI: https://doi.org/10.1086/694916
  8. Armstrong, J and Overton, T. 1977. Estimating Nonresponse Bias in Mail Surveys. Journal of Marketing Research. 14 (3) 396-402. DOI: https://doi.org/10.1177/002224377701400320
  9. Atkin, T et al. 2017. Analyzing the impact of conjunctive labeling as part of a regional wine branding strategy. Wine Economics and Policy. 6 (2,) 155-164. DOI: https://doi.org/10.1016/j.wep.2017.10.003
  10. Bagozzi, R. and Yi, Y. 2012. Specification, Evaluation, And Interpretation of Structural Equation Models. Journal of the Academy of Marketing Science. 8-34. DOI: https://doi.org/10.1007/s11747-011-0278-x
  11. Balanis, G, Mueller, R, Melewar, T 2002. The human values’ lenses of country of origin images. International Marketing Review, 19 (6), 582-610. DOI: https://doi.org/10.1108/02651330210451935
  12. Bawa, A, Saha, A. 2016. Strength of corporate social responsibility as a corporate brand association: general public perspective. Decision. 43 (4), 313-332. DOI: https://doi.org/10.1007/s40622-016-0125-5
  13. Bougenvile, A and Ruswanti, E. 2017. Brand Equity on Purchase Intention Consumers’ Willingness to Pay Premium Price Juice. Journal of Economics and Finance. 08, 12-18. DOI: https://doi.org/10.9790/5933-0801031218
  14. Canadian Vintners Association (2019), http://www.canadianvintners.com/industry-statistics/, accessed on 20/12/2019.
  15. Cordell, V. 1992. Effects of consumer preferences for foreign sourced products. Journal of international business studies. 1992, 251-269. DOI: https://doi.org/10.1057/palgrave.jibs.8490267
  16. Danner, L. et al. 2016. Context and wine quality effects on consumers' mood, emotions, liking and willingness to pay for Australian Shiraz wines. Food Research International. 89, 254-265. DOI: https://doi.org/10.1016/j.foodres.2016.08.006
  17. El Banna, A. et al. 2018. Ethnic identity, consumer ethnocentrism, and purchase intentions among bi-cultural ethnic consumers: “Divided loyalties” or “dual allegiance”? Journal of Business Research. 2018, 82, 310-319. DOI: https://doi.org/10.1016/j.jbusres.2017.09.010
  18. Elliott, G. and Cameron, R. 1994. Consumer Perception of Product Quality and the Country-of-origin effect. Journal of Intemational Marketing. 2, 49-62. DOI: https://doi.org/10.1177/1069031X9400200204
  19. Falk, F and Miller N. 1992. A Primer for Soft Modeling. Univ of Akron
  20. Fornell, C. and Larcker, D 1981. Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research. 18, 382-388. DOI: https://doi.org/10.1177/002224378101800313
  21. Foroudi, P. 2018. Influence of brand signature, brand awareness, brand attitude, brand reputation on hotel industry's brand performance. International Journal of Hospitality Management. 76, 271-285. DOI: https://doi.org/10.1016/j.ijhm.2018.05.016
  22. Frochot, I. 2003. An Analysis of Regional Positioning and Its Associated Food Images in French Tourism Regional Brochures. Journal of Travel & Tourism Marketing. 14, 77-96. DOI: https://doi.org/10.1300/J073v14n03_05
  23. Hair, J, et al. 2009. Multivariate Data Analysis 7th Edition Pearson, Prentice Hall.
  24. Herche, J. 1992. A note on the Predictive validity of the CETSCALE. Journal of the Academy of Marketing Science. 1992, 20. DOI: https://doi.org/10.1007/BF02723413
  25. Herz, M. and Diamantopoulos, A. 2013. Country-Specific Associations Made by Consumers: A Dual-Coding Theory Perspective. Journal of International Marketing. 2013, 21 (3). DOI: https://doi.org/10.1509/jim.13.0004
  26. Hoeffler, S and Keller, K. 2003. The marketing advantages of strong brands. Journal of Brand Management. 6 (10) 421-445. DOI: https://doi.org/10.1057/palgrave.bm.2540139
  27. Hong, ST, Wyer J, Robert, S. 1989. Effects of country-of-origin and product-attribute information on product evaluation: An information processing perspective. Journal of consumer research. 1989, 175-187. DOI: https://doi.org/10.1086/209206
  28. Hulland, J. 1999. Use of partial least squares (PLS) in strategic management research. Strategic Management Journal. 20, 195–204. DOI: https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7
  29. Insch, A, Florek, M. 2009. Prevalence of country of origin associations on the supermarket shelf. International Journal of Retail & Distribution Management. 2009, 37, 453-471. DOI: https://doi.org/10.1108/09590550910954937
  30. Johansson, J, Douglas, S, Nonaka, I. 1985. Assessing the impact of country of origin on product evaluations: a new methodological perspective. Journal of Marketing Research. 22, 388-396. DOI: https://doi.org/10.1177/002224378502200404
  31. Keller, K. 1993. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing. 1993, 1, 1-22. DOI: https://doi.org/10.1177/002224299305700101
  32. —. 2008. Strategic brand management: building, measuring, and managing brand equity. Upper Saddle River, New Jersey : Pearson/Prentice Hall, 2008.
  33. Koschate-Fischer, N., Diamantopoulos, A., Oldenkotte, K. 2012. Are Consumers Really Willing to Pay More for a Favorable Country Image? A Study of Country-of-Origin Effects on Willingness to Pay. Journal of International Marketing. 2012,20. DOI: https://doi.org/10.1509/jim.10.0140
  34. Lee, J., Lee, WN. 2009. Country-of-Origin Effects on Consumer Product Evaluation and Purchase Intention: The Role of Objective Versus Subjective Knowledge. Journal of International Consumer Marketing. 2009, 21. DOI: https://doi.org/10.1080/08961530802153722
  35. Lin, L-Y, Chen, C-S. 2006. The influence of the country-of-origin image, product knowledge and product involvement on consumer purchase decisions: an empirical study of insurance and catering services in Taiwan. Journal of Consumer Marketing. DOI: https://doi.org/10.1108/07363760610681655
  36. Liu, M, et al. 2017. Applying consumer-based brand equity in luxury hotel branding. Journal of Business Research.192-202. DOI: https://doi.org/10.1016/j.jbusres.2017.06.014
  37. Madeira, A, Correia, A and António, José. 2019. Wine Tourism: Constructs of the Experience. in Andrés Artal-Tur, Metin Kozak e Nazmi Kozak. Trends in Tourist Behavior- New products and experiences from Europe. Springer, Cham, 93-108. DOI: https://doi.org/10.1007/978-3-030-11160-1_6
  38. Michailova, S. et al. 2017. Rethinking Ethnocentrism in International Business Research. Global Strategy Journal. 2017, 7, 335-353. DOI: https://doi.org/10.1002/gsj.1159
  39. Odin, Y, Odin, N, Valette-Florence, P. 2001. Conceptual and operational aspects of brand loyalty An empirical investigation. Journal of Business Research. 75-84. DOI: https://doi.org/10.1016/S0148-2963(99)00076-4
  40. Pappu, R, Quester, P, Cooksey, R. 2006. Consumer-based brand equity and country-of-origin relationships. European Journal of Marketing. 696-717.—. 2007. Country image and consumer-based brand equity: Relationships and implications for international marketing. Journal of International Business Studies. 38, 726-745. DOI: https://doi.org/10.1057/palgrave.jibs.8400293
  41. Paswan, A, Kulkarn, S and Ganesh, G. 2003. Nation Branding Loyalty towards the country , the state and the service brands. Journal of Brand Management. 10, 233-251. DOI: https://doi.org/10.1057/palgrave.bm.2540119
  42. Podsakoff, P. and Organ, D. 1986. Self-reports in organizational research: Problems and prospects. Journal of Management. 531-544. DOI: https://doi.org/10.1177/014920638601200408
  43. Rezvani, Samin, et al. 2012. A Conceptual Study on the Country of Origin Effect on Consumer Purchase Intention. Asian Social Science. 2012, 8. DOI: https://doi.org/10.5539/ass.v8n12p205
  44. Richter, N., et al. 2015. European management research using partial least squares structural equation modeling (PLS-SEM). European Management Journal. 2015, 33, 1-3. DOI: https://doi.org/10.1016/j.emj.2014.12.001
  45. Romaniuk, J, Wight, S, Faulkner, M. 2017. Brand awareness: revisiting an old metric for a new world. Journal of Product and Brand Management. 26 (5) 469-476. DOI: https://doi.org/10.1108/JPBM-06-2016-1242
  46. Roustasekehravani, A, Hamid, A, Hamid, A. 2015. The Effect of Brand Personality and Brand Satisfaction on Brand Loyalty: A Conceptual Paper. Journal of Management Research. 10-26. DOI: https://doi.org/10.5296/jmr.v7i2.6924
  47. Sáenz-Navajas, M, et al. 2016. Understanding quality judgements of red wines by experts: Effect of evaluation condition. Food Quality and Preference. 48, 216-227. DOI: https://doi.org/10.1016/j.foodqual.2015.10.001
  48. Saleem, S, Rahman, S, Umar, R. 2015. Measuring Customer Based Beverage Brand Equity: Investigating the Relationship between Perceived Quality, Brand Awareness, Brand Image, and Brand Loyalty. International Journal of Marketing Studies. 7, 66-77. DOI: https://doi.org/10.5539/ijms.v7n1p66
  49. Sanyal, S and Datta, S. 2011. The effect of country of origin on brand equity: an empirical study on generic drugs. Journal of Product & Brand Management, 20 (2), 130-140. DOI: https://doi.org/10.1108/10610421111121125
  50. Sauer, P., Young, M., Unnava, H. 1991. An experimental investigation of the processes behind the country of origin effect. Journal of International Consumer Marketing. 1991, 29-60. DOI: https://doi.org/10.1300/J046v03n02_04
  51. Septyanti, A and Hananto, A. 2017. Country of Origin Image and Brand Equity from Gender Perspective: Do they matter? Asia Pacific Management and Business Application. 6, 89-106. DOI: https://doi.org/10.21776/ub.apmba.2017.006.02.3
  52. Siamagka, NT, Balabanis, G. 2015. Revisiting Consumer Ethnocentrism: Review, Reconceptualization, and Empirical Testing. Journal of International Marketing, 23, 66-86. DOI: https://doi.org/10.1509/jim.14.0085
  53. Statistics Canada, https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2018014-eng.htm, accessed on 20/12/2019.
  54. Strizhakova, Y and Coulter, R. 2015. Drivers of Local Relative to Global Brand Purchases: A Contingency Approach. Journal of International Marketing. 23, 1-22. DOI: https://doi.org/10.1509/jim.14.0037
  55. Suh, Y, Hur, JY, Davies, G. 2015. Cultural appropriation and the country of origin effect. Journal of Business Research. 2015.
  56. Sumner, W. 1906. Folkways-A study of the sociological importance of usages, manners, customs, mores and morals, Mineola, New York. DOI: https://doi.org/10.2307/1412602
  57. Świtała, M et al. 2018. The influence of brand awareness and brand image on brand equity – an empirical study of logistics service providers. Journal of Economics and Management, 33 (3) 99-119. DOI: https://doi.org/10.22367/jem.2018.33.06
  58. Thøgersen, J et al. 2017. How important is country-of-origin for organic food consumers? A review of the literature and suggestions for future research. British Food Journal. 2017, 119, 542-557. DOI: https://doi.org/10.1108/BFJ-09-2016-0406
  59. Xie, Yi Batra, R, Peng, S. 2015. An Extended Model Preference Formation Between Global and Local Brands : The Roles of Identity Expressiveness, Trust, and Affect. Journal of International Marketing. 23, 50-72. DOI: https://doi.org/10.1509/jim.14.0009
  60. Yasin, N., Noor, M., Mohamad, O. 2007. Does image of country-of-origin matter to brand equity? Journal of Product & Brand Management. 2007, 38-48. DOI: https://doi.org/10.1108/10610420710731142
  61. Yoo, B and Donthu, N. 2000. An Examination of Selected Marketing Mix Elements and Brand Equity. Journal of the Academy of Marketing Science, 28 (2), 195-211 DOI: https://doi.org/10.1177/0092070300282002
  62. Yunus, N and Rashid, W. 2016. The Influence of Country-of-origin on Consumer Purchase. Procedia Economics and Finance Intention: The Mobile Phones Brand from China. 2016343-349. DOI: https://doi.org/10.1016/S2212-5671(16)30135-6
  63. Zeithaml, V. 1988. Consumer Perceptions of Price, Quality, and Value: a Means-End Model and Synthesis of Evidence. Journal of Marketing. 52, 2-22. DOI: https://doi.org/10.1177/002224298805200302