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Country of ownership change in the premium segment : consequences for brand image

Johansson, Ulf LU ; Koch, Christian LU ; Varga, Nora and Zhao, Fengge (2018) In Journal of Product and Brand Management 27(7). p.871-883
Abstract

Purpose: This paper aims to explore how the ownership transfer from a highly industrialised country to less industrialised countries influences consumers’ brand perceptions. Design/methodology/approach: Three acquisition cases of premium car brands (Jaguar, Land Rover and Volvo) are investigated using qualitative data from online brand communities. Findings: When country of ownership (COOW) for brands changes, it leads to different effects on consumers’ brand perception. Consumers are disoriented as to which cue to apply when evaluating the brand. They also see that brand values, and how these are communicated, are in conflict, as are sustainability images. Research limitations/implications: This paper focuses on the perspective of... (More)

Purpose: This paper aims to explore how the ownership transfer from a highly industrialised country to less industrialised countries influences consumers’ brand perceptions. Design/methodology/approach: Three acquisition cases of premium car brands (Jaguar, Land Rover and Volvo) are investigated using qualitative data from online brand communities. Findings: When country of ownership (COOW) for brands changes, it leads to different effects on consumers’ brand perception. Consumers are disoriented as to which cue to apply when evaluating the brand. They also see that brand values, and how these are communicated, are in conflict, as are sustainability images. Research limitations/implications: This paper focuses on the perspective of brand community members in Europe and the USA and studies only the car industry and acquisitions by two countries (China and India) using data from the time of ownership transfers. The authors discuss theoretical implications and suggest further research to gain more insights and address limitations. Practical implications: Following a transfer of ownership, communication campaigns are required for addressing the original brand’s heritage and promoting the new brand owner’s image. Managers need to take advantage of loyal brand fans by turning them into brand ambassadors, spreading information to convince consumers that are more sceptical. Originality/value: This study fills the knowledge gap regarding change of COOW to developing countries as new owners, and its consequences for consumer perception. The authors also introduce an innovative type of data collection through brand communities, which is less commonly used in international marketing research.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Brand heritage, Brand image, Brand origin, Cars, Country of origin effect, Country of ownership, Newly industrialised country
in
Journal of Product and Brand Management
volume
27
issue
7
pages
13 pages
publisher
Emerald Group Publishing Limited
external identifiers
  • scopus:85057584625
ISSN
1061-0421
DOI
10.1108/JPBM-10-2017-1651
language
English
LU publication?
yes
id
8b0e1b92-515f-4dca-af01-13868ef949ce
date added to LUP
2018-12-19 13:23:45
date last changed
2021-09-29 03:13:23
@article{8b0e1b92-515f-4dca-af01-13868ef949ce,
  abstract     = {<p>Purpose: This paper aims to explore how the ownership transfer from a highly industrialised country to less industrialised countries influences consumers’ brand perceptions. Design/methodology/approach: Three acquisition cases of premium car brands (Jaguar, Land Rover and Volvo) are investigated using qualitative data from online brand communities. Findings: When country of ownership (COOW) for brands changes, it leads to different effects on consumers’ brand perception. Consumers are disoriented as to which cue to apply when evaluating the brand. They also see that brand values, and how these are communicated, are in conflict, as are sustainability images. Research limitations/implications: This paper focuses on the perspective of brand community members in Europe and the USA and studies only the car industry and acquisitions by two countries (China and India) using data from the time of ownership transfers. The authors discuss theoretical implications and suggest further research to gain more insights and address limitations. Practical implications: Following a transfer of ownership, communication campaigns are required for addressing the original brand’s heritage and promoting the new brand owner’s image. Managers need to take advantage of loyal brand fans by turning them into brand ambassadors, spreading information to convince consumers that are more sceptical. Originality/value: This study fills the knowledge gap regarding change of COOW to developing countries as new owners, and its consequences for consumer perception. The authors also introduce an innovative type of data collection through brand communities, which is less commonly used in international marketing research.</p>},
  author       = {Johansson, Ulf and Koch, Christian and Varga, Nora and Zhao, Fengge},
  issn         = {1061-0421},
  language     = {eng},
  number       = {7},
  pages        = {871--883},
  publisher    = {Emerald Group Publishing Limited},
  series       = {Journal of Product and Brand Management},
  title        = {Country of ownership change in the premium segment : consequences for brand image},
  url          = {http://dx.doi.org/10.1108/JPBM-10-2017-1651},
  doi          = {10.1108/JPBM-10-2017-1651},
  volume       = {27},
  year         = {2018},
}