Spatial heterogeneity of country-of-origin effects within a country: analysis of online review ratings in the US car market

Spatial heterogeneity of country-of-origin effects within a country: analysis of online review... We investigate spatial heterogeneity of country-of-origin effects (COEs) within a country and its determinants. Drawing on the literature of COEs and information economics, we maintain that COEs are heterogeneous across regions within a country, which bears important implications to better understand subnational heterogeneity of consumer preferences. We employ a geographically weighted regression model, a spatial analysis to estimate varying COEs across regions in the USA, and analyze online review ratings of US and foreign car bands in the US market during the 2008–2014 period. The results show that (1) COEs of car brands from Germany, Japan, Korea, and the UK are heterogeneous across regions in the USA; (2) geographic distance from the country-of-origin exerts negative influences on COEs; and (3) the proportion of population born in the country-of-origin positively influences COEs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Letters Springer Journals

Spatial heterogeneity of country-of-origin effects within a country: analysis of online review ratings in the US car market

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Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer Science+Business Media, LLC, part of Springer Nature
Subject
Business and Management; Marketing
ISSN
0923-0645
eISSN
1573-059X
D.O.I.
10.1007/s11002-018-9451-z
Publisher site
See Article on Publisher Site

Abstract

We investigate spatial heterogeneity of country-of-origin effects (COEs) within a country and its determinants. Drawing on the literature of COEs and information economics, we maintain that COEs are heterogeneous across regions within a country, which bears important implications to better understand subnational heterogeneity of consumer preferences. We employ a geographically weighted regression model, a spatial analysis to estimate varying COEs across regions in the USA, and analyze online review ratings of US and foreign car bands in the US market during the 2008–2014 period. The results show that (1) COEs of car brands from Germany, Japan, Korea, and the UK are heterogeneous across regions in the USA; (2) geographic distance from the country-of-origin exerts negative influences on COEs; and (3) the proportion of population born in the country-of-origin positively influences COEs.

Journal

Marketing LettersSpringer Journals

Published: Feb 26, 2018

References

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