A Branding Strategy for Emerging Market Firms Entering Developed Markets

摘要

Firms from emerging markets face several challenges when entering and trying to compete in developed markets. One of these obstacles to success is the negative country of origin effects that these firms face. By viewing the country of origin phenomenon through the lens of signaling theory, we propose that firms can reduce the noise caused by the made in … label by adopting a branding strategy that consumers connote with a positive country image. In an experiment focusing on brand names from Hungary and Vietnam, we find that this strategy neutralizes noise caused by the country of origin label and leads to favorable product evaluations.