Country of Evaluation – Nationality of the Consumer

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men do. Also, older customers in general evaluate foreign products less favorably than young ones (Balabanis et al., 2002).

2.6.5. Economic Development of COO

Without a doubt, the image and the status of the COO is a significant factor in consumer product evaluations. It has been shown that there is a positive relation between product evaluations and the level of economic development of the COO. Products made in less-developed countries tend to be evaluated as inferior to those made in more developed countries (Leonidou et al., 2007). Higher levels of industrialization positively influence the perception of quality of products originating from a country (Ahmed & d'Astous, 2008). In contrast, consumers tend to show a bias against products from developing countries, because of stereotypical judgments. Therefore, products from developing countries face high psychological barriers in the international market (Lee & Lee, 2009). Moreover, even source credibility of a COO is higher for countries associated with more favorable product-country images. Advertising claims for products originating from countries with unfavorable country image are seen as less credible (Verlegh et al., 2005). In research, most operationalizations of country image in some way include the economic development of the country.

There are exceptions to the general pattern of the effect of country development, as a less favorable general image of a country can be offset by a strong, positive product-country match.

“For example, Afghanistan is considered as a third world underdeveloped country. When asked about its products, most would evaluate it on a lower scale. Yet, Afghan rugs are highly valued in the world markets” (Phau & Suntornnond, 2006, p.35).

2.6.6. Country of Evaluation – Nationality of the Consumer

There is little doubt that consumer orientations and consumer preferences vary across countries, and by the nationality of consumers (Roth & Romeo, 1992). Consequently,

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consumer evaluations of other countries as well as of products from other countries can by no means be identical in every country. Indeed, past research has proposed that the country where the study is conducted as one of the most significant variables in the COO research.

The evaluation of a countries and country products can be strongly influenced by direct contact between the two countries, cultural and historical links, as well as consumer‟s fluency in the language of the country of origin, which can create more objective evaluations of the country (Balabanis et al., 2002). As a result, it has been suggested that consumers tend to have preference for products that originate from culturally similar and geographically close countries.

In economically developed countries, there appears to be a general home-country selection bias, with subjects showing preference for products and services from their own country, and a bias against products from other countries, especially less-developed countries (Al-Sulaiti & Baker, 1998). In general, consumers from developed countries tend to prefer products from their own country first, followed by products from other developed countries and finally products from less developed countries (Ahmed et al., 2004). In a study comparing Japanese and U.S. consumers, Gürhan-Canli and Maheswaran (2000) suggested that home-country bias is particularly prominent in collectivist cultures (as outlined by G. Hofstede) in an effect they called „collectivism-based preference‟. This means that consumers from a collectivist culture (in this case, Japan) show a greater preference for products from their own country, even if the products are of lower quality. The same trend has been observed in Korea, also a collectivist country (Nebenzahl and Jaffe, 1996). In contrast, American consumers in a similar study showed clear preference for same-country products only when those products were superior to foreign products, suggesting that the COO may be of less importance in individualist cultures (Gürhan-Canli and Maheswaran, 2000; Fong & Burton, 2008). However, other studies confirm product ethnocentrism in most of the (generally individualist) developed

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Western nations (Essoussi & Merunka, 2007). Second in order of preference (after domestic products) are goods from other developed countries, which are culturally and geographically close to home country (Hsieh, 2004; Amine, Chao, Arnold, 2005).

Consumer preferences in less developed and developing countries or regions often follow a different pattern, in that consumers tend to prefer imported, branded products from more developed countries to domestic ones, because they imply high quality and fashionable styles. This trend can be called reverse ethnocentrism (Essoussi & Merunka, 2007). In China, for example, brands from developed countries imply high status, cosmopolitanism, and modernity, and the status of a foreign brand serves as an essential determinant in the consumer purchase decision. Even domestic Chinese brands often use foreign elements in an effort to improve the desirability of the product (Zhuang et al., 2008). Moreover, consumers in developing countries actually often have an unfavorable perception of products made in their own countries (Al-Sulaiti & Baker, 1998). Overall the volume of research on the COO effect in developing, transitional and newly industrialized countries is small in comparison with developed countries. However, this group of countries warrants considerably more attention from researchers as well as marketers, as it holds 80% of the world‟s population and provides much better market growth opportunity, compared to the strong over-supply and competition in markets in the developed world (Essoussi & Merunka, 2007).

A special case of product-country choices based on the relationship between the country of study and country of product origin stems from country animosity. Animosity is a multi-dimensional construct, which is country-specific and involves different levels of intensity. It is defined as the “remnants of antipathy related to previous or ongoing military, political, or economic events” (Amine, 2008, p.408). Country animosity can be reflected in consumer attitudes towards products from a particular country. Klein et al. (1998) found that Chinese consumers demonstrated animosity towards Japanese products because of cruelties

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committed by the Japanese during their occupation of China in World War 2, and a considerable number of Chinese consumers have been boycotting Japanese products (Ahmed

& d'Astous, 2008). Following the publishing of the satirical cartoons of Prophet Mohammed in Danish newspapers in 2005 and 2006, a furious wave of anti-Denmark sentiments swept through Muslim nations, especially in the Middle East, where numerous protests took place, death threats were issued, Danish embassies were set on fire and massive boycotts of Danish products were carried out. In some countries, Danish products were taken down from the shelves altogether (Anholt, 2009).

In this research, the nationality of consumers will be controlled, as Czech nationality is a prerequisite for all respondents in the study.