It is important to understand that consumer brand evaluations and associations is the tool which creates brand equity. Consumers are using brands/products country-of-origin as an in-formational hint which helps them in determining quality of the product/service which is of-fered by specific brand (Steenkamp, 1990). According to Olson and Jacoby (1972) there are two types of brand cues: intrinsic and extrinsic. The intrinsic cue reflects performance and design while extrinsic cues are things such as: country of origin, price and brand. Ulgado and Lee (1998) said that extrinsic cues helps consumers to form an image about the brand and its products and that these cues have ability to impact consumer …show more content…
Some researchers explain that stereotyping is regulated proc-ces (Chattalas et al, 2008; Maheswaran, 1994). In contrast others investigate it as an automat-ic process, emerging from a disclosure to a stereotypical element in the environment (Fisket et al, 2002; Herz and Diamantopoulos, 2013). Such process entail that a stereotyping is a portrait of information which has to be triggered before it may be utilised to make evaluations (Martin et al, 2011). According to Romeo and Roth (1992) stereotype of country can reveal general people’s perception of the product in a specific country, as people are basing their evaluations on prior judgements on country’s image, marketing and manufacturing positives and nega-tives. Shimp et al (2001) identified that consumers are stereotyping some countries and this have an effect on brand image and equity. Authors explained that due to this stereotyping brand will may gain benefits or in other cases drawbacks on their brand image and percep-tions. Brown, Solovieva and Eggett (2007) provided a great example of how French clothes are thought of as fashionable as people have seen or heard about expensive fashion shows in France. German automobiles can be used as another example as everyone think of their cars as being superior because Germans themselves are tidy, organised and …show more content…
According to Koubaa (2008) umbrella brand image can be defined as impact of country’s image on general brand image, as author assumes that brand image has number of dimensions instead of overall con-cept. This idea was formed on Lindridge’s and Hsieh’s study (2005), as authors established that brand image dimensions varies across different nations. Earlier study by Hsieh (2002) provided information that multi-dimensional brand image transfers customers’ utilitarian, symbolic, economic and sensory needs into associations with brand image. Scott and Keith (2005) disclosed that individuals can recall information (which is stored in their mind) about country and the brand, while connecting them in order to shape brand image. Agarwal and Sikri (1996) introduced other view to Pappu’s et al (2006) by claiming that the image of coun-try of origin can be transferred to between brands. Authors said that they found evidence that brand’s country image perceptions can be shipped to another brand which comes from the same