The Impact of Country of Origin on Brand Positioning for Luxury Goods
Brand positioning for luxury goods requires creating unique and strong associations in consumers' minds regarding upscale benefits and high social status. Country of origin has numerous implications on brand image perception, being an important positioning element. This paper's purpose is to examine the impact of country of origin on brand positioning for luxury goods, for a more accurate understanding of how brand image can be affected by product provenance. We analyze the effects of the degree of fit between country image and the associated product category. Furthermore, through an exploratory research, based on investigation of secondary information as a data collection method, we emphasize the variation of favorable perceptions due to a brand's perceived country of origin. We also highlight the effects that country image has on brand prestige, influencing consumers' willingness to pay a premium price for the brand. The study explains how desired positioning can be achieved by leveraging country of origin characteristics to brand image. Main findings support previous research, showing how a favorable country image can reinforce brand positioning. Finally, we discuss the implications of brand origin for luxury goods in the era of global brands and offer recommendations for future research.