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

Minyoung Kim, Sunghoon Kim, Jongkuk Lee

Research output: Contribution to journalArticle

1 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)1-17
Number of pages17
JournalMarketing Letters
DOIs
StateAccepted/In press - Feb 26 2018

Keywords

  • Car market
  • Country-of-origin effects
  • Geographic distance
  • Spatial analysis
  • Spatial heterogeneity

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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