India. Movies, music, theatre, etc. have started to find a niche among Indian consu- mers. The Hindi movie industry or Bolly- wood is the largest producer of films ...
Managing Leisure 16, 98– 107 (April 2011)
Country of origin effect on services: an evaluation of entertainment Sunny Bose and Abhilash Ponnam ICFAI Business School, Hyderabad, India With globalization in its full toll, customers today have awareness about and access to various foreign entertainment forms such as movies, music and performing arts like theatre and circus. This has magnified the need and scope of the studies on country of origin (COO) effects with respect to entertainment. However, upon reviewing the literature, it is found that, though voluminous literature exists in product context, only few studies have addressed COO effects in service contexts with negligible contribution pertaining to the domain of entertainment. This article tries to address this gap by finding out whether consumers attribute COO effects to various entertainment forms emanating from abroad. This study undertaken in an Indian urban youth context proves the existence of COO effects in consumers’ evaluation of various foreign entertainment forms. Keywords: country of origin effects, service evaluation, entertainment
INTRODUCTION Today, entertainment is big business in India. Movies, music, theatre, etc. have started to find a niche among Indian consumers. The Hindi movie industry or Bollywood is the largest producer of films in the world (UN News Center, 2009). There is a burgeoning growth in radio stations across the nation especially in metropolitan areas. Live entertainment, in forms like theatre, circus, etc., has gained popularity among all sections of Indian society. Theatres, in particular, have garnered considerable consumer interests owing to an upsurge in theatre festivals across the country. The growth of the entertainment business in India has also been affected by the increase in foreign entertainment in the Indian market. International films, particularly Hollywood movies, have found a niche in the market. The same can be said for international music, particularly the pop genre. India has also found itself in the tour
itineraries of various international musicians and pop stars. Indian metropolitan areas are now hosting various international theatre festivals which are exposing Indian upper and middle class to international theatre and drama. Hollywood films are emerging to become healthy competition for Bollywood (Hindi) films. Taran Adarsh, Indian film critic, points out that ‘earlier, Hollywood films were never considered serious competition, but today they are eating into the business of Bollywood films’ (Sheikh, 2008). ‘Doordarshan’, a government-owned national channel, was the only available channel on Indian television previously. Post liberalization, as a reformative initiative, the Indian government allowed private and foreign broadcasters to engage in operations in India. This move enabled Star, BBC and various other private and foreign media players to establish their presence in India. Thus, the giant Indian middle class audience are now able to enjoy
Managing Leisure ISSN 1360-6719 print/ISSN 1466-450X online # 2011 Taylor & Francis http://www.tandf.co.uk/journals DOI: 10.1080/13606719.2011.559089
COO effect on services foreign entertainment which was previously inaccessible to them. The Indian cable television market today stands as third largest market in the world (Raja, 2007). As observed, foreign entertainment with its increasing accessibility and popularity is making its presence conspicuous in the Indian entertainment industry. A wellgrounded academic research is necessary to understand the viewers’ media consumption habits at this new juncture. Foreign entertainment per se is of various forms and originates from different countries. The study seeks to comprehend whether Indian young urban consumers attribute country of origin (COO) effects to various foreign entertainment forms. Considering this specific segment of the Indian population might be of considerable interest within leisure and entertainment context for two reasons. India is considered to have the largest youth population in the world (Kamdar, 2007; Dossani, 2008). Urbanization in India is happening at a steady pace, resulting in ‘rising affluence levels that would have a sustainable impact on demand creation for leisure and entertainment activities in the coming years’ (PWC, 2009, p. 8). Hence, the results of this study could aid practitioners in developing and delivering the right content and theorists to inquire the plausible existence of COO effect in the service sector with specific reference to the entertainment industry. LITERATURE REVIEW One of the earliest studies of COO effect goes back to 1970 when Nagashima (1970) surveyed Japanese and US business people to identify possible country image perceptions associated with products carrying ‘made in . . .’ labels. The author defined country image as the picture, the reputation and the stereotype that businessmen and consumers attach to a specific country. This image, according to the author, is created by variables such as ‘. . .products, national
99 characteristics, economic and political backgrounds, history and traditions’ associated with the country. This research proved the existence of COO effects that could be associated with products. More specifically, Narayana (1981) defined country image as ‘. . .connotative field associated with that country’s product offerings, as perceived by consumers’. From a customer-based perspective, country image has been defined as consumers’ general perceptions about the products that are being manufactured in the given country (Bilkey and Nes, 1982; Min Han, 1989). From marketing perspective, Roth and Romeo (1992) defined country image as ‘. . .overall perception consumers form of products of a particular country, based on their prior perceptions of the country’s production and marketing strengths and weaknesses’. Various studies have been conducted to understand how the COO effect could influence perceptions about products. Kramer et al. (2008) found out that consumers perceive products from countries high in competence to be relatively more utilitarian and countries high in warmth to be relatively more hedonic. Jo (2005) in her study demonstrated that, in the case of weak brands, COO could act as dominant quality cue. Based on their study, Supanvanij and Amine (2000) have concluded that a branded product with an unfavourable COO image does not lose its advantage compared to the branded product with a favourable COO image; also a non-branded product with a favourable country-of-origin image can offset the disadvantage of not being the branded product. In a similar line of research, Gaedeke (1973) concluded that COO does not have significant impact on a well-known branded product. In addition to studies which directly analysed the COO effects on consumers, there have also been studies which elaborated upon specific incidental emotions that could influence COO effects. Extant literature
100 proves that COO perceptions transcend product efficacy and might have their roots in social and political circumstances (Elliott and Cameron, 1994; Maheswaran and Yi Chen, 2006). Lee et al. (2005) in their research concluded that notwithstanding the fact that COO cues could be effective in producing favourable product perceptions, the COO cue as a halo or summary construct is dependent upon an individual’s situational involvement and enduring involvement levels. A meta-analysis by Peterson and Jolibert (1995) based on 50 articles containing 69 independent studies on COO effect revealed that COO explained 30% of the variance in customers’ quality/reliability perceptions and 19% of the variance in purchase intentions. This result, according to the authors, suggests a strong COO effect on purchase intentions. A major portion of scholarly investigation of COO effects is confined to the product context, and it is sparingly investigated in the service sector. Javalgi et al. (2001) reviewed the literature on COO effects with respect to services. They classified 19 studies which primarily dealt with COO effects in the service context into three broad categories, namely: (a) core services, such as medical care; (b) supplementary services that enhance product value, such as warranties and guarantees and (c) crossnational service comparisons, where services which are produced and consumed in the same country are compared across nations. Lascu and Giese (1995) studied COO in a retail setting. The study compared US consumer perceptions of an electronics store that originated in an industrially developed country known for its technological capabilities (Germany) with perceptions of a similar store from a developing country (Mexico). The results showed that the German retailer was expected to have superior products, services and advertising. On the other hand, the Mexican retailer was expected to offer lower prices and larger
Bose and Ponnam discounts. Ofir and Lehmann (1986) studied impact of COO on tourism and recreation. They found that US citizens perceive Swiss ski resorts to be more friendly, challenging and romantic, whereas their French counterparts were considered to be more modern, entertaining and expensive. The authors also concluded that in the event of the brand name being not well known, COO might prove to be more important than the brand image of a resort. Measurement of COO Effect Extant literature brings forth a variety of quantitative analytical tools to measure COO effect(s). Johansson et al. (1985) used a system of simultaneous equations. Hong and Wyer (1989) studied country favourableness by a parameter that rates a country for its high- or low-quality products. Roth and Romeo (1992) attributed the existence of COO effects using simple bi-variate correlations. Parameswaran and Pisharodi (1994) developed a COO measurement scale using factor analysis and incremental fit analysis. Meng et al. (2007) adapted the Parameswaran and Pisharodi (1994) scale using a structural equation model to study COO effects on tangible products across different ethnic groups. Hsieh (2004) used correspondence analysis followed by perceptual mapping to evaluate COO effects. This research adopts the method proposed by Roth and Romeo (1992) in evaluating COO effects and hence elaborates the same.
RESEARCH OBJECTIVE AND SCOPE This article addresses whether urban Indian youth attribute COO effects to specific entertainment forms emanating from abroad. Following a focus group discussion to identify an appropriate scope for the research, and a preliminary survey among college-going students of a metropolitan city of India, four countries were selected for empirical
COO effect on services analysis, namely, Brazil, Russia, the UK and USA, and four entertainment forms, namely movies, theatre, circus, music and dance. DATA COLLECTION The data were collected from young adults and young executives from three metropolitan cities of India. More than 95% of the respondents are aged from 17 to 30 years. This age range closely corresponds with the definition of ‘Indian youth’ (Kanitkar and Gotpagar, 1989). The sample comprises postgraduate students from Hyderabad; undergraduates from a reputed boys’ college; 11th and 12th standard students from a reputed girls’ high school in Kolkata; engineers and employees of a private multinational company in Chennai and a few other respondents dispersed across the country. Though this convenience sample is primarily collected only from the eastern and southern parts of the country, it could adequately represent tastes and preferences of pan-Indian urban youth since Indian metropolitan areas have a heterogeneous mix of population. An attempt was also made to bring about variation in demographics by considering respondents with varied profiles and different age groups. College-goers, high school students and young executives being the major viewers of foreign films, theatres, musical shows and allied forms of entertainment, the sample used in this study also comprises the same. Of 150 questionnaires administered, 95 valid responses were obtained and used in the study. METHODOLOGY This study measures COO effect as prescribed by Roth and Romeo (1992). According to the authors, country image has four dimensions, namely, innovativeness, design, prestige and workmanship, and the same dimensions were used to evaluate product
101 categories also. A two-phase evaluation is undertaken to identify a plausible COO effect. In the first phase, country image dimensions are tested for their association with product category image dimensions. A strong positive association between any country and product category dimensions pair suggests that consumers identify that product category to be associated with that particular country, but whether such association is evaluated favourably or unfavourably is unknown at this stage. The COO effect is established if such association is favourably evaluated. The second phase of evaluation attempts to achieve this end. In this phase, country image dimensions of all the product category – country pairs which show significant positive association are tested for their association with willingness to purchase those product category – country pairs. The COO effect is said to be established for those pairs where significant positive associations are found. The Roth and Romeo (1992) operationalization of dimensions is as follows: Innovativeness – use of new technology and engineering advances; Design – appearance, style, colour, variety; Prestige – exclusivity, status, brand name reputation; Workmanship – reliability, durability, craftsmanship, manufacturing quality. Attributes representing each dimension as given above are developed in the product context, and some of these attributes might not have much significance in a service setup. To identify those attributes which could best represent the dimensions in the service context, expert opinion was sought from three service marketing faculty staff from a reputed Indian business school. Upon their consensus, four variables were chosen to represent four dimensions; accordingly, the variables’ variety, exclusivity, quality and innovativeness were chosen
102 to represent the dimensions design, prestige, workmanship and innovativeness, respectively. The final questionnaire comprised five parts. The respondent’s familiarity with entertainment forms and countries used in the study was measured using a five-point semantic differential scale, anchored at the ends as ‘highly unfamiliar’ and ‘highly familiar’. Country image dimensions were sought in the second part, and product image dimensions were measured in the third part. Each of these variables was measured using a five-point Likert scale. Consumers’ willingness to consume (watch) all possible entertainment form country matches was measured in the fourth part using a five-point semantic differential scale, anchored at the ends as ‘highly likely to watch’ and ‘highly unlikely to watch’. Respondents’ demographic details were sought in the fifth part. Analysis A single tail t-test for familiarity was performed on all entertainment forms as well as countries with the null hypothesis that the population mean will be ≤3. Significance at 1% was achieved for all the variables considered. These results suggest that the sample considered is quite familiar with all the countries and entertainment forms used in the study. Roth and Romeo (1992) proved that there exists only a single underlying dimension that explains product and country image, as all the four dimensions loaded on to a single factor in either case. A similar analysis was performed in this study
Bose and Ponnam for country image dimensions and product dimensions, respectively. Principal components analysis with varimax rotation was used so as to extract maximum possible variance from the data (Kim and Mueller, 1978). In both the cases, significance in Bartlett’s test at 1% and Kaiser – Meyer – Olkin measure of sampling adequacy greater than 0.5 was achieved which validates the factor analysis (Hair et al., 1998). These measures suggest that at least two dimensions considered are significantly correlated, and the sample considered is adequate to perform factor analysis (Table 1). Both factor solutions resulted in only one component. For a variable to be included in a factor, factor loading greater than 0.4 is suggested (Raubenheimer, 2004). In both the cases, this consideration is met which suggests an equitable participation of all the variables considered in forming a single underlying dimension (Table 2). Having validated the existence of single dimension for product image and country image, uni-dimensional measure for the image was accomplished using a summated scale, which was subsequently used in studying correlations among the nations’ image and the art forms’ image. All significant correlations 0.5 or more were considered for this study (in bold in Table 3). From the analysis, it can be found that Brazil could not be matched with any of the entertainment forms as extremely low correlations were observed with all entertainment forms. Russia was highly correlated with music and dance and circus, a significant correlation was also observed between Russia
Table 1 Qualifying Factor Analysis
Kaiser– Meyer– Olkin measure of sampling adequacy Bartlett’s test of sphericity Approx. x2 Degrees of freedom Significance
Country
Entertainment form
0.649 223.391 6 0
0.753 255.619 6 0
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COO effect on services Table 2
Factor Loadings
Innovativeness Variety Exclusivity Quality
Table 3
Movies Sig. M&D Sig. Theatre Sig. Circus Sig.
Country
Entertainment form
0.638 0.716 0.718 0.752
0.725 0.761 0.734 0.702
Country Vs. Entertainment Form Correlations Brazil
Russia
UK
USA
0.18 0.08 0.18 0.08 0.08 0.45 0.15 0.15
0.39 0 0.71 0 0.58 0 0.71 0
0.63 0 0.29 0 0.22 0.03 0.11 0.27
0.5 0 0.58 0 0.36 0 0.72 0
and theatre. The UK has the strongest correlation with movies alone, and USA has the strongest correlation with circus accompanied by a positive significant correlation with music and dance and movies. The country entertainment form pairs only suggest that consumers associate a particular entertainment form with a particular country and do not imply that consumers are willing to consume (watch) them. As a final step, to prove the COO effect, country image was checked for its association with willingness to consume art form originating from that country. A strong positive correlation proves that consumers not only relate an entertainment form to particular country but they are also likely to be entertained by such entertainment form and hence willing to consume them. A high significant correlation was achieved for all country entertainment form pairs considered above (Table 4). The result clearly proves the existence of the COO effect among Indian urban youth in their preference for various entertainment forms.
DISCUSSION The correlation matrix in Table 4 clearly suggests that the majority of entertainment forms originating from the USA are preferred over the rest. This could be attributed to the fact that popular Indian cable channels mostly telecast US-based content, and cable TV is a principal source of entertainment in India. UK image had a positive significant correlation with consumption intention for UK movies, and as expected, Russian image was highly correlated with consumption intention for Russian circus and Russian movies. Results obtained in the study are explained from the historical, political and economic contexts of the Indian subcontinent. India has been a British colony for nearly two hundred years; therefore, its culture had a considerable impact on the cultural anthropology of post colonial India. Post liberalization, Hollywood movies and music started focusing on the giant Indian entertainment industry and could engender considerable appeal among educated Indian
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Bose and Ponnam
Table 4 Willingness to Consume Country Entertainment Form and Country Image Correlations
Russia Pearson correlation Sig. (two-tailed) UK Pearson correlation Sig. (two-tailed) USA Pearson correlation Sig. (two-tailed)
Russian music and dance
Russian theatre
Russian circus
0.669
0.621
0.694
0
0
0
masses, especially the urban Indian youth. India’s familiarity with Russia can be credited to the close ties that India fostered with USSR post independence. As a result, cultural interactions took place between the two countries. In contrast, Brazil has always been a distant country to India, both culturally and geographically. Even until lately, there have been no significant cultural collaborations between India and Brazil, a reason that could be attributed to majority of the Indian population being unaware of the cultural aspects of Brazil, except for a few in relation to its football. Indian cable is the main source of entertainment in India and also acts as an effective medium in facilitating various entertainment forms to be accessible to Indian viewers. A current trend in Indian cable programming is consistent with the findings of the study, as most of the Indian cable programming for the urban class is either adopted or inspired from the occidental cultures and particularly the USA. Though the results portray the current situation, they also suggest a rising predilection among Indian viewers to appreciate entertainment forms other than popular music and dance and movies. Results also suggest the inclination of educated young Indian viewers to
UK movies
USA movies
USA music and dance
USA circus
0.708
0.703
0.798
0
0
0
0.572 0
appreciate other entertainment forms originating from countries other than USA. From a theoretical standpoint, COO effect has been largely dealt as a marketing construct considering the sheer volume of research done in the ‘product-based’ setting. A replication of the COO effect with respect to entertainment suggests its relevance even in non-marketing settings also. These results when viewed from a cognitive psychological frame could hint a dominant role played by entertainment forms in forming a country’s image. There is a growing acceptance of the concept of treating the nation as a brand (Kotler and Gertner, 2002). This implies that like brands, nations also enjoy a distinct image in the minds of the consumers (Keller, 1993). In such a context, given the significance of our results, we propose that entertainment forms originating from the country might also have a vital role in acting as agents (Gartner, 1994) in the formation of a nation’s brand image. MANAGERIAL IMPLICATIONS The current trend of US-based content in Indian cable broadcasting is asserted by this study. Further, the potential market for
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COO effect on services art forms such as Russian theatre, British movies and Russian music is identified. Results suggest that the Indian broadcasting industry and even the event managers could revisit their offerings in the light of this new information by offering content from countries such as Russia and Britain and exploring entertainment forms other than movies and pop music. In a more detailed study, the marketers can also focus on specific genres of a particular entertainment form originating from a country. For example, it is intuitively plausible to expect that a majority of Indian viewers might not be entertained by Russian pop music owing to the language barrier. However, classical music could be appreciated because it is mainly instrument-oriented. The current study suggests that urban Indian youth do not attribute any entertainment form to Brazil; however, Brazil’s association with the Samba dance form might be particularly notable in various other parts of the world. The explanation for this non-significant association lies in geographical, cultural and political distance. Although the results do not suggest an existing demand for such an entertainment form, strong significant positive correlations on music and dance with other countries in the second phase of analysis suggest that Indian youth, in particular, are inspired by music and dance; Samba as a dance form could become popular if it is made aware on a larger scale. Another major implication of COO effects on entertainment forms could be in the field of ‘nation branding’. It has been discussed earlier that entertainment forms originating from a country can act as agents in the formation of image about the country within the minds of the prospects. In the present scenario, many nations are willing to project a friendly, competent image to member nations to attract revenue in segments such as tourism, foreign direct investment, education, etc. It is suggested that content relating to various entertainment
forms which are originated within the nation can be aligned with the nation’s communication/public relations strategy as a means to achieve this desired end.
RESEARCH IMPLICATIONS Though the research suggests the existence of COO effects in the evaluation of entertainment, the validity of the results is currently confined to a particular segment of India. This research could be further extended by considering more entertainment forms and a different cultural setup/country. Such a study should generalize the existence of COO effects on media consumption. Comparing COO effects across nations for chosen entertainment forms could also make an interesting study in ascertaining the possible moderating/mediating role of culture in the consumption of various entertainment forms. Country image is lately being considered as a multi-dimensional construct (Lala et al., 2009). The result in this replication of methodology of Roth and Romeo (1998) suggests country image factor structure to be uni-dimensional which is consistent with methodology. However, in a different setup using the same methodology, if a multi-dimensional factor structure is detected, further analysis might become complicated. Thus, methodological contribution to advance Roth and Romeo’s (1992) evaluation of COO effect is needed.
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