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Academy of Sustainable Social- and Technologic Development Master Thesis in Business Administration, FÖA400, 15 credits

Brand gap and the effect of country-of-origin

A consumer survey in Rhone-Alps

2012-06-01

Author: Karin Olsson Tutor: Eva Maaninen-Olsson

Examinator: Cecilia Lindh

Date: 1 Juin 2012

Niveau: Master en administration des affaires, 15 crédits Institution: École de développement social et technologique durable,

Université de Malardalen

Auteur: Karin OLSSON

Titre:

de consommateurs en Rhône-Alpes. Mentor: Eva MAANINEN-OLSSON, Doctorat en économie Mots-clés: suédoise, identité de marques, écart dimage de marque, l , Aaker, model Big Five, France, Rhône-Alpes, Renault Trucks, Novembal/Tetra Pak, IKEA Questions de recherche: Quelles sont les images de marque et les identités de marque de Renault Trucks, Novembal/Tetra Pak et IKEA? Y-a-t-il un écart de marque? L a-t-il un effet sur la perception de marque? Comme le sexe du répondant influence sa perception de la marque But: Le but de cette thèse est de décrire, comparer et analyser l'existence de marque et l'effet du pays d'origine. des recommandations de management aux entreprises étudiées. Méthode: Un questionnaire quantitatif avec les tendances qualitatives a été éffectué auprés de 42 personnes, et analysé. De plus, des interviews ont été conduites auprés de trois entreprises suédoises, avec la Chambre de commerce Suédoise de lyse.

Conclusions:

marques des enterprises. Un écart de marque est présent. Le modèle mportant dans

100% des perceptions et processus

parti-pris, ethnocentrisme et sont présents et influencent les attitudes et décisions consomma- teurs. Les hommes et les femmes ont des attitudes et des différent vis-à- pays

Abstract -of-

Date: 1st June 2012

Level: Master in Business Administration, 15 credits Institution: School of Sustainable Development of Society and Technology,

Auteur: Karin Olsson

Title: Brand gap and the effect of country-of-origin: A consumer survey in Rhone-Alps.

Tutor: Eva Maaninen-Olsson, PhD in Economics

Key words: Swedish brand image, brand identity, brand gap, country-of-origin effect, Aaker, Big five model, France, Rhone-Alps, Renault

Trucks, Novembal/Tetra Pak, IKEA.

Research questions: What are the brand images and brand identities of Renault Trucks, Novembal/Tetra Pak and IKEA? Is there a brand gap? How does country-of-origin have an effect on the perception of the brands? perception of the brand and the effect of country-of-origin? Purpose: The purpose of this thesis is to describe, compare and analyze the existence of brand gaps and the effect of country-of-origin with the final intention to provide management recommendations for the studied companies. Method: A quantitative consumer survey of 42 subjects was collected and analyzed. In addition, interviews were conducted with three Swedish companies, as well as an interview with the Swedish

Chamber of Commerce in Lyon. model

was used in the analysis. Conclusions: The study demonstrated the brand identities and brand images of the companies. A brand gap is widely present. (1997) model had to be modified and includes new dimensions and traits. Country-of-origin (COO) plays a role in 100% of the purchasing process. COO bias, ethnocentrism and animosity are present and play a role in the 42 co decisions in Rhone-Alps. Men and women have different attitudes and degree of ethnocentrism towards the effect of country-of-origin (COE).

Acknowledgment

I would like to thank my mentor PhD in Economics Eva Maaninen-Olsson and the company respondents to this thesis; Lucile Magnoler at the communication department headquarters of Renault Trucks, Rémi Gauthier previous quality employee of Novembal/Tetra Pak headquarters in France, Laurence Pradel, marketing manager at Novembal/Tetra Pak, Chamber of Commerce in Lyon whom all were willing to share their precious time. I would also like to thank all the wonderful respondents in the survey with whom I was able to complete this study. I do not want to forget the discussion groups that have been an extra support in finalizing the writing. The work is dedicated to Luc, my family and the city of

Lyon. Great thanks to you all!

Karin Olsson

June 1st 2012, Lyon France

(Duchess, 1878). rise, (Ellwood, 2002, p.12).

Table of Content

1 INTRODUCTION ........................................................................................................................... 1

1.1 BRAND, IMAGE & COUNTRY-OF-ORIGIN EFFECTS .................................................................... 1

1.2 SWEDENS PRESENCE IN FRANCE ................................................................................................. 1

1.3 PROBLEM DISCUSSION .................................................................................................................. 2

1.4 RESEARCH QUESTIONS ................................................................................................................. 3

1.5 PURPOSE ........................................................................................................................................ 3

1.6 DISPOSITION .................................................................................................................................. 3

2 THEORY .......................................................................................................................................... 4

2.1 BRANDING...................................................................................................................................... 4

2.1.1 BRAND IDENTITY AND BRAND IMAGE ......................................................................................... 5

2.1.2 BRAND PERSONALITY PERCEPTION AND MODEL ......................................................................... 6

2.2 COUNTRY-OF-ORIGIN .................................................................................................................. 7

2.2.1 COMPANY PRACTISES .................................................................................................................. 7

2.2.2 CONSUMER ATTITUDES ............................................................................................................... 7

3 METHODOLOGY .......................................................................................................................... 9

3.1 BIRTH AND PREVIOUS WORK ........................................................................................................ 9

3.2 THE SELECTED COMPANIES ......................................................................................................... 9

3.3 CONSUMER SURVEY ...................................................................................................................... 9

3.4 OPERATIONALIZATION ............................................................................................................... 10

3.5 COLLECTION OF DATA ................................................................................................................ 11

3.5.1 PRIMARY DATA .......................................................................................................................... 11

3.5.2 SECONDARY DATA ..................................................................................................................... 13

3.6 METHOD OF ANALYSIS ................................................................................................................ 13

3.7 VALIDITY AND RELIABILITY....................................................................................................... 14

4 EMPIRICAL DATA ..................................................................................................................... 15

4.1 INTERVIEW WITH THE SWEDISH CHAMBER OF COMMERCE IN FRANCE ............................... 15

4.2 RENAULT TRUCKS ...................................................................................................................... 15

4.2.1 BRANDING ................................................................................................................................. 15

4.2.2 COUNTRY-OF-ORIGIN ................................................................................................................ 16

4.3 NOVEMBAL A TETRA PAK COMPANY ..................................................................................... 17

4.3.1 BRANDING ................................................................................................................................. 17

4.3.2 COUNTRY-OF-ORIGIN ................................................................................................................ 17

4.4 IKEA ............................................................................................................................................ 18

4.4.1 BRANDING ................................................................................................................................. 18

4.4.2 COUNTRY-OF-ORIGIN ................................................................................................................ 19

4.5 CONSUMER SURVEY .................................................................................................................... 19

4.5.1 BRANDING ................................................................................................................................. 19

4.5.2 COUNTRY-OF-ORIGIN ................................................................................................................ 23

5 ANALYSIS ..................................................................................................................................... 26

5.1 BRANDING.................................................................................................................................... 26

5.2 COUNTRY-OF-ORIGIN ................................................................................................................. 30

5.2.1 COMPANY PRACTISES ................................................................................................................ 30

5.2.2 CONSUMER ATTITUDES ............................................................................................................. 31

6 CONCLUSIONS ............................................................................................................................ 34

6.1 RECOMMENDATION FOR MANAGEMENT ................................................................................... 35

6.2 FUTURE STUDIES ......................................................................................................................... 35

REFERENCES .................................................................................................................................... 36

APPENDIXES (A) ............................................................................................................................... 41

A1: INTERVIEW GUIDE 1 - SWEDISH CHAMBER OF COMMERCE IN LYON ....................................... 41

A2: INTERVIEW GUIDE 2 - COMPANIES .............................................................................................. 41

A3: CONSUMER SURVEY QUESTIONS .................................................................................................. 42

A4: CONSUMER SURVEY DATA ............................................................................................................ 43

Table of figures, images or tables

Table 1: Country Brand Index p.1

Image 1: Rhone-Alps Region p.2

Figure 1: p.6

Figure 2: Research Design Model p.10

Table 2: Sweden Top-of-Mind p.20

Table 3: Sweden General Image p.20

Table 4: Companies General Image p.21

Table 5: p.21

Table 6: Novembal/Tetra Pak Brand Image p.22

Table 7: Renault Trucks Brand Image p.22

Table 8: Average Consumer Positivism p.23

Table 9: COO and Animosity p.23

Table 10: Product Category p.24

Table 11: Ethnocentrism p.24

Table 12: Swedish COE p.25

Table 13: COE Local Production p.25

Figure 3: p.26

Figure 4: p.27

Figure 5: Renault Trucks Brand Gap p.28

Table 14: Advantages or Disadvantages p.41

Table 15: Survey Data Average Swedish Brand Positivism p.43 Table 16: Survey Data All Top-of-Mind Companies p.44 Table 17: Survey Data The Companies Brand Image Depending on Sex p.44 Table 18: Survey Data Respondent Data and COE p.45

List of Abbreviations

B2B Business two Business

CETSCALE c Tendency Scale

COE Country-of-Origin Effect

COO Country-of-Origin

List of Definitions

Brand gap The brand gap is the distance between business strategy (what the company wants to be) and customer experience (how people (Alvey, 2003). Brand identity The image the sender wants the recipients to perceive.

Brand image The image or perception of a brand.

1

1 Introduction

The first chapter mentionproblem discussion, research questions as well as the purpose of the study. It will end with an outline of the thesis.

1.1 Brand, Image & Country-of-Origin Effects

-known fact that we in 2012 are living in a globalized world with a higher amount of products and higher degrees of foreign goods. Due to this fact, Sivakumar (2009) and Kotler, Shalowitz and Stevens (2008) believe that companies need to differentiate themselves and achieve a competitive image by coinciding identity and image messages from their appearance, performance, characteristics and brand name etc. However consumers tend to also link countries, their companies and products to their preconceptions about their origin. This effect is named country-of-origin effect (COE). (Daye & VanAuken, 2008) Brymer (2003, p.2) states that the brand of a country affects what people think about its products. If the reputation is apparent and thought positive, which can be seen with Germany and its car production, these products appears t is an example of national preferences, with each country favouring its own brand, German brands are always the second choice.

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