The effects of country-of-origin fit on cross-border brand alliances

Purpose - The purpose of this paper is to investigate the impact of country-of-origin (COO) fit and consumer product knowledge on consumer brand attitudes in a cross-border strategic brand alliance (SBA). Design/methodology/approach - An experimental study with 207 subjects was conducted using a series of 2 (COO fit: low vs high COO fit) by 3 (product knowledge: low vs moderate vs high knowledge) by 2 (time: pre- vs post-alliance attitudes) mixed factorial design. Findings - The impact of COO fit on pre- and post-alliance changes in attitude toward the partner brand showed a nonlinear relationship from high-, to moderate-, to low-knowledge consumers. High COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for high- and low-knowledge consumers than for moderate-knowledge consumers. In contrast, low COO fit significantly and positively affected pre- and post-alliance changes in attitude toward the partner brand more for moderate-knowledge consumers than for high- and low-knowledge consumers. Practical implications - The effectiveness of cross-border SBAs differs with consumer product knowledge. For high- and low-knowledge consumers, high COO fit information had greater impact than low COO fit information in their product evaluation. However, when targeting moderate-knowledge consumers, providing sufficient product-related attribute information would help them to generate a favorable brand attitude. Originality/value - This study attempted to identify the complex relationship between COO fit and consumer product knowledge on the consumer decision-making process.