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 volumi-
nous literature exists in product context, only few studies have addressed COO effects in service con-
texts 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
itineraries of various international musicians
Today, entertainment is big business in and pop stars. Indian metropolitan areas are
India. Movies, music, theatre, etc. have now hosting various international theatre
started to find a niche among Indian consu- festivals which are exposing Indian upper
mers. The Hindi movie industry or Bolly- and middle class to international theatre
wood is the largest producer of films in the and drama.
world (UN News Center, 2009). There is a bur- Hollywood films are emerging to become
geoning growth in radio stations across the healthy competition for Bollywood (Hindi)
nation especially in metropolitan areas. films. Taran Adarsh, Indian film critic, points
Live entertainment, in forms like theatre, out that ‘earlier, Hollywood films were never
circus, etc., has gained popularity among all considered serious competition, but today
sections of Indian society. Theatres, in par- they are eating into the business of Bolly-
ticular, have garnered considerable consu- wood films’ (Sheikh, 2008). ‘Doordarshan’, a
mer interests owing to an upsurge in government-owned national channel, was
theatre festivals across the country. The the only available channel on Indian televi-
growth of the entertainment business in sion previously. Post liberalization, as a refor-
India has also been affected by the increase mative initiative, the Indian government
in foreign entertainment in the Indian allowed private and foreign broadcasters to
market. International films, particularly Hol- engage in operations in India. This move
lywood movies, have found a niche in the enabled Star, BBC and various other private
market. The same can be said for inter- and foreign media players to establish their
national music, particularly the pop genre. presence in India. Thus, the giant Indian
India has also found itself in the tour 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 televi-
sion 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 well-
grounded academic research is necessary to
understand the viewers’ media consumption
habits at this new juncture. Foreign entertain-
ment 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 consider-
able 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). Urban-
ization 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 activi-
ties 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) sur-
veyed 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 vari-
ables such as ‘. . .products, national
99
characteristics, economic and political back-
grounds, 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 per-
spective, 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 coun-
try’s production and marketing strengths
and weaknesses’.
Various studies have been conducted to
understand how the COO effect could influ-
ence perceptions about products. Kramer
et al. (2008) found out that consumers per-
ceive products from countries high in compe-
tence to be relatively more utilitarian and
countries high in warmth to be relatively
more hedonic. Jo (2005) in her study demon-
strated 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 ana-
lysed 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 contain-
ing 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 pur-
chase 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 ser-
vices that enhance product value, such as
warranties and guarantees and (c) cross-
national service comparisons, where ser-
vices 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 devel-
oped 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 counter-
parts 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 favourable-
ness 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 corre-
lations. Parameswaran and Pisharodi (1994)
developed a COO measurement scale using
factor analysis and incremental fit analysis.
Meng et al. (2007) adapted the Parames-
waran and Pisharodi (1994) scale using a
structural equation model to study COO
effects on tangible products across different
ethnic groups. Hsieh (2004) used correspon-
dence 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 enter-
tainment forms emanating from abroad. Fol-
lowing 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 metropoli-
tan 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 multi-
national 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 demo-
graphics 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 adminis-
tered, 95 valid responses were obtained
and used in the study.
METHODOLOGY
This study measures COO effect as pre-
scribed by Roth and Romeo (1992). Accord-
ing 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 associ-
ation is evaluated favourably or unfavour-
ably 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) operationali-
zation 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, exclusiv-
ity, quality and innovativeness were chosen
102
to represent the dimensions design, prestige,
workmanship and innovativeness, respect-
ively. 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 fam-
iliar’. 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. Con-
sumers’ 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 per-
formed 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 con-
sidered. 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 under-
lying 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
Table 1 Qualifying Factor Analysis
Kaiser– Meyer– Olkin measure of sampling adequacy
Bartlett’s test of sphericity Approx. x2
Degrees of freedom
Significance
Bose and Ponnam
for country image dimensions and product
dimensions, respectively. Principal com-
ponents analysis with varimax rotation was
used so as to extract maximum possible var-
iance 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 con-
sidered 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 study-
ing correlations among the nations’ image
and the art forms’ image. All significant cor-
relations 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 entertain-
ment forms as extremely low correlations
were observed with all entertainment
forms. Russia was highly correlated with
music and dance and circus, a significant cor-
relation was also observed between Russia
Country Entertainment form
0.649 0.753
223.391 255.619
6 6
0 0
COO effect on services 103

Table 2 Factor Loadings

Country Entertainment form

Innovativeness 0.638 0.725
Variety 0.716 0.761
Exclusivity 0.718 0.734
Quality 0.752 0.702

Table 3 Country Vs. Entertainment Form Correlations

Brazil Russia UK USA

Movies 0.18 0.39 0.63 0.5
Sig. 0.08 0 0 0
M&D 0.18 0.71 0.29 0.58
Sig. 0.08 0 0 0
Theatre 0.08 0.58 0.22 0.36
Sig. 0.45 0 0.03 0
Circus 0.15 0.71 0.11 0.72
Sig. 0.15 0 0.27 0

and theatre. The UK has the strongest corre-
lation with movies alone, and USA has the
strongest correlation with circus
accompanied by a positive significant corre-
lation with music and dance and movies.
The country entertainment form pairs
only suggest that consumers associate a par-
ticular 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 corre-
lation proves that consumers not only
relate an entertainment form to particular
country but they are also likely to be enter-
tained by such entertainment form and
hence willing to consume them. A high sig-
nificant correlation was achieved for all
country entertainment form pairs con-
sidered above (Table 4). The result clearly
proves the existence of the COO effect
among Indian urban youth in their prefer-
ence 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 cor-
relation 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 subconti-
nent. India has been a British colony for
nearly two hundred years; therefore, its
culture had a considerable impact on the cul-
tural 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
104
Table 4 Willingness to Consume Country Entertainment Form and Country Image Correlations
Russian
music and Russian
dance theatre
Russia Pearson 0.669 0.621
correlation
Sig. (two-tailed) 0 0
UK Pearson
correlation
Sig. (two-tailed)
USA Pearson
correlation
Sig. (two-tailed)
masses, especially the urban Indian youth.
India’s familiarity with Russia can be cred-
ited 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 enter-
tainment 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
Bose and Ponnam
USA
music
Russian UK USA and USA
circus movies movies dance circus
0.694
0
0.572
0
0.708 0.703 0.798
0 0 0
appreciate other entertainment forms orig-
inating from countries other than USA.
From a theoretical standpoint, COO effect
has been largely dealt as a marketing con-
struct considering the sheer volume of
research done in the ‘product-based’
setting. A replication of the COO effect with
respect to entertainment suggests its rel-
evance 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 treat-
ing 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 signifi-
cance of our results, we propose that enter-
tainment forms originating from the
country might also have a vital role in
acting as agents (Gartner, 1994) in the for-
mation 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
COO effect on services 105

art forms such as Russian theatre, British forms which are originated within the
movies and Russian music is identified. nation can be aligned with the nation’s com-
Results suggest that the Indian broadcasting munication/public relations strategy as a
industry and even the event managers could means to achieve this desired end.
revisit their offerings in the light of this new
information by offering content from
countries such as Russia and Britain and RESEARCH IMPLICATIONS
exploring entertainment forms other than
Though the research suggests the existence
movies and pop music. In a more detailed
of COO effects in the evaluation of entertain-
study, the marketers can also focus on
ment, the validity of the results is currently
specific genres of a particular entertainment
confined to a particular segment of India.
form originating from a country. For
This research could be further extended by
example, it is intuitively plausible to expect
considering more entertainment forms and
that a majority of Indian viewers might not
a different cultural setup/country. Such a
be entertained by Russian pop music owing
study should generalize the existence of
to the language barrier. However, classical
COO effects on media consumption. Compar-
music could be appreciated because it is
ing COO effects across nations for chosen
mainly instrument-oriented.
entertainment forms could also make an
The current study suggests that urban
interesting study in ascertaining the possible
Indian youth do not attribute any entertain-
moderating/mediating role of culture in the
ment form to Brazil; however, Brazil’s associ-
consumption of various entertainment
ation with the Samba dance form might be
forms. Country image is lately being con-
particularly notable in various other parts of
sidered as a multi-dimensional construct
the world. The explanation for this non-signifi-
(Lala et al., 2009). The result in this replica-
cant association lies in geographical, cultural
tion of methodology of Roth and Romeo
and political distance. Although the results
(1998) suggests country image factor struc-
do not suggest an existing demand for such
ture to be uni-dimensional which is consist-
an entertainment form, strong significant
ent with methodology. However, in a
positive correlations on music and dance
different setup using the same methodology,
with other countries in the second phase of
if a multi-dimensional factor structure is
analysis suggest that Indian youth, in particu-
detected, further analysis might become
lar, are inspired by music and dance; Samba
complicated. Thus, methodological contri-
as a dance form could become popular if it
bution to advance Roth and Romeo’s (1992)
is made aware on a larger scale.
evaluation of COO effect is needed.
Another major implication of COO effects
on entertainment forms could be in the
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