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Tourism Management 52 (2016) 298e309

Contents lists available at ScienceDirect

Tourism Management
journal homepage: www.elsevier.com/locate/tourman

From branded exports to traveler imports: Building destination image


on the factory floor in South Korea
Jay Sang Ryu a, J.N. Patrick L'Espoir Decosta b, *, Mikael Ande
hn c
a
Texas Christian University, 2722 West Berry Street, Fort Worth, TX 76109, USA
b
Australian National University, 26 Kingsley Street, Acton 2601, ACT, Australia
c
Aalto University School of Business, P.O. Box 21210, FI-00076 Aalto, Finland

h i g h l i g h t s

 The summative meaning from association to a country co-defines a country's image.


 Destination achieves an extended commercial relevance by transcending commerciality of goods.
 PCI affects tourists' decision to ultimately impact their visiting intentions to the country.
 Proposes a path model that evaluates theoretical constructs of PCI with those of TDI, in reverse.
 Past product purchasing is a significant indicator of visit intention to a country.

a r t i c l e i n f o a b s t r a c t

Article history: In international marketing, it is believed that a positive image of an exporting country positively in-
Received 19 February 2015 fluences consumer behavior toward products from that country. An emerging notion is that a reverse
Received in revised form effect may exist in which positive evaluations of products lead to equally positive image of the origin
8 July 2015
country. Based on a sample of 500 American purchasers of South Korean products the relationship be-
Accepted 11 July 2015
Available online xxx
tween product purchasing and intention to visit is explored using SEM in a model that links product
evaluation with an intention to visit. The study confirmed that consumers' willingness to interact with
South Korea based on past product purchasing was a significant indicator of their intentions to visit the
Keywords:
Product-country image
country.
Tourism-destination image © 2015 Elsevier Ltd. All rights reserved.
Commercial relevance of place
Country-of-origin effect
Country brand image
Desired interaction
Visit intention

1. Introduction country-to-good has recently been called into question (White,


2012). Indeed, country image not only affects the evaluation of
Country image constitutes a crucial factor in international goods from a country. Goods, brands and services that are mar-
marketing, as notions, stereotypes and ideas about countries and keted as having a particular origin in turn have an effect on the
their products are a pervasive factor in consumer judgment and image of the country with which they are associated (White,
decision making (Zeugner-Roth & Diamantopoulos, 2009). The 2012).
implicit underlying assumption that the country-of-origin effect is The implication is that an oscillatory influence exists between
a relevant marketing phenomenon only in the direction of brands, products and services that goes beyond mere co-
dependence between brands. It therefore follows that the image
of products, services and brands associated with a particular
country is defined in part by the country's image (Bilkey & Nes,
* Corresponding author.
E-mail addresses: Jay.ryu@tcu.edu (J.S. Ryu), patrick.lespoirdecosta@anu.edu.au 1982; Keller, 1993; Verlegh & Steenkamp, 1999). Similarly, a
(J.N.P. L'Espoir Decosta), mikael.andehn@aalto.fi (M. Ande hn). country's image can be influenced by the aggregate image of the

http://dx.doi.org/10.1016/j.tourman.2015.07.004
0261-5177/© 2015 Elsevier Ltd. All rights reserved.
J.S. Ryu et al. / Tourism Management 52 (2016) 298e309 299

products, services and brands associated with the country (White, ultimately integrates the various instances of the commercial
2012). The nature of place, in the phenomenological sense, is relevance of origin to place image.
therefore generally understood to be contingent upon the mean-
ing attributed to it (Tuan, 1977). The oscillatory mechanism 2. Country image: expressing the commercial relevance of
involved is derived from the notion that consumers arrive at a place image
summative value judgment, or attitude, through a subjective
weighting of the aggregate sum of associations relating to the In marketing literature, country image has been operationalized
object they are evaluating (Keller, 1993). This summative value differently depending upon the context and scope of research. From
judgment, or attitude (Ajzen, 2001; Ajzen & Fishbein, 1977), is a general perspective, country image refers to consumers' overall
never static; it remains in flux such that the dynamics of meaning mental maps and opinions about a country based on the informa-
do not follow a linear transfer path but rather move as a tion and associations attached to the country (Kotler, Haider, &
pendulum. In other words, the meaning derived from an associ- Rein, 1993). These country-specific knowledge structures and as-
ation to a country does not rest statically with, for instance, a sociations include “representative products, economic and political
product, service or brand, but instead meshes with a pre-existing maturity, historical events and relationships, traditions, industri-
meaning attributed to the object. This new summative meaning alization and the degree of technological virtuosity” (Bannister &
then transfers back to become a co-defining element of the Saunders, 1978, p. 562).
country image. Naturally, when country image is considered in conjunction
At a superficial level, the oscillatory nature of meaning with consumer products, the term reflects the relationship be-
through association sheds light on a co-dependence between tween a country and products from (or made in) that country
image and commerciality. Specialization and the formation of (Hooley, Shipley, & Krieger, 1988; Li, Fu, & Murray, 1998;
clusters are a particularly relevant area in which an individual Papadopoulos & Heslop, 2002), or more accurately, a perceived
firm and its image can have a significant impact on a country's relationship between a product and a country (Magnusson,
long-term economic development. This can often also be true at Westjohn, & Zdravkovic, 2011). Consumers often evaluate the
the sub-national level, such as in provinces, states, cities and quality of a product based on these countryeproduct associations
regions. In the case of countries, it is perhaps more reasonable to (Knight & Calantone, 2000; Laroche, Papadopoulos, Heslop, &
assume that the firms, products and brands perceived as being Mourali, 2005) and prefer products from a country that they
from a particular country play a role in the formation of atti- perceive favorably (van Ittersum, Candel, & Meulenberg, 2003).
tudes toward the country as a whole, as well as in connection Certainly, perceptions and generalizations made about a country
with various aspects of its culture. In other words, place as- by relating products to the country serve to reinforce PCI. Ac-
sumes enhanced relevance by transcending commerciality of cording to Nebenzahl, Jaffe, and Lampert (1997), PCI not only
goods to extend into service-related venues, one of which is provides people with images to support their evaluation of the
tourism. country's brands and products but also ultimately influences their
This paper is consistent with White (2012) in questioning the decisions on whether to purchase products from that country. In
assumption that the country-of-origin effect in marketing is order to embrace the multidimensionality and distinctiveness of
pertinent only in the direction of country-to-good. Regardless of the country-image construct (Laroche et al., 2005; Zeugner-Roth &
the nature of the commercial activity involved, such as goods, Diamantopoulos, 2009), this reasoning should by extrapolation
services, places, or persons, brand marketing connected with a also apply to the purchase of tourism products and offerings from
particular origin also exerts an influence on the image percep- that country.
tion of the country with which it is associated (ibid), which is According to Nadeau et al. (2008), an explanation of the
also referred to as Product-Country Image (PCI). In other words, possible effect of both product and country images on consumer
the evaluation of commercial relevance based on the particular attitudes toward a country and its products is in fact embedded
country of origin also affects the country image and in turn within PCI theory. Read and dissected in reverse, the implication is
consumer behavior (cf. Ajzen & Fishbein, 1977; Keller, 1993). As that product image influences country image. This can be
such, image provides information and knowledge cues to facili- observed, for example, in the practice of fashion firms to connect
tate the decision making processes (Gertner & Kotler, 2002). This their brands to fashion-centered countries such as France and
paper postulates that in the case of tourists' decision making and Italy. Fashion firms use these countries' images as the epicenter of
behavior, country image as expressed in PCI ultimately impacts style makers and trendsetters (Amine, 2008; Hauge, Malmberg, &
their intention to visit a destination. Succinctly, this study pro- Power, 2009), reinforcing the notion of a reciprocal relationship
poses that any attempt to relate PCI with the image of a desti- between country image and product image (Jansson & Power,
nation as perceived by tourists (Tourism Destination Image, or 2010). This underscores the premise of this paper: while con-
TDI) requires the testing of a model that explicitly incorporates sumers judge products and brands based on the name of their
attitudinal theoretical constructs for country images based on its country of origin, their perception of a country is also affected by
products to shed light on tourists' intentions to visit a place. In the image its products convey (White, 2012). For example, just as
that sense, through a survey that encompasses product evalua- “being South Korean” conveys a certain meaning to the Samsung
tion, the perception of country image and plans to visit South brand in the minds of consumers, the idea that Samsung is South
Korea among Americans, this study bridges the gap revealed in Korean also contributes to an understanding of the country of
the literature to draw together the fields of PCI and TDI (see South Korea.
Hankinson, 2004; Mossberg & Kleppe, 2005). It previses the A country image effect on consumer behavior has been a
integrative models of Nadeau, Heslop, O'Reilly, and Luk (2008) common topic in marketing, but the term has not been consis-
and of Elliot, Papadopoulos, and Kim (2010) with a path model tently defined (Zeugner-Roth & Diamantopoulos, 2009). None-
that engages the evaluation of theoretical constructs of PCI theless, “place” is a conceptual construct of exploration that is
pertaining to origin effects with those of TDI, in reverse. That is, it common to both PCI and TDI. Place is broadly defined here to
300 J.S. Ryu et al. / Tourism Management 52 (2016) 298e309

refer to a geopolitical entity that includes country, state, province competitive assets in the combination of brand name and signif-
and region. Place image as a concept is central to theories of icance enhances the image of the country with which the brand,
place branding and marketing; however, as Elliot et al. (2010) product or company are associated (Loo & Davies, 2006) in an
note, its complexity and theoretical implications for both PCI increasing number of contexts (Aaker, 1991), including tourism
and TDI have not yet been fully circumscribed and thus require and travel. The implication is that a co-branding strategy exists
further scrutiny. Given the premise in this study of the oscillatory between a country and its products as an effective marketing
nature of the influences between the relevance of commerciality practice for brand positioning and communication of both the
(from goods to services) and image, the theoretical discussion country and its products in an increasingly competitive global
necessitates navigation between PCI and TDI through the initial marketplace (Balabanis & Diamantopoulos, 2004; White, 2012).
stage of product perception to the final effects (of image) on This product-country co-branding phenomenon is part of a
attitude formation toward a place as expressed in behavior, such conscious branding effort countries employ to attract, for
as tourists' intention to visit. Furthermore, if the image of a place example, investment, skilled workers and tourists (Gertner &
has a significant influence on consumer behavior, the theoretical Kotler, 2002). As tourism constitutes one of the most relevant
shortcut between PCI and TDI should lie in attitude theory commercial activities in the contemporary global economy
(Nadeau et al., 2008). Papadopoulos, Heslop, and Bamossy (Ashley, De Brine, Lehr, & Wilde, 2007), branding a country as a
(1990), Parameswaran and Pisharodi (1994), Laroche et al. tourism destination (Zevedo, 2004) requires the destination im-
(2005) and Zeugner-Roth and Diamantopoulos (2009) recognize age to be constructed and conveyed, ultimately influencing
that consumer attitude is the most appropriate means to clarify consumers' intentions to visit the place (Beerli & Martin, 2004;
the operationalization of country image, as it serves to concep- Chen & Tsai, 2007; Kim & Richardson, 2003). In that sense,
tualize and measure country image. While attitude is the com- proposing an evaluative model of these constitutive elements of
posite of cognitive, affective and conative responses to the object, place branding (Anholt, 2004) requires an integrative approach
the first two independently affect the last (Liska, 1984). This that reconciles the role played by the products of a particular
study defines and operationalizes country image as the sum- country, through the creation of a favorable country image, in
mation of consumers' cognitive (beliefs) and affective determining the attitude of potential tourists toward a destina-
(emotional) responses (to PCI) toward a particular country, which tion (evaluation) as expressed in their travel plans. This study
leads to certain behaviors regarding the country (conative relates American consumers' attitudes toward South Korean
response), including the desire to interact with the country products to their summative evaluation as expressed in their
through tourism. intentions to visit the country. Based on the different levels
involved in the summative evaluation in consideration, the hy-
potheses drawn from the above discussion are developed in
2.1. Country brand image through products
phases.

Succinctly, consumers evaluate a product based on the factors


associated with the product (Szybillo & Jacoby, 1974), which leads 2.2. Development of hypotheses
them to form a summative judgment (attitude) toward the
product; a judgment that ranges from good to bad or pleasant to 2.2.1. Product evaluation to product attitude
unpleasant (Ajzen, 2001). In the context of country-of-origin ef- There is a general consensus that consumers form their atti-
fect, a country functions as one important factor that helps con- tudes toward a product based on their evaluation of the product
sumers form a judgment toward a product. To many, country in various contexts (Erickson, Johansson, & Chao, 1984; Manrai,
image affects consumers' evaluation of and attitudes toward Lascu, & Manrai, 1998). Knight and Calantone (2000) found that
products from that country (e.g., Han, 1989; Laroche et al., 2005; U.S. and Japanese consumers form favorable attitudes of a product
Verlegh & Steenkamp, 1999; Zeugner-Roth & Diamantopoulos, when they perceive it to be reliable and of good quality. Carter
2009). Amine (2008) claims that the impact of country image is (2009) reached a similar conclusion regarding U.S. consumers
identified across different product categories, such as hedonic by demonstrating a positive link between product evaluation and
(e.g., apparel) and utilitarian products (e.g., automobiles and cell product attitude. More recently, Lee, Lee, and Garrett (2013)
phones). However, because other countries can easily copy the confirmed that consumers' satisfactory judgment on product
features of these products, brands are generally considered sig- functionality leads to positive attitudes toward the product. In
nificant means of product differentiation (Gertner & Kotler, 2002). view of the earlier theoretical discussion of a potential linkage
But, as Han and Terpstra (1988) assert, the influence of country between consumers' attitudes toward a country's products and
image on consumer product evaluation and attitude is often their intention to visit that country based on their perception of
greater than a brand name. It is logical to assume that firms, the country's image, this study proposes the following
products and brands that are perceived as constituents of a hypothesis:
particular country play a role in the formation of attitudes toward
the country as a whole in various contexts, including its desir- H1: Consumers' evaluation of South Korean products has a
ability as a tourist destination. This supports the emerging notion positive impact on their attitude toward the country's products
that a reverse effect may exist in the relationship between prod- and offerings.
uct- and country-image perceptions. That is, consumers' percep-
tion of a country's image may be influenced by their perception of
products from that particular country (Sun & Paswan, 2011; 2.2.2. Product evaluation to country image
White, 2012; Zevedo, 2004), and their perception of product White (2012) posited that consumers develop the image of a
quality is a major determinant in shaping their image of the country based on their evaluation of products from that country
country (Sun & Paswan, 2011). The reputation of product quality and validated this proposition across a variety of product cate-
or a company's craftsmanship expressed as constitutive gories and countries with different levels of economic
J.S. Ryu et al. / Tourism Management 52 (2016) 298e309 301

development. Sun and Paswan (2011) found that the positive


relationship between product evaluation and country imaged-
people affect and desired interactiondwas supported in the case
of both hedonic products (backpacks) and utilitarian products
(color televisions) among U.S. consumers (a developed country)
and Chinese consumers (a developing country). Although their
study did not include country belief as a component of country
image, several researchers have established country image as a
composite of country belief, people affect, and desired interaction
(e.g., Heslop & Papadopoulos, 1993; Laroche et al., 2005;
Papadopoulos et al., 1990; Zeugner-Roth & Diamantopoulos,
2009). Based on these theoretical arguments from extant litera-
ture, this paper postulates the following hypotheses:

H2a: Consumers' evaluation of South Korean products has a


positive impact on their beliefs toward South Korea.
H2b: Consumers' evaluation of South Korean products has a
positive impact on their affection toward the people of South Fig. 1. Proposed research model.
Korea.
H2c: Consumers' evaluation of South Korean products has a
positive impact on their desire to interact with South Korea.
country image:

2.2.3. Product attitude to country image H4: Consumers' beliefs toward South Korea have a positive
Consumer attitudes toward products from a specific country are impact on their desire to interact with South Korea.
a significant determinant affecting the image of a country (Martin & H5: Consumers' affection toward South Koreans has a positive
Eroglu, 1993). In a similar vein, consumer perceptions of a country's impact on their desire to interact with South Korea.
brand image can be positively influenced by positive experience
with the country's cultural products (Jun & Cho, 2006). Kang and
Yang (2010) demonstrated that the reputation of South Korean 2.2.5. Desired interaction to intention to visit
corporations enhances consumers' attitudes toward its products According to Crompton (1979), consumers' need for social in-
and the country, indicating a possible positive relationship between teractions is a primary factor in their decision to become tourists.
South Korea and its products (those made in South Korean factories Uysal and Jurowski (1994) confirm that consumers decide to visit a
affiliated with South Korean corporation). There does not appear to particular destination in order to facilitate social interaction. More
be any study that explicitly examines the relationship between recently, several researchers have established a positive relation-
product attitude and country image, although there are references ship between desired interaction and intention to visit a foreign
in the literature to the fact that country image is comprised of country in various tourism settings. Chen and Chen (2011) argue
country belief, people affect, and desired interaction, providing a that a desire to interact with local people and cultures motivate
basis for the following hypotheses: consumers to participate in international volunteer tourism. Simi-
larly, when selecting a foreign country for study abroad, students
H3a: Consumers' attitudes toward South Korean products have a place significant emphasis on social factors, such as interacting
positive impact on their beliefs toward South Korea. with people in the host country and learning about its culture
H3b: Consumers' attitudes toward South Korean products have (Nyaupane, Paris, & Teye, 2011). In light of these findings, this paper
a positive impact on their affection toward the people of South subsequently posits:
Korea.
H3c: Consumers' attitudes toward South Korean products H6: Consumers' desire to interact with South Korea has a posi-
have a positive impact on their desire to interact with South tive impact on their intention to visit South Korea.
Korea.
Fig. 1 presents the proposed research model illustrating the
causal relationships among constructs of interest to this study.
2.2.4. Country belief and people affect to desired interaction
Many researchers have incorporated cognitive, affective, and 3. Method
conative dimensions of attitude from attitude theory to explore
country belief, people affect, country image and desired interac- 3.1. Measures
tion with the country, respectively (Heslop & Papadopoulos, 1993;
Laroche et al., 2005; Zeugner-Roth & Diamantopoulos, 2009). The survey instrument that was employed to assess the pro-
Zeugner-Roth and Diamantopoulos (2009) posit that consumers' posed model in this study is comprised of three sections (see ap-
beliefs and affection toward a country and its people indepen- pendix 1). The first measures how consumers perceive the image of
dently influence their desire to interact with attitude (Liska, South Korean products in general. Several researchers have justi-
1984). By investigating Belgium consumers' perception of the fied adopting a “global” evaluation of general products rather than
country images of Denmark and Spain, Brijs (2006) empirically specific products or brands from a particular country (Crawford &
confirmed that there are positive causal paths linking country Garland, 1988; Laroche et al., 2005). A three-item semantic differ-
belief and people affect to desired interaction. This paper ad- ential scale used in Bluemelhuber, Carter & Lambe's study (2007)
vances the following hypotheses based on the preceding works was adapted to examine consumers' attitudes toward South
regarding the interrelationships among the three components of Korean products, and consumers' evaluations of South Korean
302 J.S. Ryu et al. / Tourism Management 52 (2016) 298e309

products were measured by six items adapted from the previous product evaluation scale was excluded from the analysis due to a
study (Klein, Ettenson, & Morris, 1998). The measurement used the low squared multiple correlation (Hooper, Coughlan, & Mullen,
seven-point Likert scale, with responses ranging from “strongly 2008). The fit statistics met the suggested cutoff values (Hu &
disagree” (1) to “strongly agree” (7). Bentler, 1999; Steiger, 2007) and confirmed an excellent model
The second section measured how consumers perceive the im- fit: c2 ¼ 394.24 with 137 df at p-value < 0.001; RMSEA of 0.063;
age of South Korea. Laroche et al. (2005) approached country image CFI of 0.99; and SRMR of 0.32. Cronbach's alpha for each construct
through consumers' cognitive, affective, and conative perceptions was in the range of 0.89e0.98, and factor loadings ranged from
toward the country. These perceptions were reflected in con- 0.73 to 0.98 with p-values < 0.001. The composite reliability (CR)
sumers' country beliefs (cognitive), people affection (affective), and ranged from 0.89 to 0.98, and the average variance extracted (AVE)
desired interactions (conative) and were measured through three ranged from 0.73 to 0.95. The results of the measurement model
semantic differential scales, each consisting of three items, also and descriptive statistics are presented in Tables 1 and 2,
using the Likert scale. respectively.
The last section of the survey included two items to examine
consumers' intention to visit South Korea using the Likert scale, 4.2. Structural model and hypothesis testing
adapted from a behavioral intention study by Davis, Bagozzi, and
Warshaw (1989). The demographic information of survey partici- Structural equation modeling (SEM) was performed to evaluate
pants was also collected in this section. the proposed research model and hypotheses. The overall fit
indices suggested a good model fit: c2 ¼ 470.53 with 142 df at p-
3.2. Sampling and data collection value < 0.001; RMSEA of 0.069; CFI of 0.99; and SRMR of 0.052
(see Fig. 2). All proposed paths in the research model were sta-
This study collected data through an online survey from a con- tistically significant. The standardized path coefficients are shown
sumer panel of an online research firm. The survey participants in Table 3.
were U.S. male and female consumers aged 18 years and above, and Consumer evaluation of South Korean products had a positive
the sample size was set at 500. Korean-Americans were excluded impact on consumer attitudes toward the products, supporting
from the sampling to avoid any favorable bias toward South Korea Hypothesis 1 (b ¼ 0.71, p < 0.001). It also positively affected con-
and its products. In addition, incomplete surveys were excluded, sumer beliefs toward South Korea, supporting H2a (b ¼ 0.62,
which explains the fact that no missing data has been identified in p < 0.001), consumer affection toward its people, supporting H2b
the results. The sample consisted of 311 females and 189 males with (b ¼ 0.41, p < 0.001), and consumer desire to interact with the
a mean age of 46.5. Various sample size testing methods were country, supporting H2c (b ¼ 0.13, p < 0.01).
referenced to assess the adequacy of the sample size. Siddiqui With regard to the relationship between consumer attitudes
(2013) & Stevens (2002) recommended 15 cases per indicator as toward the product and the country image, the results sup-
a cutoff sample size. Westland (2010) suggested the following ported the hypothesized relationships. Consumer attitude to-
equation: n  50r2 e 450r þ 1100, where n is sample size and r is ward South Korean products had a positive impact on consumer
the ratio of indicators to latent variables, to identify the minimum beliefs toward South Korea (H3a: g ¼ 0.14, p < 0.001), consumer
sample size. The sample size of 500 in the present study satisfies affection toward its people (H3b: g ¼ 0.37, p < 0.001) and
the lower sample size threshold for structural equation modeling consumer desire to interact with the country (H3c: g ¼ 0.18,
(Westland, 2010). p < 0.001).
Both consumer beliefs toward South Korea and consumer
3.3. Analysis affection toward South Koreans increased their desire to interact
with the country. Thus, H4 (g ¼ 0.21, p < 0.001) and H5
This study used Cronbach's alpha to evaluate the internal reli- (g ¼ 0.47, p < 0.001) were supported respectively. Lastly, con-
ability of scale items and computed the correlations and descriptive sumer desire to interact with South Korea positively affected
statistics of each construct. The data met the requirements of their intention to visit the country. Thus, H6 was supported
normality (see appendix 2), and a full review of inter-correlations (g ¼ 0.68, p < 0.001).
among measurement items is available in appendix 3. A two-step
approach recommended by Anderson and Gerbing (1988) was 5. Discussion
employed to evaluate (1) the reliability and validity of the mea-
surement model with a Confirmatory Factor Analysis (CFA); and (2) 5.1. From positive attitude to products to intention to visit
the proposed research model illustrating the hypothesized re-
lationships among constructs with the structural equation Countries create, maintain, and enhance their images through
modeling (SEM) technique. The overall suitability of the model was various resources. Such resources include countries' inherited and
assessed by Kline's (2005) recommendation, which includes Chi- natural assets (e.g., beautiful scenery, rich culture and traditions, or
square (c2), Root Mean Square Error of Approximation (RMSEA), favorable weather) or man-made assets (e.g., products, events,
Comparative Fit Index (CFI), and Standardized RMR (SRMR). SPSS people, or technologies) (Kotler et al. 1993). While early studies on
18.0 and LISREL 8.80 were used for the analysis. country image centered more on inherited and natural assets, the
focus of recent studies has shifted to man-made assets (Kang &
4. Results Yang, 2010; Lee, Toth, & Shin, 2008; Sun & Paswan, 2011; White,
2012).
4.1. Measurement model testing The present research conceptualized country image as con-
sumers' cognitive and affective responses toward a particular
The reliability and validity of the measurement model were country, which lead to their desired interaction with the country
tested using a confirmatory factor analysis. One item from the (Laroche et al., 2005; Zeugner-Roth & Diamantopoulos, 2009). It
J.S. Ryu et al. / Tourism Management 52 (2016) 298e309 303

Table 1
Measurement model results.

Constructs and items Factor loadinga Critical ratio

Product Attitude (Cronbach's a ¼ 0.98; CRb ¼ 0.98; AVEc ¼ 0.95)


Negative e Positive 0.97 29.86
Unfavorable e Favorable 0.98 30.25
Bad e Good 0.97 29.78
Product Evaluation (Cronbach's a ¼ 0.93; CR ¼ 0.93; AVE ¼ 0.73)
Carefully produced and have fine workmanship 0.90 25.67
A very clever use of color and design 0.73 18.74
A very high degree of technological advancement 0.88 24.76
Usually quite reliable and seem to last the desired length of time 0.89 24.98
Are usually a good value for the money 0.86 23.79
Country Belief (Cronbach's a ¼ 0.89; CR ¼ 0.89; AVE ¼ 0.74)
Poor e Rich 0.74 18.86
Low level of education e High level of education 0.91 25.73
Not technically advanced e Technically advanced 0.91 25.49
People Affect (Cronbach's a ¼ 0.90; CR ¼ 0.90; AVE ¼ 0.76)
Not trustworthy e Trustworthy 0.91 26.11
Not hard working e Hard working 0.77 20.03
Not likeable e Likable 0.93 26.87
Desired Interaction (Cronbach's a ¼ 0.91; CR ¼ 0.91; AVE ¼ 0.78)
We (should not e should) have closer ties with South Korea 0.86 23.91
South Korea is (not ideal e ideal) country 0.87 24.11
I (would not e would) welcome more investment from South Korea 0.91 26.23
Visit Intention (Cronbach's a ¼ 0.97; CR ¼ 0.97; AVE ¼ 0.94)
I like the idea of visiting South Korea 0.98 29.57
If possible, I would visit South Korea 0.96 28.60

The model fit indices: c2 ¼ 394.24 (df ¼ 137), p-value < 0.001; RMSEA ¼ 0.063; CFI ¼ 0.99; SRMR ¼ 0.032.
a
Standardized solution; all significant at 0.001.
b
Composite reliability.
c
Average variance extracted.

Table 2 various products and countries). When consumers evaluated


Correlation matrix and descriptive statistics. South Korean products positively, they displayed favorable beliefs
(n ¼ 500) toward South Korea's economic and technological advancement
PA PE CB PEA DI VI Ma SDb
and educational level (country belief). Likewise, consumers'
positive evaluations of South Korean products led them to form an
Product attitude (PA) 1 4.58 1.38
affection toward South Koreans (people affect) and to view the
Product evaluation (PE) 0.67 1 4.41 1.02
Country belief (CB) 0.56 0.66 1 4.27 1.19 country as good, including as a strategic partner (desired
People affect (PEA) 0.61 0.61 0.62 1 4.79 1.16 interaction).
Desired interaction (DI) 0.65 0.64 0.66 0.74 1 4.26 1.29 As proposed, consumers' attitudes toward South Korean prod-
Visit intention (VI) 0.53 0.54 0.48 0.46 0.64 1 3.65 1.78
ucts were positively related to:
All correlations significant at the 0.01 level.
a
Mean. (i) Their beliefs about South Korea;
b
Standard deviation.
(ii) Affection toward its people; and
(iii) Desire to interact with the country.

proposed that products contribute to the creation of the image of a These outcomes were parallel to the findings of prior studies
country with which the products are associated and that the showing that consumers' attitudes toward a country's products
country's image positively impacts consumers' intention to visit the are an important determinant of consumers' attitude formation
country. Ten hypotheses were sequentially proposed to examine toward country image (Jun & Cho, 2006; Martin & Eroglu,
these relationships, all of which were supported by the research 1993).
findings. With regard to the interactions among components of
Consumers' evaluation of the quality, design and value of country image, this research supported the two-component
South Korean products positively affected their attitudes toward view of country image; i.e., that consumer belief about a
the products, and even the affection that consumers feel toward country and affection toward its people both influence con-
the country in general can similarly influence their attitudes sumers' desire to interact with the country (Brijs, 2006;
(Chen, Mathur, & Maheswaran, 2014). This outcome was consis- Zeugner-Roth & Diamantopoulos, 2009). This study found con-
tent with previous studies that demonstrated the positive asso- sumers to be more willing to interact with South Korea when
ciation between consumers' product evaluations and product they believed the country to be economically and technologi-
attitudes (Carter, 2009; Knight & Calantone, 2000; Lee et al., cally advanced and its people to be well-educated, trustworthy,
2013). This study's findings are also similar to those of Sun and diligent and likable.
Paswan (2011) and White (2012), which established a positive It is thereby confirmed that consumers' willingness to
association between product evaluation and country image (with interact with South Korea serves as a significant indicator of
304 J.S. Ryu et al. / Tourism Management 52 (2016) 298e309

Fig. 2. Structural model with hypotheses testing.

Table 3
Hypothesis testing results.

Hypothesis Coefficient S.E.a C.Rb Result

H1 Product evaluation / Product attitude 0.71*** 0.043 16.52 Supported


H2a Product evaluation / Country belief 0.62*** 0.059 10.40 Supported
H2b Product evaluation / People affect 0.41*** 0.052 7.81 Supported
H2b Product evaluation / Desired interaction 0.13** 0.056 2.33 Supported
H3a Product attitude / Country belief 0.14*** 0.052 2.71 Supported
H3b Product attitude / People affect 0.37*** 0.037 7.21 Supported
H3c Product attitude / Desired interaction 0.18*** 0.045 3.94 Supported
H4 Country belief / Desired interaction 0.21*** 0.046 4.51 Supported
H5 People affect / Desired interaction 0.47*** 0.046 10.22 Supported
H6 Desired interaction / Visit intention 0.68*** 0.040 16.88 Supported

The model fit indices: c2 ¼ 470.53(df ¼ 142), p-value < 0.001; RMSEA ¼ 0.069; CFI ¼ 0.99; SRMR ¼ 0.052.
**
Significant at 0.01 level; *** Significant at 0.001 level.
a
Standard error.
b
Critical ratio.

their intention to visit the country. This outcome was expected, formation, etc.) all the way to the intention to visit as the
as the direct correlation between a desired interaction with a outcome variable. For historical reasons, South Korea constitutes
country and an intention to visit it has already been estab- a unique representation of how a country's image creation is
lished in various contexts (Chen & Chen, 2011; Nyaupane et al., initially driven by an evaluation of the quality of its products and
2011). brands to ultimately create a country of origin effect on the
By situating the sequence in which a country like South Korea intention to perceive the country as a tourist destination. Linking
uses products as antecedents to ultimately become a desirable back to the notion that associations determine the nature of a
tourist destination, this study complements Nadeau et al. (2008), place, associations to the country image of South Korea based on
who failed to emphasize the importance of the sequence exposure to products and brands related to the country influence
involved from product evaluation to image creation and the how South Korea is viewed as a destination. At the same time,
intention to visit. In the data presented herein, the predictive the idea of South Korea as a tourist destination affects how its
strength of the exogenous construct of “product evaluation” is products and brands are perceived, thereby creating a sustained
high. The effects of reported quality evaluation and attitudes are oscillation of meaning between these two dimensions of com-
significant to the extent that the connection (in this study) from mercial relevance in which the country image of South Korea
the initial independent variable can be traced through several manifests itself.
mediating steps (including product image, country image It should be noted that, although South Korea arguably owes its
J.S. Ryu et al. / Tourism Management 52 (2016) 298e309 305

positive reputation primarily to its success as an exporter and commercial relevance of place in their international promotion
secondarily as a tourist destination, the method employed here and marketing campaigns, thereby acknowledging the significance
cannot account for the historical sequence in which this tran- of the “oscillating” path between origin effects and destination
spired; it merely links these two aspects. A strong case can be image. This paper strives to bridge the gap between the existing
made that South Korea's industrial success in exports from factory literatures in these two domains.
floors indeed preceded the subsequent increase in the country's Since this research demonstrates that products have positive
visibility that contributed to its burgeoning success as a tourist impacts on consumers' perceptions toward country image, policy
destination. makers would be well-served to cultivate country image and
Essentially, the outcome (intention to visit) is the result of reputation through product image. This finding has practical im-
meaning valence multiplied by meaning intensity (meaning plications for how a country should utilize its industries to enhance
valence x meaning intensity ¼ visit intention). In other words, there a country's image and its competitiveness, particularly in the
is a multiple threshold that combines product visibility with tourism industry. With globalization, products travel around the
product meaning to ultimately influence the visiting intention world in the form of imports and exports, and the country image
outcome. Presentation of the product affects the visibility of the attached to these products travels along with them and is trans-
country to eventually impact intention to visit the country through ferred to the products' end users. An increasingly global pool of
the creation and attribution of meaning to the country. It is consumers who are impressed by products of high quality and
fundamentally a country-of-origin effect working in reverse (in- superior design from a specific country have the potential to
verse as used by White, 2012). become visitors to that country. Therefore, a co-branding strategy
between a country's manufacturing and tourism industries would
be a mutually beneficial partnership. On the smaller scale of regions
6. Final considerations or cities, an inverse effect of products on places can be applied as
well. Policy makers could develop and market region- or city-
The present research has significant theoretical implications, as specific indigenous products or industry clusters to attract inter-
it clearly confirms the proposed model. In international market- national visitors who wish to have product- or industry-related
ing, the image of a country is assumed to influence consumer experiences.
behavior toward products from that country. An emerging notion
of a country image-product relationship posits that a reverse ef-
fect exists in which products affect country image (Loo & Davies, 7. Limitations and future research
2006; Sun & Paswan, 2011; White, 2012). However, this reverse
relationship remains an understudied research topic that requires Consumers' attitude toward a country's products may vary
additional empirical support to receive scholarly attention in the depending on product categories. For example, South Korean car
field of international marketing. The findings in this study suggest brands are perceived less favorably than their competitors from
that international marketing and tourism marketing scholars Europe and Japan. However, consumers have a positive image of
could benefit from diversifying their approaches to more broadly South Korea as a producer of innovative and high-quality smart
consider the interrelation among various aspects of a destination's phones and electronic goods due to industry leaders such as
commercial relevance, including country-of-origin effect and Samsung and LG (Schultz & Maguire, 2013). Although the use of
country image effects on destination branding. general products in this research has been justified by a group of
Though the construct of country image has been a frequent scholars (Laroche et al., 2005), future research could approach the
subject of debate (Zeugner-Roth & Diamantopoulos, 2009), same topic with a focus on specific products in order to overcome
there is nevertheless some agreement that attitude theory the perceptual discrepancies consumers may hold toward different
provides an appropriate theoretical foundation through which products from the same country. This could also serve to demon-
it can be assessed (Parameswaran & Pisharodi, 1994; Zeugner- strate how this issue pertains to the development of a country's
Roth & Diamantopoulos, 2009). By providing empirical evi- image.
dence for the two-component view of country image (PCI and The central issue of this paper is essentially the question of
TDI) based on attitude theory, this study adds value to the whether successful exports create a path to visibility for the
extant literature on country image constructs and contributes country. Alternatively, do certain industries linked to particular
to the expansion of this research area in international and product categories actually drive TDI? It could be beneficial to take
tourism marketing. these questions further to examine whether certain country images
Country image in the context of international marketing and that are driven by perceptions about their exports would take
tourism forms two research domains that have been examined different forms in different cultural and developmental contexts. If
independently (Nadeau et al., 2008). However, some researchers so, is there a divergence in the effects on consumers' intentions to
have argued that these two domains are inter-related (Mossberg & visit those destinations based on those contexts? In that perspec-
Kleppe, 2005), as product-based country image (PCI) contributes tive, the outcome of this study would benefit from an extended
to the creation of tourism-based country image (TDI), and attitude qualitative foray into the implications of the relationship between
theory serves as a theoretical foundation to merge both country psychographic characteristics and destination types, with an
image concepts (Nadeau et al., 2008). By empirically demon- emphasis on a broader theoretical underpinning. Finally, on a
strating that product-based country image has a positive impact general level there are opportunities to further examine cross-
on country image, which in turn makes it more likely for con- pollination between the various academic sub-disciplines con-
sumers to visit the country, this study supports the notion that cerned with the forms of the commercial relevance of place,
country image in international marketing and tourism contexts including origin effect research, place branding, tourism and public
are linked. Tourism and destination marketers and managers diplomacy. The type of lateral interaction between these areas, such
should be cognizant of this characteristic of country image and as those discussed in this study, could certainly provide viable
could benefit from integrating the various aspects of the advances across these fields.
Appendix 1
Appendix 2. Descriptive statistics, skewness and kurtosis of measurement items.

PA1 PA2 PA3 PE1 PE2 PE3 PE4 PE5 CB1 CB2 CB3 PEA1 PEA2 PEA3 DI1 DI2 DI3 VI1 VI2

N Valid 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500
Missing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Mean 4.61 4.56 4.57 4.33 4.44 4.38 4.36 4.51 3.80 4.42 4.59 4.55 5.09 4.73 4.46 4.02 4.30 3.64 3.67
Std. deviation 1.375 1.439 1.405 1.170 1.088 1.225 1.137 1.133 1.267 1.367 1.310 1.269 1.243 1.301 1.435 1.323 1.430 1.759 1.858
Skewness 0.111 0.163 0.185 0.065 0.380 0.083 0.033 0.065 0.008 0.141 0.088 0.124 0.280 0.165 0.205 0.172 0.167 0.009 0.043

J.S. Ryu et al. / Tourism Management 52 (2016) 298e309


Std. error of skewness 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109 0.109
Kurtosis 0.089 0.094 0.032 0.866 1.183 0.638 1.110 0.668 0.384 0.116 0.101 0.372 0.141 0.204 0.122 0.411 0.219 0.860 0.975
Std. error of kurtosis 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218

Appendix 3. Covariance matrix.

PA1 PA2 PA3 PE1 PE2 PE3 PE4 PE5 CB1 CB2 CB3 PEA1 PEA2 PEA3 DI1 DI2 DI3 VI1 VI2

PA1 1.89
PA2 1.88 2.07
PA3 1.82 1.92 1.97
PE1 1.08 1.11 1.12 1.37
PE2 0.74 0.75 0.75 0.83 1.18
PE3 0.98 1.00 1.00 1.13 0.89 1.50
PE4 0.95 0.98 0.99 1.08 0.75 1.08 1.29
PE5 0.89 0.93 0.93 1.00 0.83 1.04 1.01 1.28
CB1 0.83 0.87 0.85 0.80 0.57 0.85 0.69 0.68 1.61
CB2 0.94 0.97 0.98 0.83 0.62 0.95 0.81 0.81 1.18 1.87
CB3 0.90 0.94 0.94 0.89 0.69 1.06 0.85 0.85 1.06 1.49 1.72
PEA1 1.07 1.10 1.08 0.85 0.69 0.85 0.74 0.73 0.82 0.98 0.91 1.61
PEA2 0.74 0.75 0.75 0.66 0.54 0.69 0.61 0.66 0.51 0.85 0.89 1.07 1.54
PEA3 1.10 1.12 1.11 0.89 0.66 0.83 0.76 0.73 0.77 1.00 0.97 1.40 1.20 1.69
DI1 1.14 1.17 1.15 0.91 0.70 0.90 0.81 0.83 0.91 0.99 0.97 1.25 0.98 1.22 2.06
DI2 1.09 1.11 1.11 0.89 0.66 0.87 0.77 0.77 1.02 1.08 0.95 1.11 0.79 1.09 1.41 1.75
DI3 1.21 1.27 1.22 1.01 0.73 1.04 0.87 0.87 1.04 1.11 1.06 1.29 0.97 1.23 1.64 1.50 2.05
VI1 1.27 1.26 1.27 1.04 0.86 1.07 0.92 0.92 1.02 1.04 0.95 1.06 0.71 1.02 1.43 1.42 1.51 3.09
VI2 1.33 1.32 1.34 1.07 0.88 1.11 0.95 0.95 1.05 1.07 1.01 1.12 0.72 1.06 1.49 1.45 1.57 3.09 3.45

307
308 J.S. Ryu et al. / Tourism Management 52 (2016) 298e309

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L'Espxoir Decosta, J.N. Patrick, Ph.D is a senior lecturer at


the Australian National University in the Research School

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