Does country image impact retail brand equity? A multi-cue analysis.

Objectives. This study investigates the factors affecting retail brand equity (RBE) when a multi-cue approach is applied, that is: considering traditional RBE antecedents (e.g. retail brand awareness, retail brand image, retail perceived value) together with country image (CI) cues - in their cognitive and affective dimensions. Methodology. A survey was carried out administering a structured questionnaire to a sample of consumers. Structural equation modeling (SEM) was employed to test the proposed model. Findings. All the postulated relationships were verified, apart from retail perceived value. Country image affects retail brand equity, but in unexpected ways. While the cognitive image of the country of origin of a retailer exerts a negative effect, affective country image impacts in a positive way. Research limits. Despite the contribution to the retailing and international marketing literature, the research has some limitations. It is performed on a single retail brand and focused on Italian consumers only. Finally, this first study did not include any control or moderating variables. Practical implications. International retailers, with particular attention to discounters, would understand the factors to leverage their consumer-based brand equity. Originality of the study. So far, poor attention has been given to the effect of country image on retail brand equity. However, the image of a retailer develops not only in accordance with the service provided, but also in relation to the stereotypes connected with the retailer’s country of origin. Moreover, the study employs a multi-cue perspective, using traditional RBE antecedents together with CI dimensions.