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Brand Equity For Origin-Bounded Brands: Original Article

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31 views14 pages

Brand Equity For Origin-Bounded Brands: Original Article

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soleneguyot59
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© © All Rights Reserved
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Original Article

Brand equity for origin-bounded


brands
Received (in revised form): 24th November 2014

Nathalie Spielmann
obtained her PhD from Concordia University (Montreal, Canada) in 2010 and integrated the faculty at Reims Management
School that same year. Her research interests include advertising effects, origin effects and consumer behaviour with
origin-based (and particularly wine) products. She has published in the European Journal of Marketing, Journal of Business
Research, Journal of Services Marketing, International Journal of Wine Business Research and the International Journal of Hospitality
Management.

ABSTRACT The article expands on the current brand equity literature by recom-
mending new assets and liabilities unique to brands that are bounded to their origins
(OBBs). These are brands that are inseparable from their origins, as is the case with
most wines. A review of both the origin and branding literature is undertaken and a
conceptual approach is used to propose the different ways that OBBs may build brand
equity. Brand assets specific to OBBs are detailed, such as tolerance for inconsistencies,
authenticity perceptions and origin loyalty. Likewise a specific liability, lack of origin
recognition is also examined. Finally, consequences of origin-driven brand equity are
outlined and include: encouraged hedonic and ego-political consumption values, lim-
ited purchase of counterfeit products and decreased price sensitivity. Before this arti-
cle, very little conceptual and empirical literature addressed the concept of brands that
are bounded to their origin. The article describes possibilities for future research per-
taining to this important category of brands, present not only in the wine industry but
also common to a variety of other product categories.
Journal of Brand Management (2014) 21, 189–201. doi:10.1057/bm.2013.30;
published online 10 January 2014

Keywords: origin; brand equity; brand management

INTRODUCTION a product or service because of its brand


Marketing literature discusses the impor- name that would not occur if the same
tance of brand equity at length both from product or service did not have that name’
a product and a consumer perspective (Keller, 1993, p. 1). However, brand equity
(Aaker, 1991; Keller, 1993). By capitalizing is finite, as numerous liabilities may inter-
on key assets such as brand awareness and fere in the continued success of a brand
Correspondence:
Nathalie Spielmann, NEOMA
loyalty and reducing potential liabilities, (for example, poor management decisions).
Business School, 59, Rue Pierre
Taittinger – BP 302 51061, Reims,
brands ensure longevity by building equity Competition is the most likely reason for
Cedex, France (Aaker, 1996). Brand equity is: ‘when cer- decreased brand equity as brands can find it
E-mail: nathalie.spielmann
@neoma-bs.fr tain outcomes result from the marketing of difficult, over time, to be distinctive or they

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201

www.palgrave-journals.com/bm/
Spielmann

may struggle to adapt to changes in the related to one aspect of the product (that
market (for example, changes in consumer is, design, manufacture, assembly) (Chao,
tastes). Consequently, brands losing equity 2001) or if the origin is not the key differ-
have options such as changing their names entiating brand characteristic or essential to
or symbols in order to renew their equity the brand identity.
(Aaker, 1996) or proposing brand exten- When brands cannot be separated from
sions (Pitta and Katsanis, 1995). Yet are their origin, these are origin-bounded brands
these outcomes the same when the name (OBBs). For example, Evian cannot be
or part of the brand name is related to an branded as anything else than Evian, regard-
origin? less of market pressures and conditions,
Branding literature addresses the origins of without losing its brand equity. Since 1996,
brands (Thakor and Kohli, 1996; Usunier, when the World Trade Organization estab-
2011), stating that consumers perceive origin lished the Agreement on Trade Related
cues from products at brand and at pro- Aspects of Intellectual Property Rights
duct level (Chao, 2001; Samiee et al, 2005; (TRIPS), the prevalence of products using
Magnusson et al, 2011). Whereas place and geographical origins and appellations has
destination branding refer to origins as a brand grown substantially. This is due in large
(Hankinson, 2009; Aitken and Campelo, part to the ‘trademarking’ of place and the
2011), this article examines branded products use of place in product branding efforts.
that originate from a place. Origin can be While Bordeaux wines and Idaho potatoes
a property of the brand that it escapes from or existed and marketed themselves long
elevates in the process of creating brand before the TRIPS agreement, the notice-
equity. However, in certain cases, the rela- able explicit use of origin in product mar-
tionship between origin and brand must be keting naturally leads to a growing need to
respected and leveraged because brand and gain better insight into the nature and future
origin are bounded – this is the case for many influence of OBBs and their equity value.
products such as wine. Therefore, the objective of this article is
Although the extant research is rich to propose a conceptualization of brand
regarding the value of brand origins (see equity as it applies to brands that are boun-
Thakor and Kohli, 1996), little is known ded to their origin. Reviewing these types
about building brands and equity when a of brands is useful because it answers certain
brand and its origin become inextricably questions that the current branding lite-
linked. For example, Keller (1993) states rature does not address, such as: How do
that for brand equity to occur, place and OBBs create sustainable brand equity when
brand associations must be congruent. How- the origin of the brand cannot be modified?
ever, while hinting at the idea that some What sort of assets and liabilities are distinct
products benefit from origin-product con- to OBBs, leading to origin-driven brand
gruency, in-depth literature on brands that equity? What sort of value is created for
are bounded to their origins is noticeably consumers and firms when OBBs have
absent. Although most branded products strong brand equity? The answers to these
can have a relation to a place, they do not questions remain obscure because research
have an obligation to it. Brands can use often reviews brand origin and product
place as a core feature of their identity but origin separately (Usunier, 2011). By com-
often this origin can be changed if bining two mainstreams of research, the
there is financial pressure to invest else- branding literature and the origin literature,
where (Aaker, 1996), if the origin markers we show that when brands are bound to
that are important to consumers are only their origin the value equation for brand

190 © 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201
Brand equity for origin-bounded brands

equity is slightly different than it is for which they are manufactured (Charters,
brands without fixed origins. 2006). As well, origin information is often
The contributions of this article are highly contextual (Beverland and Lindgreen,
twofold. First it is shown that OBBs are a 2002).
distinct type of brands often ignored in the Geographic names that have become
marketing literature yet representing a large trademarks for products are not OBBs
variety of brands from around the world. unless they are actually produced in that
Second, this article offers a new perspective place. For example, Philadelphia Cream
for building OBB equity. The practical Cheese is a brand name and not an
contributions as well as managerial implica- OBB. Likewise, a Panama hat is meant to
tions presented help marketers of OBBs convey a specific hat shape and not an
consider how their brands can capitalize on origin. Thus, an OBB is one that cannot
their distinct origin. be separated from where it claims to origi-
nate on its label. The specific origin of the
product cannot be fictitious, modified or
DEFINING OBBS transferred.
The concept of OBBs relies on the old but OBBs are identified by three key featu-
relevant idea of transvection, which begins res: (i) a clearly identified origin marker
with a particular place of origin that is (for example, made in, product of and
identified as being a resource and then so on); (ii) the origin of the product that
serves to create value in the final product is expressed in the branding is real and
(Alderson and Martin, 1965). Firms with permanent, not fictitious; (iii) there is an
origin-products must find ways to develop explicit use of the origin in the branding
brand identities with this restriction of and marketing mix. Pommery champagne
origin. Thus, OBBs are intangible entities is an OBB because it comes from the
that represent products with a respected Champagne region of France and because
fixed origin. the origin indicator Champagne is always
OBBs are present in many categories included next to and has grafted itself with
such as food (meat, cheeses, fruit, vege- the brand name Pommery. Thus, OBBs are
tables, fish, seafood), but also beverages different from brands in general because
(wine, beer, bottled water, coffee, tea), agri- they cannot be separated from their origin
cultural products (honey, eggs, wool), oils, and OBBs are different from origin brands
hay, precious stones, seeds, sedimentary because they cannot use fake origins in their
materials (marble), plants (tobacco, flowers, branding. Finally, as defined in this article,
cork, resin) and so on and are separated OBBs represent products, not workman-
into two categories. OBBs can be related ship. When a cheese is labelled as Made in
to geological resources used to make the Australia, its origin depends on where the
product, for example, Carrara marble. milk is sourced not the origin of the cheese
Alternatively, OBBs can be created around maker.
geographic place where products, such
as wines, are grown or made. In both geo-
logical and geographic cases, OBBs repre- ASSETS AND LIABILITIES FOR
sent unique invariable features related to OBBS
a local context (Becattini and Rullani, Once a brand is established, it is possible to
1996). Thus, OBBs are closely linked begin to gauge the equity of that brand in
to the source of their production, their relation to how it is managed. ‘Brand equity
manufacture and culture of the place in is a set of assets (and liabilities) linked to a

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201 191
Spielmann

brand’s name and symbol that adds to (or outlining how brand equity for OBBs leads
subtracts from) the value provided by a to value creation both at the firm and cus-
product or service to a firm and/or that tomer level. The following sections will
firm’s customers’ (Aaker, 1996, pp. 7–8). In detail the propositions represented in the
the branding literature, the most frequently conceptual model.
discussed brand assets are brand loyalty,
brand name awareness, perceived quality
and brand associations. The most common Origin asset: Leniency towards product
liabilities are poor management decisions, discrepancies
repeated brand extensions and increased At a brand level, creating recognizable and
competition (Pitta and Katsanis, 1995; reputable brands is important to ensure the
Aaker, 1996). longevity of the brand as well as loyalty to
For OBBs, the same assets apply but the brand (Aaker, 1991). When certain
there are additional assets that are distinct to products go out of favour, brand loyalty
OBBs: tolerance for inconsistencies, authe- keeps these brands afloat in the market
nticity perceptions and origin loyalty. Fur- place, such as was the case for Apple com-
thermore, there is a liability specific to puters in the 1990s (Kahney, 2004). Beyond
OBBs: lack of origin recognition. As a result this is the potential for brands to disappoint
of the additional assets and liability, the consumers by altering their product or by
value perceived from OBBs by firms and changing the quality of the product, ren-
consumers is slightly different than what is dering even the most loyal customer some-
proposed in the current brand literature. what sceptical and putting brand equity in
A conceptual model is presented in Figure 1, jeopardy.

ALL BRANDS
- Brand loyalty
- Brand name awareness
- Perceived quality
A - Brand associations
S
OBBs PROVIDE
S
SPECIFIC VALUE
E
TO CONSUMERS
T SPECIFIC TO OBBs
- Satisfy hedonic
S - Leniency toward
and ego-political
inconsistencies
values
- Authenticity perceptions
- Origin loyalty

BRAND
EQUITY

ALL BRANDS
- Poor management
decisions
L - Repeated brand extensions OBBs CREATE
I - Increased competition SPECIFIC VALUE
A FOR FIRMS
B - Real from fake
I - Value Pricing
L SPECIFIC TO OBBs
I - Lack of origin recognition
T - Negative origin
I associations
E
S

Figure 1: Value creation from OBB equity.

192 © 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201
Brand equity for origin-bounded brands

When the relationship between origin and a strategy using iconic and socially defined
brand is well established, a brand is able to authenticity is complicated to manage, as
garner loyalty as well as increased consumer faked authenticity may not be powerful and
confidence (Obermiller and Spangenberg, enduring (Kniazeva and Charters, 2011).
1989; Bruwer and Johnson, 2010; Tseng When a brand has a true origin, it has
and Balabanis, 2011). Origin allows con- a connection to history with factual and
sumers to have expectations about products temporal features that are considered authen-
and establish quality perceptions that remain tic (Grayson and Shulman, 2000). Authen-
somewhat flexible because they make the ticity of an origin brand is related to the
distinction between a product’s stylistic con- purity of the product and ‘a continuance of
sistency and simple duplication (Huber and historic practices, including means of pro-
McCann, 1982; Beverland, 2005). Wines are duction, place of production and product
an excellent example of OBBs that can be styling’ (Beverland et al, 2008, p. 7).
inconsistent: different vintages will produce When evaluating products, consumers
different wines from the same producer. consider the product attributes, the physical
OBBs represent ‘not consistent content, but a aspects and the brand essence of the product
consistency of quality and the ability to deli- in order to confirm their authenticity per-
ver up to and beyond expectations that is ceptions (Grayson and Martinec, 2004).
crucial for the brand’ (Charters, 2009, p. 288). A unique origin and the brand derived in
consequence make OBBs indexical and
Proposition1: Origin reputation augments
genuine, leading to origin-derived percep-
brand reputation resulting in more leni-
tions of authenticity (Stewart, 1993; Leigh
ency regarding product discrepancies
et al, 2006). For example, Tabasco reinforces
when brands have a bounded origin
its status as an all-American brand with
versus a fictitious origin.
a regional focus on Louisiana by producing
its sauce on Avery Island, Louisiana. The
use of the French language by the brand
Origin asset: Authenticity perceptions references its Acadian heritage, deeply
Brands can appear authentic via the signals entrenched in Louisiana. Tabasco authen-
they communicate, by the country associa- ticates itself as a product via the indexical
tions inferred by their brand name or the and iconic features of its origin and its
origins that figure in their history (Aaker, brand history. Tabasco sauce is an OBB,
1991; Thakor and Kohli, 1996). Iconic a strong brand with an authentic and
authenticity of a brand is centred on its inimitable traditional Louisiana heritage.
essence and what it conveys (Grayson and Similarly, French wines use images of castles
Martinec, 2004). Brand authenticity can and use French names in their branding
also be a ‘socially negotiable concept that to encourage authenticity perceptions.
is relative, contextually determined, and
Proposition 2: Authenticity perceptions
ideologically driven’ (Leigh et al, 2006,
for OBBs are (a) stronger and (b) more
p. 483). For example, Stella Artois is a
long lasting than for brands with ficti-
beer brand brewed all over the world via
tious origins.
licensing agreements with local breweries.
The advertising for the brand reinforces the
Belgian heritage of the brand, making it a
Belgian product for consumers, even if the Origin asset: Origin loyalty
entity that owns Stella Artois is a Belgian– Brand loyalty results in reduced marketing
Brazilian–American corporation. However, costs and predictable sales but it also creates

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201 193
Spielmann

awareness and reassures consumers (Aaker, from South-western England, in the


1996). One of the ways to build brand counties of Dorset, Somerset, Devon and
equity is to have a strong brand identity Cornwall. The official PDO name is
and/or brand name (Cobb-Walgren et al, West Country Farmhouse Cheddar. Un-
1995). For OBBs, a strong brand name fortunately, the name cheddar alone is not
can be related not just to the brand but also legally protected, which is why cheese with
to a strong origin name. For example, this name is produced all over the world.
Champagne is an origin and a product In the United States alone, generic cheddar
category, and all champagne brands benefit cheese is the market leader, representing
from the brand dominance that champagne 22.4 per cent of the overall cheese market in
has garnered in the sparkling wine category 2012 (Euromonitor, 2012). Losing control
(Charters et al, 2011). When origin is recog- over the origin name has made the value of
nized and strongly branded, origin loyalty real West Country farmhouse Cheddar
is consistent and favourable, leading to cheese harder for consumers to establish and
higher levels of involvement with the pro- has made cheddar a commodity brand name.
duct category and the brand (van Ittersum
Proposition 4: When an OBB is legally
et al, 2002; van Ittersum et al, 2003). In
recognized brand valuation is higher
consequence, the associations that con-
than when the OBB is not legally
sumers make between the individual brands
recognized.
and the origin brand are leveraged by origin
loyalty, capable of augmenting brand equity
for OBBs.
Origin liability: Negative origin
Proposition 3: For OBBs, origin and
associations
brand loyalty are equally important
The interdependence between origins and
whereas for brands with fictitious origin,
OBBs can, when mismanaged, have dama-
brand loyalty is dominant.
ging consequences for all brands within the
origin. Negative associations are not appli-
cable only to the brands but also the origins;
Origin liability: Lack of origin likewise the brand origin association can
recognition be negative (Keller, 1993). Origin reputa-
Although production method guarantees tion as derived from the way resources
exist for brands such as ISO standards, are sourced can influence firm and brand
and certain labels recognize a produc- perceptions negatively. For example, the
tion method (for example, food alliance, controversy surrounding African diamonds
certified humane, fair trade, organic) these extends to all brands that use this origin
types of labels are applicable to all brands, resource, even if responsibility for the
even those without an origin. In contrast, negative perceptions lies only on a few
origin-based labels (for example, AOC, producers. De Beers is certainly the most
PDO and so on) indicate a guarantee powerful diamond brand but it is also
and recognition of an origin and a consis- the first target of the anti-conflict diamond
tent style capable of influencing value polemic. Negative origin associations have
(Barham, 2003; Teuber, 2009). For OBBs, the potential to increase in significance/
a key brand liability occurs when an influence as markets become increasingly
origin is not protected and when the origin more digitally connected and content
brand becomes a commodity name. For sources more transparent. Consumers have
example, real cheddar cheese originates imperfect information about all firms (Hunt

194 © 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201
Brand equity for origin-bounded brands

and Morgan, 1995), thus the consequences 2006). Thus, promoting hedonic and ego-
of negative associations created by a few political values is more appropriate and bene-
circumstances or within a certain origin can ficial for OBBs, especially as ego-political
be disastrous to the brands that operate values allow consumers to become more
within the same origin. aware of the symbolic as well as the func-
tional benefits of OBBs (for example, higher
Proposition 5: Negative brand associa-
levels of quality, sustainable production pro-
tions of OBBs are two fold (a) brand-
cesses) (Perrouty et al, 2006; Johnson and
driven and (b) origin-driven.
Bruwer, 2007). Likewise, removing the
focus on price, central to instrumental and
expressive consumption values, means con-
THE CONSEQUENCES OF OBB sumers understand the value of the OBBs
BRAND EQUITY beyond what price signals.
Many wines use value-pricing strategies
OBBs provide value to consumers by and are even subject to speculative prices
satisfying important values because consumers understand that what
Consumers select brands based on the goals is sourced in a specific place has value.
these help them attain and how these allow Domaine de la Romanée-Conti (DRC)
for self-expression (Belk, 1988; Chernev, makes Pinot Noir- and Chardonnay-based
2004). When consumers seek out products, wines that are highly sought out and highly
they may not be looking to satisfy functional priced, more so than other wines from
needs (for example, buy at the best price), the same appellations. Consumers purchase
but may also seek to indulge themselves the DRC wines not because they are
(for example, engage in a pleasurable expe- expensive but because the brand represents a
rience) (Babin et al, 1994). When consu- philosophy, a place and a production method
mers choose a brand, certain consumption that is distinct from others. A non-wine
values become more important: instrumental example also highlights this point. The pro-
values (price and label), expressive values duction of Nepalese Pashmina (made using
(price and brand), hedonic values (appella- wool from the pashmina goats that roam the
tion and brand) and ego-political values Himalayan Mountains) was trademarked in
(label, slogan and brand) (Gabriel and Urien, 2011 as ‘Chyangra Pashmina’ in order to
2006). For OBBs, instrumental and expres- help consumers identify the product. By
sive consumption values are less likely to promoting the unique appellation (hedonic
be important because consumers of OBBs consumption value) and trademarking the
prefer to use indexical authenticity cues (for origin name (ego-political consumption
example, traditions, production process, his- value), the producers of Nepali pashmina no
torically accurate advertising) when eva- longer need to justify the higher price of
luating OBBs, and research also shows that their product as compared with commer-
consumers appreciate the moral values OBBs cially made cashmere products, most often
represent (for example, respect for the craft, made in China. A focus on instrumental or
producer engagement, purity of compo- expressive values would not adequately
nents) (Beverland, 2005; Beverland et al, emphasize the congruence between origin,
2008). Likewise, consumers associate higher brand and product and would, therefore,
value with OBBs because they are related to place too much emphasis on price.
the origin, and congruence between origin,
brand and product is important to them Proposition 6: OBBs that focus more on
(Landon and Smith, 1997; Perrouty et al, hedonic and ego-political values in

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201 195
Spielmann

their branding are more successful than are less prone to purchasing fake version of
(a) those that focus less on these values these brands.
or (b) those that promote other types
Proposition 7: The origin of OBBs limits
of values.
the intention to purchase counterfeits
more so than any other brand cue.
OBBs provide value to firms by
reducing the appeal of counterfeits
As a consequence of their scarcity and/or OBBs provide value to firms by
uniqueness, brands are liable to be copied enabling value pricing
or faked by competitors using clever mar- Consumers often use origin reputation as
keting slogans or cultural references without a means to establish price for products
overtly stating origins (for example, Italian- (Landon and Smith, 1997). When the pro-
style) (Boyle, 2003). Quality, price and duct and the brand origin are congruent,
consciousness of purchasing counterfeit consumers perceive higher quality for
goods ‘appear to unanimously imperil the origin products (Aurier and Fort, 2005;
equity of the genuine item’ (Commuri, Spielmann and Babin, 2011). Features per-
2009, p. 87). For non-origin brands, equity ceived as unique to a product as transmitted
is often related to the image (Gentry et al, by the brand will also result in higher price
2001). In consequence, consumers have an evaluations, and this is particularly true
easier time searching for a similar brand at when there is a direct link to an origin
a lower price and the equity of the genuine (Gabriel and Urien, 2006). For example, in
brand is often compromised. 2004, the Ethiopian government trade-
However, the origin of manufacture of a marked three origin-based coffees (Harar,
brand has an influence on the evaluation of Sidamo and Yirgacheffe) in order to
its counterfeits by consumers (Chakraborty increase the value of Ethiopian coffee in the
et al, 1996; van Ittersum et al, 2002). With global market. Since the launch of this
OBBs, the comparisons between original marketing strategy, the price for origin-
and counterfeits are easier to make, as expli- based Ethiopian coffee has almost doubled
cit identifiers are present on the product on the market (Bird et al, 2009). The same
itself, in particular when there are regulatory phenomenon is present in wine: for exam-
labels. For wines, there are numerous ple, in France, wines that are AOC are more
external product cues that consumers can valuable than wines that are declassified
use to properly identify them: brand name, as table wines. A counter-intuitive example,
price, the shape of the bottle and its con- that of many Super-Tuscans is also appro-
gruence with the origin, clear origin indi- priate. These expensive wines still put
cators on the label and sometimes on the forward their Tuscan origin, even though
capsule, regulatory mentions such as AVA they operate outside the appellation of
(in the United States), VQA (in Ontario), DOC/G.
DOCG (in Italy) and so on. The con- As consumers are likely to use price in
gruence between external cues and the ori- combination with origin-based features in
gin stated in the branding allows consumers order to establish the true value of an OBB,
to clearly identify OBBs. In addition, OBBs these brands can practice higher pricing
have product attributes, mostly internal knowing that the intangible features they
cues such as taste, aromas and other sensory offer (for example, brand image, authen-
cues, that are related to the origin and can- ticity) as well as the tangible features
not be replicated, which is why consumers they represent (for example, specific origin,

196 © 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201
Brand equity for origin-bounded brands

limited production, scarcity) are perceived resources used to create a product can then
as valuable (Perrouty et al, 2006). be leveraged by a brand seems to be market
evidence but is not supported by much
Proposition 8: OBBs can practice higher
research. Usunier (2011) mentions that brand
pricing as compared to (a) fictitious ori-
origins are often difficult for consumers to
gin brands and versus (b) origin brands
extricate, often leading to erroneous asso-
that do not promote their origin.
ciations. However, there are numerous cases
where this is simply not true, especially when
DISCUSSION OBBs are concerned. For example, even
This article introduces the concept of young consumers make a very clear distinc-
OBBs, defined as brands that use real origin tion between champagne and other sparkling
as a key component of their unique selling wines (Charters et al, 2011).
proposition (USP). For OBBs, the connec- Past origin research provides many
tion to place and the respect of the unique answers regarding the value of physical
resources that are related to the place must uniqueness but little of this research distin-
be real, not just perceived. The origin of guishes between fixed origin, transferrable
OBBs creates new assets as well as a new origin and marketed origin. Place is an
liability that create value for the consumer important cue for consumers and various
and at the firm level. By respecting and combinations of country of origin, manu-
understanding the value of origin, firms facturing, assembly cues have been revie-
with OBBs can encourage brand equity. wed (for example, Chao, 2001). Yet, details
It is also shown how origin encourages are lacking regarding not just congru-
important consumer values. As well, origin ent but fixed origin–product relationships.
helps leverage enduring corporate advan- Furthermore, the current literature suggests
tages such as reducing the possibility of a marketing strategy focusing mostly on
counterfeit products and limiting price intangible (for example, brand, imagery)
sensitivity by using value-pricing strategies. and capabilities (for example, workmanship)
resources because they are easier for firms to
manage (Day, 2011). However, for firms
Implications for theory with OBB, both the physical resources and
The concepts and the model presented in the intangibles must be considered together
this article have repercussions on actual mar- in the creation of a marketing strategy.
keting theory, both in terms of branding Using a pure marketing orientation that
literature and in terms of origin literature. At prescribes adapting a product according to
the brand level, the article suggests that the consumer demand can imperil the origin-
notion of transvection applies to unique ori- based USP that maintains the competi-
gin resources that are respected during the tive advantage the firm. Adapting a product,
design, production and assembly of a pro- for example, by changing the core resou-
duct, and to the marketing of brands rce from which it is made can mean
(Alderson and Martin, 1965). This is an old abandoning or changing a product’s origin.
theory but in today’s marketing context it Thus, the solution for OBB firms is to
may have more relevance, especially since the apply a marketing orientation that respects
TRIPS agreement has been established. the physical resources it uses all the while
Keller (1993) outlines that brand associations adapting the other features of the products
are important, but this article specifies that in it makes to consumer needs. More theory
certain cases they are essential and permanent. should be developed with this key point in
In conjunction, the notion that physical mind.

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201 197
Spielmann

Implications for practice consumption of a product in a negative


Origin-based brand equity can be lost when light, it is likely that consumption of the
firms succumb to the typical difficulties of product will decrease (Tangari et al, 2007).
brand building such as creating messages Brands can innovate and react to compe-
and product strategies that do not reinforce titive pressure when they have strong brand
the origin. Brands can compete on product equity – they can change their product and
attributes, pricing and distribution, but adapt to changing market trends (Aaker,
a unique origin that encompasses inimitable 1996). However, OBBs build their brands
resources at the core of a product is a more based on unique and static origin resources,
long-term driver of future marketing actions. thus it can be hard for them to adapt
In consequence to unique physical resou- to trends in the marketplace. For OBBs, if
rces, numerous origin-respecting branding the origin itself or the intrinsic quality of the
strategies can be applied. products it encompasses falls out of favour
First, managers can consider changes to with consumers due to natural occurrences,
the product that respect the origin such scientific evidence or preference changes,
as: improving the quality of their pro- brand equity is likely to suffer. Nonetheless,
duct, regulating the origin, offering diffe- knowing how to leverage origin and create
rent colours or models as long as the origin new consumption occasions would be an
remains intact. However, they should ideal strategy. For example, the Maldon salt
beware not to dilute their origin value. company from Essex, England produces
Dilution of the OBB value can occur when, flake salt that they recommend not just for
for example, a core product associated with savoury uses but also for baking sweets.
the origin and, thus, with the brand is used Overall, the clear identification of the
to leverage new products within a similar variables pertinent to OBBs in relation to
category, which are not legally recog- the traditional brand equity variables is of
nized as bounded to the origin. The Isigny- definite strategic value. Brand managers and
Saint-Mère brand is an OBB that is legally strategic planners working with OBBs will
recognized for its cream, butter and profit by taking into account the unique
Camembert cheese. Yet, the brand also variables that guide building and protecting
creates other dairy products not at all related the equity of an OBB.
to the origin of the company (for example,
Brie cheese, which is legally protected in
the Parisian Basin, far from Normandy Directions for future research
where Isigny-Saint-Mère is located). By Other than in the wine marketing literature,
diversifying its offer to non-origin related it is difficult to find research that discusses
products, the Isigny-Saint-Mère brand OBBs. The propositions and theory pre-
compromises its product-origin associations sented in this article are a step towards a
and devalues its USP of being origin- deeper understanding of OBBs but warrant
bound. additional research in order to refine and
Marketers of OBBs may propose new clarify them. A first step would be to
consumption occasions for their products. empirically test the theoretical model pre-
This is especially relevant during times sented here. Many of the propositions are
when the product is subject to market crafted from prior theory but have yet to
temporality; contexts, trends and framing be validated with studies. Thus, the eight
effects present in the market that are propositions should be elaborated on,
important in regulating consumer percep- researched and tested. As well, uncovering
tions (Gibbs, 1998). If the market frames the the depth of the relationships between the

198 © 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201
Brand equity for origin-bounded brands

traditional brand assets and liabilities with be associated with a lifestyle and thus the
those proposed in the model would show reasoning for the consumption of numerous
the interaction between these as well as product categories may overlap, revealing
their weight. Likewise, testing the weight of a new dimension of loyalty. Are consumers
the assets and liabilities and how they loyal to one specific origin translating across
explain value creation, and this per product various types of OBBs (for example, Italian
category would be necessary. Finally, when coffee, Italian cheese, Italian citrus) or are
considering the model proposed, it is consumers loyal to a specific origin per
imperative to test the relationship between product category (for example, Spanish
value creation for consumers and firms, olive oil but American almonds rather than
and just if and how these concepts are Spanish almonds).
reciprocal. Due to the origin nature of OBBs, it
Going beyond the proposed model, the would be relevant to know how and at
concept of OBBs also leads to new avenues what level affective and cognitive origin
for research. A key research priority is to image perceptions differ when multiple
understand how consumers react to, gravitate origin assets are promoted. As Ballantyne
around and negotiate with the concept (2011) asserts, an origin has both social
of OBBs. Ethnographic studies, such as and technical features. The relationship of
those conducted for brand communities (for the brand building process with moderators
example, Schouten and McAlexander, 1995) such as ethnocentrism and dogmatism
could be conducted into the online activities warrants more attention, especially in terms
of numerous brands belonging to a specific of the promotional positioning of OBBs.
origin (for example, forums of wine pro- For example, are consumers more dogmatic
ducers from Sonoma or their Facebook towards OBBs that require workmanship?
pages – for example, D’Argenzio Winery has Marketing academics can use this article
over 4000 friends on their Facebook page to gain new insight into the theory of
with a wall full of comments). Similarly, stu- transvection as it applies to origin-based
dies on communities based on a lifestyle sur- resources and expressed via branding activ-
rounding OBBs (for example, cigar forums or ities (Alderson and Martin, 1965). Imple-
coffee cultures) could be conducted similarly menting measures to gauge authenticity
to Kjeldgaard and Ostberg (2007). It appears perceptions, price sensitivity, tolerance of
that the data sets for this sort of research are inconsistency, brand switching and sub-
available but remain to be analysed. stitution for OBBs would supply marketers
Specific questions need to be answered with tools to estimate the success of their
regarding the involvement of consumers marketing initiatives towards consumers
with OBBs and in which ways these con- of their products. It is also worth noting that
sumers can be segmented. With this sort numerous benefits seem to be correlated
of research, OBB marketers would have (for example, authenticity and value-
clearer direction when elaborating their pricing). Whether and how strongly corre-
marketing mix. It is possible that OBB lated these benefits are for consumers needs
consumers do not just consume OBBs to be tested in order to provide relevant
in one product category but across various information to marketers of OBBs.
categories. At a micro level, one could Finally, co-branding and brand alliances
argue that those who appreciate French seem to be a research direction worth
wines may also appreciate Italian wines. At a reviewing for OBBs. Should brands with
macro level, consumers may be as involved origins consider co-brands, and should these
in wine as they are in cheese. OBBs can co-brands have origins or not?

© 2014 Macmillan Publishers Ltd. 1350-231X Journal of Brand Management Vol. 21, 3, 189–201 199
Spielmann

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