Country-of-origin effect: Expanding brands from Taiwan to Lithuania

Abstract: Thesis purpose: The purpose of this paper is to understand how Taiwanese brands can manage the country-of-origin effect on product evaluation in Lithuania. Methodology: This is a quantitative research based on primary data collected in Lithuania. An online survey was conducted and analyzed by applying the Paired-samples test and the One-way Anova method. Theoretical Perspective: Literature review on country-of-origin (COO) and brand management concepts provides a valuable basis for the study. The analysis is based on the theory of country-of-origin effect on brand equity and product evaluation, as well as previously researched moderating factors. Empirical Data: The empirical material for the analysis was collected through an online questionnaire, answered by 330 respondents in Lithuania. Conclusions: The findings confirm that Taiwan has a relatively negative effect on product evaluation in Lithuania, which can be improved by positive prior experience with Taiwanese brands, favorable perception of attributes, and a strong sense of brand community. Based on the study, price consciousness does not have a significant impact on the evaluation of Taiwanese products, and therefore, is not among the strongest moderators of country-of-origin effect in Lithuania. Practical implications​: Based on this study, it is recommended for Taiwanese brands to ensure a more consistent brand identity with a unique meaning across different products, as well as focus on creating a positive customer experience, which has the most significant impact on Taiwanese product evaluation in Lithuania. In order to stand out, brands could communicate authentic features related to Asian culture, and clearly promote COO which may improve the overall country’s image.