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Spatial heterogeneity of country-of-origin effects within a country: analysis of online review ratings in the US car market

초록/요약

We investigate spatial heterogeneity of country-of-origin effects (COEs) within a country and its determinants. Drawing on the literature of COEs and information economics, we maintain that COEs are heterogeneous across regions within a country, which bears important implications to better understand subnational heterogeneity of consumer preferences. We employ a geographically weighted regression model, a spatial analysis to estimate varying COEs across regions in the USA, and analyze online review ratings of US and foreign car bands in the US market during the 2008-2014 period. The results show that (1) COEs of car brands from Germany, Japan, Korea, and the UK are heterogeneous across regions in the USA; (2) geographic distance from the country-of-origin exerts negative influences on COEs; and (3) the proportion of population born in the country-of-origin positively influences COEs.

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