Brand Name and Country of Origin Effects in the Emerging Market Economies of Russia, Poland and Hungary

Abstract

The economic reforms sweeping Eastern Europe and the former Soviet Union point to a critical need for consumer‐based market research in the region. In this study, conjoint analysis was used to analyse Russian ( n=88), Polish (n=77), and Hungarian (n=113) consumers′ decision behaviour in a single product category, colour televisions. Of particular interest were the separate and joint roles played by brand name and country of origin in the decision processes of former Socialist consumers. The results show that Russian and Polish consumers place considerable emphasis on the product′s place of manufacture, while the Hungarians were more “functional” in their decision strategy, focusing on the product′s intrinsic properties. Contrary to expectations, brand name was less important than other attributes in the decision making of all three groups. Each group also showed minimal concern with the interaction between brand name and country of origin. Discusses implications for Western firms which are seeking market and investment opportunities in the former Eastern Bloc.