The Effect of the Country of Origin on Brand Trust: A Case Study for COVID-19 Vaccines in Vietnam

Abstract

Many factors influence brand trust, including manufacturer prestige, product value and quality, country of origin, media marketing, experience, and brand relationship. The purpose of this study is to assess the impact of the nation of origin on brand trust, using Vietnam as a case study for India's COVID-19 vaccine. A total of 407 Vietnamese people aged 18 and up participated in the survey. The findings of the study show that the nation of origin has a significant impact on brand trust. Specifically, the perceived country image has a negative effect on brand trust, the other two components of the country of origin are perceived value and perceived quality of product have a positive impact on brand trust in India's COVID-19 vaccine. Research results show that if the perceived country image of the country of production is perceived negatively, then there will be a negative impact on brand trust. According to research findings, people in Vietnam who are 30 years old or older, have steady occupations, know about India, have used Indian products in the past, and have strong brand trust in India's COVID-19 vaccinations. India needs to boost its country's image and develop communication to increase brand trust in Vietnam.

1. Introduction

COVID-19 pandemic waves have killed 5.84 million people worldwide and inflicted tremendous economic and social losses in the last two years (Mathieu, 2022). Many countries have entered the “race” to research and produce the COVID-19 virus preventive vaccine due to the serious ramifications of the pandemic. Foreign brands are emerging and covering the domestic market in greater numbers than ever before as international trade expands. The COVID-19 vaccine is no exception. As of September 10, 2021, eight vaccines from various brands and countries have been licensed and put into use in Vietnam (COVID-19 Vaccine Development and Approvals Tracker, 2022). With the proliferation of vaccine brands, the country of origin (COO) has become a benchmark by which to assess the quality, safety, and efficacy of vaccinations. A country with positive images will boost brand trust by leaving a positive impression of its brand in people’s minds (BT). People will usually develop a sense of peace of mind and become less dubious when it comes to vaccinations made in industrialized countries and typically connected with images of high quality and safety.

The world’s first COVID-19 DNA vaccine, ZyCoV-D (The Times of India, 2021), has just been licensed in India, as has the Covaxin vaccine, which has been conditionally approved by the Ministry of Health of Vietnam for the COVID-19 pandemic prevention and control. India has long been known as a densely populated country with numerous festivals and gatherings, as the cradle of religions, and for its contributions to science, technology, mathematics, medicine, and other professions. However, following the advent of the Delta variety, the pandemic situation in India has become more chaotic than ever, with over 300, 000 daily cases and deaths rising to over 200, 000 in May 2021 (Reuters 2021), placing strain on the Indian healthcare system. This has an impact on India’s national image, particularly as the country works on developing and implementing a COVID-19 vaccine. As a result, it’s more important than ever to assess the impact of COO on customer brand trust in India’s COVID-19 vaccination. Because the vaccination is a one-of-a-kind product, determining consumer trust is critical. The findings of this study are expected to show that the three components of COO, namely perceived country image (PCI), the perceived value of the product (PVP), and perceived quality of the product (PQP), have an impact on brand trust.

2. Literature Review and Hypothesis

2.1. Brand Trust

Brand trust has been paid attention more and more in recent years, especially in the healthcare field. Healthcare products and services are vital and risky as well, so building customer trust is paramount. Brand trust was explained as the willingness to rely on the brand’s stated functions executive ability (Moorman et al., 1993; Lau & Lee, 1999; Chaudhuri & Holbrook, 2001). Customers’ trust in a brand may also be characterized as “the confidence a consumer develops in the brand’s reliability and integrity” (Chatterjee & Chaudhuri, 2005). In other words, brand trust shows a belief in a brand based on the expectation that it will continue to be reliable and satisfy customers (Delgado- Ballester et al., 2003). Customers want to learn more about the brand and expand their understanding of it. From that, they will feel more confident, which leads to increasing brand trust. Therefore, businesses should behave in their customers’ best interests based on common goals and values that reflect trust (Kholis & Ratnawati, 2021). Many factors affect brand trusts, such as experience and brand relationship (Budi et al., 2021), commercial brand images (Kim, 2015), perceived service quality (Ukal & Mullatahiri, 2019)., 2019), social media marketing (Puspaningrum, 2020), COO (Shimp et al., 2003; Bilkey & Nes, 1982; Häubl, 1996; Michaelis et al., 2008; Vida & Reardon, 2008). Consumers’ pleasant impressions of a product, the COO, or other comparable features have a positive impact on their evaluations and help to develop trust in the products (Shimp et al., 2003). In addition, many analyses demonstrate a highly significant interaction effect: a good COO impact leads to a higher level of trust. Customers’ perceptions of a brand’s and its products’ trustworthiness are influenced by their place of origin (Bilkey & Nes, 1982; Häubl, 1996; Michaelis et al., 2008; Vida & Reardon, 2008). Based on prior research, this study will assess the impact of COO on brand trust, using Vietnam as a case study for India’s COVID-19 viral prevention vaccination.

2.2. Country of Origin

According to Watson and Wright, the country of origin impact, often known as the “made in” term, has been defined as the negative or positive impact that a product’s place of origin may have on customers’ behavior (Elliott & Cameron, 1994). (2000). The country-of-origin is defined as the country in which the corporation selling the product or brand has its headquarters (Aydin et al., 2007). COO refers to the effect that generalizations and sensations about a country have on an individual’s evaluation of that country’s products, or, in other words, the spectacle, prestige, and stereotype that purchasers identify with a given place’s outputs. (Cengiz & Kirkbir, 2007). Nationality’s reputation for technological supremacy, product quality, design, and value will naturally differ from country to country, but customers prefer to generalize their thoughts and judgments over a wide variety of items from a certain country (Patterson & Tai, 1991). In the subject of global marketing, the topic of country-of-origin effects has been intensively investigated. In mid-1997, Heslop et al. (1998) estimated that roughly 300 studies on COO existed. Furthermore, researchers looked into how the country of origin influences brand trust (Rosenbloom & Haefner, 2009; Singh, 2014). If a buyer has a nice emotion and impact from one product in a specific country, they are more likely to assume that the other products from that country are also positive in their minds, and vice versa (Agrawal & Kamakura, 1999). The perception of a brand’s COO reinforces the consumers’ trust in a brand, whether positive or negative (Paswan & Sharma, 2004). COO can create an association in the minds of customers (Aaker, 1991). COO is a form of branding strategy in that it aims to provide a competitive advantage based on familiarity with a brand name or a nation. Consumers’ perceptions of a product are influenced by the country of origin’s image (Potluri & Johnson, 2020). Numerous studies have discovered that it has an impact on consumer trust in a brand. If customers are uninformed of the brand’s COO, their trust will be eroded. According to Paswan and Sharma (2004) and Shocker et al. (1994), assessments of a country’s image are especially important in conveying a nation’s perceived image to the brand image, and so influencing brand trust, but only if the consumer is aware of and pays attention to the COO. To measure COO its effects on brand trust, this study will look at three components: perceived country image (PCI), the perceived value of the product (PVP), and perceived quality of the product (PQP).

2.2.1. Perceived Country Image

Country image is the general perception of a country’s products related to manufacturing and marketing capabilities. (Roth & Romeo, 1992). It also contains product categories, political, economic, and social aspects of the country (Jenes, 2008), level of industrialization (Essoussi & Merunka, 2007), the standard of living, and technology (Chinen & Sun, 2011). Purchasers often tend to measure the quality through external factors like prices, brand image, business image, or even the country image. Customers are more likely to be impressed by a brand whose image is associated with specific advantages, a solid reputation, high reliability, and superior services (Kotler & Keller, 2012; Keller, 1993; Aaker, 1997). Consumers use the country image in evaluating products because they cannot identify a product’s genuine quality before purchasing it (Huber & McCann, 1982). Furthermore, the prior study indicates that consumers with positive and strong perceived images are more likely to trust a brand (Esch et al., 2006). The proposed theory is:

H1: Perceived country image has a significant effect on brand trust.

2.2.2. Perceived Value

Perceived value is a combination of many factors such as qualitative and quantitative, subjective and objective, it is shaped from the customer’s consumption experience process (Schechter, 1984; Zeithaml, 1988). Customer perceived value is customers’ perception of the utility of a product or service (Zeithaml, 1988). Sweeney and Soutar (2001) proposed four criteria to measure the perceived value product of the customer including emotional value, functional value, economic value, and social value. There is a close correlation between the perceived value of goods and brand association, typically with studies on brand value, many authors use brand association instead of the perceived value of goods. There are many similarities between perceived value product and brand association. The brand association organized in the consumer’s mind is a subjective concept as its roots in their attitudes and feelings (Supphellen, 2000). Brand association refers to all elements including images, perceptions, beliefs, experiences, attitudes, feelings, and thoughts related to the brand (Kotler & Keller, 2006). In other words, it is anything associated in mind with the brand (Aaker, 1991). Most consumers who trust the brand associate it with a positive reputation (Roberts & Dowling, 2002). Previous studies of Phan and Ghantous (2013) and Chen (2017) showed the relationship between customers’ Perceived value product and brand trust, in which brand association could foster trust. The powerful brand association positively affects brand equity because it is considered as “an indication of quality and commitment”, which makes customers familiarise themselves with the brand. Accordingly, the following hypothesis is proposed:

H2: Perceived value of India’s COVID-19 vaccine has a significant effect on brand trust.

2.2.3. Perceived Quality

Perceived quality refers to consumers’ perceptions and evaluations of the overall quality and outstanding advantages of a product or service (Zeithaml, 1988). Perceived quality is consumers’ subjective behaviors based on their direct experience and information gained from their surroundings (Anderson et al., 1994; Yoo et al., 2000; Zeithaml, 1988). Baker & Fesenmaier (1997) believed that the perceived quality of a product or service is one of the most important factors for a company to gain a sustainable competitive advantage. According to Aaker (1991), perceived quality adds value to a brand as it helps the company to separate itself from rivals, charge a premium price, and have a solid foundation for brand extension. When consumers identify the uniqueness and benefits of one product above others, they develop a high-quality perception (Yasin et al., 2007). This action directly affects consumers’ trust in a brand. Aurier and Lanauze (2012) have also indicated that perceived quality affects brand trust significantly. In general, it is the customer’s perception of the product’s quality and attributes, such as its performance and dependability. When examining and measuring brand quality perceptions, there are several typical elements to examine, including reliability, durability, appearance, performance, and so on (Parasuraman et al., 1985). Based on the standards of the World Health Organization (WHO, 2021), the perceived quality of a vaccine is assessed relied on a person’s beliefs about the Efficacy of the vaccine; Immunity duration; Side effects and reactions; Age, and health status limitation of the vaccine. We propose the research hypothesis:

H3: Perceived quality of India’s COVID-19 vaccine has a significant effect on brand trust.

3. Methodology

3.1. Measurement Scales

The set of scales for components of COO including (1) PCI was built based on Roth and Romeo (1992), Jenes (2008), Essoussi and Merunka (2007), Chinen and Sun (2011), Kotler and Keller (2012), Keller (1993), Aaker (1997), Huber and McCann (1982), Esch et al. (2006); (2) PVP scale were adapted by Sweeney and Soutar (2001); and (3) PQP designed on Zeithaml (1988), Anderson et al. (1994), Yoo et al. (2000), Baker and Fesenmaier (1997), Aaker (1991), Yasin et al. (2007), Aurier and Lanauze (2012), Parasuraman et al. (1985), WHO (2021). Finally, the brand trust scale was based on Moorman et al. (1993), Lau and Lee (1999), Chaudhuri and Holbrook (2001), Chatterjee and Chaudhuri (2005), Delgado-Ballester et al. (2003), Shimp et al. (2003), Bilkey and Nes (1982), Häubl (1996), Michaelis et al. (2008), and Vida and Reardon (2008).

3.2. Questionnaire Design and Collect Data

The scales’ observable characteristics were evaluated on a five-point Likert scale ranging from 1 to 5, with 1 indicating strong disagreement and 5 indicating strong agreement. The primary data was gathered through a questionnaire that included the model’s components such as perceived country image, perceived value product, perceived brand quality, and brand trust. Vietnam was the site of the quantitative research project. The sample size was 407 Vietnamese, with the suggested age structure being 18 and up. In the COVID-19 pandemic situation, we collect the answers using Google Forms, which is the most convenient option. The participants respond to the online questionnaire through a Facebook invitation. The survey ran from December 1st to December 18^th, 2021.

3.3. Analytical Methods

The primary data were analyzed using the Statistical Package for Social Sciences software (SPSS), with the Cronbach’s alpha test, the Multivariable regression model, and the ANOVA test being the three main methods of data analysis. The Cronbach’s alpha test was used to estimate the scales’ reliability. The multivariable regression model was used under the type of linear regression to build the relationship among independent variables and the dependent variable. ANOVA test to compare the mean of brand trust between groups of samples.

4. Results and Discussion

4.1. Sample Structure

The primary data was collected from 407 Vietnamese people, in which the sample structure in Table 1 concentrated in the following groups: the age group between 18–22 making up 20.88%; the age group between 23–30 making up 18.18%; the age group between 31–40 making up 23.83%; the age group between 41–50 making up 17.69% and the group of people over 50, making up 19.41%. Similarly, the student group is the major force in providing information, accounting for 24.08%, followed by Government office employees with 19.90%, Pensioner- Homemaker-Farmer: 19.41, Business owner with 17.20%, the remaining groups are Private organization employees (11.55%) and Freelancer (7.86%).

Table 1: Sample Structure

4.2. Test the Reliability of the Scale

The scale sets of components belonging to the country of origin and brand trust were tested for reliability by the Cronbach Alpha method. The results summarised in Table 2 show that the Cronbach’s alpha coefficient of all components is from 0.88 to 0.96 and the corrected item total correlation was greater than 0.40, concluding that the scales are reliable, meet for measurement requirements for all components.

Table 2: The Results of Testing the Reliability of the Scales

4.3. The Impact of Country of Origin on Brand Trust

Table 3 summarizes the results of a multivariable regression analysis of the independent variables perceived country image (PCI), perceived value product (PVP), and perceived brand quality (PQP) to the dependent variable brand trust (BT) for the Indian COVID-19 vaccine. The regression analysis model passes the requirements with a system number R = 99% > 50%, Sig. F Change = 0.00 < 0.01, 1.0 < Durbin-Watson (1.91) < 3.0. The Adjusted R Square = 0.98 coefficient indicates that the model’s independent variables account for 98% of the variation in brand trust.

Table 3: The Results of Multivariable Regression Analysis

The results in Table 4 show a statistically significant relationship with 99% reliability of perceived country image- PCI (Sig. = 0.01 ≤ 0.01), Perceived value product-PVP (Sig. = 0.00 < 0.01), perceived brand quality-PQP (Sig. = 0.00 < 0.01) to brand trust (BT). Therefore, hypotheses H₁, H₂, and H₃ are accepted, that is, country of origin (COO) has a statistically significant relationship with brand trust in the case of India’s COVID-19 vaccine in Vietnam.

Table 4: Correlation Test Results between Independent and Dependent Variables

From the results of multivariable regression analysis in Table 4, the regression equation is summed up:

Research results show that PCI (Beta = −0.02, Sig. = 0.01 ≤ 0.01) has a negative effect on brand trust for India’s vaccine preventing COVID-19. The results indicate that India’s country image has not received a positive evaluation from the Vietnamese people, thereby negatively affecting brand trust in India’s COVID-19 vaccine. The remaining two components of COO are PVP and PQP have a positive correlation to brand trust, in which PVP has the highest impact in the research model. If the positive Perceived value product increases by one unit, it will result in a marginal increase of brand trust by 0.97 units. Similarly, if customers’ rate of PQP goes up by one unit, there will be a marginal incremental effect on brand trust by 0.04 units. As a result, the image of India has a detrimental impact on brand trust among Vietnamese people when it comes to COVID-19 vaccination goods. This finding demonstrates that the country of origin has a significant impact on COVID-19 vaccine brand trust. People are particularly worried about the location where the vaccine is manufactured, and this has a significant impact on brand trust. As a result, deciding which country to invest in to manufacture the COVID-19 vaccine is a critical strategic decision. Pharmaceutical businesses must be aware of and carefully analyze the perceived country image if they wish to invest in the manufacturing of a COVID-19 vaccine.

The average value of brand trust in India’s COVID-19 vaccination is 3.21/5.0, according to Table 5. When consumers were grouped according to their level of knowledge of the COVID-19 pandemic in India, those who had never heard of it had the lowest mean rating for brand trust, 3.09/5.0. The group of people who have studied and have an understanding of the COVID-19 epidemic in India has the highest mean of brand trust. Table 6 shows a statistically significant difference in mean with 99 percent reliability between the set of samples who are well-informed about the COVID-19 outbreak scenario in India and the other groups: (1) Never heard about the COVID-19 epidemic in India (Sig. = 0.01 ≤ 0.01); (2) Ever heard about the COVID-19 epidemic in India (Sig. = 0.00 < 0.01). Clear and complete communication on product-related country-state issues will contribute to increased brand trust for the country’s products.

Table 5: Average Statistics of India’s Vaccine Brand Trust

Table 6: Test for the Mean between Groups of Research Samples

***, **The mean difference is significant at the 0.01; 0.05 level.

The results in Table 6 also record a statistically significant difference in occupations in the mean of brand trust in India’s COVID-19 vaccine of the group of people whose career is private organisation employees (Mean = 3.48/5.0) with: (1) student (Mean = 3.05/5.0, Sig. = 0.01 ≤ 0.09) and (2) freelancer (Mean = 2.99/5.0, Sig. = 0.05 ≤ 0.05). In which, the group of people with private organization employees occupation group has the highest average brand trust of India’s COVID-19 vaccine is 3.48/5.0, while the group of people with freelancer occupation has the lowest mean of brand trust is 2.99/5.0 (Table 5).

In addition to the country-of-origin factor, demographic factors such as occupation and the information status related to the country’s industry also affect brand trust. Specifically, those who are well-informed and have stable jobs have higher evaluation and trust in India’s COVID-19 vaccine compared to other groups. The results of this study contribute to providing information for the identification of potential target customers of India’s COVID-19 vaccine in Vietnam. Accordingly, target consumers are those who are over 30 years old, have stable occupations, have developed an understanding of the pandemic situation, and have used Indian products before (the mean value of brand trust in Indian vaccine is 3.29/5.0, higher than that of the people who have never used any products made in India, with mean = 3.08/5.0, Sig. = 0.00 < 0.01).

5. Conclusion

The results of this study noted that the perceived country image has a minor negative effect on brand trust. This finding is similar to previous studies, typically as Huber and McCann (1982), Elliott and Cameron (1994), Agrawal and Kamakura (1999), Esch et al. (2006), Rosenbloom and Haefner (2009), and Singh (2014). That is, if customers appreciate and positively perceive the country’s image, it will have a positive impact on brand trust. Vice versa, it will have a negative impact on brand trust in that country’s products. According to the findings, the Vietnamese have a negative perception of India’s country image at this time, owing to India’s state of emergency and chaos during the second wave of epidemics. As a result, people are more sensitive and hesitate to place their trust in products made in this country. Therefore, apart from product development, any company should work on improving its national image and brand reputation. India should promote the deployment of national image-building initiatives linked to innovation, development, technology, and outstanding pharmaceutical achievements. Particularly, the government should enact measures that serve to improve the country’s image.

The study shows that perceived value of the product and perceived quality of product are the primary factors influencing customer trust in India’s COVID-19 vaccine in Vietnam, with the perceived value of the product having the greatest impact. The research findings are similar to previous ones related to perceived value and perceived quality, typical like Yasin et al. (2007), Yoo et al. (2000), Aurier and Lanauze (2012), Roberts and Dowling (2002); Phan and Ghantous (2013) and Chen (2017). The findings of the study show that to increase consumer trust in a brand, perceived value and perceived quality of the product must be fostered positively through propaganda projects and communication campaigns about India’s COVID-19 vaccines, which have characteristics such as safety, immune system boosters, and high effectiveness. Pharmaceutical firms should also improve product quality by establishing an international standards-based product quality management system to improve consumer perceptions of the product and gain competitive advantages in the international market.

To determine how COO affects brand trust, researchers looked at the components of perceived country image, perceived value, and perceived product quality. In addition, the research has contributed to the extension of concepts such as COO, perceived country image, perceived value, perceived product quality, and brand trust in a unique product such as vaccines to prevent COVID-19, a medical medication. According to the findings, Indian pharmaceutical companies might target the appropriate consumer in Vietnam, who is 30 years old or older, has steady employment, is knowledgeable about India, and has previously used Indian products. This group has high hopes for the COVID-19 vaccination brand from India.