Country Image and Brand Equity Effects of Chinese Firms and Their Products on Developed-Market Consumer Perceptions

As China’s rapid economic growth continues to be a significant dimension of the world economy and international business, more Chinese multinational firms have been emerging with increasing efforts towards internationalization. While manufacturing, labor efficiency and costs have been a source of their competitive advantage, one area of relative weakness has been their lack of corporate/product brand equity and recognition.

Coupled with potential negative country image effects, this deficiency has hindered a more positive perception and acceptance of brands and products from China, particularly in the more developed markets, such as the United States (U.S.). This empirical study examines the nature of such a challenge faced by Chinese firms and their need to develop an effective branding strategy for success in the U.S. market.