American Perceptions of Vodka Shaken, Not Stirred:

An Analysis of the Importance of Vodka’s

Foreign Branding Cues and Country-of-Origin Information

Jon Kurland

October 26, 2004

Language and Popular Culture

Abstract

A study was conducted to assess the importance of the foreign branding of vodka in conjunction with stated country-of-origin information. Utilizing theories of foreign-branding, the study attempts to uncover country-of-origin vodka biases in the perceptions of the American consumer while at the same time assessing the value of Cyrillic characters on a vodka label. As Eastern Europe is commonly perceived to be the birthplace of vodka, it was expected that Slavic branding of a vodka product would increase its appeal to the American consumer. Nevertheless, it was unclear as to how the American consumer differentiates between different degrees of “Russianness.” By presenting subjects with five slightly altered advertisements of the same fictitious vodka, results obtained seem to suggest that to the American consumer, factors which hint at genuine “Russianness” such as stated Russian importation as well as pseudo-Cyrillic characters within the brand name are preferable to unstated origin, American origin, entirely Cyrillic or entirely non-Cyrillic branding.

Introduction

The consumer perception of a product is often influenced by information about the nation in which the product was made (Hastak 1991). The importance of such stated country-of-origin information (LeClerc, Schmitt, and Dubé 1994) has been noted by many prominent researchers in the field of marketing since the 1960s (Han 1989). Since the majority of goods and services are very difficult to evaluate until they are actually consumed or used, extrinsic cues (Bilkey 1982) such as country-of-origin information can affect “general perceptions of quality” in a significant way (Han 1989). Indeed, a product is evaluated more positively when consumers are informed that it “has been manufactured in a country known for high-quality products compared with a country known for low-quality products” (LeClerc et al. 1994 1994). It is therefore the case that country-of-origin information analysis can be applied to a wide range of products.

Thus, foreign branding has been found to significantly affect consumer perception and has been found to be a very effective way to influence consumer perceptions and attitudes by evoking connotations of foreignness (LeClerc et al. 1994 1994). Many countries carry positive connotations in connection with particular products. Germany, for example, is known for its cars, France for its fashion and beauty products, Switzerland for its watches, and Japan for its electronics (Onkvisit 262-263). Such renown can be taken advantage of without actual national authenticity by means of foreign branding.

Many of the most popular vodkas worldwide employ such strategies. It is no coincidence that Smirnoff, the international leader in vodka with 2002 sales of over $1.8 billion (Brown 2002), sounds linguistically Russian despite its American origins. The Smirnoff brand, however, goes to great lengths to pass off its product as genuinely Russian, i.e. of actual Russian origin.. For example, the Smirnoff label is tinted in a deep red, a color unmistakably associated with Russia[1]. On the Smirnoff website (www.smirnoff.com), there exists a sizable icon which is an obvious allusion to St. Basil’s Cathedral in Moscow. Yet nowhere upon the site does anything explain that Smirnoff is actually based in Stamford, CT, or that it was originally owned by the Heublein Company of Detroit and now by the British parent company Diageo (Passmore 2004, 48). Nevertheless, Smirnoff Vodka effectively carries a vaguely Russian connotation in the minds of most consumers, (Passmore 2004, 49) and in this way effectively utilizes foreign branding.

Stolichnaya Vodka, in comparison, is in fact imported from Russia. This is something the company aims to make exceedingly clear in giving the full name of “Stolichnaya [which refers to столица, ‘the capital’, i.e. Moscow] Russian Vodka” to what many refer to simply as “Stoli” (www.stoli.com). While the first origins of vodka[2] are elusive, in the minds of many consumers vodka is inherently Russian (Pokhlebkin 1992 , xv). In integrating the product’s true Russian origins into the very name of the product, the company intends to demonstrate the products veritable authenticity and highlight its valued country of origin.

This study intends to explore many of these factors employed by existing vodkas like Smirnoff and Stolichnaya by means of a fictitious vodka named “Ždalo,” an unambiguously Slavic-sounding word . The very name of this product implies Russian origin much like the Smirnoff brand does. Employing theories of foreign-branding, the study focuses on discovering country-of-origin vodka biases in the perceptions of the American consumer while at the same time assessing the value of Cyrillic characters on a vodka label.

Review of the Literature

One of the most innovative studies conducted in the field of country-of-origin perception is that of Bilkey and Nes (1982), in which demographic, personality of consumer, promotion, and country-of-origin bias variables were all found to significantly affect country image in both first and third world countries. Han (1989) attempted to compare the “halo effect” of country image on the perception of unfamiliar products with a “summary construct hypothesis”: the importance of country image on an already familiar product. Ultimately, by analyzing Japanese, Korean, and American electronics and automobiles Han suggested that consumers use the halo around a country’s image in selecting unfamiliar products, while consumers’ beliefs affect country image which in turn affect brand attitude when it comes to familiar products. Hastak and Hong (1991) cleverly combined country-of-manufacture information with price data to analyze consumer judgments upon product evaluation.

One can also not ignore the groundbreaking research done in the field of foreign branding by LeClerc, Schmitt and Dubé (1994), in which the effect of French-branding on both utilitarian[3] and luxury products was explored. Ultimately LeClerc, Schmitt and Dubé posed the question of whether “foreign branding [is] always a stronger cue than country of origin, as [their] results seem to suggest, or are there factors that are likely to influence the relative strength of these cues?” An analysis of vodka products focusing upon the use of varying degrees of Cyrillic foreign branding in conjunction with claims of Russian origin is a way to explore the “relative strength” of these two cues.

The Study

This study was conducted by means of a survey given to random participants on Locust Walk and in dorms of the University of Pennsylvania ages 18-42. Two conditions were tested for: foreign branding and country of origin information. Subjects were given a simple survey in which five advertisements were presented. Each advertisement presented a different version of the fictitious “Zdalo Super-Premium Vodka” in the form of a picture of the vodka bottle set upon an Arctic background, accompanied by a description of the product. An arctic background was chosen so as to denote cold, refreshing, and Northern connotations, strategies which are commonly used in vodka advertisements. The same background, font, and descriptions were used for all of the advertisements to keep them as similar as possible. Subjects were asked to rate the appeal of each product on a scale of 1-10, and were then asked to rate the general appeal of vodka products on a scale of 1-10. Fifteen subjects were surveyed, and the results were divided by the two testing variables: foreign branding cues and country-of-origin information.

Foreign-Branding Cues

At the outset, the experimenter hypothesized that when presented with a an English-written vodka product, a “faux-Russian” vodka product, and a Russian Cyrillic vodka product, the American consumer would find the “faux-Russian” product be the most attractive as a result of its connotations of Russian authenticity and its avoidance of confusing degrees of foreignness.

Foreign branding differences were presented to the 15 subjects by the presentation of various degrees of “Russianness” in the product’s name itself. Subjects were presented with a survey consisting of three differently foreign-branded vodka product advertisements. The control product consisted of familiar Roman characters and appeared as “Zdalo Vodka.” The second product was intended to appear more Russian, with the inclusion of a Cyrillic letter as well as the inclusion of an obviously non-English “Ž” and thus appeared as “Ždalo Цodka.” The third and final product was an attempt at depicting the actual Russian script, featuring the phonetic way of writing “Zlado” in Cyrillic as well as the Russian Cyrillic word for vodka and was thus presented as “Зладо Водка.”

Foreign Branding Results

To compare the various appeals of the three differently foreign-branded vodkas, an appeal to general appeal ratio was calculated for each product and then averaged by the number of subjects in the study. An appeal to general appeal ratio is a device utilized so as to offset discrepancies in different subjects’ rating systems. By dividing appeal by general appeal, a ratio is created which serves as a better indicator for general comparison of a product The experimenter’s hypothesis was borne out within this data set. The faux-Russian “Ždalo Цodka” was overwhelmingly favored by those surveyed with a raw average of 1.333 as compared to the other two vodkas. The control, “Zdalo Vodka” received a rating of 1.230, while the completely Cyrillic “Зладо Водка” received an appeal to general appeal ratio of 0.870.

Table Demonstrating the Appeal to General Appeal Ratio
of Foreign-Branded Vodka Products to the American Consumer
Subject 1	Zdalo Vodka	Ždalo Цodka	Зладо Водка
Subject 2	1/1	2/1	3/1
Subject 3	5/10	5/10	7/10
Subject 4	8/8	7/8	3/8
Subject 5	1/2	5/2	3/2
Subject 6	8/7	5/7	1/7
Subject 7	5/2	4/2	1/2
Subject 8	5/5	2/5	1/5
Subject 9	10/10	9/10	1/10
Subject 10	6/3	7/3	5/3
Subject 11	5/9	6/9	6/9
Subject 12	8/4	8/4	3/4
Subject 13	10/5	8/5	6/5
Subject 14	4/2	4/2	3/2
Subject 15	5/4	6/4	3/4
Total	18.448	19.989	13.051
Raw Average	5.400	5.600	3.067
Average	1.230	1.333	0.870

Country-of-Origin Information

At the outset, the experimenter hypothesized that when presented with the same vodka with different country-of-origin information, the imported Russian vodka would be found to be the most desirable to the American consumer.

Country-of-origin information was tested for by means of altering both the name of the product as well as its origin information within a given advertisement. Subjects were given three different advertisements. The control advertisement did not contain any country of origin information, yet presented the same “faux-Russian’ vodka used in the previous foreign-branding experiment: “Ždalo Super-Premium Цodka.” The second advertisement presented “Ždalo Super-Premium American Цodka,” which contained the phrase “made in USA” within its advertisement. The third advertisement presented subjects with “Ždalo Super-Premium Russian Цodka,” which contained the phrase “imported from Russia” within its advertisement. All three of the advertisements contained the same fonts, background Arctic scene, as well as product descriptions with the exception of the names of the given vodkas.

Country-of-Origin Results

Just as in the results for the analysis of foreign-branding cues, an appeal to general appeal ratioof the different vodka products was calculated by taking an average of the data from the 15 surveyed subjects in the study. The experimenter’s hypothesis was corroborated by this data set, as the “Ždalo Super-Premium Russian Цodka,” was overwhelmingly favored by those surveyed with a raw average of 1.738 as compared to the other two vodkas. Country-neutral “Ždalo Super-Premium Цodka,” received a rating of 1.333, and the overt statement of American origin proved to be very unpopular to the appeal of “Ždalo Super-Premium American Цodka,” which received an appeal to general appeal ratio of 1.186

Table Demonstrating the Appeal to General Appeal Ratio
of Vodka Products of Different Origins to the American Consumer
	Condition 1	Condition 2	Condition 3
Subject 1	Ždalo Цodka	Ždalo American Цodka	Ždalo Russian Цodka
Subject 2	2/1	4/1	7/1
Subject 3	5/10	3/10	6/10
Subject 4	7/8	7/8	9/8
Subject 5	5/2	4/2	6/2
Subject 6	5/7	5/7	7/7
Subject 7	4/2	1/2	4/2
Subject 8	2/5	2/5	5/5
Subject 9	9/10	1/10	10/10
Subject 10	7/3	7/3	8/3
Subject 11	6/9	6/9	7/9
Subject 12	8/4	6/4	6/4
Subject 13	8/5	7/5	7/5
Subject 14	4/2	4/2	4/2
Subject 15	6/4	4/4	4/4
Total	19.989	17.789	26.069
Average	1.333	1.186	1.738
Raw Average	5.600	4.067	6.000

Conclusion

The conclusions that emerge from this study seem to suggest that a product is most appealing to the American consumer when its foreign branding cues are congruent with its foreign branding characteristics. The experimenter’s hypotheses favoring “faux-Russian” appeal as well as stated Russian origin were proven to be accurate within this data set. Such a conclusion supports LeClerc, Schmitt, and Dubé’s similar research on the hedonic and utilitarian appeal of French products (1994). Yet when it comes to a foreign-branded Russian product, there is a line at which appealing foreignness ends and excessively confusing differences tarnish the product’s appeal. American consumers seem to favor a more Russian-looking label on their vodka, but when they are presented with a brand completely in Cyrillic, such a product is too confusingly unfamiliar to be found appealing. With regard to a vodka’s country-of-origin information, this study presents findings consistent with previous studies as well as the brand name manipulation present within existing products such as Stolichnaya Russian Vodka. Consumers do not like inconsistent country-of-origin information. A Slavic-sounding vodka that is trumpeted as American is just as deeply unappealing as a vodka proclaimed to be Russian is desirable.

In the face of such findings, it must be noted that many elements of this experiment were not scientifically adequate. The size of the subject pool was insufficient. Additionally, the appeal to general appeal ratio is by no means the most statistically accurate tool for comparison of various products. The order in which the advertisements were presented could also have altered the results. Further experiments involving these factors would need to take such inadequacies into account.

Additionally, further experimentation is suggested with regard to the usefulness of a Cyrillic seal or other such implement upon the label of a vodka product. Further research could also focus upon American perceptions of newly released French vodkas such as Grey Goose and Cîroc.

References Cited

1. Bilkey, Warren J. and Erik Nes. 1982. ''Country-of Origin Effects on Product Evaluations." Journal of International Business Studies 13:89- 99.

2. Brown, Heidi. “Liquor Quicker.” Forbes Magazine. April 15, 2002.

3. Han, C. Min. "Country Image- Halo or Summary Construct." Journal of Marketing Research. Volume 26, May 1989. p. 222-229.

4. Hastak, M. and Sung-Tai Hong, 1991. ''Country-of-Origin Effects on Product Quality Judgments: An Informational Integration. Psychology and Marketing 8:129-143

5. LeClerc, France, Bernard H. Schmitt, and Laurette Dubé. "Foreign Branding and Its Effect on Product Perceptions and Attitudes." Journal of Marketing Research. Volume 31, May 1994, p. 263- 270.

6. Onkvisit, Sak, and John J. Shaw. International Marketing: Analysis and Strategy. New Jersey: Prentice Hall, 1997. 260-264.

7. Passmore, Nick. “Vodka Rocks!” Forbes Magazine. July 27, 2004.

8. Pokhlebkin, William. A History of Vodka. London: Verso Press, 1992.

9. Smirnoff Vodka. <www.smirnoff.com> Accessed October 12, 2004.

10. Stolichnaya Russian Vodka. <www.stoli.com> Accessed October 11, 2004.

Images associated with this study are located at <a href=lrrc3.sas.upenn.edu/popcult/adverts/DRINKS/kurland/> lrrc3.sas.upenn.edu/popcult/adverts/DRINKS/kurland .</a>

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[1] Red is a recurring theme in Russian history as a color emblematic of communism. The successful Bolshevik Revolution of 1917 was led by a force trained by Leon Trotsky known as the Red Guard. That revolution took place during what is now known as Red October. The USSR’s hammer-and-sickle flag was also emblazed upon a red backing.

[2] Much about the history and origins of vodka is ambiguous and disputed. According to William Pokhlebkin, whose A History of Vodka is perhaps the most painstakingly conducted academic study of the the product’s history, etymologically the word does not appear in the dictionaries compiled of Old Slavonic, the language from which all of the Slavic national languages evolved. This demonstrates that the name vodka (stemming from voda, the Russian word for water) was not present in the Russia or the Slavic world until at least the fourteenth century (Pokhlebkin 1993, 7). To Russia’s dismay, on an international scale, the nation does not have exclusive trading rights to vodka in the way that the French region of Champagne does [ because of “appellation controllée] to its eponymous beverage. This comes as a result of historical circumstances, in which the Russian Revolution of 1917 prohibited vodka until 1936, which spurred the emigration of many vodka producers (Pokhlebkin 1992, 176-177). Additionally, Polish historians reject Russia’s claim to being the first producers of the product based upon the apparent appearance of the word in records dating back to the early fifteenth century. Nearly a hundred years later, nevertheless, is when vodka emerged in the modern sense of the word with the “relative development” of the process of distillation (Pokhlebkin 1992, 41). Today, many of the vodkas on the market are distilled from a “variety of countries” such as Japan, France, Estonia, Ireland and Russia, and “new ones appear with regularity” (Passmore 121, 1997). In terms of production, the goal of vodka distillation is to create a neutral spirit, and as a result the product can come from virtually anything capable of fermentation. Modern vodka is generally 80 proof and above, and is created in a relatively simple process: “you simply ferment a mash of wheat, rye or potatoes, run the result through a still, filter it to remove the last vestiges of the oils and congeners that impart flavor, and stick it in the bottle” (Passmore 1997, 122). With regard to differences in taste between “super-premium” and more “affordable products,” it has been found that in blind-tests the more expensive vodkas are rated better, but only negligibly (Passmore 1997, 122.). Thus, according to Passmore, ultimately differences in country-of-origin as well as price of a vodka product are less important than advertising and presentation.