BRANDING OF TERRITORIES IN INTERNATIONAL TRADE: IMPACT ON CONSUMER DECISIONS
Abstract
In the context of globalization of international commodity markets, territory branding has evolved from a tool for promoting tourism to a strategic factor in shaping the competitiveness of countries in the international trade system. This article examines the mechanisms by which territory branding influences consumer decisions, viewed through the prism of the country-of-origin effect (COO), place brand equity, and the competitive identity of countries in global markets. The theoretical basis is formed by the concepts of competitive identity by S. Anholt, brand equity from the consumer's perspective by K. L. Keller, as well as the results of meta-analytical studies of the quantitative parameters of the COO effect. It has been established that territory branding functions through three interrelated mechanisms of influence on the consumer: cognitive (forming an idea of the qualitative characteristics of the product), affective (emotional attitude to the country as a factor of loyalty), and normative (social norms that regulate purchasing behavior with regard to foreign goods). The results of a meta-analysis of 166 empirical studies with a total sample of 499,563 observations confirm the positive moderate effect of the country of origin image on consumer brand evaluation. It has been established that the willingness to pay a price premium for goods with a positive COO is statistically significant and has been confirmed experimentally. According to the marketing company Brand Finance, the value of the US nation brand in 2025 was $37.3 trillion. In addition, it has been established that the top 10 countries accumulate 73% of the total brand capital in the world. Geographical indications as a mechanism for branding place products ensure total sales in the EU of €74.76 billion with a price premium that is twice that of unprotected counterparts. The study also examines the specifics of Ukraine in the context of full-scale armed aggression, as the formation of a new image for the country in 2022–2025 has become a unique case of changing public diplomatic discourse into a tool for attracting investment. It is concluded that effective state branding is a multi-channel management strategy that affects tourist flows, trade balance, FDI volumes, and the country's long-term positioning in the global economy.
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