Introduction
The consumer decisions into whether to buy or not to buy a certain product are influenced by the products’ Country of Origin (COO). Researches have been conducted relating to country image perceptions as well as perceptions of consumers in different countries on products made in different countries (Fan, 2008). Country of origin (COO) is a crucial aspect when it comes to international business and more specifically in the field of market decision making.
Lampert, E.D.(1998) states that the COO construct can be broken into various components namely; country of product design (COD), country of parts manufacture (COP), country of product assembly (COA), and country of manufacture (COM). Crucially important to note is that these components have effects on the way customers view the design quality, manufacturing quality as well as overall quality of each product in different ways (Shimp & Subhash, 1987). Consumers have different perceptions of commodities from external markets due to cultural stereotypes or personal beliefs (Josiassen et al, 2008). Studies carried out by various researches show that consumer ethnocentrism provokes a negative attitude toward foreign advertisements and foreign products (Josiassen et al, 2008).
In decision making, therefore, it is important to note COO influence is subject to culturally derived antecedents as moderated by both product-based and individual consumer factors (Shimp & Subhash, 1987). A products evaluation, as well as purchase intentions, is by and large dependent on COO effects, brand image, and brand equity in international markets (Josiassen et al, 2008). While deciding on a product’s market internationally, it is important to understand that brand image is important in preventing negative COO evaluations (Shimp & Subhash, 1987). Thus a country producing strong brands is less likely to be affected by consumer perceptions of countries of origin as compared to brands with weak images (Lampert, 1998).
Further studies indicate extrinsic factors such as price and brand, COO becomes weak aspect for local consumers (Fan, 2008). Managers should appreciate that a country’s quality perception of a product is varied across product categories. Whereas COO is crucial for luxury products as well as necessities however it is a less important factor when it comes to a product’s reliability and performance (Cordell, 1992). It is acknowledged that COO information, serves to lower consumers purchasing intentions as opposed to incidences when they are offered moderate impressions (Shimp & Subhash, 1987). In some markets, it is noted that brand origin recognition depends entirely on the association of brand names with language that suggests country of origin (Shimp & Subhash, 1987). In some cases, it is suggested that producers should make use of foreign celebrities and a foreign brand name so as to balance negative COO on product evaluations (Cordell, 1992).
Conclusion
COO is imperative in decision making since the “made in” label, matters a great deal to stereotype consumers (Josiassen et al, 2008). However, it is important that a company’s product brand name should disguise the country of origin or even invoke a favorable COO (Shimp & Subhash, 1987). Moreover, COO stereotypes can be dealt with through price evaluation as well as distribution techniques and communication procedures (Cordell, 1992).
The knowledge of whether a particular country enjoys a positive or negative image is very essential for marketers since potential decision making can be positioned on it (Lampert, 1998). This is due to the fact that customers tend to favor products whose origin (Country) enjoys a positive image or perception (Fan, 2008). In the event that country of origin has a negative connotation for their products, it becomes crucial that the company de-emphasizes manufacturing origin and concentrates on the country of the brand (Lampert, 1998).
Reference
Josiassen, Alexander, Bryan A. Lukas, and Gregory Whitwell (2008), “Country-of-Origin Contingencies: Competing Perspectives on Product Familiarity and Product Involvement,” International Marketing Review, 25 (4), 423-40.
Shimp, Terence A. and Subhash Sharma (1987), “Consumer Ethnocentrism: Construction and Validation of the CETSCALE,” Journal of Marketing Research, 24 (3), 280-89.
Lampert, S. and Jaffe, E.D.1998.A dynamic approach to country of origin effects, European Journal of Marketing, 32, Issue ½:61-81.
Cordell, V.V.1992.Effects of consumer preferences for foreign-sourced products’, Journal of International Business Studies, 2nd Quarter: 251-269.
Fan Y. Country of origin, branding strategy and internationalization, Journal of Chinese Economic and Business Studies. (2008). Web.