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    Country of Origin Effects: Image of "Made In" Label

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    Shivani Aggarwal
    The document discusses how a product's country of origin influences consumer perceptions. It notes that country-of-origin effects differ based on product category and quality level of the producing country. Consumers tend to overstate positive and negative attributes of products from given countries, resulting in country-of-origin bias. Brands play different cultural roles in countries like Japan, the US, and Europe. Stereotypes also exist regarding product-country and service origins. Strategies are discussed to address country-of-origin stereotypes through product policies, pricing, distribution, and communication.

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    Country of Origin Effects: Image of "Made In" Label

    Uploaded by

    Shivani Aggarwal
    106 views11 pages
    The document discusses how a product's country of origin influences consumer perceptions. It notes that country-of-origin effects differ based on product category and quality level of the producing country. Consumers tend to overstate positive and negative attributes of products from given countries, resulting in country-of-origin bias. Brands play different cultural roles in countries like Japan, the US, and Europe. Stereotypes also exist regarding product-country and service origins. Strategies are discussed to address country-of-origin stereotypes through product policies, pricing, distribution, and communication.

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    Country of Origin Effects

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    The document discusses how a product's country of origin influences consumer perceptions. It notes that country-of-origin effects differ based on product category and quality level of the producing country. Consumers tend to overstate positive and negative attributes of products from given countries, resulting in country-of-origin bias. Brands play different cultural roles in countries like Japan, the US, and Europe. Stereotypes also exist regarding product-country and service origins. Strategies are discussed to address country-of-origin stereotypes through product policies, pricing, distribution, and communication.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    106 views11 pages

    Country of Origin Effects: Image of "Made In" Label

    Uploaded by

    Shivani Aggarwal
    The document discusses how a product's country of origin influences consumer perceptions. It notes that country-of-origin effects differ based on product category and quality level of the producing country. Consumers tend to overstate positive and negative attributes of products from given countries, resulting in country-of-origin bias. Brands play different cultural roles in countries like Japan, the US, and Europe. Stereotypes also exist regarding product-country and service origins. Strategies are discussed to address country-of-origin stereotypes through product policies, pricing, distribution, and communication.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    of 11

    Country of Origin Effects

    Image of made in label

    COUNTRY OF ORIGIN
    WHERE A PRODUCT OR BRAND COMES FROM OFTEN
    INFLUENCES A CONSUMER PRECEPTION OF THE
    PRODUCT
    COUNTRY-OF-ORIGIN EFFECT = DEALS WITH
    QUALITY PERCEPTIONS OF PRODUCTS. THIS EFFECT
    DIFFERS BY PRODUCT CATEGORY AND QUALITY LEVEL
    OF THE COUNTRY OF PRODUCTION (JOHNY K. JOHANSSON, 2000)
    country-of-design, country-of-production

    COUNTRY-OF-ORIGIN BIAS = CUSTOMERS TEND TO


    OVERSTATE THE POSITIVE AND
    NEGATIVE OF
    PRODUCT ATTRIBUTES AND THIS CAN CAUSE A BIAS
    TOWARDS
    PRODUCTS FROM A GIVEN COUNTRY
    (JOHNY K. JOHANSSON, 2000)

    Global Branding
    Country of Origin

    Country with which good/service is associated

    Country of Manufacture

    Country where the product is manufactured (for products)


    Country where the headquarters are located (for services)

    In the absence of other product information,


    country of origin impacts consumers product
    evaluations.
    Dell is from Austin, Texas, United States
    Dell Laptop is made in China.

    ROLE OF BRANDS: CULTURAL DIFFERENC


    (JOHNY K. JOHANSSON, 2000)

    JAPAN

    US

    EUROPE

    IMAGE

    RISK REDUCTION

    RECOGNITION/ENVY

    FEEL GOOD

    TIME SAVER

    ACHIEVEMENT

    EMOTIONAL

    PEER DOMINATION

    HIGH ASPIRATIONS

    BELONGING

    DISTINCT

    PEER RECOGNITION

    INDIVIDUAL

    _________________________ ________________________
    VALUE ADDED AFFECT

    CONVENIENT AND SURE

    __________________________ ________________________
    DEFINES THE GROUP

    IDENTIFIES THE INDIVIDUAL

    ______________________________
    CALCULATED SOCIAL
    _____________________________
    HIGH-LOW STATUS

    Stereotypes: a widely held but fixed and


    oversimplified image or idea of a particular type
    of person or thing.

    Product-country
    stereotypes
    Service stereotypes

    Country of Origin (COO) Stereotypes


    There is ample evidence that shows that for many
    products, the Made in label matters a great deal to
    consumers.
    Key findings:
    a) COO effects are not stable; perceptions change over time.
    b) In general, consumers prefer domestic products over imports
    c) The critical factor appears to be the place of manufacture
    rather than the location of the companys headquarters.
    d) Demographics makes a difference.
    e) COO effects depend on the product category.

    Strategies to Cope with COO


    Stereotypes
    Country image stereotypes can either benefit
    or hurt a companys product
    a) Product Policy; Select a brand name that disguises the
    country-of-origin or even invokes a favorable COO
    b) Pricing: low or high price
    c) Distribution: companies could influence consumer
    attitudes by using highly respected distribution channels
    d) Communication

    Country of Origin, Price, and


    Brand, as Evaluative Criteria
    Country of origin is used to signal product quality
    Use of price as criterion varies across product
    categories:
    Acceptable price range is determined by past
    purchases; perception of benefits vs. costs indicates
    value; and the buying situation.

    Brand reputation
    Brand may be viewed as an indicator of quality and/or
    consistency of satisfaction - lessening risk.

    Ethnocentrism
    The belief that purchasing foreign products
    hurts the local economy by causing loss of
    jobs, and that it is morally wrong and
    unpatriotic
    Leads to the rejection of foreign products
    Example: US people tend to buy US
    products
    BUY
    AMERICAN!

    Attitudes Toward Foreign Products


    High ethnocentric consumers: purchasing
    imported products is wrong because it hurts
    the domestic economy, causes loss of jobs,
    and is plainly unpatriotic.
    Low ethnocentric consumers: foreign
    products should be evaluated on their own
    merit, without regard for country-of-origin.

    Attitude towards the Country of


    Origin
    Stereotyped attitudes toward foreign products &
    services can favor or hinder marketing efforts
    If the quality is perceived to be low
    Foreign origin of the product can be disguised
    Foreign identification of the product can be continued &
    consumer attitudes towards the product can be changed

    In some market segments foreign products have a


    substantial advantage because they are foreign

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