How to

marketers

influence

country-of-

origin

effects?

The country-of-origin effect (COE), also known as the made-in-image and the nationality bias, is a psychological effect describing how consumers’ attitudes, perceptions and purchasing decisions are influenced by products’ country of origin labelling.

New Zealand developed Concerted marketing programs both to sell its products outside the country, via its New Zealand Way program

and to attract tourists by showing the dramatic landscapes featured in The Lord of The Rings film trilogy.

Building Country Images

Consumer Perception of Country of Origin

People are often ethnocentric and favorably predisposed to their own country’s products unless they come from a less developed country

The more favorable a country’s image, the more predominantly the “Made in…” label should be displayed

The impact of country of origin varies with the type of product. Consumers want to know where the car was made, but not the lubricating oil.

Certain countries enjoy a reputation for certain goods and services : Japan for automobiles and consumer electronics; France for wines.

Sometimes country-of-origin perception can encompass an entire country’s products.

In one study, Chinese consumers in Hong Kong perceived U.S. products as prestigious, Japanese products as innovative and Chinese products as cheap.

Marketers must look at country-of-origin perception from both a domestic and a foreign perspective

In the domestic market, these perceptions may stir consumers’ patriotic notions or remind them of their past.

Patriotic appeals underlie marketing strategies all over the world, but they can lack uniqueness and even be overused, especially in economic or political crises.

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