The Effect And Influence Of Country-Of-Origin On Consumers Perception Of Product Quality And Purchasing Intentions

Abstract

This study evaluated the effect of country-of-origin on consumers perception of product quality in developed and emerging economies. The author reviewed several empirical studies conducted over several years and found that when consumers were aware of certain country characteristics, they were more inclined to use country-of-origin as an external cue in evaluating product quality and guiding their purchasing decision process. Consumers conferred a higher evaluation of product quality on products produced in developed countries, owing to the technological advances and competitive nature of the markets in these countries. Further, the study revealed that in certain countries, consumers prefer products manufactured locally, owning to ethnocentrism and patriotism. It further identified the challenges faced by multinational corporations as they explore the possibilities of outsourcing the manufacturing of their products to international countries in an effort to reduce cost and maintain price competitiveness. However, given the continuous globalization of markets, it is possible to neutralize the effect of country-of-origin on the evaluation of product quality and the influence on purchasing decisions. Evidence from the literature revealed that if other forms of product quality attributes were highlighted during the products promotion and marketing campaigns, country-of-origin would have low effect on consumers perception of product quality.