Country of Origin and Consumer Perceptions: Strategies and Initiatives

Country of Origin and Consumer Perceptions: Strategies and Initiatives

Copyright: © 2020 |Pages: 14
DOI: 10.4018/IJBSA.2020100105
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Abstract

Different products and brands come from different countries. Consumer perceptions and country images are developed because of country of origin. Country of origin affects global brands. Consumer perceptions about global brands are related to stereotyping, ethnocentrism, industrialization, technological developments, and fads. Consumer perceptions create influences on brand choices and acceptance of brands. Consumer perceptions about country of origin should be improved. Companies adopt a number of strategies and initiatives to overcome and improve country-of-origin perceptions. A proper understanding of consumer perceptions about country of origin is required for managers to realize consumer preferences about global brands and the connections between consumer perceptions and country of origin. All these will allow companies to establish their products and brands in foreign markets, sell their brands, and achieve business excellence.
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1. Introduction

Different products and brands come from different countries. Consumers and businesses judge products and brands based on the countries from which they originate (Hien, Phuong, Tran, & Thang, 2020). Individuals have pre-determined notions, perceptions, and beliefs about products and brands originating from a specific country (Basfirinci & Cilingir Uk, 2020). Business decisions are sometimes affected by the attitudes and beliefs individuals have about a specific country (Zameer, Wang, & Yasmeen, 2017). Attitudes and beliefs of the country from which a product or brand originates are the major determinants of the sales of the products and services from that country. For all these reasons, it is important to develop and maintain a positive image about a country in the minds of consumers. Country-of-origin perceptions are the mental associations and beliefs triggered by a country (Rashid, 2017). It is the aim of any country to improve its perception and image in the minds of customers to fare well in the global competition. This will help the domestic markets to export. Positive country-of-origin perceptions about products and brands help to attract foreign firms and investors (Mallon & Fainshmidt, 2017). It is obvious for marketers to take advantage of positive country-of-origin perceptions to sell their products and services. So, marketers require understanding and analyzing the country-of-origin perceptions and country images in the minds of customers.

Studies have been conducted to understand the characteristics of country of origin, the effects on consumer perceptions, and consequently the sales of such products and brands. However, a comprehensive study analyzing the various aspects of country of origin, the effects of consumer perceptions, and the various issues associated with country of origin is missing. The study aims at addressing the research gap.

The objective of the study is to conduct a qualitative and conceptual analysis of the various aspects of country of origin, consumer perceptions about country of origin, and the effects of consumer perceptions on choosing such brands.

The methodology adopted is the qualitative and conceptual analysis of the literature on country of origin, consumer perceptions about country of origin, and the various aspects associated with country of origin. Latest literature on country of origin was analyzed. The study did not collect primary data and did not conduct an empirical analysis.

The novelty and the contributions of the study lie in the fact that a thorough qualitative and conceptual analysis of the various aspects of country of origin is done. The latest and the relevant literature on the topic is analyzed to understand consumer perceptions about country of origin. Individual perceptions are developed to a large extent based on the country of origin of a particular product or brand and goes a long way in generating revenues and profits for products and brands. Consumer perceptions about country of origin decide how successful the products and brands will be in different markets. Companies and managers will be able to understand consumer perceptions about brands, how they should position their brands, and how they might develop and influence consumer perceptions. Academicians will understand the various aspects of country of origin and how consumer perceptions about brands coming from a specific country are developed.

The study is structured as follows.

Section 2 discusses about country images and consumer perceptions. Section 3 focuses on the effects of country-of-origin on different global brands with sub-sections 3.1, 3.2, 3.3, 3.4, and 3.5 focusing on country of origin and stereotyping, ethnocentrism, and country-of-origin perceptions, industrialization and country-of-origin perceptions, technological developments and country-of-origin perceptions, and fads and country-of-origin perceptions respectively. Companies adopt a number of initiatives which help consumers to overcome country-of-origin perceptions and these initiatives are discussed in sub-section 3.6. Section 4 discusses about country of origin and consumer perceptions with sub-sections 4.1 and 4.2 focusing on influence of country-of-origin perceptions on brand choices and country of origin and acceptance of brands respectively. Sub-section 4.3 discusses about the initiatives which different brands take to improve country-of-origin perceptions. Section 5 discusses about the salient points of the study with sub-sections 5.1 and 5.2 highlighting the theoretical and managerial implications of the study respectively. Section 6 concludes the study with sub-sections 6.1 and 6.2 highlighting the limitations of the study and the avenues of future research respectively.

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