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Marketing Intelligence & Planning

Country of origin effects: a literature review


Khalid I. Al-Sulaiti Michael J. Baker
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Khalid I. Al-Sulaiti Michael J. Baker, (1998),"Country of origin effects: a literature review", Marketing Intelligence & Planning,
Vol. 16 Iss 3 pp. 150 - 199
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Country of origin effects: a literature review

Khalid I. Al-Sulaiti
PhD Student, Department of Marketing, University of Strathclyde, Glasgow, UK
Michael J. Baker
Professor of Marketing, Department of Marketing, University of Strathclyde,
Glasgow, UK

This paper provides a pertains to firms that maintains a relatively


comprehensive review of the Introduction large global network of operations or do busi-
literature regarding the effect Over the past 30 years or so the growth in ness with a variety of suppliers, e.g., contract
of country of origin on international trade and the development of manufacturing (p. 581). While, Bannister
consumer perceptions of global markets has been accompanied by a and Saunders (1978), Chasin and Jaffe (1979)
products and services. significant increase in interest in the nature and Nagashima (1970, 1977) used the term
Results reveal that consumer of competitiveness. Among the many factors made in[1] to define the country of
perceptions differ signifi- which are believed to impact upon inter- origin of the product.
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cantly on the basis of national competitiveness, country of origin In the modern marketplace defining the
product/service and country (COO) effects (sometimes referred to as country of origin can be a very complicated
of origin. The country of product country image or PCI) have attracted task. The growth of multinational companies
origin may be an important growing attention. and the evaluation of hybrid products[2], with
element in the perceptions This literature review covers most of the components from many source countries,
consumers have of products citation on the subject and is believed to be have in many cases blurred the accuracy or
and services especially where the most comprehensive and up-to-date validity of made in labels (Baker and
little other information is currently available. The review opens with Michie, 1995; Baughn and Yaprak, 1993;
known. However, the question some definitions of COO effects and is then Chao, 1993; Yaprak and Baughn, 1991). For
of how much influence the organised chronologically and thematically. example, Sony is a Japanese manufacturer
country of origin provides in The period covered is from 1965 to early 1997 but some of its products are assembled out-
product and service evalua- and the themes addressed include the evalua- side Japan in countries like Singapore (Baker
tions remains unanswered and Michie, 1995). With this example, the
tion of products, stereotyping, the effects of
and a number of other major product assembled in Singapore would be
demographics on consumers perceptions of
issues have yet to be denoted assembled in Singapore and that
imports, perceived risk and country of origin
resolved. Directions for future assembled in Japan would be considered as
effects and, finally COO effects on service
research are developed. made in Japan (see Figure 1).
decisions.

Figure 1
Definition Country of origin definition
Country of origin effects have been defined in
many ways in the literature. According to Assembled Made in
Sony in Japan
Wang and Lamb (1983), country of origin Japan
effects are intangible barriers to enter new
markets in the form of negative consumer
bias toward imported products. Johansson
et al. (1985) and Ozsomer and Cavusgil (1991)
Assembled Assembled
define country of origin as the country where Sony in in Singapore
corporate headquarters of the company Singapore

marketing the product or brand is located.


Typically, this is the home country for a
With special appreciation to
company. Country of origin is inherent in
Dr Nabeel Shams, Bahrain
Center for Studies and certain brands. IBM and Sony, for example,
imply US and Japanese origins, respectively
Product evaluation
Research, for his valuable
comments. (Samiee, 1994). Bilkey and Nes (1982), Cattin et Schooler (1965) conducted a study in
al., (1982), Han and Terpstra (1988), Lee and Guatemala with the simplest of mani-
Schaninger (1996), Papadopoulos (1993) and pulations. Schoolers manipulation involved
White (1979), define the products country of presenting four groups of 200 respondents of
origin as the country of manufacture or part-time students with a juice product and a
Marketing Intelligence &
Planning assembly. It refers to the final point of swatch of fabric. These products bore
16/3 [1998] 150199 manufacture which can be the same as the fictitious labels denoting four different South
MCB University Press headquarters for a company. According to American countries (e.g., one group was
[ISSN 0263-4503] presented with products labelled as
Samiee (1994) country of manufacture
[ 150 ]
Khalid I. Al-Sulaiti and Guatemalan, the second group was presented consumers perception of international
Michael J. Baker with products labelled as Costa Rican, etc.). products: regional versus national labelling.
Country of origin effects: a The study showed that products made in less The purpose of the study was to determine
literature review developed countries were not evaluated as how consumers responded to the manu-
Marketing Intelligence & quality products. Consumers were biased for factured goods of developing areas if the prod-
Planning
or against products from a less developed ucts were labelled regionally. The findings of
16/3 [1998] 150199
country when they were evaluating products the study did not show any evidence of bias
made in different, less developed countries. against the manufactured goods which were
Schooler (1965) found that Guatemalan labelled regionally. He concluded that
students gave lower evaluations to products regional labelling (e.g., made in Asia, made
made in El Salvador and Costa Rica than to in Latin America, etc.) might work to reduce
domestic and Mexican products and that this intraregional product bias.
bias was related to a general negative attitude In his follow-up study, Schooler (1971)
toward people from the former two countries. attempted to test bias phenomena with a
Schooler (1965) concluded that the country of broadly-based representative consumer
origin of a product can have an effect on a sample. The results showed significant differ-
consumers opinion of the product. ences towards products of foreign origin, and
Reierson (1966) tried to determine the a hierarchy of bias effect was observed. In
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attitude of American consumers toward addition, the results indicated that neither
foreign products. Therefore, the question- national nor regional labelling appeared to be
naire asked 105 business administration more effective than the other. The products of
students and 50 psychology students to Germany were rated better than those of
indicate their opinions of products from ten Asia, India and Western Europe. On the other
different nations: hand, US products also were rated better than
1 USA.
those of India and Western Europe.
2 Germany.
Schooler (1971) concluded the following:
3 Japan.
The older age group rated the products of
4 France.
Asia, Africa, West Germany and North
5 Canada.
America lower than the younger age group.
6 Italy.
Females evaluated foreign products higher
7 UK.
than males.
8 Sweden.
Educational level and intensity of bias were
9 Belgium.
observed. Consumers with a high level of
10 Denmark.
education were more in favour of foreign
Products were mechanical, food, and fashion products than those with limited education.
merchandise. Reierson (1966) found that The group composed of non-white people
stereotyping of foreign products was present evaluated products from Africa, Latin
among the American students. America and India better than the group of
Reierson (1967) continued his work of white people.
investigating American students attitudes The white group evaluated the products of
towards foreign products and concluded that US and North America better than non-
if the prejudice of consumers toward a white.
nations product is not too intense,
consumers attitude may be made signifi- Nagashima (1970) compared Japanese and
cantly more favourable by even slight American attitudes toward foreign and
exposure to communication and promotional domestic products by using the semantic
devices (p. 386). differential method. The purpose of the study
Schooler and Wildt (1968) measured the was to measure the cross-cultural image of
elasticity of product bias[3] and 236 student made in products as produced by US and
respondents were selected randomly and Japanese businesses. The study consisted of a
divided into six groups. Each group examined random sample of 230 Minnesota businesses
two pieces of glassware, one of which was chosen from the Minnesota Directory of Man-
labelled as American, and the other as ufacturers and 100 Tokyo businesses chosen
Japanese. The labels were authentic, but the from the Tokyo Directory of Companies.
products were identical pieces of a domestic Countries used were USA, Japan, Germany,
manufacturer. Subjects were asked to UK, France, Italy, Switzerland, and Canada.
indicate a purchase preference. Schooler and The questions were carefully translated into
Wildt (1968) noticed that many American Japanese making sure that the associative
consumers were biased against Japanese value of the language was not lost in the
products because of their national origin. In translation. The author used a seven-point
1969 Schooler and Sunoo investigated the scale with each scale position arbitrarily
[ 151 ]
Khalid I. Al-Sulaiti and weighted from good (+3 points) to bad product image of Americans and people from
Michael J. Baker (3 points). developing countries and to investigate the
Country of origin effects: a Consumers were asked to mark the seven- effect of demographic variables on the made
literature review point scale for reliable-unreliable, and list in image among those countries. Product
Marketing Intelligence & the product which first came to mind where classes used in this study were mechanical
Planning they saw the names of the countries; which
16/3 [1998] 150199 products, food products and fashion products.
countrys product they would choose if price, Specific products used for evaluation in this
quality and styling were equal; and which study were automobiles, television sets, soft
country produces products of the greatest drinks and dress shirts. Respondents
value. Nagashima (1970) found that the made (student, staff, faculty members and their
in stereotype differed among Japanese and
families) were asked about their perceptions
American businessmen. Japanese business-
of countries and their perceptions of the
men rated made in Germany as the best
quality of products.
while American businessmen gave the
The results of the study showed that people
highest rating to their domestic label. The
from developing countries tended to have an
British were recognised for their excellent
craftsmanship, while US and Japanese unfavourable made in image of their home
businessmen rated France the lowest of the countrys products in terms of workmanship,
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five countries. reliability, durability, technical superiority,


Nagashima (1970) also found that the made and other characteristics. Moreover, the
in image was strongly influenced by study indicated that Americans were more in
familiarity and availability of the countrys favour of Japanese products. In addition,
product in question. In his follow-up study, demographic characteristics had also played
Nagashima (1977) repeated his earlier 1970 a part in creating differences in made in
study of the made in product image among image held by Indians, the test country group.
Japanese businessmen. The purpose of this For example, sex and travel experience
study was to determine whether there had accounted for significant differences in
been any attitude change among Japanese made in images among Indians.
businessmen over the eight-year period. Dornoff et al., (1974) examined consumers
Nagashima (1977) asked the Japanese perceptions of imports. The aim of their
businessmen their opinion regarding US, study was:
Japanese, German, British, and French To find out what consumers perceptions of
products in terms of five dimensions (price imports were.
and value, service and engineering, advertis- If these perceptions differed for specific
ing and reputation, design and style and con-
countries.
sumer profile). The findings of the study indi-
If these perceptions differed between
cated that the overall made in USA image
product classes.
had deteriorated in many ways during the six
If differences in perceptions were based on
years 1969-75. The made in USA label was
socio-economic characteristics.
rated the lowest among the five countries in
terms of careful and meticulous workman- Respondents were ordinary consumers
ship, while made in Japan, Germany, selected by a systematic random sample from
Britain and France had been significantly the greater Cincinnati Metropolitan Area
upgraded. telephone directory. Of the 400 consumers
Greer (1971) investigated the usefulness of selected, only 216 questionnaires were
having the view of professional purchasing returned in a complete form. Countries used
executives. Written questionnaires were were USA, France, Germany and Japan.
presented to a random sample of 60 members
Product categories used were mechanical
(3 per cent) of the British Purchasing Officers
products, food products, fashion merchandise
Associations. Greer (1971) modified Osgoods
and electronic equipment. The results of this
(1957) semantic differential for use in his
study indicated the following:
study. Thus, the surveyed purchasing officers
were asked about the quality of products, in Respondents were neutral towards made
general, and the engineering know how, in in France.
general. Countries used were Australia, Products made in Japan were considered
Belgium, Canada, France, Holland, Italy, USA as substitutes for US products.
and West Germany. The findings of this study Foreign products were becoming increas-
indicated that the older respondents rated ingly competitive with US products in
their home countrys product higher than the terms of quality.
younger purchasing officers. Japan outranked the USA in electrical
Krishnakumar (1974) attempted to examine equipment and Germany was rated the
the influence of country of origin on the highest in mechanical products.
[ 152 ]
Khalid I. Al-Sulaiti and No significant differences existed among response rate of 86.6 per cent. Respondents
Michael J. Baker the males and females perception of were asked to show their degree of agreement
Country of origin effects: a foreign products. with each statement on a five-point scale
literature review Perception of imports was more favourable ranging from strongly disagree to strongly
Marketing Intelligence & as the educational level increased (e.g., agree. Again the findings of the study sup-
Planning ported the hypothesis that knowledge of
respondents with a graduate degree were
16/3 [1998] 150199
more in favour of foreign products than country of origin affected consumer attitudes
those with high-school education). toward products.
Yaprak (1978) investigated purchase inten-
By using the semantic differential method,
tions among US and Turkish business
Lillis and Narayana (1974) compared US and
executives for specific brands made in
Japanese consumers perceptions toward
Germany, Japan and Italy. The major
aggregate image of products with made in
findings of the study were that both general
labels from five different countries: Britain,
country and product attributes, and specific
France, Germany, Japan, and USA. The product attributes were statistically signifi-
authors used a seven-point scale valued from cant in affecting purchase intentions (p. xii).
1 to 7 (see also Nagashima, 1970). The study Chasin and Jaffe (1979) examined American
consisted of random samples of 100 residents industrial buyers perceptions towards the
each from Moscow, Idaho, and Fukushima,
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quality of the goods made in Eastern


Japan. According to Lillis and Narayana European countries (e.g., Czechoslovakia,
(1974), none of the subjects in either sample Hungary, Poland, Rumania, and the USSR).
were students. The findings of their study Personal interviews were conducted and
indicated that there existed significant differ- completed with more than 100 companies.
ences regarding various products attributes. Less than one-third (30 per cent) of the compa-
Furthermore, these differences produced nies had had any form of business dealings
significant differences in subjects perception over the past ten years with one or more of
of foreign and national products. these countries. Industrial buyers were asked
Green and Langeard (1975) compared to profile the USA through a series of ten
French and US consumers in terms of performance attributes: five attributes relat-
consumer habits and innovative character- ing to product (quality, workmanship, style,
istics. The American sample consisted of 193 dependability, advanced technology), and five
randomly chosen women from the cities of to marketing values (credit/terms, value for
Dallas and San Antonio, Texas. Self- the money, on-time delivery, reputation,
administered mail questionnaires were used maintenance/service). According to Chasin
to gather the needed data in the USA. On the and Jaffe (1979) a total of 82 questionnaires
other hand, the French sample consisted of were found useful in part, 68 of which were
226 women from Aix-en-Provence, and the acceptable for complete response. Results of
questionnaires were personally delivered and the questionnaires indicated that industrial
collected by a research assistant[4]. Green buyers generally felt that the quality of the
and Langeard (1975) employed stratified sam- goods manufactured in the five Eastern Euro-
pling in the selection of the French sample to pean countries was inferior to the quality of
provide basic comparability with the US goods manufactured in the West. Therefore,
sample. The results of their study showed Chasin and Jaffes (1979) results supported
behavioural differences between the two the hypothesis of a country of origin effect.
groups even though France and the USA are Niffenegger et al. (1980) investigated the
similar in many economic respects. product images of British goods among a
Darling and Kraft (1977) researched the sample of French and British retail
impact of the made in label on Finnish managers in terms of price and value, adver-
consumers attitudes towards the products of tising and reputation, service and engineer-
various selected countries; Sweden, West ing, design and style, and consumer profile.
Germany, UK, France, USA, Japan and Niffenegger et al. (1980), used the product
Russia. Three-quarters of the respondents categories of automobiles, electrical
were managers and employees randomly appliances, textiles, cosmetics, food and
chosen from banks, and retail, wholesale, and pharmaceutical products. A self-
manufacturing firms, while the remaining administered questionnaire was developed
quarter of the respondents consisted of ran- for measuring the five aspects of product
domly chosen faculty personnel, students and image, using a previous international image
staff of different universities in Helsinki, study of Japanese businessmen as a general
Finland. A self-administered questionnaire basis (see, for example, Nagashima, 1977).
was hand-delivered to potential respondents The personal drop-off and pick-up method
(p. 521). Of 350 questionnaires distributed, 303 of data collection was used. Representatives
were usable for the study, with a usable called on each store manager, briefly
[ 153 ]
Khalid I. Al-Sulaiti and explained the main purpose of the study and products to be generally of higher quality
Michael J. Baker left a copy of the questionnaire. According to than products made in Japan. Besides, the
Country of origin effects: a the authors this method gave managers the products made in USA were perceived by
literature review opportunity to complete their questionnaires the American consumers as more reliable
Marketing Intelligence & at a convenient time. Of 117 questionnaires and of better workmanship than products
Planning
distributed, 92 were returned complete for an made in Japan. Moreover, both Japanese
16/3 [1998] 150199
overall return rate of 79 per cent. Niffenegger, and American products were perceived by the
et al.s (1980) study indicated the following American consumers to be widely advertised
results: and mass produced.
British products were seen to be cheaper On the other hand, Japanese consumers
than products made in the USA and perceived products made in Japan as
France. highly recognised. They considered Japanese
British products were seen as more techni- products to be of a higher quality than the US-
cally advanced than products made in made products. However, Japanese
France. consumers perceived the products made in
Products made in USA were seen as Japan as less prestigious, less popular and
widely advertised compared to those made less widely distributed than products made
in France. in US.
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French brand names were found to be hard In 1984, Erickson, et al. (1984) analysed the
to recognise. country of origin effects on the evaluation of
American products were seen as techni- automobile brands. Data were collected from
cally advanced in nature, produced by mass 96 MBA students at the University of Wash-
production methods. ington. Subjects were asked about their
Respondents rated the UK first in electrical beliefs and attitudes towards ten automobile
appliances, textiles, food and pharmaceuti- models (e.g. four US, two German and four
cal products, second in automobiles and Japanese models). Semantic differential
last in cosmetic products, while France scales were used for all rating questions used
ranked first in automobiles and cosmetics, in the questionnaire. Respondents were also
second in textiles and food and last in asked to rate their familiarity with each auto,
electrical appliances and pharmaceutical after which they provided an overall rating
products. on a five-point semantic scale.
Products made in USA failed to be the The empirical results indicated that
first choice for the UK consumers in all of country of origin affects beliefs but not
the product classes examined. Accordingly, attitudes. The authors argued that the study
it ranked second in electrical appliances, demonstrated that image variables also affect
cosmetics and pharmaceutical products beliefs through inferences made by
and last in automobiles, textiles and food. consumers: It also indicated that the effect of
In terms of consumer profile, products image variables on attitude was not direct;
made in USA were more appealing to the any influence they have appeared to be a
younger market while products made in secondary one acting through beliefs (Erick-
France were more favourable to the son, et al., 1984).
feminine market, and British products Morello (1984) did a comparative research
were more appealing to the older group. on the image of domestic and foreign
products. The purpose of his study was to
In an extension of his earlier study, Narayana
determine what the relationship is between
(1981) examined the aggregate image of
the image of a country and the image of the
American and Japanese products. The
products made in that country. Seven coun-
aggregate image for any particular countrys
tries were used in the study, namely:
product refers to the entire connotive field
1 Belgium.
associated with that countrys product offer-
2 France.
ings, as perceived by consumers (p. 32).
3 Holland.
Narayana (1981) employed the semantic
4 Italy.
differential format used by Nagashima in the
5 Spain.
1970 study. The same 20 criteria were
6 USA.
measured on seven-point scales. A random
7 USSR.
sample of 100 residents of Fukushima, Japan,
8 West Germany.
and 100 residents of Moscow, Idaho, were
selected for this study. However, the aim of Morello (1984) asked a Dutch group of 29
Narayanas (1981) study was to find differ- students and an Italian group of 37 students
ences between US and Japanese products. to rate the products from the eight selected
The findings of the study indicated that US countries using 12 sets of bipolar adjectives.
consumers perceived their countrys home The results indicated a significant
[ 154 ]
Khalid I. Al-Sulaiti and relationship between these two images and Heslop and Wall (1985) examined the differ-
Michael J. Baker the research concluded that a country of ences between males and females on the basis
Country of origin effects: a origin effect does exist and may affect con- of country of origin product image. A total of
literature review
sumer buying behaviour. 635 Canadian men and women were asked
Marketing Intelligence & Johansson et al. (1985) developed a multi- their opinions about products from 13
Planning
16/3 [1998] 150199
cue method for examining the impact of coun- different countries. They found that products
try of origin on product evaluation. The prod- made in Canada were ranked the highest by
uct class used was automobiles with ten car both males and females except for womens
models made in three different countries shoes, where Canada came second after Italy.
namely, Japan, US and Germany and 13 It was also noticed that males preferred
selected attributes (price, handling, horse- Italian clothing over the Canadian in terms of
power, acceleration, gas mileage, safety, quality, while Romanian males clothing was
driving comfort passenger comfort, rated lower than clothing from other
reliability, durability, workmanship, styling countries in the group. On the other hand,
and colour selection). Convenience samples clothing made in Far Eastern countries
of graduate students from the USA and Japan was rated the lowest by both males and
were used. The American sample consisted of females. Moreover, the results also indicated
70 graduate students at a West Coast univer- that females gave higher ratings in terms of
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sity and the Japanese sample of 82 students at quality to almost all countries than males
six universities. The questionnaire was pre- did, except for South Korea, Hong Kong and
sented to each sample in either a group ses- the Philippines.
sion or the classroom. Then the students were Becker (1986) measured US consumers
asked to consider each of the models on each perceptions of the price/quality relationship
attribute, and also to rate the importance of of American vs. Japanese products. Four
each attribute. The findings of the study indi- hundred individuals passing a card table set
cated that country of origin effects were rela- up in a shopping area of Boston were
tively minor when a multi-attribute approach requested to participate in a four-question
was used[5]. Johansson et al., (1985) survey. Of these, 20 collected questionnaires
concluded that country of origin effects may were incomplete for data analysis. The
be less significant than has generally been findings of the research indicated the
believed, and they may occur predominantly existence of the halo effect pattern bolster-
in relation to evaluation of specific attributes ing the pervasive image of products made in
rather than overall evaluations (Johansson Japan. According to Becker this was found
et al. 1985, p. 395). Thus, their findings even when the Japanese product was of lesser
supported the hypothesis that the country of price. In addition, nationalism was found to
origin is used as a surrogate variable to be a dominant factor in influencing the
evaluate a product when respondents have Americans purchasing behaviour when
limited knowledge about that product. price and quality were constant. They desired
In their study, Festervand et al. (1985) to purchase domestic products, but not at
investigated consumers perceptions of the expense of perceived inferior quality
imports and their attitudes towards (p. 111).
countries product quality. Using a self- Ofir and Lehmann (1986) measured the
administered questionnaire, a random sam- country-level images of ski resorts in three
ple of 1000 consumers were selected in ten European countries Switzerland, France
large south-eastern US cities. Only 259 usable and Austria. A survey was conducted in order
questionnaires were obtained for a response to gather data for the study: 269 skiers attend-
rate of 26 per cent. A four-point scale ranging ing a ski show in the city of New York were
from strongly disagree (1) to strongly agree asked to rate each of the three countries on a
(4) was used in the study for obtaining data on five-point scale for ten attributes, namely,
the respondents general attitude towards modern, exciting, entertaining, challenging,
different aspects of product quality for each friendly, honest, sophisticated, romantic,
country. The countries used were UK, France, picturesque, and expensive. The findings
Germany, Japan and the USA. The product revealed that the images of Switzerland,
categories used were mechanical, food, fash- Austria, and France were relatively homoge-
ion merchandise, electronic equipment, and neous with Switzerland and considered
leisure goods. Respondents were asked to rate slightly more positively than France (Ofir
the given countries in terms of product qual- and Lehmann, 1986). Thus, American skiers,
ity. Minor differences in attitude were found according to the findings, could not
across countries and American consumers distinguish between resorts in European
perceptions of the countries products were countries, demonstrating a low level of
mixed across the different product categories. familiarity with the product.
[ 155 ]
Khalid I. Al-Sulaiti and Papadopoulos et al. (1987) examined con- different product and marketing mix images.
Michael J. Baker sumers perceptions of foreign consumer At the same time, the study revealed no causal
Country of origin effects: a goods. Subjects from Canada, UK and France relationship between this image dimension
literature review were asked to assess products from the US, and actual market behaviour.
Marketing Intelligence & Japan, Sweden, Canada and their own Ettenson, et al. (1988) presented conjoint
Planning analysis as an alternative method for
countrys products. Respondents were chosen
16/3 [1998] 150199
through systematic cluster or quota samples. examining the effect of country of origin in
A random sample of 250 to 300 respondents relation to a made in the USA campaign.
were collected from each country. The The products used were a ladies blouse and
authors used the drop-off/pick-up method for mens dress shirt. Attributes used were style
their study. According to Papadopoulos et (for blouse) cut (for shirt), quality, fibre
al. (1987), this method gave high response content, price, and brand. Additionally, the
rates, averaging about 75 per cent at compara- country of origin was manipulated in a
tive low cost. A structured, self-administered conjoint study which assessed consumer
interview schedule was used in order to stan- decision making before and after the intro-
dardise questions across countries. Products duction of the made in the USA campaign.
were evaluated on the basis of performance A total convenience sample of 105 students at
(two scales), price (three scales), before and the University of Maryland was invited to
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after purchase product support (two scales), take part in the study and 55 students com-
social image (three scales), market availa- pleted both the pre-test and the post-test
bility (five scales), and behavioural compo- The results of the study demonstrated that
nent (two scales). The study revealed the contrary to previous findings, the effect of
following conclusions: country of origin was relatively small both
There is no question that a country of before and after the launching of that
origin effect does exist. campaign. From these findings it can be con-
Both consumers and industrial buyers are cluded that product cues (e.g., price and
affected by made in images. quality) may have a stronger effect on con-
Made in stereotype can be changed, at sumer product evaluations than country of
least in the long term. origin information. Furthermore, the
Price may affect foreign product authors suggested that retailers should be
perceptions. cautious in using patriotic themes in promo-
Foreign stereotypes may vary across prod- tion since their effectiveness has yet to be
uct categories on consumer types documented (Ettenson et al., 1988, p. 85).
(Papadopoulos et al., 1987, p. 9). Al-hammad (1988) investigated the Saudi
Arabian market for selected imported goods
Darling (1987) analysed the general attitude of (with specific reference to UK suppliers) at
Finnish consumers towards the products of both country and brand levels. The study
various countries (UK, France, Japan, USA examined Saudi Arabian economic and
and West Germany). Data were collected in cultural factors and the attitudes of the Saudi
1975, 1980, and 1985 from 1,113 consumers consumer and reseller to the product and its
living in three different cities in Finland. suppliers. The results showed that the
Several business companies were chosen, and majority of Saudi consumers considered
a random sampling of managers and employ- price to be the most important attribute in
ees from these companies were invited to the case of products necessitating higher
participate in this study. A random sample of expenditure, either by way of a single pay-
faculty, staff and students were asked to ment or frequent payments. In terms of the
participate in the study as well. consumer profile the results demonstrated
Darling used an identical form of question- that both age and income tended to have a
naire for the data collection for each year of positive correlation with the attributes of
the study including 31 Likert-type price and quality in the case of carpets and
statements: 13 of them dealt with different air-conditioners, and a negative correlation
product dimensions, 13 with marketing prac- with the attributes of quality and mainte-
tices, and five with the general importance of nance for cars and design of outerwear and
the products to the respondents. Respondents refrigerators. In the case of educational level,
then were asked about their attitudes regard- it was found that the higher the level of
ing products made in the above-mentioned education, the more people are in favour of
countries, marketing practices, and the impor- imported products than those with low level
tance of a products country of origin. The of education.
results of the study indicated significant dif- On the other hand, the Saudi resellers
ferences in consumers attitudes in the three considered, first, price and, second, quality to
cities where data were collected. In addition, be the most important factor when selecting
the made in label also showed significantly suppliers. The results also indicated that the
[ 156 ]
Khalid I. Al-Sulaiti and Saudi resellers opinion about the British with other product information. Respondents
Michael J. Baker suppliers was less favourable with regard to were 128 college students enrolled in an intro-
Country of origin effects: a all market mix factors except quality (Al- ductory business course. They were divided
literature review hammad, 1988). into two groups. The first group was asked to
Marketing Intelligence & Han and Terpstra (1988) designed a consider the given information, then evaluate
Planning its clarity. The second group was asked to
research to determine the effects of the
16/3 [1998] 150199
country of origin and brand name cues on form an impression of the material provided
consumer evaluations of uninational to them. The countries used were West Ger-
products (products that involve a single many, Mexico, Japan and South Korea. The
country of origin, that is, purely domestic and products used were a personal computer, and
purely foreign products) and binational prod- a video cassette recorder. The results of the
ucts (products that involve two countries of study indicated that country of origin itself
origin, i.e. products which may be foreign- influenced product evaluations regardless of
made but carry a domestic brand name), and whether the additional product attribute
to estimate the perceived values of such cues. information was known before or after and
Using face-to-face interviews with a regional regardless of whether subjects were asked to
quota sample of 150 American household understand the provided product information
residents, subjects were asked to rate four or to form an impression of the product.
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different brands of colour television and Khachaturian and Morganosky (1990)


subcompact automobiles from four countries: investigated consumers quality perceptions
Germany, Japan, South Korea, and the USA. of apparel from the USA, South Korea, China,
To check for the validity of the interviews, the Italy and Costa Rica. The influence of three
authors employed a random selection of independent variables (country of origin,
respondents by telephone. All respondents store type, and brand name type) was mea-
selected by telephone confirmed their sured in relationship to the dependent vari-
participation in the interviews. The results able, perceived quality. The respondents for
demonstrated that source country and brand the study were households in the continental
name did affect consumers perceptions of USA with telephone numbers as listed in the
product quality. On the other hand, sourcing American telephone and telegraph tape of
country stimuli were found to have more working area codes and prefixes. Using a
powerful effects than brand name on con- systematic random sampling, 199 working
sumer evaluations of binational products. telephone numbers were selected, 153 of
Han (1989) examined the role of country which were completely elicited resulting in a
image in consumer evaluations of TV sets and 77 per cent response rate.
automobiles. Two brands were chosen for Consumers were asked their perception of
each product type. Countries tested were the apparel quality sold in three different store
USA, Japan and South Korea. Using a system- types consisting of department stores, dis-
atic sample, 116 respondents were interviewed count stores, and off-price stores. The authors
by telephone. They were asked for their included off-price stores because they are a
images of products from the three countries. fairly new form of retail institutional type
The images were measured on a 7-point and are achieving growing consumer accep-
semantic differential scale anchored by tance[6]. The findings of the study are sum-
good and bad (Han, 1989). The respon- marised as follows:
dents were also asked for their attitudes Clothing made in USA was perceived as
towards each brand using the same scale. having the highest quality. Italy was per-
However, the results suggested that country ceived as second highest followed by China,
image can be used by consumers in product Korea and Costa Rica.
Given the amount of prestige associated
evaluations in either or both of two directions:
with traditional department stores, as well
1 as a halo construct (country image used to
as the premise of the price/quality relation-
consider products that consumers know
ship, it is not surprising that department
little about);
stores received the highest quality ratings,
2 or as a summary construct (as consumers
followed by off-price stores.
become familiar with a countrys
Results from the paired t-test revealed that
products, country image may become a
a significant decline in quality perceptions
construct that summarises consumers
occurred for apparel products sold in
beliefs toward product attributes and
department stores when associated with
directly affects their attitudes toward the
being made in Korea, China, and Costa
brand).
Rica, whereas quality ratings for discount
Hong and Wyer (1989) investigated the stores were significantly upgraded when
cognitive process instigated when country of associated with US-made and Italian-made
origin information is given in conjunction apparel.
[ 157 ]
Khalid I. Al-Sulaiti and Perceived quality of the off-price store was 2 The effect of country image on consumers
Michael J. Baker significantly higher when selling US-made intentions to purchase brands from
Country of origin effects: a apparel, and lower when associated with various countries.
literature review Korea, China and Costa Rica. There was no 3 The effect of country image on consumers
Marketing Intelligence & significant change in perceived quality of perceptions of specific product attributes.
Planning
off-price stores when selling Italian 4 The effect of country image for a product
16/3 [1998] 150199
apparel. category on different categories from the
The results also indicated that when a store same countries.
type was associated with different
Country image was measured with reference
countries of origin, consumers quality
to five items. They were technical advance-
rating for the store type changed depending
ment, prestige value, workmanship, price,
on the particular country with which it was
and serviceability. Colour television sets and
associated. The authors believed that the
compact automobiles were examined in the
amount of resulting change was related to
study because their various domestic and
the level of industrial development of the
foreign brands are relatively well known to
associated country of origin, yet China was
consumers in the USA where this study was
rated more positively than Korea, even
conducted. Two brands were selected from
though Korea is considered more industri-
each of the countries for each product type.
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alised than China.


The selected television brands were General
In the case of branded apparel, significant
Electric and RCA for US brands, Panasonic
declines in perceived quality occurred
and Toshiba for Japanese brands, and
when name brands were associated with all
Samsung and Goldstar from Korean brands.
four foreign countries of origin. A name
The car brands were Ford Escort and Buick
brands association with US-made apparel
Skyhawk for the US, Honda Accord and
neither significantly increased nor
Toyota Celica for Japan, and Hyundai Excel
decreased the quality rating of the name
for Korea[8]. Brand attitudes were assessed
brand. Perceived quality of name brands
with two measures cognitive and affective.
was hurt most by association with Costa
Han (1990) gathered his data from a system-
Rican apparel.
atic sample of 116 American residents living
Store brand quality was perceived as being
in a Midwestern city. They were selected
significantly lowered when associated with
randomly and interviewed by telephone. The
apparel from Korea, China, and Costa Rica.
response rate was 64.8 per cent (116 out of 179
Association with US-made apparel
calls were obtained successfully). Finally,
improved quality ratings for store brands,
subjects were asked for their intentions to
while Italy had no significant influence on
purchase each brand.
store brand perceptions. On the other hand,
According to Han (1990) the halo hypothesis
the quality rating of designer brands was
suggested that consumers may consider not
somehow improved by association with US-
buying an unfamiliar foreign brand simply
made apparel. Quality perception of
because they may make unfavourable
designer brands was lowered when made in
inferences about the quality of the brand
Korea, China, and Costa Rica. But
from their lack of familiarity with products
association with Italian apparel neither
from the country. The findings of the study
significantly increased nor decreased the
also demonstrated that consumers willing-
quality rating of the designer brand.
ness to purchase a product was related to the
Khachaturian and Morganosky (1990) economic, political, and cultural characteris-
concluded that associating a brand with less- tics of the products country of origin.
industrialised countries could potentially Additionally, country of origin images were
lower the quality image of that brand type. affected by the consumers perception of
Moreover, the less-industrialised the similarity between his or her own countrys
country of origin, the more the potential and the origin countrys political and cultural
decline in the quality image. climate and beliefs systems.
Han (1990) argued that country image[7] Ghadir (1990) investigated Jordanian
may be conceptualised as a consumer halo. consumers perceptions of quality, price and
Therefore, Han (1990) designed a study to risk of foreign versus domestic product. The
address the role of country of origin image in countries used in the study were USA, UK,
consumer choice behaviour across the USA, Japan, Russia, Romania, Taiwan, Egypt and
Japan and South Korea. The study assessed Jordan. The product class employed in the
the following: study was major household electrical and gas
1 The effect of country image on consumers appliances. The data were obtained through
attitudes towards brands made in differ- structured direct questionnaires from a strat-
ent countries. ified random sample of 1,000 households with
[ 158 ]
Khalid I. Al-Sulaiti and a 63.9 per cent usable response. The results that the relative utility of information cues
Michael J. Baker revealed the following: changed in choice situations with different
Country of origin effects: a The country of origin had a significant cues present. This was clearly noticed espe-
literature review relationship with the consumers cially when more cues were involved in
Marketing Intelligence & perception of the quality, price and risk of choice situations. Extrinsic cues (e.g., brand,
Planning warranty and price) tended to have greater
the product.
16/3 [1998] 150199
Products made in developed countries relative utility than when fewer cues were
were evaluated as higher in quality and present. Moreover, cue types, while affecting
price, but lower in risk than the products choice processes, appeared to be product
made in less developed countries. specific (p. 124).
The home country bias seemed to be more Roth and Romeo (1992) examined country of
relevant in comparing the domestic product origin in terms of the fit between countries
to that of other countries of a relatively and product categories. They suggested a
similar stage of development. Therefore, framework which matches the importance of
the products made in Jordan were product category dimensions (innovative-
evaluated as being higher in quality and ness, design, prestige, and workmanship)
price, but lower in risk than the products with the perceived image of the country of
made in less developed countries. They origin along the same dimensions. Therefore,
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were also evaluated to be lower in quality a study was designed to determine which
and price but higher in risk than developed dimensions were most frequently associated
countries products. with a countrys image and how important
A consistent negative correlation between these characteristics were to different
quality and risk was found for the products product categories. Data were collected from
of the entire set of countries. For example, 99 graduate students in Ireland, 130 in
the higher the consumers perception of Mexico, and 139 in the USA. Country image
the products of the various countries, the was measured along the four dimensions
lower their perception of the risk mentioned above. For each dimension, sub-
associated with these products (1990, p. v). jects evaluated ten countries. The countries
The results indicated that a low percentage surveyed were UK, Germany, Hungary, Ire-
of the consumers connected the purchase of land, Japan, South Korea, Mexico, Spain, and
the domestic product with their patriotic the USA. The product categories evaluated
duty. were beer, automobiles, leather shoes, crystal,
Among sociodemographic variables, sex bicycles, and watches. Using 7-point impor-
was found to be the least important factor tance scales (1= not innovative; 7= very inno-
in discriminating among the consumers vative), subjects were asked to show the
and age was found to be the most extent to which each of the four image dimen-
important. sions was an important criterion for evaluat-
ing each product category. Finally, subjects
Ghadir (1990) suggested that domestic pro- were asked how willing they would be to
ducers should develop separate marketing purchase the product categories from each of
strategies for the imported products of devel- the ten countries they evaluated. The results
oped and less developed countries, rather revealed that product-country match may be
than just dealing with the imported product an indicator of willingness to buy imported
under the general term foreign (Ghadir, products. Roth and Romeo (1992) said, for
1990, p. v). example, if a country is perceived as having a
Using a computer- administered conjoint positive image, and this image is important to
analysis, Liefeld et al. (1993) studied the a product category, consumers will be more
effects on relative cue utility of the willing to buy the product from that country.
interaction of cues in product choice The study showed that US, Irish, and
situations in which both the number and Mexican consumers were willing to buy a car
types of both extrinsic and intrinsic informa- or watch from Japan, Germany, and the USA
tion cues were varied for two types of prod- since these countries were evaluated highly
ucts, namely, telephone and clothing (mens on dimensions that were also important to
shirts and womens blouses). In mall inter- these product categories. On the other hand,
cepts 326 adult shoppers were asked to unfavourable product country match may
participate in the study. They were randomly explain why consumers are unwilling to buy
assigned to one of three designs for certain products from certain countries.
telephones, shirts (for men only) and blouses Respondents were less likely to buy Mexican
(for women only) so that the shoppers were and Hungarian autos and watches as these
exposed to only one treatment condition per countries had poor evaluations on dimen-
product, e.g., between subject design (Liefeld, sions that were important for car and watch
et al., 1993). The results of the study revealed characteristics (Roth and Romeo 1992,
[ 159 ]
Khalid I. Al-Sulaiti and p. 493). The results also indicated no differ- by the USA and Taiwan. In addition, no sig-
Michael J. Baker ences in familiarity with beer and bicycles nificant main effect from country of assembly
Country of origin effects: a across the US, Mexican, and Irish respon- nor any interaction effect was noted since
literature review dents. But significant differences were found design quality represented a different dimen-
Marketing Intelligence & for the other four product categories. More- sion from product quality (Chao, 1993).
Planning over, results on demographic differences On the other hand, results for the product
16/3 [1998] 150199
between groups demonstrated very homoge- quality dependent variable indicated the
neous samples, and revealed no changes in following:
the prediction of willingness to buy. The main effect with regard to price
Roth and Romeo (1992) suggested that showed that the product quality perception
managers should use product country match was higher at the higher price. The lower
information in order to assess consumers the price, the lower the product quality
purchase intentions, and assist them in perception.
managing their products country of origin. The country of design (COD)[9] main effect
Specifically, some differences in product showed that quality was evaluated as high-
country matches and willingness were found est for Japan, followed by Taiwan and the
across the three groups of respondents. USA.
Chao (1993) attempted to address the multi- The COD main effect indicated that the
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dimensional nature of the product/country product quality rating for a television


concept. Specifically, the central focus of his assembled in Taiwan was evaluated the
research was to examine how US consumers highest, followed by Thailand and Mexico.
would evaluate hybrid products with a multi- The price by COD interaction effect for a
ple-country designation in terms of product television set designed in Japan indicated
design and country of assembly. The product no price differential was needed to impart a
selected for the study was a television set higher quality image. Therefore, the TV set
produced by Tera Electronics, Inc. of Taiwan. was evaluated the highest for both the low
Two levels of price ($269.95 and $369.95), three and the high prices, while for a TV set
levels of Assembled in location (Taiwan, designed in Taiwan a higher price was
Thailand and Mexico), and three levels of necessary to boost the quality ratings
Designed in location (US, Japan and (Chao, 1993).
Taiwan) were specified in the study. A system-
atic sample of 120 American residents living Chao (1993) suggested that when seeking
in the Midwest was selected from a local potentially new overseas co-operative
telephone directory for this study. They were ventures, manufacturers should pay more
given a copy of the advertisement to examine attention to potential consumer reactions to
at their own pace. They were asked to rate the the products of such ventures in addition to
product in two separate categories: design considerations based purely on costs and
quality and product quality. After respon- technology.
dents had completed the questionnaire, they Kochunny et al. (1993) developed a schema-
were asked to evaluate the quality of elec- based knowledge[10] representation frame-
tronic products made in six different work in order to test the effects of country of
countries (Mexico, Singapore, USA, Germany, origin on product evaluations. The countries
Taiwan and Thailand), on four different used were the USA, Japan and South Korea.
dimensions: workmanship, reliability, dura- The product used was the automobile with
bility, quality. five product evaluation dimensions labelled
The results showed that consumers rated as quality, performance, dealer service, com-
electronic products assembled in Taiwan to fort and variety/choice. Six hundred mem-
have the highest quality followed by Thailand bers of consumer research panels received
and Mexico. Respondents were also asked to information that was either consistent or
evaluate the design quality of electronic inconsistent with their expectations concern-
products designed in five different countries ing automobiles made in America and
(Japan, USA, Taiwan, Germany and South Japan (response rate varied from 71 per cent
Korea) on three different dimensions: innova- to 84 per cent and the total number of usable
tiveness, exclusiveness and stylishness. The responses was 393). They also received factual
results indicated that the design quality per- information about South Korean cars. A price
ception was rated the highest for Japan, level of under $10,000 was provided as critical
followed by the USA and Taiwan. The differ- information to all groups to control
ences were all statistically significant. variability due to the price factor. In addition,
Results for the design quality dependent the country of origin was provided to all
variable indicated that the design for quality respondents. Respondents were instructed to
perception for a television from Taiwan, but read the description and then answer the
designed in Japan, rated the highest, followed questionnaire. Evaluation (recall) measures
[ 160 ]
Khalid I. Al-Sulaiti and were taken immediately after the presenta- 1 Toyota;
Michael J. Baker tion of information about the automobiles 2 Ford; and
Country of origin effects: a and again three months later; all respondents 3 Lada.
literature review received the same questionnaire without any
Marketing Intelligence & Japan, Russia, and the home country (Canada
descriptive scenarios.
Planning and Belgium) were selected as countries of
Kochunny et al. (1993), demonstrated that
16/3 [1998] 150199 origin. The price levels in Canada were $7,000
the results of this study were consistent with
(low), $10,000 (medium) and $13,000 (high). In
those of earlier findings in that American
Belgium they were BEF250,000 (low),
automobiles were perceived less favourably
BEF350,000 (medium) and BEF450,000 (high).
than automobiles made in Japan in the
Service quality was either poor, average or
category tested. Besides, consumers
good. Using a modified area sampling tech-
possessed a country of origin schema and
nique a total of 910 households from
those country of origin schemas affected
Sherbrooke, Canada, and Mons, Belgium,
consumers retention of information about
were visited; 595 agreed to participate in the
automobiles, as well as their judgements. The
results also indicated that there were no study. A total of 395 completed questionnaires
significant differences among the study was collected. Of these, 376 were usable for
groups on the basis of age, education, house- analysis, ending up with 40.1 per cent
response rate.
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hold income, marital status, and gender


(p. 5). The results indicated that the effect of price
Chao and Rajendran (1993) examined how on perceptions of purchase value was not
ownership of a variety of household significant. In addition, the brand name was a
consumer products may have an impact on more important informational cue than
interpersonal perceptions. Of particular made in for Belgian consumers, but not for
interest were country of origin effects which Canadian consumers. Ahmed et al. (1993)
could be assessed via consumer profiles. The suggested that global marketers should carry
study employed a 2 2 3 factorial experi- out large-scale studies using samples from
mental design. Consumer profiles were different countries where a global product is
constructed based on two levels of foreign marketed in order to produce relevant infor-
product (Japan and Germany) two levels of mation concerning whether or not it makes
consumer description (college professor and sense to manufacture products in poor image
plant foreman) and three levels of foreign countries, just to make use of low-cost labour,
product ownership (high, medium and low). and what type of modification to global
A total of 14 products with different brand marketing strategies may be needed from one
names were selected for the study. A total of consuming country to another.
499 students were randomly chosen for the 12 In 1994, Ahmed and his colleagues investi-
treatment conditions. Each student received gated the effects of country of origin on
one of the consumer profiles and a copy of the purchasing managers product perceptions in
questionnaires. They were asked to indicate terms of perceived quality, purchase value,
their perceptions of nationality of these and product profiles: country of design,
brands: USA, Japan, Germany or other. country of assembly, brand name, price, and
The results indicated that attitudes of stu- warranty. They used the product category of
dents towards owning imported products computer system, fax machine, and ball-point
have become a little more favourable, partic- pens. Canada and Mexico were selected as
ularly for those products which were owned country of design and assembly along with a
by the professors. On the other hand, third country (Japan for the computer system
students perceived foremen to remain loyal to and fax machine, Germany for the ball-point
domestic products. Moreover, students attrib- pens). Additionally, 13 countries were also
uted a favourable image to those who owned added in the study as locations for the concep-
Japanese rather than German-made tion, design and engineering (country of
products. The results also revealed a recent design); and manufacturing and assembly
surge in popularity of products made in (country of assembly) of industrial products
Japan in the USA, particularly for the 14 using a 9-point scale (mediocre/excellent).
products investigated in this study. The study consisted of a sample of 173
Ahmed and dAstous (1993) investigated the purchasing managers representing 14 per
effects of three countries of origin, three cent of the Quebec division of the Canadian
brand names and three levels of price and Association of Purchasing Managers
service on consumers perceptions of the (CAPM).
purchase value of an automobile in two The results indicated that developed
consuming countries, namely Canada and countries were evaluated better in general
Belgium. Three brands of automobile were than newly industrialising countries (e.g.,
chosen for study, namely: Mexico) as locations for the design and
[ 161 ]
Khalid I. Al-Sulaiti and assembly of industrial products. However, Levin et al. (1993) investigated American
Michael J. Baker newly industrialising countries were better consumers attitude towards Buy America
Country of origin effects: a evaluated as locations for the assembly of First and preferences for American and
literature review industrial products than as countries of Japanese cars. Seventy-one undergraduate
Marketing Intelligence & design. For instance, South Korea was evalu- students were asked to rank-order their like-
Planning ated almost as well as France and Italy as a lihood of purchasing an automobile from
16/3 [1998] 150199
country of assembly. Respondents also rated each of six companies described by the coun-
Korea higher than Belgium as a country of try of origin (the USA and Japan) and the
assembly and almost as well as a country of percentage of American and Japanese work-
design. In addition, the country of design was ers. The subjects showed a strong preference
a more important indicator of product quality for cars made by American companies over
and purchase value than the country of cars made by Japanese companies and an
assembly. However, its importance was even stronger preference for companies
related to product complexity (e.g., for which employ mostly American workers. The
purchase managers, the more complex the results also indicated that attitudes towards
product technology, the greater the perceived Buy America First appeared to represent a
importance of design skills). form of nationalism separate from percep-
In terms of product profiles, the results tions of quality and seemed to be an overrid-
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indicated that for both perceived quality and ing factor in preference rankings, especially
purchase value, country of design explained a when the composition of the workforce was
larger proportion of common variance than mainly American. Thus one unique cue
country of assembly. Although brand name affecting pre-purchase intentions may be
had a statistically significant impact on the nationalistic feelings which, as we have seen,
perceived quality and purchase value of the may dominate other perceptions based on
computer system and fax machine, its country of origin (p. 628).
explanatory power was much smaller than Similar findings were revealed by Olsen et
that on country of origin cues (p. 329). al. (1993). Their study explored the possible
The study also showed that purchase influences on US consumers willingness to
managers were more influenced by price than choose American-made over imported prod-
by country of design or country of assembly, ucts. Results revealed prejudices against
especially when considering the purchase imported products and suggested ways to
value of ball-point pens. market the Buy American theme (p. 307).
Ahmed et al. (1995) designed a study to Akaah and Yaprak (1993) examined (via
understand how households and organisa- conjoint methodology) the influence of
tional buyers product perceptions are country of origin on product evaluation.
affected by knowledge of the country of Additionally, the authors examined the mod-
design and country of assembly when other erating influence of product familiarity and
information such as brand name, price, and respondents nationality[11]. A total sample of
warranty is also available. The organ- 225 students from three different nations
isational data were collected via the collabo- were selected for this study (70 from Ghana,
ration of the Canadian Association of Pur- 54 from Turkey and 101 from the USA. The
chasing Managers (CAPM) in Canada (for, the main objective of the study was respondents
purchasing managers data collection method perception of automobile quality which were
see Ahmed et al., 1994). For, the household made in USA, Japan and West Germany.
data, 561 houses were visited, from which 190 Seven automobile attributes were selected for
questionnaires were usable for the study the study (workmanship, country of origin,
resulting in 33.8 per cent response rate. The reliability, driving comfort, styling, and fuel
results indicated that the country of design economy).
was a more important cue in organisational The findings indicated that the influence of
purchase decisions than the country of country of origin was relatively weak when it
assembly and brand name. While household was evaluated as one cue in an array of prod-
buyers gave equal importance to both uct cues. Akaah and Yaprak (1993) concluded
country of design and country of assembly, that neither product familiarity nor respon-
they perceived the brand name as a more dent nationality had a moderating influence
important cue than the country of origin. On on country of origin effects. For example,
the other hand, household buyers perceived American respondents perceived made in
warranty as more important than country of Japan and made in West Germany auto-
origin and brand name. The results also mobiles to be higher in quality than made in
showed that newly industrialising countries USA automobiles.
were evaluated poorly as countries of assem- Okechuku (1994) also used conjoint analysis
bly and even more poorly as countries of to investigate the relative importance of the
design. country of origin of a product to consumers
[ 162 ]
Khalid I. Al-Sulaiti and in the USA, Canada, Germany, and The consumers were not familiar with Canadian-
Michael J. Baker Netherlands. Two product categories, televi- made brands; therefore, they evaluated them
Country of origin effects: a sion sets and car radio/cassette players, were third after the USA and Japan. Finally the
literature review used as items of study. The conjoint profiles of results indicated that newly industrialising
Marketing Intelligence & television sets were based on the following nations such as South Korea and Mexico were
Planning attributes: evaluated unfavourably in terms of source
16/3 [1998] 150199
1 brand name; countries.
2 price; Lin and Sternquist (1994) attempted to
3 picture quality; investigate the effects of information cues,
4 warranty. country of origin and store prestige on
Taiwanese consumers perception of quality
The conjoint profiles of car radio were based
and estimation of retail price. The product
on:
used was womens sweaters. Lin and Stern-
1 brand name;
2 price; quist used a 4 3 factorial experimental
3 receiver quality; design in the study. The countries were the
4 cassette player quality. USA, Italy and Taiwan, and three groups of
stores of varying prestige were used in the
Additionally, country of origin was added as a study, namely:
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fifth attribute for both television sets and car Shoppers in high-prestige department
radios. The source countries selected for stores.
television sets were Japan, the USA, The Shoppers in moderate-prestige department
Netherlands, and South Korea, while Ger- stores.
many, the USA, Canada, and Mexico were General shoppers.
selected for car radios. The brands selected
for the television set conjoint profile were The sample of the study consisted of 265 shop-
Sony, Zenith, Philips and Samsung; and for pers who were intercepted in the main shop-
car radio/cassette player profiles Blaupunkt, ping streets in eastern Taipei. They were
Kenwood, Kraco and Pioneer were selected. asked to assign price and quality to the
The price levels selected for each product womans sweater. The findings indicated that
category for the conjoint design represented a the country of origin was the only cue which
low, an average, and a high price. For picture significantly influenced the Taiwanese con-
quality, receiver quality, cassette player qual- sumer perception of sweater quality. How-
ity and warranty, values were selected to ever, the country of origin did not influence
represent high and low performance related the consumers price estimates in this study.
to those attributes. Subjects were asked to Respondents evaluated the sweater labelled
rank the 16 product options in terms of their made in Japan the highest and that labelled
overall performance: an attitudinal rather made in Taiwan the lowest. Moreover, the
than a behavioural intention measure from cue of store prestige was not significantly
1 (most preferred) to 16 (least preferred). related to price estimates and quality evalua-
The results showed that for the product tions related to sweaters. The results also
categories, the country of origin was an indicated that neither country of origin nor
important attribute in preference evaluation store prestige was found to have an effect on
across the four countries. For the television price estimates. Thus, Lin and Sternquists
sets, it was significantly more important than (1994) findings supported the hypothesis of a
the brand name and price among Canadian country of origin effect.
and German respondents, and about as Using French brands, Leclerc et al. (1994)
important as the price among Dutch respon- reported three experimental studies to deter-
dents. On the other hand, for car radios, the mine the effects of foreign branding on prod-
country of origin was significantly more uct perception and evaluation. Products
important than the price and about as impor- tested in this study were products with
tant as the brand name among the respon- primarily utilitarian features, products with
dents in all the four countries. In addition, primarily hedonic features, and hybrids.
the results indicated that consumers pre- Experiment 1 demonstrated foreign branding
ferred domestically- made, yet not effects. Experiment 2 examined the joint
necessarily domestically-branded, products. impact of foreign branding and country of
But if domestically-made products are origin information. Finally, experiment 3
unfavourable or unacceptable, respondents investigated whether foreign branding effects
would choose products made in other occur only when consumers have little or no
developed countries. Unlike the findings of direct experience with a product. Here an
Akaah and Yaprak (1993), familiarity played actual product taste test was performed. The
an important role in consumers evaluations results of the three experiments indicated
of such products. For example, American foreign branding can be an effective means
[ 163 ]
Khalid I. Al-Sulaiti and of influencing consumers perceptions and consumers intention to buy. For instance, 18
Michael J. Baker attitudes (p. 269). per cent of the respondents showed a strong
Country of origin effects: a Experiment 1 indicated that the French preference to buy British and 48 per cent
literature review pronunciation of a brand name affected the showed a preference for a British car as
Marketing Intelligence & perceived hedonism of the products, attitudes against 52 per cent selecting one or other of
Planning towards the brand, and attitudes towards the Asian cars. Thus, ethnocentrism can be a
16/3 [1998] 150199
brand name as well. Experiment 2 indicated strong source of competitive advantage,
that foreign branding was a strong cue for especially when domestic products are equal
changing hedonic perceptions. In fact, coun- to imported products on a price-performance
try of origin information had no significant basis (Baker and Michie, 1995).
effects on consumers attitudes towards for- Tse et al. (1996) attempted to find out how
eign branding. For experiment 3, results the country of origin effect affects local
showed French brand names were an asset consumers propensity to buy a high-
especially for hedonic products and more involvement product (a colour TV) from four
effective than country of origin information countries: Hong Kong, Germany, Japan, and
(p. 269). South Korea. Results showed that country of
Thakor and Pacheco (1997) attempted to origin significantly affected consumers
replicate and extend the Leclerc et al. (1994) intention to purchase the product. For exam-
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findings using similar stimuli and 266 under- ple, Hong Kong consumers have a signifi-
graduate students from a Canadian univer- cantly higher probability of buying Germany-
sity. Their findings revealed the following: and Japan-made colour TV sets than those
The French brand name for a calculator made in Hong Kong and South Korea.
was perceived as more hedonic than the
English name.
The English brand name for a calculator Stereotyping
made in Quebec was favoured more than
the Italian name. Stereotyping has been found to be universal.
Females liked sunglasses with French Reierson (1966) was one of the first to conduct
branding significantly more than males country of origin bias research. Reierson
when country of origin was not indicated. (1966) investigated whether or not precon-
ceived notions consumers have about foreign
Baker and Michie (1995) examined British car products are really national stereotypes
drivers perceptions of, and attitudes towards, rather than opinions about specific products.
four makes of foreign cars: The results indicated a clear evidence of
1 Honda. stereotyping. Respondents rated products
2 Hyundai. made in USA the highest; therefore, the
3 Proton. study suggested, that while consumers have
4 Toyota. preconceived notions about foreign products,
Additionally, a British car (Rover) was added attitudes are really national stereotypes
to the study in order to establish the possible rather than opinions about specific products.
effects of ethnocentrism[12] on intention to Schooler (1965) was the first to examine
buy. A judgemental quota sample of 120 car country of origin bias as it affected specific
drivers were asked to determine which make product evaluation. Results showed that
of car they would prefer to purchase from an Guatemalan and Mexican products in each
exhibit that summarised the key features of case were rated higher than the products of
five similar models. A detailed description for Costa Rica and El Salvador.
each model was provided in the exhibit; how- Nagashima (1970) found that Japanese
ever, no reference was made to price or businessmen evaluated products made in
country of origin. Subjects were then told to Germany the highest followed by UK, USA,
indicate the three most important factors Japan and France. In his follow-up study,
controlling their choice and were then pro- Nagashima (1977) reported that images of
vided with a list of cars prices which ranged Japanese, West German and French products
from- 8,500 to 13,500. had improved and that of UK products had
The results of the study demonstrated that deteriorated. Thus, the findings of these
respondents preferred the most expensive studies suggested that, in addition to varying
cars (Toyota and Rover) but some of these among customers in different nations,
changed their decision when informed that national stereotypes change over time.
the prices of these two makes were 50 per cent Gaedeke (1973) extended the idea of
higher than an available alternative. The national stereotypes to cover products from
results also indicated that product country developing countries. He examined the
images and ethnocentrism had a significant opinion of US consumers towards the overall
impact (both positive and negative) on the quality of imported products made in
[ 164 ]
Khalid I. Al-Sulaiti and various developing countries and the USA. consumers as a result of their past experience
Michael J. Baker Likerts method of summated rating was with representative national products,
Country of origin effects: a employed in the study in order to develop a 5- learned stereotypes and reputations of
literature review point quality rating scale: very good5 points national products, and perhaps more general
Marketing Intelligence & to very poor1 point. Two hundred students images of traditions and customs of foreign
Planning were asked their opinions about the quality of people (Darling and Kraft, 1977, p. 520).
16/3 [1998] 150199
imported products in general, about classes Bannister and Saunders (1978) examined
of products imported in relatively large vol- attitudes of UK consumers towards domestic
ume from developing countries, and about products and the products of advanced
specific product items. The countries used in countries highly active in the UK market
this study were the USA, the Philippines, (e.g., France Italy, Japan, USA, USSR, and
Hong Kong, Argentina, Brazil, Taiwan, Mex- West Germany). The authors modified
ico, South Korea, India, Singapore, Turkey, Nagashimas (1970) semantic differential
and Indonesia. US products (e.g., food, elec- scales for use in their study (see Nagashima,
tronic items and textiles) were rated first in 1970). A sample totalling 224 from West
all product classes named, while products Yorkshire and Cheshire was chosen to
from developing countries were rated lower participate in the study. They were asked to
than the US products. Gaedeke (1973) con- rate these countries products in general on
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cluded that country of origin information did the basis of reliability, value for money,
not significantly affect opinions about the appearance, availability, and standard of
quality of branded products in general. workmanship. The results of the study
Etzel and Walker (1974) examined the level indicated that consumers did have stereo-
of congruence between national product typical views about different countries and
stereotypes and attitudes toward specific significant differences did exist between
types of products. Products tested were autos, these stereotypes. UK consumers had formed
cameras, and mechanical toys from three country images into three groups. Favourable
different countries, namely, Germany, Japan images attached to West Germany, UK, and
and the USA. A sample of 293 females were Japanese products; mediocre images to
selected for the study. The results revealed a products made in France, Italy and the
significant difference between consumers USA; and very poor images of products
perceptions of foreign national product made in Russia.
stereotypes and images of specific products White and Cundiff (1978) examined whether
from that country for all but one situation industrial buyers allow national stereotypes
(German products vs. German autos). to influence their evaluation of industrial
Abdul-Malek (1975) examined Canadian products and their perceptions of product
business managers attitudes towards trade quality based on country of origin. The
contracts abroad. A structured questionnaire products used in the study were an industrial
was presented to chief executives of a judge- lift truck, a metal working machine tool, and
ment sample of 154 manufacturing firms in a dictation system. A total of 480 question-
Canada. Five national settings were used for naires were distributed to members of the
the research (Canadian, US, West European, National Association of Purchasing Manage-
Latin American, and Asian and African set- ment, and 236 usable questionnaires (49 per
tings). Chief executives were asked to cent) were returned. The results indicated
describe (actual or potential) customers and that there were statistically significant differ-
intermediaries in each of these settings, one ences in the perception of quality depending
at a time, with the help of a set of scales for on where they were made. For example,
each situation (p. 199). Research indications respondents rated the product made in USA
were a clear preference for dealing with and Germany over Japan in perceived quality
North American buyers who were perceived for all three products. While the product
as superior to foreign customers and distribu- made in Brazil was evaluated below all of
tors. Abdul-Malek (1975) also found differ- the other countries tested in the study.
ences in chief executives perceptions result- White (1979) examined attitudes to US-
ing from different perceived socio-economic manufactured products in selected European
traits. For example, exporters with more countries, namely, West Germany, France,
experience tended to be more in favour of Italy, and UK. A sample of 480 purchasing
imported products than non-exporters. managers was randomly chosen from the
Darling and Kraft (1977) suggested that National Association of Purchasing Manage-
additional variables such as past experience ment. Of these, 213 American purchasing
or reputation might also be considered when managers, having an average of over ten
investigating the impact of made in labels. years, experience, were invited to take part in
Darling and Kraft (1977) concluded that this the study. They were asked to provide assess-
label provides a great deal of information to ments for industrial products from one
[ 165 ]
Khalid I. Al-Sulaiti and country in terms of 12 scales. The results and politically free countries with a Euro-
Michael J. Baker indicated that US purchasing managers in pean, Australian, or New Zealand culture
Country of origin effects: a general had stereotyped attitudes towards the base.
literature review countries tested. Khanna (1986) investigated business
Marketing Intelligence & Crawford and Lamb (1981) studied the peoples perceptions of pricing, product, pro-
Planning extent to which consumers are willing to buy motion, and service attributes of Asian com-
16/3 [1998] 150199
products of foreign origin and the identifi- panies exporting new manufactures. South
cation of preferred sources for these Korea, Taiwan, India and Japan were selected
products. A self-administered questionnaire for the study. Subjects were asked how impor-
was mailed to 1,090 firms selected from the tant they perceived a country of origin stereo-
list of members of the Nation Association of type was to a new client versus a client of a
Purchasing Management, Inc. Of these, 376 long-standing relationship. The results
responses were usable resulting in a 35 per indicated that country of origin had a greater
cent response rate. Industrial purchasers effect on new clients than on established
were asked to show their willingness to buy ones. Khanna concluded that the image of
products from 44 different countries and five Indian manufacturing exports varied
product categories: foods, feeds, and between the executives of importing compa-
beverages; industrial supplies and materials; nies in Thailand, Singapore, the Philippines
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capital goods; automotive goods; and con- and Japan (Khanna, 1986).
sumer goods. The results revealed that the US Yavas and Alpay (1986) examined Saudi
industrial purchasers were influenced by Arabian and Bahraini consumer attitudes
both the individual country and the existing towards made in USA, Japan, France,
levels of economic development and political Germany, Italy, UK and Taiwan. The source of
freedom within the 44 given countries. More- data included two samples. The first sample
over, the US industrial buyers showed their consisted of 59 Bahraini students and the
country stereotype in being most willing to second sample consisted of 94 Saudi students.
buy from advanced nations. The findings showed that the two groups by
Cattin et al. (1982) investigated the stereo- and large agreed in their assessments. For
types held by American and French directors both groups results indicated that the Taiwan
of purchasing towards products produced in label was evaluated the lowest, while Japan
five different advanced countries. They were was rated the highest followed by the USA
France, Germany, Japan, USA and UK. A total and Germany.
sample of 123 American and 97 French direc- Kaynak and Cavusgil (1983) examined how
tors of purchasing was asked to evaluate the quality perceptions of consumers varied
five countries industrial products using 20 across four product classes:
sets of bi-polar dimensions. Cattin et al. (1982) 1 electronic items;
found that French, German, and Japanese 2 food products;
labels were rated higher by the Americans 3 fashion merchandise; and
than the French. Thus, their findings sup- 4 household goods.
ported the notion that stereotypes are per-
ceived differently from consumers across Using a structured, self-administered
national boundaries, because consumers questionnaire, 197 heads of households in four
sharing similar cultural values tend to be cities in Canada were asked to rate the quality
similar in their evaluations of made in and price of products from 25 countries in
labels. general, and then the four product classes.
Wang and Lamb (1983) examined the possi- Quality perceptions of the respondents were
ble level of economic development, culture recorded on a five-point Likert scale from very
and political climate on US consumers will- good to very poor. The results revealed that
ingness to buy foreign products from 36 devel- consumers perceptions of quality towards
oping countries. A factorial design model was products of foreign origin tend to be product
chosen for the study. Questionnaires were specific. Food was the most culturally
hand delivered to a randomly chosen sample sensitive product, and made in Canada
of 500 residents in the Bryan-College Station. came out on top. However, the findings of this
Of these, 273 were usable for the study result- study did not generally support Reiersons
ing in a total response rate of 54.6 per cent. (1966) findings as to the positive bias shown
Respondents were asked to indicate their towards domestic products. Kaynak and
willingness to purchase products made in Cavusgil (1983) suggested that country of
each of the 36 countries. The findings of the origin may function as a surrogate variable,
study showed prejudices against products having stronger impact when little else is
from developing nations. They also indicated known about a product. The authors
that consumers were most willing to buy concluded that the less known about a busi-
products made in economically developed ness firm and its brands, the greater the
[ 166 ]
Khalid I. Al-Sulaiti and impact of the national origin of the manufac- performing, cars appeared to be what many
Michael J. Baker turer. Moreover, the results of a study by New Zealand consumers desired and
Country of origin effects: a Papadopoulos et al. (1987) also did not support admired (Lawrence et al., 1992, p. 49 ).
literature review the home country preference view either and Smith (1993) examined the US consumers
Marketing Intelligence & made the suggestion that there were cross- perceptions towards manufactured goods
Planning that were labelled regionally. The regions
cultural variations in the assessment of prod-
16/3 [1998] 150199
ucts from ones own country. used were Africa, Latin America, Asia and
Papadopoulos et al. (1989) developed a large- Western Europe. The products used in the
scale cross-national consumer survey carried study were:
out in the capital and another major city in 1 a piece of cloth of medium weave; and
the USA, Canada, UK, The Netherlands, 2 a modest wine glass.
France, West Germany, Greece and Hungary.
The result of the study showed that there was
The authors included Hungary in order to
a demonstration of some degree of regional
examine the attitudes of consumers in an consumer bias as Asian products received a
Eastern as well as Western market. However, more positive evaluation than those from
the aim of the study was to examine the Western Europe, Africa, and Latin America
country of origin effects from a transnational for some of the semantic differential items
perspective. Using a quota sample, 300 con- used in the research. The results also
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sumers from the Budapest area were selected, indicated that younger consumers had more
and the drop-off/pick-up technique was used negative product evaluations than older
resulting in a response rate of 94 per cent people had. Smith (1993) concluded that the
(versus an average of 57 per cent in the other use of such labelling could ameliorate con-
seven countries that were sampled (p. 34). A sumers negative bias against products from
self-administered questionnaire was developing countries. This is demonstrated
employed in the study , which was identical in by the fact that respondents in this study
all eight countries and was translated and evaluated African, and Latin American
back-translated to ensure accuracy. Subjects products as being comparable to, or superior
were asked to evaluate countries and their to , those from Western Europe (p. 11). In
products. The results revealed that consumers earlier studies using country-specific
do hold stereotypical views towards different comparisons, products from African and
countries. For example, products made in Latin American countries did not fare well
Japan were evaluated the highest by six of against those from Western Europe. For
the eight samples. The results also showed example, Schooler (1971) found more posi-
that Hungarian consumers held strongly tive attitudes towards products from West
positive attitudes towards Japan and its Germany than those from Nigeria and Chile
products. (Smith 1993, p. 11).
Lawrence et al. (1992) examined New Maheswaran (1994) identified consumer
Zealand consumers attitudes towards auto- expertise and the type of attribute infor-
mobiles made in four different countries: mation as moderating the effects of country
Japan, Germany, France and Italy. Owing to of origin on product evaluation. The product
the large number of bipolar adjective pair- used in this study was a personal computer
ings that required evaluation, the authors along with nine attributes namely:
developed two structured, self-administered 1 memory capacity;
questionnaires for use in this study. The 2 speed of computation;
questionnaires were developed in a way 3 software provisions;
which enabled the hypotheses to be 4 monitor;
tested easily. Each questionnaire had four 5 compatibility;
parts: 6 data storage;
1 purchase behaviour; 7 ease of operation;
2 country of origin attitude; 8 keyboard; and
3 brand familiarity; and 9 modem.
4 demographics.
The results indicated that when attribute
The results showed that country of origin information was unambiguous, experts based
stereotyping was present in the New Zealand their evaluations on attribute strength, while
new car market, and that it was often a deter- novices relied on country of origin. When
mining factor in the buying process. Respon- attribute information was ambiguous, both
dents evaluated automobiles made in experts and novices used country of origin
Germany as the most favoured country of differently in evaluations (Maheswaran,
origin. The German stereotypical image, 1994, p. 354). The results also showed that both
with its reputation for producing well engi- experts and novices differed in their process-
neered and assembled, competently ing of stereotypical information. For
[ 167 ]
Khalid I. Al-Sulaiti and example, experts used country of origin towards the maturity and decline stage, a
Michael J. Baker stereotypes for selectivity process and recall shift occurs in the positioning strategies
Country of origin effects: a attribute information, whereas novices used employed by many of the firms interviewed
literature review them as a frame of reference to differentially from use of the national image as a differenti-
Marketing Intelligence & interpret attribute information ation tool to the building of international
Planning
(Maheswaran, 1994, p. 362). brands and product images (Niss, 1996,
16/3 [1998] 150199
Strutton et al. (1994) examined the opinions p. 19). This means that as the product
of US consumers towards automobiles made approaches its maturity and decline stage,
in the USA and Japan. Using a telephone the consumers information requirements
interview method, 1,000 adults living in the also decline because at this level the
continental USA were asked to evaluate auto- consumer knows all about the product and its
mobiles on construction, investment proper- functional and aesthetic qualities, including
ties, dimensions of quality, dimensions of its designation of origin (Niss, 1996).
style, and cost consideration. Of the 1,000 Country of origin stereotypes seem to be
calls, 36 were considered incomplete because highly affected by ethnocentrism[13] (Hooley
of missing information. The results of the et al., 1988; Lee et al., 1992; Stoltman et al.,
study indicated that American consumers 1991). This term appears to impact consumer
were more in favour of Japanese automobiles choice both through product attribute evalua-
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in terms of their dimensions of style, tion and through direct affective factors
investment properties and dimensions of regarding the purchase itself (Yaprak and
quality. However, no significant differences Baughn, 1991, p. 265). Han (1988) found that
were observed in the perceptions held by consumer patriotism does affect cognitive
American consumers regarding the cost evaluations of goods, but affects purchase
consideration and construction of US intent to a greater degree. For example, US
and Japanese cars (Strutton, et al., 1994, consumers prefer US products (Gaedeke,
p. 70). 1973; Johansson et al., 1994; Levin et al., 1993;
Keown and Casey (1995) measured the Nagashima, 1970; Olsen et al., 1993; Reierson,
factors that influence Northern Ireland 1966), French consumers are more in favour
consumers behaviour when purchasing of products made in France (Baumgartner
wine from 14 selected countries. et al., 1978), Japanese consumers favour
Respondents were presented with ten Japanese products (Narayana, 1981),
characteristics; Canadian consumers are willing to purchase
1 country of origin; Canadian products that are higher in price
2 brand name; but equal in quality to imported products
3 grape variety; (Wall and Heslop, 1986), Turkish managers
4 region of origin; purchase products made in Turkey
5 volume of alcohol; (Gudum and Kavas, 1996), Polish and Russian
6 vintage; consumers prefer their home countrys
7 classification; products (Good and Huddleston, 1995),
8 a chateau-bottled wine; Spanish consumers prefer home-made prod-
9 a table wine; and ucts (Peris and Newman, 1993), Mexican con-
10 a country wine; sumers buy Mexican products (Bailey and
Pineres, 1997), UK consumers prefer their
and asked to show which of the factors were
home countrys products over foreign ones
important when purchasing their wine. The
(Baker and Michie, 1995; Bannister and
results indicated that country of origin was
Saunders, 1978; Hooley et al., 1988; Peris and
the most important factor when the Northern
Newman, 1993) and European consumers in
Ireland consumers were selecting wine.
general tend to prefer products made in
Moreover, respondents rated the traditional
Europe to imported products (Schweiger et
producers such as France, Italy and Germany
al., 1995).
the highest and USA and UK the lowest.
Niss (1996) determined to what extent
Danish exporters of foodstuffs, design goods,
Demographic effects
and agricultural products make use of the
Danish image in their export marketing Demographic variables also played a role in
based on country stereotypes. Using both differences in made in image between male
mail questionnaires and personal interviews, and female respondents (Wall and Heslop,
managers from 58 exporting companies were 1989; Wall et al., 1989). Male and female atti-
asked their attitudes towards using tudes towards foreign products differ;
nationalities for international promotion females generally tend to show a more posi-
purposes. The results of the study indicated tive country of origin bias towards domestic
that as a product moves along its life cycle products than males (Good and Huddleston,
[ 168 ]
Khalid I. Al-Sulaiti and 1995; Heslop and Wall, 1985; Lawrence, 1992; 3 cough syrup; and
Michael J. Baker Sharma, et al., 1995). Contrastingly, gender 4 a winter coat;
Country of origin effects: a was found to be an unimportant factor by
literature review made in the USA, UK, France and Germany.
Dornoff (1974). In terms of age, older people
Marketing Intelligence & The study employed a 7-point scale ranging
tend to evaluate foreign products more
Planning from extremely interesting (1 point) to not
favourably than do younger people (Bailey
16/3 [1998] 150199 at all interesting (7 points). A total of 120
and Pineres, 1997; Schooler, 1971; Smith, 1993).
French consumers were asked to consider
The most influential demographic variable
each of 16 products (4 4) which were pre-
was that of education (Festervand et al., 1985).
sented in random order. The results of the
Education enjoyed fairly consistent results as
study demonstrated that French consumers
correlated with perceptions of products. Most
preferred products made in France over
studies revealed that people with a high level
foreign products.
of education are more in favour of foreign
Nes (1981) examined the country of
products than those with limited education
manufacture as a cue to perceived product
(Al-hammad, 1988; Anderson and Cunning-
risk and perceived product quality. Products
ham, 1972; Dornoff et al., 1974; Festervand et
were classified into two groups: low risk and
al., 1985; Good and Huddleston, 1995; Greer
high risk products. Three brand categories
1971; Schooler, 1971; Sharma et al., 1995; Wall,
were used in the study: no brand name, a new
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et al., 1991). Likewise McLain and Sternquist


brand name and a well recognised brand
(1991) and Bailey and Pineres (1997) found
name. Four countries of origin were used: no
that as the education level increased, the level
country information available, made in a
of consumer ethnocentricity displayed by the
poor country, made in an average income
respondents decreased. Wall et al. (1990)
country and made in a developed country.
found that, there was a strong relationship
The findings showed that all three factors
between income level and positive attitudes
(country, brand and risk class) were signifi-
towards imported products. Good and Hud-
cant, while none of the interactions was sig-
dleston (1995), Sharma et al. (1995) and Bailey
nificant (Nes, 1981).
and Pineres (1997) found that the higher the
Hugstad and Durr (1986) investigated the
income, the less likely it was that the con-
importance of country of manufacture (COM)
sumer would buy domestic products. On the
information to US consumers. Products used
other hand, both Han (1990) and McLain et al.
were automobiles, cameras, canned food,
(1991) agreed that income did not signifi-
automobile tyres, shoes, and sports shirts.
cantly account for variations in ethnocentric-
Countries used were Japan, China, South
ity between consumers.
Korea, Taiwan and the USA. Using a mall
intercept method, interviews were conducted
with 341 shoppers. They were asked their
Perceived risk as a determinant of
sensitivity, and perceived risk related to each
country of origin effects
country and its products. The results indi-
Hampton (1977) was the first researcher to cated that sensitivity to country of manufac-
examine the influence of perceived risk on ture (COM) varies by product category, being
rating 27 products in three classes of highest for durable goods (p. 119). Moreover,
perceived risk (high, moderate, low) from COM also appeared to affect perceptions of
nine different countries. He examined quality and price for products from different
perceived risk for American products made nations.
in the US compared with products made Wall and Heslop (1986) investigated
abroad by American firms. A sample of 200 Canadian consumers attitudes towards
households living in Seattle, Washington, Canadian products and the products of 17
were invited to participate in the study. A Canadian trading partners. The results
total of 176 usable questionnaires were showed that females have more positive
returned with a response rate of 88 per cent of attitudes than males in favour of Canadian
the total sample. The findings indicated a products. Ghadir (1990) examined Jordanian
general increase in perceived risk of products consumers perceptions of quality, price and
made abroad. risk of foreign versus domestic products. The
Baumgartner and Jolibert (1978) investi- results indicated a strong relationship
gated French consumers perceptions of for- between country of origin and consumers
eign products. Subjects were asked to perception of the quality, price and risk of the
evaluate each product and country in terms product. Wall et al. (1991) experimentally
of perceived risk. Baumgartner and Jolibert determined the effects of country of origin
(1978) selected four classes of products: when combined with brand name and price
1 playing cards; level on consumers ratings of quality, risk to
2 life insurance; purchase, value, and likelihood to buy a shirt,
[ 169 ]
Khalid I. Al-Sulaiti and telephone and wallet. Countries used were were conducted around a comparison of eight
Michael J. Baker Canada, Hong Kong, Italy, South Korea, different makes of tractors, made in six differ-
Country of origin effects: a Taiwan and the USA. The results indicated ent countries: Belarus in Russia; Deere, Ford,
literature review that country of origin was related to the and Maxxum in the USA; Massey in Canada;
Marketing Intelligence & assessment of product quality, but when it Deutz in Germany; Hesston in Italy; and
Planning came to evaluating purchase likelihood, Kubota in Japan. Comparisons among the
16/3 [1998] 150199
country of origin seemed not to be important. eight models were made and each stage of the
In addition, age, education, sex and percep- core process was measured using a seven-
tions of ability to judge products were related point scale. For example, respondents were
to consumers ratings of quality, risk, value asked to rate a tractor in terms of value for
and likelihood of purchase especially when money from very good to very bad.
the product was more complex and difficult to Respondents were also asked their beliefs
judge (p. 105). about the makes country of origin, their
Cordell (1991) investigated the interaction familiarity with the make, and their rating of
of country of origin within four product the country of origin as a manufacturer of
categories (colour TVs, microwave ovens, tractors. Then the respondent was given a
bicycles, and telephones) along with different self-evaluation on three batteries of Likert-
levels of financial risk. Countries used were type scales. One was a ten-item battery on
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Algeria, India, Nigeria, Peru, and the USA. In ethnocentrism. A second was a set of 13 risk
a lab experiment setting, 241 students were items and a third set of eight items measured
presented with two different products at a the perception of the new Russia. Finally,
time and asked to choose only one. Results they were asked to indicate their political
showed preference biases against products leanings using two seven-point scales:
from developing countries. Respondents were Liberal-Conservative, and Pro-Democrat -
less likely to choose a product made in a Pro-Republican. Results indicated that once
developing country as the price and the finan- the consideration set had been reached, the
cial risk increases. Therefore, a hierarchy changes to influence the process diminish.
was found to exist between developing coun- After the consideration set, the farmers
tries and industrialised nations. mind may well be made up. Familiarity also
Johansson et al. (1994) investigated the role had a pervasive influence throughout the
of product country images for Russian process. This was reflected in both the risk-
tractors in the United States. They postulated reducing tendency on the part of risk-averse
a model which sees the image of a country farmers and the reluctance among all farm-
prompting a country of origin rating for the ers to consider unfamiliar makes (p. 171).
relevant product which then influences the Country of origin was also another recurring
core process of product evaluation (see influence that played an important role in the
Figure 2). process of product evaluation.
The target was a farmer likely to be in the The results revealed a significant change in
market for tractors of the kind manufactured the process especially when the tractor was
by Belarus in Russia. Individual interviews made in a highly rated country such as the

Figure 2
The complete model

Multi-Attribute Image of Image of


Beliefs Make Country

Price
Product
Rating
Country of
Value For Origin Rating
Money
Service

Core Consideration
Set
Process

Respondent Visit to Dealer


Characteristics
Familiarity
Likelihood of
Risk Attitude Purchase
Pro-US
Anti-Soviet

Source: Johansson (1994, p. 160).

[ 170 ]
Khalid I. Al-Sulaiti and USA which affected all countries with low the ticket were the three most important
Michael J. Baker score evaluation, including Russia. Although reasons for choosing the three airlines for
Country of origin effects: a farmers rated Belarus products very low, foreign destinations.
literature review they still considered them as good value for Users of frequent airlines paid more
Marketing Intelligence & money. The results also showed pro-US senti- attention to in-flight entertainment, free
Planning ment affected only product ratings and the alcoholic beverages and availability of
16/3 [1998] 150199
consideration set, but not purchase likeli- frequent flights. On the other hand, users of
hood. In addition, opinions on whether the domestic airlines considered airport
United States should support Russia through counter service as the most important eval-
the trade influenced farmers rating of prod- uative criterion.
ucts and their likelihood to purchase. It was More attention was given to competitive
also found that farmers who liked to try out a fares by both domestic and foreign airline
new product were more likely to visit the users.
Belarus dealer, but they did not like it as In terms of gender, males attached more
much when they recognised its origin. There- importance to reliability of airline, while
fore, this study suggested that entering a new females placed more attention on
market requires strong promotional support convenient schedule and quickest route
because consumers are reluctant to purchase, direct flight.
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or consider, a product with which they are Females also considered airport ticket
unfamiliar (Johansson et al., 1994). counter service, accurate flight status infor-
mation, convenient flight connections,
frequent flights, and good connections to
Service evaluation major cities as important factors in
Kaynak et al. (1994) examined consumers choosing an airline, while males attached
perceptions of airlines in the USA. The main more importance to availability of free
objective of their study was: alcoholic beverages.
To investigate consumers satisfaction Results also indicated that professional job
and/or dissatisfaction while flying by a holders differed from technical personnel
domestic and/or foreign airline to foreign in factors considered important in selecting
destinations. an airline for foreign travel.
To understand consumers perceptions of In terms of age, respondents who were less
airlines and relate this information to their than 20 demonstrated that in-flight enter-
domestic and foreign airline preferences. tainment, stewardess service, quality of
food, alcoholic beverages and frequent flyer
The study was conducted in three cities of programmes were important, while conve-
Pennsylvania, namely, Harrisburg, Lancaster nient connections, frequent flight, connec-
and York. Using a stratified sampling method, tions to major cities and reservation ease
two groups of neighbourhoods, namely, upper were more important factors for respon-
income and middle income, were selected for dents who were older than 31. On the other
the study. Drop-off and pick-up technique was hand, respondents aged between 20 and 30
employed. Questionnaires were hand- gave more importance to on time flights,
delivered to 600 households, where 376 ques- baggage handling, and competitive fares
tionnaires were usable for final analysis with (Kaynak et al., 1994).
a response rate of 62 per cent.
Respondents were given a list of airlines Harrison-Walker (1995) investigated the
and told to show their three favourite airlines national stereotype effects on consumer
for foreign travel. They were also asked about selection of a service provider. The main
the main reasons for their selection of these objective of his study was to:
three airlines and factors influencing their Evaluate the potential role of national
decision in selecting the airline for foreign stereotype on service provider selection.
travel. The study indicated the following Investigate the relative effects of service
results: provider nationality, supplemental infor-
The three airlines selected were United, mation and consumer nationality on
American and Delta. service provider selection.
Respondents who used domestic airlines The professional service of ophthalmology
had more favourable attitudes towards
was selected for the study. The following
domestic airlines than those who did not
scenario was presented to subjects:
use a domestic airline. Whereas, those who Youve been having difficulty with your
used both domestic and foreign airlines vision, so youve decided to have your vision
demonstrated no differences between them. checked by an ophthalmologist. Youve just
Reliability of the airline, past satisfactory moved to this town, so you do not already
experience with the airline and low price of have a local ophthalmologist and do not

[ 171 ]
Khalid I. Al-Sulaiti and know anyone to ask for a reference. The only consultation with an immigration lawyer.
Michael J. Baker information you have is what appears in the Since this was a mixed population (e.g.
Country of origin effects: a local telephone directory (Harrison- Walker seminar and consultation personnel), Shaffer
literature review 1995, p. 51). and OHara designed a questionnaire
Marketing Intelligence & composed of several sections. First, specific
A total of 223 students from the USA, Japan,
Planning questions were developed in the light of the
16/3 [1998] 150199 Spain and other countries were asked to rank
each of 20 ophthalmologists in the order in seminar or consultation session attended,
which they would contact them by telephone. while the second section consisted of ques-
The mock directory listing included five tions concerning trust and ethical percep-
physician names for each of four nationali- tions of the immigration lawyer from an
ties: American, Indian, Japanese and Span- American viewpoint.
ish. The author used five information levels. The results of the study indicated that there
They were: are significant ethnic differences in the
1 Zero level: no additional information pro- evaluation of professional services. However,
perceptions of trust are found to differ
vided;
significantly between people from nations
2 One level: board certified, American Board
characterised by high and low individual-
of Ophthalmology;
ism (p. 162). For example, respondents from
3 Two level availability: board certified,
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high distance, collectivistic societies were


American Board of Ophthalmology, day,
less trustful than clients from small power
weekends, holidays;
distance[14], individualistic societies. Signifi-
4 Two level service: board certified,
cant differences in ethical perceptions are
American Board of Ophthalmology, in-
also found between individuals from small
office laser and cataract surgery;
power distance countries (e.g. the USA
5 Three level: board certified, American
Canada, Western European countries), ver-
Board of Ophthalmology, in-office laser
sus large power distance countries (e.g.,
and cataract surgery, days, weekends,
Asian and Hispanic countries)[15].
holidays.
Wetzels et al. (1996) investigated the Dutch
Finally, respondents were asked to identify consumers concept of ethnocentrism to ten
the nationality of each of the 20 service different kinds of services provided in The
providers. In terms of nationality of the Netherlands. These services included: public
respondents, American, Japanese, Spanish, transport by bus, banking services, express
and other nationalities were selected for the delivery services, air travelling, travel agen-
study. The results showed that there is no cies, railroad services, telecommunications,
clear evidence of same-nationality bias. mail services, medicine-supply, and public
Americans prefer American providers over utilities such as gas and electricity. Results
other nationality providers when advertising indicated the following:
information is at zero level, two level/service, A consumers ethnocentric tendencies
or three, yet at the one level and two toward services is negatively correlated
level/availability levels of advertising infor- with cultural openness (individuals who
mation they show no preference. Japanese are more open to other cultures are less
providers are evaluated as just as good as the consumer ethnocentric toward services),
American providers, while Spanish respon- and positively correlated with patriotism
dents show no significant same-nationality conservatism, collectivism and age.
bias at any level of information. Consumers with a higher level of education
According to Harrison-Walker, service is have less ethnocentric tendencies toward
viewed more favourably by consumers than services.
time availability, with two exceptions: Al-Sulaiti and Baker (1997) surveyed Qatari
1 the availability of Japanese providers teachers perceptions and selections of
appears to be more important to American domestic versus foreign airline carriers in
consumers than extra services. the Arabian Gulf region, Qatar. The airlines
2 the availability of Indian providers used in their study were grouped into three
appears to be more important to other categories:
nationality consumers than extra 1 Gulf (named as domestic);
services. 2 Arab non-Gulf; and
3 foreign airlines (named as foreign).
Shaffer and OHara (1995) examined the
impact of nationality on perceptions of The main objectives of their study were to
ethicality and trust towards an American examine country of origin effects on airline
service professional. Data were collected selection and to understand country of origin
from 122 individuals from 30 countries who effects on consumers perceptions of quality
had either attended a seminar or an initial of Gulf, Arab non-Gulf and foreign airlines.
[ 172 ]
Khalid I. Al-Sulaiti and Questionnaires were translated into Arabic
Michael J. Baker and 430 were hand-delivered by the lead Summary
Country of origin effects: a author to headmasters and mistresses who Baker and Currie (1993) suggested that the
literature review were then asked to distribute them as ran- country of origin concept should be consid-
Marketing Intelligence & domly as possible among teachers in each ered a fifth element of the marketing mix
Planning school during working hours. After three
16/3 [1998] 150199 along with the product itself, its price, promo-
weeks waiting time, questionnaires were tion and distribution. Since the mid-1960s, the
personally collected. Of the 430 teachers, 380 country of origin effects have been the
responses were received, of which 324 were impetus for a number of studies. Most of
usable questionnaires for final analysis these studies have found that country of
resulting in a high response rate of 75.3 per origin of a product does affect product evalua-
cent. Results revealed the following: tion (Baker and Currie, 1993; Baker and
There was a significant difference in
Michie, 1995; Bilkey and Nes, 1982; Ozsomer
customers selection of a Gulf or a foreign
and Cavusgil, 1991; Thakor and Katsanis,
airline. It was found that around 68 per cent
1997; Yaprak and Baughn, 1991). However, the
of the total respondents preferred Gulf
issue of how much influence the country of
airline services and the remainder admit-
origin cue provides in product evaluations is
ted a preference for foreign airline services.
not yet decided and therefore opinions appear
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Domestic airline services had an


to differ widely (Baker and Currie, 1993).
unfavourable image in comparison to the
Several studies, referred to in Olson and
foreign airline services and a favourable
Jacoby (1972), conclude that intrinsic cues (a
image compared with the Arab non-Gulf
airline services. products characteristics such as taste, design
and performance) have greater effect on
Bruning (1997)[16] examined Canadian quality judgements than do extrinsic cues
national loyalty and the country of the air (considerations associated with the product
carrier in the selection process. Bruning such as price, brand name and warranties).
(1997) used two instruments in securing data: Therefore, country of origin (an extrinsic
a conjoint experiment where subjects were cue) might have only a limited influence on
presented with multiple attribute bundles product quality perceptions (Bilkey and Nes,
and asked to rate preferences for each of the 1982; Thakor and Katsanis, 1997).
bundles, and a questionnaire to collect demo- In addition, most of these studies involve
graphic, attitudinal, and usage information. single cue models (e.g., the country of origin
The study was conducted in three provinces was the only information supplied to respon-
of Canada, namely the western, central and dents on which to base their evaluation)
the eastern provinces. Results indicated the
which tend to bias the results in the direction
following:
of detecting positive country of origin effects
The country of origin attribute is second
(Johansson et al., 1985). Later studies adding
only to price in terms of relative impor-
multiple cue models appear to show a much
tance in the air carrier choice decision. For
lesser role of country of origin influencing
example, Canadian consumers measuring
consumer product evaluation (Ahmed et al.,
high in national loyalty prefer a national
1993, 1994, 1995; Ettenson et al., 1988;
carrier for an international flight when
Johansson et al., 1985; Roth and Romeo, 1992).
other foreign carriers are in competition
These results are not surprising, because as
with the national carriers.
Canadian travellers were marginally consumers have a greater number of cues, the
supportive of a US carrier over a Mexican efficacy of one particular cue, such as
carrier but they indicated overwhelming country of origin, in influencing consumer
support for a Canadian carrier when con- product evaluations can be expected to be
sidering international air travel. reduced.
The preference for own-country air carriers To sum up, the literature regarding country
is not equally strong across air traveller of origin suggests a general home-country
segments. For example, females showed selection bias[17] (Baker and Michie, 1995;
more favourable attitudes towards their Bannister and Saunders, 1978; Baumgartner
national airline than did males. With et al., 1978; Chao and Rajendran, 1993;
respect to income level, results showed that Gaedeke, 1973; Levin, et al., 1993; Nagashima,
the higher the income, the less likely it was 1970; Narayana, 1981; Okechuku, 1994;
that the consumer would fly with a Reierson, 1966; Wall and Heslop, 1986), with
Canadian carrier. In addition, national alternative product choice selection affected
loyalty scores were highest for travellers by product class (Dornoff et al., 1974;
with the lowest levels of flying frequency Festervand et al., 1985; Gaedeke, 1973;
and declined with increases in flying Hugstad and Durr, 1986; Kaynak and
frequency. Cavusgil, 1983, 1986; Krishnakumar, 1947;
[ 173 ]
Khalid I. Al-Sulaiti and Nagashima, 1970, 1977; Reierson, 1966; Roth manufacturers excess production. Off-price
Michael J. Baker and Romeo, 1992), for a specific product stores emphasise name and designer brand
Country of origin effects: a (Cordell, 1991; Gaedeke, 1973; Hampton, 1977; merchandise at lower prices than traditional
literature review Hugstad and Durr, 1986; Krishnakumar, 1974; department stores (Khachaturian and
Marketing Intelligence & Schooler and Sunoo, 1969), and for a specific Morganosky, 1990, p.21).
Planning brand (Ahmed and dAshous, 1993, 1995; 7 Country image is defined as consumers
16/3 [1998] 150199 general perceptions of quality for products
Ahmed et al., 1994; Gaedeke, 1973; Han, 1990;
Han and Terpstra, 1988; Khachaturian and made in a given country (Bilkey and Nes, 1982;
Morganosky, 1990; Leclerc et al., 1994;Yapark, Han, 1989). It is also known as the country of
1978). Stereotyping has also been found origin cue it has become an important infor-
mation cue for consumers who are exposed to
among US (Cattin et al., 1982), Japanese
a far more internationalised selection of
(Nagashima, 1970), Indian (Krishnakumar,
products and multinational marketing than
1974), Chinese (Zhang, 1996) and Taiwanese
ever before (Baker and Michie, 1995, p. 1).
(Lin and Sternquist, 1994) respondents. This
8 According to Han (1990) only one brand of car
of course may influence both industrial
was selected for South Korea because it was
purchasing decisions and consumers pur-
the only one being actively marketed in the
chasing decisions (Baker and Currie, 1993). USA.
Finally, most researches to date have 9 See note 1.
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focused primarily on country of origin effects 10 A generally accepted definition of memory


on product evaluation and nationality differ- schema is that it is a structured cluster of
ences in the consumption of a product in knowledge that represents a familiar concept
more developed countries (for further review and contains a network of interrelations
see Baker and Currie, 1993; Bilkey and Nes, among the constituents of the concept
1982; Ozsomer and Cavusgil, 1991; Yaprak and (Kochunny, 1993, p.7).
Baughn, 1991). To date there are few studies 11 According to Johansson et al. (1985) both of
which have examined the impact of country these factors are identified as potential moder-
of origin effects on the consumption and ator variables on country of origin effects.
evaluation of services (Al-Sulaiti and Baker, 12 Ethnocentricity is described as the phenome-
1997; Bruning, 1997, 1994; Harrison-Walker, non of a preference of ones kind and con-
1995; Kaynak and Kucukemiroglu, 1993; comitant dislike of others, (Papadopoulos,
Kaynak et al., 1994; Shaffer and OHara, 1995; 1993, p. 33).
and Wetzels et al., 1996). Most of these 13 The advantages of purchasing home-made
researches examined consumers perceptions products include: boosting the countrys
towards services in the West (see the appen- employment; helping the economy; easier
dix for full details of results of the research after-sales service; and maintaining national
studies). pride (Wall and Heslop, 1986; see also Olsen
et al., 1993).
Notes 14 Power distance is defined as the the degree
1 Made in can mean manufactured-in but also of inequality in power between a less powerful
assembled-, designed-, or invented-in, made by Individual (I) and a more powerful Other (O),
a producer whose domicile is -in, and, often in which I and O belong to the same (loosely or
wanting to look like it was made-in tightly knit) social system (Mulder, 1977,
(Papadopoulos, 1993, pp. 4). p. 90). Power distance concerns the relation-
2 Hybrid products are products that contain ship between the individual and persons of
components or ingredients made in various authority and power, while individualism
countries (Baughn and Yaprak, 1993, p. 90). concerns the relationship between the individ-
3 The elasticity of product bias can be defined ual and the collectivity of given society
as a measure of the effect on the product (Hofstede, 1980).
selection decision of the interaction between 15 An explanation of why certain countries are
product bias and price differential (Schooler small/large power distance countries or
and Wildt, 1968, p. 78). low/high individualism countries would
4 This type of method was used because the require a lengthy discussion of the historical,
French have traditionally been reluctant to geographic, economic, demographic and tech-
respond to mail surveys (Green and Langeard, nological factors contributing to a nations
1975). social and cultural fabric (Shaffer et al., 1995,
5 Another study conducted by Thorelli et al. p. 182). This is beyond the purpose of this study
(1989) suggested that the country of origin cue (for more discussion see, for example, Hofst-
can provide only a limited explanation of ede, 1980 and Triandis et al., 1988).
variance of the product evaluation, preference 16 A similar study was conducted in 1994 by the
and purchase intention of the respondents same author.
when multiple cues are presented. 17 Still in some studies, domestic products were
6 Off-price buyers purchase merchandise not evaluated as favourably as imports (see Lin
through non-traditional methods, buying up and Sternquist, 1994; Strutton, 1994).

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Country of origin effects: a

Appendix
Studies dealing with country of origin effects on product/service evaluation
Reference Country Respondent
Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1965) Schooler To investigate the Juice + fabric sample Central American Guatemala Students 200 NA E Results supported the hypothesis that
consumers bias countries attitude towards the people of a nation
based on product is related to preconception regarding
origin in the Central the products of that country
American Common
Market (CACM)
(1966) Reierson To determine the General + product USA, Germany, USA Students 155 NA S Stereotyping of foreign product was
attitude of US class + specific Japan, Canada, present among US students
consumers toward UK, Sweden,
foreign products Belgium, Denmark
(1967) Reierson To investigate the Film presentation, Italy and Japan USA Students 250 NA E All the Italian experimental results
various forms of magazine ads, except the film presentation were
communication media brochures, significant at the 0.05 level. For
that might influence outstanding publications Japanese products only the cumulative
the foreign product impact experiment was significant at
image of the US the 0.01 level
consumers
(1968) Schooler and To measure the 2 pieces of identical USA and Japan USA Students 236 NA E American consumers were biased
Wildt elasticity of product glassware against Japanese products because of
bias their national origin
(1969) Schooler and To research the Cloth sample and Asia, Africa, South USA Students 320 NA E No evidence of bias against
Sunoo consumers perception simple goblet America , and manufactured products which were
of international Western Europe labelled regionally
products (regional vs.
national labelling)
(1970) Nagashima To measure the cross- General + six product USA, Japan, USA and Businessmen 330 NA S The made in stereotype differed among
cultural image of classes Germany,UK, Japan Japanese and American businessmen.
made in products France, Italy Made in image was strongly influenced
as produced by US and by familiarity and availability of the
Japanese business countrys product in question
(Continued)

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Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1971) Schooler To test bias Cloth, desk pen, USA, W. Germany, USA Adults 866 65 E Significant differences against
phenomena with simple goblet Czechoslovakia, products of foreign origin, and a
a broadly based Chile, India, Nigeria, hierarchy of bias effects was
representative North America, observed
sample W. Europe, Asia,
Latin America, and
Africa
(1971) Greer To investigate the 2 concepts: Quality Australia, Belgium, UK Purchasing 60 3 S Older respondents rated their home
usefulness of having of products in Canada, France, executives countrys products higher than
the view of professional general and Holland, Italy, USA, younger purchasing officers
purchasing executives engineering know-how W. Germany
in general
(1972) Anderson and To determine the Automobiles Foreign products USA Adults 116 NA S Significant differences in the socio-
Cunningham extent to which in general demographic and psychological
consumers who characteristics of those respondents
differ in imported who were more in favour of imported
product preference products and those who were not.
may be distinguished Moreover, a direct relationship
by selected objective between level of education and foreign
demographic and imported product acceptance was found
and personality
attributes
(1973) Gaedeke To examine the opinion General + product USA, Philippines, USA Students 200 NA S COO information did not significantly
of US consumers classes + specific Hong Kong, affect opinions about the quality of
towards the overall brands Argentina, Brazil, branded products in general
quality of imported Taiwan, Mexico,
products made in S. Korea, India,
various developing Singapore, Turkey,
countries and USA and Indonesia
(Continued)
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Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1974) Krishnakumar To investigate the General + mechanical USA, W. Germany, USA, India, Students 105 NA S Respondents were more in favour of
influence of COO on and electronic products, UK, India, Taiwan, and Taiwan foreign products than their own.
product image of food, fashion, auto- and Japan Demographic variables had also played
Americans and mobiles, TV sets, soft a part in creating differences in
people from drinks and dress shirts made in image held by Indians
developing nations and
to investigate the
effect of demographic
variables on the made
in image among
these nations
(1974) Dornoff et al. To find out what General + food, USA, Japan, France, USA Adults 216 54 S Foreign products are becoming
consumers fashion, electronic and W. Germany increasingly competitive with products
perceptions of import and mechanical made in USA in terms of quality and in
were; if these products some product classes, and are evaluated
perceptions differed better. Significant diifferences in
for specific countries; perceptions between socio-economic
if perceptions were classification existed as well
based on socio-
economic
characteristics
(1974) Lillis and To compare American General UK, France, USA and Japan Adults 100 76 S Significant differences in subjects
Narayana and Japanese W. Germany, perception of foreign and national
consumers perceptions Japan and USA attributes
toward aggregate image
of products with made
in labels from different
countries
(1974) Etzel and To examine the level General + autos, USA, W. Germany USA Adults 293 97 S A significant difference between
Walker of congruence cameras, and and Japan consumers perceptions of imported
between national mechanical toys national product stereotypes and
product stereotypes images of specific products from that
and attitudes toward country for all but one situation
specific types of (German products vs. German autos)
products

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(Continued)
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Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1975) Green and To compare French 15 grocery or grocery- France and France and Adults 419 NA S Behavioural differences between the
Langeard and US consumers in related products and USA USA two groups existed even though
terms of consumers the use of 8 retail France and the USA are similar in
habits and innovative services many economic respects
characteristics
(1975) Abdul-Malek To examine Doing business with Canada, West Canada Chief 154 80 S Differences in business sellers
managements foreigners Europe, Latin, executives perceptions resulting from different
attitudes towards America, Asia, perceived socio-economic traits.
doing business with and Africa Exporters with experience were more
foreigners in favour of imported products than
non-exporters
(1977) Darling and To investigate the Automobiles, appliances, UK, France, Finland Managers, 303 86.6 S The study supported the hypothesis
Kraft impact of the made foodstuffs, clothing, W, Germany, Japan, employees, that knowledge of country of origin
in label on Finnish perfume and toiletries, Sweden, USSR, USA, students and affected consumer attitudes toward
consumers attitudes radio, TV, equipment and Finland staff products
towards the products and petroleum products
of different selected
countries
(1977) Nagashima To determine whether General + 6 classes W. Germany, Japan Businessmen 100 NA S Made in USA image has lost ground
there had been any UK, Japan, USA, rather dramatically compared with
attitude change among and France the made in Japan image
Japanese businessmen
over the 8-year period
(1977) Hampton To examine the 27 products in 3 9 countries in 3 USA Adults 176 88 S General increase in perceived risk of
influence of perceived classes of perceived classes products made abroad
risk on rating products risk
from different countries
(1978) Bannister and To examine attitudes Durable in general France, Italy, Japan, UK Adults 224 NA S Consumers did have stereotypes of
Saunders of UK consumers UK, USA, USSR, different countries and significant
towards domestic W. Germany differences did exist between these
products and the stereotypes
products of
developed nations
highly active in
UK market
(Continued)
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Planning
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Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1978) Yaprak To investigate Cars, cameras and W. Germany, Turkey and Businessmen 202, 62 S Both general country and product
purchase intentions calculators Japan, and Italy USA 158 26 attributes and specific product
among US and Turkish attributes were statistically
business executives significant in affecting purchase
for specific brands intentions
made in three
different countries
(1978) White and To examine whether Lift truck, dictation USA, W. Germany, USA Industrial 236 49 E Significant differences in the
Cundiff industrial buyers allow system, and machine Japan, and Brazil buyers perception of quality depending on
national stereotypes tool where they were made
to influence their
evaluation of industrial
products and their
perceptions of product
quality based on COO
(1978) Baumgartner To measure the Playing cards, life USA, UK, Germany, France Adults 108 90 E French consumers had a very strong
and Jolibert perception of specific insurance, cough and France preference for products made in
foreign products by syrup, and winter coat France
consumers
(1979) Chasin To examine the Ten industrial products Czechoslovakia, USA Industrial 68 68 S Findings supported the hypothesis of
and Jaffe American industrial Hungary, Poland, buyers COO effects
buyers perceptions Rumania, and USSR
toward the quality of
the goods made in
Eastern European
countries
(1979) White To examine attitudes Industrial products in USA, W. Germany, USA Purchasing 213 44.3 S US purchasing managers in general
to US manufactured general France, Italy, UK managers had stereotyped attitudes towards the
products in selected countries tested
European countries
(Continued)

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Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1980) Niffenegger To find out how Automobiles, electric, France, USA, UK Retail 92 79 S Opinions varied according to the
et al. British retail appliances, textiles, and UK managers country and product under
managers view cosmetics, food and consideration
French and American pharmaceutical
products products
(1981) Nes To examine the Low risk and high risk 4 countries: no USA Adults 96 NA E Well-known brand names did cause
country of manufacture products + 3 brand country information a lower perceived risk and a higher
as a cue to received categories: no brand available, made in perceived quality than new unknown
product risk and name, a new brand poor country, made brands and unbranded merchandise
perceived product name and a well- in average income
quality known brand name country, and made in
a developed country
(1981) Narayana To find differences General Japan and USA Japan and Adults 131 65.5 S A general home-country selection
between US and USA bias
Japanese products
(1981) Crawford and To address (1) the Food, feeds, beverages; 44 countries USA Industrial 376 35 S US industrial buyers showed their
Lamb extent to which industrial suppliers and buyers country stereotype in being most
industrial purchasers materials; capital goods; willing to buy from developed nations
are willing to buy automotive goods; and
imported products, consumer goods
and (2) the
identification of
preferred sources
for foreign products
(1982) Cattin et al. To investigate the General USA, France, Japan, USA and Purchasing 220 NA S Stereotypes were perceived differently
stereotypes held by W. Germany, France directors from consumers across national
US and French and UK boundaries
directors of purchasing
towards products
produced in five
advanced countries
(Continued)
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Planning
literature review
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Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1983) Wang and To examine the General 36 countries USA Adults 273 54.6 S Prejudices against products from less-
Lamb possible level of developed nations
economic
development, culture
and political
climate on US
consumers
willingness to buy
foreign products
from less-developed
countries
(1983) Kaynak and To examine how Electronic items, 25 countries Canada Adults 197 93.8 S Canadian consumers preferred US-
Cavusgil quality perceptions food products, made products (except food products)
of consumers varied fashion merchandise, to the Canadian ones
across 4-product and household goods
classes
(1984) Erickson To analyse the COO Automobiles USA, W. Germany, USA Students 96 NA S The effect of image variables on
et al. effects on the and Japan attitude was not direct: any influence
evaluation of that the consumers have appeared to be
automobile brands a secondary one acting through beliefs
(1984) Morello To determine the General Belgium, France Holland and Students 66 NA E COO effect does exist and may affect
relationship between Holland, Italy, Italy consumer buying behaviour
the image of a Spain, USA, USSR,
country and the image and W. Germany
of the products made
in that country
(1985) Johansson To examine the impact Automobiles Japan, USA, and USA and Students 152 NA S COO is used as a surrogate variable
et al. of COO on product W. Germany Japan to evaluate a product when subjects
evaluation have limited knowledge about the
product
(Continued)

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Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1985) Festervand Investigate Mechanical, food, UK, France, USA Adults 259 26.6 S Minor differences in attitude were
et al. consumers fashion merchandise, Germany, Japan, found across the five countries and US
perceptions of imports electronic equipment, and USA consumers perceptions of the
and their attitudes and leisure goods countries products were mixed
towards countries across the five product categories
product quality
(1985) Heslop and To examine the For men: clothing, 13 different Canada Adults 635 42 S Men and women used different criteria
Wall differences between shoes; for women: countries when making product evaluations
males and females clothing, childrens based on COO
on the basis of COO clothing
product image
(1986) Khanna To investigate Engineering products, S. Korea, Taiwan, India, Businessmen 233 NA S COO had a greater effect on new
business peoples leather manufactures, India and Japan Thailand, clients than on established ones
perceptions of and apparel Singapore,
pricing, product, Philippines,
promotion, and and Japan
service attributes
of Asian companies
exporting new
manufactures
(1986) Yavas and To examine the Saudi Made in label USA, Japan, France, Bahrain and Students 153 NA S The Taiwan label was evaluated the
Alpay Arabian and Bahraini Germany, Italy, UK, Saudi Arabia lowest, while Japan was the highest,
consumer attitudes and Taiwan followed by the USA and Germany
towards made in
seven selected
countries
(1986) Hugstad and To investigate the Automobiles, Japan, China, USA, USA Adults 341 NA S Sensitivity to COM information
Durr importance of cameras, canned Korea and Taiwan varied by product category. COM
country of food, automobile tyres, also seemed to affect perceptions of
manufacture (COM) shoes and sport shirts quality and price for products from
to US consumers different nations
(Continued)
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literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1986) Becker To measure US General USA and Japan USA Adults 380 78 S Nationalism was a dominant factor
consumers perceptions when price and quality were constant
of price/quality
relationship of
American vs. Japanese
products
(1986) Ofir and To measure country- Ski resorts Switzerland, USA Skiers 296 NA S Low level of American skiers
Lehmann level images for France, and Austria familiarity with European ski resorts
products
(1987) Papadopoulos To examine 13 selected products UK, Canada, UK, Adults 250 75 S Consumers in different countries
et al. consumers perceptions France, USA, Canada, to 300 respond differently to COO cues
of foreign consumer Sweden, and Japan and from
goods France each
city
(1987) Darling To present a Finnish products UK, France, Japan, Finland Managers, 1,113 87 S Significant differences in consumers
longitudinal analysis USA, and employees, attitudes in all areas of the data
of the general attitude W. Germany students collection
of consumers in and staff
Finland towards the
products of various
countries
(1988) Ettenson To examine the effects Ladies blouse and USA USA Students 55 52 S Majority of students seemed to have
et al. of COO and the made mens dress shirt positive attitudes towards products
in USA campaign made in USA
(1988) Hooley To investigate Cars and fresh fruit Cars: Japan, UK Students 37 _ S Country of origin images vary
et al. consumers perceptions and vegetables Germany, UK, considerably depending on the
of country of origin France, and product group under consideration
Italy and attempts to identify overall
Fruit and vegetables: stereotypes applicable to all product
France, UK, Italy, groups can be misleading
and Spain
(Continued)

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literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1988) Al-hammad To investigate Saudi Carpets, air- USA, UK, Japan, Saudi Industrial 300, NA S Price was the most important factor
Arabian economic and conditioners, cars, W. Germany, Arabia buyers and 193
and cultural factors design of outerwear, France, Sweden, final
and the attitudes of TVs and refrigerators Belgium, Spain, consumers
the Saudi consumer Malaysia, Hong
and reseller to the Kong, South Korea,
product and its Formosa, and
suppliers China
(1988) Han and To determine the Cars and TVs USA, Japan, USA Adults 150 NA S Source country and brand name did
Terpstra effects of the COO S. Korea, and affect consumers perceptions of
and brand name cues W. Germany product quality
on consumer evaluations
of uninational and bi-
national products, and
estimate the perceived
values of such cues
(1989) Han To examine the role of Cars and TVs USA, Japan, and USA Adults 116 64.8 S Results showed that the country
country image in Korea image can be used in either or both of
consumer evaluations two directions: (1) as a halo construct
of TV sets and cars (2) or as a summary construct
(1989) Thorelli To investigate the AM/FM cassette Japan and Taiwan USA Students 82 62 E COO cue can provide only a limited
et al. relative importance recorder explanation of variance of the product
of COO, warranty evaluation, preference and purchase
and retail store image intention of the respondents when
on product evaluations multiple cues are presented
(1989) Hong and To investigate the Personal computer W. Germany, Japan, USA Students 128 AN E Results supported the hypothesis of
Wyer cognitive process and VCR Mexico, and COO effects
instigated when COO S. Korea
information is given in
conjunction with other
product information
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1989) Papadopoulos To determine COO Foreign + domestic Canada, USA, USA, UK, Adults 300 75 S Results revealed that consumers do
et al. effects from a products Japan, Sweden, Canada, hold stereotypical attitudes towards
transnational and Hungary The Netherlands, different countries
perspective W. Germany,
France, Greece,
and Hungary
(1989) Wall et al. To study the For men: clothing, 19 countries were Canada Adults 635 42 S Men and women used different criteria
perceptions of men shoes, home chosen on the basis when making product evaluation
and women towards entertainment of their importance based on COO. Men appeared to use
product quality in equipment, vehicles, as sources of imports a countrys technological
relation to COO and wine; for women: to Canada development and political orientation
clothing, childrens to form opinions about overall
clothing, vehicles, product quality. Women tended to
and wine use geographic proximity, and specfic
product in order to form product
quality judgements for each country
(1990) Khachaturian To investigate Apparel USA, Italy, S. Korea, USA Adults 153 77 S The less industrialised the COO, the
and consumers quality China, and more the potential decline in the
Morganosky perceptions of Costa Rica quality image
apparel from various
countries
(1990) Han To address the role Cars and TVs USA, Japan, and USA Adults 116 64.8 S Consumer willingness to purchase a
of COO image in Korea product was related to the economic,
consumer choice political, and cultural characteristics
behaviour of the products COO
(1990) Ghadir To investigate Electrical and gas USA, UK, Japan, Jordan Adults 639 63.9 S The COO had a significant relationship
consumers appliances Russia, Romania, with the consumers perception of the
perceptions of quality, Taiwan, Egypt quality, price, and risk of the product
price and risk of
foreign vs. domestic
product
(Continued)

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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1991) Stoltman To investigate the Subcompact cars USA, Japan, USA Students 45 NA S Product familiarity seemed to have a
et al. effects of COO, W. Germany, strong effect on purchase intention
product familiarity and S. Korea only. COO significantly interacted
and consumer with both product familiarity and
ethnocentrism on consumer ethnocentrism
consumer acceptance
of imported products
(1991) McLain and To investigate the US General Foreign products USA Adults 176 NA S Consumers who display strong
Sternquist consumer behaviour: in general ethnocentric tendencies were
do they Buy significantly less likely to buy products
American? made in USA than those who were less
ethnocentric
(1991) Wall et al. To determine the Shirts, telephones, Canada, Hong Canada Adults 40 NA E COO was related to assessment of
effects of COO when and wallets Kong, Italy, product quality, but when it came to
combined with brand S. Korea, Taiwan evaluating purchase likelihood, COO
name and price level and USA seemed not to be important
on consumers ratings
of quality, risk, value,
and likelihood to
buy products
(1991) Cordell To address the effects TVs, microwave ovens, USA, Algeria, India, USA Students 241 NA E Results showed preference biases
on consumer choice bicycles, and telephones Nigeria, and Peru against products from developing
of the COO cue countries
(1992) Lawrence To research the Automobiles Japan, Germany, New Adults 150 56 S COO stereotyping was present in the
et al. New Zealand France, Italy New Zealand car market, and this
consumers attitudes was often a determining factor in the
towards automobiles buying process
made in four different
countries
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1992) Lee et al. To measure the Wall clock and USA and S. Korea USA Adults 106 NA E The results showed that COO cue,
the relative effects personal computer although relatively less important
of price, warranty than price and warranty, was clearly
and COO on consumer significant. Moreover, buy-American
product evaluations and ethnocentric tendencies were also
to examine the significant for both wall clock and
relationship of personal computer
consumers ethnocentric,
nationalistic and similar
attitudes to the
importance that
consumers place on
COO
(1992) Roth and To examine COO in Beer, cars, leather UK, Germany, Ireland, Students 368 NA S Product-country match may be an
Romeo terms of fit between shoes, crystal, Hungary, Ireland, Mexico, indicator of willingness to buy
countries and bicycles, and Japan, S. Korea, and USA imported products; no differences in
product categories watches Mexico, Spain, familiarity with some product
and USA categories (beer and bicycles) across
the respondents of the three countries
(1993) Chao To examine how US TV sets For Assembled In USA Adults 120 NA E Consumers evaluations of design and
consumers would location: Taiwan, product qualities were influenced by
evaluate hybrid Thailand, Mexico; price, country of design and country of
products with a for Designed In assembly. Traditional price-quality
multiple-country location: USA, relationship appeared to be country
designation in terms Japan, Taiwan specific
of product design and
country of assembly
(1993) Kochunny To develop a schema- Cars USA, Japan and USA 393 71- S Consumers possess a COO schema.
et al. based knowledge S. Korea 84 This affects consumers retention of
representation information about cars, as well as
framework in order to their judgement
test the effects of
COO on product
evaluations
(Continued)

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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1993) Chao and To examine how 14 products USA, Japan, USA Students 499 NA E Attitudes of people towards owning
Rajendran ownership of a and Germany imported products have become a
variety of household little more favourable
consumer products
may impact on
interpersonal
perceptions
(1993) Ahmed and To investigate the Automobiles Japan, Russia, Canada and Adults 376 40.1 S The effect of price on perception of
dAstous effects of three COO, Canada and Belgium purchase value was not significant.
three brand names Belgium The brand name was a more important
and three levels of informational cue than made in for
price and service on Belgian consumers, but not for
consumers perceptions Canadian consumers
of the purchase value
of an automobile in
two consuming
countries
(1993) Levin et al. To investigate Automobiles USA and Japan USA Students 71 NA S The results suggested a general
American consumers home-country selection bias
attitude towards
Buy America First
and preferences for
American and
Japanese automobiles
(1993) Olsen et al. To develop a model Clothing Foreign countries USA Adults 243 NA S Results revealed prejudices against
that features a in general imported products and suggested ways
selected set of to market the Buy American theme
influences on
consumers willingness
to buy domestic
products over
imported ones
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1993) Akaah and To investigate via Automobiles USA, Japan, and USA, Turkey, Students 225 NA S The influence of COO was weak
Yaprak conjoint methodology W. Germany and Ghana when it was evaluated as one cue in
the influence of COO an array of product cues
on product evaluations
(1993) Smith To examine the US A piece of cloth and Africa, Latin USA Students 224 NA E A demonstration of some degree of
consumers a wine glass America, Asia regional consumer bias was present.
perceptions and Western Moreover, younger consumers had
towards manufactured Europe more negative product evaluations
goods that were than older people
labelled regionally
(1993) Peris et al. To investigate the Cars, wine, shoes, Germany, UK, UK and Students 270 NA S Over two-thirds in each sample
existence of the personal computers, France, Spain, Spain showed a preference for home-made
influence of COM on fashion clothing, and Italy over foreign products
the image of the and toys
product and
consumers
positive or negative
discrimination
toward such products
made in five countries
(1993) Leifeld et al. To study the effects Telephones, mens Other countries Canada Adults 326 31.26 E In models with more cues present
on relative cue shirts, and womens that export the the relative utility of extrinsic cues
utility of the blouses three products was greater than that of intrinsic
interaction of cues to Canadian cues. Cue types, while affecting
in product choice market choice process, tended to be product
situations in which specific
both the number and
types of both extrinsic
and intrinsic information
cues were varied for
two types of products
(Continued)

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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1994) Ahmed et al. To investigate the Computer system, fax Canada, Mexico, Canada Purchasing 173 14% S Developed countries were better
effects of COO on machine, and ball- and Japan managers evaluated in general than
purchasing managers point pens industrialising countries as locations
perceptions in terms for the design and assembly of
of perceived quality, industrial goods
purchase value and
product profiles:
COD, COA, brand
name, price and
warranty
(1994) Okechuku To investigate (via TVs sets and car TV: Japan, USA, USA, Canada, Adults 430 73 S Developing countries were evaluated
conjoint analysis) radio/cassette The Netherlands, Germany, The unfavourably in terms of source
the relative players and S. Korea; Car Netherlands countries. Familiarity also played an
importance of the radio: Germany, important role in consumers
COO of a product to USA, Canada, and evaluations of such products
consumers Mexico
(1994) Lin and To investigate the Sweaters USA, Italy, Taiwan Taiwan Adults 265 NA E The results of their study supported
Sternquist effects of information the hypothesis of COO effects
cues, COO and store
prestige on Taiwanese
consumers perception
of quality and estimation
of retail price
(1994) Maheswaran To identify consumer Personal computer Japan, Taiwan, USA Students 119 NA E Both experts and novices differed in
expertise and the type and S. Korea their processing of stereotypical
of attitude information information
as moderating the effects
of COO on product
evaluation
(1994) Strutton To examine Automobiles Japan and USA USA Adults 964 NA S American consumers evaluated
et al. US consumers Japanese cars significantly more
views of favourably than their home-made cars
automobiles
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1994) Leclerc To determine the Products with French branding USA Students 266 NA E Foreign branding can be an effective
et al. effects of foreign utilitarian features, means of influencing consumers
branding on product products with hedonic perceptions and attitudes
perception and features and hybrids
evaluation
(1994) Johansson To investigate the role Tractors Russia, USA, USA Farmers 43 NA S COO played an important role in the
et al. of image product Canada, process of product evaluation
country for Russian Germany, Italy,
tractors in the USA and Japan
(1994) Kaynak To examine 24 different airlines USA + other USA Adults 376 62 S Significant differences were found
et al. consumers between the users of domestic and
perceptions of foreign airlines
airlines
(1995) Ahmed and To understand how Computer systems, Canada, Mexico, Canada Households 190; 33.8 S Results showed that newly
dAstous household and fax machines, and Japan and 173 14 industrialising countries were
organisational automobiles,and purchasing evaluated poorly as COA and even
buyers product VCR managers more poorly as COD
perceptions are
affected by knowledge
of the COD and COA
when other information
such as brand name,
price, and warranty
is also available
(1995) Baker and To examine British car Automobiles Japan, Korea, UK Adults 120 NA S The findings demonstrated a home-
Michie drivers perceptions of, Malaysia, and UK country selection bias
and attitudes towards,
four makes of
imported cars
(1995) Good and To determine the 4 identical mens Poland, Russia, Poland Adults 947 NA E Both Polish and Russian consumers
Huddleston ethnocentrism of shirts + 4 identical Germany, China, and Russia preferred their home countrys
Polish and Russian womens sweaters and USA products over foreign ones
consumers

[ 195 ]
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1995) Shaffer and To examine the Legal service USA 30 Adults 122 15 S Perceptions of trust differed among
OHara impact of nationalities people from nations characterised by
nationality on high and low individualism.
perceptions of Differences in ethical perceptions among
ethicality and individuals from high vs. low power
trust towards an distance nations were also found
American service
professional

(1995) Harrison- To investigate the Professional service USA, India, Japan, USA, Japan, Students 223 NA S No clear pattern of same-nationality
Walker* national stereotype of ophthalmology and Spain Spain and bias was found
effects on consumer other
selection of a service nationalities
provider

(1995) Schweiger To examine consumers Goods Europe, USA, and Austria Adults 240 NA S Patriotism has a positive effect
et al. perceptions of the Japan on consumers attitudes towards
quality of nine products labelled Made in Europe
productsMade in
Europe compared to
the quality of goods
Made in the USA
and Made in Japan

(1995) Keown and To measure the Wine 14 countries Northern Adults 210 57 S COO was the most important factor
Casey factors that Ireland for those purchasing wine
influence consumers
behaviour when
purchasing
wine

(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1995) Sharma To identify the Medicine, Domestic and South Korea Adults 125, 9 S Individuals who are open to other
et al. theoretical kitchenware, beef, foreign counties 542 77 cultures are less ethnocentric
antecedents of PC, jewellery, large Females show more consumer-
consumer fridges, liquor, ethnocentric tendencies than males
ethnocentricity and bananas, Consumer-ethnocentric tendencies
effect ethnocentricity insurance, decrease with greater levels of
has on evaluations and golf clubs education and with increasing income
toward importing The impact of consumer-ethnocentric
products tendencies on attitudes toward
importing product towards S. Korea
would be moderated by the perceived
degree of personal and economic threat
imposed by the imported products
(1995) Diamantopoulos To compare British Cars France, Japan, UK and Adults 108, NA S Both British and German consumers
et al. and German consumers Spain and UK Germany 154 hold stereotypical images about
with regard to car different countries and these
purchases images affect the way in which the
countries products are evaluated
(1996) Gudum and To determine Industrial suppliers USA, Japan, Turkey Industrial 105 49 S Results indicated that Turkish
Kavas Turkish industrial Germany, and purchasing industrial purchasing managers
buyers attitudes Turkey managers perceived German and Japanese
towards national suppliers more favourably than US
and foreign suppliers and national suppliers on most of the
marketing quality dimensions (product
quality, timely delivery, source reliability,
communication and after-sales issues)
(1996) Niss To determine to what Foodstuffs, design Domestic products NA Exporters 58 58 S Possibility of using nationality in the
extent Danish goods, and agricultural marketing of Danish products abroad
exporters make use of products
the Danish image in
their export image

[ 197 ]
(Continued)
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[ 198 ]
Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1996) Zhang To study Chinese Shirts, TV sets China, USA, Japan, China Adult 300 NA E Stereotyping was a factor in the
consumers perceptions and S. Korea shoppers product evaluation process of the
of COO images and how Chinese consumers. Products from
such perceptions Japan and the USA were preferred to
influenced their product those from South Korea
evaluation, attitudes and
product choices
(1996) Tse et al. To investigate the TV Hong Kong, Hong Kong Households 286 63.3 S COO significantly affects consumers
impact of country Germany, Japan, intention to purchase the product
of origin on the and S. Korea
behaviour of Hong
Kong consumers
(1996) Wetzels Investigated the Public transport by Different countries The Adults 175 NA S A consumers ethnocentric tendencies
et al. Dutch consumers bus, banking services, Netherlands toward services is negatively
ethnocentrism express delivery correlated with cultural openness
to ten different services, air travelling, (individuals who are more open to
kinds of services travel agencies, other cultures are less consumer
provided in railroad services, ethnocentric toward services), and
The Netherlands telecommunication, positively correlated with
mail services, patriotism, conservatism, collectivism
medicine supply, and and age.
public utilities such as Consumers with higher educational
gas and electricity level have less ethnocentric
tendencies toward services
(1997) Al-Sulaiti To investigate Qatari 3 different categories From different Qatar Teachers 324 75.3 S COO affected the intentions of flying
and Baker* consumers of airlines (Gulf, Arab locations of the with domestic or a foreign airline
perceptions and non-Gulf, and foreign world
selections of airlines)
domestic vs.
foreign airline
services
(Continued)
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Planning
literature review
Michael J. Baker
Khalid I. Al-Sulaiti and

16/3 [1998] 150199


Marketing Intelligence &
Country of origin effects: a

Reference Country Respondent


Rate Data
Year Author Purpose Product/service Source Consumer Type No. (%) Col. Findings
(1997) Bruning* To examine the 3 airlines services USA, Canada, and Canada Travellers 427 NA S Results indicated that consumers
Canadians Mexico and E who showed strong ethnocentric
national loyalty tendencies were less likely to
and the country prefer the foreign services
of air carrier in the offered over the national one
selection process
(1997) Thakor and To replicate and Calculator, sunglasses, UK, France, Italy, Canada Students 266 NA E Results indicated that while foreign
Pacheco extend the Leclerc stuffed toy Canada and branding affects product evaluations
et al. (1994) Quebec more than country of origin, the
findings using cultural or multicultural nature of
similar stimuli. See the research context is influential in
Leclerc et al. (1994) determining which brands are seen as
foreign (p.15)
(1997) Bailey and To examine Mexican Agricultural products USA and Mexico Mexico Mostly 400 NA S The upper-income Mexicans prefer
Pineres attitudes towards housewives foreign products, but this was
American imported mediated by age, education and
food products household size

Notes:
Rate = Response rate, Data Col. = Data collection, E = Experimental design, S = Survey, NA = Not available/applicable, * = Service evaluation

[ 199 ]
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