Country of Origin within the consumers' decision-making process

• Main Authors: Schneller, Benedikt, Swanson, Jake James
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Företagsekonomi 2018
• Subjects: country of origin; decision-making process; high involvement products; information cues; perception.; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-39555

Background Country of origin (COO) has developed over the years and so has the definition, from the manufacturing COO and has now developed more into the COO of the brand. This development has led to a gap in research surrounding COO effects in combination with the decision-making process. Purpose The purpose of this study was to understand and explore which product information cues COO effects, along with how these cues influence the consumer's cognitive decision-making process. Leading to recommendations for companies, of how they can then use these effects in their favour. Method An interpretivism philosophy was used as part of this study, along with an inductive approach. Exploratory research was conducted to analyse the qualitative data during the experimental setting within three focus groups to gather in-depth views and opinions of participants. The research was gathered using convenience sampling, with limitations including the pre-bias participants had surrounding a COO. Findings The three most important information cues were quality, price and brand when it comes to what information consumers need to make a purchase. There is a difference in willingness to pay, perceived brand image and value surrounding COO from the COO experiment conducted between Germany and Poland. Research participants would pay on average 104 Euros more for the same product if it was a German brand over a Polish one. COO effects consumers in both a direct and indirect way, the subliminal use of COO, suggesting that the decision-making process is not completely cognitive. Similarly, consumers do not initially perceive COO as an important factor until it is brought up. However it can be said to be at the back of their minds at all times. It was also suggested that consumers have a ranking of countries within their minds and use it to aid their decision-making process. Consumers want to use the rational (intrinsic) cues (quality, design), however the extrinsic cues (brand, price) were identified as being more important. Conclusion In conclusion it can be said that COO is an important influencing factor on the consumers' decision-making process. COO is a factor effecting and influencing the different information cues which consumers identify as being important to their purchase. COO is seen as an influencing factor continuously effecting information cues, but more specifically price, brand and quality. Brands with 'higher' perceived COO's can thrive under their competitive advantage, whilst brands with a 'lower' perceived COO do not do as well.