If a label on a product states "Made in Thailand," and a similar product has a label "Made in Germany," why do consumers consider the latter to be better than the former? What difference does a label make in consumer perceptions?

Question

What will be an ideal response?

Answer 1

In global marketing, consumer perceptions play a very important role. Such perceptions contribute to what is referred to as the "country-of-origin" effect. They become part of a brand's image and contribute to its brand equity. This is particularly true for product categories that are most commonly consumed such as automobiles, electronics, fashion, recorded music, food, and other products. The country of origin effect can be positive or negative. Of course, positive ones add to the brand's image and contribute to its brand equity. For example, Swiss watches, French wines, or Japanese cars are well known. Perceptions are hard to change, and it takes time for perceptions to set. The manufacturing reputation of a particular country can change over time. Korea's image has improved greatly in recent years. It is expected that some national brands developing from Asian countries will have an impact. Sometimes one brand can lead in forming a country of origin affect. Nokia phones, for example, have made Finland popular, and products coming from there will have the quality impression that has been formed by Nokia. Also, recently the "Made in Mexico" image has become popular. For some product categories, foreign products have a substantial advantage for just being foreign. Global marketers should utilize the opportunity to bank on the special qualities of the products which are well known for their country of origin. If a country's manufacturers produce high-quality products that are nonetheless perceived to be of low quality then one has to disguise the foreign origin of the products. In any case, marketers should consider the impact that country of origin has and act accordingly.