The effect of country of origin on product evaluations shows that consumer perceives products made in developed countries to be of higher quality. Consumers always link between the product and how much the COO had experience in producing this type of the product. There are different reasons, like offshore outsourcing of manufacturing to emerging countries has changed the perceptions, of consumers based on the country of design, country of parts, and country of assembly., Man y ‘factors affect this change in perception of consumer. This change varies, according to demographics, psychographics, and social and economic factors from the developed to emerging
Factors related to COO affecting the brand image
There are several factors affecting the image of the country of origin.
- The COO image (political economic development) and degree of industrialization
- Experience of the COO in the product category
1. The COO image (political economic development) and degree of industrialization
It was suggested that product perceived quality relates positively to the perceived country of origin image due to these aspects (political- level of economic development).
The more the country is developed in these aspects, the better the brand image of the product will be, the level of development generally and in industries specifically it was found that information about the country of origin is of more importance to consumers than price and the brand when evaluating and comparing the quality of products from certain developed countries.
2. Experience of the COO in the product category
The consumers may extend beyond the country image, as they will tend to associate a product category with a country. If there is a logical connection between the country and the product category. E.g. Consumers tend to associate the high quality electronic products to country like japan
So if the country of origin is divided into manufactory and designing ones there should be a fit between them. As consumers will be confused about quality. This happened when Nike started out sourcing the manufacturing in Vietnam.
This consistency will make the product avoid conflict in perceiving the quality by consumer.
Customers- when they come to assess the brand and build a quality perception-they are directed to the skill, resources, and ability to produce higher quality products in many countries. For example, Japan is famous for their hi-tech products versus Italy who is known for the fashion industries.
Studies were conducted in south Africa after the opening of its market to global competition and in Japan, studies were focused on electronics market. According to the results, many consumers preferred products from developed countries, such as Europe and the United states, because of the belief that these products are of higher quality. Consumers in south Africa believed that Americans and Europeans were very concerned with beauty and image and therefore apparel and other wearable goods would be manufactured to the standards required by these consumers. This concept of that developed countries manufacture better quality products was based on the country’s image in the minds of consumers.
The degree of industrialization how much the country have experience in being industrial and how much time they experience this field of industry. It appears when consumer’s old vision about Japan being automotive manufacturer 30 years ago and nowadays perception. Also the comparison between Japan and Korea also that between China and Korea.