COO by Jon Adedipe

Document Sample
COO by Jon Adedipe Powered By Docstoc
					Country of Origin & Impact
on Product Category
Marketing
Vishnu Vallamkonda   0723177
Vikranth Reddy       0745094
Neelkamal Narang     0632406
Manchula Rasendran   0743911
Contents

 Country of Origin Definition

 Key Findings of COO

 Country of Origin Effects

 Product Categories

 Impacts of Country of Origin

 Strategies to cope with COO

 Benefits of Country of Origin

 Conclusion
 SMM 208                          International Marketing
Country of Origin

  •   WHERE A PRODUCT OR BRAND COMES FROM OFTEN INFLUENCES A
      CONSUMER PRECEPTION OF THE PRODUCT




  •   COUNTRY-OF-ORIGIN EFFECT DEALS WITH QUALITY PERCEPTIONS
      OF PRODUCTS.THIS EFFECT DIFFERS BY PRODUCT CATEGORY AND
      QUALITY LEVEL OF THE COUNTRY OF PRODUCTION (JOHNY K.
      JOHANSSON, 2000)
           • country-of-design, country-of-production




  •   COUNTRY-OF-ORIGIN BIAS CUSTOMERS TEND TO OVERSTATE THE
      POSITIVE AND NEGATIVE OF PRODUCT ATTRIBUTES AND THIS CAN
      CAUSE A BIAS TOWARDS PRODUCTS FROM A GIVEN COUNTRY
      (JOHNY K. JOHANSSON, 2000)


 SMM 208                                                International Marketing
Key Findings of COO
  1. Country of Origin (COO) is an important driver of consumer’s product
     preferences depending on their originating factor.


  2. COO label plays a great role in influencing consumer attitudes towards
     foreign products


  3. Product’s national origin’s label- Identifier.


  4. COO effects are not stable: perceptions change over time


  5. COO effects depend on product category


  6. The place of manufacturing is more important than where the company is
     located.
 Source: http://smib.vuw.ac.nz:8081/WWW/ANZMAC2002/papers/pdfs/p050_rahman.pdf

 SMM 208                                                                         International Marketing
Country of Origin Bias and Country of origin Effects
     •     Japan 54%                                             • Iranian pistachios and rugs

     •     China 38%                                             • German Cars

     •     Korea 32%                                             • Columbian Coffee

                                                                 • English Tea
     •     Hong Kong 29%,
                                                                 • Swiss Chocolate
     •     Singapore and Malaysia 22%
                                                                 • French Perfume
     •     Thailand 15%
                                                                 • Chinese Silk
     •     Indonesia 11%
                                                                 • Italian Leather
     •     India 8%
                                                                 • Japanese Electronics
     •     Ethnocentrism in USA
  http://www.warc.com/LandingPages/Generic/Results.asp?Ref=302



 SMM 208                                                                          International Marketing
ROLE OF BRANDS: CULTURAL DIFFERENCES




    JAPAN               USA               EUROPE


    IMAGE               RISK REDUCTION    RECOGNITON/ENVY
    “FEEL GOOD”         TIME SAVER        ACHEIVEMENT
    “EMOTIONAL”         PEER DOMINATION   HIGH ASPIRATIONS
    “BELONGING”                           DISTINCT
    PEER RECOGNITION                      INDIVIDUAL




                                          (JOHNY K. JOHANSSON, 2000)



 SMM 208                                  International Marketing
Country Of Origin as a cue

    Low Involvement Products   High Involvement Products



    Intrinsic Cues             Intrinsic Cues
    1) Taste                   1) Taste
    2) Design                  2) Design
    3) Shape                   3) Shape
    4) Colour                  4) Colour




    Extrinsic Cues             Extrinsic Cues
    • Price                    • Price
    • Brand name               • Brand name
    • Guarantees &Warranties   • Guarantees &Warranties
    • Country of Origin        • Country of Origin



           Low Impact                High Impact
Low Involvement Product Evaluation




 SMM 208                             International Marketing
Product Categories (High Involvement Products)

•    Wines

•    Cars

•    High-fashion clothes

•    Consumer electronics




    SMM 208                                International Marketing
COUNTRY OF ORIGIN IMPACT

      Impact of the Country of Origin is categorically studied under the three
          heads-:

      1.      Cognitive

      2.      Affective and

      3.      Normative


           Two Major Causes for Country of Origin Effect


           1. Social Economic Differences
           2. Consumers Cognitive Bias




 SMM 208                                                    International Marketing
How Does it Work?
Analysis of COO impact on Apparels


                                Country of Origin




                                         Impact
              Halo Effect                           Summary Construct




                            Price, Quality, Style & Fit
Stereotype Perceptions on Apparels

 • In USA Clothing “made in USA” was perceived as having the highest
 quality. Italy was perceived as second highest followed by China, Korea
 and Costa Rica.


 • Canadian consumers held high quality images of Canadian-, U.S.- and
 European-made clothing but were critical of products from low-wage
 countries.

 • Quality perception of designer brands was lowered when made in
 Korea, China, and Costa Rica. But association with Italian apparel neither
 significantly increased nor decreased the quality rating of the designer
 brand.

 •The Italy country image for designer apparel impacted on the evaluation
 of the products.




 SMM 208                                                         International Marketing
Impact of Country of Origin on Apparels in Australia




     Source: http://marketing-bulletin.massey.ac.nz/V2/MB_V2_A4_Patterson.pdf
Strategies to Cope with COO Stereotypes

Country image stereotypes can either benefit or hurt a company’s product

a) Product Policy; Select a brand name that disguises the country-of-origin or
   even invokes a favorable COO

b) Pricing: low or high price

c) Distribution: companies could influence consumer attitudes by using highly
   respected distribution channels

d) Communication



 Source: http://www.allbusiness.com/government/398545-1.html




  SMM 208                                                      International Marketing
Conclusion




 SMM 208     International Marketing
 •   Products and Prejudice: Measuring Country-of-Origin Bias in U.S. Wine Imports ;
     http://papers.ssrn.com/sol3/papers.cfm?abstract_id=421800; Accessed on 12/12/2008.

 •   Country-of-Origin As A Surrogate Indicator: Implications/Strategies;
     http://www.allbusiness.com/government/398545-1.html ; accessed on 12/12/2008.

 •   Consumers' country-of-origin (COO) perceptions of imported products in a homogenous
     less-developed country;
     http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=6F02EC4AB7169297F5407E85ECFE7
     9A8?contentType=Review&contentId=1433043 ; accessed on 11/12/2008

 •   The Effects of the Country of Origin on the Evaluation of products: A State of the Art Review and Research
     Propositions www.geocities.com/WallStreet/Market/4263/COO.pdf ; accessed on 12/12/2008.

 •   Country of Origin; http://en.wikipedia.org/wiki/Country_of_origin ; accessed on 12/12/2008

 •   Domestic Country Bias, Country-of-Origin Effects, and Consumer Ethnocentrism;
     http://www.fearp.usp.br/marketing/artigos/Domestic%20Country%20Bias,%20Country-of-
     Origin%20Effects,%20and%20Consumer%20Ethnocentrism%20-
     %20A%20Multidimensional%20Unfolding%20Approach.pdf ; accessed on 12/12/2008



 •   Consumers' perceptions of the country-of-origin effect on purchasing intentions of (in)conspicuous
     products;
     http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Review&contentId=143
     2166 ; accessed on 12/12/2008


SMM 208                                                                               International Marketing
•Country-of-origin effect in apparel choices: A conjoint analysis;
http://www3.interscience.wiley.com/journal/119982421/abstract ; accessed on 13/12/2008

• The Importance of Product Country of Origin:: A Conjoint Analysis of the United States, Canada, Germany and
The Netherland;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=853351 ;
accessed on 15/12/2008.

• Consumer knowledge and country of origin effects;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=853481 ;
accessed on 13/12/2008

• A dynamic approach to country-of-origin effect;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Review&contentId=1261723 ;
accessed on 12/12/2008.

• Consumer ethnocentrism and attitudes toward domestic and foreign products;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction=lnkpdf&contentId=853694 ;
accessed on 14/12/2008

•Consumers' country-of-origin (COO) perceptions of imported products in a homogenous less-developed country;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Review&contentId=1433043 ; accessed on
14/12/2008

• A less-developed country perspective of consumer ethnocentrism and “country of origin” effects: Indonesian
evidence ; http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=1549863 ;
accessed on 12/12/2008
• Country of origin effects: a literature review;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Review&contentId=1426289; accessed
on 14/12/2008

• The importance of country images in the formation of consumer product perceptions;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=855415 ; accessed
on 14/12/2008

• Integrating country of origin into global marketing strategy: A review of US marking statutes ;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=855444 ; accessed
on 14/12/2008.

• Flexible model of consumer country-of-origin perceptions: A cross-cultural investigation;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction=lnkhtml&contentId=8
55445 ; accessed on 13/12/2008

• Does country of origin matter for low-involvement products?;
http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction=lnkhtml&contentId=8
55558 ; accessed on 13/12/2008.

• Consumer Perceptions of Country of Origin in the Australian Apparel Industry; http://marketing-
bulletin.massey.ac.nz/V2/MB_V2_A4_Patterson.pdf ; accessed on 14/12/2008.

• THE IMPACT OF COUNTRY OF ORIGIN AND CONSUMER ETHNOCENTRISM ON CHINESE CONSUMER mature;
http://www.protagonize.com/story/the-impact-of-country-of-origin-and-consumer-ethnocentrism-on-chinese-
consumer ; accessed on 15/12/2008.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:26
posted:10/22/2010
language:English
pages:21