Country-of-origin fit: When does a discrepancy between brand origin and country of manufacture reduce consumers' product evaluations

Abstract

Country of origin (COO), which may refer to where a brand is based (brand origin) or where a product is manufactured (country of manufacture), is an important cue consumers consider when evaluating products. For products offered by bi-national or multi-national brands, brand origin and country of manufacture are often different, and we assert that this difference can act as a source of ambiguity that reduces consumers' product evaluations. We refer to this consistency or lack of consistency between brand origin and country of manufacture as COO fit. In two studies, we demonstrate that a lack of fit between brand origin and country of manufacture can reduce consumers' new product evaluations, even when the brand origin and country of manufacture are equally capable. In the first study, we establish this effect and show that it is moderated based on consumer traits. In the second, we identify brand positioning strategies that can shield brands from the ill effects of a lack of COO fit.