"Made In Italy" Brands in the U.S. and China: Does Country of Origin Matter?

Abstract

The purpose of this paper is to examine the relationship between brand and country of origin (COO) from the perspective of a company. In particular, this analysis seeks to investigate the role of the brand in relation to country of manufacture and country of brand when the relationship between a given country image and a certain product category is perceived as strong and positive. Employing a qualitative method, the empirical focus of the research is here made up of a sample of 14 Italian SMEs operating with direct investments in the US and Chinese markets. In-depth interviews point out how, particularly in recent years, a positive COO does not represent anymore an adequate base to grow in foreign markets, making investment in a brand necessary despite limited financial resources. Without a strong brand image that has the ability to create a positive association between a product and its country of origin in the consumer’s mind, the COO loses its capacity to develop a distinctive product image in foreign countries.