Country of origin factors influencing US consumers' perceived price for multinational products

Abstract

Purpose In response to the popularity of multinational products with limited information on countries of origins, this study aims to explore factors influencing consumers' perceived prices for multinational products. Design/methodological approach The study performed a 2 (COP)×2 (COM) within‐subjects randomized experimental research, using the USA and China as the countries of parts (COP) and the countries of manufacturing (COM) for cotton apparel. A total of 77 US consumers participated. Hierarchical multiple regression analyses were performed. Findings Consumers' income level was important for perceived prices on apparel products made in the USA and/or of US cotton. Expertise was also important for higher pricing of apparel made in the USA of US cotton, while familiarity with COO labeling laws negatively affected perceived prices when apparel was made in China. Perceived sustainability had the largest impact on consumers' perceived prices for apparel made in the USA of Chinese cotton. Research limitations/implications The study used a limited sample size and the data were collected through experimental studies. Generalization must be done with caution. Practical implications Apparel businesses may want to declare COP, if this country could provide cues to high quality, high price, or excellent design. Apparel businesses that would like to promote US products may want to target those who have a high sense of self‐efficacy and educate consumers with COO labeling rules and regulations. Originality value The findings offer significant factors affecting consumers' perceived price on multinationl products, providing business practice recommendations surrounding COP and COM.