Consumer Perception of Product Quality and the Country-of-Origin Effect¹

TLDR

The study surveys consumer attitudes toward local versus foreign products, assessing the country‑of‑origin effect in buy‑local campaigns and its relative importance to other product attributes. Researchers surveyed consumers across multiple product categories while holding brand name and price constant to examine how country of origin influences choice. Results show that country of origin is a weaker determinant than quality and price, yet when these factors are equal, a locally made label boosts preference, with consumers perceiving quality differences based on origin.

Abstract

Consumer attitudes to local and foreign products and the likely “country-of-origin” effect in “Buy Local” and “Made In …” campaigns are surveyed. First, the importance of country of origin in relation to other product attributes is considered. Second, country of origin is assessed as a surrogate indicator of product quality. Third, the likely effect of country of origin on consumer choice across a range of product categories is studied with brand name and price held constant. Across the product categories studied, respondents rated country of origin as significantly less important as a choice determinant than product quality and price. In addition, clear country-of-origin effects are identified. Consumers rate products as being of significantly different quality when the only variation between products is stated country of origin. Further, consumers express a marked preference for locally made products when price, technical features, and brand name are invariant, and where the locally made product is perceived to be superior or, at least, not significantly inferior to an overseas-made product. Where the locally made product is perceived to be of inferior quality to the imported product, consumers generally prefer an imported product. Thus, while consumers rate country of origin after product quality and price, when these other factors are equivalent, the fact that the product is promoted as locally made is a positive influence on product choice.