Short answer
Designers and marketers must actively consider and potentially leverage the country-of-origin as a strategic element in product development and market positioning to gain favor with retail buyers.
- Field
- Innovation & Markets
- Source
- International Marketing Review (2017)
- Method
- Quantitative Survey Research
- Sample
- 205 participants
- Evidence
- Strong effect
Retail buyers' decisions to stock new products are demonstrably influenced by the product's country-of-origin, impacting the variety of consumer purchase options. This innovation & markets research insight is drawn from a 2017 study published in International Marketing Review. Using Quantitative survey research with 205 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and marketers must actively consider and potentially leverage the country-of-origin as a strategic element in product development and market positioning to gain favor with retail buyers.
Country-of-Origin Significantly Influences Retail Buyer Product Selection
Retail buyers' decisions to stock new products are demonstrably influenced by the product's country-of-origin, impacting the variety of consumer purchase options.
International Marketing Review · 2017
Key Findings
- 01Country-of-origin has a significant effect on retail buyers' purchasing decisions.
- 02This effect is consistent across both low and high involvement product purchases.
- 03Product typicality enhances the likelihood of purchase, particularly for high involvement goods.
Application
Design takeaway
Designers and marketers must actively consider and potentially leverage the country-of-origin as a strategic element in product development and market positioning to gain favor with retail buyers.
How to apply
When developing a new product, research the existing perceptions of its country of origin among target retail buyers and consider how to either reinforce or mitigate these perceptions through branding and product design.
Project actions
- 01When researching a product, consider its country of origin and how that might affect its reception.
- 02Think about how branding can communicate or counter assumptions about a product's origin.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Empirical testing of a novel theoretical proposition.
- +Use of established scales and robust statistical analysis (SEM).
Limitations
The study's findings might be specific to certain product categories or cultural contexts and may not apply universally.
Reliability & validity
The study utilized established scales and SEM, which are generally considered robust methods for assessing reliability and validity. Composite reliability was tested for construct scales.
Think critically
To what extent do the findings on country-of-origin hold true for emerging economies or for products where the origin is intentionally obscured or ambiguous?
Design Principles
"Country-of-origin is a tangible attribute that can be strategically managed to influence market acceptance."
Understanding how country-of-origin (COO) perceptions shape retail buyer behavior is crucial for product development and market entry strategies. This insight allows businesses to tailor their branding and marketing efforts to resonate with the implicit biases and preferences of gatekeepers in the retail supply chain.
What This Means for Your Design
Where a product comes from matters to the people who buy it for shops, and this can affect what you see in stores.
How to use in your project
- 1.Reference this study when discussing how external factors like country of origin can influence design choices and market success.
- 2.Use the findings to justify research into consumer or buyer perceptions of a product's origin.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that country-of-origin is a significant factor influencing retail buyers' decisions to stock new products, impacting the range of goods available to consumers. This suggests that strategic branding and marketing efforts should consider and potentially leverage the perceived attributes associated with a product's origin to enhance its acceptance within the retail channel.
Source
International Marketing Review
The effect of COO on retail buyers’ propensity to trial new products
journal · 2017
View sourceQuestions About This Research
- What does the research say about country-of-origin significantly influences retail buyer product selection?
- Designers and marketers must actively consider and potentially leverage the country-of-origin as a strategic element in product development and market positioning to gain favor with retail buyers. Evidence: International Marketing Review (2017).
- Why does "Country-of-Origin Significantly Influences Retail Buyer Product Selection" matter for design?
- Understanding how country-of-origin (COO) perceptions shape retail buyer behavior is crucial for product development and market entry strategies. This insight allows businesses to tailor their branding and marketing efforts to resonate with the implicit biases and preferences of gatekeepers in the retail supply chain.
- How can designers apply this research?
- Designers and marketers must actively consider and potentially leverage the country-of-origin as a strategic element in product development and market positioning to gain favor with retail buyers.
- What were the main findings?
- Country-of-origin has a significant effect on retail buyers' purchasing decisions.. This effect is consistent across both low and high involvement product purchases.. Product typicality enhances the likelihood of purchase, particularly for high involvement goods.
- What research method was used?
- Quantitative Survey Research with 205 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2017 journal from International Marketing Review.
- What should I do differently in my next project?
- When developing a new product, research the existing perceptions of its country of origin among target retail buyers and consider how to either reinforce or mitigate these perceptions through branding and product design.
- What are the limitations?
- The study focused on Italian brands, which may limit generalizability to other country-of-origin perceptions. The study did not differentiate between specific product categories beyond 'premium' and 'value'.