Short answer
When designing and marketing products for international markets, actively manage and communicate the country of origin, aligning it with positive economic perceptions where possible.
- Field
- Innovation & Markets
- Source
- Journal of Indonesian Economy and Business (2015)
- Method
- Survey
- Sample
- 307 participants
- Evidence
- Strong effect
Consumers' perception of a product's country of origin strongly affects their evaluation, particularly when considering the economic development associated with that country. This innovation & markets research insight is drawn from a 2015 study published in Journal of Indonesian Economy and Business. Using Survey with 307 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing and marketing products for international markets, actively manage and communicate the country of origin, aligning it with positive economic perceptions where possible.
Country of Origin Significantly Influences Product Evaluation, Moderated by Economic Perception
Consumers' perception of a product's country of origin strongly affects their evaluation, particularly when considering the economic development associated with that country.
Journal of Indonesian Economy and Business · 2015
Key Findings
- 01Consumers positively associate a product's country of origin with their evaluation of it.
- 02Consumers consider the economic development of the country of origin when evaluating products, with a stronger effect for products from economically developed countries (e.g., Korea) compared to less developed ones (e.g., Indonesia).
- 03Product familiarity did not significantly alter product evaluation based on country of origin.
Application
Design takeaway
When designing and marketing products for international markets, actively manage and communicate the country of origin, aligning it with positive economic perceptions where possible.
How to apply
When introducing a product into a new market, research the prevailing perceptions of your country of origin and that of competitors. Use this insight to shape branding, marketing, and product positioning.
Project actions
- 01When researching a product, consider how its origin might influence user perception.
- 02If your design project involves international markets, investigate the cultural and economic associations with different countries of origin.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Investigates multiple moderating factors (familiarity, involvement).
- +Uses a relevant product category (high involvement) and market context.
Limitations
This study's findings may not apply to all product types or all consumer demographics. The specific economic perceptions of Indonesia and Korea might be unique.
Reliability & validity
The study used regression and moderated regression analyses, which are appropriate statistical methods for testing these relationships. The sample size of 307 provides a reasonable basis for generalization within the studied population. However, the specific context of Indonesian consumers and Korean/Indonesian products may limit external validity.
Think critically
How might the increasing globalization and the rise of multinational corporations blur the lines of 'country of origin' in consumer perception, and what are the implications for this research?
Design Principles
"Leverage country-of-origin as a strategic cue in product evaluation, informed by the perceived economic standing of the origin country."
Understanding how consumers perceive the origin of a product is crucial for market positioning and branding strategies. Designers and marketers can leverage positive country-of-origin associations or mitigate negative ones by strategically communicating product attributes and manufacturing locations.
What This Means for Your Design
Where a product comes from matters a lot to people when they decide if they like it, especially if they think that country is rich or poor.
How to use in your project
- 1.Reference this study when discussing how brand perception and market entry strategies are influenced by external factors like country of origin.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that the country of origin significantly impacts consumer product evaluation, often linked to perceptions of economic development. This suggests that for design projects targeting international markets, understanding and strategically managing the country of origin narrative is crucial for shaping consumer perception and driving purchasing decisions.
Source
Journal of Indonesian Economy and Business
THE IMPACTS OF COUNTRY-OF-ORIGIN, PRODUCT INVOLVEMENT, AND PRODUCT FAMILIARITY ON PRODUCT EVALUATION
journal · 2015
View sourceQuestions About This Research
- What does the research say about country of origin significantly influences product evaluation, moderated by economic perception?
- When designing and marketing products for international markets, actively manage and communicate the country of origin, aligning it with positive economic perceptions where possible. Evidence: Journal of Indonesian Economy and Business (2015).
- Why does "Country of Origin Significantly Influences Product Evaluation, Moderated by Economic Perception" matter for design?
- Understanding how consumers perceive the origin of a product is crucial for market positioning and branding strategies. Designers and marketers can leverage positive country-of-origin associations or mitigate negative ones by strategically communicating product attributes and manufacturing locations.
- How can designers apply this research?
- When designing and marketing products for international markets, actively manage and communicate the country of origin, aligning it with positive economic perceptions where possible.
- What were the main findings?
- Consumers positively associate a product's country of origin with their evaluation of it.. Consumers consider the economic development of the country of origin when evaluating products, with a stronger effect for products from economically developed countries (e.g., Korea) compared to less developed ones (e.g., Indonesia).. Product familiarity did not significantly alter product evaluation based on country of origin.
- What research method was used?
- Survey with 307 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from Journal of Indonesian Economy and Business.
- What should I do differently in my next project?
- When introducing a product into a new market, research the prevailing perceptions of your country of origin and that of competitors. Use this insight to shape branding, marketing, and product positioning.
- What are the limitations?
- The study focused on televisions as a high-involvement product and did not explore other product categories or levels of involvement. Product familiarity did not moderate the effect of country of origin.