Country of Origin Effect

6391 Words Mar 18th, 2011 26 Pages
Effects of Individual and Product-specific Variables on Utilising Country of Origin as a Product Quality Cue by Effects of Individual and Product-specific Variables
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Received November 1987 Revised March 1988

Sevgin A. Eroglu
Georgia State University, and

Karen A. Machleit
University of Cincinnati To date, considerable research effort has been made to determine whether country of origin affects consumers' product evaluations. Previous studies in industrial (for example White, 1977; White and Cundiff, 1978) and consumer buying (see for example, Andersen and Cunningham, 1972; Lillis and Narayana, 1974; Gaedeke, 1973; Han and Terpstra, 1988) have shown the country of origin to be a salient cue in buyers' evaluations of product quality.
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A cue is defined as a characteristic or dimension, external to a person, that can be encoded and used to categorise a stimulus object (Schellinck, 1983). Some examples are colour, size, price, brand name and country of origin. Any object can be associated with numerous potential cues, the perception and interpretation of which will differ among individuals and situations. Thus, it is essential to devise some means to categorise and describe cues such that the determinants of choice among the different types of cues can be studied. Consumer behaviour is one field which has dealt with cues in a context relevant for the purpose of this study. Cues and their properties have been recognised by consumer behaviour researchers albeit under different labels. Originally Cox (1962) suggested a conceptual cue model consisting of two cognitive dimensions: cue predictive value and cue confidence value. In an extension of this work Olson (1972) developed a comprehensive cue model whereby any

product cue can be described in terms of three variables: the two subjective Effects of dimensions proposed by Cox (predictive and confidence value) and, in addition, Individual and a dichotomous classificatory variable (cue intrinsicness versus extrinsicness). Cue Product-specific predictive value (PV) is the degree to which