Country‐of‐manufacture effects for known brands

Abstract

This paper examines the differential effects of country‐of‐manufacture information on product beliefs and attitudes for brands with different levels of brand equity. Results show that when there is congruence between brand origin and country of manufacture (e.g. a Sony television that is made in Japan), the latter information has no significant effect on product beliefs and global product attitude. When country‐of‐manufacture information indicates that a branded product is made in a country with a less reputable image than that of the brand origin (e.g. a Sony television that is made in Mexico), the information produces more negative effects on product evaluations for low equity brands than high equity brands. These results can be attributed to two different perceptual processes through which incongruent country‐of‐manufacture information affects product evaluations for brands with different levels of brand equity.

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