Question

How does the effect of a product's country of origin on the perception of product's quality affect customer loyalty? Please explain in more detail.

Answer 1

When consumers were aware of certain country characteristics, they were more inclined to use country of origin as an external cue to assess product quality and guide their purchasing decision-making process. Consumers bestowed on goods manufactured in developing countries a higher assessment of product quality due to the technical developments and dynamic existence of the industries in those countries.

Consumers of some countries favor goods made locally, operated by ethnocentrism and populism. This also identified the obstacles that multinational companies face as they seek ways to outsource their commodity sourcing to foreign countries in an attempt to reduce costs and preserve market competitiveness. Nevertheless, despite the continuing globalization of economies, the country-of - origin impact on the appraisal of product quality and the effects on buying decisions should be neutralised