Question

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

Answer 1

Answer: There are many important factor considered by consumers in their purchasing decision process.Factors like Product's brand, its various other characteristics and one among them is effect of a product's country of origin on the perception of ''prestige'' on consumers behaviour.This plays a important role in consumers loyalty.

We can understand it via taking example of brand and its products origin for example Samsung is an Korean brand and this country has got expertise in electronics products well known in the world.Hence Smart phones manufactured by this company, are mostly preferred in countries like India and Vietnam.According to reports Most of the people in India preferred Smartphones of samsung when they are "Made in Korea" or "Made in India".

Lets take another dimension , India has border disputes with China and while tension escalate on borders then people in India prefer to boycot "made in china" products in order to harm the country economically.

Although having said that many other factors also plyas important role like price of the product and purchasing capability of consumers.For example a person with limited money will prefer to buy cheap products irrespective of "country of origin".

Hope it helps!