Question

international marketing - asap

If a label on a product states "Made in Thailand" and a similar product has a label "Made in Germany," why do consumers consider the latter to be better than the former? What difference does a label make in consumer perceptions?

Answer 1

When it comes to trading of products in the international market, the label "Made in Germany" brings to mind superior quality, better finish and trustworthiness.

The production quality of German products has demanded respect from all over the world. Many surveys also state that German products are known for their world class quality, thus consumers purchase them without any doubt. The Made in Germany label is 130 years old.

The Made in Country index suggests that the German label is considered as the best amongst 52 countries by the consumers in different corners of world.

While earlier, the german products weren't that known for quality but soon after Germany changed this image. The world's best brands like Volkswagen and Lufthansa have come from Germany.

Thus, we can conclude that the place of manufacturing has associated values of quality, trust, brand with it. So, label makes a lot of difference. Germany is known for quality, thus if a product is manufactured in Germany, consumers believe that the product would be of superior quality and will have a long, durable life. It is the goodwill of the nation that makes the difference. For example, if I see a product that is labelled Made in china, my first perception would be that the product is of poor quality, and it would be a big deal if it works for a month or two.

Thus, it is the cultures and values of the place associated with the label. So, consumers have different perceptions.

That's all.

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