Are Young Consumers Still Susceptible to the Country-of-Origin Effect?

Alexander Josiassen

doi:10.15209/jbsge.v4i2.160

Abstract

The effect that consumers’ country-related images have on their purchase decisions is known as the country of origin effect. Marketing researchers have thoroughly investigated Country-of-Origin (COO) effects in a range of contexts since the mid-1960s. However, since the 1980s it has been thought (e.g., Levitt 1983; Ohmae 1995) that consumer needs and wants are converging and that nation-states are artificial and superficial entities of little value to consumers indicators of product quality. The argument is that since young consumers are used to seeing products from a variety of countries they do not have the country biases that the COO effect stipulates (Usunier 2006). A recent study (Wong et al. 2008) on young Chinese consumers and the COO effect appears to confirm that young consumers are no longer influenced by the COO effect. The aim of this research was to conceptually investigate how the relationship between young consumers’ product-country image and their product evaluations is influenced by two contextual variables: their product involvement and their perceived product-origin congruency.

Highlights

American Coca-Cola and IPod, Mexican Corona, and Australian Billabong are all examples of companies that appeal to a global youth culture while celebrating their national heritages
Prominent researchers have even suggested (Levitt 1983; Ohmae 1995) that consumer needs are converging and that younger consumers ignore regional and national differences. This perspective is supported by recent insights investigating the COO effect in the context of young Chinese consumers: “In targeting young consumers it appears that globalization leads consumers to believe that the world is converging and becoming one ‘country’” (Wong, Polonsky and Garma 2008, p. 469)
Young consumers (18-26 years of age) have a tendency towards higher product involvement than older consumers do (Strizhakova, Coulter and Price 2008) and the present study suggests that a differential effect of product involvement can be confirmed among young consumers

Summary

Introduction

American Coca-Cola and IPod, Mexican Corona, and Australian Billabong are all examples of companies that appeal to a global youth culture while celebrating their national heritages. Researchers have traditionally been interested in the influence of product involvement (Ahmed, Johnson, Yang and Fatt 2004; d'Astous and Ahmed 1999) and in recent years it has been suggested that perceived product origin incongruence may significantly reduce the importance consumers place on the COO cue (Chao 2001) The influence of these moderators, on young consumers’ purchase behaviour is unclear. Prominent researchers have even suggested (Levitt 1983; Ohmae 1995) that consumer needs are converging and that younger consumers ignore regional and national differences This perspective is supported by recent insights investigating the COO effect in the context of young Chinese consumers: “In targeting young consumers it appears that globalization leads consumers to believe that the world is converging and becoming one ‘country’”

Conceptual Background

The introduction of the animosity construct

Product Involvement

Product Origin Congruency

Discussion

Practical Implications and Future Research