Branded there, made here? How country equity influences fashion product consumers in China

Abstract

ABSTRACT After decades of globalization, more and more products are made in a country different from the initial country of origin of the brand name associated with the product. As consumers evaluate brands, does it matter if a product is made in the same country as from its initial origin? In this study, we intend to address this question by examining the impacts of country equity (CE) on consumer psychology, in the context of China’s fashion market. Specifically, this study aims to (1) examine the impact of CE on Chinese consumers’ perception and purchase intention of “Made in USA” products; and (2) identify potential China’s market for “Made in USA” products. A series of hypotheses are developed and empirically tested. Among our major findings, Chinese consumers show significantly higher purchase intention, perceived quality, and perceived price for “Made in USA” products than “Made in China” products with the same brand name. Also, Chinese consumers’ CE of the US significantly affect their purchase intention, perceived quality, and perceived price of “Made in USA” products. In addition, we identify the target market characteristics of “Made in USA” products in China. The study adds to a comprehensive understanding of CE in the global market.