Exploring Determinants of Country of Origin and Product Category on Perceived Value and Satisfaction: Comparison Analysis of the Newly Emerging vs. Developed Country

Abstract

While the sustainable growth of newly emerging economics is increasing, how customers perceive the product made in the newly emerging country remains an important consideration. The purpose of this study is to investigate determinants of the country of origin effects by comparing perception on made in the newly emerging and developed country. Study 1 and Study 2 examined determinants of the country of origin effects by considering the moderating role of the product categories based on i) utilitarian vs. hedonic and ii) the perceived degree of the risk. Study 1 applied the perceived acquisition value (PAV) and the perceived transaction value (PTV) to measure the country of origin effects, while Study 2 investigated the effects of the country of origin on customer satisfaction by controlling the effects of a covariate of attitude. This study applied empirical analyses that utilize the factorial Multivariate Analysis of Variance (factorial MANOVA) for study 1and factorial Analysis of Covariance (factorial ANCOVA) for study 2. This study proposes a policy recommendation regarding which product categories should the manufacturing industries of those countries focus in effort to ensure the sustained growth of their economies. This study also provides a managerial implication in that the policy makers of these countries should investigate in minimizing the display of the country of origin information on these products to benefit from greater value added from manufacturing products from such categories, given the intersection between the products without country of origin information and the products from a developed country in study 2 indicating that the undetermined order of consumer satisfaction resulting from the country of origin effects.