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The Relative Effects of Price, Warranty and Country of Origin on Consumer Product Evaluations

Hanjoon Lee, Chankon Kim, Joseph Miller

Open publisher page 38 citations

Abstract

In buying foreign products, consumers base their decisions not simply on a country of origin cue but on trade-offs with price, warranty and other product attributes. This research shows how to measure their relative effects, and exmaines the relationship of consumers' ethnocentric, nationalistic and similar attitudes to the importance that consumers place on country of origin. Export marketing managers in newly-industrializing countries need to recognize that oversease buyers may be sensitive to the country of origin, but that their sensitivity can be enhanced or offset by price or warranty.

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What this paper is about

In buying foreign products, consumers base their decisions not simply on a country of origin cue but on trade-offs with price, warranty and other product attributes. This research shows how to measure their relative effects, and exmaines the relationship of consumers' ethnocentric, nationalistic and similar attitudes to the importance that consumers place on country of origin. Export marketing managers in newly-industrializing countries need to recognize that oversease buyers may be sensitive to the country of origin, but that their sensitivity can be enhanced or offset by price or warranty.

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Available abstract

In buying foreign products, consumers base their decisions not simply on a country of origin cue but on trade-offs with price, warranty and other product attributes. This research shows how to measure their relative effects, and exmaines the relationship of consumers' ethnocentric, nationalistic and similar attitudes to the importance that consumers place on country of origin. Export marketing managers in newly-industrializing countries need to recognize that oversease buyers may be sensitive to the country of origin, but that their sensitivity can be enhanced or offset by price or warranty.

Key concepts: Warranty, Consumer ethnocentrism, Country of origin, Ethnocentrism, Product (mathematics), Business, Marketing, Commerce

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