2015•RePEc: Research Papers in EconomicsRequires access

Country-Of-Origin Effects On Purchasing Domestic Products: The Case Of Romania

Roxana-Denisa G. STOENESCU, Gabriela Căpățînă

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Abstract

Previous studies revealed that ethnocentric consumers are more willing to purchase a domestic product. Furthermore, country-of-origin has a direct impact on consumers’ decision to buy a product in such a manner that a positive country image can substitute other missing qualities of the product. On the other hand, a strong brand is not expected to compensate for a negative country-of-origin perception. Many brands rely on their home country as a warranty for quality and prestige, in order to gain consumers’ interest and attention. This paper examines the moderating role of variables such as perceived quality, ethnocentrism and familiarity in determining a consumer to buy a domestic product. Through exploratory research, this study aims to investigate to what extent Romania, as country-of-origin for its local products, influences consumers’ decision making process. The major contributions of the study consist of identifying the elements that play a role in consumers’ product evaluation based on the country-of-origin and to improve the understanding of country image effects on the buying intention.

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Previous studies revealed that ethnocentric consumers are more willing to purchase a domestic product. Furthermore, country-of-origin has a direct impact on consumers’ decision to buy a product in such a manner that a positive country image can substitute other missing qualities of the product. On the other hand, a strong brand is not expected to compensate for a negative country-of-origin perception. Many brands rely on their home country as a warranty for quality and prestige, in order to gain consumers’ interest and attention. This paper examines the moderating role of variables such as perceived quality, ethnocentrism and familiarity in determining a consumer to buy a domestic product. Through exploratory research, this study aims to investigate to what extent Romania, as country-of-origin for its local products, influences consumers’ decision making process. The major contributions of the study consist of identifying the elements that play a role in consumers’ product evaluation based on the country-of-origin and to improve the understanding of country image effects on the buying intention.

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Available abstract

Previous studies revealed that ethnocentric consumers are more willing to purchase a domestic product. Furthermore, country-of-origin has a direct impact on consumers’ decision to buy a product in such a manner that a positive country image can substitute other missing qualities of the product. On the other hand, a strong brand is not expected to compensate for a negative country-of-origin perception. Many brands rely on their home country as a warranty for quality and prestige, in order to gain consumers’ interest and attention. This paper examines the moderating role of variables such as perceived quality, ethnocentrism and familiarity in determining a consumer to buy a domestic product. Through exploratory research, this study aims to investigate to what extent Romania, as country-of-origin for its local products, influences consumers’ decision making process. The major contributions of the study consist of identifying the elements that play a role in consumers’ product evaluation based on the country-of-origin and to improve the understanding of country image effects on the buying intention.

Key concepts: Country of origin, Ethnocentrism, Consumer ethnocentrism, Product (mathematics), Purchasing, Prestige, Business, Quality (philosophy)

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