Rzayeva_Sabina-Rzayeva-Sabina-533383-Literature-review-draft

1. Introduction

The global marketplace is defined by an expanding tendency toward cross-border commerce, which
exposes customers to items from many nations. Understanding the implications of the COO on customer
behavior is critical for global firms, marketers, regulators, and politicians. It may give a
competitive edge, guide marketing efforts, and help safeguard consumers. The issue of the impacts
of country of origin (COO) on consumer behavior stems from the growing tendency toward cross-border
trade and market globalization. Consumers are presented with an unlimited number of options and
must make choices about which things to purchase. COO has evolved as an essential indication that
customers use to assess items and make purchasing decisions in this setting. COO effects have been
studied over time and in different geographical regions, including developing as well as developed
nations. I am aiming to investigate the effects of country of origin on consumer behavior by
examining the impact of COO on consumers' perceptions of product quality, brand image, and purchase
intention.

2. Literature review

The COO effects are based on the attribution hypothesis, which states that customers infer product
features based on the COO. According to this idea, consumers have particular attitudes and
expectations about products from other nations, which they use to assess the quality,
dependability, and safety of items. Consumer views concerning the brand, purchasing intent, and
loyalty may all be influenced by the COO.
The nation-image theory claims that customers have cognitive and emotional representations of
different countries that influence their perceptions and assessments of items from those countries.
Cultural heritage, economic progress, political stability, and environmental quality may all
contribute to a country's image.

The empirical research on COO effects has produced mixed and sometimes contradictory results. Some
research discovered substantial and persistent COO effects, while others discovered weak or
non-existent COO effects. The differing results in the findings can be attributable to a variety of
reasons, including methodological deviations, cultural differences, and product category
differences.

For example, a study by Han and Terpstra (1988) found that the COO had a significant effect on
consumers' evaluations of product quality, brand image, and purchase intention in both the US and
Korea. Another study by Liefeld and Heslop (1997) found that COO effects were stronger for
high-involvement products such as automobiles and electronics, compared to low-involvement products
such as food and beverages.

On the other hand, some studies have found weak or non-existent COO effects. For instance, a study
by Johansson et al. (1985) found that the COO had little effect on consumers' evaluations of
product quality and purchase intention in a sample of US consumers. Similarly, a study by Verlegh
and Steenkamp (1999) found that COO effects were weaker for products that were associated with
strong brand names and reputations.

The study by Etuk and Udonde (2022) employs a quantitative research design and collects data
through a survey questionnaire administered to a sample of 250 Nigerian elites. The findings
suggest that COO significantly influences consumers' purchase behavior regarding imported fashion
products, with consumers exhibiting a higher preference for products from countries with a positive
image and reputation. The study also found that the brand image and quality of the product were
more critical factors in consumers' purchase decisions than the COO. However, the study has some
limitations, including the small sample size, limited scope of the study, and the use of a single
method of data collection. Additionally, the study does not address the influence of cultural
factors on COO effects, which could affect consumers' purchase behavior.

According to Hu et al. (2008), study adopts a quantitative research approach and collects data from
320 Chinese customers via an online poll. According to the data, COO has a considerable impact on
Chinese consumers' wine purchasing behavior, with French wines having the most influence on
customers' purchase decisions. The survey also discovered that perceived wine quality and price
were the most critical variables in customers' purchasing decisions, with the COO having a less
substantial but still noteworthy influence.

T. Shokeen and P.K. Bhoyar's (2023) study offers information about the impact of COO on Indian
customers' purchases of imported cosmetics and skincare items. According to the report, COO has a
considerable impact on Indian customers' purchasing decisions, with people choosing items from
nations with a positive image and reputation. The study emphasizes the relevance of price and
quality in customer purchasing decisions, but it also has significant flaws that should be
addressed in future research. Overall, this study provides significant data for cosmetics and
skincare product makers and marketers looking to understand and influence the purchasing habits of
Indian consumers.

3. Conclusion

In conclusion, the effects of country of origin on consumer behavior are an important area of
research with implications for marketers and policymakers. The existing literature provides
evidence of COO effects on various aspects of consumer behavior, including product evaluations,
brand image, purchase intention, and loyalty. However, the mixed and sometimes contradictory
findings highlight the complexity and multifaceted nature of this topic.

4. Resources:

Han, C. M., & Terpstra, V. (1988). Country-of-origin effects for uni-national and bi-national
products. Journal of International Business Studies, 19(2), 235-255.

Johansson, J. K., Douglas, S. P., & Nonaka, I. (1985). Assessing the impact of country of origin on
product evaluations: A new methodological perspective. Journal of Marketing Research, 22(4),
388-396.

Liefeld, J. P., & Heslop, L. A. (1997). The impact of country of origin on the evaluation of high-
versus low-involvement products: An empirical study. Journal of International Consumer Marketing,
9(2), 91-115.

Etuk, A., & Udonde, U. (2022). The Effect of Country-Of-Origin On Consumer Purchase Behaviour Among
Nigerian Elites: A Study of Imported Fashion Wears. British Journal of Marketing Studies. 10,
12-36. https://doi.org/10.37745/bjms.2013/vol10n61236

Hu, X., & Li, L., & Xie, C., & Zhou, J. (2008). The effects of country-of-origin on Chinese
consumers' wine purchasing behaviour. Journal of Technology Management in China. 3(3), 292-306.
https://doi.org/10.1108/17468770810916195

Shokeen, T., & Bhoyar P.K. (2023). Effects of Country of Origin on Imported Cosmetics and Skincare
Products in India. CARDIOMETRY. 633-644. https://doi.org/10.18137/cardiometry.2022.25.633644