Do the subcomponents of country of origin trigger purchase intentions? A conceptual model of consumer perceptions

The purpose of this study is to propose a unified model to connect the three subcomponents of the country of origin (COO) with price, quality and consumer perceptions of or intentions regarding a product. COO refers to the country with which a manufacturer’s product or brand is associated. COO can be broken down into three subcomponents: the country of design, the country of assembly and the country of parts.

This study reviews the COO research that has been conducted in recent decades. These studies have primarily examined the correlation of COO’s broken-down components with marketing factors (such as price, quality and brand equity or loyalty) and consumer purchase behavior. These correlations are portrayed in a single model. This theory-building model is drawn using a philosophical conceptualization approach.

This study concludes that, as a result of globalization and advancement in technology, consumers are more aware of and have more access to product/brand information, and they evaluate brands according to the COO and its subcomponents. Variables such as price and quality are of high importance and should be considered during a purchase decision, whereas brand equity/loyalty is of low importance.

This research requires further investigation, especially in developing countries, to develop a more comprehensive picture. In addition, not all marketing factors are incorporated in the model.

When international marketers devise plans to serve consumers, they must consider differentiation between developed and developing nations from the point of COO subcomponents and their effects on purchase intentions and consumer evaluations, when moderated by price, quality and brand loyalty/equity.

Prior to this study, no unified model had been proposed to connect the three subcomponents of COO with price, quality and consumer perceptions of or intentions regarding a product.