Posted in Marketing and Strategy Terms, Total Reads: 267
Definition: Country of Origin (COO)
The country of origin is the country where the goods were produced. The Country of Origin marking on the products is to clearly indicate the buyer where the product was manufactured. Especially in technology products, COO plays a big role in the minds of the consumers. When exporting a product to any country, it is required to put the COO label as per the international trade rules between countries. There is a certain image in the minds of the consumers associated with any country.
The image may be of politics, history, traditions, religions, diversity etc. The image is passed on the product. This is called “Country of origin effect” or “Nationality Bias”. This bias is strongest for the durable and luxury products and low of less involvement products.
Example: India is known as the country where there are many yoga gurus and yoga was originated in India. So if someone from India opens a yoga center in USA, then the people over there will assume that the original and quality yoga positions will be taught there.
On the other hand, if say a high technology product has a tag of COO as India, then people of USA will associate a negative emotion with that product as India is considered below the USA in terms of technology.