The country of origin effect

In 2018, Australian goods and services exports to China increased by 10.3% and 17.2% respectively.1 China’s demand for Australian products is high, with 84% of online Chinese shoppers likely to purchase an Australian product.2 China is not the only country to consider Australian products – beef exports to Vietnam increased 112% in the year leading up to October 2018,3 and the Middle East North Africa region has high demand for Australian-produced food and beverages.4 One reason for the high demand of Australian-branded products is the country of origin effect, where consumers evaluate products based on prior perceptions of the country the product was produced in.

Why should brands promote country of origin?

The country of origin effect can positively influence consumer perceptions of a product. For example, attributes of Australia such as healthy and clean have become associated with Australian produce such as health supplements and fresh produce. However, unfavourable attributes can negatively affect product evaluations. For example, Dekhili and Achabou found that while a country of origin with a favourable ecological image has no effect on ecolabelled product evaluations, a country of origin with an unfavourable ecological image negatively influences product evaluation.5

Additionally, country of origin effects go beyond a product category and can even effect brands. Newman and Dhar found that products manufactured in a brand’s original factory are perceived to be more authentic than identical products manufactured in an alternate factory – they develop a contagion, or a special kind of aura, that influence product perceptions.6

How have brands invoked country of origin perceptions?

There are a number of ways brands can invoke country of origin perceptions.7 Logos such as the Australian Made logo act as a guarantee that brands are produced in Australia. Brands such as Singapore Airlines have embedded their country of origin into their name, making it clear where the brand is from. In addition to overt country of origin strategies, other more subtle ways brands can invoke these perceptions include using symbols typically associated with the country. For example, famous celebrities such as Hugh Jackman or landmarks such as the Sydney Harbour Bridge could be used to invoke country of origin perceptions of Australia.

  1. Laurenceson, J. (2019). Source.
  2. Power Retail. (2017). Source.
  3. Meat and Livestock Australia. (2018). Source.
  4. Saudi Gazette. (2017). Source.
  5. Dekhili, S, and Achabou, M. A. (2015). The influence of the country-of-origin ecological image on ecolabelled product evaluation: an experimental approach to the case of the European ecolabel. Journal of Business Ethics, 131(1), 89-106.
  6. Newman, G. E. and Dhar, R. (2014). Authenticity is contagious: brand essence and the original source of production. Journal of Marketing Research, 51(3), 371-386.
  7. Aichner, T. (2014). Country-of-origin marketing: A list of typical strategies with examples. Journal of Brand Management, 21(1), 81-93.