Country of origin effects: An Australian experiment in shelf labelling

Abstract

The influence of country-of-origin (COO) on consumers' preferences and purchase choices has been extensively discussed in the marketing literature yet most studies dedicated to this issue have relied on durables purchases. Questionnaire-based surveys have most often aimed to identify the degree to which the COO factor influences purchase intentions, but have in general presented this factor in isolation from other product attributes. The present study attempts to address these limitations by relying on ‘real world’ conditions and exploring COO effects for fast-moving consumer goods (FMCG). For two categories of grocery product, ‘Australian-made’ labels were displayed according to an experimental design over a period of several weeks. No significant effect was found, suggesting that the ‘patriotic’positioning strategy followed by many Australian marketers and retailers is somewhat misguided. These findings also suggest that previous research with durable goods, which supported the existence of COO effects, may not be applicable to the FMCG category where COO effects may be less significant.