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Country-of-origin and private-label merchandise

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Abstract:

This research examines the impact of country-of-origin (COO) perceptions on store brands and store ownership. Online grocery shoppers were subjected to a series of manipulations involving: (a) product type – national brand or store brand; (b) product source – including local or foreign, and culturally close or culturally distant; and (c) store ownership. We find that store brands benefit from being locally sourced, and benefit further if the store is also locally owned, in terms of risk, quality, and value perceptions. If a brand is to be foreign sourced, it is preferable for it to come from a country recognised as culturally close to the seller country. Being the first study to look at the impact of COO effects on store brands, our paper offers insights about how management should take advantage of local sourcing and ownership, or put in place marketing efforts to counter negative COO effects.

Keywords: country of origin; customer perceptions; retailing; store brands

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0267257X.2010.549197

Affiliations: 1: Auckland University of Technology, New Zealand 2: University of Canterbury, New Zealand

Publication date: May 1, 2012

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