The Image "Made in China" in Manufacturing
In order to provide the Chinese home appliance manufacturers consortium with assistance in achieving their goal of improving the “Made in China” image, our first objective was to accurately define the perception of products that are “Made in China.” In particular, to determine whether or not “Made in China” has a negative connotation in the U.S. marketplace and if so, to better understand the contributing factors to this perception. First, we conducted secondary research consisting of a review of literature and statistical studies. The focus was on the broader topic of a product’s country-of-origin and its effect on the consumer purchase decision process. Second, we focused on the specific impact of “Made in China” on purchase behavior. Third, to gain further insight into the consumer perception of “Made in China” in the home appliances category, we conducted primary research in the form of consumer surveys, retailer interviews and secret shopper studies. Finally, we conducted secondary research on the actions that can be taken to overcome or change a negative country-of-origin image.
Secondary Research
Our secondary research identified several key themes, all of which support the hypothesis that a product’s country-of-origin plays a significant role in the purchase decision process. These findings are summarized below:
Impact of Country-of-Origin (COO) On Consumer Perceptions and Purchase Decision-Making Process:
A number of statistical studies have explored the effect of country-of-origin on consumers’ perceptions of products and how it influences the decision-making process. Studies by Heslop and Papadopoulous (1993, 2000) concluded that COO image is one of the most important influences on decision making for foreign-made products. These studies revealed that buyers evaluate COO using multiple criteria including the country’s level of advancement, the buyer’s feelings about the people of the country and the buyer’s desire to be more closely aligned with the country. In addition, a study by Liefeld and Wall (1987, 1991, 1993) found a positive relationship between product evaluation and the degree of economic development of the COO. Support of these finding was found in a study by Wang and Lamb (1983) in which it was determined that U.S. consumers evaluate products according to the country in which they are produced. Culture, political situation and economic development of the source country were contributing factors to this evaluation criterion.
Further support that COO plays an important role in shaping consumers’ attitudes towards products was found in studies by Hong and Wyer & Nooh, Sa’ari, and Powers (1989, 1999).
How often does one actually consider where a product originates or under what conditions it was produced? While out shopping a consumers main focus is on obtaining the item needed or wanted not selecting merchandise based on the “made in” tag. It is common knowledge that many products are imported from other countries. However, little thought is given to the substandard conditions that workers endure to eke out a living to maintain a poverty stricken existence. In Mardi Gras: Made in China director David Redmon demonstrates the effect globalization and capitalism have on the lives of the owner and workers of a bead factory in China while contrasting the revelry of partygoers in New Orleans. Underpaid, overworked staff toil and live in an inhuman environment, exploited by a boss who demands much for little compensation while profiting greatly, to support themselves and their families.
Characteristics of our society reflect in the outcome of purchasing tendencies. How many of us can honestly say we make a valid effort to purchase goods made in our own country? In our face paced world where both parents are in the work force, raising children, social activities and everything else, who has time to make an effort? Most often, consumers only care about marking off the s...
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
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