Crossing the Chasm of Country of Origin Effects for the Newly Emerging Country

Abstract

The purpose of this study is to investigate determinants of the country of origin effects by comparing perception on Country of Origin (COO) effects of the newly emerging and developed country. This study examined determinants of the country of origin effects by considering the moderating role of the product categories based on i) utilitarian vs. hedonic and ii) the perceived degree of the risk. Study 1 applied the perceived acquisition value (PAV) and the perceived transaction value (PTV) to measure the country of origin effects, while Study 2 investigated the effects of COO groups and product category on the consumer satisfaction with interaction effects between the COO groups and satisfaction. This study proposes a strategic recommendation regarding which product categories should the manufacturing industries of newly emerging countries focus in effort to ensure the sustained growth of their markets. This study also provides a managerial and policy implication on COO information on satisfaction associated with product categories and perceived risks.