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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 ...