Does country-of-origin matter? A comparison study of the advanced vs. emerging and developing economies

This paper identifies and explores whether the customers from advanced and emerging and developing economies have different perceptions towards country-of-origin of international branded clothes. It has been suggested that country-of-origin is commonly used by customers to predict a products quality and performance and to understand the rationality of their purchasing behaviour (Cai, Cude & Swagler 2004; Olins, 2004; Muchbalcher, Dahringer & Leihs, 1999). Products made in the advanced economies are often perceived to be more credible and appealing than products made in emerging economies (Anholt, 2006; Darling & Kraft, 1977; Usunier & Lee, 2005). However, cheaper production costs and a greater ability to outsource the manufacture of products has led made more and more international companies to source their products in emerging and developing countries (Gereffi & Memedovic, 2003). This phenomenon is the main reason for exploring whether customers in advanced and emerging and developing countries have different perception towards country-of-origin.