The Effects of Country-of-Origin on Willingness by Consumers to Pay Term Paper

The Effects of Country-of-Origin on Willingness by Consumers to Pay More for a Favorable Country Image - Term Paper Example Moreover, the authors also seek to draw a level of inference with regards to the overall impact that brand familiarity has on the relationship. As a means of performing such a level of inference into these determinants, the authors set out to perform three separate yet complementary experiments in order to test the hypothesized relationship in a setting of low and high involvement. Ultimately, what can be said concerning this understanding is that consumers are oftentimes willing to pay a premium for commodity prices from a nation that had a favorable country image as compared to one that had a lower level of favorability. In such a way, the reader can see that brand familiarity does not heavily impact upon the COO effect. Conversely, it can and should be understood that the COO effect impacts heavily upon the WTP; especially when the consumer is not aware of or familiar with the product. (Howard 2009). Focusing on actual behavior provides fresh insight more than the previous researc h examining buyers’ intentions and attitudes because it demonstrates the impact of the COO cue on buyer’s actions. The take away from all of this leads the reader/researcher to draw several managerial implications with respect to the price-setting structure and origin of goods as having been described. Firstly, the outcome of the studies helps to confirm that the origin of the good has a vital role in informing a sense and appreciation of WTP within the mind of the end consumer. Moreover, the findings also provide information on how the COO influences a buyer’s WTP pertaining to the level of consumer involvement as reflected in the category of the product at hand. This is particularly useful for decisions about pricing and/or communication strategy (e.g. price differentiation) and is also of great concern to the organization considering the transfer of production facilities.  Ã‚