Country of origin

Country of origin (COO), is the country of manufacture, production, or growth where an article or product comes from. There are differing rules of origin under various national laws and international treaties.

Effects on consumers

The effects of country of origin labeling on consumer purchasing have been extensively studied The country of origin effect is also known as the "made-in image" and the "nationality bias."

Research shows that consumers' broad general perceptions of a country, including of its national characteristics, economic and political background, history, traditions, and representative products, combine to create an overall image or stereotype that is then attached to the products of that country. This image has a significant influence on consumer perceptions and behaviours, and in situations in which additional information is unavailable or difficult to get can be the sole determinant of whether or not someone buys a product. Its effect is strongest on consumers who don't know much about the product or product type, and weakest on consumers who are well-informed. Sensitivity to country of origin varies by product category. It is strongest for durable goods and luxury goods and weakest for "low involvement" product categories such as shampoo and candy. In various studies it has also been proven that the Country-of-Origin Effect also applies to services.