Should I purchase or not'? A literature review of country-of-origin effect on the use of domestic brand

Abstract

Customer's product identification with respect to country-of-design (COD), country-of-manufacturer (COM), and country-of-assembly (COA) has become a driver or a communication tool regarding customers' purchase intention and use of a product. This article, (1) reviews the literature in relation to the effect of country-of-origin (COO) on buyer's evaluation of domestic products or brands, and (2) Proposed a conceptual model depicting the trajectory through which COO impact on consumer purchase intention towards a domestic product/brand. The current study implores a qualitative inquiry with a specific focus on document analysis as well as experts' opinions. From the literature, it has emerged that country-of-origin effect (notably, COD, COM, and COA) plays a significant role in determining consumer's buying decisions towards both domestic and foreign products. Additionally, it was discovered that country-of-manufacture determines a product/ brand evaluation (in terms of quality) relatively to COD and COA. Practically, the study is important for countries (especially resource-poor and developing countries) that need to increase manufactured exports and for firms that sourced/import products in countries different from where they are sold. Theoretically, it widens the concept of brand management with the interplay of COO effect on consumer purchase intention. Marketing inferences are drawn, and direction for future research is developed in the entire manuscript.