Made in China

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 one of the most important influences on decision making for foreign-made products. These studies revealed that buyers evaluate COO using multiple criteria including the country 's level of advancement, the buyer 's feelings about the people of the country and the buyer 's desire to be more closely

References: Boston Consulting Group, The. China: The Pursuit of Competitive Advantage and Profitable Growth, 2003. Cai, Y., Cude, B., & Swagler, R. 2004. Country-of-Origin Effects on Consumers ' Willingness to Buy Foreign Products: An Experiment in Consumer Decision Making. Consumer Interests Annual, Volume 50, 2004. Cheron, E., & Propeck, J. The Effects of the Country of Origin on the Evaluation of Products: A State of the Art Review and Research Propositions. IAE de Paris (University of Paris), 1997. d 'Astous, A., Ahmed, S. A. & Wang, Y. H. A study of country-of-origin effects in the People 's Republic of China. Faculty of Administrative Sciences, University of Sherbrooke, Quebec, Canada, Working paper, 1995. Erickson, G. M., Johansson, J. K., & Chao, P. Image variables in multi-attribute product evaluations; Country-of-Origin effects. Journal of Consumer Research, volume 11, 1984. Gurhan-Canli, Z., & Maheswaran, D. Determinants of country-of-origin evaluations. Journal of Consumer Research, volume 27, 2000. Heslop, L. A., & Popadopoulous, N. But who knows where or when: Reflections on the images of countries and their products. Product Country Images, 1993. Heslop, L. A., Liefeld, J. P., & Wall, M. An experimental study of the impact of country-of-origin information. In R. E. Turner (Ed.), Markering, 8, 1987. Hong, S. T., & Wyer, Jr., R. S. Effects of country-of-origin and product attribute information on product evaluation: An information processing perspective. Journal of Consumer Research, volume 16, 1989. Keillor, B.D., Hult, G., & Tomas, M. A five-country study of national identity: Implications for international marketing research and practice. International Marketing Review, 1998. Liefeld, J. P., Experiments on country-of-origin effects: Review and meta-analysis of effect size. Product Country Images, 1993. Meyer. J. China looks upmarket, The Christian Science Monitor, 2003. Nebenzahl, I. D. The Effectiveness of sponsored events in promoting a country 's image. International Journal of Adertising, volume 10 (3), 1991. Nooh, Sa 'ari, & Powers, T. L. The Impact of Country-of-Origin on Product Choice: A Developing Country Perspective. Journal of Practical Global Business, 1999. Okechuku, C., & Onyemah, V. Nigerian consumer attitude toward foreign and domestic products. Journal of International Business Studies, volume 30 (3), 1999. Parameswaran, R. & Yaprak, A. A cross-national comparison of consumer research measures. Journal of International Business Studies, volume 18 (2), 1987. Popadopoulous, N. What product and country images are and are not? Product Country Images, 1993. Schniederjans, M. J., Qing C., & Olson, J. R. Consumer Perceptions of Product Quality: Made In China. QMJ, Volume 11, No. 3, 2004. Schooler, R. D., Wildt, A. R., & Jones, J. Strategy development for manufactured exports of third world countries to developed countries. Journal of Global Marketing, volume 1 (1-2), 1987. Smith, Geri. How China Opened My Eye. Business Week, November 8, 2004. Thorelli, H. B., Lim, J. S., & Ye, J. Relative importance of country-of-origin, warranty and retail store image on product evaluation. International Marketing Review, volume 1 (6), 1989. Ulgado, F., & Lee, M. The Korean versus American marketplace: Consumer reactions to foreign products. Psychology and Marketing, volume 15 (6), 1998. Wall, M., & Liefeld, J. Impact of country-of-origin cues on consumer judgments in multi-cue situations: A covariance analysis. Journal of the Academy of Marketing Science, volume 19 (2), 1991. Wang, Chih-kang, & Lamb, C.W. The Impact of Selected Environmental Factors Upon Consumers ' Willingness to Buy Foreign Products. Journal of the Academy of Marketing Science, volume 11 (2), 1983.