Revisiting Country of Origin Effects on Consumers’ Willingness to Pay: Are Gains different than Losses?

Maria Gabriela Montanari, Adamantios Diamantopoulos, Janaina Giraldi

Publications: Contribution to bookContribution to proceedingsPeer Reviewed

Abstract

Drawing on signaling and prospect theories, we examine the effect of changes in country of origin (brand origin and/or country of manufacture) on consumers’ willingness to pay (WTP). Using an experimental design and applying Van Westendorp’ s Price Sensitivity Meter, we find that changes in country of origin favorability (either in terms of brand origin or country of manufacture) do not always translate into variations in consumers’ WTP. More importantly, and against the predictions of prospect theory, a gain or loss in terms of country of origin favorability has the same absolute effect on WTP. Implications for research and practice are considered and suggestions for future research made.
Original languageEnglish
Title of host publicationProceedings of the 50th Annual Conference of the European Marketing Academy Conference
Publication statusPublished - May 2021
Event50th European Marketing Academy Conference (EMAC 2021) - Madrid, Spain
Duration: 25 May 202128 May 2021
http://www.emac2021conference.org/r/default.asp?iId=JDDGMM

Conference

Conference50th European Marketing Academy Conference (EMAC 2021)
Abbreviated titleEMAC 2021
Country/TerritorySpain
CityMadrid
Period25/05/2128/05/21
Internet address

Austrian Fields of Science 2012

  • 502052 Business administration
  • 502020 Market research

Keywords

  • HBE
  • MIB

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