The effect of the country of origin of the product in the strategy of a domestic and international enterprise Cover Image

Efekt kraju pochodzenia produktu w strategii przedsiębiorstwa na rynkach zagranicznych
The effect of the country of origin of the product in the strategy of a domestic and international enterprise

Author(s): Ireneusz Drabik
Subject(s): Economy, Socio-Economic Research
Published by: Wydawnictwo Uniwersytetu Komisji Edukacji Narodowej w Krakowie
Keywords: consumer behaviour; consumer ethnocentrism; impact of a product’s country of origin; international management

Summary/Abstract: A product’s country of origin, alongside its price and quality, is one of the most important criteria when a consumer makes purchase decisions in the marketplace. The aim of the paper is to present the theoretical assumptions of the concept of the impact of a product’s country of origin and the changes in how the concept is understood, as well as the potential for using it in the strategies of contemporary companies operating in a turbulent international environment. The paper utilises the method of critical analysis of the literature. An assumption is made that the traditional understanding of a product’s country of origin, defined solely in terms of the place of its manufacture, is now insufficient. The justifications for this include the international delocalisation of production, the use of foreign subcontractors by product manufacturers, and mergers and acquisitions of foreign companies. Under current market conditions, there is a need to conceptualise the notion of a product’s country of origin as a multidimensional construct. This, however, requires further research and clarification. Building on the latest research, this paper presents an analysis of the impact of a product’s country of origin from two perspectives, i.e., from the point of view of the consumer (consumer perspective) and the company (strategic perspective). In the case of the former, the focus is on the phenomenon of consumer ethnocentrism and consumer attitudes towards domestic and foreign products. The strategic perspective, on the other hand, encompasses varied general strategies of companies, distinguished based on the image of the product’s country of origin and its importance in the process of making purchase decisions by the consumer. Taking into account consumer attitudes towards domestic and foreign products also requires modification of implemented functional strategies, including the marketing strategy. The knowledge in this area forms the basis for strategic decisions of the company on foreign markets.

  • Issue Year: 18/2022
  • Issue No: 2
  • Page Range: 33-45
  • Page Count: 13
  • Language: Polish