The Perverse Effect of Country-of-Origin Labelling on Multiculturalism in a Pluralistic Society

Abstract

Across the world consumers demonstrate preferences for product categories made in certain countries. German automobiles, Italian designer fashion and French wines immediately come to mind, suggesting a sense of respect and admiration for certain products emanating from specific countries. There is no gainsaying therefore that a product's Country-of-Origin (COO) is an important bias in consumer decision-making. Nagashima (1970)1 defines imagery of the COO as "the picture, the reputation, and the stereotype that business and consumers attach to products of a specific country. The image is created by such variables as representative products, national characteristics, economic and political background and history and traditions".