It is said that experience, hearsay, and myth contribute to the making of stereotypes about products and countries, called as Country-of-Origin Image. Some such popular stereotypes that make customers judge those products as the best include English tea, French perfume, Chinese silk, Italian leather, Japanese electronics, and Jamaican rum.

The importance of such stereotypes was emphasized recently because of a change in Canadian law that requires any cloth substantially altered (woven, for instance) in another country to identify that country on its label. Designer labels are affected in that they now must state the origin of the base material. The lure to pay $195 and up for scarves Made in Italy by Ferragamo or Gucci loses some of its appeal when the label is changed to Made in China because that is the origin of the silk used to make the scarf. As one buyer commented, I dont care if the scarves are made in China as long as it doesnt say so on the label. The irony is that 95 percent of all silk comes from China, which has the reputation for having the finest silk but also a reputation for producing cheap scarves. People feel that the best scarves are made in France or Italy by haute couture designers.

make comments on "Country-of-Origin" and its implications on consumer behaviour as well as international marketing?

1. How could countries such as Italy and France, which are globally reputed to be centers of haute couture designers and are also known for making top-quality products sustain their image and reputation despite the enforcement of new regulations?

2. What should China (and similar other countries that are perceived by global consumers to be making 'cheap' and 'sub-standard or low-quality products) improve their image as well as their products and services?