Please define the country-of-origin effect and give examples.

Country-of-origin effects on product image

As discussed previously, brands are used as external cues to taste, design, performance, quality, value, prestige, and so forth. In other words, the consumer associates the value of the product with the brand. The brand can convey either a positive or a negative message about the product to the consumer and is affected by past advertising and promotion, product reputation, and product evaluation and experience. In short, many factors affect brand image. One factor that is of great concern to multinational companies that manufacture worldwide is the country-of-origin effect on the market's perception of the product. Country-of-origin effect (COE ) can be defined as any influence that the country of manufacture, assembly, or design has on a consumer's positive or negative perception of a product.