Nation Equity: Integrating the Multiple Dimensions of Country of Origin Effects

Purpose – Extensive research in the area of consumer behavior has documented the “Country of Origin Effect,” which identifies country of origin as an important decision variable in evaluating products and services. Past research has mostly assumed that country of origin effect is driven by the performance of the products originating in that country. However, consumers can also form opinions about countries based on exposure to information that is unrelated to the product and may have roots in macro factors such as history, culture, and politics. These emotions, while extraneous to the product, can also influence product evaluations along with performance-related country information.Design/methodology/approach – This review examines research addressing both performance and emotional perceptions related to country of origin.Findings – This review presents an integrating framework termed “Nation Equity” to systematically understand and examine the influence of various dimensions of country of origin on consumer decision making.