1 International Journal of Scientific Management and Development *Correspondent Author : Mark Washburn E-mail : Mark.Washburn@csulb.edu International Journal of Scientific Management and Development ISSN:2345-3974 January 2017, Vol.5, No.1 pp:1-8 Research Paper Estimating Consumer Demand for Country of Origin Labelling: Cross Country Comparisons of German and US Consumer Home Appliances Natalia Ribberink 1 ,Mark Washburn *2 1.Professor of Foreign Trade & International Management, Hamburg University of Applied Sciences 2.Associate Professor of Management, California State University, Long Beach . Available online at: www.IJSMD.Com Received 21 th September 2016, Accepted 20 th November 2016 Abstract While the idea that country or origin (COO) is an antecedent influencing consumer purchasing behavior is broadly accepted, there remains an underlying issue in that country effects and corporate effects may influence consumer behavior differently. Much of the COO literature assumes that consumer preferences are homogenous throughout countries The main goal of this study is to identify consumer segments that span nations through purchasing behaviour and consumer advocacy. The study uses descriptive survey data from 590 individual survey respondents (262 American; 328 German), using a 15 item survey transcribed in both languages. Respondents ranked the importance of product preferences (e.g. price and quality) and political positions (e.g. COO is a known tax haven) as well as their likelihood to change purchasing behaviour. Ordinal regression was used to compare multiple demographic influences across ranked items. The results show significant differences within countries regarding COO perception based on political positions, while significant similarities among consumers appear to span countries. Specifically, German men and American women have more similar COO preferences with each other than with others of their own nationality. The authors argue that treating consumer groups as multi-national would better predict behavior and brand affinity than corporate-country affiliation. Keywords: Country of Origin, Consumer Purchasing Behaviour. Introduction A broad literature examines the influence of information regarding a country or origin (COO) as an antecedent of consumer buying behavior. A positive country image can correspond with positive consumer preferences, but such images tend to be product category specific (Knight, Holdsworth,& Mather, 2007). Zeugner-Roth, Diamantopoulos, Montesinos, (2008) contend that country image differs from country brand equity, with the former mediating the latter. Taking a different tack, Samiee, Shimp, & Sharma (2005) combine the country and corporate effects to discuss ‘brand origin’ as the perceived nationality associated with a product. Not all connections between brands and countries are beneficial. Consumer animosity toward a COO can damage perceptions of corporate brands from that country (Funk, Arthurs, Tervino, Joireman 2010). Perceptions of country images can be complex. For example, one study characterizes the US image in Argentina as ‘bipolar’ depending on the specific issue identified (Rojas- Mendez & Papadopoulos, 2012). In discussing COO as image, equity, affinity, or animosity, there appears to be an underlying issue in that country effects and corporate effects may influence consumer behavior in different ways. Much of the literature links country effects to firms using consumer perceptions of quality (Fetscherin & Toncar, 2009). Knight et al (2007) found quality to be an “overriding consideration” when consumers selected countries as sources. Consumers may even favor a generic or “no-name” brand, if it is associated with a favorable COO image (Supanvanij, Amine, 2000). While a clear connection exists between COO and consumer perceptions of product quality, the COO image itself appears divided into at least two relevant facets - the ability to produce quality products and the perceived image of the country itself. Roughly translated, Greek consumers may not be particularly fond of G ermany, yet still willing to refer to BMW as the “ultimate driving machine”. The idea that quality perceptions enable distinct and complex images assumes that consumers are knowledgeable of the actual source country for a product or brand, and can make appropriate matches. However, studies have challenged this assumption. There is evidence that consumers are under-informed regarding COO, often relying on associations between brand names and country languages to make connections (Samiee, Shimp, & Sharma, 2005). In fact, Samiee et al (2005) find that US consumers only get COO information correct one third of the time. Given the challenges to the assumption that perceived national quality links consumer behavior to country images, some researchers have begun to shift more into theorizing about consumer perceptions. Zeugner-Roth et. al, (2008) define country brand equity as the value added by the association of a product or brand with a given country name as perceived by an individual, and then define country image as the total of all descriptive, inferential and informational beliefs an individual has about a particular country. The authors argue that these two definitions are distinct, though highly related with images predicating equity. In a similar manner, Shimp and Sharma (1987) define ethnocentricity as the belief that purchasing foreign goods damages the domestic economy, and is therefore inappropriate or immoral. Verlegh (2007) argues that ethnocentricity is distinct from national identification, which encompasses the need for enhancement or positive social identity, although both have the same directional effects on consumer purchasing behavior. This study attempts to synthesize some of the most beneficial aspects of the works distinguishing consumer perceptions of COO influences. We propose that consumers can maintain a product-specific country image that is distinct from an issue-