The impact of country of design and country of manufacture on consumer perceptions of bi-national products’ quality: an empirical model based on the concept of fit Leila Hamzaoui School of Management, University of Ottawa, Ottawa, Canada, and Dwight Merunka IAE Aix-en-Provence, University Paul Ce ´ zanne, Aix-Marseille and EUROMED Marseille School of Management, Le Beausset, France Abstract Purpose – The purpose of this paper is to decompose the concept of country of origin (COO) and test the influence of country of design (COD) and country of manufacture (COM) on consumer evaluations of bi-national products (products designed in one country and manufactured in another). In addition to global country images, the paper aims to introduce the concept of “fit” or the logical connection between product categories and the COD or COM. Design/methodology/approach – Relationships between constructs (perceived product quality, COD image, COM image and perceived fits) are hypothesized and data are collected via survey on the Tunisian market. Each of the 389 respondents evaluated different combinations (COD/COM) for two product categories (automobiles and television sets). All hypotheses are tested using multiple regression analysis. Findings – The paper finds that the concept of fit between country image (both COD and COM) and product category is an important determinant of product evaluations. For products with status symbolic meanings (automobiles), consumers from emerging countries are more sensitive to COD than for more private goods (television sets) for which COM and COM/product fit are important. Research limitations/implications – This study used two informational cues (COD and COM), and fairly complex durable goods. Results need to be expanded and confirmed with other product categories on other emergent markets. Practical implications – Practical implications of the study are that, beyond country images, measurement of fit between COD or COM and the product category will help define marketing communications and product promotions by emphasizing (or de-emphasizing) global country information, country image/product fit, or both. Originality/value – The paper provides new insights into consumer judgements of product quality for bi-national products. Keywords Country of origin, Product design, Perception, Consumer behaviour, Emerging markets Paper type Research paper An executive summary for managers and executive readers can be found at the end of this article. Introduction In the modern context of market globalization and competition, firms are looking for cost advantages through proximity to end-user markets, cheaper labor and lower taxes. Consequently, delocalization and manufacturing in developing countries has been growing in recent decades, such that many products are designed in one country and manufactured or assembled in others. Country of design (COD) (whether actual or as perceived by consumers) and country of manufacture (COM) choices can provide firms with competitive advantage and represent important concepts in consumer behavior literature. Another growing trend is the rapid development of consumption in emerging markets such as China, India, Malaysia, and Tunisia, to name just a few, and the parallel stagnation of many mature markets in developed countries. A direct consequence of the combination of rapid growth in global sourcing and the emergence of new markets has been the proliferation of bi-national products, that is, products designed or conceived in one country and manufactured and/or assembled in another. Manufacturing relocation can be financially profitable but nevertheless raises important questions related to consumers’ perceptions of value. A product manufactured in its COD (e.g. France) compared with in a country with lower manufacturing costs (e.g. Romania) is likely to be perceived and evaluated differently by the consumer. Consumers from developed countries might not trust the ability of an emerging country to produce quality goods conceived in a developed country (e.g. Ford cars manufactured in Malaysia), and consumers from developing countries might not consider a well-known brand (e.g. Gucci) from a developed country that has been manufactured in a developing country (e.g. Morocco) as able to provide sufficient status and prestige. Many studies The current issue and full text archive of this journal is available at www.emeraldinsight.com/0736-3761.htm Journal of Consumer Marketing 23/3 (2006) 145–155 q Emerald Group Publishing Limited [ISSN 0736-3761] [DOI 10.1108/07363760610663303] 145