Country-of-origin effects in China: An investigation of urban Chinese consumers

Country-of-origin (COO) effects are investigated, with reference to the preferences of urban Chinese consumers for local and foreign grocery brands. Given the growing importance of the Chinese consumer market, and increasing competition between local and foreign brands, there is a need to review, update and extend our understanding of COO effects in China. Apart from measuring the extent of the COO effect at both a general level and across specific product categories in the grocery sector, this study also assesses the level of consumer knowledge of brand origins. Based on a self-administered questionnaire completed by a sample of 432 Shanghai consumers, it is found that these consumers generally prefer local brands and that local brands are seen as particularly preferable in certain Chinese-style and Westernstyle product categories. However, these consumers often have a poor understanding of the true origin of brands. They do not know the origin in about 50% of cases and even when they think they know, they are particularly poor at identifying local brands. It is likely, therefore, that in many instances actual buying behaviour will differ from stated preferences.