Revisiting Country of Origin Effects on Consumers’ Willingness to Pay: Are Gains different than Losses?

Maria Gabriela Montanari, Adamantios Diamantopoulos, Janaina Giraldi

Drawing on signaling and prospect theories, we examine the effect of changes in country of origin (brand origin and/or country of manufacture) on consumers’ willingness to pay (WTP). Using an experimental design and applying Van Westendorp’ s Price Sensitivity Meter, we find that changes in country of origin favorability (either in terms of brand origin or country of manufacture) do not always translate into variations in consumers’ WTP. More importantly, and against the predictions of prospect theory, a gain or loss in terms of country of origin favorability has the same absolute effect on WTP. Implications for research and practice are considered and suggestions for future research made.

Department of Accounting, Innovation and Strategy, Department of Marketing and International Business
External organisation(s)
University of São Paulo
Publication date
Peer reviewed
Austrian Fields of Science 2012
502052 Business administration, 502020 Market research
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