Question

The owner of a shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced.

The factor that is influencing the perception of the customers in the above scenario is called _____.

A) host country effect
B) first-mover advantage
C) country-of-origin effect
D) copycat aversion
E) product homologation

Answer 1

C) country-of-origin effect

Step-by-step explanation:

The factor that is influencing the perception of the customers in the above scenario is called country-of-origin effect. This effect refers to a psychological effect describing the way that consumers view products and make decisions on whether to buy them or not based on the product's country of origin labeling. This is because they somehow believe that some countries produce better quality products that are worth buying. One of these countries is the U.S which is why the shoe manufacturer is selling their product as if it were made in the U.S.