Question

A shoe manufacturer in the Philippines shipped its entire production to San Francisco and then brought it back to the Philippines to market it as "Made in the U.S." The manufacturer believed that people would prefer buying products made in the U.S. rather than those domestically produced. The factor that is influencing the perception of the customers in the given scenario is called the ________ effect.

Answer 1

The factor that is influencing the perception of customers in the given scenario is called the country of origin effect. It refers to the influence that the country of manufacture or production has on consumers' perceptions and attitudes towards a product.

Step-by-step explanation:

The factor that is influencing the perception of customers in the given scenario is called the country of origin effect. The shoe manufacturer in the Philippines shipped its entire production to San Francisco and then brought it back to the Philippines to market it as 'Made in the U.S.' The belief behind this strategy was that people would prefer buying products made in the U.S. rather than those domestically produced.

The country of origin effect refers to the influence that the country of manufacture or production has on consumers' perceptions and attitudes towards a product. In this case, the manufacturer is attempting to create a perception of higher quality and desirability by labeling the product as 'Made in the U.S.' Even though the shoes were not actually manufactured in the U.S., the perceived association with U.S. production can potentially affect consumers' purchasing decisions.