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.

a. mass
b. placebo
c. comparative advantage
d. country-of-origin
e. doppier

Answer 1

The country-of-origin effect is what influences the perception of customers when products are marketed as made in a perceived higher-quality country. Option d.

Step-by-step explanation:

The factor that is influencing the perception of the customers in the scenario where a shoe manufacturer in the Philippines ships its products to San Francisco and then back to the Philippines to market them as "Made in the U.S." is called the country-of-origin effect. This effect refers to the influence that the country of manufacture, assembly, or design has on a consumer's positive or negative perception of a product. The perception is that products from certain countries are of higher quality or are more fashionable, and this perception can drive purchasing decisions. In the business context, this is an important factor for marketing and brand positioning. This effect can be so influential that it may lead companies to alter their supply chains to capitalize on consumer perceptions.