Investigating the Effect of Country of Origin on Willingness to Pay; Explaining the Role of Perceived Risk and Nationalism

Document Type : Original Article

Authors

1 Business Management, Faculty of Management, University of Tehran

2 Business Management , University of Tehran

3 PhD of Business Administration, Faculty of Management, University of Tehran, Tehran, Iran Hanieh.Fathi@ut.ac.ir

Abstract

The main purpose of this study is to determine the effect of country of origin, nationalism, and perceived risk on the price that Iranian consumers tend to pay for products of different origin. And we estimate the willingness to pay different countries (countries with a positive image of country of origin such as Germany and countries with a negative image of country of origin such as China) in different commodity categories, including refrigerators, sneakers and car tires. The effect of nationalism and perceived risk has been measured as the mediating variable. present study is a descriptive-survey research method, and in terms of purpose, is a developmental-applied research. Also, this research was done using questionnaire. It was distributed to staff and visitors to the National Library. Data collected from 179 questionnaires were analyzed. The results of data analysis and hypothesis testing showed that the country of origin of goods has an impact on the price potential of the products and Iranian consumers tend to pay 20 to 40 percent more money for German-made goods than Iranian-made goods. And Up to 40 percent less money for Chinese-made goods than Iranian-made goods. 

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References

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Journal of International Business Administration
Volume 3, Issue 3 - Serial Number 11
November 2020
Pages 115-134

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History

  • Receive Date: 30 January 2020
  • Revise Date: 28 February 2020
  • Accept Date: 29 February 2020

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