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Discuss the potential benefits and drawbacks of companies using their country of origin as a marketing tool. Use examples to illustrate how companies can effectively profit from making reference to their national origins.

There are many different kinds of marketing tools all over the world. Many companies nowadays would like to make reference to their country of origin when they are doing marketing campaigns. The made-in image can influence consumer’s attitudes, perceptions and purchasing decisions. However, making reference to national origins can bring not only benefits but also some potential shortcomings. This essay aims to illustrate how business can make a profit from a successful geographical-origin branding strategy.

Intrinsic and extrinsic are two basic informational product cues for consumers to evaluate their product. (Ulgado and Lee, 1998) The intrinsic cues are the particular part of the product, while the extrinsic cues refer to those product-related conditions, such as brand influence, company reputation and products’ country of origin. (Acebrón and Dopico, 2000)

Although the extrinsic cues are not the components of product itself, they can influence consumers’ perceptions. The label “country of origin” was established in 1887, when the British government hoped to differentiate their domestic products from imported pr...

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