An investigation into the perceptions of Chinese consumers towards the country-of-origin of dairy products

The dairy incident in 2008 influenced Chinese residents' attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country-of-effects and its corresponding impacts. Consumers' image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country-of-origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country-of-origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.