Stereotypes Aren't Everything In The Business World, Study Finds

Certain stereotypes harness the power to seriously harm a business. Yet recent findings in the Journal of Consumer Research reveal that, in most cases, products still come before trade.

"Positive feelings about a country don't always translate into more favorable opinions of its products," said lead study author Cathy Yi Chen of Singapore Management University, in a news release. "A positive opinion of a country may actually make consumers think more about whether or not the country is known to be good at making a product. On the other hand, negative feelings toward a country make consumers think only about a product's features and less about the country of origin."

Researchers examined how bad reputations affected the way people view a country's products and found that consumers don't typically judge a country's products by their reputations if the products show quality of life.

However, they wanted to determine if consumers were more likely to favor products from countries with good reputations and to dislike products from countries with negative ones. Researchers asked participants to read a fictional travel website where a traveler had described either a positive or negative experience while traveling in a country. Afterwards, participants were instructed to read about a new digital camera made in that country. 

Findings revealed that only the product information and not the country of origin carried negative feelings toward the country. Yet consumers also considered products' country of origin if they felt positive feelings toward the country.

"Country of origin is an important determinant of business success. Because all country stereotypes are multifaceted, it is important to understand not only a country's reputation for making quality products, but also how exposure through travel and advertising impacts consumer opinion of a country's products," researchers concluded.