Consumers Will Pay For Made In USA Label

The Journal of International Marketing recently published new research that found consumers are willing to pay a premium for products made in countries with favorable reputations.

The study looked at the U.S. shoe brand Nike. When participants were told the Nike’s they were considering were made in America they were willing to pay more for them than when they were told they were made in South Korea.

Further experiments, however, showed that the price differential becomes less substantial the more familiar consumers are with the brand in question, regardless of where the brand originates.

The findings can help marketers in their pricing decisions. For example, if marketers are pricing a product that comes from a country with a favorable reputation, they may consider charging a premium for it. The authors also suggest companies consider the impact on price and consumers’ willingness to purchase if they are thinking of relocating manufacturing to a country with a less favorable image.