China's CNN ad campaign was a mistake
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In the past "Made in China" has been a by-word for fake, poor quality goods . But years of effort have begun to change that image. One can now find high quality Chinese brands. In household appliances "Made in Japan" was once the first choice for Chinese consumers, despite higher prices. Btu foreign brands are losing their attraction as domestically produced goods improve in quality. Imported appliances are now seen as quick to develop faults and hard to repair. There is little to choose between domestic and imported TVs. Nevertheless, many consumers still retain their previous image of Chinese goods as poor quality. To boost the overall image of "Made in China" goods requires a comprehensive analyses and plan since it relates not just to product image but to national image.
Nelson Mandela tells a story in his memoirs that boarding a South African aircraft one day he was surprised to see the pilot was black. Although he had spent his life combating racial discrimination, a black airline pilot still seemed incongruous to him. It is just was if we see a photocopier made in Brazil or computer made in Mongolia. We call the the Country of Origin (COO) effect. Such stereotyping is the result of first impressions and habit. Consumers have preferences for or aversions to certain products from particular countries. For example, because India is poor, we take it for granted that Indians are poor, but in fact many Indians are rich, their high technological industry is booming and most of the billionaires in Silicon Valley are from India.
Studies show that the COO effect has nearly a 20 percent influence on purchases. Stereotyping is universal and can not be changed easily. Japanese businessmen rate German products the highest, then the UK, followed by the US, Japan and France, but Japanese consumers rate their own goods as the best. French, German and Japanese products are among the best according to purchasing managers. Most studies show products from developing countries are ranked lowest. COO can cause a halo effect which means consumers overrate or underrate quality depending on the origin of goods. Both individual brands and country brands need to be built to combat this form of stereotyping.
International competitive strength is an overall measure of a nation's industry and economic power. An individual company can create an image in the consumer's mind. But to create an an image for an entire country, the efforts of individual companies are obviously insufficient. State Brands will not be popularized by individual companies because of their tendency to free-riding behavior. They need the efforts of the whole nation. International marketing experts are paying increasing attention to COO. In the international market, the most important foundation influencing the customers is the origin of the product. The building of a state brand requires subtle marketing skills, and like product marketing is a matter of managing of perceptions.
Those who travel to America or Europe have the impression that TV advertising breaks are crammed with the landscapes of India and the charming smiles of Singapore. Countries spend huge amounts of money to buy advertising time and shape their image. In recent years developing countries have recognized great potential of state brands. By repeatedly showing the same advertisements a comprehensive concept of a country is gradually shaped in consumers' minds. The developed countries don't want to be left behind. Former president George HW Bush has appeared in ads to boost tourism to the US. In the late 1980s, Hong Kong ads featuring portrayed it as a shopping paradise is a place of "shopping kingdom". More recent ads have featured Jackie Chan. New Zealand is another example of a government that has spared no effort to boost the country's image, exploiting the welcoming smiles of the native Maoris to convey a message of "100 percent pure New Zealand".
This blog was published on December 1 and translated by Jessica Zhang.
