“Made in” labels lift the consumption of domestic products

by Laura Straeter
Posted on January 31, 2019

Deciding between two or more products, consumers face a rather complex decision and not only price is driving this decision. Consumers are sensitive to indications of a product’s authenticity and originality too. Products are often marked with “Made in” labels, which tell us where it was produced. Known as the Country of Origin effect, such labeling increases the acceptance and success of a product, especially when the country and product strongly match (e.g. Germany and the automotive industry).

So “Made in” labels are influential in the decision making process. Although these labels can boost the sales of many products, research has indicated that consumers are particularly attracted by products that are marked as produced in their own country.

Why are we particularly attracted to products made in our home country?

And why are these insights relevant for the current trade war between the US and China?

Click here to read the full story and find the answers!