Country-of-Origin Effect on Premium Branding

Abstract

The Country-of-Origin (COO) effect plays a crucial role in shaping consumer perceptions, particularly in the premium branding context where symbolic value, prestige, and perceived quality dominate purchasing decisions. This study examines how country-of-origin cues influence brand image, perceived quality, brand trust, and willingness to pay a premium price. Using survey data collected from 520 consumers across luxury fashion, premium automobiles, electronics, and cosmetics sectors in India, this research employs structural equation modeling (SEM) to test the hypothesized relationships. The findings reveal that country-of-origin significantly affects perceived quality and brand prestige, which in turn strongly influence premium price acceptance and brand loyalty. The study contributes to international branding literature by empirically validating the strategic importance of COO in premium brand positioning and provides actionable insights for global brand managers