The Effects of Country of Origin on Consumer Willingness to Purchase General Motor Automobiles in the United States

Abstract

This study is an examination of the effects of the country where products are made on the willingness of consumers to buy General Motor automobiles in United States. In order to provide some suggestions to financially struggling GM and other US automobile companies, survey data were collected from a sample (n=311) of consumers from northern California. We examined how US consumers evaluate GM automobiles that are made in US, Canada, Mexico, Japan, China and Germany, with respect to their perceptions of product evaluations and purchase intentions. This study shows that 'country image' influences consumer willingness to purchase automobiles. It also shows a general consensus that Japan and Germany would be capable of delivering quality automobiles. Just as corporations have brand images, countries have brand images. A positive image is a valuable asset for a country. We propose that GM enter into contract manufacturing, outsourcing the entire production, with quality leaders of automobiles manufacturers. Our suggestions would allow GM to focus on improving its innovative capability and technology and developing drastic marketing strategy.