Content uploaded by Paul G. Patterson
Author content
All content in this area was uploaded by Paul G. Patterson on Jun 04, 2016
Content may be subject to copyright.
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 1 of 9 http://marketing-bulletin.massey.ac.nz
Consumer Perceptions of Country of Origin in the
Australian Apparel Industry
Paul Patterson and Siu-Kwan Tai
Consumer attitudes towards the quality of Australian-made products in general, and clothing apparel
in particular, were investigated. Country of origin ("Made in...") effects were analysed for apparel
products from Australia plus four other countries or regions, namely: New Zealand, the United
Kingdom, China and other Southeast Asian countries. Results indicate that country of origin effects
are not as strong as might be expected, and vary with age and migrant status of consumers. Consumer
perceptions were used to partition the countries analysed into two distinct groups. Apparel from New
Zealand, Australia and United Kingdom was rated significantly higher on all product attributes than
was apparel from Asian countries. The results indicate that, as Australia further relaxes import quotas
in the clothing and textile industries, its direct competition will come from New Zealand and the
United Kingdom, rather than Asia.
Keywords: country of origin, consumer perceptions
Introduction
National reputations for technological superiority, product quality, design and value will
naturally vary from country to country, but consumers tend to generalise their attitudes and
opinions across a wide range of products from a given country. This stereotyping may also be
due to attitudes towards the people of the country, familiarity with the country (Nagashima
1970; Wang &. Lamb 1980), and the background of the consumers, such as their
demographic characteristics (Schooler 1971; Wall & Heslop 1986) and their cultural
characteristics (Tan & Farley 1987).
Mass media, personal experiences and the views of national opinion leaders may also shape
the reputation of a country as a producer (Nagashima 1970). Several studies (Bannister &
Saunders 1978; Barker 1984; Hong & Wyer 1989; Kaynak & Cavusgil 1983) have confirmed
this image, or stereotype, effect of country of origin, suggesting that countries too have
images, perhaps not so far removed from the marketers' concept of 'brand image'.
Thus, as the volume of world trade continues to increase and the international marketplace
becomes more competitive in the 1990s, it is more important than ever that marketing
managers understand the attitudes and perceptions of consumers to the cue, "country of
origin". Indeed, Gaedeke (1973) found that attitudes towards a specific product or brand
could be substantially changed, both favourably and unfavourably, when the country of origin
of the product or brand was revealed to the consumer.
Research has also shown that in the United States and Europe, for example, there exists a
particularly strong bias against manufactured goods from developing countries (Kaynak &
Cavusgil 1983). Other researchers postulate that the degree of bias towards a range of
products from the same country may be vastly different depending on the product under
consideration (Schooler 1971; Wall & Heslop 1986; Hooley, Shipley & Krieger 1988).
Country of origin is usually communicated by the term "Made in (name of country)". Some
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 2 of 9 http://marketing-bulletin.massey.ac.nz
authors (for example, Kaynak & Cavusgil 1983) go so far as to view the "Made in" label as a
fifth element of the marketing mix.
The focus of this small-scale study was the Australian clothing apparel industry. This
industry was chosen firstly because most apparel has a clearly displayed "Made in" label; and
secondly it is an industry where imported products have gained significant market share. In
1989/90 Australian clothing imports rose 6% to A$759m, with 34% of these emanating from
the Peoples Republic of China.
The major objectives of this study were to investigate:
1. Consumers' perceptions of the quality of Australian products in general;
2. Consumers' attitudes toward Australian-made versus imported apparel from major
importing countries (New Zealand, the United Kingdom, China, and other Southeast
Asian countries).
Method
This was a two-stage study. Stage one was qualitative, involving one-on-one depth interviews
with consumers, merchandising managers and sales personnel of two major retailer chains,
plus interviews with managers of several smaller apparel stores and boutiques. These were
was conducted to better understand key facets of consumer perceptions prior to questionnaire
design.
In stage two, 550 self-administered questionnaires were mailed in March 1990 to a randomly
selected sample of the general adult population from the Wollongong region of New South
Wales, Australia. This region was chosen because its demographic composition (especially
its diverse ethnic component) approximates the overall demographic composition of
Australia. Twenty nine questionnaires were returned as being mailed to the wrong address,
and a further 18 questionnaires were rejected as incomplete; 174 questionnaires were returned
and used in the analysis, for a net response rate of approximately 35%.
Care needs to be taken in interpreting the results of this study. Firstly, the high nonresponse
rate and consequent relatively small sample size make it difficult to generalise the findings.
Secondly, the findings are product specific and are unlikely to be transferable to all other
product categories.
Results
Consumer Attitudes Towards Australian-made Products in General
Respondents were asked to indicate their level of agreement on a 5-point Likert Scale
(1=strongly disagree to 5=strongly agree) with a series of questions about Australian-made
products in general; past, present and future (see Table 1). Firstly, on a pessimistic note, only
30% of respondents believe workers in Australian manufacturing industry are concerned
about producing a quality product (Statement 1). Part of the reason for this may be gleaned
from the responses to Statement 2, where more than half of respondents (59%) take a
somewhat cynical view that manufacturers are more interested in profits than quality. Further,
almost three quarters (72%) of respondents thought that in Australia "it costs too much to
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 3 of 9 http://marketing-bulletin.massey.ac.nz
make a high quality product" (Statement 3). Taken together, these results show an alarming
degree of scepticism among consumers.
Notwithstanding, 65% of those surveyed considered that the quality of Australian
manufactured products had improved over the past five years (Statement 6); and 68% thought
they would continue to improve (Statement 7). However, for apparel at least, "Made in"
effects may not be as great as previous European, American and Canadian studies suggest
(Wall & Heslop 1986). Only half of respondents claimed they would be prepared to pay a
little more for "Australian made" if the quality was on par with imports (Statement 5); and
only 45% agreed "overall, the quality of Australian products is equal to, if not better than,
imported products" (Statement 8).
Table 1. Attitudes towards Australian-made products
Attitude Statement Agree
% Neutral
% Disagree
% Total
%
1. Australian workers are concerned about quality 29.7 36.4 33.9 100
2. Australian manufacturers are more concerned with
profits than quality 58.5 29.3 12.2 100
3. In Australia it costs too much to make a high quality
product 72.0 11.0 17.0 100
4. Australian-made products can compete with imports in
terms of quality 66.5 15.8 17.7 100
5. If the quality of Australian-made and imported
products is the same, I will buy Australian products
even if it cost a bit more 50.0 30.7 19.3 100
6. The quality of Australian products over the past five
years has improved 64.6 27.5 7.9 100
7. I expect the quality of Australian products to improve
over the next five years 68.0 23.1 8.9 100
8. Overall, the quality of Australian products is equal to,
if not better than, imported products 45.2 32.7 22.1 100
Notes.
1. Ratings were on a 5-point Likert Scale with 5 = Strongly Agree to 1 = Strongly Disagree.
2. For reporting purposes the scale was collapsed (1 & 2 = 1, 4 & 5 = 5).
3. Attitude statements adapted from Wall and Heslop (1986).
These data are consistent with the responses to two further questions specific to apparel
products. These are shown in Table 2.
These results suggest that there is a segment of Australian consumers who are both cynical
and unconvinced about the merits of the "Made in Australia" label. Hence country of origin
may not be having the impact expected by some Australian Government agencies and large
manufacturers. This is despite the fact that 95% of the sample claimed to be aware of recent
"Buy Australian" advertising campaigns.
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 4 of 9 http://marketing-bulletin.massey.ac.nz
Table 2. Information sought when buying apparel
Look for country1
of origin
%
Look for2
Australian made
%
Always 20.4 13.2
Often 28.1 27.5
Occasionally 39.5 37.1
Never 12.0 22.2
100.0 100.0
Notes.
1. The question was "How often do you look at the label to see the manufacturer's country of origin, before
you purchase clothing?"
2. The question was "When purchasing clothing, how often do you specifically look for Australian-made?"
For Statements 1, 6 and 7 in Table 1 (all dealing with attitudes towards the quality of
Australian-made products), no statistically significant relationship was found with any of the
demographic variables used in this study (i.e., age, marital status, sex, education, and
income). While attitudes about quality are far from uniform among the sample, it appears
demographics are not a useful variable in explaining the variation. Rather it appears that the
market is best segmented according to attitudes alone, or perhaps in conjunction with other
variables not captured in this study.
Regarding Statement 2 ("Australian manufacturers are more concerned about profits than
quality"), younger and unmarried respondents were more inclined to agree with this statement
than older and married respondents. For Statements 4, 5 and 8 (concerning the perception that
Australian-made products are at least equal to imported products), older and married
respondents again showed significantly more agreement with the statements. For Statement 3
("In Australia it costs too much to make a high quality product"), once again younger
respondents were more likely to agree with this than their older counterparts.
Perceptions of Clothing Apparel by Country of Origin
Respondents were asked to express their attitudes towards apparel from five regions
(Australia, New Zealand, the United Kingdom, China, and Southeast Asia) by rating eleven
product attributes on a 7-point semantic differential scale of the form: 7 = 'Style is very
fashionable' to 1 = 'Style is not fashionable'. The average rating scores for each country are
illustrated in Figure 1.
The major point of interest is that apparel from Australia, New Zealand and the United
Kingdom consistently rates higher than apparel from both China and South-east Asia on
every product attribute, except price.
It is apparent that consumers perceive major differences in product attributes, depending on
country of origin. It will be noted from Figure 1 that the one point of convergence for all five
regions is in "value for money". Consumers clearly believe that apparel from China and other
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 5 of 9 http://marketing-bulletin.massey.ac.nz
Southeast Asian countries is inferior in quality to that of Australia, New Zealand and the
United Kingdom along all attribute dimensions. However, they also perceive the prices of
apparel from these Asian countries to be less expensive (see Figure 2). In contrast, apparel
from Australia, New Zealand and the United Kingdom is perceived to be of higher quality
and cost more. It appears that, for many consumers, any bias or negative predisposition
against products from China or Southeast Asia can be compensated for by price concessions.
As the price differential between Australia, New Zealand and the United Kingdom versus
Asian countries is increased in favour of the latter, more consumers will perceive the latter's
apparel as good value for money and be likely to consider purchasing. In summary, consumer
bias is price elastic.
From Figure 1, differences in the perception of each country are evident from the semantic
differential ratings for each statement. The results of paired t-tests of these differences are
reported in Table 3.
To illustrate, Australian apparel, for example, is perceived to be more fashionable than the
New Zealand product (average rating of 5.4 versus 4.3). This difference is significant at p <
.00 (see Table 3). There are no significant differences between Australian and New Zealand
apparel on attributes of overall workmanship, price, fit, colour retention, durability or overall
perceived quality. However, consumers appear to perceive apparel from the United Kingdom
to be of slightly higher quality than that from either Australia or New Zealand (see Figure 1
and Table 3).
Figure 1. Image of countries based on apparel attributes
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 6 of 9 http://marketing-bulletin.massey.ac.nz
Figure 2. Positioning of Australian-made apparel compared
with apparel from major importing countries
Table 3. Comparison of average scores on each attribute by selected country of
origin pairs
Results of t-tests1
Attribute AU/NZ AU/UK NZ/UK CH/SE
Style is very fashionable 0.00 0.05 0.00 ns
Colours are generally very fashionable 0.05 ns 0.05 ns
Fabric quality is excellent 0.02 ns 0.00 ns
Overall workmanship is excellent ns ns ns ns
Prices are relatively inexpensive ns ns ns ns
Clothing is usually excellent fit ns ns ns ns
Clothing retains it colours ns ns 0.05 ns
Clothing is very durable ns ns 0.02 ns
Clothing is generally of high quality ns 0.001 0.00 ns
Generally manufactures high quality brands 0.00 0.01 0.00 ns
Excellent value for money ns 0.02 0.00 ns
Notes.
Only paired t-test differences significant at p< .05 are shown.
AU, NZ and UK are each statistically significantly different from China and Southeast Asia on all
product attributes except "value for money'.
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 7 of 9 http://marketing-bulletin.massey.ac.nz
Respondents were asked to rate the eleven apparel attributes in terms of importance. The
three most important attributes were: (1 ) "clothing is usually an excellent fit"; (2) "style is
very fashionable"; and (3) "overall workmanship is excellent". In this regard, New Zealand
apparel is highly competitive (refer Table 3), rating equal to Australian and United Kingdom
products on goodness of fit and overall workmanship. However, New Zealand apparel is
perceived to be somewhat less fashionable.
It should be noted that attribute ratings for Australia, New Zealand and the United Kingdom
are significantly different from those of China and Southeast Asia on all attributes except
"value for money".
Perceptions of Australian-made Apparel by Age and Migrant Status
The average rating scores for Australian-made apparel were analysed by age group and
migrant/non-migrant status of respondents. It was found that along all attributes, younger (18-
24 years) and middle age (25-39 years) groups, and migrants, gave consistently lower ratings.
Thus younger consumers and migrants are more discriminating and less likely to hold
negative stereotypes about imported apparel. This result is perhaps due in part to the fact that
younger people have a more 'openmind' because of their higher propensity to travel overseas
and hence greater familiarity with overseas products. Likewise, migrants have been exposed
to a wider variety of overseas-made products and are likely to be more discerning in their
evaluations and less influenced by the "Made in Australia" label. This is consistent with the
findings of Nagashima (1970) who concluded that the "Made in" image is naturally affected
by consumers' familiarity with a country's products.
Discussion
Generally, Australians are supportive of Australian-made products, and had an optimistic
view of the quality of Australian products in the future. There is, however, a degree of
cynicism about whether Australian manufacturers are both capable (at a 'fair' price) and
willing to produce a quality product.
This cynical view was more prevalent among younger consumers. Combined with the fact
that younger consumers were also less likely to be influenced by the "Made in Australia"
label, these results suggest there will continue to be opportunities for importers of
manufactured goods. To halt the further penetration of imports, Australian manufacturers
need to seriously and urgently analyse their philosophy with regards to product quality in
conjunction with productivity improvements in order to offer quality products at competitive
prices.
The results of this study show country of origin effects are operating in the Australian apparel
industry, but are not as strong as prior research in other countries and product markets
suggest. The results show a positive bias towards apparel products from Australia, New
Zealand and the United Kingdom, but a strong negative one to products from China and other
countries in Southeast Asia. Indeed, the data suggests that consumers in general perceive the
five regions as two distinct groups: "Made in Asia" and "Made in Australia/New
Zealand/United Kingdom". This has important implications for domestic manufacturers and
importers.
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 8 of 9 http://marketing-bulletin.massey.ac.nz
Firstly, it highlights the fact that the Australian market is far from being homogeneous in its
attitudes and preferences. It signals to Australian manufacturers that, in terms of product
positioning, their direct competition is not the cheaper Asian imports but rather apparel from
New Zealand and the United Kingdom.
For most attribute dimensions, New Zealand apparel was rated on par with the Australian
product. In terms of the three most important attributes (fit, fashionable style, and overall
workmanship), New Zealand apparel was perceived to be equal on fit and workmanship but
slightly inferior on style.
The Australian Government recently stated its intention to further relax clothing and textile
import restrictions. Together with the earlier result showing a degree of cynicism with
Australian manufacturers' ability to produce quality products in general, these trends indicate
a strong opportunity for New Zealand apparel manufacturers. However, to take advantage of
this opportunity, New Zealand manufacturers will need to carefully examine the perception
that the style of their apparel is not seen to be as fashionable as that from Australia and the
United Kingdom. Changing this image will be fundamental to taking advantage of the export
opportunities available in Australia.
Further, the preference for domestic Australian apparel is by no means uniform across all
demographic groups. The results show younger and middle-age groups, unmarried consumers
and migrants are less inclined to be influenced by the cue "Made in Australia" than other
segments. It is these segments, who are more openminded about products from overseas and
who are generally discerning, that represent the best target groups for overseas
manufacturers.
References
Bannister J & Saunders J (1978). UK consumers' attitudes towards imports: The
measurement of national stereotype image. European Journal of Marketing, 1978, 12
(8) ,562-570.
Barker T (1984). A comparative survey of the image of Australian products. Australian
Marketing Researcher, (8), 81-87.
Gaedeke R (1973). Consumer attitudes toward products 'made in, developing countries.
Journal of Retailing, 34 (2), 13-24.
Hong ST & Wyer RS (1989). Effects of country-of-origin and product-attribute information
on product evaluation: An information processing perspective. Journal of Consumer
Research, 16, 175-187.
Hooley G; Shipley D & Krieger N (1988). A method for modelling consumer perceptions of
country of origin. International Marketing Review, 5 (3), 67-76.
Kaynak E & Cavusgil T (1983). Consumer attitudes towards products of foreign origin: Do
they vary across product classes? International Journal of Advertising, 2,147-157.
Nagashima A (1970). A Comparison of Japanese and U.S. attitudes towards foreign products.
Journal of Marketing, 34, 68-74.
Marketing Bulletin, 1991, 2, 31-40, Article 4
Page 9 of 9 http://marketing-bulletin.massey.ac.nz
Tan CT & Farley JV (1987). The impact of cultural patterns on cognition and intention in
Singapore. Journal of Consumer Research, 13, 540-543.
Schooler R (1971). Bias phenomena attendant to the marketing of foreign goods in the U.S.
Journal of International Business Studies, 2, 71-80.
Wall M & Heslop L (1986). Consumer attitudes towards Canadian-made versus imported
products. Journal of the Academy of Marketing Science, 14 (2), 27-36.
Wang C & Lamb CW (1980). Foreign environmental factors influencing American
consumers' predispositions toward European products. Journal of Academy of
Marketing Science, 8 (4), 345-356.
Paul Patterson is a Senior Lecturer in the Department of Management, University of Wollongong. Siu-
Kwan Tai, a former M.B.A. Student, is now with Toray (Textile) Industries, Kowloon, Hong Kong.
