Country of Origin Effect on Consumer Behaviour: European Products on Nepalese Market

Abstract

One of the challenge that companies faces when going global is the rising level of country of origin biases. In this context this study aims to find out how COO biases can effect product judgement and eventually on product purchase decision. Being exposed to a wide range of products, how do Nepalese consumers form their preferences? The present research examine this question through different developed scales and existing literature on country of origin. This paper solves many uncertainties when it comes to globalization and expanding to new markets. Compared to researches done in other countries, the Nepalese field is still in its infancy. In particular, the concepts of consumer xenophobia, ethnocentrism and affinity are conceptualized, analyzed and validated, thereby constituting an intial contribution to understand Nepalese consumers and those willing to buy foreign products.