Christopher Radko, a premium holiday ornament manufacturer, is considering locating manufacturing facilities in China in order to lower costs. However, the firm fears a backlash from ornament collectors who prefer ornaments made in Eastern Europe. What location issue is Christopher Radko dealing with?

Question

Quizplus · Accepted Answer

Christopher Radko is dealing with country-of-origin effects, which refer to the perception and attitudes of consumers towards products based on the country where the product is manufactured. In this case, the concern is that moving manufacturing to China might negatively affect the perception of their ornaments among collectors who prefer those made in Eastern Europe.

Christopher Radko, a Premium Holiday Ornament Manufacturer, Is Considering Locating