A major U.S.manufacturer of tractors has opened a plant in Russia.Russia suffers from a negative country-of-origin perception in both Russia and the EU.What should the U.S.firm expect?

Question

Quizplus · Accepted Answer

The negative country-of-origin perception in both Russia and the EU suggests that Russian buyers may have a preference for imported tractors or may value domestically produced tractors lower than imports. To counteract this, the U.S. firm may need to lower prices to offset the perceived quality difference and make its tractors more competitive with domestic brands. Simply associating the U.S. brand with the Made-in-Russia tractors may not be sufficient to overcome the negative country-of-origin perception. A promotional campaign may also be necessary, but lowering prices would likely be an effective strategy to increase demand.

A Major US