Foreign Goods Country-of-Origin Effect on the Russian Consumers

Nowadays, because of the globalised and interconnected world economy country of origin effect has become especially evident and influential. This issue is particularly important for Russian market due to political changes, and therefore, changes in consumers' perception of different products and countries where they come from. Theoretical overview of the topic is made in general and for consumer electronics products. Specific case of Yota Company with their production facilities abroad, possible relocation and changes in ownership structure is reviewed. The process of country of origin influence on consumers is demonstrated and factors are discussed. Distinction between subcategories of country of origin such as country of production and country of brand is emphasised and insights were gained considering this fact. Online survey among Russian consumers is conducted to test the hypotheses suggested based on the previous research. Among the results, the indirect influence of country of origin effect on purchase intention through quality perceptions and product attitude was confirmed and significance of country of production and brand origin was observed. On the contrary, the country of ownership was proved to have a low impact on consumers' perception of the products. The relocation of production facilities of Yota devices to Russia has a positive influence on Russian consumers, but it increased if accompanied by a price reduction. Overall, the consumers' opinions are analysed and recommendations for the companies operating on the Russian market and for Yota Devices Company in particular are provided.