How important is the country of origin to consumers

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Reference no: EM13731787

Case: Antonio Parker works for one of the world's most prestigious brand names specializing in designer handbags. The company competes with other famous brands like Gucci. Antonio is responsible for production and is constantly facing pressures due to the increasingly high labor costs in Italy. Antonio is well aware that many fashion-oriented companies in Europe and in the United States have moved production to India, China, or some other place where labor is cheap. Even Italian companies making high-end designer suits have recently moved production to developing nations. They maintain that today, as opposed to the past, high-quality standards can be maintained and thus any material differences in the suits between one made in China and one made in Italy are not noticeable to the consumer.

So, although the company is proudly operated exclusively as an Italian company with 10096 Italian productions, Antonio is now considering opening a production facility in China. This would cut the costs involved in producing the designer bags by over 5096. Antonio is about to meet with the VP-Marketing. He anticipates a negative reaction because, in his opinion, marketing

Questions:

1. How important is the country of origin to consumers Comprehension of designer products like those sold by Antonio's company?

2. Play the role of the VP/ Marketing. What would your react be? How could knowledge that the bag is produced in potentially harm or enhance the bond?

3. Antonio suggests simply removing the stitching that 'Made in Italy as a way of not misleading consumers. Would such a move address any ethical concerns that may once production is moved to China? Explain why.

Reference no: EM13731787

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