Beauty beyond the product: the influence of country-of-origin image on B2B customers' perceptions

Several researchers in business-to business sectors often assume that findings regarding country-of-origin (COO) effects on end consumers can be directly applied to the industrial marketing context. This tendency to generalize can result in an inaccurate understanding of how buyers perceive COO information in B2B scenarios. This study investigates the effect of the suppliers’ COO image on international customers’ perceptions of both perceived product quality and relationship quality in a business-to-business market environment. We further examine the consequences of perceived product quality and relationship quality on supplier awareness and customer loyalty. Data collected from 117 international B2B buyers of the Portuguese footwear and moulds industries were analysed through partial least squares structural equation modelling. The results indicate that COO image influences the relationship quality dimensions (trust, commitment, and satisfaction) and the perceived product quality. Moreover, trust, commitment, and satisfaction enhance customer loyalty and trust and satisfaction leverage supplier’s awareness. Our research findings challenge the notion that generalizing the impact of COO on end consumers can be equally applied in business-to- business (B2B) contexts. Our results suggest that relationship quality plays a more significant role than perceived product quality in influencing suppliers' attention and customer loyalty in B2B environments. This expands our understanding of how the COO image affects relationship quality within the industrial setting and calls managers’ attention on the importance on mitigating potential negative COO with measures for the improvement of the relationship.