Consumer Behavior Assignments

Chapter 4 Case

Aimpnnte oodtsenetsis o pwig rPeintasehrtk rio gehtiraoh wneudors bfrbakarmsga fnsoo.d uTr sohn bean merca ooenmfsd tssph paleiekn wceyi aoGclroiuzldmcin’cs-gi . 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 diff erences in the suits between one made in China and one made in Italy are not noticeable to the consumer.

• although the company is proudly operated exclusively as an Italian company with 100% Italian production, Antonio is now considering opening a production facility in China. This would cut the costs involved in producing the designer bags by
• ver 50%. Antonio is about to meet with the VP-Marketing. He anticipates a negative reaction because, in his opinion, marketing people rarely understand costs.

CASE

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 reaction
   1. How could knowledge that the bag is produced in China potentially harm or enhance the brand?
3. Antonio suggests simply removing the stitching that says “Made in Italy” as a way of not misleading consumers. Would such a move address any ethical concerns that may exist
   • nce production is moved to China? Explain why.

CHAPTER 4 : COMPREHENSION, MEMORY, AND COGNIT IVE LEARNING

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