The Influence of Country-of-Origin and Sustainability Cues on Willingness-to-Pay: Conceptual Model and Empirical Test

The influence of country-of-origin (COO) and sustainability cues on consumers’ willingness-to-pay (WTP) for branded products has not been fully elucidated in international marketing literature, with extant findings painting a contradictory picture. Drawing on cue utilization theory, signaling theory, and attribution theory, we develop and test a conceptual model for understanding how WTP for a brand is affected by COO and sustainability cues. We find that these cues have both direct and indirect effects (through consumer perceptions of product sustainability) on WTP and that they should be considered in conjunction when developing brand strategies.