Cluster Events

Dear Professors,

The OMOR Cluster and the CERESSEC Research Center have the pleasure to invite you to our next seminar with 

Kai Hoberg - Kühne Logistics University

On Wednesday, January 14  from 12pm to 1pm

Room : N406

Title : Demand Implications of Reshoring : How Product Origin Shapes Perceptions, Purchase Intentions, and Willingness to Pay

Robin Kabelitz-Bock, Kai Hoberg, Guido Voigt

Abstract : 

Firms are increasingly re-evaluating global production locations due to supply chain disruptions, cost volatility, sustainability pressures, and geopolitical risks. While reshoring research has focused on cost and risk assessments, little is known about the demand-side implications of production location decisions. Building on country-of-origin (CoO) research, our study examines whether and why consumers value local product origins and how such preferences affect purchase intention (PI) and willingness to pay (WTP). Using a mult-method design, we conduct three complementary empirical studies with a total of 1.878 subjects. Study 1 employs a choice-based conjoint experiment to test consumer preferences across origins and products. Study 2 investigates the behavioral mechanisms linking origin, perceptions, PI, and WTP. Study 3 isolates the causal effects of quality, environmental, and social sustainability perceptions on these outcomes.

Across studies, consumers consistently favor local production and exhibit higher WTP for domestic goods, revealing measurable demand-side value. 

Origin affects WTP indirectly through PI, with quality as the strongest driver, complemented by environmental and social sustainability. 

The findings extend production location decision and CoO research by providing behavioral evidence of consumer-based value creation and integrating sustainability perceptions into production location decision making. For managers, the findings highlight that emphasizing credible information about production origin can justify a price premium, providing a potential lever to offset higher costs of local production and emphasizing the importance of considering both cost and demand implications of production location decisions.

Keywords: Reshoring, production location decision, country of origin, consumer behavior

If you need more information, please contact matta@essec.edu.

Best regards,