7
base on extrinsic cues such as COO and corporate reputation. (Michaelis, Woisetchlager,
Backhaus, & Ahlert, 2008)
1.1.5 Country of Origin Effects
Consumers
often
put
country
of
origin
into
considerations
when
choosing
products
or
services. In the case of insurance, having seen that America was hit badly by financial
crisis in 2008 and AIG facing the risk of bankruptcy, people would think twice when
engaging
insurance
product
from
AIG.
Indeed,
potential
Indonesian
customers
may
go
for
more
reliable
company
such
as
Allianz
from Germany
or
local
insurance
company
such as ACA.
COO is an interesting topic for the author as the author herself sometimes battles
between ethnocentrism and the belief that foreign made goods/services are more superior.
COO
topic
is
worthwhile
to
study.
Indeed,
not all
foreign
made
products/ services are
seemed
more
superior and COO effects
may have different
impact based on consumers’
perceived risks. COO effects on products are commonly discussed in lots of studies.
Therefore,
the
author
believes
that
research
on
the
effect
of
COO
and
reputation
on
initial trust in service industry is intriguing.
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