As companies become ever more globalised, manufacture firms choose to outsource production to lower labour cost countries. However, as studies have shown, such a relocation of production may lead to undesirably decreased quality perceptions by consumers as the brand origin and country of production are de-coupled. This quality perception linked to congruity between brand origin and country of production has been studied for various products and product classes, but little has been written about how a luxury bed manufacturer may be affected by this phenomenon known as the country of origin effect. Thus in theory quality perceptions are higher if the brand origin and country of production are congruent and are further amplified if that country is already regarded highly in terms of production competence. In our study, we set out to verify this theory through a consumer-based questionnaire. Our results give strong evidence in support of this theory which is why we ultimately claim, from a theoretical standpoint, that the company we focus on should maintain its production location in Sweden.

As companies are focused on and capable of creating brand images aimed at supporting their brands, some choose to strategically associate them with specific countries or regions in hopes of attaining perceivably higher consumer-based brand equity. Although such a strategy could prove itself effective in the sense of increasing the amount of positive consumer perceptions, it might also result in harmful effects if the marketed country-of-brand origin is not in congruence with the brand‟s other country-of-origin constructs.   With regards to what theory implies and what this study‟s results suggest, this thesis analyzes the effects of country-of-origin incongruence on consumer-based brand equity in the case of Lexington. What this thesis uncovers is that the country-of-origin incongruence of Lexington does not, contrary to theory, have negative consequences on its consumer-based brand equity. Yet, what is suggested is that further research should focus on whether these results are simply restricted to this study‟s exact settings or would be attained even in another setting in which consumer ethnocentrism would not play a significant role.

Studien syftar till att undersöka hur modeföretags val av produktionsland påverkar svenska konsumenternas köpintention. Resultatet ska kunna användas som ett motiv av företag inom modesektorn i deras beslut om produktionsland. Problemdiskussion: En ökad efterfrågan på närproducerade produkter hos konsumenter tvingar företagen att hitta nya produktionspartners i nya länder. Närliggande produktion sägs öka tillverkningskostnaderna vilket gör att företagen på ett nyskapande sätt behöver skapa mervärde till sina produkter. Tidigare studier visar på att det finns en korrelation mellan produktionsland och köpintention. Ett område som saknas inom forskningen är hur svenska konsumenter påverkas av val av produktionsland. Därav ämnar studien till att undersöka om sambandet mellan köpintention och country equity vilket kan förklaras som country awareness, country loyalty, country image och perceived value. Metod: Studien är baserad på en kvantitativ metod med en enkätundersökning som empirisk undersökningsmodell. Enkäten delades på sociala medier och i studien deltog 82 personer. Undersökningen är baserad på en kombination av ett bekvämlighetsurval och självurval. Resultat: Resultatet indikerar på att tillverkningslandet har en betydande påverkan på köpintentionen hos svenska konsumenter när de köper modeprodukter. Studien visar på att hög kunskap om, positiv inställning eller förtroende till ett land ökar köpintentionen. På samma sätt minskar avsikten till att genomföra ett köp när kunskapen är låg, inställningen negativ och förtroendet är lågt. Däremot bekräftar respondenterna att produktionslandet endast till viss del är viktigt för dem. Det innebär att effekten av produktionsland är som högst mellan substitut. Implikationer: Studien kan användas av företag inom modebranschen för att vara till hjälp i dess beslut om produktionsland. Resultatet visar på att köpintentionen hos svenska konsumenter varierar beroende på produktionsområde och kan därav användas som ett motiv för ökad lönsamhet. / The aim of this study is to investigate how fashion companies' choice of country of production affects Swedish consumers’ purchase intention. The result can be used as a motive for companies in their decision of production country. Problem statement: An increasing demand for locally produced products forces companies to find new production partners in new countries. As local production is more expensive, companies need to find new ways that can add value to their sales. Previous research shows a correlation between purchase intention and production country. A missing area within the research field is how Swedish consumers are affected by the choice of production country. Therefore, the aim of this study is to investigate the relation between purchase intention and country equity, which can be divided into country awareness, country loyalty, country image and perceived value. Methodology: The study is based upon a quantitative method and has a survey as its empirical research model. The survey was shared on social media which contributed to a response rate of 82 people. The research is based on a mix of convenience selection and self-selection. Results: The result indicates that the country-of-production has a significant impact on consumers' purchase intention. The research proves that greater knowledge of, positive attitude towards and trust for a country will increase the purchase intention. Equally will the purchase intention decrease as a consequence to poor country-knowledge, negative attitude and low trust. Thus, the research also proves that consumers have a limited care for country-of-production. Thereby will the effect of it be higher between substitutes. Implications: The study can be used by companies within the fashion industry and be useful in their decision of production country. The result proves that the purchase intention varies depending on production area and can therefore be used as a motive for increased profitability.