Class Lecture | June 2012

Why You're Not Buying Venezuelan Chocolate: The Provenance Paradox

by Rohit Deshpandé

Abstract

A product's country of origin establishes its authenticity. This is the provenance paradox. Consumers associate certain geographies with the best products: French wine, Italian sports cars, Swiss watches. Competing products from other countries - especially developing markets - are perceived as less authentic. Even when their quality is on par with that of established players, the developing-market firms can't command a fair price. The lower price, in turn, reinforces the idea that the offering isn't as good and that the region doesn't make premium products.

Keywords: global business; branding; strategic planning; strategic positioning; emergent countries; consumer perception; developing markets; Brands and Branding; Geographic Location; Globalized Markets and Industries; Perception; Emerging Markets; Product Positioning; Global Strategy; Marketing Strategy; Food and Beverage Industry; Venezuela;

Citation:

Deshpandé, Rohit. "Why You're Not Buying Venezuelan Chocolate: The Provenance Paradox ." Harvard Business School Class Lecture 512-703, June 2012.