Transparency in Supply Chain Service Design: Assessing the Impact of Country of Seller and Country of Fulfillment Information

Abstract

ABSTRACT To combat counterfeit or unsafe products in retail supply chains, regulations require large online retailers to disclose seller‐specific information including the country of seller (COS) and the country of order fulfillment (COF). This supply chain transparency aims to empower consumers to make more informed purchasing decisions. Yet, the impact of disclosing such supply chain information to consumers—particularly toward the policy goal of deterring counterfeit purchases by informing consumers—is unclear. Drawing on signaling theory, we conducted a scenario‐based experiment to examine how COS and COF disclosures impact consumer perceptions regarding the likelihood of receiving a counterfeit product and willingness to purchase. Our results reveal the benefits of disclosing COS or COF information in reducing consumer expectations of receiving a counterfeit product and increasing purchase intentions. Yet nuanced insights reveal that consumer perceptions of a country influence their interpretation of COS and COF information. Specifically, the presence of a country associated with low product quality as either COS or COF negates the positive effects of a high‐quality country affiliation.