impact of country of origin
TRANSCRIPT
-
7/29/2019 Impact of Country of Origin
1/9
1
Impact of Customer Perception
Of
Country of Origin
On
Customer Satisfaction
In Apparels
Submitted to : Submitted By:
Dr.Purva Kansal Amit Pandey
Ankit Paul
Pulkit Sood
-
7/29/2019 Impact of Country of Origin
2/9
2
CONTENTS
I. Introduction 3
II. Need and Significance 3-4
III. Literature Review 4-5
IV. Research Methodology 6-8
1.Nature of study 6
2. Methods of Data Collection 6-7
3.Sampling Plan 7
V. Data Analysis 8
References 9
-
7/29/2019 Impact of Country of Origin
3/9
3
INTRODUCTION
Among the many factors believed to influence consumer buying behaviour in an age ofinternational competition, country of origin (COO) effects remain the most researched (Al-
Sulaiti and Baker,1998) and is considered by many to make up the largest body of research in
international buyer behaviour (Tan and Farley ,1987;Heslop et al.,1998;Martin and
Romeo,1992;Lee and Brinberg,1995;Verlegh and Steenkamp,1999).
The COO of a product has been found to influence consumer evaluation of a product on two
dimensions: perceptions on quality (Khachaturian and Morganosky,1990) and perceptions of
purchase value (Ahmed and dAstou,1993).More importantly, Paadopoulos et al(1991) also
found COO effects to lead to consumer preferences for products from one country over
another.
Customer Satisfaction is the extent to which a products perceived performance matches a
buyers expectations (Kotler et al.,2011).This satisfaction is influenced by many factors such as:
Price of Product Attractiveness Easy Availability
NEED AND SIGNIFICANCE OF THE STUDY
The purpose of this study was to determine North Indian consumers beliefs about and
preferences for apparel products made in Indian and those made in China and to determine the
importance of the country-of-origin attribute relative to other product attributes in consumers
purchase decision. As the manufacture of products and the quest for consumers become
increasingly global activities, international marketing research takes on greater importance.
One such area, the study of country-of-origin effects (COO), seeks to understand how
consumers perceive products emanating from a particular country. The COO phenomenon
mirrors the global marketplace's increasing complexity.
Attention has been given in the marketing literature as to why COO influences purchase
decisions. Several explanations have been offered including product category involvement,
knowledge of a particular country, and patriotism. The purpose of this research is to offer a
new perspective on country-of- origin effects. Here, COO is examined in terms of the fit
between countries and product categories. By relating country images to product category
-
7/29/2019 Impact of Country of Origin
4/9
4
characteristics, decision makers can better understand preference formations for their
products. This information provides insight into what under lies consumers attitudes toward
products manufactured in particular countries. Managers can benefit by having a better
understanding of when promoting a product's COO is beneficial and when it is not, as well as
identifying the dimensions along which country image should be improved.
An understanding of the role of COO images for imported products as against domestic ones
would aid in the formulation of better marketing plans, strategies and policies by companies of
both domestic and international origin.
A framework is suggested which matches the importance of product category dimensions with
the perceived image of the country-of-origin along the same dimensions. Such matches (or
mismatches) can be either favorable or unfavorable. Managers can use product-country match
information to assess consumers' purchase intentions, and assist them in managing their
product's COO.
LITERATURE REVIEW
Various articles and published researches were searched for and studied. The sources chosen
included JSTOR, Science Direct, American Marketing Association, Emerald etc.
According to Martin S. Roth and Jean B. Romeo (1992) -Country image plays a significant role in
consumers perceptions of products. Thus, understanding the dimensions of country image and
how it can be operationalized is important for managers whose products and those of their
competitors are manufactured around the world. This section reviews how country image has
been defined and operationalized in past research.
One of the first studies to look at country image perceptions was Nagashima's [1970] survey of
U.S. and Japanese businesspeople. Nagashima defined country image as: the picture, the
reputation, the stereotype that businessmen and consumers attach to products of a specific
country. This image is created by such variables as representative products, national
characteristics, economic and political background, history, and traditions. [Nagashima 1970, p.
68]
Narayana's [1981] definition of country image is quite similar-' "the aggregate image for any
particular country's product refers to the entire connotative field associated with that country's
product offerings, as perceived by consumers" (p. 32).
Shimp and Sharma (1987) developed the consumer ethnocentrism construct, which reflects the
desire of consumers to protect domestic economy. Ethno-centric consumers view purchasing
imported products as wrong, because they think it hurts the domestic economy. To measure
individual level differences in consumer ethnocentrism, Shimp and Sharma (1987) developed
-
7/29/2019 Impact of Country of Origin
5/9
5
the CETSCALE, which contains items such as '[American] people should not buy foreign
products, because this hurts US business and causes unemployment'. In line with the economic
stance of the construct, consumer ethnocentrism is stronger in regions and industries where
employment is threatened by foreign competition (Shimp and Sharma, 1987).
Pappu, Quester & Cooksey, (2006) during their study they find that Multivariate analysis of
variance of the data indicated that consumer based brand equity varied according to the
country of origin of the brand and product category. This impact of country of origin on brand
equity occurred where consumers perceived substantive differences between the countries in
terms of their product category country associations. They suggest that Marketing managers
operating in the international context must identify the sources of brand equity, and
understand the importance of incorporating country of origin into their brand equity
measurement
Kwo & Huang(2006) found in their study that Chinese consumers generally say they prefer tobuy local Chinese grocery brands. Second, Chinese consumers believe it is important to buy
local brands for a range of Chinese-style and Western-style product categories. Third, however,
the stated preference for Chinese brands was generally not reflected in actual purchase
behaviour. They suggested that in order to capitalize on the preference for local brands, and to
address consumers imperfect knowledge of which brands are local or foreign , managers may
benefit by promoting the Chinese origin of their brands and by positioning their brands as being
local.
Lee, Kim, Pelton, Knight & Forney (2008), found that Mexican college students normative
interpersonal influence positively affected brand consciousness. Brand consciousness is
positively related to emotional value, but not to perceived quality of a US brand. Emotional
value positively influences purchase intention toward a US brand, while perceived quality
negatively influences purchase intention. They suggest that those US retailers who plan to
enter the Mexican market should focus on the emotional aspects of US brands in order to
appeal to Mexican college students, especially those who are brand conscious.
Raty (2009), their study uncovered three strong factors durability, creativity of design and
patriotismthat affect consumers perceptions of a product and its brand image. These three
factors are linked to country of manufacture, country of design and consumer values. Males
seemed showed less concern for country of origin than females and interestingly the youngest
age group showed the most negative attitudes towards products made in Asia. Overall attitudestowards goods made in Asia were less positive than for goods made in Western countries, but
the difference in attitude was not significant. However, attitudes towards goods designed in
Asia were more negative. Thus moving production to low labour cost countries should not
affect brand image negatively, but design should not be outsourced to Asia.
-
7/29/2019 Impact of Country of Origin
6/9
6
OBJECTIVES
The objectives of the research are:
1.) To study the effect of country of origin on consumers evaluation of apparel product
attributes relating to quality.
2.) To study the effect of Consumers socio-demographic characteristics on consumers
evaluations of apparel product attributes related to quality.
3.) To study the behaviour of Ethnocentric consumers towards domestic manufactured apparels
as compared to foreign manufactured apparels.
HYPOTHESES
H1: There is significant relationship between country of origin and customer satisfaction inapparels.
H1a: Customer Satisfaction is positively related to general country attitudes.
H1b: Customer Satisfaction is positively related to general product attitudes.
H2: Customer perception varies across socio-demographic variables.
RESEARCH METHODOLOGY
NATURE OF THE STUDY
The current research is an attempt to investigate the key determinants that has an impact on
consumer buying behavior.
The study is descriptive in nature. Descriptive research is designed to describe characteristics of
a population or a phenomenon.
METHODS OF DATA COLLECTION
Both Primary and secondary data will be used in this study.
Primary Data:Primary data is the data collected and assembled specifically for the research project at
hand.
In order to collect the required information to address the overall research questions and
hypothesis, self administered questionnaire will be preferred as a survey instrument.
-
7/29/2019 Impact of Country of Origin
7/9
7
Secondary Data:Secondary data is the data that have been previously collected for some purpose other than
the one at hand. Secondary data used in this research shall be collected from journals,
magazines, web-sites, newspapers, books etc.
SAMPLING PLAN
Considering the cost, degree of use, advantages and time constraints, the sampling technique
followed will be Convenience sampling: It refers to the collection of information from members
of population who are conveniently available to provide it.
Data will be collected from four departments of Panjab University namely, UBS, UIAMS,
Pharmacy and law by using the convenience sampling technique.
Considering all the constraints and requirements i.e. cost of data collection, time, availability
and other factors sample size of about 120-150 will be taken for the research
5. Data Collection Methodology:
(a) Instruments
COUNTRY OF ORIGIN scale (Pisharodi and Parameswaran, 1992) would be used as a standard
for questionnaire for determining customer satisfaction in apparels.
(b) Scales
Likert Scale will be used to get the questionnaires filled. It is a psychometric scale. When
responding to a Likert questionnaire item, respondents specify their level of agreement or
disagreement on a symmetric agree-disagree scale for a series of statements .The Likert scale is
the sum of responses on several Likert items. The format of a typical five-level Likert item:
1. Strongly disagree2. Disagree3. Neither agree nor disagree4. Agree5. Strongly agree
-
7/29/2019 Impact of Country of Origin
8/9
8
Data Analysis
The data collected will be entered into and analyzed by using the statistical software for social
sciences.(SPSS) which is a computer program used for survey authoring and deployment, data
mining, text analytics, and collaboration and deployment.
The Tests that will be applied for analysis are:
1. Correlation test and Regressionanalysis shall be used to evaluate H1.
2. Chi-Square Test shall be used to evaluate H2.
REFERENCES
http://www.jstor.org/stable/155093
Bilkey, W.J. and Nes, E. 1982., Country of Origin Effects on Product Evaluations,
Journal of International Business Studies, Vol. 13 Nol. 1, pp. 88-97
Bannister, J.P. & Saunders, J.A. (1978). UK consumers' attitudes towards imports: the
measurement of national stereotype image. European Journal of Marketing, 12 (8), 562-70.
Shimp, T.A. and Sharma, S. (1987) 'Consumer ethnocentrism: construction and validation of the
CETSCALE', Journal of Marketing Research 24(3): 280-289.
Dickerson K. G. (1982). Imported versus U.S. produced apparel: Consumer views and buying
patterns. Home Economic Research Journal, 10, 241-252.
Erdener Kaynak, Orsay Kucukemiroglu, Akmal S. Hyder, (2000),"Consumers' country-of-origin
(COO) perceptions of imported products in a homogenous less-developed country", European
Journal of Marketing, Vol. 34 Iss: 9 pp. 1221 1241.
Journal of International Business Studies, Vol. 23, No. 3 (3rd Qtr., 1992), pp. 477-497
Kenny Lim, Aron O'Cass, (2001),"Consumer brand classifications: an assessment of culture-of-
origin versus country-of-origin", Journal of Product & Brand Management, Vol. 10 Iss: 2 pp. 120
136
Kenny Lim, Aron O'Cass, (2001),"Consumer brand classifications: an assessment of culture-of-origin versus country-of-origin", Journal of Product & Brand Management, Vol. 10 Iss: 2 pp.
120 136
Martin and Jean B. Romeo
http://www.jstor.org/stable/155093http://www.jstor.org/stable/155093http://www.jstor.org/stable/155093 -
7/29/2019 Impact of Country of Origin
9/9
9
Matching Product Catgeory and Country Image Perceptions: A Framework for
ManagingCountry-Of-Origin Effects [corrected title: Matching Product Category and Country
Image Journal of International Business Studies, Vol. 23, No. 3 (3rd Qtr., 1992), pp. 477-497
Min-Young Lee, Youn-Kyung Kim, Lou Pelton, Dee Knight, Judith Forney, (2008),"Factors
affecting Mexican college students' purchase intention toward a US apparel brand", Journal of
Fashion Marketing and Management, Vol. 12 Iss: 3 pp. 294 307
Ravi Pappu, Pascale G. Quester, Ray W. Cooksey, (2006),"Consumer-based brand equity and
country-of-origin relationships: Some empirical evidence", European Journal of Marketing, Vol.
40 Iss: 5 pp. 696 717
Roth, Martin S. and Romeo, Jean B. (1992), Matching Product Category and Country
Image Perceptions: a Framework for Managing Country of origin Effects.Journal
of International Business Studies, Vol. 23, Issue 3, pp. 477497.
Simon Kwok, Mark Uncles, Yimin Huang, (2006),"Brand preferences and brand choice among
urban Chinese consumers: An investigation of country-of-origin effects", Asia Pacific Journal of
Marketing and Logistics, Vol. 18 Iss: 3 pp. 163 172.
Shih-Chieh Chuang and HsiuJu Rebecca Yen
The Impact of a Product's Country-of-Origin on Compromise and Attraction Effects Marketing
Letters, Vol. 18, No. 4 (Dec., 2007), pp. 279-291