Factors Affecting Consumer Preference of International Brands over Local Trade names
Zeenat Ismail1? . Sarah Masood2 and Zainab Mehmood Tawab2
Department of Social Sciences. Institute of Business Administration – Karachi 2
Students of Institute of Business Administration – Karachi
Need essay sample on Questionnaire on fashion brands Essay ?We will write a custom essay sample specifically for you for only $12.90/pageorder now
Abstraction: This survey was conducted in order to find the consumer penchants of planetary trade names alternatively of local 1s. It is besides designed to happen out the purchasing behaviour forms of immature Pakistani consumers Consumer evaluates merchandises based on information cues. which are intrinsic and extrinsic. A figure of factors affect the consumer purchase determinations. The consequences suggest that most of import factors that influence a consumer’s concluding determination are the monetary value and quality of the merchandise in inquiry. Since the consumers normally associate the monetary value of the trade name with its quality. a trade name priced excessively low is by and large perceived as a low quality merchandise. Similarly. a merchandise priced excessively high may non be low-cost by many.
Other factors that have an impact on the consumer penchants are: consumer ethnocentrism. state of beginning. societal position. monetary value relativity with the viing trade names and household and friends. The research was conducted in Karachi and the samples selected included 200 people of age 16-24. The information collected for the research was through a questionnaire and was conducted in two popular shopping promenades of the metropolis and two universities since the mark audience was mostly the young person. Calculations were so analyzed and interpreted utilizing a per centum of respondents and through frequence distribution tabular arraies and charts.
Keywords: Consumer penchant. International trade names. Local trade names
Globalization is an inevitable phenomenon that is taking the full universe towards going one market. a planetary small town. Not merely has the procedure of globalisation aided vastly in the exchange of goods and services. information and cognition through the decreases in international barriers. but it has besides led the universe into going a existent individual universal community comprising of people from different civilizations. therefore ensuing in the shrinking of the universe. With the universe going a individual market. globalisation has had a major part in enabling the organisations worldwide to step out of the restricted domestic markets and to put up their operations across the Earth with assurance. This has mostly led to a diminution in the importance in national boundary lines and a greater accent on what the consumers really demand ; be the consumers located in the really state in which the organisation exists or an wholly different portion of the universe.
Furthermore. with the rapid addition in planetary competition. companies that purely adhere to and provide to the demands of the local markets are happening themselves at a disadvantage and bit by bit fring the competitory advantage that they so much strived to accomplish. However. for some merchandises and services “the gustatory sensations and penchants of consumers in different states are get downing to meet on some planetary norm” ( Holt 2002 ) . From a consumer position. nevertheless. reactions to the prevalence of planetary trade names seem to change among the different clients. On the one manus. consumers seem to value and admire planetary trade names and respect such trade names as a position symbol. On the other manus. planetary trade names are frequently criticized for endangering the local differences and enforcing the western civilizations on our society. taking to a loss of cultural individuality.
2. Purpose of the survey:
Electronic mail: [ electronic mail protected ]Tel # : +92 ( 333 ) 3775545 Fax # : +92 ( 21 ) 38103008 54
This survey is aimed at finding consumer penchant of the young person of international trade names alternatively of national or local trade names in Pakistan. There are assorted factors which influence consumer purchase determination. Such as Country of beginning. monetary value of the trade name manner. household and friends. trade name name. handiness. advertisement runs. consumers’ ethnocentrism etc. The survey is besides designed to happen out the purchasing behavior forms of the immature Pakistani consumers. attitudes towards planetary and local trade names and the penchant for foreign trade names.
3. Literature reappraisal
Trade names have been invariably reviewed and redefined in the selling literature and there are legion definitions for ‘brand’ . A definition of a trade name by The American Marketing Association ( AMA ) in the sixtiess ( Keller. 1998:2 ) is “a name. term. mark. symbol. or design. or a combination of them. intended to place the goods and services of one marketer or group of Sellerss and distinguish them from those of rivals. ” For consumers. when make up one’s minding between trade names which are in the market place will include trade names as an component to find the qualities of the merchandise instead than using their clip to heighten their cognition of the merchandise in information searching activities. Therefore. consumers use trade names as cues to do determinations to buy or seek merchandises ( Ger et Al. . 1993 ) .
Perceived quality is defined as the consumers’ judgement about an entity’s ( service’s ) overall excellence or high quality ( Zeithaml. 1988 and Rowley. 1998 ) . Research besides indicates that consumers value planetary trade names particularly for their false high quality and esteemed image ( e. g. . Nguyen. Barrett and Miller 2005 ; Steenkamp. Batra and Alden 2003 ) . An internationally well-established trade name name can move as a “halo” concepts that effects quality beliefs ( Han 1989 ) . If a trade name is perceived as globally available. consumers are likely to impute a superior quality to the trade name. since such quality is thought of as a requirement for international credence.
5. State of beginning
The state of origin consequence has been defined as “the positive and negative influence that a product’s state of industry may hold on consumers’ determination devising processes or subsequent behaviour ( Elliott and Cameron. 1994 ) . 1991 ) . Infact in the words of Nagashima ( 1970 ) . COE can be defined as “the image. the repute. and the stereotype that business communities and consumers attach to merchandises or trade names of a specific state. This image is created by such variables as representative merchandises. national features. economic and political background. history. and traditions” . The literature on country-of-origin effects is rather rich and covers the subject from different positions in different states.
Some surveies have shown that state of beginning besides has symbolic and emotional significance to consumes. and it plays an of import function along with other properties such as quality and dependability in determining consumers attitudes toward merchandises. Furthermore. attitudes and perceptual experiences of consumers toward trade names and merchandises will depend on classs. for case. electronic goods from Italy may be perceived as a hapless quality but Italian vesture would be perceive as stylish and high quality ( Bikey and Nes. 1982 ) . This would be otherwise perceived with Nipponese trade names as Nipponese electronic goods would be perceive with positive attitudes and Nipponese vesture will be negatively perceived.
6. Monetary value
Research workers found out that one time consumers perceive a monetary value difference between local-owned and foreignowned trade names. monetary value unsimilarities begin to impact their penchant for local-owned trade names. Therefore. since monetary value is besides one of the most of import extrinsic cues that consumers use when measuring the product/brand ( Hansen. 2005 ) . we test the impact of monetary value against consumer’s ethnocentric inclinations to find at what point consumers are willing to abandon penchant for local merchandises for a greater monetary value price reduction with foreignowned merchandises.
7. Social position
Writers have stressed that consumers may prefer planetary trade names because of associations of higher prestigiousness ( Schuiling & A ; Kapferer. 2004 ; Shocker. Srivastava. & A ; Rueckert. 1994 ; Steenkamp. et. Al. . 2003 ) . Global trade names may hold a higher prestigiousness than local trade names due to their comparative scarceness and higher monetary value. Furthermore. planetary trade names may besides stand for cosmopolitanism.
Some consumers prefer planetary trade names because they enhance their selfimage as being cosmopolite. sophisticated. and modern. Conversely. harmonizing to Ger ( 1999 ) . local trade names tend to be targeted and positioned based on a deep cultural apprehension and hence create “a sustainable alone value and offer the symbolism of genuineness and prestige” . Still. consumers have been found to hold no intrinsic penchant for planetary trade names ( De Mooij. 1998 ) .
8. Friends and household
Mention groups include groups or people whom one can look up for counsel and inquire for sentiment. These are of import beginning of act uponing the trade name purchases. Reference group include friends and household who influence 1s purchasing determinations due to particular accomplishments. cognition. personality. If a friend had a bad experience with a merchandise. it is more likely that one will forbear from purchasing it. However many surveies found out that. knowledge that consumers obtain through direct personal experience will be perceived to be more trusty than information from other communications. This consequences in more strongly held beliefs ( Swaminathan et al. . 2001 ) .
9. Research Questions
The grounds for consumer penchant of planetary trade names over the local 1s. The merchandise attributes that are largely considered by consumers when purchasing a trade name. The demographic feature of consumers who buy foreign trade names more often.
10. Research methodological analysis
This survey is a descriptive survey and more of a qualitative nature and was conducted to place and analyse the grounds why consumers prefer international trade names to national trade names when buying consumer goods. The sample for this research included the 200 consumers whose ages ranged from 16-24 old ages from Karachi. Simple random sampling was used for this survey.
Questionnaires were used to roll up primary informations. The questionnaire included closed ended inquiries and Likert graduated table is used in most of the inquiries. These questionnaires were distributed to roll up informations from the pupils of Institute of Business Administration itself every bit good as the pupils of Institute of Business Management. Apart from this. we besides visited Park Towers shopping promenade and The Forum. the two taking shopping promenades in Karachi. with the purpose of roll uping informations for our research from the shoppers at that place. 50 questionnaires were distributed to each of the universities and shopping promenades in equal proportion to males and females.
We chiefly classified our population harmonizing to gender. Frequency distribution and saloon charts have been used to measure the consequences. In add-on to this. the means of different factors that influence consumers’ penchants of the local and planetary trade names were used to find which factors are considered the most by consumers when buying different trade names.
11. Findingss and Discussion
11. 1. Question 1:
Make you utilize international trade names merchandises?
Harmonizing to the informations collected. 72. 5 % of the people used international trade names of which 60 were male and 85 were females. 18. 5 % of the people questioned claimed to utilize international trade names on occasion. whereas. 9. 1 % of the people claimed non to utilize planetary trade names at all. As indicated in the pie charts above. 18. 5 % of the people who used the planetary trade names sometimes included 28 males and 9 females. and those who did non utilize the planetary trade names consisted of 12 males and 6 females.
11. 2. Question 2
If an international trade name and a national trade name are priced same. would you prefer the international trade name?
The intent of this inquiry was to measure and detect how of import a factor such as monetary value is in finding whether the consumers would travel for the domestic trade name or stick to the planetary 1 if both the merchandises were in the same monetary value scope. The consequences found out that 76 % of the consumers would travel for the international trade names whereas 24 % would still buy the domestic 1s.
11. 3. Question 3
Make you see where a merchandise is manufactured when buying it? F
This inquiry was asked to detect how much importance the young person lay on the state of beginning as a factor when doing a purchase. The consequences revealed far different consequences compared to what had been stated by the reappraisal of old researches done. As indicated in the graph. the young person was found to be mailnly ignorant of the state in which the trade name was manufactured. Majority of the consumers ( 76 % males and 88 % females ) did non see it as important a factor as to impact his or her purchase determination.
11. 4. Question 4
It is said that people buy international merchandises so that they can be accepted in a peculiar societal group. Do you hold?
The consequences to these two inquiries confirmed the general perceptual experience that exists in our society. that is. the planetary are purchased as a position symbol.
The young person chiefly bought foreign branded merchandises to be able to suit in a peculiar societal group. This occurs mostly because equal force per unit area tends to be high at this age. and most of the people find themselves being victims of lower status composites. The consequences to the first of these inquiries indicated that on mean 75 % of the young person ( 71 males and 79 females ) purchased the international and local trade names as a position symbol. These consequences were farther enhanced by the consequences to the following inquiry. which showed that 72 % of the males and 68 % of the females did. infact. believe that the people purchased the international trade names to be able to suit in a peculiar societal group.
The tabular array above compares the agencies of the different factors in act uponing consumer penchants of the planetary trade names over the local 1s. The means. expressed in per centums. indicates that amongst all the factors. the quality of the branded merchandise was considered the most of import factor in determining the consumers’ purchase determination. The current tendencies and manner were found to be merely as of import. but the monetary value of the merchandise was non found to be more of import than the prevalent manner and manners.
The ground why 85 % of the people decide to purchase a peculiar trade name was chiefly because it was brooding of the on-going manner and there were merely 5 % people on norm. who did non give importance to the on-going manner when buying a merchandise. The consequences revealed that monetary value was rated as the 3rd most of import factor in act uponing consumer pick. whereas the quality of the merchandise was considered the most important. followed by the current tendencies and manner.
Average figure of people ( in per centums )
16. 5 %
Monetary value of the merchandise
4. 5 %
13. 5 %
State of beginning
87. 5 %
7. 5 %
Quality of the merchandise
15. 5 %
Current manner and tendencies
64. 5 %
17. 55 %
Family and friends
20. 5 %
7. 5 %
9. 5 %
19. 5 %
State of beginning. as a factor in act uponing consumers’ pick of the trade name was barely a important factor. since 82 % of the people. on. norm claimed that they did non see which state a merchandise is manufactured in when doing purchase determinations. Merely 4. 5 % people. on norm. claimed that they do see the state of beginning when buying a trade name. The ethnocentrism factor was considered by 60 % of the people questioned. This indicates that most of the people believed that as a Pakistani we should purchase our local trade names instead than giving penchant to the planetary trade names. nevertheless. this was what they believed to be the ideal scenario.
In pattern. our people. particularly the females were found to be highly prone to the planetary trade name. Harmonizing to our findings. 78 % of the females were non willing to even replace the planetary trade name with a domestic if the foreign trade name is non available. The males. nevertheless. were non found to be that prone to the foreign trade name.
The consequences besides show that position symbol is besides perceived to be a major factor in determining consumer purchase determinations. The above tabular array reveals that 75 % of the people linked the branded merchandise with their societal position when really buying it. The tabular array provides a drumhead and evaluations of the factors act uponing consumer penchants of the national or international trade name.
[ 5 ] De Mooij. M. ( 2004 ) . Consumer behaviour and civilization. Thousand Oaks: Sage. [ 6 ] Elliott. G. R. and Camoron. R. C. ( 1994 ) . “Consumer perceptual experience of merchandise quality and the state of origin effect” . Journal of International Marketing. Volume 2 ( 2 ) . pp. 49-62. [ 7 ] Han. C. M. . 1989. Country Image: State Image: Halo or Summary Construct? Journal of Marketing Research. 26 ( May ) . 222-229.
[ 8 ] Hansen. T. . 2005. Positions on consumer determination devising: An incorporate attack. Journal of Consumer Behaviour 4 ( 6 ) . 420-437
[ 9 ] Heslop. L. A. and Papadopoulos. N. ( 1993 ) . “‘But who knows where or when’ : contemplations on the images of states and their products” . in Papadopoulos. L. A. and Heslop. N. ( Eds ) . Product-Country Images: Impact and Role in International Marketing. International Business Press. New York. NY. pp. 39-75. [ 10 ] Heslop. L. A. . Papadopolous. N. and Bourk. M. ( 1998 ) . “An interregional and intercultural position on subcultural differences in merchandise evaluations” . Canadian Journal of Administrative Sciences. Volume 15 ( 2 ) . pp. 113-127. [ 11 ] Keller. K. . ( 1998 ) . “Strategic Brand Management” . Prentice-Hall. New Jersey. [ 12 ] Kinra. N. ( 2006 ) . “The consequence of country-of-origin on foreign trade name names in the Indian market” . Marketing Intelligence & A ; Planning. Volume 24 ( 1 ) . pp. 15-30. [ 13 ] Lantz. G. and Loeb. S. ( 1996 ) . “Country of beginning and ethnocentrism: an analysis of Canadian and American penchants utilizing societal individuality theory” . Progresss in Consumer Research. Volume. 23. pp. 374-8. [ 14 ] Mazumdar. T. . Papatla. P. . 2000. An Probe of Reference Price Segments. Journal of Marketing Research ( JMR ) 37 ( 2 ) . 246-258. [ 15 ] Nagashima. A. ( 1970 ) . “A Comparison of Japanese and U. S. Attitudes Towards Foreign Products” . Journal of Marketing. Volume 34. January. pp. 68-74. [ 16 ] Netemeyer. R. G. . Durvasula. S. and Lichtenstein. D. R. ( 1991 ) . “A cross-national appraisal of the dependability and cogency of the CETSCALE” . Journal of Marketing Research. Volume 28. pp. 320-7. [ 17 ] Nguyen. T. . Barrett. N. . Miller. K. . 2005. Perceived Brand Globalness: Ancestors and Out-come – The Case of Vietnamese Consumers. Proceedings of the 34th EMAC Conference. 24-27 Mai 2005. Universita Commerciale Luigi Bocconi. Milan. Italy. [ 18 ] Shocker. A. D. . Srivastava. R. K. . & A ; Ruekert. R. W. ( 1994 ) : Challenges and chances confronting trade name direction: an debut to the particular issue. J. Selling Res. . 31 ( 2 ) . pp. 149-158. [ 19 ] Steenkamp. J-B. . Batra. R. . & A ; Alden. D. L. ( 2003 ) : How sensed trade name globalness creates trade name value. J. Int. Bus. Stud. . 34. pp. 53-65. [ 20 ] Summer. W. G. ( 1906 ) . Folkways: The Sociological Importance of uses. Mannerss. Customss. Moress and Morals. New York: Ginn & A ; Co.
[ 21 ] Wang. C. K. and Lamb. C. W. ( 1983 ) . “The impact of selected environmental forces on consumers willingness to purchase foreign products” . Journal of the Academy of Marketing Science. Volume 11 ( 2 ) . pp. 71-84. hypertext transfer protocol: //amcy5. com/projects/marketing/amcy20. htm