Description
In this A Project Report On Country of Origin Power of Image the effect of COO on consumer buying behavior is studied. A sample size of 75 is selected from people who frequently buy branded products. The sample were administered a questionnaire related to brands and their COO.
COUNTRY OF ORIGIN – POWER OF IMAGE
A Project Report On Country of Origin – Power of Image
Project submitted in partial fulfillment for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION
DECLARATION
I hereby declare that this Project Report titled “Country of Origin – Power of Image” Submitted by me to the Department of XXXX is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award any degree diploma/certificate or published any time before.
COUNTRY OF ORIGIN – POWER OF IMAGE
ACKNOWLEDGEMENT
The presentation of the report in the way required has been made possible by the way of contribution of many people. The completion of this project report titled “COUNTRY OF ORIGIN – POWER OF IMAGE” brings to express thanks to one &all of those who helped along the way. I am very thankful to XXXX, faculty –marketing, and my college project guide for guiding me to conduct my project report. I would also like express my gratitude to XXXXX, director of the college for giving his support and guidance throughout this project.
COUNTRY OF ORIGIN – POWER OF IMAGE
CONTENTS
1.0 2.0 3.0 4.0 5.0 ABSTRACT LITERATURE REVIEW INTRODUCTION OBJECTIVE OF STUDY METHODOLOGY 5.1 5.2 5.3 5.4 RESEARCH OBJECTIVES RESEARCH DESIGN DATA COLLECTION & PREPARATION DATA ANALYSIS & INTERPRETATION 5.4.1 5.4.2 5.4.3 5.4.3.1 5.4.3.2 5.4.3.3 5.4.3.4 5.4.4(A) 5.4.4(B) 5.4.4(C) 6.0 7.0 8.0 CONCLUSION REFERENCES ANNEXURES RESEARCH OBJECTIVE NO 1 RESEARCH OBJECTIVE NO 2 RESEARCH OBJECTIVE NO 3 STRONG BRAND – COO UNKNOWN STRONG BRAND – WEAK COO BRAND & COO COMPLEMENT EACH OTHER COO AWARENESS VERY HIGH RESEARCH OBJECTIVE NO 4 RESEARCH OBJECTIVE NO 5 CALCULATION OF PRICE ELASTICITIES
COUNTRY OF ORIGIN – POWER OF IMAGE
1.0 ABSTRACT
In this project the effect of COO on consumer buying behaviour is studied. A sample size of 75 is selected from people who frequently buy branded products. The sample were administered a questionnaire related to brands and their COO. Based on the responses obtained from the sample group, its found that, the effect of COO is having varied effect on the consumer buying behaviour. 72 brands were studied to understand the COO effect. Based on the responses the brands are categorized into four categories with varying COO awareness on consumer buying behaviour. In this project study is conducted on the image of brands/ products from developing countries and the consumer behaviour related to the same. Study is conducted on the willingness of the consumers to buy products from less-developed countries with respect developed countries. Study is also conducted on the effect of price-elasticity of nondurable and durable goods on the products from less developed countries.
COUNTRY OF ORIGIN – POWER OF IMAGE
2.0 LITERATURE REVIEW
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Is English a brand: Language of Origin’s Influence on Product Evaluation, Judy F Chen, H.T.Chang, The Overseas Chinese Institute Of Technology / National Changhua University Of Education Relevance Versus Convenience in Business Research: The Case of Country-ofOrigin Research in Marketing - Jean-Claude Usunier Country-of-Origin Effects on Consumers' Willingness To Buy Foreign Products: An Experiment in Consumer Decision Making – Yi Cai, University of Georgia, Brenda Cude, University of Georgia, Roger Swagler, University of Georgia. The influence of country of origin and brand on product evaluation and the implications thereof for location decisions - Günter Schweiger, Thomas Otter and Andreas Strebinger The Effects of the Country of Origin on the Evaluation of products: A State of the Art Review and Research Propositions - Emmanuel Ch€ron and Jan Propeck Country of Origin and Confidence in Quality of Imported Foods in China - John Knight and Hongzhi Gao, Marketing Department, Otago School of Business, University of Otago Country of origin information: a user and content evaluation - Beverley Morgan, Verity Gelsthorpe, Heaven Crawley and Gareth A. Jones The Impact of Country-of-Origin on Product Choice: A Developing Country Perspective Sa'ari Md. Nooh, State Administrative Officer, State Government of Johore, Johore, Malaysia; Thomas L. Powers, The University of Alabama at Birmingham
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COUNTRY OF ORIGIN – POWER OF IMAGE
3.0 INTRODUCTION
WHAT IS COO???? Country of origin (CO) is a potentially powerful image variable that can be used to gain competitive advantage in international marketing. The fact that images have the power to arouse and thereby influence a consumer's choice process is widely recognized. During the development of a firm's marketing communication mix, the marketing or advertising manager is often actively involved in creating, adapting, shaping, nurturing, monitoring, maintaining, and managing images. Country-of-origin (CO) image refers to "buyers' opinions regarding the relative qualities of goods and services produced in various countries". Among the image variables in the international advertiser's toolkit, the CO variable is conceivably the most potent if skillfully applied. IMPORTANCE OF COO…. "It has been found that all products originating in foreign countries are subject to countryof-origin [image] effects, further, CO-image studies in general show that "consumers have significantly different ... general perceptions about products made in different countries." There are at least four different ways in which the country of origin of a product could affect its evaluations. • • • As a product attribute whose implications combine with other attributes to influence evaluations, As a signal to infer more specific product characteristics, As a heuristic (to simplify the evaluation task), and As a standard relative to which the product is compared.
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The manner in which country of origin is used in evaluations was expected to depend on subjects' familiarity with the product being judged, the amount of attribute information available, the importance of the evaluation, and the order in which country-of-origin and intrinsic attribute information was received. • • • • Subjects' familiarity with the product being judged, The amount of attribute information available, The importance of the evaluation, and The order in which country-of-origin and intrinsic attribute information was received.
COUNTRY OF ORIGIN – POWER OF IMAGE
In fact, country of origin appeared to function in three of the four ways considered, but there was little evidence that it served as a heuristic in any condition. Results confirm the need to consider the use of country-of-origin information in several different capacities simultaneously rather than assuming that its effects result from a single underlying process The fact that images have the power to arouse and thereby influence a consumer's choice process is widely recognized. During the development of a firm's marketing communication mix, the marketing or advertising manager is often actively involved in creating, adapting, shaping, nurturing, monitoring, maintaining, and managing images. A variety of images (e.g., those associated with advertisements, symbols, logos, stores, brands, and corporations) can enhance or diminish a marketing or advertising manager's ability to cope with competition. The equity inherent in vivid images evoked by brand, corporate, or store names is obvious. After studying the state of research related to brand, store, advertising, and company images, Zinkhan and his collaborators (Dobni and Zinkhan 1990; Johnson and Zinkhan 1990; Villanova, Zinkhan, and Hyman 1990) reported several findings: (1) images play an important role in influencing the way the public responds to brands, products, services, stores, promotion, and organizations, (2) The importance of image is rooted in image theory, which maintains that human behavior is directed by individuals' images of their environment (3) An augmented product has not only a physical nature, but also a social and psychological one, and hence the sets of feelings, ideas, and attitudes that consumers have about products ("their image") are crucial to purchase choice. (4) Image is a vital concept for marketing managers, (5) The effectiveness of image variables depends on the precise definition and delineation of their various components and the appropriateness and accuracy with which they are measured, 6) Most important, because of the variations in definition, conceptualization of components, and measurement, much progress in research is needed before truly effective image measures (and hence images) can be developed.
Country-of-origin (CO) image refers to "buyers' opinions regarding the relative qualities of goods and services produced in various countries". Among the image variables in the international advertiser's toolkit, the CO variable is conceivably the most potent if
COUNTRY OF ORIGIN – POWER OF IMAGE
skillfully applied. It is often said that brand names like 'McDonald's' are worth millions. If so, how many billions is Germany's image worth? A few authors have questioned the magnitude of importance of CO image in affecting choice behavior but most acknowledge its salience in overall product evaluation and as a proxy for other, more intrinsic, qualities. Internationally, CO serves as a useful extrinsic cue (and as a surrogate for difficult-toevaluate intrinsic characteristics such as quality and performance) because consumers tend to be less familiar with foreign than with domestic products, "It has been found that all products originating in foreign countries are subject to country-of-origin [image] effects."
COUNTRY OF ORIGIN – POWER OF IMAGE
4.0 OBJECTIVE OF STUDY - TO KNOW HOW THE COO IMAGE AFFECTS THE BUYING BEHAVIOUR OF THE CONSUMERS
5.0 5.1
METHODOLOGY RESEARCH OBJECTIVES
1. To know whether consumers still attach importance to the country where a product is manufactured 2. To know whether this piece of information still available and accessible to consumers 3. To know that, to what extent does brand image tend to blur origin labeling information 4. To know whether consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from lessdeveloped countries decreases, consumers will increase their willingness to buy those products. 5. To know whether Consumers' demand for non-durable goods from a lessdeveloped country is more price elastic than for durable goods from the same country of origin. 5.2 RESEARCH DESIGN
Research method – research will be based on survey method. Survey will be based on a questionnaire related to brands and their COO. Sample Group – Sample group will be a mix of women and men & college students and who frequently buy branded products. Sampling method – Sampling method is Judgmental sampling. Questionnaire will be administered to sample group consisting of working men/ women and college students. The group frequently purchases branded products and are a good sample to identify the brand and COO awareness. The sample could be a good representation of the population. Method of administering questionnaire: • • By e-mails By giving hard copy of the questionnaire
Sample size – Sample size consists of 75 respondents .
COUNTRY OF ORIGIN – POWER OF IMAGE
5.3 DATA COLLECTION AND PREPARATION
SAMPLE QUESTIONNAIRE:
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Question COO - Country Of Origin - The country where the product is manufactured If you are to buy a TV from a list brands only with the information of 1 COO of the TV. What will be your priority list? Top priority is 1 , least priority is 5 South Korea Japan China America Bangladesh If you are to buy a bottle of perfume from a list brands only with the 2 information of COO of the perfume. What will be your priority list? Top priority is 1 , least priority is 5 France America Japan Spain UAE
Priority
COUNTRY OF ORIGIN – POWER OF IMAGE
If you are to buy a CAR from a list brands only with the information of 3 COO of the CAR. What will be your priority list? Top priority is 1 , least priority is 5 Germany South Korea China America Japan If you are to buy a leather bag from a list brands only with the 4 information of COO of the leather bag. What will be your priority list? Top priority is 1 , least priority is 5 France South Korea China America Japan If SONY TV is being produced from different plants as mentioned 5 below, what will be your priority to pick the TV? What will be your priority list? Top priority is 1 , least priority is 5 Japan UAE Bangladesh Korea China
5.4
DATA ANALYSIS & INTERPRETATION
COUNTRY OF ORIGIN – POWER OF IMAGE
Analysis is basically interpretive only due to the kind of data available for analysis. 5.4.1 Research objective no 1 - Consumers still attach importance to the country where a product is manufactured
5.4.1.1 Question no 1 – If you are to buy a TV from a list brands only with the information of COO of the TV. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, almost no respondent is willing to buy TV from Bangladesh. As far as the country image is concerned, Japan has the best image of manufacturing TVs. Rank 1 10 57 6 2 0 Rank 2 23 13 15 24 1 Rank 3 32 3 9 31 0 Rank 4 9 2 41 16 7 Rank 5 2 0 4 2 67
South Korea Japan China America Bangladesh
Based on the survey, consumers prefer to buy TVs based on the following priority: Japan – 1st priority USA – 2nd priority South Korea – 3rd priority China – 4th priority Bangladesh – 5th priority The point here is, Japan has a very good COO image when it comes to manufacture of electronic products. 5.4.1.2 Question no 2 - If you are to buy a bottle of perfume from a list brands only with the information of COO of the perfume. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product
COUNTRY OF ORIGIN – POWER OF IMAGE
is manufactured. In response to the question above, most of the respondents prefer to buy a bottle of perfume from France. The next preferred country is USA. Rank 1 50 9 3 3 10 Rank 2 12 26 4 15 18 Rank 3 6 20 11 29 9 Rank 4 6 19 24 18 8 Rank 5 1 1 33 10 30
France America Japan Spain UAE
Based on the survey, consumers prefer to buy a bottle of perfume based on the following priority: France – 1st priority USA – 2nd priority Spain– 3rd priority Japan – 4th priority UAE – 5th priority The point here is, France has a very good COO image when it comes to manufacture of perfume. 5.4.1.3 Question no 3 - If you are to buy a CAR from a list brands only with the information of COO of the CAR. Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, most of the respondents prefer to buy a car from Germany. The next preferred country is Japan. China is the least preferred country, from which consumers prefer to buy a car. Rank 1 37 6 2 5 25 Rank 2 19 12 3 18 23 Rank 3 10 14 11 28 12 Rank 4 7 27 10 20 11 Rank 5 2 16 49 4 4
Germany South Korea China America Japan
Based on the survey, consumers prefer to buy a car based on the following priority: Germany – 1st priority Japan – 2nd priority USA – 3rd priority
COUNTRY OF ORIGIN – POWER OF IMAGE
S.Korea – 4th priority China – 5th priority The point here is, Germany has a very good COO image when it comes to manufacture of cars, Japan is almost close to it. 5.4.1.4 Question no 4 - If you are to buy a leather bag from a list brands only with the information of COO of the leather bag. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, most of the respondents prefer to buy a leather bag from China. The next preferred country is France. Japan is the least preferred country, from which consumers prefer to buy a leather bag. Rank 1 21 12 22 15 5 Rank 2 18 18 13 16 10 Rank 3 8 28 14 9 16 Rank 4 16 9 9 26 15 Rank 5 12 8 17 9 29
France South Korea China America Japan
Based on the survey, consumers prefer to buy a leather bag based on the following priority: China – 1st priority France – 2nd priority S.Korea – 3rd priority USA – 4th priority Japan – 5th priority The point here is, China has a very good COO image when it comes to manufacture of leather bags – and leather accessories… 5.4.1.5 Question no 5 - If SONY TV is being produced from different plants as mentioned below, what will be your priority to pick the TV? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, consumers prefer to buy a branded TV from a preferred country. When these responses are read in conjunction with
COUNTRY OF ORIGIN – POWER OF IMAGE
responses to question no 1 it can be inferred that COO image prevails in the minds of the consumers. As far as the country image is concerned, Japan has the best image of manufacturing TVs. Rank 1 59 2 2 7 5 Rank 2 10 9 3 45 8 Rank 3 4 20 1 11 39 Rank 4 2 31 16 8 18 Rank 5 0 13 53 4 5
Japan UAE Bangladesh Korea China
Based on the survey, consumers prefer to buy branded TVs based on the following priority: Japan – 1st priority S.Korea – 2nd priority China – 3rd priority UAE – 4th priority Bangladesh – 5th priority The point here is, Japan has a very good COO image when it comes to manufacture of electronic products. Even when a product is branded, the COO plays a role in successful adoption of the product by the consumer.
5.4.2 Research objective no 2 - This piece of information still available and accessible to consumers Various advertisements tend to propose the COO to gain advantage from consumer’s perception about the COO.
Examples:
COUNTRY OF ORIGIN – POWER OF IMAGE
This tendency is specifically visible in the following segments: • • Apparel including luxury watches Cosmetics
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3 Research objective no 3 - To what extent does brand image tend to blur originlabeling information To analyze this issue I have considered 72 well known brands in eleven (11) different segments: Apparel; Automobile; Beverages; Cosmetics; Entertainment; FMCG; Industrial Products; IT; Service; Telecom and White Goods The brands are mostly foreign brands. I use some well known few Indian brands, to check how these brands are perceived by the consumers
COUNTRY OF ORIGIN – POWER OF IMAGE
The brands are: Name of the Brand Adidas Apple Axe BMW Cadburys Café Coffee Day Calvin Klein Cartier Charlie Citibank Coca-Cola Colgate Dell Denim Disney Domino's Electrolux Elle 18 Ericcson Ford Garnier GE Gillette Google Gucci Heinz Hewlett-Packard Honda Hyundai IBM Intel Johnson & Johnson Kellogg's Kodak Levi's LG Name of the Brand Lo'real Lotto Marlboro Maybelline McDonalds Microsoft Motorola Nescafe Nestle Nike Nivea Nokia Omega Oracle Panasonic Pantene Pepsi Philips PizzaHut Reebok Revlon Rolex Samsung SAP Siemens Smirnoff Sony Toyota Unilever Wal-Mart Whirlpool Woodland Xerox Yahoo Knorr Hershey's
Country of Origin Germany USA UK Germany UK INDIA USA France USA USA USA USA USA USA USA USA Sweden India Sweden USA France USA USA USA Italy USA USA Japan South Korea USA USA USA USA USA USA South Korea
Country of Origin France Italy USA France USA USA USA SWITZERLAND SWITZERLAND USA Germany Finland SWITZERLAND USA Japan USA USA Netherlands USA USA USA UKSWITZERLAND South Korea Germany Germany Russia Japan Japan UK- Netherlands USA USA INDIA USA USA UK- Netherlands USA
COUNTRY OF ORIGIN – POWER OF IMAGE
Based on the results obtained from the survey, I segregated the brands into following categories: • Strong Brand – COO Unknown • Strong Brand – COO Weak • Brand and COO Complement Each Other • COO awareness is very high Sample size is 75
COUNTRY OF ORIGIN – POWER OF IMAGE
Basis of segregation: Sl. 1 2 3 CRITERION No of correct answers to questionnaire equal to ZERO No of correct answers to questionnaire (>1, <=7) No of correct answers to questionnaire (>7, <=18) No of correct answers to questionnaire (>18) COO AWARENESS STRONG BRAND – COO UNKNOWN STRONG BRAND – COO WEAK BRAND & COO COMPLEMENT EACH OTHER COO AWARENESS VERY HIGH
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5.4.3.1 STRONG BRAND – COO UNKNOWN How Correct Wrong Many Answers Answers Answered 35 0 35 25 0 25 11 0 11 9 0 9 16 0 16
Brand Adidas Axe Electrolux Knorr Omega
Sample Size 75 75 75 75 75
No Answers 40 50 64 66 59
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.2 STRONG BRAND – WEAK COO How Many Answered 21 16 1 15 25 16 11 7 19 19 17 14 18 23 16 20 23
Brand Ericcson Garnier Cartier Lotto Cadburys Elle 18 Charlie Gucci Nivea Woodland Nescafe Smirnoff Calvin Klein Kodak Maybelline Café CoffeeDay Phillips
Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75
Correct Answers 1 1 1 1 2 2 2 3 3 3 4 4 5 5 5 6 6
Wrong Answers 20 15 0 14 23 14 9 4 16 16 13 10 13 18 11 14 17
No Answers 54 59 74 60 50 59 64 68 56 56 58 61 57 52 59 55 52
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.3 Brand and COO Complement Each Other How Many Answered 21 28 29 15 32 19 20 20 19 30 17 19 24 18 20 24 19 31 26 26 22
Brand Xerox Nestle Revlon Hershey's Motorola Marlboro Whirlpool Pantene Domino's Ford Kellogg's Reebok PizzaHut Heinz Denim Unilever Levi's Colgate Lo'real Rolex Siemens
Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75
Correct Answers 8 8 8 10 10 11 11 11 11 12 12 13 14 14 15 15 16 16 16 17 17
Wrong Answers 13 20 21 5 22 8 9 9 8 18 9 6 10 4 5 9 3 15 10 9 5
No Answers 54 47 46 60 43 56 55 55 56 45 58 56 51 57 55 51 56 44 49 49 53
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.4 COO AWARENESS IS VERY HIGH – BRANDS THAT SCORED HIGH ON COO AWARENESS Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 How Many Answered 27 24 25 31 28 37 29 28 26 31 28 50 44 36 30 31 32 39 38 37 53 36 37 41 52 49 48 56 55 Correct Answers 19 20 21 23 23 24 24 24 25 25 26 27 27 27 28 29 30 31 32 33 33 35 35 41 42 43 47 52 53 Wrong Answers 8 4 4 8 5 13 5 4 1 6 2 23 17 9 2 2 2 8 6 4 20 1 2 0 10 6 1 4 2 No Answers 48 51 50 44 47 38 46 47 49 44 47 25 31 39 45 44 43 36 37 38 22 39 38 34 23 26 27 19 20
Brand Gillette Hewlett-Packard (HP) Johnson & Johnson BMW SAP Samsung Nike Oracle Intel Citibank Google Hyundai Toyota Panasonic Dell GE Pepsi Honda Wal-Mart IBM Nokia Disney Yahoo McDonalds LG Sony Apple Coca-Cola Microsoft
5.4.4(A) Research Objective no 4 - Ceteris paribus, consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products.
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.4(B) Research Objective no 5 - Consumers' demand for non-durable goods from a lessdeveloped country is more price elastic than for durable goods from the same country of origin.
Question no 6 - Offer ---Product – Refrigerator Price: Rs. 25,000.00 – COO – Bangladesh Price: Rs. 17,000.00 – COO – Japan When the above offer is given to 75 respondents, 69 respondents chose to buy the product of COO – Japan. 6 chose to buy from Bangladesh Responses: Rank 1 6 69 Rank 2 69 6
Product from Bangladesh Product from Japan Question no 7 - Offer ----
Product – Refrigerator; Price: Rs. 25,000.00 – COO – Japan Price: Rs. 17,000.00 – COO – Bangladesh When the above offer is given to 75 respondents, 59 respondents chose to buy the product with COO – Japan and 16 respondents chose to buy product with COO Bangladesh
Responses: Rank 1 16 59 Rank 2 59 16
Product from Bangladesh Product from Japan
COUNTRY OF ORIGIN – POWER OF IMAGE
Interpreting from the responses for question no 6 & 7, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 4. Question no 8 - Offer ---Product – Iron Box; Price: Rs. 2500.00 – COO – Japan Price: Rs. 1700.00 – COO – Bangladesh Responses: Rank 1 30 45 Rank 2 45 30
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 45 respondents chose to buy the product with COO – Japan and 30 respondents chose to buy product with COO Bangladesh Question no 9 - Offer ---Product – Iron Box; Price: Rs. 1700.00 – COO – Japan Price: Rs. 2500.00 – COO – Bangladesh Responses: Rank 1 6 69 Rank 2 69 6
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 69 respondents chose to buy the product with COO – Japan and 6 respondents chose to buy product with COO Bangladesh Interpreting from the responses for question no 8 & 9, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 4.
COUNTRY OF ORIGIN – POWER OF IMAGE
Also, this shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 10 - Offer ---Product – Normal Lead Cell; Price: Rs. 12.00 – COO – Japan Price: Rs. 21.00 – COO – Bangladesh Responses: Rank 1 9 66 Rank 2 66 9
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 66 respondents chose to buy the product with COO – Japan and 9 chose to buy the product with COO Bangladesh. Interpreting from the responses for question no 10 & 11, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 5. This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 11 - Offer ---Product – Normal Lead Cell; Price: Rs. 21.00 – COO – Japan Price: Rs. 12.00 – COO – Bangladesh Responses: Rank 1 28 47 Rank 2 47 28
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 47 respondents chose to buy the product with COO – Japan and 28 respondents chose to buy product with COO Bangladesh
COUNTRY OF ORIGIN – POWER OF IMAGE
This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5.
Question no 12 - Offer ---Product – Use and throw ball pen; Price: Rs. 11.00 – COO – Japan Price: Rs. 7.00 – COO – Bangladesh Responses: Rank 1 44 31 Rank 2 44 31
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 44 respondents chose to buy the product with COO – Japan and 31 respondents chose to buy product with COO Bangladesh This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 13 - Offer ---Product – Use and throw ball pen; Price: Rs. 7.00 – COO – Japan Price: Rs. 11.00 – COO – Bangladesh Responses: Rank 1 7 68 Rank 2 68 7
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 68 respondents chose to buy the product with COO – Japan and 7 respondents chose to buy product with COO Bangladesh
COUNTRY OF ORIGIN – POWER OF IMAGE
This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. 5.4.4 (C) - Calculation of Price Elasticities: Assumption: 1. 2. Consumer preference to buy a product is considered to result in a sale of one unit of the product. At the time calculating price Elasticities for a product, price of the product from other COO is also considered to be same. No of units demanded – Products from Japan are cheaper Japan Bangladesh 69 6 69 6 66 9 68 7 No of units demanded– Products from Bangladesh are cheaper Japan Bangladesh 59 16 45 30 47 28 31 44
Item Refrigerator Iron Box Lead Cell Ball Pen
Sl. 1 2
Product- Refrigerator Bangladesh Price in Rs Qty Demanded 25000.00 6 17000.00 16
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[16-6] / [16 + 6]] * 2 = 0.9 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2]
COUNTRY OF ORIGIN – POWER OF IMAGE
= [[17000-25000] / [25000 + 17000]] *2 = -0.30895 PEoD = 0.9/-0.30895 = -2.91 Product- Refrigerator Japan Price in Rs Qty Demanded 25000.00 59 17000.00 69
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[69-59] / [69 + 59]] * 2 = 0.015625 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[17000-25000] / [25000 + 17000]] *2 = -0.30895 PEoD = 0.015625/-0.30895 = -0.05057
Product – Iron Box; Product- Iron Box Bangladesh Price in Rs Qty Demanded 2500.00 30 1700.00 6
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded)
COUNTRY OF ORIGIN – POWER OF IMAGE
= [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[30-6] / [30 +6]] * 2 = 1.333 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[1700-2500] / [2500 + 1700]] *2 = -0.30895 PEoD = 1.333/-0.30895 = -4.3146 Product- Iron Box Japan Price in Rs Qty Demanded 2500.00 45 1700.00 69
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price)
COUNTRY OF ORIGIN – POWER OF IMAGE
(% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[69-45] / [69 + 45]] * 2 = 0.42105 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[1700-2500] / [2500 + 1700]] *2 = -0.30895 PEoD = 0.42105/-0.30895 = -1.36284 Product- Lead Acid Cell Bangladesh Price in Rs Qty Demanded 21.00 9 12.00 28
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[28-9] / [28+9]] * 2 = 1.027 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[12-21] / [12 + 21]] *2 = -0.5454 PEoD = 1.027/-0.5454 = -1.883
COUNTRY OF ORIGIN – POWER OF IMAGE
Product- Lead Acid Cell Japan Price in Rs Qty Demanded 21.00 47 12.00 66
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[66-47] / [66 + 47]] * 2 = 0.3362 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[12-21] / [12 + 21]] *2 = -0.5454 PEoD = 0.3362/-0.5454 = -0.61642
Sl. 1 2
Product- Ball Pen Bangladesh Price in Rs Qty Demanded 7.00 44 11.00 7
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[7-44] / [7 + 44]] * 2 = -1.45
COUNTRY OF ORIGIN – POWER OF IMAGE
(% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[11-7] / [11 + 7]] *2 = 0.444 PEoD = -1.45/0.444 = -3.265
Sl. 1 2
Product- Ball Pen Japan Price in Rs Qty Demanded 7.00 68 11.00 31
Arc Price Elasticity of Demand
PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[31-68] / [31 + 68]] * 2 = -0.74 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[11-7] / [11 + 7]] *2 = 0.444 PEoD = -0.74/0.444 = -1.667
COUNTRY OF ORIGIN – POWER OF IMAGE
Tabulation of Elasticities: Sl 1 2 3 4 Product Refrigerator Iron Box Lead Acid Cell Ball Pen Nature of the goods Durable Durable Non - durable Non - durable Elasticities Japan Bangladesh -0.05057 -2.91 -1.36284 -4.3146 -0.61642 -1.883 -1.667 -3.265
From the above price elasticity table it is evident that • Consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products. Consumers' demand for non-durable goods from a less-developed country is more price elastic than for durable goods from the same country of origin.
•
COUNTRY OF ORIGIN – POWER OF IMAGE
6.0 • • • CONCLUSION Japan has a very good COO image when it comes to manufacture of electronic products. France has a very good COO image when it comes to manufacture of perfume. Germany and Japan has a very good COO image when it comes to manufacture of cars. China and France has a very good COO image when it comes to manufacture of leather bags – fashion accessories… Japan has a very good COO image when it comes to manufacture of electronic products. Even when a product is branded, the COO plays a role in successful adoption of the product by the consumer. American, Japanese and South Korean brands have high awareness of COO in the consumers. COO awareness in the area of engineering products is high. Consumers still attach importance to the country where a product is manufactured The information of COO is still available and accessible to consumers through media and word of mouth To some extent brand image tend to blur origin labeling information Consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products. Consumers' demand for non-durable goods from a less-developed country is more price elastic than for durable goods from the same country of origin.
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COUNTRY OF ORIGIN – POWER OF IMAGE
7.0 REFERENCES
1.
The Role of Country of Origin in Product Evaluations - Wai-Kwan Li, Department of Marketing, University of Texas-Pan American Robert S. Wyer, Jr.? ,University of Illinois at Urbana-Champaign
2.
Facets of country of origin image: an empirical assessment.- Parameswaran, Ravi; Pisharodi, R. Mohan, Journal of Advertising: March, 1994 issue
3. 8.0 1.
Hoover's: Global Export Marketing Co., Ltd. Company Research ANNEXURES Questionnaire
COUNTRY OF ORIGIN – POWER OF IMAGE
ANNEXURE NO 1 – QUESTIONNAIRE
Sl Question COO - Counrtry Of Origon - The country where the product is manufactured If you are to buy a TV from a list brands only with the information of COO of the TV.What will be your priority list? Top priority is 1 , least priority is 5 South Korea Japan China America Bangladesh If you are to buy a bottle of perfume from a list brands only with the information of COO of the perfume.What will be your priority list? Top priority is 1 , least priority is 5 France America Japan Spain UAE If you are to buy a CAR from a list brands only with the information of COO of the CARe.What will be your priority list? Top priority is 1 , least priority is 5 Germany South Korea China America Japan If you are to buy a leather bag from a list brands only with the information of COO of the leather bag.What will be your priority list? Top priority is 1 , least priority is 5 France South Korea China America Japan If SONY TV is being produced from different plants as mentioned below, what will be your priority to pick the TV? What will be your priority list? Top priority is 1 , least priority is 5 Priority
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COUNTRY OF ORIGIN – POWER OF IMAGE
Japan UAE Bangladesh Korea China If a Refrigerator manufactured by a company based in Bangladesh and costs Rs. 25,000.00 and a similar Refrigerator is manufactured by a companybased in Japan and costs Rs. 17,000.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a Refrigerator manufactured by a company based in Bangladesh and costs Rs. 17,000.00 and a similar Refrigerator is manufactured by a companybased in Japan and costs Rs. 25,000.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If an iron box manufactured by a company based in Bangladesh and costs Rs. 1700.00 and a similar iron box is manufactured by a companybased in Japan and costs Rs. 2500.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If an iron box manufactured by a company based in Bangladesh and costs Rs. 2500.00 and a similar iron box is manufactured by a companybased in Japan and costs Rs. 1700.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If normal lead acid cell manufactured by a company based in Bangladesh and costs Rs. 21.00 and a similar lead acid cell is manufactured by a company based in Japan and costs Rs. 12.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan
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COUNTRY OF ORIGIN – POWER OF IMAGE
If normal lead acid cell manufactured by a company based in Bangladesh and costs Rs. 12.00 and a similar lead acid cell is manufactured by a company based in Japan and costs Rs. 21.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a use and throw ball pen manufactured by a company based in Bangladesh and costs Rs. 7.00 and a similar use and throw ball pen is manufactured by a company based in Japan and costs Rs. 11.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a use and throw ball pen manufactured by a company based in Bangladesh and costs Rs. 11.00 and a similar use and throw ball pen is manufactured by a company based in Japan and costs Rs. 7.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan
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COUNTRY OF ORIGIN – POWER OF IMAGE
14
Do you know from which country these brands are from? If yes, please write the country name (please do not browse information from internet/other secondary sources to answer this question) Adidas Apple Axe BMW Cadburys Café Coffee Day Calvin Klein Cartier Charlie Citibank Coca-Cola Colgate Dell Denim Disney Domino's Electrolux Elle 18 Ericcson Ford Garnier GE Gillette Google Gucci Heinz Hewlett-Packard Honda Hyundai IBM Intel Johnson & Johnson Kellogg's Kodak Levi's LG Lo'real Lotto Marlboro Maybelline McDonalds Microsoft Motorola Nescafe Nestle
Yes
No
If, Yes Country's Name
COUNTRY OF ORIGIN – POWER OF IMAGE
Nike Nivea Nokia Omega Oracle Panasonic Pantene Pepsi Philips Pizza Hut Reebok Revlon Rolex Samsung SAP Siemens Smirnoff Sony Toyota Unilever Wal-Mart Whirlpool Woodland Xerox Yahoo Knorr Hershey's
doc_977338653.doc
In this A Project Report On Country of Origin Power of Image the effect of COO on consumer buying behavior is studied. A sample size of 75 is selected from people who frequently buy branded products. The sample were administered a questionnaire related to brands and their COO.
COUNTRY OF ORIGIN – POWER OF IMAGE
A Project Report On Country of Origin – Power of Image
Project submitted in partial fulfillment for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION
DECLARATION
I hereby declare that this Project Report titled “Country of Origin – Power of Image” Submitted by me to the Department of XXXX is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award any degree diploma/certificate or published any time before.
COUNTRY OF ORIGIN – POWER OF IMAGE
ACKNOWLEDGEMENT
The presentation of the report in the way required has been made possible by the way of contribution of many people. The completion of this project report titled “COUNTRY OF ORIGIN – POWER OF IMAGE” brings to express thanks to one &all of those who helped along the way. I am very thankful to XXXX, faculty –marketing, and my college project guide for guiding me to conduct my project report. I would also like express my gratitude to XXXXX, director of the college for giving his support and guidance throughout this project.
COUNTRY OF ORIGIN – POWER OF IMAGE
CONTENTS
1.0 2.0 3.0 4.0 5.0 ABSTRACT LITERATURE REVIEW INTRODUCTION OBJECTIVE OF STUDY METHODOLOGY 5.1 5.2 5.3 5.4 RESEARCH OBJECTIVES RESEARCH DESIGN DATA COLLECTION & PREPARATION DATA ANALYSIS & INTERPRETATION 5.4.1 5.4.2 5.4.3 5.4.3.1 5.4.3.2 5.4.3.3 5.4.3.4 5.4.4(A) 5.4.4(B) 5.4.4(C) 6.0 7.0 8.0 CONCLUSION REFERENCES ANNEXURES RESEARCH OBJECTIVE NO 1 RESEARCH OBJECTIVE NO 2 RESEARCH OBJECTIVE NO 3 STRONG BRAND – COO UNKNOWN STRONG BRAND – WEAK COO BRAND & COO COMPLEMENT EACH OTHER COO AWARENESS VERY HIGH RESEARCH OBJECTIVE NO 4 RESEARCH OBJECTIVE NO 5 CALCULATION OF PRICE ELASTICITIES
COUNTRY OF ORIGIN – POWER OF IMAGE
1.0 ABSTRACT
In this project the effect of COO on consumer buying behaviour is studied. A sample size of 75 is selected from people who frequently buy branded products. The sample were administered a questionnaire related to brands and their COO. Based on the responses obtained from the sample group, its found that, the effect of COO is having varied effect on the consumer buying behaviour. 72 brands were studied to understand the COO effect. Based on the responses the brands are categorized into four categories with varying COO awareness on consumer buying behaviour. In this project study is conducted on the image of brands/ products from developing countries and the consumer behaviour related to the same. Study is conducted on the willingness of the consumers to buy products from less-developed countries with respect developed countries. Study is also conducted on the effect of price-elasticity of nondurable and durable goods on the products from less developed countries.
COUNTRY OF ORIGIN – POWER OF IMAGE
2.0 LITERATURE REVIEW
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Is English a brand: Language of Origin’s Influence on Product Evaluation, Judy F Chen, H.T.Chang, The Overseas Chinese Institute Of Technology / National Changhua University Of Education Relevance Versus Convenience in Business Research: The Case of Country-ofOrigin Research in Marketing - Jean-Claude Usunier Country-of-Origin Effects on Consumers' Willingness To Buy Foreign Products: An Experiment in Consumer Decision Making – Yi Cai, University of Georgia, Brenda Cude, University of Georgia, Roger Swagler, University of Georgia. The influence of country of origin and brand on product evaluation and the implications thereof for location decisions - Günter Schweiger, Thomas Otter and Andreas Strebinger The Effects of the Country of Origin on the Evaluation of products: A State of the Art Review and Research Propositions - Emmanuel Ch€ron and Jan Propeck Country of Origin and Confidence in Quality of Imported Foods in China - John Knight and Hongzhi Gao, Marketing Department, Otago School of Business, University of Otago Country of origin information: a user and content evaluation - Beverley Morgan, Verity Gelsthorpe, Heaven Crawley and Gareth A. Jones The Impact of Country-of-Origin on Product Choice: A Developing Country Perspective Sa'ari Md. Nooh, State Administrative Officer, State Government of Johore, Johore, Malaysia; Thomas L. Powers, The University of Alabama at Birmingham
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COUNTRY OF ORIGIN – POWER OF IMAGE
3.0 INTRODUCTION
WHAT IS COO???? Country of origin (CO) is a potentially powerful image variable that can be used to gain competitive advantage in international marketing. The fact that images have the power to arouse and thereby influence a consumer's choice process is widely recognized. During the development of a firm's marketing communication mix, the marketing or advertising manager is often actively involved in creating, adapting, shaping, nurturing, monitoring, maintaining, and managing images. Country-of-origin (CO) image refers to "buyers' opinions regarding the relative qualities of goods and services produced in various countries". Among the image variables in the international advertiser's toolkit, the CO variable is conceivably the most potent if skillfully applied. IMPORTANCE OF COO…. "It has been found that all products originating in foreign countries are subject to countryof-origin [image] effects, further, CO-image studies in general show that "consumers have significantly different ... general perceptions about products made in different countries." There are at least four different ways in which the country of origin of a product could affect its evaluations. • • • As a product attribute whose implications combine with other attributes to influence evaluations, As a signal to infer more specific product characteristics, As a heuristic (to simplify the evaluation task), and As a standard relative to which the product is compared.
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The manner in which country of origin is used in evaluations was expected to depend on subjects' familiarity with the product being judged, the amount of attribute information available, the importance of the evaluation, and the order in which country-of-origin and intrinsic attribute information was received. • • • • Subjects' familiarity with the product being judged, The amount of attribute information available, The importance of the evaluation, and The order in which country-of-origin and intrinsic attribute information was received.
COUNTRY OF ORIGIN – POWER OF IMAGE
In fact, country of origin appeared to function in three of the four ways considered, but there was little evidence that it served as a heuristic in any condition. Results confirm the need to consider the use of country-of-origin information in several different capacities simultaneously rather than assuming that its effects result from a single underlying process The fact that images have the power to arouse and thereby influence a consumer's choice process is widely recognized. During the development of a firm's marketing communication mix, the marketing or advertising manager is often actively involved in creating, adapting, shaping, nurturing, monitoring, maintaining, and managing images. A variety of images (e.g., those associated with advertisements, symbols, logos, stores, brands, and corporations) can enhance or diminish a marketing or advertising manager's ability to cope with competition. The equity inherent in vivid images evoked by brand, corporate, or store names is obvious. After studying the state of research related to brand, store, advertising, and company images, Zinkhan and his collaborators (Dobni and Zinkhan 1990; Johnson and Zinkhan 1990; Villanova, Zinkhan, and Hyman 1990) reported several findings: (1) images play an important role in influencing the way the public responds to brands, products, services, stores, promotion, and organizations, (2) The importance of image is rooted in image theory, which maintains that human behavior is directed by individuals' images of their environment (3) An augmented product has not only a physical nature, but also a social and psychological one, and hence the sets of feelings, ideas, and attitudes that consumers have about products ("their image") are crucial to purchase choice. (4) Image is a vital concept for marketing managers, (5) The effectiveness of image variables depends on the precise definition and delineation of their various components and the appropriateness and accuracy with which they are measured, 6) Most important, because of the variations in definition, conceptualization of components, and measurement, much progress in research is needed before truly effective image measures (and hence images) can be developed.
Country-of-origin (CO) image refers to "buyers' opinions regarding the relative qualities of goods and services produced in various countries". Among the image variables in the international advertiser's toolkit, the CO variable is conceivably the most potent if
COUNTRY OF ORIGIN – POWER OF IMAGE
skillfully applied. It is often said that brand names like 'McDonald's' are worth millions. If so, how many billions is Germany's image worth? A few authors have questioned the magnitude of importance of CO image in affecting choice behavior but most acknowledge its salience in overall product evaluation and as a proxy for other, more intrinsic, qualities. Internationally, CO serves as a useful extrinsic cue (and as a surrogate for difficult-toevaluate intrinsic characteristics such as quality and performance) because consumers tend to be less familiar with foreign than with domestic products, "It has been found that all products originating in foreign countries are subject to country-of-origin [image] effects."
COUNTRY OF ORIGIN – POWER OF IMAGE
4.0 OBJECTIVE OF STUDY - TO KNOW HOW THE COO IMAGE AFFECTS THE BUYING BEHAVIOUR OF THE CONSUMERS
5.0 5.1
METHODOLOGY RESEARCH OBJECTIVES
1. To know whether consumers still attach importance to the country where a product is manufactured 2. To know whether this piece of information still available and accessible to consumers 3. To know that, to what extent does brand image tend to blur origin labeling information 4. To know whether consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from lessdeveloped countries decreases, consumers will increase their willingness to buy those products. 5. To know whether Consumers' demand for non-durable goods from a lessdeveloped country is more price elastic than for durable goods from the same country of origin. 5.2 RESEARCH DESIGN
Research method – research will be based on survey method. Survey will be based on a questionnaire related to brands and their COO. Sample Group – Sample group will be a mix of women and men & college students and who frequently buy branded products. Sampling method – Sampling method is Judgmental sampling. Questionnaire will be administered to sample group consisting of working men/ women and college students. The group frequently purchases branded products and are a good sample to identify the brand and COO awareness. The sample could be a good representation of the population. Method of administering questionnaire: • • By e-mails By giving hard copy of the questionnaire
Sample size – Sample size consists of 75 respondents .
COUNTRY OF ORIGIN – POWER OF IMAGE
5.3 DATA COLLECTION AND PREPARATION
SAMPLE QUESTIONNAIRE:
Sl
Question COO - Country Of Origin - The country where the product is manufactured If you are to buy a TV from a list brands only with the information of 1 COO of the TV. What will be your priority list? Top priority is 1 , least priority is 5 South Korea Japan China America Bangladesh If you are to buy a bottle of perfume from a list brands only with the 2 information of COO of the perfume. What will be your priority list? Top priority is 1 , least priority is 5 France America Japan Spain UAE
Priority
COUNTRY OF ORIGIN – POWER OF IMAGE
If you are to buy a CAR from a list brands only with the information of 3 COO of the CAR. What will be your priority list? Top priority is 1 , least priority is 5 Germany South Korea China America Japan If you are to buy a leather bag from a list brands only with the 4 information of COO of the leather bag. What will be your priority list? Top priority is 1 , least priority is 5 France South Korea China America Japan If SONY TV is being produced from different plants as mentioned 5 below, what will be your priority to pick the TV? What will be your priority list? Top priority is 1 , least priority is 5 Japan UAE Bangladesh Korea China
5.4
DATA ANALYSIS & INTERPRETATION
COUNTRY OF ORIGIN – POWER OF IMAGE
Analysis is basically interpretive only due to the kind of data available for analysis. 5.4.1 Research objective no 1 - Consumers still attach importance to the country where a product is manufactured
5.4.1.1 Question no 1 – If you are to buy a TV from a list brands only with the information of COO of the TV. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, almost no respondent is willing to buy TV from Bangladesh. As far as the country image is concerned, Japan has the best image of manufacturing TVs. Rank 1 10 57 6 2 0 Rank 2 23 13 15 24 1 Rank 3 32 3 9 31 0 Rank 4 9 2 41 16 7 Rank 5 2 0 4 2 67
South Korea Japan China America Bangladesh
Based on the survey, consumers prefer to buy TVs based on the following priority: Japan – 1st priority USA – 2nd priority South Korea – 3rd priority China – 4th priority Bangladesh – 5th priority The point here is, Japan has a very good COO image when it comes to manufacture of electronic products. 5.4.1.2 Question no 2 - If you are to buy a bottle of perfume from a list brands only with the information of COO of the perfume. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product
COUNTRY OF ORIGIN – POWER OF IMAGE
is manufactured. In response to the question above, most of the respondents prefer to buy a bottle of perfume from France. The next preferred country is USA. Rank 1 50 9 3 3 10 Rank 2 12 26 4 15 18 Rank 3 6 20 11 29 9 Rank 4 6 19 24 18 8 Rank 5 1 1 33 10 30
France America Japan Spain UAE
Based on the survey, consumers prefer to buy a bottle of perfume based on the following priority: France – 1st priority USA – 2nd priority Spain– 3rd priority Japan – 4th priority UAE – 5th priority The point here is, France has a very good COO image when it comes to manufacture of perfume. 5.4.1.3 Question no 3 - If you are to buy a CAR from a list brands only with the information of COO of the CAR. Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, most of the respondents prefer to buy a car from Germany. The next preferred country is Japan. China is the least preferred country, from which consumers prefer to buy a car. Rank 1 37 6 2 5 25 Rank 2 19 12 3 18 23 Rank 3 10 14 11 28 12 Rank 4 7 27 10 20 11 Rank 5 2 16 49 4 4
Germany South Korea China America Japan
Based on the survey, consumers prefer to buy a car based on the following priority: Germany – 1st priority Japan – 2nd priority USA – 3rd priority
COUNTRY OF ORIGIN – POWER OF IMAGE
S.Korea – 4th priority China – 5th priority The point here is, Germany has a very good COO image when it comes to manufacture of cars, Japan is almost close to it. 5.4.1.4 Question no 4 - If you are to buy a leather bag from a list brands only with the information of COO of the leather bag. What will be your priority list? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, most of the respondents prefer to buy a leather bag from China. The next preferred country is France. Japan is the least preferred country, from which consumers prefer to buy a leather bag. Rank 1 21 12 22 15 5 Rank 2 18 18 13 16 10 Rank 3 8 28 14 9 16 Rank 4 16 9 9 26 15 Rank 5 12 8 17 9 29
France South Korea China America Japan
Based on the survey, consumers prefer to buy a leather bag based on the following priority: China – 1st priority France – 2nd priority S.Korea – 3rd priority USA – 4th priority Japan – 5th priority The point here is, China has a very good COO image when it comes to manufacture of leather bags – and leather accessories… 5.4.1.5 Question no 5 - If SONY TV is being produced from different plants as mentioned below, what will be your priority to pick the TV? Responses of the respondents is compiled in the below matrix. Based on the data compiled it is pretty clear that, people attach importance to the country where a product is manufactured. In response to the question above, consumers prefer to buy a branded TV from a preferred country. When these responses are read in conjunction with
COUNTRY OF ORIGIN – POWER OF IMAGE
responses to question no 1 it can be inferred that COO image prevails in the minds of the consumers. As far as the country image is concerned, Japan has the best image of manufacturing TVs. Rank 1 59 2 2 7 5 Rank 2 10 9 3 45 8 Rank 3 4 20 1 11 39 Rank 4 2 31 16 8 18 Rank 5 0 13 53 4 5
Japan UAE Bangladesh Korea China
Based on the survey, consumers prefer to buy branded TVs based on the following priority: Japan – 1st priority S.Korea – 2nd priority China – 3rd priority UAE – 4th priority Bangladesh – 5th priority The point here is, Japan has a very good COO image when it comes to manufacture of electronic products. Even when a product is branded, the COO plays a role in successful adoption of the product by the consumer.
5.4.2 Research objective no 2 - This piece of information still available and accessible to consumers Various advertisements tend to propose the COO to gain advantage from consumer’s perception about the COO.
Examples:
COUNTRY OF ORIGIN – POWER OF IMAGE
This tendency is specifically visible in the following segments: • • Apparel including luxury watches Cosmetics
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3 Research objective no 3 - To what extent does brand image tend to blur originlabeling information To analyze this issue I have considered 72 well known brands in eleven (11) different segments: Apparel; Automobile; Beverages; Cosmetics; Entertainment; FMCG; Industrial Products; IT; Service; Telecom and White Goods The brands are mostly foreign brands. I use some well known few Indian brands, to check how these brands are perceived by the consumers
COUNTRY OF ORIGIN – POWER OF IMAGE
The brands are: Name of the Brand Adidas Apple Axe BMW Cadburys Café Coffee Day Calvin Klein Cartier Charlie Citibank Coca-Cola Colgate Dell Denim Disney Domino's Electrolux Elle 18 Ericcson Ford Garnier GE Gillette Google Gucci Heinz Hewlett-Packard Honda Hyundai IBM Intel Johnson & Johnson Kellogg's Kodak Levi's LG Name of the Brand Lo'real Lotto Marlboro Maybelline McDonalds Microsoft Motorola Nescafe Nestle Nike Nivea Nokia Omega Oracle Panasonic Pantene Pepsi Philips PizzaHut Reebok Revlon Rolex Samsung SAP Siemens Smirnoff Sony Toyota Unilever Wal-Mart Whirlpool Woodland Xerox Yahoo Knorr Hershey's
Country of Origin Germany USA UK Germany UK INDIA USA France USA USA USA USA USA USA USA USA Sweden India Sweden USA France USA USA USA Italy USA USA Japan South Korea USA USA USA USA USA USA South Korea
Country of Origin France Italy USA France USA USA USA SWITZERLAND SWITZERLAND USA Germany Finland SWITZERLAND USA Japan USA USA Netherlands USA USA USA UKSWITZERLAND South Korea Germany Germany Russia Japan Japan UK- Netherlands USA USA INDIA USA USA UK- Netherlands USA
COUNTRY OF ORIGIN – POWER OF IMAGE
Based on the results obtained from the survey, I segregated the brands into following categories: • Strong Brand – COO Unknown • Strong Brand – COO Weak • Brand and COO Complement Each Other • COO awareness is very high Sample size is 75
COUNTRY OF ORIGIN – POWER OF IMAGE
Basis of segregation: Sl. 1 2 3 CRITERION No of correct answers to questionnaire equal to ZERO No of correct answers to questionnaire (>1, <=7) No of correct answers to questionnaire (>7, <=18) No of correct answers to questionnaire (>18) COO AWARENESS STRONG BRAND – COO UNKNOWN STRONG BRAND – COO WEAK BRAND & COO COMPLEMENT EACH OTHER COO AWARENESS VERY HIGH
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5.4.3.1 STRONG BRAND – COO UNKNOWN How Correct Wrong Many Answers Answers Answered 35 0 35 25 0 25 11 0 11 9 0 9 16 0 16
Brand Adidas Axe Electrolux Knorr Omega
Sample Size 75 75 75 75 75
No Answers 40 50 64 66 59
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.2 STRONG BRAND – WEAK COO How Many Answered 21 16 1 15 25 16 11 7 19 19 17 14 18 23 16 20 23
Brand Ericcson Garnier Cartier Lotto Cadburys Elle 18 Charlie Gucci Nivea Woodland Nescafe Smirnoff Calvin Klein Kodak Maybelline Café CoffeeDay Phillips
Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75
Correct Answers 1 1 1 1 2 2 2 3 3 3 4 4 5 5 5 6 6
Wrong Answers 20 15 0 14 23 14 9 4 16 16 13 10 13 18 11 14 17
No Answers 54 59 74 60 50 59 64 68 56 56 58 61 57 52 59 55 52
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.3 Brand and COO Complement Each Other How Many Answered 21 28 29 15 32 19 20 20 19 30 17 19 24 18 20 24 19 31 26 26 22
Brand Xerox Nestle Revlon Hershey's Motorola Marlboro Whirlpool Pantene Domino's Ford Kellogg's Reebok PizzaHut Heinz Denim Unilever Levi's Colgate Lo'real Rolex Siemens
Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75
Correct Answers 8 8 8 10 10 11 11 11 11 12 12 13 14 14 15 15 16 16 16 17 17
Wrong Answers 13 20 21 5 22 8 9 9 8 18 9 6 10 4 5 9 3 15 10 9 5
No Answers 54 47 46 60 43 56 55 55 56 45 58 56 51 57 55 51 56 44 49 49 53
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.3.4 COO AWARENESS IS VERY HIGH – BRANDS THAT SCORED HIGH ON COO AWARENESS Sample Size 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 How Many Answered 27 24 25 31 28 37 29 28 26 31 28 50 44 36 30 31 32 39 38 37 53 36 37 41 52 49 48 56 55 Correct Answers 19 20 21 23 23 24 24 24 25 25 26 27 27 27 28 29 30 31 32 33 33 35 35 41 42 43 47 52 53 Wrong Answers 8 4 4 8 5 13 5 4 1 6 2 23 17 9 2 2 2 8 6 4 20 1 2 0 10 6 1 4 2 No Answers 48 51 50 44 47 38 46 47 49 44 47 25 31 39 45 44 43 36 37 38 22 39 38 34 23 26 27 19 20
Brand Gillette Hewlett-Packard (HP) Johnson & Johnson BMW SAP Samsung Nike Oracle Intel Citibank Google Hyundai Toyota Panasonic Dell GE Pepsi Honda Wal-Mart IBM Nokia Disney Yahoo McDonalds LG Sony Apple Coca-Cola Microsoft
5.4.4(A) Research Objective no 4 - Ceteris paribus, consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products.
COUNTRY OF ORIGIN – POWER OF IMAGE
5.4.4(B) Research Objective no 5 - Consumers' demand for non-durable goods from a lessdeveloped country is more price elastic than for durable goods from the same country of origin.
Question no 6 - Offer ---Product – Refrigerator Price: Rs. 25,000.00 – COO – Bangladesh Price: Rs. 17,000.00 – COO – Japan When the above offer is given to 75 respondents, 69 respondents chose to buy the product of COO – Japan. 6 chose to buy from Bangladesh Responses: Rank 1 6 69 Rank 2 69 6
Product from Bangladesh Product from Japan Question no 7 - Offer ----
Product – Refrigerator; Price: Rs. 25,000.00 – COO – Japan Price: Rs. 17,000.00 – COO – Bangladesh When the above offer is given to 75 respondents, 59 respondents chose to buy the product with COO – Japan and 16 respondents chose to buy product with COO Bangladesh
Responses: Rank 1 16 59 Rank 2 59 16
Product from Bangladesh Product from Japan
COUNTRY OF ORIGIN – POWER OF IMAGE
Interpreting from the responses for question no 6 & 7, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 4. Question no 8 - Offer ---Product – Iron Box; Price: Rs. 2500.00 – COO – Japan Price: Rs. 1700.00 – COO – Bangladesh Responses: Rank 1 30 45 Rank 2 45 30
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 45 respondents chose to buy the product with COO – Japan and 30 respondents chose to buy product with COO Bangladesh Question no 9 - Offer ---Product – Iron Box; Price: Rs. 1700.00 – COO – Japan Price: Rs. 2500.00 – COO – Bangladesh Responses: Rank 1 6 69 Rank 2 69 6
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 69 respondents chose to buy the product with COO – Japan and 6 respondents chose to buy product with COO Bangladesh Interpreting from the responses for question no 8 & 9, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 4.
COUNTRY OF ORIGIN – POWER OF IMAGE
Also, this shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 10 - Offer ---Product – Normal Lead Cell; Price: Rs. 12.00 – COO – Japan Price: Rs. 21.00 – COO – Bangladesh Responses: Rank 1 9 66 Rank 2 66 9
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 66 respondents chose to buy the product with COO – Japan and 9 chose to buy the product with COO Bangladesh. Interpreting from the responses for question no 10 & 11, it can be inferred that, consumer switches his preferences in buying brands/ products due to price variation in the products. This result supports the research objective no 5. This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 11 - Offer ---Product – Normal Lead Cell; Price: Rs. 21.00 – COO – Japan Price: Rs. 12.00 – COO – Bangladesh Responses: Rank 1 28 47 Rank 2 47 28
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 47 respondents chose to buy the product with COO – Japan and 28 respondents chose to buy product with COO Bangladesh
COUNTRY OF ORIGIN – POWER OF IMAGE
This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5.
Question no 12 - Offer ---Product – Use and throw ball pen; Price: Rs. 11.00 – COO – Japan Price: Rs. 7.00 – COO – Bangladesh Responses: Rank 1 44 31 Rank 2 44 31
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 44 respondents chose to buy the product with COO – Japan and 31 respondents chose to buy product with COO Bangladesh This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. Question no 13 - Offer ---Product – Use and throw ball pen; Price: Rs. 7.00 – COO – Japan Price: Rs. 11.00 – COO – Bangladesh Responses: Rank 1 7 68 Rank 2 68 7
Product from Bangladesh Product from Japan
When the above offer is given to 75 respondents, 68 respondents chose to buy the product with COO – Japan and 7 respondents chose to buy product with COO Bangladesh
COUNTRY OF ORIGIN – POWER OF IMAGE
This shows the impact on consumer buying behaviour with respect to the nature of the goods being sold. This result supports the research objective no 5. 5.4.4 (C) - Calculation of Price Elasticities: Assumption: 1. 2. Consumer preference to buy a product is considered to result in a sale of one unit of the product. At the time calculating price Elasticities for a product, price of the product from other COO is also considered to be same. No of units demanded – Products from Japan are cheaper Japan Bangladesh 69 6 69 6 66 9 68 7 No of units demanded– Products from Bangladesh are cheaper Japan Bangladesh 59 16 45 30 47 28 31 44
Item Refrigerator Iron Box Lead Cell Ball Pen
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Product- Refrigerator Bangladesh Price in Rs Qty Demanded 25000.00 6 17000.00 16
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[16-6] / [16 + 6]] * 2 = 0.9 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2]
COUNTRY OF ORIGIN – POWER OF IMAGE
= [[17000-25000] / [25000 + 17000]] *2 = -0.30895 PEoD = 0.9/-0.30895 = -2.91 Product- Refrigerator Japan Price in Rs Qty Demanded 25000.00 59 17000.00 69
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Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[69-59] / [69 + 59]] * 2 = 0.015625 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[17000-25000] / [25000 + 17000]] *2 = -0.30895 PEoD = 0.015625/-0.30895 = -0.05057
Product – Iron Box; Product- Iron Box Bangladesh Price in Rs Qty Demanded 2500.00 30 1700.00 6
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Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded)
COUNTRY OF ORIGIN – POWER OF IMAGE
= [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[30-6] / [30 +6]] * 2 = 1.333 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[1700-2500] / [2500 + 1700]] *2 = -0.30895 PEoD = 1.333/-0.30895 = -4.3146 Product- Iron Box Japan Price in Rs Qty Demanded 2500.00 45 1700.00 69
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Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price)
COUNTRY OF ORIGIN – POWER OF IMAGE
(% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[69-45] / [69 + 45]] * 2 = 0.42105 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[1700-2500] / [2500 + 1700]] *2 = -0.30895 PEoD = 0.42105/-0.30895 = -1.36284 Product- Lead Acid Cell Bangladesh Price in Rs Qty Demanded 21.00 9 12.00 28
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Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[28-9] / [28+9]] * 2 = 1.027 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[12-21] / [12 + 21]] *2 = -0.5454 PEoD = 1.027/-0.5454 = -1.883
COUNTRY OF ORIGIN – POWER OF IMAGE
Product- Lead Acid Cell Japan Price in Rs Qty Demanded 21.00 47 12.00 66
Sl. 1 2
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[66-47] / [66 + 47]] * 2 = 0.3362 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[12-21] / [12 + 21]] *2 = -0.5454 PEoD = 0.3362/-0.5454 = -0.61642
Sl. 1 2
Product- Ball Pen Bangladesh Price in Rs Qty Demanded 7.00 44 11.00 7
Arc Price Elasticity of Demand PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[7-44] / [7 + 44]] * 2 = -1.45
COUNTRY OF ORIGIN – POWER OF IMAGE
(% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[11-7] / [11 + 7]] *2 = 0.444 PEoD = -1.45/0.444 = -3.265
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Product- Ball Pen Japan Price in Rs Qty Demanded 7.00 68 11.00 31
Arc Price Elasticity of Demand
PEoD = (% Change in Quantity Demanded)/(% Change in Price) (% Change in Quantity Demanded) = [[QDemand(NEW) - QDemand(OLD)] / [QDemand(OLD) + QDemand(NEW)]] *2] = [[31-68] / [31 + 68]] * 2 = -0.74 (% Change in Price) = [[Price (NEW) - Price (OLD)] / [Price (OLD) + Price (NEW)]] *2] = [[11-7] / [11 + 7]] *2 = 0.444 PEoD = -0.74/0.444 = -1.667
COUNTRY OF ORIGIN – POWER OF IMAGE
Tabulation of Elasticities: Sl 1 2 3 4 Product Refrigerator Iron Box Lead Acid Cell Ball Pen Nature of the goods Durable Durable Non - durable Non - durable Elasticities Japan Bangladesh -0.05057 -2.91 -1.36284 -4.3146 -0.61642 -1.883 -1.667 -3.265
From the above price elasticity table it is evident that • Consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products. Consumers' demand for non-durable goods from a less-developed country is more price elastic than for durable goods from the same country of origin.
•
COUNTRY OF ORIGIN – POWER OF IMAGE
6.0 • • • CONCLUSION Japan has a very good COO image when it comes to manufacture of electronic products. France has a very good COO image when it comes to manufacture of perfume. Germany and Japan has a very good COO image when it comes to manufacture of cars. China and France has a very good COO image when it comes to manufacture of leather bags – fashion accessories… Japan has a very good COO image when it comes to manufacture of electronic products. Even when a product is branded, the COO plays a role in successful adoption of the product by the consumer. American, Japanese and South Korean brands have high awareness of COO in the consumers. COO awareness in the area of engineering products is high. Consumers still attach importance to the country where a product is manufactured The information of COO is still available and accessible to consumers through media and word of mouth To some extent brand image tend to blur origin labeling information Consumers are less willing to buy products from less-developed countries than from developed countries, but as the price of products from less-developed countries decreases, consumers will increase their willingness to buy those products. Consumers' demand for non-durable goods from a less-developed country is more price elastic than for durable goods from the same country of origin.
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COUNTRY OF ORIGIN – POWER OF IMAGE
7.0 REFERENCES
1.
The Role of Country of Origin in Product Evaluations - Wai-Kwan Li, Department of Marketing, University of Texas-Pan American Robert S. Wyer, Jr.? ,University of Illinois at Urbana-Champaign
2.
Facets of country of origin image: an empirical assessment.- Parameswaran, Ravi; Pisharodi, R. Mohan, Journal of Advertising: March, 1994 issue
3. 8.0 1.
Hoover's: Global Export Marketing Co., Ltd. Company Research ANNEXURES Questionnaire
COUNTRY OF ORIGIN – POWER OF IMAGE
ANNEXURE NO 1 – QUESTIONNAIRE
Sl Question COO - Counrtry Of Origon - The country where the product is manufactured If you are to buy a TV from a list brands only with the information of COO of the TV.What will be your priority list? Top priority is 1 , least priority is 5 South Korea Japan China America Bangladesh If you are to buy a bottle of perfume from a list brands only with the information of COO of the perfume.What will be your priority list? Top priority is 1 , least priority is 5 France America Japan Spain UAE If you are to buy a CAR from a list brands only with the information of COO of the CARe.What will be your priority list? Top priority is 1 , least priority is 5 Germany South Korea China America Japan If you are to buy a leather bag from a list brands only with the information of COO of the leather bag.What will be your priority list? Top priority is 1 , least priority is 5 France South Korea China America Japan If SONY TV is being produced from different plants as mentioned below, what will be your priority to pick the TV? What will be your priority list? Top priority is 1 , least priority is 5 Priority
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COUNTRY OF ORIGIN – POWER OF IMAGE
Japan UAE Bangladesh Korea China If a Refrigerator manufactured by a company based in Bangladesh and costs Rs. 25,000.00 and a similar Refrigerator is manufactured by a companybased in Japan and costs Rs. 17,000.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a Refrigerator manufactured by a company based in Bangladesh and costs Rs. 17,000.00 and a similar Refrigerator is manufactured by a companybased in Japan and costs Rs. 25,000.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If an iron box manufactured by a company based in Bangladesh and costs Rs. 1700.00 and a similar iron box is manufactured by a companybased in Japan and costs Rs. 2500.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If an iron box manufactured by a company based in Bangladesh and costs Rs. 2500.00 and a similar iron box is manufactured by a companybased in Japan and costs Rs. 1700.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If normal lead acid cell manufactured by a company based in Bangladesh and costs Rs. 21.00 and a similar lead acid cell is manufactured by a company based in Japan and costs Rs. 12.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan
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COUNTRY OF ORIGIN – POWER OF IMAGE
If normal lead acid cell manufactured by a company based in Bangladesh and costs Rs. 12.00 and a similar lead acid cell is manufactured by a company based in Japan and costs Rs. 21.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a use and throw ball pen manufactured by a company based in Bangladesh and costs Rs. 7.00 and a similar use and throw ball pen is manufactured by a company based in Japan and costs Rs. 11.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan If a use and throw ball pen manufactured by a company based in Bangladesh and costs Rs. 11.00 and a similar use and throw ball pen is manufactured by a company based in Japan and costs Rs. 7.00. Which product do you prefer to buy? Product from Bangladesh Product from Japan
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COUNTRY OF ORIGIN – POWER OF IMAGE
14
Do you know from which country these brands are from? If yes, please write the country name (please do not browse information from internet/other secondary sources to answer this question) Adidas Apple Axe BMW Cadburys Café Coffee Day Calvin Klein Cartier Charlie Citibank Coca-Cola Colgate Dell Denim Disney Domino's Electrolux Elle 18 Ericcson Ford Garnier GE Gillette Google Gucci Heinz Hewlett-Packard Honda Hyundai IBM Intel Johnson & Johnson Kellogg's Kodak Levi's LG Lo'real Lotto Marlboro Maybelline McDonalds Microsoft Motorola Nescafe Nestle
Yes
No
If, Yes Country's Name
COUNTRY OF ORIGIN – POWER OF IMAGE
Nike Nivea Nokia Omega Oracle Panasonic Pantene Pepsi Philips Pizza Hut Reebok Revlon Rolex Samsung SAP Siemens Smirnoff Sony Toyota Unilever Wal-Mart Whirlpool Woodland Xerox Yahoo Knorr Hershey's
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