Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
Choi & Cai_Country-of-origin effect in tourism (ttra apac 2014)
Next

2

Share

Determining the Impact of Country Of Origin on Filipino Yuppies' Evaluation of Mobile Phone Alternatives

With so many mobile phones to choose from, key comparison and consideration points have also increased. This research paper identifies the relationship of country of origin to key Individual Differences like Brand Image, Inclination to Purchase, Brand Loyalty & Quality Assessment before Filipino yuppies make a pre-purchase decision.

Determining the Impact of Country Of Origin on Filipino Yuppies' Evaluation of Mobile Phone Alternatives

  1. 1. DETERMINING THE IMPACT OF COUNTRY OF ORIGIN ON FILIPINO YUPPIES’ EVALUATION OF MOBILE PHONE ALTERNATIVES JOSES SACILIOC JULIUS PALSIS RIO VILLAMIN MAAN BLANCH DE LA SALLE UNIVERSITY DR. MARIA VICTORIA TIBON
  2. 2. Mobile phones continue to dominate the communications industry generating 108.7 million telecommunication subscribers in the Philippines by end of 2012, with a yearly average growth of 12.9%.
  3. 3. With its continuous growth, mobile phones have been manufactured from different parts of the world just to suffice the need for mobile communication.
  4. 4. With so many choices to choose from, key comparison and consideration points have also increased which makes it harder for the consumer to make a decision.
  5. 5. Alongside with the mobile phone core attribute of communication and other augmented attributes; product attributes, such as the country of origin, is crucial in making a purchase decision.
  6. 6. In a country of origin point of view, this study aims to understand the evaluation process a Filipino young professional goes through before getting a mobile phone.
  7. 7. Country of Origin Decision Making Process Quality Assessment Inclination to Purchase Brand Loyalty Brand Image In developing countries foreign brands have more positive perception compared to local brands while in first world countries it is the other way around. This shows that culture plays a role in the impact of country of origin. For developing countries it seems that the perception of the country of origin seems to be passed on to the products. Actual product quality differs from one country to another even if they are manufacturing the same product. However, the actual product quality doesn't matter on a consumer standpoint. What matters for consumers is the perceived product quality. This is greatly affected by the country of origin. Brand preference is developed when the image of the country of origin is seen as positive. This shows that as brand familiarity is formed the image of the country of origin ceases to be passed on the product and begins to be associated with the brand. Consumers are more inclined to pay higher prices for products with country of origin that has a positive image. This is because of the perception and preference that is established by the country of origin image that is passed on the brand or product depending on the situation. Country of origin is one of the many information that consumers look for. In most of the studies, country of origin affects the decision making process especially during the absence of a known brand. LITERATURE REVIEW
  8. 8. Synthesis of the LITERATURE REVIEW •  The country of origin does affect the decision making of consumers when buying products. •  Specifically, other variables are dependent to the perceived country of origin such as Brand Image, Inclination to Purchase, Brand Loyalty and Quality Assessment.
  9. 9. Problem STATEMENT Does the country of origin have an impact on key Individual Differences like Brand Image, Inclination to Purchase, Brand Loyalty & Quality Assessment before making a pre-purchase decision?
  10. 10. OBJECTIVES •  To determine the perceptual profiles via Individual Differences of Filipino yuppies on the following countries: •  Finland •  Korea •  USA •  China •  Japan •  Philippines •  To determine the state of dependency of Individual Differences from the country of origin
  11. 11. OBJECTIVES •  To validate the consistency of brand attributes in statement form from the country of origin •  To validate the consistency of mobile phone brand choice to the mobile phone country of choice
  12. 12. STUDY FRAMEWORKS
  13. 13. THEORETICAL FRAMEWORK CONSUMER DECISION MODEL Need Recognition Search Evaluation of Alternatives Environmental Influences Individual Differences
  14. 14. EVALUATION OF MOBILE PHONE ALTERNATIVES COUNTRY OF ORIGIN CONCEPTUAL FRAMEWORK COUNTRY OF ORIGIN & EVALUATION OF MOBILE PHONE ALTERNATIVES Individual Differences •  Brand Image •  Inclination to Purchase •  Brand Loyalty •  Quality Assessment Pre-Purchase Decision •  Mobile Phone Brand Choice •  Mobile Phone Country of Choice PROBLEM STATEMENT Does the country of origin have an impact on key Individual Differences like Brand Image, Inclination to Purchase, Brand Loyalty & Quality Assessment before making a pre-purchase decision?
  15. 15. •  Identify consistency of brand attributes in statements from country of origin •  CORRELATION •  Identify consistency of country of choice from gadget of choice •  CORRELATION •  Identify state of dependency of very-highly rated brand attributes from the country of origin •  CHI-SQUARE •  Tabulated survey results to identify the best attributes of mobile phones per country. •  MULTI- ATTRIBUTION MODEL Perceptual Profile per Country BRAND ATTRIBUTES VS COUNTRY OF ORIGIN BRAND ATTRIBUTES IN STATEMENTS VS COUNTRY OF ORIGIN COUNTRY OF CHOICE VS GADGET OF CHOICE METHODOLOGY
  16. 16. RESULTS AND FINDINGS
  17. 17. RESULTS     FINLAND   USA   CHINA   KOREA     PHILIPPINES   JAPAN   Brand  Image   (impression  on  the   product;  good   credibility)      3.760      4.200      3.720      3.610      2.790      4.110     InclinaQon  to   Purchase      3.200      3.950      3.770      3.370      2.650      3.770     Brand  Loyalty  (SQck   to  one  brand)      3.090      3.730      3.960      3.150      2.530      3.580     Quality  Assessment   (Durability  of   products)      3.870      4.080      3.950      3.480      2.690      4.140     Objective: To determine the perceptual profiles via Individual Differences of Filipino yuppies on the following countries: Finland, Korea, USA, China, Japan, Philippines Method: Multi-Attribution Model
  18. 18. FINDINGS Country-Level Findings Both Finland and Japan are known for the durability of mobile phones. USA, Korea and Philippines are known for the brand image of their mobile phones. China is known for brand loyalty. Attribute-Level Findings Brand Image and Inclination to Purchase is strongest in USA Brand Loyalty is strongest in China. Durability perception is strongest in Japan. Objective: To determine the perceptual profiles via Individual Differences of Filipino yuppies on the following countries: Finland, Korea, USA, China, Japan, Philippines
  19. 19. RESULTS CHI-SQUARE TEST OBSERVED FINLAND USA CHINA KOREA PHILIPPINES JAPAN TOTAL Brand Image (impression on the product; good credibility) 19 45 0 13 3 39 119 Inclination to Purchase 4 28 3 8 2 24 69 Brand Loyalty (Stick to one brand) 3 23 0 4 0 21 51 Quality Assessment (Durability of products) 28 43 2 7 4 44 128 TOTAL 54 139 5 32 9 128 367 EXPECTED Brand Image (impression on the product; good credibility) 17.50953678 45.07084469 1.621253406 10.3760218 2.918256131 41.50408719 Inclination to Purchase 10.15258856 26.13351499 0.940054496 6.016348774 1.692098093 24.0653951 Brand Loyalty (Stick to one brand) 7.504087193 19.31607629 0.694822888 4.446866485 1.250681199 17.78746594 Quality Assessment (Durability of products) 18.83378747 48.47956403 1.74386921 11.16076294 3.138964578 44.64305177 P-Value 0.056434681 Alpha 0.05 Objective: To determine the state of dependency of Individual Differences from the country of origin Method: Chi-Square Test
  20. 20. FINDINGS Accept the null hypothesis because p value (0.056) > alpha (0.05). Country of origin is independent from individual differences such as brand image, inclination to purchase, brand loyalty and quality assessment. This is sufficient statistical evidence that people who rated attributes very highly is not affected by the country of origin. Objective: To determine the state of dependency of Individual Differences from the country of origin
  21. 21. RESULTS CORRELATION Validating Statements vs Perceptual Profile Answers VERY HIGH FINLAND USA CHINA KOREA PHILIPPINES JAPAN TOTAL I buy a gadget because it has a positive brand image 38 19 45 0 13 3 39 119 I buy a gadget that I am inclined to purchase based on needs 57 4 28 3 8 2 24 69 I buy a gadget that I have used before and had a positive experience with it 59 3 23 0 4 0 21 51 I buy a gadget that has high quality 83 28 43 2 7 4 44 128 CORRELATION 0.374851282 -0.006214262 0.490925999 -0.623024852 0.283047984 0.252751684 0.16509 6157 Objective: To validate the consistency of dependency results via brand attributes in statement form from the country of origin Method: Correlation
  22. 22. FINDINGS At 0.16 correlation, we have sufficient statistical evidence that the attributions in statement form has non-existent or negligible relationship to the perceptual profile answers. This validates the independent state results from the chi-square test on country of origin and the individual differences (brand attributes). Objective: To validate the consistency of brand attributes in statement form from the country of origin
  23. 23. RESULTS Country of Choice Gadget of Choice Clustered by Country Finland 14 6 China 0 1 Korea 18 41 USA 65 72 Philippines 2 1 Japan 33 10 Correlation 0.846715612 Method: Correlation Objective: To validate the consistency of dependency results via brand attributes in statement form from the country of origin
  24. 24. FINDINGS At 0.84 correlation, we have very strong correlation indicative of the awareness of the respondents on where the mobile phone brands are from. This could mean that they are aware of the country of origin, but they do not consider it as something that affects their views on brand attributes. Objective: To validate the consistency of mobile phone brand choice and mobile phone country of choice
  25. 25. SUMMARY OF FINDINGS To validate the consistency of mobile phone brand choice and mobile phone country of choice To determine the state of dependency of Individual Differences from the country of origin To determine the perceptual profiles via Individual Differences of Filipino yuppies on the following countries: Finland, Korea, USA, China, Japan, Philippines CONSISTENT CONSISTENT INDEPENDENT DIFFERS PER COUNTRY AND ATTRIBUTE To validate the consistency of dependency results via brand attributes in statement form from the country of origin
  26. 26. RECOMMENDATIONS •  Based on the strongest attributes in the defined perceptual profiles, mobile phone brands in the Philippines can highlight the following attributes where their country is known from in marketing communication materials. Finland  –  Quality  of  Mobile  Phones   USA  –  Brand  Image  (Branding  Efforts),  InclinaNon  to  Purchase  (Easy  AcquisiNon  of  Mobile  Phones)   Korea  –  Brand  Image  (Branding  Efforts)   China  –  Brand  Loyalty  (Loyalty  &  Rewards  Programs)   Philippines  –  Brand  Image  (Branding  Efforts)   Japan  –  Quality  of  Mobile  Phones  
  27. 27. RECOMMENDATIONS •  Country of origin is neither a strong product differentiator nor key consideration, therefore it should not be highlighted in marketing communication materials for mobile phone brands. •  An identical study can also be conducted to assess the consistency of the findings specifically on the state of dependency of Individual Differences from the country of origin but sample size should represent the total Filipino young professionals. •  Other trends that can be tested are on the following levels: gender, other stages of the consumer decision model and focus on environmental differences, particular market segments and the type of attribute they prioritize.
  28. 28. CONCLUSION The country of origin of mobile phones does not have an impact on key Individual Differences like Brand Image, Inclination to Purchase, Brand Loyalty & Quality Assessment, before Filipino yuppies make a pre-purchase decision. EVALUATION OF MOBILE PHONE ALTERNATIVES COUNTRY OF ORIGIN Individual Differences •  Brand Image •  Inclination to Purchase •  Brand Loyalty •  Quality Assessment Pre-Purchase Decision •  Mobile Phone Brand Choice •  Mobile Phone Country of Choice
  29. 29. APPENDIX A BIBLIOGRAPHY
  30. 30. BIBLIOGRAPHY Agrawal, J., & Kamakura, W. (1999). Country of origin: A competitive advantage? International Journal of Research in Marketing.   Alam, M. R., (2012). Demographic Influence on Brand Loyalty Towards Budget Airline in UAE. Retrieved from: http://www.hgsitebuilder.com/files/writeable/uploads/ hostgator427959/file/ijars178.pdf.   Basile, G., Diana, P., & Catino, V. (2013). He Country of Origin Effect: A condition to attain Viable Territory Systemic Survival : Research in Southern Italy. International Journal of Management Cases.   Batra, R., Ramaswamy, V., Alden, D. L., Steenkamp, J. E. M., & Ramachander, S., (2000). Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries. Retrieved from: http://www.pfoertsch.com/wiki/uploads/OnlyForStudentsCEIBS/Contryoforigin2.pdf.   Bray, J. (n.d.). Consumer Behaviour Theory: Approaches and Models (pp. 15-33).   David, E. J. R., & Nadal, K. L., (2013). The Colonial Context of Filipino American Immigrants’ Psychological Experiences. Retrieved from: https://www.apa.org/pubs/journals/ releases/cdp-19-3-298.pdf.   Finardi, C., Giacomini, C., Menozzi, D., & Mora, C., (2009). Consumer Preferences for Country-of-Origin and Health Claim Labelling of Extra-Virgin Olive-Oil. Retrieved from: http://ageconsearch.umn.edu/bitstream/58014/2/Finardi.pdf.   Fischer, N., Diamantopoulos, A., & Oldenkotte, K. (2012). Are Consumers Really Willing to Pay More for a Favorable Country Image? A Study of Country-of-Origin Effects on Willingness to Pay. Journal of International Marketing.   Ghalandari, K., & Norouzi, A. (2012). The Effect of Country of Origin on Purchase Intention: The Role of Product Knowledge. Research Journal of Applied Sciences, Engineering and Technology.  
  31. 31. BIBLIOGRAPHY Guina, F., & Giraldi, J. (2012). The role played by country knowledge and product familiarity in the country-of-origin effect: A study on Brazilian Beef in Europe. GCG Georgetown University - Universia, 6(2), 81-94.   Hamelin, N., Ellouzi, M., & Canterbury, A. (2011). Consumer Ethnocentrism and Country-of-Origin Effects in the Moroccan Market. Journal of Global Marketing.   Holdershaw, J., Gendall, P., & Case, P. (2013). Country of origin labelling of fresh produce: Consumer preferences and policy implications. Market & Social Research, 21(2).   Hsieh, M. (2004). An investigation of country-of-origin effect using correspondence analysis: A cross-national context. International Journal of Market Research, 46.   Matteo, P. (2012). The country-of-origin effect in a globalized world: A study in the fashion industry across Italy and Spain.   Menapace, L., Colson G., Grebitus, C., & Facendola, M. (2009). Consumer Preferences for Country of Origin, Geographical Indication, and Protected Designation of Origin Labels. Retrieved from: http://www2.econ.iastate.edu/research/webpapers/paper_13122_09021.pdf.   Oyewole, P., & Choudhury, P., (2006). International African Travelers and Brand Loyalty of National Airlines. Retrieved from: http://businessperspectives.org/journals_free/im/2006/ im_en_2006_02_Oyewole.pdf.   Philippines - Telecommunication Services. (2014, January 30). Retrieved August 1, 2014, from http://0-advantage.marketline.com.lib1000.dlsu.edu.ph/Product? pid=MLIP1189-0036   Srinivasan, R., Srivastava, R. K., & Bhanot, S., (2014). Influence of Ethnicity on Uniqueness & Snob Value in Purchase Behavior of Luxury Brands. Retrieved from: http:// jormonline.com/index.php/jorm/article/view/67/V2N3P67.   Tran, T. P., & Fabrize, R.O., (2013). The Effect of the Foreign Brand on Consumer Perception. Retrieved from: http://www.na-businesspress.com/jmdc/trantp_web7_2_.pdf.  
  32. 32. APPENDIX B DEFINITION OF TERMS
  33. 33. Individual Differences – are attributes dependent to the country of origin which includes: Brand Image, Inclination to Purchase, Brand Loyalty and Quality Assessment.   Evaluation of Mobile Phone Alternatives – is a consumer decision level wherein a consumer makes a pre-purchase decision.   Pre-Purchase Decision – when a mobile phone consumer chooses a phone of choice before actually purchasing it.   Country of Origin – is an independent variable that affects individual differences   Brand Image – is the degree of positive or negative brand perception depending on the following country of origin: Finland Korea, USA, China, Japan, and Philippines.
  34. 34. Inclination to Purchase – is the degree of willingness to spend money on a mobile phone depending on the following country of origin: Finland, Korea, USA, China, Japan and Philippines.   Brand Loyalty – is the degree of loyalty for a mobile phone brand based on the following countries: Finland, Korea, USA, China, Japan and Philippines.   Quality Assessment – is the degree of perceived quality of the mobile phone based on the following countries: Finland, Korea, USA, China, Japan and Philippines.   Mobile Phone Brand Choice – is the specific mobile phone brand chosen by the respondents.   Mobile Phone Country of Choice – is the specific country chosen by the respondents
  35. 35. APPENDIX C GADGETS PER COUNTRY
  36. 36. Country Brand China Huawei Lenovo Finland Microsoft Mobile (formerly Nokia) Japan Panasonic Sony Mobile Communications Philippines Cherry Mobile (Re-brand of China made phones Starmobile (Re-brand of China made phones) Cloudfone (Globe Telecom Phone South Korea Samsung LG USA Apple Google Nexus Motorola
  37. 37. MAAN BLANCH JULIUS PALSIS JOSES SACILIOC RIO VILLAMIN BUSINESSSTATISTICS DR.MARIAVICTORIATIBON
  • Clang14

    Apr. 1, 2016
  • LorrainePhiri1

    Feb. 24, 2016

With so many mobile phones to choose from, key comparison and consideration points have also increased. This research paper identifies the relationship of country of origin to key Individual Differences like Brand Image, Inclination to Purchase, Brand Loyalty & Quality Assessment before Filipino yuppies make a pre-purchase decision.

Views

Total views

1,256

On Slideshare

0

From embeds

0

Number of embeds

15

Actions

Downloads

0

Shares

0

Comments

0

Likes

2

×