Inherent Indicators of Consumer Product Evaluation A Case of Mobile Handset in Karachi.

Inherent Indicators of consumer
product evaluation: A case of mobile
handset in Karachi
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CHAPTER-1:
INTRODUCTION

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CHAPTER 1: INTRODUCTION
1.1 BACKGROUND
Since the advancement of technology, Mobile Handsets, a full- functional device of which, an
individual can use one frequency in terms of talking to someone and another, split frequency for
attending and listen to the other, while the caller and attendee can speak at once. But that was
just the start of mobile phones. Now the whole world has revolved with a 360 degree angle, and
in this era mobile phones are not only used as a communication tool, but as a music system,
camera, personal diary, internet, and any other gadget that once was completely separate. These
products are useful for everyone, regardless the age, gender or occupation. Infect, Cell-phones
has become a necessity for all. One looks at the increasing advancement of technologies with
such intensity and features of mobile phones, along with the growth of the entire cellular phone
industry. It’s apparent that the awareness of technical gadgets and the utilization of such high
tech mobile phones have been increasing. Various intrinsic and extrinsic characteristics may
influence consumers' brand evaluation1.
Consumers’ product evaluation process is a factor that was researched upon since a long time.
Cox 2was an investigator who stepped up to generate a theory which identifies the process of
consumer product evaluation. Ever since, researchers deliberately focused on the control of
various kinds of indications while conducting a brand evaluation research. Consumer’s
evaluation towards a product is based essentially on informational indications, which are further
dived into two, intrinsic and extrinsic indications3. The physical distinctiveness of a product that
1 (Teas & Agawam, 2000).
2 Cox (1962)
3 (Olson & Jacoby, 1972)

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creates an influence on consumers' insight and perception regarding a brand are the intrinsic
cues. The external or secondary distinctiveness of any merchandise, such as its image, price,
commitment or originating country that generates influence consumers' insight and perceptions
toward a brand are its extrinsic cues. Although, the intrinsic traits are foremost, essential as well
as prime factor of any trademarked product but investigators have discovered that there is strong
controlling potential of extrinsic cues existing to brand evaluation. Consumers’ evaluation of a
brand can be influenced by a number of different extrinsic cues. One of the researches has
exposed that extrinsic cues namely brand image, perceived originating country and assumed
quality show an encouraging and vital influence regarding the brand evaluation by consumers4.
Consumers relate the product with a range of informational cues and time and again
quality is reviewed along with the worth of a product on the support of such indicators. There are
a number of specific product traits which are its own while others are to the product external
features, such as the buyer’s awareness of price, store along with the recognition and objective
measures like quality.
Marketers are in search of a more effective way to handle and know about the informational
indicators of price and brand name to generate more useful and efficient performance in the
marketplace by both marketers as well as the consumers5. In past years, intensive efforts have
been made to broaden research past the assumed quality to price relationship in order to achieve
a better understanding and knowhow regarding the association of market indicators and product
liking.
4 (Parvin &Chowdhury,2006)
5(Dodds, Monroe & Grewal 1991)

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1.2 PROBLEM STATEMENT
In the past, many studies have been taken place on finding and understanding the consumer’s
product evaluation through its interior cues and attributes. The consumer’s product evaluation of
beautification products in terms of Perceived quality, brand image, product price and CoO
resulted in the affirmative relationship with all the predictors excluding price6. Another study
contributed on the product evaluation of highly technological fashion products on a mobile
phone by the people of USA, it concluded that intrinsic and extrinsic motivation both play a vital
role in the consumer’s product evaluation7. Furthermore, another study was carried on extrinsic
and intrinsic product quality, loyalty and buying intension of PDO products which concluded
that there is an encouraging and noteworthy influence from the apparent quality associated with
the intrinsic attributes on the buying intension of PDO products. No study have been conducted
on the finding the factors that affect the most on consumers product evaluation of mobile phones
in Pakistan. To determine the factors that affect the perception of consumers while buying a
mobile phone, and identify which of the core indicators matter the most. Therefore, this study
will cover the segment of inherent indicators of consumer’s product evaluation of mobile
handsets in Karachi, Pakistan.
1.3 RESEARCH OBJECTIVES
 The aim of the study is to determine the Inherent cues in determining a consumer’s
product evaluation of a mobile handset.
 Another objective of this study is to determine the variable that is the most important
factor mobile handset’s product evaluation by consumers.
6Parvin. N& Chowdhury. H.K (2006)
7 Watchravesringkan, et al (2006)

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1.4 RESEARCH QUESTIONS
Following are the two research questions of our study
1. What are the Inherent cues of product evaluation of a mobile handset?
2. Which is the most important factor in the product evaluation of mobile phones’ in
Karachi?
1.5 SCOPE OF THE STUDY
The implication of this study is that is determines the factor that leaves an impression on the
product evaluation of mobile phones by Pakistani consumers. This study takes place in the
largest and most economical city of Pakistan, i.e. Karachi. The study will help the mobile
manufacturers to understand the perception of mobile consumers of Karachi, Pakistan; and the
factor which they take as the most important and essential variable while purchasing a mobile
phone. It will also help the manufacturers and marketers assemble the thoughts or reinventing,
modifying and marketing cell phones in Karachi, Pakistan.
1.6 LIMITATIONS OF THE STUDY
There are some limitations to this study. The study is geographically located to a single city of
Pakistan, as it is only conducted in the city of Karachi. The number of respondents is relatively
less because of the time constraint and lack of monetary resources.

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CHAPTER- 2:
LITERATURE
REVIEW

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CHAPTER 2: LITERATURE REVIEW
2.1. THEORITICAL BACKGROUND
Consumer’s Product evaluation model was developed by the researchers to understand that by
what factors, consumers evaluate a certain product. In this study, the factors have been divided
into two, intrinsic and extrinsic categories (Olson & Jacoby, 1972). Intrinsic factors include
quality and country of origin of the cell phone. And extrinsic cues are the Image, reputation,
brand name, loyalty of product that they purchase.
A strong loyalty shows a consumer strong brand equity. The building of strong
affirmative brand attitude commonly leads to the brand preference. Brand loyalty shows the
unwillingness to switch brands as Franzen (1999) has put forward the loyal brand user concept
which states high level of attachment with a brand and have almost no urge to switch. The
bonding which that he highlights is a fragment of equity towards brand, though it does not
necessarily be a function to the brand equity. Brand loyalty can be a part of habit or may be the
consequence of changing to a different brand is high. Sometimes it’s a worthless of an effort but
when a genuine preference is a reason towards brand loyalty it contributes to brand equity for
example Coca-Cola’s taste has become a sense of brand equity and loyalty.
Lindestad &Andreassen (1998) analyzed brand image being considered as a significant
feature effecting consumer evaluation of satisfaction, customer loyalty and the perception of
quality. Accepting this analysis, de Ruyter and Wetzels (2000) configures that brand image
contributes as an information indicator that is used to determine topic like assumed quality
intention and credibility by the consumers. Brand image is said to build the reputation of a brand
or company and that positive reputation is a source towards positive brand image (Alessandri,

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2001). Sen & Bhattacharya (2003) claims that the brand image helps in generating an attachment
of the company with the consumers.
Brand reputation refers to the opinion of a company‘s key traits and focuses on how the
company behaves and how it works (Balmer, 1998). A brand reputation can also be considered
as the degree of trust or mistrust in a company’s aptitude to fulfill customers’ need and hope on a
given aspect (Leblanc& Nguyen, 2001). Another researcher Fombrun (1996) contributes on the
subject that brand reputation is the on the whole, a complete standard by which an organization
is taken by its component. Balmer & Gray (1998) claims brand’s reputation effects the
inclination of people to offer or refuse dedication and support to the company as well as the
products. Furthermore, it is stated that for building consumers’ commitment towards the
company, brand reputation plays a very significant contributes a great amount.
Perceived Quality is considered as the capability of any commodity to fulfill a consumer's
wants and needs (William &McCarthy, 1991). Excellence and superiority of any brand can be
defined as the Perceived quality that satisfies perception of a consumer. Product’s durability,
precision, reliability, and other significant attributes are the finest indicator of quality. The
concept of perceived has established significant sensitivity in the marketing theories.8 Diverse
perception and beliefs of consumer’s regarding a brand depends on the high quality perception.
Thus, a brand may comprise quality attributes but if it’s unsuitable according to consumer insight
and beliefs regarding finest quality, it may not satisfy consumers' preference.
8; Olshavsky, 1985; Holbrook &Corfman, 1985; Chowdhury& Islam, 2003; Jacobson &Aaker, 1987).

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Brand name can also be known as its familiarity/recognition9 and it helps in measuring
consumer product evaluation by brand’s extensive awareness and the degree of it effects. The
brand name generally adds worth and value to its product and become a reminder to the
corporation or organization and product brands will be helpful in creating brand awareness.
Pawlish & Kowalczyk (2002) observed the existing competitive environment; a company’s
brand name is starting to be increasingly vital and significant as a source to be oppressed in
achieving supportable competitive edge.
Country of origin also acts as feature of the product in the same way as other product
attributes for its evaluation by the consumers. It is the country where the product's idea came in
to being, along with its manufacturing and design. (Chao, 1993 and Nakamoto and Nelson,
2003). Country of origin is an essential element in the assessment of a product by the consumers.
For some countries, consumer perception is not always the same i.e. it varies either as positive or
negative impact. The product may become favorable or unfavorable to consumers by the good or
bad image of its country of origin (Chowdhury, 2001). Finally country of origin may influence
the attention of the consumers that is paid to the product assessment.
2.2 EMPERICAL REVIEW
Munnukka. J & Jarvi. P (2012) investigated the formation of customer value of advanced
technology products and the effect of price-category using a sample of 453 respondents who
assume themselves as vigorous users of digital camera, digital cameras or advanced mobile
phones. They used quantitative approach, using interviews. Each interview was carried on
one of the product category, not all three. The variables of the perceived value of advanced
9(Pawlish and Kowalczyk, 2002)

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consumer products were intrinsic cues (Playfulness, Visual appeal, intrinsic enjoyment
Escapism,) and extrinsic cue (Efficiency, Economic value, Excellence). The data was
measured by performing t test through regression analysis and exploratory factor analysis.
The results concluded that consumers perceive the advanced technology’s both cues as equal
important although the intrinsic characters tics as a bit important factor. The study suggests
customer value is assembled on the five main factors products of escapism/intrinsic,
efficiency visual appeal, enjoyment, excellence, and price satisfaction of advanced
technology, contributing to customer value.
Altuna.O & Aslant. F (2010) examines product brand image’s brand extension effects by
using Cronbach’s Alpha coefficient. The variables of the study are general brand image,
quality, product brand image, fit, familiarity, attitude, and demographic characteristics. The
results explored product brand image contains contradictory effect on brand extensions,
whereas the gap decreases the negative effect of parent and extension brands.
Anisimova, T. (2007) empirically finds out the effects of corporate brand attributes on
behavioral and attitudinal loyalty of consumer by using data by 285 Australian automobile
consumers. Structural Equation and Cronbach’s alpha Modeling was used in the research to
establish corporate brand construct’s psychometric characteristics. The variables of the study
are brand benefits, corporate associations, corporate activities, and corporate personality.
Result of the study disclosed that most consistent and critical interpreters of both attitudinal
and behavioral loyalty are corporate values, functional consumer benefits and corporate

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brand personality. They suggested implicating the study in other industries widely employing
corporate branding strategy.
Hansen. F, Christensen. L. B, (2007) evaluated the Dimensions in the role of emotional
response strength and Consumer Evaluation of Corporate Brands using 2001-data, the 2005-
data, and both sets of data combined of 10 companies and a total of 237 respondents. They
have used quantitative approach with 38 item questionnaire. The study was evaluated using
five variables; credibility, competence/success, forcefulness, exuberance and
warmth/caring/sincerity. Conducting confirmatory principal component factor analysis was
conducted on the five variables confirming that perceptual dimensions remained same
despite of the respondents and time. A calculation of Catells S and congruency coefficients
between the 5 factors showed similar patterns in the two factor solutions. The study
concludes that the important variances in emotional response prospective for companies
maybe be evaluated in the case of cognitive evaluations whether intentionally or
unintentionally of the organizations along with the variables included.
Veale. R, Quester. P & Karunaratna. A (2006) investigated the role of intrinsic and extrinsic
cues of food products regarding price and country of origin to evaluate product by using
interviews with product experts on certain cheese and wine products which were frequently
consumed by Australian buyers. They used qualitative research design for the collection of
data for the study. They examined 2 focus groups for confirming the belief of Australian
consumers regarding price and country of origin being intensely analytical extrinsic traits
influencing quality for cheese and wine. The results indicated that the quality expectation of

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cheese is influenced by price and country of origin. Also, the intrinsic cue also added
significance to quality expectations of cheese.
Shang. R, Chen. Y and Hsueh-J. L. (2006) worked on the brand loyalty and value of
involvement in virtual consumer by using online survey of 316 respondents from Apple
computer users. They used qualitative research design 7-point semantic difference scale
using ten questions. The measurements of affective and cognitive connection were adopted
from the PII- the personal involvement inventory. For measuring the data collected, they
used varimax method to attempt principal components analysis. The study indicated that the
effect and cause of posting and lurking varied
Hamzaoui. L & Merunka. D (2006), evaluates the impact of country of manufacture and
design on consumer insights of bi-national commodities’ quality by using survey method on
a Tunisian market by 389 respondents on two product category (automobile and TV sets). It
was a quantitative research design and the data for the study was collected through
questionnaires. The data was measured by using multiple regressions Analysis. The variables
of the study were Country of manufacturing (COM) image, perceived product quality,
Country of design (COD) image and perceived fits. The results revealed that the significant
determinants of product evaluation are the country’s image, regarding both COD and COM
and its link with product category.
Huang et al., (2006) examined the effect of country of origin in Chinese consumers
amongst brand choices and preferences by using correlation technique. The variables of the
study are purchase behavior, product categories and COO effect. The results specified that
rising view that foreign brands do not really influence the Chinese buyers.

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Suntornnond. V & Phau. I (2006) examine the Fast moving consumer good’s Dimensions of
consumer knowledge and its influence on country of origin effects among consumers in
Australia. The technique they have used is Spearman’s rho correlation. The variables of the
study are Quality Value & Acceptability. The results specified that in evaluating beer even
though a weak indicator, country of origin affects Australian consumers
Parvin. N& Chowdhury. H.K (2006) investigated on the Effects of Extrinsic Cues of
Consumer Evaluations of Beautification Products using a data collection of 212 female
respondents from female students who have usage experience through multiple items. They
have used quantitative approach with four category of questionnaire, considering each brand
in this study. The questionnaire was 7-point Likert scales to measure the selected variables of
the study. The variables of the study were brand image, country of origin, perceived quality
and perceived price. They used Regression analysis and t-test for the measurement of results
of this study. The Results concluded that perceived quality, brand image and professed
country of origin had affirmative and considerable effect on product evaluation of
beautification products
Sigala. M (2006) explored upon the Preliminary findings from Greece regarding customer
value and mass customization application models in mobile phones services by using a
convenience sampling for collecting data regarding the customer value magnitudes alleged
by consumers of personalized mobile phone services in Greece by the younger technology
savvy and seeking generation. The sample size was of 327 respondents between the ages of
15-25 years from three shopping mall visitors located in Thessaloniki, Greece. The variables
of the study were Functional-convenience value, Epistemic value, Social value, Conditional

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value, Emotional value, Control, freedom of choice value, Monetary sacrifice and Non-
monetary sacrifice: technicality. They used Confirmatory Factor analysis for determining
convergent and unit-dimensional measured by items. Results of the study concluded that
Mass Communication strategies are customer centered are a vital factor for the customer
value dimensions. The companies must influence the customers to get drawn in and devote
time and effort in adding importance and preposition in process for generating personalized
services so that companies could point out and provide improved values to the customers.
Watchravesringkan, et al (2006), investigated the role of extrinsic and intrinsic motivational
factors in consumers’ adoption of highly technological fashion products by using a
convenience sampling, of students between the ages of 18 to 26 years old from a university
of USA. The sample consisted of 268 responses. They used a quantitative by using a
questionnaire that comprised of five major sections in which they asked about Prada Mobile
phones. These questions were measured using Likert-type items. Scales comprised of seven
items in total. The variables of the study are perceived fashion ability, Perceived usefulness,
Purchase intentions, and Perceived innovativeness, Perceived ease of use, Utilitarian attitudes
and Hedonic attitudes. They performed Confirmatory factor analysis (CFA) on all seven 24-
item constructs using LISREL 8.54. Results of the study concluded that multi-dimensional
nature of consumer’s intrinsic motivation i.e. perceived innovativeness and perceived fashion
ability and extrinsic motivation i.e. supposed ease of use and supposed usefulness drives the
consumer intention to buy highly technological fashion product.

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Souiden et al (2006) empirically finds out the effect of product evaluation by consumer’s on
corporate branding dimensions by using a data of 218 American and Japanese consumers,
general linear model analyses and structural equation modeling (SEM) used to test
hypotheses. They have used a four-point Likert scale, and data were examined mainly
through SEM using SPSS 11.0 and AMOS 4.0. The variables of the study are the effects of
the corporate name recognition (CON), the corporate reputation (CRE), the corporate image
(CIM) and the corporate loyalty/commitment (CLO). Result of the study concluded that the
corporate name has significant impact on corporate image and corporate reputation showed
noticeable effect on corporate loyalty. The corporate reputation is also determined as a
negotiator of the effect of consumers’ product evaluation through corporate image
Fandos. C and Flavia´n. C (2006) empirically find out an analysis for a PDO product of
intrinsic and extrinsic loyalty, quality attributes and buying intension by taking personal
interviews with 251 consumers. They have used qualitative approach based on a group
dynamic to quantify the diverse thoughts. The variables of the study are quality, customer
loyalty and buying behavior. Results indicated a positive and considerable influence from the
supposed quality linked with the intrinsic quality of a traditional food item on consumer’s
buying intentions.
Paswan.A, Sharma.D(2004) studied emerging franchise market through Brand-country of
origin (COO) knowledge and COO image by using ANOVA. They use COO-similarity,
COO-product characteristics, COO-people, COO-product negativity, COO-product and
COO-market strength as variables of the study. The results indicate that precision of brand-

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COO knowledge is positively allied to COO image. Imprecise brand-COO knowledge
contributes to a negative as well as a confusing image regarding COO. Study exposed that
positive attributes about a product of a country leads to positive perceptions about that
country10
Boon et al (2004) studied the impact country of origin in low-involvement products by
using data from 236 Singaporean consumers. They have used ANOVA. The variables of the
study are Country of origin, product evaluation and COO effects, Consumer ethnocentrism,
and other extrinsic cues. The results indicate that COO effects when consumers estimate low-
involvement commodity but, in the existence of extrinsic indicators such as brand and price,
the impact of COO is relatively low and brand becomes the most influencing factor.
William B Dodds (2002) empirically finds out the effect of objective and perceived market
indications on consumer product evaluation. The study is consist of qualitative approach
which uses a method of 2x2x2 factorial design to analytically examine the interfacing effect
of objective information such as brand name and price in market indicators in product
evaluation theory. The study concluded that the brand effects aren’t changed by the quality
information.
O' Cass. A, Lim.K (2001) studied the assessment of culture of origin versus country of origin
for the consumer brand classifications by using the chi-square test. The variables of the study
are COO effects & brands, & culture of brand origin. The results show that consumers
eagerly identify the cultural origin of brands.
10(E.g. Hong and Wyer, 1990; Gurhan-Canli and Maheswaran, 2000; Lecrec et al., 1994).

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AcebroÂ n. L. B & Dopico. D. C (2000) explored the empirical application of beef regarding
the importance of extrinsic and intrinsic cues to expected and experienced quality of 239
households from La CorunÄ a. mixed research approach was used to collect the data for the
study. Qualitative research included reviews of previous research and expert interviews;
whereas quantitative approach included questionnaires on 13 items. The variables of the
study are: Color, Freshness, Price, Visible fat, Designation of origin, Promotion,
Presentation, Juiciness, Tasty, Tenderness, Expected quality, Perceived quality, Experienced
quality. The data was measured by using Regression and co-relation analysis. The outcome
of the study were that consumers evaluated experienced quality during consumption on the
basis of expected quality and its attributes such as taste, tenderness and juiciness,
substantiating or else contradict their formerly shaped perceptions.
Piron.F(2000)studied the consumers' perception regarding the conspicuous products by the
country of origin effect on purchasing intentions using ANOVA. The variables of the study
are price, versatility, appearance, performance, reliability and others. The results indicate that
a product's COO can be credited as a weak factor in purchasing products, while during the
purchase of luxury items it sets as an important variable of measurement.
Yong Zhang (1996) studied the influence of product types, culture and product presentation
format by using repeated-measure MANOVA to determine the product attitude and
evaluation data. They took their dependent variables as durable and non-durable products
and independent variables as the presentation format and country. The study exposed
contradictory results about the weight of culture on Chinese Consumer’s supposed Country
of origin.

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Mc Cormik H and Livett C investigate upon examining the impact on young consumer online
behavior by the presentation of fashion garments. The study conducted 12 interviews,
without pilot’s studies in about an hours’ time. They have used qualitative approach for
utilizing both photo-elicitation and projective technique. The variable of the study is
enhancing retail performance and customer satisfaction. The result of the study concluded
recognize the web experience features that help the interaction between fashion garments
online and the consumer.
Schweiger G, Otter T, Strebinger A, empirically finds out the impact on product evaluation
by the country of origin and brands and the implication on the destination. The study consists
of qualitative approach in which 1000 candidates were selected. The variables of the study
are food, clothing, electrical items, hygiene items, car and car tires, personal computer and
computer diskettes the study concluded that in USA made in Russia attitudes for lesser
quality but very reasonable price products also based on schema theory provides model of
cognitive structure.
Lee.M and Lou.Y, empirically finds out the consumer reliance on product evaluation by
Inherent cues using 229 students. They used a quantitative research design using
questionnaire on two product categories (Shoes and TV sets) the variables of the study are
Product Familiarity, Involvement and Price reliance schema. The data was evaluated by
using regression analysis and co-relational analysis. Result of the study concluded that
enduring involvement, price reliance schema and product familiarity carry a significant
weight on the customers utilization of extrinsic cues.

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Danesh S N, Nasab S A, Ling KC, empirically finds out the study of customer satisfaction,
customer trust and substituting hurdles on customer retention in Hypermarkets of Malaysia
the study in conducted 150 questionnaires the study is consist of quantitative approach in
which it helped the researcher explore the facts of the observation and by using the
hypothetical- deductive method in empirical evidence and conducted customer retention and
developed high extent literature of the topic. The research concluded that the customer trust
and customer satisfaction and substituting hurdles are completely related to Malaysian retail
market’s overall customer retention

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CHAPTER- 3:
METHODOLOGY

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CHAPTER 3: METHODOLOGY
3.1 RESEARCH APPROACH
The proposed research is established by quantitative approach which is about defining a market
and gathering data with that market. Most of the data required market share, size of the market,
its growth as well as the perception. In market research, therefore, a wide use is made of
sampling from which, information about the market can be drawn through careful design and
analysis. Hence, this research adopts a ‘scientific approach’.
3.2 RESEARCH PURPOSE
The research purpose that has been used is Explanatory. It helps in the justifications of the nature
of certain relationships in which we find out the relationship between key variables that are
clearly defined. To understand the relationship that exists between them, a hypothesis testing is
being used by the researcher.
3.3 RESEARCH DESIGN
Co relational design is used as a method for this research. This research is the organized study of
relationships among two or more variables. Data is collected from several variables and
correlation statistical techniques are then applied. A positive correlation means the association of
superior values of one variable with the greater values of the other determinant(s).Values near to
zero show no or almost no correlation of either kind or 0 shows no correlation. A negative
correlation means relationship of greater values of a variable with the lower values of the
other(s). Correlation can fluctuate from +1 to -1. Values that are near to +1 show a greater level
of positive correlation, and values near to -1 show a greater level of negative correlation.

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3.4 DATA SOURCE
In this research, the data has been gathered through primary sources by using five point Likert
scale. Primary sources are the original data collected by the participants or observers for a
particular research. The information can be collected through sources such as interviews,
experiments, surveys etc.
3.5 TARGET POPULATION:
The population of the proposed research is the youths (aged between 16 to 30 years) that are
users of mobile handset from different locations in Karachi.
3.6 SAMPLE SIZE
In order to determine the consumer evaluation of mobile handset in Karachi, the general sample
was composed of about 300 respondents to participate.
3.7 STATISTICAL TECHNIQUE
For data interpretation, factor analysis and regression technique has been used. It is the statistical
procedure that is used to measure the association between an independent variable and dependent
variables. Regression analysis aids to recognize how the effect of change of independent variable
to the dependent variable, while the other predictors are held constant.
3.8 SAMPLING TECHNIQUE
Convenience sampling is used as a sampling technique for this research. In this sampling
technique, the accessibility or availability of the researcher is dependent partially or entirely
upon the designated applicants. Least efforts are taken in this model to confirm the model is

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demonstrative of the population. These models are suitable for restricted populations and
exploratory research11.
3.9 HYPOTHESIS
Ho1: Brand Name has insignificant impact on Product Evaluation.
Ho2: Brand Image has insignificant impact on product Evaluation.
Ho3: Brand Loyalty has insignificant impact on Product Evaluation.
Ho4: Brand Salience has insignificant impact on Product Evaluation.
Ho5: Country of Origin has insignificant impact on Product Evaluation.
3.10 MODEL
CPE= α+β1 (BN) + β2 (BI) + β3 (BL) + β4 (BS) + β5 (PCOO) + e
Where;
CPE stands for Consumer Product Evaluation, BN stands for Brand Name, BS stands for
Brand Salience, BI stands for Brand Image, BL stands for Brand Loyalty, PCOO stands for
Perceived Country of Origin.
11(Stevens 1996)

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3.11 VARIABLE DESCRIPTION
Brand Evaluation:
Model was developed by the researchers to understand that by what factors, consumers
evaluate a certain product. In this study, the factors are divided into two groups, i.e. intrinsic
and extrinsic12. The quality and country of origin of the cell phone are the Intrinsic factors.
And extrinsic cues are the Image, reputation, brand name, loyalty of the cell phone that they
purchase.
Perceived Country of origin:
It shows the "made in" appearance of a product, here cell phone. It relates to the consumers’
&businessmen attachment regarding reputation and the stereotyping of the mobile phone
while purchasing it.
Brand Salience:
Brand Salience is the quality of a product that attracts others towards itself. Here the items
are used from reputation and quality of a brand that shows the salient features of a mobile
handset.
Brand Name:
Whether a consumer takes purchase decision on the basis of brand name or any other factor
is most significant for them.
Brand Image:
It is the impression of a specific cell phone in the mind of consumer.
12(Olson & Jacoby, 1972)

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Brand Loyalty:
How much a consumer is faithful to a particular brand of a cell phone?

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CHAPTER – 4:
DATA ANALYSIS

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4. Data Analysis
In this chapter, the data that was gathered will be structured in some series. Data will be
examined by applying various tests on SPSS.
4.1 Reliability
Reliability Statistic Test is applied on the data to verify the Data reliability. The questionnaire
considered for the study contains 24 items. These items include both, dependent and independent
variable. SPSS software is used to apply reliability test. According to the consideration, the value
of Cronbach’s Alpha should be greater than 0.5 or 50%. The value of Cronbach’s Alpha
according to this study is 0.861 or 86.1% and this shows that the reliability of the data must be
accepted.
Table 4.1
Reliability Statistics
Reliability Statistics
Cronbach's Alpha N of Items
.861 24
4.2 Factor Analysis
Table 4.2.1
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .785
Bartlett's Test of Sphericity Approx. Chi-Square 1241.938
df 190
Sig. .000
According to the constraint, the value of alpha should be greater than 0.50. In the above table and
since the value of Cronbach’s alpha of this study is greater, thus showing reliability of data. The
result also verifies that the values of alpha for both, the dependent and independent variables, is
greater than 0.50. Though for the value of KMO, the results reveals a 78.5 % variance of the
independent variable, since the value of KMO if independent variable is 0.785.

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Table 4.2.2
Rotated Component Matrix
Cronbach
’s alpha
Brand
Salience
Perceived
Country
of Origin
Brand
Name
Brand
Loyalty
Brand
Image
Produces the product is known for its high
quality and services.
0.72
.451
Produced in good workplace environment. .589
Has a good financial environment. .659
Performs basic job very consistently. .531
Input features are important to judge mobile’s
ease of use.
.687
Battery time is important while deciding the
brand for cell phone.
.653
Company producing the product is a matter of
attention.
0.57
.675
Company producing the cell phone should be
reliable.
.534
Producing country impacts on purchasing
decision
.666
Name of brand must be well known.
0.66
.530
Mobile phone must carry the name of the
company.
.686
Uses only certain brands of mobile phones. .660
Brand names kept for all cell phone within a
company.
.624
Brand name partly represents lifestyle. .516
Have a fondness and emotional feeling for the
brand.
0.53
.768
Preferences are not given to the new brands. .318
Only used a single brand of mobile phone. .650
Latest brands are chosen.
0.54
.494
Brand should be innovative. .596
Brand should be successful. .382
In this table, factor result represents the accuracy of independent variables of the data. The first
factor, “Brand Salience” has six items and these items contain a 0.72 value of alpha. The second
factor, “Perceived Country of Origin” has 3 items and contains a value of alpha of 0.57. In the
third factor, “Brand Name”, there are five items and the value of Cronbach’s alpha of these items
is 0.66. The fourth factor, “Brand Loyalty” contains three items having a value of alpha of 0.53

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and in the last factor, “Brand Image” also contains three items and the value of alpha of these
items is 0.54.
Table 4.2.3
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.753
Bartlett's Test of Sphericity Approx. Chi-Square 249.135
Df 21.000
Sig. .000
The above table shows the KMO value of the dependent variable of the study. The KMO value is
0.753, revealing a variance of 75.3 %
Rotated Component Matrix
Items
Cronbach’s
alpha
Product
Evaluation
Product should always outperform at any
situation.
0.794
.764
Product should have advanced technology. .708
Product has smart features than others. .694
Product should be user friendly. .781
In this table, the factor represents the accuracy of the dependent variable of the study. The
dependent variable, “Product Evaluation” contains four items and the value of Cronbach’s Alpha
of these items is 0.794.

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4.3 Regression Analysis
Table 4.3.1: Regression Coefficient (Product Evaluation)
Model Β t p VIF
(Constant) .012 .048 .961
BN .109 2.113 .036 .048
BI .153 2.295 .023 2.113
BL .041 .880 .379 2.295
PCOO .333 6.175 .000 .880
BS .296 6.715 .000 6.175
Adj. R Square = .518
Sig =
0.000
F- Statistics =
59.066
The table 4.3.1, reveals a statistics of all variable both independent and dependent variables with
their beta value, co-linearity value, significant value. The value of β illustrates the nature of
relationship existing between the variables (dependent and independent). The positive value of β
indicates an existence of positive relationship between independent and dependent variable and
the negative value of β represents s negative relationship between independent and dependent
variable. In above table Brand Name, Brand Salience, Perceived Country of origin, and Brand
Image are positively impacting on Product Evaluation whereas, Brand Loyalty carries a negative
impact on Product Evaluation. Β value is used to form regression equation which is:
Product Evaluation = 0.012 + 0.109 (Brand Name) + 0.153 (Brand Image) + 0.0.041
(Brand Loyalty) + 0.333 (Perceived country of origin) + 0.296 (Brand Salience).
The t value in table 4.3.1 shows the relative importance of each variable in above model. P value
indicates the significance of each variable. In above table values of Brand Name, Brand Salience,
Perceived Country of origin, and Brand Image variable are less than 0.05 which means each
variable have a significant effect on Product Evaluation, whereas value of Brand Loyalty
variable is greater than 0.05 which indicates that this variable has an insignificant effect on
Product Evaluation. VIF value illustrates the coefficient of multiple co-linearity which means

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variables are greatly connected with each other. When two variables are highly correlated it
means both variable are presenting similar trend and both are presenting alike information. When
the value of VIF is greater than 10, multi co-linearity exists. In above table the VIF value for all
variables are less than 10, indicating the variation in value of any variable does not influence on
values of other variables. Value of R2 in above table shows adequacy of model with is 0.518 that
shows independent variable (Brand Name, Brand Salience, Perceived Country of origin, Brand
Loyalty and Brand Image) can predict 51.8% of variance in dependent variable (Product
Evaluation).

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CHAPTER 5
CONCLUSION

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5.1 Conclusion
Consumers evaluate the products after and before experiencing it. This study recognized the
inherent indicators of how consumers evaluate the mobile handsets in Karachi. For this purpose,
a likert scale questionnaire has been designed and filled by the respondents aged between 16-30.
The variables used in this research are Consumer Product Evaluation as dependent, while Brand
Name, Brand Image, Brand Loyalty, Brand Salience, and Perceived Country of Origin as
independent variables. The data was collected by 291 respondents.
There are many features that have impact on consumer purchase decision. In order to study these
factors different tests has been applied after the data collection by using SPSS software. Through
this software, initially,the reliability statistics has been applied to ensure the reliability of the
data; then applied factor analysis to check the value of Kaiser-Meyer-Olkin (KMO) test, and also
check the items which include in the instrument, whether these are in appropriate form or not.
Finally, multiple linear regression tests are applied to discover the factors that have the most
effect the consumer purchase decisions. After the complete analysis, the research results
indicated that there are positive impacts of all the variables towards the Product evaluation with
the exception of Brand Loyalty.
5.2 Recommendations
The objective of this study is to identify and discover that which brand indicator mostly effects
the consumer’s evaluation of the product. The result of the research reveals that brand name,
brand image, brand salience and perceived country of origin are the most effective indicators that
can influences the product evaluation criteria of customers while purchasing mobile handset in
Karachi. Hence the mobile phone company may work on these attributes of the brand to improve
their sales. Whereas it seems that brand loyalty does not influence the criteria of product
evaluation. Although brand loyalty is an important factor in the purchase of electronics however
in this technological era with mobile phone comprising many features and styles, brand loyalty is
not found in the mobile phone consumers of Karachi. The following recommendations are
analysis from the research:

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 The mobile phone makers and policy makers should encourage branded mobiles which
carry a reliable country of origin.
 The cell phone makers should inbuilt such salient features in their product that would
attract customers and enhance their sales.
 The marketers must create such an image of their product (mobile phones) relating to its
innovation and successfulness that would temptation towards their brand.
 The marketers must create such a brand name that represents a life style of the customers.
5.3 Future Research
 It is recommended that the research should not only be done in Karachi but it can take
place in all parts of Pakistan
 It is also recommended that the number of respondents should be increased for enhanced
results as mobile phones are used by almost everyone nowadays so more views of the
people can be predictable.
 It is also recommended that the respondents should not only of the restricted ages.
 It is also recommended that the more financial resources must have spent on this research
so the research can also take place in some other countries of the world.

Inherent Indicators of Consumer Product Evaluation A Case of Mobile Handset in Karachi.

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