Professional Documents
Culture Documents
Product price
Product quality
Brand effects
17 25 0.035 NS
2 03 01 0.001 NS Accepted
03 05 0.079 NS
06 01 0.022 NS
06 05 0.084 NS
3 10 07 0.108 NS Accepted
10 19 0.007 NS
27 07 0.138 0.029
27 19 0.068 NS
4 04 12 0.217 0.001
Rejected
5 20 08 0.042 NS Accepted
21 08 0.087 NS
6 20 13 0.033 NS Accepted
21 13 0.074 NS
7 28 18 0.075 NS Accepted
8 26 03 0.016 NS Accepted
9 22 02 0.008 NS Accepted
Note: NS = Not signicant.
p < .05.
p < .01.
3.5. Respondents Proles
The mean age of the 250 respondents was 33 years; the age range was 1862. Of the 250
respondents, 164 were male (66%) and 86 were female (34%). Of the respondents, 109
(43%) were doctors, 10 (4%) engineers, 67 (27%) managers, 24 (10%) businessmen, and 40
(16%) students pursuing either bachelors or masters degrees in business administration. As
described earlier, the MBA group contained a mix of professionals and full-time students.
Of 250 respondents, 66 (26%) had or were pursuing bachelors degrees and 186 (74%)
respondents had or were pursuing masters degrees. This also reects the high level of
educational background among the professionals.
4. RESULTS
Eight out of nine principal null hypotheses were supported as there were no or weak
signicant correlations found between the variables (see Table 1). Even those few results
showing signicant correlations could be rejected as the actual correlations are low (less
than 0.40) and represent weak psychological linkages.
5. DISCUSSION
Perhaps the most important nding resulting from the present research is the relatively
limited signicance that COO effects have on product perceptions and on the buying
Human Factors and Ergonomics in Manufacturing DOI: 10.1002/hfm
586 KHAN AND BAMBER
behavior of an elite and afuent group of consumers. Both the pilot study and the primary
research demonstrate that COO effects, while important, do not often dominate the process
of consumer preference formation or the decision to buy. This nding stands in marked
contrast to some earlier research that reported that COO effects were highly inuential
in the marketplace. This is also somewhat counterintuitive. It is often noted that afuent
elites certainly have the disposable income to indulge in conspicuous spending (whether
for quality or status) and are often believed to be greatly inuenced by high-quality, high-
status products imported from countries that themselves enjoy a quality reputation for the
goods and services they produce.
The present research reveals that COO effects are particularly important under certain
conditions, for example, when consumers are deciding on the purchase of expensive prod-
ucts and are buying presents and gifts for family and friends. However, there are many
other buying situations in which COO effects are no more important, and are sometimes
less important, than other inuences on product perception and on consumer preference
formation. It is therefore interesting to speculate as to why this is so.
Why does COO seem to exert a more limited inuence among elite, afuent buyers?
First, the higher educational qualications, coupled with the more cosmopolitan lifestyles
of managerial and professional elites, means that such consumers are better informed
and have more detailed information available to them when making decisions to buy any
given product or service. This extra information means that they are less inuenced by
national stereotypes (whether true or false), and so COO may be a part of any product
evaluation exercise but will not dominate the nal decision to buy. Second, the wider and
deeper knowledge of markets and of the structure and operations of multinational compa-
nies in particular, and of global manufacturing and marketing strategies in general means
that such elite consumer groups have a greater understanding of how modern, globally
structured businesses operate. In particular, they are aware that products and services pro-
moted under a given made in label may well disguise the fact that parts manufacturing
and assembly may be carried out in an entirely different country or group of countries.
This increasing globalization of manufacture, assembly, and marketing will inevitably di-
lute the importance and impact of any made in information available to the potential
buyer.
The acceptance of the null hypotheses does indicate that a lower level of importance
may be attached to the COO effect than has previously been suggested. It is nevertheless
interesting to note that when research results are disaggregated by demographic factors
gender, education, age, and professionthere was often some variation in results. The
present research has yet to analyze these identied anomalies in greater detail, but it clearly
indicates a direction for future research into COO effects. Finally, at an even deeper level
of investigation, the third-tier analysis of within group results, relating to each of the four
demographic variables used in the study, indicates that individuals with similar demographic
proles may present signicant variations in COO attitudes.
The present study of COO effects on consumer behavior was conducted in only one
country, namely, Pakistan. Similar consumer attitudes and patterns of behavior may be
found to exist elsewhere. However, the specic cultural, economic, and social conditions
found in Pakistan means that it is not valid to immediately draw conclusions about COO
effects with respect to other countries on the basis of the Pakistani ndings alone. The study
has clearly identied the effects of COO information on an afuent, elite consumer group
within Pakistan. At the same time, research showed that there were, on occasion, distinct
within-group differences in attitudes. Indeed the effects of demographics on COO effects
Human Factors and Ergonomics in Manufacturing DOI: 10.1002/hfm
COUNTRY OF ORIGIN EFFECTS IN AN EMERGING MARKET 587
may well play a part. This research should be replicated in other countries to determine the
nuances in those target markets and the effects of demographic variables.
6. MANAGERIAL CONTRIBUTION
Marketing and business managers seldom target entire populations of consumers when
attempting to sell the products they manufacture; rather, they segment their markets and
target one or more specic groups of consumers. In contrast, studies into COO effects have
tended to be based on cross-sectional research across whole populations, and have provided
both academics and business practitioners with aggregated, rather than disaggregated, data
with respect to the role and importance of COO effects. This has given marketing managers
an overview of such consumer behavior, but has not offered any specic, more detailed
information on targeted consumer groups that are of real importance to the rm. In short,
there has been a lack of focused data that is of considerably greater value to companies who
segment their markets and who target very specic groups of consumers within any given
economy. Amajor contribution of the present study is that it has isolated and researched one
specic group of consumers, whose buying power and economic importance is particularly
signicant in the context of developing economies. The research focused on the group of
relatively afuent managerial and professional elites, who have the nancial resources to
indulge in high levels of spending and consumption. This research has converged on such
a group of consumers in Pakistan and has demonstrated the value to business managers of
a more disaggregated approach to studies into COO effects.
7. CONCLUSION
This study has explored the relationship between COO information and consumer behavior
with reference to an elite managerial and professional consumer group in Pakistan. In order
to generalize the ndings, the study needs to be replicated in other countries with a view
to either conrming or refuting the Pakistani ndings. This research provides an insight
into the demand characteristic of an elite consumer segment, and this allows marketers
to design appropriate marketing mix strategies that will help them to target existing and
future customers and to position their products in the Pakistani market. In particular, it
helps companies to understand the opportunities and limitations of using COO made in
campaigns in promoting product sales.
The marketing function and strategy of the manufacturing organization can be viewed as
a system. Here, the market has been segmented into elite and nonelite consumers. The elite
consumers have been gathered together as they have common social and purchasing needs.
However, this segment can be further segregated according to the types of products desired.
Perceptions concerning brand, COO, and quality will clearly be different for functional and
luxury products. Independent regional marketing centers that are close to the target, not
only geographically but also culturally and psychologically, are likely to best understand
local market needs. These regional centers thus become the interface between the marketing
system of the organization and the market itself. Hence, when planning to move into the
new market, regional centers will be best able to conduct detailed research into their own
products and the potential target market, and to investigate cues such as the brand image
and COO effect. Elite consumer markets will require a different focus than mass markets.
Business managers seeking to promote products to the elite market will need to take note of
the equal importance of specic cue information, price, quality, social status of items, and
brand effect with COO information.
Human Factors and Ergonomics in Manufacturing DOI: 10.1002/hfm
588 KHAN AND BAMBER
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