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Consumer behaviour

Consumer behaviour

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Published by: spark_123 on Aug 23, 2008
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12/19/2012

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CONSUMERS’ PERCEPTION OF THE COUNTRY-OF-ORIGIN EFFECT ON PURCHASING INTENTIONS OF (IN) CONSPICUOUS PRODUCTS

What is Conspicuous products ?
Conspicuous products are public display of individual possession and consumption of expensive goods ad services It conveys the idea of social status and display by pattern of consumption

• Consumers’ Decision • Imagery of Country of Origin effect e.g. Germany is associated with good engineering work , Japan has good association with technology

Cont…
• Impact of COO • Negative Perception • Different level of information

A Four cell matrix
PRODUCT TYPE LUXURY NECESSITY

PUBLIC

CONSUMPTION

PRIVATE

PUL PUN e.g. Convertible e.g. Sunglass, Sports car Wrist watch. PRL PRN e.g. Home e.g. Toothpaste Theatre

Matrix cont…
• Publicly consumed luxury (PUL) :Product consumed in public view and not commonly owned or used e.g. Golf Club

• Publicly consumed necessity (PUN) :-

Product consume din public view that virtually everyone owns or uses e.g. Wrist watch, shoes

Cont…
• Privately Consumed luxury (PRL) :Product consumed out of public view and not commonly owned or used. Home theatre

• Privately consumed necessity (PRN)
:Product consumed out of public view that virtually everyone owns or uses e.g. Toothpaste

Luxury vs. necessity products
• Luxury items have a degree of
exclusivity. • Li and Wyer noted that with highinvolvement products, purchase decision become more elaborate. • Products commonly owned, such as necessity items, tend to represent lower monetary risk and hedonistic value, and command less involvement.

Publicly vs. privately consumed products
• Publicly consumed products may
reflect a consumer’s self-perception.

Preliminary steps (Method)
• 107 respondents given definition of four
product categories and asked to assign each one of 39 products to one of the categories. • 30 respondents to select the countries to be used in the study. They were provided with a list of 15 countries and then asked to evaluate whether goods produced in these countries of good quality in general. • The question aimed at finding whether respondents had a country-of-origin effect impression of the products made in the countries listed.

Seven scenarios (Sampling design)
• 7 number of scenarios and a desire
to include 40 respondents in each scenario were selected to consider all people. • 336 questionnaire were prepared, reflecting the provision that, on average, 8 respondents per scenario were expected to provide incomplete or otherwise unusual questionnaires.

Six section of the questionnaire (Questionnaire development)
• 1- the ranking of product attribute in
general

• 2- ranking of the same product attributes
given one of the four products tested in the survey.

• 3- measured the importance rating of each
product attribute when deciding to

Cont…
• 4- assessed consumers’ familiarity with
sunglasses using a 5 point bipolar semantic differential scale.

• 5- tapped the consumers’ level of agreement with
statements about purchasing sunglasses using lickert scale.

• 6- investigated the consumers’ likelihood to
purchase sunglasses with a 5 point bipolar semantic differential scale.

Objective Of Study
• To investigate impact of country of
origin on consumers’ purchasing intention of products that are consume inconspicuously. • Out of 336 questionnaires 296 were usable. And its convenience method.

Results of Hypothesis
• The data indicates that information
on a product’s COO is more important for Luxury than for necessity products. • So accept hypo. That influence of COO will be greater on PUL than on PRL.

Decision-making attribute
• Here respondents are giving more
preference to attributes like price, versatility, appearances and other attributes than COO’s importance as a decision-making attribute.

Bonferroni Test Results
• Results from this study of finding out the
COO effect, products COO may be a weak determinant in purchasing products, while its importance is higher when considering the purchase of luxury over necessity products.

• A more +ve COO or even an absence of

COO (e.g. japan) information elicit more purchase intentions than a less +ve COO

Preference for national product categories
• Overall, our findings corroborate earlier
research, confirming that a product’s extrinsic cues, such as its COO, are less important than intrinsic cues, such as reliability and performance. • But than also consumer considered the product’s COO to be either important for luxury products or somewhat imp. for necessities.

Better Understanding
• So as mktg manager they have to
identified the image of their country and consider two options.

3. They should stress on a very +ve COO as 4.
an asset for the particular product category On the other hand, they should avoid giving consumers a COO cue when it is not the most +ve.

Constraints of Types Of Products
• Findings from this study don’t
quantitatively support the contention that a product’s conspicuous consumption may be linked to its COO.

• As some consumers conspicuously

consume brands to define themselves towards others and their own selves.

Executive summary and implication for Managers
• Consumers place COO below such
things as quality and reliability as factors influencing purchase decisions.

• For example, Mercedes make good

cars but don’t necessarily transfer such as +ve an impression to other German products .

Conti…
• Piron’s findings confirm that consumers
use a product’s COO as a Cue in purchase decision but that this cue can be superseded by product knowledge

• Thus COO effects will remain with us and

will always colour people’s attitude to Brands. But they are neither as important nor as powerful as many have thought in the past.

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