Research Methodology Complete (After Edit)

7/31/2019 Research Methodology Complete (After Edit)

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CHAPTER 1

INTRODUCTION

For centuries, people around the world trying to satisfy them through the possession of

imported products from United States of America (USA), Italy, Korea, Japan and so on.

Consumer nowadays is more aware about the imported products as it represents the

image and identity of each individual. The rise in per capita income of consumers in

Malaysia lead to the higher purchasing power, making imported products more

affordable to buy which shows that the local products are far more behind the imported

products.

Consumer views their perceptions towards local product over imported products are in

terms of quality, price and brand. This is an aspect that is often taken into account in

making an assessment of an item. For some people, imported products are more

preferable due to the high quality of the well-known brands and price will be the second

aspect considered because of the passage of current fashion.

However, the local products also have a reasonable price as well as a good quality which

is conducted in line with government recommendation such as campaigns and seminars

for local products. Therefore, in accordance with the recommendations of the

government, people should give full support to the suggestion.


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There is a variety perception of student on the relevant local and imported products

where each has its own views and choice. Thus, the advantages of local product and

choose imported product are based on the ability of individual right and choice.

1.0 BACKGROUND OF STUDY

Purpose of this study was to explore students perception towards the selection of local

and imported products. Research carried out is in Alpha College of Technology (Act).

The situation is to identify the cause and action of students for making choice between

local products and imported products. Besides, this research aims to identify reasons why

student prefer imported products compared to local products. Despite all of local goods is

cheaper compared to imported products.

Moreover, the choice of good quality and the price of imported products make the

imported product more expensive than local products. It shows in every style displayed

by the students today. Mostly prefer branded items such as ADIDAS, CONVERSE,

NIKE, BODY GLOVE and many more. This case clearly shows the imported product

well received among students due to the high-class brand and looks modern.

Other than that, there are also students who are still supporting local products because of

the price and the quality of the local products which is much lower and not comparable to

imported products. Supporting local products gives a lot of benefits besides adding a

source of revenue and promoting the country all over the world. Thus, individuals have

the option of choosing a good quality and high price products.


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1.1 PROBLEM STATEMENT

Often we hear the price of products does not matter if the interest is better affordable and

useful. High quality well-known brands encourage anyone to spend a lot just to get

products of interest. For some students who are more capable, price is not the main point

concerns the selection because of high levels of quality. This encourages them to buy

even at the price offered essentially far more expensive than local products. This

situation enables them to save not having to buy for a second time because used imported

products can be used for longer periods of time and they can save their money in the

future.

However, some student prefers the local product because the price is cheaper as well as

good quality medium. Quality and price is the factors that often taken into account in

every selection of a product. For fans of local products, they can save money by just

spending the lowpayment for popular items. This case was followed as the governments

call for people to choose local products for the purpose of promoting national brands.

This brand was able to expand business in rural area in the country to be able to increase

national income.

Since Malaysians especially students are becoming more aware on local and imported

products, it is important to understand the factors that encourage consumer to buy either

local or imported products. Therefore, there is a need to know whether there is more

selection on local products compared to imported products or not since the local products

and imported products each have their own advantages.


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1.2 OBJECTIVE OF STUDY

In this study, there are four research objectives. The research objectives are:

I. To find out student perception about physical quality of imported productcompared to local product

II. To explore regarding the price of imported product than local productIII. To study why students are still concerned about the brand aspectIV. To observed student perception about country of origin between imported product

and local product

1.3 RESEARCH QUESTION

In this study, there are several research questions that have been developed regarding to

the problem statement. The research questions are:

a) Is there a sign relationship between price and student perception?b) What advantages about physical quality of imported products than local products?c) Why students prefer imported products over local products?

1.4 SIGNIFICANT OF STUDY

1.4.1 For student

Numerous studies have been attempted to gives the information about choosing the local

products compared to imported products. Therefore, this study is important to students

because students played an important part in increasing the countrys value.


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Through this study, students also will learn the physical aspects of quality, price, brand

and country of origin of products that should be taken into account in the selection of

local products and imported products.

1.4.2 For Company

The study is very useful to the company because of all aspects of product selection as a

physical quality, price, brand and country of origin is a factor to be considered in

evaluating a product. Therefore, the company can put a priority to the customers

satisfaction.

1.4.3 For Consumer

In particular, the consumer also has a variety of product-related perceptions of imported

and domestic products. As such, physical quality, price, brand and country of origin are

considered as an important factor in selecting local products compared to imported

products. Thus, consumers can make a good decision regarding products that they will

choose to buy.

1.5 SCOPE OF STUDY

The scope of this study would cover the factors that contribute to the students

perceptions towards local products compared to imported products include physical

quality, price, brand as well as country of origin as independent variables. The location

took place at Alpha College of Technology (ACT) and the respondents of this study are


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the students from Alpha College of Technology (ACT) Seremban 2, Negeri Sembilan.

The students are from IUCTT Program in Alpha College of Technology, Seremban 2.

1.6 LIMITATION OF STUDY

1.6.1. Time Constraints

Time is an important aspect to begin a process of making the questions, so that the

process of collecting data to make a decision for each study performed more quickly.

Consequently, the data collection process needs to be collected as soon as possible to

facilitate the process of obtaining accurate and comprehensive results.

1.6.2 Cost

There are some expenses needed to be spent in order to collect the data particularly when

the data is only available based on the questionnaire given. Therefore, the cost that is

required is more for the purpose of processing all types of data in this study before being

distributed to the respondent.

1.6.3 Limited Data

The study is based on the data collected from the students in Alpha College of

Technology (ACT) only. It is focus only 100 students from the IUCTT Program as

compared to the total number of students is 1056 in Alpha College of Technology.


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1.7 SUMMARY

Conclusions can be drawn based on this chapter related to the perception of various

local products and imported products. Each has its advantages and its own fans. But as

a student, measures to be taken are to identify and support the local product is

appropriate because this is a way to recognize and to identify patterns of our own

national market. Accordingly, the country is able to increase production and expand the

market than Malaysia and overseas.


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CHAPTER 2

LITERATURE REVIEW

2.0 LOCAL PRODUCTS AND IMPORTED PRODUCTS

According to Michael R. Solomon (1996), consumer behavior is the process involved

when individuals or group select, purchase, use or dispose of products, service ideas or

experiences to satisfy needs and desires. Among the many different questions pertinent to

consumer behavior, one of the most difficult to explain is why a consumer makes a

particular purchase, since such answer are seldom simple or clear. However, the question

is crucial since a firm needs to know what really triggers a consumer to purchase a

product.

Among others, consumers are influenced to a great extent by cultural, social, personal

and psychological factors. Each individual is unique, even consumer that come from the

same background and live in a particular society may make different purchase decision

due to the diversity of factors that influence their consumer behavior with the advent of

globalization, the country of origin factor has also been considered as influencing

consumer behavior.

Most country of origin researches have focused on examining consumers attitude and

perception in development countries. In this regard, the observation on hybrid

products, namely products designed in one country and manufactured in another has been

extensively studied. Hybrid products usually carry brand names with various country


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connotations and may even be assembled with parts that are sourced in multiple

countries. Based on previous research findings, American consumer (Reierson, 1966;

Gaedeke, 1973) or American industrial Buyers (White and Cundiff, 1978; Crawford and

Lamb, 1981; Xattin et al, 1982) have preconceived ideas about the quality of products

from specifies countries.

Other studies have indicated that such stereotyping are not limited to the American

consumer but also to consumer from different countries such as England (Banister and

Saunders, 1978) Finland (Darling and Kraft, 1977) Canada (Wall and Heslop, 1986),

Baumgartner and Jolibert, 1978, 1978) and China (Ford, La Tour and Henthorne, 1995).

Consumer attitude toward imports vary from one country or another (Cattin et al, 1982).

Even for consumers of the same nationality such as Malaysia, attitude and perception of

the country of origin may vary significant from one consumer to another. Consumer

behavior and attitude may also undergo significant change over time due to factors such

as the countrys level of industrialization, social lifestyle and the influence of

globalization.

Other than that, the government launched a campaign of Malaysia buy smart choice

simultaneously in three separate locations across the country to encourage people to use

local products. Prime Minister Datuk Seri Abdullah Badawi launched in Mydin Mall USJ

Subang Jaya. In Sarawak, launched by the Chief Minister, Tan Sri Abdul Mahmud

PatinggiBoillevard. Kuching, while in Sabah was launched by Deputy Chief Minister

Datuk Joseph PairinKitingan at 1 Borneo shopping Centre, Kota Kinabalu.


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The latest launch, the first held in 1998, marking the government's commitment and

determination to encourage the people to prioritize local products. The campaign was

considered pertinent to the global economic uncertainty and expected worse to come

within this. By buying local products, it not only blocks the flow of money overseas, but

more importantly the development of industries or local enterprises.

People of this country have a great selection of local products. Of electronic goods,

household goods and jewelry, right down to daily necessities such as food. As a

developing nation, Malaysia has much to produce and produce various goods and

products themselves maybe it is time for our people no longer glorify foreign goods. The

reason, local products are now on par with foreign products in terms of quality, but some

of the products of our country even better guaranteed. In facing the challenge of

globalization, we should discard ego attitude that is not profitable.

Similarly, look down prejudices of local produce, it should be removed away from the

corner of our minds and instead build a spirit of Malaysia Can of sundries including

the quality and standard of his own goods. Along with products, Malaysia has it all. For

example a car, we have pioneered the early automotive industry, and even vehicles

produced by own country has much to penetrate the overseas market. Electronics such as

television, refrigerators, air conditioners and fans also made Malaysia more and more

brands flooding the market.

This does not include fabric-based items such as clothing, a wide range of products

produced by enterprises to compete with foreign products. The important thing is

actually a change in mentality and attitude of our own, to switch to local products. As


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long as the attitude and mentality is not change and we continue to glorify foreign goods,

so long as it is we cannot develop these country local products. We need to start work;

we need to try and practices as recommended by the prime minister when launching the

campaign.

Datuk Seri Abdullah stated that he wanted the people to prioritize Malaysia-made

products and erode the against local products. Prime Minister statement should convince

us all, because to satisfy local products, it is twofold benefit to the various parties. First,

it will prevent the flow of money out of this country, second, it encourages the

development of related domestic industries to produce better quality products and

competitive.

2.1 PHYSICAL QUALITY

Product quality encompasses the features and characteristics of a product or service that

bears on its ability to satisfy stated or implied needs. In other words, product quality is

defined as fitness for use or conformance to requirements (Russelland Taylor, 2006).

Quality can be defined in terms of the moment at which the consumer receives

information or cues about the characteristics of the products while shopping for or

consuming it (Becker, 2000). It also means that the perception of the quality varies

depending on range of factors such as the moment at which the consumers make the

purchase or consume a product, and the place where it is bought or enjoyed (Fandos and

Flavian, 2006).


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Physical or objective quality (an intrinsic cue) refers to measurable and verifiable

superiority on some predetermined ideal standard (Zeithaml, 1988). Research evidence

suggests that objective quality rather than extrinsic cues such as price and brand name

have the largest impact on the perception of quality. On the other hand, while many

studies exclude price as a factor, this is unlikely to constitute.

Few consumers are likely to believe, for instance, that every product coming out of Japan

is high priced. Given that brand and Country of Origin (COO) are extrinsic cues it is

anticipated that their effects will also be influenced by quality differences in a multi- cue

context. As Harris et al., (1994) considered that a crucial issue in Country of Origin

research had to do with the extent to which consumers are willing to make sacrifice and

accept the inferior quality for patriotic reasons.

In this regards, the most acceptable position, is that, when physical or objective quality is

hard to assess or the product is based on fashion or style, extrinsic cues, such as, Country

of Origin becomes important (Han, 1989). The critical issue thus concerns with the

consumers expertise in the evaluation of quality differences. The response to Country of

Origin as cue will depend on the extent to which the consumers are able to evaluate the

quality and are willing to make sacrifices for their country.

Moreover, Malaysia also have a lot of good quality products which is offering reasonable

prices and allow every citizen Malaysia live within their means compare with the

imported products which far more expensive than local products. However, each user is

entitled to make a choice in life spend within their means.


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2.2 BRAND ASPECT

Brand origin is the place, region or country to which the brand is perceived to belong by

its target consumers (Thakor and Kohli, 1996). This may differ from the location where

products carrying the brand name are manufactured, or are perceived by consumers to be

manufactured. According to Thakor and Kohli (1996), the definition seeks to exclude

from its purview cases where a brand occasionally shows its users in settings such as

snowy country scene or a beach, but not clearly enough or consistently enough to allow

the consumers to make an inference about the brand being from a particular place.

The definition is stated in terms of consumer perceptions since the outcomes of interest

to marketers are those which are within the power of the consumer to dispense, namely

purchase of one brand or another. Hence, the actual place the brand originates from is

almost irrelevant, even if it were possible in an era where corporations have dispersed

their function across national boundaries to identify such a place.

Other than that, consumer perceptions may differ from reality because of ignorance, lack

of salience of origin information for a particular brand, or deliberate obfuscation by

companies concerned about the consumer reactions to an unfavorable origin. It is also

believed that in some cases, the consumers may know full well where a branded product

is manufactured but still not consider that location to be the brand origin. For example, a

Honda manufactured in the US may still be thought of as a Japanese car, albeit one made

in a Midwestern US plant.

The current global economic environment is being confronted with new challenges.

Increased liberalization and globalization process have brought about a more competitive


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environment with an increasing number of new entrants into the market. As such,

companies operating landscape is going to be increasingly challenging. With more

Malaysia companies venturing into markets abroad, Malaysia has become a global player

in the export of several products and services.

In order to stay ahead of competition in today globalized world, companies must leverage

on continuous improvement in product quality. Towards this end, the marketability of

Malaysia goods will be immensely enhanced by the ability of companies to meet

international standards and requirement. A key effort to enhance the competitiveness of

products is thought improved design and branding as well as innovation marketing

strategies. In this context, brands have become increasing important component of

product marketing. As branding is designed to create and build product identify,

establishing a strong brand will enhance product competitiveness.

Moreover, consumer perception of the brand is the key to the acceptance in the market

place. Consumers are also increasingly able to avail to a wide range of new and

innovative products and services. At the same time, as they become increasingly

sophisticated, there will be greater demand for higher quality products and services. It is

pertinent, therefore, for companies to keep pace with the rapidly changing trends in

demand patterns of consumer to ensure the sustainability of their product brands.

Distinguished guests, strong brands will create an identify for Malaysia products and

services in global market. The growth of more internationally regarded Malaysia brands

will further reinforce Malaysia reputation for quality products and strengthen Malaysia

position in the global marketplace. This is very much in line with the government


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strategy to encourage Malaysian companies to become part of the global production

network by expanding into overseas markets to new opportunities and acquire new

technologies

Besides, the government also focused on promoting quality brands to build consumer

loyalty and differentiate Malaysia products and services in the market. Banding however

is more than just advertising a name or logo to develop and promote Malaysia products

and services globally, the Malaysian brands highlighting products strong value, as well as

their global appeal.

In addition, various incentives for export promotion activities and brand promotion have

also been provided. Our value proposition on promoting quality Malaysia products also

focuses on trade promotion activities, which are continuously being undertaken to

promote brands in the domestic market as well as abroad. Would like to encourage more

Malaysian companies to come forward and participate in these programmed and avail

themselves of the various incentive that have been put in place.

It reflects on the need for global brands in Malaysia taking into consideration the

consumer perception. It tries to establish that Malaysia has not adequately addressed the

core knowledge needs of the consumer perceptions which relate to global brands. This is

necessitated by the consumer of origin, quality signals, value perception and corporate

social responsibility in most global brands. The nation lacks the critical knowledge of

consumer on the global brands. It conclude that the task of developing a proper

marketing strategic to boost the global brands that will tackle the factors restricting the


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adaptation of global brands in Malaysia. Being a multi-ethnic understanding the

consumer perception towards global brands can harness the marketing strategies.

There are many other brand/branding definitions and descriptions that focus on the

methods used to achieve differentiation and to emphasize the benefits the consumers

derive from purchasing brands. Despite, the many offering definitions of what branding

and a brand is, there is a general agreement in the marketing literature that the brand is

more than a name given to a product. It embodies a whole set of physical and social

psychological attributes and beliefs (Simoes and Dibb, 2001). Brands mean different

things to different consumers. While brand management may strive to communicate a

specific and consistent image to the market, consumers may develop different

perceptions of the brand, also depending on their relationship-intensity with the brand.

Brand management and research may be well advised to acknowledge the relationship

between knowledge, attitude and behavior (Koll and Wallpach, 2009).

According to Kotabe and Helsen (1988), a global brand is one that is available in many

nations and, though it may differ from one country to another, the localized versions have

a common goal and a similar identity. In another words, global brands carry one brand

name and/or logo. A global brand can carry one name or logo and thus be recognized

worldwide, however the product may not be of the same standard at all (Kotabe and

Helsen, 1988). An example is Knorr soups and sauces.

The package with the brand name and logo (of Knorr) was found in supermarkets around

the world and it provides the global brand images, and yet the contents follow the local

taste, (Business Week, 2000). Kotler and Dubois (1994) stated that Marlboro is an urban


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brand which appeals to the universal human desire for freedom and space, which has

been missed especially by the urban dwellers that typically lack freedom and physical

space. Marlboro is positioned around the word as an urban brand and its Marlboro man

symbolizes freedom and space. The term global brand has been used to refer to brands

where at least 20 percent of the product is sold outside their home country or region

(Johansson, 2000). A strong global brand acts as an ambassador when companies enter

new markets of offer new product, (Business Week, 2000). It also helps to guide

corporate strategy decision by indicating which new ideas fit within the brand concept

and which do not (Lamb, et. al, 2005).

According to Yum Brand Incs Annual Report (2005), Yum Brands (formerly Tricon

Global Restaurants), which owns Pizza Hut, KFC, and Taco Bell is a good example of a

company that has developed a strong global brand. Yum believes that it has to adapt its

restaurant to local tastes and different cultural and political climates. In Japan, for

instance, KFC sells tempura crispy strips. In northern England, KFC focuses on gravy

and potatoes, while in Thailand it offers rice with soy or sweet chilies sauce. In China,

the company recruits employees who balance an understanding of the Chinese mindset

with Western business training.

Local products produced in various types of Malaysia and can be marketed outside

though not comparable product imports. However, various initiatives undertaken by the

government to market their products and introducing overseas brand Malaysia. Malaysia

product has its own strength and was able to be marketed overseas. This case because of

government policy continued Malaysia-brand. Various campaigns carried out by the

government in the marketing Malaysia. Therefore, public support is necessary to ensure


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that local products where hearts are always getting the community and the outside

community. Various brands marketed outside the country Malaysia prove that local

brands to compete with foreign brands. Support should be given by each user in the local

product marketing.

2.3 PRICE

Price is the significance factor that affects consumers buying intention. Also, price plays

a vital role in the buying decision making process. Different consumers have different

price perception on different type of product. Besides, price is representing the quantity

of payment for owing the products. Also, rice has subjective internal representations such

as perceived quality, perceived sacrifice, and willingness to buy. Moreover, Jacoby and

Olson (1977) stated that price is an objective external characteristic of a product that

consumer perceives as a stimulus. Thus, price has both objective external properties and

subjective internal representations that are derived from the perceptions of price,

resulting in some meaning to consumer. As we know, consumers are always sensitive to

the price, they might think twice before paying the money or comparing the price of a

product with different brand. Thus, these kinds of consumers are known as price

consciousness. Price consciousness is defined as finding the best value, buying at sales

prices or the lowest price choice (Sproles and Kendall, 1986).

According to Cadogan and Foster (2000), price is probably the most important

consideration for the average consumer. Branded products are expensive than local brand

products. This is because the branded products are well-known, acceptable by most

consumers especially in Malaysia. Besides, according to Debra and Aron (2002), price


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was spoken about more in terms of value for money, the price is fair for the quality you

get. They perceive that higher price equals to good products.

The price-quality link was first examined in by Scitovsky (1944) who suggested that

price can serve dual roles in the consumers decision process. Scitovsky (1994) noted

that while a higher price may serve as a deterrent to consumer purchase as suggested by

neo-classical economic thinking, it may also help motivate consumer purchase of the

product through consumers inference formation processes, whereby higher price are

interpreted by consumers as indicative of higher quality levels. Absolutely, price is an

indicator of the amount of the level of quality. Higher prices lead to higher perceive

quality and consequently to a greater willingness to buy (Dodd et al.1991).

Most of the time, consumers are price-sensitive, but sometime they are willing to pay

higher price in order to purchase branded products. They are willing to pay an amount of

money to buy the branded products because it is valuable and they perceive that the value

of the products is greater than cost. This can be proved by saying that they pay at a

higher price to buy a prestige. For example, they are willing to pay more to show their

higher standard of living and better purchasing power in front of friends and others.

Apart from that, some of the consumers are willing to pay a premium amount of money

for their favors branded products. These consumers basically are brand loyalty. For

instance, some of the consumers are loyal to certain branded products such as Levis,

Adidas and Gucci. These kinds of branded products are costly. However, consumers with

high brand loyalty are willing to pay a premium price for the branded products even the

price has increased.


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In addition, long-term relationships of service loyalty make loyal customers more prices

tolerant. Therefore, price has increasingly become a focal point in consumers judgments

of offer value as well as their overall assessment of the retailer (De Ruyter, 1999).

Research has also found that in particular categories of consumer goods, higher prices

may result in increased consumer interest in the product (Rao and Monroe, 1989;

Scitovsky, 1994). This pattern of behaviour is often a result of consumers assumption

that higher priced goods must be of better quality (Miyazaki et al., 2005; Kardes et al.,

2004; Monroe, 2002). For instances, consumers may suspicious of the quality of product

if its price is below what they consider. This nation is supported by Scitovsky (1944).

2.4 COUNTRY OF ORIGIN (COO)

Increasing availability of foreign goods in most national markets, the country of origin

become more important as consumers often evaluate imported goods differently than

they do competing domestic products. Some global brands are strongly associated with

their country of origin (Roellig, 2001). Indeed, in certain categories this is part of the

essence of the brand. Automobiles are the most obvious example. The German cultural

psyche is embodied in Mercedes Benz, Porches, and BMW. According to Han, et.al.

(1999), the emphasis of COO research is on buying the products made in the home nation

or where the products are made. Thus the globalization of world markets implies a

research focus on global or international brands spanning countries and cultures.

Global brands may be produced in a number of locations so that manufacturers can take

advantages of lower costs and / or greater access to foreign markets. According to

Pecotish (2007), the notion of the COO as an overall image across product classes may


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be contrasted with the possibility of a more limited application to a particular product

class. Further, he explained that the interplay between COO, branding and quality has not

been fully enumerated.

Country of Origin (COO) and any linked brand names have been shown to have both

broad and specific effects on the consumer behaviour (Agbonifoh and Elimimian, 1999).

More knowledgeable and expert consumers may use brand name and COO in a

conditional fashion whiles less knowledgeable consumers are considered to use this

information in a more general manner.

About local products, Malaysians should emulate patriotism and pride displayed by the Japanese

and South Koreans towards their local products. Deputy Prime Minister Tan Sri Muhyiddin

Yassin said people should have faith in local goods as they possessed the same or higher quality

as those imported. It is important to have a positive perception towards locally made products to

support economic growth."We should follow the patriotism showed by the Japanese and South

Koreans who have always exhibited loyalty and pride towards their brands. There are many

Malaysians who have made the country proud by promoting local products in the international

arena and we should be proud of their achievements," he said in his speech read by Domestic

Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob at the opening

of Ekspo Beli Barangan Malaysia at the Putra World Trade Centre yesterday.

There has been considerable interest in recent years on the effects of the products

country of Origin on consumers perception of products. Consumers usually have several

options in their choice of product consumption (Schooler, 1965; Ahmed and d Astous,

2002, 2003; Ahmed and Xia Yang et al. 2003). These research findings indicate firstly,

that better understanding of the country of origin is required in appreciating perceptual


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decisions of consumers. Secondly, the country of origin is used by consumers as a

criterion to evaluate products and to make purchasing decisions (Hong and Wyer, 1990;

Parameswaran and Pisharodi, 1994).

More importantly, the country of origin may create a halo effect, influence customers

attention and evaluation of product features and dimensions (Erickson, Johansson and

Chao, 1984). Country stereotyping may also affect consumers attitudes towards the

brand of a country thus altering attitude rating (Wright, 1975). From country of origin

research indicate that consumers use the country of origin as a criterion to evaluate

products (Han 1989; Johansson 1989). For example, Johansson (1989) argued that

consumers use the information about the country of origin to evaluate product quality.

Other authors suggested that the country of origin could be used as an attribute (Hong

and Wyer 1989, 1990).

Researches on country of origin concept provide insight into consumer attitudes in

various countries in respect of foreign products and corresponding marketing strategies.

It also provided considerable contribution to the understanding of international marketing

strategies. Despite these contributions, empirical research in developing nations in

respect of foreign products andassociated marketing practices and strategies are limited

which reduced the conclusions that canbe drawn from developing nations.

A number of factors limited the previous studies on country of origin: first, most of these

studies were conducted in USA where authors made use of foreign students on the

assumption that their behaviours will reflect behaviours from their home country

(Samiee, 1994). Second, only few studies were conducted outside USA, mostly in


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developed and industrialized nations (Bhuian, 1997). Third, these studies adopted a

general approach in their investigations, i.e they examined consumers perceptions of

products from a wide array of countries, which reduced the extent of detailed information

to be gained on specific country or region (Leonidou, Hadjarcou, Kaleka and Gergans,

1999). This may be helpful for comparative analysis on a general level (Sodiq and Zafar

2006).While a number of studies have been conducted in many developed nations, few

studies, if any, as far as it can be determined, havebeen conducted on Nigerian

consumers preference of foreign made products.

The earliest study on the country of origin concept can be traced back to the work

ofNagashima (1970). He argued that consumers evaluate products based on the picture,

the reputation, and the stereotype that consumers and businessmen attach to products of a

specific country. The image of a product is formed by associating the product to such

variables as representative products, national characteristics, economic and political

background, history and tradition of the country of origin of the product. Samiee (1994)

defined country of origin effect as the influence or bias that consumers may have

resulting from the country of origin of theproduct or service or its associated products.

The results of the effects may be varied some of them may be due to the experience of

the consumers of the country of origin; knowledge of the country of origin of the

product; political beliefs; ethnocentric tendencies and fear of the unknown. (Ahmed,

Johnson and Yang 2003).Several studies have extensively documented that country of

origin influences productevaluations.


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In general, evaluations of a country associated with a product leads to a corresponding

favourable and unfavourable evaluation of a product (Gurhan-Canli and Maheswaran

2000b; Hong and Wyer 1989, 1990). Previous studies provided the conditions under

which country of origin is used in new evaluations; some of these conditions include the

nature of information and the processing goal would determine whether country of origin

will be used for product evaluation (Gurhan- Canli and Maheswaran, 2000b). For

example, Gurhan- Canli and Maheswaran (2000b) study found out that products from

Japan elicit favourable perceptions of high quality product. However, Klein, Ettenson

and Morns (1998) found out that some Chinese consumers may not consume Japanese

products because of high animositydeveloped against Japan during the war.

It shows that the consumers emotions have a significantimpact on the country of origin

evaluation. Consumers in less developed countries may favour products and brands from

developed countries (Solomon, 2004) and Nigerian consumers are no exception.

Consumers attitude towards Western culture especially from countries that were

colonized are ameliorated (Klein et. al 1998) and they often value Western goods more

than locally made goods (Ahmed and dAstons, 2004). Consumers may prefer high-

quality imported goods, they do not blindly buy Western goods, and they may rather seek

quality at a good price (Cui, 1997). It is also possible that foreign brands may lose their

appeals as locally made goods increase in quality and attractiveness (Zhon and Hui,

2003; Li, 2004).

Another reason why foreign products may lose their appeal in less developed countries

such as Nigeria may be the local consumers increasing knowledge about foreign

products and brands (Dickson et al, 2004). It has also been reported that consumers buy


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foreign goods for prestige and nationalistic belief (Zhon and Belk 2004).Therefore, it can

be suggested that consumers in developing countries have conflicting reactions towards

foreign brands.

Moreover, Country of origin (COO) is a cue that consumers use to evaluate foreign

products and brands. Country of origin (COO) has been defined in several ways: as the

country of location of the corporate headquarters (OZsomer et al, 1991); country of

manufacturing or assembly (Papadopolous, 1993); and the country of product design

(Ahmed et al 1994). COO is also defined as any influence or bias that consumers may

hold, resulting from the COO of the associated products or service (Samiee, 1994). The

source of the effect is varied: some are based on the experience of the consumers with the

products from the country in question, others are from personal experience, knowledge

regarding the country political belief, ethnocentric tendency or fear of the unknown

(Samiee, 1994).

Previous studies had shown that COO can influence consumers attitudes (Khachaturian

andMorganosky, 1990); purchasing intentions towards foreign products and brands

(Zhang, 1996; Kaynak, Kuankemiroghiand Hyde, 2000); evaluation of its attributes (Kim

and Pysarchik, 2000); attitudes toward products (Lee and Leong, 1999) and product

purchase value (Ahmed and dAstous, 1999). These influences have been reported for

products in general as well as specific product categories, including consumers as well as

organizational buyers (Kim and Pysarchik, 2000; Ahmed and dAstous, 1995; Li et al,

2000; Huddleston et al, 2001).


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Country of origin (COO) is very important in evaluating foreign products principally

from two main perspectives quality (Khachaturian and Morganosky, 1990 and

Steenkamp et al, 2003) and purchase value (Ahmedand d Astous, 1993). These

perceptions are influenced by such factors as brand familiarity, the level of involvement

in the purchase decision, the level of involvement evoked by the product class, the

familiarity with countries and preference for domestic products (Kaynak and Kara 2000;

Steenkamp et al, 2003; Batra et al 2002).

Consumers associate a specific image to products from given country. Such images are

influenced by a number of variables including national characteristics, economic and

political background history and traditions (Nagashima, 1970, Sohail and Ahmed -).

COO effect is concerned with how consumers perceive products sourced from a

particular country (Chinen, et al 2000). Extent literature indicated that COO influence

can be traced to product assessment and decision making processes as it affects

consumers prediction of likelihood of specific features of products manufactured in a

certain country (Zain and Yasin, 1997; Solomon, 2004).

A number of studies have indicated consumers bias in favour of products from

developed nations such as USA, European countries and Japan. This is usually associated

with high levels of economic and technological development (Chinen et al, 2000;

Huddleston et al, 2001; Hsieh, 2004) which translate into high quality and better

performance of products. One important aspect of the effect of COO is the product type.

It is established in literature that products that exhibit high complexity or products

considered being luxurious items, automobiles, computers and television sets, are likely

to be more affected by the COO (Ahmed and dAstous, 1993 2001; Okechuku and


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Onyemah, 1999). A number of variables have been identified to influence the COO

effects. For example, demographic factors such as age and sex have been found to

influence country of origin effect (Schooler, 1971; Johanson et al 1986). College

graduates have also been found to view foreign products more favourably than less

educated respondents.

Muhyiddin said the country's gross domestic product exceeded the initial target of seven per cent

after recording a growth of 7.2 per cent last year, while the first quarter of this year recorded a

4.6 per cent growth. This helps to strengthen the economy despite global economic slowdown.

The domestic demand is expected to strengthen with the support of 13 entry point projects under

the National Key Results Area, which falls under the ambit of the Economic Transformation

Programmed. He added that this would help increase a gross national income of RM108 billion

besides creating more than 370,000 jobs by 2020.Muhyiddin said it was imperative to ensure that

the country remained competitive by placing focus on value-added activities and output. We

have to create an environment that encourages innovation and creativity. To ensure that our

products are in the market, local entrepreneurs should work harder and be more creative in their

products."

2.5 THEORETICAL FRAMEWORK

Based on the study of the literature, the conceptual model is illustrated in Figure 2.1.

Figure 2.1 showed the theoretical framework proposed for this study. This research tries

to look at the possibility of the relationship between dependent and independent

variables.

Dependent variable: Students Perceptions towards Local Products Comparedto Imported Products

Independent variables: Physical Quality, Price, Brand and Country of Origin.


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Figure 2.1: Schematic Diagram (Relationship Diagram)

Independent Dependent

2.6 HYPOTHESES STATEMENT

Hypothesis is an observation can be made to test in an investigation in the future. In

addition, the research question can be implemented by testing the hypothesis and also

can find the relationship between variables. To test whether there is a relationship

between the dependent and independent variables, the hypotheses are:

H1: There is significant relationship between physical quality student perceptions

towards local products compared imported product.

H2: There is significant relationship between price student perceptions towards local

products compared imported product.

H3: There is significant relationship between Brand aspect student perceptions


H4: There is significant relationship between Country of Origin student perceptions


Students

Perceptions

towards Local

Products

Compared to

Im orted

Physical Quality

Price

Brand Aspect

Country of Origin (COO)


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CHAPTER 3

METHODOLOGY AND DATA

3.0 RESEARCH DESIGN

In the research design involves the process of collecting and analyses data to obtain

the result of the study made. There are two research design is often performed to make

as study. Among are:

I. Explanatory research: is not structured and formal research is undertaken toobtain background information about the general nature of problem within the

research. Research was carried out to researchers who do not know many of

the obstacles or the problem of the research process.

I. Descriptive research process: is a process done to describe the answer to thequestion of who, what, when and how at this stage, researchers can identify

the variables or factors to be used in the research undertaken.

3.1 SAMPLING DESIGN

3.1.1 Population of the study

This study will be conducted among the students of Alpha College of Technology

(ACT), Seremban 2, Negeri Sembilan. Therefore, the target populations in this study


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comprised of all of the students from IUCTT Program in Alpha College of

Technology (ACT), Seremban 2, Negeri Sembilan. The total number of students in

ACT is around 1056 students.

3.1.2 Sample and Sampling Design

Sampling units are drawn from the target population in making estimates of

population characteristics. Sampling unit is the elements or objects available for

selection during the sampling process. So, the sampling elements are only restricted

to the students that are currently pursuing his or her studies in ACT. Since the total

number of population is around 1056 students, samples of 100 students are chosen.

A cluster sampling method is used to determine the samples. The target population

was first divided into two subpopulations (cluster) based on the two major programs

at ACT, which is the UUM Programs and IUCTT Programs. Then, only one cluster

namely IUCTT was chosen because only this program available due to the other

program still in semester break.

3.2 DATA COLLECTION METHOD

In this section, the data collection process described in detail both the primary and

secondary data were used to obtain accurate data and information. Data collection is

the process of gathering relevant information according to the most important

variable in research. Data collection process used Likert Scale, some of which are

strongly agree, agree, moderate, disagree, and strongly disagree. The primary data


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is collected from the questionnaire. The primary data is original data which is

gathered and evaluated. For example, a structured questionnaire is conducted for the

purpose of discovering the factors that affect the students perceptions towards local

products compared to imported products.

On the other hand, secondary data are referring from books, journals, e-journals, and

internet. E-journals are acquired from the website. This type of information is useful

in conducting the literature review and the questionnaire.

3.3 QUESTIONNAIRES

Questionnaire served as an important tool to get the response from the respondents.

All the data collected from the questionnaire will then be evaluated. The

questionnaire has 2 section which is section A and B. In this section, shows the

demographic profile of respondent such as gender, age, race, and religion.

In addition, section B has 20 questions that respondent should be answer. The

questionnaire is dividing by 4 categories that follow by types Physical Quality, Price,

Brand Aspect, and Country of Origin. From these questions, researcher will know

student perception toward local products compared to imported products.


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3.4.2. Likert Scale Question

This type of question was designed to identify how strong subject or respondent

agree or disagree with the statement on five point scale with the following anchors.

In this research have 5 categories in Likert Scale Question, strongly agree, agree,

moderate, disagree, and also strongly disagree.


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CHAPTER 4

FINDINGS AND ANALYSIS

CHAPTER NI SY XSEMPAT CHECK LG..PEKATA SETTLEKAN DULU SEMUA AND THEN BG SY UTK

SEMAK KALI YG TERAKHIR YEROKEY! GOOD LUCK!

3.5. DATA ANALYSIS

Statistical analysis of data from the survey was accomplished by using statistical

package for social science (SPSS) version. Frequency distribution was use to

summarize the social, demographic, characteristic of the respondent.

Besides that, descriptive analysis was use to descriptive and to analyse the social

demographic of the respondent such as gender, age, race, religion, and status, local

product, and imported product.

3.5.1 TYPE OF ANALYSIS

Researcher will analyses the factors that perception of student toward local product

compared to imported product. The respondents were required to answer the closed

ended question. The questionnaire consists of 2 parts. These parts include:

Part A - This part to identify the demographic profile of the respondents

Part B - This section is to identify the perception of student at Alpha College

of Technology toward local product compared to imported product


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Table of analysis

No Objective Question from

questionnaire

Type of analysis

1To find out perception of

student about physical quality

of imported product compared

to local product

Q1-Q5 Analysis of

frequencies

2 To explore about price of

imported product than local

product

Q1-Q5 Analysis of mean

3 To study why students are

still concerned about the

brand aspect


4 To observed perception of

student about country of

origin between imported

product and local product



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3.6. CONCLUSION

Based on the chapter methodology, the method of research design, sampling design,

process data collection, data analysis and research instrument. In this researcher, the

research design was used descriptive design to identify the perception of student

toward local product compared to import product. Therefore, this research using

statistical package for social science (SPSS) to analyses in order to obtain the accurate

result.

Research Methodology Complete (After Edit)

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