Executive
Summary
Dubai
residents were surveyed regarding their perception on country of origin as the
determinant of consumer behavior and their purchase and preference for locally
or foreign-made products. This study used the Consumer Ethnocentrism Scale in
assessing the variables.
The
findings indicated that the respondents that country of origin affects the
economy of Dubai.
Thus, the predominant response indicates that the respondents prefers to buy
Dubai-made products when given a choice between foreign goods. Moreover, the
result showed that despite the influx of international brands in
w:st="on">Dubai, the respondents
still prefer to buy locally-made products. However, the study also indicated
that it is not only country of origin factors that affects the progress of w:st="on">Dubai’s economy. There are
several factors affecting the progress of the economy of w:st="on">Dubai such as terrorist attacks,
globalization, and its business relationships with other countries.
Using
a t-test analysis, the statistics showed that there is a significant
relationship in the perception of the respondents to the concept of country of
origin effect on the consumer behavior in the w:st="on">Dubai market. Consequently, the t-test
analysis reveals that the concept of country
of origin has a significant effect on the consumer behavior in the
w:st="on">Dubai market. The
statistics shows the t-value to be -1053.8 which illustrates that there is a
relationship between the variables.
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Chapter 1
style='font-family:Arial'>PROBLEM AND ITS BACKGROUND
Introduction
style='font-family:Arial'>Country of origin (CO) is a potentially powerful
image variable that can be used to gain competitive advantage in international
marketing. However, deficiencies in the definition and measurement of its
facets have contributed to ineffective and infrequent use of CO image as
competitive tool. Country-of-origin (CO) image refers to "buyers' opinions
regarding the relative qualities of goods and services produced in various
countries" (Bilkey 1993, p. xix).
style='font-family:Arial'>Several reasons may account for the relative neglect
of CO image as a competitive tool. First, the CO variable is culture-laden, and
most managers are inadequately trained to address cultural issues despite
significant research indicating that multinational marketing strategy is
ill-served if cultural and perceptual differences among countries are not
properly comprehended and heeded (Harris 1984; Kale 1991). Second, translating
CO images into marketing communication opportunities is difficult because the
relationship between the brand and its country of origin is potentially more
distant than the relationship between the brand and its firm, store, or
advertising. Third, Zinkhan and his colleagues' observations about what
constitutes effective measures for image manifestations and their current state
of development are equally applicable to CO image measures (Dobni and Zinkhan
1990; Johnson and Zinkhan 1990; Villanova, Zinkhan, and Hyman 1990).
Consumer
behavior on the other hand, depends so much on marketing strategies and
advertisements of Multinational Companies in order to penetrate domestics
markets. Once a market is selected, marketing managers must determine whether a
global or local approach should be taken. Most often, MNCs uses the Country of
Origin strategy in order to market their products as more superior thanstyle='mso-spacerun:yes'> that of domestic products. Their brand
strategies involve inherent choices between using a global brand across markets
or developing brands for specific markets.
Relevant
issues to consider in making these decisions include consumer familiarity with
the global brand (and the size of the global consumer segment), the linguistic
implications of the brand name for a new market, consumer culture, the presence
and nature of competing brands within a given category, and the degree to which
the brand is to be positioned on the basis of its country-of-origin (Alden,
Steenkamp and Batra, 1999; Batra, Ramaswamy, Alden, Steenkamp and Ramachander,
2000; Gupta and Govindarajan, 1999; Shoham, 1999).
In the case
of Dubai, it
has assimilated American consumerism (Tompaine, 2002) through the years. There
is no clash of civilizations: veiled mothers take their children shopping for
Nike sneakers at the city's malls, stopping for lunch at KFC or McDonald's
without giving the matter a second thought (Tompaine, 2002).
Dubai
embraces America's
consumer culture, but carries it out to its logical extreme. According to
Tompaine Journal (2002) this goes far beyond the presence of U.S.-based
fast-food chains -- Coke, Pepsi, Kodak or any of the other well-known symbols
of American globalism (in the recently opened Dubai Internet City the most
prominent building bears a Microsoft logo). This is evidenced by the perception
of marketers such as: Does store "A" have five brands of VCR to its
competitor's three? This has nothing to do with consumer 'empowerment'. Store
"A" just figures that five choices instead of three may help get you
in the door and separate you from your money. Moreover, every flat surface in
w:st="on">Dubai appears to contain
advertising. This consumption behavior of Dubai
seemed to have been leaning towards the internationalization and liberalization
not only of goods and products but also on the choices of the residents
themselves.
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Background
of the Study
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style='font-family:Arial'>Marketers often promote the fact that a product is
made in a country with a reputation for manufacturing high-quality merchandise.
Moreover, experimental studies support the viability of this strategy.
Associating a product with a country that is known for superior workmanship
often increases evaluations of this product (Erickson, Johansson, & Chao,
1984; Hong & Wyer, 1989, 1990; Johansson, 1989; Tse & Gorn, 1992; Wall,
Liefeld, Heslop, 1991). Despite this evidence, however, country-of-origin
effects are not clearly understood under many conditions in which products are
evaluated. A number of factors potentially influence both the magnitude and the
direction of the effect that a product's country of origin can have on
evaluations of its quality. These factors must ultimately be specified.
Moreover, the cognitive processes that underlie their effects must be
identified, and the conditions in which the processes operate must be
circumscribed. Until this is done, the effect of calling consumers' attention
to a product's country of origin in any given instance will be hard to predict.
style='font-family:Arial'>Hong and Wyer (1990), for example, found that the
reputation of a product's country-of-origin information influenced perceptions
of a product's quality well over the effects of information about its specific
attributes. In some conditions, however, country-of-origin information also had
an indirect effect on product evaluations through its mediating influence on
the way the attribute information was processed. Once formed, this concept
influenced subjects' interpretation of the intrinsic attribute information they
received subsequently, and so the latter information had different effects than
it would normally have (Hong & Wyer, 1990). Moreover, when subjects
initially learned about a product without an a priori objective of evaluating
it, their knowledge of the product's country of origin stimulated them to think
more extensively about the specific attribute information that followed it. As
a result, the attribute information had more impact on the judgments they later
reported (Hong & Wyer, 1989).
The quality
of products that are typically manufactured in a country can also potentially
serve as a comparative standard relative to which a particular product is
evaluated. Thus, a product of average quality might be viewed as relatively
inferior when compared to products from a country with a reputation for
high-quality merchandise. However, the same product might be viewed as superior
in comparison with products from a country with a poor reputation. To this
extent, the reputation of a product's country of origin could have a negative
contrast effect on evaluations of the product. Although the use of other
extrinsic attributes, such as price, as standards of comparison has in fact
been detected (Herr, 1989; Monroe, Grewal, & Compeau, 1991), the use of
country of origin in this capacity has not been identified in research reported
to date (Bilkey & Nes, 1982; Ozsomer & Cavusgil, 1991).
style='font-family:Arial'>There is a way in which country of origin might serve
as a comparative standard (Lynch, Chakravarti, & Mitra, 1991). On one hand,
it might come into play after the object's features have already been
integrated into a subjective impression and subjects are asked to report their
impression along a response scale. In this case, it might be used as an end
anchor to construe the range of values to which the response scale pertains
(Higgins & Rholes, 1976; Ostrom & Upshaw, 1968; Wyer, 1974). Thus, if
the products made in the country are generally favorable, subjects might
subjectively position the response scale to include a more favorable set of stimulus
values than they otherwise would.
style='font-family:Arial'>This study seeks to infer these stated aspects of the
concept of country of origin among consumers particularly in an Arab city,
particularly the United Arab Emirates’
city of Dubai.
w:st="on">Dubaistyle='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>, the
commercial capital of the UAE, has the largest tourism market, attracting both
business travelers and an increasing number of leisure tourists. While
w:st="on">Dubai enjoys the main focus as one of the two most
powerful Emirates along with Abu Dhabi,
the other 5 Emirates, while being completely different to each other in terms
of population and economic resources, still have something to offer and are
keen to develop themselves and build their own modern business and commercial
infrastructures.
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Statement
of the Problem
style='font-family:Arial'>
style='font-family:Arial'>One could consider two general ways in which a
product's country of origin can influence judgments. First, it can have an
informational influence; that is, it can be used to infer more specific product
attributes or be treated as a desirable or undesirable feature in its own right.
Second, the quality of products that are typically made in a country might be
used as a standard of comparison to which any particular product from the
country is evaluated. Note that the use of country of origin in this latter
capacity would lead it to have a negative contrast effect. That is, evaluations
of the product would be less favorable when it is made in a country with a good
reputation than when it comes from a country with a poor one.
style='font-family:Arial'>The study intends to investigate the effects of the
concept of country of origin in the buying behaviors of the product consumers
in the city of Dubai.
Specifically the study seeks to answer the following questions:
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What contributes
to the formation of CO images among the consuming public in w:st="on">Dubai?
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style='font-family:Arial;mso-fareast-font-family:Arial'>2.
What is the level
of familiarity does the consuming public of w:st="on">Dubai have particularly in origin of the
products sold in the city?
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style='font-family:Arial;mso-fareast-font-family:Arial'>3.
How salient is
CO image in shaping attitudes and behavior toward specific products and brands
and in affecting choice behavior, both in absolute terms and relative to other
marketing stimuli?
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style='font-family:Arial;mso-fareast-font-family:Arial'>4.
How much
information is provided by the products in order for them to weigh heavier on
the judgment of the consuming public?
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style='font-family:Arial;mso-fareast-font-family:Arial'>5.
Is there a
significant relationship between the quantities of information provided by the
products in the buying behavior of the consuming public in the city of
w:st="on">Dubai?
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Is there a
significant relationship between a product’s country of origin and the buying
behavior of the consuming public in Dubai?
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Hypothesis
style='font-family:Arial'>
style='font-family:Arial'>The researcher intends to investigate the
implications of country of origin principles of buying behavior among the
consumers in the country of Dubai.
This study intends to prove the following hypothesis:
style='font-family:Arial'>“The concept of country
of origin has no significant effect on the consumer behavior in the Dubai
Market.”
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Significance
of the Study
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>This study will
primarily benefit both the youth and the leaders in the commercial industry of
w:st="on">Dubai.style='mso-spacerun:yes'> The youth, especially those intent on a
career in the commercial industry will find out what is expected of them by the
industry, what future the industry has for them, and what they have to do to be
competitive career-wise, in this type of industry.style='mso-spacerun:yes'> As for the established businessmen, this
study will show if their expectations and goals can be met by future batches of
business management. Through feedback,
they would be able to voice out their concerns regarding the concept of
branding and consumer behaviour, which will consequently elevate the quality of
graduates and help the universities cope with their demands and the
ever-changing needs of the industry.
style='font-family:Arial;color:windowtext;mso-ansi-language:EN-GB'>style='mso-tab-count:1'> This study would also be of help to
those market scientists who are interested in finding out the social
implications of the boom and the bust phases of the industry as dictated by
consumer behaviour.
lang=EN-GB style='mso-bidi-font-family:Arial;mso-ansi-language:EN-GB;
font-weight:normal'>Finally, this study would benefit future researchers in the
field of the market, education, human resource management, business and the
social sciences particularly in areas in the Arab region such as
w:st="on">Dubai since it depicts
the future of the consumerism and its varying effects to many sectors of
society.
Scope and
Limitation
lang=EN-GB style='mso-bidi-font-family:Arial;mso-ansi-language:EN-GB;
font-weight:normal'>The study intends to investigate the effects of country of
origin concept in the city of Dubai particularly
in the commercial sector of the said w:st="on">United Arab Emirates cosmopolitan. style='mso-bidi-font-family:Arial;font-weight:normal'>For this study, primary
research and secondary research will be used. Primary research will be
conducted using anonymous questionnaires that will be sent to randomly selected
product consumers in the city of Dubai.
The researcher will also be conducting focus group interview with market
analysts and economists regarding the possible effects of the concept of
country of origin on the consumer behavior on w:st="on">Dubai. The questionnaires will be used to
collect quantitative data and the interviews will be used to provide
qualitative insights into the data collected.
style='font-family:Arial'>The data will be analyzed and compiled for the
correlation of the hypothesis. An indicator of the control group will be
individuals at the city of Dubai.
The data will then be presented by means of graphical representations and
illustration and the difference would be highlighted. A negative correlation
between the variables would suggest that the hypothesis is null, that is, that
the concept of Country of Origin has no impact to the consumer behavior of the
product consumers of Dubai.
Review of Related
Literature
style='mso-bidi-font-family:Arial;font-weight:normal'>Country of Origin has
been illustrated as a factor in consumer choice and product evaluation. It has
been researched and proven to affect consumer behavior particularly in Arab
countries such as the UAE, where culture has been deemed as conservative and
tends to resist foreign offensive in their consumer market. However, in
w:st="on">Dubai, the establishment
of the Duty Free paved the way for the flow of goods and products thus,
allowing foreign companies to introduce their respective brands. This section
shall illustrate the phenomenon of Country of Origin (COO) and how it affects
consumer behavior. It shall also present an examination of UAE and
w:st="on">Dubai’s political economy
and consumer market. Furthermore, an examination of the methodological issues,
internationalism vs. nationalism, and the consumer perceptionstyle='mso-spacerun:yes'> and evaluation goods based on COO shall be
reviewed.
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Country of Origin
style='font-family:Arial'>Systematic research on the country-of-origin (COO)
effect began with the publication of Schooler's (1965) seminal article in the
Journal of Marketing Research ("Product Bias in the Central American
Common Market"). Early research on COO can be described as demonstrational
in nature; most research was only concerned with documenting the existence of
the COO effect under a variety of circumstances (Jolibert and Peterson, 1995).
Statistically significant COO effects have been documented across countries,
for a variety of product categories, and for both industrial buyers and
consumers.
style='mso-bidi-font-family:Arial;font-weight:normal'>After concluding that
"all of the studies reviewed indicate that country of origin does indeed
influence buyers' perceptions" (p. 94), Bilkey and Nes set forth several
issues that they believed needed to be addressed to advance the state of COO
knowledge. These issues stimulated a plethora of wide-ranging research that
sought to establish theoretical explanations for the COO effect as well as
determine its antecedents and relative influence in the presence of other cues.
Several studies attempted to clarify and understand how individuals used
country of origin in the context of information processing and knowledge
activation (Hong and Wyer, 1989; Johansson, 1989). For instance, Han (1989)
posited that the country of origin of a product could serve as a stereotype
measure or surrogate for other product attributes for individuals unfamiliar
with it or the product category. For individuals familiar with the product or
product category (e.g., experts), Han posited that country of origin could serve
as a summary index or heuristic that reduces the amount of information
processing required in making a decision. Recent research has focused on the
antecedents of the COO effect (Hong and Wyer, 1990; Roth and Romeo, 1992) and
assessing the relative importance of country of origin as one of many possible
cues (Thorelli, Lim and Ye, 1989; Tse and Gorn, 1993).
Internationalism vs.
Nationalism in Consumer Behavior
When a firm decides to export products to new
markets it faces two fundamental decisions: which markets to enter, and whether
to use a global or a localized strategy (Klein, 2002; Jain, 1989). Regarding
the first issue, managers must identify the intrinsic factors of each potential
new market that might predict future success or failure. These factors are
extremely varied and range from matters concerning infrastructure and political
stability, market size and consumer income levels, to issues related to the
presence of local or previously established multi-national competitors
(Czinkota and Ronkainen, 1996; Gupta and Govindarajan, 1999).
style='font-family:Arial'>Two constructs emerging from the marketing literature
suggest important additional factors that the international manager should
consider when making branding decisions: consumer animosity toward a producing
nation, and consumer ethnocentrism. Consumer animosity--defined as anger
related to previous or ongoing political, military, economic, or diplomatic
events--has been found to affect consumers' purchase behavior (Klein, Ettenson
and Morris, 1998). Consumer ethnocentrism is defined as the belief that it is
inappropriate, or even immoral, to purchase foreign products because to do so
is damaging to the domestic economy, costs domestic jobs, and is unpatriotic.
This construct has also been found to affect purchase behavior (e.g., Shimp and
Sharma, 1987).
style='font-family:Arial'>Research on country-of-origin effects has generally
examined how a country's image (concerning, for example, workmanship,
innovation, and technological advancement) is projected on to the features of
products produced by that country (Bilkey and Nes, 1982; Johansson, 1989;
Johansson, Douglas and Nonaka, 1985; Papadopoulos and Heslop, 1993).
style='font-family:Arial'>Among the image variables in the international
advertiser's toolkit, the CO variable is conceivably the most potent if
skillfully applied. Papadopoulos (1993, p. xxi) asks rhetorically, "It is
often said that brand names like 'McDonald's' are worth millions. If so, how
many billions is Germany's
image worth?" A few authors have questioned the magnitude of importance of
CO image in affecting choice behavior (Ettenson, Wagner, and Gaeth 1988;
Johansson 1989; Johansson, Douglas, and Nonaka 1985), but most acknowledge its
salience in overall product evaluation and as a proxy for other, more
intrinsic, qualities (Han and Terpstra 1988; Yoo 1992).
style='font-family:Arial'>Internationally, CO serves as a useful extrinsic cue
and as a surrogate for difficult-to-evaluate intrinsic characteristics such as
quality and performance because consumers tend to be less familiar with foreign
than with domestic products (Huber and McCann 1982; Olson 1977). Han and
Terpstra (1988, p. 236) claim, "It has been found that all products
originating in foreign countries are subject to country-of-origin [image]
effects." Han (1990, p. 24) further states that CO-image studies in
general show that consumers have significantly different general perceptions
about products made in different countries. Hooley, Shipley, and Krieger (1988,
p. 67) asserted that international marketers need to understand these country
of origin images as they relate both to their own, and to their competitors'
products. Specifically, they will need to determine whether such images are
positive or negative, whether and how they affect behavior, and how they can be
catered to in the marketing strategy. Yet, few multinational marketers and
advertisers make full use of their products' favorable CO image or successfully
overcome the liability associated with an unfavorable one.
Consumer Ethnocentrism and Product Choice
style='font-family:Arial'>Animosity and consumer ethnocentrism can have very different
implications for international marketers, depending on the origin of products
available in a given category. If the choice is between a domestic and a
foreign good, then highly ethnocentric consumers will be likely to chose the
domestic product. If the choice is between two foreign goods, one of which
comes from a country that is the target of hostility, then animosity will
predict the choice. Consumers can hold non-protectionist views about foreign
products and feel that their purchase is perfectly appropriate in general, but
still refuse to buy the products of a specific country. Overall, studies of
international consumer animosity point to the need for firms to develop a
richer understanding of how current and prospective consumers in international
markets react to goods imported from a particular producer nation.
style='font-family:Arial'>Country-of-origin has been found to act as an
information cue that affects judgments of product quality, particularly when
consumers are less familiar with a product category (Han, 1989; Maheswaran,
1994), or less motivated to process product information (Hong and Wyer, 1989).
In general, the country-of-origin is used by consumers to assess a product's
quality, and to choose the best option available.
style='font-family:Arial'>The animosity model of foreign product purchase
suggests a very different process by which a product's origin can have an
impact on purchase decisions. Consumer animosity has been found to have a
direct, negative effect on consumers' purchase behavior, but unlike previously
studied country-of-origin effects, consumer animosity does not drive product
attribute judgments or quality perceptions. Consumers separate their anger
towards a country from their assessment of that country's products. In other
words, angry consumers do not distort or denigrate images of a target country's
products, they simply refuse to buy them (Klein et al., 1998).
style='font-family:Arial'>This fundamental premise of the animosity model--that
animosity's effects on buying are direct and independent of product quality
judgments--not only diverges from traditional country-of-origin research, but
also from most behavioral frameworks in marketing which assume a primary
relationship between consumers' product judgments and their purchase behavior
(e.g., Green and Srinivason, 1990; Wilkie and Pessemier, 1973). In the case of
consumer animosity, anger can lead consumers to eschew a country's goods in
spite of positive product perceptions.
style='font-family:Arial'>The animosity model also includes the construct of
consumer ethnocentrism. Previous studies have found an inverse relationship
between scores on the CETSCALE, which measures consumer ethnocentrism, and
consumers' willingness to purchase imports. Further, consumer ethnocentrism has
been found to predict judgments of the quality of imported goods (Netemeyer et
al. 1991; Shimp and Sharma, 1987; Sharma, Shimp, and Shin, 1995). Those who
believe that it is wrong to buy foreign and that only domestic products should
be purchased also tend to denigrate the quality of foreign goods.
style='font-family:Arial'>Thus, while consumer ethnocentrism is related to both
product judgments and purchase intentions, animosity affects consumers'
purchase decisions independently of product judgments. A further distinction
between the constructs is that animosity is comprised of consumer feelings
toward a specific country, whereas consumer ethnocentrism concerns attitudes
toward buying goods from all foreign countries. While some consumers may find
it perfectly acceptable to buy foreign products from a variety of countries,
they may refuse to buy a product from a specific nation toward which they feel
enmity. Thus, it is not enough for international managers to understand the
degree of consumer ethnocentrism within a potential market. Favorable opinions
toward buying foreign goods in general could mask potent attitudes against
buying from a specific foreign country.
style='font-family:Arial'>It is essential, therefore, to understand the
decision contexts under which each construct is likely to play a dominant role.
Klein et al. (1998) measured the effects of both constructs on general buying
measures (e.g., "Whenever possible, I avoid buying products from
Japan"). Yet, it would be more diagnostic to predict purchase decisions
based on consumers' choice sets. Consumer ethnocentrism should be particularly
relevant when a consumer chooses between a foreign and a domestic product; it
should, however, be irrelevant for choices between two foreign products,
because both products are bad options for the ethnocentric consumer. Animosity,
however, should be relevant when choosing between goods from foreign countries,
provided that the consumer holds animosity towards one of these countries.
Further, one might expect that both animosity and consumer ethnocentrism will
play a role when the consumer chooses between a domestic product and a foreign
product from a disliked country. The relative importance of t he two constructs
in this situation is likely to depend upon the predominance of ethnocentric
beliefs and levels of animosity within a given society.
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The Political Economy of UAE and Dubai
style='font-family:Arial'>The partnership between the United Arab Emirates and
the United States of America, upon recognition of UAE's independence in 1971,
developed ties and have grown progressively stronger ever since. style='mso-bidi-font-size:7.5pt;line-height:200%;font-family:Arial'>(Al-Alkim,
H., et al., 1999). This partnership has
been the gateway of UAE, particularly Dubai in allowing for the free-flowing of
goods and businesses (Al-Alkim, H., et al., 1999). In fact, the establishment
of Dubai’s Duty Free allowed UAE citizens to be exposed to goods from other
countries and in a variety of brands. It has been stipulated by Al-Alkim, H.,
et al. (1999) that it also shaped the consumption behavior of Dubai residents.
style='font-family:Arial'>The UAE is what many economic writers call a
competition state, a state that provides a lot of space for entrepreneurial
activity and one that pursues supply-side policies style='mso-bidi-font-size:18.0pt;line-height:200%;font-family:Arial'>(Tetreault,
1999). A competition state is one that
supplies resources: capital, infrastructure, social services for the domestic
population and for the economy. A competition state also supplies extranational
partnerships or the opportunities to make such partnerships. The state works to
attract foreign states and firms to engage in long-term, mutually beneficial
relations with domestic counterparts (Tetreault, 1999)style='font-family:Arial'>. Finally, a competition state provides effective
regimes: legal regimes, regulatory regimes and allocative systems, so that the
system works for the domestic population and for outsiders coming in to invest style='mso-bidi-font-size:18.0pt;line-height:200%;font-family:Arial'>(Tetreault,
1999).
The United Arab
Emirates (UAE) boasts a prudently managed and successfully diversified economy
and the country continues to consolidate and build on its achievements of the
past two decades (Siddiqi, 2001). For instance, the test, carried out by Madar
Research Group (2003), showed that Dubai was on par with top European Union
states in the online availability of the basic services offered to businesses
and individuals.
style='font-family:Arial'>Dubai is the world's third largest re-export centre
after Hong Kong and Singapore, accounting for 70 per cent of the UAE's non-oil
trade (Siddiqi, 2001). During 1998-99, its re-export business exceeded the
value of its oil exports. Dubai Duty Free has seldom been out of the headlines
since its launch in 1983 (The Middle East, 1994). Not only did it lead a
revolution in the Middle East by being the first to develop a modern, Western style
duty free shopping, but it is a key part participant in the promotion of Dubai
as a business and tourist destination.
In spite of world recessions, the UAE, Dubai in
particular, continues to be growth markets and there are good opportunities in
Dubai for foreign companies (The Middle East, 1993). The Gulf Emirate of Dubai,
armed with what is probably the most attractive foreign investment incentive
packages in the region, is aggressively promoting itself as a regional
manufacturing and re-export, banking, aviation and even tourism hub (The Middle
East, 1993). This follows similar foreign investment and export drives over the
last few months by Bahrain, Saudi Arabia, Oman, Qatar and Abu Dhabi - all
experiencing the continuing post Gulf war boom.
style='font-family:Arial'>In spite of recession in other parts of the world,
the Gulf Cooperation Council (GCC) states, including the UAE, continue to be
growth markets and in Dubai, in particular, there are good opportunities for
foreign companies as the emirate continues to invest in infrastructure and to
diversity its economy (The Middle East, 1993).
Dubai’s Consumer Culture
Walking
into a Dubai department store, one is presented with a wide array of products
and brands from different countries popular among which is the United States,
the European Community and China. These countries provides different products
at differing prices. In Dubai, a consumer is presented with the dilemma of
choosing products and goods based on price, quality and out of habit.
As
a resident of Dubai, I often do my shopping on big department stores since it
saves me time instead of having to go through several stores to find what I
need. As one enters the supermarket division, one can see tens of different
brands. Out of habit though, the first thing that I pick up is the product that
I have been used to- products made in Dubai. This is no longer out of conscious
decision but rather out of habit. Sometimes though when I have time, I try to
look at the brands and compare it with the one Im using. More often, at this
times, I try the product but since I have been used to my old brands, I still
prefer to use my tried and tested products.
style='font-family:Arial;color:black'>This feelings however is not often shared
by some people preferably the younger populace. This is evident in their
choices of clothing, rubber shoes and other paraphernalia. According to a young
professional, his choice of clothes leans more on the trendy look derived from
countries such as the United States and Europe. This difference is a characterization of the evolving
consumer culture in Dubai as a result of the free-flowing information between
countries.
style='font-family:Arial;color:windowtext'>Dubai's emergence as a major
commercial and industrial location occurred quietly (Weiss, 1995). Considering
the overregulated, import barrier--laden conditions prevalent across the Middle
East and neighboring South Asia, it's easy to understand why people from both
regions flock to Dubai on purchasing expeditions. Its location and free-trade,
low-tax environment have forged a cosmopolitan shopping mecca (Weiss, 1995).
Even for Asians and Europeans, prices on many consumer items--ranging from
jewelry to electronics--are far cheaper than at home. Dubai's modern shopping
malls--along Al Rigga Road or in the Al Dhiyafa section--rival Western
counterparts.
style='font-family:Arial'>While a number of studies have found that consumers,
in general, are favorably biased towards domestic versus imported foreign
products (Baughn and Yaprak, 1993; Peterson and Jolibert, 1995), none has
examined the impact of nationalistic, patriotic and internationalistic tendencies
on such a bias. The origins of the
consumer ethnocentrism construct (Shimp and Sharma, 1987) come from the general
construct of ethnocentrism introduced as a psychosociological concept by Sumner
(1906). Ethnocentrism focuses on a "we group" feeling where the
ingroup is the center and all outgroups are judged in relation to it. The
ingroup that nurtures attachment and loyalty is, in this case, one's country.
Nations "... achieve personal relevance for individuals when they become
sentimentally attached to the homeland (affectively involved), motivated to
help their country (goal-oriented) and gain a sense of identity and self-esteem
through their national identification (ego involved)" (Druckman, 1994, p.
63). The strength of these needs varies from country to country and from
individual to individual (Terhune, 1964).
style='font-family:Arial'>
style='font-family:Arial'>The construct of consumer ethnocentrism was developed
as an economic form of ethnocentrism and encompasses issues such as one's fear
of economically harming his/her beloved country by buying foreign products, the
morality of buying imported products, and a personal prejudice against imports
(Sharma et al., 1995). Shimp and Sharma (1987) developed a multi-item scale to
capture consumer ethnocentric tendencies (the CETSCALE) and showed that consumer
ethnocentrism explains why consumers prefer domestic over imported products
(even when the latter are cheaper and their quality is evidently better).
Herche (1992) showed that consumer ethnocentrism can predict (with varying
precision across product-categories) consumers' preferences to buy or own
domestic as opposed to foreign products. Importantly, he demonstrated that
ethnocentric tendencies are better predictors of import purchase behavior than
demographic and marketing mix variables (Herche, 1994). However, consumer
ethnocentrism's predictive ability of buying intentions varies from country to
country; for example, Good and Huddleston (1995) found it to be important for
Poles' but not for Russians' intentions to buy foreign products.
style='font-family:Arial'>
style='font-family:Arial'>Regarding the antecedents of consumer ethnocentrism,
several studies have found that males, better-educated consumers and those with
higher incomes tend to be less ethnocentric (Sharma et al., 1995). The
rationale provided for the observed relationships is that females, older, and
less educated people are more conservative and more patriotic; moreover, as
one's income increases, the more likely one is to travel and try more products,
and thus, be more open to imported products (Sharma et al., 1995).
style='font-family:Arial'>
COO and Consumer Evaluation
style='font-family:Arial'>There are at least four different ways in which the
country of origin of a product could affect its evaluations (Li and Wyer,
1994): (a) as a product attribute whose implications combine with other
attributes to influence evaluations, (b) as a signal to infer more specific
product characteristics, (c) as a heuristic (to simplify the evaluation task),
and (d) as a standard relative to which the product is compared.
style='font-family:Arial'>Marketers often promote the fact that a product is
made in a country with a reputation for manufacturing high-quality merchandise.
Moreover, experimental studies support the viability of this strategy.
Associating a product with a country that is known for superior workmanship
often increases evaluations of this product (Hong & Wyer, 1990; Johansson,
1989; Tse & Gorn, 1993). Despite this evidence, however, country-of-origin
effects are not clearly understood under many conditions in which products are
evaluated. A number of factors potentially influence both the magnitude and the
direction of the effect that a product's country of origin can have on
evaluations of its quality. These factors must ultimately be specified.
The
cognitive processes that underlie their effects must be identified, and the
conditions in which the processes operate must be circumscribed. Until this is
done, the effect of calling consumers' attention to a product's country of
origin in any given instance will be hard to predict. Hong and Wyer (1990), for
example, found that the reputation of a product's country-of-origin information
influenced perceptions of a product's quality well over the effects of
information about its specific attributes. In some conditions, however,
country-of-origin information also had an indirect effect on product
evaluations through its mediating influence on the way the attribute
information was processed.
To the
extent that a product's country of origin is used as information about its
quality, product evaluations should increase in favorableness as the country's
reputation for manufacturing high-quality merchandise increases (Li and Wyer,
1994). However, this general informational effect could occur for at least
three reasons. First, the country of origin could itself be viewed as a
favorable or unfavorable attribute of the product, which is independent of
other attributes (Hong & Wyer, 1990; Li & Monroe, 1992). Second, it
might be used as a signal to infer more specific product attributes about which
information is unavailable ( Li, Leung, & Wyer, 1993; Li & Monroe, 1992;
Li, Monroe, & Chan, 1994). Third, it could be used as a heuristic basis for
judgment that is substituted for other available judgment-relevant information.
COO as a Comparative Tool
in Consumer Evaluation
There are
two ways in which country of origin might serve as a comparative standard
(Lynch, Chakravarti, & Mitra, 1991). On one hand, it might come into play
after the object's features have already been integrated into a subjective
impression and subjects are asked to report their impression along a response scale.
Thus, if the products made in the country are generally favorable, subjects
might subjectively position the response scale to include a more favorable set
of stimulus values than they otherwise would (Li and Wyer, 1994). Consequently,
any given stimulus would be evaluated less favorably along the scale than it
would if the scale had been positioned to include a more unfavorable set of
values.
Consumer
behavior has been defined as the "acquisition, consumption and disposition
of products, services, time and ideas by decision making units" (Jacoby
1975, 1976).
Much
consumer research relies on surveys, and a considerable amount of work has been
devoted to questionnaire and survey design. Bickart (1993) and Simmons et al
(1993) examined question order effects in surveys, while Menon, et. al.style='mso-spacerun:yes'> (1995) examined the memory processes
underlying consumers' responses to behavioral frequency questions. Rose et al
(1993) suggest that comparative measures (e.g. "Is Brand A superior to
Brand B?") are more sensitive in detecting persuasion than noncomparative
measures. Webster (1996) found that response quality for surveys is highest
when interviewer and interviewee are of the same gender or ethnicity.
Country of Origin Effects and Consumer Behavior
style='font-family:Arial'>For the past three decades, the effect of a product's
country of origin on buyer perceptions and evaluations has been one of the most
widely studied phenomena in the international business, marketing, and consumer
behavior literatures (Jolibert and Peterson, 1995). Indeed, Tan and Farley
[1987] concluded that the potential impact of the country of origin of a
product is the "most researched international aspect of consumer
behavior" (p. 540). Recently an entire book (Papadopoulos and Heslop,
1993) was dedicated to the country-of-origin phenomenon. According to
Papadopoulos and Heslop (1993), the country of origin of a product, which is
typically operationalized or communicated through the phrase "made in
_____," is an extrinsic product cue - an intangible product attribute -
that is distinct from a physical product characteristic or intrinsic attribute.
As such, a country-of-origin cue is similar to price, brand name, or warranty
in that none of these directly bear on product performance.
style='font-family:Arial'>As a result of such rapid changes and development in
the global business strategic environment, product country association is no
longer just a single-country phenomenon. Increasingly more products are
emerging as a result of multifirm and multicountry efforts (Chao, 1993).
Contrary to the traditional country-of-origin research paradigm which typically
assumes that a product can be specifically tied to a country in which it is
made, it is no longer as easy to do so in today's complex global reality.
There is a long stream of research on COO effects. A
large number of studies have reported a consistent pattern of bias toward
showing COO effects on consumer attitudes and/or product evaluations (Bilkey
and Nes, 1982). Many have, however, questioned the validity of these research
findings derived from mostly single-cue models. In fact, some multiple-cue
studies have reported either no significant or only minor country-of-origin
effect (Johansson, Douglas and Nonaka 1985; Ettenson, Gaeth and Wagner 1988)
rendering conclusions regarding COO effects somewhat equivocal. Thus, the
questions of whether country is an important variable impacting consumer
product evaluations and whether the effect, if any, may only be transitory
continue to linger (Schellinck 1986; Johansson 1989).
style='font-family:Arial'>The impact of price information on consumer
perception of quality has been studied rather extensively (Monroe, 1973; Monroe
and Dodds, 1988). Similar to country-of-origin studies, no clear picture has
emerged to indicate unequivocally whether a positive price and quality
relationship exists, particularly in cases where other information cues were
also provided to the consumer.
style='font-family:Arial'>Given that consumers do not possess perfect
information, they are likely to rely on prior experience as well as a variety
of information cues, other than price provided, to judge product quality. In
such a context, for consumers who are more experienced with the product, the
price-quality association is likely to weaken (Wheatley, Walton and Chiu 1977;
Rao and Monroe 1988). It would seem logically consistent that as the consumer
confidence in judging product quality based on other information cues such as
product attributes increases, his/her inclination to rely on price as an
indicator of quality naturally should tend to decrease.
Methodological Issues in Measuring COO
Although numerous dependent variables have been
investigated in COO studies, investigations were limited to two broad
categories quality/reliability perceptions of consumers and purchase
intentions. These two categories capture the majority of response or dependent
variables investigated in COO studies and were deemed representative of
dependent variables commonly investigated in COO studies. While perceptions and
intentions are intuitively related, they are conceptually distinct (Fishbein
and Ajzen,1975) and hence merit separate analysis. Perceptions are more
"primitive" than intentions. As such, perceptions are antecedent to,
and determinants of, intentions (e.g., Belk (1985), although the relationship
is mediated by constructs such as satisfaction (e.g., Cronin and Taylor, 1992).
The choice of these particular categories of variables in the context of COO
studies has been previously justified by Johansson (1989), and the present
investigation's separate analyses of them is analogous to the approach followed
by Roth and Romeo (1992).
Consider the findings of single- versus
multiple-cue studies. Single-cue studies of the influence of country of origin
on product perceptions and purchase intentions have been criticized on the
basis that the significant results that have been obtained likely reflect
methodological artifacts rather than substantive differences (Bilkey and Nes,
1982; Johansson, Douglas and Nonaka, 1985; Ozsomer and Cavusgil, 1991).
Specifically, it has been argued that the effect of a COO cue should be greater
in a single-cue study than in a multiple-cue study, in part because demand
artifacts are potentially greater in the former and in part because the
presence of other cues could influence study participants' reactions in the
latter. Despite the logical appeal of this argument, empirical results produced
to date with multiple-cue studies are conflicting and inconclusive (Han and
Terpstra, 1988; Tse and Gorn, 1993). Even so, while there is no consensus, on
balance the evidence suggests that larger effect sizes should occur for
single-cue studies than for multiple-cue studies in COO research. One objective
of the present investigation was to resolve such conflicting findings.
style='font-family:Arial'>
style='font-family:Arial'>
style='font-family:Arial'>
style='font-family:Arial'>
style='font-family:Arial'>
Chapter 3
METHODS AND PROCEDURES
This part of the proposal shall discuss the research methods available
for the study and what is applicable for it to use. Likewise, the chapter shall
present how the research will be implemented and how to come up with pertinent
findings.
Method of Research to be Used
Research
requires an organized data gathering in order to pinpoint the research
philosophies and theories that will be included in the research, the
methodology of the research and the instruments of data interpretation. In this
study, the Research Process “Onion” will be utilized so that the findings of
the study can be thoroughly established. The inner part of the onion describes
the methodology portion whereas the outer part discusses the strategies that
can be utilized in interpreting the results of the findings.
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>This study shall
utilize the descriptive research method which uses observation and surveys. In
this method, it is possible that the study would be cheap and quick. It could
also suggest unanticipated hypotheses. Nonetheless, it would be very hard to
rule out alternative explanations and especially infer causations. This
descriptive type of research will utilize observations in the study.style='mso-spacerun:yes'> To illustrate the descriptive type of
research, Creswell (1994) will guide the researcher when he stated: Descriptive
method of research is to gather information about the present existing
condition. The purpose of employing this
method is to describe the nature of a situation, as it exists at the time of
the study and to explore the cause/s of particular phenomena. The researcher
opted to use this kind of research considering the desire of the researcher to
obtain first hand data from the respondents so as to formulate rational and
sound conclusions and recommendations for the study.
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>The research
described in this document is partly based on lang=EN-GB style='mso-bidi-font-size:16.0pt;line-height:200%;font-family:Arial;
mso-ansi-language:EN-GB'>quantitativestyle='font-family:Arial;mso-ansi-language:EN-GB'> research methods. This
permits a flexible and iterative approach. During data gathering the choice and
design of methods are constantly modified, based on ongoing analysis. This
allows investigation of important new issues and questions as they arise, and
allows the investigators to drop unproductive areas of research from the
original research plan.
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>This study also
employs qualitative research method,
since this research intends to find and build theories that would explain the
relationship of one variable with another variable through qualitative elements
in research. These qualitative elements does not have standard measures, rather
they are behavior, attitudes, opinions, and beliefs.
style='font-family:Arial'>Furthermore, as we define the qualitative research it
is multimethod in focus, involving an interpretative, naturalistic approach to
its subject matter. This means that qualitative researchers study things in
their natural settings, attempting to make sense of, or interpret phenomena in
terms of the meanings people bring to them. Accordingly, qualitative
researchers deploy a wide range of interconnected methods, hoping always to get
a better fix on the subject matter at hand.
style='font-family:Arial'>
Evaluation of Research Objectives
This study shall use the CETSCALE in accomplishing
the following objectives:
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>1.
To determine the factors that contributes to the
formation of country of origin images among the consuming public in Dubai
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>2.
To determine the level of familiarity of Dubai
residents in the origin of products sold in the city
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>3.
To analyze the significance of country of origin
image in shaping attitudes and behavior toward specific products and brands and
in affecting choice behavior, both in absolute terms and relative to other
marketing stimuli
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>4.
To evaluate the relationship of product
information and consumer behavior
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>5.
to evaluate the relationship between the
quantities of information provided by the products in the buying behavior of
the consuming public in the city of Dubai
style='mso-fareast-font-family:Arial;mso-bidi-font-family:Arial'>style='mso-list:Ignore'>6.
to evaluate the relationship between a product’s
country of origin and the buying behavior of the consuming public in Dubai?
style='font-family:Arial'>
Research Design and Instrument
style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>An
underlying theme of this study is that Dubai consumers’ preferences are simple
expressions of a more pervasive and generalised concept of consumer
ethnocentrism. Shimp and Sharma (1987) coined the term consumer ethnocentrism
to represent the belief held by American consumers (for
example) about the appropriateness, indeed morality,
of purchasing foreign products (1987: 280).
style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>Thus, the
construct of ethnocentrism relies on the presumption that the consumers
patriotic emotions have significant effects on attitudes and purchase
intentions and ultimate behaviour. To operationalise the concept of consumer
ethnocentrism, Shimp and Sharma (1987) developed a 17-item scale to
style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>measure
the construct and named this the Consumer Ethnocentric Tendency Scale
(CETSCALE).
Against this background, the objectives of the
current study are, broadly to examine the relationships between consumer
behavior as measured by the Consumer Ethnocentrism Scale by Shimp and Sharma
(1987) and the home country bias, perceptions of quality and expressed choice
for products assembled and designed domestically or in foreign countries. The
scale used for
style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>measuring
consumer ethnocentrism is the original CETSCALE as developed by Shimp and
Sharma (1987). The CETSCALE uses 17 items to measure the ethnocentric
tendencies of the Dubai residents using a 7-point bi-polar scale.
The degree of consumer ethnocentrism among Dubai
consumers can be easily interpreted from the total CETSCALE score. Total score
on the 17 point CETSCALE might vary due to the use of a 7-point Likert scale.
The mean scale value is the predictor of the intensity ofstyle='mso-spacerun:yes'> ethnocentrism (Shimp and Sharma 1987). A
higher mean scale value indicates higher consumer ethnocentrism.
The Data Gathering Method
The study shall use questionnaires and interviews to
gather pertinent data. Moreover, the researcher shall also use previous studies
and compare it to its existing data in order to provide conclusions and
competent recommendations.
Database of the study
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>The primary source
of data will come from a questionnaire and interviews conducted by the
researcher. The primary data frequently gives the detailed definitions of terms
and statistical units used in the survey. These are usually broken down into
finer classifications.
style='font-family:Arial'>The secondary sources of data will come from
published articles from social science journals, theses and related studies on
market behavior and economics. Acquiring secondary data are more convenient to
use because they are already condensed and organized. Moreover, analysis and
interpretation are done more easily.
style='font-family:Arial'>For this research design, the researcher will gather
data, collate published studies from different local and foreign universities
and articles from social science journals; and make a content analysis of the
collected documentary and verbal material.
Afterwards, the researcher will summarize all the information, make a
conclusion based on the null hypotheses posited and provide insightful
recommendations on the dealing with the buying behavior of the consumers in
relation to the influence of the concept of country of origin.
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>The general
population for this study will be composed of randomly selected product consumers
in Dubai, numbering ninety (90).
Sampling
Technique
style='font-family:Arial;color:windowtext'>First, a self-administered
questionnaire containing 18 to 20 questions and shall be filled out by the
respondents. Another set of questionnaires will be prepared for the interview
of experts in consumer behavior and economics. Ideally, the respondents will
grade each statement in the survey-questionnaire using a Likert scale, with a
five-response scale wherein respondents will be given five response choices.
The equivalent weights for the answers will
be:
style='font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:200%;font-family:
Arial'>Range Interpretation
style='mso-spacerun:yes'> 4.50
– 5.00 Strongly
Agree
3.50 –
4.00 Agree
2.50 –
3.49 Uncertain
1.50 –
2.49 Disagreestyle='mso-tab-count:1'>
0.00 – 1.49style='mso-tab-count:5'> Strongly
Disagree
style='font-family:Arial'>
The researcher opted to use the questionnaire as a
tool since it is easy to construct having the rules and principles of
construction are easy to follow. Moreover, copies of the questionnaire could
reach a considerable number of respondents either by mail or by personal
distribution. Generally, responses to a questionnaire are objectified and
standardized and these make tabulation easy. But more importantly, the
respondents’ replies are of their own free will because there is no interviewer
to influence them. This is one way to avoid biases, particularly the
interviewers’ bias.
Validity of the Data
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>For validation
purposes, the researcher will initially submit a sample of the set of survey
questionnaires and after approval; the survey will be conducted to five
respondents. After the questions were
answered, the researcher will ask the respondents for any suggestions or any
necessary corrections to ensure further improvement and validity of the
instrument. The researcher will again
examine the content of the interview questions to find out the reliability of
the instrument. The researchers will
exclude irrelevant questions and will change words that would be deemed
difficult by the respondents, to much simpler terms.
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>
style='font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:200%;font-family:
Arial;mso-ansi-language:EN-GB'>Administration of the Instrument
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>The researcher
will exclude the five respondents who will be initially used for the validation
of the instrument. The researcher will
also tally, score and tabulate all the responses in the provided interview
questions. Moreover, the interview shall be using a structured interview. It
shall consist of a list of specific questions and the interviewer does not
deviate from the list or inject any extra remarks into the interview process.
The interviewer may encourage the interviewee to clarify vague statements or to
further elaborate on brief comments. Otherwise, the interviewer attempts to be
objective and tries not to influence the interviewer's statements. The
interviewer does not share his/her own beliefs and opinions. The structured
interview is mostly a "question and answer" session.
Statistical
Treatment of the Data
style='font-family:Arial;mso-ansi-language:EN-GB'>When all the survey
questionnaire will have been collected, the researcher will use statistics to
analyse all the data.
The
statistical formulae to be used in the survey questionnaire will be the
following:
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:200%;
font-family:Arial;mso-fareast-font-family:Arial;mso-ansi-language:EN-GB'>style='mso-list:Ignore'>1.
Percentage – to determine the magnitude of the responses to the
questionnaire.
style='mso-tab-count:1'> n
% = --------
x 100 ; n – number of responses
style='mso-tab-count:1'> N N
– total number of respondents
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:200%;
font-family:Arial;mso-fareast-font-family:Arial;mso-ansi-language:EN-GB'>style='mso-list:Ignore'>2.
4Weighted Mean
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:200%;
font-family:Arial;mso-ansi-language:EN-GB'>
style='mso-tab-count:1'> f1x1 + f2x2
+ f3x3 + f4x4
+ f5x5
x =
---------------------------------------------
;
style='mso-tab-count:2'> xt
where: style='mso-tab-count:1'> f – weight given to each response
style='mso-tab-count:2'> x – number of responses
lang=EN-GB style='font-family:Arial;mso-ansi-language:EN-GB'>style='mso-tab-count:1'> xt – total number of
responses
style='font-family:Arial;mso-ansi-language:EN-GB'>The researcher was be
assisted by the SPSS in coming up with the statistical analysis for this study.style='font-family:Arial'>
CHAPTER IV
A. PRESENTATION,
INTERPRETATION AND ANALYSIS OF DATA
style='font-family:Arial'>Country of origin provides an impetus for consumer
behavior particularly in Dubai where consumers are classified as nationalistic
in relation to their consumption of products made domestically. Moreover,
country image plays a significant role in consumers' perceptions of products.
Thus, understanding the dimensions of country image and how it can be
operationalized is important for managers whose products and those of their
competitors are manufactured around the world.
Dubai, being one of cities flocked by international
goods, increasingly finds itself with a variety of products with several
brands. This exposure led to the openness of information regarding the quality
and price of foreign products. For some, it has recurring effects on the
domestic market.
This study
sought to investigate the effect of the concept of “country of origin” (COO) in
the market of Dubai. This is the manner unto which the study accounts the
factors and the perception on the criteria themselves. This chapter discussed
the findings based on the collated information on the survey conducted by the
researcher. The general
population for this study was composed of randomly selected product consumers
in Dubai, numbering to ninety (90). This chapter was divided into
several parts; the first part provided the general description of the
respondents. Particularly, it discussed the respondents’ age, gender, marital
status, educational attainment and monthly income. Next, the second part
illustrated the perception of the respondents pertaining tostyle='mso-spacerun:yes'> the Consumer Ethnocentrism Scale (CET). The
third part was a description on the perception of the respondents about the
problems and solutions encountered in consuming foreign products. Finally, the
final part of the study presented the guide questions discussing the insight of
the respondents regarding to the effects of country of origin on the
consumer preferences and behavior of Dubai residents.
A demographic
profile of the respondents was detailed with the presumption that the
attributes of the respondents influence their behavior and answers on the
survey questions. Specifically the study sought to answer the following
questions:
style='font-family:Arial;mso-fareast-font-family:Arial'>7.
What contributed
to the formation of CO images among the consuming public in Dubai?
style='font-family:Arial'>
style='font-family:Arial;mso-fareast-font-family:Arial'>8.
What was the
level of familiarity does the consuming public of Dubai have particularly in
origin of the products sold in the city?
style='font-family:Arial'>
style='font-family:Arial;mso-fareast-font-family:Arial'>9.
How salient was
CO image in shaping attitudes and behavior toward specific products and brands
and in affecting choice behavior, both in absolute terms and relative to other
marketing stimuli?
style='font-family:Arial;mso-fareast-font-family:Arial'>10.
How much
information was provided by the products in order for them to weigh heavier on
the judgment of the consuming public?
style='font-family:Arial'>
style='font-family:Arial;mso-fareast-font-family:Arial'>11.
Was there a
significant relationship between the quantities of information provided by the
products in the buying behavior of the consuming public in the city of Dubai?
style='font-family:Arial'>
style='font-family:Arial;mso-fareast-font-family:Arial'>12.
Was there a
significant relationship between a product’s country of origin and the buying
behavior of the consuming public in Dubai?
style='font-family:Arial'>
Apparently, the researcher evaluated the
implications of country of origin principles of buying behavior among the
consumers in the country of Dubai. This study sought to prove the following
null hypothesis:
“The concept of country
of origin has no significant effect on the consumer behavior in the Dubai
Market.”
Part I. Profile of Respondents
This section presents the general profile of the
respondents in terms of age, gender, educational attainment, civil status and
monthly income. The first to be taken into consideration was the age of the
respondents followed by gender, marital status, educational attainment and
income. The responses are summarized in the figures below.
Exhibit 1. Age of the Respondents
![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image002.gif"
v:shapes="_x0000_i1025">
Exhibit
1 shows the age range of the respondents. The result shows that fifty eight
percent (58%) of the respondents were 26-30 years old, showing that most of
them can be considered as young adult, sixteen percent (16%) of the respondents
were between 31-35 years old while fourteen percent (14%) of the respondents
were between 36-40 years old. Consequently, very few can be considered old,
this shown by the figure that only 6% of the respondents are in the 40 and
above status. Subsequently, there was no respondent on the ages between 15-20
years old. The apparent diversity of the maturity of the respondents reflects
several implications in the study’s findings. In relation of the age bracket of
the respondents, the researcher could presume that in the said percentage, a
considerable number could be among the young adult members of the population.
Exhibit 2. Gender of the
Respondents
![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image004.gif"
v:shapes="_x0000_i1026">
Exhibit 2. The
number of the male respondents (51%) is almost equal to the female (49%). Based
on the collated questionnaires, over a half of the population was composed of
male respondents while 49% were females. This shows a virtually equal footing
in terms of representation of gender regarding the perception of the
respondents to the effect of country of origin in product consumption. The male
respondents outnumber the female respondents by approximately 2%; this data
provides a glimpse of the aggregate size of women as a consumer.
Exhibit 3. Civil Status
![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image006.gif"
v:shapes="_x0000_i1027">
Exhibit 3. The
above illustration shows the civil status of the respondents. 47% of the total
respondents, the findings implies that majority of the respondents are single.
Moreover, a significant number, 42% comprise those who are already married.
Furthermore, there is a little percentage of respondents who are separated or
widow. Most of the surveyed individuals are either married or single. This is
due to the large number of young adult in the sample as compared to those who
are older.
Exhibit
4. Educational Attainment of Respondents
style='font-family:Arial'>![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image008.gif"
v:shapes="_x0000_i1028">
style='mso-bidi-font-family:Arial;font-weight:normal'>
style='mso-bidi-font-family:Arial;font-weight:normal'>Exhibit 4. Likewise, the
respondents were asked for their educational attainment; the report shows that
53% of them are college graduates. The survey indicates that most of the
respondents are college graduates. The diversity of the population is further
asserted when the respondents were asked regarding their professional history.
This data illustrates that the respondents are mature particularly in terms of
experience. Moreover, due to the higher educational attainment of the
respondents. the quality of response also signify that the subjects of the
study are. On the other hand, the apparent youthfulness of the respondents,
provided by their age could not be considered as a deterrence to their
responses considering that the researcher has made sure that the respondents
have been consuming branded products from foreign countries aside from their
local consumption.
Exhibit
5. Monthly Income
style='font-family:Arial'>![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image010.gif"
v:shapes="_x0000_i1029">
Exhibit 5.
The above figure illustrated the monthly income of the surveyed
individuals. The illustration shows the
minimal gap between the ranges of their income. From the collated data, there
were 22.22% of the respondents whose monthly income was 10,001 and above
dirham. Majority these respondents were composed of managers, businessmen,
young professionals and administrators. Followed by 27.78% whose ranges of
income were in between 2,1001 to 5,000 dirham. Then, 28.89% of the total
respondents have an income between 5,000 to 10,000 dirham. And lastly, there
were only 21.1% of the respondents with income
of 2,000 or below.
Part 2. Perception of
the Respondents - Consumer Ethnocentrism Scale (CET)
style='width:465.45pt;border-collapse:collapse;border:none;mso-border-bottom-alt:
solid black 1.5pt;mso-yfti-tbllook:191;mso-padding-alt:0in 0in 0in 0in;
mso-border-insideh:cell-none;mso-border-insidev:cell-none'>
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>5 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>2 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>1 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Weighted
mean
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Interpretation style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>1. People in Dubai should always buy Dubai products
instead of imports
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>11 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>25 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>12 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>32 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>10 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>2.94 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;mso-fareast-font-family:
"Times New Roman";color:windowtext'>Neutral
|
style='font-family:Arial'>2. Only those products that are unavailable in
Dubai should be imported.
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>45 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>25 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>12 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.14 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>3. Buy Dubai made products. Keep Dubai working style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>46 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>26 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>12 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>5 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>1 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.23 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>4. Dubai products first, last, and foremost style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>8 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>23 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>45 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>12 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>2 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.26 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Neutral style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>5. Purchasing foreign-made products is un-Dubai style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>15
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>13 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>56 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.38 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Neutral style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>6. It is not right to purchase foreign products style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>40 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>29 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>16 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>5 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>0 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.16 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>7. A real Dubai citizen should always buy Dubai
made products
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>15
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>13 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>56 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.38 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Neutral style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>8. We should purchase products made in Dubai
instead of letting other countries get rich off us. style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>34 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>29 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>16 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>9 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>2 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.93 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>9. It is always best to purchase Dubai products. style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>39 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>25 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>16 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>9 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>1 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.02 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>10. There
should be very little trading or purchasing of goods from other countries
unless out of necessity.
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>32 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>36 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>13 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>7 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>2 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.99 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>11. Dubai
should not buy foreign products because this hurts Dubai businesses and
causes unemployment.
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>15
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>13 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>56 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.38 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Neutral style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>12. Curbs
should be put on all imports
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>36 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>32 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>12 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>9 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>1 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.03 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>13. It may
cost me in the long run, but I prefer to support Dubai products. style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>39 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>31 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>13 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4.10 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>14.
Foreigners should not be allowed to put their products in markets. style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>28 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>32 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>19 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>6 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>5 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.80 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>15. Foreign
products should be taxed heavily to reduce their entry into Dubai style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>33 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>30 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>18 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>5 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.92 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>16. We
should buy from foreign countries only those products that we cannot obtain
in our own country.
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>23 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>34 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>17 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>10 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>6 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.64 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial'>17. Dubai consumers who purchase products made in
other countries put their fellow Dubais out of work style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>25 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>32 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>15 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>14 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>4 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>3.67 style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial'>Agree style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial;color:windowtext'>The above table presented the
perceptions of the respondents pertaining to the impact of country of origin in
consuming different products. The table above shows that the dominant response
was Agree, weighted average in every statement. According to some respondents,
the people of Dubai should buy and consider their own products in order to
contribute to the progress of their country. The surveyed individuals also
agreed that only those products that are unavailable in Dubai should be
imported which was illustrated by weighted mean of 4.14. Majority of the
respondents agreed on the statements and signifies the high impact of
ethnocentrism.
lang=EN style='font-family:Arial;color:windowtext;mso-ansi-language:EN;
font-weight:normal'>Ethnocentrismstyle='font-family:Arial;color:windowtext;mso-ansi-language:EN'>, coined by
William Graham Sumner, is the viewpoint that one's ethnic group is the center
of everything, against which all other groups are judged. Within culture,
language, behaviour, customs, and religion can be a basis for ethnic
distinctions, and sub-divisions. Meaning to say, majority of the respondents
believe that Dubai product were better compared to other foreign products.
However the surveyed individuals with
3.64 weigthed mean also accepted the fact that their country cannot stand alone
without the help of other foreign products since they need to style='font-family:Arial;color:windowtext'>buy from foreign countries only
those products that they cannot obtain in their own country .
style='font-family:Arial;color:windowtext'>The government of Dubai according to
the most of the respondents should employ heavy taxes to other foreign products
that will reduce the entry into Dubai. Moreover, the degree of ethnocentrism
for most respondents was high since they are looking for great improvement and
progress of Dubai. The respondents agreed that Dubai products first, last, and
foremost. For them purchasing foreign-made products is un-Dubai. The
weighted mean concerning to a real Dubai citizen who bought Dubai made products
was interpreted as neutral.
style='font-family:Arial;color:windowtext'>Furthermore, this report shows that
Dubai citizens are really concern to the development of their country but the
impact of nature with full of foreign products was definitely a great factor to
consider because even though they don’t want to buy this product they are
forced to purchase it since they need it and it is only very limited. They
should purchase products made in Dubai instead of letting other countries get
rich off Dubai. There should be very little trading or purchasing of goods from
other countries unless out of necessity. Dubai should not buy foreign products
because this hurts Dubai businesses and causes unemployment Curbs should be put
on all imports. Foreigners should not be allowed to put their products in
markets. And lastly, according to them Dubai consumers who purchase products
made in other countries put their fellow Dubais out of work.lang=EN style='font-family:Arial;color:windowtext;mso-ansi-language:EN'>
lang=EN style='font-family:Arial;color:windowtext;mso-ansi-language:EN'>In the
modern world, however, the crossing of the lines between cultures, that at one
time happened only occasionally, has become an everyday occurrence.
Technological advances in communication have progressively overcome previous
obstacles to communication - physical obstacles that once helped to keep ethnic
distinctions distinct. Ethnic lines still exist, and co-exist, and cultures of
the world often find that their central concern, that of maintaining an
identity despite rapid transculturation, was still possible.
lang=EN style='font-family:Arial;mso-ansi-language:EN'>
lang=EN style='font-family:Arial;mso-ansi-language:EN'>The reasons for
maintaining an ethnicity are often personal, and relate to the cohesion of familiar
personal and social elements - in other words, attachment or accustoment. We
all are born into a human culture, and it is the culture that shapes our
self-awareness and understanding of other individuals. It also reflects,
depending on the cultural teaching, customs or patterns of behaviour in
relating to other cultures. This behaviour can range from universal acceptance
or feelings of inferiority compared with other cultures, to racism, which many
consider an aspect of xenophobia. Marketers
often promote the fact that a product is made in a country with a reputation
for manufacturing high-quality merchandise. Moreover, experimental studies
support the viability of this strategy. Associating a product with a country
that is known for superior workmanship often increases evaluations of this
product. Despite this evidence, however, country-of-origin effects are not
clearly understood under many conditions in which products are evaluated. A
number of factors potentially influence both the magnitude and the direction of
the effect that a product's country of origin can have on evaluations of its
quality. These factors must ultimately be specified.
style='font-family:Arial'>
The
cognitive processes that underlie their effects must be identified, and the
conditions in which the processes operate must be circumscribed. Until this is
done, the effect of calling consumers' attention to a product's country of
origin in any given instance will be hard to predict. For example, found that
the reputation of a product's country-of-origin information influenced
perceptions of a product's quality well over the effects of information about
its specific attributes. In some conditions, however, country-of-origin
information also had an indirect effect on product evaluations through its
mediating influence on the way the attribute information was processed.
style='font-family:Arial;color:windowtext'>To the extent that a product's
country of origin is used as information about its quality, product evaluations
should increase in favorableness as the country's reputation for manufacturing
high-quality merchandise increases. However, this general informational effect
could occur for at least three reasons. First, the country of origin could
itself be viewed as a favorable or unfavorable attribute of the product, which
is independent of other attributes. Second, it might be used as a signal to
infer more specific product attributes about which information is unavailable.
Third, it could be used as a heuristic basis for judgment that is substituted
for other available judgment-relevant information.
style='font-family:Arial;color:windowtext'>Although numerous dependent
variables have been investigated in Country of Origin Studies, investigations
were limited to two broad categories quality/reliability perceptions of
consumers and purchase intentions. These two categories capture the majority of
response or dependent variables investigated in COO studies and were deemed
representative of dependent variables commonly investigated in COO studies.
While perceptions and intentions are intuitively related, they are conceptually
distinct and hence merit separate analysis. Perceptions are more
"primitive" than intentions. As such, perceptions are antecedent to,
and determinants of, intentions although
the relationship is mediated by constructs such as satisfaction. The choice of
these particular categories of variables in the context of COO studies has been
previously justified by Johansson (1989), and the present investigation's
separate analyses of them is analogous to the approach followed by Roth and
Romeo (1992).
Cross
Tabulation Results
style='font-family:Arial;color:black'>Researchers have previously examined the
effect of demographic variables such as age, gender, education, and income
level on consumer ethnocentrism (Sharma, Shimp, and Shin 1995; Wall, Liefield,
and Heslop 1989). Older people are more likely to exhibit higher levels of
ethnocentrism, as they tend to be more conservative (Bannister and Saunders
1978; Han 1988). Studies in the United States (Howard 1989) and Canada (Wall
and Heslop 1986) have shown that women rate domestic products more favorably
than men. More educated people are less likely to have ethnic prejudices
(Watson and Johnson 1972), tend to be less conservative (Ray 1983), and are
more likely to have positive attitudes toward imported products (Wall and
Heslop 1986; Wang 1978). People who travel abroad tend to exhibit lower levels
of ethnocentrism (Wall, Liefield, and Heslop 1989) as foreign travel is likely
to result in more cultural exchanges and broadening of minds. Also, high-income
consumers are generally found to react more favorably toward foreign products
(Wall and Heslop 1986; Wang 1978).
Consumer Ethnocentrism
According to Age
The extent of ethnocentrism among Dubai residents
was tested according to their age group. For the six age groups, the absolute
value of ethnocentrism was quite high, meaning that Dubai people tended to be
particularly ethnocentric. The difference between the six sample groups,
however, was statistically significant. Ethnocentrism was greatest on the age
group 30 years old and above, indicating the positive attitudes toward Dubai
and Dubai-made products. For those aged
30 years old and below, the findings indicated that their level of
ethnocentrism was not as high.
style='font-family:Arial'>This finding differed from that found in the previous
study, where no difference was observed (Yu and Albaum, 1997).style='mso-spacerun:yes'> One possible explanation was that the people
of Dubai were becoming more local, and this was one way to express themselves
as being natives of Dubai. Another possibility is that the Asian economic
crisis has made people from Dubai more aware of what they have to offer both to
themselves and to others.
style='font-family:Arial;color:black'>There was a significant correlation
between ethnocentrism and age. A possible reason may be the fact that the
ranges of respondents' ages determined their openness on international goods.
Consumer Ethnocentrism
According to Gender and Educational Attainment
For the most part, the objectives underlying the
sampling plan were achieved. All the
people surveyed met the qualifying age criteria, and the number interviewed at
each of the data collection points was approximately equal.style='mso-spacerun:yes'> It is not always possible to obtain a quota
sample that matches exactly the predetermined quotas; this study is no
exception. The design called for equal
proportions of male and female respondents.
However, there were slightly more females, but gender differences were
not statistically significant.
style='font-family:Arial;color:black'>Ethnocentrism was found to vary with
gender and educational level in Dubai. Perhaps the relatively high degree of
ethnocentrism found in Dubai was a popular, contemporary feeling among
consumers there that eclipsed the effect of demographic differences. Dubai
youths who had traveled abroad (and therefore, were expected to have a greater
exposure to and appreciation for foreign countries and cultures) seemed to rise
above the popular feelings somewhat, and exhibited a significantly lower level
of ethnocentrism that people who had not.
Consumer Ethnocentrism
According to Civil Status and Monthly Income
Four
categories constituted civil status: Single, Married, Separated and Widow. When
grouped according to civil status, the findings showed no significant
correlation between the four categories. This shows that ethnocentrism and
civil status does not affect each other.
style='font-family:Arial;color:black'>On the contrary, the findings showed that
there was a significant difference in ethnocentrism and monthly income. The
result showed that the higher the income of the respondents, the lower their
ethnocentrism. Conversely, those who have a lower income tends to be more
ethnocentric.
Statistical Analysis
For greater
clarity the researcher also employed guide questions. These guide questions
reveals the quality of economy of Dubai.
Apparently, the impact of country of origin of products in Dubai was
also discussed.
According to most respondents, the economic situation in
Dubai right now in terms of goods, products and services coming from other
countries is in good condition. However there was still a great dominance of
foreign products that was a great competitor of local products. They agreed
that local products in Dubai are in high standards but the only problem was the
competition and volume of foreign products in the market of Dubai.
According to
them several countries dominates when it comes to terms of volume and in terms
of sales. For example: Russia, Argentina, USA, Japan, China and Hong Kong.
There are some instances that regions in UAE contribute as foreign products.
The surveyed individuals believed that compared to foreign goods, Dubai-made
products doing well. They also alleged that degradation and total face-out were
the possible implications of Dubai consumers buying more foreign goods than
locally-made products. For some cases there are some observed changes in the
consumption pattern of Dubai residents like the practicality of the consumer
and effect of it to their health and economy because the degree of purchasing
of these products becomes minimal. The respondents also accepted that country
of origin affects the consumption behavior of Dubai residents. The implication
of Dubai residents’ consumption behavior to Dubai’s economy will might be a
result to rise and fall of the country in global market.
T-test Statistics
style='font-family:Arial;color:windowtext'>The t distribution is used instead
of the normal distribution whenever the standard deviation is estimated. The t
distribution has relatively more scores in its tails than does the normal
distribution. It is therefore leptokurtic. The shape of the t distribution
depends on the degrees of freedom (df) that went into the estimate of the
standard deviation. With very few degrees of freedom, the t distribution is
very leptokurtic. With 100 or more degrees of freedom, the t distribution is
almost indistinguishable from the normal distribution. As the degrees of
freedom increases, the t distribution approaches the normal distribution. The
larger the kurtosis (the larger the tails), the farther out you have to go from
the mean in order to contain a given percentage of the scores. For example, to
contain 95% of the t distribution with 4 df, the interval must extend 2.78
estimated standard deviations from the mean in both directions. Compare this to
the normal distribution for which the interval need only extend 1.96 standard
deviations in ![]()
src="file:///C:\DOCUME~1\COMP02~1.COM\LOCALS~1\Temp\msohtml1\01\clip_image011.gif"
align=left v:shapes="_x0000_s1026">both directions.
style='font-family:Arial;color:windowtext'>The figure on the right shows t
distributions with 1, 4, and 15 degrees of freedom. Areas greater than +2 and
less than -2 are shaded. This figure shows that the t distribution with 1 df
has the least area in the middle of the distribution and the greatest area in
the tails. Thus, it is the most leptokurtic.
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;color:windowtext'>The
t-test is a test of the same null hypothesis as above. However, this time we
have a new index of departure and, hence, a new formula to learn. In small
samples (N < 30), sample standard deviations are biased estimates of their
corresponding population standard deviations. In other words, s does not estimate
s perfectly -- it is usually to small. Thus, we simply adjust the standard
error using something called degrees of freedom (in this case, df = N - 1).
Substituting these variations into the traditional z formula, we obtain the t
test formula:
![]()
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Using the data presented in part 2, the researcher tried to
determine if the concept of country of
origin has no significant effect on the consumer behavior in the Dubai Marketlang=EN-GB style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
color:windowtext;mso-ansi-language:EN-GB'> with t-test statistic.
style='margin-left:-.25pt;border-collapse:collapse;mso-table-layout-alt:fixed;
mso-table-overlap:never;mso-table-lspace:9.0pt;margin-left:6.75pt;mso-table-rspace:
9.0pt;margin-right:6.75pt;mso-table-anchor-vertical:paragraph;mso-table-anchor-horizontal:
page;mso-table-left:294.0pt;mso-table-top:26.4pt;mso-padding-alt:0in 0in 0in 0in'>
style='color:windowtext'>Sample Data
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>Sample Size
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>17
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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Mean style='mso-fareast-font-family:"Arial Unicode MS";color:windowtext'>
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>3.763
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>Standard Deviation style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>0.377
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>SE Mean
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>0.0913
|
|
|
|
|
|
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;color:windowtext;
mso-ansi-language:EN-GB'> T-test analysislang=EN-GB style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
color:windowtext;mso-ansi-language:EN-GB'>
width=244 style='width:183.35pt;border-collapse:collapse;mso-table-lspace:
9.0pt;margin-left:6.75pt;mso-table-rspace:9.0pt;margin-right:6.75pt;
mso-table-anchor-vertical:paragraph;mso-table-anchor-horizontal:page;
mso-table-left:294.0pt;mso-table-top:71.6pt;mso-padding-alt:0in 0in 0in 0in'>
style='font-family:Arial'>Confidence Intervals for m style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>Type (2,U,L)
|
style='font-family:Arial'>2
|
style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial'>Level
|
style='font-family:Arial'>0.95
|
style='font-family:Arial'>ME
|
style='font-family:Arial'>Lower
|
style='font-family:Arial'>Upper
|
style='font-family:Arial'>0.194
|
style='font-family:Arial'>3.57
|
style='font-family:Arial'>3.96
|
width=228 style='width:170.75pt;margin-left:-.25pt;border-collapse:collapse;
mso-table-lspace:9.0pt;margin-left:6.75pt;mso-table-rspace:9.0pt;margin-right:
6.75pt;mso-table-anchor-vertical:paragraph;mso-table-anchor-horizontal:margin;
mso-table-left:left;mso-table-top:6.4pt;mso-padding-alt:0in 0in 0in 0in'>
Hypothesis Tests style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='width:86.0pt;mso-cellspacing:0in;mso-padding-alt:0in 0in 0in 0in'>
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H0: m
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= style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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100 style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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H1: m
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<
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100 style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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style='font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
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T style='font-size:16.0pt;mso-bidi-font-size:10.0pt;line-height:200%;
font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
-1053.8 style='font-size:16.0pt;mso-bidi-font-size:10.0pt;line-height:200%;
font-family:Arial;mso-fareast-font-family:"Arial Unicode MS"'>
|
style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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DF
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16
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p-value style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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= style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
mso-fareast-font-family:"Arial Unicode MS"'>
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1.8E-40
|
lang=EN-GB style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
color:windowtext;mso-ansi-language:EN-GB'>
style='font-family:Arial;color:windowtext'>
style='font-family:Arial;color:windowtext'>
style='font-family:Arial;color:windowtext'>
style='font-family:Arial;color:windowtext'>
style='font-family:Arial;color:windowtext'>
style='font-family:Arial;color:windowtext'>The above tables show the complete
analysis of the data presented in part 2.
In t-test analysis, the illustrations of tables are presented into
different sections. As the analysis is concern, we can see the hypothesis test
of data. This shows that the researcher assumed that the responses of the
respondents have a sample mean score of 100 since it is his null hypothesis.
Then, the researcher will reject the null hypothesis if the computed t-value is
less than 100.
style='font-family:Arial;color:windowtext'>Based on the computation and by
using the formula presented above, the calculated t-value is –1053.8 i.e. less
than 100. Therefore, there is a reason to accept the alternative hypothesis and
reject the null hypothesis. Meaning to say, the concept of country of origin has a significant effect on the consumer behavior
in the Dubai Market.
It is also safer to state that country of origin has an effect to the
respondents.
lang=EN-GB style='mso-bidi-font-size:10.0pt;line-height:200%;font-family:Arial;
color:windowtext;mso-ansi-language:EN-GB'>Analysis of Findings
style='font-family:Arial'>In a global marketplace, the competitive position of
firms is determined by many factors. One critical consideration that influences
this position is country of origin and its effects on consumer behavior. In
addition, there has been a proliferation of foreign brands that are
manufactured or assembled and marketed in Dubai by local and foreign-based
firms. Customers in Dubai can choose from a set of brands that includes
foreign-manufactured or licensed products covering every conceivable product
category.
style='font-family:Arial'>After reviewing a large number of studies that have
investigated the country-of-origin effect in various different settings, this
study highlighted several gaps within our knowledge of this issue. The role of
national identification in home country bias in Dubai has not yet been examined
in the marketing literature. Although there is a positive relationship between
national identification and consumer ethnocentrism, the study shows that these
constructs have independent positive effects on consumers’ willingness to buy
domestic products in different product categories. The study offers limited
support for negative effects of national identification and consumer
ethnocentrism on willingness to buy foreign products.
style='font-family:Arial'>What aspect of a country of origin makes the country
an important influence on consumer behavior? One suggestion is that country of
origin represents one of many so-called image variables. Image variables are
variables that are distinct from the actual product itself, but they are
strongly associated with or identified with the product and, as a consequence,
may be relied on when evaluating various aspects of the product. Often, these
variables convey some information about the image one can project or attain by
using or associating with a particular product. In addition to country of origin,
other image variables include brand name, product price, and endorsements by
well-known celebrities.
style='font-family:Arial'>
style='font-family:Arial'>To the extent that country of origin conveys
something about the image of a product and/or the image one can convey by
associating with or using a particular product, there is reason to suspect that
some individuals' perceptions of product quality may be particularly likely to
be influenced by a product's country of origin. Research on various aspects of
consumer behavior suggested that the individual difference variable of
self-monitoring may aid in differentiating those individuals who may be
especially likely to be influenced by the image aspects of products from those
who may be less likely to be influenced by such variables.
For instance, demographic shifts may act as a
catalyst for social and cultural changes in both the private and commercial
spheres. Also, product knowledge has been recognized as an important factor in
the research on consumer decision making. It has also been acknowledged that
there are different types of knowledge.
style='font-family:Arial'>Brands originating from a particular country seem to
create intangible assets or liabilities that are shared by those brands
originating from the same country. The similar image of brands from the same
country has been noted to be particularly important when products cannot be
easily evaluated by consumers, as in the case of automobiles and consumer
electronics, where consumers seek external cues for drawing inferences.
Differences in terms of country image can be attributed to the unique
characteristics of their home countries in terms of demand conditions, factor
conditions, rivalry, and related and supporting industries. Country-specific
endowments create the environment in which companies are born and learn to compete
effectively in certain areas and, as such, affect essential ingredients for
achieving competitive success (Porter 1990).
style='font-family:Arial'>The reason why country of origin influences product
judgments can vary substantially over situations and depend on subjects' processing
objectives at the time they receive information, the time between receipt of
information about country of origin and other product information, the amount
and order in which this information is presented, product familiarity, and
decision importance. It is only after identifying the processes that underlie
country-of-origin effects and circumscribing empirically the conditions in
which they operate that one can begin to understand how country of origin, and
perhaps other extrinsic product attributes, affect product evaluations and
purchasing decisions.
These results add to a growing body of empirical
knowledge concerning the cognitive processes that underlie the effects of
country of origin on product evaluations. In particular, this study provide evidence
of the use of country of origin as a standard of comparison in addition to
country of origin's informational influence on judgments among Dubai residents.
style='color:windowtext'>
style='color:windowtext'>
style='color:windowtext'>Chapter IV
style='color:windowtext'>B. Problems and Solutions
Q1.
What are the problems and issues
challenging the choices for products for consumption in Dubai?
style='font-family:Arial;color:windowtext'>According to the respondents,
despite a relatively small population in the world (but has
become the most populous city in the UAE, accounting for more than a third of
the urban population at the end of 2001, according to official figures. An
estimated one million people live in this city, almost double the population of
Abu Dhabi which has just above 500,000 residents, the Ministry of Planning
said.), Dubai's total imports exceed $14 billion. The reason is
that Dubai is the major re-export centre for the region. Meaning to say, the
labor force needed by the people of Dubai was limited, therefore instead of
producing basic products needed by the people, they prefer to buy foreign
products since it was more practical and convenient. The surveyed individuals
believed that the government was also focused to trading and business dealing
to other foreign countries. Another problem encountered was the emirate's
non-oil imports have expanded sharply in the recent past. Many of the economies
of the region served by Dubai are still at a relatively early stage of
development, so there is plenty of long term scope for diversification and
expansion in the future. Another important consideration is Dubai's rapidly developing
role as a supplier to such emerging markets as India, the CIS, Central Asia and
South Africa.
Most
of the respondents agreed that the easy access of foreign products to get in to
the country was definitely a great factor to consider why the people of Dubai
prefer to buy these products. Some surveyed individuals also agreed that the
quality of product made in Dubai were not that good compared to other
countries. For some cases, the consumers did not consider the products made in
Dubai since the competition between foreign products and Dubai product was
high. The dominance of quantity of foreign products in the country degraded the
quality of Dubai products. Another problem mentioned by some respondents was
the impact of globalization with respect to the trading and business
relationship of different countries.
The restructuring of firms and
industries on an increasingly global basis during the 1990s was driven by a
combination of economic and technological factors. Changes in government
policies in key areas facilitated the restructuring, while providing additional
incentives for the development of global strategies.
Traditionally, corporations have
pursued foreign activities principally with a view towards lowering
production costs and/or gaining access to protected markets. Firms
engaged in labour-intensive manufacturing, for example, sought to decrease
costs by locating labour-intensive operations in countries where wages were
substantially lower. In addition, formal and informal barriers to trade often
provided further incentives to develop offshore operations, as did advantageous
investment climates that might include tax incentives and other forms of
support to promote local economic growth. While these factors continue to play
an important role, others are also influencing strategies.
Growing global competition, for
example, is requiring companies to seek efficiencies that may require
increasing their scale of operations. Often this can be achieved best not by
investing in greenfield plants, but by acquiring existing facilities, wherever
they may be located. In a related area, excess capacity in some sectors
has tended to intensify pressures to restructure on a global basis. The auto,
petroleum and chemicals/pharmaceuticals sectors are examples where mega-mergers
have been pursued to achieve larger economies of scale, while providing
opportunities for firms to phase out non-competitive facilities and rationalize
key functions – such as research and development, marketing, and distribution
networks. Combining and/or accessing strategic intangible assets – such
as management skills, technical know-how and related assets – is also playing
an important role. These arrangements typically serve to enhance the value of a
firm's assets and to optimise returns over the long term, with lesser attention
to costs as such. In this context, corporations are now defining their value in
terms which include their intangibles. Increased attention is being paid, for
example, to the importance of the capabilities of human resources to firm
performance – which would include the knowledge, skills and abilities of
systems engineers, programmers and researchers.
Development and design of
automobiles, for example, requires high levels of expertise in ICT, materials
science, electronics, etc., which might be best exploited through strategic
alliances. Pharmaceutical companies are also active in this area, outsourcing a
major share of R&D in order to accelerate development of new products. In
this context, firms can use M&As to acquire key technologies, thereby
avoiding potentially costly research and development.
This is also relevant for ICT firms,
where leading firms such as Fujitsu have become more aggressive in exploring
and exploiting R&D developed outside the firm (Nezu, 2002).
In addition to the factors discussed
above, the speed and scope of global industry restructuring have been greatly
influenced by changes in framework conditions. These changes have tended to
facilitate, if not promote, such restructuring – largely through market
liberalization and deregulation.
Integration of regional markets style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>in Europe
and North America, for example, has encouraged firms to expand their operations
geographically, leading to more M&As and marketing alliances.
In product markets, the ongoing
lowering of tariff and the strengthening of the multilateral rules governing
trade are promoting a freer exchange of goods. This is providing new
opportunities for companies to expand markets, while subjecting them to more
intense global competition. Surviving and thriving are thus requiring companies
to think increasingly in global terms. This is serving to reinforce the
economic pressures mentioned earlier.
Moreover, the development of
complementary rules governing trade in services has provided a framework
for promoting the liberalization and expansion of cross-border transactions,
which should similarly provide incentives for increased global co-operation. Regulatory
reform in many sectors is playing an important role in the dramatic
increases in strategic alliances by opening up new opportunities. This has been
particularly noticeable in telecommunications, where cross-border alliances
have become common. Vodafone Group Plc, a UK-based firm, is a case in point.
Through acquisitions and alliances, the company has grown from a small, local
mobile phone operator, to a GBP 21.4 billion firm with interests in mobile
networks in 28 countries across five continents (Lloyd, 2002 and Vodafone Group
Plc, 2001).
Privatization style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>is
contributing to cross-border merger activity by increasing M&A
opportunities and exposing firms to heightened competition. Significant
increases in inward M&As in Latin America and in Central and Eastern
Europe, for example, are linked to privatization of state enterprises in telecommunications,
energy and other sectors. In the case of Brazil, partly owing to the
privatization of public enterprises, inward M&As increased rapidly in
recent years from USD 4.7 billion in 1996 to USD 24.8 billion in 1998.
Moreover, acquisition of privatized
mills has been the principal vehicle through which the steel maker Ispat has
expanded to become one of the world’s largest steel producers (Picard, 2002).
Greater institutional ownership of equity and reforms in corporate
governance structures are pressuring firms to explore ways to enhance
shareholder value, while the dismantling of anti-takeover defences has made
corporate management more responsive to shareholder concerns. This is resulting
in more open consideration of cross-border M&As and alliances.
In Japan, for example, the evolving
nature of corporate relationships with shareholders, stakeholders and banks has
led to record numbers of alliances and M&As, both domestic and
international. Similar pressures are occurring in countries where tightly-knit
cross-shareholding relationships among companies (as has been the case in
France, Germany and Japan) are giving way to more widely dispersed ownership
and greater transparency. The increased openness that this has prompted has
resulted in more active consideration of ways to improve performance through
corporate restructuring. A study of M&As involving French firms between
1997 and 1999, for example, shows that the emerging influence and role of
institutional investors has been a principal factor underlying the recent wave
of M&A activity (OECD, 2001b).
Finally, access to international
financial markets and risk diversification has been mentioned as
factors influencing global expansion. In the case of Lafarge, being a sizeable
industry leader has enabled the company to generate interest from those
institutional investors, who have an interest in managing a diversified
portfolio that may only contain a single cement producer (Sarrazin, 2002).
Moreover, foreign holdings have helped the company to moderate swings in
business activity, which, in the case of cement, tends to be highly cyclical on
a country-by-country basis.
Outlook
As indicated above, the growth in
globalization has been supported by governmental policies that, in recent
years, have focused on liberalizing markets and promoting economic efficiency.
Characterized as a "business class" model, the policies have aimed at
the opening of economies to foreign investment, deregulation, fiscal
discipline, privatization, and trade liberalization.
Key global institutions such as the
World Bank, the International Monetary Fund and the World Trade Organisation
have supported the widespread acceptance of the model. Should it continue, one
could expect tendencies towards integration to be strong, with weaker and less
adaptable countries finding themselves at a disadvantage in an increasingly
global and highly competitive environment. For the business community, the
implications could be that competitive pressures would continue to drive firms
to focus even more on core operations, outsourcing other activities to the
extent possible.
On the other hand, it has been
argued that the widespread support that the business class model attracted may
have peaked, and that a shift could be occurring towards a world that is shaped
more on economic and culture diversity rather than shared values. In such a
scenario, countries are seen as taking a more interventionist role in their
economies, basing their policies and actions more on cultural values and
practices than on economic principles and objectives. Characterized as a
"prism" model, markets would continue to matter, but their importance
would be balanced by a recognition that governments may need to intervene to
assure that social needs are addressed. In this context, fiscal, investment and
related policies would be managed more actively to assure they were consistent
with and contributed to a country’s vision of society. For business, the
diversity in framework conditions among countries would require tailoring initiatives
to local conditions, while recruiting and developing competent local staffs to
implement strategies. Globalization would therefore continue, but would be
subject to greater scrutiny.
style='font-family:Arial'>Internationally, CO serves as a useful extrinsic cue
and as a surrogate for difficult-to-evaluate intrinsic characteristics such as
quality and performance because consumers tend to be less familiar with foreign
than with domestic products (Huber and McCann 1982; Olson 1977). Han and
Terpstra (1988, p. 236) claim, "It has been found that all products
originating in foreign countries are subject to country-of-origin [image]
effects." Han (1990, p. 24) further states that CO-image studies in
general show that consumers have significantly different general perceptions about
products made in different countries. Hooley, Shipley, and Krieger (1988, p.
67) asserted that international marketers need to understand these [CO] images
as they relate both to their own, and to their competitors' products.
Specifically, they will need to determine whether such images are positive or
negative, whether and how they affect behavior, and how they can be catered to
in the marketing strategy. Yet, few multinational marketers and advertisers
make full use of their products' favorable CO image or successfully overcome
the liability associated with an unfavorable one.
Several
reasons may account for the relative neglect of CO image as a competitive tool.
First, the CO variable is culture-laden, and most managers are inadequately
trained to address cultural issues despite significant research indicating that
multinational marketing strategy is ill-served if cultural and perceptual
differences among countries are not properly comprehended and heeded (Harris
1984; Kale 1991). Second, translating CO images into marketing communication
opportunities is difficult because the relationship between the brand and its
country of origin is potentially more distant than the relationship between the
brand and its firm, store, or advertising. Third, Zinkhan and his colleagues'
observations about what constitutes effective measures for image manifestations
and their current state of development are equally applicable to CO image
measures (Dobni and Zinkhan 1990; Johnson and Zinkhan 1990; Villanova, Zinkhan,
and Hyman 1990).
Q2. What are the
implications of these issues to Dubai’s economic health?
According
the respondents, the dominance of foreign products creates several implications
not only to Dubai’s economic health but literally also to the health of people
of Dubai. The country of origin of products plays a great impact to the economy
of Dubai. However, the country needs to employ heavy taxes to the foreign
product so that the collected taxes will become part of contribution to the
progress of the country. Most of the surveyed individuals agreed that
importation and exportation of products increases the quality of living of
Dubai. On the other hand, people of Dubai should be more aware to the products
that they buy since it was a possible threat of foreign diseases that are
easily transferred by these products.
The respondents
believed that despite of dominance of foreign products, the quality of living
in Dubai increases. Moreover, Dubai has been part or one of the progressive
business countries in the world since the good quality of trading and business
communication to other country was their focus.
Q3.style='font-family:Arial'> What are your proposed solutions to the issues and
problems you’ve mentioned?
According to the respondents, the government should give
focus to the business owners in Dubai especially to those who are selling and
manufacturing products and goods for citizens of Dubai. The government needs to
employ reasonable taxes for foreign products so that the importation of these
products becomes minimal. The respondents agreed that they have to choose their
own made quality products rather than other foreign products. The surveyed
individuals believed that the government of Dubai should give importance to the
citizens of Dubai, especially to their employment and health assistance.
Another thing that the government of Dubai should employ their attention is the
easy access of terrorist.
The
respondents agreed that one of the biggest factors that the government needs to
consider was not only the impact of country of origin of products but also the
biggest impact of terrorists attack to the economy of Dubai. They believed that
the increase of security to the country would result to quality economy.
However, the country of origin factor of product was definitely a factor to be
considered. According the number of respondents, they will try to buy quality
products of Dubai’s citizens but this marketers should give their full effort
to produce quality products that will might attract consumers to turn on to it
resulting to rejection of foreign products. Rejections of foreign products will
also a possible factor that will lessen the entry to the country.
CHAPTER
5
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
style='font-family:Arial'>
style='font-family:Arial'>Country of origin (CO) is a potentially powerful
image variable that can be used to gain competitive advantage in international
marketing. However, deficiencies in the definition and measurement of its
facets have contributed to ineffective and infrequent use of CO image as
competitive tool. Country-of-origin (CO) image refers to "buyers' opinions
regarding the relative qualities of goods and services produced in various
countries" (Bilkey 1993, p. xix). Among the image variables in the
international advertiser's toolkit, the CO variable is conceivably the most potent
if skillfully applied. Papadopoulos (1993, p. xxi) asks rhetorically, "It
is often said that brand names like 'McDonald's' are worth millions. If so, how
many billions is Germany's image worth?" A few authors have questioned the
magnitude of importance of CO image in affecting choice behavior (Ettenson,
Wagner, and Gaeth 1988; Johansson 1989; Johansson, Douglas, and Nonaka 1985),
but most acknowledge its salience in overall product evaluation and as a proxy
for other, more intrinsic, qualities (Han and Terpstra 1988; Yoo 1992).
The focus
of this study to was to examine the impact country of origin of products to style='mso-bidi-font-family:Arial'>the consumer behavior in the Dubai Marketlang=EN-GB style='mso-bidi-font-family:Arial;mso-ansi-language:EN-GB'> and the
effects foreign products to the market of Dubai. Data collected from the different sets of respondents provided answers
to the queries of the researcher. The primary source of data came from a
questionnaire distributed to the consumers, investors and business owners in
Dubai.lang=EN-GB style='mso-bidi-font-family:Arial;mso-bidi-font-weight:bold'> lang=EN-GB style='mso-bidi-font-family:Arial;mso-ansi-language:EN-GB'>The
secondary of data came from an extensive review of the literature on articles,
journal articles, books, and magazines relating marketing. style='mso-bidi-font-family:Arial'>The study used purposive sampling as a
method of choosing its population. The general population for this study was
composed of randomly selected product consumers in Dubai, numbering ninety
(90).
The researcher
also provided interviews for respondents whose function is directly related to
the organisation and implementation of the marketing strategy. The researcher
provided the questionnaires for the former and conduct interviews for the
latter. Concurrently, the study employed both qualitative and quantitative
research methods to ensure a flexible and iterative approach. The researcher
also uses percentage analysis, the mean and median analysis, analysis of
variance and correlation statistics to evaluate the collated data.
SUMMARY
style='mso-list:Ignore'>1.
style='mso-spacerun:yes'> style='mso-spacerun:yes'> Profile of Respondents
The
respondents were composed of the consumer and business owners’ respondents in
Dubai. Fifty eight percent (58%) of the respondents were 26-30 years old,
showing that most of them were already considered as young adult. Sixteen
percent (16%) of the respondents were between 31-35 years old. Fourteen percent
(14%) of the respondents were between 36-40 years old.style='mso-spacerun:yes'> Respondents’ aged 21-25 is 16% of the total
respondents. On the other hand, 6% of the respondents are in the 40 and above
status. Lastly, there is zero percent of respondents who are in the ages
between 15-20 years old. The number of the male respondents (51%) is closed to
the female (49%) with the total of 46 for male and 44 for female.
There is
only 42% who are married from the ninety respondents. As the figure was
interpreted, there is a little percentage of respondents who are separated or
widow. Most of the surveyed individuals are either married or single.style='mso-spacerun:yes'> Likewise, the respondents were asked for
their educational attainment and the report shows 53 % of them are college.
From the collated data, there were 22.22% of the respondents whose monthly
income was 10,001 and above dirham. Majority these respondents were composed of
managers, businessmen, young professionals and administrators. Followed by
27.78% whose ranges of income were in between 2,1001 to 5,000 dirham. Then,
28.89% of the total respondents have an income between 5,000 to 10,000 dirham.
And lastly, there were only 21.1% of the respondents with incomestyle='mso-spacerun:yes'> of 2,000 or below.
style='mso-list:Ignore'>2.
PERCEPTION OF THE RESPONDENTS PERTAINING to the
impact of country of origin in consuming different products
style='font-family:Arial;color:windowtext'>Based on the collated information
from the surveyed individuals, there is a great influence of country of origin
in consuming different products. shows the dominant agree response as weighted
average in every statement. According to some respondents, the people of Dubai
should buy and consider their own products in order to contribute to the
progress of their country. The surveyed individuals also agreed that only those
products that are unavailable in Dubai should be imported which was illustrated
by weighted mean of 4.14. Majority of the respondents agreed on the statements
and signifies the high impact of ethnocentrism.
lang=EN style='font-family:Arial;color:windowtext;mso-ansi-language:EN'>Within
culture, language, behaviour, customs, and religion can be a basis for ethnic
distinctions, and sub-divisions. Meaning to say, majority of the respondents
believe that Dubai product were better compared to other foreign products.
However the surveyed individuals with
3.64 weigthed mean also accepted the fact that their country cannot stand alone
without the help of other foreign products since they need to style='font-family:Arial;color:windowtext'>buy from foreign countries only
those products that they cannot obtain in their own country .
style='font-family:Arial;color:windowtext'>The government of Dubai according to
the most of the respondents should employ heavy taxes to other foreign products
that will reduce the entry into Dubai. Moreover, the degree of ethnocentrism
for most respondents was high since they are looking for great improvement and
progress of Dubai. The respondents agreed that Dubai products first, last, and
foremost.
style='font-family:Arial;color:windowtext'>The weighted mean concerning to a
real Dubai citizen who bought Dubai made products was interpreted as neutral. This
report shows that Dubai citizens are really concern to the development of their
country but the impact of nature with full of foreign products was definitely a
great factor to consider because even though they don’t want to buy this
product they are forced to purchase it since they need it and it is only very
limited.
style='mso-fareast-font-family:Arial;text-transform:uppercase'>style='mso-list:Ignore'>3.
Problems
and solutions in dubai’s market
According
to the respondents, despite a relatively small population in the world (but class=smalltext>has become the most populous city in the UAE, accounting for
more than a third of the urban population at the end of 2001, according to
official figures. An estimated one million people live in this city, almost
double the population of Abu Dhabi which has just above 500,000 residents, the
Ministry of Planning said.), Dubai's total imports exceed $14
billion. The reason is that Dubai is the major re-export centre for the region.
Meaning to say, the labor force needed by the people of Dubai was limited,
therefore instead of producing basic products needed by the people, they prefer
to buy foreign products since it was more practical and convenient. The
surveyed individuals believed that the government was also focused to trading
and business dealing to other foreign countries.
For the
respondents, the dominance of foreign products creates several implications not
only to Dubai’s economic health but literally also to the health of people of
Dubai. The country of origin of products plays a great impact to the economy of
Dubai. However, the country needs to employ heavy taxes to the foreign product
so that the collected taxes will become part of contribution to the progress of
the country.
They said that
the government should give focus to the business owners in Dubai especially to
those who are selling and manufacturing products and goods for citizens of
Dubai. The government needs to employ reasonable taxes for foreign products so
that the importation of these products becomes minimal. The respondents agreed
that they have to choose their own made quality products rather than other
foreign products. The surveyed individuals believed that the government of
Dubai should give importance to the citizens of Dubai, especially to their
employment and health assistance. Another thing that the government of Dubai
should employ their attention is the easy access of terrorist.style='mso-spacerun:yes'> The respondents agreed that one of the
biggest factors that the government needs to consider was not only the impact
of country of origin of products but also the biggest impact of terrorists
attack to the economy of Dubai.
style='mso-fareast-font-family:Arial'>4.style='font:7.0pt "Times New Roman"'>
Perception of the Respondents (Guide
Questions)
The economic
situation in Dubai right now in terms of goods, products and services coming
from other countries was in good condition. However there is still a great
dominance of foreign products that has proven to be competition withstyle='mso-spacerun:yes'> local products. They agreed that local
products in Dubai are in high standards but the only problem was the
competition and volume of foreign products in the market of Dubai.
CONCLUSION
Based on the
findings of this study, the researcher concludes the following:
style='mso-fareast-font-family:Arial'>1.style='font:7.0pt "Times New Roman"'>
The respondents who took part in this study are
already mature in age, responsible and reliable.style='mso-spacerun:yes'> They are also aware of what’s happening in
the hotel industry and are deeply concerned about the improvement economic
market in Dubai specifically to the impact of country of origin of products.
style='mso-fareast-font-family:Arial'>2.style='font:7.0pt "Times New Roman"'>
The respondents have given an overall rating of
Agree to each of the criteria. Most of the respondents believe that the country
of origin of products has a great relationship in economy of Dubai. This shows
that respondents knew the importance ethnocentrism to the progress of their
economy. For them locally-made products should be the first thing to consider
instead of other foreign products.
style='mso-fareast-font-family:Arial'>3.style='font:7.0pt "Times New Roman"'>
The statistics show that there is no significant
difference or there is a significant relationship in the perception of the
respondents to the concept of country of
origin effect on the consumer behavior in the Dubai Market.
style='mso-fareast-font-family:Arial'>4.style='font:7.0pt "Times New Roman"'>
There are several factors affecting the progress
of the economy of Dubai. The factors to be considered in Dubai’s market include
terrorist attacks, globalization, and its business relationships with other
countries.
style='mso-fareast-font-family:Arial'>5.style='font:7.0pt "Times New Roman"'>
The t-test analysis reveals that the concept of style='mso-bidi-font-style:normal'>country of origin has a significant
effect on the consumer behavior in the Dubai market. The statistics shows the
t-value to be -1053.8 which illustrates that there is a relationship between
the variables.
RECOMMENDATIONS
Country
images, built over long periods, are intangible assets that make a positive
contribution to market sales or share by influencing the effectiveness of
marketing variables on sales. Given a country-specific brand image, some
strategic choices will prove more effective than others.
style='font-family:Arial'>This empirical study generally suggests the following
for those brands or firms in Dubai that wish to be strong contenders in a
global market in the twenty-first century:
style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:
Symbol'>·
Dubai should
recognize and monitor over time country, image, which is unique, and
differentiate themselves from those of other countries-of-origin. Country image
tends to arise initially from certain unique resource endowments in the home
country of a foreign firm or brand. The image is strengthened or improved by
the performance over time of the brands from the same country
style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:
Symbol'>·
Dubai companies
should examine the pattern of interaction between image and marketing
variables.
style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:
Symbol'>·
Dubai brands
should start by building market share, and find out key factors that positively
affect market share for brands from different countries; advertising popularity
were the examples in our case. Do not neglect the universal factors, but focus
more on the key factors that differentiate and uniquely position the brand by
creating intangible assets.
style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:
Symbol'>·
Dubai companies
should fine-tune marketing strategy, according to the mechanism by which
intangible assets are created and influence marketing efforts.
style='font-family:Arial'>In short, understanding the dynamics of intangible
assets is critical in marketing strategy development for long-term success in a
global market, where brands originate from various different countries that
have different "home bases" or different invisible resource
endowments.
Although this study did not use cross-national
samples, several important strategic implications were proposed for Dubai
companies to successfully compete in the long run. Future research including
cross-national samples is likely to generate some additional interesting
results.
Since this
study looked the Dubai market, the findings may not be generalized to other
markets. Future research should provide some important, more generalizable
strategic guidelines on how to compete effectively for long-term success in a
global market, in the presence of country-related intangible assets.
Many
businesses have achieved large market shares in the global market place of the
imported product categories such as automobiles, consumer electronics, and
apparel. As manufacturing and marketing become increasingly global, the
understanding of consumer behavior with respect to purchase of foreign products
takes on greater importance. Thus, understanding of consumer product
evaluations in relation to products' country of origin and other information
cues has pragmatic implications.
Marketers
can use country of origin in the positioning of their products, for example by
linking a product to relevant characteristics of the origin country. It should
be noted that consumers use country of origin not only as a piece of
information in itself, but also as a source of other product information. In
advertising, the source credibility of country of origin moderates the
influence of advertising claims on product evaluations. Marketers choosing to
emphasize country of origin should acknowledge the existence of home country
bias. In domestic markets, this bias would of course be beneficial, but in
foreign markets care should be taken to minimize psychological resistance to
foreign products. It might be beneficial to develop different positioning
strategies for segments that differ in the strength of consumer ethnocentrism
and national identification, as these variables determine the strength of home
country bias.
style='font-family:Arial'>The results reported in this paper can have important
decision making implications for Dubai domestic firms that are trying to
maintain their competitive position in relation to international competition
posed by developed countries. Moreover, the findings suggest that Dubai firms
should strive to gain an equivalence with brands from Japan, United States and
the European Community on perception of quality, technology sophistication,
brand recognition, and advertising image. style='mso-bidi-font-size:11.0pt;line-height:200%;font-family:Arial'>Countrystyle='font-family:Arial'>-of-originstyle='font-family:Arial'> perception still remains an important consideration.
Given the halo effect reported in the literature, the class=goohl2>country-of-class=goohl3>origin
perception can be strengthened by improving the perception of the other
marketing variables.
In addition
to expanding the knowledge of the relations between self-monitoring and product
perception, the results may also shed some light on the understanding of the
role of country of origin on product perception. Country of origin, as well as
other image variables, may influence product perception because it is, in part,
appealing to those consumers who chronically strive to present the most
appropriate image in each social situation in which they find themselves. Thus,
one of the reasons that country of origin affects product perception may be
that the country of origin of a product does indeed convey information about
the image one can project and attain by using any given product.
style='font-family:Arial'>The study’s results also highlight the potential
utility of addressing an issue such as the impact of country of origin from an
individual difference perspective. Not only can we learn more about the
particular individual difference variable under consideration, but, as our
findings suggest, we can also gain additional insight into the phenomenon
itself by understanding more specifically the characteristics of those
individuals who are differentially likely to demonstrate the phenomenon.
style='font-family:Arial'>However, I do not claim that the study is a
bullet-proof characterization of country of origin effects and consumer
behavior since the data provided by the respondents may not always be accurate
and truthful. Thus, future researches can verify the changes in these
attitudes.
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style='font-family:Arial'>
Appendix 1. Timetable
style='border-collapse:collapse;mso-table-layout-alt:fixed;border:none;
mso-border-alt:solid windowtext .5pt;mso-yfti-tbllook:480;mso-padding-alt:
0in 5.4pt 0in 5.4pt;mso-border-insideh:.5pt solid windowtext;mso-border-insidev:
.5pt solid windowtext'>
style='mso-bidi-font-weight:normal'>TASK style='mso-bidi-font-weight:normal'>
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Month
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1st
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2nd
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3rd style='font-family:Arial;mso-fareast-language:RU'>
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4th style='font-family:Arial;mso-fareast-language:RU'>
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5th style='font-family:Arial;mso-fareast-language:RU'>
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6th style='font-family:Arial;mso-fareast-language:RU'>
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7th style='font-family:Arial;mso-fareast-language:RU'>
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8th style='font-family:Arial;mso-fareast-language:RU'>
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9th style='font-family:Arial;mso-fareast-language:RU'>
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Select
topic
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Undertake
preliminary literature search
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- Define research
questions
- Write-up aims and
objectives
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Select
appropriate methodology and locate sources of information. Confirm access. style='font-family:Arial;mso-fareast-language:RU'>
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Write-up Dissertation Plan style='mso-bidi-font-weight:normal'>
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Undertake
and write-up draft critical literature review.
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Secondary and Primary Data Detailed style='mso-bidi-font-weight:normal'>
- Sources
- Consulted style='font-family:Arial;mso-fareast-language:RU'>
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Research Findings: style='mso-bidi-font-weight:normal'>
- Analysed
- Evaluated
- Written-up style='font-family:Arial;mso-fareast-language:RU'>
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Discussion: style='mso-bidi-font-weight:normal'>
- Research findings
evaluated and discussed in relation to the literature review style='font-family:Arial;mso-fareast-language:RU'>
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Methodology style='font-family:Arial'>written-up
(including
limitations and constraints)
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Main body of the report style='font-family:Arial'> written-up and checked for logical structure style='font-family:Arial;mso-fareast-language:RU'>
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- style='font-family:Arial'>Conclusions drawn
- style='font-family:Arial'>Recommendations style='font-family:Arial'> made
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Introduction
and Executive Summary written-up
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Final
format and indexing
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Print style='font-family:Arial;mso-fareast-language:RU'>
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style='font-family:Arial;mso-no-proof:yes'>
style='mso-bidi-font-family:Arial'>Appendix 2. Questionnaire
COOUNTRY OF ORIGIN AND CONSUMER BEHAVIOR
style='mso-tab-count:1'> You were chosen as a respondent to answer this survey – questionnaire on
the effects of country of origin on the consumer preferences and behavior of
Dubai residents. Your answers will provide the data needed in this study. Rest
assured that your answers would be treated with utmost confidentiality. Thank
you very much.
style='mso-spacerun:yes'> Thank
You.
style='mso-tab-count:2'> style='mso-spacerun:yes'>
Part
1. Profile of Respondent
style='font-family:Arial'>
style='font-family:Arial'>Direction:
Please fill up in all the necessary information about yourself. Don’t leave any
item unanswered.
style='font-family:Arial'>
style='font-family:Arial;mso-fareast-font-family:Arial'>a.
Agestyle='mso-spacerun:yes'> _______
style='font-family:Arial;mso-fareast-font-family:Arial'>b.
Gender
style='font-family:Arial'>Male ( ) Female
( )
style='font-family:Arial;mso-fareast-font-family:Arial'>c.
Marital Status
style='font-family:Arial'>Single ( ) Married
( ) Separated ( )style='mso-tab-count:2'> Widow/Widower ( )
style='font-family:Arial;mso-fareast-font-family:Arial'>d.
Educational
Attainment
style='font-family:Arial'>Elementary ( )
High School ( ) College (
) Graduate Studies ( )
style='font-family:Arial;mso-fareast-font-family:Arial'>e.
Monthly Income
style='font-family:Arial'>( ) 2,000 and
below dirham (style='mso-spacerun:yes'> ) 2,001-5,000 dirham
style='font-family:Arial'>( ) 5,001- 10,000 dirham ( ) 10,001
and above dirham
style='font-family:Arial'>
Part
II. Consumer Ethnocentrism Scale (CET)
Direction: Encircle
the number corresponding to your answer
style='font-family:Arial'>
style='font-family:Arial'> 5style='mso-tab-count:1'> - Strongly
Agree
style='font-family:Arial'> 4style='mso-tab-count:1'> - Agree
style='font-family:Arial'> 3style='mso-tab-count:1'> - Uncertain
style='font-family:Arial'> 2style='mso-tab-count:1'> - Disagree
style='font-family:Arial'> 1style='mso-tab-count:1'> - Strongly
Disagree
