MARKETING RESEARCH PROJECT ON EFFECT

OF COUNTRY OF ORIGIN ON CONSUMER

AUTOMOBILE PURCHASE DECISION.
Presented to: Dr. Gaurav Joshi

PRESENTED BY: Deependra Singh Shekhawat (004/2019)

Saksham Gupta (005/2019)
Akash Bhargava (009/2019)
Utkarsh Sharma (011/2019)
Himanshu Maan (030/2019)
 Products with foreign brand names are frequently associated with the
country-of-origin (COO) of the brand. The promotion of such brands means,
either emphasizing the COO as has been the case with Hyundai Korea, Suzuki
Japan or alternately, ignoring the COO depending on the perception of
consumers in the foreign country market.

Numerous firms have used positive associations with the COO to good
INTRODUC advantage in the marketing of goods, as for example, the favourable
association of Germany with beer, Germany with cars, and Japan with
TION microelectronics. However, if the COO stereotype is negative, it can pose
formidable barriers for marketers attempting to position their goods within a
foreign market.

In yet other cases, there are product categories to distinctively associated

with COO image as in the case of the car industry, where it has been more
easy to market global brands such as Mercedes, Audi, Toyota, Jaguar for which
brand images have developed quite significantly from their COO, and which
do not use their national COO association in their promotion and marketing
strategies directly, but it is having a significant impact on mind of consumers
 Concept of brand personality and its related dimensions seem very useful in
assessing not only the overall effect of the country of origin (COO) on the
brand perceptions of consumers but provides additional information about
how and where these differences are perceived. The multi-dimensional scale
gives important insight into where exactly the differences reside. Finally,
these results suggest that in terms of brand building what actions can be
taken.

LITERATUR
E REVIEW The world automobile market has historically been dominated by
manufacturers based in developed countries. Developed country
manufacturers first served their home markets, and then sought exports to,
and foreign direct investment in, other developed country markets as well as
developing country markets. Consequently, published research in the area of
country of origin effects regarding automobiles has usually been conducted
using automobiles from developed countries. However, in the last 20 years,
automobiles from manufacturers in newly industrialized countries such as
South Korea and more recently from developing countries such as Brazil ,
Russia, India and China have increasingly become important players in the
world automobile market
 MDP:
MDP: DoDo country
country of origin
of origin of theof the
automobile
automobileimpacts
manufacturer manufacturer
the brandimpacts theand
personality
brand
brand personality and brand perception?
perception?

PROBLEM
STATEMEMN
MRP: What are the effects of that
T MRP: What
brand are the effects
perception onof the
that brand
consumer
perception on the consumer buying behaviour
buying behaviour and purchase
and purchase decision of the consumers.
decision of the consumers.
 To study the impact of county of
origin over consumer car purchase
decision.

OBJECTIVE
S OF THE To understand the willingness to pay
STUDY more for an international brand.

To understand the consumer affinity

towards foreign/domestic brand.
  Type of Research: Exploratory and Descriptive
 Data Type: Quantitative Data
 Data Collection Source: Questionnaire
Data Collection and Sample: The National capital region
was taken for the present study to understand the factor-
country of origin and its influence over the car buyers’ brand
RESEARCH choice.
DESIGN The population for the present study was pertained to NCR,
Gurgaon and Dwarka were the study regions.
Data Analysis: Analysis of data is most important aspect of
every research. Structured and validated questioners used
for collecting data .Statistical tools with the help of software
packages like SPSS was used for analysis.
HYPOTHESES

Ho:There is no significant relation between the

Nation of origin of the car and car purchase decision:

H1:There is significant relation between the Nation

of origin of the car and car purchase decision
RELIABILITY TESTING
Cronbach alpha for the sample of (30
respondent) came out to be 0.780
which is more than 0.70. We can say
that our questionnaire and
measurement scale used are reliable
enough
 Friedman's Test
a
Test Statistics
N 83
Chi-Square 164.426

df 7
Asymp. Sig. .000
a.

Friedman's test was conducted to understand the

significance difference in the mean ranking among the
variables of country of origin.

The mean values are above 1 for all the factors and Factor-
VIII is having the highest mean rank (5.94) and factor-II
(2.61) with least mean rank. Thus the null hypothesis is
rejected.
 Communalities
Initial Extraction
1.000 .712
FACTOR ANALYSIS
1.000 .565

1.000 .557

KMO and Bartlett's Test

1.000 .722
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .641

Approx. Chi-Square 138.904

1.000 .577
df 28
1.000 .653
Sig. .000

1.000 .702

1.000 .627

Extraction Method: Principal Component Analysis.

 Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.771 34.637 34.637 2.771 34.637 34.637 1.878 23.472 23.472
2 1.194 14.927 49.564 1.194 14.927 49.564 1.736 21.706 45.178
3 1.151 14.387 63.951 1.151 14.387 63.951 1.502 18.773 63.951
4 .903 11.292 75.243
5 .742 9.272 84.515
6 .524 6.554 91.068
7 .374 4.670 95.738
8 .341 4.262 100.000
Extraction Method: Principal Component Analysis.
 • The mean values are above 1 for all the factors and Factor - VIII is
having the highest mean rank (5.94) and factor –II (2.61) with
least mean rank. Hence concluded that factor VIII is having
significant influence over the car purchase decision and so , the
country prestigious in automobile manufacturing plays a vital role
in the purchase decision.

FINDINGS • The study reveals that origin country having high level of
technological advancement plays a key role in purchase decision.

• Most of the customers prefer the brands, having manufacturing

units in India, whether its Indian or foreign brand.
 This study has got its own limitations. The Present study was
limited to the National capital region, the findings of the study
LIMITATION may not be same for other region.

S OF THE  The sample size for the study was small, so it might be a
STUDY significant obstacle in finding a trend and a meaningful
relationship amongst the variables.
 Neelam Kinra, The effect of country-of-origin on foreign
brand names in the Indian market Marketing Intelligence &
Planning Vol. 24 No. 1, 2006 pp. 15-30
REFERENC Bilkey, W., and E. Nes. 1982. Country of Origin Effects on
ES Product Evaluations. Journal of International Business
Studies 8: 89-99.
THANK YOU