INTRODUCTION

Cases have been identified that show that customers may choose a domestic product over a
foreign one. Extant research on this phenomenon has showed that even when customers’
perception of quality of the foreign product is better than that of the domestic product,
customers may still opt for the latter. This proves that the COO effect of quality doesn’t still
guarantee absolutely that customers will prefer such product over another (Papadopoulos et.
al., 1990; Roth and Diamantopoulos, 2008). Even in a case of a favourable product-country
match, such other dimensions which customers use in evaluating their product preference
choice could affect customer’s choice. The summary of the research on the intervening
variables show that a customer’s loyalty to his country (the product/brand) could make
him/her refuse to choose another brand over it even when the perceived quality of the product
using the COO effect is better.

This research proposal using Nigeria as a case study intends to find out the implication of
putting the national branding logo on local products. It seeks to find out if it has an effect in
making customers choose locally made goods with the national branding logo over foreign
ones and if it has an effect on customer’s product choice in choosing between locally made
goods that have the logo and those that don’t. Finally, it will try to find out if association of
the logo with the product has had a negative impact or a positive one on products that carry
the logo.

The research proposal presents a body of literature to show the relevance of the research and
the questions that need to be addressed. The methods to be employed, possible limitations
and ethical issues that need to be put into consideration are highlighted in the proposal. The
proposal seeks to answer all the nine central arguments proposed by Maxwell (1996, cited in
Creswell, 2003) (Appendix 1). It is structured as much as possible not to deviate from the
main objective.

Proposed Research Title and Research Questions

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Does adopting a national logo give local products a competitive advantage over foreign
products in a domestic market?

Q1: Does adopting a national product logo have any influence on customers’ preference for
domestic products over foreign ones?

Q2: Does a negative association with the logo in one product category lead to negative
association in other product categories?

Q3: Is there any significant difference in customers’ perception and product preference
between domestic products with only “made in __” label/no label and those with the national
logo?

Q4: Does customers’ level of awareness of why local companies use the national logo have
any effect on their product choice preference?

These questions seek to find out which cue is most important in choosing locally produced
goods, what effect does the addition of the logo have on customers perception and preference
for the domestic product and what is its effect on perceived quality.

Purpose of the Research and Rationale

At no time in history has the concept of branding be emphasized as much as it is today. The
concept of branding today transcends only tangible consumer products. It is common to see
services, universities, hospitals, and even people been branded today. In the face of intense
competition and fading dividing trade lines that used to hinder the free flow of goods across
nations, a favourable country-of-origin image which adds to the brand personality of products
becomes a concept more to be desired and cannot be overemphasized as it has a significant
effect on consumers’ product evaluation and subsequently their buying decision (Roth, P. K.,
& Diamantopoulos, A., 2008). However, developed nations have long enjoyed a favourable
position in consumers mind due to a long season of technological advancement which has
made them to be associated with a particular strength in terms of quality. Their products are
perceived more favourably than products from developing countries (Laroche et. al, 2005).
France is known for fashion and perfumes, German cars are known for strength, Japanese for

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Quality, and so on. This poses a great challenge for developing or newly emerging nations
who also today are now fighting for the same share of the market even domestically.

Focusing on the domestic market of developing nations, this research aims to find out how
local industries can gain a competitive advantage over foreign ones in their local market.

LITERATURE REVIEW

Brand as a differentiating and symbolic device helps to differentiate one product from
another. It is a name, symbol, design, or some combination, which identifies the ‘product’ of
a particular organization as having a sustainable differential advantage (Peter Doyle, 1990).
It serves as a peripheral cue/ heuristic that helps customers to conserve their cognitive
capacity especially when choosing a product becomes a complex decision (Bettman, 1979
cited in Agrawal and Kamakura, 1999). In the face of fierce competition, a company needs
to be able to differentiate itself and its products so as to be able to stand out and survive

Globalization and Free Trade

The order of the day is globalization and trade agreements are been signed today between
countries and regions resulting in trade barriers either been lifted or lessened. An example is
the African Growth and Opportunity Act (AGOA) between Africa and the US (Thompson,
2004). However, though the gain from such agreements is expected to be greater for small
countries like Nigeria than for large countries like US, the risks are also larger (Wonnacott
and Wonnacott 1967 cited in Daly, 1990). The President of Mozambique was quoted in
reiterating that (as regards Africa)

“While we are pressed to open up our countries and streamline our

methods of doing international business, so that the global economy may
sink roots, invisible barriers are still making it difficult for us to access
resources and advanced technological knowhow. Our manufactured goods
can hardly find a place in the rich markets of the North (Chissano, 1998
cited in Thompson, 2004, 458)”

Considering the fact that on functional or rational level, domestic products can’t compete
head on with foreign products whose quality obviously outweighs them, governments and
companies have to begin to find another attribute on which their domestic products can be

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differentiated and compete i.e. they have to find their comparative advantage in their
domestic marktet.

Branding

In the book brand manners, four different dimensions of customer’s experience were
identified; rational, emotional, political, and spiritual experience (Pringle and Gordon, 2001).
These experiences are a summary of our expectations from a product or brand. A brand in
itself represents promises about what we can expect from a product, a service or a company
(Pringle and Gordon, 2001). However, a brand includes all the tangible and intangible
aspects of a product, service or company and has been found that the sum total of all the
various aspects make customers to perceive brands as having their own distinct personalities.
Customers then seek brands that have images that match their own self-image (Chernatony
and McDonalds, 1998) or rather personalities that match theirs.

Country-of-Origin Effect

The concept that every part of the brand adds to its personality and consequently on how
customers perceive it has made researchers to look into the effect of the country-of-origin
(COO) of the product on how it is been perceived (Srinivasan et. al., 2004; Agrawal and
Kamakura, 1999; Chao, 1998; Peterson and Jolibert, 1995). Peterson and Jolibert (1995)
stated that

“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 part of the total product, COO influences customers’ decision making and evaluation of
products (Pitt et. al., 2007; Agrawal and Kamakura, 1999). COO adds to the image of the
product and like a chicken-and-egg effect (Walker and Dubitsky, 1994), if customer’s attitude
towards the COO is positive, then they may transfer such attitude towards the product.

There has been an extensive research into the effect COO has both as an intrinsic and an
extrinsic cue and in the absence and presence of other cues (Agrawal and Kamakura, 1999).
Studies have revealed that though COO has an effect on the perception of quality as regards a

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product, its role in influencing consumers’ actual choice behaviour is said to decrease
significantly in the presence of other cues (Agrawal and Kamakura, 1999; Peterson and
Jolibert, 1995).

However, different factors have been identified to influence customer’s preference in

choosing between domestic products and foreign ones: the home country’s degree of
industrial development, level of market development, consumer’s affective feeling towards
the home country (national pride and patriotism), consumer’s perception of the vulnerability
of imports (Papadopoulos and Heslop, 1990) and animosity (Rusell and Rusell, 2006).
Consumers product preferences based on COO is made using cognitive, affective or conative
dimensions (Papadopoulos, 1988, 1990, 2000 cited in Laroche, 2005).

In summary, research has sufficiently shown that when the COO makes consumers to
perceive a foreign product as of better quality, they may still choose domestic products which
don’t measure up to the standard of the foreign product over it (Papadopoulos and Heslop,
1990). The implication of this for developing nations like Nigeria where their level of
technological and educational development has not allowed them to be able to make products
whose quality levels may be able to measure at par with competing foreign ones is to find the
factors that favour consumers’ preference for domestic products over foreign ones and then
market the local goods using these factors for differentiation.

Since modern day marketing concept emphasizes a customer orientation perspective (Jobber,
2007; Kotler et. al., 2005; Kotler and Keller, 2009), research needs to be done to test the
assumption that adopting a national logo will give domestic products a brand personality that
will increase consumer preference and usage, evoke emotions and increase level of trust and
loyalty for domestic products (Aaker, 1997).

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METHODOLOGY

Considering the nature and implication of this research, practical application of the findings is
a major concern. Therefore, the method for this research study will be mixed methods. The
assumption here is that collecting diverse types of data provides a better understanding of a
research problem (Creswell, 2003). However, the criticisms also need to be put in
perspective so that the possible loop holes could be avoided. It is argued that qualitative and
quantitative research methods are separate paradigms with different epistemological
implications because they are both built on opposing epistemological positions about how
social reality should be studied (Bryman and Bell, 2007). This makes some researchers
believe that mixed methods of research i.e. a research that combines the two research
strategies, is not feasible.

To avoid the strength of these arguments, this research will be based solely on triangulation
which Hammersley (1996 cited in Bryman and Bell, 2007) defines as “the use of quantitative
research to corroborate qualitative research findings or vice versa”. In the case of this study,
we will use data collected from qualitative methods to design our questionnaires. It would
also be used to cross-check our quantitative research findings. This will make our research
work more applicable as the use of mixed methods helps to counterbalance the strengths and
weaknesses of each research strategy (i.e. quantitative and qualitative methods) (Bryman and
Bell, 2007).

Considering the lack of adequate time and resources needed to study a whole population, this
research in drawing upon survey design intends to make inferences (concerning the research
questions that need to be answered) from a sample and then generalize it on the population
from which it is drawn.

Data Collection

Study population, Sampling and Data collection instrument

The survey will make use of self-administered questionnaires to obtain data from respondents
about their perception towards domestic products to detect any pattern of association that
could give insight to factors that affect their preference for it.

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As noted earlier, prior before the questionnaire survey, a qualitative research using semi-
structured interview will be employed using 6 interviewees.

Students within a university environment will be surveyed using a stratified sampling method
to ensure that gender and ethnic differences are well represented. Within each stratum,
samples will be drawn randomly using random numbers table. The choice of university
location is based on the ease to obtain relevant information to identify the members of the
population on the basis of the stratifying criteria and the richness of the diversity of the
student population within it. The choice of students is also on the assumption that they will
be familiar with the products we intend to focus on and their COO. This is important because
perceptions about a country are dependent on people’s knowledge of or familiarity with the
country or its product (Roth and Romeo, 1992; Ahmed and d'Astous, 2007). One university
will be chosen from each of the three major ethnic groups using random probability sampling
(making three in all) where a total of 300 questionnaires will be administered (100 for each
university). This number takes into account the possibility of non-response. A pre-test will
be run to check for content and construct validity of the questionnaires so as to be able to
improve on the questions and their format and to avoid ambiguity in the questionnaire
(Creswell, 2003). The reliability would be tested after full administration of the data using the
Cronbach’s alpha. The advantage of using self-administered questionnaires include, it’s
cheaper, quicker, convenient for respondents and no interviewer’s effect or variability.
However, it doesn’t give room for probing further and collecting additional data and the risk
of missing data and low response (Bryman and Bell, 2007) could make it difficult to run
meaningful statistical analysis. It also limits one to the number of questions to ask while
ensuring that it is not cumbersome.

Data Analysis

The major strategy here to ensure a perfect integration of the quantitative and qualitative data
will be a concurrent triangulation strategy (Appendix 2) (Creswell, 2003). The questionnaires
gathered will be collated and numbered to avoid mixing them up. They will be labelled A, B,
C to indicate which region of the country it came from in case distinct results that needs to be
followed up arises. The data gathered will then be inputed and analysed using SPSS and
NVivo. The quantitative data will be analysed with the assumption that the COO effect is
constant and favourable. As a result we assume in all the analysis that the foreign product

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(Fp) is perceived as better than the domestic product (Dp). The analysis will involve
bivariate, and Regression analysis to test relationship between the variables.

The variables include;

Variable name Symbol

Independent variable Foreign product Fp
Independent variable Domestic product Dp
Intervening/Independent variable National logo L
Intervening variable Negative association with the logo Na
Dependent variable Customers’ perception Cpc
Dependent variable Customers’ preference Cpf

Resources, Timescale and Ethical Considerations

Throughout the period of this research (February to September), a constant review of new
literature needs to be done. Resources will be sourced using the University library and
Athens (which is a collection of necessary literature and journals databases like EBSCO,
ScienceDirect, Proquest/ABI Info, Taylor and Francis, SAGE, JSTOR, etc).

I will need to contact the Universities Commission (NUC) in Nigeria for a comprehensive list
of universities in the country. I will need to acquire Nvivo and SPSS and learn more about
how to use them to avoid any delay on coding, cleaning and analysing the data collected.

I will have to take into consideration the scepticism that I may face at the NUC who may
need an authorised letter from a recognized body like the Business School before they release
the universities list which I must also ensure I protect and keep away from third parties. I
need to find out the governments rules about transferring data across borders also since I will
have to fly over to Nigeria to take the survey. I may also have to obtain consent from every
participant involved in the interview if I will divulge specific information about their
responses (See Appendix 3). I must clearly state before hand to them the exact purpose for
my research and any implication that may directly affect them. I need to state this also
clearly on the questionnaires. In a case where the expected response rate is not met, I must
not try to fill the questionnaires myself or falsify any data. When results appear not to be

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congruent I must not adjust them to suit my own purpose. Results must be stated exactly as
they appear even if the instruments eventually proved to be faulty.

The time duration will be from February to September to allow for ample time to finish the
whole research project. The Gantt Chart for the time duration is highlighted in Appendix 4.

Limitations, Contribution and Conclusion

Mixed methods research has been identified that it could lead to dilution of research effort
since resources would need to be spread instead of concentrated on one research method
(Bryman and Bell, 2007). On my own part, though I have previous training in quantitative
research method, my inexperience in qualitative method could be a barrier to the full
utilisation of the technique and smooth synergy of both methods.

The insufficient resources (time, finance, number of person involved) and this means that the
number of sample that would be possible to survey will be limited. Consequently, the chosen
sample seems quite homogeneous (student group) and this may limit the possibility of
generalizing from such sample.

The research findings should add to knowledge as research findings on factors that moderate
the effect of COO on customers’ product preference in nations that are not known for any
major manufacturing capability is limited. Most previous work focused on developed nations
and newly emerging economies like China. It would also add to knowledge as it seeks to find
out about the success of national campaigns to promote domestic goods which are becoming
common place in developing nations. The findings should help governments, marketers and
advertisers who intend to embark on “buy domestic products” campaign to know which cue
to use to create a personality for the domestic products and then to differentiate and promote
them using their campaigns effectively.

Further research can build on the findings to determine the associated risk of such campaigns
and how to possibly address them as this research study has not been able to justice to it. it
could also find out if the use of the national logo have any difference in customer’s product
preference depending on the product involvement or product category.

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REFERENCE

1. Aaker, J. L., (1997), ‘Dimensions of Brand Personality’, Journal of Marketing

Research, 34, no. 3 (Aug.): 347 - 356
2. Agrawal, J., Kamakura, W. A., (1999), ‘Country of origin: A competitive
advantage?’, International Journal of Research in Marketing, 16: 255 – 267
3. Ahmed, S. A. & d’Astous, A., (2007), ‘Moderating effect of nationality on country-
of-origin perceptions: English-speaking Thailand versus French-speaking Canada’,
Journal of Business Research, 60: 240–248
4. Butterfield Leslie, Excellence in Advertising, 1999
5. Creswell, J. W., (2003), Research design, qualitative, quantitative and mixed methods
approaches, 2nd edn, California, Sage Publications, Inc.
6. Daly, D. J., (1990), ‘The Canada-United States Free Trade Agreement: The
Adjustment Process for Canadian-Owned Firms’, North American Review of
Economics & Finance, 1, no. 1: 105-115.
7. Doyle, Peter, (1990), ‘Building Successful Brands: The Strategic Options’, The
Journal of Consumer Marketing, 7, no. 2, (Spring): 5 - 20
8. Jobber, David, (2007), Principles and Practice of Marketing, 5th edn, Maidenhead,
McGraw-Hill Education.
9. Kotler, P., Wong, V., Saunders, J. & Armstrong, G., (2005), Principles of Marketing,
4th edn, England, Pearson Education Limited.
10. Kotler, P. And Keller, K. L., (2009), Marketing Management, 13th edn, New Jersey,
Pearson Education.
11. Laroche, M., Papadopoulos, N., Heslop, L. A. & Mourali, M., (2005), ‘The influence
of country image structure on consumer evaluations of foreign products’,
International Marketing Review, 22, no. 1: 96 – 115
12. Pitt, L. F., Opoku, R., Hultman, M., Abratt, R. & Spyropoulou, S., (2007), ‘What I
say about myself: Communication of brand personality by African countries’,
Tourism Management, 28: 835–844
13. McDonald, Malcom & Leslie de Chernatony, (1998), Creating Powerful Brands in
Consumer, Service and Industrial Markets, 2nd edn, Oxford, Butterworth-Heineman.
14. Papadopoulos, N., Bamossy G. & Heslop A. L., (1990), ‘A comparative image
analysis of domestic versus imported products’, International Journal of Research in
Marketing, 7: 283 – 294
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15. Peterson, R. A., & Jolibert A. J. P., (1995), ‘A meta-analysis of Country-of-Origin
effects’, Journal of International Business Studies, 26, 4, (Fourth Quarter): 883 – 896.
16. Pringle, H. & Gordon W., (2001), Brand Manners, How to create the self-confident
organisation to live the brand, England, John Wiley & Sons Ltd.
17. Roth, K. P., Diamantopoulos, A., (2008), ‘Advancing the country image construct’,
Journal of Business Research, 10.1016/j.jbusres.2008.05.014
18. Roth, M. S. & Romeo, J. B., (1992), ‘Matching Product Category and Country Image
Perceptions: A Framework for Managing Country-Of-Origin Effects’, Journal of
International Business Studies, 23, no. 3, (3rd Qtr.): 447 - 497
19. Russell, D. W., Russell, C. A., (2006), ‘Explicit and implicit catalysts of consumer
resistance: The effects of animosity, cultural salience and country-of-origin on
subsequent choice’, International Journal of Research in Marketing, 23: 321–331
20. Srinivasan N.,, Jain, S. C., & Sikand, K., (2004), ‘An experimental study of two
dimensions of country-of-origin (manufacturing country and branding country) using
intrinsic and extrinsic cues’, International Business Review ,13: 65 – 82
21. Thompson, C. B., (2004), ‘US Trade with Africa: African Growth & Opportunity?’,
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474
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Research, 34, no. 3: 9 - 18

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APPENDIX 1 - Creswell, (2003) pg 50

1. What do we need to better understand your topic?

2. What do we know little about in terms of your topic?
3. What do you propose to study?
4. What are the setting and the people that you will study?
5. What methods do you plan to use to provide data?
6. How will you analyze the data?
7. How will you validate your findings?
8. What ethical issues will your study present?
9. What do preliminary results show about the practicability and value of the proposed
study?

APPENDIX 2 – Creswell, (2003), pg 214

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APPENDIX 3

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APPENDIX 4 – GANTT CHART FOR RESEARCH DISSERTATION

Feb Mar Apr May June July Aug Sept

Write
Research
Proposal
Negotiate
access
Literature
review
Data
collection
Data
analysis
Write first
draft
Write
second
draft
Write final
draft
Dissertation
due

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