BUSINESS RESEARCH METHODS

Final Project

BUSINESS RESEARCH METHODS

Final Project

Consumer Preference for Imported Products over Domestically Produced

Products in Pakistan

Submitted to:

Submitted by:

Miss Sarah Parvaiz

Humaira Aziz
Mahwish Naz
Rabia Masood
Sadaf Majeed Khan
Shazia Kausar
Sumaira Abbasii

Submission Date: 26th December, 2006

ACKNOWLEDGEMENT
First of all we would like to thank ALLAH who has provided us with the opportunity
to explore this hidden world. We are also thankful to my beloved parents who have
provided us resources to study in such a quality institution. And at last but not the
least we are thankful to our teacher Miss. Sarah Parvaiz who has made us capable of
doing things practically and conveyed us knowledge with full dedication.
Today we are grateful to submit our report to you. We have tried our level best to
come up to your mark by proving unique ideas & style.

PREFACE
This report is an effort to find out why consumers in Pakistan generally prefer foreign
made products over locally produced products. The report starts with a comment on
the consumer buying behavior in Pakistan. Then follows the research questions,
which form the base of the research purpose as to check and verify the presence of
various factors such as socio-economic factors etc in the buying behavior of the
general consumer in our country.
Then various variables that are the object of study are mentioned and explained,
supported by a literature review in which the relationship between the selected
variables has been worked out. This is followed by a set of hypotheses developed. The
methodology adopted during the research, its limitations and scope are also entailed.
Later, a survey conducted in order to test the hypotheses and its results and findings
have been included.
The entire report goes on in a very logical sequence for the ease of the reader. This
comprehensive study shall throw some light on the fact that what factors influence the
consumers to mostly purchase foreign made products in comparison to locally
produced products and how these affect their buying behavior.

SCOPE
The nature of the study being carried out is descriptive in nature, therefore a co
relational investigation is being carried out that will try to prove the degree of
importance, or variation, each independent variable, i.e. impact of ethnocentrism,
susceptibility

to

interpersonal

influences,

conspicuous

consumption,

and,

demographic variables, has on the dependent variable, i.e. consumer preferences, and
interrelation between the variables being analyzed. The study may be seen as co
relational because the researchers are not interfering with the research environment in
any way. This leads us to the conclusion that the research is of a non-contrived nature,
occurring in the field. Also important to note here is that the data analysis is
performed on the basis of a mixture of individual, group, and cultural basis. This
means that, due to the fact that we are trying to analyze the buying behavior of
Pakistani consumers, therefore individuals are analyzed, who belong to a certain
group within the society, and the culture of this group is analyzed so as to ascertain its
impact on the buying behavior. In the case of the time horizon, the study is a crosssectional one, due to the fact that the results of the research do not be change in.
Buying behaviors of consumers is not altered by small scale changes in income
increases, or increased demand, etc, but a major change like economical stability of
the country, or changed perceptions of consumers would lead to alterations in buying
behavior, but this it seems would take place no less than five to ten years from now.

BROAD PROBLEM AREA

In the last fifteen years of Pakistans history there has been a sharp increase in the
number of locally produced products and services coming into the market, ranging
from electronic goods like Televisions and Computers, to durable products and
services like automobiles and companies dealing in all forms of services including
financing, I.T, advertising, etc. Although most of these goods and services are of
commendable quality, both technologically and in terms of appeal, but there are still a
very small presence of these goods and services in the Pakistani market in terms of
consumer demand. It seems that most consumers are inclined towards purchasing
foreign made goods rather than goods made in Pakistan even though there is little or
no difference between the two in terms of craftsmanship or technology, because of the
perception the Pakistani population has that foreign brands are of a better quality,
whereas in reality this might not always be the case. This is evident from the fact that
Pakistani cotton is already fetching more share in international markets, but still the
textile sector at times imports cotton from neighboring countries like India and
Bangladesh, for the production of cloth.
This led us to the formation of four main research questions, which will be used to
analyze and formulate the hypothesis.
Q-1. What degree of patriotism do Pakistanis feel towards domestic products?
Q-2. What is the relationship between consumers and the products they consume?
Q-3. Does the country of origin influence consumers preconceptions towards the
products of a country?
Q-4. Do socio-economic variables affect consumer-buying behavior?

LITERATURE REVIEW
A number of on-line studies and reviews were analyzed for the formation of this
research studys hypotheses. The amount of work already performed on this subject
was quiet surprising and from these reviews a number of variables where picked
which it seemed had some form of affect on the Pakistani consumer. These variables
were then analyzed to see whether they could apply to this environment due to the
fact that most of the other studies were carried out in environments, which were
extremely dissimilar to our own. A number of the studies analyzed were carried out in
western countries like the United States, Europe and Russia. Apart from the
dissimilarity of consumers in these areas, the cultures where also different from the
one found in Pakistan. Thus, we were forced to leave out certain variables, which
could not be applicable in Pakistan. The variables, which were seen to exist in all the
studies, in general were then used to see how they affected the independent variable,
i.e. consumer preferences, in the Pakistani environment. These variables were:
1. ETHNOCENTRISM
2. INTERPERSONAL INFLUENCES
3. CONSPICUOUS CONSUMPTION
4. DEMOGRAPHIC VARIABLES.
1.

ETHNOCENTRISM:
The use of the ethnocentric variable was incorporated into this study after analyzing
the study carried out by Julie H. Yu and Albaum titled effects of Sovereignty change
on consumer ethnocentrism and product preferences:
Hong Kong revisited one year later, in which it was stated that;
As mentioned earlier, consumer ethnocentrism can be defined as the beliefs held by
consumers about the appropriateness of buying foreign-made products rather than
those made domestically. A totally ethnocentric consumer is one who believes that it
is wrong to buy any foreign-made product at any time. Since ethnocentrism is
something that varies among people, it can range from totally non-ethnocentric to
totally ethnocentric.

A second review which helped in selecting this variable was from the study,
Attitudes toward the Purchase of Foreign Products: Extending the Model, in
which it was stated;
Consumer ethnocentrism is a construct which has been widely used in studying
consumer attitudes toward foreign products. It derives from the more general
construct of ethnocentrism, which in turn is rooted in a belief that one's own group
(the in-group) is superior to other groups (out-groups) (Adorno et al 1950). Shimp and
Sharma (1987) define consumer ethnocentrism as beliefs held by consumers about the
appropriateness or morality of purchasing foreign products. Purchasing imported
goods is seen as wrong as it will harm the domestic economy, has an adverse impact
on domestic employment, and is unpatriotic. Shimp and Sharma (1987) developed a
measurement instrument, the CETSCALE, to assess these attitudes. Previous studies
(Shimp and Sharma 1987, Netemeyer, Sharma et al 1995, Klein et al 1998) have
found high ethnocentrism scores are related to reluctance to purchase foreign products
and tendencies to evaluate them negatively. Hence, Consumer ethnocentrism has a
negative influence on:
Product judgment of foreign products, and
Willingness to buy foreign products.
2: INTERPERSONAL INFLUENCES:
Interpersonal influences were picked up from the study titled Russians Develop
Preference for 'Homegrown' Products in which the Russian market was
analyzed to see how foreign made products were faring in the Post Communist
Russia of today. In this article it was stated that;
Those three examples highlight a radical shift in the Russian market for fast-moving
consumer goods. Where once it seemed, in terms of product origins, "West is Best,"
in the last few years, consumer preferences seem to be moving away from flashy
foreign imports back to homegrown products. The trend has gathered enough

momentum to force western companies to rethink their advertising strategies -- and go

native.
When communism collapsed, Russia was flooded with foreign goods that had once
only been available to the privileged few. Suddenly, imported food, drink and
cigarettes were all the rage. "They were seen as attractive, reliable and cool," says
Lena Koneva, head of market research company ComCon. "It became taboo to smoke
a Russian cigarette."
But the shocking devaluation of the ruble in 1998 sent the price of imports sky-high,
forcing shoppers back to Russian brands. It was a change many were happy to make:
The romance with western goods had already begun to fade.
Now the country seems to have settled at the opposite extreme. Russian is in, foreign
well and truly out. "Russians are really prejudiced. They think the food produced here
is better because the technology's more primitive, and so it's got fewer artificial
additives," says Ms. Koneva.

Also important is the study, Telemarketing To U.S. HISPANICS, which states;

The growth in size and purchasing power of ethnic groups has made targeting ethnic
groups a popular targeting strategy among American Corporations.

Hispanics

represent one of the fastest growing demographic groups in the U.S. During the
1980's, the Hispanic population grew more than 50%, compared with the overall
population. America is said to have the fifth largest Hispanic population in the world.
This means there is more Hispanic in the United States than Canadians in Canada.
According to some estimates the Hispanic population could double within the next
fifteen years, Hispanics will overtake African Americans as the largest ethnic minority
in the U.S. The estimated annual purchasing power of the Hispanics is greater than
$180 billion. A great deal of research has been done on the language preferences of
the Hispanics In regard to the media they listen to watch or read. One Hispanic
market does not exist; a commonality of language does not mean a commonality of
cultures, or socioeconomic profiles. Latinos in Los Angeles or Texas bear little
resemblance to second generation Cubans-Americans in Miami or Puerto Rican
Families settled in New York City.

Who is Hispanic?
Websters tenth new collegiate Dictionary Traces the origin of the word Hispanic to
Hispania Iberian peninsula (Spain) and defines as Hispanic any person of Latin
American decent living in the U.S., especially one of Cuban, Mexican, or Puerto
Rican Origin.
Hispanics as Consumers:
Cultural heritage, The Spanish language and disposable income are the three things
most of the U.S. Hispanics have in common.

Every day, Hispanic consumers pour

millions of dollars in to the U.S. Economy. Regardless of how much money they
make individually or other differences between the different Hispanic groups the
result stays the same:
U.S. Hispanics earn and spend more money than most Hispanics in Latin America.
The region with the highest concentration of Hispanic income is the southwest
(California, Texas, Arizona and New Mexico) this is the prime region for marketing
Hispanics. On average the income of the Hispanics is higher than that of the African
Americans. California a has the highest rate of affluent of Hispanics in the U.S. New
York and New Yersey follows in affluence. There are more affluent Mexicans than
any other Hispanic group many Cubans are also affluent. This means that the two
markets to target are the Mexican and Cubans in the areas of California and Florida
where the most affluent concentration of these two groups are located.
Buying Preferences:
Hispanic consumers tend to be very price sensitive placing importance on price and
promotion. Hispanic consumers are more conscious of a brands reputation and
quality than other consumers and have strong brand preferences and loyalty. This is
due in part to the strong brand advertising in Spanish and to the assimilation of ethnic
consumers to the mainstream economy. Hispanics are not likely to buy private levels
brands. This because of the need to show that they have arrived in the domestic
economy and are able to provide their families with the highest quality products.
Other Mexican immigrants are familiar with many prominent national brands. Many
retailers vary their assortments and merchandise practices to match costumers

characteristics in ethnic market areas. Ethnic stores and ethnic marketing specialists
are becoming very popular. In order to determine the level of ethnic orientation a
marketing strategy should involve, a retail store conducted a study to investigate this
shopping behavior.
These are some of the key spending preferences of the Hispanic Market that the
marketer trying to target the Hispanics must take into account; regardless of the
marketing strategy he or she tries to apply:
Food consumed at home.

Rental Housing.

Apparel.

Telephone Services.

TV radio and other sound equipment.

Personal care products.

Public Transportation.

Cleaning Supplies.

3. CONSPICUOUS CONSUMPTION:
This variable was selected after analyzing the article E-Commerce and
Country-of-Origin Effects, in which it was stated;
One issue that such international e-marketers face is the possible influence of
country image on their potential buyers. The influence of the perception of a country
by a consumer can significantly affect their perception of a product or service
associated with that country and the resulting buyer behavior. Such influence has
been termed "Country-of-Origin" effects on consumer perception. Various researches
have offered a range of definitions explaining COO (e.g., Bilkey and Nes 1982; Han
and Terpstra 1988; Johansson, Douglas, and Nonaka 1985; Thorelli, Lim and Ye 1989;
Wang and Lamb 1983). However, as we have increasingly found the separation of
manufacturing or assembly location from the country with which the firm or brand is
associated with, the term "origin" has become vague.

This can be clarified by

differentiating between country-of-brand (COB), the country with which the brand or
firm is associated, and country-of-manufacture (COM), the country in which the

product is made. Thus, uni-national products can be defined as those whose COB and
COM are the same, whereas bi-national products are those whose COB differs from
the COM. We can also extend this further to define multi-national products in which
COB differs from not only a COM, but also multiple COMs given by multiple
countries of assembly and sources of component parts. The bi-national products
effects have been observed by Ulgado and Lee (1993), Hauble and Elrod (1999).
Others have further decomposed the COM effect into Country-of-Design, Country-ofAssembly, and Country-of-Parts (Inch and McBride 1996).
There has been a substantial amount of studies supporting significant effect of COO
on consumers' product evaluations (see Bilkey and Nes 1982, Johansson, Douglas and
Nonaka 1985, and Ozsomer and Cavusgil 1991 for a review). Consumers prefer
products from some countries to others (Tongberg 1972; Yaprak 1978).

Such

preference bias for products generally exists across levels of economic development
of countries, indicating their hierarchical nature (Schooler 1971; Tongberg 1972;
Wang and Lamb 1983). Studies have shown that country identification generally has
a positive effect on product evaluations for some, relatively more developed countries
(Darling and Wood 1989; Gaedeke 1973; Han and Terpstra 1988; Papadopoulous,
Heslop and Beracs 1990), while it has a negative impact for other, lesser developed
countries (Khanna 1986; Krishnakumar 1974). The significant COO effect has also
been found in industrial purchasing or business-to-business situations (Nagashima
1977; White 1979; White and Cundiff 1978).
Therefore, it is believed that the emphasis in future COO studies should move
towards specifying the conditions under which consumers show different COO
effects, instead of documenting the general effect.

Following this logic, one

interesting question is: Do consumers rely heavily on country information in the

Internet environment? This paper attempts to investigate the answer to this question
and related issues.
Another study which further induced the researchers to opt for this variable in
the research was, THE TYRANNY OF THE BRAND, in which it was stated
that;
Implicit within the images and the lifestyle that they depict involve the value system
that comes packaged for consumption. Essentially these ads, as well as other luxury

ads, say to consumers to purchase the item and be associated with the type of people
or group depicted in the ads. The brands create a world that had been forbidden or
unaffordable to local consumers ...until now. Analyze advertisements for luxury goods
and you will see similar coded signals of affluence and social status. In order to
reinforce the illusion of exclusivity, luxury brands exude a message denoting that elite
membership and respectability can only be bought through the ownership of particular
expensive status props and other vulgar displays of wealth.
To be fair to advertisers, these ads also provide consumers a fantasy around the
product of quality and exotica through images of what successful people in foreign
lands use and purchase. It would seem reasonable that ads for foreign wines or foreign
watches should depict the main and original customer base of these products foreigners. However, a residual effect and underlying theme that resounds through
advertisement in Hong Kong reinforces both the fear of inferiority and the validation
of success though material consumption. Unfortunately, products do so through the
elevation of one ethnic group versus the implicit denigration of another.
The raw message states that foreign products and foreign people are better - local
products and local people are worse. Throughout most of Asia, the same message gets
echoed again and again: global brands vs. local brands, foreign education vs. local
education, and foreign workers vs. local workers. In many cases, particularly in very
poor countries, foreign products do provide better quality than local products. Local
consumers can even see qualitative differences themselves and form their own
opinions by testing or buying the products if they were not so blinded by the brand
message that advertising reinforces. What is lacking in local consumers however
versus western consumers is a healthy dose of cynical product skepticism and a
critical facility to decode and deconstruct product messages derived from decades of
being bombarded by modern advertising in the West. Local consumers develop brand
impressions with less defenses than westerners which in itself is not bad. However,
when the brand messages depict a hierarchy of self worth drawn by ethnic and
socioeconomic lines, than the ads become more than product pitches but a tyrannical
arbitrator of value systems
4. DEMOGRAPHIC VARIABLES:

The choice of demographic variables like age, income, sex, etc. were based on the
study, Trade in Imperfectly Competitive Industries: The Role of Market Size
and Consumer Preferences by Devadoss and Lancloss. In this study it was
stated that;
Analyses of trade in imperfectly competitive industries often focus on the impacts of
policy measures, such as tariffs, subsidies, and quotas. Common assumptions in this
literature are that markets are of similar size and that consumers are indifferent
between domestic and imported goods. As a result of these assumptions and in the
absence of trade costs and other distortions, all firms have equal shares in all markets.
Yet, it is an empirical regularity that market sizes and consumer preferences are
dissimilar among trading partners. For example, the market for food products in the
United States is substantially larger than that of Canada, due to the much higher
population of the former. Regarding preferences, consumers typically prefer domestic
goods to imported products because of the preferences bias toward domestic goods.
As a result of these size and preference asymmetries, indigenous producers usually
dominate their domestic market. Trade costs (e.g., transportation costs and protective
barriers) further exacerbate the degree of market share asymmetry between domestic
and foreign firms beyond that implied by size and preference asymmetries.
Despite the empirical importance of market size and consumer preference
asymmetries, their potential implications for trade and trade policies have received
scant attention in the trade literature. Krugman and Venables both develop models that
incorporate size and preference asymmetries, and use these models to examine the
pattern of intra-industry trade flows. Both note that the country with the larger market
or the higher degree of preference for domestic goods will be a net exporter of
differentiated products. Lanclos and Hertel assess the impacts of a unilateral tariff
shock in a model that accounts for size and preference asymmetries among trading
partners. However, these studies do not examine the implications of size and
preference asymmetries on the impacts of trade policies. Furthermore, theoretical
analysis of trade in the differentiated products does not easily lend itself to assessing
bilateral impacts, and consequently, are unable to evaluate the role of size and
preference asymmetries in determining the distribution of gains and losses of trade
policies among trading partners.

In the empirical literature, observed differences in market shares between domestic

and foreign firms are generally attributed to production and trade costs, and are not
considered to reflect underlying differences in market sizes and consumer preferences.
Hence, these empirical models may overstate the impacts of a reduction in trade
barriers, if a significant portion of the market share difference is due to market size
and consumer preference asymmetry rather than to cost differences. Also, these
models may obscure important factors, which determine the distribution of trade
policy impacts (on production, trade, welfare, etc.) among trading partners. For
example, recent studies (e.g., Whalley; Nguyen and Wigle) suggest that over half of
the welfare gains from trade liberalization accrue to developing countries. Yet, the
literature is of minimal help in explaining why this pattern of welfare distribution is
observed.

THEORETICAL FRAMEWORK
As we have identified the variables effecting consumer preferences for foreign goods
over domestically produced products, from the literature review. So, for simplicity we
can explain the effects of these variables on consumer preferences through a
theoretical framework. In this theoretical framework, the dependent variable is the
consumer's preference for a product made in Western countries relative to those made
in Pakistan. This variable is likely to be influenced by ethnocentrism (Shimp and
Sharma, 1987), by susceptibility to interpersonal influence (Bearden, Netemeyer and
Teel, 1989), the conceptual meanings of conspicuous consumption (Marcoux,
Filiatrault and Chron (1995), and by demographic variables (Bar-Ham, 1987), which
are treated here as the independent variables, having an effect on the dependent
variable.
In addition, the influence of socio-economic variables (demographic variables) such
as age, income, and sex are also taken into account, as well as previous buying
behavior. Age will influence preference if consumers are young, adults more open to
changes and Western influences (Bar-Ham, 1987). Income is influential because of
its link with discretionary income, hence to the consumer's capacity to buy or not to
buy luxury goods. Sex is often an important exploratory variable linked to preferences
towards the purchase of various products. Finally, previous buying behavior is
included as past experience may influence actual and future preferences of consumers.

After analysis of the previous literature review we have come to the conclusion that
the variables under study do have a relationship between them, but this is of an
indirect nature, which means that each variable can affect the preference of consumers
independently, although if analyzed as a whole they will not negate each other.

ETHNOCENTRISM

SUSCEPTIBILIT
Y TO
INTERPERSON
AL INFLUENCE

Absence
Of
Patriotis
m
CONSUMER
PREFERENCES FOR
FOREIGN GOODS

CONSPICUOUS
CONSUMPTION

Brand
Reputatio
n
Countr
y of
Origin

Advertiseme
nt
DEMOGRAPHIC
VARIABLES

HYPOTHESIS DEVELOPMENT
From the above stated theoretical framework we are in a position to construct three
main hypotheses. These are:
Ethnocentrism is present in consumers' preferences towards products of
Western relative to Pakistani origin.
Susceptibility to interpersonal influence is present in consumers preferences
towards products of Western relative to Pakistani origin.
Conspicuous consumption is present in consumers preferences towards
products of Western relative to Pakistani origin.

METHODOLOGY
It was our aim to perform a descriptive study on the main variables, which had an
effect on the consumer preferences of the Pakistani consumer in relation to foreign
goods and services. Therefore a co relational investigation was carried out simply to
identify the important factors, which were associated with the issue.
The process by which research was carried out, firstly, a hypothetical analysis was
done on the issue at hand based on literature reviews, previous studies, and thesis
already available on the subject. Second, questionnaires were formulated. Researcher
in the city of Islamabad administered the questionnaire. The questionnaires were
designed in a manner that provided the maximum amount of information needed on
all four variables in question.
Due to constraints faced in the form of lack of time and finances, the sample
comprised of altogether 30 respondents with 18 respondents being female, and 12
male. We tried to keep the ratio of males to females equal so as to obtain a clear and
unbiased picture of how the population under study reacts to preferences over
products, but were unable to, again due to lack of time, which meant that preferences
could not be made. The lower class was not used in this study due to the lack of
information and interaction this group has with foreign products and services.

Due to constrain like lack of time and resources, specific foreign product groups were
not created. Instead, foreign products in general were analyzed irrespective of brand,
country of origin, and category.
Third, the information gathered from the survey was analyzed and compared to the
hypothetical analysis to see how the Pakistani consumer perceived foreign goods in
relation to domestic products in actual circumstances.
Finally, a conclusive hypothesis was constructed which tried to state as specifically as
possible, as to which variables had an effect on the issue.
The questionnaire consisted of 13 questions on purchase behaviors, sources of these
behaviors, perceptions of the luxurious/convenient character of the goods, attitudes,
and socio-demographic profiles of the respondents. Behaviors were assessed on a
ratio scale going from 1 (Always), 2 (Most of the time), 3 (Sometimes) and 4 (Never).
Respondents were asked to point out their preferences about products.
The following type of statements measured preferences or opinions about products:
"Buying foreign made products is un-patriotic therefore I do not buy them".
Respondents were asked to tick-mark their answers for each statement on a four-point
interval scale ranging from 1 to 4 where 1 (Always), 2 (Most of the time), 3
(Sometimes), and 4 (Never) were used. Thus, a low score indicated a preference for
Western country of origin, and a high score indicated a preference for Pakistani
country of origin. The attitudes towards ethnocentrism, interpersonal influence
susceptibility, the meanings of conspicuous consumption, and demographic variables
were all assessed, based on the answers gathered.

GRAPHICAL REPRESENTATION
Frequency Distribution Of Population Surveyed Based On Gender
The
MALE
FEMALE
TOTAL
questionnaire

FREQUENCY (f)
12
18
30

PERCENTAGE (%)
40
60
100

RANK
2nd
1st

was distributed
amongst a total
Male

of 30 people in

Fem ale

the city of
Islamabad. The
major portion of
the people who

filled out the questionnaire consisted of females, being 18 in number, while the male
population, which filled out the questionnaire, totaled 12.This came to around 60% of
females and 40% of males.
The following graphs have been created to help display an illustrated
representation of the overall frequency distributions of the numerical scale in
each question of the Questionnaire.
QUESTION # 01

Question no.
1

1 (f)
4

2(f)
5

3(f)
7

4(f)
14

14
12
10
8
6
4
2
0
1

W.M
3.03

In question number 1, the highest-ranking frequency was that of 4. That is, Never,
whereas the lowest rank went to 1, that is, Always.
QUESTION # 02
Question no.
2

1 (f)
3

2(f)
10

3(f)
12

4(f)
5

W.M
2.63

12
10
8
6
4
2
0
1

In question number 2, the highest frequency rank was of 3, which is Sometimes,

whereas the lowest rank was that of 1, that is, always.
QUESTION # 03
Question no.
3

1 (f)
9

2(f)
12

3(f)
7

4(f)
2

W.M
2.07

12
10
8
6
4
2
0
1

In question number 3, the highest frequency was of 2, that is, Most of the time,
while the lowest ranking frequency was of 4, which is Never.

QUESTION # 04
Question no.
4

1 (f)
7

2(f)
14

3(f)
6

4(f)
3

W.M
2.17

14
12
10
8
6
4
2
0
1

In question number 4, the highest frequency was of 2, that is, Most of the time,
while the lowest ranking frequency was of 4, which is Never.
QUESTION #05
Question no.
5

1 (f)
3

2(f)
6

3(f)
9

4(f)
12

W.M
3.00

12
10
8
6
4
2
0
1

In question number 5, the highest frequency was of 4, that is, Never, while the
lowest ranking frequency was of 1, which is Always.
QUESTION # 06
Question no.

1 (f)

2(f)

3(f)

4(f)

W.M

13

2.13

In question number 6, the highest frequency was of 2, that is, Most of the time,
while the lowest ranking frequency was of 4, which is Never.
QUESTION # 07
Question no.

1 (f)

2(f)

3(f)

4(f)

W.M

13

2.7

14
12
10
8
6
4
2
0
1

In question number 7, the highest frequency was of 2, that is, Most of the time,
while the lowest ranking frequency was of 1, which is Always.
QUESTION # 08

Question no.
8

1 (f)
14

2(f)
8

3(f)
6

4(f)
2

W.M
1.87

14
12
10
8
6
4
2
0
1

In question number 8, the highest frequency was of 1, that is, Always, while the
lowest ranking frequency was of 4, which is Never.
QUESTION #09
Question no.
9

1 (f)
2

2(f)
8

3(f)
13

4(f)
7

W.M
2.83

14
12
10
8
6
4
2
0
1

In question number 9, the highest frequency was of 3, that is, Sometimes, while the
lowest ranking frequency was of 1, which is Always.
QUESTION #10
Question no.
10

1 (f)
6

2(f)
13

3(f)
8

4(f)
3

W.M
2.27

14
12
10
8
6
4
2
0
1

In question number 10, the highest frequency was of 2, that is, Most of the time,
while the lowest ranking frequency was of 4, which is Never.
QUESTION # 11
Question no.
11

1 (f)
9

2(f)
12

3(f)
8

4(f)
1

W.M
2.03

12
10
8
6
4
2
0
1

In question number 11, the highest frequency was of 2, that is, Most of the times,
while the lowest ranking frequency was of 4, which is Never.
QUESTION #12
Question no.
12

1 (f)
6

2(f)
14

3(f)
8

4(f)
2

W.M
2.2

14
12
10
8
6
4
2
0
1

In question number 12, the highest frequency was of 2, that is, Most of the times,
while the lowest ranking frequency was of 4, which is Never.
QUESTION # 13
Question no.
13

1 (f)
9

2(f)
13

3(f)
3

4(f)
5

14
12
10
8
6
4
2
0
1

W.M
2.13

In question number 13, the highest frequency was of 2, that is, Most of the times,
while the lowest ranking frequency was of 3, which is Sometimes.
Scale:
Always

1.00 1.74

Most of the time

1.75 2.49

3, 4, 6, 8,10,11,12,13

Sometimes

2.50 3.24

1, 2, 5, 7, 9

Never

3.25 4.00

Always
Most of the Time
Sometimes
Never

Interval
1.00-1.74
1.75-2.49
2.50-3.24
3.25-4.00

(f)
8
5

The above-mentioned scale is a representation of all the questions in the questionnaire

in an interval scale format. That is, Most of the time lies in the interval scale of 1.75
to 2.49, and 8 questions were found to be lying in this interval. In the same way the
rest of the questions have been categorized. The deduction that can be made from this
scale is that the maximum number of questions were found to lie in the Most of the
time interval range, thus most people checked this value in the questions.

RESULTS & FINDINGS

After extensive analysis of the data collected from the questionnaires, the researchers
are in a position to interpret the data into a clear and concise form in order to answer
the hypothetical statements derived earlier.
These questions were designed to see how much importance Pakistani consumers put
on ethnocentrism when they bought products. That is, preference of Pakistani
products over foreign made ones was not considered as an important factor. This
shows us that Pakistani consumers are not very patriotic when it comes to buying

locally made products. This also shows that the Pakistani consumer is not too
protective of the local market, and does not get affected by foreign companies
dominating the local market. In other words, the Pakistani consumer is not very
patriotic, but is equally not very concerned with the country of origin of the product.
Thus, whether the product is made in the United States or Japan, it will not affect the
consumers decision.
From this analysis we can positively deduce that none of the dimensions of the
ethnocentrism variable affect the Pakistani consumer, when buying decisions are
made. Further more, it also shows that the Pakistani consumer does not put too much
emphasis on where the product is manufactured in the world.
Then people were asked whether influences like family, friends, ethnic background,
and current trends played a major role in buying behavior, most people responded by
saying that either most of the time or mostly sometimes did this factor play a role in
buying decisions. From within these four scalar dimensions the one which was seen to
play the most important role in buying decisions was current trends, leading us to the
deduction that although most Pakistani consumers are not extremely affected by their
surrounding environment when shopping, they do none the less keep current trends
and their social circles in mind when buying products, although not to a high degree.
Thus, the Pakistani consumer is to a certain level independent in making decisions
when out shopping, but does keep his social environment in mind, which may be
found to be true for the majority of people around the world. The difference here is
being that, whereas other peoples might be dependent on their social environment to a
high degree, the Pakistani consumer is dependent to a small level.
The deduction that can be made here relating to the second hypothetical statement is
that, the two dimensions of the interpersonal susceptibility do play a role in the
buying behavior of Pakistani consumers but not to a high degree. Rather, the local
consumer is independent of his social environment in his buying behavior, and does
not conform to social circles when making buying decisions.
Then we have to analyze the impact of Conspicuous consumption on the Pakistani
consumer. Majority of people were of the opinion that they viewed products that they
bought as having some emotional value. That is, most people bought products because
it made them feel good about themselves, rather than buying products for the
economic or practical functionality of them. Thus, leading us to the conclusion that
people in Pakistan do not tend to buy products in order to display their social status or

class, or, do not prefer to look upon such actions in a positive way. That is, most
consumers preferred to buy products based on their high prices and brand image
relative to reliability or practicality of the products. This shows that the Pakistani
consumer tends to view products according to their face value rather than their
features.
The deduction that can be made here is that the Pakistani consumer is a very
emotional consumer, who is easily moved by the brand image, or high social value
placed on the product. Thus, the third hypothetical statement has been seen to be true
in the Pakistani market but not to a high degree.

REFERENCES
1. Julie H. Yu and Albaum, (1998). Effects of Sovereignty Change on Consumer
Ethnocentrism

and

Product

Preferences

[On-line]

Available

http://www.yahoo.com
2. Lena Koneva, (2000). Russians Develop Preference for 'Homegrown'
Products [On-line] Available http://www.google.com
3. (Anonymous, 1990) Attitudes Toward The Purchase Of Foreign Products:
Extending The Model [On-line] Available http://www.yahoo.com
4. (Anonymous, 1990) Telemarketing To U.S. HISPANICS [On-line] Available
http://www.yahoo.com
5. E-Commerce and Country-of-Origin Effects. (2001, July 21) New York
Times, p.2.
6. (Anonymous, 1999) The Tyranny of the Brand [On-line] Available
http://www.yahoo.com

7. Devadoss and Lancloss, (2001). Trade in Imperfectly Competitive Industries:

The Role of Market Size and Consumer Preferences [On-line] Available
http://www.wisenut.com

CONCLUSION
The final conclusion that can be made after analyzing the data collected and
interpreting it is that, firstly no dimensions of the ethnocentrism variable are prevalent
in the Pakistani market. Second, all the dimensions of the interpersonal influence
variable are prevalent in Pakistan but not to a high degree. Third, all dimensions of
the conspicuous consumption variable are prevalent in the Pakistani market but again,
not to a high degree.
From this analysis we can say with surety that the Pakistani consumer is not neutral in
his preferences between buying foreign made products relative to those made
domestically. The consumer does not bring the country of origin dimension into
question when buying products, and would not show preference when buying a
product made in Europe, relative to products made in Japan, although some
preference would be shown between products made locally as compared to those
made abroad, only because the image of domestic products have been tarnished due to
lack of advertising and ability to compete on an international scale. Consumers in
Pakistan buy products according to their emotional and social image, rather than
based on functionality or reliability. Thus, in other words, products are bought
according to their emotional value as compared to their economic value.