Inherent Indicators of Consumer Product Evaluation A Case of Mobile Handset in Karachi.

Inherent Indicators of consumer product evaluation: A case of

mobile handset in Karachi

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CHAPTER-1:

INTRODUCTION

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CHAPTER 1: INTRODUCTION

1.1 BACKGROUND

Since the advancement of technology, Mobile Handsets, a full- functional device of which, an

individual can use one frequency in terms of talking to someone and another, split frequency for

attending and listen to the other, while the caller and attendee can speak at once. But that was

just the start of mobile phones. Now the whole world has revolved with a 360 degree angle, and

in this era mobile phones are not only used as a communication tool, but as a music system,

camera, personal diary, internet, and any other gadget that once was completely separate. These

products are useful for everyone, regardless the age, gender or occupation. Infect, Cell-phones

has become a necessity for all. One looks at the increasing advancement of technologies with

such intensity and features of mobile phones, along with the growth of the entire cellular phone

industry. It’s apparent that the awareness of technical gadgets and the utilization of such high

tech mobile phones have been increasing. Various intrinsic and extrinsic characteristics may

influence consumers' brand evaluation1.

Consumers’ product evaluation process is a factor that was researched upon since a long time.

Cox 2was an investigator who stepped up to generate a theory which identifies the process of

consumer product evaluation. Ever since, researchers deliberately focused on the control of

various kinds of indications while conducting a brand evaluation research. Consumer’s

evaluation towards a product is based essentially on informational indications, which are further

dived into two, intrinsic and extrinsic indications3. The physical distinctiveness of a product that 1 (Teas & Agawam, 2000).2 Cox (1962)3 (Olson & Jacoby, 1972)

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creates an influence on consumers' insight and perception regarding a brand are the intrinsic

cues. The external or secondary distinctiveness of any merchandise, such as its image, price,

commitment or originating country that generates influence consumers' insight and perceptions

toward a brand are its extrinsic cues. Although, the intrinsic traits are foremost, essential as well

as prime factor of any trademarked product but investigators have discovered that there is strong

controlling potential of extrinsic cues existing to brand evaluation. Consumers’ evaluation of a

brand can be influenced by a number of different extrinsic cues. One of the researches has

exposed that extrinsic cues namely brand image, perceived originating country and assumed

quality show an encouraging and vital influence regarding the brand evaluation by consumers4.

Consumers relate the product with a range of informational cues and time and again

quality is reviewed along with the worth of a product on the support of such indicators. There are

a number of specific product traits which are its own while others are to the product external

features, such as the buyer’s awareness of price, store along with the recognition and objective

measures like quality.

Marketers are in search of a more effective way to handle and know about the informational

indicators of price and brand name to generate more useful and efficient performance in the

marketplace by both marketers as well as the consumers5. In past years, intensive efforts have

been made to broaden research past the assumed quality to price relationship in order to achieve

a better understanding and knowhow regarding the association of market indicators and product

liking.

44 (Parvin &Chowdhury,2006)5(Dodds, Monroe & Grewal 1991)

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1.2 PROBLEM STATEMENT

In the past, many studies have been taken place on finding and understanding the consumer’s

product evaluation through its interior cues and attributes. The consumer’s product evaluation of

beautification products in terms of Perceived quality, brand image, product price and CoO

resulted in the affirmative relationship with all the predictors excluding price6. Another study

contributed on the product evaluation of highly technological fashion products on a mobile

phone by the people of USA, it concluded that intrinsic and extrinsic motivation both play a vital

role in the consumer’s product evaluation7. Furthermore, another study was carried on extrinsic

and intrinsic product quality, loyalty and buying intension of PDO products which concluded

that there is an encouraging and noteworthy influence from the apparent quality associated with

the intrinsic attributes on the buying intension of PDO products. No study have been conducted

on the finding the factors that affect the most on consumers product evaluation of mobile phones

in Pakistan. To determine the factors that affect the perception of consumers while buying a

mobile phone, and identify which of the core indicators matter the most. Therefore, this study

will cover the segment of inherent indicators of consumer’s product evaluation of mobile

handsets in Karachi, Pakistan.

1.3 RESEARCH OBJECTIVES

The aim of the study is to determine the Inherent cues in determining a consumer’s

product evaluation of a mobile handset.

Another objective of this study is to determine the variable that is the most important

factor mobile handset’s product evaluation by consumers.

6Parvin. N& Chowdhury. H.K (2006)7 Watchravesringkan, et al (2006)

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1.4 RESEARCH QUESTIONS

Following are the two research questions of our study

1. What are the Inherent cues of product evaluation of a mobile handset?

2. Which is the most important factor in the product evaluation of mobile phones’ in

Karachi?

1.5 SCOPE OF THE STUDY

The implication of this study is that is determines the factor that leaves an impression on the

product evaluation of mobile phones by Pakistani consumers. This study takes place in the

largest and most economical city of Pakistan, i.e. Karachi. The study will help the mobile

manufacturers to understand the perception of mobile consumers of Karachi, Pakistan; and the

factor which they take as the most important and essential variable while purchasing a mobile

phone. It will also help the manufacturers and marketers assemble the thoughts or reinventing,

modifying and marketing cell phones in Karachi, Pakistan.

1.6 LIMITATIONS OF THE STUDY

There are some limitations to this study. The study is geographically located to a single city of

Pakistan, as it is only conducted in the city of Karachi. The number of respondents is relatively

less because of the time constraint and lack of monetary resources.

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CHAPTER- 2:

LITERATURE REVIEW

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CHAPTER 2: LITERATURE REVIEW

2.1. THEORITICAL BACKGROUND

Consumer’s Product evaluation model was developed by the researchers to understand that by

what factors, consumers evaluate a certain product. In this study, the factors have been divided

into two, intrinsic and extrinsic categories (Olson & Jacoby, 1972). Intrinsic factors include

quality and country of origin of the cell phone. And extrinsic cues are the Image, reputation,

brand name, loyalty of product that they purchase.

A strong loyalty shows a consumer strong brand equity. The building of strong

affirmative brand attitude commonly leads to the brand preference. Brand loyalty shows the

unwillingness to switch brands as Franzen (1999) has put forward the loyal brand user concept

which states high level of attachment with a brand and have almost no urge to switch. The

bonding which that he highlights is a fragment of equity towards brand, though it does not

necessarily be a function to the brand equity. Brand loyalty can be a part of habit or may be the

consequence of changing to a different brand is high. Sometimes it’s a worthless of an effort but

when a genuine preference is a reason towards brand loyalty it contributes to brand equity for

example Coca-Cola’s taste has become a sense of brand equity and loyalty.

Lindestad &Andreassen (1998) analyzed brand image being considered as a significant

feature effecting consumer evaluation of satisfaction, customer loyalty and the perception of

quality. Accepting this analysis, de Ruyter and Wetzels (2000) configures that brand image

contributes as an information indicator that is used to determine topic like assumed quality

intention and credibility by the consumers. Brand image is said to build the reputation of a brand

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or company and that positive reputation is a source towards positive brand image (Alessandri,

2001). Sen & Bhattacharya (2003) claims that the brand image helps in generating an attachment

of the company with the consumers.

Brand reputation refers to the opinion of a company‘s key traits and focuses on how the

company behaves and how it works (Balmer, 1998). A brand reputation can also be considered

as the degree of trust or mistrust in a company’s aptitude to fulfill customers’ need and hope on a

given aspect (Leblanc& Nguyen, 2001). Another researcher Fombrun (1996) contributes on the

subject that brand reputation is the on the whole, a complete standard by which an organization

is taken by its component. Balmer & Gray (1998) claims brand’s reputation effects the

inclination of people to offer or refuse dedication and support to the company as well as the

products. Furthermore, it is stated that for building consumers’ commitment towards the

company, brand reputation plays a very significant contributes a great amount.

Perceived Quality is considered as the capability of any commodity to fulfill a consumer's

wants and needs (William &McCarthy, 1991). Excellence and superiority of any brand can be

defined as the Perceived quality that satisfies perception of a consumer. Product’s durability,

precision, reliability, and other significant attributes are the finest indicator of quality. The

concept of perceived has established significant sensitivity in the marketing theories.8 Diverse

perception and beliefs of consumer’s regarding a brand depends on the high quality perception.

Thus, a brand may comprise quality attributes but if it’s unsuitable according to consumer insight

and beliefs regarding finest quality, it may not satisfy consumers' preference.

8; Olshavsky, 1985; Holbrook &Corfman, 1985; Chowdhury& Islam, 2003; Jacobson &Aaker, 1987).

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Brand name can also be known as its familiarity/recognition9 and it helps in measuring

consumer product evaluation by brand’s extensive awareness and the degree of it effects. The

brand name generally adds worth and value to its product and become a reminder to the

corporation or organization and product brands will be helpful in creating brand awareness.

Pawlish & Kowalczyk (2002) observed the existing competitive environment; a company’s

brand name is starting to be increasingly vital and significant as a source to be oppressed in

achieving supportable competitive edge.

Country of origin also acts as feature of the product in the same way as other product

attributes for its evaluation by the consumers. It is the country where the product's idea came in

to being, along with its manufacturing and design. (Chao, 1993 and Nakamoto and Nelson,

2003). Country of origin is an essential element in the assessment of a product by the consumers.

For some countries, consumer perception is not always the same i.e. it varies either as positive or

negative impact. The product may become favorable or unfavorable to consumers by the good or

bad image of its country of origin (Chowdhury, 2001). Finally country of origin may influence

the attention of the consumers that is paid to the product assessment.

2.2 EMPERICAL REVIEW

Munnukka. J & Jarvi. P (2012) investigated the formation of customer value of advanced

technology products and the effect of price-category using a sample of 453 respondents who

assume themselves as vigorous users of digital camera, digital cameras or advanced mobile

phones. They used quantitative approach, using interviews. Each interview was carried on

one of the product category, not all three. The variables of the perceived value of advanced

9(Pawlish and Kowalczyk, 2002)

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consumer products were intrinsic cues (Playfulness, Visual appeal, intrinsic enjoyment

Escapism,) and extrinsic cue (Efficiency, Economic value, Excellence). The data was

measured by performing t test through regression analysis and exploratory factor analysis.

The results concluded that consumers perceive the advanced technology’s both cues as equal

important although the intrinsic characters tics as a bit important factor. The study suggests

customer value is assembled on the five main factors products of escapism/intrinsic,

efficiency visual appeal, enjoyment, excellence, and price satisfaction of advanced

technology, contributing to customer value.

Altuna.O & Aslant. F (2010) examines product brand image’s brand extension effects by

using Cronbach’s Alpha coefficient. The variables of the study are general brand image,

quality, product brand image, fit, familiarity, attitude, and demographic characteristics. The

results explored product brand image contains contradictory effect on brand extensions,

whereas the gap decreases the negative effect of parent and extension brands.

Anisimova, T. (2007) empirically finds out the effects of corporate brand attributes on

behavioral and attitudinal loyalty of consumer by using data by 285 Australian automobile

consumers. Structural Equation and Cronbach’s alpha Modeling was used in the research to

establish corporate brand construct’s psychometric characteristics. The variables of the study

are brand benefits, corporate associations, corporate activities, and corporate personality.

Result of the study disclosed that most consistent and critical interpreters of both attitudinal

and behavioral loyalty are corporate values, functional consumer benefits and corporate

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brand personality. They suggested implicating the study in other industries widely employing

corporate branding strategy.

Hansen. F, Christensen. L. B, (2007) evaluated the Dimensions in the role of emotional

response strength and Consumer Evaluation of Corporate Brands using 2001-data, the 2005-

data, and both sets of data combined of 10 companies and a total of 237 respondents. They

have used quantitative approach with 38 item questionnaire. The study was evaluated using

five variables; credibility, competence/success, forcefulness, exuberance and

warmth/caring/sincerity. Conducting confirmatory principal component factor analysis was

conducted on the five variables confirming that perceptual dimensions remained same

despite of the respondents and time. A calculation of Catells S and congruency coefficients

between the 5 factors showed similar patterns in the two factor solutions. The study

concludes that the important variances in emotional response prospective for companies

maybe be evaluated in the case of cognitive evaluations whether intentionally or

unintentionally of the organizations along with the variables included.

Veale. R, Quester. P & Karunaratna. A (2006) investigated the role of intrinsic and extrinsic

cues of food products regarding price and country of origin to evaluate product by using

interviews with product experts on certain cheese and wine products which were frequently

consumed by Australian buyers. They used qualitative research design for the collection of

data for the study. They examined 2 focus groups for confirming the belief of Australian

consumers regarding price and country of origin being intensely analytical extrinsic traits

influencing quality for cheese and wine. The results indicated that the quality expectation of

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cheese is influenced by price and country of origin. Also, the intrinsic cue also added

significance to quality expectations of cheese.

Shang. R, Chen. Y and Hsueh-J. L. (2006) worked on the brand loyalty and value of

involvement in virtual consumer by using online survey of 316 respondents from Apple

computer users. They used qualitative research design 7-point semantic difference scale

using ten questions. The measurements of affective and cognitive connection were adopted

from the PII- the personal involvement inventory. For measuring the data collected, they

used varimax method to attempt principal components analysis. The study indicated that the

effect and cause of posting and lurking varied

Hamzaoui. L & Merunka. D (2006), evaluates the impact of country of manufacture and

design on consumer insights of bi-national commodities’ quality by using survey method on

a Tunisian market by 389 respondents on two product category (automobile and TV sets). It

was a quantitative research design and the data for the study was collected through

questionnaires. The data was measured by using multiple regressions Analysis. The variables

of the study were Country of manufacturing (COM) image, perceived product quality,

Country of design (COD) image and perceived fits. The results revealed that the significant

determinants of product evaluation are the country’s image, regarding both COD and COM

and its link with product category.

Huang et al., (2006) examined the effect of country of origin in Chinese consumers

amongst brand choices and preferences by using correlation technique. The variables of the

study are purchase behavior, product categories and COO effect. The results specified that

rising view that foreign brands do not really influence the Chinese buyers.

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Suntornnond. V & Phau. I (2006) examine the Fast moving consumer good’s Dimensions of

consumer knowledge and its influence on country of origin effects among consumers in

Australia. The technique they have used is Spearman’s rho correlation. The variables of the

study are Quality Value & Acceptability. The results specified that in evaluating beer even

though a weak indicator, country of origin affects Australian consumers

Parvin. N& Chowdhury. H.K (2006) investigated on the Effects of Extrinsic Cues of

Consumer Evaluations of Beautification Products using a data collection of 212 female

respondents from female students who have usage experience through multiple items. They

have used quantitative approach with four category of questionnaire, considering each brand

in this study. The questionnaire was 7-point Likert scales to measure the selected variables of

the study. The variables of the study were brand image, country of origin, perceived quality

and perceived price. They used Regression analysis and t-test for the measurement of results

of this study. The Results concluded that perceived quality, brand image and professed

country of origin had affirmative and considerable effect on product evaluation of

beautification products

Sigala. M (2006) explored upon the Preliminary findings from Greece regarding customer

value and mass customization application models in mobile phones services by using a

convenience sampling for collecting data regarding the customer value magnitudes alleged

by consumers of personalized mobile phone services in Greece by the younger technology

savvy and seeking generation. The sample size was of 327 respondents between the ages of

15-25 years from three shopping mall visitors located in Thessaloniki, Greece. The variables

of the study were Functional-convenience value, Epistemic value, Social value, Conditional

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value, Emotional value, Control, freedom of choice value, Monetary sacrifice and Non-

monetary sacrifice: technicality. They used Confirmatory Factor analysis for determining

convergent and unit-dimensional measured by items. Results of the study concluded that

Mass Communication strategies are customer centered are a vital factor for the customer

value dimensions. The companies must influence the customers to get drawn in and devote

time and effort in adding importance and preposition in process for generating personalized

services so that companies could point out and provide improved values to the customers.

Watchravesringkan, et al (2006), investigated the role of extrinsic and intrinsic motivational

factors in consumers’ adoption of highly technological fashion products by using a

convenience sampling, of students between the ages of 18 to 26 years old from a university

of USA. The sample consisted of 268 responses. They used a quantitative by using a

questionnaire that comprised of five major sections in which they asked about Prada Mobile

phones. These questions were measured using Likert-type items. Scales comprised of seven

items in total. The variables of the study are perceived fashion ability, Perceived usefulness,

Purchase intentions, and Perceived innovativeness, Perceived ease of use, Utilitarian attitudes

and Hedonic attitudes. They performed Confirmatory factor analysis (CFA) on all seven 24-

item constructs using LISREL 8.54. Results of the study concluded that multi-dimensional

nature of consumer’s intrinsic motivation i.e. perceived innovativeness and perceived fashion

ability and extrinsic motivation i.e. supposed ease of use and supposed usefulness drives the

consumer intention to buy highly technological fashion product.

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Souiden et al (2006) empirically finds out the effect of product evaluation by consumer’s on

corporate branding dimensions by using a data of 218 American and Japanese consumers,

general linear model analyses and structural equation modeling (SEM) used to test

hypotheses. They have used a four-point Likert scale, and data were examined mainly

through SEM using SPSS 11.0 and AMOS 4.0. The variables of the study are the effects of

the corporate name recognition (CON), the corporate reputation (CRE), the corporate image

(CIM) and the corporate loyalty/commitment (CLO). Result of the study concluded that the

corporate name has significant impact on corporate image and corporate reputation showed

noticeable effect on corporate loyalty. The corporate reputation is also determined as a

negotiator of the effect of consumers’ product evaluation through corporate image

Fandos. C and Flavia´n. C (2006) empirically find out an analysis for a PDO product of

intrinsic and extrinsic loyalty, quality attributes and buying intension by taking personal

interviews with 251 consumers. They have used qualitative approach based on a group

dynamic to quantify the diverse thoughts. The variables of the study are quality, customer

loyalty and buying behavior. Results indicated a positive and considerable influence from the

supposed quality linked with the intrinsic quality of a traditional food item on consumer’s

buying intentions.

Paswan.A, Sharma.D(2004) studied emerging franchise market through Brand-country of

origin (COO) knowledge and COO image by using ANOVA. They use COO-similarity,

COO-product characteristics, COO-people, COO-product negativity, COO-product and

COO-market strength as variables of the study. The results indicate that precision of brand-

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COO knowledge is positively allied to COO image. Imprecise brand-COO knowledge

contributes to a negative as well as a confusing image regarding COO. Study exposed that

positive attributes about a product of a country leads to positive perceptions about that

country10

Boon et al (2004) studied the impact country of origin in low-involvement products by

using data from 236 Singaporean consumers. They have used ANOVA. The variables of the

study are Country of origin, product evaluation and COO effects, Consumer ethnocentrism,

and other extrinsic cues. The results indicate that COO effects when consumers estimate low-

involvement commodity but, in the existence of extrinsic indicators such as brand and price,

the impact of COO is relatively low and brand becomes the most influencing factor.

William B Dodds (2002) empirically finds out the effect of objective and perceived market

indications on consumer product evaluation. The study is consist of qualitative approach

which uses a method of 2x2x2 factorial design to analytically examine the interfacing effect

of objective information such as brand name and price in market indicators in product

evaluation theory. The study concluded that the brand effects aren’t changed by the quality

information.

O' Cass. A, Lim.K (2001) studied the assessment of culture of origin versus country of origin

for the consumer brand classifications by using the chi-square test. The variables of the study

are COO effects & brands, & culture of brand origin. The results show that consumers

eagerly identify the cultural origin of brands.

10(E.g. Hong and Wyer, 1990; Gurhan-Canli and Maheswaran, 2000; Lecrec et al., 1994).

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AcebroÂ n. L. B & Dopico. D. C (2000) explored the empirical application of beef regarding

the importance of extrinsic and intrinsic cues to expected and experienced quality of 239

households from La CorunÄ a. mixed research approach was used to collect the data for the

study. Qualitative research included reviews of previous research and expert interviews;

whereas quantitative approach included questionnaires on 13 items. The variables of the

study are: Color, Freshness, Price, Visible fat, Designation of origin, Promotion,

Presentation, Juiciness, Tasty, Tenderness, Expected quality, Perceived quality, Experienced

quality. The data was measured by using Regression and co-relation analysis. The outcome

of the study were that consumers evaluated experienced quality during consumption on the

basis of expected quality and its attributes such as taste, tenderness and juiciness,

substantiating or else contradict their formerly shaped perceptions.

Piron.F(2000)studied the consumers' perception regarding the conspicuous products by the

country of origin effect on purchasing intentions using ANOVA. The variables of the study

are price, versatility, appearance, performance, reliability and others. The results indicate that

a product's COO can be credited as a weak factor in purchasing products, while during the

purchase of luxury items it sets as an important variable of measurement.

Yong Zhang (1996) studied the influence of product types, culture and product presentation

format by using repeated-measure MANOVA to determine the product attitude and

evaluation data. They took their dependent variables as durable and non-durable products

and independent variables as the presentation format and country. The study exposed

contradictory results about the weight of culture on Chinese Consumer’s supposed Country

of origin.

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Mc Cormik H and Livett C investigate upon examining the impact on young consumer online

behavior by the presentation of fashion garments. The study conducted 12 interviews,

without pilot’s studies in about an hours’ time. They have used qualitative approach for

utilizing both photo-elicitation and projective technique. The variable of the study is

enhancing retail performance and customer satisfaction. The result of the study concluded

recognize the web experience features that help the interaction between fashion garments

online and the consumer.

Schweiger G, Otter T, Strebinger A, empirically finds out the impact on product evaluation

by the country of origin and brands and the implication on the destination. The study consists

of qualitative approach in which 1000 candidates were selected. The variables of the study

are food, clothing, electrical items, hygiene items, car and car tires, personal computer and

computer diskettes the study concluded that in USA made in Russia attitudes for lesser

quality but very reasonable price products also based on schema theory provides model of

cognitive structure.

Lee.M and Lou.Y, empirically finds out the consumer reliance on product evaluation by

Inherent cues using 229 students. They used a quantitative research design using

questionnaire on two product categories (Shoes and TV sets) the variables of the study are

Product Familiarity, Involvement and Price reliance schema. The data was evaluated by

using regression analysis and co-relational analysis. Result of the study concluded that

enduring involvement, price reliance schema and product familiarity carry a significant

weight on the customers utilization of extrinsic cues.

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Danesh S N, Nasab S A, Ling KC, empirically finds out the study of customer satisfaction,

customer trust and substituting hurdles on customer retention in Hypermarkets of Malaysia

the study in conducted 150 questionnaires the study is consist of quantitative approach in

which it helped the researcher explore the facts of the observation and by using the

hypothetical- deductive method in empirical evidence and conducted customer retention and

developed high extent literature of the topic. The research concluded that the customer trust

and customer satisfaction and substituting hurdles are completely related to Malaysian retail

market’s overall customer retention

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CHAPTER- 3:

METHODOLOGY

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CHAPTER 3: METHODOLOGY

3.1 RESEARCH APPROACH

The proposed research is established by quantitative approach which is about defining a market

and gathering data with that market. Most of the data required market share, size of the market,

its growth as well as the perception. In market research, therefore, a wide use is made of

sampling from which, information about the market can be drawn through careful design and

analysis. Hence, this research adopts a ‘scientific approach’.

3.2 RESEARCH PURPOSE

The research purpose that has been used is Explanatory. It helps in the justifications of the nature

of certain relationships in which we find out the relationship between key variables that are

clearly defined. To understand the relationship that exists between them, a hypothesis testing is

being used by the researcher.

3.3 RESEARCH DESIGN

Co relational design is used as a method for this research. This research is the organized study of

relationships among two or more variables. Data is collected from several variables and

correlation statistical techniques are then applied. A positive correlation means the association of

superior values of one variable with the greater values of the other determinant(s).Values near to

zero show no or almost no correlation of either kind or 0 shows no correlation. A negative

correlation means relationship of greater values of a variable with the lower values of the

other(s). Correlation can fluctuate from +1 to -1. Values that are near to +1 show a greater level

of positive correlation, and values near to -1 show a greater level of negative correlation.

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3.4 DATA SOURCE

In this research, the data has been gathered through primary sources by using five point Likert

scale. Primary sources are the original data collected by the participants or observers for a

particular research. The information can be collected through sources such as interviews,

experiments, surveys etc.

3.5 TARGET POPULATION:

The population of the proposed research is the youths (aged between 16 to 30 years) that are

users of mobile handset from different locations in Karachi.

3.6 SAMPLE SIZE

In order to determine the consumer evaluation of mobile handset in Karachi, the general sample

was composed of about 300 respondents to participate.

3.7 STATISTICAL TECHNIQUE

For data interpretation, factor analysis and regression technique has been used. It is the statistical

procedure that is used to measure the association between an independent variable and dependent

variables. Regression analysis aids to recognize how the effect of change of independent variable

to the dependent variable, while the other predictors are held constant.

3.8 SAMPLING TECHNIQUE

Convenience sampling is used as a sampling technique for this research. In this sampling

technique, the accessibility or availability of the researcher is dependent partially or entirely

upon the designated applicants. Least efforts are taken in this model to confirm the model is

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demonstrative of the population. These models are suitable for restricted populations and

exploratory research11.

3.9 HYPOTHESIS

Ho1: Brand Name has insignificant impact on Product Evaluation.

Ho2: Brand Image has insignificant impact on product Evaluation.

Ho3: Brand Loyalty has insignificant impact on Product Evaluation.

Ho4: Brand Salience has insignificant impact on Product Evaluation.

Ho5: Country of Origin has insignificant impact on Product Evaluation.

3.10 MODEL

CPE= α+β1 (BN) + β2 (BI) + β3 (BL) + β4 (BS) + β5 (PCOO) + e

Where;

CPE stands for Consumer Product Evaluation, BN stands for Brand Name, BS stands for

Brand Salience, BI stands for Brand Image, BL stands for Brand Loyalty, PCOO stands for

Perceived Country of Origin.

11(Stevens 1996)

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3.11 VARIABLE DESCRIPTION

Brand Evaluation:

Model was developed by the researchers to understand that by what factors, consumers

evaluate a certain product. In this study, the factors are divided into two groups, i.e. intrinsic

and extrinsic12. The quality and country of origin of the cell phone are the Intrinsic factors.

And extrinsic cues are the Image, reputation, brand name, loyalty of the cell phone that they

purchase.

Perceived Country of origin:

It shows the "made in" appearance of a product, here cell phone. It relates to the consumers’

&businessmen attachment regarding reputation and the stereotyping of the mobile phone

while purchasing it.

Brand Salience:

Brand Salience is the quality of a product that attracts others towards itself. Here the items

are used from reputation and quality of a brand that shows the salient features of a mobile

handset.

Brand Name:

Whether a consumer takes purchase decision on the basis of brand name or any other factor

is most significant for them.

Brand Image:

It is the impression of a specific cell phone in the mind of consumer.

12(Olson & Jacoby, 1972)

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Brand Loyalty:

How much a consumer is faithful to a particular brand of a cell phone?

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CHAPTER – 4: DATA ANALYSIS

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4. Data Analysis

In this chapter, the data that was gathered will be structured in some series. Data will be

examined by applying various tests on SPSS.

4.1 Reliability

Reliability Statistic Test is applied on the data to verify the Data reliability. The questionnaire

considered for the study contains 24 items. These items include both, dependent and independent

variable. SPSS software is used to apply reliability test. According to the consideration, the value

of Cronbach’s Alpha should be greater than 0.5 or 50%. The value of Cronbach’s Alpha

according to this study is 0.861 or 86.1% and this shows that the reliability of the data must be

accepted.

Table 4.1

Reliability Statistics

Reliability Statistics

Cronbach's Alpha N of Items

.861 24

4.2 Factor Analysis

Table 4.2.1

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .785

Bartlett's Test of Sphericity Approx. Chi-Square 1241.938

df 190

Sig. .000

According to the constraint, the value of alpha should be greater than 0.50. In the above table and

since the value of Cronbach’s alpha of this study is greater, thus showing reliability of data. The

result also verifies that the values of alpha for both, the dependent and independent variables, is

greater than 0.50. Though for the value of KMO, the results reveals a 78.5 % variance of the

independent variable, since the value of KMO if independent variable is 0.785.

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Table 4.2.2

Rotated Component Matrix

Cronbach

’s alpha

Brand

Salience

Perceived

Country

of Origin

Brand

Name

Brand

Loyalty

Brand

Image

Produces the product is known for its high quality and services.

0.72

.451

Produced in good workplace environment. .589Has a good financial environment. .659Performs basic job very consistently. .531Input features are important to judge mobile’s ease of use.

.687

Battery time is important while deciding the brand for cell phone.

.653

Company producing the product is a matter of attention.

0.57

.675

Company producing the cell phone should be reliable.

.534

Producing country impacts on purchasing decision

.666

Name of brand must be well known.

0.66

.530Mobile phone must carry the name of the company.

.686

Uses only certain brands of mobile phones. .660Brand names kept for all cell phone within a company.

.624

Brand name partly represents lifestyle. .516Have a fondness and emotional feeling for the brand. 0.53

.768

Preferences are not given to the new brands. .318Only used a single brand of mobile phone. .650Latest brands are chosen.

0.54.494

Brand should be innovative. .596Brand should be successful. .382

In this table, factor result represents the accuracy of independent variables of the data. The first

factor, “Brand Salience” has six items and these items contain a 0.72 value of alpha. The second

factor, “Perceived Country of Origin” has 3 items and contains a value of alpha of 0.57. In the

third factor, “Brand Name”, there are five items and the value of Cronbach’s alpha of these items

is 0.66. The fourth factor, “Brand Loyalty” contains three items having a value of alpha of 0.53

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and in the last factor, “Brand Image” also contains three items and the value of alpha of these

items is 0.54.

Table 4.2.3

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.753

Bartlett's Test of Sphericity Approx. Chi-Square 249.135

Df 21.000

Sig. .000

The above table shows the KMO value of the dependent variable of the study. The KMO value is

0.753, revealing a variance of 75.3 %

Rotated Component Matrix

ItemsCronbach’s

alphaProduct

Evaluation

Product should always outperform at any situation.

0.794

.764

Product should have advanced technology. .708Product has smart features than others. .694Product should be user friendly. .781

In this table, the factor represents the accuracy of the dependent variable of the study. The

dependent variable, “Product Evaluation” contains four items and the value of Cronbach’s Alpha

of these items is 0.794.

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4.3 Regression Analysis

Table 4.3.1: Regression Coefficient (Product Evaluation)

Model Β t p VIF(Constant) .012 .048 .961

BN .109 2.113 .036 .048BI .153 2.295 .023 2.113BL .041 .880 .379 2.295

PCOO .333 6.175 .000 .880BS .296 6.715 .000 6.175

Adj. R Square = .518Sig = 0.000

F- Statistics =

59.066

The table 4.3.1, reveals a statistics of all variable both independent and dependent variables with

their beta value, co-linearity value, significant value. The value of β illustrates the nature of

relationship existing between the variables (dependent and independent). The positive value of β

indicates an existence of positive relationship between independent and dependent variable and

the negative value of β represents s negative relationship between independent and dependent

variable. In above table Brand Name, Brand Salience, Perceived Country of origin, and Brand

Image are positively impacting on Product Evaluation whereas, Brand Loyalty carries a negative

impact on Product Evaluation. Β value is used to form regression equation which is:

Product Evaluation = 0.012 + 0.109 (Brand Name) + 0.153 (Brand Image) + 0.0.041

(Brand Loyalty) + 0.333 (Perceived country of origin) + 0.296 (Brand Salience).

The t value in table 4.3.1 shows the relative importance of each variable in above model. P value

indicates the significance of each variable. In above table values of Brand Name, Brand Salience,

Perceived Country of origin, and Brand Image variable are less than 0.05 which means each

variable have a significant effect on Product Evaluation, whereas value of Brand Loyalty

variable is greater than 0.05 which indicates that this variable has an insignificant effect on

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Product Evaluation. VIF value illustrates the coefficient of multiple co-linearity which means

variables are greatly connected with each other. When two variables are highly correlated it

means both variable are presenting similar trend and both are presenting alike information. When

the value of VIF is greater than 10, multi co-linearity exists. In above table the VIF value for all

variables are less than 10, indicating the variation in value of any variable does not influence on

values of other variables. Value of R2 in above table shows adequacy of model with is 0.518 that

shows independent variable (Brand Name, Brand Salience, Perceived Country of origin, Brand

Loyalty and Brand Image) can predict 51.8% of variance in dependent variable (Product

Evaluation).

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CHAPTER 5CONCLUSION

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5.1 Conclusion

Consumers evaluate the products after and before experiencing it. This study recognized the

inherent indicators of how consumers evaluate the mobile handsets in Karachi. For this purpose,

a likert scale questionnaire has been designed and filled by the respondents aged between 16-30.

The variables used in this research are Consumer Product Evaluation as dependent, while Brand

Name, Brand Image, Brand Loyalty, Brand Salience, and Perceived Country of Origin as

independent variables. The data was collected by 291 respondents.

There are many features that have impact on consumer purchase decision. In order to study these

factors different tests has been applied after the data collection by using SPSS software. Through

this software, initially,the reliability statistics has been applied to ensure the reliability of the

data; then applied factor analysis to check the value of Kaiser-Meyer-Olkin (KMO) test, and also

check the items which include in the instrument, whether these are in appropriate form or not.

Finally, multiple linear regression tests are applied to discover the factors that have the most

effect the consumer purchase decisions. After the complete analysis, the research results

indicated that there are positive impacts of all the variables towards the Product evaluation with

the exception of Brand Loyalty.

5.2 Recommendations

The objective of this study is to identify and discover that which brand indicator mostly effects

the consumer’s evaluation of the product. The result of the research reveals that brand name,

brand image, brand salience and perceived country of origin are the most effective indicators that

can influences the product evaluation criteria of customers while purchasing mobile handset in

Karachi. Hence the mobile phone company may work on these attributes of the brand to improve

their sales. Whereas it seems that brand loyalty does not influence the criteria of product

evaluation. Although brand loyalty is an important factor in the purchase of electronics however

in this technological era with mobile phone comprising many features and styles, brand loyalty is

not found in the mobile phone consumers of Karachi. The following recommendations are

analysis from the research:

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The mobile phone makers and policy makers should encourage branded mobiles which

carry a reliable country of origin.

The cell phone makers should inbuilt such salient features in their product that would

attract customers and enhance their sales.

The marketers must create such an image of their product (mobile phones) relating to its

innovation and successfulness that would temptation towards their brand.

The marketers must create such a brand name that represents a life style of the customers.

5.3 Future Research

It is recommended that the research should not only be done in Karachi but it can take

place in all parts of Pakistan

It is also recommended that the number of respondents should be increased for enhanced

results as mobile phones are used by almost everyone nowadays so more views of the

people can be predictable.

It is also recommended that the respondents should not only of the restricted ages.

It is also recommended that the more financial resources must have spent on this research

so the research can also take place in some other countries of the world.

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Inherent Indicators of Consumer Product Evaluation A Case of Mobile Handset in Karachi.

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