DOES COUNTRY OF ORIGIN MATTER TO PURCHASE INTENTION OF LOCAL AND INTERNATIONAL COSMETIC AMONG WOMEN
CUSTOME
ROBITAH BINTI ABU
SESSION : SEM 1 2015/2016
No 2 Lorong Mewah 15, Bandar Tun Razak Cheras, 50672 Kuala Lumpur
“It is hereby I already read this study and for my opinion this study is enough based on the scope and the quality for the purpose Degree of Bachelor of
Marketing Management”
Signature: ……… Supervisor: Ahmad Sharifuddin bin Shamsuddin
DOES COUNTRY OF ORIGIN MATTER TO PURCHASE INTENTION OF LOCAL AND INTERNATIONAL COSMETIC AMONG WOMEN
CUSTOME
ROBITAH BINTI ABU SX105392HFD04
A thesis submitted in fulfillment of the requirement for the award of the Degree for Bachelor of Management (Marketing)
Faculty Management and Human Resource Development Universiti Teknologi Malaysia
“I declare that this entitled ‘Does country of origin matter to purchase intention of local and international cosmetic among women customer’ is the result of my own research except as cited in the references. The thesis has not been accepted of any degree and it not currently submitted in candidature of any other degree “
Signature: ……….
Name : ROBITAH BINTI ABU
ACKNOWLEDGMENTS
Praise to Allah the Almighty, for his blessing and guidance for giving me the inspiration to embark on this thesis and instilling me the strength to finish my ‘Projek sarjana Muda Akhir’ SHD3812 . I would like to express my gratitude to who have helped me in one way or another in the planning, brainstorming, and writing and contributed to the completion of this project.
Firstly, big thanks are addressed to my thesis advisors Encik. Ahmad Sharifuddin for his comments, guidance and advaice in the preparation of this project. His knowledge and help has really been useful while making this thesis such his kind encouragements, generosity, and patience in providing valuable comments and recommendations on every earlier draft. Without him, this research would not have been successfully carried out.
ABSTRACT
ABSTRACT
TABLE OF CONTENTS PAGE
Declaration of Supervisor iii
Title of thesis iv
Declaration of Researcher v
Dedication vi
Acknowledgments vii
Abstract viii
Table of Contents x
List of Table xii
List of figures xiv
List of Syimbol xv
1.0 INTRODUCTION 1
1.1 Background Of The Study
1.2 Statement Of The Problem 3
1.3 Purpose Of The Study 3
1.4 Objective Of The Study 4
1.5 Research Questions 4
1.6 Significance Of The Study 5
1.7 Scope Of The Study 6
2.1 Overview Country Of Origin Effect 7
2.2 Coo Effect On Purchase Intention Of Local And International
Cosmetic Adoption 9
2.3 Country Of Origin On The Evaluation Of Products 10
2.4 The Role Of Com And Cob On Coo Effect 15
3.0 RESEARCH METHODOLOGY 17
3.1 Introduction 17
3.2 Research Framework 17
3.3 Respondents Instruments 18
3.4 Research Respondent Of Study 20
3.5 Research Procedure 22
3.6 Data Analysis 23
4.0 RESULT OF THE STUDY 24
4.1 Introduction
4.2 Analysis Descriptive of purchase intention on local and international cosmetic 25
4.3 Factor That Influence COO Effect 29
4.4 Frequency, Percentage, Mean and Standard Deviation
Toward Local & International Cosmetic. 35
5.0 DISCUSSION AND CONCLUSIONS
5.1 Introduction 37
5.2 Study Finding 41
5.3 Future Research Recommendation 41
REFERENCE 44
LIST OF TABLE
TABLE TITLE PAGE
Table 3.3.1 Number of Respondents Population and sample 4
Table 3.5.1 Rating scale category 4
Table 4.2.1 Frequency Distribution and Percentage of 15 Respondents on International cosmetic
Table 4.2.2 Frequency Distribution and Percentage of 15 Respondents onLocal cosmetic
Table 4.2.3 Frequency Distribution and Percentage of 15 Respondents onInternational cosmetic adoption
if local cosmetic have same price
Table 4.2.4 Frequency Distribution and Percentage of 16 Respondents onInternational cosmetic adoption
Table 4.3.1(i ) Observation of COO influenced by Country Image 16
Table 4.3. 1(ii) Observation of COO influenced by product knowledge 16
Table 4.3. 1(iii) Observation of COO influenced by patriotism 15
LIST OF TABLE
TABLE TITLE PAGE
Table 4.3.1 (iv) CHI - SQUARE TEST on factor that 35 influencing COO effect
Table 4.3 Frequency, Percentage, Mean and Standard
Deviation Distribution of Analysis According
53
Customer Purchase Intention Towards Local &
International Cosmetic
Table 4.4.1 Frequency, Percentage, Mean and Standard Deviation Towards the importance of COM and COB
LIST OF FIGURE
FIGURE TITLE PAGE
Figure 2.2 Research Model 53
Figure 2:3 Trusting Beliefs and COO Effect 53
Figure 3.2 Flowchart of the Research Framework 53
LIST OF SYMBOL
SYIMBOL
TM Telekom Malaysia Berhad
COO Country Of Origin
COM Country Of Manufacture
COB Country Of Brand
SPSS V20 Statistical Package For Social Sciences Version 20
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Refer to Erickson, G. M., Johansson, J. K., & Chao, P. (1984). Image variables in multi attribute product evaluations; before 1914, a product's origin was not a major issue. After losing in World War I, German exports have been obliged to take the English word “Made in Germany”. Country-of-origin mark was imposed as a punishment for German industry and a way to help consumers across Europe and North America to avoid the product from the
Former enemy. According to Lee, J. K., & Lee, W. N. (2009).
usually have positive feelings towards some countries for customized products such as shoes Italian, Japanese electronic appliances and German cars.
In these days buying trends have changed. Customers are more sensitive to the selection of products and know what they like to buy. Therefore, they do not buy without thinking and evaluate before making a decision. In choosing between foreign and domestic products, a lot of aspects to be considered before deciding to buy, there are several factors that influence consumers' buying intentions. Although there are many parameters to consider when they want to buy a product like brand, color and design, the consumers does not ignore extrinsic factors such as country of origin.
the product itself. Various elements have a relationship with the country of origin, such as the image of the country, patriotic and product knowledge.
1.2 STATEMENT OF THE PROBLEM
According to the sources, MIDA the Malaysian Industrial Development Authority, Malaysian consumers prefer to use imported cosmetic products compared to domestic brands. Thus the total sales local cosmetics are still relatively low compared to imported cosmetic. It is believed that imported products will remain in high demand, especially among middle-and high-income consumers because the standard of living in Malaysia has increased. Among issues that needed to be addressed concerned on the relationship between the purchase intention and product evaluation of COO that effect cosmetic usage, The whole process in cosmetic consumption also involved in knowing the degree or level of the consumer awareness towards the effects of extrinsic factors. Another important consideration is the role COM and COB is very much associated with the COO.
1.3 PURPOSE OF STUDY
1.3 OBJECTIVES OF THE STUDY
This study intends to achieve the following outcomes:
i. To uncovering the significance of COO effect on product evaluation for selection of cosmetics product among TM staff.
ii. To identifying multiple variables that explain COO effect on the TM staff purchase intention of local and international cosmetic adoption
iii. To reveal the relationship between the COB, COM and COO.
1.5 RESEARCH QUESTION
i. Does COO effect significance on product evaluation for selection of cosmetics product among TM staff?
ii. What are the variables that explain COO effect on the TM staff purchase intention of local and international cosmetic adoption?
1.6 SIGNIFICANT OF THE STUDY
According to the topic of study, we could know what are the variables that explain the COO effect on TM staff purchase intention of local and international cosmetic adoption. The significant here is we could know that Country of origin is actually are the influence of customer purchase intention with various extrinsic parameters that have an effect on this issue,
1.7 SCOPE OF STUDY
This research will be carried out upon approximately over 330 respondents in Telekom Malaysia Berhad at Menara TM, Jalan Pantai Bahru. My investigation focused on the population ranges from age 20 and above. Since the study is about COO effect on the TM staff purchase intention of local and international cosmetic adoption., so I decided to have groups of female as my respondents to give their opinion on local and international cosmetic product and will included from various background for more accurate data.
The method that I will be using to conduct this research by distribute questionnaire to the female respondents. They need to answer several questions that related to COO effect on TM staff purchase intention of local and international cosmetic adoption to fulfill the objectives and purposes of this study.
CHAPTER 2
LITERATURE REVIEW
2.1 OVERVIEW COUNTRY OF ORIGIN EFFECT
The same phenomenon also occurs among cosmetic users in Malaysia. The increasing standard of living among Malaysians women has also increased the level demand of the consumers especially in the urban areas; today they are demand about quality and safe cosmetic products. Malaysian consumers prefer to use imported skincare products compare to local brands as they associate them with higher quality than local brands. As the total volume produced by the local industry is still relatively low, imported products will continue to remain in high demand especially from the middle and high income earners.
A product attracts its image from a variety of sources of design, performance, brand and country of origin. COO is importance and can be understood when the product is introduced in a foreign country for the first time, or as a reference or as a unique selling preposition. COO effect is caused by the halo build, the country's image is converted to a product or because summary of the build. Positive image of the country may vary from product image with which the average user, and then this image may also facilitate the development of other domestic exports (Han Min, 1989)
COO can affects the basis of making conclusions without considering the quality of the product and other attribute information when the purchase decision does not involve a lot of effort. COO can activate concepts and knowledge that affect the interpretation of other available product attribute information. COO also acts as its products and for the assessment of the product in the case of products that require the search and higher throughput. COO effect can also be seen as a negative when the manufacturer is trying to hide it for fear of the creation of negative consolidation. Thus the names of countries responsible for integration add or subtract from the perceived value of the product.
AVON has a global operation today, it is still seen as an American brand, by consumers all over the world. So if country of branding can be taken as a logical extension to country of origin then country of branding would produce the same associations as those produced by COO. Brands incite beliefs, evoke emotions and prompt behaviors. Brands have social and emotional value. They enhance the perceived utility and desirability of a product.
2.2 COO EFFECT ON PURCHASE INTENTION OF LOCAL AND INTERNATIONAL COSMETIC ADOPTION.
Purchase Intention was analyzed using three dimensions of country perspective toward purchasing cosmetic products. Considering conceptual definition for the importance of intention, three components of country image, product knowledge and patriotism were included. The factors influencing the purchase Intentions correlation is present as below:
Figure 2.2 Research Model
* Source :Javadian Dehkordi, Graduate school of Management (GSM) Multimedia University-Malaysia
2.2.1 Purchase intention
COO PURCHASE
INTENTION
Purchase intention means deciding on action or actions that show a person's manners in terms of a specific product. Studies have shown that the purchase intention of customers for the product is determined by the attitudes and beliefs. Based on research done by Wang, C.L., D. Li, et al., 2012. Country image, product image and consumer purchase intention: Evidence from an emerging economy, purchase intent is “when we think about things and then we will buy." It’s also defined as emotional or perceived possibility of buying products promoted; furthermore, purchase intentions indicate the rank of loyalty to the product.
2.2.2 Country Image
Nagashima said in his journal a comparison of Japanese and US attitudes toward foreign products (1970) defined the country's image as the “stereotypical, image and position the buyers have in their minds about a country that special. There are many diverse works on this issue, which led to misinterpretations of investigators. Additionally, many countries are concerned about their image of product characteristics. The country's image is important as a brand image is explained as largely descriptive data and beliefs Nagashima also described the images as “people’s ideas about the products of a specific country". Competition has become tighter and, for being different from other competitors, country image is one the most significant factors which created a distinction between goods and services.
Correlations Country Image and Purchase Intention
There is a relationship between cognitive country image and purchase intention and also assume that the image of the country has indirectly persuaded on purchase intentions. When people are familiar with the product, they have a tendency to use country of origin as to the date of purchase intention. In this study we will find out there is a significant relationship between country image and purchase intention of cosmetic products image.
2.2.3 Product Knowledge
The knowledge of products described as memories in the minds of people and other scholars have added product knowledge related to the user's knowledge, awareness and self-assurance. Academic expert Ozer, M., 2011. Explained supposed that the knowledge of the client's product is one of the most outstanding approach that has an impact on all parts of the decision-making process. The different levels of product knowledge differ in their understanding and there is a better product knowledge called self- perceived knowledge has a direct positive relationship with purchase intention
Correlations Product Knowledge and Purchase Intention
Furthermore, country of origin is not a completely independent factor for products, For instance , Thailand is a least developed country, when people hear about a cosmetic product, unconsciously, a low quality product comes on their minds , but the handmade crafts of Thailand is very famous for its high quality and value . To put all things into consideration, the user's knowledge about the country of origin of the product can have a significant influence on their perception of the brand product ‘, which can be positive or negative. In this study we will unravel significant relationship between product knowledgeand purchase intention of cosmetic products image
2.2.4 Patriotism
Other independent variables have to think through in perspective coo is patriotic. Adorno, TW, E. Frenkel-Brunswik 1950 in his report 'authoritarian personality', discusses the healthy patriotic and ethnocentric when one loves his country and has a hunch about it, it's called ethnocentric patriotism report, but healthy people do not have prejudices. That has improved the patriotic consists of encouraging feelings of other people in the country identified. Patriotism is not associated with negative feelings. It is some exhilarating sense that people have about their own country and it is not to deny other countries. According to other researchers homeland and it is the ability to look across the border and are concerned to understand the benefits of a relationship with a personal reflection as well as all the emotional feelings towards one's country.
Correlations Patriotism and Purchase Intention
Malaysia showed that married Malays women have a higher tendency to be ethnocentric than men. The study also showed that Malaysians have a high tendency for local food but in contrast to the domestic cosmetics, cars and computers. Othman, MN, S. Ong, 2008. Demographic and Lifestyle Profile and Non-ethnocentric ethnocentric Malaysia City Guide. One of the most well-known instruments to measure consumer ethnocentrism is CETSCALE. Its has been tested by many researchers and have confirmed the validity and reliability in many countries such as Indonesia, Greece, Korea, Spain and Malaysia.
2.3 COUNTRY OF ORIGIN ON THE EVALUATION OF PRODUCTS
Figure 2:3 Trusting Beliefs and COO Effect
* Source: Sertan Kabadayi, Ph.D. Assistant Prof. Marketing Graduate School of Business Administration Fordham University
2.3.1 Trusting Beliefs COO
O
Product Evaluation
Purchase Intention Ability Belief
Trust can be defined as the willingness to rely on a exchange partner in which one has confidence, based on Moorman , Zaltman , and Deshpande , 1992 in his book ‘The perception of the reliability of the seller’. Most now agree that trust is a multidimensional construct with two inter-related component- trusting beliefs , and trusting behavior -willingness (to depend) . Trusting beliefs are the trustor’s perception that the trustee has the features that will benefit the trustor ( Mayer et al , 1995 ; McKnight and Chervany , 2001 ) . In other words, they collectively reflect the perception of the reliability of trust objects. Although many believe trust has been studied in the literature, the majority can be clustered into three trust concept: the ability, benevolence, and integrity
2.3.2 Benevolence beliefs
Refers to the confidence that the products have a positive orientation towards customers outside the egocentric profit motive and would not consider his own well-being and acting in their interests ( Mayer et al ., 1995). They show the extent to which individuals believe that a company wants to do good things not only maximize profits. A benevolent company would still not be seen acting opportunities by taking advantage to customers ( McKnight and Chervany , 2001). In contrast to the other two beliefs, benevolence reflects the perception of the willingness to engage in discretionary or philanthropic commitment to the customer.
2.3.3 Integrity beliefs
2.3.4 Ability beliefs
Reflects consumers' confidence in the firm or product ( Mayer et al . , 1995). They showed confidence about the firm's ability to perform the functions that have been specified. users have the ability beliefs about the product if they believe that product manufacturers have the skills, competencies and attributes that enable products which have an influence on some specific domain (Mayer et al , 1995 ) . Therefore, trust is domain - specific capabilities that are considered as highly competent in some area, affording that individual trust store on the tasks associated with the area.
2.3.5 COO Effect, Product Evaluation and Trusting Beliefs
The three trusting beliefs are related, yet distinct. Each belief captures some unique elements that can be trusted. Therefore, as a set, ability, benevolence, and integrity appear to explain most of the trust while maintaining parsimony. Both single - and multi- indicators - signals showed that the COO effects influence the assessment of individual products (see reviews of Bilkey and Nes 1982; Peterson and Jolibert 1995). However, there are differing views about how COO affects product evaluation.
the purpose of completeness we hypothesized a positive relationship between the COO and product evaluation.
2.4 THE ROLE OF COM AND COB ON COO EFFECT
Country of manufacture (COM) and country of brand (COB) play important role in consumer product evaluations of quality and decision making. But, academic and COO researchers are in disagreement regarding the supremacy of one over other. Han and Terpstra and Tse and Gorn, (1993) reported larger efect of COM on product evaluations than COB. Whereas, Hui and Zhou and Srinivasan et al. (2004) found that COB makes greater influence on product evaluations than COM when both the information presented simultaneously. As the importance of both the cues is evidenced in literature, the factors influencing importance of COB and COM image can add new insight to COO literature.
COM model. That means possible durability discounting for lower COM image is not a signifcant factor to the customers.
In technological superior, mainly manufactured goods such as electrical and electronic products, when customers evaluate the benefits of technology they consider COB images and not COM image. So, the combination of high image COB and low image COM can not harm the perception of customers about the advantages of technology. For Customers that consider to both COB and COM image for forming up their price perception of a product as the price level appears as a very important explanatory variable for both the models of this study. It is important to be noted for international marketers that by using higher COB image and lower COM image charging high prices may not be possible. Moreover, customers may ask for COM information when knowing about the price and then make their own evaluation regarding price acceptability.
CHAPTER 3
RESEARCH METHODOLOGY
This section discusses the methodology of the research. The main purpose of the research is to investigate did women customer consider that influence of COO effect when purchase the cosmetic products. In previous chapters, has been known that the location of the study area, namely Menara Telekom Malaysia Jalan Pantai Bahru. Therefore, in order to fulfill the purpose of the study, random sampling was chosen to carry out the questionnaire, some interview and observation of the staff in the area. The methodology of this study is important to ensure that this study can walk on smooth and thus able to obtain perfect results.
3.2 Research Framework
Before start the study analysis, the research planning should be planned and drafted to ensure the analysis process become smooth. Therefore, the research framework has been drafted as a guideline for the data analysis and to ensure that the researcher is able to answer the objectives and research questions for this study
3.3 RESEARCH INSTRUMENTS
3.3.1 Primary Data
In the questionnaire, there are three parts that have been made. The sections are as follows: -
• Part A: View on Use of local and foreign cosmetics
• Part B: View multiple variables that explain COO effect
• Part C: view of the importance of COO in the selection of cosmetics
In Part A
A view of Cosmetics: The main purpose is to examine public awareness among staff about cosmetics. Information on the selection of cosmetics is known. In addition, the percentage of local and international cosmetic use of the study area is also available
In part B
In Part C
The view of the importance of COO in the selection of cosmetics: in view the importance of COO effect in the selection of cosmetics. The main purpose is to examine public awareness among employees about the COO, COM and COB. Information on the selection of cosmetics does take into account the effect of COO.
To obtain the cooperation of respondents, each part will be arranged according to the requirements of the study. This will be facilitating the work of marking the answers by respondent. In part B and C likert scale used in this study using the following scheme:
Strongly Disagree ---► Strongly Agree
Figure 3.3 likert scale
*Source: Norazman et al. (2006).
3.3 RESPONDENTS OF THE STUDY
Level Job Title Gender Population Samnple
SK (Semi Skill) General Assistant
(Driver ,Tea Lady, Cleaner)
41 14
Leasing
Leasing 52 24
3789 2414 241 (F)
Table 3.3.2 Number of Respondents Population and sample
*source: HCSSO Personnel Data Services Telekom Malaysia Berhad
3.4 RESEARCH PROCEDURE
This is because the probability staff are in the office is high. Implementation of this survey was carried out for one month.
3.5 DATA ANALYSIS
A number of variables were taken to consideration to analyze the data. Data have been analyzed using Microsoft Word, Microsoft excel SPSS 20. In the analysis for this study, it involved descriptive statistics. Descriptive statistics were used to formulate and displaying the actual information obtained from the population in the study area. From there, a frequency analysis is carried out, where the percentage of responses is calculated and presented in table form. Next calculating the mean index used for comparison of data.
Assessment questionnaire is essential to assist in reviewing the level of staff awareness of cosmetic selection due to the COO effect. From the ratings obtained, it is used for various indexes mean for each question addressed to the Population, Which in turn will give the rating scale category index min, standard deviation, frequency, percentage and chi-square test.
No Objectives Analysis
1 Uncovering the significance of COO effect on product evaluation for selection of cosmetics product
Frequency
Percentage
Percentage
Table 3.5.1 Rating scale category
.
CHAPTER 4
RESULT OF THE STUDY
4.1 Introduction
Analyzing data and presenting the results of the study are based as in Chapter 1, where the objectives of the study must be achieved. The objective of the study was to uncovering the significance of COO effect on product evaluation for selection of cosmetics product among TM staff.
4.2 Analysis Descriptive of purchase intention on local and international cosmetic
4.2.2 Local cosmetic
Table 4.2.2 Frequency Distribution and Percentage of Respondents onLocal cosmetic
USING LOCAL BRAND
Frequency Percent(%)
Yes 72 35.0
No 64 31.1
Natural 70 34
Total 206 100
4.2.3 If Local cosmetic and International cosmetic have same price Table 4.2.3 Frequency Distribution and Percentage of Respondents on International cosmetic
IF PRICE SAME STILL PREFER INTERNATIONAL
Frequency Percent (%)
Yes 88 42.7
No 54 26.2
Natural 64 31.1
Total 206 100
4.2.4 If quality product better still coo matters
Table 4.2.4 Frequency Distribution and Percentage of Respondents on International cosmetic adoption if local cosmetic have better quality
IF QUALITY
PRODUCT BETTER STILL COO
MATTERS
Frequency Percent (%)
Yes 100 48.5
No 42 20.4
Natural 64 31.1
Total 206 100
4.3Factor That Influence COO Effect
4.3.1(i ) Table Observation of COO influenced by Country Image Does COO influenced by Country Image
Observed N Expected N
no at all important 13 41.2
less important 18 41.2
important 65 41.2
very important 75 41.2
extremely important 35 41.2
Total 206
4.3. 1(ii) Table Observation of COO influenced by product knowledge Does COO influenced by product knowledge
Observed N Expected N
no at all important 5 41.2
less important 17 41.2
important 58 41.2
extremely important 37 41.2
Total 206
4.3. 1(iii) Table Observation of COO influenced by patriotism Does COO influenced by Patriotism
Observed N Expected N
no at all important 16 41.2
less important 34 41.2
important 76 41.2
very important 46 41.2
extremely important 34 41.2
Total 206
4.3.1 (iv) Table CHI - SQUARE TEST on factor that influencing COO effect Test Statistics
Chi-Square 74.777a 108.757a 47.883a
df 4 4 4
Asymp.
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 41.2.
n= 206
From the observation table 4.3.1(i)(ii)(iii) we can see the factor that influencing COO effect are country image, product knowledge and patriotism. From this three factors we can see that product knowledge is a factor most favored by respondent with total score of extremely important, very important and important are 184 compare to country image and patriotism each get score 175 and 156.
H0 : country image, product knowledge and patriotism are independent (no association)
H1 : country image, product knowledge and patriotism are dependent
international
Table 4.3.2 shows the frequency, percentage, mean and standard deviation distribution of analysis in description to Customer Purchase Intention Towards Local & International Cosmetic among TM staff. This table is to analyzing the factors that are often taken into account by the user when selecting cosmetics product.
For the highest average statement is statement in question Q11, ‘Prefer international brands due to quality product ' with an average mean of 3.88 with a standard deviation of 1.111 From 206 respondents, out of 38 respondents (18.4%) of them choose neutral, 62 respondents (31.1%) agreed and another 77 respondents (37.4%) are strongly agree.
For the lowest mean average statement is at statement question Q12, which is about ‘Prefer international brands due to social status ', reached the mean average of only 2.64 with a standard deviation 1.067. From 206 respondents, 5.8% of the 12 respondents strongly agreed, 26 respondents (12.6%) agreed, 75 respondents (36.4%) neutral, 62 respondents (30.1%) disagrees and 31 respondents (15%) strongly disagree.
For statement Number Q9, that the statement about ' Prefer international brands due to customer preference ', roughly scored 3.43 of mean average with standard deviation of 1.074 Out of 32 respondents (15.5%) voted strongly agreed, 78 respondents (37.9 %) selected agreed, 51 respondents (24.8%) choose neutral, 37 respondents (18%) choose disagree.
For statement Number Q10, which statement ‘Prefer international brands due to price’, scored mean average of 3.09 with an average standard deviation 1.240, where 41 respondents (14.9%) have chosen strongly agreed, 27 respondents (13.1 %) picked agreed, 66 respondents (32%) chose neutral and 54 respondents (26.2%) chose the disagree.
4.4 Frequency, Percentage, Mean and Standard Deviation Towards the importance of COM and COB
4.4.1 Table Frequency, Percentage, Mean and Standard Deviation towards the importance of COM and COB in the selection of cosmetics among TM staff.
Table 4.4 shows the frequency, percentage, mean and standard deviation distribution of analysis in description to view of the importance of COM and COB in the selection of cosmetics among TM staff.
For the average statement is ‘country of manufacture important than COB’ with an average mean of 3.58 with a standard deviation of 0.948 From 206 respondents, out of 81 respondents (39.3%) of them choose neutral, 66 respondents (32%) agreed and another 39 respondents (18.9%) are strongly agree.
For the statement ‘country of brand important than COM’ reached the mean average of only 3.07 with a standard deviation 1.077. From 206 respondents, 8.3% of the 17 respondents strongly agreed, 52 respondents (25.2%) agreed, 90 respondents (43.7%) neutral, 23 respondents (11.2%) disagrees and 14 respondents (11.7%) strongly disagree.
This is an interval scale data. For the highest average country of manufacture important than COB’' had an average mean of 3.58 with a standard deviation of 0.948. This means that the response for the item distributed around the mean in the range of 0.948, which means that data is distributed among scores of 2.63 to 4.52 (‘3=natural’ to ‘5= strongly agreed’). For country of brand important than COM average mean with score of 3.07 with a standard deviation of 1.077. Data is distributed among scores of 1.99 to 4.1 (‘2=disagreed’ to ‘4= agreed’).
CHAPTER 5
DISCUSSION AND CONCLUSIONS
5.1 Introduction
revealing the relationship between the COB, COM and COO cosmetic adoption have been analyzed and evaluated in this study.
5.2 Study Findings
A survey was conducted in Menara TM Kuala Lumpur that is focus on the overall average and the percentage of each statement which analyzes the COO effect on product evaluation for selection of cosmetics product .
5.2.1 Discussion of the First Goal
From the results analysis obtained from Chapter 4, the first objective of the study was achieved. The first objective is to uncovering the significance of COO effect on product evaluation for selection of cosmetics product among TM staff. In Malaysia, most of dumping cosmetics on the market either in renowned supermarkets, supermarkets, boutiques, night market and is now the most popular cosmetics sold on the Internet such as Lazada, Zalora and 11street, or in social media like Instagram, Facebook, most have country of origin labeling. Does a user emphasizing the country of origin in the selection of local or international cosmetic products in their daily live.
From the discussion of first objective we can conclude that, COO affects form the basis for making conclusions without considering the quality and price of the product and other attribute information when the purchase decision does not involve a lot of effort. National image may influence people decisions related to buying and investing cosmetic product.
5.2.2 Achievement Second Objective
From the results obtained in Chapter 4, the second objective of the study to identifying multiple variables that explain COO effect on the TM staff purchase intention of local and international cosmetic adoption was achieved.Refer to Table 4.3.1(i ), Table 4.3.1(ii ) and Table 4.3.1(iii ) observation of COO are influenced by Country Image, patriotism and product knowledge. From likert scale score we can see that most respondents agreed that coo influence by Country Image, patriotism and product knowledge. From this three factors product knowledge is a most favored factor by respondent with total score of extremely important, very important and important are 184 compare to country image and patriotism each get score 175 and 156.
74.7, product knowledge 108.7 and patriotism 47.88, Refer to the table significant value is 0.00 more than 0.05. So there is not a significant relationship between country image, product knowledge and patriotism but this three factor are independent to COO.
In purchase intention of local and international cosmetic there are also other variables in addition to COO. Even more, COO is not the major variable. This can be seen from the results, the most popular answer from respondents is quality product, followed by customer preference and price. COO had a second lowers score followed by social status.
5.2.3 Finding of third Objective
From the results obtained in Chapter 4 to revealing awareness among employees about the COO, COM and COB. Information on the selection of cosmetics does take into account the effect of COO. This Objective was achieved. Academic and COO researchers are in disagreement regarding the supremacy of one over other. (COM and COB). Some have said COM is more important than COB and the rest said COB is more important than COM. According to this study findings, customers’ assessment of local and international cosmetic performance can be understandable by COM image but not by COB image. For the highest score ‘country of manufacture important than COB’ had an average mean of 3.58 with a standard deviation of 0.948. For country of brand important than COM average mean with score of 3.07 with a standard deviation of 1.077.
because they know, if users know their product was manufactured in developing countries user will change the purchasing decisions. . Examples that often dealt with linked, Thailand and China is a least of developed country, when people hear about a cosmetic product, unconsciously, a low quality product and some may be harmful to health comes on their minds. This concept was echoed by academic researchers and COO,Han and Terpstra and Tse and Gorn(1993). reported larger effect of COM on product evaluations than COB.Product with higher COM image normally produce more impressive aesthetical design and higher value for money to them.
5.3 Limitation
There are a number of limitations in this study. Firstly, the small sample size used, limit the ability to generalize what is found in this study. The study was not carried out widely since only carried at Menara TM Kuala Lumpur with 241 women staff. (i.e. not enough to capture the images of the costomer preferences on local or international. Future research should opt for a larger sample size.
Consequently, this study is in general of cosmetic and not stressed on specific brands. Each type of brand may have different image benefits or brand meaning and brand attitude. I suggest that for future research, it would be better to focus on not more than three brands.
In addition, although Staff have been categorized as potential actual users, and thus are argued to be validly used as samples in many studies cited in the literature, Thus using actual users such as population in clang valley for future research is advisable.
In future any study on usage of cosmetic should consider other variables which were not covered in this research. Among the variables to be considered such as absence of side effect, product quality, fine features, nice colors and durability of the product.
In addition, it should also include other variables such as urban and rural people, which are expected to demonstrate possible differences among each user. It is also necessary to
In addition, future studies may consider examining one type of color cosmetic product category, for example, lipstick or foundation. By focusing on one type of color cosmetic may perhaps truly reveal the brand attributes and benefits of that particular brand.
5.5 Conclusion
Nowadays the use of cosmetics is becoming more an important part of our daily lives. At the same time cosmetics is widely used as people will feel confidants when using it. Moreover, the cosmetic industry is more developed because of the increasing demand among consumers. Development of new cosmetic products also affects the cosmetic industry. Advantages feelings goods, reflecting the beauty, and satisfy the needs of ego should not be considered as elements justifying the end. Some form of control should be seriously considered by the authorities instituted to control public health across the country.
international cosmetic. In this situation we can see that the image of the country also play a role other than the cosmetics brand in consumer purchases.
The main objective of this study was to investigate the relationship between the three construct of country perspective (the country's image, product knowledge and patriotism) and purchase intention in the context of purchasing cosmetic products. Country image, product knowledge and patriotism are independent to COO but they are not associate to each other. The role of the individual country's image, product knowledge and patriotism for the purchase of consumer purchase intention to buy cosmetic products were also examined. The results showed that the product knowledge have high impact on the intention to customers to buy cosmetics from the perspective of the country of origin, followed by the image of the country and patriotism. when another variable are taken into consideration such as price, customer preference, social status and product quality, COO had a second lowest place followed by social status.
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