CONTENTS

CHAPTER NO 01 ...................................................................................................................... 2
ABSTRACT ............................................................................................................................... 2
Introduction: ............................................................................................................................. 2
Problem identification ............................................................................................................. 4
Problem Statement .................................................................................................................. 4
Research Question .................................................................................................................. 4
Objectives of Research: .......................................................................................................... 4
Scope of the research: ............................................................................................................ 4
Theoretical Framework ........................................................................................................... 5
Hypothesis ................................................................................................................................ 6
CHAPTER NO 02 ...................................................................................................................... 6
LITERATURE REVIEW ............................................................................................................. 6
Social Class: ............................................................................................................................. 6
Product quality: ........................................................................................................................ 7
Normative Influence: ............................................................................................................... 8
Origin of Country: .................................................................................................................... 9
CHAPTER NO 03 .................................................................................................................... 10
METHODOLOGY .................................................................................................................... 10
Sample .................................................................................................................................... 10
Methods to measure the variables: ..................................................................................... 10
Statistical models: ................................................................................................................. 10
CHAPTER NO 04 .................................................................................................................... 11
RESULTS AND FINDINGS ..................................................................................................... 11
Conclusion.............................................................................................................................. 13
Recommendations ................................................................................................................. 13
REFERENCES: ....................................................................................................................... 14
QUESTIONNAIRE ................................................................................................................... 16
 CONSUMERS BEHAVIOURS TOWARDS INTERNATIONAL
BRANDS

CHAPTER NO 01
ABSTRACT
This research was performed to explore the reasons that consumers prefer foreign
brands than local ones. It was also intended to detect youthful Pakistani customers
purchasing behaviour patterns and attitudes before buying. Many factors are
involved in influencing consumer purchase intentions. The finding shows that the
perceived quality and normative influence are the most significant variables which
affect the choice of a consumer. Since perceived quality majorly affects purchase
intent, it can be noted that Pakistani consumer especially youth consider high quality
international apparel brands. Moreover, Pakistani consumers are likely to follow well
known international fashion trends to match other people’s expectations or group.
Additional variables affecting consumer behaviours include social class and country
of origin.
This Research was carried out in different universities and 200 individuals aged 16-
30 years old were selected. The data gathered for the investigation was via
Questionnaire and targeted audience was youth since they are more appealed
towards international products and trends. The results were then analysed and
interpreted using multiple regression and correlation analysis.

Introduction:
With the beginning of Globalization era, people have become more informed,
culturally advanced and more demanding. Consumer behaviours are rapidly focusing
towards internationally made products and they feel that the procession of
westernized products before their families and friends gives a sense of social status
and fame. Most of the time, it can be seen that an international brand is always
perceived by the consumers to be better than local brand. The foreign brands are
preferred because of superiority and greater equity in them. That research therefore,
is focused to find the causes why consumers more specifically the youth prefer
foreign products in developing countries like Pakistan. Many factors affect the
customer’s perceptions regarding foreign brands such as Social class, product
quality, normative influence and Country of origin. This study, therefore aims to find
out how these variables affect consumer purchase choices. It is also helpful for the
local companies to identify the reasons to compete with the international products.
There are several reasons for moving towards foreign brands. Customers are more
attracted towards foreign brands because they consider them of higher quality. They
perceive foreign brands as reliable, high-quality, widely known and also enhance
their looks and status in society.. Consumers access products in terms of quality and
safety that also impacts purchasing decisions in terms of external look, name tags
and associations. In addition, research conducted in 2014 also highlighted quality
requirements in order to create desired effects on Pakistani Youth.
Some people prefer foreign products because they like new branded products from
abroad, keeping them up to date with current worldwide fashion trends. Many
researches stated that Chinese consumers favoured foreign luxury products
because it gives them immediate social recognition and meet the social status they
want. Because of its lack of availability and higher price, global brands are
considered more prestigious then local brands. Moreover, global brands can depict
cosmopolitanism as well. Some consumers favour global brands because they enjoy
a more cosmopolitan, sophisticated and modern self-image. However, no intrinsic
attachment for global brands is found in consumers.
However origin of country also influence on consumer purchasing decision.
Consumer behaviours focus towards international brands because of their quality,
durability and reliability. Origin labelling has main effect on consumer purchasing
because reputation of country affected the customers. Extrinsic characteristics are
more important in purchasing decision making process and evaluation of products.
(Ahmed et al., 2004). Origin of country also provides meaningful information for
customers in purchasing process because reputation of country affected the
customers. Also the brand image has powerful impact on origin of country. Now a
days it is on trending that whoever wears foreign brands belongs to the elite class
and have status in society. Customers attracted towards foreign products because of
their exclusivity. Customers link the foreign brands because of their superiority and
keep them up to date from the latest fashion trends.
Normative influence is actually a change in behaviour based on desire of a person to
fulfill hopes of others and enhance acceptance. ( Myers, 2009). The approvals of
friends and the positive words of mouth about a product increase the willingness to
purchase the products and the reference group has impact on consumer behaviours.
According to (Kibera and Waruingi, 1998) opinion leaders influence on buying
behaviour of consumers as they first buy the products and give information to others
to buy the products and also share the experience by word of mouth.
So it is concluded that products unique features has strong impact on consumer
purchases. By collecting information about foreign brands from reference groups,
young generation the people of Pakistan spend a substantial amount on clothing for
the fashion style and status. And the quality brands are more preferable by the
consumers. The brand’s reputation is main factor which consumer decides to buy the
products. And the consumers attract toward foreign brands because of reliability and
durability and consumer feels difference when they use foreign brands and
emotionally attached with the brands.
Problem identification
For attracting more customers, marketers should be focused on the factors
which can influence the purchase decision. Consumer behaviour for purchasing
products and intensions stems for their social class, product quality, origin of country
and normative influence with regards to the problem in the content. Consumers
buying behaviour towards foreign brands is complicated phenomena, many factors
are involved in consumer buying behaviour, and marketer should not take it so easy.
Hence it is necessary to analyse these important factors.

Problem Statement
As the number of international brads is increasing so competition between
brands has become more complicated. Many international brands competing with
local brands and it is common in developing market like Pakistan, so it is important to
understand factors which have influence in buying behaviour of customers towards
international brands.

Research Question
What are the most important factors that influence customers buying
decisions and their behavior towards international brands in Pakistan?

Objectives of Research:
The objectives of research are as following:
 To identify aspects that affect consumer buying behavior towards foreign
brands?
 To identify the consumer attitude toward foreign products perceived quality?
 Are products meeting customer expectations related to quality and
performance?

Scope of the research:

The research scope is to distinguish the factors that impact on the customer
purchasing attitude towards foreign brands and also find out the impact of quality of
products on consumer attitude. We have selected Lahore city of Pakistan and our
research is focused on youth of public and private sector Universities as they have
more knowledge about clothing and latest fashions.
Theoretical Framework

Independent variables Dependent Variable

Social class

County
Origin(product)
Consumer Purchase Intention

Product Perceived
Quality

Normative Influence

Social Class
Dividing a society on the bases of economic and social status
Country Origin
Country of origin is the place where products are made and design
Product Quality
Product quality means characteristics which are important to meet the
customers demand and full fill their satisfaction level.
Normative Influence
Normative influence means the influence of our family and friends in our
decision making
Hypothesis

H1: Social Class has a positive effect on consumers purchasing behaviour towards
international brands

H2: Country origin has a positive effect on customers purchasing behaviour towards
international brands

H3: Product quality has a positive effect on consumers purchasing behaviour

towards international brands

H4: Normative Influence has positive effect on customers buying behaviour towards
international brands.

CHAPTER NO 02

LITERATURE REVIEW

Social Class:
Social class main idea was firstly added to marketing literature in 1950s . The
concept of social classes is regarded as key feature for consumer buying behaviour.
Basically, the change in purchasing attitude of customers is due to the difference of
social classes hence there is some relationship between the market behaviour and
social classes, (Williams, 2002, p. 12;18)
Overall, social classes are of three types; Upper, Middle and Lower. Each class has
its own attitudes, preferences and interests and other variables such as income
power and standard of living while making any purchases, (Gerard J; Tellis and
Garry J; Gaeth, 1990)
The Upper class group of people utilize goods in a more well organized way then
lower class. They are more well-informed as they collect information about the goods
before purchasing. They buy goods more selectively and varying in nature. (London,
D. L and Della Britta, A. J, 1993)
While the middle class people buy goods according to their income power. They look
for low prices product since they have low level of income. (London, D. L and Della
Britta, A. J, 1993)
The lower class of people purchase goods without any planning. Because of less
income level these people are bounded in buying decisions. (London, D. L and Della
Britta, A. J, 1993)
It is observed that customers belonging to higher social class more likely prefer
imported goods in order to maintain their charm and elegance whereas middle class
people chose domestic products related to theircustoms, thus promoting it. (Zareei,
A., and Ashtiani, P.G, 2015)
From the customers’ point of view, overseas branded products have higher regard
and position compared to locals due to higher costs and scarceness in market.
(Mukherjee, A., Satija, D., Goyal, T.M, Mantrala, M.K., and Zou, S., 2012)
Overseas brands have unique appeal among customers. They craft modern look on
the customers because of which urban people like to choose it. (Steekamp, J. B. E.,
and de Jong, M. G., 2010)

Product quality:
Quality is that what a product can do for a consumer. Quality is important to satisfy
customer and build loyalty relationship and that they remain to buy from you in
future. To attract customer product must be of high quality and the raw material used
in making the product must be of good quality also customer wants durability and
effectiveness from the product.
Consumer purchasing attitude refers to the needs and wants for the selection and
consumption of goods and services. There are many procedures that involve in
buyer purchasing. So several aspects effect individual behavior and decision
making, buying behavior and the brands from where he purchase and chooses
commodities that give quality and values. (N Ramya and Dr. SA Mohamed Ali 2016)
The study observes influence on perception of superiority of product and services
and the loyalty program towards the attitude of customers.(HartoyaHartoya, 2017)
Boisvert and Ashil (2011). A study that effect on the attitude of customer on the
product quality and the result is there is the positive impact of product quality on
attitude of customer.( Santoso&Kunto 2004).
(Ing Wu and Lie Lo 2007) also attained the similar results that there is impact of
quality of product on consumer behavior. (Horvart&Dosen, 2013) The other study
that concluded the product quality is mainelement that influence towards product on
consumer attitude. (Aynadis, 2014)
(Iranita, 2010) the study attained the outcome that there is direct association
between the volume of sale and the product quality. Arbore and Estes (2013)
directed a study that customer loyalty program also depend on product quality and
the customer behavior. And it shows the positive relationship between customer
loyalty and consumer behavior.
Consumers always require uniqueness in products and approaches towards foreign
brands (Snyder and Fromkin’s 1980) in uniqueness theory.
Consumers one of the mean of perceived quality is to form perceptions based upon
quality of a brand. (Doyle, 2001) and more focused to physical properties that are in
high level of quality ( Kaiser, 1998) it is also stated that the brand name is
associated with the quality of product. (Batra et al, 2000). In his study (Sifaz et al.
2014) demonstrated that quality of product have a substantial impact on consumer
behavior.

Normative Influence:
Normative influence is a type of Social influence (Lee et al.,2006). Normative
influence happens when customers conform to the hopes of people or groups such
as family and friends(Burnkrant&Cousineau,1975). Normative influence is actually a
change in behavior based on desire of a person to fulfil hopes of others and enhance
acceptance (Myers ,2009). According to (Yadav et al ,2013) Society is a significant
factor in influencing and observing others so that it may be encouraging individuals
to adapt similar products and services.
Valuation of products is considered as sources of information for products, Thus If
people observe that valuation of product is favorable than they tend to perceive a
product more favorable (Burnkrant&Cousineau, 1975).According to (Garbarino and
Strahilevitz ,2004)suggestions and approvals of friends about a product increase
willingness to purchase and if the product in available online than females are more
willing to purchase online than males.
Reference group can also impact on customers behaviors, lifestyle, Ideas and
imaginations that influence on the choice of brands (Kotler, Armstrong,
2006).Marketers must be need to identify reference group along with customers in
the target market because reference group have the power of influencing behavior
and lifestyle of customers (Hayta, Ates Bayazit, 2008:44). Reference group
somehow effects the value and behavior of others.Mostly, The purchasing decisions
are affected by suggestions and ideas of the reference group.Reference group
includes family members, friends, social organizations, professional institutes. Family
members have a great impact on purchasing behavior (Nesai, 2009). A person who
is affected by Reference group specially focus on the wanted and unwanted
products (Makgose and Kanuk, 2010). Role of family is significant in customer
buying decisions (Maksudunov, 2008:63). According to (Schiff man and Kanuk ,,
2007) As the role of family members in the situation of affecting buying decisions
keep changing with respect to age or time as family progresses.
According to (Kibera and Waruingi, 1988) Opinion leaders influence on buying
behavior of customers as they are the first who buy new products and provide
information to others about new products in the group and share their experiences
and judgements via word of mouth. (Schiffman Kanuk, 2007)said that celebrities and
other similar reference groups have great influence to create interest of customers
towards buying of a product. Effect of reference group on customer buying decision
will based to some extent on the degree of perceived risk (Adcock et al, 2001).
Origin of Country:
Origin of country is a key factor to differentiate the products and increase competitive
advantage and also provide meaningful information for customers in purchasing
process of products (Meilich, 2004). Many researches said that while evaluating the
process of products customers are more effected by intrinsic features(Godey et al.,
2012).But some researchers said that extrinsic features are more important for
evaluating products(Srinivasan et al., 2004).but According to (Piron, 2000;Godey et
al., 2012) Extrinsic chracteristics are more importantin purchase decision making
process and evaluation of products.So,One of the significant extrinsic chracter that
effects purchasing decision of products and products evaluation is country of origin
(Ahmed et al., 2004)).Origin of country is define as the country in which firms
headoffice for marketing the brand is situated (Balabanis & Diamantopoulos,
2008)).Some studies said that mostly customers favor those products which are
produced in advanced countries. (Ahmed&D'Astous, 2001).The quality of
product,customers behaviors and their attitude towards purchasing effects country of
origin (Kalicharan, 2014)Many studies about country of origin shows that how
reputation of country’s affects Valuation of products made in that country is affected
by beliefs and image about a country which in results have influence on purchasing
attitudes and evaluation of products of individual customers (Larouche et al,
2005).Researches shows that origin of country have effect on evaluation of product
and decision making process (Solomon, 2004)The impact of brand image on origin
of country image is very powerful. (Koubaa, 2008)According to (Scott &Keith,
2005).Customers link the brand with some country and therefore image of
brandimpacts on the evaluation of product.Brand name is an important factor to
determine the significance of origin of country (Jo et al,2003). Country of origin is
also termed as “Made in” concept which is an extrinsic factor and seen on products
(Orth &Firbasova, 2003).According to resercher (Cengiz et al., 2007)the loyalty of
customer is affected by the image of country. With Globalization ,All the products
which are made in different countries are offered in the markets.So, According to this
customers have its own choice to choose the product from foreign and local products
So through this concept customer behaviour is an important factor (Netemeyer et
al,1991). (Darling and wood ,1990) verifies that country of origin is not static , it
changes according the the time.According to ( Anholt ,2007) when customers comes
to purchase a product ,he want to make an effective decision which is useful in
purchasing product rather than to search too long when he or she comes for buying.
So, a shortcut can be to select a product is origin of country. Origin of country is an
significant factor of company’s image as country of origin is used in marketing
(Josiassen and Harzing,2008).Many Researches shows that country of origin is a
characteristic in valuation of product which is use by the customers around the world
(Supanvanji and Amini,, 2000).
CHAPTER NO 03

METHODOLOGY

Sample
In our research we have taken 300 people sample size of students that prefer
international brands in Pakistan. We have used structured questionnaire technique
and distribute questionnaires to both male and female students; our main focus in
research is based on international brands so our target will be youth because they
have more awareness about fashion and brands. We use survey method for
collection of primary data in our research.

Methods to measure the variables:

According to our data we have selected Likert Scale method to measure the
research variables. Likert Scale is ranging from 1 (Strongly disagree) to 5 (Strongly
agree). In order to measure the results, we have use SPSS (Statistical Package for
Social Sciences Program).

Statistical models:
The questionnaire was composed of 18 questions that were arranged in the
organized way. In questionnaires our focus was on following variables i.e Social
class, Product quality, Origin of Country and Normative Influence. The total number
of questionnaires was200 according to sample size. We made 4 questions
describing each independent variable and 2 for dependent variable. For the
assessment of data that we have collected, we applied Regression and Correlation
analysis. Scale reliability is measured by using Cronbach’s alpha used in SPSS.
CHAPTER NO 04

RESULTS AND FINDINGS

Regression Statistics

Multiple R 0.518347535

R Square 0.268684167

Adjusted R Square 0.253682817

Standard Error 0.722995197

Observations 200

Multiple R is the correlation coefficient that measures the power of a linear

connection between two factors. The coefficient of correlation can be any value
between -1 and 1, and its absolute value shoes the relationship strength. Analysis of
correlation was used to validate the relation between the independent and
dependent variables. Correlation Analysis indicates a positive relationship between
Dependent variable (Consumer Purchase intension) and the Independent variables
(Social class) & (Normative Influence) & (origin of country) & (Perceived quality) and
therefore we accept the Alternative hypothesis h1, h2, h3 and H4.

R Square is the Coefficient of Determination, which is used as an indicator of the

goodness of fit. R value displays relationship of Dependent variable and Independent
variable. As check from the table the R Square value 0.268 tells that there is less
Proportion of the Variance in the value of the Dependent variable (Consumer
Purchase intension) due to Independent variables (Social class) & (Normative
Influence) & (origin of country) & (Perceived quality).

Standard Error value is .722 which shows high variance among the estimated
values.
ANOVA

df SS MS F Significance F

Regression 4 37.44919922 9.362299806 17.91066536 1.53021E-12

Residual 195 101.9308008 0.522722055
Total 199 139.38

The table of ANOVA indicates that Significance Value is less than .05 (.000<.05), so
our conclusion is that there is a Statistically Significant Relationship between
Dependent variable (Consumer Purchase intension) and the Independent variables
(Social class) & (Normative Influence) & (origin of country) & (Perceived quality).

Coefficients P-value

Intercept 0.963252674 0.008314867

Social Class -0.043088066 0.628265692

Perceived Quality 0.343882679 0.000248597

Origin of Country 0.195605997 0.008287274

Normative Influence 0.272854205 0.002132634

Interpretations:
The Negative Relationship is in between Dependent variable (Consumer purchase
intention) and the Independent variable (Social class) at ( β= -0.043, P=0.628), and
the relationship is positive in between Dependent variable (Consumer Purchase
intention) & Independent variable (Normative Influence) at ( β=0.272, P=.002) and
there is a positive relationship between dependent variable (Consumer Purchase
intention) and independent variable (Origin of country) at ( β=.195, P=.008) and there
is a positive relationship between dependent variable (Consumer Purchase intention)
and independent variable (Perceived quality) at (β=.343, p=.0002).
According to the Results it is proved that the alternatives Hypothesis h2, h3 & h4 are
accepted.
 Conclusion

The research shows that Pakistani consumer’s Normative Influence, Social class,
Perceived Quality & origin of country are Direct & Indirect Factors of Buying
Intention. As from the results, it can be observed that Normative influence had a
significant effect on Consumers purchase intention, so it implies that that Pakistani
customers are likely to purchase clothing brands that meet or relate to others’
expectations. The important effect of perceived quality on consumer purchasing
purposes underlines Pakistani consumers’ perception of high quality in global
clothing products. Since perceived quality has a major impact on purchasing
behaviour, it is easy to deduce that Pakistani youth who see global brands as high
quality clothing are more willing to buy foreign brands. Furthermore, as the Social
class has a significant negative influence on buying intent, it can be said that
Pakistani customers do not consider that foreign clothing products have elevated
levels of social quality and thus are unlikely to affect foreign brands purchases. This
can lead to the conclusion that perceived quality, normative influence, and origin of
country impacts considerably on Pakistani consumers while purchasing international
products.

Recommendations

The above study provides useful data about international clothing business who
would like to enter the Pakistani clothing industry. Research suggests that normative
impact, country of origin and perceived quality have a beneficial impact on the
attitudes and intentions of customers who go for shopping. This implies that
overseas clothing companies need to formulate their marketing strategy by
concentrating their brands’ emotional and quality elements. Their promotion
campaigns must be able to convey the value of their products and one would feel
very comfortable with their products. The publicity should be emotionally attractive
and the goods should be approved by reference organizations or celebrities that are
popular with general public It is also essential that they create their picture in such a
manner that will make their brand a sign of trust and faith so that people can value
their sales as they maintain ideal quality at fair rates.
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 QUESTIONNAIRE
Dear Respondent, I am the student of BBA (8th Semester, University of Education). I am
writing research paper on what is the consumer behavior towards foreign brands in clothing.
For this purpose your valuable responses are required. We ensure that your identity will be
kept confidential. Thanks for participating in the research study.

Demographic Variables

Age: 16-20 Genders: Male Marital status: Married

21-30 Female Unmarried

30 above

Note: Please mark your appropriate response.

Questions Strongly Disagree Neutral Agree Strongly

Disagree Agree
1 2 3 4 5
Social Class

1. Social status is one of the factors that influencemy purchasing

decision.
2. I like to prefer International brand over local brand.

3. Our society value international products more than local products.

4.I believe that international brands enhance a person’s Social status.

Perceived Quality
5. Ibelieve foreign brand gives you better quality products as compared
to local brands.
6. Ipurchase foreign brands to keep up to date about fashion trends.

7. I buy foreign brands to impress others.

8. I think product quality have influence on the customer attitude.

Origin of Country
9. Is it essential for me to know in which country my product is made?

10. I don’t purchase the foreign brand if I don’t like its country’s origin.
11. I use origin of country as a cue to evaluate quality of product.

12. My self-image is enhanced if in use products originated from

developed country.

Normative Influence
13. By buying the same brands as my friends, I achieve a sense of
belonging.
14. I like to know that brands make a good impression on others.

15. If I want to be like someone, I try to buy same brands that they buy.

16. I care about people opinions when I buy brands?

 Consumer Purchase Intention

17. I intend to buy international apparel brands frequently.

18. I plan to buy international apparel brands more often.