Voice Commerce
Voice Commerce
quantitative measures have taken for the study. Qualitative data was
Bangladesh, consumer
expected and fairly vary with age and education status of consumers.
Further, it also revealed that if Bangladesh continues imposing more
VAT on fabrics import and restricting fabric sales inside the country,
the direct and more challenging competition will come from India, in
comparison to china and Thailand.
Citation: Md. Anamul Hoque & Farhan Faruqui (2013). Consumer Perceptions of Country of Origin in the Bangladeshi
Apparel Industry. IJAR-BAE 2(1): p. 36 – 46.
Copyright: @2013 Md. Anamul Hoque & Farhan Faruqui. This is an open access article distributed according to the terms
of the Creative Common Attribution (CCC) 3.0 License under PKW (Public Knowledge Work) of Simon Fraser University,
Canada.
1.0 Introduction
Readymade garment is the key export item and a main source of foreign exchange for
Bangladesh in the last 25 years. Bangladesh textile garments sector has been expanded
in a vigorous way and maintained its maturity by holding 2nd position globally with 5%
market share in Readymade Garments production and export in 2012(R. Mithun & M.
Khairul, 2012). During the Fiscal Year (2011-12) the country’s total export volume was
USD 24.23 billion. Out of the total export, export from the readymade garment (RMG)
sector was USD 19.08 billion which is 78.7%. Global market size export of RMG (Woven
& Knit) is US$ 400 billion. Bangladesh share in the global market is about 5 %. This
mere 5% share alone is literally strong to indicate that there is a great opportunity of
expansion (R. Mithun & M. Khairul, 2012). That means more and more fashion retailers
and brands will be looking to source from Bangladesh and the trend has already been
started. Bangladesh has been successfully supplying apparel products consistently to
the premier international fashion brands like H&M, C&A, M&S, Wal-Mart, GAP, Levi's,
s. Oliver, Tesco, Zara, Carrefour, JCPenney and many more (R. Mithun & M. Khairul,
2012). Further, McKinsey & Company, a global management consulting firm
forecasted Bangladesh's apparel exports could grow double by 2015 and triple to $42
billion by 2020 (McKinsey CPO Survey, November 2011).
Anamul & Farhan /
However, the local apparel and fashion industry has also been experiencing somewhat
handsome growth in the last decade. This is due to increasing fashion consciousness
among consumers. Apparels define the personality, education, behavior and the way of
thinking of the people. And everyone has a separate and elegant fashion sense which is
mainly related to the apparels throughout the world (Namita, Subodh & khanna, 2012).
Although traditionally Bangladeshi like to have their dresses stitched by local tailors
catered exclusively to local demands, the growing awareness of brand and convenience
offered by ready-to-wear garments are changing consumer perception; they are being
attracted towards readymade. Consequently, clothing brands in Bangladesh are
drawing in a wider span of consumers over the last decade as they continue to offer
fashion-rich items that conform to native tastes. Moreover, apparel or fashion brands
have become not only a status of symbol; it has also added a new outlook and style in
office as much as in social circles.
There are many ‘made-in- Bangladesh’ fashion brands with different kinds of outfit and
fashion clothes for male and female have inflated into famous brands in the country like
Aarong, Kay Kraft, Cats eye, Artisti, shada-kalo, Westecs, Banglar mela and so on.
Some of these fashion houses have decided to go global and open outlet abroad.
However, these domestic brands and fashion outlets face strong competition since a
large amount of fashion-wares are imported from other countries including India,
China, and Thailand by numerous local retailers. Along with other informational cues
like price and brand name, country of origin or in other words the ‘made-in’
phenomenon might have an influence in generalizing consumer perception in
evaluating fashion clothing for local and imported. Therefore the marketers and brand
managers of this growing domestic apparel industry need to comprehend how
consumers perceive the ‘made in Bangladesh’ label in relation to imported one.
Various studies, however, have shown that country of origin is not merely another
cognitive cue. Wyer and colleagues (Hong & Wyer, 1989, 1990; Li & Wyer, 1994)
showed that the impact of country of origin cannot be explained entirely by a quality
signaling process. In addition to its role as a quality cue, country of origin has symbolic
and emotional meaning to consumers.
Country of origin may associate a product with status, authenticity, exoticness (Li &
Monroe, 1992; Batra, Ramaswamy, Alden, Steenkamp & Ramachander, 1999) and ego
enhancement (R.Veale & P. Quester, 2009). Moreover, it links a product to rich
product-country imagery, with sensory, affective and ritual connotations (Askegaard &
Ger, 1998). Fournier (1998) found that country of origin relates a product to national
identity, which can result in a strong emotional attachment to certain brands and
products. She describes the case of a second-generation Italian-American woman who is
strongly attached to Italian products, especially food-related items. For this person,
``Italy'' has very strong emotional and symbolic connotations. Botschen and
Hemettsberger (1998) reported that consumers link country of origin not only to
product quality, but also to feelings of national pride and memories of past vacations.
When making buying decisions, consumers may link country of origin to personal
memories, to national identities and to feelings of “pride” associated with the
possession of products from certain countries (Hirschman, 1985). Jaffe and Carlos
(1995) found that the factor "proud to own" had a significant influence on Mexican
consumers’ purchases of products from Japan and the United States. Okechuku and
Onyemah (1999) also demonstrated that country of origin is significantly more
important than price and other product attributes, such as reliability and safety, in
Nigerian consumers' preference.
Moral action is another salient norm that relates to country of origin is the norm to buy
domestic. Many consumers consider it morally appropriate to buy products that are
manufactured or grown in their own country (Shimp & Sharma, 1987). In countries
such as the US, Canada and the UK, governments, labor unions, and industry groups
have been sponsoring campaigns aimed at the establishment of a ``buy domestic''
norm. Consumer ethnocentrism (Shimp & Sharma, 1987) serves as an important
motivation for the decision to purchase domestic products. It refers to consumers’
judgments of the morality of purchasing foreign made products. Consumer
ethnocentrism has been found to relate positively to consumer preference for domestic
products, and negatively to preference for foreign products (Shimp & Sharma, 1987).
This indicates that the perceived morality of purchasing foreign (vs. domestic) products
indeed has a substantial impact on consumers’ product attitudes. American boycotts of
South African products are noteworthy, in this regard, as are Australian consumers’
boycotts of French products because of French nuclear tests in the Pacific (Verlegh &
Steenkamp, 1999). On the other hand, Granzin and Olsen (1998) found that American
consumers' purchases of domestic products are positively related to internalized
responsibility for helping and patriotism. Peeter and Steenkamp (1999) provided
examples of cognitive, affective and normative mechanisms for country-of-origin effects
shown in table 1.
Table 01: Examples of cognitive, affective and normative mechanisms for country-
of-origin effects (Verlegh & Steenkamp, 1999)
Mechanisms Description Major findings
Cognitive Country of origin is a cue Country of origin is used as a ``signal''
for product quality for overall product quality and quality
attributes, such as reliability and
durability (Li & Wyer, 1994; Steenkamp,
1989).
Affective Country of origin has Country of origin is an image attribute
symbolic that links the product to symbolic and
Anamul & Farhan /
In reality, cognitive, affective and normative processes are not separate and
independent determinants of preferences and behaviors. They are constantly
interacting (Verlegh & Steenkamp, 1999). Hoffman (1986) noted that affect provides a
motivating force for information processing, and may initiate, terminate or enhance the
processing of information. Affective responses to country of origin may thus stimulate
or inhibit further consideration of choice alternatives, and influence the retrieval and
evaluation of cognitive beliefs related to the country of origin (Isen, 1984; Ger, 1991;
Askegaard & Ger, 1998). Positive affect leads to more extensive and more diverse
mental representations (Isen, 1984). Affect has also been found to influence the amount
of information that is used to make a decision, and the strategy that is followed to
combine this information and arrive at a decision (Cohen & Areni, 1991). Affect thus
plays an important role in determining which beliefs are formed, how they are
evaluated, and how strongly they are weighted in the formation of preferences (Verlegh
& Steenkamp, 1999). Normative judgments related to the purchase of a country’s
products involve both cognitive and affective responses as well (Peeter and Steenkamp,
1999). The complex issues that are at stake in boycotts and boycotts require elaborate
cognitive processing, but also evoke emotions like fear and anger (Osterhus, 1997;
Klein, Ettenson, & Morris, 1998). Schwartz (1973) even argued that the impact of
personal norms on behavior and decision making is largely based on the fact that a
violation of norms results in feelings of guilt and loss of self-esteem, while conformity
results in pride and enhanced self-esteem.
However, the importance of country of origin varies depending on market and product
specific circumstances (Eriksson & Hadjikhani, 2000). For instance, country of origin
has been found to be more critical when consumers are evaluating high involvement,
high status or highly specialized items such as designer clothing or prestige motorcars
and less important in the evaluation of low involvement, low priced item such as
toothpaste or t-shirts (Ahmed & d’Astous, 2004; Ahmed et al., 2004). In contrast, B.
Godey et al. (2011) found that in the specific case of luxury goods the impact of country
of origin is weaker than that of brand. Yet Apparel as product category has been used
in much research to measure the influence of country of origin. Schooler used a simple
manipulation in which he showed Guatemalan students a piece of fabric bearing
fictitious country-of-origin label (Guatemala, Costa Rica, Mexico, El Salvador). The
study showed that products made in less developed countries, like El Salvador and
Costa Rica, were ascribed lower quality while home products and Mexican products
were ascribed higher quality (Vrontis, Thrassou &Vignali, 2006). Furthermore,
Schooler and Sunoo tried to examine consumers’ perception of Asian, African, Latin
American and European products by evaluating the views of 320 American students
regarding apparel from different continents (Demetris, Alkis & Claudui 2006).
(students) showed that American textile products were rated the highest, while
products from developing countries were rated lower. The research lent support to
stereotypes about consumers perceiving products of developing countries to be of lower
quality (Demetris et al. 2006).Moreover, Dornoff, Tankersley and White (1974) tried to
examine consumers’ perceptions of imported products and the influence of
socioeconomic characteristics on consumers’ perceptions. The research was done on
400 American respondents and on various types of products including fashion
merchandise. The study showed that American consumers were neutral towards French
fashion merchandise, that no differences existed among the males’ and females’
opinions and that more educated consumers are more in favor of imported products
(Demetris et al. 2006).
However, Darling and Kraft (1977) researched the impact of the ‘made in’ label on
Finnish consumers. The research on 303 Finnish respondents showed that there existed
a striking ethnocentrism with Finnish consumers in all categories of products including
apparel (Demetris et al. 2006).Further, Baumgartner and Jolibert (1977) tried to
measure French consumers’ perception of their own country’s products’ quality and
those imported from different countries: the USA, Germany and Great Britain. A sample
of 108 French respondents showed that French consumers had a very strong
preference for ‘made in France’ products. It applied to all categories of products
(playing cards, life insurance, and cough syrup) including apparel (Demetris et al.
2006). Moreover, Niffenegger, White, and Marmet (1980) investigated the product
images of American, French and British products among British retail managers. A
sample of 92 professional British retail managers was used to measure their vision of
products in terms of price, value, advertising, reputation, design, and style and
consumer profile. The study indicated considerable differentiation in the perception of
quality, technical advancement and price, and further showed demographic trends of
perception (Demetris et al. 2006).
Kaynak and Cavusgil (1983) examined Canadian consumers’ opinion of products from
25 different countries. Products were from different categories including apparel. Study
on a sample of 197 Canadian consumers showed that country-of-origin image might
function as a surrogate when there is a lack of information about products, including
apparel. The research showed that the less is known about the brand and product the
greater impact the origin-of-product has on a consumer’s decision to buy (Demetris et
al. 2006). However, Hugstad and Durr (1986) investigated the importance of country-
of-manufacture to American consumers. Products used were durable (cars, cameras)
and expendable (car tires, shoes, shirts) from different countries (Japan, China, Korea,
Taiwan and the USA). Study on a sample of 341 American consumers showed that they
were most apprehensive towards products from China, Korea and Taiwan, that is to say,
they considered them to be unreliable in terms of product quality. On the other hand,
they perceived apparel of their own country to be of the highest quality (Demetris et al.
2006).
Heslop and Wall (1985) examined the differences between males and females on the
basis of country-of-origin product image. A total of 635 respondents in Canada were
asked to evaluate the quality of apparel and shoes from 13 different countries. The
results of Heslop and Wall’s study indicated the ethnocentrism of Canadian consumers
and supported the stereotype regarding the quality of Italian products and the risk
involved with Eastern Europe and the Far East products (Demetris et al. 2006). Al-
Hammed (1988) investigated the Saudi Arabian consumers and resellers’ attitudes
towards different types of products (carpets, air conditioners, household appliances,
and designer clothes) from different countries (the USA, Japan, Germany, Sweden,
Belgium, Spain, Malaysia, Hong Kong, Korea, Taiwan, and UK). The results on a sample
of 300 consumers and 193 Saudi resellers showed price to be the most important
attribute to be considered when buying all kinds of products, including clothing
Anamul & Farhan /
(Demetris et al. 2006). Later on Ettenson, Wagner and Gaeth (1988) tried to examine
the effect of country-of-origin image in relation to a ‘made in’ campaign. The study was
based on 55 students at the University of Maryland where the respondents were asked
to assess the importance of the attributes of style, cut, fabric quality, content, price and
brand when deciding to purchase. All the products were American and respondents
were administered the questionnaire before and after the introduction of the ‘made in
the USA’ campaign. The results of the study demonstrated that contrary to previous
findings, the effect of country-of-origin was relatively small both before and after the
launching of that campaign (Demetris et al. 2006).
Thus a considerable body of knowledge is available on this topic, still, research into
country of origin effect continues unabated for many reasons (R .Veale & P. Quester,
2009). First, the world is increasingly a global market place and few businesses are
immune to the influence of imported product into their home markets. Second,
businesses around the world actively seek export opportunities for their product and
services(R .Veale & P. Quester, 2009), and new consumer market with enhanced
purchasing ability are growing in developing countries (Bandyopadhyay, 2001;
Brodowsky, Tan & Melich, 2006). Therefore, being able to predict the acceptance of, or
any bias against, their products in new market can be a critical success factor (Badre,
Davis & davis, 1995; He, 2003). However, the focus of this study is the domestic
clothing apparel industry of Bangladesh. This industry was chosen firstly because it has
been achieved considerable growth in the last ten years. Secondly most apparel has got
a label proudly displayed “made in”. And finally significant market share of this industry
is shared by imported products. Most of the research regarding readymade garment
sector focused issues related to export growth and challenges. Very little research
connected the country of origin effect to the product category other than clothing
apparel. Therefore this small study was intended to fill this gap. The major objectives of
this study were to investigate consumer perception of quality of Bangladeshi made
apparel in general and to study consumer attitude toward Bangladeshi made versus
imported apparel from major importing countries (India, Thailand, china).
3.0 Methodology
Both qualitative and quantitative measures were taken for the study. Semi-structured
interview method was applied as a qualitative measures which involved consumers,
merchandising managers and sales personnel of three major retail outlets, managers of
two garment manufacturer and some boutiques- chosen on judgmental basis. These
measures helped to better understand the key facets of consumer perception prior to
questionnaire design. For quantitative measures, 100 questionnaires were administered
to a stratified randomly selected sample of the general population of Dhaka city,
Bangladesh. Respondents were asked to indicate their level of agreement about
Bangladeshi made products using 5 point Likert scale and to express their attitude
towards apparel from 4 regions (Bangladesh, India, Thailand and China) using 7 point
Likert scale. Average scores of selected country of origin pairs were analyzed applying
paired t-test method. Paired t test is commonly used to compare two population means
where one have two samples in which observations in one sample can be paired with
observations in the other sample. Despite its limitations that this measures is open to
carry over and order effects; the method is used for this research because it allows
good control of individual differences, resulting in small effects as the amount of
random error is very small.
Total 100 respondents took part in this study, majority of them were male 72%
(Table 2). Most of the respondents are within the age group of 20-29 and 60% of
them completed graduation. In addition, 30% of the respondents enjoy monthly
income above $400.
Table 02: Demographic profile of consumers
Gender Frequency Percentage (%)
Male 72 72.0
Female 28 28.0
Age group
12-19 5 5.0
20-29 50 50.0
30-39 15 15.0
40-49 15 15.0
50 and above 15 15.0
Education level
Post graduate 18 18.0
Graduate 60 60.0
Diploma 2 2.0
Higher secondary 16 16.0
Secondary school 4 4.0
Monthly income (US $)
100-150 8 8.0
150-250 35 35.0
250-400 27 27.0
400-550 17 17.0
Above 550 13 13.0
However 75% respondents claimed they would be prepared to pay a little more for the “Bangladeshi made” if
the quality was par with imports (statement 5). Notwithstanding, 85% of those surveyed considered that the
quality of Bangladeshi products had improved over the last 5 years (statement 6); and 82% thought that it
would continue to improve (statement 7). However, 57% agreed that the quality of Bangladeshi products is
equal to, if not better than, imported products (statement 8).
quality.
If the quality of Bangladeshi -made
and an imported product is the
37 38 17 7 1 100
same, I will buy Bangladeshi
products even if it cost a bit more.
The quality of Bangladeshi products
over the past five years has 40 45 10 5 0 100
improved.
Overall, the quality of Bangladeshi
products is equal to, if not better 26 31 33 9 1 100
than, imported products.
Notes:
1. Ratings were on a 5-point Likert Scale with 5=strongly agree to 1=strongly disagree.
2. Attitude statements are adopted from Paul and Siu (1991)
These data are somewhat consistent with the responses to two further questions
specific to apparel products. These are shown in Table 4.
The result revealed that a there is a segment of Bangladeshi consumers who are
skeptical and not so confident about the merit of “made in Bangladesh” level. Hence
local brand owners, manufacturers may not be having the impact they desire.
For statement 1, 6 and 7 in Table 3 (all dealing with attitudes towards the quality of
Bangladeshi-made products), no significant relationship was found with any of the
demographic variable used in this study (age, gender, education, profession and
income). This may be due to the uniformity among the samples as majority of the
respondents fall into 20-29 age groups (50%) and are young professional or students. A
less homogenous sample perhaps could be used for different outcome although it seems
that demographics are not a useful variable in explaining the variation.
Respondents were asked to express their attitude towards apparel from 4 regions
(Bangladesh, India, Thailand and China) by rating eleven product attributes on a 7
point Likert scale of the form: 7=strongly agree to 1=strongly disagree. The average
rating scores for each country are illustrated in Table 5:
The major point of interest is that apparel from Bangladesh rated consistently higher
than apparel from India on every product attribute except style.
From Table 5, differences in the perception of each country are evident from the 7 point
Likert scale for each statement. The results of paired t test of these differences are
shown in the Table 6.
5.0 Conclusion
The most significant outcome of this study for the Bangladeshi manufacturer is
consumer perception of price which is rated high in comparison to India, china and
Thailand. This is may be due to increasing VAT on imported fabrics and Govt.
restrictions to sell limited amount of fabrics inside the country by the garment factories.
To keep pace with the imported apparel local marketers must create a common
platform to be vocal. Pressure on Govt. must be created by them to strengthen the
textile industry to fulfill local demand for fabrics. Nevertheless, for most attribute
decisions, Indian apparel was rated on par with Bangladeshi product in terms of three
most important attributes (fit, fashionable style and overall workmanship). Indian
apparel was perceived to be equal on fit and fashionable style but slightly inferior on
overall workmanship. Further, the preference for Bangladeshi apparel is by no means
uniform across all demographic group despite the uniformity observed among the
samples in terms of age. The result shows a mix and to some extent cynical perception.
Young consumers are moderately inclined to the “made in Bangladesh” as well as open
minded to overseas brands. On the other hand, older respondents are comparatively
less inclined to this phenomenon and more inconclusive than to younger people. Finally
consumers with higher education level posses a softer corner for imported products.
Anamul & Farhan /
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