Consumers Decision: Imitate Foreign Brands

1.1 Introduction

Nowadays, many businesses have launched in the market. But it’s not easy to make appreciate for every people. Maybe, that is a reason of the customer decision. While, the student is part of purchasing power that the trader directed. Consumer behaviour is the study of how individuals make decision to spend their available resources on consumption-related item(Schiffman&Kanuk, 1997). In University the product is important for the student. While, the product not cover all student because maybe the teenager choose the product follow the life style that their love. So, the product have more effected to decision purchasing with the student in teen ages. Specially, the foreign brand is trust brand that have support purchasing power by the customer.

In Global setting, every product have evaluated and developed all time for customer need that is heart of competition in a commercial sale. The most people have selected the product follow several factor. So, the companies will be improving your products. Otherwise, the customers that have purchasing power can be change to other royalty brand. The better they understand the factors underlying consumer behaviour (Assael, 1998). The better able they are developing effective marketing strategies to meet consumer needs.

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In National setting, the several factor to make a purchase. It’s reason to consider for trader to select product that sales and support. The several factor have effect to making a purchase (Scheinberg, 1992) such as marketing strategies, sex, ages, occupation, prices and also the product name have a reputation values. The last factor is important to study that why the brand name have effected to customer decision.

Locally, the product names have a reputation values is the trust brand. The product that sale for student in business bachelor administration for Rajamangala University of Technology Thanyaburi will be in trends to response their customer in this age. This study concern with the behaviour in making a purchase that Brand is what consumers purchase and product is what consumers use; this shows that branding is very important.

The brand name is the trust brands that have effected to make a purchase. Present, student can’t said that don’t love their brand name and specially, the foreign brand is part factor to making a purchase. Even though, the trust brand has copyright infringement but the student will buy for owner that products. May be, the lower prices and closer style of real band are instead in using. Follow the plaza, student would like to view every week and someone choose to owner. While, the real trust band name from foreign in the Leading department stores have student only high purchasing power that only few percentage.

All of behaviour from student in business bachelor administration for Rajamangala University of Technology Thanyaburi is thing to study for know the reason why their choosing.

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Consumers make many buying decisions every day (Kotler & Armstrong, 2001). Most large company’s research consumer buying decisions in great detail to answer question about what consumers buy where they but, how and how much they buy, when they buy, and why they buy.

1.2 Statement of the Problem

Foreign brands are expensive for students.

Quality of product imitates.

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The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them.

The personality of the customers.

1.3 Research Objective

The objective of the study is to meet the answers of the problem;

Foreign brands are expensive for students.

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Quality of product imitates.

The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them.

The personality of the customers.

The answer to the problem is as follow:

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To find out how the price of foreign brand products and imitations of them influence decision making.

To find out how the quality of foreign brand products and imitations of them influence decision making.

To find out how the social value of foreign brand products and imitations of them influence decision making.

To find out the supplement personality of foreign brand products and imitations of them influence decision making. .

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1.4 Scope of research

The scope of this research is the population studying at Rajamangala University of Technology Thanyaburi. This includes males and females aged 18-25 years old of 11 different faculties totalling approximately 24,053 people. (http://www.oreg.rmutt.ac.th/SKOStdCourse/2552/report%203-2.asp)

The sample in this study was students from the faculty of Business Administration, University of Technology Rajamangala Thanyaburi. This faculty has seven branches including both men and women aged 19-25 years who make a purchases by themselves; a total of 6,299 people.

The variables studied:

– Independent variables are student’s gender, age, department of study and the year of study.

– Dependent variable is the attitude toward buying foreign brand products (price, quality, brand names and value.)

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1.5 Limitations of the Research

We acquired this information by sending questionnaires to students at Rajamangala University of Technology Thunyaburi; this includes both men and women. One of the limitations of this study is, if a sample of students does not send the questionnaire back to the researcher, or if they send it back incomplete. Another limitation is the amount of time we have is to send the survey to the students, receive the information and calculate the received information.

1.6 Significance of the study

This research is a study of factors that influence behaviour of students (of business administration at Rajamangala University of Technology Thanyaburi) when buying product imitated foreign brands. The findings of this study will help those interested in doing business foreign or interested in operating foreign brands companies by determining marketing strategies to suit the needs of target customers.

1.7 Definition of Terms

Foreign brands are expensive for students. The students will receive the money from their parent. So, they don’t have money to buy foreign brands product.

Quality of product imitates. Continually, imitates products’ quality have very good quality compare to foreign brand products, so there is a choice for students who has limited their money and want to use same brand but good quality.

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The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them. Following the student social in university, the students want to be in trend of fashion for concept from their friends.

The personality of the customers. Some students, they don’t have confident in themselves. So, the students will use the product from foreign brands to help them have more confident.

CHAPTER II

Review of related literature and studies

2.1 Definition and Features of the Independent Variable

In this chapter, discusses the title of research. Because this research is relevant to consumers: students of business administration at Rajamangala University of Technology Thanyaburi. So, need to know the meaning of consumer behaviour on buying for study factors affecting the decision of the students.

Consumer behaviour is the study of how individuals make decision to spend their available resources on consumption-related item. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it (Schiffman& Kanuk, 1997).

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The aim of marketing is to meet and satisfy target customers’ needs and want. The field of consumer behaviour studies how consumer select, buy, use, and dispose of products, services, ideas, or experiences to satisfy needs and desires (Kotler, 2003).

Marketers have come to realize that their effectiveness in meeting consumer needs directly influences their profitability. The better they understand the factors underlying consumer behaviour. The better able they are developing effective marketing strategies to meet consumer needs (Assael, 1998).

Consumers make many buying decisions every day. Most large company’s research consumer buying decisions in great detail to answer question about what consumers buy where they but, how and how much they buy, when they buy, and why they buy (Kotler&Armstrong, 2001).

Possibly the most challenging concept in marketing deals with understanding why buyers do what they do. But such knowledge is critical for marketers since having a strong understanding of buyer behaviour will on what is important to the consumer and also suggest the important influences on consumer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to consumers (Kanhasiri, 2006)

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In addition to this, also need to know meaning of the word “imitate foreign brands”. Imitate foreign brands means the product copy as products of a foreign brand. Popular products make copy are bags, watches, clothes, and shoes. The imitate foreign brands products that we know and see often in everywhere are Chanel, Louis Vuitton, Nike, Christian Dior, Gucci and etc (Kanhasiri, 2006 ).

2.2 Theories Related to the Independent Variable (s)

2.2.1 Foreign brands are expensive for students.

Prices, product differentiation and quality measurement: a comparison between hedonic and matched model methods studied by Gian Maria Tomat (2005); related contributions to Pakes, Berry and Levinsohn (1993) and Nevo (2003) consider the problem of making exact welfare comparisons on the basis of the estimated parameters of consumer preferences in a discrete choice model. This approach has been used in these works to study problems such as the effect on consumer welfare of changes in environmental regulation or of the introduction of a new brand of a product. Specifying the consumer’s choice problem in the space of product characteristics, simplifies the analysis in comparison with analogous problems studied on the grounds of traditional demand theory, as is done for example in works by Hausman. However, the results of the prices, product differentiation and quality measurement: a comparison between hedonic and matched model methods studies show that the approach can at most generate upper and lower bounds to the true price indexes and the empirical evidence shows that these bounds are usually quite wide.

2.2.2 Quality of product imitates.

From Quantity-Discount Dependent Consumer Preferences and Competitive Non-linear Pricing studied by Z. Jane Gu and Sha Yang (2009); they investigated the quantity-discount effect, a type of transaction utility consumers derived from the unit price difference between a small and a large package size of the same product in a non-linear pricing environment. Consumers may perceive quantity discounts as “gains” for purchasing larger package sizes with lower unit prices, or as “losses” for purchasing smaller package sizes with higher unit prices. In addition, consumers may differ in their tendencies to perceive quantity discounts as gains or losses.

2.2.3 The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them.

Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations studied by Lorraine M. Uhlaner, Roy Thurik and Jan Hutjes(2002); the underlying premise of this research study is that the material gains that are central or crucial to entrepreneurial activity are of less value to post-materialist individuals. The Research by McGrath, MacMillan and Scheinberg (1992) shows that individual entrepreneurs from a wide variety of countries are more likely to have materialistic values; such as viewing success as making lots of money, than their non-entrepreneur counterparts. However, they do not test for country differences. Blais and Toulouse (1998) made such comparisons and conclude that entrepreneurs across countries tend to have similar motivations. In another studied of individual entrepreneurs Robichaud, McGraw and Roger (2001) find a positive correlation between extrinsic motivation of the entrepreneur and sales performance whereas they find negative relationships between the independent variables, intrinsic motivation and autonomy and independence on the one hand and the dependent variable, sales performance, on the other. These findings are interesting because at the micro-level they correspond to the thesis that entrepreneurs, especially successful ones, are more materialistic than their counterparts. Lacking comparable research at the macro level of analysis, we can only draw on these studies for our hypotheses. In particular, assuming that trends from the micro level can be aggregated to the societal level, we predict that the relationship between post-materialism and entrepreneurship is also negative, i.e., the less materialistic the culture, the fewer people choose to become self-employed. The central hypothesis of the present paper then reads: The more post-materialistic the culture, the lower the overall level of entrepreneurship.

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2.2.4 The personality of the customers.

Consumer Assessment of Social Product Features: An Empirical Investigation Using Choice Experiments by Pat Auger, Timothy M. Devinney and Jordan J. Louviere studied the growing importance of this topic can be seen in the current movement toward social accountability audits (Economist 1999), and the increasing amounts of money that corporations spend to “fix” systems under pressure from increasingly sophisticated interest groups. Their research is relevant to this issue because it shows that although consumers do not understand the ethical dimensions of the products they purchase, their purchases can be influenced by these dimensions if properly presented. From a managerial perspective, more work needs to be done on educating consumers to the hidden ethical nature of the products they purchase. Corporations also need to understand which customers care about ethical dimensions and what dimensions they care about. However, our results also suggest that consumers won’t sacrifice product performance for ethical considerations in spite of what activists might hope.

2.3 Critical Analysis/Discussion of the Theories Related to the Independent Variable

Motivation Theory

2.3.1 Maslow’s Hierarchy of Needs; (Abraham Maslow,1908-1970)

Abraham Maslow was a psychologist. He developed a theory called the ‘Hierarchy of Needs’. This hierarchy referred to the various needs that he believed characterised humans. He identified five main human needs. These are:

– Physiological needs

These include the most basic needs that are vital to survival, such as the need water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.

– Security Needs

These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.

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– Social Needs

These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as involvement in social, community or religious groups.

– Esteem Needs

After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment.

– Self-actualizing Needs

This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.

Figure 1 Maslow’s Hierarchy of Needs

Maslow suggested that the first need dominates a person’s behavior until it is satisfied, and then the second, and so on. A learner would not be interested in learning, need 5, until needs 3 or 4; ‘belonging’ and being ‘esteemed by others’ had been satisfied. Nor indeed, would they be interested in learning until they were warm, and replete.

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A light, airy, warm, comfortable “safe” learning environment, adequate ‘comfort breaks’ and realistic timings can help to facilitate these conditions. An awareness of, and proactive approach to, group dynamics will also help to satisfy (or at least not de-satisfy) some of the affiliation and esteem needs. (Abraham Maslow, 1908-1970)

(Source:http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html)

2.3.2 Clayton Alderfer’s ERG Theory; (Clayton Alderfer, 1969)

An attempt to simplify Maslow’s needs theory was put forward by psychologist Clayton Alderfer with his ERG theory. Both theories see needs as the motivating force behind behaviour. People are motivated to do things by different needs, of which Alderfer identified three:

– Existence Needs

Include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection) Maslow’s first two levels.

– Relatedness Needs

Encompass social and external esteem; relationships with significant others like family, friends, co-workers and employers. This also means to be recognized and feel secure as part of a group or family. Maslow’s third and fourth levels.

– Growth Needs

Internal esteem and self actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward one’s ideal self). Maslow’s fourth and fifth levels. This includes desires to be creative and productive, and to complete meaningful tasks.

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Figure 2 Clayton Alderfer’s ERG Theory

Alderfer argued that it was possible to move in either direction. This means that, if growth needs become difficult or impossible to meet, frustration regression occurs, causing individuals to concentrate on fulfilling their relatedness and their existence needs. Unsatisfied needs, therefore, become less rather than more important. Maslow proposed the opposite.

In this study the researchers used two theories are Maslow’s Theory (Maslow’s hierarchy of needs) and Clayton Alderfer’s ERG Theory are main formulated in this study (Clayton Alderfer, 1969).

(Source: http://www.envisionsoftware.com/articles/ERG_Theory.html)

2.4 Discussion of the Dependent Variable

The price of products have effected to making decision. In addition, Arthur & Rafael (2002) found “When the new product launches and better quality also this product will be compared to increase price”.

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While, Aart & Jaume (2000) said that “When the products have high demand so the products prices that will be increase on demand” also Ray (2002) found “Business will find the ways to avoid the problem to improve the popular product and harder to imitate for decrease their risk” as a result Amine, Taimur & Joseph (2007) supported “Vendors will be developing price products to get the popularity may be the consumers using pirated goods” in fact Gian (2006) said that “The price is appropriate adjustments so the product will be popular Increasing” then Xavier & Giround (2008) found “The quality prices will be changed follow the quality products” in the past Laszlo & Miklos (2004) stated “The import product price will be rise follow depend on the technology and competitive environment of the buyer”. On the other hand, Joanna (2006) found “The analysis of price convergence to the consumer market is examined on aggregate and disaggregates levels” although Peter, Judith & Anil (2002) stated “The decision purchase of consumer will depend on price by the lower price also the purchasing power that so rise”.

Finally, Emek (2005) supported “The quantity the price of a low-cost have more effected to consumer decision”. The quality of product imitates have effected to making decision when, Wong & Zhou (2005) found “perceived value has a greater effect on purchase intention for conspicuous foreign products” While, Heflin, Shaw& Wild found “The liquidity of equity markets depends on quality information” and Faruq (2006) found “R&D activities and FDI inflows are important determinants of quality” then Sharma found “The brand must be relevant to a latent need of the consumer” but Jin & Leslie (2002) found “Providing people with better information causes people to change their purchase decisions and causes ¬rms to modify their behaviour” while Orosel & Zauner (2003) found “good’s quality is unobservable to buyers, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions” although Koppius & Heck(2002) found “Electronic auctions have rapidly increased in popularity, but the consequences of switching to an electronic auction are unclear” Moreover Borin & Lamieri (2008) found “empirical studies over clear evidence on the increasing importance of intra-industry trade in presence of vertically deferential products” however Matsa (2009) found “Product quality is an important element of competition in a wide range of markets, including the supermarket industry” in addition Bertini, Wathieu & Iyengar (2010) found “parsimony and simplicity in consumption is necessarily advantageous across all categories of business”

The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them have effected to making decision then, Mehrotra (1919) found “collect various technical information about managing your tax affairs and mergers and acquisitions, tax law and the special rights or intellectual property rights and the idea of the American company. Each other based on principles of law and political economy of the country. ”while Closius (1995) said ”that the termination of the movement of certain groups of people in America with a change to the political policy of national unification and the creation of justice to occur and create social awareness to the public more than ever” Moreover Kyvelidis (2001) stated “that Measure currents in the Black Socialist materialism may be obtained from the GDP of each country, which evaluates the value per head was increased from the current popularity with the increasing materialism.”

After that Anderson (2001) “has found that satisfaction in materialism is one of the psychological problems that make people in society are trying to do everything to get it occupied, such as car, house and fashion.” And Boven (2005) study “that most people want to live well and happily in every person and found that materialism, such as the car home fashion is important to create happiness for them very good.”

However, Uhlaner, Thurik, & Hutjes (2002) supports ‘that found that entrepreneurs across countries tend to find a way to trade against the competition in trade and create stability for themselves as to dominate the growing market and found that many of the cultural factors and materialism of the people affected.” In addition Fuchs said “that the theories of cultural objects are important factors correlated with the values of people in society.”

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Therefore Sarkar(1996) found “the role of men is to purchase goods and Research indicates that attitudes in the possession of materialism rather than value of the object with the purchase of such products used in life Which led to satisfaction and success of many people. As a result of Kroh (2008) discovered that the role of the purchases is likely to change the price level and economic security but Boven, Campbell & Gilovich(2005) the study found “that current flow in the materialism in society more selfish, selfish private interests over public.

The personality of the customers have effected to making decision when, Devinney & Louviere (1986) study “that of interpersonal psychology, ethics and personality have been shown correlated with the number of complex social problems.” While Rajagopol (1986) found “that of the model to measure the performance of brands and attitudes, including personalities, image, reputation and trust.” But Balaji & a Raghavan (1970) discovered “that Cultures and different image for the product of themes related to technology and brand reputation.” Therefore Pandey (1968) found “that Experiment designed to examine the role and relevance of the personality of the person. Found that the advertisement or communication program plays an important role in the perception of brand personality” although Bartholomew & Horowitz (1994) study “that Changes in market and competition has reduced the cost of marketing and new product introductions, including the risk of failure of the product.” Thus Sharma (1997) supports “that we also found that consumer ratings of management performance in the context of consumer retail low” but Zhenzhong Ma (1970) found “that Aims to create understanding about the local brand can survive.” In fact Mckenzie & Woodruff (1964) study “that present the basic concepts for exploring the relationship between personality and patterns of conflict behavior and business negotiations.” Then Koufopoulos (1999) stated “that Product innovation. Personality and affect a very important opportunity to entrepreneurs to innovate.” Finally, Kanhasiri (1990) found “that Products and measure the relationship between the feature comparison in the future. Quantitative methods of analysis and means of collecting data, frequency analysis of research and planning data in line charts and bar graphs and suggestions for future research will take effect to competitors with better customer loyalty.”

2.5 Relationship of the Independent Variable (s) to the Dependent Variable

Arthur & Rafael (2002) found “When the new product launches and better quality also this product will be compared to increase price”. Although many business office products are brand name copyright infringement very seriously and prohibit all research and product development at the time out to study consumer satisfaction, with the updates of new products out of the market demand. But still have other business products illegally copied out widely. Consumers like the products that they are cheaper and look like the real. While, Aart & Jaume (2000) said that “When the products have high demand so the products prices that will be increase on demand” Cheap is increasing on demand. Many consumers decided to buy imitation products backpack instead of the genuine product is expensive. Also Ray (2002) found “Business will find the ways to avoid the problem to improve the popular product and harder to imitate for decrease their risk”

The quality of product imitates have effected to making decision when, Wong & Zhou (2005) found “perceived value has a greater effect on purchase intention for conspicuous foreign products” and Faruq (2006) found “R&D activities and FDI inflows are important determinants of quality” The Company that manufacture high quality products to the market are disclosed information to consumers less known because those are important to the company and the liquidity of the market. The company has disclosed only basic information only. Countries are exporters of quality differences. This is the result of differences in factors such as endowment, technology, research and development (R&D). While, Heflin, Shaw& Wild found “The liquidity of equity markets depends on quality information”

The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them have effected to making decision then, Anderson (2001) “has found that satisfaction in materialism is one of the psychological problems that make people in society are trying to do everything to get it occupied, such as car, house and fashion.” And Boven (2005) study “that most people want to live well and happily in every person and found that materialism, such as the car home fashion is important to create happiness for them very good.” The materialism is satisfied from the hearts of individual values resulting psychological advantage over the other now, value of the crop cover materialism has resulted in increasing attitude of buying commercial end epicurean and often not satisfied with the simple life and different people require a comfortable life. Although materialism has a negative effect, but many people will want to own it like a big house, luxury cars, expensive clothes , beautiful furniture and other. Because human needs are infinite, they seek what they want to come and have a genuine product if the price is too high, making them purchases commercial grade copy. Although it is copied, it can substitute the same name that looks realistic and cheaper it is one reason consumers purchase decision without regard to copyright infringement laws.

The personality of the customers have effected to making decision when Devinney & Louviere (1986) study “that of interpersonal psychology, ethics and personality have been shown correlated with the number of complex social problems.” While Rajagopol(1986) found “that of the model to measure the performance of brands and attitudes, including personalities, image, reputation and trust.” But Balaji & a Raghavan (1970) discovered “that Cultures and different image for the product of themes related to technology and brand reputation.” Therefore Pandey (1968) found “that Experiment designed to examine the role and relevance of the personality of the person. Found that the advertisement or communication program plays an important role in the perception of brand personality” The cultural and social including kick similar picture with Bush. This is sometimes the product to the personality of our products or we like it because it is often too expensive brand, so many people chose to be turned to imitate instead of the actual product.

2.6 Previous Studies

There are 4 standards section;

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– Introduction &background

The brand name is the trust brand that have effected to making a purchase from student at RMUTT. Now, the student say love brand name. According to Schiffman& Kanuk (1997) Consumer behaviour is the study of how individuals make decision to spend and choose this things. When, notice the students that show their use accessories brand name. This is normal happen now but it’s not fair in their suppliers that think and make it for sale. While, the real trust band name from overseas in the Leading department stores have student only high purchasing power that only few percentage. Behaviour from student in business bachelor administration for Rajamangala University of Technology Thanyaburi is thing to study for know the reason why their choosing.

– Methods

The methods to study behavior of student at RMUTT such as notice, questionnaires, and bring the theory that related to concerning study with case study.

– Result

Now days, Counterfeiting is so much. In a view of supplier, the so called product piracy can be only roughly outlined. The Experts and everyone, who well know that product piracy: “trade mark rights in

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