Perceptions and Purchase Intention of Foreign and Local Brands amongst Consumers of Lahore.

Abstract

Consumer’s product evaluations and decision making is based on available intrinsic and extrinsic cues. The origin of a brand is one such extrinsic cue that has vital impacts on consumer evaluations and purchase behavior. The objective of the research was to study the perceptions of brand value linked to local and foreign brands and how these perceptions are related to purchase intent amongst upper class and upper-middle class; young and educated consumers of Lahore, Pakistan. Local and foreign brand perceptions were also studied in relation to brand value perceptions and purchase intentions in the presence of sociodemographic variables for enhanced understanding. It is an empirical study. Data was collected using a questionnaire on consumer perceptions regarding local or foreign origin of brands. The questionnaire was partially constructed from previously validated instruments and partially developed for the purpose of this study. SPSS 15.0 was used to code and analyze collected data. The statistical techniques employed include t-tests and regressions. The results indicate significant relationship between local or foreign origin of brands and brand value perceptions. Significant positive relationship was found between (i) perceived brand foreignness and brand value perceptions (ii) brand value and purchase intention (iii) brand familiarity and purchase intention (iv)perceived brand foreignness and purchase intention. Lahori consumers, who score high on ethnocentric sentiments, have favorable purchase intentions regarding local brands. It is hoped that this research may contribute to local brand owners’ better understanding of why foreign brands are perceived positively and to use this information to leverage the positioning of local brands. Foreign brand owners may use this research to overcome the country of origin effects as a barrier to entry in the Pakistani markets.