1. Introduction
The rising style of industrialization and developing expertise in interaction and shipment allow the clients to retrieve and interpret a large diversity of goods and facilities from other nations. The fact that clients frequently assess the overseas goods differently in contrast to local goods has been discovered by prior investigations (Wang et al., 2004). It has been stated that clients of progressed nations prefer locally manufactured goods as against foreign made ones (Bilkey & Nes, 2002) while users from progressing nations favour foreign products over locally made ones (Wang et al., 2004). The idea behind this being that they consider foreign goods to be of superior quality in contrast to local goods and also individuals equate using overseas products as being a status symbol or as being fashionable.
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The number of users in developed nations for example India or China are more in number and have access to goods that are manufactured in western or developed countries. In such a competitive environment, vendors essentially need to understand the reasons behind users of developing nations selecting goods of other countries – imported or domestic. Client choices related to specific creations must be considered not to be a string of unlinked and independent options, these choices involve equations between personal, items or creations state Hogg and Michell (2006).
It is accepted that one needs to comprehend client conduct in context to both domestic and foreign goods as overseas marketing is fast becoming an essential part of the global financial systems (Netemeyer et al., 2001). Several investigations related to this subject are centered on what are the name and the location of belonging influence; investigate the way how clients scrutinize goods introduced from specific countries. Older studies which have investigated the location of belonging influence have scrutinized item kinds such as different cars, footwear, video players and groceries for clients located in Australia, Canada, China, France, Germany, Holland, Ireland, Japan, Mexico, New Zealand, and the USA and several others (Ahmed and d’Astous, 2006 and Elliott and Cameron, 2004).
Several researchers in Europe have examined the influence of the place of origin on selection viewpoints (Ettenson, 2003; Liefeld et al., 2006), good representation (Peris et al., 2003), client outlooks, and the “produced in Europe” notion (Schweiger et al., 2005), client viewpoint and the created in Europe concept.
The development and sustenance of the local manufacturing segment in noninterventionist economy depends on how clients like the goods manufactured in that particular country. Local manufacturers face tough competition from many foreign products which have made their mark globally. This is especially relevant in emerging countries whose manufacturing is restricted to primary products. It is in such nations that the development of manufacturing sectors faces hurdles as clients prefer using foreign goods from developed nations as against domestic ones or ones from lesser developed countries (Ettenson 2003).
The twenty first century is witnessing the usage of extravagant products (Kapferer and Bastien, 2009) though the number of firms marketing extravagant goods is very low (Uche Okwonko, 2007). All individuals desire lavish goods especially as far as fashionable goods are concerned. Despite the era of industrial revolution, the first or second world wars or liberalization the past centuries have observed that several opulent brands have made their mark globally. The era of internationalization has resulted in the availability of several sources of opulence. This is the result of the role played by growth of businesses, financial systems, new businesses, rise in spending by people and even interactions. This is evident by the fact there are reputed Japanese luxury brands in European countries which employ Chinese silk as raw substance for manufacturing goods (Kapferer and Bastien, 2009). This has resulted in people globally being aware of the international fashion brands.
The current days have seen the diminishing of societal division. However individuals are yet likely to differentiate class in community by the leader and individuals who are wealthy like to display their wealth and opulent lifestyle. Thus luxury has begun to indicate superior choice and money which every individual desires.
One of the emerging nations from which several products of different nations are imported is UAE. 2006 saw the import value touch 125,975 million US dollars which is expected to touch 137,943 million US dollars by 2007 (World Bank 2007, as quoted in Chaisitthiroj, 2007). Studies undertaken previously deduced that the approach towards international products as against local brands was more affirmative as they considered global brands to be of superior quality (Masayavanij, 2007. This was in line with the investigation undertaken by Cengiz & Kirkbir (2007) which concluded that people in emerging nations consider overseas goods to be of superior quality and more dependable as against locally manufactured goods. Simultaneously another investigation related to UAE client approach and outlook related to international as against local clothes deduced that UAE individuals prefer foreign clothes on account of their better resiliency, quality, good looks, fashionable appearance, and brand name and style because they are made in nations that have advanced expertise. As a result, UAE clients prefer to buy foreign clothes (Sae-Jiu, 2007). Another study also deduced that UAE clients considered overseas brands to be much better in terms of quality and worth for money as against local clothes (Suvachart, 2002) and the nature of UAE clients is such that they emphasize on quality and prefer to pay more for foreign brands. Thus, foreign brands significantly influence the outlook and conduct of UAE clients.
Ukpebor and Ipogah (2008) opine that a strong brand is likely to improve a client’s approach power related to the product linkage of a brand. As Vranesevic and Stancec (2003), have asserted the significance of a brand is evident by how it influences the client’s options and their allegiance by recognizing and distinguishing not only quality and source but by developing augmented worth. One of the advance policies is that a strong brand can seize the attention of a client. In emerging countries, clients have specific anticipations from the brands are inclined to depend on the brand as a mark to buy goods (Reardon et al., 2005).
Despite, the luxury segment being tiny in contrast to other firms globally, the luxury fashion segment has been a multi-billion dollar segment globally. It is important in driving the economy and impacting the contemporary society. Chadha and Husband (2006) further stated that the democratization of luxury brands in the nineties allowed common man to access fashionable goods. Also one can find luxury present at every place in the current times (Kapferer and Bastien, 2009).
2. Problem Statement
Overseas goods are frequently evaluated in a different manner as compared to parallel domestic products by users (Herche, 2002). The location of belonging influence research undertaken in majority of developed countries has pointed out that if information related to a product is insufficient then users choose domestic branded articles in lieu of global goods (Bilkey and Nes, 2002). Clients often form opinions related to the standard of the apparel based on the mannequin wearing clothes (Dickerson, 2002). To be specific, the outlook of criteria associated with imported clothes was not regarded to be as important. However, there appears to be a direct relation amongst evaluations of evaluation of domestic products and the norm of monetary development of the location of belonging (Gaedeke, 2003).
On the other hand, a contrasting style of location of belonging investigations can often be viewed in lesser developed nations where clients really select imported goods in contrast to locally manufactured ones (Agbonifoh and Elimimian, 2009).
This is more likely to be seen in situations when imported products are related to evident buys (Marcoux et al., 2007; Piron, 2000). Clients often buy and use luxurious foreign goods to keep up with the joneses or baffle others instead of the monetary aspect or real application of the products (Mason, 2001). This has not been limited to the affluent section of the society but can be witnessed across the entire society and income divisions including the poor and the rich (Mason, 2001; Basmann et al., 2008).This is evident by fashionable apparel are ones which are noticeable and also a mark of standing in society (Schiffman and Kanuk, 2004).
As has been put forth by Chaisitthiroj (2007), the beauty segment is one sector in the market that clients have several options of imported goods and they are regarded to be well-known for beauty clients. This is evident in UAE as their lifestyles are transforming and becoming more contemporary thanks to the growth and this is visible more so as far as UAE women who reside in the urban regions are concerned (Chaisitthiroj, 2007). Presently, they pay attention to how they look as they consider buying cosmetic goods an extension of their personality.
In the words of Cash et al. (2009 as quoted in Guthrie et al., 2008), ladies using beauty products are more contented with how they look including their general appearanceand deem themselves to be more beautiful compared to their friends when they have their makeup on. When this investigation was undertaken, UAE was grappling with an economic recession (Bangkok Bank, 2009). Despite the recession, the cosmetic segment has withnessed continous uptrend (growth) (US. commercial service 2008). A tiny role of the cause lies in the fact that beauty brand asset are crucial drivers. It was asserted by Drucker (2005), that during economic recession, people spend money cautiously, so beauty firms depend on promotion and brand name identification to gain revenues.Additionally, the usage of marketing mediums in several novel mediums including internet improves the brand exposure to an extended set of likely clients (Kumar et al., 2006).
On the other hand, it has been asserted by Suvachart (2001) that UAE clients have the attribute of being innovators who are likely to shift to new brands or goods thus indicating they are not really brand committed. Additionally, when Speece (2008) studied brand commitment of clients located in Bangkok, it was discovered that only 80-85 percent were committed to brand to goods which required low participation and did not depicted solitary brand commitment.
The investigators discovered that there was a lack of research related to UAE clients’ outllok and conduct related to imported makeup goods which is one of the significantly developing market industries in UAE (Wiwutwanichkul, 2007). The subsequent segment will discuss details related to the UAE cosmetic market to offer a general view of the exisitng market scenario and the reason behind undertaking the research will be discussed.
3. Research Purpose
The main purpose of this research is to investigate the effect of brand on consumer purchasing decision of foreign makeup product. The outcome of the research would be beneficial to marketing professionals especially in UAE cosmetics-makeup industry to understand the target consumer-whether brand equity affect their purchasing decision. ‘To what extent the brand equity lie in their purchasing’ will be investigated as it will help foreign brand marketer to see their strengths and weaknesses in their use of brand equity and can improve their performance accordingly. At the same time, the research can assist domestic marketers to adapt the knowledge to their marketing plan and activities to satisfy customers and provide the offerings based on the factual consumers’ needs.
4. Research Questions
To fulfill the aim and purpose of this study, the authors have formulated the research questions by relying on the background and problem statement as the following:
If and how the personal value, social recognition, and demographic impacts UAE customers for their luxury fashion brand purchases and which marketing strategies should be used to suit their purchasing intention?
5. Research Aims
The aim of this research is to identify the influences of brands and its assets on consumers’ purchase decision. According to the above discussion, quantitative method was chosen as it best fits the nature and purpose of this study that attempts to understand UAE consumers’ behaviour in making decision to buy makeup products. Hence, a questionnaire-based survey is selected as the major tool in data collection of the study.
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6. Literature Review
The prior research international brands in the up-and-coming market economies were favoured by the several consumers, along with having a superior class their status is contrast with the local goods as explained by Graham (2004) and Sterngold (2002). India is included among these several consumers in the markets, international brand goods were buying and possess by the rising upper class as mentioned by Cui & Li during 2001. According to Arnold & Quelch, (2008) and Batra (2007), the product worth among the local brands was identified by the investigators as well as they also pointed out that the consumers in up-and-coming market economies will end up stylishly. In these nations the increasing patriotism and domestic industries will be created by the host governments as explained by Klein (2002), Prahalad & Lieberthal (2008). In the up-and-coming markets the international brands hostile response will be ultimately result by the altering utilization styles as given in these forecasts. This matter is validated by McKinsey published report – despite identification acknowledge the international brands, local brands were favoured by Chinese consumers and instead of imported brands they have faith on local brands as stated by Dyer (2007). In these markets for transnational firms functioning there is an important inference of fake alarm or unavoidable inclination is there.
The globe’s financial systems constant globalization is considered and up-and-coming market consumers significance is with domestic organizations and transnational firms, closer investigation were needed for the selection between international and local brands in these financial systems by consumers. In the up-and-coming markets information related to the option of consumer’s for international and domestic brands stays insufficient. If India is illustrated – for international brands penchant were identified by many investigators as on non-probability samples and perceptual measures they depend. for international brands asserted penchant, on domestic brands real buying the latest investigations depends like exaggeration of penchants and domestic brands were majorly buyed by the Chinese consumers as mentioned by Cui & Liu (2001); Kwok (2006). Between Chinese consumers preference of international as against domestic brands were influenced by other aspects as proposed by the difference between real conducts and asserted penchants. International and local brands real buying pattern have been contrasted by a small number of investigations in this huge up-and-coming market for deliberating the condition of brand competition. When domestic market situations and good divisions impacts were discovered, among the city consumers in India the preference of international and local brands investigated in this studies and in the up-and-coming market extreme competition between local and international brands. On brand insights and preferences the existing literature is reassess by us and consumers’ options in up-and-coming markets and several investigative queries were suggested.
Secondly, in four main Indian cities that depends on extensive consumer investigation, across several durable and nondurable goods types the buying patterns of local and international brands were analysed by this research. Across good types and geographic markets the international brands differ greatly in buying and possessions as proposed by outcomes. Specific good types were controlled by international brands, in consumables and durable goods the base is acquired by local brands as in the city markets it goes ahead, for consumers share the current war were emphasized. In brand management and marketing policies for both international and local organizations the propositions has been discovered by us.
Brand
Kotler (2002) states in the product line were one of more items were associated as it is used for identifying the character source of the items is termed as brand. According to Doyle (2002) brand is a specific name, design or symbol or its combination – a product is differentiated by this. For every product an ordinary feature is the brand which nowadays is available on the market. Each brand specialty is the different value in the potential buyers mind. According to Gordon (2003), McEnally and de Chernatony (2009) differentiation is enhanced by the image and reputation of a strong brand on buying behavior it has a positive influence. Powerful brands significance is seen by the marketers and for building up a strong brand as shown in all efforts.
Familiarity and credibility is the meaning of brand for customers as in their everyday life some contacts were experienced by them; so as an indicator brand is used for making a decision while buying new product as stated by Ger (2003). The determinants of product quality is the causal signs that is regarded by brands as it depends if quality is truly determined by intrinsic attributes and processes as mentioned by Stijn (2000). According to Aaker (2002), in the mind of consumers the familiarity and credibility creates value towards firm, by brand equity use it can be enforced: perceived quality, brand loyalty, brand awareness and brand associations.
Consumer behavior
Consumers studies the consumer behavior as for a product or service they exchange value as it satisfies their needs as stated by Well & Prensky (2006, p.5). Schiffman & Kanuk (2000, p.5) mentions that how for spending their available resources that is time, money, effort an individual makes its decision is focused by the consumer behavior study on items related to consumption. With buying consumer behavior consists people experience of feelings, thoughts and their performed action. Environment influences like product appearances, comments taken from other customers, packages, consumers’ physical actions and advertising were involved.
Consumer decision making
The decision making behavior of consumer consists five basic steps. As per most of the researchers these steps are within the same field (Cross 2009). These steps are inclusive of model; problem recognition, process of information search, alternatives evaluation, process of purchase along with post-purchase. However, it is not necessary that all purchased need every step (Cross 2009). It is up to the consumer to skip the alternatives evaluation while considering low involvement products.
As per Hawkins et al. (2001) there are diversified sides than the process of decision making that are subject to affect consumer behavior that are relevantly external and are internal with influences. All the external influences are kind of social class added by reference group. The internal factors can be noted as exposure, motivation, perception, attention and attitude.
Purchase decision
All kinds of purchase decisions are integral to the process of consumer decision making structure. There are specific two prior stages; information search and aspect of evaluation of alternatives considered by the consumer consecutive act to reach stage of purchase decision added by the effects of brands in those stages.
After the phase of problem recognition, consumer shifts to the stage of information search and seek information about the quality, price, brand, country of origin and similar issues as per their motivation. Information search can get conducted as a kind of internal search by the consumer’s past through indirect or direct experience for the product added by external search by marketing materials or different social groups or reference groups. For Hoyer and MacInnis (2007, p.200), the image of brands are actually affected in terms of internal as well as external search for information. For internal search, the respective consumers can recall brands, whereas for external search, they tend to look into availability over shelf while purchasing or suggestion collected from salesperson affecting their purchase. This follows evaluation of alternatives that the customers usually have to single out. Brand equity too gets consideration. Alternatives of products are taken into consideration in the customer’s set of desire. As for instance, brand awareness, where the customer remembers exact brands for specific quality product, he picks the brand immediately.
After selection made at evaluation among alternative stage, purchase decision comes in, where concerns are related to the selection of specific product in specific retail outlet added by the amount of purchase.
7. Research Methodology
In this research, both qualitative as well as quantitative methodologies are considered. Individual answers will be included through questionnaire added by survey questionnaire. These are believed to be effective means to fulfill dissertation objectives. Process of qualitative investigation mode enables the subject to get analyzed and offer vivid as well as dependent replies that are enquired by researcher in the way of providing constructive as well as comprehensive information that other techniques can overlook. This approach offers significant data by answers to research queries in balancing research techniques that are quantitative in structure. Through quantitative process the research data is collected on the basis of different factors that can get measured for patron’s activities. Quantitative method relies over statistical analysis. As some parts of the theory are analysed and calculated, there is the end resultant that is numeric and objectivity results derived of them are the resource led out of corrective recommendations. For Kuhn (2001) numbers record exodus from different presumptions and is the skill that never gets replicated through qualitative method added this exodus gets sufficient to start the investigation.
Aim of this research is based on identifying the influences of brands added by the assets led over consumers’ purchase decision. Thus quantitative method is selected as it best fits specific nature as well as purpose of the study, which attempts to understand particular behavior of UAE consumers in making purchase decision for makeup products. Thus a questionnaire-based survey is conducted as a major tool in the process of data collection for this study.
Both the standards are based on numeric studies. Questionnaires as well as intensive interactions are used as they are all impactful in their approach and manner for completing the aims of this study. There were four interactions performed in India added by 150 questionnaire further will be distributed among different individuals. Questionnaires will be distributed at shopping malls as well as luxury outlets. Participants who have got past over the elimination aspects or are proven as luxury customers will be quizzed. Their responses will be used in the research. Collected information will be analysed through statistical tests under the assistance of SPSS.
In order to comprehend the declarations of the respondents, all the questionnaires will be translated specifically into Arabic added by English version. Determination of attributes is inclusive of conjoint analysis, as pretest will be managed among separate sample that is of 30 respondents in order to assure validity towards the questionnaire. Respondents will be asked to answer the selected questionnaires, and that follows the discussion about the questions that were obscured, like the one on whether they can comprehend the meaning of the questions or if there is ambiguity. Finally, questionnaire gets distributed.
Questionnaire design
Questionnaire design will be structured to collect demographic information related to respondents as per their age. Information related to social class is inclusive of occupation, education and income, (as in questions like 1, 2, 3, and 4) by multiple choice questions. As per Fisher (2007) this kind of questions offer the respondents with choices among 3-5 options and interrogate them to choose any one. These questions also do not allow unambiguous options and are mutually exclusive. Application of multiple choice questions for the study respondents’ behavior for purchasing in questions like 5 to attain frequency for purchasing makeup products. The question 6 looks into the amount of money that get spent on buying makeup and lastly, question 7 is about respondents’ type of makeup products bought mostly. Lastly, as per the Likert scales gets applied to ask respondents for their opinions added by attitudes to choose a position in the five-point scale that represents between strongly agree to strongly disagree (Fisher, 2007, pp.200-200). Likert scale gets applied to the questions from 8-26 for studying respondents’ attitude for brands and purchase decisions.
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