Comparative study of shopping behavior (attitude) towards local versus foreign brands

SYMBIOSIS CENTER FOR MANAGEMENT STUDIES, NOIDA
BATCH: 2012-2015
Comparative study of shopping behavior (attitude) towards local
versus foreign brands
Submitted to: Submitted by:
Dr. Anubha Vashisht Promita Majumdar
Sheryl Mehra
Kritika Ghai

ABSTRACT
The purpose of the study is to investigate, in an emerging market, consumer attitudes towards
local and foreign brand purchases against a background of factors like Prices, Style, Product
quality and services etc.
This study was conducted in order to determine the consumer preferences of global brands
instead of local ones. It is also designed to find out the buying behavior patterns of young and
middle aged consumers. Consumer evaluates products based on information cues, which are
intrinsic and extrinsic. A number of factors affect the consumer purchase decisions. The results
suggest that most important factors that influence a consumer’s final decision are the price and
quality of the product in question. Since the consumers usually associate the price of the brand
with its quality, a brand priced too low is generally perceived as a low quality product. Similarly,
a product priced too high may not be affordable by many. Usually it is perceived that the quality
of foreign brands is generally higher and superior to local brands. Most consumers also associate
greater durability of products with foreign brands and comparative low prices of products with
local brands.
Indian consumers are not prejudiced against foreign brand names. In fact, they evaluate foreign
branded products higher on technology, quality, status and esteem than Indian brands and
attribute higher credibility too.
Other factors that have an impact on the consumer preferences are: consumer ethnocentrism,
social status, price relativity with the competing brands and family and friends.
The research was conducted and the samples selected included 70 people belonging to 25 years
and above. The data collected for the research was through a questionnaire and was conducted
randomly on people who seemed interested in shopping. Calculations were then analyzed and
interpreted using a percentage of respondents and through frequency distribution tables and
charts.

ACKNOWLEGEMENT
This project wouldn’t have been possible without the kind support and help of many people. So,
we would like to express our deep gratitude to all.
We are highly grateful to our project guide and mentor , Dr. Anubha Vashisht, for her guidance
and constant supervision as well as for providing all the valuable information and insights
required for the project.
Also, her kind cooperation and support throughout, has helped us finish our project on time.
We would like to express my special gratitude towards my parents & members of Symbiosis
Centre for Management Studies for sharing their knowledge and encouragement which helped
me a lot in successful shaping up of the project.
Our thanks and appreciations also go to our friends and people who have willingly helped us out
with their abilities.
Our University, SCMS Noida, has provided us with a great learning experience and a chance to
improve our knowledge about the concepts
THANKYOU ALL.

INTRODUCTION
GLOBAL V/S FOREIGN BRANDS:
This study aims in understanding consumer perception of global brands vs. local brands
in the Indian retail industry. The Indian retail industry is undertaken for the study for the
simple reason being the strong growth of the retail sector in India. Organized retailing is
at its infancy in India and presents huge growth opportunity. Standing on the threshold of
a retail revolution and witnessing a fast changing retail landscape, India is all set to
experience the phenomenon of a global village. India presents a grand opportunity to the
world at large, to use it as a business hub.
The retail trade is highly fragmented in nature and it is often remarked that retail
in India is nascent and mostly unorganized. While it is true that they do not use
technology, they are well aware of the needs and wants of their customers, are aware of
their likes and dislikes and they know what and how much to stock.
However the business of retail in India has seen significant changes in the last few years.
We have seen the emergence of new formats and the application of global concepts
The emergence of store formats like Pantaloons, Shoppers Stop, Big Bazaar and Westside
have changed the retail scenario in our country thus making retail from ‘unorganized’ to
‘organized’.
Many international retailers have also entered the Indian market on the strength of rising
affluence levels of the young Indian population along with the heightened awareness of

global brands, international shopping experiences and the increased availability of retail
real estate space.
Globalization has a lot to do with consumers. Consumers in India are now becoming
more informed, sophisticated and demanding. India is one of the youngest countries in
the world, and the attitudes of the Indian consumers are changing at a rapid pace. With
Globalization more and more Indians are becoming aware of westernized products and
they feel that possession of global brands in front of their social groups (friends and
families) gives them a sense of status and prestige.
This study therefore focuses on the reasons as to why consumers in emerging
markets particularly India prefer foreign brands over local brands and it also proves that
consumption is carried out for reasons such as symbolic consumption, materialism and
depiction of high status and image.
There were days when merely wearing good quality, attractive clothes was considered
fashionable. But gone are those days! Today, one needs to do much more than this to be
seen as a fashion symbol. One also ought to be conscious of the accessories that they
wear to go along with their clothes and their footwear.
FOOTWEAR IN INDIA:
The footwear industry in India is expanding at an incredible rate. The Indian footwear
industry is estimated to be of around 10.15 lakh crores as for now and is believed to
reach 12.34 lakh crores by 2015. It is increasing at a rate of about 15 percent per annum.

Common Indian public is increasingly accepting stylish and branded footwear in their
day to day lives. It has become as important as clothing and apparel for them. Indians
wear various kinds of footwear like shoes, slippers, sandals, boots, flip flops, moccasins,
and many others.
It is easy to come across various brand names when it comes to footwear in India. Bata,
an Indian brand, is the most popular of all the brands in the country. Liberty, Khadims,
Metro Shoes, Relaxo, and Paragon are other sought after Indian brands. Woodland, Nike,
Reebok, Adidas, FILA, and Puma are the most spotted international brands in India.
Branded shoes are the only credible shoes around – or so it is believed.
These have become an absolute luxury commodity for even the middle class. Unless your
everyday shoes are not branded, they are of little value now. There are a lot of shoe
brands in India that have existed over many years and have modified their products based
on the tastes of the younger and older generation, with time. Let us have a look at the top
5 footwear brands in India:
Reebok:
Reebok is one of the pioneers in sports and lifestyle products. The brand over the years
has developed and has evolved from one thing to another based on the appeal to the
current generation – which is hat has made them a leader in the sector.
Reebok offers shoes for – girls, boys, men, women, sports, classics etc.
Bata

Bata is the largest maker and retailer in India and has been for years together now. It was
founded in 1931 as Bata Shoe Company Private Limited. Bata’s manufacturing facility
was accredited with ISO: 9001 certification – one of the first in India.
Its major products are for women, children and men.
Nike
Nike is a global leader in sportswear and casual wear now. The brand that is based out of
Portland, Oregon, has made its mark with the Indian public by and large. It is a leading
brand that has made its mark in sporting gear and apparel. Nika has over 44,000
employees all over the world and a revenue of US $24.1 billion.
Nike has products in the following categories: Men, men’s training, women, women’s
training, kids, golf, running, snowboarding, basketball, skateboarding, football, tennis,
soccer, surfing
Adidas
Adidas has style and elegance and is one of the most sought after she brands in India. It
was founded by the Dassler brothers – Adi and Rudoph and were the first company to
have launched football sneakers with studs. There was no looking back for them since.
Their products include shoes in the following categories: women, girls men, boys,
adventure, outdoors, sneakers, canvas, sandals, slippers and sports
Liberty
The brand has been in business for about 50 years or more and is world-famous. Its
present revenue is at about 600 cr INR. It is among the top 5 leather footwear makers and
operates in 25 countries. Liberty has 6000 multi-brand showrooms and about 400
exclusive outlets. Their products – men, women, boys and girls.

LITERATURE REVIEW
Global brands
‘People are pawns in the hands of giant companies with huge advertising budgets and
global reach. Brands bring something that people think is better than what they feel’.
- (The Economist)
With globalization touching the nooks and corners of every nation a global consumer segment
has arisen whose needs and interests are becoming increasingly homogeneous. The growing
integration of international markets as well as the growth of competition on a worldwide scale
implies that adoption of a global perspective has become increasingly imperative in planning
marketing strategy (Douglas, 1987) .
As the world is shrinking in to a global marketplace, it is increasingly significant to understand
the consumer’s perception of global brands and local brands. Studying consumer perceptions
towards global vs. local brands have substantial implications in marketing and will also serve as
a citation for future research. There would also be several reasons for consumer’s perceptions
and attitudes towards these brands. Thus there is a need to uncover the reasons for
consumer’s preference for global brands over local brands.
Consumer perceptions of global and local brands:
A local brand can be defined as a brand that exists in one country or in a limited geographical
area (Wolfe, 1991). Schuiling et al (2004) point out that local brands belong to a local,
international, or a global firm, they also provide a link between national economy and
individual well-being. Several researchers define global brands as “a brand that is marketed
under the same name in multiple countries with similar and centrally located coordinated
marketing strategies”.Schuiling et al (2004) conducted an exploratory study across some
countries to see how consumers perceive local brands. The study revealed that foreign brands

benefit from strong brand equity and also benefit from higher consumer awareness than local
brands do and they enjoy a strong brand image. They not only benefit from a good quality
image but also from a better value and trust perception than local brands do (Holt et al, 2003).
Value is linked with the fact that prices of local brands are usually lower than those of
international brands, providing consumers as sense of better value for money (Schuiling et al,
2004).
Local brands are perceived as more “down to earth” than an international brand, which means
that local brands offer a more basic/no frills brand proposition. Local brands are also linked
more to local traditions and local cultures than international brands are. It was also found that
trust is an important advantage for local brands because it provides a unique relationship with
consumers that take years to develop. Local brands are not more flexible than global brands in
terms of their marketing activities when they compete in a foreign product category due to
cultural categories being associated with the product category (Eckhardt, 2005). Just as global
brands need to conform to international marketing dictums, local brands sometimes need to
conform to deeply held preconceptions about product category in which they operate.
Consumers prefer global brands because they usually offer more quality and better guarantees
than other products. that perception often serves as a rationale for global brands to charge
premiums. Consumers look to global brands as symbols of cultural ideas. They use brands to
create an imagined global identity that they share with like-minded people. They feel that
“Local brands show them what they are while global brands show them what they want to be”,
global brands often make them feel like citizens of the world, and they somehow give them a
sense of identity (Holt et al, 2004).
Reasons for preferences for global over local brands :

According to Steenkamp, (2003) consumers become perceptive to global brands when
consumers believe the brand is marketed in multiple countries and is recognised as global in
these countries.
Kapferer (1997) suggests that consumers may prefer foreign brands because of associations of
higher prestige. Steenkamp et al (2002) argue that the influence of perceived prestige on
purchase intention is stronger when product category is more conspicuous and its ownership or
consumption is more publicly visible. The world scale of global brands allows people to
associate themselves with globally recognized events (World Soccer Cup, Formula one,
Olympics, etc) and celebrities (Brad Pitt, Beckham etc).
Empirical study conducted by Steenkamp et al (2003) has revealed that prestige is the second
factor driving global brand preference. Foreign brands of most consumer durables and non
durable categories were given significantly higher mean attribute ratings on “status and
esteem” except where “cold drinks and ice creams were concerned”. A study conducted by
Kinra (2006) held that COO credibility of foreign brands was a significant factor influencing
consumer attitudes and preferences as it was correlated highly with “quality” and “higher
status” and esteem.
According to Kapferer (1997), if a brand is viewable as globally available, consumers
may attribute higher quality to the brand because such quality is likely to be thought of as
critical to global acceptance. According to Kirmani and Baumgartner (2000), perceived
quality is defined as a consumer’s evaluation of a brand’s overall excellence based on
intrinsic (e.g. performance, durability) and extrinsic cues (e.g. brand name warranty)
Global brands often appeal to human universals and are purchased to signal membership
in worldwide consumer segments. This signifies that global brands are often seen by
consumers as brands that convey worldwide citizenship, when consumed (Dawar and
Parker, 1994). A number of authors (Appadurai, 1990; Hannerz, 1990) note that media
flows, increased travel, and other factors are creating widely understood symbols and
meanings reflected in global brands that, in turn, communicate membership in the global

consumer community with all its positive connotations (Mc Cracken, 1986). Although
this was being said some twenty years back, this condition has grown eventually stronger.
Global Brands are viewed as luxury goods for an average Indian. The market for luxury
goods has recently experienced a considerable growth. From the above it can be
concluded consumers in developing countries tend to evaluate global brands in terms of better
product and service quality, they also tend to relate global brands as symbols of
social status. The COO of origin has also been found as a significant factor influencing
global brand preferences in terms of status and quality.
OBJECTIVE OF THE STUDY
Through this study, we aim to fulfill the following objectives :
• The main objective of study is to draw concrete conclusions about the differences in consumer
shopping behavior and perceptions in case of foreign brands and local brands.
• To study the reasons for consumer preference of global brands over the local ones.
• To find out the product attributes that are mostly considered by consumers when buying a
brand and the importance given to the attributes.

RESEARCH PROPOSAL
TOPIC OF RESEARCH: our project aims to do a comparative study of shopping behavior
(attitude) towards local v/s foreign brands.
INTRODUCTION: with the expansion of foreign retailers and the shifts in consumers’ attitudes
and behavior, domestic retailers have felt ever stronger pressure to make their competitive
strategies more effective, so that they can compete against foreign brands.
Strategic positioning has become a critical issue for gaining both a sustained customer count and
a leadership position in the market. The key question is how retailers can get customers to visit
their stores more frequently and buy more merchandise on each store visit. Since the success of
brands depend on consumers, it is important to examine the perceptions about the brand image.
OBJECTIVE: through this study, we aim to find out some important factors which affect the
shopping behavior of the consumers and they vary in case of local brands and foreign brands.
SUB- OBJECTIVE: a comparison between the factors which affect the consumers’ shopping
behavior in case of local brands and foreign brands.

RESEARCH METHODOLOGY
The most suited research method for this study would be a combination of exploratory and
descriptive research. There is a detailed study of the factors under consideration and the method
of study is a survey through a well-designed questionnaire, which is a tool for primary data
collection. Through the questionnaire we attempt to find out the consumer preferences and
choices between local brands and foreign brands which will help in the comparative study. Also,
we will use secondary data for reference about the subject matter.
Sample size: a sample size of about 70 is taken under the study (belonging to mixed age groups
and both gender so as to get a general conclusion). The target population belongs to upper
middle income groups and higher who can generally afford both local and foreign brands.
Sampling method: In this survey, non-probability sampling method will be used under which
convenience sampling techniques will be used to get the required sample size. This technique is
used to draw conclusions about the whole population by studying just a small group of
individuals and convenience sampling will help us gather responses from people as per our
convenience saving time but being the representative of the whole population will give us correct
results for the study. Unlike in other sampling techniques wherein we have certain pattern to
follow for choosing the sample, this method of sampling is easier.

ANALYSIS AND CONCLUSIONS
SECTION 1: PIE CHARTS AND INTERPRETATIONS :
From the above pie chart, we can say that the proportion of male respondents is 37% and the
proportion of females is 63% in the total sample size.
From the above figure, we can conclude that the major proportion of the respondents belong to
the income category ranging from 1-5 lakh (39%). And 30% of the sample size belongs to the
income category of Rs. 5-10 lakh. Rest of the respondents belonging to below 1 lakh monthly

income category are 24% of the total sample and a very small proportion of samples(7%)
belongs to the income category of 10 lakhs and above.
From the above figure, we can conclude that more than half of the population (52%) prefer to
buy both footwear from local brands as well as foreign brands. Whereas, 31% of the respondents
preferably buy foreign branded footwear and 17% of the respondents prefer to shop footwear
from local brands/ retailers.

The purpose of this question was to evaluate and discover how important a factor such as price is
in determining whether the consumers would go for the domestic brand or stick to the global one
if both the products were in the same price range. The results found out that 66% of the
consumers would go for the international brands whereas 34% would still purchase the domestic
ones.
51, 73%
19, 27%
fig.5 CUSTOMER SERVICE
YES
NO
From the above figure, we conclude that 73% of the respondents believe that customer services
are better in foreign brands as compared to local brands. Customer services like attending to the
customers, responding to their needs and a great shopping experience, all these add to the foreign
brands being preferred more.

From the above figure we can say that 34% of respondents agree with the notion that people buy
foreign brands so that they can be accepted in a particular social group, where as 44% says that
sometimes and 22% of respondents disagree with the same. This means that almost majority of the
respondents somewhat believe that foreign brands are a status symbol. The results to this questions
confirmed the general perception that exists in our society, that is, the global are purchased as a status
symbol. The youth mainly bought foreign branded products to be able to fit in a particular social group.
This occurs largely because peer pressure tends to be high at this age, and most of the people find
themselves being victims of inferiority complexes.
From figure 7 we conclude that 53% of respondents completely agree and 30% somewhat agree
that foreign branded footwear adds to their personality on the other hand 17% disagreed with the
same. Thus it can be concluded that most of the people buy foreign branded footwears as an
added value to their personality. Thus for them, foreign brands have a ‘show’ value.

From the above figure, we can conclude that most of the respondents very rarely or may be
sometimes, compare the prices between local or foreign branded products of same category.
SECTION 2: ANALYSIS THROUGH PAIRED T-TEST :
In this study paired t-test was applied to find out whether there is any significant difference
between the factors influencing local brands and foreign brands or not. So the comparison
between the factors influencing foreign brands and local brands are done on the basis of the man
ratings.
Table 1: mean values of the different factors in influencing consumer preferences of the
global brands over the local brands :

FEATURES MEAN RATINGS
LOCAL BRANDS FOREIGN BRANDS
PRICE 3.71 4.15
VARIETY IN DESIGNS 3.79 4.24
QUALITY 3.15 3.62
DURABILITY 3.2 4.47
AVAILABILITY 3.84 3.98
STYLE 3.42 4.44
COMFORT 3.14 3.59
On comparing the mean ratings of different factors influencing consumer preferences between
global brands or foreign brands, we can conclude that most of the values of the influencing
factors in case of foreign brands were on the higher side in comparison to local brands.
In case of local brands, factors like availability, variety in designs and prices of products were
given the highest mean ratings. Whereas in case of foreign brands, factors like style and
durability were given highest ratings.
Prices are higher in foreign brands and because of the same reason it is perceived that foreign
brands provide with better quality products (footwear, in the study) as higher prices are
associated with higher quality. For examples: ladies footwear from flea markets like Sarojini
Nagar market or G.K., M block market are cheaper and the usage period is also quite small.
Whereas footwear from brands like Reebok, Lotto etc. are high priced footwear which are of
better quality and used for a longer duration of time.
Also respondents feel that foreign brands offer with a wider variety of products (footwear) as
compared to local brands. For example brands like Reebok, Nike, Puma etc. provide a large
variety of footwear for different occasion like sport, casual, executive etc.
When it comes to durability, most of the responses were in favor of foreign brands only. It is
expected that due to high quality of material being used to manufacture foreign products
(footwear), the products are more durable and can withstand rough handling.
But in case of availability, both local and foreign brands are considered to be on the same
platform. It means that whether it is local brands or foreign brands, both are easily accessible, or
found in nearby localities.
Style is one attribute which is majorly found in case of foreign brands. Foreign brands are more
conscious to their customer personality and preference, thus the products are styled to match
individual customers’ choices and so take care of the ‘style statement’ element in their products
(footwear).

Even in case of comfort, both foreign and local brands are given similar mean ratings. So, we can
say that both foreign brands of footwear and local brands give almost the same kind of
importance to the comfort factor.
EXECUTIVE SUMMARY
The emergence of a global marketplace has fuelled the growth and awareness of fashion brands
across India. As India opened up its economy to the rest of the world a whole lot of foreign
brands like Reebok, Nike, Tommy Hilfiger, Woodland etc. entered India thus influencing the
minds of the consumers in decision making. Due to the immense exposure of these global brands
there have been major changes in perceptions of Indians as far as local brands are concerned.
From this study we can conclude that,
• Consumers tend to evaluate global brands in terms of better quality and perceived
globalness. International brands appeals to consumers to a great extent. generally foreign
products offer better quality than Indian brands and give more customer satisfaction.
They may be more expensive but then one has to pay for quality products. global brands
are liked because they usually offer more quality and better guarantees than other
products.
• Consumers exhibited that global brands made them feel a part of the global consumer
culture and gave them recognition. It was also revealed that consumers preferred paying
for brands which were recognized as they gave them a sense of ‘global identity’. The
main difference between a global and local brand is just the ‘name’. People easily
recognize foreign brands and this makes a consumer feel that he/she is a part of
something bigger.
• Not only do the consumers associate global brands with quality but also trust, innovation
and technological advancement. In case of footwears, brands like Reebok, Nike etc. are
constantly innovating with their footwears and staying ahead of their competitors, giving
the ‘superior’ feeling to their customers.

• If given a choice between global and a local brand, consumers would go in for a global
brand for sure. As per their responses, local brands are good but not as good as the
foreign ones in quality, technical expertise and designs. Global brands are always
upgrading themselves and keep coming out with new products all the time whereas local
brands are pretty predictable and more or less the same especially in case of footwear.
• Earlier Indians use to correlate to branded goods as luxury items but today due to the
immense exposure and more and more Indians travelling abroad there has been a
tremendous change in the way Indians perceive branded goods.
Consumers are now moving towards westernization due to impact of globalization.
PERSONAL REFLECTIONS
Due to increasing westernization consumers are more driven towards buying foreign brands.
This has led to changing needs and preferences of consumers. Consumers now are developing
more of a materialistic behavior and are consuming brands as symbols of status and prestige.
Western culture has made indian consumers, particularly belonging to upper middle class, buy
foreign brands more and associate them with social recognition and status symbol.
Now mangers, in the current scenario need to understand the changing perceptions and
preferences of consumers in case of both foreign brands and local brands. There could be
discrepancies in the perception of the mangers about the consumer perception and the
consumers’ perceptions itself. Moving towards a modern culture, consumers are juding products
on aesthetcs also.
As more competition is creeping in the market from the foreign brands, local brands need to
deliver products and performance to match up the consumer needs. Also their products should
me inclined towards the foreign designs and style. But at the same time, it should be kept in mind
that to survive in the markets, local brands need to offer improved quality of products with lower
prices and deliver better stylized, accessible and durable products to its consumers.

REFERENCES
THE FOLLOWING WEBSITES WERE REFERRED TO FOR THIS PROJECT:
• http://www.fibre2fashion.com/industry-article/40/3930/footwear-in-india-a-bit-about-brands1.asp
• http://business.mapsofindia.com/top-brands-india/top-shoe-brands-in-india.html
• http://www.sakshipost.com/index.php/lifestyle/good-living/14151-top-5-footwear-brands-in-
india.html
• http://www.browneandmohan.com/file3.pdf

ANNEXTURE
QUESTIONNAIRE
A COMPARITIVE STUDY ON CONSUMER PURCHASE BEHAVIOR IN LOCAL AND FOREIGN BRANDS
AGE:
GENDER:
MONTHLY INCOME:
• BELOW 1 LAC
• 1-5 LACS
• 5-10 LACS
• ABOVE 10 LACS
Q1. What type of footwear do you usually buy?
a) Foreign brands
b) Local brands
c) both
Q2. Rate the factors according to your perception on a scale of 1-5 (1 being lowest, 5 being highest):
Factors influencing purchase Local brands Foreign brands
Price
Variety of designs
quality
durability
availability
style
comfort

Q3. Before buying any footwear, do you compare the prices or variety of the same between foreign
brands and local brands?
a) Always
b) Sometimes
c) Rarely
d) Never
Q4. If in case any local brand footwear and foreign brand footwear are priced same, would prefer to buy
foreign brand footwear?
a) Yes
b) No
Q5. Is customer service (attending to customer needs) better in foreign brands as compared to local
brands?
a) Yes
b) No
Q6. It is said that people buy foreign brands so that they can be accepted in a particular social group
(status symbol). Do you agree?
a) Yes
b) No
c) Sometimes
Q7. For which occasion do you prefer foreign/ local footwear? (tick in the respective columns)
Occasion Local Brands Foreign Brands
Casual wear
Party wear
Executive/formal wear

Q8. Do you feel that foreign brand footwear adds to you personality?
a) Yes
b) No C)Maybe
T- TABLE RESULTS
prices
t-Test: Paired Two Sample for Means
Variable 1 Variable 2
Mean 3.710144928 4.15942029
Variance 1.120630861 0.753623188
Observations 69 69
Pearson Correlation -0.10900124
Hypothesized Mean
Difference 0
variety of designs
Mean 3.79710145 4.246376812
Variance 1.22293265 0.629582268
Observations 69 69
Pearson Correlation 0.07456806
Hypothesized Mean Difference 0
quality
Variable
1
Variable
2
Mean 3.15942 4.623188
Variance 1.077153 0.561807
Observations 69 69

durability
Mean 3.202898551 4.47826087
Variance 1.222932651 0.606138107
Observations 69 69
style
Variable 1
Variable
2
Mean 3.420289855 4.449275
Variance 1.39428815 0.456948
Observations 69 69
COMFORT
Variable
1
Variable
2
Mean 3.144928 4.594203
Variance 1.537511 0.391731
Observations 69 69

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