This document summarizes a study that aimed to understand how the country of origin impacts Filipino young professionals' evaluation of mobile phone alternatives. The study found that country of origin does not have a significant impact on key individual differences like brand image, purchase inclination, loyalty, and quality assessment. While some countries had stronger perceptions for certain attributes, country of origin overall was independent from individual differences. The recommendations were to highlight country-specific strengths in marketing but not emphasize country of origin itself, and conduct further research with larger samples.

1. DETERMINING THE IMPACT OF
COUNTRY OF ORIGIN
ON FILIPINO YUPPIES’ EVALUATION OF
MOBILE PHONE ALTERNATIVES
JOSES SACILIOC
JULIUS PALSIS
RIO VILLAMIN
MAAN BLANCH
DE LA SALLE UNIVERSITY
DR. MARIA VICTORIA TIBON

2. Mobile phones continue to dominate the communications industry
generating 108.7 million telecommunication subscribers in the
Philippines by end of 2012, with a yearly average growth of 12.9%.

3. With its continuous growth, mobile phones have been manufactured
from different parts of the world just to suffice the need for mobile
communication.

4. With so many choices to choose from, key comparison and
consideration points have also increased which makes it harder for
the consumer to make a decision.

5. Alongside with the mobile phone core attribute of communication and
other augmented attributes; product attributes, such as the country of
origin, is crucial in making a purchase decision.

6. In a country of origin point of view, this study aims to
understand the evaluation process a Filipino young
professional goes through before getting a mobile phone.

7. Country
of
Origin
Decision
Making
Process
Quality
Assessment
Inclination
to
Purchase
Brand
Loyalty
Brand
Image
In developing countries
foreign brands have
more positive
perception compared to
local brands while in
first world countries it is
the other way around.
This shows that culture
plays a role in the
impact of country of
origin. For developing
countries it seems that
the perception of the
country of origin seems
to be passed on to the
products.
Actual product quality differs from one country to
another even if they are manufacturing the same
product. However, the actual product quality doesn't
matter on a consumer standpoint. What matters for
consumers is the perceived product quality. This is
greatly affected by the country of origin.
Brand preference is developed when
the image of the country of origin is
seen as positive. This shows that as
brand familiarity is formed the image
of the country of origin ceases to be
passed on the product and begins to
be associated with the brand.
Consumers are more inclined to pay
higher prices for products with
country of origin that has a positive
image. This is because of the
perception and preference that is
established by the country of origin
image that is passed on the brand or
product depending on the situation.
Country of origin is one of the many information that
consumers look for. In most of the studies, country of
origin affects the decision making process especially
during the absence of a known brand.
LITERATURE
REVIEW

8. Synthesis of the LITERATURE REVIEW
• The country of origin does affect the decision making of consumers
when buying products.
• Specifically, other variables are dependent to the perceived country
of origin such as Brand Image, Inclination to Purchase, Brand Loyalty
and Quality Assessment.

9. Problem STATEMENT
Does the country of origin have an impact on key
Individual Differences like Brand Image, Inclination to
Purchase, Brand Loyalty & Quality Assessment before
making a pre-purchase decision?

10. OBJECTIVES
• To determine the perceptual profiles via Individual Differences of
Filipino yuppies on the following countries:
• Finland
• Korea
• USA
• China
• Japan
• Philippines
• To determine the state of dependency of Individual Differences
from the country of origin

11. OBJECTIVES
• To validate the consistency of brand attributes in statement
form from the country of origin
• To validate the consistency of mobile phone brand choice to the
mobile phone country of choice

12. STUDY FRAMEWORKS

13. THEORETICAL FRAMEWORK
CONSUMER DECISION MODEL
Need Recognition
Search
Evaluation of
Alternatives
Environmental Influences
Individual Differences

14. EVALUATION OF MOBILE PHONE
ALTERNATIVES
COUNTRY OF ORIGIN
CONCEPTUAL FRAMEWORK
COUNTRY OF ORIGIN & EVALUATION OF
MOBILE PHONE ALTERNATIVES
Individual Differences
• Brand Image
• Inclination to Purchase
• Brand Loyalty
• Quality Assessment
Pre-Purchase Decision
• Mobile Phone Brand Choice
• Mobile Phone Country of
Choice
PROBLEM STATEMENT
Does the country of origin have an impact on key Individual Differences like Brand Image, Inclination to Purchase,
Brand Loyalty & Quality Assessment before making a pre-purchase decision?

15. • Identify consistency
of brand attributes
in statements from
country of origin
• CORRELATION
• Identify consistency
of country of choice
from gadget of
choice
• CORRELATION
• Identify state of
dependency of
very-highly rated
brand attributes
from the country of
origin
• CHI-SQUARE
• Tabulated survey
results to identify
the best attributes
of mobile phones
per country.
• MULTI-
ATTRIBUTION
MODEL
Perceptual
Profile per
Country
BRAND
ATTRIBUTES VS
COUNTRY OF
ORIGIN
BRAND
ATTRIBUTES IN
STATEMENTS VS
COUNTRY OF
ORIGIN
COUNTRY OF
CHOICE VS
GADGET OF
CHOICE
METHODOLOGY

16. RESULTS AND FINDINGS

17. RESULTS
FINLAND
USA
CHINA
KOREA
PHILIPPINES
JAPAN
Brand
Image
(impression
on
the
product;
good
credibility)
3.760
4.200
3.720
3.610
2.790
4.110
InclinaQon
to
Purchase
3.200
3.950
3.770
3.370
2.650
3.770
Brand
Loyalty
(SQck
to
one
brand)
3.090
3.730
3.960
3.150
2.530
3.580
Quality
Assessment
(Durability
of
products)
3.870
4.080
3.950
3.480
2.690
4.140
Objective: To determine the perceptual profiles via Individual Differences of Filipino yuppies
on the following countries: Finland, Korea, USA, China, Japan, Philippines
Method: Multi-Attribution Model

18. FINDINGS
Country-Level Findings
Both Finland and Japan are known for the durability of mobile phones.
USA, Korea and Philippines are known for the brand image of their mobile phones.
China is known for brand loyalty.
Attribute-Level Findings
Brand Image and Inclination to Purchase is strongest in USA
Brand Loyalty is strongest in China.
Durability perception is strongest in Japan.
Objective: To determine the perceptual profiles via Individual Differences of Filipino yuppies
on the following countries: Finland, Korea, USA, China, Japan, Philippines

19. RESULTS
CHI-SQUARE TEST
OBSERVED FINLAND USA CHINA KOREA PHILIPPINES JAPAN TOTAL
Brand Image (impression on the product; good credibility) 19 45 0 13 3 39 119
Inclination to Purchase 4 28 3 8 2 24 69
Brand Loyalty (Stick to one brand) 3 23 0 4 0 21 51
Quality Assessment (Durability of products) 28 43 2 7 4 44 128
TOTAL 54 139 5 32 9 128 367
EXPECTED
Brand Image (impression on the product; good credibility) 17.50953678 45.07084469 1.621253406 10.3760218 2.918256131 41.50408719
Inclination to Purchase 10.15258856 26.13351499 0.940054496 6.016348774 1.692098093 24.0653951
Brand Loyalty (Stick to one brand) 7.504087193 19.31607629 0.694822888 4.446866485 1.250681199 17.78746594
Quality Assessment (Durability of products) 18.83378747 48.47956403 1.74386921 11.16076294 3.138964578 44.64305177
P-Value 0.056434681
Alpha 0.05
Objective: To determine the state of dependency of Individual Differences from the country of origin
Method: Chi-Square Test

20. FINDINGS
Accept the null hypothesis because p value (0.056) > alpha (0.05).
Country of origin is independent from individual differences such as
brand image, inclination to purchase, brand loyalty and quality
assessment.
This is sufficient statistical evidence that people who rated attributes
very highly is not affected by the country of origin.
Objective: To determine the state of dependency of Individual Differences from the country of origin

21. RESULTS
CORRELATION
Validating Statements vs Perceptual Profile Answers
VERY HIGH FINLAND USA CHINA KOREA PHILIPPINES JAPAN TOTAL
I buy a gadget because it has a positive brand image 38 19 45 0 13 3 39 119
I buy a gadget that I am inclined to purchase based on
needs
57 4 28 3 8 2 24 69
I buy a gadget that I have used before and had a positive
experience with it
59 3 23 0 4 0 21 51
I buy a gadget that has high quality 83 28 43 2 7 4 44 128
CORRELATION 0.374851282 -0.006214262 0.490925999 -0.623024852 0.283047984 0.252751684
0.16509
6157
Objective: To validate the consistency of dependency results via brand attributes in statement form
from the country of origin
Method: Correlation

22. FINDINGS
At 0.16 correlation, we have sufficient statistical evidence that the
attributions in statement form has non-existent or negligible
relationship to the perceptual profile answers.
This validates the independent state results from the chi-square test on
country of origin and the individual differences (brand attributes).
Objective: To validate the consistency of brand attributes in statement form from the country of origin

23. RESULTS
Country of Choice
Gadget of Choice Clustered
by Country
Finland 14 6
China 0 1
Korea 18 41
USA 65 72
Philippines 2 1
Japan 33 10
Correlation 0.846715612
Method: Correlation
Objective: To validate the consistency of dependency results via brand attributes in statement form
from the country of origin

24. FINDINGS
At 0.84 correlation, we have very strong correlation indicative of the
awareness of the respondents on where the mobile phone brands are
from.
This could mean that they are aware of the country of origin, but they
do not consider it as something that affects their views on brand
attributes.
Objective: To validate the consistency of mobile phone brand choice and mobile phone country of choice

25. SUMMARY OF FINDINGS
To validate the consistency of mobile phone brand choice and mobile phone country of choice
To determine the state of dependency of Individual Differences from the country of origin
To determine the perceptual profiles via Individual Differences of Filipino yuppies on the following countries:
Finland, Korea, USA, China, Japan, Philippines
CONSISTENT
CONSISTENT
INDEPENDENT
DIFFERS PER
COUNTRY AND
ATTRIBUTE
To validate the consistency of dependency results via brand attributes in statement form
from the country of origin

26. RECOMMENDATIONS
• Based on the strongest attributes in the defined perceptual profiles,
mobile phone brands in the Philippines can highlight the following
attributes where their country is known from in marketing
communication materials.
Finland
–
Quality
of
Mobile
Phones
USA
–
Brand
Image
(Branding
Efforts),
InclinaNon
to
Purchase
(Easy
AcquisiNon
of
Mobile
Phones)
Korea
–
Brand
Image
(Branding
Efforts)
China
–
Brand
Loyalty
(Loyalty
&
Rewards
Programs)
Philippines
–
Brand
Image
(Branding
Efforts)
Japan
–
Quality
of
Mobile
Phones

27. RECOMMENDATIONS
• Country of origin is neither a strong product differentiator nor key consideration,
therefore it should not be highlighted in marketing communication materials
for mobile phone brands.
• An identical study can also be conducted to assess the consistency of the
findings specifically on the state of dependency of Individual Differences from
the country of origin but sample size should represent the total Filipino young
professionals.
• Other trends that can be tested are on the following levels: gender, other stages
of the consumer decision model and focus on environmental differences,
particular market segments and the type of attribute they prioritize.

28. CONCLUSION
The country of origin of mobile phones does not have an impact on
key Individual Differences like Brand Image, Inclination to
Purchase, Brand Loyalty & Quality Assessment, before Filipino
yuppies make a pre-purchase decision.
EVALUATION OF MOBILE PHONE
ALTERNATIVES
COUNTRY OF ORIGIN
Individual Differences
• Brand Image
• Inclination to Purchase
• Brand Loyalty
• Quality Assessment
Pre-Purchase Decision
• Mobile Phone Brand Choice
• Mobile Phone Country of
Choice

29. APPENDIX A
BIBLIOGRAPHY

30. BIBLIOGRAPHY
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http://ageconsearch.umn.edu/bitstream/58014/2/Finardi.pdf.
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Ghalandari, K., & Norouzi, A. (2012). The Effect of Country of Origin on Purchase Intention: The Role of Product Knowledge. Research Journal of Applied Sciences, Engineering
and Technology.

31. BIBLIOGRAPHY
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32. APPENDIX B
DEFINITION OF TERMS

33. Individual Differences – are attributes dependent to the country of origin which includes: Brand
Image, Inclination to Purchase, Brand Loyalty and Quality Assessment.
Evaluation of Mobile Phone Alternatives – is a consumer decision level wherein a consumer makes a
pre-purchase decision.
Pre-Purchase Decision – when a mobile phone consumer chooses a phone of choice before actually
purchasing it.
Country of Origin – is an independent variable that affects individual differences
Brand Image – is the degree of positive or negative brand perception depending on the following
country of origin: Finland Korea, USA, China, Japan, and Philippines.

34. Inclination to Purchase – is the degree of willingness to spend money on a mobile phone depending
on the following country of origin: Finland, Korea, USA, China, Japan and Philippines.
Brand Loyalty – is the degree of loyalty for a mobile phone brand based on the following countries:
Finland, Korea, USA, China, Japan and Philippines.
Quality Assessment – is the degree of perceived quality of the mobile phone based on the following
countries: Finland, Korea, USA, China, Japan and Philippines.
Mobile Phone Brand Choice – is the specific mobile phone brand chosen by the respondents.
Mobile Phone Country of Choice – is the specific country chosen by the respondents

35. APPENDIX C
GADGETS PER COUNTRY

36. Country Brand
China
Huawei
Lenovo
Finland Microsoft Mobile (formerly Nokia)
Japan
Panasonic
Sony Mobile Communications
Philippines
Cherry Mobile (Re-brand of China made phones
Starmobile (Re-brand of China made phones)
Cloudfone (Globe Telecom Phone
South Korea
Samsung
LG
USA
Apple
Google Nexus
Motorola

37. MAAN BLANCH
JULIUS PALSIS
JOSES SACILIOC
RIO VILLAMIN
BUSINESSSTATISTICS
DR.MARIAVICTORIATIBON