The dynamics of the country-of-origin effect in the cosmetic sector in Asia : an empirical study for the cosmetic sector in Thailand | |
| Author | Tatsanaporn Todhanakasem |
| Call Number | AIT RSPR no.SM-07-55 |
| Subject(s) | Cosmetics--Marketing--Thailand Brand name products |
| Note | A research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration in International Business |
| Publisher | Asian Institute of Technology |
| Abstract | Korean cosmetic companies have been growing continuously in cosmetic sector in Thailand while the popularity of Korean cultural contents has been sweeping across Asia. This raises the topic of consumer's fit perception of country-of-origin of a product. The main purpose of this research is to investigate the effect of country-of-origin and factors influencing the use of country-of-origin on quality evaluation of cosmetic products. Based on literature reviews and the objective of the present study, a conceptual model was constructed with hypotheses. Embedded in this empirical study, survey is conducted to Thai women. Descriptive and statistical methods were exploited for data analysis. The findings show that country-of-origin does not systematically and significantly affect a consumer's perception of product quality but the individual quality of brands does. The growth of Korean cosmetics in Thailand is not indebted to Korean wave as it does not influence better quality perception of Korean cosmetic brands. Only the group of people who believe that Korean cultural contents are trendy and love them will perceive higher quality of Korean cosmetic products. Product knowledge has no significant effect on using country-of-origin to evaluate products. For consumers with high involvement in term of information search intention, extrinsic cue as country-of-origin is disregarded for product evaluation. On the other hand, price has strongly positive significant effect on product evaluation. As a conclusion, existing foreign cosmetic manufacturers, importers or new entrants who want to import their products to Thailand should not focus on promoting country-of origin in their marketing strategies. To increase sales, they should emphasize on product attribute, quality, strengthening the brand equity and enhancing brand awareness. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Beise-Zee, Rian |
| Examination Committee(s) | Dimmitt, Nicholas J.;Sununta Siengthai |
| Scholarship Donor(s) | RTG Fellowship |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |