COUNTRY OF ORIGIN EFFECTS AND LOYALTY FOR CEMENT BRANDS IN UGANDA

THURANIRA THIMANGU REG NO. 2006/HD10/8233K

A RESEARCH REPORT SUBMITED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF MASTER OF SCIENCE IN MARKETING OF MAKERERE UNIVERSITY DECEMBER 2010

DECLARATION I declare that the work presented and submitted is original and has never been done for any other degree award in any other university before.

Signature . T !"#$%"# T %&#$'! [Student]

Signature . D". ()*+, N-#.% [Supervisor]

Signature C #"/+* O&#')" [Supervisor]

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DEDICATION This research is heartedly dedicated to my parents( !ee "thimangu and artha won#iru$ !ee

who struggled to raise and educate us through difficulties and especially my late father %ndrew

"thimangu who at one time had to chose not to pay court fine and opted to go to

#ail during the colonial era so that he could pay fees for his children(&I'$.

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ACKNO0LEDGEMENT Though I did this research report single handedly( I was socially and technically offered support by a number of individuals and parties that I feel indebted to mention. I hereby acknowledge my supervisors( )r *oseph +tayi and r. ,harles -magor who

critically guided me throughout the entire research pro#ect. .ncouragement also from my wife )amaris who mentally inspired me cannot go unmentioned and my children also /ithin#i( /arei and wendwa who always kept on asking me when I was going to graduate.

%lso to all friends who assisted and encouraged me in any way are highly acknowledged.

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TABLE OF CONTENTS DECLARATION.............................................................................................................ii DEDICATION...............................................................................................................iii ACKNOWLEDGEMENT...............................................................................................iv TABLE OF CONTENTS................................................................................................v ABSTRACT.................................................................................................................vii CHAPTER ONE ...........................................................................................................1 1.0 Backgro !" ............................................................................................................1 1.1 S#a#$%$!# o& #'$ (ro)*$% ....................................................................................+ 1., 1.0 R$-$arc' '.(o#'$-$- ........................................................................................./ Sig!i&ica!c$ o& #'$ -# ".......................................................................................,

1.1 Co!c$(# a* &ra%$2ork..........................................................................................., 1.3 Sco($ o& #'$ -# "...................................................................................................0 CHAPTER TWO4 LITERAT5RE RE6IEW...................................................................1 +.1 Co !#r. o& Origi! a!" )ra!" *o.a*#........................................................................1 +.+ P$rc$iv$" 7 a*i#. a!" )ra!" *o.a*#.........................................................................8 +./ P$rc$iv$" 6a* $ a!" )ra!" *o.a*#.........................................................................9 +., Bra!" *o.a*#.........................................................................................................10 CHAPTER THREE4 RESEARCH METHODOLOG:..................................................1+ /.1 R$-$arc' D$-ig!................................................................................................1+ /.+ Po( *a#io! a!" Sa%(*i!g "$-ig!..........................................................................1+ /./ Da#a Co**$c#io!....................................................................................................1/ /., R$-$arc' i!-#r %$!#...........................................................................................1/ /.0 Da#a co**$c#io! M$#'o"........................................................................................1/ /.1 R$-$arc' Proc$" r$............................................................................................1, /.3 Da#a 7 a*i#. co!#ro*............................................................................................10 /.8 M$a- r$%$!#- o& varia)*$-.................................................................................10 /.9 Da#a a!a*.-i- %$#'o"-.......................................................................................11 CHAPTER FO5R4 RES5LTS AND FINDINGS OF THE ST5D:..............................13 ,.0 I!#ro" c#io! ..........................................................................................................13 T'$ r$- *#- &ro% #'$ a!a*.-i- o& #'$ "a#a 2$r$ (r$-$!#$" i! #'i- c'a(#$r -i!g -#a#i-#ica* #a)*$- - c' a- #'$ cro-- #a) *a#io!-; Corr$*a#io!- a!" r$gr$--io!-. T'$ r$- *#- 2$r$ (r$-$!#$" a- ($r #'$ &o**o2i!g r$-$arc' o)<$c#iv$-=..............................13 a.Sa%(*$ c'arac#$ri-#ic- ............................................................................................18 R$- *#- i! #a)*$ ,.1.1 -'o2 #'a# 10.3> ar$ %a*$ a!" /,./> o& #'$ r$-(o!"$!#- ar$ &$%a*$. Mo-# o& #'$ 'ar"2ar$ "$a*$r- 2$r$ i! #'$ /1? ,0 .$ar ag$ gro ( a!" 11.,> o& #'$-$ 2$r$ Ma*$ a!" /8.1> o& #'$% 2$r$ &$%a*$. I! #'$ 18 @ /0 .$ar ag$ )rack$#; v

09.0> 2$r$ %a*$ a!" ,0;0> 2$r$ &$%a*$. I# -'o *" )$ !o#$" #'a# ov$ra**; #'$r$ 2$r$ %or$ %a*$- #'a! &$%a*$- a!" #'i- 2a- o)-$rv$" #o a((*. &or a** #'$ ag$ gro ( ca#$gori$-;. T'$ ov$r 00 .$ar ag$ )rack$# 'a" &$%a*$- co!-#i# #i!g o!*. +0.0> a!" #'$ "o%i!a!# g$!"$r 2$r$ #'$ %a*$ "$a*$r-..............................................................18 ,.1.+ Hig'$-# *$v$* o& $" ca#io! a!" G$!"$r Di-#ri) #io! .........................................19 ,.+ T'$ *$v$* o& Co !#r. o& Origi! E&&$c#-; Bra!" Lo.a*#.; P$rc$iv$" 6a* $ a!" P$rc$iv$" A a*i#. a%o!g C$%$!# -$r- i! 5ga!"a. ................................................+, Ta)*$ ,.+1 T'$ *$v$* o& Co !#r. o& Origi! E&&$c#-; Bra!" Lo.a*#.; P$rc$iv$" 6a* $ a!" P$rc$iv$" A a*i#. a%o!g C$%$!# -$r- i! 5ga!"a. .........................................+, ,./ R$*a#io!-'i(- )$#2$$! 6aria)*$- .................................................................+1 R$*a#io!-'i(- )$#2$$! 6aria)*$- .......................................................+1 Ta)*$ ,./

,., R$gr$--io! A!a*.-i-.............................................................................................+3 Ta)*$ ,., R$gr$--io! A!a*.-i-...................................................................................+3 ,.0 F r#'$r Fi!"i!g- ...................................................................................................+8 CHAPTER FI6E4 DISC5SSION; RECOMMENDATIONS AND CONCL5SIONS ..../1 0.1 I!#ro" c#io! ........................................................................................................../1 0.+ T'$ *$v$* o& Co !#r. o& Origi! E&&$c#-; Bra!" Lo.a*#.; P$rc$iv$" 6a* $ a!" P$rc$iv$" A a*i#. a%o!g C$%$!# -$r- i! 5ga!"a. ................................................/1 0./ Co !#r. o& Origi! $&&$c#- a!" Bra!" Lo.a*#........................................................../+ 0., Co !#r. o& Origi! E&&$c#-; P$rc$iv$" 6a* $ a!" Bra!" Lo.a*#.............................// 0.0 Co !#r. O& Origi! E&&$c#-; P$rc$iv$" A a*i#.; P$rc$iv$" 6a* $ A!" Bra!" Lo.a*#..........................................................................................................................// 0.1 Co!c* -io!-........................................................................................................../, 0.3 R$co%%$!"a#io!- .............................................................................................../, 0.8 Ar$a- &or & r#'$r r$-$arc' ..................................................................................../1 REFERENCES.........................................................................................................../3

vi

ABSTRACT This study was aimed at e0amination of the level of the ,ountry of -rigin effects( 'erceived 1alue( 'erceived 2uality among the ,ement users( and e0amine how these variables are related to the 3rand 4oyalty element. To efficiently conduct the study( the researcher targeted 567 8ardware dealers located in /ampala who sell cement as per the rationale of /re#cie and organ (59:6$ to make a more scientifically #ustifiable sampling frame. The results indicated positive relationships between the variables which( were ,ountry of -rigin effects( 'erceived value and ;uality and 3rand loyalty. The regression model shows that the various independent and intervening variables are able to e0plain <=.5> of 3rand 4oyalty. %fter these findings( various recommendations were raised and these included? To attract more demand as regards the country of origin( manufacturers who import to @ganda and don"t have plants in @ganda should rethink putting up factories here. This will have more appeal to the citi!ens as they feel it belongs to them. This has been reflected in the results whereby most of the respondent preferred the brands from @ganda. anufacturers of these brands

ought to communicate the value of their cement brands to key parties in their markets for instance the opinion leaders in the construction industry and this will help form the necessary attitudes toward brands. This can be done through advertisements in both electronic and print media( through sponsorships( seminars.

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CHAPTER ONE 1.0 B#12'")!$3 The @ganda market has continued to attract more cement imports despite surplus production of cement by two local cement manufacturers (Tororo and 8ima cements$. The @gandan cement market has an annual consumption capacity of more than 5(566 metric tons of cement (www.ubos.org$.This is a market which has mostly been dominated by &ock and ultipurpose

brands from Tororo and 8ima respectively. -ther players are mostly imports from /enya( ,hina( .gypt( South %frica( Turkey( 'akistan etc. The increase in imports despite the availability of local cement brands is an indication that there is brand switching from local to imported brands. The imported brands account for more than A:> of the total domestic consumption and their demand is on the rise (See appendi0 5$. This increment in imports has been intensified by competition on the local market. )ue to this competition from imports( the local manufacturers have embarked on e0ploring e0port markets for the surplus and they are reali!ing positive results (see appendi0$. The period B66A to B667( the cement Imports increased by 5AC> while on the other hand( the 4ocal 'roduction in the country increased by B9>. This could be attributed to increased demand in the @gandan market. 8owever the big increase for the imports is a reflection of consumer"s preference for imported cement The total production in @ganda is more than 5(=66mt annually against a demand of 5(566mt. (www.tororocement.com and daily monitor of 5:D6:DB669$. This means there is surplus and consumers are still buying imports and this can be attributed to ;uality issues because there has been fake cement in the market due to adulteration and this has made the consumer perceive imported cement as better in terms of ;uality and value (,onan 3usinge( +ew 1ision of

5D6:DB669( and Eodfrey /imono( +ew 1ision of 56D65DB656$. Fith this in mind( it is no surprise that e0ports increased by 99A> and the +et )omestic ,onsumption increased by A7> between B66AGB667 (www.ubos.org$. In addition( the @ganda manufacturers association has advocated @gandans to buy @gandan product as a way of promoting brand loyalty amongst @gandans due to competition from imports (www.ubos.org$. It is against this background that this study seeks to establish the relationship between ,oo effects and brand loyalty( 'erceived value and perceived ;uality. @ganda consumption of imported cement brands has been observed to be on the rise despite abundance of local brands (B669 @3-S Import &ecords$. There is a growing interest and demand among @gandan consumers for imported brands for foreign brands this could be attributed to ,ountry of -rigin effects( negative effects associated with the 'erceived 2uality and 'erceived 1alue of these local brands which have conse;uently improved the 4oyalty for imported cement brands.

1.1 S-#-+&+$- )4 - + ,")5/+& @ganda usage and transactions of imported cement brands among the 8ardware dealers has been observed to be on the rise despite abundance of local brands (B669( @3-S Import &ecords$. This growing interest and demand for imported brands for foreign brands could be attributed to ,ountry of -rigin effects( negative effects associated with the 'erceived 2uality and 'erceived 1alue of these local brands which have conse;uently improved the 4oyalty for imported cement brands.

1.2

P!",)*+ )4 - + *-!3.

The purpose of the study was e0amine the level of the ,ountry of -rigin effects( 'erceived 1alue( 'erceived 2uality among the ,ement users( and e0amine how these variables are related to the 3rand 4oyalty element.

1.3

R+*+#"1 O56+1-%7+*

i. To e0amine the level of ,ountry of -rigin .ffects( 3rand 4oyalty( 'erceived 1alue and 'erceived 2uality among ,ement users in @ganda. ii. To establish the relationship between country of -rigin effects and brand loyalty. iii. To establish the relationship between country of origin effects( perceived value and brand loyalty iv. To establish the relationship between country of origin effects( perceived ;uality( perceived value and brand loyalty. 1.8 R+*+#"1 .,)- +*+*

i. Fhat is the level of ,ountry of -rigin .ffects( 3rand 4oyalty( 'erceived 1alue and 'erceived 2uality among ,ement users in @gandaH ii. Fhat is the relationship between country of -rigin effects and brand loyaltyH iii. Fhat is the relationship between country of origin effects( perceived value and brand loyaltyH iv. Fhat is the relationship between country of origin effects( perceived ;uality( perceived value and brand loyaltyH

1.9

S%'$%4%1#$1+ )4 - + *-!3.

Iindings of this study will help the manufacturers of ,ement in understanding how the country of origin effect( affects their e0port market. This will help them in laying down fundamental competitive strategies for share of mind( survival( market share e0pansion( customer retention( building on customer loyalty etc. The study will also help marketers" especially in e0port markets in understanding the importance of country of origin and will use the marketing tools of marketing mi0 at their disposal to capture either consumer"s positiveDnegative perception about their respective brands. This will lead to increased market share.

,onsumers will also benefit in understanding their own behavior. Fith such knowledge( consumers will be able to make fast viable decisions. Ior academicians( various proposals will be suggested for further research. The research will also be of fundamental importance to both future researchers and academicians in pursuing this sub#ect further. 1.6 C)$1+,-!#/ 4"#&+:)"2 The conceptual framework will be based on three independent variables vi!J country of origin( perceived ;uality and perceived value. 8owever( there are other variables like word of mouth( price( promotion( packaging etc which also have effects on country of origin and brand loyalty. There are also other moderating variables like government policies and various associations which also have effects on coo and brand loyalty. The conceptual frame work was mostly influenced by the following scholars" works? ,armina and ,arlos Ilavian (Intrinsic and e0trinsic ;uality attributes( loyalty and buying intentionJ an analysis for a ')- product$.

F%' 1; S ):* 1)$1+,-!#/%<#-%)$ )4 ): %$3+,+$3+$- 7#"%#5/+* "+/#-+ -) 3+,+$3+$- 7#"%#5/+.

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3&%+) '.&,.I1.) 1%4@. 4-K%4TK

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1.= S1),+ )4 - + *-!3. The study sought to e0amine the e0tent to which brand loyalty is influenced by country of origin and 'erceived 2uality with the intervening variable as 'erceived 1alue in cement industry. It defines why consumers have been switching from one brand to another in the @gandan market. 8owever due to time and resource limitations( the research concentrated in /ampala market and analy!ed the factors like perceived value( perceived ;uality( price( packaging( word of mouth( promotions etc that affect the country of origin in regard to brand loyalty.

CHAPTER T0O; 2.0 I$-")3!1-%)$

LITERATURE REVIE0

This section presents a review on the related literature on the sub#ect under study. It encompasses( review on various studies presented by various scholars( researchers( analysts and the authors. aterials will be drawn from various sources closely related to the ob#ectives of the

study. Fhere appropriate( models will be used to demonstrate the various subtopics mentioned in the ob#ectives.

2.1 C)!$-". )4 O"%'%$ #$3 5"#$3 /).#/-.. ,ountry of origin is defined as the country with which a particular product or service is associated. The ,ountry of manufacture (,- $( in the case of products( or the ,ountry where the head;uarters are located( in the case of both products and services. ,ountry of origin effect (,-.$ can be defined as any influence that the ,ountry of manufacture( assembly or design has on a consumer"s positive or negative perception of a product ( c/en!ieG inifie( B66:$. %ccording to @sunier (B66C$( country of origin effect poses a barrier to enter new markets in the form of negative consumer bias toward imported products. The country of origin as the country where corporate head;uarters" of the company marketing the product or brand is located. This is the home country for the company (@sunier (B66C$. ,ountry of origin (,--$ perceptions is the mental associations and beliefs triggered by a ,ountry. ,ountry image may be an asset when it is positive and a liability when it is negative. % positive image is important to strengthen a ,ountry"s image and help domestic marketers who

e0port and to attract foreign firms and investors (%hmed et al., B66A$.

arketers want to use

country of origin perceptions in the most advantageous way possible to sell their products and services 4iberali!ation and deregulation of world markets have driven many companies to internationali!e their marketing activities to survive and grow. Success internationally clearly depends on the acceptability of products by consumers in different countries (/aynak( B666$. )uring the past several decades( countryGofGorigin research has attracted significant attention from researchers and practitioners alike around the globe (.rickson( 597A? 4usk et al., B66C$. 'art of the reason for this continuous interest in the sub#ect area is attributable to increased global competition among foreign firms operating in different parts of the globe. These firms( in most cases( are not only offering more variety and assortment of products but also offering them at very competitive prices. This( coupled with the increased standards of living and improved lifestyles of consumers around the world( and improved global communication and increased use of InternetGbased communication means( target customers in markets worldwide are e0posed to and are selecting from a wider range of foreign productsDbrands than ever before. Irom a marketing standpoint( ,ompanies that are operating in competitive domestic and foreign markets need to understand consumers" perceptions and evaluations of foreign made products more than ever before (4usk et al., B66C$. %ccordingly( marketers have shown a growing interest in understanding the factors that affect consumers" evaluations of foreign products against domestic ones. Therefore( researchers in marketing started investigating the marketplace behavior of consumers in crossGculturalDnational settings more than before. )espite this increased interest( studies that

investigate the product perceptions and #udgments of consumers in developing countries and newly emerging economies are relatively low (Eolan et al.( B66:$. This scarcity e0ists even though multinational companies around the world have e0panded their operations in many developing countries of 4atin %merica( %frica( the iddle .ast and %siaG'acific region( and

have faced significant challenges (&oth and &omeo( 599B? 3haskaran and Sukumaran( B66:$. %lso( a significant population growth and increased consumer wealth and purchasing power in advanced developing countries offer greater market opportunities to western companies whose domestic markets( in most cases( have already reached maturity stage andDor are highly competitive due to significant numbers of foreign competitors in those markets and saturated home market demand. ,ountry of origin effects are of particular interest to international marketing researchers because of their impact on the evaluations that help to influence customers" purchase decisions. Fe often hear comments like L*apanese cars are reliable"( and that Eermany leads the world in engineering technology. 8ence we can conclude that country of origin perceptions help to form overall attitudes on certain product attributes and also have some impact on customers. 2.2 P+"1+%7+3 >!#/%-. #$3 5"#$3 /).#/-. %ccording to business dictionary( perceived ;uality is the ,onsumerMs opinion of a productMs (or a brand$ ability to fulfill his or her e0pectations. It may have little or nothing to do with the actual e0cellence of the product( and is based on the firms (or brandMs$ current public image. ,onsumer"s e0perience with the firmMs other products( and the influence of the opinion leaders( consumerMs peer group( and others. -lshavsky (597=( in &owley( 5997$ views ;uality views as a form of overall evaluation of a product. Similarly( 8olbrook and corfman (5975( in &owley(

5997$ suggested that ;uality acts as a relatively global value #udgment which is created in relationship between customers and suppliers. ,oo and its level of development and brand familiarity leads to positive brand evaluation and hence brand loyalty.

2.3 P+"1+%7+3 V#/!+ #$3 5"#$3 /).#/-. %ccording to different authors( customer perceived value is a multidimensional concept( which presents a tradeGoff between benefits and sacrifices perceived by customers in a supplier"s offering (e.g.Foodruff et al.( 599<? Neithaml et al.( 599C? Sno# and Eabri#an( B666? Slater and +arver( B666? @laga and ,hacour( B665$ 'erceived benefits are a combination of different attributes of products (tangible and intangible intrinsic and e0trinsic etc.$( available in relation to a particular buy and use situation. 'erceived sacrifice are a combination of a nominal price and all other costs of product ac;uisition and its use (e.g. Neithaml( 5977? B666? Slater and +arver( B666? @laga and ,hacour( B665$. The utility theory( which lies at the foundation of the modern microeconomic theory( provides a theoretical underpinning for the value concept 4anchester( 59:5( in ,aruana et al.( B666$. This approach stresses that very often customers do not buy products (i.e. goods( services$ for their own sake. They buy bundles of attributes which derive value according to the utility (benefits$ provided by the combination of attributes less the disutility represented by their sacrifices in obtaining the product. In other words( the value is conceptuali!ed as a customer"s perceived net tradeGoff received from all relevant benefits and costs or sacrifices delivered by a product or service or supplier and its use. This platform is also used in most discussions of customer value research (e.g. &aghubir( 5997? Sinha and )eSarbo( 5997? Ilint and Foodruff( B665$. onroe( 5996? 'isnik(

2.8 B"#$3 /).#/-. -ne of the definitions of brand loyalty that has made the greatest impact in the specialist proposes that loyalty reflectsJ a deeply held commitment to rebuy or repatroni!e a preferred productDservice consistently in the future( thereby causing repetitive sameGbrand or same brand buying( despite situational influences and marketing efforts having the potential to cause switching behaviour (-liver( 5999? .rdem et al.( B66C$. This definition brings out the differences between the two analytic perspectives considered in the ma#ority of recent papers (3arroso and artin( 5999? ,aruana( B66B$J

I. Irom a behavioral standpoint( loyalty is seen as effective consumer behavior toward a specific product( brand or establishment over time. In this approach( loyalty is analy!ed on the basis of repeat purchase or relative purchase volume patterns for the same brands or establishments ()unn and Frigley( 597A? Sniehotta et al.( B66=$. II. Irom the attitudinal standpoint( the behavioral approach is considered insufficient to e0plain how and why true loyalty develops and is maintained ()ick and 3asu( 599A? Sniehotta et al.( B66=$. These authors argue that loyalty can only be viewed as an attitude when positive affects and feelings toward a product or brands are involved. Similarly( the concept of buying intentions reflects consumersM foreseeable behavior in shortG term future buying decisions (e.g. what product or brand the consumer will buy when he visits the supermarket ne0t. ore specifically( we would point out that buying intention is a future pro#ection of consumer behavior that will significantly contribute to the configuration of attitudes. Indeed( if we e0amine

the basic components of the attitudes model( we find that attitudes in fact develop due to a combination of three basic elements associated with beliefs( emotional responses and the foreseeable actions of the consumer (%sael( 599=? Sno# et al.( B66A$. Specifically( the cognitive component reflects individualsM knowledge of and beliefs about a given product or service (Food( B66A$( while the affective component arises as a result of a personMs emotions or feelings toward a product or service. Iinally( the conative or behavioral component would be the e0pression of the consumerMs buying intention (Shukla( B669$ eanwhile( attitudes develop over time via a process of learning and are affected by family influences( the social groups to which the individual belongs or aspires to belong( the information received( e0perience and personality.

CHAPTER THREE; RESEARCH METHODOLOGY. 3.0 I$-")3!1-%)$ ethodology that was used as an aid to carrying out the

This is a chapter that describes the

research study. It is a plan for selecting the sources and types of information used to answer the research ;uestion. It provides answers for such ;uestions as? what techni;ues will be used to gather dataH Fhat population will be studiedH Fhat kind of sampling will be usedH 8ow will data be collectedH %nd how will data be analy!ed. 3.1 R+*+#"1 D+*%'$. The study took on the form of a crossGsectional survey to effect the study. This survey approach allowed the researcher to collect the information and conduct the study over a short period of time as opposed to a longitudinal approach which involves studies over longer periods( normally in years.. This was coupled with a ;uantitative approach to analy!ing the research data. This research used ;uantitative design and a field survey was conducted as well. The survey design was based on the use of ;uestionnaires that were used as data collection instruments. This study focused only on the /ampala based firms.

3.2 P),!/#-%)$ #$3 S#&,/%$' 3+*%'$. 3.2.1 P),!/#-%)$ #$3 *#&,/+ *%<+ The population was 5=6 8ardware dealers who are operating in /ampala ( ugenyi( B656$( The sample frame comprised 567 8ardware dealers located in /ampala who sell cement as per the rationale of /re#cie and organ (59:6$.

3.2.2 S#&,/%$' T+1 $%>!+*. The researcher used convenient sampling until the desired number of respondents had been attained. 3.3 D#-# C)//+1-%)$. 3.3.1 T.,+ )4 D#-#?

)ata used can be divided into two categories? primary and secondary data. 'rimary data sources included data ac;uired using ;uestionnaires while the secondary data sources included #ournals( websites and other relevant publications. 3.8 R+*+#"1 %$*-"!&+$The 'rimary data was gathered using a preGtested and structured ;uestionnaire. The ;uestionnaire was delivered physically to the potential respondents participating in the study for the purpose of ensuring that a high response rate is attained (/othari B66=$. The ;uestionnaire Fas designed using items for each of the variables which were tapped using a = point likert scale such that 5 represents Strongly %gree( B O )isagree( < O @ncertain( AG )isagree and =G Strongly %gree.

3.9 D#-# 1)//+1-%)$ M+- )3. Survey method of data collection was used for collecting the primary data for this research. The survey method involved ;uestioning people and recording their responses for analysis. Since the research was about country of origin and the factors that influence brand loyalty( the survey method was the most appropriate data collection methods since it was to enable the researcher collect primary data on opinions and attitudes towards each brand of cement.

3.6 R+*+#"1 P")1+3!"+. The procedure that was followed in data collection was as follows? (a$ Iour research assistants were recruited by the researcher two weeks prior to

commencement of the survey. They were trained on how to administer the ;uestionnaires( and to understand the research problems and ob#ectives at hand. (c$ -n a random basis( research assistants interviewed any 8ardware dealer who was availed

information and also consumers who came to the hardware to buy cement. (d$ %ll the filled ;uestionnaires were brought to a central place as they were completed and

were edited and coded as soon as a satisfactory number had been received. Iull analysis of the raw data was done using computer package S'SS to make statistical inferences. The researcher oversaw the entire process of data collection and was personally monitored the analysis of data.

3.=

D#-# >!#/%-. 1)$-")/

3.=.1 R+/%#5%/%-. #$3 V#/%3%-. The purpose of reliability was to e0amine the level of consistence among the ;uestionnaire items. This study employed the ,ronbach alpha value as a tool for reliability e0amination( the bigger the ,ronbachMs alpha value( the higher internal consistency was. 1alidity has to do with ensuring that the items measure what they are supposed to. The validity was a measured using the ,ontent 1alidity Inde0. T#5/+ 3.=.1 R+/%#5%/%-. #$3 V#/%3%-.
Variable ,ountry of -rigin 'erceived 2uality 'erceived 1alue 3rand 4oyalty Source : 'rimary )ata Anchor = 'oint = 'oint = 'oint = 'oint Cronbach Alpha 6.7C6 6.7<= 6.777 6.:99 Content Validity Index 6.:7C 6.::7 6.7BA 6.7<<

Irom the table above( the results indicated that the ,ronbach %lpha( the ,ontent 1alidity Inde0 were both bigger than 6.C6( showing acceptable levels of validity and reliability..

3.8 M+#*!"+&+$-* )4 7#"%#5/+* 3.8.1 C)!$-". )4 )"%'%$

This variable was measured with reference to the work of Ia!io (597:( 5996$. Their method for measuring the country of origin involves the Pnaming methodQ which involves presenting consumers with the brand name of a product and evaluation of the attitudes towards these brands.

3.8.2

P+"1+%7+3 V#/!+

The multiGdimensional measure developed by Sweenay and Soutar (B665$ was used to measure perceived value. 3.8.3 P+"1+%7+3 Q!#/%-.

To measure perceptions of overall ;uality( a twoGitem( semantic differential scale was used( patterned after scales used in previous studies (8an( 597C.( 599A$. 3.8.8 B"#$3 /).#/-.

This variable was measured with reference to the scale developed by 3eatty and /ahle (5977$. 3.@ D#-# #$#/.*%* &+- )3*. The researcher generated information by analy!ing data after collection. The data analy!ed using statistical procedures. The data was analy!ed through the use of descriptive and inferential statistics. ,ross tabulations( ,hiGs;uare( correlation and regression among others( were employed to ade;uately address the research re;uirements. Iurther( the researcher interpreted these findings in the light of the research ;uestions. The researcher mainly used the S'SS (Statistical 'ackage for the Social Scientist$ computer package to analy!e the data in this study.

CHAPTER FOUR; RESULTS AND FINDINGS OF THE STUDY 8.0 I$-")3!1-%)$ The results from the analysis of the data were presented in this chapter using statistical tables such as the cross tabulations( ,orrelations and regressions. The results were presented as per the following research ob#ectives? i. To e0amine the level of ,ountry of -rigin .ffects( 3rand 4oyalty( 'erceived 1alue and 'erceived 2uality among ,ement users in @ganda. ii. To establish the relationship between country of -rigin effects and brand loyalty. iii. To establish the relationship between country of origin effects( perceived value and brand loyalty iv. To establish the relationship between countries of origin effects( perceived ;uality( perceived value and brand loyalty.

#. S#&,/+ 1 #"#1-+"%*-%1* 8.1.1 A'+ G")!, #$3 G+$3+" D%*-"%5!-%)$

The results in the table below show the age group and the gender of the individuals that were interviewed. T#5/+ 8.1.1 A'+ G")!, #$3 G+$3+" D%*-"%5!-%)$
G+$3+" M#/+ F+&#/+ 57 G <6 yrs <5 G A6 yrs A'+ )4 - + "+*,)$3+$A5 G =6 yrs -ver =6 yrs T)-#/ Source : 'rimary )ata ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount Sample > BB B: 5A A C: 5= 5: B 5 <= T)-#/ <: AA 5C = 56B

=9.=> A6.=> 566.6> C5.A> <7.C> 566.6> 7:.=> 5B.=> 566.6> 76.6> B6.6> 566.6> C=.:> <A.<> 566.6>

&esults in table A.5.5 show that C=.:> are male and <A.<> of the respondents are female. of the hardware dealers were in the <5G A6 year age group and C5.A> of these were

ost

ale and

<7.C> of them were female. In the 57 O <6 year age bracket( =9.=> were male and A6(=> were female. It should be noted that overall( there were more males than females and this was observed to apply for all the age group categories(. The over =6 year age bracket had females constituting only B6.6> and the dominant gender were the male dealers.

8.1.2

H%' +*- /+7+/ )4 +3!1#-%)$ #$3 G+$3+" D%*-"%5!-%)$

&esults for the highest level of education and the gender of the respondents were as indicated belowJ T#5/+ 8.1.2 H%' +*- /+7+/ )4 +3!1#-%)$ #$3 G+$3+" D%*-"%5!-%)$
G+$3+" M#/+ F+&#/+ O /+7+/ A /+7+/ D%,/)&# D+'"++ P)*- G"#3!#-+ O- +"* T)-#/ Source : 'rimary )ata ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount C: 9 566.6> 5A B9 7 < A 566.6> <= 56B 5B 5A 7 5 T)-#/ 9 566.6> BC A< 5C A A 566.6>

=<.7> AC.B> 566.6> C:.A> <B.C> 566.6> =6.6> =6.6> 566.6> :=.6> B=.6> 566.6>

H%' +*- /+7+/ )4 +3!1#-%)$

Sample > C=.:> <A.<> 566.6>

%mong females( there were no dealers holding only the - level certificate. Fith 'ost Eraduate ;ualifications( the ma#ority of the respondents were ale (:=.6>$ and only B=.6> were female.

Fith the 3achelors degree( the researcher noted that there was an e;ual proportion for both male and female dealers( each category taking up =6.6> of the respondents.

8.1.3 P+"%)3 - + 5!*%$+** 5++$ ),+"#-%$' #$3 N#-!"+ )4 .)!" 5!*%$+** D%*-"%5!-%)$ The results the business nature and the number of years it has been operating. T#5/+ 8.1.3 P+"%)3 )4 5!*%$+** ),+"#-%)$ #$3 N#-!"+ )4 5!*%$+**
N#-!"+ )4 .)!" 5!*%$+** 0 )/+*#/+" R+-#%/+" O- +"* 1 A 9 ."* 6 A 10 ."* 11 A 19 ."* O7+" 19 ."* T)-#/ Source : 'rimary )ata ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount Sample > C 5C.B> 59 A6.A> A <<.<> < =6.6> <B <5.A> B9 :7.A> B7 =9.C> 7 CC.:> B C: C=.:> 5 < B T)-#/ <: A: 566.6> 5B 566.6> C 56B

=.A> 566.6>

P+"%)3 - + 5!*%$+** 5++$ ),+"#-%$'

<<.<> 5C.:> 566.6> B.9> 566.6>

ost of the firms are retailers with C=.:> followed by wholesalers with <5.A> and finally others with B.9>. It should be noted that most of the business which is 5G=years( CG56yrs and 55G5=yrs old are retailers (:7.A>( =9.C> and CC.:> respectively$. Iirms over 5=yrs are mostly wholesalers (=6.6$.

8.1.8

N!&5+" )4 +&,/).++* - + 5!*%$+** #* ')- #$3 B!*%$+** 1#-+')". D%*-"%5!-%)$

&esults for the number of employees in different business categories. T#5/+ 8.1.8 N!&5+" )4 +&,/).++* %$ - + 5!*%$+** #$3 B!*%$+** 1#-+')". D%*-"%5!-%)$
B!*%$+** 1#-+')". S)/+ P#"-$+"* %, P"),"%+-)"* %, 0A8 N!&5+" )4 +&,/).++* - + 5!*%$+** #* ')9 A 8@ 90 A @@ T)-#/ ,ount &ow > ,ount &ow > ,ount &ow > ,ount Sample > AC 76.:> 5B B7.C> B CC.:> C6 =7.7> 55 59.<> 5= <=.:> 5 <<.<> B: BC.=> 5= 5A.:> 5= <=.:> L%&%-+3 L%#5%/%-. C)&,#$. T)-#/ =: 566.6> AB 566.6> < 566.6> 56B 566.6>

Source : 'rimary )ata

Sole proprietorship had the highest number of employee"s (=7.7>$ followed by 'artnership (BC.=>$ and then 4td 4iability ,ompany (5A.:>$. employees and also a small proportion had =6G 99 employees. ost firms also have some =GA9

8.1.9

M)*- ,"+4+""+3 1+&+$- 5"#$3 #$3 - + #&)!$- )4 1#,%-#/ - #- - + 5!*%$+** %*

),+"#-%$' :%- D%*-"%5!-%)$. &esults for the amount of capital the firms are operating with and their preferred brands. T#5/+ 8.1.9 M)*- ,"+4+""+3 1+&+$- 5"#$3 #$3 O,+"#-%)$#/ 1#,%-#/

T + #&)!$- )4 1#,%-#/ - #- - + 5!*%$+** %* ),+"#-%$' :%1A8 B#&5!"% H%&# M)*- ,"+4+""+3 1+&+$- 5"#$3 B/!+ T"%#$'/+ T)")") O- +"* T)-#/ Source : 'rimary )ata ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount Sample > 55 56.7> <= <A.<> B< BB.=> C 55.7> 5: <<.<> 55 B5.C> = 5B.=> 9A@ : 7:.=> 55 B:.=> 5B <6.6> 10 A 18 19 B A5)7+ 5 5B B 5: 5 <<

T)-#/ 7 A6 B =5 5 56B

5B.=> 566.6> <6.6> 566.6> 566.6> 566.6> <<.<> 566.6> 566.6> 566.6> <B.A> 566.6>

a#ority of the business operated with capital between =G9 millions (<A.<>$.8ima and Tororo cement were preferred by all firms with different operating capital. It should be noted that among businesses operating with more than 5= millions( most had preference for all brands.

8.1.6

P+"%)3 - + 5!*%$+** 5++$ ),+"#-%$' #$3 C)!$-"%+* : )*+ 5"#$3* #"+ ,"+4+""+3

D%*-"%5!-%)$ &esults for the country of origin preference as per the number of years it has been in business. T#5/+ 8.1.6 P+"%)3 )4 5!*%$+** ),+"#-%$' #$3 C)!$-"%+* : )*+ 5"#$3* #"+ ,"+4+""+3

C)!$-"%+* : )*+ 5"#$3* #"+ ,"+4+""+3 K+$.# U'#$3# D!5#% P#2%*-#$ 1 A 9 ."* 6 A 10 ."* 11 A 19 ."* O7+" 19 ."* T)-#/ Source : 'rimary )ata ,ount &ow > ,ount &ow > ,ount &ow > ,ount &ow > ,ount Sample > B <<.<> < B.9> 5 B.5> <C 9:.<> AC 9:.9> 5B 566.6> < =6.6> 9: 9=.5> 5 5.6> 5 5 5 B.:>

T)-#/ <: 566.6> A: 566.6> 5B 566.6> C 56B

P+"%)3 - + 5!*%$+** 5++$ ),+"#-%$'

5C.:> 566.6> 5.6> 566.6>

3rands from @ganda are the most preferred (9=.5>$( followed by /enyan brands with B.9> and then 'akistan and )ubai with 5> each. The firms which have operated for 55G5=yrs have preference for mainly @gandan brands. This indicates the challenge faced by importers of foreign brands and gives a hint for the marketing communication that should be employed.

8.2 T + /+7+/ )4 C)!$-". )4 O"%'%$ E44+1-*C B"#$3 L).#/-.C P+"1+%7+3 V#/!+ #$3 P+"1+%7+3 Q!#/%-. #&)$' C+&+$- !*+"* %$ U'#$3#. The results in the table below were presented to e0plore the level of ,ountry of -rigin .ffects( 3rand 4oyalty( 'erceived 1alue and 'erceived 2uality among ,ement users in @ganda. The ;uestionnaire had options such that 5 represents Strongly )isagree( B O )isagree( <G+ot Sure( A O %gree( and = O Strongly %gree. T#5/+ 8.21 T + /+7+/ )4 C)!$-". )4 O"%'%$ E44+1-*C B"#$3 L).#/-.C P+"1+%7+3 V#/!+ #$3

P+"1+%7+3 Q!#/%-. #&)$' C+&+$- !*+"* %$ U'#$3#. D+*1"%,-%7+* 4)" *-!3. 7#"%#5/+*
N ,ountry of -rigin 'erceived 2uality 'erceived 1alue 3rand 4oyalty Source : 'rimary )ata M%$ M#D M+#$ S-3. D+7%#-%)$ <.:A A.5= A.67 <.96 5.65 6.=5 6.=6 6.=<

56B 5.66 =.66 56B B.55 =.66 56B B.=9 =.66 56B B.C: =.66

The results in the table indicated that the ,ountry of -rigin effects( 'erceived 2uality( 'erceived 1alue and 3rand 4oyalty all need Improvement by the 'roduct )ealers ( ean R A.66$. These results in the table above indicate the level of the variables as rated by the respondents which were the hardware dealers.

T#5/+ 8.2.2

A--"%5!-+ 1)$*%3+"+3 5. - + C+&+$- D+#/+"*

P+"1+$-#'+ <=.:5 AC.A< 56.:5 :.5A 100.00 C!&!/#-%7+ P+"1+$-#'+ <=.:5 7B.5A 9B.7C 100.00

A--"%5!-+* ,ement %ppearance ,heap 3rands Setting Time Source of the cement T)-#/ Source : 'rimary )ata

Ior the case of perceived value( enhancement by both manufacturers and promoters should be done with the following attributes in mind. %$. ,ement %ppearance. Some brands are darker and others brighter than others depending on the raw materials they use especially limestone whereby coral limestone is darker. Some consumers perceive dark cement is good for the floor and bright cement is good for plastering because you use less soda ash and paint. b$. Setting time. Some cement brands sets fast than others. The perception is that if it sets fast then you can build fast. 8owever there is the notion that if it sets slowly it gives the mason more time to work. 8owever we also have cement type or ordinary 'ortland cement which sets fast and po!!olanic 'ortland cement which sets slowly. 8owever it does not matter much because at the end of B7 days the strength is the same. %ll in all( besides perceptions( cements are binding pastes and if they meet the specifications( the desired results will be achieved.

8.3

R+/#-%)$* %,* 5+-:++$ V#"%#5/+*

'earson (r$ correlation ,oefficient helped the researcher to understand the nature of the relationships between the variables. T#5/+ 8.3 R+/#-%)$* %,* 5+-:++$ V#"%#5/+*
Country of Origin ,ountry of -rigin 'erceived 2uality 'erceived 1alue B"#$3 L).#/-. Source : 'rimary )ata 5.666 .B7BSS .<B9SS .AA7SS 5.666 .CAASS .<96SS 5.666 .=<BSS 5.666 Perceived Quality Perceived Value Brand Loyalty

SS ,orrelation is significant at the 6.65 level (BGtailed$.

8.3.1

C)!$-". )4 O"%'%$ +44+1-* #$3 5"#$3 /).#/-..

% positive relationship was observed between the ,ountry of -rigin effects and the 3rand loyalty (r T .AA7SS( pU.65$. These results show that the greater the perception among the dealers that cement brands from a particular country are superior( the more these dealers will be loyal to purchasing these products from that particular country.

8.3.2

C)!$-". )4 )"%'%$ +44+1-*C ,+"1+%7+3 7#/!+ #$3 5"#$3 /).#/-.

The ,ountry of -rigin effects variable was significantly and positively related to perceived value (r T .<B9SS( pU.65$. 'erceived value was also positively related to 3rand loyalty (r T.=<BSS( pU.65$. Fhen cement buyers believe that a particular country has a history or good reputation in manufacturing certain products( they will be associated with value for money. In other words( these buyers will attach value to the cement brands from that particular statement.

8.3.3

C)!$-"%+* )4 )"%'%$ +44+1-*C ,+"1+%7+3 >!#/%-.C ,+"1+%7+3 7#/!+ #$3 5"#$3 /).#/-..

The country of origin effects and perceived ;uality were positively and significantly related (rT.B7BSS( pU6.65$. This means if consumers believe that cement from a certain country is of good ;uality( they will continue buying cement brand.

P+"1+%7+3 >!#/%-. #$3 5"#$3 /).#/-.. 'erceived ;uality and brand loyalty are positively and significantly related (r T .<96SS( pU6.65$. This implies that that if buyers perceive that the cement brand is of good ;uality they will continue being loyal to the cement brand. 8.8 R+'"+**%)$ A$#/.*%* &egression helped determine the degree to which the ,ountry of -rigin( 'erceived 2uality %nd 'erceived 1alue influence the dependent variable. T#5/+ 8.8 R+'"+**%)$ A$#/.*%*
U$*-#$3#"3%<+3 C)+44%1%+$-* M)3+/ EC)$*-#$-F ,ountry of -rigin 'erceived 2uality 'erceived 1alue D+,+$3+$- V#"%#5/+; B"#$3 L).#/-. & S;uare %d#usted & S;uare Source J Pri ary !ata .<:5 .<=5 I Statistic Sig. 57.<5 7 .666 B 5.A57 .5C< .66B .AC5 S-3. E"")" .<79 .6AC .55: .5B6 .<55 .66B .A<C S-#$3#"3%<+3 C)+44%1%+$-* B+-# <.CA6 <.=C9 .65< <.7AA .666 .665 .979 .666

S%'.

,ountry of -rigin( 'erceived 2uality and 'erceived value have the potential to e0plain <=.5> of 1ariances in 3rand 4oyalty (%d#usted & S;uare value T .<=5$. The 'erceived 1alue of the cement emerged as the best at e0plaining 3rand 4oyalty for ,ement ,ustomers. The regression model was also significant (sig. U .6=.$. 8.9 F!"- +" F%$3%$'* 8.9.1 A$#/.*%* )4 7#"%#$1+ EANOVAF "+*!/-*

The results for %+-1% of the firms on the variables are shown below T#5/+ 8.9.1 A$#/.*%* )4 7#"%#$1+ EANOVAF "+*!/-*
N M+#$ S-3. D+7%#-%)$ S-3. E"")" Sole 'roprietorship Country of Origin 'artnership 4imited 4iability ,ompany Sole 'roprietorship Perceived Quality 'artnership 4imited 4iability ,ompany Sole 'roprietorship Perceived Value 'artnership 4imited 4iability ,ompany Sole 'roprietorship Brand Loyalty 'artnership 4imited 4iability ,ompany Source : 'rimary )ata = 9 <.:C< B C <.767 5 A <.=66 = 9 A.B75 B : <.9=6 5 A <.975 C 6 A.B6: B : <.7<6 5 A A.6B9 = 7 A.6== B : <.:<= 5 < <.==6 5.66C 6.7A9 5.B7C 6.<75 6.=C= 6.C9A 6.A5A 6.=:C 6.=69 6.=5< 6.A5C 6.=A: 6.5<5 6.5C: 6.<AA 6.6=6 =.BC . 6.569 < 66: 6.57= 6.6=< 6.555 6.5<C 6.6C: 6.676 6.5=B :.CC . A 665 =.9C . C 66A .AC: . CB7 F S%'.

These businesses were noted to differ significantly on 'erceived 2uality( 'erceived 1alue and 3rand 4oyalty (sig. U.6=$. It is only on the ,ountry of -rigin effects that these firms did not differ significantly as far as ownership is concerned.

8.9.2

A$#/.*%* )4 7#"%#$1+ "+*!/-* 4)" N!&5+" )4 +&,/).++* 5. 7#"%#5/+.

The results for the variance in the number of employees for the firms. T#5/+ 8.9.2 A$#/.*%* )4 7#"%#$1+ "+*!/-* 4)" N!&5+" )4 +&,/).++* 5. 7#"%#5/+.
N M+#$ S-3. D+7%#-%)$ S-3. E"")" 6OA C)!$-". )4 O"%'%$ = O A9 =6 O 99 6OA P+"1+%7+3 Q!#/%-. = O A9 =6 O 99 6OA P+"1+%7+3 V#/!+ = O A9 =6 O 99 6OA B"#$3 L).#/-. = O A9 =6 O 99 Source : 'rimary )ata = <.:A= = = A <.:=C 5 5 < <.<<< < 5.6=:9B .9AB77 5.5=A:6 .A=B9= .=C=C< .A7A<B .A9B:6 .=56C< .=6C5= .=5=<: .A96<B .55<:B .5ABC= .5A:B= .BA: .:7B .CCCC: .6C6=< .677<A .B:9CB .6C=BC .6:9:= .=<A .=77 .B9BBB .6C77: .6:7=5 .6C=CC C.6< .66< 5 5.7B .5C: < F S%'.

= A.59< C 6 A A.6C6 5 7 < A.=== C

= A.5BC : : A A.6B= 5 : < <.99< =

= A.6<6 C B < <.:C< 9 6 < <.B<B <

The hardware dealers differed significantly on brand loyalty in light of the number of employees (sig. U.6=$ as opposed to perceptions of country of origin( perceived value and perceived ;uality.

CHAPTER FIVE; DISCUSSIONC RECOMMENDATIONS AND CONCLUSIONS 9.1 I$-")3!1-%)$ This chapter contains the discussion( recommendation( conclusions and areas of future research that should be pursued by the scholars in time to come to add to the knowledge base relating to the variables. The discussion was done as per the research ob#ectives( contrasting the findings with what other scholars have been able to discover in the same field. &ecommendations which indicate the actual course of action that should be taken by the ,ement manufacturers are also contained in this chapter.

9.2 T + /+7+/ )4 C)!$-". )4 O"%'%$ E44+1-*C B"#$3 L).#/-.C P+"1+%7+3 V#/!+ #$3 P+"1+%7+3 Q!#/%-. #&)$' C+&+$- !*+"* %$ U'#$3#. Iindings indicated that the cement manufacturers have a lot to do to make sure that the ,ountry of -rigin effects of the various cement brands( appeal to the consumers so that they may remain loyal to their cement brands. They too need to improve the perceptions of value and ;uality of their respective cement brands if they are to sustain business operations in the country. In an effort to enhance the country of origin effects so that consumers perceive the cement brands more favourably( researchers have pointed out the need to precisely determine whether to standardise or localise the marketing communications. This dilemma( research indicates( is a ma#or challenge for companies that operate at levels beyond their borders ( inbaeva et al.( B66:$. This becomes a challenge given that there are normally vast cultural and geographical differences between the different markets or countries. In addition( depending on the differences and the way the marketing communications are designed( it could altogether have a positive or

negative impact on the perceptions of the target market regarding both value and ;uality of the product from the foreign country. This notion is shared by other writers like 'owers and 4oyka (B66:$.

&esearchers have pointed out a difference between product knowledge levels about brands from particular countries( their value and ;uality and the conse;uent perceptions among the consumers ('ecotich and Fard( B66:$. Fhen consumers are highly knowledgeable about a certain product( they are bound to rate it the same way even when the manufacturer sets up a plant in a different country for the brand. -n the other hand( when consumers have little or limited knowledge about the product( they are more likely to rate its value and ;uality as per the country or origin (8am!aoui and erunka( B66C$. This calls for a critical review and knowledge of the market

before the sellers decide on the kind of marketing campaign they are to use.

9.3 C)!$-". )4 O"%'%$ +44+1-* #$3 B"#$3 L).#/-. The results in the previous chapter showed a positive and significant relationship between the country of -rigin effects and the nature of brand loyalty among the cement buyers. These results tell us that if the customers attach certain ;uality attributes( to cement brands from a certain country for instance( going ahead to relate brands from a particular country with reliability( these customers are also likely. This can further be understood when we consider the research work of 8olland (B66:$ which shows that when manufacturers switch the country from which they are producing their products( it has a significant impact on the 4oyalty towards their brands. This is because these customers often feel comfortable when these products are produced from specific

countries. These findings are also supported by EurhanG,anli and

aheswaran (B666$.

&esearchers now contend that the country of origin affect the image portrayed by a certain product or service to the consumers( and conse;uently( their willingness to purchase or not 'urchase the product (-uellet( B66:$. 9.8 C)!$-". )4 O"%'%$ E44+1-*C P+"1+%7+3 V#/!+ #$3 B"#$3 L).#/-. ,ountry of -rigin effects were positively related to 'erceived 1alue and 3rand 4oyalty. This link between 'erceived value and the country of origin indicate that if the consumer believes cement brands from a particular country are of better monetary value( then the consumer will continue buying cement brands from that particular country. %lso perceived value and brand loyalty were positively and significantly related. This means that if the buyers believe the worth of their money is good( then they will continue being loyal to that particular cement brand. This is further supported by the work of Singh and Sirdeshmukh (B666$ who argue that some antecedes like investment in assets ( price and post purchase evaluation leads to perceived value of a product either positively or negatively. arketing activities have a direct link with perceived value as The marketers try to woo buyers on their product so that they can by them as has been advocated by oh( (B66<$ and msi (B66A$ in their work. 9.9 C)!$-". O4 O"%'%$ E44+1-*C P+"1+%7+3 Q!#/%-.C P+"1+%7+3 V#/!+ A$3 B"#$3 L).#/-.. The results in the previous chapter showed that perceived ;uality and country of origin were positively and significantly related. The same too applied to perceived ;uality and brand loyalty. The results shows that when customers attach certain ;uality attributes to a certain country( the will continue buying cement brands from that specific country. %lso the results tell us that if the

customers ;uality attributes to the cement brand( then they will remain and continue being loyal to the brand. This is supported supported by the research work of Dawar and Parker (1994) whereby its has been argued that success goes with quality and marketers should promote strategies that will promote consumers perception on product quality. ccording to work o! Duong et al ("##4)$ Percei%ed quality is related to the le%el o! ser%ice satis!action. &urther$ 'addad et al says that percei%ed quality is a product o! ratings accorded as per the speci!ic aspects o! ser%ices. (t is there!ore prudent that the le%el o! quality perception is determined by some attributes associated with that ser%ice.

9.6 C)$1/!*%)$* The country of origin effects for a certain cement brand( affect the loyalty towards the brand among the customers. This implies that cement manufacturers have to make it a point to develop the right attitude about their countries among their clients.

The ,ountry of origin effects( the 'erceived loyalty and the 'erceived 2uality and 3rand 4oyalty have not been well addressed by the cement dealers in @ganda. This leaves a gap for e0ample with communication? consumers are left to rely on word of mouth for information about the ;uality and value of the various brands like 8ima( 3lue Triangle and Tororo cement. 9.= R+1)&&+$3#-%)$* The manufacturers of these brands should ensure that they communicate the value of the cement from those particular countries to key parties in the destination country for instance the opinion leaders in the construction industry and this will help form the necessary attitudes toward brands from those countries.

,ement manufacturers should avoid standardised communications because they don"t have the same impacts in different markets or regions. This calls for localised communication strategies which will suit that specific market or region so that clients can understand the value of cement. %lso different markets have their diversified cultures and appeals which might call for different communication strategies.

,ement manufacturersD players should get locals to market their products because the consumers feel its one of their own. %lso it is important because the locals can speak the local languages when trying to convince their prospective buyers and clearly bring out the value or advantages of their cement attributes.

,S& (,orporate Social &esponsibility$ In order for cement manufacturers Ddealers to identify with the locals and create a conducive relationship with the communities( they should come up with corporate social responsibility programmes like building schools by donating cement( reclaiming the ;uarries by planting trees( sponsoring sports etc. %lso i would advise the players who don"t have plants in @ganda to evaluate putting up factories here. This will have more appeal to the citi!ens as they feel it belongs to them. ,ement manufacturers should promote the country of manufacture image through their governments" bilateral relationships? advertisements etc to create perception amongst the consumers those products from specific country are of high value.

Information from the country of manufacture reflecting the product heritage should be clearly displayed and visible. 4abelling should be mandatory for the country of manufacture. ,omments of consumers who have used the cement before should be on the company"s website testifying on the value and ;uality of their brands. This will help the prospective buyers to perceive that the cement is of good ;uality and value and will be encouraged to buy it.

9.8 A"+#* 4)" 4!"- +" "+*+#"1 Iuture researchers are encouraged to investigate the relationship between the ,ountry of -rigin effects and the profitability of the brand. This will highlight which attributes the companies should focus upon if they are to realise their set profitability targets. I would also encourage further researchers to investigate other relationship between the country of origin and price( promotions.

%lso future researchers can e0plore on the relationship between country of origin .ffects and ,onsumer ethnocentrism.

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3haskaran( S. and Sukumaran( +. (B66:$. ,onte0tual and methodological issues in ,-- studies. $ar%eting Intelligence ' Planning, Vol. () *o. +, pp. CCG75. ,aruana( %.( B66B$. Service loyalty. The effects of service ;uality and the mediating role of customer satisfaction. ,uropean -ournal of $ar%eting, Vol. ./ *o.012( pp. 755GB7. ,unningham( &. (59C5$. ,ustomer loyalty to store and brand. 3arvard #u"ine"" &evie4, Vol. .5 pp.5B:G<:. Iandos( ,. and &lavlan( ,. (B66C$. Intrinsic and .0trinsic ;uality attributes( loyalty and buying intention are analysis for a ')- product. #riti"h 6ood -ournal, Vol. +72 829( pp.CAC G CCB 3alestrini( '.( and ,amble( '. (597:$. ,ountry of origin effects on ,hinese wine consumers. #riti"h 6ood -ournal Vol. +72 *o. )( B66C pp <9CGA:B. )awar( +. and 'arker. '. (599A$. arketing universalsJ consumers" use of brand name( price.

physical appearance( and retailer reputation as signals of product ;uality. -ournal of $ar%eting, Vol. )2 *o. (( pp. 75G9=. )ick( %.( and 3asu( /. (599A$. ,ustomer loyaltyJ toward an integrated conceptual framework. -ournal of the Acade y of ar%eting Science( Vol.(( *o. (( pp.99G55<

)unn( &.( and Frigley( +. (597A$. Store loyalty for grocery productsJ an empirical study. Area( Vol. Vol. +/ *o. :( pp. <6:G5A )uong( ).1.( 3inns( ,.F.( 4ee( %.8. and 8ipgrave( ).3. (B66A$. Care, Vol. +/ *o. /( pp. AA:G=B. .agly( %.8.( and ,haiken( S. (599<$. ;he P"ychology of Attitude"( 8arcourt 3race ,ollege 'ublishers( -rlando( I4( .rdem( T.( Swait( *. and 1alen!uela( %. (B66C$. 3rands as signalsJ a crossGcountry validation Study. -ournal of $ar%eting, Vol. 07( *anuary( pp. <AGA9. Iishbein( .( %#!en( I. (59:=$( #elief, Attitude, intention, and #ehaviorJ %n Introduction of %(. easuring clientGperceived

;uality of maternity services in rural 1ietnam. International -ournal of Quality 3ealth

;heory and &e"earch, %ddisonG Fesley( reading(

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8amin Ereg .liot. % less developed country respective of consumer ethnocentrism and Pcountry of originQ effectsJ IndonesiaG evidence. 8am!aoui( 4. and erunka( ). (B66C$.The impact of country of design and country of

manufacture on consumer perceptions of biGnational products" ;ualityJ an empirical model based on the concept of fit. -ournal of Con"u er $ar%eting, Vol. (. *o. ., pp. 5A=G==. 8olland( 4. (B66:$.*o4 S artie" leave <= to be ade in >er any. )aily .0press( 4ondon. *ohansson( *./.( )ouglas(S.( +onaka( I. (597=$.%ssessing the impact f country of origin on product evaluationsJ a new methodological perspective. -ournal of $ar%eting &e"earch, Vol. ((( pp <77G9C. /ayak( ..( /ucukemiroglu( -.( 8yder( %.S. (B666$. ,onsumers country or origin (,--$ perceptions of imported products in a homogenous lessG developed country. .uropean -ournal of $ar%eting( 1ol. <A +o.9D56( pp.5BGB5. inbaeva( ).( 8utchings( /. and Thomson( S.3. (B66:$. )eveloping hybrid human resource management in postGSoviet /a!akhstan. ,uropean -ournal of International $anage ent, Vol. + *o. :( pp. <=6G:5. c/en!ieG inifie( 8erald(< . (B66:$. ,hecking the shelves for the state of originQ( +ew Nealand

arch( available atJ www.n!herald.co.n!DtopicDstory.cfmH

cVidWB6CXob#ectidW56A BC:=C (accessed on = %pril B66:$. SI (B66A$( B66AGB66C &esearch 'riorities. % Euide to arketing Science Institute( ,ambridge( %. SI &esearch 'rograms and 'rocedures(

ugenyi( &. (B656$. /ampala ,ity ,ouncil (/,,$ Interview. 4usk( *.4.( 3rown( *.( ark( T.( 'roseku( I.( Thompson( &. and Felsh( *. (B66C$. ,onsumer

behavior( public policy( and countryGofGorigin labeling. &evie4 of Agricultural ,cono ic", Vol. (2 *o. (( pp. B7AG9B.

Schiffman, ?.>. and /anukC ?. ?.8(7779. ,onsumer behavior, Prentice Hall. -h( 8. (B66<$. 'rice fairness and its assymmetric effects on overall price( ;uality( and value #udgementsJ the case of an upscale hotel. ;ouri" $anage ent, Vol. (:( pp. BA5G9. -liver( &.4 (5999$. Fhence consumer loyalty. -ournal of $ar%eting( 1ol. C< pp.<<GAA -!somer( %.( ,avusgil( S.t. (5995$. ,ountry of origin effects on product evaluationsJ a se;uel to 3ilkey and +es" reviewQ( in Eilly( .,.( )wyer( I.&. (.ds$( Proceeding" of the A erican $ar%eting A""ociation, Chicago, I?( pp.BC9G::. 'hillip /. (B665$. $ar%eting anage ent( prenticeG8all of India private limited. 'owers( T.4. and 4oyka( *.*. (B66:$. arket( industry( and company influences on global

product standardi!ation. International $ar%eting &evie4, Vol. (: *o. /, pp. C:7G9A. &oscoe( *.T. (59:=$ 6unda ental &e"earch Stati"tic" for the #ehavioural Science" ( Bnd edition. +ew KorkJ 8olt &inehart X Finston &oth( .S.( &omeo( *.3. (599B$. atching product category and country image perceptionsJ a

framework for managing country of origin effects( -ournal of International #u"ine"" Studie", Vol.(. *o.., pp.A::G9:. Shukla( '. (B669$. Impact of conte0tual factors( brand loyalty and brand switching on purchase decisions. -ournal of Con"u er $ar%eting, (/1) <A7O<=:.

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perceived risk and perceived product value. -ournal of Product ' #rand $anage ent, Vol. +. *o. .( pp. 5=CGC:. Tse( d./ Eorn( E.*. (599B$( %n e0periment on the salience of country of origin in the era of global brands. -ournal of International $ar%eting. Vol. + *o. +( pp =:G:C Fang( ,.( and 4amb( , (597<$. The impact of selected environmental forces upon consumers" willingness to buy foreign products. -ournal of the Acade y of $ar%eting Science, 1ol. 55 +o. B :5G7. Food( 4. (B66A$. )imensions of brand purchasing behaviourJ consumers in the 57GBA age Eroup. -ournal of Con"u er #ehaviour, Vol. : *o. +( pp. 9GBA. Neithaml( 1. (5997$. ,onsumer perceptions of the price( ;uality and valueJ a meansG end model and synthesis of evidence. -ournal of $ar%eting( 1ol. =B pp. BGBB.

Appendix !

P")3!1-%)$C I&,)"-* #$3 N+- D)&+*-%1 C+&+$- C)$*!&,-%)$ %$ - + ,+"%)3 2008 -) 2008

T)$+* 4)"

T#5/+ 1; P")3!1-%)$C I&,)"-* #$3 N+- D)&+*-%1 C+&+$- C)$*!&,-%)$ %$ T)$+* 4)" - + ,+"%)3 2008 -) 2008 I-+& Imports 4ocal 'rod .0ports. +et )omestic ,onsumption :C<(A== 977(:7C 5(695(=B9 5(5B6(<:A 5(5B7(:6C Source@ <#OS 8444.ubo".org 9 2008 5B=(=:7 C=<(ABC 5(779 2009 <5C(:<= C9B(:56 :(5<5 2006 BCC(97C 7A6(666 5=(A=: 200= B9=(7C< 7A6(666 5=(A79 2008 <69(<C= 7A6(666 B6(C=9

Appendix II

R+*+#"1 I$*-"!&+$MAKERERE UNIVERSITY BUSINESS SCHOOL D+#" R+*,)$3+$-C ;hi" Aue"tionnaire i" intended to facilitate the "tudy on Country of Origin. ;he purpo"e of the "tudy i" purely acade ic and your re"pon"e" 4ill be treated 4ith ut o"t confidentiality. =indly "pare "o e ti e and an"4er the follo4ing Aue"tion" a" candidly a" po""ible. Bour na e 8Co pany *a e9 i" Optional. S+1-%)$ A; B#12'")!$3 I$4)"&#-%)$ 5. Eender ale
1

Iemale

B. %ge of the respondent A'+ EY+#"*F 18 A 30 31 A 80

5 B

81 A 90
<

O7+" 90
A

<. 8ighest level of education -rdinary 4evel

5

2ualification

%dvanced 4evel
B

)iploma
<

)egree
A

'ost Eraduate
=

-thers ('lease specify$

C

A. +ature of your business 3usiness Type anufacturer Fholesale

5 B

&etailer
<

-thers
A

=. 8ow long has the business been operating or Fhat is your business ageH 5G= yrsCG56 yrs 55G5= yrs -ver 5= yrs 'eriod &unning 5 B < A 3usiness

C. To which of these categories does your business belong Sole 4imited 'roprietorship 'artnership 4iability ,ompany 3usiness ,ategory
5 B <

P/+#*+ %$3%1#-+ - + $!&5+" )4 P#"-$+"* %$ - + B!*%$+**""""""".. :. 8ow many employees has your businessH 6GA = G A9 =6 G 99 +o of .mployees
5 B <

566 X %bove
A

7. 'lease state the amount of capital that the business is operating with Starting 1G8 9G@ 10 G 18 19 B A5)7+ ,apital 5 B < A ( illions$

9. i.$

'lease state your most preferred cement brand (Eive only one$ 3amburi
5

ost preffered brand

8ima
B

'ortland
<

Tororo
A

-thers 8 Plea"e Specify9

ii.$ iii.$

/indly state why you prefer that brand ... Fhich of these countries produces cement brands you prefer above all the restH 'ortugal Tan!ania 'akistan @ganda /enya

P"+4+""+3 C+&+$B"#$3 P")3!1+*F 5

<

iv.$

Fhy do you prefer cement brands from that particular countryH ...

F)" - + %-+&* %$ - + -#5/+ 5+/):C 2%$3/. %$3%1#-+ .)!" /+7+/ )4 #'"++&+$- 4)" +#1 :%- .)!" &)*- ,"+4+""+3 C+&+$- 5"#$3 %$ &%$3 .
!i"agree Strongly Agree Strongly <ncertain !i"agree Agree

C)!$-". )4 O"%'%$

8 Plea"e Specify9 -thers

5 B < A = C : 7

Fhen buying cement( I always seek to find out what country it was made in. I feel that it is important to look for a country of origin information when deciding which cement to buy. To make sure that I buy the highest ;uality cement( I look to see what country it was manufactured in If I have a little e0perience with a certain cement brand( I search for country of origin information about it to help me make a more informed decision. I refuse to purchase cement without knowing its country of origin. Fhen purchasing cement( I believe country of origin will determine the reliability of the brand Fhen I am buying cement( the country of origin is the first piece of information that I consider. ,ement"s country of origin does determine the ;uality of the product.

5 5 5 5 5 5 5 5

B B B B B B B B

< < < < < < < <

A A A A A A A A

= = = = = = = =

!i"agree Strongly

9 56 55 5B 5< 5A

Fhen buying ,ement that has a high risk of underperforming( a person should always look for the country of origin It is less important to look for country of origin when buying cement that is less e0pensive. Seeking country of origin information is less important for ine0pensive cement brands than for e0pensive cement. I find out cement"s country of origin to determine its ;uality. To purchase cement that is acceptable to my family and my friends( I look for its country of origin. I look for country of origin information to choose the best brand available in a product class. P+"1+%7+3 Q!#/%-.

5 5 5 5 5 5

B B B B B B

< < < < < <

A A A A A A

'25 The ;uality of cement from my current supplier is good '2B ,ement from my supplier is always pure and not tampered with. '2< ,omparing my current supplier with others on the market( I am satisfied with the ;uality of ,ement '2A y supplier keeps me informed of all cement ;uality and safety related '2= information. y supplier is the best in terms of cement ;uality.

5 5 5 5 5 5 5

B B B B B B B

< < < < < < <

A A A A A A A

'2C The ;uality of cement from my supplier is environmentally friendly '2: The cement from my supplier is manufactured using the best technology

Agree Strongly = = = = = = = = = = = = =

<ncertain

!i"agree

Agree

'27 The buildings structures made with the cement I use are widely known to last long,ement from my supplier has generally a more user friendly composition '29 The than that from other suppliers.

5 5

B B

< <

A A

= =

!i"agree Strongly

<ncertain

!i"agree

P+"1+%7+3 V#/!+; 6unctional Value of Ce ent

I15 I1B I1< The cement brand I use as a whole has been so helpful to my building structures The benefits of the cement have been maintained all of the time The level of benefits derived from this brand I use are acceptable compared with other cement brands

5 5 5

B B B

< < <

A A A

!i"agree Strongly

!i"agree

Agree A A A A A A A A A A A A A A

I1A I1= I'5 I'B I'< I'A . 5 . B . < . A . = S15 S1B S1<

F)" - + %-+&* %$ - + -#5/+ 5+/):C 2%$3/. %$3%1#-+ .)!" /+7+/ )4 #'"++&+$- 4)" +#1 :%- .)!" &)*- ,"+4+""+3 C+&+$- 5"#$3 %$ &%$3 . The benefits of the cement I use are as e0pected
The cement brand I use has always been appropriate for my business 6unctional Price The payment of interest is fully #ustified and acceptable The benefit derived form the loan outweigh the e0penses associated with it. The total cost that it causes me is reasonable The waiting time until I receive the loan is comfortable , otional Value I am happy with the cement brand I use I feel rela0ed when purchasing this brand of cement The salesperson give me a positive feeling associated with the cement ,ement persons don"t hassle me during all processing of purchasing the cement. In general I feel at ease using this cement brand Social Value

5 5 5 5 5 5 5 5 5 5 5 5 5 5

B B B B B B B B B B B B B B

< < < < < < < < < < < < < <

I have come to associate with important people as a result of purchasing @sing this cement this cement brand has improved my importance in my locality any people I know use the same brand of cement

Agree Strongly = = = = = = = = = = = = = =

n <ncertai

Agree Strongly = = =

F)" - + %-+&* %$ - + -#5/+ 5+/):C 2%$3/. %$3%1#-+ .)!" /+7+/ )4 #'"++&+$- 4)" +#1 :%- .)!" &)*- ,"+4+""+3 C+&+$- 5"#$3 %$ &%$3 .

Agree

!i"agree Strongly

<ncertain

!i"agree

3&5 3&B 3&< 3&A 3&= 3&C 3&: 3&7 3&9

B"#$3 L).#/-. I say positive things about my cement brand to other potential customers
I recommend my current cement brand to someone who seeks my advice. I will change to another cement brand as soon as I can I have considered using another brand of cement another supplier in the recent I would still pay a higher price than to change to another cement brand past. I will continue to purchase this brand of cement as long as I can y cement brand gives me the best possible value for money I have no complaints regarding my cement brand I intend to continue with my current cement brand in the foreseeable future.

5 5 5 5 5 5 5 5 5 5 5 5

B B B B B B B B B B B B

< < < < < < < < < < < <

A A A A A A A A A A A A

3&56 I adore my ,ement (current supplier$ 3&55 I would provide referrals to other customers to be supplied by my current 3&5B I will change to another supplier if I e0perience any slight difference in supplier. product and service delivery.

Agree Strongly = = = = = = = = = = = =

F)" - + %-+&* %$ - + -#5/+ 5+/):C 2%$3/. %$3%1#-+ .)!" /+7+/ )4 #'"++&+$- 4)" +#1 :%- .)!" &)*- ,"+4+""+3 C+&+$- 5"#$3 %$ &%$3 .

Agree