LETTER OF ACKNOWLEDGEMENT

We would like to take this opportunity to thank our instructor

Mr. Zeshan Atique who made this report possible by providing his
unconditional guidance and co-operation throughout the semester. We are
indebted to him for assigning this report, thereby giving us a chance to
demonstrate our capabilities and skills in the related course. It was due to the
vast insight, knowledge and experience that we have been able to gain
invaluable knowledge from this course.

SUMMARY

1
We produced this report to find out the highly increasing current economic
demand for Chinese product especially in electronic items and to analyze the
factors which are compelling Pakistani consumers to buy the Chinese
products. We conduct this research in the form of questionnaire through
which we intended to ask questions that would portray the reasons of
consumers demanding Chinese brands especially electronic items. The
result, we believe provide a snapshot on Pakistani current consumption on
Chinese goods especially electronic items.

Being students of economics we can justify the increasing demand of

Chinese items through different reasons like due to the easy access to
imported items since there is a huge trend in Pakistani consumers to use
exported items as they find they more reliable quality wise. And also the low
numbers of variety available due to less developed industrial sectors of
Pakistan. After 9/11 there is a rapid increase in consumers financing due to
the money transfer by overseas Pakistani since the bad business situation
was not in a favor of investment, so banks start consumers financing which n
increases the demand of luxury items including electronics and since
Chinese goods are easily available and at low price as compare to other
imported electronic items.

But to study the rational behavior shown by consumers we conducted this

survey. What actually the lay man thinks before buying an electronic item.
“Consumers acts in a systematic rational behavior”

Our survey was conducted during the month of April 2009 around 100
people age group 18 to 25 completed the survey.

ABOUT THE REPORT:

2
The report is based on the survey “what are the factors/reasons behind the
rising demand for Chinese product especially in electronics items in our
country?”

The survey was conducted to know about the consumers’ willingness to buy
a Chinese product instead of local and other imported brands.

We focused our research on students especially those who have experienced

as well as experiencing the Chinese product, based on our observation, we
conclude the negative and positive opinions of students regarding
consuming the Chinese items.

This report is divided into three sections.

Section I comprises of the secondary data accumulated through various

sources like articles from different newspaper from internet and also statistic
of chare of china imports in order to fully understand the availability and
purchasing scenario.

Section II constitutes of the primary data survey via a focus group of

random students. Highlighting, why they prefer Chinese product over other
counties brand product and what are the factor problem compel them to
choose Chinese product while enter into the market.

Section III of the report presents a thorough analysis of the questionnaires.

Based on the analysis and result from all 3 parts a conclusion is drawn.

3
SECTION I

4
SECONDARY DATA:
ARTICLES AND STATISTICS:

Tuesday, February 06, 2007

CHINESE GOODS FLOOD MARKETS

RAWALPINDI: The current influx of Chinese goods has not only posed challenges to our local
industrialists but at the same time has opened a commercial vista by facilitating affordable
shopping to the countrymen, a survey revealed.

It revealed that there was no imported telephone set at any shop except the Chinese sets in Bara
market. Similarly there were a few Japan-made sets of VCD and DVD; the rest was the Chinese
products. “If you are offered a DVD player at Rs 2,500 then why would you stress for a Japanese
item of Rs 7, 500, said an electronic goods dealer.” He said the middle-class people have got a
respite from the inflationary effects of price rises.

In fact the Chinese industry has made an ordinary man's access to those luxurious items that were
earlier just dreamt of by them, he added. People find almost every consumable item of daily
usage at far cheaper rates as compared to other imported goods. In many cases a Chinese good
costs even far less than an indigenous product of same species.

There is a wide variety of consumable items to choose from. The list is very exhaustive: Barbie
doll to Chinese Viagra, garments, footwear, electronic appliances, stationery, children toys,
interior decoration, crockery, bathroom utensils, kitchen-items, hosiery, watches, automobiles,
carpets; gem stones and cosmetics.

The list goes on and on and the flood of Chinese goods seems to pervade our entire routine life.
From the posh super markets to the footpaths one can find vendors with their makeshift shops
carrying Chinese products. A wholesaler in the China market said the impact of China is so
impressive that even local industrialists are marking their products with made in China and
exploiting the situation. He said the situation is so alarming that customers now demand a made-
in-China product.

5
Pakistan

Selling and buying in Pakistan

Reaching the consumers | Distributing a product | Market access procedures | Organizing goods
transport | Identifying a supplier

Reaching the consumers marketing opportunities

Consumer behavior

The Pakistani consumer is very price sensitive and consumption levels of households
generally come down with rise in prices. Although some Pakistani consumers are aware
of quality differences and insist on world-class products, majority of the customers can
sacrifice quality concerns for price reductions.

The quality of after-sales service plays an important role while making a purchase
decision. To retain customer loyalty, companies are increasingly focusing on after-sales
service.

In case of durable and non-consumer items, many consumers prefer to have a complete
turnkey package which includes installation, operational training, and onsite guarantee.

Consumer profile and purchasing power

Pakistani consumers are now becoming more and more brand conscious. This trend is
generating demand for some products that were previously unfamiliar, particularly in
sectors like apparel and household consumer durable items.

Moreover, improvement in country’s economy has resulted into an increase in purchasing

power and an expansion of the middle class.

However one should know that there is a small section of country population (less than
5%) which belongs to elite section of the society; consisting mainly of landlords,
politicians, and government officials. They are the biggest consumers of luxury goods
imported into the country.

by Alex Zaharov-Reutt

Monday, 27 November 2006

6
Fake Chinese electronics selling better than
the originals!

by Alex Zaharov-Reutt
Monday, 27 November 2006

It’s a funny old world. Chinese manufacturers are copying

the circuit boards and designs of products from Japan and
Korea, and they’re doing it so fast that by the time the
originals arrive in the marketplace, they’re seen as the
fakes!

China is a land of endless factories; with many pumping out the

world’s most desirable gadgets, from iPods to portable computers
to digital cameras and much more. But with so much electronics
smarts to hand, the pirate electronics industry is very active.
Chinese electronics pirates have been very busy, churning out
excellent copies of LG’s Chocolate phone right down to the
glowing touch-controlled keypad and smooth sliding action.

LG took so long to get a Chinese version ready, that by the time

they launched theirs into the market, the copied Chinese version
had been on sale for so long that LG’s phone was seen as the fake
item copying the ‘original’ Chinese version.

Another example is the PSP. Rumoured to be coming out with in a

version that contains a standard GSM mobile phone, a Chinese
manufacturer came out with a phone that looks very much like a
PSP, although not as wide, with a stack of pirated Nintendo games
thrown in for good measure to beef up its gaming credentials,
even if those games have been shamelessly ripped off from
Nintendo.

Plenty of other goods, both electronic and otherwise, are routinely

copied in China. Everything from designer clothes, handbags,

7
Mont Blanc and other brand pens, expensive cars, golf clubs,
jewellery, sports shoes (sneakers), many modern toys including
many of the robots in the ‘Robosapien’ series and plenty more
including CDs and DVDs.

The electronics market is just the latest frontier, with costs of

electronics production so low in China. Many of these products will
not officially make it out of China, but will be smuggled out to
appear in stores across Asia, and in likely much smaller quantities
to first world Western countries.

The piracy of electronics is nothing new. In the 90s, I clearly

remember fake Panasonic DVD players marked as ‘Panasonic’, a
brand name so ridiculous only the incredibly dimwitted would
mistake it for the original.

But sell these products do, especially in Asia where the prices are
low, few questions are asked and in many cases, the quality is
actually pretty good.

Samsung is said to have been so concerned by seeing its phones

copied on the Chinese market that it tracked the distribution
channels back to the source and discovered the electronics guys
responsible for copying their latest products.

After offering them a job with Samsung and a chance to go

legitimate, they are reported to have declined the offer, saying
that they were able to make more money by simply continuing in
their pirate ways. What Samsung did next is not known.

Eventually China will crack down on the blatant piracy seen on its
shores, but until then, the world will keep on seeing ever more
creative and ever better quality copies from Chinese
manufacturers, along with complete duds that should definitely be
avoided and products of varying quality everywhere in between.

What a funny old world we live in, where people will do almost
anything and copy almost anything to make, or save, a buck.

8
STATISTICS:

Rising Imports from China

by Syeda Majeeda Aqeel

TRADE policy 2006-07 set exports targets at $18.6billion. While federal budget 2006-07
projected the volumes of exports at $17 billion. The export volumes practiced mixed trends
in 2006.Between FYs 1999-2000 and 2005-06, exports have more than doubled from $8.0
billion to $16.6 billion. Pakistan exports are 13 percent of GDP whereas Chinese exports
were 40 percent in 2005-06.The government is keen on fixing new targets of exports like
$28 billion during the next five years, $130 billion in 2020 and so on. But reality speaks the
bitter truth and we are losing our shares in global exports and trade by each day. During
the last five years, Pakistan’s economy as well as its manufacturing sector has undergone
substantial expansion.
The resulting additional demand for industrial raw materials and machinery is being met by
imports from China. Consequently China is becoming a major supplier for imports to
Pakistan. On the word of November 2006 estimate, China has almost doubled its share in
Pakistan’s total imports during a short period and is now third largest import source having
9.2 % of the total imports after Saudi Arabia (11.1%), and UAE (10.3%).A major jump in
China’s share in country’s total import is visible since Federal Year 2003 that had resulted in
worsening of trade balance. The rapid increase in trade with China comes largely because of
Pakistan's competitive geographical position, i.e. through the Karakorum Highway, the
modern paved version of the Silk Route, and more competitive international bidding for
large contracts. The design of the bilateral Free Trade Agreement includes Trade in Goods
and Investments in the first Phase and the leaders of both the countries have decided to
negotiate on Trade in Services during 2007 to enlarge the coverage of the Free Trade
Agreement. Pakistan has given market access to China mainly on machinery; organic; and
inorganic chemicals, fruits & vegetables, medicaments and other raw materials for various
industries including engineering sector, intermediary goods for engineering sectors, etc.
According to the provisional figures compiled by the Federal Bureau of Statistics, exports
from Pakistan during 2006 amounted to Rs.83, 805 million (provisional) as against Rs.66,
546 million during 2005 showing an increase of 25.94% over 2005. Main commodities of
exports during 2006 were Bed wear, Knitwear, Cotton cloth, Cotton yarn, readymade
garments, Art, silk & Synthetic textile, Rice basmati, Rice others, Towels and Petroleum
products.

The increase (+) / decrease (-) recorded in main commodities exported during 2006-07
over 2005 -06 as shown in the Table-A:-

9
Commodities % Change for value in million
Rupees in 2006 over
2006 2005
Bed wear 15.37 25.32
Knitwear -8.41 37.13
Cotton cloth 16.32 -2.02
Cotton yarn 2.95 11.24
Readymade garments 3.84 11.48
Art, silk & Synthetic textile 111.98 559.61
Rice Basmati 7.87 71.86
Rice others -9.05 -22.92
Towels 14.22 34.26
Petroleum products 52.99 52.66
Table-A Source: - State Bank of Pakistan

Imports into Pakistan during 2006 amounted to Rs.168, 433 million (provisional) as against
Rs.137, 400 million during 2005 showing an increase of 22.59% over 2005.
Main commodities of imports during 2006 were Petroleum crude, Petroleum products, Other
Apparatus (Telecom), Iron & steel, Palm oil, Plastic materials, Mobile phone, Electrical
machinery & apparatus, Raw Cotton and Textile machinery.
The increase (+) / decrease (-) recorded in main commodities imported during 2006 over
and 2005 as shown in Table-B:-

Commodities % Change for value in million Rupees in 2006 over

2006 2005
Petroleum crude 21.16 37.72
Petroleum products 14.25 65.29
Other Apparatus (Telecom) 5.79 109.06
Iron & steel 34.84 -11.22
Palm oil -1.48 69.93
Plastic materials 3.90 7.63
Mobile phone 24.52 41.38
Electrical machinery & apparatus 74.36 45.78
Raw Cotton 63.00 51.55
Textile machinery 20.51 -39.36
Table-B Source: - State Bank of Pakistan

Pakistani manufacturers who feared Indian goods for being cheap are poised to face the far
cheaper Chinese goods. Since the Chinese goods are low priced, the surge in imports may
not be a worrisome sign. But there are some concerns that need to be highlighted. Firstly,
the imports of goods that are also domestically produced e.g. electronic goods, footwear,
ceramics, plastic items, etc, can hurt the domestic industry. In fact, the continuous increase
in supply of these goods at reduced prices is posing tough competition to the relevant
manufacturing units. However this competition is beneficial to consumers as they are
enjoying lower prices. The domestic producers, on the other hand, will need to increase
their efficiency so that they could offer lower prices and thus hold the market share.
Secondly, in some cases, the imported Chinese goods have almost completely wiped out the
branded foreign suppliers of the some goods. The substation of expensive goods with the
low priced imports has the impact of lowering the country’s overall trade deficits.

Experts and analysts are of the view that scope of exports can be enhanced only if the
economy is put on sound footings and fiscal fundamentals are put right by taking the

10
following measures that might sound as bitter pills.
• GDP growth should be export oriented
• Increase the agriculture and industrial productivity.
• More focus should be on value addition.
• Wider range of countries for exporting should be adopted.
• Exports sector is lagging behind owing to tightening of monetary policy. High interest
rates have produced negative trends in exports in 2006.
• More financial and administrative incentives.
• Reduction in production costs.

Drawing conclusions; it is no use arguing that we are a small compared to China, and so
can’t compete with China. How small are the industries like Belgium, the Netherlands and
Denmark living in the neighborhood of France and Germany, and thriving with industries
known for their excellence?

They are focusing on their core areas of competence and competitiveness, and improving
their capabilities all the time through research and market surveys.

Our industries and exporters have to learn to accept lower profits and spend more money
on research and market surveys.

[The writer is a noted Economist and has contributed this article via Email]●

11
RESEARCH QUESTION:

• Which factor compelled you to purchase Chinese product?

• Why is it so happen that a customer intends to buy quality

product but end up purchasing Chinese product?

• To what extent does the low cost Chinese product influence your
choice of purchase?

12
SECTION II

13
METHODOLOGY

The primary research tools employed for the survey in the qualitative research
procedure is a direct approach, namely, focus groups.

FOCUS GROUP ANALYSIS

The objective for conducting a focus group was to gather opinions regarding the
highly demand of Chinese product and the factor behind this willingness. The
focus group constituted of 5 participants, who complied with the sample
requirement. In most of our discussion people mostly agreed that the demand for
the highly increasing Chinese product due to their low prices. The people have low
earning income and they are unable to approach other high quality branded product
due to their extremely expensive prices.

RESULTS FROM THE EXPLORATORY ANALYSIS;

We realized after conducting the primary tool that the rationality behind the lack
of competence the Chinese product with the other national or any other imported
branded product is the prices of the products must be low enough so that the other
countries brand product or our national product can be highly demanded as
Chinese products are these days.

14
HYPOTHESIS:

CONTINUOUS INCREASE IN DEMAND FOR CHINESE BRAND IN

PAKISTAN IS DUE TO THEIR LOW PRICES.

SECTION III

15
Following is the questionnaire which was used to analyze the behavior of Pakistani
consumer buying Chinese electronic item instead of local and other imported
items.
The survey was conducted in different departments of University of Karachi.
Regardless of their financial status.100 students completed the survey including
male and female both.

16
This questionnaire is to know your willingness to buy Chinese
brand of any other specifically in electronic items.

Department: __________________ Gender: _____________

Q-1 Income of your family____________

□ A-Below 20,000
□ B-21,000-30000
□ C-Above 30,000

Q-2 How many times in a year you usually shop for electronic item.
□ A-Once a year
□ B-Twice
□ C-More

Q-3 The items you usually purchase are

□ A-As a gift for someone
□ B-To be used by yourself

17
Q-4 Which kind of product you prefer to buy?
□ A-Imported
□ B-National
□ C-Branded
reason: _______________________________________________

Q-5 Do you always purchase different products of same brand every

time you shop?
□ A-Yes
□ B-No
□ C-Often
□ D-Seldom

Q-6 Do you buy electronic item from the_______________________

□ A-Same franchise
□ B-Different (It doesn’t matter for you)

Q-7 In your opinion does research plays an important role in

purchasing on electronic items.
□ A-Yes
□ B-Depend on product
□ C-Never

Q-8 If yes, through what means do you conduct your research? (Select
the major one)
□ A-Internet
□ B-Market visits
□ C-Consumers perception(friend’s opinion)
□ D-Retailer’s opinions

Q-9 Which factor compelled you to purchase Chinese product?

□ A-Trend
□ B-Quality

18
 □ C-Durability

Q-10 Does your expectation for a product always come true about a
Chinese product?
□ A-Yes
□ B-No

Q-11 Which factor attracts you to buy that particular brand:

□ A-Shape/Style
□ B-Price
□ C-Warranty
□ D-Campaigning by the brand
□ E-On advice

Q-12 What factor compels people to purchase something below their

expectation?
□ A-Low income
□ B-Price of product is high
□ C-Non-availability of that product
□ D-Prices of substitute product are low

Q-13 Why is it so happen that a customer intends to buy quality

product but end up purchasing Chinese product
□ A-Low price
□ B-Disposability of product
□ C-High availability

Q-14 Does the high price affects your purchasing power of electronic
item?
□ A-Yes
□ B-No

Q-15 To what extent does the low cost Chinese product influence your
choice of purchase?

19
 HIGH: A- : B- : C- : D- : E- LOW

Q-16 Will you agreed to buy the low price electronic item i.e. will you
compromise on quality of an electronic item?
□ A-Yes
□ B-No

Q-17 Are you satisfied with the Chinese products?

□ A-Highly satisfied
□ B-Satisfied
□ C-Can’t say
□ D-Dissatisfied
□ E-Highly dissatisfied

Q-18 How likely are you to recommend Chinese products to others

□ A-Definitely will recommend
□ B-Probably will recommend
□ C-Not sure
□ D-Probably will not recommend
□ E-Definitely will not recommend

Q-19 Are you in a favor of liberalization for easy availability of imported

electronic
products:
□ A-yes
CAMERA MARKET □ B-No

How can I help you

Q-20 In the caricatures
sir! below, please fill in the empty balloon?
(Consider yourself, to be the one with empty balloon)

Hey, nice
Can you phone, we
suggest us a wanna buy a
brand. cell phone too.
Customer

Shopkeeper
20
 You are out to
buy a television; We got a wide
range of
what would you televisions what
ask the sales do you want sir.

man at the very

first instance.
You can tell your
preferences in
terms of price,
quality brand etc
Q-1 Income of your family____________
□ A-Below 20,000
□ B-21,000-30000
□ C-Above 30,000

21
ANALYSIS:

38% marked their family’s income range 21000 to 30000. If we have a

glanced on Pakistan previously raised in inflation we can easily
conclude that it is very difficult to feed once family on such a low
income. But most of the Pakistani families are trying to meet their ends
with great difficulty. But at the same time they are the largest
consumer group. By using National Average Per Capita Income using
Atlas method Pakistan has 470$ which far less than world average per
capita income 5,500 $.

Q-2 How many times in a year you usually shop for electronic item.
□ A-Once a year
□ B-Twice
□ C-More

22
ANALYSIS:

64% answered that they shop once a year for electronic items. Due to
massive increased in prices of basic food items there is a steep decline
of purchasing power of general consumers. Affecting their willingness
to purchased electronic items. Not only for low income group but also
for middle income group.

Q-3 The items you usually purchase are

□ A-As a gift for someone
□ B-To be used by yourself

23
ANALYSIS:
A huge number of people said that they purchased electronic items for
their own usage. They preferred to other types of items in form of gift.
Reports and statistic shown on internet that less number of people
send electronic item gift. And the reason is high price of electronic
items. Which force them to find an alternative for electronic gift items.

Q-4 Which kind of product you prefer to buy?

□ A-Imported
□ B-National
□ C-Branded
Reason: _______________________________________________

24
ANALYSIS:
53% people give the answer that they buy branded items and 29%
people answered that they purchased imported items the percentage
of purchasing local item is low as 18% which shows they behavior
towards locally manufactured electronic items. Pakistan industrial
sector has been neglected there must be strong work done in industrial
sectors so local consumers start preferring their own products, instead
of relay on imported goods.

Q-5 Do you always purchase different products of same brand every

time you shop?
□ A-Yes
□ B-No
□ C-Often
□ D-Seldom

25
ANALYSIS:
Pakistani consumer buys the different product of same brands which
has been used by their parents, relatives etc they are not usually in a
favor off experimenting a new brands. This is a common Pakistani
rational behavior shown by the consumer purchasing an electronic
item.

Q-6 Do you buy electronic item from the_______________________

□ A-Same franchise
□ B-Different (It doesn’t matter for you)

26
 ANALYSIS:
81% people answered that it doesn’t influence their behavior from
where they shop for electronic item. Pakistani consumers usually look
into their convenience in purchasing any item. Only 19% of people
show their response towards specified franchise shopping.

Q-7 In your opinion does research plays an important role in

purchasing on electronic items.
□ A-Yes
□ B-Depend on product

27
 □ C-Never

ANALYSIS:
According to 90% people research plays an important role in
purchasing an electronic item. But for 58% of people it depends on the
nature of product they are shopping for. Like before buying a small
electronic gadget they might not search e.g. CDs, walkman, radio, and
hairdryers etc. but for many major electronic items people do go
through a research e.g. T.V , refrigerator microwave etc.

Q-8 If yes, through what means do you conduct your research? (Select
the major one)
□ A-Internet
□ B-Market visits

28
 □ C-Consumers perception(friend’s opinion)
□ D-Retailer’s opinions

ANALYSIS:
As in Pakistan the concept of internet searching is not a very common
practice. Only 19% of people opted internet research. 45% of people
visits market before purchasing a brand which is a common practice in
Pakistan. 29% of people relay on their friends and relatives opinion.
And only 7% goes according to the information provided by the
retailers.

Q-9 which factor compelled you to purchase Chinese product?

29
 □ A-Trend
□ B-Quality
□ C-Durability

ANALYSIS:
There are many factors that can influence purchasing of a specific item
but, three factors can be called major factors that compelled a
consumer to purchase any product that is its quality, durability and its
trend.48% of people purchased product due to trend of that specific
product is on its peak which makes quality and durability and quality
secondary factors. And for 35% people purchasing a product due to its
quality factor which makes durability and trend the secondary factors
and for 17% it’s the product durability which compelled them to
purchase that specific good.

30
Q-10 Does your expectation for a product always come true about a
Chinese product?
□ A-Yes
□ B-No

ANALYSIS:
Chinese products are not very much durable but a consumer can
satisfy his/her wants by simply purchasing these Chinese products.
People do have in their mind that these Chinese products won’t be
durable nor they’ll be good in quality wise as compared to other
imported item but it will give them adequate amount of utilization. And
that what their expectation which comes true according to 83%
people.

31
Q-11 which factor attracts you to buy that particular brand:
□ A-Shape/Style
□ B-Price
□ C-Warranty
□ D-Campaigning by the brand
□ E-On advice

ANALYSIS:
There are different factors involved that can influence consumers to
purchased specific product. We asked about few factors that can affect
their purchasing of that particular brand. According to 34% price is the
major factor which affect their purchasing of product. Since consumers
faces a budget constrains which make the price the major factor the
affect their purchasing choice. 32% said it’s the warranty factor again
money spend on electronic items can’t be invested again and again or
it can’t be done on frequently bases .20% said its shape and style and
so on 8% and 6% said it’s on advice respectively.

32
Q-12 what factor compels people to purchase something below their
expectation?
□ A-Low income
□ B-Price of product is high
□ C-Non-availability of that product
□ D-Prices of substitute product are low

ANALYSIS:
The budget constrain faces by the consumers compelled them to buy
product below their expectation. Which make 42% of the opinion that
due to the low income or less income opportunities they are compelled
to purchased below their expectations. And according to 30% it’s the
high price due to which they opt to choose below their expectations.
According to 17% it’s because of low price of substitute goods, which is
showing other major consumers rational behavior. 11% said it’s the
non-availability of the product they want, which makes another major
factor to influence the consumers purchasing below their expectation.
Since they don’t have another option left then to purchase below their
expectation. Overall 72% peoples purchased due to budget constrain
they faces in the form of low income and high price.

33
Q-13 Why is it so happen that a customer intends to buy quality
product but end up purchasing Chinese product
□ A-Low price
□ B-Disposability of product
□ C-High availability

ANALYSIS:
In this question we asked people why they end up buying Chinese
product as mostly people don’t like to buy Chinese product. 58%
people replied it is due to Chinese low price as compare to other
imported items. And 27% replied that it is due to high availability of
Chinese product in our local market which makes them to purchase
this low quality Chinese product as compared to other imported goods.
15% replied that it is due to the fact that Chinese product don’t have
warranty and they are quite disposable in that sense that’s why they
end up purchasing Chinese product.

34
Q-14 Does the high price affects your purchasing power of electronic
item?
□ A-Yes
□ B-No

ANALYSIS:
The high inflation which affects the purchasing power of consumers is
reflected by the answers of the people 82% people find that due to
high prices they are now purchasing less electronic items. And
according to 18% it doesn’t they find that some electronic items are
necessary items not luxury items they had to be purchased so that
will not affect their purchasing behavior.

35
Q-15 To what extent does the low cost Chinese product influence your
choice of purchase?

HIGH: A- : B- : C- : D- : E- LOW

ANALYSIS:
According to 45% there is a half chance that the low cost of Chinese
product influence them to purchase Chinese product. Which is again
due to the budget constrains they faces which makes tem act
accordingly. In no one’s opinion that the Chinese low cost prices
influence tem to end up purchasing these product.

36
Q-16 Will you agreed to buy the low price electronic item i.e. will you
compromise on quality of an electronic item?
□ A-Yes
□ B-No

ANALYSIS:
76% people answered that they won’t compromise on quality of an
electronic items as these types of product cant be purchased that
easily .consumers have to think about the quality they are purchasing
apart from the budget constrain they faces.

37
Q-17 Are you satisfied with the Chinese products?
□ A-Highly satisfied
□ B-Satisfied
□ C-Can’t say
□ D-Dissatisfied
□ E-Highly dissatisfied

ANALYSIS:
Around 50% people answered that it depends on the product they
purchased or consumed, it depends on the utility they gained from that
particular product. and as we know can’t measure utility in terms of
numbers we can only rank them or assign numbers. Different type of

38
answers were received from people regarding level of satisfaction from
Chinese brand.

Q-18 How likely are you to recommend Chinese products to others

□ A-Definitely will recommend
□ B-Probably will recommend
□ C-Not sure
□ D-Probably will not recommend
□ E-Definitely will not recommend

ANALYSIS:
This question is related to the above question as 50% people were not
sure about the utility they gained from Chinese product so they are
not sure they will recommend the Chinese goods to other or not. 46%
replied that they are not sure about the recoomentation.19% answered
that probably they recommend and 19% that they probably won’t
recommend.

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Q-19 Are you in a favor of liberalization for easy availability of imported
electronic
products:
□ A-yes
□ B-No

ANALYSIS:
The answer of this question reflected the rational consumer’s behavior
of Pakistani consumers that 78% are in a favor of liberalization for
easy availability of imported electronic products. Due to different
reasons from their consumption point of views that their standard of
living will raise, as competition will increase there is a possibility of
decrease in prices.

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 Q-20 In the caricatures below, please fill in the empty balloon?
(Consider yourself, to be the one with empty balloon)
CAMERA MARKET

How can I help you

sir!

Hey, nice
Can you phone, we
suggest us a wanna buy a
brand. cell phone too.
Customer

Shopkeeper

You are out to

buy a television;
what would you We got a wide
ask the sales range of
televisions what
man at the very do you want sir.
first instance.
You can tell your 41
preferences in
terms of price,
ANALYSIS:
Majority of our population are either poor or middle class. Only 2-5% of
the populations are belonging to the elite class. This shows the income
distribution and income earning capacity of an individual. The incomes
of an individual are low but their preferences are high quality product.
The difference/gap between the low incomes and the high quality
product is cover by the prices.

In some cases low prices increase the demand for the product but
in some other cases quality preferring more. It depends upon the
product the customer wants to buy. In electronics item prices and
quality both are important simultaneously. The most preferable
product for the customer is good quality available at reasonable
prices. Chinese products are just according to their preferences

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 CONCLUSION AND INFERENCES
In the light of our analysis we concluded the following results.

• Product should be available at low prices to easily accessibility to the people.

• Quality of the product should be maintained at low prices.

• Government intervention is necessary in the form of giving subsidies to either the

producer or the consumer to increase the purchasing power.

• Government intervention is also necessary to increase the taxes either direct or

indirect on imported items in term to promote national product.

• Quality and quantity of the national product should also be raised and it is offered
at low/reasonable/easily affordable prices.

• Healthy competition should be maintained in the market to promote the quality

products at low prices.

• Giving awareness about the national product to the public either through the means
of media or introducing new schemes.

• Highly increasing the demand for national product, increasing the GDP of the
country which is beneficial not only on small scale but also on the large scale
economies of the country.

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