Table 2, the distribution of responses charting attitude toward East Asian country-of-origin tags in the present are summarized, along with other opinions which expand upon these attitudes. In general, attitudes were neutral leaning toward positive toward Japanese, 66.4%, and Korean, 47.8%, COO tags. No respondents reported to have a negative attitude toward the Japan COO tag; these findings seem to suggest a country image-based halo effect as described by Han (1989). Attitudes were opposite when gathering data about China, 95.3%
negative, and Taiwan 35.2% negative. Responses stating opposite opinions of previous information presented in the literature review were removed as “unusable data” to maintain data integrity.
31
Table 2: Consumer Attitude and Knowledge of East Asian COO tags
Consumer Attitude Response Distribution % (N=253)
Positive Neutral Negative
Q1. Consumer attitude toward each of the
separate East Asian country-of-origin tags:
Japan 66.4% 33.6% 0.0%
South Korea 47.8% 52.2% 0.0%
China 0.0% 4.7% 95.3%
Taiwan 0.0% 64.8% 35.2%
Q2. Have you ever travelled or lived in
any of the separate East Asian countries: YES NO
To explain these initial consumer attitudes the first sub-question explored the respondents’ travel of living experience in each of the East-Asian countries. Data in the table illustrated that the vast majority, 76.8% of respondents, had never experienced any East Asian country; the respondents who had travelled or lived in any East Asian country averaged 1.5 experiences within the four countries. The section dealing with educational background stated that 99.2% of respondents did not have any educational background dealing with East Asian languages, politics, history, etc. This information exemplifies the majority of Canadians do not have travel, living or educational experience with East Asian countries suggesting that these consumers gain their COO tag attitudes from media and hearsay influences.
32 In the last question, 46.2% of respondents claimed that their quality perception of products originating from Taiwan was the same as their attitude toward products originating from mainland China. Even though the slim majority of respondents did not find Taiwanese products directly comparable to Chinese, the difference proved to be statistically insignificant with a z-score of -14.72; attitude toward the Taiwanese COO tag continues to be perceived as negative. This unhealthy comparison is supported by a large minority of respondents, suggesting that Taiwanese producers should invest into country image when promoting their products/services in the Canadian marketplace.
33 5.2 Attitude Factor Reasoning
Factor ratings affecting Canadian consumer attitude toward East Asian COO tags are summarized in Table 3. Using the percentage totals of each factor per country in the total sample, domestic quality control measures was rated as the most influential factor (23.59%
average total out of 100.00%) affecting consumer attitude. Research by Elliot and Cameron (1994) earlier examined the direct link between country-of-origin and product quality; the results in Table 3 prove this perception in attitude reasoning. This factor (quality control) measured most influential for every country with its highest rating in China, 28.9% of the total sample stated that China’s negative COO tag image comes from poor domestic quality control measures. Domestic workplace safety standards came in as a distant 2nd at 16.14% of the total sample average. Again, China had the highest factor percentage among East Asian countries as respondents agreed that this was the second factor most affecting their negative perception of Chinese made products; information supported by research from Roth &
Romeo (1992). Two choices came close as being the 3rd factor most influencing Canadian consumer attitude toward East Asian COO tags: human rights investment and national environmental policies. Low investment into human rights more influenced negative consumer image of the Chinese tag (22.8%), while the data proved well-built national environmental policies to be a stronger influence on the positive COO tags of Japanese (16.50%) and Korean (12.30%) tags. Country-of-origin research by Wall and Liefeld (1991) states that consumer judgments are more shaped by positive imagery than existing negative factors. Following this research, National environmental policies become a more influential factor in consumer judgment reasoning furthering the gap in total sample average from human rights investment. Other factors that play important parts in the COO tag attitude reasoning of Canadian consumers are domestic economic development (9.06%) and
34 economic and political stability (9.26%). Taiwan was the only country that scored high with its domestic economic and political stability (20.0%) being an influence. This factor scored high among Canadian respondents and is most likely a result from the country’s international political status. Wang and Lamb (1983) found that North American consumers perceived the level of Taiwanese economic development to be higher than it actually is and still gave low evaluations of its products. This may be explained by Wang’s “political climate” variable.
Table 3: Positive/Negative consumer attitude reasoning Response Distribution %(N=253*3 choices)
Attitude Reasoning Positive Negative
Factors Japan Korea China Taiwan
Domestic quality control measures 26.60% 19.40% 28.9% 19.5%
Domestic workplace safety standards 11.10% 10.90% 25.8% 16.7%
Domestic economic development 9.00% 15.90% 0.9% 10.4%
Human rights investment 5.70% 11.60% 22.8% 6.3%
National environmental policies 16.50% 12.30% 11.3% 6.9%
Government system (Capitalism, Communism, etc.)
1.20% 2.40% 2.2% 3.8%
Personal cultural knowledge/experience 4.30% 1.60% 2.8% 5.5%
Quality of living in country 4.90% 6.90% 0.7% 6.2%
Economic and Political stability in country 6.60% 7.00% 3.4% 20.0%
Domestic technological advancement 14.10% 12.00% 1.2% 4.6%
35 5.3 Demographics and attitudes toward East Asian COO tags
To expand upon these results, the statements listed in table two were cross-tabulated with demographics. Table four contains a summary of descriptions determined from contingency tables. Some interesting trends can be summarized across statements. Middle-aged males were the most common to have a positive appeal toward both Japanese and Korean COO tags, while women were most negative toward China and Taiwan.
Education was also a significant factor when determining consumer attitude toward COO tags; consumers with lower education were most likely to follow popular attitude trends. The only response that did not vary by age, younger age brackets, was the negative attitude toward the China COO tag. Corresponding to research by Ouellet (2007), respondents favoured COO tags that were similar to their own ethnicity; i.e. respondents with East Asian background were in most cases positive or neutral toward their ethnic tags; this was a visual observation made by the data researcher.
These findings are not encouraging to Canadian industry, when it is considered that younger families will be the greatest consumer bracket in the future in a market supplied by imported general merchandise. However, opportunities arise when other demographic trends are considered. Those with higher income (items 1, 3) and higher educations (items 2, 3, 4) were most positive to developed country COO tags and least likely to buy the China tag.
Looking at question 7, the respondents who agreed that Taiwanese products have the same quality as Chinese were majority low income and uneducated consumers; respondents in mid- and high level income brackets did not agree. These upscale-buyers who have the highest level of discretionary buying power, may also be the most likely to compare the
36 Taiwan COO tag in the same upscale category as Japan and Korea. This is an opportunity for Taiwanese producers to adapt marketing and pricing strategies.
Table 4: Demographic comparison among existing consumer attitude Attitude
Those with high incomes (>$80,000) were most positive.
Education Level 0.02 Those with mid-education (College) were most positive.
Ethnic Background 0.05 Europeans were most positive.
2. < Positive
Korean COO tag Sex and Age <.01 Males and Females in their 20's and 30's.
Income Description 0.01 Attitude evenly distributed among classes.
Education Level 0.02 Those with high education (university) were most positive.
Ethnic Background 0.05 Most non-Asians were neutral.
3. < Negative
Chinese COO tag Sex and Age <.01 All age levels below 60's were most negative.
Income Description 0.01 Those with high income (>$80,000) were most negative Education Level 0.01 Those with high education (university) were most negative.
Ethnic Background 0.02 East Asians were most positive.
4. < Negative Taiwanese COO tag
Sex and Age 0.01 Younger females (10-29) were most negative.
Income Description 0.02
Those with low income (>$45,000) were most negative Education Level 0.01 Those with high education (university) were most positive.
Ethnic Background 0.04 Negative attitude evenly distributed among ethnicities.
5. Travelled or
lived in East Asia Sex and Age 0.02 High levels of experience among young males and females.
Income Description 0.01 Mid- to high-level incomes had more experience.
Education Level <.01 Higher education levels had more travel experience.
Ethnic Background 0.05 High experience level among European-Canadians.
6. Educational background with East Asian major
Sex and Age 0.02 Young males in their 20's and 30's Income Description 0.03 Mid-level incomes <$80,000
Education Level <.01 All respondents had a graduate level education.
Ethnic Background <.01 All European-Canadians (Caucasian)
7.Taiwanese products have the same quality as Chinese
Sex and Age 0.02 < Younger (10-29) females and males said no Income Description 0.03 Lower-level incomes >$45,000
Education Level 0.02 Respondents with lower education (High school) said yes.
Ethnic Background
0.05 Indian and European Canadians said yes; East Asians said no.
37 The percentage frequency of reasoning factors categorized by gender is summarized in Table 5. Using percentages in the total sample, domestic quality controls was the most chosen factor among respondents when explaining their negative and positive COO tag attitudes (23.4% on average with high score, 32.6% among male positive attitudes and a low of 13.3% among female positive attitudes). The second most chosen factor was domestic workplace safety standards in East Asian countries (15.5% on average with a high score of 22.8% among female negative attitude and low of 5.6% among male negative attitude).
Domestic quality control measures and workplace safety standards were the most influential reasoning factors while the concentration between sexes was more widely distributed among other popular factors. Investment into human rights was the second most influential factor causing a negative attitude toward Chinese and Taiwanese products among women (21.6%), while economic and political stability caused a negative attitude among males (18.7%). Wang and Lamb (1980) suggested that the political orientation of a country (capitalist, socialist, communist) substantially affects its quality image resulting from beliefs about values of the political-economic system overshadowing the formation of attitudes toward the goods themselves. Only partial support is given here. Capitalist countries do dominate the high ratings, while communist countries fall lower. However, the ratings seem related more to the level of economic development than to political orientation. National environmental policy was a positive influential factor among both male (11.2%) and female (15.6%) respondents;
domestic technological advancement (13.5%) was only a popular factor when measuring male popular attitude toward Japanese and Korean COO tags. Research by Han and Terpstra (1988) also completed information showing American consumers’ support of Japanese and Korean products, focusing on electronics, having superior quality to that of their domestic equivalents.
38
Table 5: Reasoning Factors by Gender variable Response Distribution %(N=253*3 choices)
Attitude Reasoning Positive Negative
Factors Male Female Male Female Average
Domestic quality control measures 32.6% 13.3% 28.0% 19.5% 23.4%
Domestic workplace safety standards 5.6% 17.8% 15.7% 22.8% 15.5%
Domestic economic development 10.9% 11.6% 4.1% 11.2% 9.5%
Human rights investment 4.6% 12.7% 7.5% 21.6% 11.6%
National environmental policies 11.2% 15.6% 8.5% 10.1% 11.4%
Government system (Capitalism, Communism, etc.)
3.6% 1.2% 6.0% 0.0% 2.7%
Personal cultural knowledge/experience 5.2% 4.9% 3.8% 2.5% 4.1%
Quality of living in country 4.2% 10.3% 3.9% 3.0% 5.4%
Economic and Political stability in country
8.6% 7.0% 18.7% 8.3% 10.7%
Domestic technological advancement 13.5% 5.6% 3.8% 1.0% 6.0%
Number of Respondents 142 111 142 111
39 Chapter Six: Conclusion
Generally, Canadian consumers seemed supportive of high domestic quality control measures and workplace safety standards in East Asian countries-of-origin. Imports have continually eroded domestic markets for many manufactured goods and will continue to do so if East Asian exporters can improve their image weaknesses in export product categories.
Attitude reasoning was spread out among multiple factors depending on the country-of-origin, but important trends can also be identified in consumer demographics. Age and education were the most frequently significant demographic variables. Respondents with higher education seemed to have the most extreme attitudes (positive and negative) toward the COO tags. As Lee and Heslop (1991) stated in their earlier research, education exposes the consumer to deeper insights and evaluations allowing for them to expand the buyer decision process. The attitudes of highly educated respondents can be used as an important variable to overall consumer attitude in a society.
Turning attention to the age variable, there was a constant negative attitude toward the China COO tag and positive attitude toward Japanese and Korean COO tags; younger respondents did not hold a negative attitude toward the Taiwan COO tag. Similar to the values in Johansson and Nonaka’s (1985) research, age was considered a key demographic variable because it shaped future trends and preferences.
In this study, younger age groups concentrated their responses among specific reasoning factors unveiling exactly where East Asian manufacturers should be investing to sell their products to Canadians consumers. One of the factors popular among younger respondents (Table 3) was the environment policies of each country-of-origin. East Asian governments should profit from celebrating breakthroughs in environmental policies and
40 ideals (Chao, 1998). Government initiatives which seriously address these popular issues could go further to building the demand for East Asian-made goods and stimulating the economy than can current efforts including protectionist policies in Japan and loose environmental and human rights policies in China.
Canadian consumers have good will toward Japanese and Korean-made products and want to believe that these products offer them what they want. Women, who are the primary purchase agent for goods, were especially negative toward Chinese and Taiwanese-made products. Yet many of the younger women believed that product quality would improve in the future, showing promises for these COO tags – showing that there is room for improvement. Female consumers showed a great concern for the laborers making the goods as investment into human rights and workplace safety standards were considered to be the two most influential factors affecting China’s negative COO tag image.
With continued economic development and growing middle class, these factors will most likely become less of a concern among foreign media in the future.
This research adopts a survey analysis method which is necessary to gather both quantitative and qualitative data that initially did not exist. It provided significant insights into the research problem. With this study, I begin to contribute a deeper understanding of consumer reasoning and demographic influence surrounding the COO effect influencing imported products from East Asian countries.
Creating a uniform attitude in a multicultural population may be inevitable; knowing the links between cultures and purchasing behavior and realizing the market’s preferences will help reduce uncertainty about marketing construal and strategy. At the same time, knowledge of origin preferences may help importers and exporters better understand and
41 interpret their audience’s purchasing reasoning and find ways to bridge gaps created by attitude differences (Nonaka, Douglas & Johansson, 1985).
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47
National Sun Yat-sen University
The following survey has been designed to collect consumer data dealing with visual and psychological attitudes among Canadian consumers towards advertising in Canada. If a participant has any questions or concerns they should directly contact Garrett Mellon @ 1-250-718-2520 or garrett.mellon@gmail.com.
Section One – Demographics
South American European African Southeast Asian
East Asian Central Asian Russian Middle East
48
Section Two – Consumer Attitude
Section Two – Consumer Attitude