Consumer buying behavior and its impact on the local market – A case study on the smartphone market in Bangladesh.
Published on Aug 30, 2020
Bangladesh is the world's 8th
largest number of population country and smartphone number users increasing
year to year. According to the latest research from the counterpoint’s market
monitor service the market of smartphones grew 45% year on year during 2019. The
lack of locally manufactured devices unable to meet the market demands so that the
majority of smartphones importing from outside of Bangladesh and meeting the
local demands. Based on the demand locally manufactured and assemble devices increased
by 29% in 2019 but still not reaching the major pick position to dominate the
source: Google image
Walton is one of the leading local
electronic brands in Bangladesh they mainly focusing on consumer electronics
like refrigerators, Air conditioners, smartphones, TVs. They assemble all its
devices in the country and some of the points they manufactured some products.
On the other hand, incapable to meet the local demands smartphones have to
import from other countries. Foreign brands still holding the top position of
holding the major distribution channel and its growing day by day. Some
well-known foreign brands are- Samsung, Huawei, Apple, Xiaomi,
OPPO, one plus, realme, and Vivo.
Consumers' behavior is one of the
important approaches to find out what trend flows into the market. Consumers
get their intention towards a product based on a certain brand, special feature, price, country of origin image,
ethnocentrism, cosmopolitanism. Besides, the perception of a consumer towards a
high-quality product will make them a clear identification between price and
quality of a certain brand and towards them to find the best choice from the
brands that are offered by competitors. After evaluating the offering brands if
there are more than two brands consumers will choose the brand with higher
qualities. The consumer will not only identify the quality for the
intention of buying a product but also emotional value gets priority to buying intention
because of a feeling happy with them using the particular brand products.
understand the consumer behavior approach these factors define very well- 1.
Cosmopolitan consumer and 2. Ethnocentric consumer. -cosmopolitanism which is a
willingness to participate with others and openness for different cultural experiences
with intellectual stance. Some peoples saw themselves as a nation rather than locality, think globally
rather than the nation, the broader, more broadly rather than the narrower,
more culturally diversified, and geographic group. Ethnocentrism consumer intention to buy
domestically produced products more preferences instead of foreign products for
ethnocentric consumers and they have better predictors for domestic product
judgment issues instead of foreign product judgment.
source: statcounter globalstats
If we saw the chart it is reflecting that
consumers are highly interested to buy foreign smartphone brands rather than
local. Why is this situation happening? Because of the consumer either becoming
cosmopolitanism and experiencing foreign brands rather than local brands or
local brands are not meeting the consumer expectation in terms of product
quality, price, feathers. If this number
growing day by day consumer might forget the local brands and depends on the
foreign brands. In this situation, local brands will lose their market position
and be beaten by foreign brands. Consumers are planning to buy a smartphone
after researching the market and market offering products in a range of their
budgets. It's not a matter of some days to create a consumer mindset as
ethnocentric. This mindset is only able to create after having trust and
loyalty on the local brands rather than foreign brands. So at this time- The government
and their policy have might a great role to protect the local brands and
encourage them to produce the best product experience for the consumers.
are less interested or ignore to buy foreign products because they consider
that they are getting harmful to the national economy and increase
unemployment. So consumers are less interested to buy foreign products because
it might hurt their emotional dimension also. But If an ethnocentric consumer thinks
of the value of the money with the buying goods and this emotional dimension
not able to hold for longtime if the consumer is not getting products as their
expectations. So local firms should offer a variety of product with
concentrating the quality and price so that consumer remains the same as an ethnocentric
consumer rather than a shock for the Walton (local brands).
Why consumer has the intention to buy
foreign smartphone rather than Walton?
consumer cosmopolitanism has an impact on the local market? What's your
understanding of ethnocentrism and cosmopolitanism to influence the purchasing
intention of local or foreign products.
area Walton should focus to improve for the market leadership position in
Bangladesh. ( smartphone innovative features, design, price, quality, availability,
C., and G. Elliott. 2003. Consumer ethnocentrism, perceived product quality and
choice. An empirical investigation. Journal of International Consumer Marketing
15 (4): 87– 114 .
Shimp. T. and Sharma. S. (1987).
“Consumer ethnocentrism construction and validation of the CETSCALE”. Journal
of Marketing Research. Vol. 24. Pp. 280-9..pdf.
R. K. 1957. ‘Patterns of Influence: Local and Cosmopolitan Influential.’ In Social
Theory and Social Structure, edited by R. K. Merton, 387–420. New York: The
Pusan National University, Busan, South Korea.