1.

Introduction

Globalization has increased the opportunities for all the business organization to distribute their
products and services around the world. It is a well-known fact that customer follow economic
reasons in making a purchase decision but they also care for their traditions, culture, social
values and worldviews before buying a product. On the other hand, consumer gets the choice to
choose products from a broad range of categories (Rovira Nordman and Tolstoy, 2011). The
topic which is taken to complete this research paper is “consumer attitude in buying Omani
products”. Primarily, in this research study three independent variables which includes; pricing,
ethnocentrism and product quality is taken and the dependent variable is buying behavior of
Omani customers.

2. Literature Review

According to Ergin and Akbay, (2010), customers are constituently biased in choosing buying
products manufactured in specific countries. Reference is of the view that customers of
developing countries perceived their products as inferiors as compare to the products coming
from the developed countries (Ergin and Akbay, 2010). A similar research study has been
performed by Ayob and Hussain, (2016) to analyze the consumer buying behavior in developed
countries. The research revealed that consumers in the developed countries assess their own
country manufactured products as more favorable, whereas consumers from the less developed
countries assess foreign products as more favorable as compare to their own manufactured
domestic products (Ayob and Hussain, 2016).

According to Garmatjuk and Parts, (2015), an ethnocentric individual supports the tradition,
symbols, icons and products of their own culture and such a person strongly dislikes the
traditions, icons, culture and products of other culture. Garmatjuk and Parts, (2015) was of the
view that with time an ethnocentric individual develops perception for other culture and those
perceptions form a basis for comparing products of other countries with their own country
(Garmatjuk and Parts, 2015).

According to Chryssochoidis, Krystallis and Perreas, (2007) economic theory, price of the
products reflects its value for the customer. Each customer is price sensitive up to some extents
(Chryssochoidis, Krystallis and Perreas, 2007). Chryssochoidis, Krystallis and Perreas, (2007)
proposed that the pricing strategy of an organization have significant impact on consumer buying
behavior. If consumers believe that the price an organization charge is lower than the price
charged by the competitor than an organization can observe a spike in their sales number.
However, Chryssochoidis, Krystallis and Perreas, (2007) was of the view if the price of the
product charged by an organization is higher than expected by the customer, the customer might
not think about purchasing of that particular product.

According to Torres and Gutiérrez, (2007), Perceived quality is of the most important
determinant of purchase intention (Torres and Gutiérrez, 2007). Quality is defined as, degree to
which a set of inherent characteristics fulfills requirements. Anić, (2010) was of the view that
branded products satisfied the needs and wants of the customers because they are manufactured
at a standardized level. Most of the branded products are manufactured in the developed
countries therefore people would like to buy products of other countries (Anić, 2010).

Fakharmanesh and Ghanbarzade Miyandehi, (2013) has conducted a research to analyze price
factor as determinant in purchasing of product or a service. The results of the study revealed that
there exit a negative relationship between consumer buying intention and high prices. Reference
is of the view that consumers would like to buy Chinese products because they are 30% less than
the products manufactured locally. The research further revealed that consumers are price
sensitive and Chinese products are more affordable to customers as they are cheaper as compare
to products which are manufactured locally (Fakharmanesh and Ghanbarzade Miyandehi, 2013).

According to Perera and Dissanayake, (2013), the prestige of foreign brand is higher because of
their scarcity and high priced as compare to local brands (Perera and Dissanayake, 2013). The
same stance of Perera and Dissanayake, (2013) was supported by (Adekambi, Ingenbleek and
Van Trijp, (2015) which suggests that customer would like to buy foreign brands because of their
higher prestige. Furthermore, he added that foreign brand enhances self image of customers and
the product quality is superior which forces the customers to buy the product (Adekambi,
Ingenbleek and Van Trijp, 2015).

Banerji and Mishra (2018) have investigated the effect of ethnocentrism on consumer attitude
towards foreign products. The results of the study revealed that ethnocentric customers would
like to buy products that come from neighboring nations which have similar culture, tradition
and values. Ethnocentrism also plays a vital role in evaluation of foreign products with local
products (Banerji and Mishra, 2018) . A similar study has been conducted by Wong and Zhou
(2012)., which revealed that ethnocentrism leads to an unfavorable effect on foreign products,
quality and later product quality, characteristics and traits of foreign products influence the
customers (Wong and Zhou, 2012).

Bashir et al (2019) , has pointed product quality as the intrinsic and extrinsic cue which is taken
into consideration by the customer when making a purchasing decision. According to Bashir et
al (2019), customers evaluates the quality of the products and analyze to what extent does the
product or brands satisfy their needs. Product quality is one of the most important factors
conceived in developing countries which affect the consumer buying behavior. The results of the
study also revealed that customers in developing countries like Pakistan, India, Oman and Nepal
would like to buy foreign products because of their superior quality (Bashir et al., 2019).

Prior researchers investigated consumer perception in buying foreign products from countries
with different level of economic development and industrial development. A study of (Khan,
Bamber and Quazi, (2012), investigated the importance of a country industrial development as
an influence of the consumer image of that country (Khan, Bamber and Quazi, 2012). A research
study of Zeugner-Roth and Žabkar, (2015), compare customer evaluation and the level of
technology a country is using in manufacturing the product (Zeugner-Roth and Žabkar, 2015).
The overall results of these studies conclude that customers would like to buy products from
industrialized countries as compare to less industrialized countries

Zolfagharian, Saldivar and Sun, (2014), propose that ethnocentric person believes that
purchasing a foreign product in unpatriotic as it can affect the economy of a country and may
lead to reduce the employment level in the country (Zolfagharian, Saldivar and Sun, 2014) .
According to Oberecker and Diamantopoulos, (2011), ethnocentric individuals believe that they
can protect the economy of their country by using domestic products and services. Moreover
Oberecker and Diamantopoulos, (2011)was of the view that ethnocentric customers display the
positive aspects of domestic products. The study of Oberecker and Diamantopoulos, (2011)
revealed that ethnocentric customers believed that the domestic products are more superior as
compare to the foreign products and would like to buy their own country made products
(Oberecker and Diamantopoulos, 2011).
Watson and Wright, (2000), has viewed purchase intention as the willingness of a customer to
purchase a product of a specific organization, brand or a company. It means that the customer
will buy the product of a company or a brand again and again once the customer analyzed that
the product has fulfilled the needs and wants (Watson and Wright, 2000).

A research study was conducted by (Jeon, Qi and Wang ( 2017), to analyze the determinants of
factors which enhance customers urge to buy foreign country products. The quality of a product
is a key factor in motivating the customer to purchase. (Jeon, Qi and Wang (2017), was of the
view that brands keeps on improving the quality of their products which differentiate them from
the organizations operating a t a domestic level. A continuous improvement in product allows
foreign organizations to improve the performance and overall quality of their products. The
research further revealed that customer would like to buy products which are higher in quality.
Jeon, Qi and Wang, (2017), has found a strong positive correlation between product quality and
customer intentions to purchase (Jeon, Qi and Wang, 2017) . A similar study was conducted by
Pande, (2015)., to analyze the effect of quality of product on purchase intention. The results of
the research revealed that their exist a strong association between customer buying intention and
quality of the product (Pande, 2015).

3. Objectives

This research study has the following objectives;

(i) To compare the products prices of domestic and international products.

(ii) To analyze the differences in price affects the consumer buying behavior.

(iii) To determine the role of product quality influences the customer to buy foreign
made product

(iv) To determine the impact of ethnocentrism on buying of foreign products.

3.1. Statement of the problem

Global flow of goods and services can become a national threat in many ways. Global markets
provide economic advantages to more powerful economic states so that integration into global
markets often creates local hardships for producers as prices are depressed. The changes brought
by globalization have threatened the viability of Omani products and services. Chinese products
in almost any industry can be at least 30% lower than local products. Local manufacturers are
forced to reduce their prices to match or risk losing customers. The access of foreign made
products is now easily available to the Omani customers, which makes it difficult for the Omani
organizations to remain competitive and provide the same quality of products and services.

3.2. Research question

This research study addresses the following research questions;

(v) Is there any different in products manufactured in domestic and foreign market?

(vi) How price of a local and foreign product effect the consumer purchase behavior?

(vii) Is there any difference in quality of product manufactured domestically and

internationally?

(viii) Does ethnocentrism effects buying behavior of customers?

(ix) What is the perception of customers towards foreign and local made product?

Pricing

Ethnocentrism Purchase behavior

Product Quality

3.3. Research Hypothesis

This research tests the below given hypothesis;

H1= There exist a significant relationship between pricing and purchase intentions.

H2= There exist a positive relationship between ethnocentrism and Purchase behavior.
 H3 = There is a positive correlation between product quality and purchase behavior.

4. Research philosophy

Research philosophy is the phenomenon by which exploration is carried out or written.

Primarily, there are three different research philosophies which contributes to the research
technique which includes; Positivism, positivism and pragmatism (McLaughlin, 2014). In this
research study an positivism philosophy is used. This research focuses on the subjective meaning
and the interpretation of the meaning hidden behind the phenomenon. A positivism research
philosophy is based on the principal that the researcher performs a specific role in observing the
social world. In this research study, the researchers observe the phenomenon of customer buying
behavior. The phenomenon will be observed by observing and taking feedback from the
customers regarding the ir purchased intentions of foreign and local made products.

One of the biggest advantages of using this approach is that it allows the researcher to understand
the social processes (Novikov and Novikov, 2013). Another advantage is that data collection can
be time consuming but in this research study a selective sampling technique will be used to
minimize the data collection time. In this research study quantitative methods of research is used
which allows the research to remain detached from the respondents. An advantage of positivism
research philosophy is that it uses a quantitative approach, which means that this approach
provides more objective data. There are some disadvantages of using positivism approach. In this
approach, human emotions and human behavior are disregarded. According to this philosophy
everything can be calculated and measured.

5. Ethical implications

This study focuses on human subjects therefore adherence of ethical values must be provided.
The respect for participant has been taken into account that is why in the questionnaire the details
of individuals name have not been recorded. During the analysis of data, data gather from the
participants were combined so that participants reposes remains confidential and secret. In this
research study it was ensured that the confidentially of the respondents were kept secret. The
questionnaire was escorted by an introductory letter describing the aim and significance of the
study. It was promised from the respondents that their confidentiality and identity were kept
secret. Moreover, the published material which was used in this research study gets cited. A
written permission will be taken from government education schools and Respective education
department prior to implementation of research. Confidentiality & Privacy of Data: The acquired
will be dealt and handle with high confidentiality, discretion, secrecy and care. An assurance will
be provided for the fact that information will not be utilized for personal purpose. All participants
will be given a right to withdraw or depart from the research project at any point of time. The all
ethical points will be verbally told to all participants and written draft will also be sign off from
them.

6. Methodology

A research methodology is the process of collecting the data and use of techniques for the
analysis of data (Taylor et al., 2010). The methodology and techniques of collecting data used in
this research study are discussed below;

6.1. Research design

Research design is the outline that refers to combine different parts of study, so that the research
problems can be addressed efficiently. According to Grösser (2013), a research design is a
framework which highlight the methods and procedures for analyzing and collecting all the
necessary information. Research design includes sampling techniques, data collection techniques
and type of study. Research design is a framework which is used to gather data of research
questions (Grösser, 2013). In this research study a conclusive research design will be used. This
study is quantitative in nature and there are several factors which were investigated
quantitatively such as pricing, ethnocentrism, product quality which affect consumer purchase
behavior.

6.2. Sampling

Sampling is the representative of the whole population. In this research study a Selective
sampling technique was used (Etikan, 2016). A total of 100 questionnaires were distributed
among the participants out of which 88 questionnaires were received and 83 questionnaires were
completely filled. It was a consumer centric study, which revolves around customers who would
like to buy local as well as the foreign products. This study employs a sample of 83 Omani
customers. Furthermore, urban customers were selected as a sample because they have an access
of wide range of local and foreign made brands. Moreover, participants between the ages of 18-
60 have been selected for this research study.

6.3. Data collection

A research questionnaire was developed to collect data from the respondents. All the
questionnaires were designed and developed according to 5-point likert scale from 1= strongly
disagree, 2= disagree, 3= Neutral, 4= Agree and 5- Strongly disagree. In order to get valid
response two procedures were adopted one is electronic mail and other is the hard copies which
were distributed among the participant by hand. To get the survey filled a self visit of shops and
malls have been made. The inclusion criterion for respondents includes (i) Respondents using
branded and non-branded products (ii) have age of more than 25 years and (iii) use any foreign
product for the last 5 years. A secondary data was collected from the participants from the
participants by distributing face to face questionnaires. The advantage of using this approach is
that it becomes easier to correct any misunderstanding of the question that is being asked.
Questionnaires will be distributed among the participants to ensure that all the necessary
information was obtained.

7. Findings and suggestions

Globalization offers a great variety of products and services to customers. Customers are price
sensitive but at the same time they need quality products and services which satisfied their needs
and wants. The prices of products manufactured in abroad are much higher as compare to the
products which are manufactured locally. Organizations which are operating at a large scale level
use advance technology which allows them to develop high performance products. In developing
countries customer look for branded products because the quality of domestic made products are
not up to the mark. Individuals with ethnocentrism traits would not like to buy foreign made
products because they believed that this will affect their country economy and employment
opportunities.

Multinational organization or foreign brands can use a market penetrations strategy and charge
low price from the customers initially to grab a large portion of the market share. On the other
hand, multinational organizations have to choose advance technology to manufacture quality
product and achieve economy of scale.
 8. Reliability and validity

This research study is reliable because one half of the findings of the literature review are
significant. The instrument which is used in this research is valid as it was taken from a
published research paper. A published research paper was taken as a base paper to peruse further
and apply it in the Omani market.

9. Conclusion

In the current business environment it becomes difficult for domestic organizations to compete
with huge multinational organizations or organizations which are operating at a global level.
Organizations which are operating at a global level use advance technology to achieve
economies of scale. Furthermore, these organizations provide quality oriented products to their
customers. On the other hand, domestic level organization did not have sufficient resource to
remain in competition with foreign organization. Customers like to buy products which have
better quality standards and performance levels. Instead of getting high quality and high
performance products ethnocentric customers would not like to buy products manufactured by a
foreign country. In developing countries, majority of the customers do not have sufficient buying
power to purchase high quality products manufactured by the foreign countries which also
affects the purchase intentions of customers.

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