1 INTRODUCTION
1.1 Background
As Cambodia’s economy is continuing to grow steadily; China’s economy has also been moving toward very fast in the last four decades, rising from a poor developing country to a major economic power after reforming in the late of 1970s. According to Congressional Research Service (CRS) reported on June 2019, the China’s GDP grew at an average 9.5 percents from 1979 to 2018, made it among the world’s fastest-growing economies. Since the introduction of economic reforms, however, China’s economy not only has grown substantially, but its technologies level also has been subsequently improving in a last few decades. This phenomenon does not occasionally take place; it is the result of endeavor and paying much more attention of Beijing President. Due to these commitments, the quality of Chinese brand products are taking a lot of attention and recognition of their qualities remarkably. Currently, under the administration of President Xi Jinping, the conventional wisdom mad in U.S. is good or China is bad is no longer concern for Chinese consumers. According to Zipser (2017) indicated that there’s 62% of Chinese buyers were more familiar local brands than foreign brands. For previous research institutions also found out that there’s more than 90% of Chinese buyers, to be in the age of 18 to 29 year-old, chose local appliances rather foreign appliances (Credit Suisse, 2018). Today, Chinese products especially brand products including TCL (Telephone Communication Limited;electronics company), Haier (appliances), Lenovo (computer), Huawei and OPPO (telecommunication) and others’ re very well-known including Mainland China and some overseas countries (Wang & Gao, 2010).
During 2011, if compared with local Smartphone brands, there’re only three foreign brands of Smartphone which were the most famous brand phones on Chinese market, and the statistical sale had reached to 70%. At that time, foreign brands such as Samsung, Apple and Nokia became a hero for China’s buyers, there’re no any local brands could compete with them. For local consumers, they viewed local brands seem to be out of fashion and lacking quality if compared with foreign brands (Shepard, 2016). Since People Republic of China (PRC) has relied on the ideas of “Research and Development (R&D)”, quality of Chinese products rapidly increased, and its products’re also getting support both local and abroad. In the last few years, due to the innovation of its quality products, Chinese Smartphone brands are standing the most leading brand in China (Counterpoint Research, 2019).
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1.2 Problem Statement
China is currently not only the most productive country and integrating into modern nation very fast in the last few decades, but its products quality mainly brand products have been improving and getting support from China’s buyers, developing and developed countries. Nowadays, a number of Chinese products especially China’s brand products in Cambodian market are still a question. Many people still do not know about Chinese brand products when they perceive sound “Made in China or Chinese products”, they always judge Chinese products and Chinese brand products as the same products. These maybe led by un-spreading to the public, un-imported products, un-qualified products, not meet the needs of Cambodian consumers, or due to the negetive perception of Cambodian consumers. The other studies also showed that the Chinese products were low quality if compare with developed countries (Schniederjans et al., 2011; Diliberto, 2014). The improvements of Chinese products straight brand products quality are increasing; nevertheless, most of Cambodian consumers still feelhesitate when they hear the word “Made in China or Chinese Products”. There’re no any evidences have demonstrated that Chinese brand phones used to get the first rank among mobile vendor market share in Cambodian marketing (Statcounter Globalstats, 2019). As a result, in order to solve these problems, Chinese producers or manufacturers should produce highly qualitative products to reach an international standard in order compete with western product and gain international market. After products are built with highly standard quality, the marketers should find suitable ways to boost up its selling products more efficiency. In contrary, if it is caused by Cambodian buyers’ behavior what factors are influences on Cambodian people’s purchase behavior toward Chinese brand products? The solutions will based on the real situation of the research finding; among those factors which factor is the most influence on customers’ perception. So recommendations and suggestions will do step by step to reach the research objectives.
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2 LITERATURE REVIEW
2.1 Products and Brand Products
In the age of modern technology, brand name of a product plays very significant role to attract purchasers’ heart, and it is a centre to any business long-term success. In accordance with Feng (2014) found out, a brand was very important for a company and manufacturer because it offered a good position and value for a producer. When customers buy any products, they won’t buy a sole product, but it will include brand name of the firms. Therefore, brands serve as several valuable functions. However, in the basic function, brands serve as the spokesperson of a company, it facilitates to deliver the products to the buyers. For consumers, brands offered an accurate choice for them because brands could guaranty products quality and reduce risks (Keller & Lehmann, 2006). The term product was different from a brand, as said by Alamgir et al., 2010. In common sense, a product is something made to be sold, and it is produced by an industrial process or obtaining through farming, whereas a brand is something bought by a client. A product maybe be able to reproduction by other competitor, but a brand is unique and protected by trademark law in contemporary. In addition, a product can be out-of-date in sometime, while a winning brand is timeless and it depends on manufacturer how good the quality is. The term brand product has been utilized very long time ago; it is considered as old as the human civilization. Conversely, the process of branding a product is seem to be a little difference depend on point in time. Date back to the cave paintings from the south-western Europe about brand cattle during Stone Age and Early Bronze Age when the herd cattle were driven to the north for sale on the market, in order to identify their cattle ownership, the cattle owners used hot iron to stamp on their cattle. Meanwhile, painting on Egyptian funerary monuments about 4000 year-old, the brands were painted with pine tar (Briciu & Briciu, 2016). In Mesopotamia, China, Greece, Roman, Israel, Syria and other places civilization were also used marks, symbol, or name put on the products to identify or indicate quality control, ownership, origin as well as authenticity before offering them to consumers or accessing on the market (Eckhardt & Bengtsson, 2010; Briciu & Briciu,2016; Maurya & Mishra, 2012).
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2.2 Brand Reputation
In the global competitive business and e-commerce, brand reputation of a product or firm serves as vital role to boost its products manufacturing, and it’s good or bad brand depend on the brand implantation. The reputation of a brand refers to the particular brand of a firm or company which was viewed by entire consumers, stakeholders and market through its offering goods and service (Bhasin, 2019). In charge of an outstanding producer, brand must build with a positive reputation because solid brand would assist a business long term sustainable andsurvival. Hence, the company with a good reputation brand name, there would be more supporters and generate more revenue for the firm (Ngwese & Zhang, 2007). In fact, however, good reputation of the brand’s important for some clients in some places and times, not all businesses consumers (Mudambi, 2002). For customers who have limited income or low income, they will look deeply into product price rather than brand reputation.
2.2.1 Country of Origin
In globalization, the term Country of Origin (COO) is not a new phenomenon in contemporary world. Due to the trade barrier, the manufacturing of a product has been moved everywhere around the globe. It is the nature of manufacturers who try to maximize their profit when they operate a business. In addition to trade barrier, labour cost is another factor which can influence of companies decision making, wherever they can gain more profit, they will start up their business or companies immediately. COO is referred to the origin of a product which required putting a sign or label on goods where it was manufactured, designed, developed or assembled (Brenda & Adjnu, 2018). COO played very important role on consumer’s decision making (Saydan, 2013), and most consumers used it as a key or beliefs to evaluate the quality of a product (Verlegh & Steenkamp, 1999). Moreover, COO likes a whetstone which could sharps customer perceptions, consumers’ preference and choice on a product brand making them dare to buy pricy goods (Mostafa, 2015).
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3.1 Selection of Study Area .......................... 23
3.2 OPPO Company ................................ 26
4 OUTCOME OF RESEARCH STUDY AND DISCUSION ........................................... 39
4.1 The Comparison of Consumer’s Perception of Buying Chinese Products and Brands between Present and Last Five-Year ....................39
4.2 Cambodian Consumers’ Perception on OPPO-Cambodia ......................... 48
5 CONCLUSION AND RECOMMENDATION ................................... 78
5.1 Conclusion ........................................... 78
5.2 Recommendations ....................................... 81
4 OUTCOME OF RESEARCH STUDY AND DISCUSION
4.1 The Comparison of Consumer’s Perception of Buying Chinese Products and Brands between Present and Last Five-Year
Since economic reforming has been begun and greater effort of Chinese government, Chinese technologies have been constantly progressing day-by-day. Nowadays, a number of Chinese brand products are getting support and well-known both domestic and overseas. According to Wang and Gao (2010), Chinese products particulary brand products including TCL, Haier, Lenovo and other brands were very well-known both in China and some foreign countries. In term of mobile phone technologies, for example, in the last few years, due to the innovation of its quality products, Chinese brand smartphones were not only standing the most leading brand in China (Counterpoint Research, 2019) but also the leading brands in Southeast Asia based on vendor market share in 2019, according to Canalys’ Smartphone Analysis in Q2 2019. Furthermore, in term of worldwide smartphones market share during the third quarter of 2019 (3Q19), Chinese brand phones maintained its second position based on global market share, and OPPO smartphone came in fifth position (IDC, 2019). Chinese products especially brand products, however, are famous in those countries; they still face obstacles in Cambodian market. Many people still don’t know about Chinese brand products, and most of them still see Chinese products quality in the negative view point even though they are Chinese brand products.
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5 CONCLUSION AND RECOMMENDATION
5.1 Conclusion
In conclusion, within this valuable and reliable research study, it will greatly contribute to promote Chinese brand products in Cambodia’s market to be more renowned and gain more support from Cambodian consumers in the upcoming years. Moreover, it’ll become a source of knowledge not only Cambodian consumers, but also Chinese manufacturers “OPPO Phone”. They can take this opportunity to understand Cambodian consumers’ needs and wants of smartphone usage as well as to comprehend the current challenging of OPPO Phone in Cambodian market by reading this research. Moreover, this research study is also considered as a reliable and valid study because the data analysis relied on the field data work including local people and PSOs’ interview.
According to data finding and data analysis from field data collection in both regions shows that consumer’s perception of purchasing Chinese products and brand products in Cambodian market have been dramatically changed, begin with very negative thinking to positive view point compared to last five years ago. Recently, the Mean of buyers’ satisfaction level on Chinese products had 65.8% (3.29 scores) which it’s unlike the last five-year, with 42.8% (2.14 scores) in Phnom Penh City. In Kror Nhoung Sen Chey Commune, the average of Cambodian consumer’s perception of Chinese products at the moment was 73.6% (3.68 scores), so it’s much better than last five-year 30.8% (1.54 scores). During the last five-year, their insight on the quality of Chinese products moved up with average of 22.8% in the city and 42.8% in the remote area, along with 95% confidence interval of the difference, their satisfaction levels had increased with the minimum 20.6% and maximum not over 25% in Phnom Penh, and 39.1% and 46.6% in Kror Nhoung Sen Chey Commune. Their satisfaction level, nevertheless, have been rising up together with urban and countryside, their confidence in the quality of China’s products and brand products seem to be limited. Based on surveys finding recently, there’s about 76% of total respondents in Phnom Penh City expressed with a positive perception on Chinese products, and remaining about 10% and 12% could not provide information and stated with the bad mood. Meanwhile, the survey answerers in countryside have almost 53% claimed that they got the good mood with Chinese products’ quality, and only 0.4% did not trust on it. The resting figure about 47% refused to comment because they were not awareness and certain about currently Chinese products’ quality. The factor driving negative sentiment of consumers toward Chinese products look as if to be still high in Cambodian market even though it is brand products. This due to the fact that dissemination of information about Chinese brand products are not widely available to Cambodian consumers.
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