1. Inherent indicators of consumer product
evaluation: A case of mobile handset in Karachi
Prepared By:
Anum Karim (4167)
Hafiz Hammad Ameen Khan (4664)
Komal Sarwar (4172)
Mehwish Fareed (4266)
Saad Saleem (4843)
Facilitator:
Muhammad Ali

2. Introduction
• Consumer’s evaluation towards a product is based essentially on informational
indications, which are further dived into two, intrinsic and extrinsic indications
• Consumers relate the product with a range of informational cues and time and
again, quality is reviewed along with the worth of a product on the support of
such indicators.
• There are a number of specific product traits which are its intrinsic
Characteristics while others are to the product external features, such as the
buyer’s awareness of price, store along with the recognition and objective
measures like quality.

3. Problem Statement
• In the past, many studies have been taken place on finding and understanding the
consumer’s product evaluation through its intrinsic and extrinsic cues and attributes. The
consumer’s product evaluation of beautification products in terms of Perceived quality,
brand image, product price and CoO resulted in the affirmative relationship with all the
predictors excluding price. Another study contributed on the product evaluation of highly
technological fashion products on a mobile phone by the people of USA, it concluded that
intrinsic and extrinsic motivation both play a vital role in the consumer’s product
evaluation.. No study have been conducted on the finding the factors that affect the most
on consumers product evaluation of mobile phones in Pakistan. Determination of the
factors that affect the perception of consumers while buying a mobile phone, and whether
intrinsic or extrinsic cues matter the most. Therefore, this study will cover the segment of
core indicators of consumer’s product evaluation of mobile handsets in Karachi, Pakistan.

4. Research Objective/s:
 The aim of the study is to determine the Inherent cues in determining a
consumer’s product evaluation of a mobile handset.
 Another objective of this study is to determine the variable that is the
most important factor mobile handset’s product evaluation by consumers.
Research Question/s:
 1. What are the Inherent cues of product evaluation of a mobile
handset?
 2. Which is the most important factor in the product evaluation of
mobile phones’ in Karachi?

5. Literature Reviews

6. Literature Review
Name of the Researcher
and Title
Estimates and Results Statistical
Technique
Conclusion
Parvin.N &Chowdhury.
H. K., (2006).
Consumer evaluation of
beautification product:
Effects of Extrinsic cues
The variables of the study were
brand image, country of origin,
perceived quality and perceived
price have a positive relationship
with the customer evaluation of
beautification product.
Results stated that Brand Image
perceived quality and Country of
origin had positive impact
Regression
analysis.
It concluded that
perceived quality, brand
image and professed
country of origin had
affirmative and
considerable effect on
product evaluation of
beautification products
Munnukka. J & Jarvi. P
(2012)
"The price-category effect
and the formation of
customer value of high-
tech products"
Perceived value of advanced
consumer products were intrinsic
cues (Playfulness, Visual appeal,
intrinsic enjoyment Escapism,)
and extrinsic cue (Efficiency,
Economic value, Excellence).
Five main factors products of
escapism/intrinsic, efficiency
visual appeal, enjoyment,
excellence, and price satisfaction
of advanced technology
Regression
analysis
It Concluded that the
consumers perceive the
advanced technology’s
both cues as equal
important although the
intrinsic characteristics
as a more important
factor.

7. Name of the
Researchers and Title
Estimates and Results Statistical
Technique
Conclusion

8. Methodology
Research Approach Quantitative Approach
Research Purpose Explanatory
Research Design Co relational
Data Source Primary data
Data Collection Survey Questionnaire ( 5 Point Likert
scale)
Sample Size 300 questionnaire
Statistical technique Regression Analysis, factor analysis and
reliability

9. Model
Regression equation
CPE= α+β1 (BN) + β2 (BS) + β3 (BI) + β4 (BL) + β5
(PCOO) + e
Where;
 CPE stands for Consumer Product Evaluation,
 BN stands for Brand Name,
 BS stands for Brand Salience,
 BI stands for Brand Image,
 BL stands for Brand Loyalty,
 PCOO stands for Perceived Country of Origin.

10. Hypothesis
Research represents the following hypothesis:
 Ho1: Brand Name has insignificant impact on Product Evaluation.
 Ho2: Brand Image has insignificant impact on product Evaluation.
 Ho3: Brand Loyalty has insignificant impact on Product Evaluation.
 Ho4: Brand Salience has insignificant impact on Product
Evaluation.
 Ho5: Country of Origin has insignificant impact on Product
Evaluation.

11. Reliability Statistics
variables No of items Cronbach’s Alpha
Brand Salience 6 0.72
Perceived Country of origin 3 .0.57
Brand Name 5 0.66
Brand Loyalty 3 0.53
Brand Image 3 0.54

12. Factor analysis
KMO and Bartlett's Test
Table 4.2.3
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.753
Bartlett's Test of Sphericity Approx. Chi-Square 249.135
Df 21.000
Sig. .000

13. Rotated Component Matrix
Cronbach’s
alpha
Brand
Salience
Perceived
Country of
Origin
Brand
Name
Brand
Loyalty
Brand
Image
Produces the product is known for its high
quality and services.
0.72
.451
Produced in good workplace environment. .589
Has a good financial environment. .659
Performs basic job very consistently. .531
Input features are important to judge mobile’s
ease of use.
.687
Battery time is important while deciding the
brand for cell phone.
.653
Company producing the product is a matter of
attention.
0.57
.675
Company producing the cell phone should be
reliable.
.534
Producing country impacts on purchasing
decision
.666

14. Rotated Component Matrix
Name of brand must be well known.
0.66
.530
Mobile phone must carry the name of
the company.
.686
Uses only certain brands of mobile
phones.
.660
Brand names kept for all cell phone
within a company.
.624
Brand name partly represents lifestyle. .516
Have a fondness and emotional feeling
for the brand.
0.53
.768
Preferences are not given to the new
brands.
.318
Only used a single brand of mobile
phone.
.650
Latest brands are chosen.
0.54
.494
Brand should be innovative. .596
Brand should be successful. .382

15. Regression Analysis
Model Β t p VIF
(Constant) .012 .048 .961
BN .109 2.113 .036 .048
BI .153 2.295 .023 2.113
BL .041 .880 .379 2.295
PCOO .333 6.175 .000 .880
BS .296 6.715 .000 6.175
Adj. R Square = .518
Sig =
0.000
F- Statistics = 59.066

16. Regression Equation
Product Evaluation = 0.012 + 0.109 (Brand Name) + 0.153 (Brand Image) +
0.0.041 (Brand Loyalty) + 0.333 (Perceived country of origin) + 0.296 (Brand
Salience).

17. Conclusion
Brand salience and Perceived country of origin are the most
effective indicators that can influences the product evaluation
criteria of customers while purchasing mobile handset in Karachi.
Hence the mobile phone company may work on these attributes of
the brand to improve their sales. Brand loyalty does not influence
the criteria of product evaluation. in this technological era with
mobile phone comprising many features and styles, brand loyalty is
not found in the mobile phone consumers of Karachi

18. Recommendations
• The mobile phone makers and policy makers should encourage
branded mobiles which carry a reliable country of origin.
• The cell phone makers should inbuilt such salient features in
their product that would attract customers and enhance their
sales.
• The marketers must create such an image of their product
(mobile phones) relating to its innovation and successfulness that
would temptation towards their brand.
• The marketers must create such a brand name that represent a
life style of the customers.

19. Thank You!