The effects of country of origin on purchase decision of smartphones in Tanzania

More recently, there has been an increasing demand for imported smartphones in Tanzania where consumers can buy various brands from wide range of countries. This study investigates the effects of Country of Origin (COO) on consumers purchase decision of imported Smartphones in Tanzania. The study was guided by four objectives focusing on relationship between COO effect and purchase decision, relationship between perceived product quality and purchase decision of smartphones and relationship between perceived product value and purchase decision of smartphone. A cross-sectional survey of 271 respondents obtained through purposive sampling was used in conducting the study. Data were collected using semi structured, self administered questionnaire and analysed using SPSS whereby Pearson’s correlation coefficient, ANOVA and regression analysis tests were performed to test relationship between the dependent and independent variables. Findings reveal that Samsung, Nokia, Techno and Huawei are the most preferred smartphones brands in Tanzania. They also reveal that consumers prefer smartphone in favour of their ability to maintain charge, more applications, internet speed, availability of handsets, affordable price, user friendly and the advertising by sellers. Moreover, the study found that Korea, China, Japan, USA and Finland are the producers of the most preferred smartphone brands in Tanzania. The findings of the regression analysis reveal an existence of significant positive relationship between purchase decision (the dependent variable) and all predictors (COO effect, perceived quality and perceived value). Basing on these findings, the three formulated study hypotheses were accepted. The study concludes that COO effect, perceived product quality and perceived product value are predictors of purchase decision of imported products and specifically smartphone. The study recommends that consumers of smartphone should not ignore the "made-in" notion while making smartphone purchase decision since perceived product quality and value are attached to the degree of innovativeness, product design, product prestige and level of workmanship and all these dimensions are country specific.