Marketing a consumer durable brand in Malaysia: a conjoint analysis and market simulation

Abstract

Purpose

This paper aims to use conjoint analysis to examine how Malaysian consumers make decisions regarding a consumer durable product – namely room air conditioners – under multi‐cue situations.

Design/methodology/approach

This study first assesses the impact of a priori perceived differences between brand names, country of manufacture, price, quality, technological advancement, and warranty on product evaluation. Second, the relative importance of the attributes as evaluative criteria is determined by performing part worth analysis. Six pertinent hypotheses are developed and tested. Conjoint analysis is used to develop product profiles that respondents could evaluate via a survey. This is followed by a market simulation to suggest marketing strategies for Malaysian and Japanese products (the latter dominate the Malaysian market).

Findings

The findings indicate the importance of capitalising upon consumer durables' intrinsic qualities, and the need to carefully consider the relationship between price and quality. Ways to take advantage of the strength of foreign brand names need to be understood and operationalised. The simulation exercise also indicates ways in which indigenous and external competitors could take advantage of market opportunities.

Research limitations/implications

The study does place in a Malaysian context, and moreover used a convenience sampling approach. The need is demonstrable for more representative probabilistic sampling. While country of origin effects are understood, other criteria (i.e. design, assembly, and source) need to be considered in future studies.

Practical implications

It is felt that the approach utilised and the simulations developed can be applied in other geographic and cultural contexts and have implications for marketing strategies for branded consumer durable typologies.

Originality/value

The paper identifies and evaluates strategies for more effective competition in the Malaysian room air conditioner market. The use of conjoint analysis and market simulation provides a basis for competitive advantage in a tightly focused market sector.

Citation

Sim Ong, F., Kitchen, P.J. and Shiuan Chew, S. (2010), "Marketing a consumer durable brand in Malaysia: a conjoint analysis and market simulation", Journal of Consumer Marketing, Vol. 27 No. 6, pp. 507-515. https://doi.org/10.1108/07363761011078244