Country effect
Given a branded product, it is anticipated that Indians will perceive the quality
to be higher than Americans. The reason is the greater value to Indians of
brand standardization and image. Owing to the greater concern of Indians
about spending money, it is anticipated that compared with Americans they
will express a more positive attitude toward economizing. The attitude toward
economizing is then expected to have a direct and positive effect on the
perceived acceptability of a price. Compared with Americans, Indians are also
expected to perceive other costs of time and effort to be more acceptable, since
such costs are normal in India and saving time is not as critical. The basic
model therefore needs to be expanded to accommodate the hypothesized effects
of country.