Country-of-Origin Image and Its Effect on Purchase Intention: A Study on a Chinese Smartphone Brand

DARMAWAN, RICKY DWI and Semuel, Hatane and Wijaya, Serli (2020) Country-of-Origin Image and Its Effect on Purchase Intention: A Study on a Chinese Smartphone Brand. In: the 2nd International Conference on Business and Management of Technology 2020, 01-08-2020 - 01-08-2020, Surabaya - Indonesia.

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Abstract

Previous research examining the influence of country-of-origin image on purchase intention have indicated inconsistent results. China, as the largest global business players in the world have secured a lot of its brands as the world’s market leaders. This research aims to examine how China, as the country of origin of Huawei smartphone, has been perceived by the Indonesian consumers. This study also aims to examine whether its country-of-origin image could influence Huawei’s perceived quality, brand image, which in turn, affecting consumers’ intention to purchase the product. Online survey was completed to 226 respondents using purposive sampling technique. The collected primary data was analysed using PLS-SEM technique. The findings of the study showed that, directly, country-of-origin image variable had no significant effect on purchase intention. In other words, country-of-origin image alone was not strong enough to stimulate consumers to buy the smartphone product. Research result also revealed that the role of brand image was stronger that perceived quality in mediating the effect of country of origin image on purchase intention. In fact, brand image, appeared as the significant mediating variable of how country of origin image influenced purchase intention.

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